Monday, May 17, 2010
Indian equities continued to drop for the second day on Monday. The Sensex ended on a lower note owing worries over euro zone debt concerns. Oil & gas, IT, auto and teck stocks traded lower, while capital goods and healthcare stocks gained.
The index plunged over 300 points in the early deals due to meltdown in overseas markets on concerns over Europe`s sovereign debt crisis.It continued to plummet as aggressive selling pressure was seen in heavweights like RIL and Infosys. It dropped to a low of 16,551 in the first half. Later the index pared some of its losses in the second half as European market opened flat. Finally, it made a smart recovery, erasing all its earlier losses at close.
On global front, European stocks declined on concern the region`s measures to reduce fiscal deficits will hamper economic growth. US index futures pared some of their losses. Asian stocks fell, dragging the MSCI Asia Pacific Index down the most in almost six months, as the euro declined against the yen on concern measures to reduce fiscal deficits in Europe will hurt economic growth.
At the close, the benchmark 30-share index, BSE Sensex declined 159.04 points or 0.94% at 16,835.56 with 24 components posting drop. Meanwhile, the broad based NSE Nifty fell by 33.60 points or 0.66% at 5,059.90 with 37 components posting drop.
Reliance Industries contributed fall of 57.16 points in the Sensex. It was followed by Infosys Technologies (26.05 points), Tata Consultancy Services (14.21 points), ICICI Bank (13.19 points) and HDFC Bank (11.01 points).
However, Larsen & Toubro contributed rise of 53.83 points in the Sensex. It was followed by State Bank Of India (10.86 points), Hindustan Unilever (8.5 points), Bharti Airtel (4 points) and Hindalco Industries (0.62 points).
Major gainers in the 30-share index were Larsen & Toubro (4.97%), Hindustan Unilever (2.52%), State Bank Of India (1.30%), Bharti Airtel (0.79%), Cipla (0.38%), and Hindalco Industries (0.21%).
On the other hand, DLF (3.95%), ACC (3.31%), Wipro (3.30%), Tata Motors (3.29%), Jaiprakash Associates (3.05%), and Reliance Infrastructure (2.92%) were the biggest losers in the Sensex.
Mid & Small-cap Space
The BSE Midcap index was at 6927.38 down by 91.54 points or by 1.3%.
The major losers were Aban Offshore (4.59%), A I A Engineering (1.34%), Alstom Projects India (1.32%), Ackruti City (1.1%) and Core Projects and Technologies (0.9%).
The BSE Smallcap index was at 8750.12 down by 184.28 points or by 2.06%.
The major losers were A B G Infralogistics (2.97%), Abhishek Industries (2.35%), Provogue (India) (2.1%), A B G Shipyard (1.74%) and Aarti Industries (1.15%).
Sectors in Limelight
The Oil & Gas index was at 9,689.39, down by 378.59 points or by 3.76%. The major losers were Aban Offshore (4.59%), Reliance Industries (2.57%), Oil & Natural Gas Corporation (1.72%), Bharat Petroleum Corporation (1.33%) and Cairn India (1.1%).
The Metal index was at 15,868.05, down by 598.08 points or by 3.63%. The major losers were Welspun Corp (2.49%), Hindustan Zinc (2.43%), Tata Steel (2.25%), JSW Steel (1.98%) and Sterlite Industries (India) (0.19%).
The Realty index was at 3,259.10, down by 114.53 points or by 3.39%. The major losers were D L F (3.95%), Housing Development and Infrastructure (2.41%), Peninsula Land (2.22%), Anant Raj Industries (1.2%) and Ackruti City (1.1%).
On the other hand, the Capital Goods index was at 13,596.79, up by 130.57 points or by 0.97%. The major gainers were A B B (23.44%), Siemens (5.3%), Larsen & Toubro (4.97%), Areva T & D India (2.38%) and Praj Industries (0.95%).
Market breadth was negative with 1,068 advances against 1,783 declines.
Value and Volume Toppers
Aban Offshore topped the value chart on the BSE with a turnover of Rs. 2,487.67 million. It was followed by State Bank Of India (Rs. 1,910.52 million), Tata Steel (Rs. 1,883.10 million) and Larsen & Toubro (Rs. 1,771.55 million).
The volume chart was led by Cals Refineries with trades of over 32.79 million shares. It was followed by Birla Power Solutions (12.78 million), Reliance Natural Resources (7.41 million) and Suzlon Energy (5.93 million).
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European stocks edge higher on Monday reversing some of ground that they lost in the previous session on Euro zone debt worries. FTSE 100 was trading higher by 1.04%.
