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Friday, April 23, 2010
Weekly Outlook: Positive trend to continue
``The Nifty day chart shows consecutive tops which signals for the positive trend to continue for the forthcoming sessions. The momentum is seen strong thereby supporting the positive trend. If Nifty is able to break and sustain 5,335 levels supported by good volume, then the next levels would be 5,388-5,400 levels in near term. On downside immediate support is seen at 5,250 levels and break of it would test 5,190 levels in near term, `` said Aditya Birla Money, for the upcoming week`s outlook.
``Beginning of the week the market tumbled on account of Goldman Sachs sues. But the market was able to snap the previous losses supported by in line with expected RBI`s monetary policy. RBI raised key policy rates and CRR by 25 bps each. Moreover firm global market and IMF announcement of India`s growth at 8.50% for the calendar 2011 boosted the sentiments. The banking stocks were among the major gainers of the week on account of announcement of government recapitalization of PSU banks. Further the surprise bonus issue from Wipro supported the market. Overall the market health remained strong by the end of the week. The food price index rose 17.65% in the year to 10 April 2010,`` it said for the past week`s performance.
Daily Market Review - Apr 23 2010
Benchmark indices closed in green for the fourth consecutive day as Sensex as well as Nifty gained two third of a percent today. Sensex closed at 17694, up 120 points while Nifty gained 34 points to finish at 5304. BSE mid-cap and Small-cap indices underperformed for the second day running, gaining 0.3% and 0.5% respectively. Tech major Wipro came out with Q4 results where Net profit rose 0.5% Q-o-Q to Rs. 1209 cr. while revues stood at Rs. 6883 cr. versus Rs. 6977.4 cr. in the quarter ending December. The company also announced bonus of 2 shares for every 3 shares held. Union Cabinet today approved infusion of Rs. 15000 cr. into the public sector banks in FY11, the details of which are likely to be finalized in about 15 days. On weekly basis Sensex and Nifty are up 0.6% and 0.8% respectively. BSE Bankex gained the most among the sectoral indices, up 4.9% followed by Auto index, up 2.4%. Metal and IT indices were the top losers, shedding 3.1% and 2.2% respectively over the week. European markets were trading higher by about three fourth of a percent while US stock indices futures were marginally in the green.
BSE Bankex and Capital Goods indices were the top gainers among the sectoral indices for the day, putting on 1.7% and 1.2% respectively while Metal and Consumer Durable indices lost 0.8% and 0.4% respectively. JP Associate and ICICI Bank were the top gainers among the Nifty stocks, up 4.3% and 3.7% respectively while ABB and Wipro lost the most, shedding 3.4% and 1.9% respectively. BSE advance-decline ratio stood at 1:1.1.
Nifty April 2010 futures above 5,300
Turnover declines
Nifty April 2010 futures were at 5,313 at a premium of 8.90 points compared to spot closing of 5304.10. Turnover in NSE's futures & options (F&O) segment was Rs 1,02,453.29 crore, lower than Rs 1,45,808.60 crore on Thursday, 22 April 2010.
Tata Steel April 2010 futures were at premium at 650 compared to the spot closing of 648.05.
ICICI Bank April 2010 futures were at discount at 976.50 compared to the spot closing of 978.75.
Tata Motors April 2010 futures were at discount at 846 compared to the spot closing of 847.80.
In the cash market, the S&P CNX Nifty rose 34.75 points or 0.66% at 5,304.10.
BSE Bulk Deals to Watch - Apr 23 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
23/4/2010 532989 Bafna Pharma USHA S 100000 43.21
23/4/2010 531591 Bampsl Sec KAUSHALYA GARG B 810000 1.57
23/4/2010 531591 Bampsl Sec PRAKASHCHAND GUPTA B 553000 1.50
23/4/2010 531591 Bampsl Sec PRAKASHCHAND GUPTA S 703341 1.56
23/4/2010 531591 Bampsl Sec CHETANKHANDELWAL S 500000 1.50
23/4/2010 532330 Biopac India DHARMENDRA JAIN B 87312 25.50
23/4/2010 590061 Brushman India SICPA INDIA LTD S 69408 8.61
23/4/2010 500083 Century Extr BHARAT SHANKAR PHAPALE S 557616 12.47
23/4/2010 531337 Channel Guide DARI TEJAS K B 63354 16.34
23/4/2010 531337 Channel Guide SWAPNA ENTERPRISES S 85000 16.35
23/4/2010 533026 Chemcel Bio RAJESH NAVLANI B 200000 10.99
23/4/2010 533026 Chemcel Bio ACME FURNITURE PRIVATE LIMITE B 130000 10.99
23/4/2010 533026 Chemcel Bio REKHA BHANDARI S 200000 10.99
23/4/2010 517973 DMC Intl LALESHWAR KUMAR RAUT B 161703 18.77
23/4/2010 517973 DMC Intl OURS TRADING AND HOLDINGS PRIVATE LIMITED B 145530 18.83
23/4/2010 517973 DMC Intl KAPIL GUPTA B 162028 18.81
23/4/2010 517973 DMC Intl MAHENDER SINGH S 185203 18.77
23/4/2010 517973 DMC Intl OURS TRADING AND HOLDINGS PRIVATE LIMITED S 137099 18.79
23/4/2010 517973 DMC Intl KAPIL GUPTA S 202028 18.57
23/4/2010 590094 FARMAX IND WINNERS SALES PRIVATE LIMITED B 112261 106.96
23/4/2010 590094 FARMAX IND KSIVANAN DABABU S 145000 107.06
23/4/2010 530945 Gangotri Iron MIKHIL SHAH B 66600 55.33
23/4/2010 532770 Hanung Toys AJMERA SHARES TRADING PRIVATE LIMITED B 177942 260.32
23/4/2010 532770 Hanung Toys AJMERA SHARES TRADING PRIVATE LIMITED S 177084 259.55
23/4/2010 505893 Hindustan Hardy BHUPENDRA CHHAGANLAL LALSODAGAR S 11117 98.15
23/4/2010 511682 IFL Promoters OURS TRADING AND HOLDINGS PRIVATE LIMITED B 16173 19.34
23/4/2010 511682 IFL Promoters DMC INTERNATIONAL LTD B 21500 19.35
23/4/2010 511682 IFL Promoters OURS TRADING AND HOLDINGS PRIVATE LIMITED S 16172 19.36
23/4/2010 511682 IFL Promoters DMC INTERNATIONAL LTD S 26500 19.36
23/4/2010 513361 India Steel CRESTA FUND LTD B 8400000 5.46
23/4/2010 513361 India Steel LOTUS GLOBAL INVESTMENTS LIMITED S 8400000 5.46
23/4/2010 590079 JOONKTOLLEE RAHUL DOSHI B 6490 241.15
23/4/2010 590079 JOONKTOLLEE DEVENDRA A VAGHANI B 11422 216.19
23/4/2010 590079 JOONKTOLLEE DEVENDRA A VAGHANI S 11422 217.13
23/4/2010 530985 JPT Securities BP FINTRADE PRIVATE LIMITED B 17038 98.40
23/4/2010 530985 JPT Securities BP FINTRADE PRIVATE LIMITED S 20629 104.26
23/4/2010 519248 JVL Agro Inds MAVERICK INVESTMENT SOLUTION PVT LTD B 79506 150.97
23/4/2010 530955 Kailash Ficom SHINGAR DYES AND CHEMICALS LTD B 60000 39.89
23/4/2010 530955 Kailash Ficom ABHIJAI INVESTMENT S 59863 39.90
