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Monday, April 19, 2010
Goldman, policy review see market down
Today's major news
Reserve Bank of India to talk tough on teaser rates
Maithan Alloys shines on bonus issue; the stock closes 5% higher
Insurance Regulatory Development Authority (IRDA) and postal department in spat
Click here for more stories
Global signals
European shares dipped in early trades, with the banks extending their declines from Friday, when Goldman Sachs was charged with securities fraud, and airlines scrips slid as flying restrictions persisted on account of ash from Eyjafjallajökull.
All the major Asian indices closed negative. The SGX Nifty closed 62 points lower.
The US stock index futures fell on Monday as lingering concerns over fraud charges against Goldman Sachs weighed on investor sentiment.
Indian indices
Indian scrips extended their losing streak for the fifth straight trading session as civil fraud charges against Goldman Sachs filled by US Securities Exchange Commission (SEC) triggered a sell-off across global markets. Bearish global cues (global indices on an average were trading 1.5% lower) saw Indian market start off flat, mere 6 points lower, but the Sensex dropped by over 200 points almost immediately, as Asian markets caught contagion.
Selling pressure across realty and metal stocks pulled Sensex 314 points lower to 17277— the day’s low. Mid session, the sentiments turned more negative on speculation of hike in policy rates in the monetary policy due tomorrow. The index however made a smart comeback recovering nearly 140 points led by gains in index heavyweights such as HDFC, Bharti Airtel, Hindalco Industries and ICICI Bank. Sensex ended the session at 17400, down 190 points and Nifty closed 59 points lower at 5203.
Market sentiment
Trailing scrips outnumbered advancing ones. Of the 3,021 shares traded on the BSE, 950 shares (31%) advanced whereas 1,953 shares (65%) trailed, while hundred and eighteen shares (4%) remained unchanged.
Sectoral & stock screening
All the 13 sector indices on BSE traded negative all through the day and closed in red. Sectors that were hit the worst was BSE Realty that was down 2.51% followed by BSE Metal that declined 2.11%. Rest of the sectors fell in the 0.34%-1.96% range.
The top 3 gainers today were Jain Irrigation that surged 7.01% followed by Allahabad Bank, which rose 4.42%, and Zee Entertainment that jumped 3.37%. The top 3 losers were Jet Air India that was down 6.47% followed by JSW steel, which slid 4.94% and GMR Infra, which fell 4.75%.
Viewing volumes
India’s second largest realty major Unitech was the most actively traded share with over 0.85 crore shares changing hands on the BSE followed by steel maker Ispat Industries (0.40 crore shares), wind turbine major Suzlon Energy (0.34 crore shares), Fortis Healthcare (0.33 crore shares) and GTL Infrastructure (0.32 crore shares).
BSE Bulk Deals to Watch - Apr 19 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
19/4/2010 530901 ACIL Cot Inds ABHIJAI INVESTMENT B 113644 31.50
19/4/2010 530901 ACIL Cot Inds MAYUR SHELANI B 64000 31.50
19/4/2010 530901 ACIL Cot Inds AAKANSHA RAJENDRA SURANA S 200000 31.50
19/4/2010 520077 Amtek Auto BIRLA MUTUAL FUND A/C BIRLA MIDCAP FUND B 1000000 180.00
19/4/2010 520077 Amtek Auto RAPID ESTATES PRIVATE LTD S 3500000 180.16
19/4/2010 533159 AQUA LOGIST GENUINE STOCK BROKERS PVT. LTD. B 156066 326.86
19/4/2010 533159 AQUA LOGIST SMART EQUITY BROKERS PRIVATE LIMITED B 397425 327.33
19/4/2010 533159 AQUA LOGIST CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 160668 327.52
19/4/2010 533159 AQUA LOGIST A K G STOCK BROKERS PRIVATE LIMITED B 115711 317.77
19/4/2010 533159 AQUA LOGIST HASMUKHBHAI VARDHILAL THAKKAR B 126162 326.85
19/4/2010 533159 AQUA LOGIST MATRIX EQUITRADE PRIVATE LIMITED LIMITED B 122525 320.64
19/4/2010 533159 AQUA LOGIST OPG SECURITIES P LTD B 648964 323.85
19/4/2010 533159 AQUA LOGIST GENUINE STOCK BROKERS PVT. LTD. S 156066 326.87
19/4/2010 533159 AQUA LOGIST SMART EQUITY BROKERS PRIVATE LIMITED S 397425 327.26
19/4/2010 533159 AQUA LOGIST CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 160668 328.23
19/4/2010 533159 AQUA LOGIST A K G STOCK BROKERS PRIVATE LIMITED S 115711 318.19
19/4/2010 533159 AQUA LOGIST HASMUKHBHAI VARDHILAL THAKKAR S 126162 326.83
19/4/2010 533159 AQUA LOGIST MATRIX EQUITRADE PRIVATE LIMITED LIMITED S 122525 320.46
19/4/2010 533159 AQUA LOGIST OPG SECURITIES P LTD S 648964 323.82
19/4/2010 531591 Bampsl Sec PRAKASH CHANDGUPTA B 457946 1.54
19/4/2010 532443 Cera Sanitary SAINATH HERBAL CARE MARKETING P.LTD B 36366 257.23
19/4/2010 531270 Dazzel Conf JYOTI COPPER CRAFT PVT.LTD B 41000 11.28
19/4/2010 517973 DMC Intl MUKESHKUMAR GUPTA B 217868 18.25
19/4/2010 517973 DMC Intl OURS TRADING AND HOLDINGS PRIVATE LIMITED B 126150 18.23
19/4/2010 517973 DMC Intl BHARAT GUPTA S 218472 18.20
19/4/2010 517973 DMC Intl OURS TRADING AND HOLDINGS PRIVATE LIMITED S 118329 18.17
19/4/2010 511668 Fact Enterprise DIVYESH NIRANJAN PATEL S 75917 37.40
19/4/2010 532843 Fortis Health TRINITY CAPITAL (EIGHT) LIMITED S 2200000 160.01
19/4/2010 533189 GOENKA DIAM GENUINE STOCK BROKERS PVT. LTD. B 246313 116.64
19/4/2010 533189 GOENKA DIAM CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 215026 116.77
19/4/2010 533189 GOENKA DIAM OPG SECURITIES P LTD B 421751 117.05
19/4/2010 533189 GOENKA DIAM RKSV SECURITIES INDIA PRIVATE LIMITED B 187282 117.46
