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Tuesday, May 11, 2010
Euro zone euphoria fizzles out
Today's major news
Hindalco Q4 net profit at Rs663.92 crore; the stock sheds 3.28%
Kotak Mahindra Bank Q4 net profit up 97% yoy; the stock closes 2.09% lower
Ranbaxy Laboratories Q1 net profit at Rs871.80 crore; the stock surges 0.88%
Global signals
European stocks retreated after yesterday’s sharp rally as doubts about Greece' ability to smoothly cut its fiscal deficit persisted. As of writing of this report, FTSE 100 was trading lower by 1.71%.
All the major Asian indices closed in the negative territory after registering huge gains in the previous session. SGX Nifty closed 80 points lower.
US stock futures signal lower opening on the Wall Street after registering its biggest one-day gain in over a year. Investors will keep an eye on Walt Disney and Electronic Arts as their earnings will be announced later today.
Indian indices
Yesterday the Indian market had rallied sharply on the news of European Union along with the International Monetary Fund declaring $1 trillion bailout package to stop rising Greece' debt crisis from spreading to other Euro zone as well as other regions of globe. However, today the market failed to continue its momentum, washing away previous session’s gains and declined tracking Asian peers. The markets around the globe turned negative reacting to concerns over implementation of $1 trillion package. Moody's Investors Service, in an unusual move regarding its sovereign ratings process, said on Monday it may downgrade its ratings on Portugal, and Greece' rating could fall to as low as junk. Higher inflation for April 2010 in China raised worries of further monetary tightening in the country. China's consumer prices rose a more-than-estimated 2.8% in April from a year earlier, the fastest pace in 18 months, another data showed industrial production, which surged 17.8% in April from a year earlier, after an 18.1% gain in March.
The Sensex began the session mere six points higher and soon touched the day’s high of 17,379 in opening minutes of the trade. However, it turned negative and expanded its losses. In afternoon session, the Indian market tumbled further mirroring European markets, which rolled back from yesterday’s sharp rally and traded in the negative territory, and along with robust selling in metal and realty counters dragged the Sensex to its day’s low of 17104. At the finishing line, the Sensex quoted at 17142, 189 points lower and the Nifty shut lower by 57 points at 5136.
Market sentiment
The market breadth was negative as declining stocks outnumbered advancing stocks. Of the 2,950 stocks traded on the BSE, 1,756 stocks declined, whereas 1,093 stocks advanced. Hundred and one stocks remained unchanged.
Sectoral & stock screening
All the 13 sectors rallied heavily yesterday. But today was the day of contrast where all the 13 sectoral indices closed lower. BSE Metal and BSE realty fell the most with loss of 2.57% and 2.43% respectively. BSE Bankex, was the lead affected sector, declined marginally by 0.34%.
In ‘A’ group list: Gainers were — the pick of the stock of the day was Rashtriya Chemicals, up 3.83%, followed by Petronet LNG that surged 3.69% and Chambal Fertilisers that rose 3.04%. Laggards were — Piramal Healthcare slid the most by 7.35%, followed by Idea Cellular that fell 5.31% and Reliance Infrastructure that shed 4.96%.
Viewing volumes
Anil Dhirubhai Ambani group company, Reliance Natural Resources saw highest trading on third straight day with over 1.73 crore shares changing hands on the BSE, followed by industrial finance company IFCI (1.09 crore shares), wind turbine major Suzlon Energy (0.56 crore shares), India’s second largest developer Unitech (0.40 crore shares), and chemical and fertiliser company Rashtriya Chemicals (0.34 crore shares).
Bullish force fizzles out in Asia
Dollar maintains gains after yesterday's intraday rebound
Asian markets flipped back bulk of their yesterday's strong gains as the markets watched at the steady rebound in US dollar and the retreat in commodities like base metals and crude oil hurt the sentiments. The market was also hit by known fears about Chinese monetary tightening. A wave of extremely strong economic data, particularly on the prices and lending front pushed the investors back as investor's looked at it as a sign of further rounds of monetary tightening from the world's faster growing economy.
China's inflation and bank credit continued to rise further in April. Latest figures from the State Bureau Of Administration showed that China's consumer prices were 2.8% higher in April than a year earlier, while producer prices were up 6.8%. This figure took the gauge to an 18-month. Chinese banks extended 774 billion yuan ($113.5 billion) worth of new local-currency loans in April, up from 510.7 billion yuan in March, up sharply by 51%, according to central bank data. This has ensured the markets that more measures are certainly due from the central bank on the monetary tightening front after the spree of hikes in the banks reserve requirements in last few weeks.
Property sector in China is also showing no signs of a moderation in prices. Urban property prices in China continued to rise in April in spite of several policy-tightening measures from Beijing. Property prices in 70 cities increased 12.8% in April from the year-earlier month, accelerating from the 11.7% rise registered in the previous month.
Chinese stocks reacted sharply to this data as rate hike and monetary tightening fears loomed large. China's key stock index fell more than 2 percent to its lowest in a year, reversing earlier gains as relief over the euro zone debt package faded and worries mounted over a worsening inflation outlook. The Shanghai Composite Index fell as far as 2,638.5 points, its lowest close since May 27, 2009, after reversing a nearly 2 percent rise in early trade.
Australian stocks ended in negative territory as traders digested the impact of the trillion-dollar package to the debt crisis in Europe. Weak trading across Asian markets despite sharp rally in Wall Street in the previous session also weighed on market sentiment with resources facing major brunt. The benchmark S&P/ASX200 Index declined 51.80 points, or 1.13% to 4,548, while the All-Ordinaries Index ended at 4,573, representing a loss of 49.00 points, or 1.06%.
The stock market in Japan also ended in negative territory after sharp gains in last session.. Fresh concerns about the implementation of the financial package to Europe impacted market sentiment. The benchmark Nikkei 225 Index fell 119.60 points, or 1.1%, to 10,411.10, while the broader Topix index of all First Section issues fell 12.54 points, or 1.3%, to 932.10
In Mumbai, the key benchmark indices edged lower as world stocks retreated after yesterday's big surge amid uncertainty over euro-zone countries' ability to reduce their deficits. The BSE 30-share Sensex was provisionally down 205.13 points or 1.18%, up close to 20 points from the day's low and off close to 255 points from the day's high. All the sectoral indices on the BSE were in the red. The market breadth, indicating the overall health of the market, was weak. Metal, realty, telecom and IT stocks fell. Hindalco Industries declined in a weak market despite strong Q4 result.
The Sensex had surged 3.35% on Monday, 10 May 2010, as global stocks rallied after European leaders on Sunday, 9 May 2010, announced a rescue package to prevent Greece's fiscal woes from triggering a broader sovereign-debt crisis.
In other markets, stocks in Singapore dropped 0.80%, Taiwan equities came off by 0.73% while Hong Kong's Hang Seng shed 1.37%.
In the U.S., stocks rallied off of last week's lows to open the week on Monday, as news of a nearly $1 trillion package engineered to maintain financial stability in Europe reassured the markets. The major averages all closed firmly in positive territory, recovering a significant portion of last week's steep losses. The European aid package totals up to 750 billion euros, or $970 billion, in loans and is aimed at safeguarding Euro zone nations facing debt issues following the crisis in Greece. The Dow jumped 404.71 points or 3.9% to 10,785, the Nasdaq advanced by 109.03 points or 4.8%to 2,375 and the S&P 500 surged up by 48.85 points or 4.4% to 1,160.