All the major Asian indices closed in negative territory as Shanghai Composite tumbled over 5%. SGX Nifty closed 22 points lower.
US stock futures signal lower opening on the Wall Street as Euro zone debt worries are still in the investor's minds. Oil stocks may be in focus as crude oil futures fell below $70 a barrel.
Markets across the globe were in a complete bear grip with sentiments taking a beating. The domestic market witnessed heavy sell-off all through the day. The continuous heavy fall must have made the investors jittery that the markets will lead to a bloodbath. But, engineering major, Larsen & Toubro (L&T), along with a slightly positive European markets helped the domestic bourses recover from the day's low.
Tracking weak Asian markets and Friday's (May 14, 2010) heavy sell-off in Europe and US markets, as euro fell to its four-year lows on Euro zone debt worries and heavy selling in oil & gas stocks as crude oil price dropped nearly $70 per barrel, the 30-benchmark Sensex started off weak. The Sensex opened 23 points lower at 16962 and this was also its day's high. The market went on falling with no hopes of recovery and expanded losses wildly. The Nifty breached 5000 levels. The Indian indices touched the two-and-half months' low.
However, post stellar Q4 results by Larsen & Toubro and European markets turning positive, much to surprise, after briefly trading in red boosted the sentiments, which led to some smart recovery. However, the BSE bellwether recovered more than 285 points from the low of 16551. Despite the recovery, the market was unable to close positive. At finishing line, the Sensex quoted at 16836, lower by 159 points. The Nifty managed to close above 5000 levels at 5060, 34 points lower.
The market breadth was extremely negative as declining stocks outnumbered gaining stocks. Of the 2,889 stocks traded on the BSE, 1,746 stocks declined, whereas 1,056 stocks advanced. Eighty seven stocks closed unchanged.
Sectoral & stock screening
Of the 13 sectoral indices in the BSE, eight were battered. Among the major losers, BSE Oil & Gas lost 1.85%, the BSE IT dropped 1.80%, BSE Auto shed 1.27% and BSE TECk declined by 1.27%. Bucking the downtrend, BSE CG (consumer goods) gained 2.80%, BSE HC (health care) advanced 0.53% and BSE FMCG (fast moving consumer goods) up 0.38%.
Among 'A' group stocks: Gainers' were - ABB surged the most by 23.44% after its parent company made an open offer at Rs900 per share, followed by Piramal Healthcare that rose 6.78%, and Everest Kanto Cylinder that jumped 5.39%. Losers' were -Aban Offshore topped the losers' chart, with a loss of 4.59%, followed by Punj Lloyd that slid by 4.36%, and Bhushan Steel that fell by 4.27%.
Anil Dhirubhai Ambani Group company Reliance Natural Resources continued to witness highest trading with over 0.74 crore shares changing hands on the BSE, followed by wind turbine major Suzlon Energy (0.59 crore shares), India's second largest developer Unitech (0.47 crore shares), industrial finance company IFCI (0.41 crore shares) and sugar major Shree Renuka Sugars (0.36 crore shares).
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
17/5/2010 523204 Aban Offshore GENUINE STOCK BROKERS PVT. LTD. B 286406 804.28
17/5/2010 523204 Aban Offshore GENUINE STOCK BROKERS PVT. LTD. S 286406 804.86
17/5/2010 532910 Anil Products CM SECURITIES PVT LTD B 40020 123.50
17/5/2010 504629 Anil Special SAMTUL INVESTMENTS LTD S 200000 20.00
17/5/2010 521131 Anjani Fabrics AMBUJA FASHION PVT LTD S 50000 26.23
17/5/2010 517001 Birla Power EDELWEISS ESTATES P LTD B 3781623 2.55
17/5/2010 590061 Brushman India THIRUVILLAMALA MAHADEVAN HARIHARAN B 54436 8.88
17/5/2010 533026 Chemcel Bio ACME FURNITURE PVT LTD B 186000 9.27
17/5/2010 533026 Chemcel Bio NIOL IMPEX PVT LTD S 186000 9.26
