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Monday, April 05, 2010
Sensex eyes 18000
Today's major news
Mute debut for Pradip Overseas, the stock closes 2.59% lower on its issue price
Forex kitty falls $1.15 billion to $277 billion
February exports surge 35% to $16 billion
Click here for more stories
Global signals
European markets were closed today and will re-open on Tuesday.
All the major Asian indices closed in the positive territory on Monday and Nikkei closed at its 18-month high level. Hang Seng & Shanghai Compsite were closed today. SGX Nifty closed 55 points higher.
US stock futures point to a higher start for the Wall Street on stronger March jobs data.
Indian indices
Taking lead from the strong global indices, Indian markets continue its winning streak on second straight session on Monday to test its 25-month high level.
Sensex opened merely a point higher (at 17694) and moved up on strong US jobs data, pointing to global economic recovery taking hold, and good auto sales numbers and encouraging export figures for February back home. Sensex spurted to its 25-month high of 17949 and Nifty also to its 25-month high of 5378. At closing bell, Sensex quoted at 17936, 243 points higher and Nifty 78 points higher at 5368.
Market sentiment
Advancing shares far outnumbered declining shares by 3:1. Of the 2,920 stocks traded on the BSE, 2,222 stocks advanced, whereas 640 stocks declined. Fifty eight stocks remained unchanged.
Sectoral & stock screening
BSE information technology (IT) was the only counter to trade lower. The rest of the 12 sectors were high with BSE Realty leading the chart with gain of 2.66%, followed by BSE Oil & Gas that was up 2.03% and BSE Auto that rose 2.00%.
The top three gaining stocks were — Allahabad Bank (up by 6.63%), Marico (up by 6.43%) and Andhra Bank (up by 6.31%).
The top three losing stocks were — Procter & Gamble (down by 4.85%), Bharat Electronics (down by 4.20%) and HPCL (down by 2.02%).
Viewing volumes
Steel maker Ispat Industries was the most actively traded share with over 0.70 crore shares changing hands on the BSE, followed by India’s second largest realty major Unitech (0.39 crore shares), Reliance group’s Reliance Natural Resources (0.35 crore shares), sugar major Shree Renuka Sugars (0.28 crore shares) and wind turbine maker Suzlon Energy (0.22 crore shares).
PAN Card Compulsory for all transactions
The start of this new financial year requires additional effort from tax payers, as they need to be vigilant about their tax deduction at source (TDS). For some years now, there have been efforts made to ensure a particular procedure is followed for TDS and this includes disclosing the permanent account number (PAN).
Starting April 1, the punishment has been changed to a higher tax deduction for those who do not disclose PAN.
Tax at varied rates is deducted for various incomes and then the net payment is made to the beneficiary. The nature of income or earning, the person or entity receiving the income, determine the rate at which the tax is deducted. For instance, when a bank pays interest in excess of Rs 10,000 to an individual at a single branch, the tax is deducted at source from the interest earned. The individual will take a tax cut at the rate of 10 per cent plus an education cess.
As per the new guidelines applicable from financial year 2011, if a deposit holder does not provide the PAN, there is an obligation on the bank to deduct 20 per cent from the interest he earned, that is, double the rate applicable under normal circumstance. Here are some cases where the tax burden can suddenly jump higher for an individual. For better, easier understanding, the education cess is not taken into account.
INSTANCES
Many times, an individual has the PAN but does not disclose it. Like in case of aprofessional who has worked for, say, Rs 35,000. This could be a one-off service to a new client and in such a case, the PAN might not have been provided at the time of payment.
In this case, the entity making the payment would ensure that instead of 10 per cent, the tax is deducted at 20 per cent for not getting the person's PAN. As a result, the individual's net pay for his service is reduced to Rs 28,000.
Such a situation is likely with a large oneoff transaction or even when the person does not normally come under the taxable limit. But, due to some extra payment, the tax is deducted at a higher rate.
THE VULNERABLE
Senior citizens are likely to get trapped in the higher TDS situation because they often have deposits with a bank or have invested in Government of India bonds, where the interest earned is more than Rs 10,000. Since the elderly have a basic exemption limit of Rs 2.4 lakh, their earnings may not come under the taxable limit. In that case, they can submit Form15H with the bank and avoid the TDS. However, if they fill the form but fail to mention the PAN, then they could be slapped with a tax deducted of 20 per cent instead of zero tax.
Usually, families have some deposits or bonds in the name of some members, even if they are unemployed like housewives. They have some deposits or government bonds in their name. Since, they are not working and do not fall under any tax bracket, they can submit Form 15G to the bank and avoid TDS. But, if they fail to provide the PAN in the form, they will be liable for a 20 per cent tax deduction at source.
PROCEDURES
There are often procedures adopted for various business dealings. One of it being quoting a PAN.
Often, when the mistake is realised, efforts are made to stop usage of the old number and replacing it with the correct one. In such a situation, could lead to authorities considering there was no PAN provided. Hence, the beneficiary could face a higher tax deduction.
For example, if there is a rent of Rs 20,000 paid per month to an individual, then the TDS on the amount would be 10 per cent. However, due to a wrong PAN disclosure, there could be some delay in conveying the correct number and in the interim, the tax could be deducted at the higher end.
DEDUCTORS MISTAKE
The worst situation is when an individual has provided his PAN to the concerned authorities. But, the there is a mistake committed by the authority. This could lead to either considering the number is misplaced or it is not given. Therefore, the deduction made is at a higher rate.
Example: The rate of tax deduction when acontractor is an individual is one per cent. If the authorities commit mistake with the person's PAN, he will be slapped ahigher tax outgo of 20 per cent. The difference will be huge, having a serious impact on the beneficiary.
WHAT TO DO
In sum, actual work begins even before the payment is made, because the PAN has to be conveyed to the payer. One condition in the new guidelines says the PAN has to be quoted in all correspondence, bills and vouchers exchanged between the deductor and the deductee, which will ensure the number is available with the concerned authorities.
Suppose a higher tax is deducted at source. The total tax to be paid would not increase, instead the individual will have to look for adjusting the deducted tax amount. For some people, this will take place only at the time of filing tax return, especially for a salaried people who might not have any additional tax burden to adjust the deducted amount. In such asituation, the tax return will show that arefund is due but this will take place only at the end of the financial year.
There can be quicker action if the individual has to pay some advance tax and this would be the case for professionals, salaried individuals with additional or other income. In this case, the adjustment will come earlier because they will pay the reduced amount of advance tax on the income after adjusting for the higher TDS made and hence need not wait till the year-end.
via Google Group
Non-farm adds fervor to Asian stocks
Investor sentiments remain strong even as most of markets remain closed
Stocks in Asia rose in a thinly traded session as hopes of a strong rebound in the US economy led by impressive job numbers propped up the sentiments. Though most of the markets in the region are having an extended weekend, the markets that are open for trading are mostly up in positive territory at present. The metals, banking and energy stocks advanced on the back of consumption led recovery in the world's largest economy. Dollar found some buying support in the late trading though, curving the gains somewhat for the benchmark equities.
With markets in Australia, China, Hong Kong, Taiwan and New Zealand closed for holidays, the investors in Asia did not have much to express their cheers to the strong US non-farm numbers. U.S. nonfarm payrolls rose 162000 in March, the largest since March 2007, and only the third time payrolls have increased since the recession hit in late 2007. The unemployment rate, however, held steady at 9.7% for a third straight month, the US Labor Department said on Friday.
Japan's benchmark Nikkei average closed up 0.47% at 11,339.30, after climbing as high as 11,408.17 in intraday moves, a fresh 18-month peak, as automakers such as Honda Motor and Toyota Motor continued to rise following a jump in U.S. auto sales in March. The Nikkei also drew support from the yen's fall last week to a seven-month low against the dollar. A fall in the yen can help Japanese exporters as it makes their products more competitive and can increase their overseas profits when repatriated back home.
Singapore stocks rose 0.86 per cent to close at their highest level this year backed by firmer US stock futures and the upbeat undertone in the Asian markets. . In other markets, Indonesian equities added 1.8% while Thailand stocks shed 0.4%.