Light sweet crude oil futures for June delivery slipped after modest gains in the early trades. The commodity edged up above $77 per barrel but soon slipped as the market participants eyed the recovery in the US dollar. The commodity currently trades at $75.74, down $1.06 from the previous close.
BSE Bulk Deals to Watch - May 11 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
11/5/2010 504629 Anil Special SAMTUL INVESTMENTS LTD S 92100 18.21
11/5/2010 531591 Bampsl Sec PRAKASHCHAND GUPTA S 451888 1.14
11/5/2010 522004 Batliboi MAYUR MANGALDAS KOTHARI B 160000 32.28
11/5/2010 533108 BHILWRA TEC SHANTANU AGARWAL B 3157495 9.18
11/5/2010 533108 BHILWRA TEC LNJ FINANCIAL SERVICES LIMITED S 3157495 9.18
11/5/2010 531337 Channel Guide KAUSHAL INDRAVADAN MEHTA B 44000 14.38
11/5/2010 531337 Channel Guide RAJENDRA SHARAD KARNIK S 50000 14.36
11/5/2010 530839 Clio Infotech MANJU SURESH BAFNA B 200000 4.10
11/5/2010 530839 Clio Infotech PRIMORE SOLUTIONS PVT.LTD S 94344 4.10
11/5/2010 531270 Dazzel Conf PANKAJ JAIN B 30000 24.45
11/5/2010 517973 DMC Intl J V STOCK BROKING PRIVATE LIMITED B 128873 21.16
11/5/2010 517973 DMC Intl J V STOCK BROKING PRIVATE LIMITED S 128873 21.46
11/5/2010 526574 Enterprise Intl BRIJLATA SARDA B 45000 6.82
11/5/2010 526574 Enterprise Intl BASANT KUMAR MIMANI S 45000 6.82
11/5/2010 590094 FARMAX IND SANJEET KUMAR CHOURASIA S 110000 118.02
11/5/2010 590024 Fert & Chem Trv MANSUKH SECURITIES & FINANCE LTD B 34833 56.22
11/5/2010 590024 Fert & Chem Trv WALLFORT FINANCIAL SERVICES LTD B 78323 56.89
11/5/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. B 80756 56.13
11/5/2010 590024 Fert & Chem Trv RAJESHRI NAIMESH MEHTA B 69478 55.48
11/5/2010 590024 Fert & Chem Trv RAJESHRI NAIMESH MEHTA S 69478 55.71
11/5/2010 590024 Fert & Chem Trv TRANSGLOBAL SECURITIES LTD. S 80756 56.23
11/5/2010 590024 Fert & Chem Trv MANSUKH SECURITIES & FINANCE LTD S 34833 56.43
11/5/2010 505893 Hindustan Hardy BHUPENDRA CHHAGANLAL LALSODAGAR B 9413 82.32
11/5/2010 524019 Hydro S&S Inds SHREY SECURITIES PVT LTD B 33977 72.56
11/5/2010 524019 Hydro S&S Inds ALFA FISCAL SERVICES PVT LTD B 33791 69.89
11/5/2010 524019 Hydro S&S Inds ALFA FISCAL SERVICES PVT LTD S 33791 69.97
11/5/2010 533181 Intrasoft Tech ATHENA COMMERCIAL PRIVATE LIMITED B 99356 126.63
11/5/2010 514312 Jaihind Syn PRASHAM DINISHBHAI DOSHI B 25000 5.78
11/5/2010 514312 Jaihind Syn VIVEK PRADIP MADHANI B 25000 5.78
11/5/2010 514312 Jaihind Syn BHARATKUMAR VRAJLAL SUCHAK S 33000 5.78
11/5/2010 514312 Jaihind Syn JITENDRAKUMAR MANSUKHLAL SUCHAK S 34500 5.78
11/5/2010 514312 Jaihind Syn RAJESHKUMAR HASMUKHRAY SUCHAK S 33000 5.78
11/5/2010 530255 KAY Power BAMPSL SECURITIES LTD B 147830 14.74
11/5/2010 530255 KAY Power BAMPSL SECURITIES LTD S 83296 14.71
11/5/2010 530255 KAY Power KAUSHALYA GARG S 259000 14.69
11/5/2010 531602 Koffee Break SHAH JAYANTILAL SANJAY B 625000 2.04
11/5/2010 531602 Koffee Break CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 582210 2.11
11/5/2010 531602 Koffee Break CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 551215 2.07
11/5/2010 531602 Koffee Break AZURA PROJECTS PRIVATE LIMITED S 565175 2.04
11/5/2010 531602 Koffee Break ACHALA ELECTRICALS PRIVATE LIMITED S 430902 2.17
11/5/2010 531602 Koffee Break TEJSINGH DHANSINGH RAMOLA S 650000 2.05
11/5/2010 502250 Marathwada Refrac RAJESH AGGARWAL B 4000 335.05
11/5/2010 502250 Marathwada Refrac ANKITA GARWAL B 4000 335.05
11/5/2010 502250 Marathwada Refrac ABHA DALMIA S 8000 335.05
11/5/2010 590111 MASTER SANDEEP LINGAMNENI B 33336 31.87
11/5/2010 590111 MASTER RAMATULASI MORTHA S 58060 32.26
11/5/2010 531496 Omkar Overseas YUMA FINANCIAL SERVICES PVT LIMITED B 39297 65.03
11/5/2010 531496 Omkar Overseas DARI TEJAS K B 29900 64.94
11/5/2010 531496 Omkar Overseas ASHOK KUMAR BILGAIYAN B 66344 65.63
11/5/2010 531496 Omkar Overseas J V STOCK BROKING PRIVATE LIMITED B 37391 65.10
11/5/2010 531496 Omkar Overseas J V STOCK BROKING PRIVATE LIMITED S 37391 65.59
11/5/2010 531496 Omkar Overseas ASHOK KUMAR BILGAIYAN S 66344 65.47
11/5/2010 512097 Oregon Comm MAHESHKUMAR K VIRWANI B 5000 280.05
11/5/2010 512097 Oregon Comm BHAVESH SHANTILAL TRIVEDI B 47098 293.84
11/5/2010 512097 Oregon Comm KRUPA SANJAY SONI B 35792 290.05
11/5/2010 512097 Oregon Comm SHWETA DHIREN AGRAWAL B 8623 283.81
11/5/2010 512097 Oregon Comm NARESHCHAND JAIN B 7966 284.63
11/5/2010 512097 Oregon Comm NEHALBHAI PRATAPBHAI RATHOD B 8021 287.73
11/5/2010 512097 Oregon Comm RAHUL MAROTRAO SURYAWANSHI B 5000 293.80
11/5/2010 512097 Oregon Comm SONAL BHUPENDRABHAI KAMODIA S 15000 293.63
11/5/2010 512097 Oregon Comm NEHALBHAI PRATAPBHAI RATHOD S 8021 287.79
11/5/2010 512097 Oregon Comm NARESHCHAND JAIN S 7966 287.20
11/5/2010 512097 Oregon Comm SHWETA DHIREN AGRAWAL S 8623 285.33
11/5/2010 512097 Oregon Comm KRUNAL GOPALDAS RANA S 5565 293.96
11/5/2010 512097 Oregon Comm DHIRENKUMAR DHARAMDAS AGARWAL S 5400 284.74
11/5/2010 512097 Oregon Comm KRUPA SANJAY SONI S 46102 290.68
11/5/2010 512097 Oregon Comm BHAVESH SHANTILAL TRIVEDI S 53008 293.36
11/5/2010 512097 Oregon Comm AMUL G DESAI S 8133 280.96
11/5/2010 512097 Oregon Comm MAHESHKUMAR K VIRWANI S 5000 292.50
11/5/2010 531816 Panoramic Univ RAJ FINVEST B 82441 187.96
11/5/2010 531816 Panoramic Univ RAJ FINVEST S 80128 188.48
11/5/2010 532606 Parekh Alum SUDHIR KESHAVJI SAMPAT S 92000 335.00
