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Monday, May 24, 2010
Nifty May 2010 futures at discount
Turnover declines
Nifty May 2010 futures were at 4,911.90, at a discount of 32.05 points compared to spot closing of 4,943.95. Turnover in NSE's futures & options (F&O) segment was Rs 1,18,524.33 crore, lower than Rs 1,20,722.67 crore on Friday, 21 May 2010.
Bharat Heavy Electricals May 2010 futures were at discount at 2293.20 compared to the spot closing of 2300.
Suzlon Energy May 2010 futures were near spot price at 58.40 compared to the spot closing of 58.50.
Aurobindo Pharma May 2010 futures were near spot price at 870.50 compared to the spot closing of 870.
In the cash market, the S&P CNX Nifty rose 12.80 points or 0.26% at 4,943.95.
StanChart sets IDR price band at Rs 100-115 each
Issue remains opens for subscription between 25 and 28 May 2010
Standard Chartered Plc. has set the price band for its proposed issue of 240 million Indian Depository Receipts (IDRs) at Rs 100-115 each. Retail investors will be allotted shares at 5% discount to the issue price. The issue opens for subscription on 25 May 2010 and closes on 28 May 2010.
The IDRs will be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The bank is already listed in London and Hong Kong.
Ten IDRs will represent one underlying equity share of Standard Chartered Plc. The proceeds of the issue will be added to the overall capital reserves to support the bank's business growth.
Asia-focused British bank Standard Chartered's IDR is the first issue of its kind in India. Like American or Global Depository Receipts, where Indian companies raise resources overseas, IDRs enable foreign companies to do the same in India. As per the Securities and Exchange Board of India's guidelines, IDRs can be issued by companies that have been listed in the home market for a minimum of three years and have registered a profit in at least three of the five years before the issue.
Buyers backing off in Asia
Despite a modestly higher closing, near term risks remain well in place
Asian markets managed to end higher but the buying optimism was seen frittering away in the closing moves as the US dollar spiked under 1.2500 mark against the Euro and investors shrugged off the latest rebound on the Wall street due to international tensions. China's president promised more reforms of his country's controversial exchange rate controls but gave no timetable for changing the much-awaited revaluation of the Yuan. This ensured that the tug of war between US and China continues with the former still worried about the flow of cheap Chinese goods flocking he US supermarkets and hurting the American industries. In another potentially worrying development, South Korean President Lee Myung-bak announced suspension of trade ties with the North in response to North Korea's deadly attack on South Korea warship last month.
Both these developments would keep the buying exuberance under check in the coming days given their long-term ramifications. The day started off in a decent fashion for Asia, as the dollar traded above 1.2500 and commodities rallied. This put the Australian markets on a sound track right from the start. Stocks gained around 2%, due to bargain hunting at lower levels, modest gains in oil and commodity prices. The benchmark S&P/ASX200 Index surged up 90.00 points, or 2.09% and closed at 4,395, while the All-Ordinaries Index ended at 4,412, representing a gain of 87.00 points, or 2.09%.
On the economic front, a statement released by the Australian Bureau of Statistics revealed that new vehicle sales in the country climbed a seasonally adjusted 8.4% month-on-month in April to 90,935 units, following a 2.8% drop in March sales. The statement further noted that sales of all types of vehicles increased in April. Passenger vehicle sales increased 7.8%, sports utility vehicle sales were up 16.1% and other vehicle sales rose 1.9%.
The Japanese stock market ended with nominal losses today, coming off their highs on concerns about the continuing strength in Japanese yen against the dollar. Exporters slid lower while banks and miners also slid as the day progressed. The benchmark Nikkei 225 Index fell 26.14 points, or 0.3%, to 9758.4- its lowest closing level since early December. The broader Topix index of all First Section issues rose 0.32 point, or 0.04%, to 880.
On the economic front, a report released by the Ministry of Trade, Economy and Industry revealed that all industry activity in the country dropped for the second month in a row in March. As per the report, all-industry activity declined 0.8% in March following a steeper 2.3% decline in the previous month. Economists expected the activity to decline by 0.7% for the month.
