India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Thursday, April 01, 2010
Post Market Commentary -Apr 1 2010
After two days of profit booking, markets bounced back today to close the truncated week on a strong note. Sensex gained 164 points to finish at 17692 while Nifty closed at 5290, up 41 points. BSE Mid-cap and Small-cap indices gained 0.9% and 2.4% respectively. On weekly basis, Sensex and Nifty are up 0.27% and 0.16% respectively. Realty and Consumer Durable indices gained the most among the sectoral indices, putting on 3.3% and 2.7% over the week while IT and Teck indices were down the most, losing 2.9% and 2.5% respectively. Food inflation for the week ending March 20th came in at 16.35% versus 16.22% for the previous week. Fuel inflation stood at 12.75% as against 12.68% while Primary Articles inflation came in at 13.86% versus 13.88%. Software stocks, which were in correction mode for past couple of session, bounced back and ended with decent gains. Capital goods major BHEL announced its fourth quarter FY10 provisional numbers where net profit as well as net sales rose 40% each year-on-year. European markets were up about a percent, hitting fresh 18-month high, on the back of upbeat manufacturing data from Europe and China. Dow futures were higher by half a percent ahead of report on unemployment claims and manufacturing.
BSE IT and Consumer Durable indices were the top gainers among the sectoral indices for the day, putting on 2.3% and 1.5% respectively while FMCG and Auto indices finished lower by 0.2% and 0.1% respectively. HUL and Bharti Airtel were down the most among the Nifty stocks, shedding 3.8% and 3.3% respectively while TCS and JP Associate were the top gainers, up 3.5% and 3.4% respectively. BSE advance-decline ratio stood at 3.6:1.
Market kicks off FY2011 in style
Today's major news
India's external debt jumps 12%
Food inflation inches up to 16.35%
Foreign direct investment (FDI) inflows up by 15.4% year on year
Click here for more stories
Global signals
European shares rose in early trade on Thursday, hitting fresh 18-month highs as upbeat manufacturing data from Europe and China fuelled optimism about the global economic recovery, with banks and miners rising.
All the major Asian indices ended the session higher on Thursday, after the upbeat manufacturing data from China. SGX Nifty closed 30 points higher.
The US stock index futures pointed to a higher open on the Wall Street on Thursday.
Indian indices
Bulls were back on the first day of the fiscal (FY2011) ending the week on a positive note, taking lead from strong Asian cues. After two consecutive sessions of loss, equities opened on a positive note, 27 points higher at 17555 and never the saw that level again for the day. On the back of the European and China upbeat manufacturing data that fuelled optimism about the global economic recovery, the global indices rallied on the last working day of this week.
Such U-turn by the global markets triggered a positive trend and thus Indian markets witnessed sustained buying activity. IT stocks that were hit over the last two days on hardening made a strong comeback, while consumer durables (CD) and metal stocks acted as a catalyst for the up-trend. The up-trend lifted the markets sentiments and helped the Sensex to touch the day's high of 17706.
Auto stocks remained laggards, as the monthly numbers (for March) released today were not that encouraging, though it didn't impacted the market sentiments. The day ended well as the Sensex ended the session 164 points higher at 17692, while Nifty closed at 5290, up by 41 points.
Market sentiment
Positive global cues and hence continuous buying helped advanced stocks far outnumber the trailing scrips with the advance/decline ratio at 3.6:1. In today’s session 2,212 (76.57%) stocks advanced while only 608 (21.05%) stocks declined. Sixty nine stocks closed unchanged.
Sectoral & stock screening
Of the 13 sector indices on the BSE only two—fast moving consumer goods (FMCG; down 0.22%) and auto (down 0.08%)— were down. After trading low over the last two days on a hardening rupee, today BSE IT topped the sector list being up by 2.26%. The BSE IT components, Tata Consultancy Services (TCS), Infosys Technologies and Wipro featured in the top 10 gainers of the Sensex. BSE Consumer Durables (CD) was at the second position— up by 1.54%.
The top three gainers were, Procter & Gamble that was up by 15.15%, followed by Godrej Industries that surged 5.56% and Crompton Greaves that rose by 4.79%.
The top three losers were Mundra Port that slid 5.06%, followed by Balrampur Chini Mills that was down by 4.44% and Shree Renuka Sugars that fell by 4.21%.
Viewing volumes
The developer and operator of the Mundra Port, Mundra Port and Special Economic Zone, was the most actively traded share with over 0.65 crore shares changing hands on the BSE, followed by steel maker Ispat Industries (0.63 crore shares), India’s second largest realty major Unitech (0.46 crore shares), sugar manufacturer Shree Renuka Sugars (0.35 crore shares) and Reliance Natural Resources (0.32 crore shares).
BSE Bulk Deals to Watch - Apr 1 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
1/4/2010 517356 ACI Infocom CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 41933 29.30
1/4/2010 517356 ACI Infocom CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 41933 29.35
1/4/2010 513349 Ajmera Rlty MAHENDRA SUNDARJIBHAI VORA B 278595 188.43
1/4/2010 513349 Ajmera Rlty MAHENDRA SUNDARJIBHAI VORA S 199521 192.87
1/4/2010 533163 Arss Infra Proj GENUINE STOCK BROKERS PVT. LTD. B 89576 977.22
1/4/2010 533163 Arss Infra Proj SMART EQUITY BROKERS PRIVATE LIMITED B 188176 977.37
1/4/2010 533163 Arss Infra Proj OPG SECURITIES P LTD B 303012 971.33
1/4/2010 533163 Arss Infra Proj JMP SECURITIES PVT LTD B 105520 989.26
1/4/2010 533163 Arss Infra Proj JMP SECURITIES PVT LTD S 107545 990.54
1/4/2010 533163 Arss Infra Proj OPG SECURITIES P LTD S 303012 971.82
1/4/2010 533163 Arss Infra Proj GENUINE STOCK BROKERS PVT. LTD. S 89576 977.34