Meanwhile, South Korea's Kospi index added 0.1% to 1724.99, not the kind of performance, which would have been expected after an announcement, that South Korea's government and its central bank pledged to work together to avoid the occurrence of another economic crisis
In Mumbai, sustained buying in index pivotals took the key benchmark indices to their highest levels in 25-months. Firm Asian stocks and higher US index futures underpinned sentiment. US markets settled at 18-month highs buoyed by an upbeat US job data. The BSE 30-share Sensex was provisionally up 241.32 points or 1.36%, up 240.28 points from the day's low and off 14.60 points from the day's high. The market extended gains in mid-afternoon trade to hit fresh 25-month highs.
Meanwhile, former Federal Reserve Chairman Alan Greenspan said on Sunday that the U.S. economy is building up momentum and the risk of a double-dip recession has faded significantly and that the odds of a double-dip recession in the U.S. had fallen very significantly in recent months.
In US, stocks closed the first day of the second quarter moderately higher on Thursday, amid caution ahead of Friday's monthly jobs report. The major averages all closed in positive territory, with the Dow and the S&P 500 setting fresh eighteen-month closing highs.
The Institute for Supply Management stated that activity in the manufacturing sector expanded for the eighth consecutive month in March. The index of activity in the sector rose by more than economists expected, reaching its highest level since July of 2004. On the other hand, the Commerce Department released a report showing that spending on construction declined by a sharper than expected margin in the month of February.
The major averages moved to the upside in late-session trading, with the Nasdaq returning to positive territory after a brief stint below the unchanged line. The Dow gained 70.44 points or 0.7% to finish at 10,927.07, the Nasdaq advanced by 4.62 points or 0.2 % to 2402.58 and the S&P 500 rose by 8.67 points or 0.7 % to 1,178.10.
In commodities, early weakness in dollar fuelled some buying for metals and energy counters though some moderation was witnessed in the prices later on as the dollar marched on to trade under 1.3500 against the Euro. The light, sweet crude oil futures for May hit a high of $85.89 per barrel and currently trade at $85.31, up 44 cents from the previous close as traders eyed some profit selling after the recent bout of gains.
NSE Bulk Deals to Watch - Apr 5 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-APR-2010,ALPHAGEO,Alphageo (India) Limited,KALPTARU INVESTMENTS PRIVATE LIMITED,BUY,29000,224.15,-
05-APR-2010,AMAR,Amar Remedies Limited,MANISH VRAJLAL SARVAIYA,BUY,287513,65.82,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,BP FINTRADE PRIVATE LIMITED,BUY,44111,1133.50,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,17183,1121.78,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,JMP SECURITIES PVT LTD,BUY,18928,1175.60,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,21374,1154.26,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,21217,1123.86,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,16455,1168.12,-
05-APR-2010,ARSSINFRA,ARSS Infra Proj. Ltd,BP FINTRADE PRIVATE LIMITED,BUY,129941,1059.99,-
05-APR-2010,ARSSINFRA,ARSS Infra Proj. Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,144127,1049.00,-
05-APR-2010,ARSSINFRA,ARSS Infra Proj. Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,172535,1065.90,-
05-APR-2010,ARSSINFRA,ARSS Infra Proj. Ltd,SARAVANA STOCKS PRIVATE LIMITED,BUY,90000,1021.40,-
05-APR-2010,BIRLAPOWER,Birla Power Solutions Ltd,S V ENTERPRISES,BUY,4900772,3.35,-
05-APR-2010,DCM,DCM Ltd,JAIN ORNA PVT LED,BUY,130614,50.80,-
05-APR-2010,DPSCLTD,DPSC Limited,ORBIS POWER VENTURE PRIVATE LIMITED,BUY,733085,710.00,-
05-APR-2010,GMRFER,GMR Ferro Alloys & Indust,BP FINTRADE PRIVATE LIMITED,BUY,84554,48.87,-
05-APR-2010,GMRFER,GMR Ferro Alloys & Indust,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,80035,49.15,-
05-APR-2010,HANUNG,Hanung Toys and Textiles,AJMERA SHARES TRADING PVT LTD,BUY,2588,229.94,-
05-APR-2010,HINDMOTOR,Hindustan Motors Ltd.,SWAPAN MITRA,BUY,2372344,24.25,-
05-APR-2010,JMCPROJECT,JMC Projects (I) Ltd.,MANISH VRAJLAL SARVAIYA,BUY,330934,201.03,-
05-APR-2010,KOTAKNIFTY,Kotak Nifty ETF,KOTAK SECURITIES LTD.,BUY,10471,532.77,-
05-APR-2010,NOIDATOLL,Noida Toll Bridge Company,DEUTSCHE SECURITIES MAURITIUS LTD.,BUY,1134075,32.60,-
05-APR-2010,OMNITECH,Omnitech Infosolutions Li,PRIMORE SOLUTIONS PVT.LTD,BUY,125848,186.56,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,AMAR KANAIYALAL CHAUHAN,BUY,350448,112.79,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,1647294,110.44,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,KAIZEN STOCKTRADE PVT LTD,BUY,370595,111.38,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,205324,110.22,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,393148,109.34,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,392569,110.66,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,580596,109.53,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,OM INVESTMENTS,BUY,245675,110.63,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,R.M. SHARE TRADING PVT LTD,BUY,284057,111.27,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,SS CORPORATE SECURITIES LIMITED,BUY,203755,113.55,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,351397,111.49,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,TRIPTI SINGHVI,BUY,310228,111.65,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,VAIBHAV DOSHI,BUY,260810,108.44,-
05-APR-2010,RANASUG,RANA SUGARS LTD,BASMATI SECURITIES PVT LTD,BUY,860000,12.60,-
05-APR-2010,ROHITFERRO,Rohit Ferro-Tech Limited,BP FINTRADE PRIVATE LIMITED,BUY,274746,50.36,-
05-APR-2010,ROHITFERRO,Rohit Ferro-Tech Limited,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,213336,51.43,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,159113,109.21,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,AMAR KANAIYALAL CHAUHAN,BUY,285576,105.27,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,DEEPAK SHANTILAL CHHEDA,BUY,104634,108.77,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,478352,106.81,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,HEMANSHU RAMNIKLAL SHAH.,BUY,347390,112.87,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,139440,105.60,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,176141,106.56,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,NIKHIL VINUKANT SHAH,BUY,253505,118.59,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,PARSVANATH FINCON PRIVATE LIMITED,BUY,13403,101.99,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,PRUDENTIAL STOCK & SECURITIES LTD,BUY,530236,100.25,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,RAJEEV KUMAR AGARWAL,BUY,96500,111.86,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,SMITA M PATEL,BUY,92090,110.40,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,253532,109.39,-
05-APR-2010,ALPHAGEO,Alphageo (India) Limited,VINTAGE CAPITAL MARKETS LIMITED,SELL,29000,224.15,-
05-APR-2010,AMAR,Amar Remedies Limited,MANISH VRAJLAL SARVAIYA,SELL,222892,65.70,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,BP FINTRADE PRIVATE LIMITED,SELL,42419,1134.01,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,SELL,17183,1123.83,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,JMP SECURITIES PVT LTD,SELL,13878,1165.49,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,21374,1155.46,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,21217,1126.64,-
05-APR-2010,AMRUTANJAN,Amrutajan Health Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,11135,1156.17,-
05-APR-2010,ARSSINFRA,ARSS Infra Proj. Ltd,BP FINTRADE PRIVATE LIMITED,SELL,130642,1058.63,-
05-APR-2010,ARSSINFRA,ARSS Infra Proj. Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,144127,1048.53,-
05-APR-2010,ARSSINFRA,ARSS Infra Proj. Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,172735,1066.76,-
05-APR-2010,BIRLAPOWER,Birla Power Solutions Ltd,S V ENTERPRISES,SELL,4900772,3.41,-
05-APR-2010,BLKASHYAP,B. L. Kashyap and Sons Li,BLACKSTONE ASIA ADVISORS L.L.C. A/C THE INDIA FUND INC,SELL,113213,356.03,-
05-APR-2010,DCM,DCM Ltd,JAIN ORNA PVT LED,SELL,488,50.20,-
05-APR-2010,DPSCLTD,DPSC Limited,DESCON LIMITED,SELL,732883,710.00,-
05-APR-2010,GMRFER,GMR Ferro Alloys & Indust,BP FINTRADE PRIVATE LIMITED,SELL,49553,48.77,-