19/4/2010 533189 GOENKA DIAM PUNIT TAPARIA B 185714 115.75
19/4/2010 533189 GOENKA DIAM SAHAR VYAPAR PRIVATE LIMITED B 230358 116.37
19/4/2010 533189 GOENKA DIAM GENUINE STOCK BROKERS PVT. LTD. S 246313 116.61
19/4/2010 533189 GOENKA DIAM CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 215851 116.99
19/4/2010 533189 GOENKA DIAM OPG SECURITIES P LTD S 421751 116.94
19/4/2010 533189 GOENKA DIAM RKSV SECURITIES INDIA PRIVATE LIMITED S 187282 117.32
19/4/2010 533189 GOENKA DIAM PUNIT TAPARIA S 185714 116.27
19/4/2010 533189 GOENKA DIAM SAHAR VYAPAR PRIVATE LIMITED S 256393 116.62
19/4/2010 513059 GS Auto MANJIT SINGH B 43001 39.14
19/4/2010 532951 GSS America DHANANJAYA MONEY MANAGEMENT SERVICES PVT LTD B 76383 340.36
19/4/2010 532770 Hanung Toys AJMERA SHARES TRADING PRIVATE LIMITED B 249142 240.04
19/4/2010 532770 Hanung Toys AJMERA SHARES TRADING PRIVATE LIMITED S 253741 240.18
19/4/2010 511682 IFL Promoters SHAM SUNDER GUPTA B 20000 15.86
19/4/2010 511682 IFL Promoters SHIVCHARAN DASSMITTAL B 20000 14.50
19/4/2010 511682 IFL Promoters SHAM SUNDER GUPTA S 20000 14.50
19/4/2010 507981 Jindal Hotels RAKESH R SHAH B 22923 59.08
19/4/2010 507981 Jindal Hotels RAHUL DOSHI B 20000 63.78
19/4/2010 507981 Jindal Hotels NALANDA MERCANTILES P.LTD B 19313 62.12
19/4/2010 530955 Kailash Ficom SHINGAR DYES AND CHEMICALS LTD B 70000 35.40
19/4/2010 530955 Kailash Ficom ABHIJAI INVESTMENT S 69697 35.40
19/4/2010 530255 KAY Power KAUSHALYA GARG B 91328 17.85
19/4/2010 530255 KAY Power BAMPSL SECURITIES LTD B 169790 18.03
19/4/2010 530255 KAY Power KAUSHALYA GARG S 100000 17.24
19/4/2010 530255 KAY Power BAMPSL SECURITIES LTD S 236112 17.65
19/4/2010 530255 KAY Power KAILASHCHAND GUPTA S 73470 17.58
19/4/2010 530255 KAY Power B.S.KHANDELWAL S 77174 18.27
19/4/2010 513693 KIC Metaliks CARWIN MERCANTILES PRIVATE LTD S 41130 81.20
19/4/2010 532067 Kilpest India SUNIL BHANDARI B 58396 18.02
19/4/2010 532067 Kilpest India REKHA BHANDARI S 75490 18.49
19/4/2010 531366 Kohinoor Broad BASMATI SECURITIES PVT LTD B 1000000 8.10
19/4/2010 531366 Kohinoor Broad S V ENTERPRISES B 761594 7.82
19/4/2010 509011 Livingroom Life AVISHEK BOSE B 50000 43.55
19/4/2010 509011 Livingroom Life SHAKERAJEHANGIR NAGREE S 50000 44.30
19/4/2010 509011 Livingroom Life JEHANGIR TURABALI NAGREE S 50000 43.51
19/4/2010 514450 Mahalaxmi Rub SANJAY SHAH B 50000 133.57
19/4/2010 502250 Marathwada Refrac SHEETAL DUSHYANT CHATURVEDI B 3950 335.40
19/4/2010 502250 Marathwada Refrac SATISH CHATURVEDI B 3950 335.40
19/4/2010 502250 Marathwada Refrac VIKAS RASTOGI S 7900 335.40
19/4/2010 590111 MASTER ROHIT MEHROTRA & CO. B 30000 37.85
19/4/2010 532553 MSK Projects BRIJWASI SECURITIES PVT LTD B 204017 164.17
19/4/2010 532553 MSK Projects BRIJWASI SECURITIES PVT LTD S 155513 165.89
19/4/2010 590090 Octant Inter NARESHCHAND JAIN B 245877 14.73
19/4/2010 590090 Octant Inter SHREY SECURITIES PVT LTD B 187559 14.80
19/4/2010 590090 Octant Inter NARESHCHAND JAIN S 245877 14.76
19/4/2010 590090 Octant Inter SHREY SECURITIES PVT LTD S 197559 14.76
19/4/2010 590090 Octant Inter M. ABDUL JAVEED S 490634 14.80
19/4/2010 512097 Oregon Comm NIRMALA MAHIPAL B 5102 218.57
19/4/2010 512097 Oregon Comm BHAVESH SHANTILAL TRIVEDI B 10000 220.05
19/4/2010 512097 Oregon Comm VEENA CHANDRAKANT VORA S 15000 216.50
19/4/2010 512097 Oregon Comm CHANDRAKANT PRANJIVAN VORA S 10000 216.51
19/4/2010 512097 Oregon Comm CHANDRAKANT PRANJIVAN VORA S 25000 216.50
19/4/2010 504288 Polar Inds ATRUN FISCAL PVT LTD B 84589 5.46
19/4/2010 504288 Polar Inds ANKUR CHOPRA S 90702 5.50
19/4/2010 503873 Priyadarshini Spn KAUSHALYA GARG B 55000 31.10
19/4/2010 503873 Priyadarshini Spn HARISH C S 100000 31.30
19/4/2010 530111 Raj Packaging ASHU BHANDARI S 20000 16.79
19/4/2010 507649 Rasoi BNK CAPITAL MARKETS LIMITED B 12800 312.50
19/4/2010 507649 Rasoi RAJYASHREE CHAUDHURI S 12800 312.50
19/4/2010 532972 Sankhya Info HBL POWER SYSTEMS LIMITED B 840482 39.12
19/4/2010 532972 Sankhya Info P C SHRIMAL S 59361 36.94
19/4/2010 532972 Sankhya Info RAJINIRAJINI MEKAMEKA S 280000 39.20
19/4/2010 532972 Sankhya Info N PADMAJAJ S 59645 39.17
19/4/2010 532972 Sankhya Info SUMANT KAPUR S 330000 39.10
19/4/2010 532972 Sankhya Info SUMANT KAPUR S 121232 39.10
19/4/2010 533056 SARK SYS MAG IMPEX PRIVATE LIMITED B 102350 34.73
19/4/2010 533056 SARK SYS SANKAR SEN B 75000 35.31
19/4/2010 531149 Shree Rang Mark VIVEK MEHROTRA B 100000 9.45
19/4/2010 531149 Shree Rang Mark WALL STREET CAPITAL MARKETS PVT LTD B 25000 9.45
19/4/2010 531149 Shree Rang Mark PUNNI SANGHAVI B 25000 9.45
19/4/2010 531149 Shree Rang Mark DHANANJAY RAMESH VISHWAMBHAR S 63600 9.45
19/4/2010 531149 Shree Rang Mark ROHINI S KAMANKAR S 22300 9.45
19/4/2010 531149 Shree Rang Mark PRAFULLA NAYAK S 64100 9.45
19/4/2010 523236 Shrenuj JOHN FOWLER INDIA PRIVATE LIMITED S 500000 49.00
19/4/2010 532218 South Indian Bank MORGAN STANLEY MAURITIUS COMPANY LIMITED B 1648353 173.58
19/4/2010 532218 South Indian Bank BIRLA SUN LIFE INSURANCE CO LTD S 1485000 173.73
19/4/2010 531373 Suave Hotels KAMAL PODDAR HUF S 63179 25.98
19/4/2010 526133 Supertex Inds SHAISHIL TUSHARKUMAR JHAVERI B 587525 3.76
19/4/2010 526133 Supertex Inds PARAMESHWAR EXPORTS PRIVATE LIMITED B 769601 3.69
19/4/2010 526133 Supertex Inds SHAISHIL TUSHARKUMAR JHAVERI S 586776 3.71
19/4/2010 590020 Tera Software RAJESH DINKAR FOWKAR B 50310 40.18
19/4/2010 590020 Tera Software PALECANDA KUSHALAPPA MEDAPPA S 50200 40.18