17/5/2010 531270 Dazzel Conf SANJAY SINGH THAKUR B 30000 29.25
17/5/2010 531270 Dazzel Conf SUMIT CHANDHOK HUF B 42500 28.30
17/5/2010 517973 DMC Intl J V STOCK BROKING PRIVATE LIMITED B 211810 14.42
17/5/2010 517973 DMC Intl J V STOCK BROKING PRIVATE LIMITED S 211811 14.48
17/5/2010 517973 DMC Intl NAVDEEP GUPTA S 192440 14.81
17/5/2010 517973 DMC Intl CNB FINWIZ LIMITED S 196224 14.35
17/5/2010 511668 Fact Enterprise AKASH SECURITIES PRIVATE LTD B 40000 34.25
17/5/2010 511668 Fact Enterprise DKG SECURITIES PVT LTD S 40000 34.25
17/5/2010 532022 Filatex Fash PRADEEPKUMAR KAYAN B 80464 9.20
17/5/2010 500655 Garware Poly MONIKA HOLDINGS PRIVATE LIMITED B 150000 91.50
17/5/2010 500655 Garware Poly SARITA GARWARE INVESTMENTS CONSULTANTS PRIVATE LIMITED B 531379 91.55
17/5/2010 500655 Garware Poly SONI AGARWARE S 217514 91.64
17/5/2010 500655 Garware Poly MONIKARAJIV GARWARE MODI S 304430 91.50
17/5/2010 500655 Garware Poly SARITA SHASHIKANT GARWARE S 259435 91.50
17/5/2010 532857 Glory Polyfilms SAAKSHI SHARES PVT LTD S 187511 17.57
17/5/2010 514312 Jaihind Syn KUNTAL NARECHANIA B 25000 7.00
17/5/2010 506919 Makers Lab KISHAN MOHTA S 25000 41.83
17/5/2010 502250 Marathwada Refrac RAKESH VALLABHDAD THAKKAR B 4500 390.02
17/5/2010 502250 Marathwada Refrac ABHA DALMIA S 17500 393.30
17/5/2010 590111 MASTER PARVATHANENI MOUNISHA B 28266 30.95
17/5/2010 590111 MASTER SATYANARAYANA VARAPRASAD GARIKIPATY B 68672 31.08
17/5/2010 590111 MASTER PARVATHANENI MOUNISHA S 28450 31.46
17/5/2010 590111 MASTER NAGESH YELEWARAPU S 36900 30.90
17/5/2010 590060 MK Exim LALITJKACHHADIA B 18100 45.71
17/5/2010 526263 Moldtek Tech USHA KUMARI S 21490 63.40
17/5/2010 519479 Omega Agseeds VSL SECURITIES PVT LTD B 35000 13.47
17/5/2010 519479 Omega Agseeds CHANDRAKANT VADILAL SHAH S 25700 13.47
17/5/2010 531496 Omkar Overseas BABULAL KOTECHA PANKAJ B 60000 61.35
17/5/2010 531496 Omkar Overseas DIPAL DEVENDRAKUMAR SHAH S 55001 61.25
17/5/2010 512097 Oregon Comm KRUNAL GOPALDAS RANA B 5948 277.60
17/5/2010 512097 Oregon Comm DHIRENKUMAR DHARAMDAS AGARWAL B 10192 277.51
17/5/2010 517417 Patels Airtmp REENA JAIN B 33718 99.28
17/5/2010 530589 Prima Plast TECHNO EQUITY BROKING PRIVATE LIMITED B 65000 12.70
17/5/2010 530589 Prima Plast DHWANI FINANCE AND INVESTMENT PRIVATE LIMITED S 65000 12.70
17/5/2010 503873 Priyadarshini Spn NATWEST INVESTMENTS LTD B 72000 41.67
17/5/2010 503873 Priyadarshini Spn KONERU INVESTMENTS PVT LTD S 62925 41.85
17/5/2010 590077 Ranklin Sol DEEPAK KUMAR VYAS S 25911 75.98
17/5/2010 524480 Riddhi Siddhi HATHI TRADING COMPANY PVT LTD S 68472 286.99
17/5/2010 521206 Samtex Fashions CAMEL FOODS PVT. LTD., B 41596 27.03
17/5/2010 526510 Shakti Metdor RANJIT KUMAR M S 15000 181.00
17/5/2010 507514 Som Distill RAMLALSALUJA B 110923 28.29
17/5/2010 531645 Southern Ispat ARISTRO FINANCIAL SERVICES LTD B 75000 20.98
17/5/2010 531373 Suave Hotels JITENDRA SHANTARAM BERDE B 70000 46.61
17/5/2010 531373 Suave Hotels DEEPIKA SANJAY CHURIWALA S 126602 45.96
17/5/2010 531373 Suave Hotels SANJAYKUMAR CHURIWALA S 67660 45.81
17/5/2010 533200 TALWALKAR SMART EQUITY BROKERS PRIVATE LIMITED B 196229 174.70
17/5/2010 533200 TALWALKAR CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 137564 168.66
17/5/2010 533200 TALWALKAR OPG SECURITIES P LTD B 233676 172.81
17/5/2010 533200 TALWALKAR SMART EQUITY BROKERS PRIVATE LIMITED S 196229 175.03
17/5/2010 533200 TALWALKAR CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 137564 169.10
17/5/2010 533200 TALWALKAR OPG SECURITIES P LTD S 233676 172.82
17/5/2010 531249 Well Pack Papers BHARATKUMAR BALDEVBHAI PARMAR B 626015 31.19
17/5/2010 531249 Well Pack Papers BHARATKUMAR BALDEVBHAI PARMAR S 626015 31.26
17/5/2010 522029 Windsor Mach HITESH SHASHIKANT JHAVERI B 82221 49.38
17/5/2010 522029 Windsor Mach MANTRI SUBHASHCHAND HUF S 70000 45.85
