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Tuesday, May 04, 2010
Nifty May 2010 futures at a discount
Turnover surges
Nifty May 2010 futures were at 5,130.75, at a discount of 17.75 points compared to spot closing of 5,148.50. Turnover in NSE's futures & options (F&O) segment surged to Rs 76,512.24 crore from Rs 53,929.60 crore on Monday, 3 May 2010.
Reliance Industries (RIL) May 2010 futures were at discount at 1,016.55 compared to the spot closing of 1,019.20.
Tata Steel May 2010 futures were near spot price at 573.70 compared to the spot closing of 572.90.
Reliance Natural Resources May 2010 futures were near spot price at 67.30 compared to the spot closing of 67.20.
In the cash market, the S&P CNX Nifty shed 74.25 points or 1.42% at 5,148.50.
Metals selloff drags markets down
Today's major news
ULIPs set to get a makeover
Welspun arm to acquire stake in Saudi firm; the stock closes 1.03% lower
Vascon Engineers bags Rs105-crore projects; the stock ends 1.29% down
Click here for more stories
Global signals
European stocks fell on Tuesday, as mounting doubts over Greece’ bailout and fears of contagion to other euro zone countries upset investors. FTSE 100 was trading lower by 1.02%.
All the major Asian indices closed in the negative territory. Japan’s Nikkei was closed today. SGX Nifty closed 101 points lower.
US stock futures signal weak opening for the Wall Street ahead of earnings of Pfizer, Merck and News Corp, data related to retail sales for April and first voting in US Senate on a sweeping Wall Street reform bill.
Indian indices
The motormen’s strike threw Mumbai out of gear and Mumbaikers had to struggle without its lifeline — the suburban local trains. This disappointed the citizens of Mumbai. The Indian market was no exception as it fell for the second consecutive day and ended deep in red.
Positive economic data from the US helped the Indian market to trade in green. But this upmove did not last long and the market soon turned negative due to continuous selling in metal & realty stocks and rising concerns on Greece’ bailout plan.
Key benchmark index, Sensex that opened 14 points down at 17372 soon turned positive on the back of overnight gain in the US market and touched the day’s high of 17465 in morning trade. However, at noon the Sensex erased its morning gains and turned negative on the back of weak European markets. In the last hour of trading, further fall in European markets and intense selling in metal stocks helped the Sensex tumble further to touch the day’s low of 17102. At finishing line, the Sensex closed 249 points lower at 17137 and the Nifty ended at 5149, down by 74 points.
Market sentiment
The market breadth was extremely negative as declining stocks outnumbered advancing stocks. Of the 2,965 stocks traded on the BSE, 2,096 stocks declined, whereas 778 stocks advanced. Ninety one stocks closed unchanged.
Sectoral & stock screening
Bears drubbed all the sectoral indices, with the BSE Metal tumbling the most, posting loss of 3.93%. Metals saw huge selling pressure following sell-off in global metal companies' shares post Australia imposed 40% tax on mining companies. BSR Realty down 2.76%. BSE HC stood least affected among the 13 sector indices, with loss of 0.48%.
The star stock for the day was Divi’s Laboratories that was up by 3.95%, followed by Shriram Transport Finance Corporation that surged 3.51% and Bajaj Holdings that rose 2.58%. Among laggards Balrampur Chini Mills slid the most by 7.65%, followed by Reliance Natural Resources that fell 7.55% and JSW Steel that shed 6.40%.
Viewing volumes
Anil Dhirubhai Ambani group company and one of the top loser of the day, Reliance Natural Resources saw highest trading on fifth straight day with over 2.64 crore shares changing hands on the BSE, followed by wind turbine major Suzlon Energy (0.46 crore shares), steel maker Ispat Industries (0.45 crore shares), India’s second largest realtor Unitech (0.40 crore shares) and Sesa Goa (0.29 crore shares).
BSE Bulk Deals to Watch - May 4 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/5/2010 524448 Ahlcon Par ABHISHEK FINANCE CO.LTD. B 53193 54.97
4/5/2010 524448 Ahlcon Par HARUN TRADE LINKS PRIVATE LIMITED S 50000 55.00
4/5/2010 533163 Arss Infra Proj SMART EQUITY BROKERS PRIVATE LIMITED B 126144 1228.32
4/5/2010 533163 Arss Infra Proj SMART EQUITY BROKERS PRIVATE LIMITED S 126144 1228.82
4/5/2010 531591 Bampsl Sec PRAKASHCHAND GUPTA B 655212 1.27
4/5/2010 531591 Bampsl Sec PRAKASHCHAND GUPTA S 541800 1.23
4/5/2010 511607 Birla Shloka MANMOHAN DAMANI B 100000 76.15
4/5/2010 511607 Birla Shloka SAAKSHI SHARES PVT LTD S 71006 76.15
4/5/2010 530809 BNR Udyog VSL SECURITIES PVT LTD B 50000 13.17
4/5/2010 530809 BNR Udyog SANDEEP RATHI S 15000 13.17
4/5/2010 530809 BNR Udyog MAYURA RATHI S 41616 13.17
4/5/2010 531194 Brahmaputra Infra REMCOM SALES SERVICES PVT LTD S 45000 118.39
4/5/2010 526652 Cals Ref DEUTSCHE BANK AG S 45000000 0.42
4/5/2010 531337 Channel Guide ROOPSHRI FINVEST PVT LTD B 45000 16.13
4/5/2010 531337 Channel Guide DARI TEJAS K S 81212 16.16