1/4/2010 533163 Arss Infra Proj SMART EQUITY BROKERS PRIVATE LIMITED S 188176 977.84
1/4/2010 505036 Automobile Corp EVEREST FINANCE & INVESTMENT CO. S 135248 235.41
1/4/2010 590059 Bihar Tubes APL INFRASTRUCTURE PRIVATE LIMITED B 115000 115.35
1/4/2010 511607 Birla Shloka MAHESH MEETAL (HUF) B 77432 71.05
1/4/2010 511607 Birla Shloka MAHESH MEETAL (HUF) S 77432 71.25
1/4/2010 511607 Birla Shloka BHAVISH DHIRAJLAL KHAKHKHAR S 140728 70.01
1/4/2010 532781 Blue Bird India KARVY FINANCIAL SERVICES LIMITED S 457461 14.60
1/4/2010 590061 Brushman India SICPA INDIA LTD S 70125 11.70
1/4/2010 500083 Century Extr BHARAT SHANKAR PHAPALE B 283691 11.50
1/4/2010 504351 Empower Inds OMPARKASH GUPTA B 50000 4.65
1/4/2010 504351 Empower Inds JIGNESH CHANDRAKANT SHAH B 928647 4.61
1/4/2010 504351 Empower Inds VENTURE INVESTMENTS B 50000 4.61
1/4/2010 504351 Empower Inds KALPANA MADHANI SECURITIES PRIVATE LIMITED S 57550 4.61
1/4/2010 504351 Empower Inds ARYA INVESTMENTS S 92000 4.61
1/4/2010 504351 Empower Inds ARPIJAY FABRICATORS PRIVATE LIMITED S 57500 4.61
1/4/2010 504351 Empower Inds SANJAY RAMESH KOHLI S 62500 4.61
1/4/2010 504351 Empower Inds SHIVANI SACHIN NEMAWARKAR S 229897 4.61
1/4/2010 530337 Exelon Infra KAMALA KANTA GUPTA S 25000 15.54
1/4/2010 511668 Fact Enterprise KALPESH JASUBHAI PATEL S 60000 37.54
1/4/2010 522017 Fluidomat KUNAL JAIN B 44500 19.40
1/4/2010 514167 Ganesh Poly KAUSHIK SHAH SHARES & SEC. LTD B 55378 47.09
1/4/2010 504028 GEE NIRMAL MISHRILAL BANG (HUF) B 150000 60.00
1/4/2010 504028 GEE VENKATESH SHELTER PRIVATE LIMITED S 150000 60.00
1/4/2010 504028 GEE JHILMIL CONSULTANT PRIVATE LIMITED S 110000 60.24
1/4/2010 513059 GS Auto PRASHANT MAHADEV KAMBLE S 54342 41.79
1/4/2010 513059 GS Auto PRASHANT MAHADEV KAMBLE S 55606 42.03
1/4/2010 532770 Hanung Toys AJMERA SHARES TRADING PRIVATE LIMITED B 165000 229.98
1/4/2010 532770 Hanung Toys AJMERA SHARES TRADING PRIVATE LIMITED S 154000 229.99
1/4/2010 511116 HFCL Infotel KAMAL KUMAR DUGAR B 5000000 8.24
1/4/2010 511116 HFCL Infotel PR VYAPAAR PRIVATE LIMITED S 4855000 8.24
1/4/2010 522059 Indage Vintners EVERGREEN RESOURCES PRIVATE LIMITED B 300000 43.97
1/4/2010 522059 Indage Vintners JMP SECURITIES PVT LTD B 235843 44.06
1/4/2010 522059 Indage Vintners RADHIKA TARUN SHETH B 80000 44.08
1/4/2010 522059 Indage Vintners BLUE PEACOCK SECURITIES PVT LT B 273016 44.15
1/4/2010 522059 Indage Vintners RELIANCE CAPITAL LTD S 372523 43.59
1/4/2010 522059 Indage Vintners A E SECURITIES & INVESTMENTS PRIVATE LIMITED S 475000 44.14
1/4/2010 522059 Indage Vintners JMP SECURITIES PVT LTD S 212314 43.44
1/4/2010 531968 Indo Green Proj NOSTALGIA FINVEST PRIVATE LIMITED B 36000 38.57
1/4/2010 531968 Indo Green Proj GURJANT SINGH GILL S 35300 38.57
1/4/2010 531777 Intellvisions EPOCH SYNTHETICS PRIVATE LIMITED B 89000 18.50
1/4/2010 531777 Intellvisions MANMOHAN DAMANI S 89000 18.50
1/4/2010 532326 Intense Tech PRIME INDIA OPPORTUNITY LTD S 115649 8.00
1/4/2010 524400 Ishita Drugs KALPANA MADHANI SECURITIES PRIVATE LIMITED B 15600 21.20
1/4/2010 524400 Ishita Drugs BP FINTRADE PRIVATE LIMITED B 15686 20.83
1/4/2010 524400 Ishita Drugs CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 17195 20.98
1/4/2010 524400 Ishita Drugs BP FINTRADE PRIVATE LIMITED S 15686 20.86
1/4/2010 524400 Ishita Drugs KALPANA MADHANI SECURITIES PRIVATE LIMITED S 15494 20.57
1/4/2010 524400 Ishita Drugs CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 17174 20.36
1/4/2010 524400 Ishita Drugs Jmm Nine Stocks Private Limited S 16486 21.17
1/4/2010 520051 Jamna Auto GANDIV INVESTMENT PVT. LTD. S 121438 83.50
1/4/2010 526668 Kamat Hotels RAMKISHORE SARDA S 66128 84.02
1/4/2010 530255 KAY Power BAMPSL SECURITIES LTD B 70820 14.54
1/4/2010 532673 KM Sugar JHAVERI TRADING & INVESTMENT PVT. LTD B 524400 9.58
1/4/2010 531366 Kohinoor Broad S V ENTERPRISES B 1064886 5.17
1/4/2010 531366 Kohinoor Broad S V ENTERPRISES S 553086 5.25
1/4/2010 514450 Mahalaxmi Rub BHAWARLAL JAJOO B 86968 101.89
1/4/2010 532553 MSK Projects OPG SECURITIES P LTD B 185307 169.28
1/4/2010 532553 MSK Projects SMART EQUITY BROKERS PRIVATE LIMITED B 128530 170.45
1/4/2010 532553 MSK Projects SMART EQUITY BROKERS PRIVATE LIMITED S 128530 170.49
1/4/2010 532553 MSK Projects OPG SECURITIES P LTD S 185307 169.39
1/4/2010 532820 Mudra Lifestyle JITENDER KUMAR B 226904 39.83
1/4/2010 532820 Mudra Lifestyle KAMAL KUMAR SINGLA B 235969 39.10
1/4/2010 532820 Mudra Lifestyle KAMAL KUMAR SINGLA S 235969 39.42
1/4/2010 519560 Neha Intl EMERGING STAR INVESTMENT PRIVATE LIMITED S 70431 155.54
1/4/2010 531496 Omkar Overseas GAGAN O. ARORA B 33000 67.75
1/4/2010 531496 Omkar Overseas ARVIND KASHMIRILAL PUNJABI B 38000 67.38
1/4/2010 531496 Omkar Overseas PATHIK NAYANBHAI SHAH B 45522 67.10
1/4/2010 531496 Omkar Overseas S N INVESTMENT S 39273 67.40
1/4/2010 531496 Omkar Overseas PRAKASH CHANDRA SHETH S 25000 68.45
1/4/2010 512097 Oregon Comm J M SONI CONSULTANCY B 26574 211.26
1/4/2010 512097 Oregon Comm NEHALBHAI PRATAPBHAI RATHOD B 5146 211.03
1/4/2010 512097 Oregon Comm SHYAM CONSTRUCTION B 15325 211.68
1/4/2010 512097 Oregon Comm ASHLESH GUNVANTBHAI SHAH S 13295 204.41
1/4/2010 512097 Oregon Comm SANJAY JETHALAL SONI S 4896 208.30
1/4/2010 512097 Oregon Comm NEHALBHAI PRATAPBHAI RATHOD S 5146 211.47
1/4/2010 512097 Oregon Comm KRUPA SANJAY SONI S 21320 212.73
1/4/2010 509820 Paper Products ABERDEEN ASIA AC ABERDEEN INTL INDIA OPPORT FUND MAURITIUS LTD S 445370 58.15
1/4/2010 511702 Parsharti Inv SHIVA INVESTMENT S 15220 11.45
1/4/2010 531467 Polypro Fibrils STATUS EQUITY AND FINANCE PVT B 70318 34.51
1/4/2010 531467 Polypro Fibrils SEJAL D DOSHI S 50000 34.66
1/4/2010 530331 Premco Glob AMIT JAIN B 22227 21.93
1/4/2010 590077 Ranklin Sol AGADHANDI SAI KRISHNA B 38908 55.41
1/4/2010 590077 Ranklin Sol SATYANARAYANA VARAPRASAD GARIKIPATY S 38416 55.26
1/4/2010 533083 RISHABHDEV SAAKSHI SHARES PVT LTD B 183786 12.48
1/4/2010 533083 RISHABHDEV BHAVISH DHIRAJLAL KHAKHKHAR B 535022 12.56
1/4/2010 533083 RISHABHDEV BHAVISH DHIRAJLAL KHAKHKHAR S 237714 12.17