* B - Buy, S - Sell
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
17-May-10,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,406985,805.42,-
17-May-10,ABAN,Aban Offshore Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,294110,802.91,-
17-May-10,BIRLAPOWER,Birla Power Solutions Ltd,EDELWEISS ESTATES P LTD,BUY,2467809,2.5,-
17-May-10,GLORY,Glory Polyfilms Limited,RAJ FINVEST,BUY,346758,17.85,-
17-May-10,GLORY,Glory Polyfilms Limited,SAAKSHI SHARES PVT.LTD.,BUY,138790,17.84,-
17-May-10,GSSAMERICA,GSS America Infotech Limi,MADHUKAR CHIMANLAL SHETH,BUY,5603,329.31,-
17-May-10,TALWALKARS,Talwalkar Fitness Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,137605,168.86,-
17-May-10,TALWALKARS,Talwalkar Fitness Ltd,PANTHER FINVEST PVT. LTD.,BUY,103535,171.72,-
17-May-10,TALWALKARS,Talwalkar Fitness Ltd,RELIANCE CAPITAL TRUSTEE CO LTD A/C RELIANCE MONTHLY INCOME,BUY,125200,166.58,-
17-May-10,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,406985,806.25,-
17-May-10,ABAN,Aban Offshore Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,294110,803.28,-
17-May-10,BIRLAPOWER,Birla Power Solutions Ltd,EDELWEISS ESTATES P LTD,SELL,8104815,2.57,-
17-May-10,GLORY,Glory Polyfilms Limited,RAJ FINVEST,SELL,346758,17.73,-
17-May-10,GLORY,Glory Polyfilms Limited,SAAKSHI SHARES PVT.LTD.,SELL,243866,17.66,-
17-May-10,GSSAMERICA,GSS America Infotech Limi,MADHUKAR CHIMANLAL SHETH,SELL,78271,328.23,-
17-May-10,TALWALKARS,Talwalkar Fitness Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,137605,168.74,-
17-May-10,TALWALKARS,Talwalkar Fitness Ltd,PANTHER FINVEST PVT. LTD.,SELL,125535,173.54,-
Major benchmarks down with hefty losses on first session of week
Asian stocks endured steep losses in the first session of the week, starting off in a depressing manner as worries over the European debt defaults and the future of the Euro zone continued to make rounds. The indices were buffeted on concerns about overheating in China too; making the investors jittery on both the internal and external counts. US Dollar snapped a four-year high against the Euro today, reflecting a tremendous amount of risk aversion all the risky assets fell sharply. Gold managed to hold strong though, as times of immense uncertainly and a cataclysmic event like a series of probable sovereign defaults kept the demand for safe haven strong. Stocks have been floundering in the last couple of weeks, and the strength in safe havens is making the outlook uncertain even after the benchmark indices witnessed a correction of around 8-12% in last few weeks, coming off their highs.
China's Premier Wen Jiabao said over the weekend that the country faced uncertainties and tough challenges in balancing its economic structural mix, hinting that Beijing is hesitant to tighten its monetary policies even further to curb inflation. China must avoid “piling on adjustment policies”, which carry risks of "negative consequences" on the economy, amid complex domestic and international conditions, Wen said. This spooked the investors who were already contemplating about serious faultiness under the Eurozone after the French President Nicolas Sarkozy threatened to pull France out of the euro during negotiations over the aid package to Greece, if certain criteria are not met.
China's key stock index tumbled more than 5 percent on Monday to its lowest close in a year, led by property stocks, as retail investors fled the market after a month-long rout sparked by the government's severe clampdown on surging property prices. The Shanghai Composite Index closed at 2,559.9 points, its lowest close since May 4, 2009, and posted its biggest one-day percentage drop in more than eight months as panic selling emerged in the afternoon. The index has dropped nearly 20 percent in about a month.
