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Thursday, April 08, 2010
Nifty April 2010 futures below 5,300
Turnover surges
Nifty April 2010 futures were at 5,293, at a discount of 11.45 points over spot closing of 5,304.45. Turnover in NSE's futures & options (F&O) segment surged to Rs 75,545.57 crore from Rs 63,171.42 crore on Wednesday, 7 April 2010.
Sesa Goa April 2010 futures were at discount at 475.50 compared to the spot closing of 489.
Tata Motors April 2010 futures were at discount at 760 compared to the spot closing of 779.10.
Steel Authority of India April 2010 futures were near spot price at 236.70 compared to the spot closing of 237.
In the cash market, the S&P CNX Nifty fell 70.20 points or 1.31% at 5,304.45.
Greek fears resurface to head Asia lower
Stocks give away some of the recent advances, dollar hits two week high
Asian markets headed lower today, struggling to extend the yesterday's gains as the investors fretted over renewed worries on Greece's fiscal condition and US dollar continued to strengthen, pressurizing commodities. The weak overnight US cues and raft of central banking decisions in Europe also tilted the balance more in the favor of the sellers.
The stock market in Japan ended in negative territory taking cues from Wall Street where the major averages ended in negative territory on concerns about sustaining economic recovery after a consumer credit report revealed wider than expected drop in February.
The benchmark Nikkei 225 Index dropped 124.63 points, or 1.10%, to 11,168.20, while the broader Topix index of all First Section issues was down 9.55 points, or 0.96%, to 986.
On the economic front, a preliminary report released by the Cabinet Office revealed that core machinery orders declined 7.1% year-over-year in February, following 1.1% contraction in the previous month. On a monthly basis, core machinery orders were down 5.4% after the 3.7% decline in January.
A report released by the Ministry of Finance revealed that the country posted a current account surplus of 1.471 trillion yen in February, up 29.6% year-over-year. The report further noted that the adjusted current account balance showed a surplus of 1.119 trillion yen after the 1.712 trillion yen surplus in the previous month.
The Australian market snapped three-day gains and slipped on profit selling in tune with the global markets. The benchmark S&P/ASX200 Index declined 23.00 points, or 0.46% to close at 4,938, while the All-Ordinaries Index ended at 4,960, representing a loss of 22.90 points, or 0.46%.
On the economic front, a report released by the Australian Bureau of Statistics revealed that unemployment rate in the country remained unchanged in March compared to February, while the number of employed persons increased in line with expectations. According to the report, the unemployment rate in the country stood at a seasonally adjusted 5.3% in March, in line with the economists' expectations.
BSE Bulk Deals to Watch - Apr 8 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
8/4/2010 590006 Amrutanjan Health OPG SECURITIES P LTD B 18161 1214.00
8/4/2010 590006 Amrutanjan Health OPG SECURITIES P LTD S 18161 1212.87
8/4/2010 533159 AQUA LOGIST OPG SECURITIES P LTD B 129503 302.16
8/4/2010 533159 AQUA LOGIST OPG SECURITIES P LTD S 129503 302.12
8/4/2010 533163 Arss Infra Proj OPG SECURITIES P LTD B 78052 1223.66
8/4/2010 533163 Arss Infra Proj OPG SECURITIES P LTD S 78052 1223.29
8/4/2010 531591 Bampsl Sec PRAKASHCHAND GUPTA S 600000 1.49
8/4/2010 590061 Brushman India SUDHIRKUMAR GUPTA HUF B 75000 9.65
8/4/2010 590061 Brushman India SICPA INDIA LTD S 187000 9.67
8/4/2010 500083 Century Extr BHARAT SHANKAR PHAPALE S 299116 13.48
8/4/2010 531337 Channel Guide KALPESHKUMAR MANIYAR B 75597 16.55
8/4/2010 531337 Channel Guide DARI TEJAS K B 35168 17.07
8/4/2010 531270 Dazzel Conf NAVEEN NARENDRA SINGH B 30000 8.44
8/4/2010 531270 Dazzel Conf KAMLESH NAHAR S 40533 8.44
8/4/2010 531171 Devika Prot M/S. RIKHAV INVESTMENTS B 69004 37.69
8/4/2010 531171 Devika Prot MARWADI SHARES AND FINANCE LTD. B 55924 41.11
8/4/2010 531171 Devika Prot M/S. RIKHAV INVESTMENTS S 69004 38.45
8/4/2010 531171 Devika Prot RAMCO DYES PVT. LTD S 174395 32.06
8/4/2010 531171 Devika Prot KARNAVATI DYE CHEM PVT. LTD S 173949 29.76
8/4/2010 531171 Devika Prot MARWADI SHARES AND FINANCE LTD. S 55924 41.09
8/4/2010 500132 Empee Sugars SUDHIR KOTHARI SANJU B 500000 36.00
8/4/2010 504351 Empower Inds DINESH JAYANTILAL VORA B 50000 4.15
8/4/2010 504351 Empower Inds ANGEL INFIN PRIVATE LIMITED S 99000 4.15
8/4/2010 504351 Empower Inds JMP SECURITIES PVT LTD S 216748 4.16
8/4/2010 531744 Gini Silk GARNET INTERNATIONAL LTD B 300000 33.17
8/4/2010 531744 Gini Silk GINI TEX LTD S 300000 33.17
8/4/2010 532761 HOV Serv TRANSGLOBAL SECURITIES LTD. B 68108 89.65
8/4/2010 532761 HOV Serv TRANSGLOBAL SECURITIES LTD. S 67499 89.49
8/4/2010 511682 IFL Promoters VIHANG RAMAKANT RELEKAR B 27050 13.58
8/4/2010 511682 IFL Promoters OMPARKASH GUPTA S 16557 13.78
8/4/2010 522165 Indsil Hydro BAKLIWAL FINCOM PRIVATE LIMITED B 50000 76.33
8/4/2010 532072 Interworld Dig SL GUPTA B 400000 2.53
8/4/2010 512185 IOL Netcom EVANS FRASER AND COMPANY (INDIA) LIMITED B 500000 25.52
8/4/2010 512185 IOL Netcom SHREE DHOOT TRADING & AGENCIES LIMITED. S 500000 25.52
8/4/2010 524400 Ishita Drugs BDS SHARE BROKERS PVT LTD B 15300 15.79
