Wednesday, April 28, 2010
FIIs turns net sellers in equity worth Rs 1.31 bn on April 28 (prov)
Foreign Institutional Investors (FIIs) remained net buyers in equities worth Rs 1,603 million on April 27. They bought equities worth Rs 26,835 million and sold equities worth Rs 25,233 million. Till April 27, they have been net buyers in equities worth Rs 53,203 million.
FIIs turned net sellers in the equity segment worth Rs 1,311.3 million on both the BSE and the NSE on Apr 28 as per provisional data available at NSE. They bought equities worth Rs 25,661.7 million and sold equities worth Rs 26,973 million.
While, Domestic Institutional Investors (DIIs include banks, DFIs, Insurance and MFs) remained net buyers in the equity segment worth Rs 3,241 million on both the BSE and the NSE on Apr 28, as per provisional data available at the NSE. They bought equities worth Rs 18,942.5 million and sold equities worth Rs 15,701.5 million.
Nifty April 2010 futures at premium
Nifty April 2010 futures were at 5,223.75, at a premium of 8.30 points over spot closing of 5,215.45. Turnover in NSE's futures & options (F&O) segment surged to Rs 1,46,788.34 crore from Rs 91,547.86 crore on Tuesday, 27 April 2010, as traders rolled over positions 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.
Tata Steel April 2010 futures were at a slight premium at 626.90 compared to the spot closing of 624.30.
ICICI Bank April 2010 futures were at slight discount at 920.10 compared to the spot closing of 921.50.
Reliance Industries April 2010 futures were near the spot price at 1018 compared to the spot closing of 1018.60.
In the cash market, the S&P CNX Nifty fell 92.90 points or 1.75% at 5,215.45.
Stocks drop across the world after Greece's debt gets downgraded to junk and Portugal's ratings are slashed
Asian stocks stumbled today as the Greek tragedy continued to act as the Achilles heel for the global markets. There are serious worries on the finances of the other troubled nations in Eurozone now and the current recovery in the world economy is feared to slow down amid worsening conditions on the sovereign debt front. Concerns about Europe, which remains the largest market for Asian exports, increased after Standard & Poor's, the rating agency, downgraded Greece's debt to junk status yesterday and hit Portugal's rating with a two-notch cut.
Europe may have to turn to the dreadful option of on debt selling in case the worst fears regarding PIIGS come true. The European and American markets fell sharply overnight on the same concerns, with the Dow Jones industrial average dropping 1.9 % to 10,991.99, its worst loss in three months. Commodity prices and Euro declined sharply today, leading to a broad pressure on resources. In a bid to stem the panic in Greece, the country's security regulator has temporarily banned short selling on the Athens stock exchange until June 28. The market has lost around 25% of its value in the last five weeks.
The Japanese stocks plunged following these cues. Weak closing in European and US markets in the previous session and negative trading across other markets in Asian region also impacted market sentiment, with almost all the stocks ended in negative territory. Traders preferred to adopt a wait-and-watch approach ahead of national holiday tomorrow and FOMC meeting later in the day in the U.S. The benchmark Nikkei 225 Index plunged 287.87 points, or 2.6 %, to 10,925, while the broader Topix index of all First Section issues fell 19.99 points, or 2.0%, to 978.
On the economic front, a report released by the Ministry of Economy, Trade and Industry revealed that retail sales in the country surged up 4.7% year-on-year in March, coming in at 12.286 trillion yen. That marked the third straight month of increase, and it beat forecasts for a 3.7 % annual increase following the 4.2 % expansion in February.
The Australian market ended in negative territory, reacting to the downgrading of sovereign credit ratings of Greece and Portugal. Weak closing on Wall Street in the previous session and an unexpected increase in consumer inflation for the quarter and lower commodity prices also weighed on market. The benchmark S&P/ASX200 Index declined 57.20 points, or 1.17 % to close at 4,823, while the All-Ordinaries Index ended flat at 4,854, representing a loss of 59.10 points, or 1.20 %.
A report released by the Australian Bureau of Statistics revealed that consumer prices in the country rose at a stronger than expected pace during the first three months of the year, which may force the central bank to hike the cash rate again when its policy board meets next week. The data comes close on the heels of the release of the producer price inflation report, which also showed a bigger than expected increase in prices. According to the report, consumer price index gained 2.9% year-on-year in the March quarter. This follows a 2.1% increase in prices in the December quarter.
China's key stock index edged down 0.3 % to a fresh six-month closing low, although bank and property shares stabilized after sliding on Tuesday on concerns over lenders' fundraising plans and further steps to curb property speculation. The Shanghai Composite Index ended the day at 2,900.3 points, extending the index's 2.1 % drop the previous session on a media report of a possible share issue by China Construction Bank. Stocks in Hong Kong's dropped 1.2 %.
In other markets, South Korea's Kospi index fell 1.2% to 1,728.25 while New Zealand's NZX 50 ended down 0.3% and Philippine stocks lost 0.7%.
In Mumbai, the key benchmark extended losses for the second straight day as world stocks reeled from rating downgrades on Greece and Portugal. The BSE 30-share Sensex was provisionally down 285.27 points or 1.61%, off close to 240 points from the day's high and up close to 60 points from the day's low. Metal and realty stocks led the decline. All the sectoral indices on BSE were in the red. Index heavyweight Reliance Industries (RIL) slumped more than 4%, extending recent losses triggered by disappointment from Q4 result. India's largest mobile services provider by sales Bharti Airtel dropped in volatile trade as Q4 net profit fell.
Light sweet crude oil futures for June delivery have a range bound session today but the undertone was primarily bearish on an across the board sell off in the world stocks. The counter edged up above $82 per barrel but turned lower soon and was last seen quoting at $82.27 a barrel in electronic trading, down $0.23 per barrel from previous close at $82.44 a barrel in New York on Tuesday.
SJVNL (Satluj Jal Vidyut Nigam) is a hydroelectric power generation company originally established as a joint venture between the government of India and the Himachal Pradesh government to develop and operate the Nathpa Jhakri Power Station (NJHPS). NJHPS is the largest operational hydroelectric power generation facility in India by installed capacity (based on information published by the Central Electricity Authority), with an aggregate generation capacity of 1,500 MW. It is located on the Sutlej River in Himachal Pradesh.
In October 2003, the first 250-MW hydroelectric power generation unit was commissioned at the NJHPS. By May 2004, all six power-generating units at the NJHPS had been commissioned and the NJHPS was fully operational. NJHPS generated 6,014 million units (MU)), 6,449 MU and 6,609 MU of power (gross) in the years ended March 2007 (FY 2007), FY 2008 and FY 2009. The aggregate power generation (gross) by NJHPS amounted to approximately 6,332 MU in the nine months ended December 2009,
SJVNL is required to supply 12% of its annual generation from the NJHPS free of cost to Himachal Pradesh. Out of the remaining 88% of power generated by the NJHPS ( to be reduced by 1% to 87% in the event the company is required to supply power to the local area development fund), 25% is supplied to Himachal Pradesh and the remainder to various states located in the northern region of India pursuant to the 10 long-term power purchase agreements. Of these, two have expired and are in the process of being renewed.
In addition to NJHPS, SJVNL has one project under construction and seven other projects under various stages of implementation. The company is constructing the Rampur project, a 412-MW hydroelectric power generation facility located downstream from the NJHPS. The Rampur project is to be completed and commissioned in 2013. It has also been awarded the rights to develop and operate two hydroelectric projects, with expected aggregate generation capacity of 825 MW by Himachal Pradesh (with a 51% participation interest in each).
SJVNL has entered into memoranda of understanding with the Uttarakhand government for three hydroelectric projects, with aggregate generation capacity of 363 MW. The company has agreed to participate in a joint venture with NHPC and the Manipur government for the development and operation of a 1,500-MW hydroelectric power project in the state. It has diversified to target hydroelectric power projects available outside India, and has been awarded the rights to build-own-operate-and-transfer (BOOT) a 900-MW hydroelectric power project in the Sankhuwasabha district of Nepal, through participating in a competitive tender held by the Nepalese government.
The expected capacity addition from all these projects is 4,000 MW (412 MW from the Rampur project and 3,588 MW from the other seven projects).
SJVNL has agreed to take a minority interest in a joint venture to develop a transmission line in India. This will be part of a transmission line expected to connect Dhalkewar in Nepal to Muzaffarpur in India. The company will expand to providing technical advisory and consultancy services.
SJVNL has lined up an initial public offer (IPO) of Rs 41.50 crore at a price band of Rs 23 to Rs 26. The IPO is opening on 29 April 2010 and closing on 3 May 2010. This is an offer for sale of the government of India's equity shares, representing 10.03% of the paid-up capital of the company. Accordingly, it will not receive any proceeds from the offer. All the proceeds, less offer expenses, will be received by the selling shareholder. The company is offering 5% discount to employees and retail investors.