Separately, the report revealed that industrial production in the country rose 1.2% in March, following a 0.6% drop in February. The index of government services moved up 0.6% versus last month's 0.9% drop. Year-on-year, all industry activity grew at a faster pace of 4.7% in March, following 4.1% growth in the previous month.
Chinese stocks continued to witness's strong gains as property developers and banks surged after the recent pounding. Inventors continued to buy these stocks heavily after the benchmark index slumped to its lowest levels in nearly one year last week. The risk appetite was generally good in the early Asian trades and China's Shanghai Composite gained 3.5%. Poly Real Estate closed up 8.9% while China Vanke gained 4.9%. In Hong Kong, China Overseas Land rose 6.1% and China Resources Land added 7.3%.
South Korean stocks edged up marginally in volatile trade. The markets slid lower following the suspension of trade ties with North Korea but recouped these losses by the end. South Korea's Kospi Composite rose 0.3%. However, the Korean won touched an eight-month low against the greenback on concerns about increased tension between North and South Korea.
In Mumbai, markets reversed direction in the late trades as European stocks gave away initial gains and as US index futures fell around 80 points. As per provisional figures, the BSE 30-share Sensex was down 17.16 points or 0.1% to 16,428.45. The Sensex gained 312.12 points at the day's high of 16,757.73 in afternoon trade. The index fell 32.58 points at the day's low of 16.413,03 in late trade. The S&P CNX Nifty was down 2.35 points or 0.05% to 4928.80 as per provisional figures. It came off an intraday high of 5,029.55.
In the other markets, Taiwan's Taiex closed up 1.2% and Singapore's Straits Times Index gained 0.8%. Philippine's PSE Composite and New Zealand's NZX-50 each closed 0.4% higher.
US dollar surged to 1.2359 against the Euro in the London trades. The currency turned higher on safe haven demand as the European equities gave away their initial gains on worries over the Euro zone debt worries escalating. The Spanish central bank's takeover of a savings bank underlined structural problems facing fiscally fragile euro zone states.
In commodities, Light sweet crude oil futures for July delivery slipped from their highs above near $71 a barrel in electronic trading. The commodity topped out at $70.96 per barrel and currently trades at $69.86, down 18 cents from the previous close at $70.04 a barrel in New York on Friday. Gold stayed higher, coming near $1190 per ounce in electronic trades.
BSE Bulk Deals to Watch - May 24 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
24/5/2010 512599 Adani Enter LIFE INSURANCE CORPORATION OF INDIA B 5000000 548.00
24/5/2010 512599 Adani Enter LOTUS GLOBAL INVESTMENTS LTD S 5108551 548.07
24/5/2010 532166 Alka Securities HARSHVARDHAN JAIN B 611496 6.25