11/5/2010 524136 Pee Cee Cosma ARVIND THAKORDAS MEHTA B 7901 81.45
11/5/2010 524136 Pee Cee Cosma VASANTBHAI BHANABHAI PATEL B 10000 79.35
11/5/2010 524136 Pee Cee Cosma VASANTBHAI BHANABHAI PATEL S 10000 82.15
11/5/2010 524136 Pee Cee Cosma ARVIND THAKORDAS MEHTA S 7901 80.02
11/5/2010 531467 Polypro Fibrils NEHA GYANESHWAR SHARMA B 44680 39.02
11/5/2010 531467 Polypro Fibrils PRITI JAYESH SHAH S 70000 38.71
11/5/2010 526492 Puneet Resins DHEERAJ KUMAR LOHIA B 37257 19.22
11/5/2010 526492 Puneet Resins MAHENDRA R VYAS S 29208 19.21
11/5/2010 530253 Rajasthan Tube VSL SECURITIES PVT LTD B 23392 11.72
11/5/2010 517522 Rajratan Global SAMEER N SHAH B 21965 227.96
11/5/2010 517522 Rajratan Global SAMEER N SHAH S 21965 224.21
11/5/2010 590077 Ranklin Sol SUDHAKARA REDDY IDAMAKANTI B 31001 63.07
11/5/2010 530271 Rich Capital ANKIT JAIN B 40000 93.72
11/5/2010 517500 Roto Pumps ALFA FISCAL SERVICES PVT LTD B 18254 121.29
11/5/2010 517500 Roto Pumps ALFA FISCAL SERVICES PVT LTD S 18254 121.71
11/5/2010 500350 RSWM PURVI VANIJYA NIYOJAN LTD B 235000 120.80
11/5/2010 500350 RSWM SHANTANU AGARWAL S 235000 120.80
11/5/2010 520075 Samkrg Pistons SACHIN JAIN B 165857 79.13
11/5/2010 520075 Samkrg Pistons SACHIN JAIN S 84629 78.76
11/5/2010 530025 Samyak Intl OMPARKASH GUPTA B 30022 14.05
11/5/2010 530025 Samyak Intl SUHANS CAPITAL MARKET PRIVATE LTD S 44409 14.09
11/5/2010 533056 SARK SYS FORT SHARE BROKING PVT LTD. B 100000 39.67
11/5/2010 533056 SARK SYS SWETA TIBREWALA S 81407 39.80
11/5/2010 511754 Shalibhadra Fin HIRA ARNEZ KASAD B 25000 32.99
11/5/2010 532323 Shiva Cement ISF SECURITIES LIMITED S 633998 8.83
11/5/2010 530433 Shiva Fert EMERGING STAR INVESTMENT PRIVATE LIMITED S 41001 90.86
11/5/2010 513699 Solid Stone CLT INVESTMENTS PVT LTD B 25000 59.00
11/5/2010 513699 Solid Stone LOGIX MICROSYSTEMS LIMITED S 25000 59.00
11/5/2010 533200 TALWALKAR MANSI SHARE & STOCK ADVISORS PRIVATE LIMITED B 143167 187.26
11/5/2010 533200 TALWALKAR SMART EQUITY BROKERS PRIVATE LIMITED B 1144304 183.24
11/5/2010 533200 TALWALKAR GENUINE STOCK BROKERS PVT. LTD. B 807764 182.32
11/5/2010 533200 TALWALKAR CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 1200775 179.07
11/5/2010 533200 TALWALKAR Naman Securities & Finance Pvt. Ltd. B 424744 180.00
11/5/2010 533200 TALWALKAR JMP SECURITIES PVT LTD B 204304 183.97
11/5/2010 533200 TALWALKAR MATRIX EQUITRADE PRIVATE LIMITED LIMITED B 121904 181.91
11/5/2010 533200 TALWALKAR OPG SECURITIES P LTD B 1890021 182.53
11/5/2010 533200 TALWALKAR MARWADI SHARES AND FINANCE LTD. B 150636 183.84
11/5/2010 533200 TALWALKAR RAKHI KALPESH BHANDARI B 129218 179.86
11/5/2010 533200 TALWALKAR CM SECURITIES PVT LTD B 407037 177.48
11/5/2010 533200 TALWALKAR RAKHI KALPESH BHANDARI S 129218 179.58
11/5/2010 533200 TALWALKAR CM SECURITIES PVT LTD S 407037 180.52
11/5/2010 533200 TALWALKAR OPG SECURITIES P LTD S 1890021 182.64
11/5/2010 533200 TALWALKAR MARWADI SHARES AND FINANCE LTD. S 150636 183.87
11/5/2010 533200 TALWALKAR Naman Securities & Finance Pvt. Ltd. S 376204 178.57
11/5/2010 533200 TALWALKAR JMP SECURITIES PVT LTD S 204554 183.82
11/5/2010 533200 TALWALKAR CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 1200775 178.55
11/5/2010 533200 TALWALKAR MATRIX EQUITRADE PRIVATE LIMITED LIMITED S 121904 181.94
11/5/2010 533200 TALWALKAR GENUINE STOCK BROKERS PVT. LTD. S 807764 182.30
11/5/2010 533200 TALWALKAR SMART EQUITY BROKERS PRIVATE LIMITED S 1144304 183.36
11/5/2010 533200 TALWALKAR MANSI SHARE & STOCK ADVISORS PRIVATE LIMITED S 124828 184.53
11/5/2010 590091 TRINETHRA IN PERLA T N V A R SUDARSAN S 215970 39.71
* B - Buy, S - Sell
NSE Bulk Deals to Watch - May 11 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
11-MAY-2010,BIRLAPOWER,Birla Power Solutions Ltd,EDELWEISS ESTATES P LTD,BUY,4125000,2.75,-
11-MAY-2010,GLORY,Glory Polyfilms Limited,RAJ FINVEST,BUY,459759,19.58,-
11-MAY-2010,GLORY,Glory Polyfilms Limited,TARA MISHRA,BUY,302041,19.10,-
11-MAY-2010,GRABALALK,Grabal Alok Impex Limited,NIRAJ REALTORS & SHARES PVT. LTD.,BUY,177000,48.74,-
11-MAY-2010,GSSAMERICA,GSS America Infotech Limi,MADHUKAR SHETH,BUY,9571,325.69,-
11-MAY-2010,HYDROS&S,Hydro S & S Ind. Ltd,ALFA FISCAL SERVICES PVT LTD,BUY,33846,69.26,-
11-MAY-2010,IFCI,IFCI Ltd.,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,4995304,52.44,-
11-MAY-2010,ISFT,Intrasoft Tech. Ltd,ATHENA COMMERCIAL PVT LTD,BUY,101629,129.52,-
11-MAY-2010,PANORAMUNI,Panoramic Universal Limit,RAJ FINVEST,BUY,50548,202.19,-
11-MAY-2010,PANORAMUNI,Panoramic Universal Limit,TARA MISHRA,BUY,121395,197.00,-