1/4/2010 533083 RISHABHDEV SAAKSHI SHARES PVT LTD S 183786 12.57
1/4/2010 512359 Rotam Comm SHYAM CONSTRUCTION S 14000 140.14
1/4/2010 531099 Rubra Med HARDAT RAJEEV KUMAR S 74400 19.50
1/4/2010 504614 Sarda Energy IPRO FUNDS LIMITED B 375678 172.00
1/4/2010 504614 Sarda Energy INVESTMENT PROFESSIONALS LTD B 780000 172.00
1/4/2010 504614 Sarda Energy ORANGE MAURITIUS INVETMENTS LTD B 1010000 172.00
1/4/2010 504614 Sarda Energy LEHMANBROTHERSASIALTDA/C LB INDIAHOLDINGSMAURITIUS II LTD-FDIA/C S 2298914 172.41
1/4/2010 511754 Shalibhadra Fin JAWAHAR THAKER S 37605 31.70
1/4/2010 512289 Shirpur Gold MEHTA NEMISH JAYKISHOR B 319395 239.89
1/4/2010 512289 Shirpur Gold MEHTA NEMISH JAYKISHOR S 319113 239.81
1/4/2010 513097 Shivalik Bimet SAINATH HERBAL CARE MARKETING P.LTD B 250277 29.50
1/4/2010 513097 Shivalik Bimet SAINATH HERBAL CARE MARKETING P.LTD S 161768 28.01
1/4/2010 531645 Southern Ispat DEEPAK HARIDAS MALVADE S 99000 19.65
1/4/2010 512413 Spectacle Inds KISHORE B CHAUHAN S 308907 110.92
1/4/2010 531373 Suave Hotels ALKEN MANAGEMENT & FINANCIAL S S 74852 38.85
1/4/2010 533157 SYNCOM HEAL NIKHIL VINUKANT SHAH B 168000 122.37
1/4/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD B 188123 122.40
1/4/2010 533157 SYNCOM HEAL MARWADI SHARES AND FINANCE LTD. B 136458 121.86
1/4/2010 533157 SYNCOM HEAL A K G STOCK BROKERS PRIVATE LIMITED B 121806 121.62
1/4/2010 533157 SYNCOM HEAL GENUINE STOCK BROKERS PVT. LTD. B 252360 121.77
1/4/2010 533157 SYNCOM HEAL TRANSGLOBAL SECURITIES LTD. B 174741 121.78
1/4/2010 533157 SYNCOM HEAL A K G STOCK BROKERS PRIVATE LIMITED S 121806 122.18
1/4/2010 533157 SYNCOM HEAL TRANSGLOBAL SECURITIES LTD. S 174741 122.01
1/4/2010 533157 SYNCOM HEAL GENUINE STOCK BROKERS PVT. LTD. S 252360 121.97
1/4/2010 533157 SYNCOM HEAL MARWADI SHARES AND FINANCE LTD. S 136458 121.97
1/4/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD S 188123 122.44
1/4/2010 533157 SYNCOM HEAL NIKHIL VINUKANT SHAH S 168000 122.11
1/4/2010 570001 TATAMOTORS-DVR-A-ORDY IFCI LTD. S 560634 450.01
1/4/2010 523455 Techtran Poly DHEERAJ KUMAR LOHIA B 75206 12.96
1/4/2010 507205 Tilaknagar Inds STANDARD CHARTERED BANK (MAURITIUS) LIMITED A/C EMERGING IND B 273109 130.00
1/4/2010 507205 Tilaknagar Inds AMIT ARUN DAHANUKAR S 400000 130.84
1/4/2010 532389 Valecha Engr RASHI INVESTMENTS B 100000 181.00
1/4/2010 532389 Valecha Engr AJMERA SHARES TRADING PRIVATE LIMITED B 92322 181.13
1/4/2010 532389 Valecha Engr BLUE PEACOCK SECURITIES PVT LT B 125962 180.25
1/4/2010 532389 Valecha Engr BLUE PEACOCK SECURITIES PVT LT S 125962 180.02
1/4/2010 532389 Valecha Engr AJMERA SHARES TRADING PRIVATE LIMITED S 92322 180.26
1/4/2010 531249 Well Pack Papers AMAR PREMCHAND WALMIKI B 845100 23.55
1/4/2010 531249 Well Pack Papers SHREEDHAR YELLAIAH KODAM S 400000 23.50
1/4/2010 531249 Well Pack Papers NIOL IMPEX PRIVATE LIMITED S 395000 24.38
1/4/2010 531396 Women Networks SANJU KABRA B 40000 27.95
* B - Buy, S - Sell
Small-cap, mid-cap indices outperform Sensex
The key benchmark indices edged higher in a truncated week helped by sustained buying by the foreign investors and strong global markets. The stock market remains closed on Friday, 2 April 2010, on account of Good Friday. Foreign institutional investors (FIIs) made a beeline for Indian equities, helping stocks register strong gains. As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 14,792.31 crore in March 2010. Finance secretary Ashok Chawla said on 23 March 2010, that foreign capital flows into India are currently not posing any concern.
The domestic bourses scaled two-year closing high on 29 March 2010. The market gained in two out of the four trading sessions in the week.
Encouraging Q4 March 2010 advance tax figures of top Indian firms, indicating good Q4 March 2010 results also boosted Indian equities. The market also witnessed a strong post-Budget rally driven by sustained buying by foreign funds since the presentation of the Union Budget 2010-2011 on 26 February 2010. Global credit rating agency Standard & Poor's recently revised the outlook on India to stable from negative due to improved government finances.
In February 2009, the rating agency had cut the outlook on India's credit rating from stable to negative, amid concerns of rising fiscal deficit. Two other rating agencies, Moody's and Fitch, already have a stable rating on India. S&P has pegged India's projected economic growth rate at 8% for the year ending March 2011.
The BSE Sensex rose 47.86 points or 0.27% to 17,692.62 in the week ended Thursday, 1 April 2010. The Sensex rose 62.96 points or 0.36% in the quarter ended March 2010, gaining for the fifth quarter in a row. The barometer index vaulted 7,819.27 points or 80.5% in the year ended March 2010 (FY 2010).
The S&P CNX Nifty gained 8.50 points, or 0.16% to 5290.50 in the week.
The BSE Mid-Cap index rose 1.52% and the BSE Small-Cap index gained 3,28% in th week. Both these indices outperformed Sensex.
Food price index rose 16.35% in the year to 20 March 2010, higher than an annual rise of 16.22% in the previous week, government data showed on Thursday. The fuel price index rose 12.75%, higher than an annual rise of 12.68% in the previous week. Fuel costs have risen following a hike in domestic fuel prices and an upswing in world crude prices. The primary articles index was up 13.86% in the year to 20 March 2010.
The manufacturing growth slowed down in March 2010, dropping from a 20-month-record in February 2010, as mounting cost pressures took a toll on expansion in output, a survey released on 1 April 2010 showed. The HSBC Markit Purchasing Managers' Index , based on a survey of 500 companies, fell to 57.8 in March 2010 from 58.5 in February 2010, which was the strongest since June 2008. A reading above 50 means activity is expanding. The new orders index fell to 62.7 in March from 64 in February
Industrial output in February is expected to have grown 16% year-on-year, Industry Secretary said on Wednesday. The output in January grew an annual 16.7%.