19/4/2010 532389 Valecha Engr AJMERA SHARES TRADING PRIVATE LIMITED B 104764 203.43
19/4/2010 532389 Valecha Engr AJMERA SHARES TRADING PRIVATE LIMITED S 104764 205.27
19/4/2010 531950 Vertex Sec MANSI SHARE & STOCK ADVISORS PRIVATE LIMITED S 32802 65.75
19/4/2010 531396 Women Networks NARENDRA KUMAR SURANA B 28000 32.05
19/4/2010 531396 Women Networks PREMLATA JAIN S 15478 32.14
19/4/2010 532794 Zee News TRANSGLOBAL SECURITIES LTD. B 1257005 17.82
19/4/2010 532794 Zee News TRANSGLOBAL SECURITIES LTD. S 1242048 17.83
NSE Bulk Deals to Watch - Apr 19 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
19-APR-2010,AQUA,Aqua Logistics Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,125540,319.26,-
19-APR-2010,AQUA,Aqua Logistics Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,160473,328.07,-
19-APR-2010,AQUA,Aqua Logistics Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,198293,328.23,-
19-APR-2010,AQUA,Aqua Logistics Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,125535,327.96,-
19-APR-2010,AQUA,Aqua Logistics Ltd,OM INVESTMENTS,BUY,170107,326.15,-
19-APR-2010,AQUA,Aqua Logistics Ltd,VICKY RAJESH JHAVERI ,BUY,135895,317.53,-
19-APR-2010,GOENKA,Goenka Diamond&Jewels Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,212477,116.77,-
19-APR-2010,GOENKA,Goenka Diamond&Jewels Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,310453,116.95,-
19-APR-2010,GOENKA,Goenka Diamond&Jewels Ltd,PAWANSUT TIE-UP PRIVATE LTD,BUY,335000,115.99,-
19-APR-2010,GOLDINFRA,Goldstone Infratech Ltd.,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,325778,32.53,-
19-APR-2010,GOLDINFRA,Goldstone Infratech Ltd.,SAR AUTO PRODUCTS LIMITED,BUY,219693,32.13,-
19-APR-2010,KALECONSUL,Kale Consultants Limited,MANISH VRAJLAL SARVAIYA,BUY,80519,102.41,-
19-APR-2010,MSKPROJ,MSK Projects (India) Limi,BRIJWASI SECURITIES PVT LTD,BUY,300889,164.26,-
19-APR-2010,SPICEMOBIL,Spice Mobiles Limited,SURENDRA NARAINDAS SAJNANI,BUY,430884,51.72,-
19-APR-2010,ZEENEWS,Zee News Limited,TRANSGLOBAL SECURITIES LTD.,BUY,1740134,17.80,-
19-APR-2010,AQUA,Aqua Logistics Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,125540,319.10,-
19-APR-2010,AQUA,Aqua Logistics Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,160473,327.86,-
19-APR-2010,AQUA,Aqua Logistics Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,198293,328.37,-
19-APR-2010,AQUA,Aqua Logistics Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,125535,327.96,-
19-APR-2010,AQUA,Aqua Logistics Ltd,OM INVESTMENTS,SELL,170107,326.34,-
19-APR-2010,AQUA,Aqua Logistics Ltd,VICKY RAJESH JHAVERI ,SELL,135895,330.59,-
19-APR-2010,FORTIS,Fortis Healthcare Limited,TRINITY CAPITAL (EIGHT) LIMITED,SELL,2853097,160.07,-
19-APR-2010,GOENKA,Goenka Diamond&Jewels Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,212477,116.86,-
19-APR-2010,GOENKA,Goenka Diamond&Jewels Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,310453,117.11,-
19-APR-2010,GOENKA,Goenka Diamond&Jewels Ltd,PAWANSUT TIE-UP PRIVATE LTD,SELL,335000,117.57,-
19-APR-2010,GOENKA,Goenka Diamond&Jewels Ltd,SUN FINLEASE GUJARAT LTD,SELL,206880,115.25,-
19-APR-2010,GOLDINFRA,Goldstone Infratech Ltd.,AJAY ASSET MANAGEMENT PRIVATE LIMITED,SELL,296778,32.53,-
19-APR-2010,KALECONSUL,Kale Consultants Limited,MANISH VRAJLAL SARVAIYA,SELL,80519,103.05,-
19-APR-2010,MSKPROJ,MSK Projects (India) Limi,BRIJWASI SECURITIES PVT LTD,SELL,135887,166.30,-
19-APR-2010,SHRENUJ,Shrenuj & Co. Ltd-Depo,JOHN FOWLER (INDIA) PVT LTD,SELL,500000,49.00,-
19-APR-2010,SPICEMOBIL,Spice Mobiles Limited,SURENDRA NARAINDAS SAJNANI,SELL,48209,52.50,-
19-APR-2010,ZEENEWS,Zee News Limited,TRANSGLOBAL SECURITIES LTD.,SELL,1740134,17.83,-
Market extends losses for the fifth day
The key benchmark indices declined for the fifth straight day as charges of fraud against US investment bank Goldman Sachs rattled global stocks. The BSE 30-share Sensex was provisionally down 191.66 points or 1.09%, up close to 125 points from the day's low and off close to 185 points from the day's high. All the sectoral indices on the BSE were in the red. The market breadth was weak.
Banking stocks recovered from initial losses on the eve of a monetary policy review by the Reserve Bank of India on Tuesday, 20 April 2010. Metal stocks fell on a decline in metal prices on the London Metal Exchange on Friday, 16 April 2010. Realty, FMCG and IT stocks, also fell.
Stocks were choppy. The market slumped in early trade on news the Securities and Exchange Commission (SEC) had filed civil-fraud charges against US investment bank Goldman Sachs. The market pared losses later. But, the intraday recovery proved short-lived. The market slumped to a fresh intraday low in mid-morning trade. The market extended losses in early afternoon trade. The market staged a strong rebound in afternoon trade after hitting a fresh intraday low. The market weakened again in mid-afternoon trade.
European shares fell on Monday, 19 April 2010, with banks extending Friday's declines when the US Securities and Exchange Commission said it was charging Goldman Sachs with fraud. Key benchmark indices in UK, France and Germany declined by 0.4% to 0.57%.
Asian stocks fell on Monday dragging the MSCI Asia Pacific index down by the most in two months on concern a US suit against Goldman Sachs Group Inc. signals increasing regulatory scrutiny on financial companies. The key benchmark indices in Hong Kong, Japan, South Korea, Singapore, Indonesia and Taiwan fell by between 1.33% to 3.17%.