8/4/2010 533155 JUBL FOOD SMART EQUITY BROKERS PRIVATE LIMITED B 369171 394.59
8/4/2010 533155 JUBL FOOD SMART EQUITY BROKERS PRIVATE LIMITED S 369171 394.58
8/4/2010 530255 KAY Power BAMPSL SECURITIES LTD B 256084 17.56
8/4/2010 530255 KAY Power B.S.KHANDELWAL B 75000 17.60
8/4/2010 530255 KAY Power BAMPSL SECURITIES LTD S 281050 17.49
8/4/2010 530255 KAY Power GIRRAJPRASAD GUPTA S 62850 17.65
8/4/2010 513693 KIC Metaliks SUNFAST TRADECOMM PRIVATE LIMITED B 38574 61.68
8/4/2010 530145 Kisan Mouldings DEEPAK SHANTILAL CHHEDA B 127134 91.73
8/4/2010 530145 Kisan Mouldings M/S. RIKHAV INVESTMENTS B 106360 91.60
8/4/2010 530145 Kisan Mouldings CHANDAN SHAH B 52946 93.33
8/4/2010 530145 Kisan Mouldings ESSENTIAL SECURITIES B 58470 93.05
8/4/2010 530145 Kisan Mouldings RAPIDCREDITSAND MERCANTILES PRIVATE LIMITED B 50000 94.10
8/4/2010 530145 Kisan Mouldings MVM SECURITIES PRIVATE LIMITED B 55300 92.07
8/4/2010 530145 Kisan Mouldings MANSUKH STOCK BROKERS LIMITED B 82814 92.67
8/4/2010 530145 Kisan Mouldings NARESHCHAND JAIN B 128565 92.11
8/4/2010 530145 Kisan Mouldings Naman Securities & Finance Pvt. Ltd. B 109499 92.65
8/4/2010 530145 Kisan Mouldings SWETATI BREWALA B 185000 92.29
8/4/2010 530145 Kisan Mouldings KARISHMABEN ALPESHKUMAR SHAH B 45925 91.84
8/4/2010 530145 Kisan Mouldings INVENTURE GROWTH & SECURITIES LTD. B 66632 93.89
8/4/2010 530145 Kisan Mouldings AAP INVESTMENTS B 60000 90.54
8/4/2010 530145 Kisan Mouldings SHRIRAMTI BREWALA B 417346 93.12
8/4/2010 530145 Kisan Mouldings DEVENDRA P OTAVKAR B 100000 94.05
8/4/2010 530145 Kisan Mouldings BP FINTRADE PRIVATE LIMITED B 83566 92.77
8/4/2010 530145 Kisan Mouldings DEEPAK SHANTILAL CHHEDA S 127134 91.69
8/4/2010 530145 Kisan Mouldings M/S. RIKHAV INVESTMENTS S 106360 91.65
8/4/2010 530145 Kisan Mouldings CHANDAN SHAH S 37946 95.45
8/4/2010 530145 Kisan Mouldings ESSENTIAL SECURITIES S 58470 93.42
8/4/2010 530145 Kisan Mouldings RAPIDCREDITSAND MERCANTILES PRIVATE LIMITED S 50000 94.17
8/4/2010 530145 Kisan Mouldings MVM SECURITIES PRIVATE LIMITED S 67200 92.38
8/4/2010 530145 Kisan Mouldings MANSUKH STOCK BROKERS LIMITED S 82814 92.75
8/4/2010 530145 Kisan Mouldings RAHUL DOSHI S 45083 95.42
8/4/2010 530145 Kisan Mouldings NARESHCHAND JAIN S 123565 92.42
8/4/2010 530145 Kisan Mouldings Naman Securities & Finance Pvt. Ltd. S 111749 92.75
8/4/2010 530145 Kisan Mouldings SWETATI BREWALA S 105000 83.64
8/4/2010 530145 Kisan Mouldings KARISHMABEN ALPESHKUMAR SHAH S 45925 91.96
8/4/2010 530145 Kisan Mouldings INVENTURE GROWTH & SECURITIES LTD. S 66632 94.05
8/4/2010 530145 Kisan Mouldings AAP INVESTMENTS S 60000 91.86
8/4/2010 530145 Kisan Mouldings SHRIRAMTI BREWALA S 417346 92.94
8/4/2010 530145 Kisan Mouldings DEVENDRA P OTAVKAR S 100000 94.28
8/4/2010 530145 Kisan Mouldings BP FINTRADE PRIVATE LIMITED S 97931 93.64
8/4/2010 530145 Kisan Mouldings SPREAD FINTRADE LTD S 450000 94.07
8/4/2010 532673 KM Sugar JHAVERI TRADING AND INVT. PVT LTD S 549514 8.20
8/4/2010 531602 Koffee Break GOVIND PATODIA HUF B 500000 1.97
8/4/2010 531602 Koffee Break SURGYAN MAKHANLAL CHIRANIA S 383173 1.98
8/4/2010 509011 Livingroom Life SAURAV GUPTA B 6200 35.25
8/4/2010 509011 Livingroom Life SAINATH HERBAL CARE MARKETING P.LTD S 6100 35.25
8/4/2010 590111 MASTER VENKATA BADRINARAYANAMMA GOLLAPUDI B 27000 39.32
8/4/2010 532416 Midday Multi TRANSGLOBAL SECURITIES LTD. B 387094 33.29
8/4/2010 532416 Midday Multi AMBIT SECURITIES BROKING PRIVATE LIMITED B 355001 32.75
8/4/2010 532416 Midday Multi TRANSGLOBAL SECURITIES LTD. S 387094 33.22
8/4/2010 532416 Midday Multi AMBIT SECURITIES BROKING PRIVATE LIMITED S 355001 32.74
8/4/2010 532416 Midday Multi RAKESH RADHEYSHYAM JHUNJHUNWALA S 860000 32.05
8/4/2010 590011 Moving Picture PRAGNESH JAGDISHBHAI PATEL B 243754 5.25
8/4/2010 590011 Moving Picture CHANDULAL RANCHHODBHAIRA BADIYA B 72048 5.36
8/4/2010 532045 Nexxoft Info PRAGNESH JAGDISHBHAI PATEL B 143807 28.98
8/4/2010 532045 Nexxoft Info KOOKMIN SECURITIES PRIVATE LIMITED B 70266 27.69
8/4/2010 532045 Nexxoft Info ASHWIN CHUNIBHAI SHAH S 30000 28.84
8/4/2010 532045 Nexxoft Info PRAGNESH JAGDISHBHAI PATEL S 149098 28.29
8/4/2010 532045 Nexxoft Info KOOKMIN SECURITIES PRIVATE LIMITED S 25266 29.34
8/4/2010 500311 Nuchem APV SHARES SECURITIES PRIVATE LIMITED B 1417206 11.46
8/4/2010 500311 Nuchem JIGYASA PROPERTIES PRIVATE LIMITED S 1422189 11.46
8/4/2010 531496 Omkar Overseas FALGUNIBEN MAHAVIRBHAI GOHIL B 49300 67.90
8/4/2010 531496 Omkar Overseas ABHAY DATTATRAY JAVLEKAR B 40000 67.69
8/4/2010 531496 Omkar Overseas HIRENKIRIT GANDHI S 40000 67.68
8/4/2010 531496 Omkar Overseas AMBIKA SHYAM SHUKLA S 40000 67.70
8/4/2010 512097 Oregon Comm KRUPA SANJAY SONI B 11682 213.44
8/4/2010 512097 Oregon Comm MAHESH NARENDRA KATE B 10050 211.25
8/4/2010 512097 Oregon Comm PARESHRAMJIBHAI CHAUHAN B 10000 215.47
8/4/2010 512097 Oregon Comm PARSHARTI INVESTMENT LIMITED B 6000 210.69
8/4/2010 512097 Oregon Comm ASHLESH GUNVANTBHAI SHAH B 10000 215.36
8/4/2010 512097 Oregon Comm KRUPA SANJAY SONI S 11446 214.23
8/4/2010 532676 PBA Infra TRANSGLOBAL SECURITIES LTD. B 100757 91.04
8/4/2010 532676 PBA Infra TRANSGLOBAL SECURITIES LTD. S 100757 91.37
8/4/2010 533179 PERSISTENT SMART EQUITY BROKERS PRIVATE LIMITED B 352600 421.34
8/4/2010 533179 PERSISTENT OPG SECURITIES P LTD B 603454 421.28
8/4/2010 533179 PERSISTENT SMART EQUITY BROKERS PRIVATE LIMITED S 352600 421.51