Foreign direct investment rose 15.4% to $1.72 billion in February 2010 over February 2009, government said Wednesday.
Exports in February grew 34.8% on year to $16.09 billion, Trade Minister Anand Sharma said on Wednesday. Exports are expected to grow 15-20% in the year that starts on 1 April 2010, Sharma said. Imports, too, maintained momentum growing by 66% to $25 billion underscoring the strong revival in the domestic economy.
The government will sell 63% of its bond issuance for the new fiscal year in the first half, slightly less than expected, giving a near-term respite to satiated bondholders and helping send yields sharply lower. The government on Monday said it will sell Rs 2.87 lakh crore ($64 billion) of bonds in the first half of 2010/11, which starts on 1 April 2010. The bulk of the government's first-half borrowing, or Rs 2 lakh crore, will be in the 10-year and longer segment.
The key benchmark indices closed at their highest level in more than two years on Monday, 29 March 2010, supported by strong global markets. Stocks rose for the fourth day in a row. The BSE 30-share Sensex rose 66.59 points or 0.38% to 17,711.35, its highest closing since 28 February 2008. The S&P CNX Nifty rose 20.85 points or 0.39% to 5302.85, its highest closing since 15 February 2008.
The key benchmarks edged lower on Tuesday, 30 March 2010 as profit taking emerged after the market scaled two-year high on Monday, 29 March 2010. The BSE 30-share Sensex fell 121.18 points or 0.68% to 17,590.17 on Tuesday.
The key benchmark indices edged lower on the last day of the financial year 2010, extending losses for the second straight day as Asian stocks and US index futures fell. The BSE 30-share Sensex fell 62.40 points or 0.35% to 17,527.77 on Wednesday, 31 March 2010.
The key benchmark indices surged on the first day of the new financial year on Thursday, 1 April 2010, snapping a two-day slide, on broad-based buying. Asian, European stocks and US index futures rose. The BSE 30-share Sensex rose 164.85 points or 0.94% to 17,692.62
Index heavyweight Reliance Industries (RIL) fell 0.48% on profit taking after recent strong gains. The stock was volatile. As per the market buzz, RIL's Q4 advance tax surged to Rs 770 crore in Q4 March 2010 from Rs 365 crore a year ago. Reliance Industries on 14 March 2010 announced a sports and entertainment joint venture with IMG Worldwide, a global leader in sports marketing and management. The equal venture, IMG Reliance, will set up modern infrastructure and coaching facilities for sports and create and operate sports and entertainment assets including celebrity management.
Most auto stocks fell on profit taking after recent gains. India's largest tractor maker by sales Mahindra & Mahindra (M&M) fell 0.93%. The company's total vehicle sales rose 20% to 31698 units in March 2010 over March 2009. The sales figures were released during market hours on 1 April 2010.
India's largest car maker by sales Maruti Suzuki India declined 0.39%. The company on 1 April 2010 said total sales rose 11% to 95,123 units in March 2010 over March 2009. The company's total sales rose 29% to 10.18 lakh vehicles in the year ended March 2010 over the year ended March 2009.
India's largest bike maker by sales Hero Honda Motors fell 2.9%. But, India's largest commercial vehicle maker by sales Tata Motors shot up 3.5%
India's largest mobile services provider by sales Bharti Airtel slumped 2.57%. Bharti cinched a deal on Tuesday to buy most of the African operations of Kuwait's Zain for $9 billion, making it the No.2 cellular company on the African continent and setting India's biggest carrier a tough financial and management challenge. The two companies, which entered exclusive talks in mid-February, signed a legally binding definitive agreement in Amsterdam, where Zain's Africa subsidiary is based
India's largest mortgage lender, Housing Development Finance Corporation (HDFC) rose 6.57%. As per recent reports the company plans to rejig its investments in unlisted companies to capture their value. It will transfer shares of select securities to a special purpose vehicle (SPV) and bring in strategic investors in the SPV. HDFC has investments in companies such as Lafarge, Chalet Hotels, IL&FS, IL&FS Education, National Stock Exchange (NSE), L&T Urban Infrastructure and Maruti Countrywide, which it does not consider as strategic to its business.
India's largest engineering and construction firm by sales, L&T, rose 0.87%. The company announced on Wednesday it bagged orders worth Rs 1017 crore. The company said on Tuesday it bagged orders worth Rs 1126 crore for metallurgical, material handling & water sector projects.
Asian markets weather rough overnight cues
Stocks gain around 1-2% ahead of long weekend as commodity prices surge
Asian markets bounced back even as the US Dollar continued to turn lower and steady buying ahead of the long weekend. Resources and mining stocks traded firm on the back of strong commodity prices as crude oil crossed $84 per barrel mark. Optimism about global economic recovery more than offset the weak closing on Wall Street in the previous session where the major averages ended in negative territory on disappointing private employment data.
The Australian market ended on firm note, led by mining stocks on firm commodity prices in the international market. The benchmark S&P/ASX200 Index advanced 32.20 points, or 0.66% to close at 4,908, while the All-Ordinaries Index ended at 4,926, representing a loss of 32.80 points, or 0.67%.
On the economic front, data released by the Australian Bureau of Statistics revealed that the country posted by a seasonally adjusted trade deficit of A$1.924 billion in February. The deficit was wider by A$804 million from the revised deficit reported for the previous month. As per the data, export of goods and services decreased a seasonally adjusted 1% to A$19.922 billion, while imports increased 2% or A$516 million, to A$21.8 billion.
The stock market in Japan also closed the first trading session of new fiscal year in positive territory, lifted by optimism about economic recovery. Positive results from Tankan Survey, weaker local currency and positive trading across other markets in the region lifted market sentiment. The benchmark Nikkei 225 Index rose 154.46 points, or 1.4%, to 11,244, while the broader Topix index of all First Section issues rose 6.45 points, or 0.7%, to 985.
The latest Tankan Corporate Survey released by the Bank of Japan revealed that business confidence among large Japanese manufacturers improved for the fourth straight quarter, led by a strong revival in exports to Asia. The headline figure for large manufacturers' confidence was -14 in the March quarter - exactly in line with analyst forecasts and up from -25 in the December quarter. At the same time, the indicator for medium-sized manufacturers improved to -19 from -28, while that for small manufacturers rose to -30 from -41.
Stocks in Hong Kong closed on an upbeat note on Thursday, reaching their highest closing levels in more than two months as investors snapped up consumer stocks. The benchmark Hang Seng Index ended up 1.4% or 297.65 points at 21,537.00, its highest close since Jan. 19.The Shanghai Composite Index also ended the day up 1.23% at 3,147.416 points, its highest close since Jan. 21, as investors were encouraged by strong business survey and a central bank statement that it would maintain its loose monetary policy. Chinese inflation hit a 16-month high of 2.7% in February, raising calls for the central bank to tighten the economy to prevent overheating. But while interest rates have remained unchanged for more than two years, the People's Bank of China ordered banks to hike their capital reserves in January in a bid to limit lending.
In New Zealand, the benchmark NZX-50 index closed up 8.238 points, or 0.25% at 3276.231, which is its highest level in nearly 11 weeks. The New Zealand dollar dropped on Thursday after the International Monetary Fund said it was overvalued by between 10% and 25%. "While there is uncertainty, our estimates suggest the currency is presently overvalued by 10-25%," the IMF said.
In Mumbai, the stocks rose sharply as the mood remained buoyant due to surge in IT stocks and other index heavy counters. The BSESENSEX ended the day at 17692.62 points, a jump of 164.85 points or nearly 2%.
