Wednesday, May 05, 2010
Sensex plays well and how!
Today's major news
HCL Tech, Stellar form strategic partnership; the stock closes 1.57% higher
SEBI, IRDA round II meeting soon
India attracts $1.21 billion FDI in March
Click here for more stories
Global signals
European stocks traded in red after erasing gains depite of Societe Generale posted the forecast beating earnings. FTSE 100 was trading lower by 0.63%.
All the major Asian indices closed in the negative territory except Shanghai Composite. Japan’s Nikkei and South Korean’ Kospi were closed today. SGX Nifty closed 12 points lower.
US stock futures signals mixed opening on the Wall Street as investors will look for earnings of Prudential Financial and CBS Corp, and employment data for April.
Indian indices
Indian indices started the day on a weak note but showed smart recovery towards the closing hours of the trading session and ended with modest losses.
The market fell on the third straight day mirroring weak global markets on worries that the debt contagion could spread to other debt-stricken southern European nations such as Spain and Portugal. Tracking overnight sell-off in the Wall street and weak opening in Asian markets, the Sensex opened 33 points down at 17104 and soon extended its losses that led the Sensex to breach the crucial 17000 level for the first time in two months to touch the day’s low of 16858. However, market recovered most of its losses in the after noon session due to positive closing in China’s Shanghai Composite, bounce back in European markets and weak rupee regaining investor’s interest in information technology stocks, which aided the Sensex to touch the day’s high of 17122. The market almost recovered 264 points from day’s low. The Sensex managed to close above 17000 levels and shut at 17088, lower by 49 points. The Nifty also managed to close above 5100 levels and ended at 5125, 24 points lower.
Market sentiment
The market breadth was negative as declining stocks outnumbered advancing stocks on third straight day. Of the 2,944 stocks traded on the BSE, 1,717 stocks declined, whereas 1,144 stocks advanced. Eighty three stocks remained unchanged.
Sectoral & stock screening
Of the 13 sectoral indices in BSE, eight of the sectors ended in red, while five closed the day in green. The sectors that were hit the most — BSE Metal lost 1.07%, followed by the BSE Realty that declined by 1.03% and rest on the sectors dropped in the range of 0.20% to 0.78% respectively. The gaining sectors were — BSE TECk gained 0.95%, BSE IT advanced 0.92% and BSE HC up by 0.62%, while other two sector that closed in green were BSE FMCG and BSE Auto.
On gainers’ list — Godrej Consumer Product was the star stock of the day, up by 9.13%, followed by UCO Bank that was up by 6.13% and Indian Bank that rose by 6.12%. On losers’ list — REI Agro topped the chart, down by 7.14%, followed by Jaiprakash Associates that fell by 4.67% and Gujarat NRE Coke that shed 4.22%.
Viewing volumes
On sixth day on the trot, Anil Dhirubhai Ambani group company Reliance Natural Resources saw highest trading with over 1.38 crore shares changing hands on the BSE, followed by India’s second largest realtor Unitech (0.62 crore shares), infrastructure company GTL Infrastructure (0.54 crore shares), industrial finance company IFCI (0.47 crore shares) and top loser among Sensex stock Jaiprakash Associates (0.46 crore shares).
BSE Bulk Deals to Watch - May 5 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
5/5/2010 524091 Acrysil HASINA KASAMBHAI SHEKH B 27512 137.78
5/5/2010 524091 Acrysil HASINA KASAMBHAI SHEKH S 27512 145.41
5/5/2010 531761 Amulya Leas SAMEER GUPTA B 500000 16.33
5/5/2010 531761 Amulya Leas IMRATI DEVI S 500000 16.33
5/5/2010 531223 Anjani Syn ELLKAY DEVELOPERS PRIVATE LTD B 699951 2.46
5/5/2010 531223 Anjani Syn ELLKAY DEVELOPERS PRIVATE LTD S 600000 2.48
5/5/2010 531223 Anjani Syn VISHESH SHAHRA S 700000 2.46
5/5/2010 533163 Arss Infra Proj SMART EQUITY BROKERS PRIVATE LIMITED B 133424 1200.04
5/5/2010 533163 Arss Infra Proj CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 74754 1195.13
5/5/2010 533163 Arss Infra Proj OPG SECURITIES P LTD B 142769 1201.74
5/5/2010 533163 Arss Infra Proj SMART EQUITY BROKERS PRIVATE LIMITED S 133424 1199.88
5/5/2010 533163 Arss Infra Proj CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 74754 1194.39
5/5/2010 533163 Arss Infra Proj OPG SECURITIES P LTD S 142769 1202.90
5/5/2010 505036 Automobile Corp USHA HEMENDRA PAREKH B 79500 232.55
5/5/2010 505036 Automobile Corp EVEREST FINANCE AND INVESTMENT COMPANY S 47990 232.50
5/5/2010 590059 Bihar Tubes HEMPOINT FINANCIAL SERVICES PRIVATE LIMITED B 120000 116.16
5/5/2010 590061 Brushman India ROCHAK DISTRIBUTORS PVT LTD B 100000 8.00
5/5/2010 590061 Brushman India SICPA INDIA LTD S 148186 8.04
5/5/2010 505923 Ceekay Daikin RAJASTHAN GLOBAL SECURITIES LTD B 49294 176.03
5/5/2010 505923 Ceekay Daikin IDFC MUTUAL FUND B 51300 176.05
5/5/2010 505923 Ceekay Daikin GLOBE CAPITAL MARKET LIMITED S 60000 176.04