23/4/2010 532268 Kale Consl RATNABALI CAPITAL MARKETS LIMITED B 80211 115.62
23/4/2010 530255 KAY Power KAUSHALYA GARG B 66100 17.50
23/4/2010 530255 KAY Power BAMPSL SECURITIES LTD B 163897 16.73
23/4/2010 530255 KAY Power KAUSHALYA GARG S 130000 16.72
23/4/2010 530255 KAY Power BAMPSL SECURITIES LTD S 123567 16.93
23/4/2010 530255 KAY Power SUNILKUMAR GUPTA S 67400 16.71
23/4/2010 530547 KEN Fin Serv SHAHRA UMESH B 20000 113.55
23/4/2010 530547 KEN Fin Serv UMESH SAHARA B 20000 113.55
23/4/2010 530547 KEN Fin Serv DHARAMVEER MOHANLAL REWAR S 20100 113.55
23/4/2010 513693 KIC Metaliks SKYLIGHT SUPPLIERS PRIVATE LIMITED B 50000 99.51
23/4/2010 513693 KIC Metaliks SHYAMA WEALTH MANAGMENT PRIVATE LIMITED B 60000 99.80
23/4/2010 513693 KIC Metaliks CARWIN MERCANTILES PRIVATE LTD S 72573 99.70
23/4/2010 532067 Kilpest India ASHISH SHAH B 50000 17.05
23/4/2010 532067 Kilpest India SUNIL BHANDARI B 38925 17.00
23/4/2010 532067 Kilpest India REKHA BHANDARI B 63411 16.98
23/4/2010 532067 Kilpest India ACME FURNITURE PRIVATE LIMITE B 35000 16.75
23/4/2010 532067 Kilpest India BIMLA BANSAL S 66429 17.04
23/4/2010 532067 Kilpest India BAJAJ KHANIJ UDYOG PRIVATE LIMITED S 100000 17.00
23/4/2010 532067 Kilpest India SNEH GANGWAL S 59740 16.98
23/4/2010 532067 Kilpest India SUNIL BHANDARI S 61721 17.24
23/4/2010 532067 Kilpest India REKHA BHANDARI S 45365 17.02
23/4/2010 532067 Kilpest India ACME FURNITURE PRIVATE LIMITE S 37028 17.00
23/4/2010 530145 Kisan Mouldings J V STOCK BROKING PRIVATE LIMITED B 36261 65.00
23/4/2010 530145 Kisan Mouldings J V STOCK BROKING PRIVATE LIMITED S 36261 64.72
23/4/2010 508306 Ledo Tea VEENASHANTILAL GANDHI B 10000 93.25
23/4/2010 508306 Ledo Tea M. D. BHOOLA & CO B 5179 91.85
23/4/2010 508306 Ledo Tea VEENASHANTILAL GANDHI S 7701 92.31
23/4/2010 508306 Ledo Tea M. D. BHOOLA & CO S 4993 92.26
23/4/2010 502995 Malwa Cotton BP FINTRADE PRIVATE LIMITED B 32999 50.21
23/4/2010 531213 Manappuram Gen WELLINGTON MANAGEMENT COMPANY, LLP A/C BAY POND MB B 659176 740.00
23/4/2010 531213 Manappuram Gen SLOANE ROBINSON LLP A/C SR GLOBAL MAURITIUS LIMITED CLASS G-EMERG B 1374000 740.00
23/4/2010 531213 Manappuram Gen FNIL AC COPTHALL MAURITIUS INVESTMENT LIMITED B 1340479 740.00
23/4/2010 531213 Manappuram Gen SEQUOIA CAPITAL INDIA GROWTH INVETMENTS I S 3964192 740.42
23/4/2010 590111 MASTER DEVAIANH MONDI B 27002 37.75
23/4/2010 590111 MASTER RAMESH KUMAR TUMMAPALA B 43171 37.25
23/4/2010 523828 Menon Bearings ASHOKCHINUBHAI SHAH S 61974 63.83
23/4/2010 531096 Mount Everest Min PARAM SHARE VENTURES PVT LTD B 175000 85.98
23/4/2010 526169 Multibase India HITESHSHASHIKANTJHAVERI B 98261 36.50
23/4/2010 526169 Multibase India HITESHSHASHIKANTJHAVERI S 63124 36.15
23/4/2010 530697 Neelkanth Tech NISHASUBHASH AGARWAL B 25000 31.30
23/4/2010 531496 Omkar Overseas FALGUNIBENMAHAVIR BHAIGOHIL S 30000 74.38
23/4/2010 531496 Omkar Overseas PRAVINKUMAR SHRIPAL JAIN S 25000 74.63
23/4/2010 512097 Oregon Comm SANJAY JETHALAL SONI B 5251 238.36
23/4/2010 512097 Oregon Comm BHAVESH SHANTILAL TRIVEDI B 17030 240.05
23/4/2010 512097 Oregon Comm ANJUDHARMENDRA MADHANI B 10000 240.30
23/4/2010 512097 Oregon Comm KRUPA SANJAY SONI B 4836 242.52
23/4/2010 512097 Oregon Comm ARIF GULAMMUSTUFA SHAIKH B 7073 242.91
23/4/2010 512097 Oregon Comm KRUNAL GOPALDAS RANA S 10848 240.51
23/4/2010 512097 Oregon Comm DHIRENKUMAR DHARAMDAS AGARWAL S 8452 240.07
23/4/2010 512097 Oregon Comm KRUPA SANJAY SONI S 19179 240.94
23/4/2010 512097 Oregon Comm BHAVESH SHANTILAL TRIVEDI S 9621 239.49
23/4/2010 517230 PAE DB (INTL) OWN TRADING S 47846 52.02
23/4/2010 532606 Parekh Alum SMART EQUITY BROKERS PRIVATE LIMITED B 102935 210.91
23/4/2010 532606 Parekh Alum M/S LAXMI CAP BROKING PVT LTD B 85000 206.54
23/4/2010 532606 Parekh Alum SMART EQUITY BROKERS PRIVATE LIMITED S 102935 211.15
23/4/2010 530923 Passari Cellu MEENA RATHI B 50000 47.96
23/4/2010 530923 Passari Cellu RAJESH KUMAR S HUFRAJESH KUMAR S HUFRAJESH KUMAR S HUF S 30000 48.04
23/4/2010 513611 Pithampur Steel VIBHUTI DAS B 25900 27.35
23/4/2010 513611 Pithampur Steel SACHIN SHARMA S 45000 27.35
23/4/2010 504288 Polar Inds ARCADIA SHARE & STOCK BROKERS PVT. LTD B 60000 7.32
23/4/2010 504288 Polar Inds BP FINTRADE PRIVATE LIMITED B 64734 7.18
23/4/2010 504288 Polar Inds BP FINTRADE PRIVATE LIMITED S 100007 7.32
23/4/2010 530047 Rai Saheb Rekh NILU SANJAY PODDAR S 24910 120.00
23/4/2010 517522 Rajratan Global TARUNKUMAR G BRAHMBHATT B 75780 236.69
23/4/2010 517522 Rajratan Global DISHA DHARMENDRA MADHANI B 71738 236.45
23/4/2010 517522 Rajratan Global MEGHAMAHESHKHANDELWAL B 26441 237.33
23/4/2010 517522 Rajratan Global BHAWARLALPUSARAM MAHESHWARI B 29686 237.46
23/4/2010 517522 Rajratan Global TARUNKUMAR G BRAHMBHATT S 69550 234.56
23/4/2010 517522 Rajratan Global DISHA DHARMENDRA MADHANI S 69508 236.63
23/4/2010 517522 Rajratan Global MEGHAMAHESHKHANDELWAL S 26131 237.85
23/4/2010 517522 Rajratan Global BHAWARLALPUSARAM MAHESHWARI S 29386 237.43
23/4/2010 520073 Raunaq Auto DHEERAJKUMAR LOHIA B 64216 22.91
23/4/2010 533083 RISHABHDEV CHIRAG SHASHIKANT TANNA B 179544 10.60
23/4/2010 533083 RISHABHDEV TARA MISHRA B 200000 10.13
23/4/2010 533083 RISHABHDEV SAAKSHI SHARES PVT LTD B 230400 10.25
23/4/2010 533083 RISHABHDEV BHAVISHDHIRAJLALKHAKHKHAR B 357209 10.47
23/4/2010 533083 RISHABHDEV SAFFRON FINANCE LIMITED B 173599 10.07
23/4/2010 533083 RISHABHDEV CHIRAG SHASHIKANT TANNA S 179544 10.30
23/4/2010 533083 RISHABHDEV SAAKSHI SHARES PVT LTD S 230000 10.01
23/4/2010 533083 RISHABHDEV BHAVISHDHIRAJLALKHAKHKHAR S 322498 10.29
23/4/2010 533083 RISHABHDEV SAFFRON FINANCE LIMITED S 173599 10.13
23/4/2010 526407 Ritesh Prop VENUS INFOSOFT PVT.LTD S 73695 19.90
23/4/2010 526407 Ritesh Prop GAJRIAJAYNA PRECISION IND PLTD S 102800 19.31
23/4/2010 533056 SARK SYS KAMALESHWAR SINGH B 50000 32.10
23/4/2010 511144 Saya Housing POORNIMA COMMERCIAL PVT LTD S 21936 2.79
23/4/2010 524552 Shasun Chem BP FINTRADE PRIVATE LIMITED B 241807 69.76
23/4/2010 530651 Softech Inf KALPANA VASANT THAKKAR B 20000 39.66
23/4/2010 530651 Softech Inf NILESH EKNATH BHOIR S 21100 39.69
23/4/2010 522296 SS Forgings ANKUR CHOPRA S 50000 4.70
23/4/2010 531373 Suave Hotels RAMRATAN CHIRANIA B 60000 28.33
23/4/2010 531373 Suave Hotels ACHALA ELECTRICALS PRIVATE LIMITED S 68807 27.60