05-APR-2010,GMRFER,GMR Ferro Alloys & Indust,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,40030,49.15,-
05-APR-2010,HANUNG,Hanung Toys and Textiles,AJMERA SHARES TRADING PVT LTD,SELL,127060,230.94,-
05-APR-2010,HINDMOTOR,Hindustan Motors Ltd.,UNIVERSAL TRADING COMPANY LTD.,SELL,2372344,24.25,-
05-APR-2010,JMCPROJECT,JMC Projects (I) Ltd.,MANISH VRAJLAL SARVAIYA,SELL,330934,204.15,-
05-APR-2010,KOTAKNIFTY,Kotak Nifty ETF,ANVIL SHARE & STOCK BROKING PVT. LTD,SELL,4100,533.43,-
05-APR-2010,KOTAKNIFTY,Kotak Nifty ETF,KOTAK SECURITIES LTD.,SELL,100,532.50,-
05-APR-2010,KOTAKNIFTY,Kotak Nifty ETF,MEENA AGARWAL,SELL,4948,532.00,-
05-APR-2010,NOIDATOLL,Noida Toll Bridge Company,HDFC MUTUAL FUND,SELL,4500000,32.76,-
05-APR-2010,OMNITECH,Omnitech Infosolutions Li,PRIMORE SOLUTIONS PVT.LTD,SELL,125848,185.98,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,AMAR KANAIYALAL CHAUHAN,SELL,350448,107.90,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,1647294,110.33,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,205324,110.31,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,393148,109.42,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,392569,110.47,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,580596,109.25,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,OM INVESTMENTS,SELL,245675,110.69,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,R.M. SHARE TRADING PVT LTD,SELL,284057,111.07,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,SS CORPORATE SECURITIES LIMITED,SELL,203755,111.44,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,351397,110.46,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,TRIPTI SINGHVI,SELL,313787,111.77,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,VAIBHAV DOSHI,SELL,260810,110.38,-
05-APR-2010,PRADIP,Pradip Overseas Ltd,VCM LTD.,SELL,470000,113.73,-
05-APR-2010,RANASUG,RANA SUGARS LTD,BASMATI SECURITIES PVT LTD,SELL,860000,12.61,-
05-APR-2010,ROHITFERRO,Rohit Ferro-Tech Limited,BP FINTRADE PRIVATE LIMITED,SELL,264172,50.41,-
05-APR-2010,ROHITFERRO,Rohit Ferro-Tech Limited,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,204336,51.24,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,159113,109.66,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,AMAR KANAIYALAL CHAUHAN,SELL,285576,105.74,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,BHAKTISURI SHARES AND SERVICES,SELL,372795,103.44,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,DEEPAK SHANTILAL CHHEDA,SELL,104634,109.05,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,478352,106.91,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,HEM STOCKS AND SHARES SERVICES PRIVATE LIMITED,SELL,142204,106.47,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,HEMANSHU RAMNIKLAL SHAH.,SELL,347390,113.78,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,KHATRI ENTERPRISE(PROPRIETOR:HIREN KHATRI),SELL,225486,109.79,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,139440,105.14,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,176141,106.55,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,NIKHIL VINUKANT SHAH,SELL,253505,119.83,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,PARSVANATH FINCON PRIVATE LIMITED,SELL,480000,108.10,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,PRASANN SHARES & SERVICES PRIVATE LIMITED,SELL,185000,108.21,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,PRUDENTIAL STOCK & SECURITIES LTD,SELL,530236,100.26,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,RAJEEV KUMAR AGARWAL,SELL,96500,115.74,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,REAL MARKETING PVT LTD,SELL,170000,104.51,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,SHREYASH M PATEL,SELL,229000,108.44,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,SMITA M PATEL,SELL,92090,110.58,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,SUBODHSAGAR SHARES & SERVICES PRIVATE LIMITED,SELL,340734,102.77,-
05-APR-2010,SYNCOM,Syncom Healthcare Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,253532,109.94,-
Reliance Infrastructure, Hero Honda vault as Sensex, Nifty scale 25-month highs
The key benchmark indices attained their highest closing level in more than 25 months aided by firm Asian stocks and higher US index futures. US markets settled at 18-month highs on Thursday, 1 April 2010 and some Asian markets zoomed to 19-month highs in today's trade buoyed by an upbeat US job data. The BSE 30-share Sensex rose 243.06 points or 1.37%, up close to 240 points from the day's low and off close to 10 points from the day's high.
NSE's volatility index, India VIX, edged lower, extending Thursday's (1 April 2010) sharp slide. The index fell 2.55% to 17.17. 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 market came off the higher level in early trade after a firm opening triggered by positive global cues. The market surged to a fresh 25-month high in early afternoon trade. Stocks held firm in afternoon trade. The market extended gains in mid-afternoon trade to hit fresh 25-month highs. Buying frenzy in index pivotals in late trade helped indices register fresh multi-month highs later.
The market breadth was strong. Auto stocks were in demand following good March 2010 monthly sales of auto firms. Metal stocks rose following firm prices on the London Metal Exchange on 1 April 2010. IT stocks declined in volatile trade on a firm rupee. Among heavyweight stocks, index heavyweight Reliance Industries (RIL) advanced almost 3%.
Stock-specific action may rule the roost in the near term based on expectations of Q4 March 2010 results. IT bellwether Infosys kickstarts the reporting season on 13 April 2010.
Emerging market equity funds ended March 2010 with their seventh consecutive week of inflows, bringing net inflows to nearly $7.6 billion in the first quarter. All four of the major fund groups took in modest amounts of fresh money, ranging from a net $6 million for Latin America Equity Funds to $222 million for EMEA Equity Funds. China equity funds, however, recorded inflows for only the third week so far this year as some investors continue to be put off by rich valuations, growing exchange rate and trade frictions with the United States and uncertainty about just how far authorities will go to prevent a property bubble.
Asian markets edged higher on Monday, 5 April 2010, as a strong US job report boosted confidence the global economy is recovering. Key benchmark indices in Indonesia, Japan, South Korea and Singapore were up by between 0.09% to 2.02%. Markets in Australia, New Zealand, China, Hong Kong and Taiwan were shut for holidays.
US markets advanced on Thursday, 1 April 2010 on upbeat economic data. However, anxiety about March payrolls report scheduled to be released on Friday 2 April 2010 and profit booking before the long Easter weekend, capped gains. The Dow Jones Industrial Average climbed 70.44 points, or 0.65%, to 10,927.07. The Standard & Poor's 500 Index rose 8.67 points, or 0.74%, to 1,178.10 and the Nasdaq Composite index added 4.62 points, or 0.19%, to 2,402.58.
An index of US manufacturing activity in March 2010 rose to its highest level in over five-and-half years, the Institute for Supply Management said. Earlier, a US Labour Department report showed initial weekly claims for jobless benefits fell more than expected.
US employers created jobs in March 2010 at the fastest rate in three years, the strongest signal yet that the US recovery is on a solid footing. US nonfarm payrolls rose 162,000 in March, the largest since March 2007, and only the third time payrolls have increased since the recession hit in late 2007. The unemployment rate held steady at 9.7% for a third straight month, the Labor Department said on Friday.
Trading in US index futures indicated that the Dow could rise 30 points at the opening bell on Monday, 5 April 2010.
The US Federal Reserve holds a closed-door meeting on Monday to review the discount rate, now at 0.75%. That rate is what Fed banks charge to institutions seeking emergency funds.
European equity markets were closed on Monday, 5 April 2010, for a holiday.
The world economy could grow 4.1% this year, 0.2 points more than previously forecast, the International Monetary Fund (IMF) said in the latest draft during the weekend of its World Economic Outlook. The US economy is now expected to grow 3% this year, instead of the 2.7% forecast in the IMF's January report. The IMF is due to publish its next World Economic Outlook on 21 April 2010.