The Australian stocks ended the day on a weak note, having plunged more than 3% amid growing concerns about the debt crisis and its contagion effect in Europe. Sharp drop in indices on Wall Street on Friday and plunge in other markets across the region aggravated the fears as trader preferred to sell-off and move to the sidelines. The benchmark S&P/ASX200 Index plunged 143.90 points, or 3.12% to 4,467, while the All-Ordinaries Index ended at 4,501, representing a loss of 142.30 points, or 3.06%.
On the economic front, a report released by the Australian Bureau of Statistics revealed that housing finance for owner occupation, excluding alterations and additions, declined a seasonally adjusted 3.4% month-on-month in March to A$13.53 billion. The report further noted that, commercial finance rose 1.1% to A$28.37 billion, while personal finance decreased 1.3% to A$6.87 billion and lease finance climbed 5.8% to A$388 million, all in seasonally adjusted terms.
The Japanese stocks plunged as resources slipped and exporters were hurt on ideas that the European crisis would hurt the export demand. The benchmark Nikkei 225 Index dropped 226.75 points, or 2.17%, to 10,236, while the broader Topix index of all First Section issues was down 16.02 points, or 1.71%, to 920.
On the economic front, a report released by the Cabinet Office revealed that private sector machinery orders climbed a seasonally adjusted 5.4% in March. The report revealed that, on an annual basis, core machinery orders climbed 1.2%, higher than forecasts for a marginal 0.2% increase, following a sharp 7.1% plunge in the previous month. For the first quarter of calendar 2010, machinery orders advanced 2.9%, higher than economists' forecast for a 1.6% gain. Separately, the Bank of Japan revealed that an index measuring prices for domestic corporate goods increased 0.4% in April to 103.0, compared to the previous month.
In Mumbai, stocks extended their recent bearishness. As per provisional figures, the BSE 30-share Sensex was down 165.33 points or 0.97% to 16,829.27. The Sensex fell 443.60 points at the day's low of 16,551 in early afternoon trade. The index fell 32.68 points at the day's high of 16961.92 in early trade. The S&P CNX Nifty was down 36.70 points or 0.72% to 5,056.80 as per provisional figures, off the day's low of 4,966.25. The BSE Mid-Cap index was down 0.2% while the BSE Small-Cap index was down 0.65%.
In other markets, Hang Seng shed 2.14%, Straits Times dropped 0.75% while TSEC lost 2.23%.
In the U.S., stocks saw sharp losses for a second straight session on Friday, as concerns regarding the impact of the European debt crisis overshadowed continued improvement on the U.S. economic front. The major averages all finished firmly in negative territory but still higher on the week. The Dow dipped by 162.79 points or 1.5% to 10,620, the Nasdaq closed down 47.51 points or 2% at 2,347 and the S&P 500 slid by 21.76 points or 1.9% to 1,136.
In currencies, US dollar edged near 1.2200 levels against the Euro- its four-year highs in the early trades. The currency moderated slightly and was seen trading above 1.2300 in the London trades.
Light sweet crude oil futures for June delivery edged up after falling under $70 in the early moves. The counter was last seen quoting at $71.83, up 29 cents per barrel in electronic trading.
Rally in index heavyweight L&T aided an intraday rebound on the domestic bourses triggered by recovery in European stocks and US index futures. Intraday volatility was high. The BSE 30-share Sensex lost 159.04 points or 0.94%, up close to 285 points from the day's low and off close to 126 points from the day's high. The 50-unit S&P CNX Nifty which had fallen below the psychological 5,000 mark, regained that level in the second half of the trading session.
Shares of India's largest engineering and construction firm by sales Larsen & Toubro surged after strong Q4 results and was the top gainer from the Sensex pack. But the broad market depicted weakness. Eight out of 13 sectoral indices were negative. The market breadth was weak even as BSE Mid and Smal-Cap indices fell by a lesser extent than some Sensex stocks.
Intraday volatility was high. The market extended losses after a weak opening triggered by lower Asian stocks. Intermittent recovery was witnessed after a steep intraday slide. The market staged a strong intraday rebound in afternoon trade as European stocks recovered from initial fall. The market weakened again shortly. The market once again recovered from lower level in mid-afternoon trade. The recovery gathered steam in late trade. Stocks weakened again at the fag end of the trading session.
NSE's volatility index India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, rose 2.41% to 27.17. 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.
Worries over fiscal problems in southern Europe triggered outflow from China and India funds during the week ended 12 May 2010. As a result, Asia funds, excluding Japan, saw only $27 million inflows, their worst week in well over a year, as per data from global fund tracker EPFR Global.
Asian stocks fell on Monday as concerns over the long-term health of the euro zone and weak US earnings dampened investor appetite for risk. The key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Singapore and Taiwan fell by between 0.77% to 5.07%.