5/5/2010 531270 Dazzel Conf DISHA KASTURI B 30000 19.25
5/5/2010 517973 DMC Intl KAPIL GUPTA B 166258 18.76
5/5/2010 590094 FARMAX IND CHANDAN SHAH B 148496 135.56
5/5/2010 590094 FARMAX IND CHANDAN SHAH S 148496 138.67
5/5/2010 590094 FARMAX IND ARUN KUMAR GANERIWALA S 133059 132.35
5/5/2010 590094 FARMAX IND WINNERS SALES PRIVATE LIMITED S 111984 132.76
5/5/2010 532022 Filatex Fash MARUTI TRADING COMPANY(PROPRIETOR T C PUGALIA HUF) B 39909 10.85
5/5/2010 531486 Filmcity Media TEJSINGH DHANSINGH RAMOLA B 2204085 0.37
5/5/2010 531486 Filmcity Media MANOHAR GAURAIAN KODAM B 1600000 0.37
5/5/2010 531486 Filmcity Media SUNIL KR BAGARIA HUF B 2100000 0.37
5/5/2010 531486 Filmcity Media SAVITRI OM RUIA B 2000000 0.37
5/5/2010 531486 Filmcity Media SUNIL DEVCHAND JHA S 3250000 0.37
5/5/2010 531486 Filmcity Media KIRAN SUNIL JHA S 3250000 0.37
5/5/2010 531486 Filmcity Media NISHAKANT HARIVANSH PANDEY S 2500000 0.37
5/5/2010 531486 Filmcity Media WELLNESS COMMUNICATION (P) LTD S 2500000 0.38
5/5/2010 532622 Gateway Distr DSP Black Rock Mutual Fund B 2950000 123.50
5/5/2010 532622 Gateway Distr THAKRAL CORPORATION LIMITED S 3702000 123.50
5/5/2010 507438 IFB Agro TRANSGLOBAL SECURITIES LTD. B 53889 109.60
5/5/2010 507438 IFB Agro CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 66339 109.17
5/5/2010 507438 IFB Agro MBL & Co. LTD. B 40167 111.46
5/5/2010 507438 IFB Agro MANSUKH SECURITIES & FINANCE LTD B 65454 111.15
5/5/2010 507438 IFB Agro ARUN KUMAR B 234847 112.90
5/5/2010 507438 IFB Agro TRANSGLOBAL SECURITIES LTD. S 53889 109.84
5/5/2010 507438 IFB Agro CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 66339 110.88
5/5/2010 507438 IFB Agro MBL & Co. LTD. S 40167 111.31
5/5/2010 507438 IFB Agro MANSUKH SECURITIES & FINANCE LTD S 65454 111.21
5/5/2010 507438 IFB Agro ARUN KUMAR S 234847 110.49
5/5/2010 533181 Intrasoft Tech BUDDHISAGAR SHARES AND SERVICES PRIVATE LIMITED B 145000 126.75
5/5/2010 533181 Intrasoft Tech SHEETAL M SHETH S 92528 126.75
5/5/2010 533181 Intrasoft Tech MANISH RATILAL SHAH S 103024 126.74
5/5/2010 505750 Josts Engr HARSHA HITESH JAVERI S 3800 341.17
5/5/2010 531602 Koffee Break ACHALA ELECTRICALS PRIVATE LIMITED B 1001875 1.98
5/5/2010 531366 Kohinoor Broad OUDH FINANCE & INVESTMENT PVT LTD B 581059 5.99
5/5/2010 502250 Marathwada Refrac MITESH JANAKRAY TURAKHIA B 10000 362.21
5/5/2010 502250 Marathwada Refrac ASHOKKUMAR RUIA S 5950 362.25
5/5/2010 590111 MASTER NAGAVENKATA S MATHA B 28211 38.17
5/5/2010 590111 MASTER RAMATULASI MORTHA B 52002 35.73
5/5/2010 590111 MASTER SREE LAKSHMI MIKKILINENI S 30700 35.58
5/5/2010 590111 MASTER NAGAVENKATA S MATHA S 28211 35.57
5/5/2010 532416 Midday Multi TRANSGLOBAL SECURITIES LTD. B 292810 31.90
5/5/2010 532416 Midday Multi TRANSGLOBAL SECURITIES LTD. S 292453 31.91
5/5/2010 590060 MK Exim HEENA SHAH B 16995 47.09
5/5/2010 532952 Nahar Capital SHIVALIK SECURITIES LTD. B 330000 88.97
5/5/2010 532952 Nahar Capital MASTER TRUST LIMITED S 330000 88.97
5/5/2010 531834 Natura Hue Chem J V STOCK BROKING PRIVATE LIMITED S 40454 11.94
5/5/2010 523820 Neo Corp INDIA MAX INVESTMENT FUND LIMITED S 50000 54.13
5/5/2010 532986 Niraj Cement HARSH VARDHAN JAIN B 60937 48.06
5/5/2010 532986 Niraj Cement HARSH VARDHAN JAIN S 60937 47.82
5/5/2010 532986 Niraj Cement RAJIV GANDHI S 55000 47.49
5/5/2010 531496 Omkar Overseas ARVIND KASHMIRILAL PUNJABI S 47400 65.79
5/5/2010 512097 Oregon Comm VIPUL VIRENDRAKUMAR PATEL B 15000 307.60
5/5/2010 512097 Oregon Comm J M SONI CONSULTANCY B 8302 306.40
5/5/2010 512097 Oregon Comm DHIRENKUMAR DHARAMDAS AGARWAL B 9900 307.00
5/5/2010 512097 Oregon Comm KRUPA SANJAY SONI B 10994 305.92
5/5/2010 512097 Oregon Comm DHIRENKUMAR DHARAMDAS AGARWAL B 14437 307.63
5/5/2010 512097 Oregon Comm VIPUL VIRENDRAKUMAR PATEL S 9900 305.31
5/5/2010 512097 Oregon Comm J M SONI CONSULTANCY S 8302 306.93
5/5/2010 512097 Oregon Comm KRUPA SANJAY SONI S 10994 306.30
5/5/2010 512097 Oregon Comm JIGESH AMRUTLAL HIRANI S 18200 307.02
5/5/2010 512097 Oregon Comm VIPUL VIRENDRAKUMAR PATEL S 18300 307.44
5/5/2010 512097 Oregon Comm DHIRENKUMAR DHARAMDAS AGARWAL S 6737 308.15
5/5/2010 506579 Oriental Carbon OCL INVESTMENT AND LEASING LIMITED S 200000 112.00
5/5/2010 531816 Panoramic Univ RAJ FINVEST B 79165 220.17
5/5/2010 531816 Panoramic Univ RAJ FINVEST S 77488 220.36
5/5/2010 517522 Rajratan Global VAJRADHAR LEASING AND FIN VEST PRIVATE LIMITED B 25000 228.75
5/5/2010 517522 Rajratan Global MRINALINI TRADING CO PVT LTD S 25328 228.73
5/5/2010 512359 Rotam Comm J M SONI CONSULTANCY B 21535 70.56
5/5/2010 512359 Rotam Comm PRAKASH KISHANCHAND VIRWANI B 7050 70.50
5/5/2010 512359 Rotam Comm KISHANCHAND C VIRWANI B 7050 70.50
5/5/2010 512359 Rotam Comm DILIP K VIRVANI B 7050 70.50
5/5/2010 512359 Rotam Comm JIGAR BHARATKUMAR SHAH B 5500 70.50
5/5/2010 512359 Rotam Comm DEVENDRA KUMAR GOYAL B 5000 70.50
5/5/2010 512359 Rotam Comm DARSHAN PRAFULCHANDRA TREVEDI B 20500 70.50
5/5/2010 512359 Rotam Comm RAMESHCHANDRA PRASHANT MAHICHA B 5000 70.50