24/5/2010 531761 Amulya Leas ATUL SALUJA B 50000 30.71
24/5/2010 531761 Amulya Leas SAROJ DEVI S 55300 30.71
24/5/2010 531761 Amulya Leas VARUN GARG S 71000 30.71
24/5/2010 532989 Bafna Pharma LAKSHIMINARAYANA S S 107000 43.38
24/5/2010 532816 Broadcast Init ROSHANI NEETISH DOSHI B 155263 18.05
24/5/2010 532816 Broadcast Init CREDO CAPITAL PIC A/C KII LTD. S 155263 18.05
24/5/2010 533026 Chemcel Bio ACME FURNITURE PRIVATE LIMITE B 186001 8.74
24/5/2010 533026 Chemcel Bio NIOL IMPEX PRIVATE LIMITED S 186003 8.72
24/5/2010 531270 Dazzel Conf JAIPRAKASHJUGALKISHORJAJOO B 40000 29.25
24/5/2010 531270 Dazzel Conf RAMSWAROOP BANWARILAL GOYAL HUF B 30000 29.25
24/5/2010 531270 Dazzel Conf SANJAY SINGH THAKUR B 40000 29.25
24/5/2010 531270 Dazzel Conf SANJAY NARAYAN SHAHANI B 35000 30.02
24/5/2010 531270 Dazzel Conf KAVISH SALUJA S 30000 29.25
24/5/2010 514030 Deepak Spin HEMANT KUMAR GUPTA B 59686 20.75
24/5/2010 514030 Deepak Spin SHARON GUPTA S 59686 20.75
24/5/2010 517973 DMC Intl KAPIL GUPTA B 114001 16.58
24/5/2010 523329 Eldeco Hous SHAH MANORAMABEN B 10000 177.53
24/5/2010 500168 Goodyear India PAT FINANCIAL CONSULTANT PVT LTD B 200000 409.18
24/5/2010 500168 Goodyear India GANDIV INVESTMENT PVT. LTD. B 281000 409.45
24/5/2010 500168 Goodyear India MINALBHARATPATEL S 394000 409.45
24/5/2010 531601 Gujarat Capital SHANTI KUMAR SURANA B 100000 34.10
24/5/2010 531601 Gujarat Capital PRABHA SURANA B 100000 34.30
24/5/2010 531601 Gujarat Capital MITTAL SECURITIES FINANCE LIMITED B 57724 35.73
24/5/2010 531601 Gujarat Capital SITARAM COMPUTECH PRIVATE LIMITED S 60100 34.10
24/5/2010 523840 Innovative Tech SAAKSHI SHARES PVT LTD B 54937 29.82
24/5/2010 523840 Innovative Tech RAJ FINVEST B 66013 27.43
24/5/2010 523840 Innovative Tech SAAKSHI SHARES PVT LTD S 82928 26.16
24/5/2010 523840 Innovative Tech RAJ FINVEST S 66013 27.33
24/5/2010 531777 Intellvisions ROSHANI NEETISH DOSHI B 154000 18.40
24/5/2010 531777 Intellvisions CREDO CAPITAL PIC A/C KII LTD. S 164000 18.40
24/5/2010 533181 Intrasoft Tech LOKESH RAMGOPAL AGRAWAL B 75000 121.83
24/5/2010 514312 Jaihind Syn DEENA RASIK AJMERA B 50000 8.91
24/5/2010 514312 Jaihind Syn KALPANA MADHANI SECURITIES PRIVATE LIMITED S 29900 8.91
24/5/2010 523712 JMG Corp BANARAS BEAD LEASING & FINANCE PVT LTD B 600000 5.20
24/5/2010 523712 JMG Corp BIG BANG ENTERPRISES PRIVATE LIMITED S 600000 5.20
24/5/2010 500235 Kalyani Steel OPG SECURITIES P LTD B 223618 90.75
24/5/2010 500235 Kalyani Steel OPG SECURITIES P LTD S 223618 90.94
24/5/2010 513456 Kanishk Steel KII LIMITED S 179239 21.00
24/5/2010 507759 Lime Chemicals RAM LAL KAWAR B 17468 7.57
24/5/2010 507759 Lime Chemicals SIHL FINCAP LTD B 20000 7.57
24/5/2010 507759 Lime Chemicals DUKE ADVISORS PRIVATE LIMITED S 30000 7.57
24/5/2010 500267 Majestic Auto G.S. AUTO LEASING LTD. B 55598 135.01
24/5/2010 500267 Majestic Auto MANOJ SINGHAL B 135000 133.95