In US, stocks saw moderate weakness to end the first quarter yesterday, as continued job losses in the private sector deflated the mood on Wall Street. The major averages all closed in negative territory, but remained near their recent eighteen-month closing highs.
Before the start of trading, payroll processor Automatic Data Processing, Inc. (ADP) reported that non-farm private employment fell by 23,000 jobs in March following a revised decrease of 24,000 jobs in February. The loss of jobs surprised economists, who had expected an increase of about 40,000 jobs compared to loss of 20,000 jobs originally reported for the previous month.
The major averages regained some ground going into the close but remained stuck in the red. The Dow fell by 50.79 points or 0.5 % to 10,856.63, the Nasdaq declined by 12.73 points or 0.5 % to 2,397.96 and the S&P 500 slipped by 3.84 points or 0.3 % to 1,169.43.
US dollar fell above 1.3500 against the Euro but further gains were limited for the greenback. Oil hit an 18-month high, adding to recent gains. U.S. crude for May delivery rose 66 cents to $84.42 a barrel, after hitting an intraday high of $84.62 and settling at $83.76 a barrel Wednesday, the highest close since October 2008.
Market kicks off new financial year with gains
Build-up of fresh positions on the first day of the new financial year helped the key benchmark indices snap a two-day slide. Markets across the globe logged on decent gains. The BSE 30-share Sensex was up 164.85 points or 0.94%, up 137.58 points from the day's low and off 13.94 points from the day's high.
The market breadth was strong. IT stocks were in demand on bargain hunting after a recent fall caused by appreciation of the rupee against the dollar. Banking stocks gained on fresh buying. Index heavyweight Reliance Industries (RIL) gained over 1.5% on expectations of robust Q4 earnings. Metal, infrastructure stocks and heavyweights from the capital goods sector also logged gains on fresh buying. Rate sensitive realty shares rose on bargain hunting after a recent fall triggered by worries higher interest rate on housing loans may crimp demand. But, telecom pivotals declined. Sugar stocks also declined on fears falling global sugar prices will impact profitability.
Firm Asian markets helped the domestic bourses kick off the new financial year 2010-2011 (FY 2011) on an upbeat note. The market pared gain later after the latest data showed that growth in the manufacturing slowed down in the month just gone by. The market gained strength in early afternoon trade as index heavyweight Reliance Industries extended (RIL) early gains. The market hit fresh intraday high in afternoon trade as European stocks rose in early trade. The market scaled fresh intraday high in mid-afternoon trade. Firm global stocks pushed the key benchmark indices to fresh intraday highs in late trade.
NSE's volatility index, India VIX declined sharply. The index tumbled 11.32% to 17.62. The index had witnessed a steep surge recently. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days. The lower the index, which is based the S&P CNX Nifty option prices, the higher the market's desire to take risk.
The National Stock Exchange (NSE) on Wednesday, 31 March 2010, announced a reduction in market lot size of a number of stocks in the derivatives segment. The revision was announced as a part of a bi-annual review. The market lot of a total of 124 stocks was revised downwards whereas those of a total of 59 stocks was revised upwards. The market lot of 7 stocks was kept unchanged.
The stock market remains closed on Friday, 2 April 2010, on account of Good Friday.
Food price index rose 16.35% in the year to 20 March 2010, higher than an annual rise of 16.22% in the previous week, government data showed on Thursday. The fuel price index rose 12.75%, higher than an annual rise of 12.68% in the previous week. Fuel costs have risen following a hike in domestic fuel prices and an upswing in world crude prices. The primary articles index was up 13.86% in the year to 20 March 2010.
India's manufacturing growth slowed down in March 2010, dropping from a 20-month-record in February 2010, as mounting cost pressures took a toll on expansion in output, a survey released today showed. The HSBC Markit Purchasing Managers' Index , based on a survey of 500 companies, fell to 57.8 in March 2010 from 58.5 in February 2010, which was the strongest since June 2008. A reading above 50 means activity is expanding. The new orders index fell to 62.7 in March from 64 in February
The Reserve Bank of India (RBI) has reportedly kept the limit of state governments' short-term borrowing from the central bank, called as Normal Ways and Means Advances, unchanged for the financial year started Thursday. The limit, which is also applicable for the union territory of Puducherry is placed at Rs 9925 crore.
Industrial output in February is expected to have grown 16% year-on-year, Industry Secretary said on Wednesday. The output in January grew an annual 16.7%.
Foreign direct investment rose 15.4% to $1.72 billion in February 2010 over February 2009, government said Wednesday.
Exports in February grew 34.8% on year to $16.09 billion, Trade Minister Anand Sharma said on Wednesday. Exports are expected to grow 15-20% in the year that starts on 1 April 2010, Sharma said. Imports, too, maintained momentum growing by 66% to $25 billion underscoring the strong revival in the domestic economy.
The government announced a fresh package of incentives for exporters of garments, engineering, electronics and agro products to select markets where demand for the products is yet to pick up. The sops, which will be doled out from Thursday, will be available for six months and are expected to cost the government Rs 625 crore.
The prime minister promised on Thursday to launch a guarantee of free elementary education, in a fresh sign the government was focusing on big-ticket programmes to consolidate its rural and poor voters.
The BSE Sensex vaulted 7,819.27 points or 80.5% in the year ended March 2010 (FY 2010) helped by heavy purchases by foreign institutional investors. Indian companied raised over Rs 47800 crore through public offers during the fiscal 2009-2010, following buoyant secondary market.
Global credit rating agency Standard & Poor's, last month, revised the outlook on India to stable from negative due to improved government finances.
The forecast for the southwest monsoon for 2010 is the next major trigger for the market. Good rains this year after last year's drought will boost farm output and rural incomes. But another monsoon failure will add to inflationary pressure which in turn may hamper the current strong economic rebound.
Tokyo-based Research Institute for Global Change has predicted normal monsoon rains in India for the current year. Agriculture secretary Prabeer Kumar Basu had also told media in Delhi last week that the monsoon rains for the year will be normal. The Indian Meteorological Department (IMD) issues a monsoon forecast, usually in the second half of April after considering weather observations in different parts of the world and extrapolating statistical data.
A weakening El Nino is a positive sign for the monsoon, Ajit Tyagi, director general at the India Meteorological Department, said on 18 March 2010. The cyclical heating of the Pacific Ocean known as El Nino will continue to fade, US forecasters said this month. The weather event, which occurs every four to seven years, brings more rain to South America and less precipitation to Asia.
European shares advanced Thursday, hitting a fresh 18-month high, as upbeat manufacturing data from Europe and China boosted sentiment, with banks among the biggest index gainers. The key benchmark indices in France, Germany and UK rose by between 0.59% to 1.06%.
Germany's seasonally adjusted retail sales fell 0.4% in real terms in February compared to the previous month, the Federal Statistical Office said on Thursday. Sales dropped 0.9% in real terms compared with the corresponding month in 2009
Equity markets are closed in the US and Europe on Friday, 2 April 2010, for the Easter holiday, and European equity markets are also closed Monday, 5 April 2010.
Asian stocks rose to an 11-week high on Thursday as China's manufacturing industry picked up and foreign buying boosted the technology-heavy markets of Taiwan and South Korea. The key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, Singapore, and Taiwan were up by between 1.17% to 1.92%.
China's official Manufacturing Purchasing Managers Index rose to 55.10 in March from 52 in February. Meanwhile a separate China manufacturing PMI released by HSBC Holdings Plc and Markit Economics also rose, to 57 in March 2010 from 55.8 in the previous month.