11-MAY-2010,SUNDRMBRAK,Sundaram Brake Lin Ltd.,M G L HOLDINGS Pvt Ltd.,BUY,24295,272.94,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,AAKARSH SRIVASTAVA,BUY,132367,181.57,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,140542,185.14,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,BUY,127355,183.08,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,BLUE PEACOCK SECURITIES PVT LT,BUY,205450,180.02,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,BP FINTRADE PRIVATE LIMITED,BUY,139149,186.76,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,C D INTEGRATED SERVICES LTD.,BUY,221117,184.32,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,CPR CAPITAL SERVICES LTD.,BUY,286818,181.03,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,1196838,178.37,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,DINESH MUNJAL(HUF),BUY,472032,181.92,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,G RAMAKRISHNA,BUY,132000,179.51,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,915525,182.28,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,272610,184.43,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,327346,183.28,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,MANSI SHARE & STOCK ADVISORS PRIVATE LIMITED,BUY,132789,188.14,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,209411,181.99,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,421683,182.17,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,OM INVESTMENTS,BUY,382108,180.48,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,PRASHANT JAYANTILAL PATEL,BUY,122184,185.58,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,R APPALA RAJU,BUY,215000,180.86,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,SARAVANA STOCKS PRIVATE LIMITED,BUY,150000,189.80,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,VAIBHAV DOSHI,BUY,297504,186.29,-
11-MAY-2010,BIRLAPOWER,Birla Power Solutions Ltd,EDELWEISS ESTATES P LTD,SELL,927094,2.95,-
11-MAY-2010,GLORY,Glory Polyfilms Limited,AJAYCHANDRAKANTPAWAR,SELL,125000,18.90,-
11-MAY-2010,GLORY,Glory Polyfilms Limited,EXCEL MERCANTILE PRIVATE LIMITED,SELL,250000,19.96,-
11-MAY-2010,GLORY,Glory Polyfilms Limited,HANSAVIJAYJOGADIA,SELL,125000,19.02,-
11-MAY-2010,GLORY,Glory Polyfilms Limited,RAJ FINVEST,SELL,330490,19.69,-
11-MAY-2010,GLORY,Glory Polyfilms Limited,TARA MISHRA,SELL,302194,18.97,-
11-MAY-2010,GRABALALK,Grabal Alok Impex Limited,RIPPLE BRINECHEM PVT LTD,SELL,180000,48.74,-
11-MAY-2010,GSSAMERICA,GSS America Infotech Limi,MADHUKAR SHETH,SELL,73471,328.85,-
11-MAY-2010,HYDROS&S,Hydro S & S Ind. Ltd,ALFA FISCAL SERVICES PVT LTD,SELL,33846,69.60,-
11-MAY-2010,HYDROS&S,Hydro S & S Ind. Ltd,MACHINO FINANCE PRIVATE LIMITED,SELL,60000,71.21,-
11-MAY-2010,ISFT,Intrasoft Tech. Ltd,ATHENA COMMERCIAL PVT LTD,SELL,13964,126.79,-
11-MAY-2010,PANORAMUNI,Panoramic Universal Limit,RAJ FINVEST,SELL,84873,201.31,-
11-MAY-2010,PANORAMUNI,Panoramic Universal Limit,TARA MISHRA,SELL,121395,195.61,-
11-MAY-2010,PARAL,Parekh Aluminex Limited,HALCYON TRADING PVT LTD,SELL,80000,335.00,-
11-MAY-2010,POLARIS,Polaris Software Lab Ltd,ORBITECH LIMITED,SELL,497368,187.01,-
11-MAY-2010,SRTRANSFIN,Shriram Trans Fin Co. Ltd,SMART PROFESSIONAL SERVICES PRIVATE LIMITED,SELL,1525000,564.02,-
11-MAY-2010,SUNDRMBRAK,Sundaram Brake Lin Ltd.,M G L HOLDINGS Pvt Ltd.,SELL,895,283.98,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,AAKARSH SRIVASTAVA,SELL,132367,181.79,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,AJAY ASSET MANAGEMENT PRIVATE LIMITED,SELL,133471,183.98,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,SELL,127355,183.08,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,BLUE PEACOCK SECURITIES PVT LT,SELL,205950,182.49,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,BP FINTRADE PRIVATE LIMITED,SELL,114778,188.73,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,C D INTEGRATED SERVICES LTD.,SELL,221117,184.41,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,CPR CAPITAL SERVICES LTD.,SELL,286818,181.10,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,1196838,179.13,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,DINESH MUNJAL(HUF),SELL,462032,181.61,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,G RAMAKRISHNA,SELL,132000,179.28,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,915525,182.49,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,270010,184.34,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,327346,183.43,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,MANSI SHARE & STOCK ADVISORS PRIVATE LIMITED,SELL,117053,186.83,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,209411,182.25,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,405914,181.98,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,OM INVESTMENTS,SELL,382108,180.62,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,PRASHANT JAYANTILAL PATEL,SELL,122184,185.51,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,R APPALA RAJU,SELL,215000,179.33,-
11-MAY-2010,TALWALKARS,Talwalkar Fitness Ltd,VAIBHAV DOSHI,SELL,297504,186.58,-
Rally fizzles out as euphoria over euro zone rescue plan fades
The key benchmark indices edged lower in choppy trade as world stocks retreated after Monday (10 May 2010)'s solid surge amid uncertainty over euro-zone countries' ability to reduce their deficits. The BSE 30-share Sensex fell 189.02 points or 1.09%, up close to 35 points from the day's low and off close to 275 points from the day's high. All the sectoral indices on the BSE were in the red. The market breadth, indicating the overall health of the market, was weak. Metal, realty, telecom and IT stocks fell. Hindalco Industries declined in a weak market despite strong Q4 result. Ranabaxy Laboratories, too, fell a weak market after turnaround Q1 result.
The Sensex had surged 3.35% on Monday, 10 May 2010, as global stocks rallied after European leaders on Sunday, 9 May 2010, announced a rescue package to prevent Greece's fiscal woes from triggering a broader sovereign-debt crisis.