8/4/2010 533179 PERSISTENT OPG SECURITIES P LTD S 603454 421.46
8/4/2010 531467 Polypro Fibrils AMISHA DEVLOPERS LIMITED B 34000 38.00
8/4/2010 531467 Polypro Fibrils STATUS EQUITY AND FINANCE PVT S 109950 37.95
8/4/2010 503873 Priyadarshini Spn PRADEEPKR AGGARWAL B 154779 25.34
8/4/2010 517059 Salzer Elect SUJAY JAJU B 55000 113.10
8/4/2010 531569 Sanjivani Par RONAK RAJENDRAKUMAR MEHTA B 40000 59.87
8/4/2010 531781 Sapan Chem BASANTLAXMANLAL DAMANI B 45000 8.30
8/4/2010 533056 SARK SYS CHIRAYUSH AGRO MARKETING PRIVATE LIMITED B 165000 26.74
8/4/2010 533056 SARK SYS MV TRADECOM PRIVATE LIMITED B 168404 26.75
8/4/2010 533056 SARK SYS SWETA TIBREWALA S 110000 26.75
8/4/2010 533056 SARK SYS GADIYARAM SREEDHAR S 100000 26.75
8/4/2010 531693 Shri Ganesh Spi CHANDRAKANT B SHAH S 334000 11.05
8/4/2010 530651 Softech Inf PRASHANT MAHADEV KAMBLE B 30900 38.10
8/4/2010 531645 Southern Ispat R M FINANCIAL SERVICES PVT LTD. B 102000 23.71
8/4/2010 531645 Southern Ispat RAJANBABU V GADDAM S 100000 23.53
8/4/2010 502465 Speciality Pap EPOCH SYNTHETICS PRIVATE LIMITED B 122578 19.80
8/4/2010 502465 Speciality Pap DKG SECURITIES PVT LTD S 135201 19.82
8/4/2010 533157 SYNCOM HEAL GENUINE STOCK BROKERS PVT. LTD. B 90590 91.99
8/4/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD B 89925 93.09
8/4/2010 533157 SYNCOM HEAL GENUINE STOCK BROKERS PVT. LTD. S 90590 91.98
8/4/2010 533157 SYNCOM HEAL OPG SECURITIES P LTD S 89925 93.02
8/4/2010 522080 Vulcan Engr NISHIT DILIPKUMAR SHAH B 25001 32.95
8/4/2010 522080 Vulcan Engr NISHIT DILIPKUMAR SHAH S 25006 32.95
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Apr 8 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-APR-2010,HOVS,HOV Services Limited,TRANSGLOBAL SECURITIES LTD.,BUY,64339,89.79,-
08-APR-2010,IOLN,IOL Netcom Limited,EVANS FRASER AND COMPANY(INDIA)LTD,BUY,500000,24.40,-
08-APR-2010,KOTAKNIFTY,Kotak Nifty ETF,KOTAK SECURITIES LTD.,BUY,1384,534.72,-
08-APR-2010,MID-DAY,Midday Multimedia,PRAGYA EQUITIES PVT. LTD.,BUY,331267,34.92,-
08-APR-2010,MID-DAY,Midday Multimedia,TRANSGLOBAL SECURITIES LTD.,BUY,402894,33.24,-
08-APR-2010,PBAINFRA,PBA Infrstructure Limited,BP FINTRADE PRIVATE LIMITED,BUY,106400,94.05,-
08-APR-2010,PBAINFRA,PBA Infrstructure Limited,DANI SHARES & STOCKS PRIVATE LIMITED,BUY,99311,89.65,-
08-APR-2010,PBAINFRA,PBA Infrstructure Limited,JINESH AJITKUMAR JAIN,BUY,143472,93.52,-
08-APR-2010,PBAINFRA,PBA Infrstructure Limited,TRANSGLOBAL SECURITIES LTD.,BUY,92123,91.09,-
08-APR-2010,PBAINFRA,PBA Infrstructure Limited,VAIBHAV DOSHI,BUY,125060,94.54,-
08-APR-2010,PERSISTENT,Persistent Systems Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,228475,420.45,-
08-APR-2010,SYNCOM,Syncom Healthcare Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,121452,92.07,-
08-APR-2010,SYNCOM,Syncom Healthcare Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,104631,92.01,-
08-APR-2010,WELGUJ,Welspun Gujarat Stahl Roh,LIC SHEME-5,BUY,5999213,268.00,-
08-APR-2010,WELGUJ,Welspun Gujarat Stahl Roh,PACIFIC CORPORATE SERVICES LTD,BUY,1079731,280.34,-
08-APR-2010,HOVS,HOV Services Limited,TRANSGLOBAL SECURITIES LTD.,SELL,65188,90.00,-
08-APR-2010,IOLN,IOL Netcom Limited,SHREE DHOOT TREDING AND AGENCIES LTD,SELL,500000,24.40,-
08-APR-2010,KOTAKNIFTY,Kotak Nifty ETF,KOTAK SECURITIES LTD.,SELL,3050,534.55,-
08-APR-2010,MID-DAY,Midday Multimedia,JHUNJHUNWALA RAKESH,SELL,1390000,31.69,-
08-APR-2010,MID-DAY,Midday Multimedia,PRAGYA EQUITIES PVT. LTD.,SELL,331267,34.94,-
08-APR-2010,MID-DAY,Midday Multimedia,TRANSGLOBAL SECURITIES LTD.,SELL,393894,33.40,-
08-APR-2010,PBAINFRA,PBA Infrstructure Limited,BP FINTRADE PRIVATE LIMITED,SELL,86379,93.62,-
08-APR-2010,PBAINFRA,PBA Infrstructure Limited,DANI SHARES & STOCKS PRIVATE LIMITED,SELL,100361,89.10,-
08-APR-2010,PBAINFRA,PBA Infrstructure Limited,JINESH AJITKUMAR JAIN,SELL,142950,93.54,-
08-APR-2010,PBAINFRA,PBA Infrstructure Limited,TRANSGLOBAL SECURITIES LTD.,SELL,92123,90.73,-
08-APR-2010,PBAINFRA,PBA Infrstructure Limited,VAIBHAV DOSHI,SELL,100060,93.91,-
08-APR-2010,PERSISTENT,Persistent Systems Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,228475,420.59,-
08-APR-2010,SYNCOM,Syncom Healthcare Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,121452,92.30,-
08-APR-2010,SYNCOM,Syncom Healthcare Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,104631,92.10,-
08-APR-2010,WELGUJ,Welspun Gujarat Stahl Roh,PACIFIC CORPORATE SERVICES LTD,SELL,10000000,268.38,-
Volatility index jumps as market loses ground
The key benchmark indices slumped as weak global stocks and worries about the economic health of Greece triggered profit taking after recent sharp surge in share prices. A spike in food price inflation also rekindled fears of a hike in key policy rates when the Reserve Bank of India reviews its monetary policy on 20 April 2010. The market breadth, indicating the overall health of the market turned weak in contrast to a strong breadth earlier in the day. The BSE 30-share Sensex fell 255.62 points or 1.42%.
Metal stocks fell as metal prices declined on the London Metal Exchange. Steel Authority of India fell more than 7% after the cabinet approved a 20% stake sale in state-run firm in two tranches. Rate sensitive auto and banking stocks also fell. Index heavyweight Reliance Industries (RIL) slumped more than 2%. Capital goods stocks also declined.