* Has historically been able to achieve high levels of operational efficiencies, reflected in the high average capacity indices for the NJHPS. Under the previous tariff regulations, which were effective during this period, was entitled to certain incentive payments based on its capacity index levels, as determined by the Northern Regional Power Committee (NRPC). Under the new performance-based tariff regime, will be entitled to these incentive payments only if monthly plant availability factor exceeds a pre-determined normative annual plant availability factor. For NJHPS, this is 82%. According to data published by the NRPC, the annual plant availability factor (calculated as the average of monthly plant availability factors in the period) for NJHPS was 92.4%, 96.7% and 96.1% in FY 2007, FY 2008 and FY 2009, respectively, exceeding the normative annual plant availability factor of 85% applicable to NJHPS in those years.
* Has experience in the development, execution and management of mega-hydroelectric projects through the development and operation of the 1,500-MW NJHPS, the largest hydroelectric power generation facility in India by generation capacity, located in the geo-technically sensitive Himalayan region.
* Has an established track record of operational excellence. Since the commissioning of NJHPS, it has consistently met or exceeded government-set performance targets for its operations. Has been upgraded to a Schedule A public sector undertaking and designated as a mini-ratna category-I public sector undertaking in recognition of its efforts.
* Development of hydroelectric power projects typically requires a longer period of time compared with other power projects such as thermal power projects. Further, development of hydroelectric power projects may be subject to unexpected complexities and delays. There are a number of factors such as delays in the land acquisition process and associated resettlement and rehabilitation issues, geological, hydrological and climatic conditions that may cause delay or cost overruns. Hence, timely execution of the project is the key.
* There have been instances in the past when state governments, or the government of India, decided to transfer the rights to construct and operate hydroelectric power projects, originally awarded to certain parties, to other competing power developers.
* Required to supply 12% of its annual generation from NJHPS free of cost to Himachal Pradesh.
Sales income increased 9%, gross generation 6% and PAT 37% in the nine months ended December 2009 over the nine months ended December 2008. However, due to seasonality in business, figures cannot be annualised. Sales (net) stood at Rs 1490.78 crore and PAT at Rs 759.32 crore in FY 2009. On post-IPO equity of Rs 4136.63 crore, the EPS for FY 2009 works out to Rs 1.8. The P/E is 12.5-14.2 times at the offer price band of Rs 23-Rs 26. In comparison, NHPC's consolidated EPS for FY 2009 stood at Re 1 and P/E 30 times at the current market price. The Price/Book Value (P/BV) of SJVNL is 1.4 – 1.6 times, while that of NHPC is 1.6 times.
Part of the Jaypee group, Jaypee Infratech (JIL) is a special purpose vehicle promoted by Jaiprakash Associates (JAL) to develop, operate and maintain the Yamuna Expressway project connecting Noida and Agra in Uttar Pradesh. As viability gap funding for the expressway project, the company has got the right to develop for residential, commercial, amusement, industrial and institutional purpose 25 million square meters (or 6175 acres or 2,500 hectares) of land along the Yamuna Expressway at five locations. The overall cost of the project is Rs 9739.29 crore.
The build-operate-maintain-and-transfer Yamuna Expressway project is a six-lane access controlled expressway (extendable up to eight lanes) awarded originally to Jaiprakash Associates by the Yamuna Expressway Development Authority (YEA), the nodal agency appointed by Government of Uttar Pradesh (GoUP), with a concession of 36 years. The Yamuna Expressway project was subsequently transferred to JIL by its parent in 2007.
The construction of the Yamuna Expressway is required to be completed by April 2013. Based on the progress achieved so far, construction of the project is to be completed by 2011. It is estimated about 4,042 acres of land is required. JIL had taken possession of approximately 3,897 acres end March 2010. In addition, the company requires about 1,018 acres for construction of related structures (such as toll plazas). It has taken possession of 183 acres. YEA is expected to make balance land available to it soon.
Pursuant to the terms of the concession agreement and the choice of land parcels acquired for development, noted in a letter dated 12 July 2003, YEA has acquired and leased about 148.27 million square feet of land to JIL in four of the chosen five sites for lease of 90 years. YEA is acquiring the balance 105.84 million square feet (i.e., 2429.69 acres) for the five sites. The cost of the land leased out by YEA for expressway and real estate development is equal to YEA's cost in acquiring such land (based on the actual amount paid to land owners with no additional charge) plus rental equal to Rs 100 per hectare per year.
To date, JIL has commenced development of its land at Noida and has launched five projects under the Jaypee Greens brand, Jaypee Greens Klassic, Jaypee Greens Aman, Jaypee Greens Kosmos and Jaypee Kensington Park. Each is a residential unit development, residential plot project and a commercial plot project with planned saleable area of 24.34 million square feet. These projects, launched between November 2008 and February 2010, are targeted for handover in calendar years 2011 and 2013. The completion of a real estate project is to take three to four years, while the completion of all phases of an integrated township, such as Wish Town, can take significantly longer. Moreover, the company has also engaged SOM India LLC and Skidmore, Owings and Merrill India to do master plan for approximately 2,471 acres of land in the Gautam Budh Nagar (other than Noida) district.
While Jaiprakash Ventures Pvt Ltd (JVPL) provides JIL design and engineering services (including for toll plazas and the toll system), JAL provides civil works contract as well as sales and marketing services and related corporate services for development of the Yamuna Expressway. The scope of JAL also includes selection, engagement and oversight of consultants and subcontractors, procurement and transportation of certain building materials, construction services,
The proceeds from the fresh issue amounting Rs 1650 crore is to be used to part finance the Yamuna Expressway project and general corporate purpose. The proceeds from offer of sale will go to the selling stakeholder, JAL.
Promoters JAL and the Jaypee group have strong track record of successfully executing complex projects including hydropower projects. The Jaypee group, though, has no prior experience of developing and operating expressways.
The development of expressway along with ribbon development of real estate projects will benefit each other. Earnings from real estate will subsidise the development of expressway and give additional traffic during and after full development. Better infrastructure including connectivity will increase the marketability and price for realty projects along the expressway.
Of the expected total land bank available for development, 885 acres is in Noida. An additional 2,470 acres are also located in the national capital region (NCR). These are the prime realty hotspots of the country. The established brand of Jaypee Greens of Jaypee Group in the NCR makes marketability of the realty projects easier.
Of the 24.34 million square feet of saleable area to be used for the five residential and one commercial project, approximately 88% had been sold per square foot end March 2010.
Relatively low-cost land reserve as the average cost of land acquired so far for construction of the expressway and real estate development is approximately Rs 26.7 lakh per acre.
Had paid in full (excluding annual lease rental) for approximately 98% of total expected land requirement for the expressway and real estate projects end February 2010.
Of the 4,042.43 acres required for the expressway project, only about 3,896.66 acres have been acquired and leased. The balance 145.77 acres are yet to be acquired and transferred. The timely completion of the expressway project and flow of toll revenues largely hinge on getting possession of the balance land. Similarly, yet to get 835.33 acres of the 1,017.86 acres required for related structures such as toll plazas. For real estate development also it is yet to get possession for 2426.69 acres of land out of the total 6175 acres of land. The entire land for construction of structures for the Yamuna Expressway and real estate development is to be received by June 2010.
Though business is expressway development, major revenue is expected to come from unlocking of value of land reserves. As real estate is a cyclical business, timely completion and right product offering are crucial for success. Moreover, as a significant part of the land parcel is out of the NCR region and in the Aligarh and Agra districts, ability to unlock value from this land parcel has to be seen. Wait may be longer if the market is not conducive to unlock such remote land parcel, thereby money spent on land acquisition getting blocked.
Neither YEA nor GoUP or any other relevant body will permit construction of any competing expressway or road that may affect the toll revenue of the SPV. The Yamuna Expressway has to compete with existing National Highway (NH)-2.
Construction services have been given to promoter JAL on cost plus basis. Any escalation in material cost is likely to impact profit because increase in cost of development cannot be passed on to the customer as the price is typically agreed prior to or in the early stages of construction. Similarly, toll rates are linked to the wholesale price index and subject to government policies and applicable law.
Security provided for certain of promoter's obligations and vice versa. These arrangements may result in potential conflicts of interest.
Promoter JAL has two more wholly-owned subsidiaries developing of expressways: Himalayan Expressway (HEL), implementing the four-laning of the Zirakpur-Parwanoo section of NH-22, and Jaypee Ganga Infrastructure Corporation(JGICL), awarded a concession to develop a 1,047-km eight-lane access-controlled expressway connecting Greater Noida with Ghazipur-Ballia. Jaypee Agra Vikas (JAVL), a group company, has been awarded a concession to develop a 20.50-km long six-lane inner ring road in Agra. JAVL, which is to carry real estate development of approximately 3,160 acres of land along the inner ring road, and JGICL, which has a significant interest in real estate development, may prove to be competitors as there is no non-compete agreement in place between group companies.
Fortunes to be closely tied to economic and political developments in Uttar Pradesh.
Noida and the NCR region, where most of the main real estate projects will be located, are and continue to remain competitive markets.