Stocks were volatile. The market slipped into the red soon after a firm start. The market came off the lower level in early trade. But, the intraday recovery proved short-lived. The Sensex hit a fresh intraday low in morning trade. The market extended losses in early afternoon trade. Bargain hunting in select Sensex stocks helped the market trim losses in afternoon trade. The market once again weakened in mid-afternoon trade, with the Sensex hitting a fresh intraday low.
NSE's volatility index India VIX, a measure of traders' perception of near-term risks in the market based on options prices, jumped 6.92% to 25.81. The index had tumbled 11.9% to 24.14 on Monday, 10 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 shares fell after a massive rally on Monday, as doubts about Greece's ability to cut its fiscal deficit still persisted. The key benchmark indices in UK, France and Germany were down by 1.26% to 2.33%.
Asian equities fell on Tuesday, reversing initial gains, as lingering doubts about how Greece and other debt-laden euro zone countries will reduce their budget deficits put the brakes on the impressive relief rally in global stocks on Monday. The key benchmark indices in Hong Kong, China, Indonesia, Singapore, Japan, South Korea and Taiwan fell by between 0.44% to 1.90%.
Moody's Investors Service, in an unusual move regarding its sovereign ratings process, said on Monday it may downgrade its ratings on Portugal, and Greece's rating could fall to as low as junk.
The European Union and the International Monetary Fund agreed on Sunday to create a nearly $1 trillion rescue fund to support European nations burdened by heavy debt.
Meanwhile, higher inflation for April 2010 raised worries of further monetary tightening in China. China's consumer prices rose a more-than-estimated 2.8% in April from a year earlier, the fastest pace in 18 months. Another data showed industrial production rose 17.8% in April from a year earlier, after an 18.1% gain in March.
Trading in US index futures indicated that the Dow could fall 114 points at the opening bell on Tuesday, 11 May 2010.
US stocks racked up their biggest one-day gain in over a year on Monday as an agreement on a $1 trillion emergency rescue package from the European Union reduced fears a new credit crisis would derail European economies. The Dow Jones Industrial Average gained 404.71 points, or 3.90% to 10,785.14. The Standard & Poor's 500 Index rose 48.85 points, or 4.40% to 1,159.73. The Nasdaq Composite Index added 109.03 points, or 4.81% to 2,374.67.
Meanwhile, US market watchdogs and six major exchanges agreed new safeguards were needed to curb trading in plunging markets, an effort to address last Thursday's mysterious market free fall. Securities and Exchange Commission Chairman Mary Schapiro met on Monday with the leaders of major stock and option exchanges, as well as the brokerage industry watchdog, the Financial Industry Regulatory Authority (FINRA). Regulators still have not pinpointed the exact cause of last week's 20-minute market roller coaster, when many stocks dropped precipitously for several minutes before recovering most of their losses.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 1444 companies rose 30.3% to Rs 44322 crore on 29% rise in sales to Rs 415840 crore in the quarter ended March 2010 over the quarter ended March 2009.
Business at Indian service companies rebounded to a 21-month-high in April 2010 on new business and high input prices. The HSBC Markit Business Activity Index, based on a survey of 400 firms, rose to 62.1 in April, its highest since July 2008, and compared with 58.1 in March 2010.
The government will announce the industrial output data for the month of March 2010 on Wednesday, 12 May 2010. Industrial output rose by lower than expected 15.1% February 2010 and also lower than 16.7% rise in January 2010.
On Friday, 14 May 2010, the government will unveil data on inflation based on the wholesale prices for the month of April 2010. The headline inflation was 9.9% in March 2010. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
Inflation based on food prices rose 16.04% in the year through 24 April 2010, slower than previous week's annual rise of 16.61%. Fuel prices inflation remained at elevated level. The fuel price index rose 12.69% in the year through 24 April 2010, same as a week ago. The primary articles index rose 13.93% in the year through 24 April 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.
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 189.02 points or 1.09% to 17,141.53. The Sensex fell 226.10 points at the day's low of 17,104.45 in mid-afternoon trade. The index rose 48.60 points at the day's high of 17,379.15 in early trade.
The S&P CNX Nifty declined 57.45 points or 1.11% to 5,136.15.
The BSE Mid-Cap index fell 0.99% and the BSE Small-Cap index fell 0.85%. Both the indices outperformed the Sensex.
All the sectoral indices on BSE were in red. Metal index (down 2.57%), Realty index (down 2.43%), Healthcare index (down 1.59%), Power index (down 1.59%), Capital Goods index (down 1.22%), and Oil & Gas index (down 1.15%), underperformed the Sensex. Banking sector index Bankex (down 0.34%), Auto index (down 0.41%), Consumer Durables index (down 0.79%), FMCG index (down 0.82%), IT index (down 0.91%) and PSU index (down 0.92%), outperformed the Sensex.
BSE clocked turnover of Rs 4202 crore, lower than Rs 4329.67 crore on Monday, 10 May 2010.
The market breadth, indicating the overall health of the market, turned weak. The breadth was positive earlier in the day. On BSE, 1100 shares advanced as compared to 1760 shares that declined. A total of 93 shares remained unchanged.
Among the 30-share Sensex pack, 27 declined while the rest rose.
Index heavyweight Reliance Industries (RIL) fell 1.2% to Rs 1067.20 in volatile trade. The stock came off the day's high of Rs 1089. The stock had surged in the past two trading sessions after a favourable ruling in the Supreme Court late last week on gas dispute with Anil Ambani controlled Reliance Natural Resources (RNRL). The Supreme Court ordered the two firms to renegotiate a deal based on government policy on gas utilization.
Earlier, 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.
Telecom stocks fell after the telecom regulator suggested telecom firms to pay a one-time fee for holding radio-spectrum beyond 6.2 mega hertz (MHz) based on 3G prices. India's largest cellular services provider by sales Bharti Airtel fell 3.11%. India's second largest listed cellular services provider by sales Reliance Communications fell 4.95%. The stock was the top loser from Sensex pack. Idea Cellular declined 5.31%.
The telecom regulator on Tuesday also recommended ending restrictions on telecoms firms selling out, a move which will help consolidation in the world's fastest growing telecoms market. The current rules restrict telecom firms from selling majority stakes within three years of getting licence.
Cipla fell 1.84%, extending Monday's 6.42% losses. Net profit rose 8.93% to Rs 275.53 crore in Q4 March 2010 over Q4 March 2009. The result was announced after market hours on Friday, 7 May 2010.
Among other pharma stocks, Pfizer, Dr Reddy's Laboratories and Sun Pharmaceutical Industries fell by between 0.4% to 2.07%.
But, Ranbaxy Laboratories rose 0.88% to Rs 458.25 on strong Q1 result. The stock hit a high of Rs 469.50 and a low of Rs 449.80. The company reported consolidated net profit of Rs 960.58 crore in Q1 March 2010 compared to a net loss of Rs 767.33 crore in Q1 March 2009. The company announced the result during market hours today.
Capital goods stocks fell on profit taking. SKF India, BEML, ABB, Bharat Heavy Electricals, Larsen & Toubro, Praj Industries, Siemens fell by between 0.92% to 3.24%.
Realty stocks, too, fell on profit taking after Monday's sharp gains. Omaxe, Ackruti City, HDIL, DLF, Indiabulls Real Estate and Unitech fell by between 0.87% to 3.94%.