US index futures reversed initial sharp losses. Trading in US index futures indicated that the Dow could gain 7 points at the opening bell on Monday, 17 May 2010.
US stocks fell on Friday 14 May 2010 on a combination of weak earnings from retailers, Senate backing for limits on credit card fees and concerns over the sustainability of European public debt. The Dow Jones Industrial Average dropped 162.79 points or 1.51% to end at 10,620.16. The Standard & Poor's 500 Index fell 21.76 points, or 1.88% to 1,135.68. The Nasdaq Composite Index lost 47.51 points, or 1.98% to close at 2,346.85.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 2000 companies rose 24.7% to Rs 54,230 crore on 25.5% rise in sales to Rs 5,42,287 crore in the quarter ended March 2010 over the quarter ended March 2009.
On the macro front, while the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
The latest economic data showed industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
India Meteorological Department (IMD) said on Monday, 17 May 2010, that conditions are favourable for further advance of monsoon over more parts of Bay of Bengal and remaining parts of Andaman during next 48 hours. The southwest monsoon has set over the Andaman and Nicobar islands and some parts of southeast Bay of Bengal.
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 also holds key.
The Reserve Bank of India (RBI) 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.
RBI governor D Subbarao on 11 May 2010 said India prefers long-term capital inflows to short-term flows and non-debt flows to debt flows. There is no proposal to impose a Tobin type tax to rein in excessive capital inflows, the RBI governor said. However, it needs reiterating that no policy instrument is clearly off the table and the choice of instruments will be determined by the context, Subbarao added.
The BSE 30-share Sensex fell 159.04 points or 0.94% to 16,835.56. The Sensex fell 443.60 points at the day's low of 16,551 in early afternoon trade. The index fell 32.68 points at the day's high of 16,961.92 in early trade.
The S&P CNX Nifty declined 33.60 points or 0.66% to 5059.90, off the day's low of 4,966.25.
The BSE Mid-Cap index fell 0.21%. The BSE Small-Cap index fell 0.68%. Both the indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1746 shares declined as compared to 1056 shares that advanced. A total of 87 shares were unchanged.
BSE clocked turnover of Rs 3969 crore, slightly higher than Rs 3950 crore on Friday, 14 May 2010.
Eight out of 13 sectoral indices were negative. Teck index index (down 1.27%), Auto index (down 1.27%), IT index (down 1.80%), Oil & Gas index (down 1.85%), underperformed the Sensex.
The Capital Goods index (up 2.80%), BSE Healthcare index (up 0.53%), FMCG index (up 0.38%) Power index (up 0.10%), Metal index (down 0.15%), PSU index (down 0.31%), banking sector index Bankex (down 0.50%), BSE Realty index (down 0.93%), outperformed the Sensex. The Consumer Durables index was flat, outperforming the Sensex.
On the Sensex, 24 stocks declined, while others rose.
India's largest thermal power producer by sales NTPC fell 0.95% as net profit declined 4.52% to Rs 2017.65 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours today.
Reliance Infrastructure fell 2.92% as net profit fell 27.46% to Rs 251.09 crore in Q4 March 2010 over Q4 March 2009. The company announced the result on Saturday, 15 May 2010.
Index heavyweight Reliance Industries (RIL) fell 2.57% to Rs 1016.75, with the stock extending losses for the third straight day. Nevertheless, the stock came off day's low of Rs 1010. RIL has agreed with Russia's Sibur to set up a joint venture in India to make butyl rubber amid rising demand from the auto industry. As per the agreement, butyl rubber will be produced at RIL's integrated petrochemical site in Jamnagar.
The RIL stock had surged recently after a favourable ruling in the Supreme Court early this month 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.
India's largest engineering and construction firm by sales Larsen & Toubro jumped 4.97% to Rs 1605.55 as net profit rose 44% to Rs 1438.10 crore in Q4 March 2010 over Q4 March 2009. The stock came off the day's low of Rs 1475.10. The stock was the top gainer from the Sensex pack. The company announced the result during market hours today.
L&T's order inflow jumped 90% to Rs 23843 crore in Q4 March 2010 over Q4 March 2009. The company's order book as at 31 March 2010 stood at Rs 1,00,239 crore, which is 2.7 times its sales of Rs 36,966 crore for the year ended March 2010, giving strong revenue visibility.
India's largest cellular services provider by sales Bharti Airtel rose 0.79% on bargain hunting after recent sharp fall triggered by telecom regulator Telecom Regulatory Authority of India (Trai)'s recommendation that telecom firms pay a one-time fee for holding radio-spectrum beyond 6.2 mega hertz (MHz) based on 3G prices.