JIL is yet to commission its expressway project and collect tolls. Revenue in the fiscal ended March 2009 (FY 2009) have come from sales of undeveloped plots to group companies. Net sales of Rs 525.50 crore and net profit of Rs 398.85 crore was derived from sales of developed plots in the first nine months ended December 2009. The annualized EPS was Rs 3.8 for the nine months ended December 2009.
As JIL's business model is development of infrastructure (expressway) along with ribbon development of real estate, there is no listed comparable peer. The offer price of Rs 102-Rs 117 discounts the annualised EPS for the nine months ended December 2009 by 26.8-30.8 times. Retail individual bidders will get a discount of up to 5% to the issue price.
Investors in such projects should take a long-term view as significant benefits of the expressway and real estate projects will be realised only in the long run.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
28/4/2010 523716 Ashiana Hous M3 INVESTMENT PRIVATE LIMITED B 215563 120.00
28/4/2010 523716 Ashiana Hous ASHIANA RET VILLAGES LIMITED S 300000 120.21
28/4/2010 504646 Bhagwati Auto DHEERAJKUMAR LOHIA B 27397 33.61
28/4/2010 504646 Bhagwati Auto S D BIOTECH LIMITED S 26688 33.76
28/4/2010 512253 Bio Green Inds BP FINTRADE PRIVATE LIMITED B 48130 20.94
28/4/2010 500083 Century Extr BHARAT SHANKAR PHAPALE S 329399 11.91
28/4/2010 532413 Cerebra Integ VALUE SOURCE IT PRIVATE LIMITED S 100000 16.46
28/4/2010 526550 Country Club VALLABH REALTORS PRIVATE LIMITED S 400000 24.58
28/4/2010 531270 Dazzel Conf REKHA BHANDARI B 50000 15.84
28/4/2010 531270 Dazzel Conf UDAY BHOJRAJ NAGDA S 50000 15.84
28/4/2010 517973 DMC Intl MAHENDER SINGH B 117629 20.34
28/4/2010 517973 DMC Intl OURS TRADING AND HOLDINGS PRIVATE LIMITED B 231796 20.22
28/4/2010 517973 DMC Intl OURS TRADING AND HOLDINGS PRIVATE LIMITED S 232050 20.21
28/4/2010 531144 EL Forge MULTI STOCK BROKING PRIVATE LIMITED B 52169 33.46
28/4/2010 531144 EL Forge MULTI STOCK BROKING PRIVATE LIMITED S 43910 33.72
28/4/2010 500132 Empee Sugars SUDHIR KOTHARI SANJU B 500000 36.00
28/4/2010 500132 Empee Sugars HIREN KIRIT GANDHI S 350000 36.00
28/4/2010 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. B 114633 62.88
28/4/2010 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. S 114633 63.04
28/4/2010 590094 FARMAX IND S K TRADING (S K CHOURASIA) B 137307 118.62
28/4/2010 590094 FARMAX IND ARUN KUMAR GANERIWALA B 130000 117.53
28/4/2010 590094 FARMAX IND S K TRADING (S K CHOURASIA) S 137307 117.23
28/4/2010 590094 FARMAX IND ARUN KUMAR GANERIWALA S 130000 117.86
28/4/2010 532022 Filatex Fash SANJU KABRA B 75000 11.04
28/4/2010 531739 Gennex Lab NETEDGE TECHNOSOFT PVT LTD B 700482 1.72
28/4/2010 532857 Glory Polyfilms TRANSGLOBAL SECURITIES LTD. B 730772 24.76
28/4/2010 532857 Glory Polyfilms JITENDRA KUMAR GAUR B 293455 23.93
28/4/2010 532857 Glory Polyfilms SAAKSHI SHARES PVT LTD B 125674 25.18
28/4/2010 532857 Glory Polyfilms BHAVISH DHIRAJLAL KHAKHKHAR B 486431 25.48
28/4/2010 532857 Glory Polyfilms CHANDULAL RANCHHODBHAI RABADIYA B 171000 23.02
28/4/2010 532857 Glory Polyfilms STANDARD SECURITIES & INVESTMENTS INTERMEDIATE LIMITED B 129826 24.91
28/4/2010 532857 Glory Polyfilms SHYAMSUNDER BIYANI B 188726 25.03
28/4/2010 532857 Glory Polyfilms INVENTURE GROWTH & SECURITIES LTD. B 144441 24.33
28/4/2010 532857 Glory Polyfilms SAFFRON FINANCE LIMITED B 246665 24.95
28/4/2010 532857 Glory Polyfilms TRANSGLOBAL SECURITIES LTD. S 730774 24.91
28/4/2010 532857 Glory Polyfilms JITENDRA KUMAR GAUR S 318455 23.33
28/4/2010 532857 Glory Polyfilms SAAKSHI SHARES PVT LTD S 250674 24.14
28/4/2010 532857 Glory Polyfilms BHAVISH DHIRAJLAL KHAKHKHAR S 774134 24.26
28/4/2010 532857 Glory Polyfilms CHANDULAL RANCHHODBHAI RABADIYA S 171000 25.98
28/4/2010 532857 Glory Polyfilms STANDARD SECURITIES & INVESTMENTS INTERMEDIATE LIMITED S 132111 24.91
28/4/2010 532857 Glory Polyfilms SHYAMSUNDER BIYANI S 188726 25.15
28/4/2010 532857 Glory Polyfilms INVENTURE GROWTH & SECURITIES LTD. S 140441 24.36
28/4/2010 532857 Glory Polyfilms SAFFRON FINANCE LIMITED S 246665 24.90
28/4/2010 511682 IFL Promoters OMPARKASH GUPTA B 20000 20.40
28/4/2010 511682 IFL Promoters J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 16951 20.31
28/4/2010 511682 IFL Promoters ATUL MITTAL B 16540 20.63
28/4/2010 511682 IFL Promoters DMC INTERNATIONAL LTD B 36900 21.17
28/4/2010 511682 IFL Promoters OMPARKASH GUPTA S 20000 20.66
28/4/2010 511682 IFL Promoters J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD S 16921 20.72
28/4/2010 532100 Indo City Info ANIL BANWARILAL JAIN B 75000 6.24
28/4/2010 523844 Invicta Meditek CHELLIAH JEYASEELA PANDIAN S 28500 6.33
28/4/2010 517063 Jetking Info ASHOK KUMAR BILGAIYAN B 62178 164.76
28/4/2010 517063 Jetking Info ASHOK KUMAR BILGAIYAN S 62178 166.53
28/4/2010 519248 JVL Agro Inds J V STOCK BROKING PRIVATE LIMITED B 50105 207.61
28/4/2010 519248 JVL Agro Inds BHAWARLAL JAJOO B 42800 214.07
28/4/2010 519248 JVL Agro Inds J V STOCK BROKING PRIVATE LIMITED S 50105 209.57
28/4/2010 519248 JVL Agro Inds BHAWARLAL JAJOO S 42800 200.28
28/4/2010 532758 KEW Inds ASHOK CHINUBHAI SHAH S 357678 13.93
28/4/2010 532758 KEW Inds MUKESHBHAI TRAMBAKLAL SHAH S 125000 13.60
28/4/2010 531602 Koffee Break ACHALA ELECTRICALS PRIVATE LIMITED B 544757 1.58
28/4/2010 590111 MASTER RAMATULASI MORTHA B 35005 35.46
28/4/2010 590111 MASTER SRIKANTH MIKKILINENI S 29300 34.67
28/4/2010 533080 MOLDTK PLA SAI PRASANNA MANCHINENI B 50000 50.80
28/4/2010 531496 Omkar Overseas J V STOCK BROKING PRIVATE LIMITED B 30426 70.68
28/4/2010 531496 Omkar Overseas AARP ORGANISORS PRIVATE LIMITED B 25551 72.83
28/4/2010 531496 Omkar Overseas ABHAY DATTATRAY JAVLEKAR B 30000 72.26
28/4/2010 531496 Omkar Overseas DIPAL DEVENDRAKUMAR SHAH B 30000 72.48
28/4/2010 531496 Omkar Overseas J V STOCK BROKING PRIVATE LIMITED S 28214 71.23
28/4/2010 531496 Omkar Overseas RAJNI RADHESHYAM PUNJABI S 28500 71.08
28/4/2010 531496 Omkar Overseas PRAVINKUMAR SHRIPAL JAIN S 26400 73.11
28/4/2010 531496 Omkar Overseas DIPAL DEVENDRAKUMAR SHAH S 30000 70.75
28/4/2010 512097 Oregon Comm BHAVESH SHANTILAL TRIVEDI B 28110 270.56
28/4/2010 512097 Oregon Comm KAVITA D VIRWANI B 5980 250.48
28/4/2010 512097 Oregon Comm SANJAY JETHALAL SONI B 29022 271.34
28/4/2010 512097 Oregon Comm NEHALBHAI PRATAPBHAI RATHOD B 7803 259.45
28/4/2010 512097 Oregon Comm JAYBHAI ARVINDBHAI DHAMECHA B 5973 267.19
28/4/2010 512097 Oregon Comm DARSHAN PRAFULCHANDRA TREVEDI B 5500 250.59
28/4/2010 512097 Oregon Comm NARESHCHAND JAIN B 9996 271.06