Metal and mining stocks fell amid worries that China could move to cool its stellar growth. JSW Steel, Sesa Goa, Tata Steel, Jindal Saw, Hindustan Zinc, Jindal Steel & Power, Sterlite Industries, Steel Authority of India fell by between 0.47% to 4.27%. China is the world's largest consumer of copper and aluminum.
Aluminum maker Hindalco Industries fell 3.28%. Net profit surged 147.03% to Rs 663.92 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours today.
IT pivotals fell amid uncertainty over euro-zone countries' ability to reduce their deficits. Europe is the second largest market for Indian IT firms. India's third largest software services exporter Wipro fell 0.66% on profit taking after the stock jumped 5.18% on Monday. India's second largest software services exporter Infosys fell 0.45%. The stock had risen 2.12%, on Monday. India's largest software services exporter TCS fell 1.88% on profit taking after Monday's near 4% rally.
Auto shares were mixed. India's largest small car maker by sales Maruti Suzuki India fell 1.87%. Maruti's 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 fell 1.75%, with the stock giving away a small portion of Monday's near 7% rally. 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.
But, India's largest tractor maker by sales Mahindra & Mahindra gained 1.51% extending Monday's 5.81% surge. Bajaj Auto rose 0.12%, extending Monday's 2.97% gains.
Car sales in India rose an annual 39.5% to 143,976 cars in April 2010 over April 2009, data from the Society of Indian Automobile Manufacturers (SIAM) showed. Sales of trucks and buses, a barometer of economic activity, rose 64.5 % to 49,086 units in April 2010 over April 2009, SIAM said.
FMCG shares fell on profit taking. Tata Tea, Hindustan Unilever, ITC and Dabur India fell by between 0.53% to 1.18%.
Interest rate sensitive banking shares fell on profit taking after Monday's sharp surge. India's largest private sector bank by net profit ICICI Bank fell 0.59% on profit taking after Monday's 5.12% rally. Its ADR surged 10.61% on Monday.
India's biggest commercial bank in terms of branch network State Bank of India fell 0.86% after Monday's 3.61% gains.
But, India's second largest private sector bank by net profit HDFC Bank rose 0.69%. Its ADR rose 7.83% on Monday.
India's largest mortgage lender by total income Housing Development Finance Corporation declined 0.67%. The company's board on 3 May 2010 approved a 5-for-1 stock-split.
Cals Refineries clocked the highest volume of 2.29 crore shares on BSE. Reliance Natural Resources (1.73 crore shares), Talwalkars Better Value Fitness (1.66 crore shares), Birla Power Solutions (1.5 crore shares) and IFCI (1.09 crore shares) were the other volume toppers in that order.
Talwalkars Better Value Fitness clocked the highest turnover of Rs 319.98 crore on BSE. Tata Steel (Rs 156.33 crore), Reliance Industries (Rs 140.25 crore), State Bank of India (Rs 110.17 crore) and Reliance Natural Resources (Rs 87.13 crore) were the other turnover toppers in that order.
Grey Market Premiums - May 11 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Nitesh Estate | 54 | Discount |
| Tarapur Transformers | 75 | 2 to 3 |
| Mandhana Industries Ltd. | 130 | 5 to 6 |
| Tara Health Foods | 180 to 190 | Withdraw |
| Sutlaj Jal Vidhut Nigam (SJVNL) | 26 | 2 to 3 |
| Jaypee Infra | 102 | Discount |
Market may extend Monday's sharp gains on higher Asian stocks; Hindalco Q4 result eyed
The market may extend Monday (10 May 2010)'s sharp gains on positive Asian stocks which rose for the second day in a row supported by European Union's massive rescue package on Sunday to contain Europe's debt crisis. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicate that the Nifty could open flat.
Asian stocks rose for the second day in a row on Tuesday, as investors extended their global buying frenzy after a nearly $1 trillion plan to contain Europe's debt crisis. The key benchmark indices in China, Japan, South Korea, Singapore and Taiwan rose by between 0.08% to 0.84%. But, key benchmark indices in Hong Kong and Indonesia fell by between 0.16% to 0.26%. Investors were reassured after the European Union and the International Monetary Fund agreed on Sunday to create a nearly $1 trillion rescue fund to support European nations burdened by heavy debt.
Meanwhile, China's consumer prices rose a more-than-estimated 2.8% in April from a year earlier, the fastest pace in 18 months. Another data showed industrial production rose 17.8% in April from a year earlier, after an 18.1% gain in March.
US stocks racked up their biggest one-day gain in over a year on Monday as an agreement on a $1 trillion emergency rescue package from the European Union reduced fears a new credit crisis would derail European economies. The Dow Jones Industrial Average gained 404.71 points, or 3.90% to 10,785.14. The Standard & Poor's 500 Index rose 48.85 points, or 4.40% to 1,159.73. The Nasdaq Composite Index added 109.03 points, or 4.81% to 2,374.67.
US market watchdogs and six major exchanges agreed new safeguards were needed to curb trading in plunging markets, an effort to address last Thursday's mysterious market free fall. Securities and Exchange Commission Chairman Mary Schapiro met on Monday with the leaders of major stock and option exchanges, as well as the brokerage industry watchdog, the Financial Industry Regulatory Authority (FINRA). Regulators still have not pinpointed the exact cause of last week's 20-minute market roller coaster, when many stocks dropped precipitously for several minutes before recovering most of their losses.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 1423 companies rose 29.1% to Rs 43204 crore on 28.9% rise in sales to Rs 406391 crore in the quarter ended March 2010 over the quarter ended March 2009.
Ranbaxy Laboratories, Hindalco Industries, Kotak Mahindra Bank, Bajaj Hindusthan, Bajaj Finserv, Bajaj Auto Finance, Jain Irrigation among others will announce their January-March 2010 quarter results today.
Business at Indian service companies rebounded to a 21-month-high in April 2010 on new business and high input prices. The HSBC Markit Business Activity Index, based on a survey of 400 firms, rose to 62.1 in April, its highest since July 2008, and compared with 58.1 in March 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.
The government will announce the industrial output data for the month of March 2010 on Wednesday, 12 May 2010. Industrial output rose by lower than expected 15.1% February 2010 and also lower than 16.7% rise in January 2010.
On Friday, 14 May 2010, the government will unveil data on inflation based on the wholesale prices for the month of April 2010. The headline inflation was 9.9% in March 2010. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
Inflation based on food prices rose 16.04% in the year through 24 April 2010, slower than previous week's annual rise of 16.61%, the latest government data showed. Fuel prices inflation remained at elevated level. The fuel price index rose 12.69% in the year through 24 April 2010, same as a week ago. The primary articles index rose 13.93% in the year through 24 April 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 recouped a large portion of previous week's steep losses in a single trading session on Monday, 10 May 2010, as global stocks rallied after European leaders on Sunday, 9 May 2010, announced a rescue package to prevent Greece's fiscal woes from triggering a broader sovereign-debt crisis. The BSE 30-share Sensex surged 561.44 points or 3.35% to 17,330.55 on Monday. The Sensex had lost 4.5% last week as the Greece debt crisis made investors edgy about its impact on global economic recovery.