Property and banking stocks led losses in Chinese equities on reports the government has asked banks to stop loans for third-home purchases in its latest measure to cool property prices. The Shanghai Composite slumped 4.79%, its biggest percentage fall in a single trading session in 2010.
Trading in US index futures indicated that the Dow could fall 55 points at the opening bell on Monday, 19 April 2010.
US stocks snapped six-day winning streak with a sell-off on Friday 16 April 2010 after Goldman Sachs was charged with fraud by US regulators and corporate earnings fell short of heightened expectations. The Dow Jones industrial average was down 125.91 points, or 1.13%, at 11,018.66. The Standard & Poor's 500 Index was down 19.54 points, or 1.61%, at 1,192.13. The Nasdaq Composite Index was down 34.43 points, or 1.37%, at 2,481.26.
Goldman Sachs stock fell nearly 13% on Friday after the Securities and Exchange Commission alleged it committed fraud in the structuring and marketing of a debt product tied to subprime mortgages, which cost investors more than $1 billion. However, the financial services giant said the charges were completely unfounded in law and fact.
Meanwhile, US Treasury Secretary Timothy Geithner on Sunday expressed confidence that lawmakers will pass a financial reform overhaul plan.
Closer home, fourth quarter earnings of India Inc are major near term trigger for the market. This is because the Q4 March 2010 results and management commentary on outlook could result in revision in earnings estimates of India Inc by analysts for the year ending March 2011 (FY 2011). IT heavyweight Tata Consultancy Services and motorbike maker Hero Honda Motors will announce their fourth quarter result today.
Expectations of good fourth quarter result by India Inc and heavy foreign fund inflows boosted the domestic bourses in recent weeks with the key benchmark indices surging to their highest level in more than 25 months on 7 April 2010. The market witnessed a correction later.
The combined net profit of a total of 59 companies declined 11.1% to Rs 2492 crore on 28% rise in net sales to Rs 23081 crore in the quarter ended March 2010 over the quarter ended March 2009.
Meanwhile, the Reserve Bank of India is seen raising key short term interest rates by 25 to 50 basis points at a policy review on Tuesday, 20 April 2010. The central bank is also expected to raise the cash reserve ratio to suck out excess liquidity from the banking system.
The latest data showed the wholesale prices rose 9.9% in March 2010 from a year earlier and a tad higher than February's annual rate of 9.89%. Rising inflation remains a key cause for concern. A sharp surge in interest rates may adversely impact private investment demand as well as the proposed large scale investment in the infrastructure sector.
The double-digit annual growth in industrial output for the fifth straight month in February 2010 underlined the strength of the economic recovery. Data on 12 April 2010, showed the industrial output rose 15.1% in February from a year earlier, less than a rise of 16.7% in January.
The RBI had raised the cash reserve ratio (CRR) for banks by a more-than-expected 75 basis points in January 2010 and followed it with a between-meeting surprise 25 basis point increase in the key repo and reverse repo rates in March 2010.
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, had said on 18 March 2010.
Meanwhile, it remains to be seen if and to what extent the recent controversy with regard to unit linked insurance plans (Ulips) negatively impacts inflows into Ulips which are a major source of inflows into equities. Ulips are products similar to mutual funds with an added life cover. A large chunk of funds raised through Ulips are invested in equities.
The stock market regulator Securities & Exchange Board of India (Sebi) has reportedly moved the Supreme Court and some high courts to guard against any ex parte decision after insurance regulator Insurance Regulatory and Development Authority of India (IRDA)'s decision to challenge Sebi's ban on unit-linked insurance products (Ulips). On 9 April 2010, Sebi had banned 14 life insurance companies from raising funds through Ulips without its approval.
IRDA, on the other hand, asked insurers to ignore the Sebi ban. On Tuesday, Sebi came out with a second order that exempted existing Ulips from the ban, but said its nod was must for issuing new Ulips issued after 9 April 2009.
According to IRDA, a total of 16.7 lakh Ulip policies, with a premium of Rs 44611 crore, were sold from 1 April 2009 to 28 February 2010. A total of 7.03 crore Ulip polices involving a total premium of Rs 90645 crore were in force in 2008-09.
The BSE 30-share Sensex was down 191.66 points or 1.09% to 17,399.52 as per provisional figures. The index fell 314.38 points at the day's low of 17,276.80 in afternoon trade. The Sensex fell 6.32 points at the day's high of 17,584.86 in early trade.
The S&P CNX Nifty was down 61 points or 1.16% to 5201.60, as per provisional figures.
The BSE Mid-Cap index fell 0.99% and the BSE Small-Cap index fell 1.48%.
BSE clocked turnover of Rs 3954 crore, lower than Rs 4476.66 crore on Friday, 16 April 2010.
The market breadth, indicating the overall health of the market was weak. On BSE, 1983 shares declined as compared with 908 that advanced. A total of 127 shares remained unchanged.
From the 30 share Sensex pack 26 stocks declined and the rest rose.
Metal stocks fell after LMEX, a gauge of six metals traded on the London Metal Exchange, slumped 2.1% on Friday, 16 April 2010. Steel Authority of India, Sterlite Industries, National Aluminum Company and Hindustan Zinc fell by between 0.72% to 2.92%.
India's largest private sector steel maker by sales Tata Steel fell 3.57%. The company said recently its sales for the fiscal year ended on 31 March 2010 rose 18% from a year ago to 6.17 million tonnes
Index heavyweight Reliance Industries (RIL) was down 2.09% to Rs 1060.70, with the scrip sliding for the third straight day. The stock came off the day's low of Rs 1052.20 in choppy trade. RIL on Friday 16 April 2010 said it will provide growth capital to logistics firm Deccan 360. The investment would be done through a wholly owned subsidiary. Deccan 360 is a cargo service headed by Captain Gopinath.
RIL on 9 April 2010 said the company will pay $1.7 billion to form a joint venture at one of the most promising natural gas deposit regions in the US with Atlas Energy, becoming the latest foreign company to invest in shale plays that are expected to be very lucrative. The firm will pick up a 40% stake in Atlas's operations in the booming Marcellus Shale, a gas project that spans parts of Pennsylvania, West Virginia and New York in the United States and which, according to some geologists, could hold enough natural gas to satisfy US demand for a decade.
FMCG stocks fell on profit taking. ITC, United Spirits and Hindustan Unilever fell by between 0.42% to 1.76%
Realty stocks fell on fears the Reserve Bank of India (RBI) will raise provisioning requirements for real estate loans at its monetary policy review on 20 April 2010. Most of the property sales are driven by borrowed funds. Phoenix Mills, Ackruti City, Parsvnath Developers, Unitech, Anant Raj Industries, Indiabulls Real Estate, HDIL and DLF, fell by between 0.82% to 5.81%.
India's second largest software exporter by sales Infosys Technologies fell 1.22%, with the stock sliding for the second straight day after hitting a record high of Rs 2,823.80 on Thursday 15 April 2010. The stock had jumped 3.69% on Tuesday, 13 April 2010, after the IT bellwether projected a 16% to 18% growth in revenue in dollar terms at between at between $5.57 billion to $5.67 billion for the current year.