28/4/2010 512097 Oregon Comm JIGESH AMRUTLAL HIRANI B 13000 268.52
28/4/2010 512097 Oregon Comm MOTILAL OSWAL FINANCIAL SERVICES LTD B 7606 263.17
28/4/2010 512097 Oregon Comm DHARMESHKUMAR JAYESHKUMAR SONI B 18512 269.46
28/4/2010 512097 Oregon Comm DHIRENKUMAR DHARAMDAS AGARWAL S 11608 271.57
28/4/2010 512097 Oregon Comm KRUPA SANJAY SONI S 37335 271.16
28/4/2010 512097 Oregon Comm BHAVESH SHANTILAL TRIVEDI S 8086 269.49
28/4/2010 512097 Oregon Comm KRUPA SANJAY SONI S 9000 259.60
28/4/2010 512097 Oregon Comm SANJAY JETHALAL SONI S 14340 271.06
28/4/2010 512097 Oregon Comm NEHALBHAI PRATAPBHAI RATHOD S 7723 259.72
28/4/2010 512097 Oregon Comm JAYBHAI ARVINDBHAI DHAMECHA S 5973 267.68
28/4/2010 512097 Oregon Comm NARESHCHAND JAIN S 8996 272.13
28/4/2010 512097 Oregon Comm MOTILAL OSWAL FINANCIAL SERVICES LTD S 7931 262.79
28/4/2010 512097 Oregon Comm ARIF GULAMMUSTUFA SHAIKH S 7814 255.82
28/4/2010 512097 Oregon Comm DHARMESHKUMAR JAYESHKUMAR SONI S 7612 269.02
28/4/2010 532606 Parekh Alum SUDHIR KESHAVJI SAMPAT B 100000 229.93
28/4/2010 504288 Polar Inds DARSHAN FINANCIAL SERVICES PRIVATE LIMITED B 63000 6.42
28/4/2010 533178 PRADIPOVERS GENUINE STOCK BROKERS PVT. LTD. B 448539 97.87
28/4/2010 533178 PRADIPOVERS SHEETAL M SHETH B 371376 97.89
28/4/2010 533178 PRADIPOVERS GENUINE STOCK BROKERS PVT. LTD. S 448539 97.84
28/4/2010 533178 PRADIPOVERS SHEETAL M SHETH S 371376 98.54
28/4/2010 506618 Punjab Chem PIVOTAL SECURITIES PRIVATE LIMITED B 26200 164.65
28/4/2010 509839 Punjab Wool SUSHMA RANI PUNNI S 78789 7.87
28/4/2010 517522 Rajratan Global TARUNKUMAR G BRAHMBHATT B 26106 234.70
28/4/2010 517522 Rajratan Global TARUNKUMAR G BRAHMBHATT S 32392 234.61
28/4/2010 526407 Ritesh Prop RITESH SPINNING MILLS LIMITED B 65000 17.52
28/4/2010 517447 RS Software SMART EQUITY BROKERS PRIVATE LIMITED B 44272 61.12
28/4/2010 517447 RS Software ALFA FISCAL SERVICES PVT LTD B 56795 58.82
28/4/2010 517447 RS Software S V ENTERPRISES B 47574 61.39
28/4/2010 517447 RS Software SMART EQUITY BROKERS PRIVATE LIMITED S 44272 61.23
28/4/2010 517447 RS Software ALFA FISCAL SERVICES PVT LTD S 56795 59.02
28/4/2010 517447 RS Software S V ENTERPRISES S 47574 61.27
28/4/2010 530025 Samyak Intl MOHAN DEVKISHAN JHANWER HUF S 17398 14.64
28/4/2010 531569 Sanjivani Par YUVARAJ MODY S 32312 57.97
28/4/2010 533056 SARK SYS MV TRADECOM PRIVATE LIMITED B 60000 36.70
28/4/2010 533056 SARK SYS SANJEET KUMAR CHOURASIA S 55000 34.97
28/4/2010 511144 Saya Housing KALPANA PRAFUL JHAVERI B 25000 2.80
28/4/2010 511144 Saya Housing R DEVA B 20000 2.80
28/4/2010 511144 Saya Housing PASCHIM INDUSTRY LTD S 80960 2.80
28/4/2010 526071 Sellaids Pub BHARAT SHANKAR PHAPALE B 20350 10.44
28/4/2010 526071 Sellaids Pub MAHIPAT IWDARMAL MEHTA B 22597 10.46
28/4/2010 526071 Sellaids Pub PUNJAB NATIONAL BANK S 42297 10.46
28/4/2010 531794 Seshachal Tech SAMEER N SHAH B 53555 10.45
28/4/2010 531794 Seshachal Tech ANJU DHARMENDRAMA DHANI S 72000 10.45
28/4/2010 531794 Seshachal Tech SAMEER N SHAH S 53555 10.48
28/4/2010 511754 Shalibhadra Fin MALLINATH MADINENI B 25000 30.85
28/4/2010 530433 Shiva Fert FIN BRAINS COMMODITIES BROKERS PRIVATE LIMITED B 50000 87.50
28/4/2010 530433 Shiva Fert EMERGING STAR INVEST PVT LTD B 250000 87.50
28/4/2010 530433 Shiva Fert BHAGWANDAS GILDA S 50000 87.50
28/4/2010 530433 Shiva Fert SHRIKISHAN RAMPAL CHITLANGE S 50000 87.50
28/4/2010 530433 Shiva Fert CHITLANGE MEGHA S 50000 87.50
28/4/2010 530433 Shiva Fert BP FINTRADE PRIVATE LIMITED S 108766 87.50
28/4/2010 505827 SNL Bearings HI KLASS TRADING AND INVESTMENT LIMITED B 19000 45.00
28/4/2010 505827 SNL Bearings VIPUL MANAGEMENT & CONSULTANTS PRIVATE LIMITED S 19000 45.00
28/4/2010 531645 Southern Ispat ARCADIA SHARE & STOCK BROKERS PVT. LTD B 92074 20.63
28/4/2010 531645 Southern Ispat SRI SALASAR SUPPLIERS PRIVATE LIMITED B 85000 21.32
28/4/2010 531645 Southern Ispat ARCADIA SHARE & STOCK BROKERS PVT. LTD S 97074 20.67
28/4/2010 522296 SS Forgings BRIJESHKUMAR PUKANI B 55400 5.42
28/4/2010 531373 Suave Hotels J V STOCK BROKING PRIVATE LIMITED B 122056 31.71
28/4/2010 531373 Suave Hotels ACHALA ELECTRICALS PRIVATE LIMITED B 348826 31.84
28/4/2010 531373 Suave Hotels SARITA DIDWANIA B 89232 32.46
28/4/2010 531373 Suave Hotels J V STOCK BROKING PRIVATE LIMITED S 119956 31.91
28/4/2010 531373 Suave Hotels RAMRATAN CHIRANIA S 70000 30.61
28/4/2010 531373 Suave Hotels ACHALA ELECTRICALS PRIVATE LIMITED S 256703 31.83
28/4/2010 526133 Supertex Inds PARAMESHWAR EXPORTS PRIVATE LIMITED B 1385164 4.24
28/4/2010 526133 Supertex Inds VARDHAMAN INVESTMENT B 1000000 4.26
28/4/2010 526133 Supertex Inds PARAMESHWAR EXPORTS PRIVATE LIMITED S 1005678 4.24
28/4/2010 532755 Tech Mahindra LIFE INSURANCE CORPORATION OF INDIA B 3763125 762.00
28/4/2010 532755 Tech Mahindra AT&T INTERNATIONAL INC. S 4300455 762.39
28/4/2010 523455 Techtran Poly KRISHNA TRIPURANENI B 91782 25.30
28/4/2010 519228 Temptation Food SURYA NARAYANA RAJU ALLURI B 160200 34.49
28/4/2010 519228 Temptation Food SURYA NARAYANA RAJU ALLURI S 160200 34.21
28/4/2010 532794 Zee News TRANSGLOBAL SECURITIES LTD. B 1411622 15.79
28/4/2010 532794 Zee News TRANSGLOBAL SECURITIES LTD. S 1412372 15.79
* B - Buy, S - Sell
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
28-APR-2010,EXCELINFO,Excel Infoways Limited,OM INVESTMENTS,BUY,127175,62.83,-
28-APR-2010,EXCELINFO,Excel Infoways Limited,TRANSGLOBAL SECURITIES LTD.,BUY,139264,63.10,-
28-APR-2010,FCSSOFT,FCS Software Solutions Li,MANISH RATILAL SHAH,BUY,3400476,4.53,-
28-APR-2010,FCSSOFT,FCS Software Solutions Li,PRUDENTIAL STOCK & SECURITIES LTD,BUY,6866188,4.50,-
28-APR-2010,FCSSOFT,FCS Software Solutions Li,SHEETAL MANUBHAI SHETH,BUY,3633300,4.58,-
28-APR-2010,GLORY,Glory Polyfilms Limited,JYOTI PORTFOLIO LIMITED,BUY,214950,23.96,-
28-APR-2010,GLORY,Glory Polyfilms Limited,KHAKHKHAR BHAVISH DHIRAJLAL,BUY,1299808,25.32,-
28-APR-2010,GLORY,Glory Polyfilms Limited,KULARIA DHARAMCAND PADAMARAM,BUY,180000,23.00,-
28-APR-2010,GLORY,Glory Polyfilms Limited,MAHAVIR KNITFAB PVT LTD,BUY,181401,24.52,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SAAKSHI SHARES PVT.LTD.,BUY,1616589,25.11,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SAFFRON FINANCE LIMITED,BUY,552156,24.34,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SARSWATI VINCOM LTD,BUY,220000,24.00,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SHYAMSUNDER BIYANI,BUY,175917,25.11,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SPARROW INDIA DIVERSIFIED OPP FUND I - GDR,BUY,111547,24.00,-