Bharti Airtel said the telecoms regulator's proposals on allocation of second-generation (2G) spectrum are shocking, arbitrary and retrograde and are against all existing global norms for spectrum allocation. The company said it was confident that the Department of Telecommunications (DoT) and that the government will take a rational approach and summarily reject these arbitrary, impractical and perverse recommendations.
But, India's second largest listed cellular services provider by sales Reliance Communications fell 2.01% to Rs 141.60 as consolidated net profit declined 22.99% to Rs 4655 crore in the year ended March 2010 over the year ended March 2009. The stock hit a 52 week low of Rs 140.05 today. Chairman Anil Ambani said RCom will be able to sustain profitable growth in the coming quarters despite a highly competitive environment. The company announced the result on Saturday, 15 May 2010.
Interest rate sensitive banking shares cut steep intraday losses. India's largest private sector bank by net profit ICICI Bank fell 1.03% to Rs 902.40, with the stock falling for the second straight day. Nevertheless, the stock came off the day's low of Rs 883.55. Its ADR fell 4.06% on Friday.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) rose 1.30% to Rs 2251.45. The stock came off the day's low of Rs 2141.75. SBI expects its advances to grow by 22-23% in the current financial year. SBI's net profit declined 31.93% to Rs 1866.60 crore in Q4 March 2010 over Q4 March 2009. The bank announced the result during market hours on Friday, 14 May 2010.
India's second largest private sector bank by net profit HDFC Bank fell 1.24% with the stock falling for the third straight day. Its ADR fell 1.61% on Friday.
India's largest mortgage lender by total income Housing Development Finance Corporation fell 0.86% to Rs 2754.65 with the stock falling for the second straight day. But, the stock came off the day's low of Rs 2719.50. The company's board on 3 May 2010 approved a 5-for-1 stock-split.
HDFC has reportedly extended concessional home loan scheme till 30 June 2010. Under the scheme, HDFC would offer a fixed interest rate of 8.25% up to March 2011, 9% for the next one year and a floating rate thereafter. The scheme was scheduled to end on 30 April 2010.
Auto shares also fell on profit taking. India's top truck maker by sales Tata Motors fell 3.29%, with the stock falling for the second straight day. The company's global vehicles sales rose 53% to 77,732 units in April 2010 over April 2009. Global sales include that of Jaguar and Land Rover brands, which rose 61% to 17,909 vehicles. The figures were announced on 14 May 2010.
India's largest tractor maker by sales Mahindra & Mahindra fell 0.37%, with the stock falling for the second straight day.
India's largest small car maker by sales Maruti Suzuki India declined 1.28%, with the stock falling for the second straight day. As per media reports, Maruti Suzuki has announced the recall of 10,000 units of its compact car A Star (known as Alto in Europe). The recall is only on the automatic transmission version of the vehicle (not sold in India).
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.
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.
Bajaj Auto fell 1.04%, with the stock falling for the second straight day. The stock hit a record high of Rs 2219.90 in intraday trade on Friday, 14 May 2010, boosted by strong Q4 results. Net profit surged 306% to Rs 528.65 crore in Q4 March 2010 over Q4 March 2009. The company announced result during market hours on Wednesday, 12 May 2010.
India's largest FMCG maker by sales Hindustan Unilever rose 2.52% on defensive buying.
IT pivotals extended recent losses amid continuing concerns about the potential impact on euro-zone economic growth as governments in the region take measures to bring their swelling fiscal deficits under control. Europe is the second biggest market for Indian IT firms. India's second largest software services exporter Infosys fell 1.55%, with the stock falling for the second straight day. Its ADR fell 2.98% on Friday, 14 May 2010.
India's largest software services exporter TCS fell 2.47%, with the stock falling for the second straight day. India's third largest software services exporter Wipro fell 3.30%, with the stock falling for the third straight day. Its ADR fell 2% on Friday.
Realty stocks fell on profit taking. Housing Development & Infrastructure, Sobha Developers, Peninsula Land, Orbit Corporation, Anant Raj Industries, Ackruti City, Phoenix Mills fell by between 0.24% to 2.41%.
India's largest realty firm by sales DLF declined 3.95%. DLF's net profit surged 1276.45% to Rs 411.01 crore in Q4 March 2010 over Q4 March 2009. The company announced the result after market hours on Friday, 14 May 2010.
GAIL India rose 1.17% as net profit surged 44.57% to Rs 910.82 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours today.