NSE's volatility index, India VIX, jumped 15.01% to settle at the day's high of 19.92. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days. The index is calculated based on the S&P CNX Nifty options prices.
The market extended early losses to hit fresh intraday lows in morning trade tracking weak Asian stocks. It weakened once again after paring losses in mid-morning trade. The market tumbled to a fresh intraday low in afternoon trade after the inflation data was released in early afternoon trade. The market extended losses in mid-afternoon trade. The market hit a fresh intraday low in late trade.
Expectations of good fourth quarter result by India Inc and heavy foreign fund inflows boosted the bourses in the past few weeks with the key benchmark indices surging to their highest level in more than 25 months on Wednesday, 7 April 2010.
Stock-specific action may rule the roost on the bourses in the near term based on expectations of Q4 March 2010 results. IT bellwether Infosys kickstarts the reporting season on 13 April 2010.
On the macro front, the food price index rose 17.70% in the year to 27 March 2010, government data showed on Thursday. The rise in the food price index was higher than an annual rise of 16.35% in the previous week. The fuel price index rose 12.71%, a tad below the previous week's reading of 12.75%. The primary articles index rose 14.5%.
European shares slipped ahead of rate decisions from the Bank of England and the European Central Bank. Key indices in UK, France and Germany were down by 1.08% to 1.62%.
Greece's fiscal health continued to weigh on sentiment as the country's financing costs continue to soar, raising fears of a default. The European Central Bank will flesh out on Thursday a revamp of its lending rules to help ease the financial squeeze on Greece, while keeping euro zone interest rates at a record low of 1%. The focus will remain squarely on what President Jean-Claude Trichet has to say on the subject after the bank's monthly monetary policy meeting meeting.
The Bank of England kept interest rates at a record low of 0.5% for the 13th month running on Thursday and made no increase to its 200 billion pounds asset-buying scheme to boost the economy.
Asian stocks fell for the first time in six days on Thursday after Japanese machinery orders unexpectedly dropped and US consumer credit slumped more than economists' forecast. The key benchmark indices in China, Hong Kong, Singapore, Taiwan, Indonesia, Japan fell by between 0.28% to 1.65%. South Korea's Seoul Composite rose 0.42%.
Trading in US index futures indicated that the Dow could fall 30 points at the opening bell on Thursday, 8 April 2010.
US stocks slipped on Wednesday after a senior Federal Reserve member said policy makers should start raising rates to 1% soon and on Greek debt concerns. In economic data, mortgage applications ticked up just 0.2% last week as a spike in mortgage rates clipped demand for refinancing. Another report showed consumer borrowing fell by $11.5 billion in February, much weaker than the $500 million gain expected. The Dow Jones fell 72.47 points or 0.86% to 10,897.52. The Nasdaq declined 5.65 points or 0.23% to 2431.16 and the S&P 500 fell 6.99 points or 0.59% to 1182.45.
Two top US Federal Reserve officials warned about the risks to the economy from asset bubbles on Wednesday, and one suggested raising interest rates to halt risky behavior that could trigger another bust. Still, Fed Chairman Ben Bernanke offered a relatively downbeat view of the economy during a speech in Dallas, suggesting he was in no rush to tighten monetary policy. Thomas Hoenig, president of the Kansas City Fed, reiterated his concern that the Fed's ultra-low interest rate policies could have unintended consequences.
US government will encourage China, India, Brazil and other fast-growing markets to buy more American goods as part of its bid to double exports in five years, Under Secretary for International Trade Francisco Sanchez said on Wednesday.
Closer home, chief statistician Pranab Sen on Wednesday said the Reserve Bank of India will have to further tighten monetary policy on 20 April 2010 if prices continue to rise, as expected, from 9.89% headline inflation in February. The Reserve Bank of India (RBI) will review its monetary policy on 20 April 2010. Sen, however, declined to specify what policy actions were required, saying it was for the central bank to decide.
The four-month spell of wholesale price inflation above the RBI's perceived comfort zone of 5% prompted the central bank in March to unexpectedly hike its key lending rates by 25 basis points. The Reserve Bank of India last month warned of inflationary pressures from higher capacity utilisation and rising commodity and energy costs.
Sen said WPI inflation in March was likely to be higher than February's 9.89%, partly due to a low base effect. Headline inflation could start easing from April when the base effect starts wearing off, he added, noting that food price inflation has already started moderating. The inflation for the month of March 2010 will be announced by the government on 12 April 2010.
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 on Monday, 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.
But abnormally hot weather and lower than expected rains are reportedly raising the spectre of India facing another water shortage in the coming kharif season, reports suggest. Rains have been 66% lower than normal in March. Temperature has been 4 to 7 degrees above normal, making it the hottest March in almost a decade report said.
Meanwhile, Indian companies continue to raise funds for expansion, future growth and in some cases to lower debt. Market men expect Indian companies to raise large sums of money this year from equity issuance which includes initial public offerings, American Depositary Receipts, Global Depositary Receipts, qualified institutional placements etc. Indian firms have so far raised about $10.5 billion from equity, equity related instruments in calendar 2010 so far. This includes divestment by the government. The government has targeted raising Rs 40,000 crore from divestment in state-run firms in the financial year ending March 2011.
Trends indicate that more Indian companies will be upgraded than downgraded in fiscal year 2010/11, the local unit of a global rating agency said on Wednesday. In a reversal of a three-year trend, the rating agency's upgrades outnumbered downgrades in the second half of 2009/10. However, a global credit event on sovereign debt, impact of inflationary expectations on interest rates, and exchange rate volatility were outlined as the key the risks that could affect credit quality.
While the Greek debt crisis is still sending shivers through the global economy, India's central bank looks set to raise interest rates for the second time in as many months on 20 April 2010, and the speedy recovery of Asia's third-largest economy has raised concerns of a possible surge in capital inflows.
The BSE 30-share Sensex fell 255.62 points or 1.42% to 17,714.40. The Sensex lost 290.68 points at the day's low of 17,679.34 in late trade. The index fell 9.11 points at the day's high of 17960.91 in early trade.
The S&P CNX Nifty declined 70.20 points or 1.31% to 5,304.45.
The BSE Mid-Cap index fell 0.4% and the BSE Small-Cap index fell 0.38%. Both the indices outperformed the Sensex.
Most sectoral indices on BSE declined. BSE Oil & Gas index (down 1.88%), Metal index (down 1.87%), and banking sector index Bankex (down 1.65%), underperformed the Sensex. BSE Consumer Durables index (up 2.25%), Realty index (up 0.55%), IT index (up 0.34%), FMCG index (down 0.54%), Power index (down 0.76%), Healthcare index (down 0.78%), Capital Goods index (down 1.06%), Auto index (down 1.35%), and PSU index (down 1.41%), outperformed the Sensex.
The market breadth, indicating the overall health of the market, turned weak in contrast to a strong breadth earlier in the day. On BSE, 1188 shares advanced as compared with 1688 that declined. A total of 81 shares remained unchanged.
Among the 30-member Sensex pack, 26 fell while the rest of them advanced.
BSE clocked turnover of Rs 4784 crore, lower than Rs 5891.13 crore on Wednesday, 7 April 2010.
Reliance Industries (RIL) fell 2.19% on profit taking after recent strong gains. Reliance Industries' promoter entities have acquired shares worth Rs 113.57 crore through off-market transactions, the company said on Wednesday. Five promoters, however, have sold shares of the company worth Rs 78.03 crore through off-market transactions, the filing said.