28-APR-2010,GLORY,Glory Polyfilms Limited,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,BUY,138969,24.74,-
28-APR-2010,GLORY,Glory Polyfilms Limited,TRANSGLOBAL SECURITIES LTD.,BUY,752411,24.83,-
28-APR-2010,LAKSHMIEFL,Lakshmi Energy and Foods,TAIB SECURITIES MAURITIUS LIMITED,BUY,984926,125.00,-
28-APR-2010,PARAL,Parekh Aluminex Limited,SUDHIR KESHAVJI SAMPAT,BUY,100000,229.90,-
28-APR-2010,PRADIP,Pradip Overseas Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,456269,97.83,-
28-APR-2010,PRADIP,Pradip Overseas Ltd,HEMANSHU RAMNIKLAL SHAH.,BUY,88000,92.00,-
28-APR-2010,RSSOFTWARE,R. S. Software (I) Ltd.,ALFA FISCAL SERVICES PVT LTD,BUY,55614,59.10,-
28-APR-2010,RSSOFTWARE,R. S. Software (I) Ltd.,BP FINTRADE PRIVATE LIMITED,BUY,45981,60.00,-
28-APR-2010,TECHM,Tech Mahindra Limited,LIFE INSURANCE CORPORATION OF INDIA LTD,BUY,3604745,762.00,-
28-APR-2010,ZEENEWS,Zee News Limited,CROSSLAND TRADING CO,BUY,1627890,15.76,-
28-APR-2010,ZEENEWS,Zee News Limited,TRANSGLOBAL SECURITIES LTD.,BUY,1921266,15.67,-
28-APR-2010,EXCELINFO,Excel Infoways Limited,OM INVESTMENTS,SELL,127175,62.91,-
28-APR-2010,EXCELINFO,Excel Infoways Limited,SAR AUTO PRODUCTS LIMITED,SELL,206434,63.08,-
28-APR-2010,EXCELINFO,Excel Infoways Limited,TRANSGLOBAL SECURITIES LTD.,SELL,138460,63.02,-
28-APR-2010,FCSSOFT,FCS Software Solutions Li,MANISH RATILAL SHAH,SELL,3400476,4.66,-
28-APR-2010,FCSSOFT,FCS Software Solutions Li,PRUDENTIAL STOCK & SECURITIES LTD,SELL,6866188,4.88,-
28-APR-2010,FCSSOFT,FCS Software Solutions Li,SHEETAL MANUBHAI SHETH,SELL,4348300,4.69,-
28-APR-2010,GLORY,Glory Polyfilms Limited,JYOTI PORTFOLIO LIMITED,SELL,114950,24.05,-
28-APR-2010,GLORY,Glory Polyfilms Limited,KHAKHKHAR BHAVISH DHIRAJLAL,SELL,1299808,25.12,-
28-APR-2010,GLORY,Glory Polyfilms Limited,KULARIA DHARAMCAND PADAMARAM,SELL,180000,25.25,-
28-APR-2010,GLORY,Glory Polyfilms Limited,MAHAVIR KNITFAB PVT LTD,SELL,66400,25.32,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SAAKSHI SHARES PVT.LTD.,SELL,175157,23.00,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SAAKSHI SHARES PVT.LTD.,SELL,1616589,24.55,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SAFFRON FINANCE LIMITED,SELL,552156,24.34,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SARSWATI VINCOM LTD,SELL,220000,23.20,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SHYAMSUNDER BIYANI,SELL,175917,25.10,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SPARROW INDIA DIVERSIFIED OPP FUND I - GDR,SELL,157000,24.00,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SPARROW INDIA DIVERSIFIED OPPORTUNITIES FUND I,SELL,157000,24.00,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SPARROW INDIA DIVERSIFIED OPPORTUNITIES FUND I - GDR,SELL,157000,24.00,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SPARROW INDIA DIVERSIFIED OPPORTUNITIES FUND I GDR,SELL,157000,24.03,-
28-APR-2010,GLORY,Glory Polyfilms Limited,SPARROW INDIA DIVERSIFIED OPPORTUNITIES FUND I- GDR,SELL,157000,24.00,-
28-APR-2010,GLORY,Glory Polyfilms Limited,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,SELL,138969,24.78,-
28-APR-2010,GLORY,Glory Polyfilms Limited,TRANSGLOBAL SECURITIES LTD.,SELL,732416,24.74,-
28-APR-2010,KOTAKNIFTY,Kotak Nifty ETF,SHAH FAMILY PRIVATE TRUST,SELL,2525,525.19,-
28-APR-2010,LAKSHMIEFL,Lakshmi Energy and Foods,UBS SECURITIES ASIA LTD. A/C SWISS FIN. CORP. (MAU,SELL,1000000,125.02,-
28-APR-2010,PARAL,Parekh Aluminex Limited,M/S.LAXMI CAP BROKING PVT LTD,SELL,87907,229.27,-
28-APR-2010,PRADIP,Pradip Overseas Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,456269,97.94,-
28-APR-2010,PRADIP,Pradip Overseas Ltd,HEMANSHU RAMNIKLAL SHAH.,SELL,210000,99.73,-
28-APR-2010,RSSOFTWARE,R. S. Software (I) Ltd.,ALFA FISCAL SERVICES PVT LTD,SELL,55614,59.09,-
28-APR-2010,RSSOFTWARE,R. S. Software (I) Ltd.,BP FINTRADE PRIVATE LIMITED,SELL,45981,60.27,-
28-APR-2010,TECHM,Tech Mahindra Limited,AT&T INTERNATIONAL INC.,SELL,4300000,762.44,-
28-APR-2010,ZEENEWS,Zee News Limited,CROSSLAND TRADING CO,SELL,1629040,15.75,-
28-APR-2010,ZEENEWS,Zee News Limited,TRANSGLOBAL SECURITIES LTD.,SELL,1918871,15.69,-
The key benchmark extended losses for the second straight day as world stocks reeled from rating downgrades on Greece and Portugal. The BSE 30-share Sensex was provisionally down 285.27 points or 1.61%, off close to 240 points from the day's high and up close to 60 points from the day's low. Metal and realty stocks led the decline. All the sectoral indices on BSE were in the red. The market breadth was weak.
Index heavyweight Reliance Industries (RIL) slumped more than 4%, extending recent losses triggered by disappointment from Q4 result. India's largest mobile services provider by sales Bharti Airtel dropped in volatile trade as Q4 net profit fell.
Stocks were volatile as traders rolled 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. The market slumped in early trade as global stocks reeled from rating downgrades on Greece and Portugal. The market cut losses in morning trade. The market moved in a range in mid-morning trade. A sell-off gripped the market in mid-afternoon trade as European stocks extended losses. The market trimmed losses in late trade.
The Q4 March 2010 corporate earnings announced so far have been good. The combined net profit of a total of 372 companies rose 27.6% to Rs 28545 crore on 37.5% rise in sales to Rs 241872 crore in the quarter ended March 2010 over the quarter ended March 2009.
European equities extended losses on Wednesday, with financial shares sliding further following downgrades of Greek and Portuguese debt on Tuesday, when global stock markets fell sharply. The key benchmark indices in France, Germany and UK fell by between 0.64% to 1.86%.
Stocks in Portugal and Spain fell sharply and Greek shares fell again on Wednesday, with the ASE Composite index down another 0.4% to 1,688.84, after dropping 6% in the previous session as lenders such as Alpha Bank tumbled. Greece's securities regulator banned short selling for two months.
Asian stocks fell as renewed worries about Greece's debt problems led to sharp decline in US stocks on Tuesday. The key benchmark indices in Hong Kong, China, Japan, South Korea, Singapore, Taiwan and Indonesia were down by between 0.26% to 2.57%.
Concerns about Europe intensified when global rating agency Standard & Poor's on Tuesday downgraded Greece's debt to junk status and hit Portugal with a two-notch rating cut. Greece has already admitted it can't pay debts due shortly and has asked for a bailout from European neighbors and the International Monetary Fund.