According to the draft, euro zone growth this year is now forecast to be 0.8%, down 0.1 points from January's estimate. In 2011, the figure is seen at 1.5%, also down 0.1 points from a previous estimate, the report said.
Closer home, top banking executives have told the Reserve Bank of India (RBI) that credit growth will be over 20% in FY 2011 and they don't expect interest rates to go up soon. They don't feel there is any upward pressure on interest rates. Some bank chiefs met RBI Governor D. Subbarao ahead of the annual monetary policy scheduled for 20 April 2010 to discuss on issues including outlook on credit, deposit growth, lending rates, economic growth and inflation.
Finance Minister Pranab Mukherjee during the weekend said the economy would soon return to the 9% growth trajectory, helped by various measures announced in the Union Budget 2010-11. He said the economy would post 8.25-8.75% growth in the current fiscal after recording 7.2% growth in 2009-10, which is impressive by global standards.
Prime Minister Manmohan Singh recently said that the economy would get back to 9% growth by the end of the Eleventh Five Year Plan period, and do even better after that.
After clocking 9% plus growth for three straight years till 2007-08, the country's GDP grew by a relatively modest rate of 6.7% in 2008-09 on account of the international financial crisis.
The 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 on Thursday 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 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. As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 14,792.31 crore in March 2010. Indian companied raised over Rs 47,800 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. The June-September monsoon season is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector.
Tokyo-based Research Institute for Global Change has predicted normal monsoon rains in India for the current year. Agriculture secretary P K Basu said in a media interview today, 5 April 2010, that early signs indicate normal monsoon rains this year. 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 last month. The weather event, which occurs every four to seven years, brings more rain to South America and less precipitation to Asia.
The BSE 30-share Sensex rose 243.06 points or 1.37% to 17,935.68, its highest closing since 19 February 2008. The index rose 255.92 points at the day's high of 17,948.54 in late trade. The Sensex gained 1.04 points at the day's low of 17,693.66 in early trade.
The S&P CNX Nifty rose 77.90 points or 1.47% to 5,368.40 its highest closing since 5 February 2008. Nifty hit an intra-day high of 5,377.55.
The market breadth, indicating the overall health of the market, was strong. On BSE, 2224 shares advanced as compared with 642 that declined. A total of 59 shares remained unchanged.
The total turnover on BSE amounted to Rs 4398 crore lower than Rs 4704.59 crore on Thursday,1 April 2010.
From the 30 Sensex stocks, 24 advanced while the rest of them slipped.
The BSE Mid-Cap index rose 1.45% and the BSE Small-Cap index rose 1.97%. Both the indices outperformed the Sensex.
The BSE Realty index (up 2.66%), the BSE Oil & Gas index (up 2.03%), the BSE Auto index (up 2%), the BSE Bankex (up 1.86%), the BSE Metal index (up 1.71%), the BSE Power index (up 1.46%), the BSE HealthCare index (up 1.44%), outperformed the Sensex.
The BSE IT index (down 0.02%), the BSE FMCG index (up 0.33%), the BSE Capital Goods index (up 0.44%), the BSE Consumer Durables index (up 0.7%), the BSE Teck index (up 0.72%), the BSE PSU index (up 0.97%), underperformed the Sensex.
India's largest private sector power utility firm by sales Reliance Infrastructure jumped 5.1% to Rs 1067.45 after the company commissioned a 600 megawatt unit at the Rajiv Gandhi Khedar Thermal Power Plant at Hisar in Haryana. It was the top gainer from the Sensex pack.
But India's largest engineering and construction firm by sales Larsen & Toubro (L&T) was down 0.15% at Rs 1647.45. The stock slipped from day's high of Rs 1660. The company today said it has received an order worth Rs 1,060 crore from Gujarat State Petroleum Corporation (GSPC) to build an offshore oil platform.
Some other capital goods stocks rose. Praj Industries, ABB, Bharat Heavy Electricals, BEML and Siemens rose by between 0.7% to 4.02%.
Index heavyweight Reliance Industries (RIL) gained 2.88% to Rs 1125.15 after a foreign brokerage upgraded the stock to buy from neutral citing earnings growth, exploration and production upside.
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.
Auto stocks were in demand following robust March 2010 sales figures. India's top motorbike maker by sales Hero Honda Motors surged 4.4% after it said sales rose 17% in March 2010 over March 2009.
India's largest truck maker by sales Tata Motors gained 0.64% after it reported a 38% jump in sales in March 2010 from a year earlier.
India's top small car maker by sales, Maruti Suzuki India rose 0.35%. The company raised the price of its vehicles across different models due to higher input costs and expenses from the introduction of the new Bharat Stage IV emission norms. Among different models, Ritz and A-Star will cost Rs 1,000 more; Estillo will become costlier by Rs 2,500 and Swift will cost Rs 3,750 more. Popular model Maruti 800 will also see a price rise of Rs 3,000 costlier, among others.
India's leading tractor maker by sales Mahindra & Mahindra spurted 2.5% after sales rose 20% to 31,698 vehicles in March 2010 over March 2009.
India's second largest two- wheeler maker Bajaj Auto gained 5.78% to Rs 2115 after it reported 85.12% spurt in its motorcycle sales at 2,44,828 units in March 2010 over March 2009. The stock hit a lifetime high of Rs 2215 in intra-day trade today.
Metal stocks were in demand after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.13% on 1 April 2010. Sterlite Industries, Hindalco, Jindal Stainless, National Aluminium Company and Hindustan Zinc rose by between 0.41% to 1.58%.
Steel stocks were in demand after steel maker hiked prices on increase in input costs. JSW Steel gained 2.34% after the company hiked steel prices by between 5-7% effective from 1 April 2010.
Shares of the world's No. 8 steelmaker Tata Steel gained 4.06% after the company raised prices in India by a range of Rs 2,500 to Rs 3,000 a tonne. Indian operations account for a quarter of its global capacity of about 30 million tonnes.
India's largest real estate company by sales DLF shot up 3.28% on reports the company has appointed an advisor to find buyers for Aman Resorts, a luxury hotel chain it had acquired in November 2007 for $400 million.
Among other realty stocks, Omaxe, Indiabulls Real Estate, Unitech, HDIL rose by between 1.35% to 3.4%.
India's largest mobile services provider by sales Bharti Airtel advanced 4.45%. On 30 March 2010, Bharti Airtel cinched a deal 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.
IT stocks fell on a firm rupee. India's largest software services exporter by sales Tata Consultancy Services (TCS) fell 0.64%. India's third largest software services exporter by sales Wipro fell 0.04% to Rs 723,25 after touching day's low of Rs 713.10
India's second largest software services exporter by sales Infosys was flat at Rs 2672.90. The stock recovered from day's low of Rs 2640.10
The rupee rose to a 19-month high against the dollar on Monday, tracking gains in domestic shares, with a weak dollar overseas also helping the sentiment. The partially convertible rupee was at 44.43/44, stronger than Wednesday's close of 44.89/90. The foreign exchange market was shut on Thursday for the annual book closing of banks, and also for Good Friday.
A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports.
Shares of oil marketing firms (PSU OMCs) fell after crude oil prices gained more than $1 a barrel on the New York Mercantile Exchange on Thursday, 1 April 2010. Bharat Petroleum Corporation (BPCL) (down 0.8%), Hindustan Petroleum Corporation (HPCL) (down 2.02%) and Indian Oil Corporation (IOC) (down 1.46%), edged lower
Higher crude oil prices will increase under-recoveries of state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at controlled prices. Light, sweet crude oil gained $1.11 or 1.3%, to $84.87 a barrel on the New York Mercantile Exchange on Thursday, 1 April 2010, the highest settlement price since 9 October 2008, after upbeat US economic data signaled better oil demand ahead..
Banking stocks were in demand tracking firm American depository receipt (ADR) on Thursday, 1 April 2010. India's largest private sector bank by net profit ICICI Bank rose 3.28% after its ADR gained 1.99%.