4/5/2010 526546 Choksi Lab AJANI MUNIR B 40000 22.88
4/5/2010 526546 Choksi Lab NIRMAL INVESTMENTS B 50000 21.50
4/5/2010 526546 Choksi Lab GIRISH GULATI B 70300 21.50
4/5/2010 526546 Choksi Lab DHEERAJ KUMAR LOHIA B 50000 21.50
4/5/2010 526546 Choksi Lab NIRMALA LOHIA B 25000 21.50
4/5/2010 526546 Choksi Lab REKHA BHANDARI B 90501 23.64
4/5/2010 526546 Choksi Lab AJANI MUNIR S 40000 21.45
4/5/2010 526546 Choksi Lab MAHENDRABHAI AMBALAL PATEL S 50000 21.50
4/5/2010 526546 Choksi Lab ATULKUMAR MANSUKHLAL SHAH S 194164 21.50
4/5/2010 530859 Cosboard Inds PRIYANK VIKRAM DOSHI B 25810 21.48
4/5/2010 530859 Cosboard Inds HARSHA HITESH JAVERI S 128500 16.47
4/5/2010 531171 Devika Prot YOGESHJESHINGBHAISHAH B 201281 28.94
4/5/2010 531171 Devika Prot MRUNAL AGENCY & FINANCE PVT. LTD. B 174001 28.97
4/5/2010 531171 Devika Prot YOGESHJESHINGBHAISHAH S 261941 28.94
4/5/2010 517973 DMC Intl SHARK COMMUNICATION PVT LIMITED B 119096 19.84
4/5/2010 590094 FARMAX IND CHANDAN SHAH B 125000 136.29
4/5/2010 590094 FARMAX IND S K TRADING (S K CHOURASIA) B 200000 140.93
4/5/2010 590094 FARMAX IND SANJEET KUMAR CHOURASIA B 160000 141.90
4/5/2010 590094 FARMAX IND KAUSHIK SHAH SHARES & SEC. LTD B 119183 139.00
4/5/2010 590094 FARMAX IND SHRIRAM TIBREWALA B 263299 139.24
4/5/2010 590094 FARMAX IND CHANDAN SHAH S 135000 138.36
4/5/2010 590094 FARMAX IND S K TRADING (S K CHOURASIA) S 200000 140.52
4/5/2010 590094 FARMAX IND SANJEET KUMAR CHOURASIA S 160000 141.33
4/5/2010 590094 FARMAX IND KAUSHIK SHAH SHARES & SEC. LTD S 119183 139.12
4/5/2010 590094 FARMAX IND SHRIRAM TIBREWALA S 213299 136.93
4/5/2010 531524 ICSA India DHANANJAYA MONEY MANAGEMENT SERVICES PVT LTD B 449829 147.67
4/5/2010 531524 ICSA India DHANANJAYA MONEY MANAGEMENT SERVICES PVT LTD S 479829 147.64
4/5/2010 507438 IFB Agro ARUN KUMAR B 48323 109.68
4/5/2010 522165 Indsil Hydro D.J. SHAH SECURITIES PVT.LTD. B 48925 77.27
4/5/2010 532342 IT People TAIB BANK A/C TSML B 794733 17.29
4/5/2010 523467 Jai Mata Glass PINETREE PROPERTIES PVT. LTD B 100000 3.60
4/5/2010 526015 Kemrock Inds OPG SECURITIES P LTD B 96384 675.48
4/5/2010 526015 Kemrock Inds OPG SECURITIES P LTD S 96384 675.67
4/5/2010 513693 KIC Metaliks LANI MERCHANDISE PRIVATE LIMITED B 31799 100.00
4/5/2010 507598 KLRF ASHOK KUMAR JAIN B 27151 31.16
4/5/2010 531602 Koffee Break AJEET KHURANA B 500000 1.94
4/5/2010 531602 Koffee Break ACHALA ELECTRICALS PRIVATE LIMITED S 960000 1.94
4/5/2010 590111 MASTER PARVATHANENI MOUNISHA B 32110 36.49
4/5/2010 590111 MASTER PARVATHANENI MOUNISHA S 32100 36.69
4/5/2010 590111 MASTER RAMATULASI MORTHA S 26950 36.40
4/5/2010 523160 Morganite Cruc KAMAL KUMAR DUGAR AND CO B 22614 201.72
4/5/2010 523160 Morganite Cruc JAIKARNI HOLDINGS PVT LTD B 17500 203.00
4/5/2010 523160 Morganite Cruc KAMAL KUMAR DUGAR AND CO S 22614 203.01
4/5/2010 531834 Natura Hue Chem J V STOCK BROKING PRIVATE LIMITED B 42489 12.59
4/5/2010 531834 Natura Hue Chem J V STOCK BROKING PRIVATE LIMITED S 36158 12.64
4/5/2010 531834 Natura Hue Chem AHMED SAYED S 32301 12.52
4/5/2010 532986 Niraj Cement HARSH VARDHAN JAIN B 64912 50.95
4/5/2010 532986 Niraj Cement HARSH VARDHAN JAIN S 64912 50.75
4/5/2010 531496 Omkar Overseas ARVIND KASHMIRILAL PUNJABI B 29000 68.30
4/5/2010 531496 Omkar Overseas KARAN DIPAKBHAI SHAH B 33840 68.16
4/5/2010 531496 Omkar Overseas SUDHA ARVIND PUNJABI S 34975 68.32
4/5/2010 531496 Omkar Overseas KARAN DIPAKBHAI SHAH S 33840 67.13
4/5/2010 512097 Oregon Comm J M SONI CONSULTANCY B 11978 304.50
4/5/2010 512097 Oregon Comm KRUNAL GOPALDAS RANA B 10065 300.80
4/5/2010 512097 Oregon Comm MITESHGIRI CHANDANGIRI GOSWAMI B 13126 305.48
4/5/2010 512097 Oregon Comm ISMAIL SIAL B 5000 311.50
4/5/2010 512097 Oregon Comm J M SONI CONSULTANCY S 11978 304.54
4/5/2010 512097 Oregon Comm KRUPA SANJAY SONI S 29216 307.79
4/5/2010 512097 Oregon Comm MITESHGIRI CHANDANGIRI GOSWAMI S 9026 305.60
4/5/2010 512097 Oregon Comm ISMAIL SIAL S 5000 305.86
4/5/2010 532606 Parekh Alum KHIMJI RISHIA B 96847 268.18
4/5/2010 531869 Sacheta Metals BESTO TRADECOMM PRIVATE L IMITED B 45573 30.08
4/5/2010 533056 SARK SYS SHWETA JAIN B 133636 32.73
4/5/2010 533056 SARK SYS SHREE VIHAR HOUSING & DEVELOPERS (P) LTD S 75000 32.65
4/5/2010 530433 Shiva Fert NEELAM JAIN B 100000 88.67
4/5/2010 530433 Shiva Fert SANJEEV JAIN B 50000 90.75
4/5/2010 530433 Shiva Fert HITESH SHASHIKANT JHAVERI S 62777 89.39
4/5/2010 530433 Shiva Fert EMERGING STAR INVESTMENT PRIVATE LIMITED S 101140 88.60
4/5/2010 530433 Shiva Fert AASHKA CONSTRUCTION PRIVATE LIMITED S 114680 89.87
4/5/2010 524336 Shree Hari DHEERAJ KUMAR LOHIA B 30046 18.71
4/5/2010 524336 Shree Hari ANIL KUMARTIWARI S 65322 18.78
4/5/2010 526133 Supertex Inds PARAMESHWAR EXPORTS PRIVATE LIMITED B 788340 4.38
4/5/2010 526133 Supertex Inds SHYAM SUNDAR MISHRA S 1524207 4.34
4/5/2010 523455 Techtran Poly REENA JAIN B 350000 31.81
4/5/2010 532311 Tutis Tech KUMAR NARENDR B 120000 25.00
4/5/2010 532311 Tutis Tech SHARDA OMPRAKASH SARAOGI B 297005 24.45
4/5/2010 532311 Tutis Tech MANOJ PUNAMIYA S 381281 24.46