Aban Offshore clocked a highest turnover of Rs 252.72 crore on BSE. Tata Steel (Rs 186.54 crore), State Bank of India (Rs 186.14 crore), Larsen & Toubro (Rs 171.16 crore) and Reliance Industries (Rs 113.15 crore), were the other turnover toppers on BSE.
Cals Refineries reported a highest volume of 3.27 crore shares on BSE. Birla Power (1.27 crore shares), Reliance Natural Resources (74.10 lakh shares), Suzlon Energy (59.30 lakh shares) and Sanra Software (47.84 lakh), were the other volume toppers on BSE.
Investors with medium-term perspective can consider buying the stock Jyothy Laboratories (Rs 180.2). The stock has been on a steady long-term uptrend since it touched the life-time low of Rs 42, recorded in October 2008. However, after marking an all-time high of Rs 204.6 on March 8, the stock was on short-term correction. The intermediate significant support in the range between Rs 155 and Rs 160 arrested the stock's decline in late April. The long-term uptrend-line also provided support around that range. Subsequently, the stock bounced, penetrated its 21- and 50-day moving averages during early May and is trading above the averages. We notice that there is an increase in volume over the past two trading sessions. The daily relative strength index has re-entered the bullish zone from the neutral region. The week RSI has also entered the bullish zone, reinforcing bullish momentum. Moreover, both daily and weekly moving average convergence and divergence indicators are featuring in the positive territory.
We are bullish on the stock from a medium-term point of view and believe it has the potential to head higher to our price target of Rs 210 in the forthcoming weeks. Investors with medium-term perspective can consider buying the stock with stop-loss at Rs 165. Short-term traders can buy for a target of Rs 195 with stop-loss at Rs 172.
Follow up - Hindustan Construction Co (Rs 118.5)
Following volatile sessions, the stock almost ended the week around our recommended price level. We retain our medium-term bearish view with target and stop-loss indicated for this stock in the previous week; though for short-term traders the stop-loss would have triggered.
Prices sink as dollar stings
Crude oil prices ended substantially lower at Nymex on Friday, 14 May 2010. Prices fell as the dollar rose substantially and traders continued to mull over long-term implications of the European Union's rescue package for Greece and its impact on the currencies, specially on the euro. Better than expected economic data failed to charge up prices.
On Friday, crude-oil futures for light sweet crude for June delivery closed at $71.61/barrel (lower by $2.79 or 3.8%). For the week, crude shed 4.6%. 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 lower by 4.7%.
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 137% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
In the currency market on Friday, the euro dropped once again against the dollar and reached the lowest level since October 2008. The dollar index, which measures the strength of the dollar against a basket of six other currencies rose by 1%.
Among economic data for the day, the Commerce Department reported on Friday that U.S. retail sales rose a seasonally adjusted 0.4% to $366.4 billion in April, the seventh straight increase and the 12th gain in the past 13 months, led by strong sales at hardware stores and garden center. Excluding a 0.5% increase in auto sales, sales rose 0.4% to $303.5 billion. The figures were better than expected.
As per the report, sales were mixed across retail sectors last month, with a strong 6.9% gain at hardware stores and garden centers outweighing falling sales at mall-type stores. Sales at hardware stores had increased 7.8% in March.
In the latest weekly inventory report, the EIA reported earlier during the week an increase of 1.95 million barrels in the nation's oil inventories for last week, slightly above expectations. The biggest surprise was a decrease in gasoline inventories by 2.8 million barrels, whereas market was expecting a small increase. Stockpiles of distillates, which include diesel and heating oil, rose by 1.4 million barrels. The refinery utilization rate dropped more than expected to 88.4%. Meanwhile, inventories at Cushing, Okla., the delivery point for Nymex futures, rose by 784,000 barrels to a record high on 37 million barrels.
During the week, on Thursday, The International Energy Agency lowered by 220,000 barrels a day its forecast for global oil demand for 2010. Oil demand is estimated to grow from 2009 by 1.9%, equating to 1.6 million barrels a day, to 86.4 million barrels a day.
In contrast, earlier this week, the U.S. Energy Information Agency raised its outlook for global oil demand to 1.6 million barrels per day in 2010, slightly higher than the 1.5 million barrels-a-day projection made last month. Separately, The Organization of the Petroleum Exporting Countries had also said on Tuesday it was raising its estimate for global oil demand for 2010. OPEC expects global oil demand to grow by 950,000 barrels a day to 85.38 million barrels a day. It previously expected growth of 900,000 barrels a day.
Among other energy products on Friday, natural gas for June delivery pared down some losses to end 3 cents off, or 0.6%, to $4.31 per million British thermal units. Reformulated gasoline for June delivery declined 6 cents, or 2.9%, to $2.1308 a gallon.
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.