Japan's largest manufacturers became the least pessimistic about the economy since 2008 as a global rebound drove demand for exports. The Tankan index of sentiment rose to minus 14 in March 2010 from minus 25 in December 2009, the fourth straight gain, the Bank of Japan said in Tokyo today.
US stocks fell Wednesday after an unexpectedly negative private-sector jobs report unnerved investors ahead of Friday's key government labor market data. The Dow Jones Industrial Average dropped 50.79 points or 0.47% to 10,856.63. The Nasdaq Composite index slid 12.73 points or 0.53% to 2,397.96 and the Standard & Poor's 500 index shed 3.84 points or 0.33% to 1,169.43
Payrolls firm ADP said employers slashed 23,000 jobs from payrolls in March 2010, which came as a surprise to economists, who had expected an addition of 50,000 jobs.
Another economic data showed the Chicago purchasing manager's index dropped to 58.5 in March 2010 from 62.6 in February 2010.
The Labor Department's report on Friday will be closely watched by investors to see the strength of the budding recovery from the worst recession in a generation. Analysts expect the government would report March 2010 non-farm payrolls rose 190,000, after a decline of 36,000 in February 2010, and the unemployment rate to hold steady at 9.7%.
Trading in US index futures indicated that the Dow could rise 52 points at the opening bell on Thursday, 1 April 2010.
Closer home, the BSE 30-share Sensex was up 164.85 points or 0.94% to 17,692.62. The index surged 178.79 points at the day's high of 17,706.56 in late trade. The Sensex gained 27.27 points at the day's low of 17,555.04 in early trade.
The S&P CNX Nifty was up 41.40 points or 0.79% to 5290.50
The market breadth, indicating the overall health of the market, was strong. On BSE, 2248 shares advanced as compared with 650 that declined. A total of 63 shares remained unchanged.
The BSE Mid-Cap index rose 0.88%, underperforming the Sensex. The BSE Small-Cap index rose 2.43%, outperforming the Sensex.
Most sectoral indices on BSE edged higher. The BSE Realty index (up 1.11%), the BSE Metal index (up 1.43%), the BSE IT index (up 2.26%), the BSE Teck index (up 1.25%), the BSE Consumer Durables index (up 1.54%), the BSE Oil & Gas index (up 0.98%), the BSE Capital Goods index (up 1.37%), outperformed the Sensex.
The BSE HealthCare index (up 0.29%), the BSE Power index (up 0.80%), the BSE PSU index (up 0.33%), the BSE Bankex (up 0.57%), the BSE Auto index (down 0.08%), the BSE FMCG index (down 0.22%), underperformed the Sensex.
BSE clocked a turnover of Rs 4684 crore, higher than Rs 3,873.98 crore on Wednesday, 31 March 2010.
Among the 30-member Sensex pack, 21 advanced while the rest of them slipped. Hindustan Unilever (down 3.35%), Grasim (down 0.10%), and Tata Power (down 1.11%), edged lower from the Sensex pack.
IT stocks rose on bargain hunting after a recent slide triggered by a firm rupee. A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.
India's largest software services exporter by sales Tata Consultancy Services (TCS) surged 3.48% to Rs 808 and was the top gainer from the Sensex pack.
India's second largest software services exporter by sales Infosys rose 2.40% and India's third largest software services exporter by sales Wipro rose 1.73%
India's largest bank by net profit and branch network State Bank of India (SBI) rose 1.30% after the bank said its special home loan scheme has been extended up to 30 April 2010.
Other banking stocks were also logged marginal rise. India's largest private sector bank by net profit ICICI Bank rose 0.07% and India's second largest private sector bank by net profit HDFC Bank rose 0.03%.
United Bank of India galloped 4.37% after the lender got capital infusion of Rs 300 crore from the central government. The announcement was made after market hours on Wednesday, 31 March 2010.
Index heavyweight Reliance Industries (RIL) gained 1.70% to Rs 1092.90 on expectations of robust Q4 earnings. As per reports, RIL's Q4 advance tax surged to Rs 770 crore in Q4 March 2010 from Rs 365 crore a year ago.
RIL is reportedly likely to raise crude oil imports by about 22% this year ended March 2011 as it ramps up production at its giant complex, further stamping its mark on world markets.
Aban Offshore gained 2.82% after the company secured two orders aggregating $43.5 million. The company announced the fresh orders during trading hours today, 1 April 2010.
Infrastructure stocks were in demand ahead of US Treasury Secretary Timothy Geithner's visit to India next week. As per reports, the agenda will be opening India's vast infrastructure needs to financing from US companies.
India's largest private sector utility firm Reliance Infrastructure jumped 1.66% after the company's founders raised their stake to 43% from 38% by investing more than Rs 1821 crore.
Jaiprakash Associates (up 3.14%), Punj Lloyd (up 0.34%), Lanco Infratech (up 3.82%), GVK Power & Infrastructure (up 0.45%) and GMR Infrastructure (up 0.24%), gained.
Noida Toll Bridge Company rose 3.53% after the road transport and highways ministry increased toll rates on 24 stretches of public-funded highways from today, 1 April 2010.
India's largest engineering and construction firm by net sales Larsen & Toubro rose 1.52%. The company has reportedly accumulated an order book worth over Rs 1 lakh crore, the first private sector player in the country to achieve this feat.
India's largest power equipment maker by sales Bharat Heavy Electricals rose 1.33% as provisional net profit rose 37% to Rs 4287 crore in the year ended March 2010 over the year ended March 2009. Turnover rose 21.46% to Rs 34050 crore.
Crompton Greaves moved up 4.79% to Rs 273.60. The stock hit an all-time high of Rs 274.50 in intra-day trade today, 1 April 2010. The company had on 30 March 2010 acquired UK-based electrical engineering company Power Technology Solutions for around 30 million pound (Rs 204 crore).
Geithner will meet with India's Prime Minister Manmohan Singh and the finance minister Pranab Mukherjee during a visit to New Delhi on 9 April 2010. Earlier this month, Singh said that India needed to double spending on infrastructure to improve the standard of living of its poorest citizens.
Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 0.17% on 31 March 2010. Sterlite Industries (up 1%), Tata Steel (up 3.22%), Hindalco (up 1.27%), Jindal Saw (up 3.74%), JSW Steel (up 1.22%) and Hindustan Zinc (up 3.23%), edged higher.
Select auto stocks edged lower in volatile trade. India's largest tractor maker by sales Mahindra & Mahindra (M&M) fell 1.90% to Rs 534.85, off day's high of Rs 555.70. The company's total vehicle sales rose 20% to 31698 units in March 2010 over March 2009. The sales figures were released during market hours today.
India's largest car maker by sales Maruti Suzuki India declined 1.85% to Rs 1390 5 after striking day's high of Rs 1427.40. The company today said total sales rose 11% to 95,123 units in March 2010 over March 2009.
The company's total sales rose 29% to 10.18 lakh vehicles in the year ended March 2010 over the year ended March 2009.
India's largest bike maker by sales Hero Honda Motors advanced 0.43% and India's largest commercial vehicle maker by sales Tata Motors shot up 3.21%
TVS Motor Company gained 0.67% as the company's total two wheeler sales rose 24.35% to 1,46,736 units in March 2010 over March 2009. The company unveiled the monthly sales figure during trading hours today, 1 April 2010.
Rate sensitive realty shares rose on bargain hunting after a recent fall triggered by worries higher interest rate on housing loans may crimp demand. DLF (up 0.87%), Omaxe (up 1.76%), Sobha Developers (up 3.48%), Unitech (up 1.98%), HDIL (up 1.26%), gained.