4/5/2010 519152 Vadilal Enter MADAN BHAGCHAND MELWANI B 5970 114.82
4/5/2010 531249 Well Pack Papers KAMLESH NAHAR B 400000 29.98
4/5/2010 531249 Well Pack Papers REKHA BHANDARI B 570000 30.29
4/5/2010 531249 Well Pack Papers SUNIL BHANDARI S 670000 29.96
4/5/2010 506313 Zenzy Technocrats JAYANTILAL HARILAL SHAH B 7550 6.25
4/5/2010 506313 Zenzy Technocrats TUSHAR SURESH SHAH S 7500 6.25
* B - Buy, S - Sell
NSE Bulk Deals to Watch - May 4 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-MAY-2010,FIEMIND,Fiem Industries Limited,AMON PANICHKIVALKOSIL,BUY,88000,119.91,-
04-MAY-2010,GLORY,Glory Polyfilms Limited,RAJ FINVEST,BUY,133742,23.82,-
04-MAY-2010,GRABALALK,Grabal Alok Impex Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,145486,61.35,-
04-MAY-2010,GRABALALK,Grabal Alok Impex Limited,KANCHAN CHHABRA,BUY,243311,64.74,-
04-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,KUMAR ARUN,BUY,45154,107.19,-
04-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,MANSI SHARE & STOCK ADVISORS PRIVATE LIMITED,BUY,47909,110.32,-
04-MAY-2010,ISFT,Intrasoft Tech. Ltd,MANISH RATILAL SHAH,BUY,131197,132.30,-
04-MAY-2010,KHAITANELE,Khaitan Electricals Ltd,KHAITAN LEFIN LIMITED,BUY,52200,97.88,-
04-MAY-2010,NILKAMAL,Nilkamal Limited,GKK CAPITAL MARKETS PRIVATE LI,BUY,75000,259.70,-
04-MAY-2010,NITINFIRE,Nitin Fire Protection Ind,A C SEKAR,BUY,20000,372.85,-
04-MAY-2010,PANORAMUNI,Panoramic Universal Limit,RAJ FINVEST,BUY,162691,247.56,-
04-MAY-2010,PARAL,Parekh Aluminex Limited,RISHI A KHIMJI,BUY,90000,269.92,-
04-MAY-2010,GLORY,Glory Polyfilms Limited,RAJ FINVEST,SELL,133742,23.51,-
04-MAY-2010,GRABALALK,Grabal Alok Impex Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,145486,61.66,-
04-MAY-2010,GRABALALK,Grabal Alok Impex Limited,ICG Q LIMITED A/C FCCB,SELL,166975,58.31,-
04-MAY-2010,GRABALALK,Grabal Alok Impex Limited,KANCHAN CHHABRA,SELL,243311,64.34,-
04-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,KUMAR ARUN,SELL,40000,110.40,-
04-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,MANSI SHARE & STOCK ADVISORS PRIVATE LIMITED,SELL,47908,110.27,-
04-MAY-2010,ISFT,Intrasoft Tech. Ltd,MANISH RATILAL SHAH,SELL,51197,129.88,-
04-MAY-2010,NITINFIRE,Nitin Fire Protection Ind,A C SEKAR,SELL,63918,367.90,-
04-MAY-2010,PANORAMUNI,Panoramic Universal Limit,RAJ FINVEST,SELL,162691,248.19,-
04-MAY-2010,SUBEX,Subex Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,325000,60.70,-
Investors continue to snub stocks in Asia
Focus shifts to credit-tightening steps in China and a windfall tax on mining firms in Australia
Investors continued to snub stocks in Asia as the focus has gradually shifted to the developments in the region and credit-tightening steps in China and a windfall tax on mining firms in Australia undercut the bullish cues from the US stocks. The Greece fiscal crisis seems to have been put on the backburner for the time being as German Chancellor Angela Merkel's cabinet agreed the unpopular 22.4-billion-euro contribution for the troubled Eurozone state. However, the trading was still generally lackluster in Asia with Japan's markets closed for a three-day holiday.
Stocks in Shanghai suffered from fresh moves by China's central bank to rein in bank lending, in a bid to prevent a damaging property bubble. The Shanghai market, which was closed on Monday for a public holiday, fell 1.05 per cent. Investors are concerned that Chinese moves to slow a soaring property market will undermine economic growth. On Monday, China increased the deposit reserve requirement ratio for most banks for the third time this year, the latest in a series of measures aimed at cooling the country's skyrocketing property prices.
The Australian market extended losses for the second successive day, as traders turned apprehensive about Government's proposal to consider a 40% tax on mining companies. Positive closing on Wall Street in the previous session on earnings and merger news failed to enthuse local market, and so was the decision of the Reserve Bank of Australia to increase interest rates by 25 basis points to 4.5%. The benchmark S&P/ASX200 Index plunged 48.40 points, or 1.01% to close at 4,737, while the All-Ordinaries Index ended at 4,753, representing a loss of 53.80 points, or 1.12%. Resources were hurt massively.
The Reserve Bank of Australia decided to hike its key interest rate by 25 basis points. As expected, the central bank raised the cash rate to 4.5%, effective May 5, 2010. The central bank had hiked the rate in March and April by 25 basis points. "The Board expects that, as a result of today's decision, rates for most borrowers will be around average levels. This represents a significant adjustment from the very expansionary settings reached a year ago," Governor Glenn Stevens said in a statement.
Thailand stocks turned higher though. The benchmark stock index surged 4.1 % after Prime Minister Abhisit Vejjajiva proposed a Nov. 14 date for fresh polls if anti-government protesters occupying central Bangkok accept his reconciliation plan and peace and stability is restored.