23/4/2010 519152 Vadilal Enter DARSHAN FINANCIAL SERVICES PRIVATE LIMITED S 6278 120.39
23/4/2010 530369 Vamshi Rubber ASHOK KUMAR BILGAIYAN B 38585 45.60
23/4/2010 530369 Vamshi Rubber ASHWANI JINDAL B 30000 46.20
23/4/2010 530369 Vamshi Rubber ASHOK KUMAR BILGAIYAN S 38585 46.26
23/4/2010 530627 Vipul Dye Chem KHUSHALCHAND JIVRAJ SHAH B 32075 13.00
23/4/2010 530627 Vipul Dye Chem DIPIKABIPIN SHAH S 29375 13.00
23/4/2010 532721 Visa Steel VISA INFRASTRUCTURE LIMITED B 15000000 42.50
23/4/2010 532721 Visa Steel VISA MINMETAL AG S 15000000 42.50
23/4/2010 511074 Weizmann Fin CRESTA FUND LTD B 6200 238.65
23/4/2010 511074 Weizmann Fin LOTUS GLOBAL INVESTMENTS LIMITED S 6200 238.65
23/4/2010 531249 Well Pack Papers AMAR PREMCHAND WALMIKI B 430000 26.72
23/4/2010 531249 Well Pack Papers MAYANKN GANDHI S 414633 26.90
23/4/2010 514348 Winsome Yarns SHRIVATS TRADING PRIVATE LTD B 2000000 1.57
23/4/2010 514348 Winsome Yarns SATYAM COMBINES PVT LTD S 2000000 1.57
* B - Buy, S - Sell
NSE Bulk Deals to Watch - Apr 23 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
23-APR-2010,ANSALHSG,Ansal Housing and Constru,SAR AUTO PRODUCTS LIMITED,BUY,98000,65.15,-
23-APR-2010,CENTEXT,Century Extrusions Limite,BHARAT SHANKAR PHAPALE,BUY,706900,12.40,-
23-APR-2010,DCB,Development Credit Bank L,EDELVALUE PARTNERS,BUY,30000,43.10,-
23-APR-2010,FCSSOFT,FCS Software Solutions Li,PRUDENTIAL MANAGEMENT ADVISORS PVT. LTD.,BUY,4846100,5.41,-
23-APR-2010,GMRINDS,GMR Industries Limited,KANCHAN CHHABRA,BUY,147815,129.81,-
23-APR-2010,GMRINDS,GMR Industries Limited,RAMAN KUMAR GULATI,BUY,55240,131.36,-
23-APR-2010,ISFT,Intrasoft Tech. Ltd,PENGUINE EXIM PVT. LTD.,BUY,100000,116.49,-
23-APR-2010,KALECONSUL,Kale Consultants Limited,RATNABALI CAPITAL MARKETS LTD.,BUY,108980,115.50,-
23-APR-2010,PAEL,PAE Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,59848,51.97,-
23-APR-2010,PARAL,Parekh Aluminex Limited,M/S.LAXMI CAP BROKING PVT LTD,BUY,65000,207.44,-
23-APR-2010,CENTEXT,Century Extrusions Limite,ASISH FINANCE LIMITED,SELL,700000,12.40,-
23-APR-2010,CENTEXT,Century Extrusions Limite,BHARAT SHANKAR PHAPALE,SELL,465935,12.44,-
23-APR-2010,DCB,Development Credit Bank L,EDELVALUE PARTNERS,SELL,1100000,42.00,-
23-APR-2010,FCSSOFT,FCS Software Solutions Li,PRUDENTIAL MANAGEMENT ADVISORS PVT. LTD.,SELL,4846100,5.43,-
23-APR-2010,GMRINDS,GMR Industries Limited,ELARA INDIA OPPORTUNITIES FUND LIMITED,SELL,121974,116.19,-
23-APR-2010,GMRINDS,GMR Industries Limited,KANCHAN CHHABRA,SELL,147815,124.84,-
23-APR-2010,GMRINDS,GMR Industries Limited,PRIME INDIA INVESTMENT FUND LTD,SELL,100000,126.68,-
23-APR-2010,GMRINDS,GMR Industries Limited,RAMAN KUMAR GULATI,SELL,158521,127.97,-
23-APR-2010,KALECONSUL,Kale Consultants Limited,RATNABALI CAPITAL MARKETS LTD.,SELL,11942,117.90,-
23-APR-2010,MADHAV,Madhav Marbles and Granit,LRS PORTFOLIO & ADV.SER.P.LTD,SELL,57776,38.65,-
23-APR-2010,PAEL,PAE Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,59848,51.87,-
Asian stocks continue to ease
Investors stay away from buying as escalating tensions on the Greece front take their toll ahead of weekends
Asian markets continued to ease on escalating tensions on the Greece front as the buyers stood on the sidelines ahead of the weekends, awaiting for the proper guidance on whether Greece would avail of IMF and EU finances. Investors were again unnerved by Greece's debt woes after Moody's Investor Services downgraded the country's credit rating and new data showed its budget deficit last year was far bigger than expected. Investors were also waiting to see what global finance officials of the Group of 20 nations, meeting in Washington over the next three days, would do or say to help resolve Greece's debt troubles.
The European Union said yesterday that Greece's budget deficit last year was worse than it previously forecast and could top 14 %of gross domestic product as “off- market swaps” cloud its estimates. The EU's statistics office said that Greece's deficit was 13.6 %last year, higher than the government's April 7 forecast of 12.9 percent. The EU forecast a shortfall of 12.7 %in November.
The US dollar hit a fresh one-year high of 1.3202 against the Euro in the early Asian trades as the Asian indices started the day on a very frail note. Commodities soon turned lower too and selling became the norm for the broad asset markets.
In major markets, Japan's Nikkei 225 stock index dropped 34.63 points, or 0.3 percent, to 10,914.46 and Hong Kong's Hang Seng lost 210.45, or 1 percent, 21,244.49. South Korea's KOSPI shed 0.1 %while Shanghai's stocks fell 0.5 %and Australia's benchmark was down 0.5 percent.
In Thailand, stocks tumbled 1.4 %after a series of grenade attacks late Thursday shook Bangkok amid an ongoing standoff between anti-government protesters and security forces.
However, New Zealand's NZX 50 rose 0.4%, while Philippine stocks advanced 0.2%. as strong earnings from most major local firms released reported earlier in the week supported the sentiments.
In Mumbai, The key benchmark indices gained for the fourth straight day on higher European stocks and gains in US index futures. Optimism about the fourth quarter corporate earnings and hopes of a normal monsoon this year aided the rally. The BSE 30-share Sensex was provisionally jumped 130.93 points or 0.75%, off close to 20 points from the day's high and up close to 170 points from the day's low. Banking, realty and capital goods stocks rose.
Overnight in the U.S., stocks ended slightly in positive territory, recouping their losses after President Barack Obama's speech on financial reform contained few surprises. The Dow rose 9.37, or 0.1 percent, to 11,134.29. The Standard & Poor's 500 index rose 2.73, or 0.2 percent, to 1,208.67, while the Nasdaq composite index rose 14.46, or 0.6 percent, to 2,519.07.
Oil prices were little changed with the benchmark contract down 10 cents at $83.60 a barrel when last seen. Crude oil for June delivery rose 2 cents to settle at $83.70 yesterday. Oil has been seesawing in a narrow range this week after dropping nearly 2 %l ast week.
Market shrugs off rate-hike by RBI
Expectations of a normal monsoon this year and optimism about fourth quarter corporate earnings lifted stocks last week as the market shrugged off a rate-hike by the central bank at its annual policy review earlier in the week.