5/5/2010 512359 Rotam Comm J M SONI CONSULTANCY S 10355 74.64
5/5/2010 512359 Rotam Comm SHAMANJWALI PVT LTD S 100000 70.50
5/5/2010 512359 Rotam Comm SANJAY JETHALAL SONI S 7000 76.30
5/5/2010 530025 Samyak Intl BP FINTRADE PRIVATE LIMITED B 16185 17.50
5/5/2010 530025 Samyak Intl BP FINTRADE PRIVATE LIMITED S 16185 16.55
5/5/2010 533056 SARK SYS SHWETA JAIN B 66364 35.10
5/5/2010 530433 Shiva Fert HITESH SHASHIKANT JHAVERI S 39294 86.71
5/5/2010 524336 Shree Hari DHEERAJKUMAR LOHIA B 44344 18.04
5/5/2010 524336 Shree Hari ANIL KUMARTIWARI S 30000 17.75
5/5/2010 531645 Southern Ispat ESS DEE EM FINCOM (P) LTD B 100000 19.26
5/5/2010 531645 Southern Ispat ANUDITA PODDAR S 100000 19.28
5/5/2010 531373 Suave Hotels AZURA PROJECTS PRIVATE LIMITED B 75000 38.50
5/5/2010 531373 Suave Hotels MADHU ALOK GOENKA B 75000 38.50
5/5/2010 531373 Suave Hotels ACHALA ELECTRICALS PRIVATE LIMITED B 236199 38.41
5/5/2010 531373 Suave Hotels ACHALA ELECTRICALS PRIVATE LIMITED S 226386 38.51
5/5/2010 530845 Sunshield Chem HITESH SHASHIKANT JHAVERI B 44037 102.94
5/5/2010 530845 Sunshield Chem HITESH SHASHIKANT JHAVERI S 40073 102.99
5/5/2010 526133 Supertex Inds PARAMESHWAR EXPORTS PRIVATE LIMITED B 534269 4.46
5/5/2010 521200 Suryalakshmi GARNET INTERNATIONAL LIMITED B 82000 57.79
5/5/2010 523455 Techtran Poly REENA JAIN S 471627 29.42
5/5/2010 590091 TRINETHRA IN PERLA T N V A R SUDARSAN B 208955 40.92
5/5/2010 531364 Zenu Infotech PADAMCHAND BHANWARLAL DHUT B 50000 26.30
5/5/2010 531364 Zenu Infotech ABHILASHA MONEY OPERATIONS PVT LTD S 36550 26.30
5/5/2010 506313 Zenzy Technocrats MINAXIBEN NAVINCHANDRA SHAH B 2000 6.56
* B - Buy, S - Sell
NSE Bulk Deals to Watch - May 5 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-MAY-2010,ARSSINFRA,ARSS Infra Proj. Ltd,CPR CAPITAL SERVICES LTD.,BUY,89288,1187.16,-
05-MAY-2010,ARSSINFRA,ARSS Infra Proj. Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,74647,1192.92,-
05-MAY-2010,ARSSINFRA,ARSS Infra Proj. Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,88826,1190.46,-
05-MAY-2010,ATNINTER,ATN International Limited,M G L HOLDINGS Pvt Ltd.,BUY,200000,1.91,-
05-MAY-2010,GDL,Gateway Distriparks Limit,SBI MUTUAL FUND,BUY,3000000,123.50,-
05-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,66339,110.67,-
05-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,KUMAR ARUN,BUY,99331,110.33,-
05-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,67595,110.75,-
05-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,55470,111.93,-
05-MAY-2010,MID-DAY,Midday Multimedia,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,287496,32.41,-
05-MAY-2010,MID-DAY,Midday Multimedia,TRANSGLOBAL SECURITIES LTD.,BUY,294427,31.80,-
05-MAY-2010,NAHARCAP,Nahar Capital and Financi,CONSOLIDATED SECURITIES LTD,BUY,110671,88.70,-
05-MAY-2010,NAHARCAP,Nahar Capital and Financi,HARNEESH KAUR ARORA,BUY,175000,89.24,-
05-MAY-2010,NAHARCAP,Nahar Capital and Financi,PUNEET SINGHANIA,BUY,175000,89.76,-
05-MAY-2010,ZEENEWS,Zee News Limited,TRANSGLOBAL SECURITIES LTD.,BUY,1755991,14.86,-
05-MAY-2010,ABAN,Aban Offshore Ltd.,SLOANE ROBINSON LLP A/C SR GLOBAL INTERNATIONAL FUND LP.,SELL,526000,1091.04,-
05-MAY-2010,ARSSINFRA,ARSS Infra Proj. Ltd,CPR CAPITAL SERVICES LTD.,SELL,89438,1187.26,-
05-MAY-2010,ARSSINFRA,ARSS Infra Proj. Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,74647,1195.13,-
05-MAY-2010,ARSSINFRA,ARSS Infra Proj. Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,88826,1191.01,-
05-MAY-2010,GDL,Gateway Distriparks Limit,THAKRAL CORPORATION LIMITED,SELL,3754000,123.50,-
05-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,66339,109.22,-
05-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,KUMAR ARUN,SELL,150444,110.65,-
05-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,67624,110.95,-
05-MAY-2010,IFBAGRO,IFB Agro Industries Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,55470,111.76,-
05-MAY-2010,MID-DAY,Midday Multimedia,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,283465,32.46,-
05-MAY-2010,MID-DAY,Midday Multimedia,TRANSGLOBAL SECURITIES LTD.,SELL,294784,31.83,-
05-MAY-2010,MSKPROJ,MSK Projects (India) Limi,ICG Q LIMITED A/C FCCB,SELL,150000,178.40,-
05-MAY-2010,NAHARCAP,Nahar Capital and Financi,CONSOLIDATED SECURITIES LTD,SELL,8768,90.00,-
05-MAY-2010,NAHARCAP,Nahar Capital and Financi,MASTER TRUST LTD,SELL,350000,89.50,-
05-MAY-2010,ZEENEWS,Zee News Limited,TRANSGLOBAL SECURITIES LTD.,SELL,1755992,14.91,-
Market extends losses for the third straight day
The key benchmark indices extended losses for the third straight day on continued worries over fiscal health of euro zone nations. Nevertheless, the market staged a strong intraday rebound after an initial sharp slide. The barometer index BSE Sensex regained the psychological 17,000 level after sliding below that mark in early trade. The BSE 30-share Sensex lost 49.18 points or 0.29%, up close to 230 points from the day's low and off close to 35 points from the day's high.