In Mumbai, the key benchmark indices slumped, extending losses for the second straight day, tracking losses in world stocks. The BSE 30-share Sensex was down 275.05 points or 1.58%, off close to 355 points from the day's high. Banking, capital goods, IT, metal and realty stocks fell. Index heavyweight Reliance Industries (RIL) declined in volatile trade. The market breadth was weak, in complete reversal of a strong breadth earlier in the day. All the sectoral indices on BSE were in the red. As per provisional figures, the BSE 30-share Sensex was down 275.05 points or 1.58% to 17,111.03. The index rose 78.74 points at the day's high of 17,464.82 in early trade. The Sensex lost 284.12 points at the day's low of 17,101.96 in late trade. The S&P CNX Nifty was down 83.70 points or 1.6% to 5,139.05 as per provisional figures
In other markets, Hong Kong's Hang Seng fell 48.31, or 0.2 % while Indonesia gained 0.2 %. South Korea's Kospi, slipped 0.1 % to 1,718.75 while Singapore dropped 1 %. Taiwan stocks pared 0.27% to make it an out rightly bearish session for Asia.
Yesterday, Signs of improving U.S. economic growth helped equities overnight. The Commerce Department said that personal spending rose 0.6 % in March, the biggest increase in five months while the Institute for Supply Management said U.S. manufacturing activity expanded last month at the fastest pace in nearly six years. The Dow Jones industrial average rose 143.22, or 1.3 %, to 11,151.83, its biggest point and %age gain since Feb. 16. The broader Standard & Poor's 500 index rose 15.57, or 1.3 %, to 1,202.26, and the Nasdaq composite index rose 37.55, or 1.5 %, to 2,498.74.
Light sweet crude oil futures for June delivery plummeted under $85 a barrel in electronic trading, extending losses in sync with the frail Asian equities. The euro fell to fresh one year lows after Germany approved its share of a 110-billion-euro rescue for debt-ridden Greece. The euro was at 1.3115 against the US dollar, extending the slide after breaking below 1.3200 levels.
Metal, cement shares lead 1.4% decline in Sensex
The key benchmark indices slumped, extending losses for the second straight day, as world stocks fell. The BSE 30-share Sensex shed 248.94 points or 1.43%, off close to 330 points from the day's high. Banking, capital goods, IT, metal and realty stocks fell. Index heavyweight Reliance Industries (RIL) declined in volatile trade. The market breadth was weak, in complete reversal of a strong breadth earlier in the day. All the sectoral indices on BSE were in the red. The Sensex has lost 421.57 points or 2.4% in the last two trading sessions from its close of 17,558.71 on 30 April 2010.
Stocks were volatile. The market trimmed gains in early trade as Asian stocks gave away initial gains. The market came off the lower level in morning trade. It regained strength in mid-morning trade. The intraday recovery proved short-lived. The market slipped into the red to hit fresh intraday low in early afternoon trade. The market extended losses to hit fresh intraday lows in afternoon trade after moving between the positive and negative terrain. The market witnessed a steep slide in mid-afternoon trade. The market extended losses in late trade.
NSE's volatility index India VIX rose for the second day in a row. The index rose 5.24% to 23.30 as stock prices fell on profit taking. The index had jumped 8.8% on Monday, 3 May 2010. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days. The index is calculated based on the S&P CNX Nifty options prices.
European stocks fell on Tuesday as markets remained unconvinced by Greece's bailout and on concerns debt crisis may spill to other euro zone countries. The key benchmark indices in France, Germany and UK fell by between 0.76% to 1.44%.
Euro-region ministers on Sunday, 2 May 2010, agreed to a 110 billion-euro ($146 billion) rescue package for Greece to prevent a default and stop the worst crisis in the currency's 11-year history from spreading through the rest of the bloc.
Asian markets fell on Tuesday on Greece's bailout worries and China's policy tightening. The key benchmark indices in Taiwan, Singapore, Indonesia, Hong Kong and South Korea were down by between 0.06% to 1.46%. Markets in Japan were closed for a public holiday.
In China, the Shanghai Composite fell 1.23% as a survey showed Chinese manufacturing slipped to a six-month low in April 2010, two days after policy makers reined in lending.
Australia's central bank raised its key cash rate by 25 basis points to 4.5% on Tuesday in line with market expectations.
Trading in US index futures indicated that the Dow could fall 46 points at the opening bell on Tuesday, 4 May 2010.
US stocks staged a broad rally on Monday after manufacturing, consumer spending and construction data instilled confidence that the economic recovery is gaining traction. The Dow Jones Industrial Average rose 143.22 points, or 1.30% to 11,151.83. The Standard & Poor's 500 Index gained 15.57 points, or 1.31% to 1,202.26. The Nasdaq Composite Index added 37.55 points, or 1.53% to 2,498.74.
Closer home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 1034 companies rose 28.2% to Rs 37960 crore on 30.7% rise in sales to Rs 350014 crore in the quarter ended March 2010 over the quarter ended March 2009.
A recent industry body report showed that business confidence in India improved on the back of economic recovery. The bi-annual Business Outlook Survey of the Confederation of Indian Industry (CII) showed that the Business Confidence Index (BCI) of the Indian industry increased by 1.5 points for the April-September 2010 period, compared to the past six months.
However, on the flip side, as per another survey a drop in new orders and output has resulted in the country's manufacturing expanding at a slower pace for the second month in a row. The HSBC Markit Purchasing Managers' Index, based on a survey of 500 companies, fell to 57.2 in April 2010 from 57.8 in March 2010. A figure of 50 separates contraction from expansion.
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 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.
The RBI at its annual policy review on 20 April 2010 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.
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.
The BSE 30-share Sensex fell 248.94 points or 1.43% to 17,137.14. The index rose 78.74 points at the day's high of 17,464.82 in early trade. The Sensex lost 284.12 points at the day's low of 17,101.96 in late trade.
The S&P CNX Nifty fell 74.25 points or 1.42% to 5,148.50.
The market breadth, indicating the overall health of the market, was weak. That was in complete contrast to strong breadth earlier in the day. On BSE, 782 shares advanced as compared with 2107 that declined. A total of 76 shares remained unchanged.
From the 30 share Sensex pack, 28 stocks fell while only two rose.
The BSE Mid-Cap index and the BSE Small-Cap index fell 1.75% each. Both these indices underperformed the Sensex.