US index futures reversed early gains. Trading in US index futures indicated that the Dow could fall 34 points at the opening bell on Wednesday 28 April 2010.
US stocks tumbled on Tuesday as downgrades of Greece and Portugal fueled fear about euro-zone economic stability, and a grilling of Goldman Sachs on Capitol Hill heightened the possibility of financial reforms. The Dow Jones Industrial Average dropped 213.04 points, or 1.90% to 10,991.99. The Standard & Poor's 500 Index slid 28.34 points, or 2.34% to 1,183.71. The Nasdaq Composite Index lost 51.48 points, or 2.04% to 2,471.47.
The US Federal Reserve is likely to keep interest rates near zero and it is also likely to repeat its vow of an extended period of very low rates at the conclusion of a two-day policy meeting on Wednesday, 28 April 2010. The Fed has kept the Fed funds rate in a range of zero to 0.25% since December 2008.
Back home, the Congress-led United Progressive Alliance government sailed through a trial of strength in parliament on Tuesday by winning the cut motion demanded by opposition parties against an unpopular hike in fuel and fertiliser prices with smaller parties giving it a leg up to achieve a surprisingly strong victory. Prime Minister Manmohan Singh's government was backed by 289 MPs in the 545-strong Lok Sabha, while the opposition managed 201 votes. Two parties walked out on the vote, adding to abstentions. However, major reforms may take a backseat for the some time to come as there is a stiff resistance by the opposition on fears it may hurt the poor.
On the macro front, the latest data showed infrastructure sector output jumped 7.2% in March 2010 from a year earlier, higher than an upwardly revised rise of 4.7% in February 2010.
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, the IMD said on 23 April 2010. 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.
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 had surged recently after the Reserve Bank of India (RBI) raised interest rates on 20 April 2010 by less than some economists had expected and forecast inflation will slow. From a recent low of 17400.68 on 19 April 2010, the BSE Sensex jumped 345.60 points or 1.98% to 17745.28 on Monday, 26 April 2010. Optimism about the fourth quarter corporate earnings and hopes of a normal monsoon this year aided the rally
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.
As per provisional figures, the BSE 30-share Sensex was down 285.27 points or 1.61% to 17405.35. The Sensex fell 47.03 points at the day's high of 17,643.59 in early trade. The index declined 346.04 points at the day's low of 17,344.58 in late trade.
The S&P CNX Nifty was down 88.80 points or 1.67% at 5,219.55 as per provisional figures.
The BSE Mid-Cap index fell 1.52% and the BSE Small-Cap index fell 1.94%.
The market breadth, indicating the overall health of the market, was extremely weak. On BSE, 2212 shares declined as compared with 681 that rose. A total of 72 shares were unchanged.
From the 30 share Sensex pack, 26 stocks fell while the rest gained.
BSE clocked turnover of Rs 4767 crore, higher than Rs 4512.53 crore on Tuesday, 27 April 2010.
Index heavyweight Reliance Industries (RIL) fell 4.14%, with the scrip declining for the third straight day as net profit rose a lower-than-expected 29.9% to Rs 4710 crore in Q4 March 2010 over Q4 March 2009. The Q4 result was announced after trading hours on 23 April 2010.
The company today said it had discovered oil in one of its exploration blocks in the Cambay basin on India's western coast, the block in which it holds 100% controlling interest. This is its fourth oil discovery in the region.
India's largest mobile services provider by sales Bharti Airtel slipped 1.11% to Rs 294.95 in choppy trade as consolidated net profit as per US accounting standards declined 8% to Rs 2055 crore on 2% growth in total revenue to Rs 10056 crore in Q4 March 2010 over Q4 March 2009. The result was announced at the onset of the trade today. The company said a strong free cash flow of Rs 5448 crore resulted in net debt turning into a positive net cash position of Rs 1281 crore as at 31 March 2010
Bharti Airtel Chairman & Managing Director Sunil Bharti Mittal said at the time of announcing Q4 March 2010 results that Bharti Airtel continues to be strongly positioned in India despite a hyper competitive market.
Bharti's total customer base stood at 137.60 million as on March 2010, a rise of 41% over March 2009. The average monthly churn for the quarter ended 31 March 2010 was 1.5% (1% voluntary churn and 0.5% company initiated churn) for its post-paid segment and 5.9% for the prepaid segment.
Diversified Jaiprakash Associates fell 4.28% and was the top loser from the Sensex pack.
Unitech fell 3.93%, with the scrip falling for the third straight day. 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.
India's largest realty player by sales DLF fell 3.2% with the scrip declining for the third straight day after the company said on Saturday 24 April 2010 that its subsidiary, Caraf Builders & Constructions, acquired 24.52 crore compulsorily convertible preference shares (CCPS) in group company DLF Assets from PE firm SC Asia for Rs 3,084.68 crore. With this, Caraf's stake in DLF Assets has risen to 91.90%. DSIPL (a company owned by SC Asia) would continue to hold 2.72 crore CCPS, representing an economic interest of 4.59% in DAL, it said.
Among other realty stocks, Sobha Developers, HDIL, Phoenix Mills, Orbit Corporation and Indiabulls Real Estate fell by between 3.07% to 6.67%.
Metal stocks declined after LMEX, a gauge of six metals traded on the London Metal Exchange, slumped 4.64% on Tuesday, 27 April 2010. Ispat Industries, Hindalco Industries, Sesa Goa, National Aluminum Company, Hindustan Zinc, Steel Authority of India fell by between 0.86% to 4.68%.
India's largest private sector steel maker by sales Tata Steel fell 3.52%, with the scrip declining for the second straight day. 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.
Copper maker Sterlite Industries fell 1.95%, with the scrip declining for the second straight day. The stock had jumped 5.95% on Monday after the company's board recommended issue of bonus shares in the ratio of 1:1 and a 2-for-1 stock split at the time of announcing Q4 results during trading hours on Monday, 26 April 2010. Consolidated net profit surged 130.82% to Rs 1380.90 crore in Q4 March 2010 over Q4 March 2009.
IT stocks also fell on profit taking. India's third largest IT exporter by sales, Wipro fell 1.17% with the stock declining for the second straight day. The board announced a 2:3 bonus late last week. 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 on Friday, 23 April 2010.
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 fourth quarter. There was a good recovery in technology and telecom verticals. The business environment is returning to normal, he added.
India's largest information technology services provider by sales, TCS, fell 1.93%, on profit taking. 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 on 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, fell 1.5%.
HCL Technologies fell 0.71%, with the stock declining for the second straight day after recent strong gains triggered by robust 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 21 April 2010.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 2.04% on profit taking after registering gains for three days in a row. 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 fell 0.49%, with the scrip falling for the second straight day.
Bank of Baroda rose 1.55%, reversing early losses, on decent Q4 results. Net profit rose 20.4% to Rs 906.28 crore in Q4 March 2010 over Q4 March 2009. The stock hit a all time high of Rs 689 today. The result was announced during trading hours today.
Dabur India rose 1.18% as net profit rose 29.72% to Rs 135.28 crore in Q4 March 2010 over Q4 March 2009. The result was announced during trading hours today.
Talwalkars Better Value Fitness Ltd.
123 to 128
23 to 24
54 to 56
65 to 75
3 to 3.50
Mandhana Industries Ltd.
120 to 130
7 to 8
Tara Health Foods
180 to 190
4 to 4.50
Sutlaj Jal Vidhut Nigam
23 to 26
102 to 117
Headlines for the day:
Ranbaxy to launch 100 new products this year
Govt may sell stake in IOC by March
Events for the day:
Major corporate action
Tara Health Foods IPO opens today
Maithan Alloys to consider bonus issue
Tarapur Transformers IPO closes today
Results: Bank of Baroda, Dabur, Bharti Airtel
For more events, log on to Sharekhan.com
The European shares fell at their fastest rate in five months on Tuesday, weighed by ratings agency Standard & Poor's downgrade of Greek and Portuguese debt.
The US equities tumbled Tuesday with stocks posting their worst day in the last three months after downgrades of Greece and Portugal fueled fears of stability of the euro-zone nations.
In today's trade, the Asian markets were trading on a negative note. At the time of writing this report, SGX Nifty was trading 69 points lower.
The downgrade of Greece and Portugal by the credit rating agency Standard & Poor's has feared the euro zone's debt problems and that has resulted in sell-off across the globe. Owing to this, the Indian equities may open gap-down and remain negative for rest of the day. Ahead of the Federal rate meet decision to be announced today and the F&O expiry tomorrow, the market is expected to remain volatile. The dollar depreciation against the rupee will be good for the Indian market, which offers the higher growth doubled with rupee appreciation that augers well for the investors in US. This must have triggered the heavy buying by the foreign institutional investors (FIIs) post the budget.