The Sensex has lost 470.75 points or 2.68% in three trading sessions from a recent high of 17558.71 on 30 April 2010.
The market breadth was weak. Metal stocks fell as metal prices slumped on the London Metal Exchange on Tuesday, 4 May 2010. Interest rate sensitive banking stocks declined on fears the Reserve Bank of India may resort to further monetary tightening to counter soaring inflation. High beta infrastructure stocks dropped. Telecom stocks saw divergent trend. IT pivotals recovered from early lows after the rupee weakened to its lowest level in over a month against the dollar. Select auto shares rose on strong monthly sales figures for April 2010.
Stocks were choppy. A setback in world stocks triggered by deepening worries about sovereign debt issues in Europe pulled the barometer index BSE Sensex below the psychological 17,000 level at the onset of the trading session. The market came off the lower level shortly. But the market soon slumped to a fresh intraday low. The market once again came off the lower level in morning trade. The market weakened again in mid-morning trade.
The Sensex regained the 17,000 level in early afternoon trade as recovery in Chinese stocks and higher US index futures triggered a rebound on the domestic bourses. The market once again weakened in afternoon trade as European stocks gave away initial small gains. The Sensex was again below the 17,000 level. The market cut losses in mid-afternoon trade on gains in select pivotals. Recovery gathered steam in late trade as European stocks moved into positive zone in volatile trade.
NSE's volatility index India VIX, a measure of traders' perception of near-term risks in the market based on options prices, rose 1.67% to 23.69. The index had risen 5.24% on Tuesday, 4 May 2010, after jumping 8.8% on Monday, 3 May 2010. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
European stocks dipped in volatile trade on Wednesday after a sell-off in the previous session, as lingering sovereign debt fears eclipsed positive results by bellwethers like InBev and Societe Generale. The key benchmark indices in France, Germany and UK were down down between 0.12% to 0.39%.
A massive Greek bailout package announced on Sunday, 2 May 2010, failed to halt rising jitters about sovereign-debt problems along the euro zone's boundary. Euro-zone governments and the International Monetary Fund hoped that the $145.14 billion rescue package for Greece would soothe investors' nerves over high sovereign-debt levels in Spain, Italy, Portugal and Ireland.
Instead, it had the opposite effect, with fears that Greece's debt woes could spread to other countries. Investors are also concerned that the three-year financial package will not fix Greece's longer-term funding problems.
The European Central Bank (ECB) holds a regular policy meeting on interest rates on Thursday, 6 May 2010. Interest rates in the 16-member eurozone have now been on hold at an historic low of 1% for a year and many economists expect the ECB to leave borrowing costs unchanged till next year. The press conference of ECB chief Jean-Claude Trichet in which he is likely to update on Europe's role in Greece's bailout will be closely watched.
Asian stocks fell on fears Europe's attempt to contain Greece's debt crisis would fail. The key benchmark indices in Hong Kong, Indonesia, Taiwan, and Singapore were down by between 1.41% to 3.81%. But, China's Shanghai Composite index moved to positive zone from negative zone led by aviation stocks. The Shanghai Composite index rose 0.77%. Markets in South Korea and Japan were closed for holidays.
US markets declined sharply on Tuesday, 4 May 2010, on fears Europe's attempt to contain Greece's debt crisis would fail. The Dow Jones industrial average slumped 225.06, or 2.02%, to 10,926.77. The Standard & Poor's 500 index shed 28.66, or 2.38%, to 1,173.60 and the Nasdaq Composite index was down 74.49, or 2.98%, to 2,424.25.
US index futures edged lower in volatile trade. Trading in US index futures indicated that the Dow could fall 20 points at the opening bell on Wednesday, 5 May 2010.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 1109 companies rose 28.7% to Rs 38455 crore on 30.3% rise in sales to Rs 358408 crore in the quarter ended March 2010 over the quarter ended March 2009.
The Parliament on Tuesday passed the Union Budget 2010-11 with the Rajya Sabha approving the Finance Bill. Earlier, the bill was passed in Lok Sabha. The Finance Bill now requires Presidential assent before the provisions are notified. Finance Minister Pranab Mukherjee in a debate on the Finance Bill remained firm on not rolling back increase in fuel prices.
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 49.18 points or 0.29% to 17,087.96. The index fell 15.48 points at the day's high of 17,121.66 in late trade. The Sensex lost 278.91 points at the day's low of 16,858.23 in early trade.
The S&P CNX Nifty declined 23.60 points or 0.46% to 5,124.90.
The BSE Mid-Cap index rose 0.3% and outperformed the Sensex. The BSE Small-Cap index fell 0.24%. It also outperformed the Sensex.
Sectoral indices on BSE were mixed. The BSE Metal Index (down 1.07%), Realty index (down 1.03%), Capital Goods index (down 0.78%), Oil & Gas index (down 0.39%), Bankex (down 0.35%), and Power index (down 0.26%) underperformed the Sensex.
The BSE Teck index (up 0.95%), IT index (up 0.92%), BSE Healthcare index (up 0.62%), FMCG index (up 0.33%), Auto index (up 0.05%), PSU index (down 0.2%), and Consumer Durables index (down 0.22%), outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1722 shares declined as compared with 1137 that rose. A total of 85 shares remained unchanged. The breadth was extremely weak earlier in the day.
The total turnover on BSE amounted to Rs 4742 crore, slightly higher than Rs 4733.49 crore on Wednesday, 4 May 2010.
Among the 30-share Sensex pack, 15 declined while the rest gained.
High beta infrastructure stocks dropped. Reliance Infrastructure (down 2.59%), Larsen & Toubro (down 1.24%), Bharat Heavy Electricals (down 0.44%), and Punj Lloyd (down 1.13%) edged lower.
India's largest dam builder by sales Jaiprakash Associates lost 4.67% to Rs 133.60 and was the top loser from the Sensex pack. The stock slumped as the initial public offer of its unit Jaypee Infratech got lukewarm response from investors and was subscribed 1.24 times. The bidding for the issue got over on Tuesday.