All the sectoral indices on BSE were in the red. BSE Metal Index (down 3.93%), Realty index (down 2.76%), Capital Goods index (down 1.69%), Bankex (down 1.55%), and Consumer Durables index (down 1.47%), underperformed the Sensex. BSE Healthcare index (down 0.48%), Oil & Gas index (down 0.61%), IT index (down 0.93%), Auto index (down 1.03%), PSU index (down 1.08%), FMCG index (down 1.14%), and Power index (down 1.42%), outperformed the Sensex.
BSE clocked turnover of Rs 4713 crore, higher than Rs 3599.65 crore on Monday, 3 May 2010.
Index heavyweight Reliance Industries (RIL) fell 0.26% to Rs 1020.90. The stock was volatile. It hit a high of Rs 1039 and low of Rs 1008. RIL said 28 April 2010 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.
The Supreme Court may pronounce a judgement on the gas dispute between Reliance Industries (RIL) and Reliance Natural Resources (RNRL) shortly as the Chief Justice of India KG Balakrishnan retires on 11 May 2010. The RIL-RNRL gas dispute has been heard by a three-member Supreme Court bench led by the Chief Justice of India. The tussle relates to supply of gas to Reliance Natural Resources (RNRL) from the D6 block in the Krishna-Godavari eastern offshore fields of Mukesh Ambani-led Reliance Industries (RIL).
The dispute landed in the Supreme Court after seeing many twists and turns in lower courts. The two sides - RIL and RNRL had approached Supreme Court challenging a decision by the Bombay High Court. The Bombay High Court, in its order dated 15 June 2009 had directed that RNRL will get assured supply of 28 mmscmd of gas from RIL's Krishna-Godavari basin for 17 years at $2.34 per million British thermal units (mBtu). The gas price was 44.28% lower than the price fixed by the government for gas sale from the RIL block in the KG basin at $4.2 mBtu.
Jaiprakash Associates fell 3.01%, reversing early gains triggered by strong cement dispatches in the month just gone by. Cement shipments jumped 57% to 1.25 million tonnes in April 2010 over April 2009.
UltraTech Cement fell 3.01% and Grasim declined 3.71%, with both the counters reversing initial gains. The Aditya Birla Group's cement shipments rose 6.2% to 3.38 million tonnes in April 2010 over April 2009. UltraTech and Grasim are a part of the Aditya Birla Group.
India's largest cement maker by sales ACC fell 2.71% ahead of the release of its April cement shipment figures.
Capital goods stocks fell on profit taking. India's largest engineering and construction firm by sales Larsen & Toubro fell 2.34%, reversing early gains. The company announced during market hours today it has formed a joint venture with UK's Howden for axial fans and air pre-heaters businesses in India. The joint venture will invest around Rs 100 crore for setting up industrial facility and related infrastructure.
Among other capital goods stocks, Bharat Heavy Electricals, Thermax, ABB, SKF India fell by between 0.44% to 5.67%.
Metal and mining stocks fell as base metal prices declined. Copper led a decline in industrial metals on Tuesday, dropping to the lowest price in seven weeks in London and Shanghai as a survey showed Chinese manufacturing slipped to a six-month low in April 2010. National Aluminum Company, Hindalco Industries, Tata Steel, Sterlite Industries, Steel Authority of India, Hindustan Zinc, JSW Steel and Sesa Goa fell by between 1.67% to 6.4%.
Jindal Steel & Power fell 1.76%. Net profit jumped 54% to Rs 548.99 in Q4 March 2010 over Q4 March 2009. The result was announced during market hours today.
Interest rate sensitive banking shares declined on fears the Reserve Bank of India may resort to further monetary tightening to counter soaring inflation. India's biggest commercial bank in terms of branch network State Bank of India fell 0.82%, reversing early gains.
India's largest private sector bank by net profit ICICI Bank fell 2.41%, reversing initial gains. India's second largest private sector bank by net profit HDFC Bank fell 1.52%, with the stock falling for the second straight day.
But, India's largest mortgage lender by total income Housing Development Finance Corporation rose 0.52%, with the stock rebounding from Monday's small decline. Net profit rose 26.31% to Rs 926.38 crore on 8.06% fall in total income to Rs 2899.32 crore in Q4 March 2010 over Q4 March 2009. The result was announced during trading hours on Monday. The company's board approved a 5-for-1 stock-split at the time of announcing the fourth quarter results.
Realty stocks reversed initial gains on fears the Reserve Bank of India may resort to further monetary tightening to counter soaring inflation. Phoenix Mills, DLF, HDIL, Indiabulls Real Estate and Unitech fell by between 0.19% to 5.13%.
IT pivotals fell on profit taking. India's third largest software services exporter Wipro fell 2.12%. India's second largest software services exporter Infosys slipped 1.02%. India's largest software services exporter TCS fell 0.78%, reversing initial gains.
FMCG stocks fell on profit taking. Hindustan Unilever, ITC, Tata Tea and United Spirits fell by between 0.66% to 3.52%.
India's largest mobile services provider by sales Bharti Airtel fell 2.44%. India's second largest mobile services provider by sales Reliance Communications fell 1.34%.
But, Idea Cellular rose 0.24% as consolidated net profit rose 56.7% to Rs 266.60 crore on 6.2% growth in revenue to Rs 3347.70 crore in Q4 March 2010 over Q3 December 2009. The company announced the result after market hours on Monday, 3 May 2010.
Idea said the company increased its revenue market share in the cellular services industry rose to 12.7% in calendar 2009 from 11.4% in calendar 2008. Idea Cellular said its area specific strategy, improving capacity utilization, sophisticated management processes supported by a power brand underscore Idea's ability to ride out current rough times in the cellular services industry with overcapacity and hyper competition.
Auto shares declined on profit taking. India's largest bike maker by sales Bajaj Auto fell 1.17%. Total vehicle sales surged 85% to 3.13 lakh units in April 2010 over April 2009.
India's largest bike maker by sales Hero Honda Motors was flat. The company's two-wheeler sales rose 0.29% to 3.71 lakh units in April 2010 over April 2009. The flat sales for the month was due to acute shortage of batteries for over two weeks during the month due to problems at the suppliers' end.
The company said these issues have now been resolved and the company has been assured of supply batteries returning to normal within a week's time. The company added that it is witnessing a steadily growing demand for its products, and is ramping up production levels accordingly.