RIL is producing 63-64 million standard cubic metres a day (mmscmd) of gas from the D6 block off India's east coast, executive director P.M.S. Prasad said on Tuesday. The company is producing 21,000 barrels per day of oil from the block, he added.
Capital goods pivotals fell on profit taking. India's top power equipment maker by sales Bharat Heavy Electricals (Bhel) fell 1.63%. The stock had risen to a 52-week high of Rs 2,559.50 in intra-day trade on Wednesday, 7 April 2010. As per recent reports the company plans to re-enter wind turbine manufacturing space in the next three months.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 1.19%, with the stock declining for the second straight day. The company on Monday said it has received an order worth Rs 1,060 crore from Gujarat State Petroleum Corporation (GSPC) to build an offshore oil platform.
Among other capital goods stocks, Punj Lloyd, ABB, BEML, Siemens, Praj Industries fell by between 0.33% to 1.18%.
Auto stocks fell on profit taking after the recent upmove that was triggered by robust March 2010 sales figures. India's largest commercial vehicle maker by sales Tata Motors fell 2.41% as one of its ultra-cheap Nano cars caught fire on Wednesday, 7 April 2010, perhaps due to a technical snag in its rear portion.
India's top small car maker by sales, Maruti Suzuki India fell 1.23%. The company said on Monday it has 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.
India's leading bike maker by sales Hero Honda Motors fell 1.54%. India's second largest bike maker by sales Bajaj Auto fell 0.23% reversing early gains. Bajaj Auto will distance itself from the parent brand Bajaj and focus on just four motorcycle brands - Boxer, Discover, Pulsar and KTM - as well as the rear-engine three-wheeler brand, phasing out the rest, managing director Rajiv Bajaj was quoted by the media as saying on Thursday.
India's largest tractor maker by sales Mahindra & Mahindra fell 0.91% reversing early gains on reports the company has raised prices of utility vehicles due to a rise in input and fuel costs, and expenses associated with migrating to new emission norms.
From this month, 13 cities across the country have switched over to Bharat Stage IV emission norms. Following this, many carmakers, have increased the vehicle prices. With newer technology required for upgradation, auto companies had said they would have to pass on the increased cost to customers. In February, following the 2% increase in excise duty on all non-oil products to 10% in the Budget, auto players had hiked prices of vehicles by up to Rs 70,000.
Metal stocks declined after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 0.61% on 7 April 2010. NMDC, Sterlite Industries, National Aluminum Company, Hindalco Industries, JSW Steel, Sesa Goa and Hindustan Zinc fell by between 0.45% to 4.29%.
India's largest private sector steel maker by sales Tata Steel fell 1.86%. The company said on Tuesday its sales for the fiscal year ended on 31 March 2010 rose 18% from a year ago to 6.17 million tonnes.
Steel Authority of India (Sail) fell 7.18% after the cabinet approved a 20% stake sale in state-run firm in two tranches. The sale is expected to fetch the government Rs 8000 crore ($1.8 billion) in the first sale of 10%, Home Minister Palaniappan Chidambaram said. The government currently holds 86% stake in Sail, India's top domestic maker of the alloy.
Banking and housing finance shares edged lower on fears of an impending hike in key policy rates by the Reserve Bank of India at its monetary policy review meet scheduled to be held on 20 April 2010. India's largest bank by net profit and branch network State Bank of India fell 0.86% extending losses for the third straight day. Chairman O.P. Bhatt said on Tuesday the bank may raise its lending and deposit rates in a couple of months. The state-owned bank will wait for the Indian central bank's monetary policy action to take a final call on interest moves, Bhatt said.
India's largest private sector bank by net profit ICICI Bank fell 2.65% extending Wednesday's 1.13% loses. India's second largest private sector bank by net profit HDFC Bank fell 1.7%.
India's largest mortgage finance firm by total income Housing Development Finance Corporation fell 2.86%, with the stock declining for the second straight day.
As per the latest fortnightly report released by the RBI, banks disbursed an additional Rs 1,15,548 crore in the 15 days up to 26 March 2010, almost 25% of the Rs 4,64,849 crore disbursed in the entire financial year. Thus, fourth quarter of FY 2010 accounted for 47% of the total loans disbursed during the entire FY 2010. The unusually high disbursals pushed the year on-year growth in credit to 16.7% at the end of the financial year. Banks typically step updisbursals in the last weeks of a quarter, even more so towards the end of the year, to meet targets. However, disbursals in the fortnight up to 26 March 2010 are high even by year-end standards, surpassing the Rs 79,500 crore disbursed in the last fortnight of FY 2009.
Telecom pivotals fell ahead of the auction to provide super fast third generation (3G) service in the country's booming cellular market. The government is hoping to reap around $8 billion from the sale of 3G airwaves on 9 April 2010. India's largest listed cellular services provider by users Bharti Airtel fell 2.4%.
India's second listed largest cellular services provider by users Reliance Communications fell 1.32%.
3G allows mobile phone users to surf the Internet, video conference and download music, video and other content at a much faster pace than the current second-generation or 2G service.
Oil exploration firms fell, after the crude prices declined almost $1 a barrel on the New York Mercantile Exchange on Wednesday, 7 April 2010. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) declined 1.97%. Cairn India lost 2.29%. But, India's second biggest oil and gas exploration firm by revenue, Oil India, rose 0.14%. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms. Light, sweet crude oil declined 96 cents or 1.11%, to $85.88 a barrel on the New York Mercantile Exchange on Wednesday, 7 April 2010, after the US government data showed a bigger-than-expected increase in crude inventories.
India's largest real estate company by sales DLF gained 0.48%. The stock extended three-day gains on recent 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, Indiabulls Real Estate, Phoenix Mills, Omaxe rose by between 0.64% to 6.44%.
IT stocks rose on bargain hunting after recent losses triggered by a firm rupee. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
India's largest IT exporter by sales Infosys rose 0.52%. The key focus is Infosys' guidance for the year ending March 2011 (FY 2011). The company unveils its Q4 March 2010 and year-ended March 2010 (FY 2010) results on 13 April 2010. Market men expect a muted revenue and earnings guidance from the IT major after taking into account cross currency impact, planned employee addition, wage hike and higher taxes. The government hiked the minimum alternate tax (MAT) to 18% from 15% in the Union Budget 2010-2011.
Infosys is seen reporting about 1% to 2% growth in net profit in Q4 March 2010 over Q3 December 2009. The IT bellwether's revenue is seen rising 2% to 3% sequentially on the back of higher volume growth.
India's third largest software services exporter by sales Wipro rose 0.06%. India's largest software services exporter by sales Tata Consultancy Services was flat.
FMCG stocks also declined on profit taking. Hindustan Unilever, ITC, Tata Tea, Nestle India fell by between 0.4% to 1.44%.
Cals Refineries clocked the highest volume of 1.03 crore shares on BSE. Birla Power Solutions (0.93 crore shares), IFCI (0.88 crore shares), Shree Ashtavinayak Cine Vision (0.85 crore shares) and Pipavav Shipyard (0.75 crore shares) were the other volume toppers in that order.
Persistent Systems clocked the highest turnover of Rs 241.26 crore on BSE. Jubilant Food Organosys (155 crore), ARSS Infra (126.17 crore), Steel Authority of India (Rs 96.65 crore) and Jai Corp (Rs 7.84 crore) were the other turnover toppers in that order.