Index heavyweight Reliance Industries (RIL) was flat at Rs 1020.75. The stock hit a high of Rs 1023 and low of Rs 1000 in volatile trade. 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.
Meanwhile, 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.
Shares of oil exploration firms slipped after crude-oil futures fell 4% on Tuesday as fresh worries over Greece's ability to meet provisions of a fiscal-aid package boosted the dollar and slashed equities. Cairn India (down 2.75%), Oil India (down 0.11%), and ONGC (down 1.05%), declined. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.
The sharp slide in crude oil prices, however, lifted PSU OMCs. HPCL (up 0.72%), BPCL (up 2.25%) rose. But, Indian Oil Corporation fell 0.96%. Fall in crude oil prices will reduce under-recoveries of state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at controlled prices.
Light, sweet crude-oil futures for June 2010 delivery settled down $3.45 at $82.74 a barrel on Tuesday, snapping a four-day rally. The settlement price was the lowest since only 27 April 2010, but the single-day drop was the biggest since 4 February 2010.
Telecom stocks saw divergent trend. India's largest cellular services provider by sales Bharti Airtel gained 2.66% to Rs 297.50 and was the top gainer from the Sensex pack. India's second largest listed cellular services provider by sales Reliance Communications lost 1.05%.
Meanwhile, the provisional winning price for the pan-India licence in the ongoing 3G auction in the subcontinent has crossed Rs 10700 crore mark, higher than the core reserve price of Rs 3500 crore fixed by the Government of India.
Most metal and mining stocks were off the day's lows, with Hindalco Industries (up 1.44%), Sesa Goa (up 3.33%), Steel Authority of India (up 0.45%) staging a strong intraday rebound. Jindal Saw (down 0.87%), Tata Steel (down 0.92%), National Aluminium Company (down 0.42%), Sterlite Industries (down 3.28%), Hindustan Zinc (down 2.14%), though in the red were off the day's lows.
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 second largest private sector bank by net profit HDFC Bank fell 1.29% to Rs 1915.35 after its ADR lost 4.66% on Tuesday. Nevertheless, the stock came off the day's low of Rs 1883.
India's largest private sector bank by net profit ICICI Bank slipped 1.27% to Rs 903.70 after its ADR lost 7.06% on Tuesday. But, the stock came off the day's low of Rs 885.
India's biggest commercial bank in terms of branch network State Bank of India rose 0.18% to Rs 2,285.30, off the day's low of Rs 2,245. The bank has reportedly extended a special home loan scheme by two months till 30 June 2010. SBI's teaser rates scheme was to originally expire on 31 March 2010, but was later extended by a month to 30 April 2010.
Teaser rate scheme provides concessional home loans to borrowers in the initial years, after which the interest rate increases to align with prevailing market rates.
India's largest mortgage lender by total income Housing Development Finance Corporation slipped 0.63%. The company's board on 3 May 2010 approved a 5-for-1 stock-split.
Select auto shares rose on strong monthly sales figures for April 2010. India's largest tractor maker by sales Mahindra & Mahindra rose 0.85%. The company's total vehicle sales rose 13% to 26,043 units in April 2010 over April 2009. The company announced the monthly sales data during trading hours on Monday, 3 May 2010.
India's largest small car maker by sales Maruti Suzuki India rose 1.39%. Total sales rose almost 30% to 93,058 units in April 2010 over April 2009. Domestic sales rose 23.4% to 80,034 units. The data was unveiled on 1 May 2010.
India's top truck maker by sales Tata Motors lost 0.78% to Rs 835.65, off the day's low of Rs Rs 816.55. The stock had hit a 52-week high of Rs 882.20 on 3 May 2010. 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.
IT pivotals recovered from early lows after the rupee weakened to its lowest level in over a month against the dollar. A weak rupee boosts revenues of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. The partially convertible rupee was at 44.93/94 per dollar, weaker than its close of 44.61/62 on Tuesday. The rupee struck a low of 44.9850 in intraday trade, its lowest since 31 March 2010.
India's third largest software services exporter Wipro rose 1.7% to Rs 671.60, recovering sharply from day's low of Rs 642.10. India's largest software services exporter TCS rose 0.64% at Rs 765.90, rebounding from day's low of Rs 748. India's second largest software services exporter Infosys gained 0.78% to Rs 2687.80, off day's low of Rs 2609.25.
Realty stocks fell on fears the Reserve Bank of India may resort to further monetary tightening to counter soaring inflation. inflation. Omaxe, HDIL, Indiabulls Real Estate and Unitech fell by between 0.21% to 2.81%.
Pharma shares rose on defensive buying. Glaxosmithkline Pharmacauticals, Cipla, Ranbaxy Laboratories, Dr Reddy's Laboratories, Piramal Healthcare and Lupin rose by between 0.25% to 4.24%.
India's largest cement producer by sales ACC rose 0.75%. The company's cement production declined to 1.79 million tonne in April 2010 from 1.84 million tonne in April 2009. Cement dispatches declined to 1.79 million tonne in April 2010 from 1.80 million tonne in April 2009.
Sugar stocks declined on weak global sugar prices. New York front-month raw sugar futures touched a one-year low of 14.58 cents per lbs on Tuesday, down 2.6%, on investor selling pressured by a stronger dollar and a lack of cash buying. Bajaj Hindusthan, Shree Renuka Sugars, Balrampur Chini Mills fell by between 0.17% to 1.31%.
Cals Refineries clocked the highest volume of 6.24 crore shares on BSE. Filmcity Media (1.41 crore shares), Reliance Natural Resources (1.38 crore shares), Birla Power Solutions (1.27 crore shares) and S Kumars Nationwide (73.72 lakh shares) were the other volume toppers in that order.
ARSS Infra clocked the highest turnover of Rs 184.63 crore on BSE. Tata Steel (Rs 177.84 crore), Sesa Goa (Rs 157.30 crore), Sterlite Industries (Rs 104.13 crore) and JSW Steel (Rs 96.31 crore) were the other turnover toppers in that order.
Market seen extending Tuesday's losses on weak global cues
The market is likely to open lower amid a global rout in equities triggered by fears Europe's attempt to contain Greece's debt crisis would fail. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicate that the Nifty could fall 82.50 points at the opening bell. Oil and metal shares will be under selling pressure on setback in commodity prices on Tuesday.