India's largest small car maker by sales Maruti Suzuki India fell 1.5%. Total sales rose almost 30% to 93,058 units in April 2010 over April 2009. Domestic sales rose 23.4% to 80,034 units.
India's largest utility vehicles maker by sales Mahindra & Mahindra declined 1.74%. The company's total vehicle sales rose 13% to 26,043 units in April 2010 over April 2009.
India's top truck maker by sales Tata Motors 1.56%, with the stock falling for the second straight day. Total sales including exports of commercial and passenger vehicles jumped 52% to 57,202 vehicles in April 2010 over April 2009. Domestic sales rose 49% to 54,065 units. Exports rose 148.8% to 3,137 units.
Cals Refineries clocked the highest volume of 7.2 crore shares on BSE. Reliance Natural Resources (2.64 crore shares), FCS Software (1.32 crore shares), Birla Power Solutions (84.02 lakh shares) and Well Pack Paper (48.51 lakh shares) were the other volume toppers in that order.
Reliance Natural Resources clocked the highest turnover of Rs 177.76 crore on BSE. Tata Steel (Rs 165.63 crore), Reliance Industries (Rs 165.42 crore), Sesa Goa (Rs 114.75 crore) and ARSS Infra (Rs 112.95 crore) were the other turnover toppers in that order.
Daily Grey Market Premiums - May 4 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Talwalkars Better Value Fitness Ltd. | 123 to 128 | 21 to 22 |
| Nitesh Estate | 54 to 56 | Discount |
| Tarapur Transformers | 65 to 75 | 2.75 to 3 |
| Mandhana Industries Ltd. | 120 to 130 | 5 to 5.50 |
| Tara Health Foods | 180 to 190 | Discount |
| Sutlaj Jal Vidhut Nigam (SJVNL) | 23 to 26 | 2 to 2.50 |
| Jaypee Infra | 102 to 117 | Discount |
Market may open higher on positive global cues
Higher Asian stocks may help domestic bourses recoup part of Monday's near 1% slide. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicate that the Nifty could rise 17.50 points at the opening bell. Most Asian stock markets were higher Tuesday after Wall Street's solid rise on Monday. The key benchmark indices in Hong Kong, Indonesia, Taiwan and South Korea rose by between 0.3% to 0.78%. But, Singapore's Straits Times fell 0.42%. Markets in Japan were closed for a public holiday.
In China, the Shanghai Composite fell 0.69% as the market reacted increase to banks' reserve requirement ratios announced over the weekend. The Chinese markets were closed on Monday, 3 May 2010, for the May Day holiday.
US stocks staged a broad rally on Monday after manufacturing, consumer spending and construction data instilled confidence that the economic recovery is gaining traction. The Dow Jones Industrial Average rose 143.22 points, or 1.30% to 11,151.83. The Standard & Poor's 500 Index gained 15.57 points, or 1.31% to 1,202.26. The Nasdaq Composite Index added 37.55 points, or 1.53% to 2,498.74.
Closer home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 988 companies rose 27.9% to Rs 37385 crore on 30.7% rise in sales to Rs 346089 crore in the quarter ended March 2010 over the quarter ended March 2009. Jindal Steel & Power, TTK Prestige, Syndicate Bank, Religare Technova, Orient Paper, HMT, Dwarikesh Sugar among others will announce their January-March 2010 quarter result today.
On a consolidated basis, Idea Cellular's net profit jumped 56.7% to Rs 266.60 crore in Q4 March 2010 over Q3 December 2009. The company announced the result after market hours on Monday, 3 May 2010.
A recent industry body report showed that business confidence in India improved on the back of economic recovery. The bi-annual Business Outlook Survey of the Confederation of Indian Industry (CII) showed that the Business Confidence Index (BCI) of the Indian industry increased by 1.5 points for the April-September 2010 period, compared to the past six months.
However, on the flip side, as per another survey a drop in new orders and output has resulted in the country's manufacturing expanding at a slower pace for the second month in a row. The HSBC Markit Purchasing Managers' Index, based on a survey of 500 companies, fell to 57.2 in April 2010 from 57.8 in March 2010. A figure of 50 separates contraction from expansion.
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 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.
The RBI at its annual policy review on 20 April 2010 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.
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.
The key benchmark indices ended a choppy trading session lower, halting a two-day advance on Monday, 3 May 2010, as weak global stocks weighed on investors' sentiment. The BSE 30-share Sensex fell 172.63 points or 0.98% to 17,386.08 on Monday.
As per provisional figures on NSE, foreign funds sold shares worth Rs 387.05 crore and domestic funds also sold shares worth Rs 107.01 crore on Monday.
Stocks likely to start postive
Headlines for the day:
SEBI cracks disclosure whip on credit rating agencies
JSW Steel net up, plans to buy US mine
Events for the day:
Major corporate action
Jaypee Infratech IPO closes today
Ex-date for stock split from Rs2/- to Re1/- of Vipul
Ex-date for dividend of Thomas Cook
Results: Syndicate Bank, Jindal Steel
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares rose on Monday, as upbeat US data boosted hopes of an economic recovery, although doubts persisted on Greece's ability to implement the tough austerity measures it has agreed to under a $147 billion bailout deal.
The US stocks staged a broad rally that drove the S&P 500 to its best day in two months on Monday after manufacturing, consumer spending and construction data instilled confidence that the economic recovery is gaining traction.
In today's trade, the Asian markets were trading on a positive note, except Shanghai Composite. At the time of writing this report, SGX Nifty was trading 14.5 points higher. The Janpanese market (Nikkei 225 index) is closed today on account of Greenery day.
Indian markets
The Sensex opened the May month on a weak note and shed nearly 1% or 173 points on Monday (May 13, 2010), as market sentiments across the globe got disrupted on concerns over the bailout package for debt-laden Greece and fiscal problems in the euro zone.
But as of now the global scenario is different and has taken up a U-turn towards recovery. The news of the robust US data (manufacturing, consumer spending and construction data), Europe recovering on Greek woes, Asian markets trading higher and positive cues around the globe may add fuel, which will help the Indian market to begin the session on a positive note.
However, the earnings of Syndicate Bank and Jindal Steel are later to be announced today — the stocks will be closely eyed by the investors.