Among other IT pivotals, India's third largest software services exporter by sales Wipro fell 2.65%. India's largest software services exporter by sales Tata Consultancy Services fell 0.23%, reversing early gains ahead of its Q4 result today, 19 April 2010.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) was flat at Rs 1572. The stock came off the day's low of Rs 1550. The company recently received an order worth Rs 1,060 crore from Gujarat State Petroleum Corporation (GSPC) to build an offshore oil platform.
Bharti Airtel, India's largest mobile operator by sales, rose 0.8%. The company added 30 lakh mobile subscribers in March 2010, and took its total subscribers to 12.76 crore. India's second largest mobile operator by sales Reliance Communications fell 1.3%.
Banking stocks recovered from initial losses. India's largest bank by net profit and branch network State Bank of India fell 0.83% to Rs 2029.80, with the stock sliding for the third straight day. Nonetheless stock came off the day's low of Rs 2015. Chairman O.P. Bhatt said recently that 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.
Among other PSU banks, Bank of India and Punjab National Bank, fell by between 0.01% to 1.22%. But, Bank of Baroda rose 1.39%.
India's largest private sector bank by net profit ICICI Bank was flat at Rs 922. The stock came off the day's low of Rs 903.90. India's second largest private sector bank by net profit HDFC Bank was down 1.38%.
India's largest mortgage finance firm by total income Housing Development Finance Corporation (HDFC) rose 0.19% to Rs 2683. The stock came off the day's low of Rs 2620.55. The company, last week, launched a Dual Rate Product-2 (DRHL-2) in which home loan interest rates will be fixed rate at 8.25% annually up to 31 March 2011, 9% for the period between 1 April 2011 and 31 March 2012, and the applicable floating rate for the balance term. The offer is for loan application made before 30 April 2010 and at least part-disbursement taken before 30 June 2010.
The Reserve Bank of India said recently banks would determine their lending rates with reference to the base rate, effective 1 July 2010. To stabilise the system of base rate calculation, banks are allowed to change the benchmark and methodology anytime
Godrej Consumer Products rose 0.91% on reports the company is eyeing buyout of the Argentina-based hair colour products firm Issue Group Co.
Grey Market Premiums - Apr 19 2010
| Talwalkars Better Value Fitness Ltd. | 123 to 128 | Discount |
| Sutlaj Jal Vidhut Nigam (SJVNL) | -- | 2.50 to 3 |
ITD Cementation India
Investors with medium-term perspective can consider purchasing the stock of ITD Cementation India (Rs 234.1). The stock, which hit a bottom, in March 2009, has been on an intermediate-term uptrend forming higher peaks and troughs.
While trending upwards, the stock penetrated key resistance at Rs 135 and Rs 180 in last May and December respectively. These levels later turned into significant supports and subsequently provided support for the stock.
The sideways consolidation between Rs 180 and Rs 245 since January appears positive for the stock. The stock's recent rally from the lower boundary of this range was accompanied by strong volumes. It is currently trading well above its 21, 50 and 200-day moving averages. The stock is currently testing the upper boundary of its consolidation range. Some volatility can be expected around this resistance.
The daily moving average convergence and divergence indicator as well as daily relative strength index are featuring in the bullish zone. The weekly RSI has emerged out of neutral region and entered in to the bullish zone, signalling signs of optimism. Moreover, the weekly MACD has crossed over implying a buy signal.
We are bullish on the stock from a medium-term perspective. We believe that it has the potential of breaching the upper boundary and trending higher to our price target of Rs 275 in the medium-term. Investors with medium-term horizon can consider utilising declines to buy the stock with stop-loss at Rs 210.
Follow up- Elecon Engineering (Rs 79.7)
Following a positive start last week, the stock started to decline, experiencing selling interest and it slipped 2.2 per cent from our recommended level. However, the stock is hovering above our short-term stop-loss. We re-affirm our medium as well as short-term bullish outlook on the stock. Investors can buy with the targets and stop-loss mentioned in our previous column.
via BL
Goldman Sachs news batters Wall Street
End of winning streak for US stocks after six consecutive days
Despite nervousness once again entering Wall Street on Friday, 16 April 2010, US stocks registered gains for seventh straight week that ended on that day. Earning reports dominated the week with quite a few companies reporting their first quarter earnings and easily beating estimates. Economic reports that checked in were also mixed in nature. But the last day of the week witnessed selling pressure with Goldman Sachs reportedly coming under scrutiny for fraud.
For the week, that ended on Friday, 16 April, 2010, Dow ended higher by 21.31 points (0.2%) at 11,018.66. Nasdaq ended higher by 27.21 points (1.1%) at 2481.26. S&P 500 witnessed marginal losses shedding 2.24 points (0.2%) at 1192.13.
The major averages began the week on a positive note and gained from Monday through Thursday. The Nasdaq outperformed thanks to strength in large-cap tech names following better-than-expected earnings results from Intel. Intel rose 6.1% this week. Google also reported earnings that were ahead of estimates.
Several influential companies reported earnings this week, with most besting bottom line estimates. Alcoa marked the unofficial start to first quarter earnings reporting season Monday evening. The Dow component reported in-line earnings of $0.10 per share, though its revenue came up short.
Among banks, JPMorgan Chase and Bank of America both topped expectations. ,
General Electric beat on the bottom line, but shares still fell after its report as the company's top line results failed to live up to expectations. In other corporate news, UPS raised its first quarter and fiscal year guidance on better-than-expected business conditions.
The economic reports during the week were mixed in nature. On the positive side, March CPI showed inflation remained muted, with CPI increasing 0.1% on a m-o-m basis and core CPI coming unchanged. March retail sale rose 1.6% on a m-o-m basis topping the 1.2% consensus, with gains in all categories except electronic and appliance stores, and gas stations.
On the downside, initial unemployment claims rose 24,000 to 484,000, missing the consensus estimate of 440,000. Industrial production in March increased a much smaller-than-expected 0.1% (consensus +0.7%).
On Friday, 16 April, 2010, stocks suffered their worst percentage loss in two months following news that the Securities Exchange Commission (SEC) has levied a charge against Goldman Sachs.
On that day, the Dow Jones Industrial Average ended lower by 125.91 points at 11,018.16. Nasdaq ended lower by 34.43 points at 2481.26. S&P 500 ended lower by 19.54 points at 1192.13. Seven of ten economic sectors ended in the red led by financials, materials, and industrial sectors. Better than expected housing sector report and earning reports failed to make market reverse its course.
Wall Street was stunned on Friday after news hit the wires that the U.S. Securities and Exchange Commission has filed a civil suit accusing Goldman Sachs and one of its vice presidents of defrauding investors in connection with a mortgage derivative. The fraud is related to subprime securities. Goldman Sachs saw some $12 billion, or 13%, of its market cap evaporate. Concern that other investment banks and brokerages may be implicated led the financial sector tumble.