In the commodity space, the crude oil prices plunged over 2% after Greece and Portugal's debt downgrade fueled concerns, with the Nymex light crude oil for the May series down by $1.76 per barrel, whereas in the metals space, the Comex Gold for the May series rose by $8.20 and the Comex Silver for the May series was down by $0.22 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On April 27, 2010, the FIIs were the net buyers of the Indian stocks to the tune of Rs565.80 crore, whereas the domestic mutual funds, on April 26, 2010, were the net sellers of the stocks to the tune of Rs28.80 crore.
The government may sell stake in IOC by March 31, as part of a plan to raise a record Rs400bn from asset sales and use the proceeds to reduce the government’s budget deficit. (BS)
ONGC and IOC are set to get approval from the government to spend five times more on acquisitions, giving them greater freedom to compete with China for assets. (BS)
NPCIL and NTPC have entered into an agreement to set up nuclear power projects, with the latter holding 49% stake in the JV. (BS)
NTPC and SAIL are expected to be permitted to make US$1.1bn takeovers without government clearance. (BS)
SAIL and Posco, who are in talks to jointly set up a steel plant in Jharkhand, are also exploring forming another JV to build a Rs10bn specialized steel mill in Maharashtra. (BS)
TCS has been shortlisted for another tender by the ministry of overseas Indian affairs along with Wipro and Spanco. (ET)
Jindal Steel and Power and Australian coal miner Rocklands Richfield (RCI) plan to form a 50:50 joint venture company to develop a coal-brick project at Raigarh in Chhattisgarh. (ET)
Reliance Communications has joined hands with GetJar, the world's second largest mobile applications store, for providing its subscribers with access to nearly 65,000 free mobile applications. (BL)
Power Finance Corporation plans to raise US$1bn through overseas borrowings to increase its lending to local companies. (ET)
Power Finance Corporation plans to approach the RBI to seek the status of an infrastructure finance company. (BL)
IDFC board approved, in principle, a plan to raise up to Rs35bn through Tier-I and Tier-II instruments. (BS)
Unitech stated that it sold 16.6mn sq ft of area in the country last financial year. (BS)
Cipla ties up with Manipal Group promoted-Stempeutics Research to market stem cell-based therapies. (BS)
Ranbaxy plans to launch 100 new products this year and target to become the biggest player in the domestic market with 6% market share in the next three years. (BS)
The Godrej group is on the lookout for personal care companies manufacturing toilet bar soaps in Latin America. (BL)
The NYSE has given Satyam Computer time till October 15, 2010 to file its annual report and remain listed on the US bourse till then. (BS)
The Ruias of Essar Group have injected US$293mn in Essar Oil by subscribing to GDS to part finance its US$1.7bn expansion plans. (ET)
Bharat Forge has got the land for its upcoming SEZ at Khed near Pune, but environmental clearances are pending. (BL)
Bharat Forge expects to start the marketing effort for the first phase of its 10,500 acre SEZ at Khed in the next few months. (ET)
Patni Computer Systems signed a definitive agreement to acquire CHCS Services, a wholly-owned subsidiary of Universal American Corp. (BS)
Patni Computer Systems bagged a multi-million dollar five-year agreement for providing policy administration services to NYSE listed Universal American Corp. (BL)
Lupin is looking to buy drug companies in Brazil and Mexico as an entry strategy to the two emerging markets. (BL)
Divi's Laboratories has secured approval from the Development Commissioner, SEZs, for setting up a new manufacturing unit for pharma ingredients near Visakhapatnam. (BL)
Infinite Computer Solutions has signed the R-APDRP with Uttarakhand Power Corporation valued at Rs1.3bn. (BL)
Government is assured of Rs350bn from sale of 3G telephony spectrum, as bids for pan-India operations rose to Rs86.6bn on the 15th day of auction. (ET)
The government informed the Rajya Sabha that direct tax collection during FY10 has exceed the budget estimate and will be very close to the revised estimate of Rs3870bn. (ET)
The MET predicts the monsoon to arrive 10 days before the usual date. (BS)
Six major infrastructure industries which constitute the core sector registered growth of 7.2% in March. (BS)
The country added 20mn new mobile users in the month of March, taking the user base to 584.3mn. (BS)
Exporters would now have to pay more for their shipments as most airlines, including state run Air India, have raised freight rates between 15-30% for both general cargo and perishables. (BS)
Even as the steel ministry is aggressively pitching for an increase in export duty on iron ore, the commerce and industry ministry is considering a minor increase of duty on exports of iron ore lumps only. (BS)
The government indicated that it was open to changing FDI norms for multi-brand retail sector. (BS)
The RBI governor said that India will not be averse to using an instrument such as Tobin Tax to curb excessive capital inflows. (BL)
New bank wage agreement will give staff Rs48bn. (BL)
The FIPB has decided that companies bringing in FDI by issuing warrants will have to convert them into fully paid-up equity within 12 months of the date of issue, or face legal action. (FE)
"Some people change their ways when they see the light; others when they feel the heat." - Caroline Schoeder.
It is time for the bulls to change their way a bit, at least for today, as heightened sovereign debt troubles in Europe has sent global markets in a bit of a tizzy. Risk appetite has taken a beating amid concerns that the financial mess in "PIGGS" could spread to more European nations and may hurt the global economic recovery. The Goldman Sachs fraud case and worries about more tightening in China are among the other pressure points.
To add to the volatility we have the F&O expiry on Thursday. The Fed will keep rates steady later today. Still, the markets will be eager to know if there is any change in its language. Given the weak global backdrop, the Indian market too will witness a gap-down opening. Whether we recover from this global jolt will hinge on how European markets open.
One will also have to keep a close tab on the latest developments in the region. The Nifty has a good support at 5200 but may fall below it if there is any further deterioration in the global sentiment. It is time to be a little guarded and wait for the turbulence to get over. A selective and careful approach is the need of the hour.
Results Today: Alfa Laval, Alstom Projects, Balaji Telefilms, Balrampur Chini, Bharti Airtel, Bank of Baroda, Canara Bank, Dabur India, Eicher Motors, Essel Propack, Exide, GHCL, Ingersoll Rand, JSL, Kesoram, LIC Housing, Marico, Mindtree, Patni and Shoppers Stop.
FIIs were net sellers of Rs1.64bn on Tuesday on a provisional basis. Local funds were net buyers of Rs10.9mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs1.08bn. On Monday, FIIs were net buyers of Rs5.65bn in the cash segment, as per the SEBI web site.
US stocks got pounded on Tuesday, with the key benchmarks falling to their worst finish in nearly three months after Standard & Poor's cut Greece's debt rating to junk and lowered Portugal's debt rating, stoking fears of a wider debt problem in the eurozone.
The Dow Jones Industrial Average tumbled 213 points, or 1.9%, closing below 11,000, a key psychological level. The Dow ended the previous session at its highest point in 19 months. The slide was the Dow's biggest one-day point drop since July 15, 2009, when it lost 257 points.
The S&P 500 index fell 28 points, or 2.3%, closing below 1,200, a psychological level traders look at. The Nasdaq Composite slid 51 points, or 2%, to 2,471.47.
The Dow has ended higher for eight straight weeks, its best winning streak since January 2004. The Nasdaq has also been on the rise for 8 weeks, while the S&P 500 rose for 7 of the last 8 weeks.
Prior to Monday's selloff, the Dow and S&P 500 were just shy of 19-month highs, while the Nasdaq was at the highest point in nearly two years.
Goldman Sachs gained 1%, but other bank shares plunged, with the KBW Bank index losing over 3%. Sliding oil prices dragged on energy stocks, including Dow components Exxon Mobil and Chevron.
Declines were broad based, with 28 of 30 Dow components falling. In addition to the Dow's financial and energy components, other losers included heavily weighted tech stocks.
The dollar gained versus the euro and fell against the yen.
US light crude oil for June delivery fell $1.76 to settle at $82.44 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $8.20 to settle at $1,162.20 per ounce.
Treasury prices rallied, lowering the yield on the 10-year note to 3.70% from 3.82% late on Monday.
US stocks were flat to lower in the morning as Goldman Sachs sought to defend itself on Capitol Hill against allegations it profited from the housing market collapse. But news that ratings agency S&P had cut Greece and Portugal's debt ratings overshadowed the Goldman Sachs testimony.
Fear was also reflected in the so-called flight to safety as investors poured money into bonds and the euro fell to a new low for the year.
That was reflected by a jump in the CBOE Volatility index, Wall Street's so-called fear gauge. It spiked 24%, hitting the highest point since February. Typically a surge in the VIX corresponds with a selloff in stocks.
S&P cut its ratings on Greece's long-term debt status to "BB+" with a negative outlook from "BBB+." The double-B plus rating is considered to be speculative or "junk," and reflects the ratings agency's concern about Greece's long-term ability to get out the current fiscal crisis. S&P cut Greece's short-term debt even lower.
S&P also cut Portugal's long-term debt ratings by two notches and the short-term rating by one notch, but did not lower the debt to junk status. The cost of insuring both Greece and Portugal's debt rose to record highs following the news.