Crude drops for first time in seven sessions
Prices drop as crude stockpiles rise
Crude oil prices dropped for first time in seven sessions on Wednesday, 07 April 2010. Prices dropped as energy department reported a buildup in crude inventories for last week.
On Wednesday, crude-oil futures for light sweet crude for May delivery closed at $85.88/barrel (lower by $0.96 or 1.1%). 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 7.9%.
Prices are still very much lower as compared to 3 July, 2008 settlement of $145.29 a barrel and an intraday high of $147.27 on 11 July, 2008, an all-time high. However, oil has also gained nearly 156% from a December, 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
The EIA reported today an increase in crude stockpiles of 2 million barrels in the week ended 2 April against an expected figure of 1.5 million barrels. It was the 10th consecutive increase in oil supplies. The EIA also reported a decrease in gasoline inventories of 2.5 million barrels. The agency reported an increase in distillates, which include heating oil and diesel, of 1.1 million barrels. The refinery use was also bearish for prices, coming in as 84.5% of capacity, or a nearly 2% increase.
Elsewhere, natural gas continued its recent volatile trade and extended the prior session losses. May natural gas closed 2.0% lower at $4.02 per MMBtu on anticipation that tomorrow the EIA will report another buildup in natural gas inventories.
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. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for April delivery closed higher by Rs 6 (0.15%) at Rs 3,850/barrel. Natural gas for April delivery closed at Rs 181.3/mmbtu, lower by Rs 1.5 (0.82%).
Negative global cues may trigger a weak start
Headlines for the day:
RIL promoters acquire shares worth Rs113 cr
ACC's savings through AFR business rise 79%
Kingfisher may raise Rs300 cr debt soon
Events for the day:
Major corporate action
Weekly inflation to be announced today
Ex-date for Interim dividend of SRF and Thinksoft Global Services
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares ended lower on Wednesday, following a recent strong run, as worries over Greece's fiscal problems resurfaced, and a downward revision to euro zone growth highlighted the fragility of the recovery.
The US stocks fell in a broad late-day drop on Wednesday after a top Federal Reserve official said interest rates should not stay low for much longer, giving investors an excuse to take profits.
In today's trade, the Asian markets were trading in the negative territory, following the overnight losses on the Wall Street. At the time of writing this report, SGX Nifty was trading 19.5 point lower.
Indian markets
After rallying from the last week, the Indian markets are likely to open lower on the back of the negative cues that are coming from the global markets. With the weekly inflation numbers to be announced today, which will be closely eyed by the RBI and that will decide the further course for the interest rate hike. The earning season is eagerly awaited by the market players, which will start from the next week. The result season will kick-off from Infosys Technologies on April 13, 2010.
Commodity cues
In the commodity space, the crude oil prices posted loses, with the Nymex light crude oil for the May series fell 96 cents to settle at $85.88 a barrel. This marked the first decline in the past seven trading sessions, whereas in the metals space, the Comex Gold for the May series rose by $17.20 and the Comex Silver for the May series was up by $0.27 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 07 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs590.30 crore, whereas the domestic mutual funds, on April 06 2010, were the net sellers of the stocks to the tune of Rs147.70 crore.
Gold rises for fifth straight day
Prices continue to shine despite a strong dollar
Precious metal prices ended higher on Wednesday, 07 April 2010. Prices rose despite a strong dollar mainly on anticipation of higher demand in coming months. It was fifth straight rise for the yellow metal.
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 $1,153 an ounce, higher by $17 (1.5%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.8%. 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%, its sixth quarterly rise. On a year to date basis, gold is higher by 5.1%.
On Wednesday, May Comex silver futures ended higher by 27 cents (1.5%) at $18.2 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 6.9%.
In the currency market on Wednesday, the euro came under pressure following renewed concerns about Greece and its ability to manage its finances. The dollar hit an eleven-month high against the euro earlier Wednesday. Greek bonds were hit a day earlier as investors reacted to uncertainty about how the joint European-International Monetary Fund aid package agreed to last month would function. The dollar index, which measures the strength of the dollar against basket of six other currencies rose by almost 0.5%. The dollar index gained about 0.7% in March and rallied 4% during the first quarter. The dollar index has gained 5.3% this year till date.
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 232 (1.4%) at Rs 16,788 per ten grams. Prices rose to a high of Rs 16,798 per 10 grams and fell to a low of Rs 16,560 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 351 (1.3%) higher at Rs 27,629/Kg. Prices opened at Rs 27,340/kg and rose to a high of Rs 27,668/Kg during the day's trading.
Grey Market Premiums - Apr 8 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Shree Ganesh Jewellery | 260 | Discount |
| Infrasoft Technology | 145 | 8 to 10 |
| Goenka Diamond & Jewellery | 135 | Discount |
Daily News Roundup - Apr 8 2010
Reliance Industries has implemented and commissioned 1MW solar Photo Voltaic power plant at Thyagaraj Stadium in Delhi. (BL)
NTPC is planning to enter into large volume contracts for coal supply. (BL)
Cabinet to take SAIL disinvestment proposal today. (BS)
NTPC to build power plant in Bangladesh. (BS)
Indian Hotel Company may scout for acquisitions for expanding operations overseas in the near future. (BL)
M&M raises utility vehicle prices by up to Rs26,100. (ET)
JSW Steel has earmarked a capex of Rs70bn for CY11. (ET)
National Pharmaceutical Pricing Authority has slapped a notice on Piramal Healthcare for selling its 10-ml pack of Pred Acetate without getting regulator’s prior approval. (BS)
Canara Bank may consider raising funds through QIP this year. (BL)
Andhra Bank total business grows 29% yoy in FY10. (BL)
Emami to set up power plant in Ethiopia. (ET)
NHPC would commission a 700MW project during FY11. (BL)
Kingfisher Airlines set to float US$100mn GDR issue. (BL)
Natco Pharma launches Bendit, drug for the treatment of Chronic Lymphyocyctic Leukemia. (BL)
BGR Energy bags an order worth Rs990mn from PowerGrid. (BL)
Moser Bear commission solar farm in Maharashtra. (BL)
JK Paper to expand capacity, invest Rs15bn. (BL)
Nestle to offer more ‘Indianised’ products. (ET)
Essar Energy may launch the biggest ever IPO by an Indian company as early as next week to raise US$2.5bn. (ET)
Blackstone group invest Rs2.25bn in Jagran Media. (BL)
Ackruti City plans to raise Rs2.5bn for its proposed real estate venture capital fund. (BS)
The government is expected to take a decision on the proposal to ban FDI in tobacco products. (ET)
Government is likely to set up a committee of Group of Minister to take a final decision on divesting stake in BSNL. (BS)
India has set up a panel to specify audit norms for all communication networks. (ET)
Tea output rises 23%, exports up 11% in Jan-Feb 2010. (BL)
Stumble on the Street!
Everybody knows if you are too careful you are so occupied in being careful that you are sure to stumble over something – Gertrude Stein.
The bulls finally managed to jump around Mount 18K but didn’t really manage to hoist their flag. The Nifty could surpass 5400 in the near term, provided there are no untoward developments and FII inflows remain firm. Some selling pressure will set in at higher levels given the jitters surrounding high valuations. In addition, a spate of headwinds like elevated inflation, impending rise in interest rates and a fragile global economy could play spoilsport. Monsoon will of course be the joker in the pack.