India's second largest private sector bank by net profit HDFC Bank advanced 0.21% after its ADR jumped 3.46%.
India's largest bank by net profit and branch network State Bank of India (SBI) rose 1.61% after the bank said its special home loan scheme has been extended up to 30 April 2010.
The Reserve Bank of India (RBI), last week, relaxed asset classification norms for loans for projects that have been delayed by factors beyond the promoters' control. Under the current norms, infrastructure projects have to commence operations within two years of completion. For non-infrastructure project loans, the deadline for starting operations is six months. If projects are not started within that period, banks must treat them as bad debts.
In its latest notification, however, RBI said banks could continue treating an infrastructure loan as "standard" for another two years if the commencement of the project has been delayed due to arbitration proceedings or a court case. However, to avail of the extension, the account must be serviced regularly, or the interest due be paid regularly.
Shares of Pradip Overseas settled at Rs 107.15 on BSE, at a discount of 2.6% to the initial offer price of Rs 110. The stock debuted at Rs 120, a premium of 9.10% over the issue price.
Cals Refineries clocked the highest volume of 3.34 crore shares on BSE. Pradip Overseas (1.95 crore shares), Birla Power Solutions (1.93 crore shares), Shree Ashtavinayak Cine Vision (1.67 crore shares) and Ispat Industries (0.7 crore shares) were the other volume toppers in that order.
ARSS Infra clocked the highest turnover of Rs 289.78 crore on BSE. Pradip Overseas (Rs 209.32 crore), Jubilant Food Organoyss (Rs 151.93 crore), Tata Steel (Rs 123.75 crore) and Reliance Industries (Rs 90.55 crore) were the other turnover toppers in that order.
Daily Call - Apr 5 2010
Benchmark indices managed to close in green for the eighth consecutive week on the back of smart recovery on the last trading session of the truncated trading week. On the first session of the week Nifty gained 0.4% but the RSI failed to make a new top, reconfirming the negative divergence. Following two sessions were marked by correction which took the benchmark around 1% lower from Monday’s close. But a smart rally of 0.8% on Thursday made the Nifty close higher by 0.16% on weekly basis.
The cautious view on the market continues as the negative divergence is still in place. Nifty is likely to face a stiff resistance around 5330, the top made on Monday. On the downside, 5235, the low made on Wednesday, is now a crucial support, a breach of which can take the benchmark to around 5170, where a trend line adjoining bottoms of 8th and 25th Feb presents a support. Traders need to be nimble footed and keep a strict stop loss of 5235 in long positions. Only a decisive close above 5330 along with the support of RSI will make the view turn bullish. Meanwhile, concentrate on mid-cap and Small-cap stocks which were underperformers in the earlier rally and might chart their own course.
Grey Market Premiums - Apr 5 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Pradip Overseas | 110 | 11 to 14 |
| Persistent Sys. | 310 | 112 to 115 |
| Shree Ganesh Jewellery | 260 | Discount |
| Infrasoft Technology | 145 | 15 to 17 |
| Goenka Diamond & Jewellery | 135 | Discount |
Indian markets head to strong opening
Headlines for the day:
RBI order a base blow for some PSUs
BHEL to invest Rs75-cr to up capacity by 25%
NMDC raises base ore prices by 34-56%
Events for the day:
Major corporate action
Pradip Overseas Ltd to be list today
Ex-date for bonus issue of Cadila Health in the ratio of 1:2
For more Events, log on to Sharekhan.com
Results: Allied Computers International
Pre-market report
Global signals
The European stocks closed 18-month high on Thursday, led by financials, as encouraging economic figures from Asia, Europe and the United States boosted optimism for economic recovery. The European markets will be closed today i.e April 5, 2010.
The US stocks closed higher on Thursday on back of the upbeat economic data.
In today's trade, all the Asian indices are trading in the positive territory, except Kospi. At the time of writing this report, SGX Nifty was trading 33 point higher.
Indian markets
On the back of the positive signals from the Asian markets, the Indian markets are expected to open strong. The market sentiments are positive globally with strong positive bias on the back of improving global sentiments. With the earning season in the insight with no triggers for today, the Indian markets will suite the global markets. With the FIIs pumping in money and the improving sentiments in the global markets, it is expected to pump-up more money in the higher emerging market like India.
Commodity cues
In the commodity space, the crude oil prices gained for the third straight session, with the Nymex light crude oil for the May series advanced by $1.11 per barrel, whereas in the metals space, the Comex Gold for the May series up by $11.80 and the Comex Silver for the May series was up by $0.36 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On March 31, 2010, FIIs were the net buyers of the Indian stocks to the tune of Rs840.50 crore, whereas the domestic mutual funds, on March 30, 2010, were the net sellers of the stocks to the tune of Rs100.20 crore.
Positive global cues may trigger a firm start
The market is likely to open higher after a long weekend supported by positive global cues. US markets settled at 18-month highs on Thursday, 1 April 2010 following upbeat jobs data. Equity market remained closed on Friday, 2 April 2010, on account of Good Friday. The S&P CNX Nifty futures for April 2010 expiry were up 32 points in Singapore. Also the upgrade from International Monetary Fund would lift sentiment.
Stock-specific action may rule the roost in the near term based on expectations of Q4 March 2010 results. IT bellwether Infosys kickstarts the reporting season on 13 April 2010.
Asian markets edged higher on Monday as US jobs data fuelled hopes of a smart recovery. Key benchmark indices in Indonesia, Japan, Singapore and South Korea were up by between 0.16% to 2.29%.
US markets advanced on Thursday, 1 April 2010 on upbeat economic data. However, anxiety about March payrolls report scheduled to be released 2 April 2010 and profit booking before the long Easter weekend, capped gains.
The Dow Jones Industrial Average climbed 70.44 points, or 0.65%, to 10,927.07. The Standard & Poor's 500 Index rose 8.67 points, or 0.74%, to 1,178.10 and the Nasdaq Composite index added 4.62 points, or 0.19%, to 2,402.58.
An index of US manufacturing activity in March 2010 rose to its highest level in over five-and-half years, the Institute for Supply Management said. Earlier, a US Labour Department report showed initial weekly claims for jobless benefits fell more than expected.
US employers created jobs in March 2010 at the fastest rate in three years, the strongest signal yet that the US recovery is on a solid footing. US nonfarm payrolls rose 162,000 in March, the largest since March 2007, and only the third time payrolls have increased since the recession hit in late 2007. The unemployment rate held steady at 9.7% for a third straight month, the Labor Department said on Friday.
Trading in US index futures indicated that the Dow could rise 47 points at the opening bell on Monday, 5 April 2010.
The world economy could grow 4.1% this year, 0.2 points more than previously forecast, the International Monetary Fund (IMF) said in the latest draft during the weekend of its World Economic Outlook. The U.S. economy is now expected to grow 3% this year, instead of the 2.7% forecast in the IMF's January report. The IMF is due to publish its next World Economic Outlook on 21 April 2010.
According to the draft, euro zone growth this year is now forecast to be 0.8%, down 0.1 points from January's estimate. In 2011, the figure is seen at 1.5%, also down 0.1 points, the reports said.
Equity markets remained closed in the US and Europe on Friday, 2 April 2010, for the Easter holiday with European equity markets also remaining closed on Monday, 5 April 2010.
Back home auto stocks – Bajaj Auto, Tata Motors and Hero Honda Motors may see action following release of March 2010 monthly sales figures. Cement stocks may hog limelight post release of March 2010 monthly sales figures. Steel stocks may be in demand after they reportedly hiked prices on increase in input costs.
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 on Thursday 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 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 47,800 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.
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 advanced 164.85 points or 0.94% to 17,692.62 and the S&P CNX Nifty rose 41.40 points or 0.79% to 5290.50
Foreign funds bought shares worth Rs 106.40 crore and domestic funds bought shares worth Rs 452.33 crore on Thursday, 1 April 2010, as per provisional data.
As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 14,792.31 crore in March 2010.