As per provisional figures on NSE, foreign funds foreign funds bought shares worth Rs 263.96 crore and domestic funds bought shares worth Rs 30.25 crore on Monday.
Equities set to open higher on EU plan
Headlines for the day:
Supreme Court verdict won't affect any project of R-Infra
Tata may reject Mumbai supply order on R-Infra
Auto sales grow highest in a decade
Events for the day:
Major corporate action
Ex-date for interim dividend of GMM Pfaudler and Hikal
Results: Kotak Mahindra Bank, Ranbaxy Laboratories , Hindalco Industries
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares posted their biggest daily rise in more than 17 months on Monday after European central banks started to buy euro zone government bonds under a $1 trillion rescue package.
The US stocks racked up their biggest one-day gain in over a year on Monday as an agreement on a $1 trillion emergency rescue package from the European Union quelled fears a new credit crisis would derail European economies.
In today's trade, the Asian markets were trading in the positive territory. At the time of writing this report, SGX Nifty was trading 5 points higher.
Indian markets
The markets around the globe had made an amazing recovery from a sharp sell off last week, as relieved investors see the massive $1 trillion rescue package cobbled together by global policymakers to bail out debt-laden European Union (EU) countries.
Thee Asian markets were trading higher in their early trade, with modest gains as investors focused on the implementation of the European Union's bail out package. The Indian markets are expected to have a gap-up opening, following the track set by the global peers. Ahead through the session, markets are expected to trade in a positive bias. The foreign institutional investors (FIIs) continue to be the net sellers as the case in the entire last week on the back of profit booking.
The earnings of Kotak Mahindra Bank, Ranbaxy Laboratories and Hindalco Industries 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 inched on Monday, with the Nymex light crude oil for the June series rose by $1.69 per barrel, whereas in the metals space, the Comex Gold for the June series declined by $9.60 and the Comex Silver for the June series was down by $0.10 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 10 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs1589.90 crore, whereas the domestic mutual funds, on May 07, 2010, were the net sellers of the stocks to the tune of Rs13.70 crore.
Time to rest!
There are many things that we would throw away if we were not afraid that others might pick them up - Oscar Wilde.
Global markets have heaved a sigh of relief. European leaders have buried the hatchet to avert a possible split in the euro-zone and bolster confidence in the euro. Another major financial crisis has been avoided. But, it remains to be seen how fast the debt-ridden European nations can rebound from here on. A major task ahead of them is to overhaul their economic structures to return to sustainable growth while also keeping in check their high debt levels.
The global economic recovery has suffered a temporary setback. What that means is that the crisis-fighting stimulus will stay for some time to come in advanced nations. Even central banks in emerging countries like India may go slow in raising rates. The dollar may remain firm. Emerging markets with strong growth will benefit from ultra-soft monetary regime in western countries.
For the day, the outlook remains positive though the start will be lackluster. Asian markets are mixed. Stocks in China are up this morning, owing to strong set of economic data released today. The Hang Seng is in the red. Some choppiness is likely and the main Indian indices may once again slip into a rangebound trade. We would urge caution at these levels.
The NSE Nifty may face resistance at around 5250-5350 levels while on the downside support is expected to kick in at 4950-5050. One should wait till the Nifty achieves a decisive break out of this current range. A sustained move past 5400 or perhaps even 5500 may still take a while to materialise.
Global markets must remain fairly strong and there should not be any significant external accidents. Liquidity, which had dipped due to the European crisis, should also remain robust. In the immediate future, one needs to closely follow macro-economic data points like the IIP and monthly inflation. Both the reports will be out later this week.
Results Today: Bajaj Auto Finance, Bajaj Finserv, Bajaj Hindusthan, Havells India, Hindalco, Jain Irrigation, Jindal Drilling, Kotak Mahindra Bank, Ranbaxy and SREI Infra.
FIIs were net buyers of Rs2.64bn in the cash segment on Monday on a provisional basis, according to NSE web site. Local institutions were net buyers of Rs302.5mn. In the F&O segment, the foreign funds were net buyers of Rs26.8bn. FIIs were net sellers of Rs15.9bn in the cash segment on Friday, as per the SEBI data. Mutual Funds were net sellers of Rs137mn in the cash segment on the same day.
Crude takes a big leap
Prices recover part of their last week's losses
Crude oil ended substantially higher at Nymex on Monday, 10 May 2010. Prices rose as news of Europe's $970 billion financial-stabilization package cheered investors. It eased concerns about global recovery as of now and lent some respite regarding question of crude's demand in coming months. Prices rose today after shedding almost 13% last week.
On Monday, crude-oil futures for light sweet crude for June delivery closed at $76.8/barrel (higher by $1.69 or 2.3%). Prices hit a high of $78.52 during intra day trading. 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 2.3%.
Prices are 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 145% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
A decision by the European Union and International Monetary Fund leaders to pledge financial support to the eurozone brought about a wave of buying and short covering that caused the stock markets across globe to surge in its best single-session percentage gain in more than a year.
As per latest reports, countries in the eurozone that face financial uncertainty will be eligible to receive some 500 billion euros from the EU and another 250 billion euros from the IMF. In addition to those measures, the European Central Bank will buy eurozone bonds from the secondary market and the Federal Reserve has reactivated swap lines with foreign institutions. At least for the time being, those efforts have eased contagion concerns that have surrounded Greece for weeks.
In the currency market today, the dollar index, which measures the strength of the dollar against a basket of six currencies, fell by 0.9%.
Also on Monday, natural gas for June delivery rose 16 cents, or 3.9%, to $4.17 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 3 (0.08%) at Rs 3,448/barrel. Natural gas for May delivery closed at Rs 189.2, higher by Rs 6.8 (3.8%).