Today we expect a slightly lower start owing to soft global cues. US stocks fell despite Fed’s dovish words. Talk of potential changes to the EU-IMF debt rescue for Greek cast a shadow over world markets. Asian markets are mostly in red as US consumer credit and Japanese machinery orders reports missed economist estimates.
Back home, IIP data will be declared on Apr 12, while monthly inflation will be released on April 14. RBI’s annual policy is on Apr 20. Another round of rate hike could be in the offing. So, trade wisely and be on guard to shift gears quickly if the need arises.
US stocks pulled back a little amid mixed corporate news and steady increase in oil prices. Meanwhile, Fed chairman Ben Bernanke is more upbeat about the economic outlook than he has been at any time since the financial crisis began in the summer of 2007. Economic conditions in the US would continue to improve and be strong enough to slowly reduce the unemployment rate, he says.
Japanese shares have been dragged down by weaker-than-expected economic data. European shares retreated from recent highs amid some weakness in the commodity space and Greek banks.
FIIs were net buyers in the cash segment on Wednesday at Rs3.38bn on a provisional basis. Local funds were net sellers of Rs234.3mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs11.78bn. On Tuesday, FIIs were net buyers of Rs5.9bn in the cash segment, as per the SEBI web site.
US stocks slipped following a report that consumer borrowing fell and General Motors said it lost billions of dollars during the second half of 2009.
The Dow Jones Industrial Average lost 72 points, or about 0.7%, to end at 10,897.52. The S&P 500 index fell 7 points, or 0.6% to 1,182.44. The Nasdaq Composite shed 6 points, or 0.2% to 2,431.16.
The blue-chip Dow has bumped against the important mark lately. On Monday, the index rose to within 11 points of 11,000. The Dow last closed above that level on Sept. 26, 2008.
With one hour left in the session, the Federal Reserve reported consumer credit fell at an annual rate of 5.6% in February to $2.448 trillion, after increasing for the first time in a year during the previous month. Analysts had expected a drop of only $0.7 billion.
The Dow fell more than 122 points immediately following the report's release then pared losses ahead of the market's close.
US Treasurys rose, with the yield on the benchmark 10-year note falling to 3.63%.
Earlier this week, the yield topped 4% for the first time in 18 months amid optimism about the economic recovery. Wednesday's auction of 10-year notes was part of an $82 billion offering this week of US debt.
Oil prices dipped, with crude for May delivery settling down 96 cents to $85.88 a barrel. The government's weekly oil inventories report said crude oil supplies rose about 1.1 million barrels last week.
COMEX gold for June delivery settled at $1,153 an ounce, up $17 from the previous day.
The dollar managed gains against the euro and British pound, but it slipped against the yen.
Lingering concerns about the debt woes brewing in Europe also weighed on stocks. Greece denied reports on Tuesday that it was uncomfortable with accepting assistance from the International Monetary Fund.
Trading on Wall Street was muted on Tuesday, but the Nasdaq and S&P 500 edged higher to finish at 1-1/2 year highs.
The market needs a catalyst to get investors to buy at these levels. It would be difficult to break barriers at the 11,000 mark on the blue-chip Dow index and 1,200 for the S&P.
The market is in a wait-and-watch mode, as investors look ahead to quarterly corporate results season. There Will also be the headwinds of increased interest rates and higher commodities costs. That could slow further progress on bourses.
Investors are also looking at the impact of winding down federal purchase programs. Last week, the Federal Reserve stopped buying securities backed by pools of mortgages.
Shortly after the start of trade, General Motors posted a $4.3 billion loss for the July-December period of 2009, during which the company emerged from bankruptcy protection.
The Financial Crisis Inquiry Commission began a three-day hearing, focusing on the causes behind the mortgage meltdown. Former Fed Chief Alan Greenspan testified at Wednesday's hearing, saying that while steps can be taken to limit the impact of another shock, regulators can't fully prevent another crisis from happening.
European shares closed down, as commodity-sector firms retreated, Greek banks fell and Renault shares traded lower after signing a three-way tie-up with Daimler and Nissan.
After closing at a fresh 2010 high on Tuesday, the Stoxx Europe 600 index declined 0.2% to 268.94. On Tuesday, the index had closed at 269.37, its highest level since Sept. 25, 2008, amid optimism for a sustained recovery in the global economy.
Commodity-sector firms gained on Tuesday but traded lower on Wednesday.
Data showed that the euro-zone's economic rebound lost steam in the final quarter of 2009, with gross domestic product unchanged from the previous quarter. An earlier estimate showed growth of 0.1%.
A sharper-than-forecast contraction in the Greek economy meant that the Greek government edged up its 2009 budget deficit forecast to between 12.8% and 12.9% of GDP on Wednesday, just above an earlier estimate of 12.7%, according to reports.
Worries about Greece have weighed on the single currency lately, and the euro declined 0.2% to $1.3363 against the dollar.
The Greek ASE Composite Index dropped 3% to 1,987.58, with banks under heavy selling pressure.
The UK's FTSE 100 index declined 0.3% to 5,762.06, the French CAC-40 index lost 0.7% to 4,026.97 and the German DAX index declined 0.5% to 6,222.41.
Notwithstanding the deadly Maoist attack in Chhattisgarh, the BSE Sensex took off in style, with the index breaching the psychological 18,000 mark for the first time since February 2008. The NSE Nifty missed the 5400 mark by a whisker. However, as the day progressed, the momentum faded away and the market turned a bit volatile in the mid-afternoon trades.
Heavy offloading was seen in the second half, and index front runners like Reliance Industries, ICICI Bank and HDFC dragged the Sensex and Nifty nearly 80 points and 30 points from their respective day’s highs. However, bulls showed great resilience and the main indices managed to recover in the closing hour aided by the Auto and the Oil & Gas stocks.
"After being continuously battered for the past couple of weeks, IT stocks seem to attract some buying interest as the rupee retreated from its 19-month high. The space was also in focus as Infosys will announce its results on April 13", says Amar Ambani, VP Research India Infoline.
Advance-decline ratio stayed in favor of the bulls for the third straight day. Out of total 2972 stocks on the BSE, 1669 stocks advanced as against 1216 declining stocks while, 87 remained unchanged.
Finally, the BSE Sensex gained 29 points to end at 17,970 and NSE Nifty added 9 points to close at 5,375. Among the 30 components of Sensex, 19 ended in the positive terrain and 11 were in the red.
In Asia, the Nikkei in Japan ended flat, Australia's S&P/ASX gained 0.2%. Shanghai SE Composite ended lower by 0.3% and Hang Seng index in Hong Kong was up 2%.
In Europe, stocks were trading flat. The DAX in Germany, the CAC 40 index in France and the FTSE in the UK all were trading almost unchanged.
Coming back to India, among the BSE sectoral indices, the BSE Auto index was top gainer, the index rose 1.1%, followed by BSE Oil & Gas index up 0.8% and realty index up 0.5%.
Outside the frontline indices, the big gainers in the broader market were Central Bank, Idea, IRB Infra and Bharat Forge. On the other hand, losers included Jain Irrigation, PNB, Ispat Ind and LITL.
Glenmark Pharmaceuticals announced that Glenmark Generics received UK-MA approval for Ropinirole film-coated tablets and to distribute Lercanidipine Hydrochloride film-coated tablets.