Job report to dictate momentum at Wall Street
Nonfarm payrolls in US rise for third time in twenty-seven months
US stocks registered gains for fifth straight week that ended on Thursday, 01 April, 2010. The week was a holiday shortened one due to market being closed on the last day of the week on Friday, 02 April because of Good Friday. Economic reports and a few earning reports in the technology sector dominated the week. The week marked quite low volume of trading and all the weekly gains were incurred in the last trading day.
For the week, that ended on Thursday, 01 April, 2010, Dow ended higher by 76.71 points (0.7%) at 10,927.07. Nasdaq ended higher by 7.45 points (0.3%) at 2402.58. S&P 500 gained 11.51 points (1%) at 1178.1. Eight of ten economic sectors ended higher led by substantial gains in energy, materials, and utilities sectors. The consumer discretionary sector lagged while technology sector remained unchanged.
In the technology sector, during the week, Research In Motion was a main laggard, shedding 8.8%, after posting earnings that missed Wall Street's expectations. But Apple posted good gains amid reports it is working on a new iPhone that may be available on carriers other than AT&T (T).
The economic reports during the week had limited impact on trading. Consumption expenditures in February increased 0.3%, as expected, while core personal consumption expenditures were flat, which was not too much of a surprise since the consensus had called for a tepid 0.1% increase. Total and disposable income posted no growth in February, a 0.1% increase had been expected.
March Consumer Confidence rebounded to 52.5 from 46.4, topping the 51 consensus. The ISM Manufacturing Index for March came in at 59.6, which exceeded expectations (57) and marked the best reading in more than five years.
On Thursday, 01 April, 2010, news of a pleasing eurozone Purchasing Managers Index (PMI) and a restated commitment by China to loose monetary policy led the positive mood among market participants in the early going. The best ISM Manufacturing Index reading in five years also gave reason to push stocks even higher.
On that day, the Dow Jones Industrial Average ended higher by 70.44 points at 10,927.07. Nasdaq ended higher by 4.62 points at 2402.58. S&P 500 ended higher by 8.67 points at 1178.1. All ten economic sectors ended higher for the day led by energy, utilities and material sectors.
On Thursday, the labor market was in focus. Weekly initial jobless claims met expectations at 440,000. The ADP private payroll report on Wednesday showed an unexpected decline, shedding 23,000 versus the consensus that called for a gain of 40,000.
The U.S. reports helped commodities extend gains after data from Europe and Asia showed a similarly rosy outlook. Data from Chinese manufacturing climbed and confidence among industrial companies in Japan improved.
The stock market was closed on Friday in recognition of Good Friday. The March employment report, however, was still released at 8:30ET. The effect of the report is expected to dictate market momentum in the current week.
The Labor Department in US reported on Friday, 02 April 2010 that the U.S. economy created 162,000 jobs in March 2010. It was the largest seasonally adjusted increase in nonfarm payrolls in three years. The unemployment rate was steady at 9.7%.
The report detailed that nonfarm payrolls rose for just the third time in the past 27 months. It was aided by the hiring of 48,000 temporary workers to conduct the Census. Excluding the Census workers, payrolls rose by 114,000.
The report was largely in line with expectations. Market was forecasting a 200,000 increase in nonfarm payrolls, with about half of those coming from temporary hires at the Census Bureau.
The report showed that payroll gains were broad based, with 60% of all industries adding workers in March. Goods-producing industries' payrolls rose by 41,000, the first increase since March 2007. Manufacturing payrolls increased by 17,000, with 58.5% of manufacturing industries hiring. Manufacturing hours increased by half an hour to 41 hours per week, with 3.7 hours of overtime on average. Construction employment rose by 15,000, likely a rebound from unseasonably bad weather in February.
Crude oil prices ended substantially higher on Thursday, 01 April 2010 and crossed the $85 mark after a long time. Prices rose as the dollar weakened and due to positive global economic data which boosted overall sentiments.
On Thursday, crude-oil futures for light sweet crude for May delivery closed at $84.87/barrel (higher by $1.11 or 1.3%). During intra day trading, it surpassed the $85 mark. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 6.8%.
Natural gas prices ended up 22 cents, or 5.6%, to $4.086 per million British thermal units after a government report showed a smaller-than-expected rise in storage. Natural gas futures started on the red but quickly posted gains after the Energy Information Administration reported a net increase of 12 billion cubic feet for the week ended 26 March. Market had expected a rise of 14 to 18 billion cubic feet. Natural gas had lost 31% in the first quarter of the year.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies slipped by 0.3%. The dollar index gained about 0.7% in March and rallied 4% during the first quarter.
On Thursday, gold for June delivery ended at $1,126.1 an ounce, higher by $11.6 (1%) an ounce on the New York Mercantile Exchange. For the month of March, gold slid 0.4%. For the first quarter of this year, gold rose by 1.7%, its sixth quarterly rise. On a year to date basis, gold is higher by 2.7%. On Thursday, May Comex silver futures ended higher by 36 cents (2.1%) at $17.89 an ounce. For the month of March, silver ended higher by 5%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 5.1%.
All Indian ADRs registered hefty gains on Thursday. HDFC Bank and Tata Motors were main gainers soaring 3.5% and 3.4% respectively followed by Infosys and ICICI Bank which soared by 2.3% and 2% respectively.
For the year, Dow, Nasdaq and S&P 500 are higher by 4.8%, 5.9% and 5.6% respectively.
Network 18
Investors with a medium-term perspective can consider buying the stock of Network 18 Media and Investments (Rs 123.6). The stock's downtrend that commenced from an all-time high of Rs 629 in May 2007 was arrested in March 2009 around Rs 60. It was on a sideways consolidation phase between July 2009 and March 2010, forming an inverse head and shoulders pattern with neck line at Rs 110. This pattern is a bottom reversal pattern, signifying change in major trend. Since November 2009, the stock has been on an intermediate-term uptrend. The stock conclusively broke out of the neckline of the inverse head and shoulders pattern at Rs 110 by gaining 26 per cent last week. We observe an expansion of volume which validates the break-out.
Furthermore, the stock is trading well above its 21-, 50-and 200-day moving averages.
Both the daily and weekly relative strength indices have entered in to the bullish zone, reinforcing the bullish momentum. Signalling a buy, the daily moving average convergence and divergence indicator is featuring in the positive territory. The weekly MACD is steadily rising in the positive territory.
Our medium-term forecast on the stock is bullish. We believe that it has the potential to trend higher to the pattern price target of Rs 150 in the upcoming weeks. Investors can consider buying the stock with stop-loss at Rs 110. Short-term investors can also buy while maintaining stop-loss at Rs 135 and target of Rs 118.
Follow up- Amtek Auto (Rs 194.6)
The stock climbed 2.5 per cent from our recommended level and is in the process of heading higher towards our short-term price target. We reiterate our medium as well as short-term bullish outlook on the stock. Investors can consider buying the stock with the targets and stop-loss mentioned last week.