Asian stocks slumped on Wednesday on rising fears that Greece's debt woes could spread to other countries. The key benchmark indices in Hong Kong, Indonesia, Taiwan, China and Singapore and South Korea fell by between 0.14% to 2.63%. Markets in South Korea and Japan were closed for holidays.
The risk premium on Greek, Portuguese and Spanish bonds soared overnight amid jitters about a possible Greek debt restructuring and worries over the fiscal health of other southern European countries.
US markets declined sharply on Tuesday, 4 May 2010, on fears Europe's attempt to contain Greece's debt crisis would fail. The Dow Jones industrial average slumped 225.06, or 2.02%, to 10,926.77. The Standard & Poor's 500 index shed 28.66, or 2.38%, to 1,173.60 and the Nasdaq Composite index was down 74.49, or 2.98%, to 2,424.25.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 1080 companies rose 28% to Rs 38187 crore on 30.40% rise in sales to Rs 354453 crore in the quarter ended March 2010 over the quarter ended March 2009.
Alembic, Elder Pharma, JB Chemicals, Lupin, NIIT Technologies and United Breweries among others will announce their January-March 2010 quarter result today.
Tyre stocks may see action on reports firms are looking to hike product prices by up to 25% to offset rising input costs.
The Parliament on Tuesday passed the Union Budget 2010-11 with the Rajya Sabha approving the Finance Bill. Earlier, the bill was passed in Lok Sabha. The Finance Bill now requires Presidential assent before the provisions are notified. Finance Minister Pranab Mukherjee in a debate on the Finance Bill remained firm on not rolling back increase in fuel prices.
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 slumped on Tuesday, extending losses for the second straight day, as world stocks fell. The BSE 30-share Sensex fell 248.94 points or 1.43% to 17,137.14 and the S&P CNX Nifty fell 74.25 points or 1.42% to 5,148.50.
As per provisional figures on NSE, foreign funds sold shares worth Rs 29.68 crore and domestic funds offloaded shares worth Rs 438.08 crore on Tuesday.
Base metals falter
Prices trip on concerns of economic slowdown
Base metal prices ended substantially lower at Comex on Tuesday, 04 May 2010. Prices fell on concern that demand will falter after manufacturing in China expanded at the slowest pace in six months. Prices also fell in tandem with US equities. U.S. stocks fell sharply on Tuesday as concerns over Greece's bailout package and Europe's national debts weighed on sentiment and as dollar once again climbed up against the euro.
At USA, copper futures for July delivery ended lower by 11.5 cents (3.5%) at $3.1785 a pound on Tuesday. Last week, prices lost 5%. In April, copper lost 6.1%. Copper gained about 6% for the first quarter, buoyed by data from the U.S. and other countries reinforced expectations that the global economic recovery was on track. On a year to date basis, in 2010, copper is lower by 5.5%.
On Tuesday, at LME, copper for delivery in three months ended lower by $404 (5.4%) at $7,025.5. Prices had crossed the $8,000 mark for first time since 2008 on 6 April. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
Prices have increased by almost 67% in the past twelve months due to higher imports from China. Copper ended FY 2009 higher by 140%.
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 Tuesday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 1.2%. The dollar is up some 6.7% for the year.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
A purchasing managers' index for China released today by HSBC Holdings Plc and Markit Economics slid to 55.4, the lowest level since October.
Copper ended substantially higher last year on expectations of revived global economic growth along with a decline in the dollar. The dollar index had dropped almost 4.2% last year. The metal was also pushed higher by record first-half imports to China, the world's largest user.
At the MCX, copper for June delivery closed lower by Rs 8.35 (2.6%) at Rs 316.75/Kg. Prices rose to a high of Rs 327.4/Kg and fell to a low of Rs 315/Kg during the day's trading.
Among other metals traded in the LME on Tuesday, lead ended 7.6% lower at $2,060 a ton and zinc ended 6% lower at $2,167 a ton. Nickel ended 6.3% lower at $24,650. Aluminum ended 5.8% lower at $2,153 a ton.
Equities to start weak on global worries
Headlines for the day:
Government mulls sugar decontrol
Corus appoints CitiBank to find buyer for UK Plant
Govt extends emission norms deadline for two-wheelers
Events for the day:
Major corporate action
Ex-date for dividend of Welspun Gujarat
Ex-date for interim dividend of Cholamandalam
Results: Lupin
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares fell to a two-month closing low on Tuesday, as investors' confidence was rattled by growing concerns that a massive bailout for Greece may be insufficient in preventing a wider euro zone debt crisis.
Investors dumped US stocks on Tuesday in the Wall Street's worst session in three months on the fear that even with a bailout for Greece, Europe's debt crisis could spread to other weak euro zone countries.
In today's trade, the Asian markets were trading on a negative note. At the time of writing this report, SGX Nifty was trading 86 points lower. The Janpanese (Nikkei 225 index) and South Korean (Kospi index) markets are shut today.
Indian markets
The encouraging US economic data failed to provide a floor to the market. There was massive sell-off around the globe, as the investors were more concern on the worries about the Greece bailout that would spread across the globe. Following this, Asian markets were dragged by a tumble on the Wall Street and were trading on an average of 1.30% down. The Indian markets are expected to open lower owing to the weak global cues. However, the market is expected to be volatile and remain on a negative bias for the day. The earnings of Lupin is later to be announced today, the stock will be eyed.
Commodity cues
In the commodity space, the crude oil prices loss, with the Nymex light crude oil for the June series down by $3.45 per barrel, whereas in the metals space, the Comex Gold for the June series declined by $14.10 and the Comex Silver for the June series was down by $1 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 04, 2010, the foreign institutional investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs236.10 crore, whereas the domestic mutual funds, on April 30, 2010, were the net buyers of the stocks to the tune of Rs304.80 crore.
Jaypee Infratech Grey Market Premium
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Talwalkars Better Value Fitness Ltd. | 128 | 20 to 22 |
| Nitesh Estate | 54 to 56 | Discount |
| Tarapur Transformers | 75 | 2.50 to 3 |
| Mandhana Industries Ltd. | 120 to 130 | 5 to 5.50 |
| Tara Health Foods | 180 to 190 | Discount |
| Sutlaj Jal Vidhut Nigam (SJVNL) | 26 | 1.50 to 2 |
| Jaypee Infra | 102 to 117 | Discount |
Crude plunges below $83
Prices register steepest fall in three months
Crude oil ended substantially lower at Nymex on Tuesday, 04 May 2010. Prices fell in tandem with US equities. U.S. stocks fell sharply on Tuesday as concerns over Greece's bailout package and Europe's national debts weighed on sentiment and as dollar once again climbed up against the euro.