Commodity cues
In the commodity space, the crude oil prices gained amid growing concerns over the spill and optimism about Greece's rescue plan, with the Nymex light crude oil for the June series up by $0.04 per barrel, whereas in the metals space, the Comex Gold for the June series rose by $2.60 and the Comex Silver for the June series was increased by $0.20 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 03, 2010, the foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs538.90 crore, whereas the domestic mutual funds, on April 29, 2010, were the net buyers of the stocks to the tune of Rs358.70 crore.
Crude stays strong
Economic data and oil spill news keep prices steady
Crude oil ended higher at Nymex on Monday, 03 May 2010. Economic data and news about oil spill at Gulf of Mexico kept prices strong. Prices rose despite a strong dollar.
On Monday, crude-oil futures for light sweet crude for June delivery closed at $86.19/barrel (higher by $0.04 or 0.1%). Oil for July delivery rose 79 cents, or 0.9%, to $89.15 a barrel. Last week, crude ended higher by 1.2%. For the month of April, crude rose 2.8%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 8.4%.
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 Monday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.5%. The dollar is up some 5.5% for the year.
The Commerce Department in US reported on Monday, 03 May 2010 that boosted by spending on autos, real U.S. consumer spending increased 0.5% to a record high in March, the highest in five months time. After-tax, inflation-adjusted incomes increased 0.2% in the month, with transfer payments such as unemployment benefits accounting for the gain. With spending growing much faster than incomes in March, the personal savings rate fell to 2.7%, the lowest since September 2008. The savings rate had peaked at 6.4% last May.
Prices also remained higher following news that the Institute for Supply Management's manufacturing index for April came above consensus, rising to 60.4% compared with 59.6% in March.
Meanwhile, emergency efforts to bring under control the growing amounts of oil leaking from a ruptured deepwater well in the Gulf of Mexico ranked as the biggest headline for the energy sector to start the trading week. The deadly explosion on the Deepwater Horizon drilling rig happened nearly two weeks ago.
Among other energy products on Monday, gasoline for June delivery added 4 cents, or 1.5%, to settle at $2.43 a gallon. Natural gas for June delivery rose 8 cents, or 2%, to $4 per million British thermal units.
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 higher by Rs 46 (1.2%) at Rs 3,860/barrel. Natural gas for May delivery closed at Rs 178.9, higher by Rs 2.9 (1.6%)
Gold ends at highest levels in five months
Greece's bailout package fails to erase all concerns
Precious metals remained higher at Comex on Monday, 03 May 2010 after Greece's aid package failed to erase all of euro zone's worries and dollar once again climbed up against the euro. Prices also rose riding on the back of strong economic data.
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 Monday, gold for June delivery ended at $1,183.3 an ounce, higher by $2.6 (0.2%) an ounce on the New York Mercantile Exchange. This was highest level for gold in five months. Gold for June delivery settled above $1,200 in early December, only to pull back to $1,172 area and dip as much as the $1,050 vicinity in early February. Last week, gold ended higher by 2.3%. For the month of April, gold ended higher by 6%. 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 7.9%.
On Monday, May Comex silver futures ended higher by 20 cents (1%) at $18.84 an ounce. Last week, silver ended higher by 2.4%. For the month of April, silver ended higher by 4.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 8.1%.
A bailout package worth some $146 billion for Greece was announced over the weekend, but it was not enough to restore investors' confidence about the euro-zone countries and the euro and investors again sought gold as a hedge against currency fears.
In the currency market on Monday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 0.5%. The dollar is up some 5.5% for the year.
The Commerce Department in US reported on Monday, 03 May 2010 that boosted by spending on autos, real U.S. consumer spending increased 0.5% to a record high in March, the highest in five months time. After-tax, inflation-adjusted incomes increased 0.2% in the month, with transfer payments such as unemployment benefits accounting for the gain. With spending growing much faster than incomes in March, the personal savings rate fell to 2.7%, the lowest since September 2008. The savings rate had peaked at 6.4% last May.
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 61 (0.35%) at Rs 17,186 per ten grams. Prices rose to a high of Rs 17,255 per 10 grams and fell to a low of Rs 17,133 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 239 (0.84%) higher at Rs 28,536/Kg. Prices opened at Rs 28,220/kg and rose to a high of Rs 28,560/Kg during the day's trading.
Daily News Roundup - May 4 2010
Pfizer and Wyeth sue Ranbaxy Laboratories in a US court for infringing the patent rights of Wyeth's drug, Rapamune. (BS)
United Spirits may spin off bottled water biz into separate subsidiary. (BS)
ArcelorMittal is in talks with SAIL for a possible tie-up. (BS)
MindTree outbid TCS, Infosys and Wipro to win Rs300mn contract from India’s Unique Identification Authority. (ET)
IOC plans to expand capacity of its Panipat refinery by 25% to 15mn tones from October. (BS)
L&T won contract worth over US$81.6mn from Abu Dhabi Ports Company. (BS)
Wockhardt has launched a generic version of Flomax in the US, on the first day of patent expiry. (BL)
Maruti Suzuki India reported sales of 93,058 units which marked a 29.7% increase over 71,748 vehicles sold in April 2009. (BL)
SBI extends teaser rate scheme by two months till June 30. (DNA)
The UK-based Gulfsands Petroleum has rejected a £381mn takeover offer made by Oil India and IOC combine. (ET)
GAIL Gas, a wholly owned subsidiary of GAIL (India), is planning to supply piped natural gas and CNG to tier-two cities. (BL)
Dabur India has decided to take a price hike in FY11 in the range of 4-5% on account of rising commodity prices. (DNA)
Ballarpur Industries and West Coast Paper raised product prices by Rs2,500-3,000 per ton. (BS)
NTT Data Corporation emerges as the most aggressive suitor and is in advanced talks with the promoters of Patni Computer to buy their combined 46.5% stake. (BS)
The Hinduja group is set to acquire private banking arm of Belgium's KBL for Rs89bn. (BS)
NMDC plans to start the construction work for its 3mtpa integrated steel plant in Bastar district of Chhattisgarh in October this year. (BS)
NTPC plans to add about 8,000MW generating capacity in the southern region by the end of the 12th Five Year Plan. (BS)
NTPC expects to acquire land for 2 mega projects in 6 months. (BS)
The communications ministry is set to ask Idea Cellular to surrender all six overlapping telecom licences it got following its acquisition of Spice Communications. (ET)
JSW Infrastructure & Logistics plans to invest Rs100bn to develop 5-6 ports in India in the next 10 years. (ET)
Uninor introduces a scheme that gives discounts to customers as they conclude a call, depending on the time and location. (BL)
Spencer's Retail, the retail arm of the RPG Group, plans to add 0.2mn sq ft of space in the current fiscal. (BL)
The Indiabulls group is staking claim for a 250-acre Navi Mumbai plot which it had lost to a consortium comprising Bhushan Steel and the Essel group in January this year. (BS)
Calyx Chemicals and Pharmaceuticals plans to raise Rs1bn via IPO. (BS)
The pan-India bid for 3G spectrum touched Rs95.21bn up 172% from Rs35bn the original base price. (ET)
The government said there was no blanket ban on import of Chinese telecom equipment. (ET)
India’s foreign exchange reserves last week shrank US$600mn to US$613mn in the week ended April 23. (ET)
RBI data shows net credit inflows to the real estate sector at just Rs8.4bn for the 11 months ending February 2010 compared to Rs336bn for same period up to February 2009. (BL)
Mumbai derailed, markets back on track
It comes from saying no to 1,000 things to make sure we don't get on the wrong track or try to do too much. - Steve Jobs.