Among economic reports for the day, the Commerce Department in US reported on Friday, 16 April 2010 that housing starts in US rose 1.6% in March to a seasonally adjusted 626,000 annualized units. The figure was stronger than the 610,000 expected. In addition, February starts were revised higher to 616,000 from the 570,000 previously reported. This was up 1.1% from the prior month. The initial estimate had been a 5.9% drop. As a result of the revisions, starts have risen for three straight months and are now at their highest level since November 2008.
Also, the preliminary Consumer Sentiment Survey for April from the University of Michigan came in at 69.5, which was not only below the 75.0 that had been widely expected, but it was also the worst reading since November.
All commodities tumbled on Friday. Crude oil prices ended substantially lower on Friday, 16 April 2010. The strong dollar added further woes. Mixed batch of economic data also affected crude prices. The dollar index rose by 0.4% on Friday.
On Friday, crude-oil futures for light sweet crude for June delivery closed at $84.67/barrel (lower by $2.08 or 2.3%). For the week, crude ended lower by 1.2%. Year to date, crude is higher by 5.4%.
On Friday, gold for June delivery ended at $1,136.9 an ounce, lower by $23.4 (2%) an ounce on the New York Mercantile Exchange. For the week, gold ended lower by 2.5%. On a year to date basis, gold is higher by 3.8%. On Friday, May Comex silver futures ended lower by 76 cents (4.2%) at $17.67 an ounce. For the week, silver lost 3.7%. On a year to date basis, silver is higher by 4%.
Barring Rediff.com, all Indian ADRs ended in the red on Friday. ICICI Bank, Tata Motors, Dr Reddy's and Wipro Technologies – all shed almost 2.6%. Rediff.com climbed up by 2.1%.
For the year, Dow, Nasdaq and S&P 500 are higher by 5.7%, 9.3% and 6.9% respectively.
Looking ahead to next week, the first quarter earnings season will take the centre stage.
Market to start weak;Hero Honda,TCS results eyed
Headlines for the day:
RBI to talk tough on teaser rates
Unitech floats Rs300 crore Mumbai redevelopment fund
Videocon aims to double Pipavav plant capacity to 2400MW
Events for the day:
Major corporate action
Ex-date for dividend of Atlas Copco
Results: Hero Honda, Sesa Goa, TCS
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares fell sharply on Friday, led lower by banking stocks, after investment bank Goldman Sachs was charged with fraud by the US Securities and Exchange Commission.
In the US markets, the financial stocks plunged on Friday in the heaviest trading this year, dramatically ending Wall Street's six-day winning streak as fraud charges against Goldman Sachs and disappointing earnings sent investors running for cover.
In today's trade, the Asian markets were trading on a negative note. At the time of writing this report, SGX Nifty was trading 76 points lower.
Indian markets
All is red for the Asian indices, which are down by over 1% each for the first trading session of this week. Even the US and European markets closed in the negative zone with over 1% losses on Friday. Further, we have the Reserve Bank of India (RBIs)' monetary policy announcement slated for tomorrow (April 20, 2010), wherein the market participants are expecting rate hike on the back of higher and uncomfortable levels of inflation. All this may result in the weak opening for the Sensex, this morning. Though, the on going March quarter earnings announcements may bring some respite for the markets. With major companies like the Hero Honda, Tata Consultancy Services (TCS) and Sesa Goa announcing its results today - the stocks will be in a focus.
Commodity cues
In the commodity space, the crude oil prices reported loss, with the Nymex light crude oil for the May series declined by $2.27 per barrel, whereas in the metals space, the Comex Gold for the May series down by $23.40 and the Comex Silver for the May series was declined by $0.75 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 16, 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs343.10 crore, whereas the domestic mutual funds, on April 09, 2010, were the net sellers of the stocks to the tune of Rs257.90 crore.
Daily News Roundup - Apr 19 2010
HDFC has revived its teaser home loan rates for two weeks to protect market share. (ET)
L&T to make industrial tyres with Mitsubishi. (ET)
ONGC says that it will not be economically viable to produce gas from its Krishna-Godavari basin block at current sale price of US$4.2/mmBtu. (ET)
SAIL is in talks with Posco and Kobe Steel for technology tie-ups for jointly setting-up steel plants. (ET)
IOC may see revenue loss on fuel sales jump 63% in FY10. (BS)
Bank of India has cut interest rates on its bulk deposits by up to 1.25% across various tenures with immediate effect. (ET)
Tata Motors global sales grow 39% in March. (BS)
Ranbaxy has voluntarily recalled two consignments of one of its antibiotics from US market. (BL)
UBI to raise upto US$500mn through a maiden MTN programme. (BL)
Japan’s JFE is in advanced talks to buy a small stake in JSW Steel. (ET)
Jet Airways seeks more FSI for BKC plot, eyes lease income. (ET)
Triveni Engineering has formed a JV with GE to make and sale steam turbines for small power generation projects. (ET)
Aurobindo Pharma has received final approval for Ondansetron orally disintegrating tablets from US FDA. (BL)
Pipavav Shipyard is in talks to buy an oil rig and shipping company in West Europe. (ET)
Glodyne close to buying a US company for Rs5bn. (ET)
Areva T&D has won three turnkey project orders worth Rs630mn. (BL)
WPI inflation for the month of March stood at 9.9%. (BS)
Domestic air traffic climbs 23% yoy in March 2010. (ET)
CMI pegs FY10 growth at 7.1% and FY11 growth at 9.2%. (ET)
One link at a time
It is a mistake to try to look too far ahead. The chain of destiny can only be grasped one link at a time - Winston Churchill.
The weak link for the market appears to be fears of an adverse outcome of the RBI’s annual policy meet next week. Meanwhile, India’s quest to break into the elite global space club will be delayed. In a rare failure, ISRO’s indigenously made rocket (GSLV-D3) crashed soon after take off on Thursday.
Even the bulls will have to wait for better links before they see the NSE Nifty cross 5400. A sudden bout of selling pulled the market down despite inflation being steady. What is more disturbing is that fund flows have started to taper off. Even the FIIs, who till recently were pouring money at a steady pace have turned a bit cautious.
Its still early days as far as results are concerned. So, the volatility will prevail for a while amid a mix bag of earnings. In any case, the market seems to be looking far ahead at FY12 numbers. Today we see a sluggish opening and another choppy session. A rebound cannot be ruled out after Thursday’s selloff.
US stocks closed higher for a sixth straight session at fresh 2010 highs, bolstered by upbeat economic reports and a strong forecast from UPS. Shares of Google fell in extended trading despite reporting earnings that beat Wall Street estimates. European stocks closed at an 18-month high.
However, Japanese stocks fell for the first time in three days as jobless claims by Americans unexpectedly increased and China announced measures to cool its real-estate market. Hong Kong shares declined, tracking weakness in Shanghai stocks, as Chinese property and banking stocks fell after Beijing tightened policies toward the residential property market.
Results Today: CRISIL, DCB, IndusInd Bank and Stone India.
FIIs were net buyers of just Rs997mn on Thursday on a provisional basis. Local funds were net sellers at Rs768.7mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers of Rs3.91bn. On Tuesday, FIIs were net buyers of Rs6.08bn in the cash segment, as per the SEBI web site.