Daily News Roundup - May 11 2010
Vedanta Resources through its subsidiary Hindustan Zinc has acquired UK-based Anglo American Plc’s zinc business for US$1.34bn in an all-cash deal. (BS)
Fortis Healthcare will raise Rs3.8bn through issue of 22.35mn equity shares on a preferential basis to Singapore-based private equity firm GIC Special Investments Pte Ltd. (BS)
The Maharashtra government intervened with GAIL India to organise gas supply till end-June for one unit of Tata Power’s Trombay plant. (BS)
Bolivia has said that the multi-billion dollar contract it signed with Jindal Steel to develop an iron ore mine has not been rescinded, but the steel company would have to pay a penalty for not fulfilling the terms of the agreement. (BS)
Tata Power has said that it is not inclined to accept a Maharashtra government order asking it to supply around 300MW to Reliance Infrastructure, setting the stage for an unusual confrontation with the state government, reports Our Political Bureau from Mumbai. (ET)
US-based Purdue Pharma has filed a patent infringement suit against Ranbaxy, after it had applied for marketing approval of a low-cost version of Purdue’s pain relieving medicine, Oxycodone. (BS)
Radico Khaitan is 'in talks' with Britan's Diageo Plc to reduce stake in their joint venture Diageo Radico Distilleries Pvt Ltd. (FE)
Usha Martin has chalked out a Rs12bn capital expenditure program, to be invested over a period of 36 months. (BS)
Tata Teleservices has approached the communication to seek a level playing field and ending the discrimination against the company on the policy front. (ET)
Fidelity Growth Partners India, the private equity arm of Fidelity International, has taken a significant minority stake in PL Engineering, a subsidiary of Punj Lloyd. (ET)
Prithvi Information Solutions has acquired US-based Percentix, a business intelligence consulting company specialising in Enterprise Performance Management. (ET)
Axis Bank has acquired 1.2% stake in Karnataka Bank. (ET)
Telecom operators with more than 6.2 MHz of spectrum in GSM will have to pay more if the new Trai formula plans to replace subscriber-based allocation for spectrum. (BS)
The telecom regulator will unveil sweeping new rules that could strain the finances of some of India’s top mobile phone companies and set the stage for consolidation in a crowded and ultra-competitive market. (ET)
The Telecom Regulatory Authority of India plans to allow spectrum sharing between operators on commercial terms (ET)
The government has now formally banned foreign direct investment in cigarette manufacturing, closing the door on many foreign companies. (ET)
The finance ministry and the RBI have asked public sector banks to consider taking over urban cooperative banks, after their efforts to spur consolidation among large lenders drew a blank. (ET)
Merchandise exports grew by a healthy 54.1% in March to US$19.9bn. (FE)
Sensex on steroids…soars past 17k on EU aid
Indian stocks were on fire on Monday, with the benchmark indices registering one of their biggest single day gains since last year’s post-election rally. The BSE Sensex, which had slipped below 17,000 due to the euro-zone debt crisis, bounced back after the European Union and International Monetary Fund (IMF) approved a massive rescue mechanism to make nearly US$1 trillion in loans available to EU member countries in danger of going bankrupt.
"Also, short covering in index heavyweights like Tata Motors, Tata Steel, Hindalco and others saw the NSE Nifty surge past 5200 level in late trade," says Amar Ambani, Vice President Research IIFL.
In fact, Reliance Industries, ICICI Bank and HDFC Bank together lifted the Sensex by ~200 points. Finally, the Sensex rallied 561 points to end at 17,331 and NSE Nifty rose 175 points to close at 5,194. Among the 30 components of Sensex, 21 ended in the negative terrain and 9 ended in the green.
Last week was the worst for the Indian equity markets since October 2009 as FIIs turned net sellers as risk appetite stumbled amid mounting worries that the Greek fiscal crisis may spread to other debt-heavy EU members also.
Markets in Asia ended in the positive terrain; the Nikkei in Japan gained 1.6%, Australia's S&P/ASX was up 2.6%, the Hang Seng index in Hong Kong was up 2.5% and Shanghai SE Composite was marginally up 0.3%.
On the other hand, European indices were trading with positive bias as well, the DAX in Germany was up 4.4%, the CAC 40 index in France was up 8% and the FTSE in the UK surged 5%.
Among the BSE sectoral indices, the BSE Realty index was top gainer; the index gained 6.5%, followed by BSE Metal index up 6.5% and BSE Banking index was up 4.1%. Even the Mid-Cap index advanced 2.5% and the Small-cap index added 3%.
Outside the frontline indices, the big gainers in the broader market were Torrent Power, Mundra Port, Tulip Telecom and Bhushan Steel. On the other hand, loses included Shriram Transport, Chambal Fert, Godrej Cons and P&G.
Talwalkars Better Value Fitness, one of the largest and oldest fitness chains in India started off with healthy gains and gained momentum as the day progressed. The stock finally ended at Rs162.6 translating into a premium of 27% as compared to its issue price.
Talwalkars had priced its IPO between Rs123-128 per share price band. The issue was subscribed 28.39 times. FIIs put in bids for 5.46 crore shares as compared to 3.025mn shares reserved for the QIB category as a whole. DIIs, other than MF, put in bids for 9.24mn shares.
The non-institutional investors' (NII) portion was bid 51.47 times. The retail investors' portion was bid 8.4 times.
Shares of Cipla slipped sharply by 6% to end at Rs319 after the company announced that they were planning to acquire two manufacturing facilities for Rs820.2mn. The scrip opened at Rs345 it touched an intra-day high of Rs345 and a low of Rs317 and recorded volumes of over 0.7mn shares on BSE.
Shares of LIC Housing Finance rose over 5% to end at Rs956 after the CEO R.R. Nair, reported that the mortgage lender is planning to enter the banking business. In addition there were reports that the company is planning to raise Rs200bn. The scrip opened at Rs924 it touched an intra-day high of Rs960 and a low of Rs924 and recorded volumes of over 0.2mn shares on BSE.
Shares of Pratibha Industries shot up over 4.5% to end at Rs389 after the company secured a BOT Project worth Rs1bn for 'Construction of Bridges in Baramati City including maintenance of roads' from Maharashtra Stale Road Development Corporation Ltd.
The project involves '(i) construction of 2 bridges (ii) maintenance of the bridges and total road length of about 34 km within Baramati City (iii) commercial development of 8.4 hectors of land and (iv) collection of toll at 5 entry points of Baramati City for a period of 19 years and 4 months". The coat of the project is to be recovered through toll collection and land development.
Shares of Dish TV advanced by over 8% to end at Rs38.3 after it narrowed its Q4 quarter loss by 24% to Rs597.7mn from a year earlier. The scrip opened at Rs36.8 it touched an intra-day high of Rs38.5 and a low of Rs36 and recorded volumes of over 1.8mn shares on BSE.
Mixed end for precious metals
Gold fails to benefit from short covering
Precious metals ended mixed on Monday, 10 May at Comex. News of Europe's $970 billion financial-stabilization package reduced some demand for gold as a safe haven. But silver prices ended marginally higher. The dollar slipped today mainly against the euro though the euro pared part of its gains at the end.
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 $1,200.8 an ounce, lower by $9.6 (0.8%) an ounce on the New York Mercantile Exchange. It fell to a low of $1,198 during intra day trading. Last couple of days, gold prices had increased as uncertainty loomed over euro zone's problems. Gold for June delivery had 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 2.5%. 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 9.4%.
On Monday, July Comex silver futures ended higher by 10 cents (0.55%) at $18.55 an ounce. Last week, silver ended lower by 0.9%. 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 6.8%.
A decision by the European Union and International Monetary Fund leaders to pledge financial support to the eurozone brought about a wave of buying and short covering that caused the stock markets across globe to surge in its best single-session percentage gain in more than a year.
As per latest reports, countries in the eurozone that face financial uncertainty will be eligible to receive some 500 billion euros from the EU and another 250 billion euros from the IMF. In addition to those measures, the European Central Bank will buy eurozone bonds from the secondary market and the Federal Reserve has reactivated swap lines with foreign institutions. At least for the time being, those efforts have eased contagion concerns that have surrounded Greece for weeks.
In the currency market today, the dollar index, which measures the strength of the dollar against a basket of six currencies, fell by 0.9%.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.
At the MCX, gold prices for June delivery closed lower by Rs 335 (1.9%) at Rs 17,598 per ten grams. Prices rose to a high of Rs 17,882 per 10 grams and fell to a low of Rs 17,358 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 111 (0.38%) lower at Rs 28,466/Kg. Prices opened at Rs 28,538/kg and fell to a low of Rs 28,009/Kg during the day's trading.
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