The motormen’ strike may have thrown Mumbai out of gear but the bulls are set to chug ahead. The engine of course is strong global cues. US stocks rallied on the back of positive economic reports. Multi-billion-dollar M&As are back, which can be taken as a good tiding as well. Europe too recovered from the Greek woes. Asian markets are mostly up, though Chinese markets are down following last week’s monetary tightening.
Volume may be hit due to the railway motormen’s strike. Suddenly, thousands of opportunities may appear to come your way but make sure you don't get carried away. Tuesdays are often infamous to start one way and end the other way. Despite the positive outlook for the day, the overall prospects appear to be rather murky in the near term. The key indices have been choppy and rangebound for several weeks and that trend may not change for some time to come. Jindal Steel and Syndicate Bank will announce their results today.
Meanwhile, the Greek storm has subsided, at least for now. Hopefully, the massive EU-IMF bailout over three years will help Greece take a deeper look at what went wrong. For the time being though, the rescue has soothed frayed nerves over a possible sovereign default. Still, some worries persist over the health of the other members of the PIIGS nations. The Greece issue also shows how the stimulus-driven efforts to tame the recession can boomerang. Moral of the story, heavy deficit-ridden government balance sheets need urgent repairs.
The euro slid as investors shrugged off all positives, including agreement over fiscal aid for Greece and stronger-than-expected manufacturing activity in the eurozone. Some fears are still lurking that the bail-out package for Greece may face political hurdles and whether the debt-stricken nation can stick to tough austerity measures.
FIIs were net sellers of Rs3.87bn in the cash segment on Monday on a provisional basis, according to NSE web site. Local institutions were net sellers of Rs1.07bn. In the F&O segment, the foreign funds were net buyers of Rs4.38bn.
Indian markets witnessed a sharp cut on the first day of May after an anemic April. Weak global cues, coupled with sustained selling in index heavyweights like Infosys, RIL and ICICI Bank dragged the NSE Nifty to close below 5,250. "Sentiment was dampened after China raised the banks’ reserve requirement by 50 basis points to soften record lending and prevent potential asset bubbles", says Amar Ambani, Vice President Research IIFL.
The euro weakened after three successive days of advance, and European shares fell as the US$146bn EU-IMF bailout of Greece failed to calm concern about the region’s growing debt problems.
The BSE Sensex lost 173 points to end at 17,386 and NSE Nifty fell 52 points to close at 5,225. Among the 30 components of Sensex, 24 ended in the negative terrain and 6 ended in the green.
Markets in Asia ended in the red; the Nikkei in Japan was closed, Australia's S&P/ASX was down 0.5%, the Hang Seng index in Hong Kong was down 1.5% and Shanghai SE Composite also was closed.
On the other hand, European indices were trading mixed, the DAX in Germany was down 0.5%, the CAC 40 index in France was down 0. 9% and the FTSE in the UK was closed.
Barring the Consumer Durables all the other sectoral indices ended in the red. The BSE Metal index was top loser; the index lost 1.8%, followed by BSE IT index down 1.3% and BSE Capital Goods index down 1%. Even the Mid-Cap and the Small-cap index lost 0.4% and 0.3% respectively.
Outside the frontline indices, the big losers in the broader market were Central Bank, Allahabad Bank, GMR Infra and Jet Airways. On the other hand, gainers included EKC, Tulip Telecom, UCO Bank and Torrent Power.
HDFC announced that the board of directors recommended sub-division of equity shares of Rs10 each of the corporation. The Board approved the proposal to sub-divide the nominal value of the equity shares of the Corporation from Rs10 each to the nominal value of Rs2 each. It has also recommended a dividend of Rs36 per equity share of Rs10 each for the financial year 2009-10.
The stock ended lower by 0.5% at 2800. The scrip opened at Rs2799 it touched an intra-day high of Rs2849 and a low of Rs2793 and recorded volumes of over 0.81mn shares on NSE.
Kotak Mahindra Bank announced that the board of directors of the company will meet on May 11, 2010 to consider stock split. Shares of Kotak Mahindra Bank gained by 0.5% to end at Rs741. The scrip opened at Rs740 it touched an intra-day high of Rs750 and a low of Rs734 and recorded volumes of over 0.35mn shares on NSE.
Shares of Glenmark shot up by over 3.5% to end at Rs279 after Glenmark Pharmaceuticals S.A (GPSA), a wholly owned subsidiary of Glenmark entered into an agreement with Sanofi-aventis to grant Sanofi-Aventis a license for the development and commercialization of novel agents to treat chronic pain. The scrip opened at Rs280 it touched an intra-day high of Rs302 and a low of Rs276 and recorded volumes of over 2.3mn shares on NSE.
Shares of TVS Motors erased early gains and ended lower by 0.5% to end at Rs96.1. the stock hit an intra-day high of Rs100.30 after total two wheeler sales grew 28% from 113,119 units in April 2009 to 144,689 units in April 2010. Domestic two wheeler sales registered 22% growth from 102,985 units in April 2009 to 125,471 units in April 2010.
Motorcycle sales of the company grew by 24 % in April 2010 with sales of 66,000 units compared to 53,235 units in the same month of the previous year. Scooters continued its impressive sales growth increasing by 43% from 18,819 units in April 2009 to 26,860 units in the April 2010.
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