The RBI announced a small increase in policy rates at its monetary policy review on 20 April 2010. It raised repo rate, reverse repo rate and cash reserve ratio (CRR) by 25 basis points each. Analysts were expecting a 25 to 50 basis points hike in short term rates and the CRR. The RBI said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
The hike in CRR is effective from 24 April 2010 while repo and reverse repo rate hikes were imposed immediately. After the hike, the CRR will increase to 6%, the repo rate to 5.25% and the reverse repo to 3.75%. Repo is the rate at which the central bank lends to banks and reverse repo is the rate at which the central bank absorbs excess cash from the banking system. CRR is the portion of deposits banks must set aside with the RBI.
Foreign institutional investors pumped in Rs 5,249.10 crore in April 2010 and Rs 25,893.50 crore in the calendar year 2010 (till 21 April 2010).
The BSE Sensex rose 103.02 points or 0.59% to 17,694.20 in the week ended Friday, 23 April 2010. The S&P CNX Nifty advanced 41.50 points or 0.78% to 5304.10 in the week.
The BSE Mid-Cap index rose 1.55% and the BSE Small-Cap index rose 2.03% in the week. Both these indices outperformed the Sensex.
The key benchmark indices slumped on Monday, 19 April 2010, as investors shunned risky assets after the US Securities and Exchange Commission charged Goldman Sachs with fraud. The market declined for the fifth straight day. The BSE 30-share Sensex fell 190.50 points or 1.08% to 17,400.68. The S&P CNX Nifty fell 58.95 points or 1.12% to 5203.65.
The key benchmark indices registered small gains, snapping loses in the preceding five trading sessions, on Tuesday, 20 April 2010, after the RBI announced a small increase in policy rates at a monetary policy review. Firm global stocks supported the domestic bourses. The BSE 30-share Sensex rose 59.90 points or 0.34% to 17,460.58. The S&P CNX Nifty gained 26.45 points or 0.51% to 5230.10.
The key indices settled marginally higher on Wednesday, 21 April 2010, extending previous session's gains after the RBI raised interest rates on Tuesday, 20 April 2010, by less than some economists had expected and forecast inflation will slow. The BSE 30-share Sensex rose 11.98 points or 0.07% to 17,472.56. The S&P CNX Nifty rose 14.80 points or 0.28% to 5244.90.
Volatility ruled the roost on Thursday, 22 April 2010, as the key benchmark indices came sharply off the higher level in the last one hour of trade. The late slide materialised soon after a sharp surge in mid-afternoon trade that was driven by rally in pivotals such as State Bank of India (SBI), Reliance Industries (RIL) and Tata Motors. The BSE 30-share Sensex rose 101.43 points or 0.58% to 17,573.99. The S&P CNX Nifty rose 24.45 points or 0.47% to 5269.35.
The key benchmark indices gained for the fourth straight day on Friday, 23 April 2010, on higher European stocks and gains in US index futures. Optimism about the fourth quarter corporate earnings and hopes of a normal monsoon this year aided the rally. The BSE 30-share Sensex rose 120.21 points or 0.68% to 17,694.20. The S&P CNX Nifty gained 34.75 or 0.66% to 5304.10.
State-run State Bank of India was the top Sensex gainer last week. It soared 10.20% to Rs 2255.60. A prominent foreign brokerage reportedly raised its rating on the stock to 'neutral' from 'sell'. Another foreign brokerage has reportedly predicted a re-rating of the counter on the back of an expected lending growth in a rebounding economy.
India's largest truck maker by sales Tata Motors was the second biggest gainer from the Sensex pack. The stock rose 7.64% to Rs 844.60 in the week. On 15 April 2010, Tata Motors had said that its global vehicle sales rose 39% to 101,712 units in March 2010 over March 2009. This includes sales of UK-based Jaguar and land Rover brands that rose 43% to 23,538 vehicles in March 2010 over March 2009.
Infrastructure developer Jaiprakash Associates jumped 6.22% to Rs 157.15 on reports its unit Jaypee Infratech is coming out with its initial public offer (IPO) on 29 April 2010.
Private sector lender ICICI Bank moved up 5.87% to Rs 975.75 on reports the bank has re-launched a special home loan plan to attract property buyers.
Hindustan Unilever (up 5.45% to Rs 238.8), Mahindra & Mahindra (up 3.56% to Rs 520.55), Larsen & Toubro (up 2.99% to Rs 1617.85), Tata Power Company (up 2.50% to Rs 1361.25) and Hindalco Industries (up 2% to Rs 178.3), were the other major Sensex gainer in that order.
India's largest steel maker by capacity Tata Steel declined the most in the week that went by. The stock corrected 6.62% to Rs 648.45. Some reports suggested that Tata Steel is close to aborting its plan to sell the Teesside unit of Corus as high raw material prices of iron ore and coal have made the unit unattractive for prospective buyers.
India's largest drug maker by market capitalisation Sun Pharmaceuticals Industries was the second biggest loser of the week. It fell 6.46% to Rs 1684.60.
India's largest copper maker by sales Sterlite Industries declined 5.11% to Rs 795.20. It was the third biggest Sensex loser last week.
India's largest software exporter by sales Tata Consultancy Services (TCS) declined 4.31% to Rs 779.8. Consolidated net profit as per Indian accounting standards rose 9.7% to Rs 2,001 crore on 1.17% rise in total revenue to Rs 7738 crore in Q4 March 2010 over Q3 December 2009.
India's third largest software exporter by sales Wipro fell 4.04% to Rs 692.95. Consolidated net profit under International Financial Reporting Standards jumped 21% Rs 1209 crore on 8% rise in total revenue to Rs 6983 crore in Q4 March 2010 over Q4 March 2009.
Wipro's board recommended a 2:3 bonus issue at the time of announcing the fourth quarter results. The board also recommended a final dividend of Rs 6 per share on the face value Rs 2 each.
ACC (down 3.23% to Rs 902.55), Bharti Airtel (down 2.18% to Rs 297.70), Infosys Technologies (down 2.07% to Rs 2728.10), Hero Honda Motor (down 1.87% to Rs 1883.65), and ONGC (down 1.37% to Rs 1017.30), were the other major Sensex losers in that order.
Monsoon forecast may help equities extend gains
Forecast of a normal monsoon this year may help stocks extend gains next week. But, volatility may rise as traders roll over positions in the derivatives segment from the April 2010 series to the May 2010 series ahead of the expiry of the near-month April 2010 contracts on Thursday, 29 April 2010.
Shares of India's biggest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) will on Monday, 26 April 2010, react to the fourth quarter March 2010 results which the firm announced after trading hours on Friday, 23 April 2010. Net profit rose 19% to Rs 4710 crore on 120.7% growth in net turnover to Rs 57570 crore in Q4 March 2010 over Q4 March 2009.
ICICI Bank and HDFC Bank will also be in focus early in the week after the two private sector banks unveil fourth quarter and year ended March 2010 results on Saturday, 24 April 2010. Among major results due next week include Maruti Suzuki and Sterlite Industries on Monday, 26 April 2010, Infrastructure Development Finance Company (IDFC) on Tuesday, 27 April 2010, Bharti Airtel on Wednesday 28 April 2010, Siemens on Thursday 29 April 2010 and ABB and Reliance Capital on Friday 30 April 2010.
The results announced so far show that the combined net profit of a total of 161 companies rose 32.7% to Rs 12534 crore on 36.7% rise in sales to Rs 98684 crore in the quarter ended March 2010 over the quarter ended March 2009.
The initial public offer of Jaypee Infratech, which has undertaken the Yamuna Expressway project, opens for bidding on 29 April 2010. The company has fixed the price band of the initial public offer (IPO) at Rs 102-117 per share.
Meanwhile, the Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, it said. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon 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. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season holds key.
On the global front, the US Federal Reserve is expected to surprise no one on Wednesday, 28 April 2010, by holding interest rates near zero and repeating its vow of an extended period of very low rates at the conclusion of a two-day policy meeting.
The Greek government surrendered to the credit markets on Friday, 23 April 2010, formally requesting the activation of a joint European Union-International Monetary Fund rescue plan after soaring borrowing costs were seen making it virtually impossible for the debt-strapped nation to meet its funding needs on the open market.
Small-cap, mid-cap indices underperform Sensex
The key benchmark indices gained for the fourth straight day on higher European stocks and gains in US index futures. Optimism about the fourth quarter corporate earnings and hopes of a normal monsoon this year aided the rally. The BSE 30-share Sensex rose 120.21 points or 0.68%, off close to 30 points from the day's high and up close to 160 points from the day's low. But, the market breadth was negative.