Worries about the fiscal health of Greece and the other so-called PIIGS have weighed on the global stock markets for most part of the year amid worries that the debt problems could worsen and destabilize the euro.
Goldman Sachs CEO Lloyd Blankfein and other executives from the Wall Street bellwether were answering lawmakers' questions as part of a Senate hearing on the role investment banks played in the financial market meltdown in 2008.
Blankfein, in prepared testimony, denied that the company sought to profit from the housing market collapse, an allegation lawmakers have made recently.
Fabrice Tourre, the Goldman Sachs trader charged in the Securities and Exchange Commission's fraud case against Goldman Sachs defended himself, saying he categorically denied the SEC's allegations.
In the day's economic news, the Case-Shiller 20 city home price index rose 0.6% in February versus a year earlier, the first rise on an annual basis in three years. However, economists were expecting a bigger gain of 1.1%. Prices fell 0.7% in January.
Consumer confidence surged in April, according to the Conference Board, with its index rising to 57.9 from 52.3 in March. Economists thought it would rise to 53.5.
Policymakers need to put a plan in place to get spending in line with revenue so as to close the unsustainable fiscal gap threatening the recovery, Federal Reserve Chairman Ben Bernanke said. Bernanke spoke at the first meeting of President Obama's bipartisan debt commission.
The Fed policymakers are meeting on Tuesday and on Wednesday with an announcement on interest rates and the outlook due Wednesday afternoon.
The Fed is expected to hold interest rates steady at historic lows near zero. However, what the US central bank policymakers say in the accompanying statement about the outlook for the economy and interest rates will be scrutinized.
Ford Motor reported a better-than-expected first-quarter profit that rose from a year earlier. But shares slumped after the company's revenue growth was shy of expectations.
After the market closed on Monday, Texas Instruments reported quarterly sales and earnings that topped estimates and rose from a year earlier. Shares were slightly lower.
3M reported higher quarterly sales and earnings that topped estimates thanks largely to strong international sales. The Dow component, considered to be a good barometer of the economy because of the breadth of its business, also boosted its 2010 profit forecast.
However, 3M said growth in Asia and Latin America are the drivers of that forecast and that the US economic recovery will be patchy. Shares gained 0.6%.
Fellow Dow component DuPont also reported higher quarterly sales and earnings that topped expectations, and lifted its 2010 profit forecast. But investors took a sell-the-news response and sent shares nearly 4% lower.
Across the Atlantic, European shares plunged, led by Greek stocks as the specter of debt restructuring continues to hang over the Hellenic Republic with S&P cutting their ratings on both Portugal and Greece.
After Monday's rise of 1%, the Stoxx Europe 600 index plummeted 3.1% to 261.65, the worst single-day percentage drop since Nov. 26, as S&P cut Greece's debt rating to junk territory, and also cut Portugal's debt rating two notches. S&P threatened to cut both ratings further.
The Greek ASE Composite Index tumbled 6% to 1,698.68 - with that drop coming before S&P's latest downgrade. Greek stocks had been under pressure on worries that the country will restructure its debt. S&P expects holders of Greek debt to recover 30 to 50 cents on the dollar. Greek banks, which hold much of the government paper, plunged.
The PSI 20 index dropped 5.4% to 7,152.42 as S&P cut Portugal's rating to A- from A+, saying the government could struggle to stabilize its relative high debt ratio. "We believe past dependence on now more scarce external financing as a source of economic growth, and weak external competitiveness add to the likely adverse growth dynamics in Portugal," S&P said.
In Madrid, Spain's IBEX 35 index fell 4.2% to 10,480.90, and the FTSE MIB dropped 3.3% to 22,036.40 in Milan.
The French CAC-40 index dropped 3.8% to 3,844.60, the German DAX index lost 2.7% to 6,159.51 and the U.K. FTSE 100 index fell 2.6% to 5,503.52.
After being on an upswing for five straight trading sessions, bulls finally took a breather on Tuesday as traders and investors preferred to book some profits around the 5350 levels. Weakness in the Asian and the European markets cast a shadow on local sentiment. "Markets players were also cautious with the F&O expiry and Fed meet on the horizon. Slightly disappointing results from the index heavyweights like RIL, ICICI Bank and Maruti added to the jitters", says Amar Ambani Vice President IIFL.
The BSE Sensex slipped 55 points to end at 17,691 and NSE Nifty slipped 15 points to close at 5,308. Among the 30 components of Sensex, 20 ended in the negative terrain and 10 were in the green.
Markets in Asia ended in the red; the Nikkei in Japan ended higher by 0.4%, Australia's S&P/ASX was almost unchanged, the Hang Seng index in Hong Kong was down 1.5% and Shanghai SE Composite ended lower by 2%.
On the other hand, European indices were trading with negative bias, the DAX in Germany was down 0.6%, the CAC 40 index in France was down 1.5% and the FTSE in the UK was down 1%.
Coming back to India, among the BSE sectoral indices, the BSE Realty index was top loser, the index lost 1.5%, followed by BSE Banking index down 0.9% and Auto index down 0.8%. However, the Mid-Cap and the Small-cap index ended flat.
Outside the frontline indices, the big losers in the broader market were Jain Irrigation, Concor, IDFC and Yes Bank. On the other hand, gainers included GMR Infra, LITL, IRB Infra and GSPL.
Shares of Maruti Suzuki slipped by 3.8% to end at Rs1283 after the company posted a net profit of Rs6.56bn for the quarter ended March 31, 2010 compared to Rs2.43bn in quarter ended March 31, 2009. For the reporting quarter, total income increased to Rs85.03bn from Rs65.38bn in the quarter ended March 31, 2009.
Shares of Power Finance slipped 1.7% to end at Rs276. The company announced Q4 results with net profit at Rs5.98bn for the quarter ended March 31, 2010 as compared to Rs10.05bn for the quarter ended March 31, 2009. Total Income has increased from Rs18.19bn for the quarter ended March 31, 2009 to Rs21.04bn for the quarter ended March 31, 2010.
The Unaudited results for the Year ended March 31, 2010. The Company posted a net profit of Rs23.55bn for the year ended March 31, 2010 as compared to Rs19.69bn for the year ended March 31, 2009. Total Income has increased from Rs65.83bn for the year ended March 31, 2009 to Rs80.73bn for the year ended March 31, 2010.
Shares of Yes Bank ended lower by 2% to end at Rs275. The company announced its Q4 results with a net profit of Rs1.4bn for the quarter ended March 31, 2010 as compared to Rs801.1mn for the quarter ended March 31, 2009. Total Income has increased from Rs6.56bn for the quarter ended March 31, 2009 to Rs8.24bn for the quarter ended March 31, 2010.
The Bank posted a net profit of Rs4.77bn for the year ended March 31, 2010 as compared to Rs3.03bn for the year ended March 31, 2009. Total Income has increased from Rs24.38bn for the year ended March 31, 2009 to Rs29.45bn for the year ended March 31, 2010.
Infinite Computer Solutions announced that it signed the Restructured Accelerated power Development Reform Programme (R-APDRP) with Uttarkhand power Corporation. Shares of Infinite Solutions advanced by 1% to end at Rs184. The scrip opened at Rs180 it touched an intra-day high of Rs188 and a low of Rs179 and recorded volumes of over 96,000 shares on BSE.
Shares of Divis Laboratories slightly slipped by 0.7% to end at Rs691. The company announced that it received letter of approval from the Development Commissioner, Visakhapatnam Special Economic Zone, for setting up and development of a new manufacturing Unit in Special Economic Zone for pharma ingredients at Vill., Chippada, Bheemunipatnam Mandal, Visakhapatnam Dist. The Project cost is estimated at Rs2bn.
Gold shines but silver turns pale
Precious metal prices ended mixed on Tuesday, 27 April 2010 at Comex. Downgrade of Greek and Portuguese debt by Standard & Poor's led to ignition of euro zone problems once again. Gold ended higher but silver dropped. However, a strong dollar restricted yellow metals' gains.
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 Tuesday, gold for June delivery ended at $1,162.2 an ounce, higher by $8.20 (0.7%) an ounce on the New York Mercantile Exchange. Earlier during the day, it rose to a high of $1,165.3. Last week, gold ended higher by 1.5%. 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 5.9%.
On Tuesday, May Comex silver futures ended lower by 22 cents (1.2%) at $18.11 an ounce. Last week, silver lost 2.9%. For the month of March, silver ended higher by 5%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 6.5%.
In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.7%. Portugal's and Greece's ratings downgrade comes on top of months of worry over Greece's fiscal position and concerns that other countries in the periphery of the euro zone might also be suffering from the same ailments.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.
At the MCX, gold prices for June delivery closed higher by Rs 165 (0.98%) at Rs 16,937 per ten grams. Prices rose to a high of Rs 16,950 per 10 grams and fell to a low of Rs 16,726 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 171 (0.61%) lower at Rs 27,559/Kg. Prices opened at Rs 27,717/kg and fell to a low of Rs 27,504/Kg during the day's trading.