On Tuesday, crude-oil futures for light sweet crude for June delivery closed at $82.74/barrel (lower by $3.35 or 4%). It was biggest drop for crude in three months – both in dollar and percentage terms. Oil for July delivery fell $3.39 cents, or 3.9%, to $85.76 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 4.4%.
Prices are still very much lower as compared to 3 July, 2008 settlement of $145.29 a barrel and an intraday high of $147.27 on 11 July, 2008, an all-time high. However, oil has also gained nearly 155% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
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 Tuesday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 1.2%. The dollar is up some 6.7% for the year.
All eyes are now set on tomorrow's weekly inventory report by the energy department.
Natural gas futures rose for a second day in New York on Tuesday. Natural gas for June delivery rose 1.3 cents, or 0.3%, to settle at $4.013 per million British thermal units on the New York Mercantile Exchange.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for May delivery closed lower by Rs 124 (3.2%) at Rs 3,736/barrel. Natural gas for May delivery closed at Rs 180.9, higher by Rs 2 (1.1%).
Market may open sharply lower on weak global cues
Indian equities are likely to open negative on Wednesday, May.5, 2010. SGX Nifty is trading at 5,054.5. (7.44 am), 76.50 points lower than Tuesday closing of 5,131.
Asian stocks declined, extending a global rout, as concern grew that Europe`s government debt crisis will spread beyond Greece. Hong Kong`s Hang Seng index declined by 372.93 points, or 1.80%, at. 20,390.12.
US stocks plunged around the world Tuesday as fears spread that Europe`s attempt to contain Greece`s debt crisis would fail. The euro fell to its lowest point against the dollar in a year. The Dow fell 225.06 points, or 2.02%, to 10,926.77.
Among Indian ADRs, Dr Reddy`S Laboratories (1.1%), Tata Communications (3.54%), Infosys Technologies (3.56%), MTNL (3.74%), Satyam Computer (4.1%),were major loser.
European stocks plunged, amid concern that Greece`s debt crisis will spread through the region. UK`s benchmark index FTSE 100 declined 142.18 points, or 2.56%, to end at 5,411.11.
Oil prices tumbled below USD 83 a barrel Tuesday on a stronger dollar and a falling stock market as investors worried about the ongoing European financial crisis. After setting an 18-month high during trading Monday, benchmark crude for June delivery fell USD 3.45, or 4%, to settle at USD 82.74 on the New York Mercantile Exchange.
In the spot market, the Dollar Index increased 0.319% to 83.56. It touched a high of 83.65 and a low of 83.39 after opening at 83.48. (22:01 ET)
Daily News Roundup - May 5 2010
The government has asked Reliance Industries to cut gas output from its eastern offshore KGD6 fields so that imported fuel stocks can be cleared. (ET)
The government said it is in the process of granting the Maharatna status to four state-run firms -ONGC, SAIL, NTPC and IOC. (ET)
L&T and UK-based Howden Global have signed a JV to design, engineer, manufacture and supply axial fans and air pre-heaters to Indian thermal power plants ranging between 100 MW and 1,200 MW. (BL)
HCL Technologies has signed a US$500mn strategic pact with pharmaceutical major MSD (also known as Merck & Co) for a period of five years. (BS)
Oil India and Indian Oil Corp has pulled out of the race to acquire Gulfsands Petroleum after the UK-listed firm refused the Indian firms’ request for due diligence before making a firm offer. (ET)
NMDC and MMTC are likely to finalise the iron ore export contracts with Japan and Korea by this month-end or early next month. (BL)
NMDC is keen to enter into coal mining with Coal India Ltd as a partner. (FE)
Ashok Leyland has reported sales of 6,500 vehicles for the month of April, compared with 1,750 in the same month last year. (BL)
Apollo Tyres will hike prices of its finished rubber products by 4.5%–5% across segments in June. (FE)
Videocon Industries has moved a petition to the World Bank seeking to revoke a three-year ban for misrepresenting information in a tender document in 2003. (ET)
Welspun-Gujarat Stahl Rohren will acquire majority stake in Saudi Arab-based pipe facility and a pipe coating facility. (BS)
Jet Airways is understood to have asked the MMRDA for six more months to pay for the 1.47-acre Bandra-Kurla Complex plot it bought for Rs8.3bn in 2008. (FE)
Glenmark Pharmaceuticals issued exclusive marketing rights for cholesterol control ezetimibe to another generic company Par Pharmaceutical Companies in an effort to strengthen its patent challenge case against Merck. (ET)
Sterlite Technologies will set up an LCD factory in Maharashtra at an investment of Rs96bn. (BS)
NDTV has terminated its agreement with Scripps Networks Interactive Inc, which it had entered into, to introduce lifestyle channels in India. (BS)
Adani Enterprises said it plans to raise up to Rs40bn through the issue of securities in global or domestic markets. (ET)
McNally Bharat said that it had bagged orders worth Rs1.1bn from Vedanta Group firm to provide engineering related works in Zambia. (FE)
The bid price for 3G spectrum continues to rise as it touched Rs107.5bn for pan-India operations on the 21st day of auction, assuring the government of Rs433.7bn in terms of revenue. (ET)
India is trying to mobilise opinion against the proposed international standard on corporate social responsibility that could give legal sanction to developed countries to reject exports from developing countries like India. (ET)
Parliament passed the budget 2010-11 with the finance minister remaining firm and turning down all pleas for a rollback of increase in duties on fuel. (ET)
The department of disinvestment (DoD) will move a proposal this week for divesting a 10% stake in Coal India through an IPO to cash in on the positive sentiment created by the recently closed issue of Satluj Jal Vidyut Nigam. (ET)
The finance ministry has rejected the petroleum ministry's demand for giving a seven-year income tax holiday to those who win sedimentary blocks for natural gas and coal bed methane (CBM) exploration in the next round of auctions later this year. (FE)
The corporate India Inc has raised US$4.32bn in March 2010 up by 300% over US$ 1.1bn mobilized in March 2009. (FE)
Government mulls sugar decontrol as the move has received a strong push from the Commission for Agricultural Costs and Price. (BS)
The government extended the deadline for implementing cleaner emission norms for two-wheelers across the country till July 1, 2010. (BS)
SEBI has widened the scope of index-based options by allowing exchanges to offer option contracts based on Sensex and Nifty with a tenure of up to five years. (BS)
Under margin pressure due to the rising prices of natural rubber, the end-user industries have asked the Government for duty-free import of two lakh tonnes of rubber through a Government agency, besides a ban on exports. (BL)
Worldly worries
Better be despised for too anxious apprehensions, than ruined by too confident security. -Edmund Burke.