Shares of JSW Steel will be in focus amid reports that Japan’s JFE is in advanced talks to buy a small stake in the company. Glodyne Technoserve might also gain from reports that it is close to buying a US company for Rs5bn. Airlines could also be in the spotlight as domestic air traffic climbed 23% yoy in March 2010. But, Oil PSUs are set to hike ATF prices again.
US stocks ended up for a sixth consecutive session on Thursday after a volatile session, as investors ignored the latest jobless claims report and Google reported much better-than-expected earnings after the closing bell.
The Dow Jones Industrial Average added 21 points, or 0.2%, to close at 11,144.57. The S&P 500 index ended nearly flat at 1,211.67. The Nasdaq Composite was up 11 points, or 0.4%, to end at 2,515.69.
The industrials sector led the gains the most, while consumer staples fell the most among the index's 10 industry groups.
The dollar was up versus the euro, but it fell against the British pound and Japanese yen.
The price of oil dipped 34 cents to settle at $85.50 a barrel.
Gold prices added 70 cents to settle at $1,159.70 an ounce.
Prices for US Treasurys rose, with the yield on the 10-year note at 3.85%.
Stocks opened weak earlier in the session after the jobless claims report, which showed a surprise surge for the second week in a row. But the Labor Department attributed the jump to "technical" issues, including the Easter holiday.
The major indexes meandered in and out of positive territory during the session, but pushed to afternoon highs in the wake of an industry survey finding increased optimism among US home builders in April.
Stocks had soared on Wednesday on strong earnings and retail sales. The Dow and the S&P 500 both rose to their highest levels in more than 18 months, while the Nasdaq topped the 2,500 mark for the first time since June 2008.
Labor Department's weekly jobless claims report said there were 484,000 new claims filed last week, up 24,000 from the previous week. That was the highest level since the week ended Feb. 20 - a disappointment to economists, who had expected new claims to fall to 440,000.
Separately, government figures showed that capacity utilization increased to 73.2% in March from 72.7% the previous month, slightly missing analysts' expectations of a jump to 73.3%.
The Philadelphia Federal Reserve's regional manufacturing index jumped to 20.2 in April from 18.9 the previous month. Economists expected a reading of 20.
The New York Federal Reserve's manufacturing index also improved, climbing to 31.9 in April from 22.9 in March.
A report from RealtyTrac said there were more than 930,000 foreclosure filings in the first quarter of 2010, up 7% from the previous quarter and a whopping 16% jump from the year-earlier quarter.
A report from China's National Statistics Bureau showed the nation's economy surged nearly 12% during the first quarter compared with a year earlier. China's GDP was up 1.2% from the fourth quarter of 2009. The report fueled worries of tighter monetary policy.
After the closing bell, Google reported quarterly sales and profit that trumped expectations. The search giant's net income was $1.96 billion, or $6.06 per share, in the first quarter, up 38% $1.42 billion from the same period last year.
Analysts expected only $6.60 per share. Google shares rose 1% in after-hours trade.
UPS pre-reported its quarterly results late on Wednesday. The parcel delivery service said earnings per share jumped 33% to 53 cents, compared to 40 cents in the first quarter of last year. Shares rose 5.2%.
Toyota said it is conducting safety tests on all of its sport utility vehicles after suspending worldwide sales of its Lexus GX 460 over rollover concerns.
After the bell, news reports said the Securities and Exchange Commission is investigating whether Hewlett-Packard executives paid nearly $11 million in bribes to secure a contract from a Russian official's office. Shares of HP fell 27 cents, or 0.5%, $54.25 in after-hours trade.
European stocks closed up, boosted by further improvement in the global economic backdrop and a strong rise in sales by Swiss drug giant Roche. The Stoxx Europe 600 index rose 0.6% to finish at 272.14, its highest close since Sept. 23, 2008.
The UK's FTSE 100 index gained 0.5% to close at 5,825.01, the French CAC-40 index advanced 0.2% to 4,065.65 and the German DAX index ended 0.2% higher at 6,291.45. Greek stocks advanced, with the ASE Composite Index rising 2.1% to close at 2,028.55.
The euro lost ground against major rivals.
Speculation has intensified that Greece will have to take up an IMF/European aid package. Greek bond yields spiked. Later this month, Athens plans to hold a sale of US-dollar-denominated bonds, and there are concerns that demand could be smaller than anticipated.
The markets are still worries that Greece will require more aid to stave off a possible default. Earlier this week, European Union officials announced a plan to provide an additional $40 billion in low-cost loans for the debt-stricken nation. The IMF agreed to step in with another $13.5 billion.
European miners and metal futures traded broadly lower after the Chinese GDP data.
Unlike the US market, where the S&P 500 and the Nasdaq crossed key psychological milestones, the BSE Sensex and the NSE Nifty actually slid by 1% each. The key indices finished with a whimper after a smart opening despite inflation staying static in March. Selling intensified post 2 pm as European markets gave up early gains.
The benchmark indices gradually lost ground on the back of selling in the index heavyweights like Reliance Industries, ICICI Bank and L&T. Not all was gloomy in today’s trade as the small-cap and mid-cap indices escaped a sharper selloff. In terms of sectors, Real Estate, IT and Pharma indexes stood out as they bucked the negative trend. On the other hand, Oil & Gas, Banking and Capital Goods indices bore the brunt of the fall.
The Sensex lost over 330 points and the Nifty shed over 100 points from their respective intra-day highs. "Market players turned cautious ahead of the RBI monitory policy scheduled on April 20. The central bank is widely expected to raise key short-term policy rates to rein in stubbornly high inflation", says Amar Ambani VP Research IIFL.
The BSE Sensex fell 183 points to end at 17,639 and NSE Nifty lost 49 points to close at 5,274. Among the 30 components of Sensex, 19 ended in the negative terrain and 11 were in the green.
Markets in Asia ended in the green; the Nikkei in Japan was up 0.6%, Australia's S&P/ASX edged higher by 0.2%. Shanghai SE Composite ended lower by 0.5% and Hang Seng index in Hong Kong was up 0.2%.
On the other hand, European indices were trading with a slight negative bias, the DAX in Germany was down 0.3%, the CAC 40 index in France was down 0.3% and the FTSE in the UK was down 0.2%.
Coming back to India, among the BSE sectoral indices, the BSE Oil & Gas index was top loser, the index lost 1.8%, followed by BSE Banking index down 1.5% and Capital Goods index down 1.4%.
Among the top gainers were, BSE Realty index up 1.5% and BSE Consumer Durables index up 0.7%.
Outside the frontline indices, the big losers in the broader market were Max India, LIC Housing Fin, BOB and GVK Power. On the other hand, gainers included Apollo Hosp, JP Hydro, Titan Ind and Castrol.
Shares of ABB erased early gains and ended at Rs832 losing 0.8%. The stock hit an intra-day high of Rs852 after the company won an order worth Rs630mn from Haryana Vidyut Prasaran Nigam Ltd. to build a 400 kV (kilovolt) substation that will facilitate the transmission of electricity from new power generation plants being constructed in the region. The order was booked in the first quarter.