Banking, realty and capital goods stocks rose. Index heavyweight Reliance Industries (RIL) rose ahead of Q4 result. IT bellwether Wipro fell in volatile trade after the company announced a 2:3 bonus issue. Most Asian stocks fell after Moody's on Thursday downgraded Greece's sovereign rating.
From a recent low of 17,400.68 on Monday, 19 April 2010, the BSE Sensex has risen 293.52 points or 1.68% in the last four trading sessions.
Stocks were volatile today. A surprise bonus issue from Wipro lifted the bourses at the onset of the trading session as Indian stocks shrugged off weak Asian peers. The market came off the higher level later. It soon regained strength. The market surged to a fresh intraday high in mid-morning trade. The market moved in a range in afternoon trade. The market pared gains in volatile afternoon trade. The market regained strength in mid-afternoon trade as European stocks rose. The market extended gains in late trade.
The Q4 March 2010 results announced so far have been good. The combined net profit of a total of 158 companies rose 32.2% to Rs 12429 crore on 21% rise in sales to Rs 81362 crore in the quarter ended March 2010 over the quarter ended March 2009.
The Indian Meteorological department (IMD) expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, it said. Good monsoon rains would help raise farm output and lower food inflation. The south west monsoon 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.
European shares edged higher on Friday, with banking stocks rebounding after Greek Prime Minister George Papandreou asked for the activation of an EU/IMF aid package to pull the country out of its debt crisis. The key benchmark indices in UK, France and Germany rose 0.78% to 1.44%.
Greece asked European governments and the IMF on Friday to trigger billions of euros in emergency loans in what could be the largest state bailout ever attempted. Prime Minister George Papandreou asked for the 45 billion euro ($60.5 billion) package put together by the European Union and International Monetary Fund to be activated after months of markets pushing Greek borrowing costs ever higher.
On Thursday, the European Union had increased its estimate of the Greece's 2009 budget deficit. Eurostat, the European statistics agency, raised its estimate of the country's budget deficit for last year to 13.6% of gross domestic product, above the Greek government's recent estimate of 12.9%. The ratio of debt to GDP stood at 115.1%, compared with the government's estimate of 113.4%.
On the same day, Moody's Investors Service had downgraded Greece's sovereign rating and said it may lower it further, citing the risk that the debt-laden country may end up paying a lot more for its borrowing than previously thought.
Asian stocks declined after Moody's on Thursday cut its ratings on Greece's sovereign debt. The key benchmark indices in Hong Kong, China, Indonesia and South Korea fell by between 0.14% to 0.98%. But, key benchmark indices in Singapore and Taiwan rose by between 0.08% to 0.33%.
US index futures reversed initial losses. Trading in US index futures indicated that the Dow could gain 16 points at the opening bell on Friday, 23 April 2010.
US stocks staged a late-day comeback on Thursday as another steady drum beat of strong quarterly profits from consumer bellwethers like Starbucks Corp outweighed worries about Greece's finances. The Dow Jones Industrial Average rose 9.37 points, or 0.08%, to 11,134.29. The Standard & Poor's 500 Index rose 2.73 points, or 0.23%, to 1,208.67. The Nasdaq Composite Index gained 14.46 points, or 0.58%, to 2,519.07.
The number of US workers filing new claims for jobless aid fell last week as the labor market gradually heals and producer price data showed inflation remained muted despite a surge in food costs last month.
Back home, the latest data showed the annual food and fuel inflation ticked higher, raising worries central bank may raise interest rates before the next scheduled policy review in July 2010. The food price index rose 17.65% in the year to 10 April 2010. The fuel price index rose 12.45% and the primary articles index rose 14.14% in the year to 10 April 2010, the latest government data showed.
The Reserve Bank of India expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
Indian stocks rose for a fourth day in a row today, after the Reserve Bank of India (RBI) raised interest rates on Tuesday, 20 April 2010, by less than some economists had expected and forecast inflation will slow. The RBI said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted. A 25 basis points hike in the cash reserve ratio (CRR) with effective from 24 April 2010 will suck out excess liquidity of Rs 12500 crore from the banking system.
The BSE 30-share Sensex rose 120.21 points or 0.68% to 17,694.20. The Sensex rose 151.89 points at the day's high of 17,725.88 in mid-morning trade. The index fell 40.11 points at the day's low of 17,533.88 in early trade.
The S&P CNX Nifty rose 34.75 points or 0.66% to 5304.10.
The BSE Mid-Cap index rose 0.3% and the BSE Small-Cap index rose 0.51%. Both the indices underperformed the Sensex.
Most of the sectoral indices on BSE rose. BSE Bankex (up 1.66%), Capital Goods index (up 1.22%) outperformed the Sensex. BSE Oil & Gas index (up 0.66%), Realty index (up 0.57%), FMCG index (up 0.52%), PSU index (up 0.34%), Auto index (up 0.28%), Power index (up 0.08%), IT index (up 0.08%), Healthcare index (down 0.2%), Consumer Durables index (down 0.38%), Metal index (down 0.57%), underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. The breadth was strong at the onset of the trading session. On BSE, 1404 shares advanced as compared with 1514 that declined. A total of 88 shares were unchanged.
From the 30 share Sensex pack, 15 stocks declined while the rest moved up.
BSE clocked turnover of Rs 4669 crore, lower than Rs 5007.35 crore on Thursday, 22 April 2010.
Index heavyweight Reliance Industries (RIL) rose 1.1% ahead of its Q4 result, extending Thursday's 2.03% gains. Net profit rose 19% to Rs 4710 crore in Q4 March 2010 over Q4 March 2009. The result was announced after trading hours today.
Realty shares extended recent gains triggered by the Reserve Bank of India keeping the risk weightage on loans to commercial real estate sector unchanged at its annual monetary policy review on Tuesday 20 April 2010. Ackruti City, Sobha Developers, Peninsula Land and DLF rose between 0.29% to 1.78%. A section of the market was expecting the Reserve Bank of India to raise the risk weightage on loans to commercial real estate to prevent asset bubbles.
Unitech rose 1.31% after taking a pause on Thursday. The stock had risen 2.46% on Wednesday after the board of directors at a meeting held on 20 April 2010 approved demerger of non-core operations comprising of telecommunications, hotels, special economic zones, logistics, transmission towers and others into a separate entity called Unitech Infra. For every one share of Unitech, the shareholders will get one share of Unitech Infra, which will be listed at a later date.
Cement major ACC fell 1.8%, extending Thursday's 1.3% decline. Consolidated net profit declined 1.6% to Rs 392.88 crore in Q1 March 2010 over Q1 March 2009. The result was announced during trading hours on Thursday.
NTPC, country's largest thermal power producer by sales fell 0.75%. Provisional net profit rose 5.5% to Rs 8656.53 crore in the year ended March 2010 over the year ended March 2009. Net sales jumped 11.28% to Rs 46504.47 crore. The result was announced during market hours today.
NTPC has approved capital expenditure of Rs 22350 crore for the year ending March 2011, and plans to add 4,150 megawatts of capacity during the year.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 2.87%, rebounding from last two days' losses. The company recently received an order worth Rs 1,060 crore from Gujarat State Petroleum Corporation (GSPC) to build an offshore oil platform.
India's largest power equipment maker by sales Bharat Heavy Electricals rose 0.64%, with the stock gaining for the second straight day.
India's third largest IT exporter by sales, Wipro, fell 1.42% to Rs 692.95 in volatile trade after company announced a 2:3 bonus issue. It hit a high of Rs 728 and a low of Rs 690.20. Consolidated net profit under International Financial Reporting Standards jumped 21% Rs 1209 crore on 8% rise in total revenue to Rs 6983 crore in Q4 March 2010 over Q4 March 2009. The results were announced just before trading hours today.
Wipro has projected revenue from the IT services business to be in the range of $1.19 billion to $1.215 billion in Q1 June 2010. The company said it won several large deals in Q4 March 2010. Commenting on the fourth quarter results, Wipro Chairman Azim Premji said there was a broad-based, volume led growth during the quarter. There was a good recovery in technology and telecom verticals. The business environment is returning to normal, he added.
Recently, IT giant Tata Consultancy Services beat market estimates and Infosys Technologies met quarterly profit estimates. Both gave a positive outlook on rising demand.
India's largest information technology services provider by sales, TCS fell 0.7%. The company posted 9.7% growth in consolidated net profit as per Indian accounting standards to Rs 2,001 crore on 1.17% rise in revenues to Rs 7738 crore in Q4 March 2010 over Q3 December 2009. The result was announced after the market hours on Monday 19 April 2010.