Shares of Glenmark Pharma marginally gained by 0.3% to end at Rs278. The scrip opened at Rs280 it touched an intra-day high of Rs281 and a low of Rs274 and recorded volumes of over 0.22mn shares on BSE.
Suzlon Energy proposed a meeting of bond holders on April 29, 2010 to consider proposed resolutions in relation to the trust deeds and certain terms and conditions of convertible bonds.
Shares of Suzlon edged higher by 0.2% to end at Rs75.2. The stock opened at Rs76 it touched an intra-day high of Rs76.2 and a low of Rs74 and recorded volumes of over 4.4mn shares on BSE.
Shares of NTPC gained by 1% to end at Rs212 after the Chairman of company R.S. Sharma said that the company plans to set up a coal-fired power plant in Bangladesh in a venture with a local company. The scrip opened at Rs210 it touched an intra-day high of Rs212 and a low of Rs209 and recorded volumes of over 0.62mn shares on BSE.
Shares of Godrej Consumer Products gained 1% to end at Rs281 after the company announced that it has agreed to buy Indonesian household insecticide maker PT Megasari Mamur.The scrip opened at Rs287 it touched an intra-day high of Rs299 and a low of Rs281 and recorded volumes of over 0.13mn shares on BSE.
Shares of Shree Ashtavinayak surged by over 2.5% to end at Rs13 after the company announced that the board of directors has approved the proposal of buy back up to maximum price of Rs21.60 per share and up to Rs250mn from Open market through Stock Exchange. The scrip opened at Rs13.45 it touched an intra-day high of Rs13.45 and a low of Rs12.8 and recorded volumes of over 14.3mn shares on BSE.
Shares of Rana Sugars shot up by over 8% to end at Rs14.15 after the United Nations Framework Convention on Climate Change approved Carbon Credits to the company for using Green Energy for its Bagasse based Cogeneration Power Project situated at District Amritsar, Punjab. With this benefit, the profitability of the company is likely to be increased considerably.
Dewan Housing Finance announced that the company proposes to seek the approval of the board of directors to consider and approve fund raising through issue of securities, by way of equity shares / equity related instruments: (i) To QIB's through QIP and/or to FIIs through FDI route.
Also to issue equity shares and/or convertible equity warrants to the Promoter /Promoter group of the company on preferential basis as per SEBI (ICDR) Regulations 2009
And also to enhance FIIs investment limit in the paid up capital of the company as per FEMA Guidelines.
Shares of Dewan Housing surged by over 3% to end at Rs218. The scrip opened at Rs212 it touched an intra-day high of Rs227 and a low of Rs210 and recorded volumes of over 0.4mn shares on BSE.
Market may fall on weak Asian stocks; food inflation data eyed
The key benchmark indices may fall tracking weak global stocks after a recent sharp surge with indices scaling more than 25 month closing high backed by expectations of good fourth quarter result by India Inc and heavy foreign fund inflows. Meanwhile, the government will unveil data on some wholesale price indices for the year through 27 March 2010 viz. the food price index, the primary articles index and the fuel price index at about 12:00 IST today, 8 April 2010.
Asian stocks fell for the first time in six days on Thursday after Japanese machinery orders unexpectedly dropped and U.S. consumer credit slumped more than economists forecast. The key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea and Singapore fell by between 0.03% to 0.79%. But Taiwan's Taiwan Weighted rose 0.13%.
There was zero economic growth in the euro region from October through December, the statistics office said yesterday, after previously reporting a 0.1% expansion.
The European Central Bank will flesh out on Thursday a revamp of its lending rules to help ease the financial squeeze on Greece, while keeping euro zone interest rates at a record low 10%. the focus will remain squarely on what President Jean-Claude Trichet has to say on the subject after the bank's monthly meeting.
US stocks slipped on Wednesday after a senior Federal Reserve member said policy makers should start raising rates to 1% soon and Greek debt concerns. In economic data, mortgage applications ticked up just 0.2% last week as a spike in mortgage rates clipped demand for refinancing. Another report showed consumer borrowing fell by $11.5 billion in February, much weaker than the $500 million gain expected.
The Dow Jones fell 72.47 points or 0.86% to 10,897.52. The Nasdaq declined 5.65 points or 0.23% to 2431.16 and the S&P 500 fell 6.99 points or 0.59% to 1182.45.
The U.S. government will encourage China, India, Brazil and other fast-growing markets to buy more American goods as part of its bid to double exports in five years, Under Secretary for International Trade Francisco Sanchez said on Wednesday.
Close home, the Reserve Bank of India will have to further tighten monetary policy on 20 April 2010 if prices continue to rise, as expected, from 9.89% headline inflation in February, the chief statistician said on Wednesday. The Reserve Bank of India (RBI) will review its monetary policy on 20 April 2010. Sen, however, declined to specify what policy actions were required, saying it was for the central bank to decide.
The four-month spell of wholesale price inflation above the RBI's perceived comfort zone of 5% prompted the central bank in March to unexpectedly hike its key lending rates by 25 basis points.The Reserve Bank last month warned of inflationary pressures from higher capacity utilisation and rising commodity and energy costs.
Sen said WPI inflation in March was likely to be higher than February's 9.89%, partly due to a low base effect. Headline inflation could start easing from April when the base effect starts wearing off, he added, noting that food price inflation has already started moderating. The inflation for the month of March 2010 will be announced by the government on 12 April 2010. The food price index rose an annual 16.35% in the 12 months to 20 March 2010, above the previous week's reading of 16.22%. Fuel inflation rose 12.75%in the same period from the previous week's 12.68% rise. Sen said non-agricultural inflation was still accelerating.
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.
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 companies 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 on Monday, 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.
Meanwhile, abnormally hot weather and lower than expected rains are reportedly raising the spectre of India facing another water shortage in the coming kharif season, said a senior official of the Indian Meteorological Department, the country's weather forecasting agency. Rains have been 66% lower than normal in March. Temperature has been 4 to 7 degrees above normal, making it the hottest March in almost a decade report said.
The key benchmark indices registered small gains in what was a highly volatile trading session on Wednesday, 7 April 2010. The market attained its highest closing level in more than 25 months. The barometer index BSE Sensex fell below the psychological 18,000 level after racing above that level in early afternoon trade. The BSE 30-share Sensex rose 28.65 points or 0.16% to 17,970.02, its highest closing level since 19 February 2008 on that day.
As per provisional figures on NSE, foreign funds bought shares worth Rs 338.78 crore and domestic funds sold shares worth Rs 23.43 crore on Wednesday.
Kavveri Telecom Products
Kavveri Telecom Products is in a medium-term uptrend from its July 2009 trough of Rs 38.1. The stock took support at the medium-term uptrend-line in the last week of March before bouncing higher.
The uptrend from this trough has been very strong and the stock has recorded six-consecutive up-closes since then. What is more important is that the stock recorded a close above the key medium-term resistance at Rs 90 on Wednesday. It had been struggling to cross above this level since this January.
Our medium-term view for this stock will stay positive as long as it holds above Rs 90.
Oscillators in the daily chart have perked up this week. Both the moving average convergence divergence oscillator as well as the 10-day rate of change oscillator have moved higher after protracted sideways movement. The relative strength index indicator strikes a slightly discordant note since it has moved in to overbought zone. But there is no sign of weakness on the oscillator charts yet.
The stock is expected to move higher to Rs 100 and Rs 106 in the days ahead. Investors with short-term trading perspective can buy the stock with stop at Rs 91.
via BL
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