Meanwhile, the introduction of the contentious service tax on apartments that are still under construction in the Union Budget 2010-2011 may reportedly put pressure on property prices.
India's largest mobile services provider by sales Bharti Airtel slumped 3.16% after Kuwait's Zain telecom, which sold its African assets to the company, announced a 39.40% slump in net profit for 2009 due to fallout from the global economic downturn.
Bharti cinched a deal on Tuesday to buy most of the African operations of Kuwait's Zain for $9 billion, making it the No.2 cellular company on the African continent and setting India's biggest carrier a tough financial and management challenge. The two companies, which entered exclusive talks in mid-February, signed a legally binding definitive agreement in Amsterdam, where Zain's Africa subsidiary is based.
India's second largest mobile services provider by sales Reliance Communications fell 0.12% on selling pressure.
Ambuja Cements declined 1.38%. The company's cement dispatch rose 11% to 19.16 lakh tones in March 2010 over March 2009.
Sugar stocks declined on fears falling global sugar prices may impact profitability.
Bajaj Hindustan (down 2.17%), Shree Renuka Sugars (down 4%), JK Sugar (down 5.11%), Sakthi Sugars (down 4.13%) and Balrampur Chini Mills (down 4.66%) edged lower.
New York raw sugar futures nearly halved to $16.59 cents a lb on Wednesday from a 29-year high of 30.40 cents a lb on 1 February 2010
Procter & Gamble Hygiene & Health Care spurted 15.15% to Rs 2315.30. The stock hit an all-time high of Rs 2372 in intra-day trade today, 1 April 2010.
Biocon gained 4.08%. Last week, Syngene International, a subsidiary of Biocon inked a collaboration pact with Endo Pharmaceuticals to develop novel biological therapeutic molecules against cancer.
Glenmark Pharmaceuticals rose 1.52% after the company's US unit got final approval from the US Food & Drug Administration for a generic drug. The company made this announcement during trading hours today, 1 April 2010.
Max India advanced 4.56% after the company said it will sell around 4% stake in Max New York Life Insurance to private lender Axis Bank.
Shree Ashtavinayak Cine Vision jumped 5% after the company said its board will meet on 6 April 2010 to consider buyback of shares. The company announced the board meet after market hours on Wednesday, 31 March 2010.
Sayaji Hotels shot up 5% after US-based Clearwater Capital Partners made an open offer to acquire an additional 20% stake in the Vadodara-based hospitality company.
Mundra Port & Special Economic Zone clocked the highest turnover of Rs 489.78 crore on BSE. ARSS Infrastructure (Rs 241.71 crore), Tata Steel (Rs 99.05 crore), Maytas Infra (Rs 77.98 crore) and Bharti Airtel (Rs 68.99 crore) were the other turnover toppers in that order.
Cals Refineries clocked the highest volume of 6.66 crore shares on BSE. FCS Software (1.46 crore shares), Mundra Port & Special Economic Zone (65.58 lakh shares), Shree Ashtvinayak Cine Vision (64 lakh shares) and Ispat Industries (62.66 lakh shares) were the other volume toppers in that order.
Grey Market Premiums - Apr 1 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Pradip Overseas | 110 | 10 to 12 |
| Persistent Sys. | 310 | 90 to 95 |
| Shree Ganesh Jewellery | 260 | Discount |
| Infrasoft Technology | 137 to 145 | 10 to 12 |
| Goenka Diamond & Jewellery | 135 | Discount |
Daily News Roundup - Apr 1 2010
Reliance Power plans to re-finance Rs150bn loan. (ET)
L&T has bagged an order of Rs5.6bn from Cognizant Technolgies to construct its IT campus development project in Chennai. (BL)
Videocon, Elcoteq call off stake sale negotiations. (ET)
Ericsson wins a US$1.3bn deal from Bharti Airtel. (BL)
L&T bags order worth Rs11.26bn. (BL)
GAIL to invest Rs60bn on 1,000km pipelines in FY11. (ET)
Sun TV promoter Maran is talking to hedge fund Wilbur Ross to buy its entire 30% stake in SpiceJet. (BS)
India has offered Kuwait stakes in ONGC and IOC plants. (BS)
GMR Infra may tie-up funds for its Rs21.9bn Hyderabad-Vijaywada highway project. (ET)
Indraprastha Gas to borrow debt of Rs10bn for expansion. (BS)
Nirma to merge Nirma Consumer Care with itself. (BS)
Essar Group to decide on buying refineries from Shell by June 2010. (BS)
Areva T&D bags order worth Rs700mn from BHEL. (BL)
Kalpataru Power Transmission subsidiary JMC projects in consortium with SREI Infra, has won a contract from NHAI. (BL)
Hindustan Dorr-Oliver bags orders worth Rs2.68bn. (BL)
Purvankara Projects ties up with Mexico’s Homex for projects in affordable entry level housing segment. (BL)
IRB Infra ties up with several banks to funds its projects. (BL)
Aditya Birla Retail has closed 39 stores including 2/3rd of its outlets in Gujarat. (ET)
Direct tax collections are set to fall short by Rs300bn of the revised target in FY10. (ET)
India’s net earnings from trade in services are headed for a first fall in nine years. (ET)
Himachal Pradesh and Uttarakhand lose tax-haven status. (ET)
February export rose 34% yoy, clocking gains for the four straight month. (ET)
FDI up 15% yoy in February to US$1.72bn. (ET)
Banks get two more years to meet IFRS norms. (ET)
Service tax levy on railway freight deferred to July 1st 2010. (BL)
Don’t get fooled!
“Only a fool tests the depth of the water with both feet.” – African proverb.
As we greet a new fiscal year following a stellar FY10, make sure you don’t get fooled. The main indices are set to open on a positive note. The initial gains may taper off as the day wears on as most players would prefer a ‘wait-and-watch’ stance ahead of earnings and RBI’s annual policy meet. Overall, the trend will remain insipid and sideways in a range. Auto and Cement stocks will be in focus as they release monthly as well as annual sales figures.
Most Asian markets are in the green, notwithstanding the overnight fall in US counterparts. Markets in Japan and China are up on encouraging economic data. Crude oil is trading above $83 per barrel, but the good news is that inflation back home has been showing some signs of cooling. Still, the RBI is likely to raise policy rates at its April 20 meeting.
For now, all eyes are on Thursday’s monthly payroll report in US. Wall Street finished lower on Wednesday. A private survey revealed surprising drop in jobs while a regional manufacturing report showed a bigger fall. In Europe, stock benchmarks closed in the red after a ratings agency downgraded five Greek banks.
Most markets are shut on Friday. So, enjoy the extended weekend and don’t take too many chances. The fact that the NSE Nifty has failed to sustain above 5300 is reason enough to be slightly cautious at this juncture. Even if it does surpass that milestone today, one will have to see where it finishes. Some selling pressure is expected beyond 5300 while support is placed at 5200. Though FII inflows have been strong and may remain so one should not get complacent. The gains in the past few sessions do not inspire much confidence. There are apprehensions of a fresh correction setting in though the same will not be too damaging.
FIIs were net buyers in the cash segment on Wednesday at Rs4.33bn on a provisional basis. Local funds were net sellers of Rs3.56bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers of Rs692.9mn. On Monday, FIIs were net buyers of Rs10.32bn in the cash segment, as per the SEBI web site.
Main Indian stock indices extended losses and closed in red for a second straight trading session on Wednesday. The fall could be attributed to offloading in FMCG, IT and select Telecom stocks. However, market breadth was in favour of the bulls for the second day running. Out of total 2864 stocks on the BSE, 1,581 advanced while 1,190 declined and 93 remained unchanged. Finally, the BSE Sensex fell 62 points to end at 17,528 and NSE Nifty ended lower by 13 points to close at 5,249.