At the time of announcing the results, TCS chief executive officer and managing director N Chandrasekaran said the company's sales and execution machine is primed and the company has laid a solid platform for growth. There is a significant traction for TCS' strategy of full services which together with TCS' global engagement model positions the company well for accelerated growth, Chandrasekaran said.
India's second largest software exporter by sales, Infosys Technologies, rose 0.72%.
HCL Technologies rose 1.9%, gaining for the straight third day triggered by strong Q3 March 2010 results. Consolidated net profit as per US accounting standards rose 15.9% to Rs 344 crore on 1.4% growth in revenue to Rs 3075.70 crore in Q3 March 2010 over Q2 December 2009. The company announced the result on Wednesday, 21 April 2010.
Bank stocks rose on an expected increase in lending growth in the current year in a rebounding economy. India's biggest commercial bank in terms of branch network State Bank of India rose 1.48%, extending Thursday's 5.58% gains triggered by brokerage upgrades on the counter. A prominent foreign brokerage has reportedly raised its rating on the stock to 'neutral' from 'sell'. Another foreign brokerage has reportedly predicted a re-rating of the counter on the back of an expected lending growth.
Among other PSU banks, Punjab National Bank, Bank of Baroda and Bank of India rose by between 0.4% to 0.98%. The Union Cabinet today approved infusion of Rs 15000 crore in state-run banks for the fiscal year ending March, 2011, to help meet growing credit requirements of the economy
India's largest private sector bank by net profit ICICI Bank rose 3.37% ahead of its Q4 March 2010 result which is due on Saturday, 24 April 2010. India's second largest private sector bank by net profit HDFC Bank rose 0.46%, reversing early fall, ahead of Q4 March 2010 results which is due on Saturday, 24 April 2010.
Axis Bank rose 0.63%, extending recent gains triggered by strong Q4 results. Net profit jumped 31.54% to Rs 764.87 crore in Q4 March 2010 over Q4 March 2009. The result was announced during market hours on Tuesday, 20 April 2010.
The Reserve Bank of India (RBI) on Wednesday said a private sector bank must obtain RBI's approval for an initial public offer (IPOs). The central bank said the issue price for an IPO should be based on merchant banker's recommendation. All preferential issues would also require prior approval of RBI. Pricing of preferential issues by listed banks may be as per Sebi formula, while for unlisted banks the fair value may be determined by a chartered accountant or a merchant banker, RBI said in a notification.
Private sector banks also need to approach RBI for prior in principle approval in case of a Qualified Institutional Placement (QIP). Banks need to approach RBI along with details of the issue once the bank's board approves the proposal of raising capital through this route. The RBI also said allotment of shares to the investors under a QIP would be subject to compliance with Sebi guidelines on QIPs and RBI guidelines dated 3 February 2004.
Once the allotment process under QIP is complete, the banks would also be required to furnish complete details of the issue to RBI for seeking post facto approval. This would be irrespective of whether any acquisition results in shareholding of 5% or more of the paid up capital of the bank.
India's largest mortgage finance firm by total income Housing Development Finance Corporation (HDFC) fell 0.32%, reversing early gains. The company recently 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.
FMCG stocks rose on expectation of good Q4 results. Hindustan Unilever ITC, United Spirits, Tata Tea rose by between 0.61% to 1.47%.
But, Nestle India fell 4.67% as net profit rose just over 2% to Rs 201.86 crore on 16.9% rise in sales to Rs 1479.78 crore in Q1 March 2010 over Q1 March 2009, as higher input costs hit margins. The company declared the results after trading hours on Thursday.
Rate sensitive auto stocks were mixed. Vehicle sales in India should grow 10-15% in the fiscal year to March 2011, an industry body said on 9 April 2010. In 2009/10, a total of 1.23 crore vehicles were sold in the country, up 26.4% from the previous fiscal year, data from the Society of Indian Automobile Manufacturers (SIAM) showed.
India's top small car maker by sales, Maruti Suzuki India fell 1.22%, taking a pause after last three days' gains. The company raised prices of its vehicles across different models early this month due to higher input costs and expenses from the introduction of the new Bharat Stage IV emission norms.
India's largest tractor maker by sales Mahindra & Mahindra rose 2.4%. Mahindra & Mahindra said on 16 April 2010 that it is buying out Renault's stake in a joint venture that makes the Logan sedan. The Renault name and logo will continue to be used on the Logan till the end of calendar 2010, the company said in a statement.
India's second largest bike maker by sales Bajaj Auto fell 0.51%. Bajaj Auto on Friday, 16 April 2010 said it has raised its stake in KTM Power Sports AG, Europe's second largest motorcycle maker.
Motorbike maker Hero Honda Motors fell 1.38% on profit taking after gains in the preceding three days in a row. Net profit jumped 48.8% to Rs 598.81 crore on 19.6% rise in total income to Rs 4191.81 crore in Q4 March 2010 over Q4 March 2009. The company announced the results after trading hours on Monday 19 April 2010.
At the time of announcing the Q4 results, Hero Honda managing director and CEO Pawan Munjal said factors like movement in commodity prices, inflation and interest rate scenario will play a crucial role in the growth and profitability of the two-wheeler industry, going ahead. He said Hero Honda has set ambitious milestones for the current year after vehicle sales surpassed the company's target in the year ended March 2010 (FY 2010).
He said the company is looking forward to a series of defining initiatives in the year ending March 2011 (FY 2011), including aggressively expanding geographical reach, building on production capacities and augmenting strong brand portfolio.
India's largest commercial vehicle maker by sales Tata Motors rose 1.01% extending recent rally. The company said on 15 April 2010 that its global vehicle sales rose 39% to 101,712 units in March 2010 over March 2009. This includes sales of UK-based Jaguar and land Rover brands that rose 43% to 23,538 vehicles in March 2010 over March 2009.
Most carmakers increased vehicle prices from 1 April 2010 after 13 cities across the country switched over to Bharat Stage IV emission norms. Earlier in February 2010, 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.
Automobile firms are seen reporting strong Q4 results on a healthy volume growth. However, the sector is witnessing a headwind of rising input costs. Recently, Maruti Suzuki raised car prices due to a surge in input costs and shift to new emission norms from 1 April 2010. M&M, too, hiked utility vehicles prices recently.
Metal stocks fell after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 0.72% on Thursday, 22 April 2010. JSW Steel, Hindustan Zinc, National Aluminum Company, Hindalco Industries fell by between 0.26% to 1.17%.
India's largest private sector steel maker by sales Tata Steel fell 1.23%, extending Thursday's 1.83% decline. The company said recently its sales in the year ended on 31 March 2010 rose 18% from a year ago to 6.17 million tonnes.
FCC Software clocked the highest volume of 2.02 crore shares on BSE. Visa Steel (1.61 crore shares), Cals Refineries (1.11 crore shares), Development Credit Bank (1.06 crore shares) and India Steel Works (96 lakh shares) were the other volume toppers in that order.
Manappuram General Finance & Leasing clocked the highest turnover of Rs 333.26 crore on BSE. State Bank of India (Rs 194.13 crore), Tata Steel (Rs 129.21 crore), Reliance Industries (Rs 115.63 crore), ICICI Bank (Rs 100.96 crore) were the other turnover toppers in that order.
Nitesh Estates Grey Market Premium
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Talwalkars Better Value Fitness Ltd. | 123 to 128 | 18 to 20 |
| Nitesh Estate | 54 to 56 | 2 to 2.50 |
| Tarapur Transformers | 65 to 75 | 5 to 6 |
| Mandhana India Ltd. | 120 to 130 | 9.50 to 10 |
| Tara Health Foods | -- | -- |
| Sutlaj Jal Vidhut Nigam (SJVNL) | -- | 2 to 2.25 |
EKC
Investors with short-term trading perspective can consider selling the stock of Everest Kanto Cylinder. This stock was one of the underperformers of 2009. It could not move beyond its June 2009 peak of Rs 238 and declined to the low of Rs 108 by the end of this February. The stock is currently trading well below its medium-term support at Rs 144 and a close above this level is needed to review the medium-term view.
The short-term trend in the stock is down since the April 8 peak of Rs 131. The pull-back witnessed over the last three sessions halted at the key short-term resistance at Rs 121. The 50-day simple moving average present at this level will also act as a hurdle in the near-term. Daily rate of change oscillator as well as the moving average convergence divergence oscillator is featuring in the negative zone denoting that the short-term view is negative.