Shares of IVRCL Assets & Holdings gained by 1.7% to end at Rs180 after the company announced that the board of directors declared bonus shares in the ratio of 1:2.
The board also approved raising of equity funds to the extent of Rs10bn by way of QIP in one or more tranches.
Shares of Zee News plunged over 75% to end at Rs18. Zee News had approved the Scheme of Arrangement whereby the Regional General Entertainment Channel (GEC) business of the company would be de-merged and transferred to Zee Entertainment Enterprises with effect from January 1, 2010 (appointed date).
April 16 was fixed as the Record Date for determination of members of the company who would become eligible for issuance of equity shares by Zee Entertainment Enterprises.
Triveni Engineering announced that the company has signed a joint venture with GE Oil & Gas, through one if its affiliates (GE Pacific Mauritius Ltd.) to design, manufacture, supply, sell and service advanced technology steam turbines in India in the above 30 to 100MW-range for power generation applications in the Indian and worldwide markets. Triveni will hold one extra share with both parties having equal representation on the Board.
Shares of Triveni Engineering gained 1% to end at Rs131. The stock opened at Rs132. It hit an intra-day high of Rs135 and an intra-day low of Rs130. Total traded quantity was 0.43mn on NSE.
Tata Sons Ltd, the largest Differential Voting Rights (DVR) shareholder in Tata Motors are planning to cut stake in the company further by selling shares that have less voting rights than common shares.
Tata Sons had reduced its stake to 54% from 73% in 2009 and is further planning to cut it in an attempt for better pricing for the DVR, which is currently quoting at an almost 30% discount.
Tata Sons plans to sell the shares in the open market through an auction and has also reportedly appointed Tata Capital for the transaction.
On Tuesday, in bulk deal on the exchanges, Tata Sons sold ~1.6mn shares. HDFC MF bought ~1.05mn shares at an average rice of Rs485 per DVR.
The BSE IT index surged to record high and rose to its highest level since February 2007 after heavyweight Infosys came out with its results beating street estimates.
On the other hand, shares of Infosys gained 0.5% to end at Rs2801. The scrip opened at Rs2799 it touched an intra-day high of Rs2823 and a low of Rs2760 and recorded volumes of over 0.47mn shares on BSE.
Finally the BSE IT index ended at 5526 level rising nearly 0.4%, the index pared losses in the second half on account of profit booking.
Big drop for precious metals
Silver becomes worst affected as Goldman Sachs comes under scrutiny
Precious metal prices ended substantially lower on Friday, 16 April 2010. Negative news regarding Goldman Sachs rocked Wall Street on Friday. All commodities tumbled with silver being the most affected. The strong dollar added further woes.
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 Friday, gold for June delivery ended at $1,136.9 an ounce, lower by $23.4 (2%) an ounce on the New York Mercantile Exchange. For the week, gold ended lower by 2.5%. 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 3.8%.
On Friday, May Comex silver futures ended lower by 76 cents (4.2%) at $17.67 an ounce. For the week, silver lost 3.7%. 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 4%.
Wall Street was stunned on Friday after news hit the wires that the U.S. Securities and Exchange Commission has filed a civil suit accusing Goldman Sachs and one of its vice presidents of defrauding investors in connection with a mortgage derivative. As per reports, a key focus of these worries may be Paulson & Co., which is enmeshed in a SEC lawsuit against Goldman Sachs but hasn't been charged. The hedge fund giant is one of the world's biggest investors in gold. If Paulson investors try to redeem from the firm's hedge funds, the firm might be forced to unwind some of its gold positions, pressuring prices.
Among economic reports for the day, the Commerce Department in US reported on Friday, 16 April 2010 that housing starts in US rose 1.6% in March to a seasonally adjusted 626,000 annualized units. The figure was stronger than the 610,000 expected. In addition, February starts were revised higher to 616,000 from the 570,000 previously reported. This was up 1.1% from the prior month. The initial estimate had been a 5.9% drop. As a result of the revisions, starts have risen for three straight months and are now at their highest level since November 2008.
Also, the preliminary Consumer Sentiment Survey for April from the University of Michigan came in at 69.5, which was not only below the 75.0 that had been widely expected, but it was also the worst reading since November.
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.
Crude tumbles along with other commodities
Prices drop more than 1% for the week
Crude oil prices ended substantially lower on Friday, 16 April 2010. Negative news regarding Goldman Sachs rocked Wall Street on Friday. All commodities tumbled on Friday. The strong dollar added further woes. Mixed batch of economic data also affected crude prices.
On Friday, crude-oil futures for light sweet crude for June delivery closed at $84.67/barrel (lower by $2.08 or 2.3%). For the week, crude ended lower by 1.2%. 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 5.4%.
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 155% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40. s
Wall Street was stunned on Friday after news hit the wires that the U.S. Securities and Exchange Commission has filed a civil suit accusing Goldman Sachs and one of its vice presidents of defrauding investors in connection with a mortgage derivative. As per reports, a key focus of these worries may be Paulson & Co., which is enmeshed in a SEC lawsuit against Goldman Sachs but hasn't been charged. The hedge fund giant is one of the world's biggest investors in gold. If Paulson investors try to redeem from the firm's hedge funds, the firm might be forced to unwind some of its gold positions, pressuring prices.
Among economic reports for the day, the Commerce Department in US reported on Friday, 16 April 2010 that housing starts in US rose 1.6% in March to a seasonally adjusted 626,000 annualized units. The figure was stronger than the 610,000 expected. In addition, February starts were revised higher to 616,000 from the 570,000 previously reported. This was up 1.1% from the prior month. The initial estimate had been a 5.9% drop. As a result of the revisions, starts have risen for three straight months and are now at their highest level since November 2008.
Also, the preliminary Consumer Sentiment Survey for April from the University of Michigan came in at 69.5, which was not only below the 75.0 that had been widely expected, but it was also the worst reading since November.
The EIA reported earlier during the week an unexpected decrease in crude stockpiles for week ended 9 April. The EIA data showed supplies decreased by 2.2 million barrels in the week. The EIA's latest weekly data also showed total motor gasoline inventories decreased by 1.1 million barrels, while distillates, which include heating oil and diesel, increased by 1.1 million barrels.
Market was expecting weekly inventory report to show that crude stockpiles will increase by 1.6 million barrels, while gasoline stocks will be down by 1.26 million barrels for last week. Distillates stocks, which include heating oil and diesel, were expected to be up by 1 million barrels.
In the latest monthly report, the Organization of the Petroleum Exporting Countries on Wednesday left unchanged its forecast for global oil demand in 2010. Consumption is projected to increase by 900,000 barrels a day this year, the oil cartel said in its monthly report.
On Friday, gasoline for June delivery lost 5 cents, or 2.1%, to $2.2770 a gallon.
Elsewhere, natural gas for May delivery added 5 cents, or 1.36%, to $4.0390 per million British thermal units. The contract dropped 5% on Thursday after the Energy Information Administration reported that natural-gas inventories rose by 87 billion cubic feet for the week ended 9 April, much higher than expected.
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.
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