No ‘Big Bang’ movements were seen on the bourses as the mood in global markets was subdued. The key indices opened slightly up before turning choppy. On the whole, the trend was lackluster ahead of the quarterly earnings. The small-cap and mid-cap counters remained abuzz though.
"A cooling was due for some time now, and once the key indices touched new 52-week highs on Monday, it seemed like only a matter of time before the bulls ran out of steam. Market players remained cautious and preferred to book profits at the peak. With beginning of new financial year, investors might continue to remain guarded ahead of the FY10 Q4 earnings", says Amar Ambani, Vice President Research, India Infoline.
The government will hike the prices of Petrol by 50-paisa/liter and that of Diesel by 26 paisa/liter from midnight. The increase in gasoline prices is largely because of introduction of the new emission norms, the Euro IV standard fuel regime from April 1 which will be implemented in 13 other metro cities. Click here to read full story...
In Asia, the Nikkei in Japan ended flat, Australia's S&P/ASX ended lower by 0.8%. However, Shanghai SE Composite fell 0.6% and Hang Seng index in Hong Kong was down 0.6%.
In Europe, stocks were trading with a positive bias. The DAX in Germany was up 0.0.3%, the CAC 40 index in France was up 0.3% and the FTSE in the UK was up 0.3%.
Coming back to India, among the BSE sectoral indices, the BSE FMCG index was top loser, the index fell 1.7%, followed by BSE IT index down 1.2% and Teck index down 0.8%.
Among the top gainers were, BSE Pharma index up 0.9% and the BSE Auto index was up 0.5%.
Outside the frontline indices, the big loses in the broader market were Gujarat NRE Coke, Balrampur Chini, Corp Bank, LITL and Bajaj Holdings. On the other hand, gainers included Exide Ind, P&G, Torrent Power and Ashok Leyland.
Shares Bharti Airtel gained half a per cent to end at Rs312. The Asia’s leading telecommunications service provider, announced that it has entered into a legally binding definitive agreement with Zain Group to acquire Zain Africa BV based on an enterprise valuation of US$10.7 bn.
Under the agreement, Bharti will acquire Zain’s African mobile services operations in 15 countries with a total customer base of over 42 mn. Zain is the market leader in ten of these countries and ranks second in four countries. With this acquisition, Bharti Airtel will be the world’s fifth largest wireless company with operations across 18 countries.
Bharti group’s global telecom footprint will expand to 21 countries along with the operations in Seychelles, Jersey, and Guernsey. The company’s network will now cover over 1.8 billion people - the second largest population coverage among Telcos globally. Click here to read the full story…
HDIL announced that the board of directors has approved to make Investment in shares of BKC Developers Pvt. Ltd. thereby making it a subsidiary Company.
The company also approved to allot 130,00,000 equity shares to the Promoter against convertible warrants issued to him on July 02, 2009.
The stock ended lower by 1% at Rs286, it opened at Rs289 it touched an intra-day high of Rs292 and a low of Rs285 and recorded volumes of over 1.2mn shares on BSE.
Strides Arcolab produces Renerve Capsules at their USFDA approved facility in Bangalore which follows high standards and globally acclaimed good manufacturing practices. Such products were distributed through Grandix.
On getting to know of our product 'Renerve' being tampered with and the expired goods meant for destruction finding their way into the market Strides alerted the authorities and made a complaint to the Drug Controller at Karnataka and Tamil Nadu, to investigate the issue. Strides also lodged a complaint with the Police authorities in Chennai to investigate the matter. Click here to read more...
The stock fell 2% to end at Rs338. It opened at Rs347 it touched an intra-day high of Rs348 and a low of Rs336 and recorded volumes of over 78,000 shares on BSE.
Shares of Nirma advanced by 3.5% to end at Rs183 after the company announced that the board of directors approved the scheme of arrangement in the nature of demerger and transfer of the demerged undertaking viz "Cement & Mining Division" of Nirma Credit and Capital Private Ltd., to the Company.
Board also has approved scheme of amalgamation of Nirma Consumer Care Ltd., a Wholly Owned Subsidiary, with the Company.
Shares of Srf Ltd gained by 2% to end at Rs197 after the company announced that it has commissioned and capitalized the project for manufacture of Laminated fabric with a capacity of 480 lac SQM p.a. at Kashipur (Uttarakhand). The scrip opened at Rs196 it touched an intra-day high of Rs201 and a low of Rs195 and recorded volumes of over 0.21mn shares on BSE.
Shares of Ennore Coke were locked to its maximum permissible limit (20%) to Rs98.30 after ~450,000 shares, or 3% of its equity, changed hands in two block deals on the BSE. The scrip opened at Rs82.40 it touched an intra-day high of Rs98.3 and a low of Rs74.9 and has recorded volumes of over 1mn shares on BSE.
Precious metals add shine
Precious metals add decent gains for the first quarter
Precious metal prices ended higher on Wednesday, 31 March 2010. Prices rose as the dollar weakened today.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Wednesday, gold for June delivery ended at $1,114.5 an ounce, higher by $8.8 (0.8%) an ounce on the New York Mercantile Exchange. Last week, gold ended marginally lower by 0.2%. In FY 2010, gold touched a high of $1,154 in January.
For the month of March, gold slid 0.4%. For the first quarter of this year, gold rose by 1.7%.
On Wednesday, May Comex silver futures ended higher by 20 cents (1.1%) at $17.53 an ounce. Last week, silver ended lower by 0.7%. For the month of March, silver ended higher by 5%. For the first quarter of this year, silver rose by 3%.
In the currency market on Wednesday, the dollar index, which measures the strength of the dollar against basket of six other currencies slipped. The dollar index gained about 0.7% this month. The dollar has rallied 4% this quarter.
In a report released earlier this week, the World Gold Council said that demand for gold from China could double in the next decade due to higher investment demand. As per the report, demand for gold in China reached 423 metric tons, or 466 short tons, last year, but domestic mines contributed only 314 metric tons, or 346 short tons. This shortfall creates a "snowball" effect as China's gold industry has to rely on imports.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.
At the MCX, gold prices for June delivery closed higher by Rs 57 (0.34%) at Rs 16,436 per ten grams. Prices rose to a high of Rs 16,507 per 10 grams and fell to a low of Rs 16,380 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 105 (0.39%) higher at Rs 26,935/Kg. Prices opened at Rs 26,846/kg and rose to a high of Rs 27,039/Kg during the day's trading.
Kolte-Patil Developers
Investors with short-term trading perspective can buy the stock of Kolte-Patil Developers. The stock is in an intermediate-term uptrend since last March. Following a short-lived correction last June, the stock has been moving sideways with an upward bias. Formation of higher troughs and higher peaks over the last six months is a positive from the intermediate-term perspective. The recent correction in the stock from its January peak halted just above its intermediate-term uptrend line as well as its 200-day exponential moving average.
The stock is also halting at the 38.2 per cent retracement of its uptrend from March 2009 lows, which denotes strength. The 10-day rate of change oscillator is just moving up towards the zero line while the 14-day relative strength index is poised at 49 indicating that this could be the beginning of a short-term up-move in the stock. The current up-move in the stock that commenced on Monday has the potential to take the stock price higher to Rs 58 or Rs 62 in the near-term. Investors can buy the stock with stop at Rs 54.5.
via BL
Subscribe to:
Posts (Atom)