via BL
Daily News Roundup - Apr 5 2010
Maruti Suzuki raised prices from Rs1,000 on the A-Star to Rs9,000 on the SX4 with immediate effect. (BS)
SBI has extended its teaser home loan plan till April 30. (BL)
JSW Steel plans to expand the manufacturing capacity at its Vijayanagar plant in Karnataka from current 10mn tons to 16mn tons with an investment outlay of US$5-6bn over a period of three years. (FE)
Bajaj Auto reported a 85.12% jump in its motorcycle sales at 244,828 units in March. (BS)
JSW Steel plans to invest around Rs250bn in expanding the capacity of its Bellary plant in Karnataka by 6mn tons to 16mn tons in next 3 years. (BS)
Max New York Life gives 4% stake worth Rs4bn to Axis Bank for just under Rs800mn as part of a 10-year exclusive distribution agreement. (ET)
ONGC plans to sell gas from its C-Series field at US$5.5 per mBtu, a 30% premium over the rate at which RIL sells gas produced from its KG-D6 gas block. (BS)
NTPC has been drawing water from a canal in Chhattisgarh for the last 11 years without any agreement, reported the Comptroller and Auditor General. (BS)
CanvasM, a JV between Tech Mahindra and Motorola plans to launch 6,000 new indigenously developed applications for mobile phones. (BS)
BHEL will invest Rs6.9bn to set up a new piping plant at Thirumayam and expand its boiler division. (ET)
BHEL plans to invest Rs750mn in its Bangalore-based divisions to augment its manufacturing capacity from 15,000MW to 20,000MW by 2011-12. (BS)
Media report suggest that Reliance Industries may not renew a contract to import Iranian crude oil from this financial year. (FE)
M&M is in negotiations to buy a majority stake in Reva, or enter into a strategic alliance with the electric car maker for an investment of ~Rs1bn. (ET)
Reliance Capital is in talks with Swiss Re for a proposed foray into health insurance. (ET)
Promoters of Patni Computer are in discussions with international and local firms in a fresh attempt to sell their stakes. (ET)
Drug major AstraZeneca has been ordered to pay attorney’s fees by a US court to Dr Reddy’s Laboratories for bringing a "frivolous" and "baseless" patent infringement suit against the latter. (BS)
Foreign lenders to Wockhardt have succeeded in stalling the debt-ridden pharmaceutical company’s attempts to sell its nutrition business to Abbott Laboratories. (BS)
Ambuja Cements has produced 1.9mn tonnes in March 2010 as against 1.7mn tonnes in the same month last year. (FE)
Tata Power plans to offload its holdings worth nearly Rs17bn in the group’s telecom ventures at cost price as on March 31, 2009. (TOI)
Union Bank of India plans to raise retail term deposit rates by 25 to 50 basis points with effect from Monday. (BS)
Promoters of Bank of Rajasthan have sought more time to file objections to the capital markets regulator’s order charging them with violations of a number of rules. (BS)
ITC has entered the cigar manufacturing business marking its entry into the most sophisticated form of tobacco consumption. (BS)
NMDC raises base ore prices by 34-56%. (BS)
Reliance Infrastructure’s arm completes construction of the first 600MW unit of the Haryana government’s Rajiv Gandhi Khedar Thermal Power Plant in Hisar. (BS)
Welspun-Gujarat is close to buying a majority stake in a Saudi Arabia-based company with an annual manufacturing capacity of 0.3mn tonne of pipes, primarily for the oil and gas industry. (TOI)
Nalco achieves metal production of 4.31 lakh tons in 2009-10, against 3.61 lakh tons last year. (BS)
Nalco is mulling to undertake its third phase expansion envisaging an investment of Rs60bn. (BS)
The Maldives government has shortlisted GMR, consortia of Reliance Infrastructure and GVK Airport Developers to take over Male airport. (BS)
Norwegian Statoil and Brazil's Petrobras quit ONGC’s K-G basin gas block over government delays in approving their participation in the deepwater acreage. (BS)
SAIL, JSW and Essar increased prices of the commodity by up to Rs2,500 per ton. (ET)
Emami looking to buy Amrutanjan, says Emami Chairman. (TOI)
Jet Airways and Gulf Air enters into a code-share agreement which will come into effect from April 12. (ET)
International Finance Corporation, the private financing arm of the World Bank, is expected to pick up about 10% stake in Cholamandalam DBS Finance for Rs1bn. (BL)
Sanofi-Aventis allows Sun Pharma to sell cancer drug. (TOI)
Cinemax aims to touch at least 140 screens nationally and is targeting revenue of Rs2bn this year. (ET)
Dishman Pharma’s SEZ project to finally take off after a delay of over 4 years. (ET)
Marico plans to shut its health & wellness brand Kay0061 Life within a month. (FE)
Gitanjali to cut its presence in US jewellery market. (BS)
Torrent Power begins power distribution in Agra. (BS)
Reliance Life Sciences plans to launch its biosimilar drug to stimulate red blood cell production in Europe within a year. (ET)
Indage Vintners files an application with a division bench of the Bombay High Court challenging an order of a single judge that directed the company to wind up operations. (ET)
HeidelbergCement has earmarked Rs8bn for acquisition of mid-size companies in India as it plans to double annual capacity to 6 mt in the next two years. (ET)
Liberty Shoes plans to open 60 outlets, including 10 overseas stores, this fiscal. (BS)
Government may eventually give a financial lifeline to Air India by pumping more funds into the carrier rather than divesting a stake to a strategic investor. (BL)
The DIPP has virtually turned down the proposal of the Department of Pharmaceuticals to cap FDI in the pharma sector at 49% stating that apprehensions about the industry were misplaced. (ET)
The finance ministry proposes to tighten the FDI regime in the country. (BS)
Truck sales rose 99.3% in March to 33,619 units, compared with 16,868 units during the same month last year. (BS)
Bankers are likely to urge the RBI not to hike its key rates and mandatory cash requirement in its April policy. (ET)
Foreign exchange reserves dipped US$1.15bn during the week ended March 26 to touch US$277bn. (ET)
The Government is likely to consider extending export sops selectively after a detailed analysis following evidence that a strong recovery in the external sector was underway. Most of the sops given to exporters to tide over the global slowdown, including the ones announced earlier this week, are valid only till March 31, 2010. (ET)
More than a dozen foreign entities, which invest in shares of Indian companies using the Mauritius route, are planning to move the Authority for Advance Rulings (AAR) for clarity on the issue of tax liability in India. (ET)
Uttarakhand has demanded 1,000MW of free power from the Centre for shelving the 480MW Pala Maneri and 381MW Bhaironghati projects. (BS)
Primary food inflation was up 16.35% yoy for the week ended March 20, after hitting a four-month low of 16.22% in the preceding week. (BS)
Mutual fund industry's average assets under management fell 5% in March as banks and corporates withdrew from funds to feed their year-end liquidity needs. (BL)
Imports during February up 66% yoy to US$25bn. (BL)
PSU oil refiners' fuel loss may touch Rs900bn. (BL)
TRAI set to deliver recommendations that could permanently alter the structure, pricing and methodology for spectrum allocation; it could also pave way for M&As which, according to an April 2008 guideline, are not allowed till early 2011. (TOI)
Positive momentum may prevail
The undertaking of a new action brings new strength. – Evenius.
April promises to be an action-packed month after a rather dull March. Earnings, RBI policy, IIP data, monthly inflation and 3G auction will vie for the market’s attention. On top of that, one will have to keep an eye on global developments. The market has left behind a stellar fiscal year and began the new one on a firm note.
Today we expect the momentum to gain strength on the back of strong global cues. A better-than-anticipated US jobs report is likely to give a fillip to world markets. This means that the NSE Nifty will breach 5300 yet again today. It could manage to stay above 5300 given the firm global markets and positive FII flows. However, the Nifty is likely to meet resistance as it approaches 5400 and attempts to surpass that level.
In short, the bias remains positive but there might be some softening owing to growing discomfort on valuations. Inflation will continue to be a big worry, especially if it crosses double digits and doesn’t come down quickly. Going further ahead, monsoon will have some bearing on sentiment and on the overall economic outlook.
Telecom firms will be in focus ahead of the 3G auction. Cement firms may also attract some attention due to strong dispatch numbers and news of fresh consolidation. Patni Computer will also be in the spotlight amid reports that promoters have resumed talks for an exit. RIL, ONGC and Cairn could rise as crude oil prices have crossed $85 a barrel. But, PSU oil marketing companies will come under pressure.
FIIs were net buyers in the cash segment on Thursday at Rs1.06bn on a provisional basis. Local funds were net buyers of Rs4.5bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs10.51bn.
US stocks closed higher on Thursday with the Dow Jones Industrial Average and S&P 500 index ending at a fresh 18-month highs as Wall Street kicked off a new quarter on a firm note. Oil and other commodities rallied as economic reports from across the globe lifted hopes of a global recovery.
The Dow added 70 points, or 0.7%, ending at 10,927.07, its highest close since Sept. 26, 2008. The blue-chip indicator rose to within 43 points of 11,000, a key psychological indicator, before pulling back. The Dow touched an intraday high of 10,956.30.
The S&P 500 gained 9 points, or 0.7%, to finish at 1,178.10. Gains in materials and energy shares led the advance in the broad index.
The Nasdaq added 5 points, or 0.2%, to 2,402.58.