Investors with short-term perspective can sell the stock with stop at Rs 121.5. Targets for the stock are Rs 114 and Rs 110.
via BL
Flat-to-negative start likely;RIL,Wipro results eyed
Headlines for the day:
Teaser rates are back
Essar Energy valued at $9.5-11 billion
Atlas, Reliance to buy more shale gas acreage
Events for the day:
Major corporate action
Talwalkars IPO closes today
Nitesh Estates IPO opens today
Results: Reliance Industries, Wipro, MMTC, Areva T&D
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares hit a 3-week closing low on Thursday, with banks slipping as Greek's debt concerns resurfaced and Nokia dropping after it cut its profit outlook.
The US stocks staged a late-day comeback on Thursday as strong quarterly profits from consumer bellwethers like Starbucks Corp outweighed worries about Greece's shaky finances.
In today's trade, the Asian markets were trading in a negative territory, except Shanghai Composite. At the time of writing this report, SGX Nifty was trading 12 points lower.
Indian markets
Subdued start by the Asian indices may pull the Sensex down in the opening hours. India’s largest company by the market cap Reliance Industries and IT major Wipro will announce their earnings today, the stocks will be closely eyed by the investors. The foreign institutional investors (FIIs) inflow has been slowed down in this week, which may be a cause of worry for the short-term traders. Even the Greece' debt concern, which is still not resolved, may act as a dampener. On the other hand, the FIIs inflow and the earnings of the companies, will decide whether the domestic indices will end the week in negative or positive, which has been flat till date.
Commodity cues
In the commodity space, the crude oil prices inches higher as a rebound in equities overshadows demand and global recovery concerns, with the Nymex light crude oil for the May series down by $0.02 per barrel, whereas in the metals space, the Comex Gold for the May series declined by $5.90 and the Comex Silver for the May series was down by $0.06 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 22, 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs264.80 crore, whereas the domestic mutual funds, on April 20, 2010, were the net buyers of the stocks to the tune of Rs101.90 crore.
Copper weakens
Only nickel gains among other base metals at LME
Copper prices ended lower at Comex on Thursday, 22 April 2010. Strong dollar pushed metal prices lower after two consecutive days of rise. Better than expected earning and economic reports in most cases pointed towards higher demand for metals in coming months and restricted the drop.
At USA, copper futures for July delivery ended lower by 5.1 cents (1.4%) at $3.5065 a pound on Thursday. Last week, prices lost 1.5%. In March, copper gained 7.5%. Copper gained about 6% for the first quarter, buoyed by data from the U.S. and other countries reinforced expectations that the global economic recovery was on track. On a year to date basis, in 2010, copper is higher by 3.8%.
Prices have increased by almost 70% in the past twelve months due to higher imports from China. Copper ended FY 2009 higher by 140%.
On Thursday, at LME, copper for delivery in three months ended lower by $69 (0.9%) at $7,690. Prices had crossed the $8,000 mark for first time since 2008 on 6 April. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.5%. The greenback rose for the sixth straight session against a basket of major currencies, including the euro, after the European Union said that Greece's budget deficit was wider than forecast.
Among economic reports expected for the day, The Labor Department in US reported on Thursday, 22 April 2010 that U.S. wholesale prices rose by a seasonally adjusted 0.7% in March 2010, reversing a drop in February. The producer price index has risen by 6% in the past year, led by a 23% rise in energy prices. It's the largest year-over-year gain since September 2008.
Separately, the Labor Department in US reported on Thursday, 22 April 2010 that the number of people filing an initial claim for unemployment benefits declined by 24,000 for the week ended 16 April week to a seasonally adjusted 456,000, the first drop in three weeks. Initial claims are down 27% from a year ago.
Elsewhere, The National Association of Realtors in US reported on Thursday, 22 April 2010 that existing homes rose 6.8% in March to a seasonally adjusted annual rate of 5.35 million from a downwardly revised 5.01 million in February. The figure was more than the expected 5.29 million.
Copper ended substantially higher last year on expectations of revived global economic growth along with a decline in the dollar. The dollar index had dropped almost 4.2% last year. The metal was also pushed higher by record first-half imports to China, the world's largest user.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
At the MCX, copper for April delivery closed lower by Rs 2.85 (0.82%) at Rs 342.95/Kg. Prices rose to a high of Rs 346.2/Kg and fell to a low of Rs 341.1/Kg during the day's trading.
Among other metals traded in the LME on Thursday, lead ended 0.2% lower at $2,308 a ton and zinc ended 0.4% lower at $2,425 a ton. Nickel ended 1.5% higher at $27,150. Aluminum ended 0.4% lower at $2,339 a ton.
Crude ends marginally higher
Prices reverse course in the final minutes of trading
Crude oil prices ended marginally higher at Nymex on Thursday, 22 April 2010 after trading lower almost the entire day. Prices reversed course during the last moment as dollar surrendered its gains partly. Prices dropped earlier due to a host of factors. First was the strong dollar. Next came demand concerns and lastly traders continued to mull over yesterday's energy department's report of unexpected rise in crude and gasoline inventories for last week. Better than expected earning reports at Wall Street tried to curtail crude's losses.
On Thursday, crude-oil futures for light sweet crude for June delivery closed at $83.70/barrel (higher by $0.2 or 0.2%). During intra day trading, crude fell to a low of $81.73. Last 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 4.4%.
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.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.5%. The greenback rose for the sixth straight session against a basket of major currencies, including the euro, after the European Union said that Greece's budget deficit was wider than forecast.
Among economic reports expected for the day, The Labor Department in US reported on Thursday, 22 April 2010 that U.S. wholesale prices rose by a seasonally adjusted 0.7% in March 2010, reversing a drop in February. The producer price index has risen by 6% in the past year, led by a 23% rise in energy prices. It's the largest year-over-year gain since September 2008.
Separately, the Labor Department in US reported on Thursday, 22 April 2010 that the number of people filing an initial claim for unemployment benefits declined by 24,000 for the week ended 16 April week to a seasonally adjusted 456,000, the first drop in three weeks. Initial claims are down 27% from a year ago.
Elsewhere, The National Association of Realtors in US reported on Thursday, 22 April 2010 that existing homes rose 6.8% in March to a seasonally adjusted annual rate of 5.35 million from a downwardly revised 5.01 million in February. The figure was more than the expected 5.29 million.
A day earlier, on Wednesday, EIA reported larger-than-expected jumps in oil and gasoline inventories for last week. The report detailed that crude oil inventories rose 1.9 million barrels in the week ended 16 April. Gasoline stockpiles rose 3.6 million barrels versus expectations of a 100,000-barrel gain. Distillate stockpiles added 2.1 million barrels, also above expectations of 840,000 barrels.
On Thursday, natural-gas futures finished 4.4% higher. Natural gas for May delivery rose 17 cents to $4.12 per million British thermal units. Natural gas for June delivery, the most active contract, also rose 17 cents, or 4.3%, to settle at $4.2150 per million BTUs. The Energy Information Administration on Thursday reported an increase of 73 billion cubic feet of the product to the nation's stockpiles, a smaller-than-expected rise. The build was over the 33 billion cubic feet five-year average, however.
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 May delivery closed lower by Rs 8 (0.21%) at Rs 3,732/barrel. Natural gas for April delivery closed at Rs 183.8/mmbtu, higher by Rs 5.7 (3.2%).