Confidence goes for a toss when the world comes tumbling down. Despite less leverage, fear may overtake temptation while attempting to pick stocks as the sentiment swings wilder by the day. Interestingly, the Japanese market has escaped the global carnage as it has been shut for 3-4 days. May be it will react when it resumes trading. South Korea’s market is also closed today.
No such luck for India, as the market is all set to witness deeper cuts. All round selling dragged the NSE Nifty below 50day DMA which it had managed to hang on to for over a month. Most technical and derivative indicators are showing further weakness and the Nifty is set to test 5050. The best tactic in such turbulent times is to stay away and wait for stability to return.
US stocks suffered their steepest drop in three months, as risk tolerance collapsed amid mounting concerns over the European debt crisis. The S&P 500 index has dropped to its fourth test of support at the March peak of 1,180. A close below this level would likely signal a near-term downtrend, according to technical analysts.
Spanish stocks led losses on European equities indices as mounting doubts over Greece’s bail-out and fears of contagion to other eurozone periphery countries haunt investors. The dollar benefited from safe haven status while the euro suffered as investors continued their lukewarm reception to the Greek rescue package.
The cost of insuring Spanish and Portuguese government debt against default soared. Also, hung parliament risks loomed for Great Britan as the general election nears. The top priority for the ultimate winner in the UK election will be to convince ratings agencies that the high budget deficit will be fixed soon.
Oil futures also had their worst one-day drop since early February. Gold prices backtracked from five-month highs. Commodities weakened as worries over an economic slowdown in China added to nagging concerns over the eurozone’s sovereign debt crisis. Base metals plunged.
Wall Street's key index of volatility hit its highest level in more than two months. The VIX (VIX), which gauges fear in the market, surged more than 18% to close at 23.84 on Tuesday. That's the highest reading since the middle of February and up 53% since early April, when the VIX was trading at a three-year low.
Results Today: Alembic, Allcargo Global, Brigade, Elder Pharma, Granules India, JB Chemicals, Lupin, Mid-Day, NIIT Tech, Prism Cement, TN Petro and UB.
On a day, when the market plummeted, FIIs were net sellers of only Rs296.8mn in the cash segment on Tuesday on a provisional basis, according to NSE web site. Local institutions were net sellers of Rs4.38bn. In the F&O segment, the foreign funds were net buyers of Rs2.34bn. FIIs were net sellers of Rs2.36bn in the cash segment on Monday, as per the SEBI data.
The Indian markets got derailed even as citizens in Mumbai continue to struggle without its lifeline - the suburban local trains. "Market sentiment were hit badly amid concerns that the People's Bank of China will go for more monetary tightening. In addition, lingering concerns regarding Sovereign debt problems further fueled a sell-off on Dalal-Street", says Amar Ambani Vice President IIFL.
Tuesdays are often infamous to start one way and end the other way. After starting off with modest gains, markets were unable to hold on and slipped sharply after all round selling across the sector dragged the NSE Nifty below its 50day DMA which it managed to hold for more than a month.
Finally, the BSE Sensex lost 249 points to end at 17,137 and NSE Nifty fell 74 points to close at 5,149. Among the 30 components of Sensex, 28 ended in the negative terrain and only HDFC and Hero Honda ended in the green.
Markets in Asia ended in the red; the Nikkei in Japan was closed in a second day in a row, Australia's S&P/ASX was down 1%, the Hang Seng index in Hong Kong was down 0.3% and Shanghai SE Composite also was closed.
On the other hand, European indices were trading in the red, the DAX in Germany was down 0.8%, the CAC 40 index in France was down 1.5% and the FTSE in the UK was down 1%.
All the other sectoral indices ended in the red. The BSE Metal index was top loser; the index lost 3.9%, followed by BSE Realty index down 2.7% and BSE Capital Goods index down 1.69%. Even the Mid-Cap and the Small-cap index lost 1.75% each.
Ambuja Cements
We recommend a sell in the stock of Ambuja Cements from a short-term trading perspective. It is apparent from the charts that the stock has been on an intermediate-term uptrend since November 2009 low of Rs 82. However, the stock encountered significant long-term resistance in the band between Rs 120 and Rs 125 in late March 2010 and started to lose its bullish momentum. Moreover, the stock reversed direction forming a evening star candlestick pattern last week. A negative divergence in daily moving average convergence and divergence and also in weekly relative strength index confirms that the stock has reversed direction.
On May 4, the stock tumbled almost 4 per cent penetrating the medium-term uptrend-line, which was in place since February 2010, and the 21-day moving average. Daily RSI is on the brink of entering the bearish zone form the neutral region and weekly RSI has entered the neutral region from the bullish, implying reinforcement of bearishness. The stock could fall to Rs 109 in the forthcoming sessions. Short-term traders can sell the stock with stop-loss at Rs 120.
via BL
Gold drops from highest levels in five months
Precious metals pare early gains and end sharply lower
Precious metals pared all their gains and ended sharply lower at Comex on Tuesday, 04 May 2010. Prices fell in tandem with US equities. U.S. stocks fell sharply on Tuesday as concerns over Greece's bailout package and Europe's national debts weighed on sentiment and as dollar once again climbed up against the euro.
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 $1,169.2 an ounce, lower by $14.1 (1.2%) an ounce on the New York Mercantile Exchange. Earlier in the day, it had hit an intra day high of $1,192.4. Yesterday, gold had witnessed the highest level 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 6.7%.
On Tuesday, July Comex silver futures ended lower by $1 cents (5.3%) at $17.84 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 2.8%.
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 Tuesday, the dollar index, which measures the strength of the dollar against basket of six other currencies rose by 1.2%. The dollar is up some 6.7% for the year.
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 2 (0.01%) at Rs 17,188 per ten grams. Prices rose to a high of Rs 17,362 per 10 grams and fell to a low of Rs 17,125 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 931 (3.3%) lower at Rs 27,605/Kg. Prices opened at Rs 28,461/kg and fell to a low of Rs 27,450/Kg during the day's trading.
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