For the week, the Dow was up 0.7%, the S&P rose 1% and the Nasdaq advanced 0.3%, the indexes' fifth straight week of gains.
For every stock on the decline, nearly three were rising on the New York Stock Exchange, where trading volume topped 928 million and composite volume topped 4.1 billion.
The dollar gained versus the euro and fell against the yen.
COMEX gold for June delivery rose $11.60 to settle at $1,126.10 per ounce.
US light crude oil for May delivery rose $1.11 to settle at $84.87 a barrel on the New York Mercantile Exchange, the highest close for crude since October 2008.
Treasury prices tumbled, raising the yield on the 10-year note to 3.86% from 3.83% late on Wednesday.
US stocks rose through the early afternoon as investors welcomed reports showing continued fall in the pace of job losses and further pick-up in the manufacturing sector. The advance briefly lost steam in mid-afternoon, before picking up again near the close.
US stock markets were shut on Friday for Good Friday, even as the key jobs report was slated for release. But, the Treasury markets had a shortened session.
The initial jobless claims data, released on Thursday showed that the US is witnessing a slow and steady improvement in the labour market and the manufacturing numbers provided reassurance about the prospects for the global economy.
On Wednesday, US stocks had declined at the end of a good quarter, in which the Dow gained 4.1%, the S&P 500 gained 4.9% and the Nasdaq gained 5.7%. All three major US stock indexes have risen in six of the last seven weeks.
The number of Americans filing new claims for unemployment fell last week to 439,000 from 445,000 in the previous week, matching the lowest level since August 2008. Forecasts were for 440,000 claims, according to a consensus of economists.
The Labor Department report also showed that continuing claims, a measure of Americans who have been receiving benefits for a year or more, fell to 4,662,000 from 4,668,000 the previous week. Economists thought continuing claims would fall to 4,618,000.
A separate report from outplacement firm Challenger, Gray & Christmas showed that planned job cuts rose in March. Employers said they were planning to cut 67,611 jobs in March, a rise of 61% from February's 42,090 cuts.
The Institute for Supply Management's manufacturing index rose to 59.6 in March from 56.5 in the previous month. Economists expected a reading of 57.
February construction spending fell 1.3% after falling 1.4% in January, according to a Census Bureau report released in the morning. Economists thought it would fall 1%.
In company news, BlackBerry maker Research in Motion (RIM) slipped after it posted fiscal fourth-quarter earnings and revenue that rose from a year earlier, but missed forecasts due to weaker-than-expected phone shipments.
The company also issued a fiscal first-quarter earnings and revenue forecast that was better than expected. But shares fell on Thursday as analysts and investors expressed worries that the company is not keeping up with Apple and Google.
Primerica, Citigroup's soon-to-be spun-off life insurance division rallied more than 20% in its first day of trading as a public company.
General Motors (GM) and Ford Motor were among the automakers reporting improved sales in March, although forecasts were short of more bullish analyst estimates released earlier in the month.
Ford said sales rose 40% versus earlier forecasts for a gain of 55%. GM said sales rose 21% versus forecasts for a gain of 27%.
Overall auto industry sales were expected to rise sharply in March in comparison to a weak period a year earlier.
The positive economic data in the US followed reports that manufacturing in China is picking up speed, and confidence is rising among Japan's biggest manufacturers.
European shares ended higher on the first day of the second quarter, helped by improvement in manufacturing data from Europe, China and the UK.
The Stoxx Europe 600 index rose 1.3% to end at 267.02, extending gains from the first quarter when the index rose around 4%.
Manufacturing activity across the 16-nation euro zone expanded at the fastest clip since June 2006 in the same month. The euro-zone figure masked sharp divergence within the region, with Germany's PMI reading at an almost 10-year high but Greece at an 11-month low.
The euro rose against the dollar to US$1.3568.
The German DAX index rose 1.33% to 6,235.56 and the French CAC-40 index advanced 1.5% to 4,034.23. The UK's FTSE 100 gained 1.15% to 5,744.89 after activity in Britain's manufacturing sector last month accelerated at its fastest pace since October 1994.
After enjoying a spectacular run in FY10, the Indian benchmark indices ended the week on a flat note halting its seven-week winning streak. The Nifty and the Sensex although started off the week by hitting their respective 52-week highs, however, the surge showed some signs of slackening. Headwinds include inflation, an impending hike in interest rates. Monsoon will be crucial. The earnings and guidance from India Inc would be the closely watched in the ensuing weeks.
The Realty, Capital Goods and the Power stocks were in demand during the week; even small-cap stocks attracted buying interest. On the other hand, the IT stocks were among the top laggards as the rupee appreciated to its 52-week high of Rs44.88 as against the US dollar.
The FII continued to be net buyers in the Indian markets. They bought stocks to the tune of Rs40.46bn in the last four days. On the other hand, the DIIs were net seller to the tune of Rs7.55bn.
The BSE Sensex hit an intra-week high of 17,793 and low of 17,488 and the NSE Nifty hit an intra-week high of 5,329.5 and low of 5,235.
On Friday, The BSE Sensex advanced 164 points to end at 17,692 and NSE Nifty added 41 points to close at 5,291.
Market breadth was in favour of the bulls, out of total 2889 stocks, 2,208 advanced against declines of 610 and 71 stocks remained unchanged.
In Asia, the Nikkei in Japan ended higher by 1.4%, Australia's S&P/ASX also gained 0.6%. Shanghai SE Composite rose 1.2% and Hang Seng index in Hong Kong was up 1.4%.
In Europe, stocks were trading with a positive bias. The DAX in Germany was up 0.9%, the CAC 40 index in France was up 1.2% and the FTSE in the UK was up 0.9%.
Coming back to India, among the BSE sectoral indices, the BSE IT index was top gainer, the index rose 2.2%, followed by BSE Consumer Durables index up 1.5% and Metal index up 1.4%.
Among the top losers were, BSE FMCG index was down 0.3% and the BSE Auto index was down 0.1%.
Outside the frontline indices, the big gainers in the broader market were P&G, Godrej Ind, Crompton Greaves, Max India and Biocon. On the other hand, losers included Mundra Port, Balrampur Chini, Renuka Sugar and Tata Chem.
Crude flirts around $85
Crude settles with good gains on demand hopes
Crude oil prices ended substantially higher on Thursday, 01 April 2010 and crossed the $85 mark after a long time. Prices rose as the dollar weakened and due to positive global economic data which boosted overall sentiments.
On Thursday, crude-oil futures for light sweet crude for May delivery closed at $84.87/barrel (higher by $1.11 or 1.3%). During intra day trading, it surpassed the $85 mark. For the month of March, crude rose 5.1%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 6.8%.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies slipped by 0.3%. The dollar index gained about 0.7% in March and rallied 4% during the first quarter.
Among economic reports scheduled on Thursday, news of a pleasing eurozone Purchasing Managers Index (PMI) and a restated commitment by China to loose monetary policy led the positive mood among market participants in the early going. The best ISM Manufacturing Index reading in five years also gave reason to push stocks even higher. At 59.6, the index also exceeded expectations.
Among other economic data, construction spending for February was a sharper-than-expected 1.3%. Initial jobless claims count of 439,000 for the week ended 27 March was in-line with the consensus forecast.
In the latest weekly inventory report, the EIA reported a day before that crude-oil inventories increased by 2.9 million barrels in the week ended 26 March, in line with market expectations. Inventories of distillates, which includes diesel and heating oil, decreased by 1.1 million barrels, also in line with expectations. Out of this, gasoline inventories increased by 300,000 barrels.
Market had expected an increase of 2.65 million barrels in crude inventories. They also projected declines of 2 million barrels for gasoline stocks and 1.2 million barrels for distillate supplies.
Elsewhere, natural gas ended up 22 cents, or 5.6%, to $4.086 per million British thermal units after a government report showed a smaller-than-expected rise in storage. Natural gas futures started on the red but quickly posted gains after the Energy Information Administration reported a net increase of 12 billion cubic feet for the week ended 26 March. Market had expected a rise of 14 to 18 billion cubic feet. Natural gas had lost 31% in the first quarter of the year.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
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