Daily News Roundup - Apr 23 2010
NTPC is likely to sign contracts next week to buy additional 1.51mn cubic meters a day of gas from RIL at the Government approved price. (ET)
SBI mulls issue of bonds to institutional and retail investors for raising funds which would be redeemed by the Government on maturity. (FE)
Atlas Energy Inc along with Reliance Industries plans to buy 42,344 acres in the gas-rich Marcellus shale. (BS)
ICICI Bank has cut home loan rates by bringing back its old teaser home loan rate product till the end of the month. (ET)
TCS sets sights on onsite work again with the return of discretionary technology spending. (FE)
L&T plans to realign its electrical and electronics business division with its wholly-owned subsidiary in power equipment manufacturing, L&T Power. (BS)
ArcelorMittal has proposed a JV with SAIL to set-up integrated steel plant near latter’s existing facility in Bokaro, Jharkhand. (ET)
The Madhya Pradesh government has said that the Sasan UMPP, being constructed by Reliance Power, is facing delay due to environment related issues. (BS)
M&M slashes Logan prices by up to Rs80,000. (ET)
TCS may soon deploy its core banking solution at Deutsche Bank's global locations as part of a deal valued at over US$100mn. (BL)
GAIL may move to PNGRB to seek an upward revision in tariffs determined by the regulator for its existing HVJ-GREP-DVPL pipeline. (FE)
Bharat Forge launches US$150mn QIP issue. (ET)
Essar Energy, the holding company of Essar Oil, has been valued at US$9.5-11bn as it has priced its IPO on London Stock Exchange at 450-550 pence a share. (BS)
Jet Airways to offer business class seats at budget prices on select routes. (ET)
Bharat Forge, in the process of restructuring the operations of its overseas subsidiaries, has transferred the operations and assets of Bharat Forge Scottish Stampings Ltd to Bharat Forge Kilsta AB of Sweden, a wholly-owned subsidiary. (BL)
Gujarat Gas Company has received an allocation of 0.6mmscmd of KG D6 gas from the Government of India on a fallback basis. (BS)
Bajaj Hindusthan will invest about Rs150bn in setting up power projects totaling 2,430 Mw in Uttar Pradesh. (BS)
Aurobindo Pharma, which has targeted to cross Rs100bn in revenues by 2013, proposes to invest Rs2.5bn every year for the next five years. (BS)
Piramal Healthcare has acquired Bharat Serums And Vaccines (BSV) Ltd's injectible anaesthetic products business. (BL)
Ansal API is returning to Gurgaon after nearly seven years, with a Rs10bn township project planned in Sector 67. (BS)
India to become the largest DTH market by 2012, as per study by research firm Media Partners Asia. (BS)
The steel companies have assured the ministry that they will not increase prices by more than 5% over the next 5-6 months. (ET)
Food inflation for the second week of April rose to 17.65%. (ET)
The life insurance industry recorded 68% increase to Rs254bn in new business premium collected in March 2010 compared to Rs151bn in the corresponding month in 2009. (BS)
India’s iron ore exports fell for a third straight month in February, despite robust demand from main buyer China, as a government crackdown on illegal mining hit supplies. (BS)
In a move designed to curb iron ore exports, the Government is set to increase the tax on iron ore exports. (BL)
Consolidation to prevail
You can never appreciate the shade of a tree unless you sweat in the sun.
Looks like the ongoing consolidation in the domestic market and erratic global cues are making the bulls sweat for every penny. Making money in a largely lackluster market seems to have become a little tough. Also, the fact that we have had such a huge rally since March 2009 will always act as a deterrent. After touching two-year highs recently, the key indices have been drifting in a narrow range.
Global markets have been a bit volatile of late although the US indices are trading near or above 18-month highs. Headline risk still prevails due to lingering concerns over sovereign debt issues in Europe. Anemic recovery in the US and China’s tightening are among the other notable pressure points.
Back home the main worries are tied to inflation and its fallout on monetary policy. In the immediate future, monsoon will play some sentimental role in driving the sentiment. Today we expect a flat to slightly higher start. Thursday was a day of large caps as fund flows improved. In a time of uncertainty one should stick with the best and the brightest while dumping the laggards.
Technically, the NSE Nifty has support at 5200 and resistance at 5300. It can rise to 5400 provided FII inflows are strong and global markets are supportive. At the same time, there is always a chance of a small correction, but no need to panic. Bulls are still lacking in conviction so we continue to advise caution. Wait till the market breaks out of its current range and the global scenario changes for the better.
Results Today: 3i Infotech, Areva T&D, Binani Cement, Corporation Bank, GSK Consumer, Mahindra Lifespaces, Merck, MMTC, Pantaloon Retail, Persistent Systems, P&G, Reliance Industries, SKF India and Wipro.
FIIs were net buyers of Rs5.18bn on Thursday on a provisional basis. Local funds were net buyers of Rs1.82bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs8.58bn. On Wednesday, FIIs were net buyers of Rs2.65bn in the cash segment, as per the SEBI web site.
All was well with the market till a late bout of selling played spoilsport and cut short the party for the bulls today. "The U-Turn on the Indian bourses in the last hour of trades could be attributed to a similar swing in European markets. Stocks in Europe turned lower after EU statistics agency revised up Greek’s fiscal deficit and warned of more upward revision", says Amar Ambani Vice President Research IIFL.
The benchmark Indian indices, which were cruising along nicely till the mid-afternoon erased more than half of the gains in the wake of the selling in European markets.
The slide was led by heavy selling in index pivotals like Tata Steel, ICICI Bank and Bharti Airtel. Moreover, the mid-cap and the small-cap counters, which were in demand for the past couple of days, saw some profit taking today.
The BSE Sensex gained 101 points to end at 17,574 and NSE Nifty gained 24 points to close at 5,269. Among the 30 components of Sensex, 20 ended in the positive terrain and 10 were in the red.
Among the BSE sectoral indices, the BSE Oil & Gas index was top gainer, the index gained 1.2%, followed by BSE Auto index up 1% and Banking index up 0.8%. However, the Mid-Cap and the Small-cap index ended flat.
Outside the frontline indices, the big gainers in the broader market were RCF, UCO Bank, Chambal Fert and EIH. On the other hand, losers included IRB Infra, Madras Cem, Jet Airways and MMTC.
Shares of TCS erased early gains and ended almost flat to end at Rs785. The company yesterday announced a global engineering service partnership with Rolls-Royce. The scrip opened at Rs789 it touched an intra-day high of Rs793 and a low of Rs781 and recorded volumes of over 0.3mn shares on BSE.
Shares of Glenmark also erased early gains and ended almost flat at Rs269. The Pharma major reportedly won a favorable legal verdict in US over a cholesterol drug case with Merck. The scrip opened at Rs272 it touched an intra-day high of Rs276 and a low of Rs268 and recorded volumes of over 0.2mn shares on BSE.
Shares of Shriram EPC surged by over 3% to end at Rs284 after reports stated that the company has filed DRHP of Orient Green Power a subsidiary of the company. The scrip opened at Rs283 it touched an intra-day high of Rs292 and a low of Rs281 and recorded volumes of over 0.18mn shares on BSE.
Shares of Suven Life Science surged by over 5% to end at Rs32.65 after the company announced that it secured 3 Australian patents on NCEs. The scrip opened at Rs32.50 it touched an intra-day high of Rs32.65 and a low of Rs31.25 and recorded volumes of over 0.12mn shares on BSE.
Shares of Zee Entertainment gained 3% to end at Rs311 after reports stated the board of directors of the company approved acquisition of INX media’s general entertainment channel 9X.
Precious metals shed some glitter
Prices drop as dollar heads up
Precious metal prices ended lower on Thursday, 22 April 2010 at Comex. Strong dollar pushed bullion metal prices lower after two consecutive days of rise. But better than expected earning reports in most cases pointed towards higher demand for metals in coming months and restricted the drop.
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 Thursday, gold for June delivery ended at $1,142.9 an ounce, lower by $5.9 (0.5%) an ounce on the New York Mercantile Exchange. Last 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 4.3%.
On Thursday, May Comex silver futures ended lower by 6.9 cents (0.4%) at $18.009 an ounce. Last 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 5.9%.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.5%. The greenback rose for the sixth straight session against a basket of major currencies, including the euro, after the European Union said that Greece's budget deficit was wider than forecast.
Among economic reports expected for the day, The Labor Department in US reported on Thursday, 22 April 2010 that U.S. wholesale prices rose by a seasonally adjusted 0.7% in March 2010, reversing a drop in February. The producer price index has risen by 6% in the past year, led by a 23% rise in energy prices. It's the largest year-over-year gain since September 2008.
Separately, the Labor Department in US reported on Thursday, 22 April 2010 that the number of people filing an initial claim for unemployment benefits declined by 24,000 for the week ended 16 April week to a seasonally adjusted 456,000, the first drop in three weeks. Initial claims are down 27% from a year ago.
Elsewhere, The National Association of Realtors in US reported on Thursday, 22 April 2010 that existing homes rose 6.8% in March to a seasonally adjusted annual rate of 5.35 million from a downwardly revised 5.01 million in February. The figure was more than the expected 5.29 million.
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 lower by Rs 57 (0.34%) at Rs 16,671 per ten grams. Prices rose to a high of Rs 16,744 per 10 grams and fell to a low of Rs 16,575 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 119 (0.43%) lower at Rs 27,412/Kg. Prices opened at Rs 27,465/kg and fell to a low of Rs 27,187/Kg during the day's trading.
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