24/5/2010 500267 Majestic Auto SHIVALIK SECURITIES LTD. S 125000 133.86
24/5/2010 590111 MASTER CHITTI BABU UPPALAPATI B 47005 35.18
24/5/2010 590111 MASTER MALLIKHARJUNARAO V S 67000 35.31
24/5/2010 590111 MASTER BCHANDRA RAO S 52300 35.81
24/5/2010 590060 MK Exim DATTACHANDRAVADAN PARIKH B 20200 56.99
24/5/2010 526263 Moldtek Tech USHA KUMARI B 24250 61.72
24/5/2010 531834 Natura Hue Chem RAVINDERKUMAR JAIN B 50000 8.25
24/5/2010 531834 Natura Hue Chem DHANIRAM SHARMA B 50000 8.25
24/5/2010 531834 Natura Hue Chem AHMED SAYED S 180866 8.31
24/5/2010 531496 Omkar Overseas PANKAJBABULAL KOTECHA B 50000 71.00
24/5/2010 512097 Oregon Comm BHAVESH SHANTILAL TRIVEDI B 8754 291.00
24/5/2010 512097 Oregon Comm J M SONI CONSULTANCY S 10000 291.61
24/5/2010 517417 Patels Airtmp J V STOCK BROKING PRIVATE LIMITED B 46974 100.96
24/5/2010 517417 Patels Airtmp M/S. RIKHAV INVESTMENTS B 27455 108.84
24/5/2010 517417 Patels Airtmp CHANDAN SHAH B 72930 103.70
24/5/2010 517417 Patels Airtmp S K TRADING (S K CHOURASIA) B 101947 101.51
24/5/2010 517417 Patels Airtmp MVM SECURITIES PRIVATE LIMITED B 30225 99.82
24/5/2010 517417 Patels Airtmp ALPESH SHESHMAL HUF B 49404 110.18
24/5/2010 517417 Patels Airtmp J V STOCK BROKING PRIVATE LIMITED S 46974 101.07
24/5/2010 517417 Patels Airtmp M/S. RIKHAV INVESTMENTS S 27455 109.19
24/5/2010 517417 Patels Airtmp CHANDAN SHAH S 72930 105.60
24/5/2010 517417 Patels Airtmp S K TRADING (S K CHOURASIA) S 101947 103.15
24/5/2010 517417 Patels Airtmp REENA JAIN S 82675 118.43
24/5/2010 517417 Patels Airtmp MVM SECURITIES PRIVATE LIMITED S 30225 99.98
24/5/2010 517417 Patels Airtmp ALPESH SHESHMAL HUF S 49404 110.51
24/5/2010 513228 Pennar Inds CLSA (MAURITIUS) LIMITED B 1000000 39.49
24/5/2010 513228 Pennar Inds DEUTSCHE SECURITIES MAURITIUS LIMITED S 971944 39.50
24/5/2010 530699 Raj Rayon ROSHANI NEETISH DOSHI B 479789 9.87
24/5/2010 530699 Raj Rayon CREDO CAPITAL PIC A/C KII LTD. S 479789 9.87
24/5/2010 590077 Ranklin Sol MALLIKHARJUNARAO V S 42501 76.80
24/5/2010 532918 Rathi Bars SRINIVAS LAXMAIAHMACHERLA B 95337 18.61
24/5/2010 532918 Rathi Bars SAINATH HERBAL CARE MARKETING P.LTD B 82517 18.03
24/5/2010 532918 Rathi Bars SRINIVAS LAXMAIAHMACHERLA S 95337 18.12
24/5/2010 532918 Rathi Bars TECKNOPOINT MERCANTILE COMPANY PVT LTD S 100885 18.08
24/5/2010 531324 Roselabs Fin ASHWINI HI-RISE AND FARMS PRIVATE LIMITED B 170080 9.10
24/5/2010 531324 Roselabs Fin SURVASHAYA FARMS AND DEVELOPERS PRIVATE LIMITED B 250030 9.10
24/5/2010 531324 Roselabs Fin BHAVANAJ KAPANI S 445000 9.10
24/5/2010 533056 SARK SYS SWETA TIBREWALA S 50000 38.75
24/5/2010 531003 Swarna Sec NAYAK SHRIKANT DAMODAR B 19583 25.55
24/5/2010 533203 TARAPUR TRA SMART EQUITY BROKERS PRIVATE LIMITED B 114269 45.18
24/5/2010 533203 TARAPUR TRA TRANSGLOBAL SECURITIES LTD. B 174913 44.54
24/5/2010 533203 TARAPUR TRA CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 178801 44.42
24/5/2010 533203 TARAPUR TRA OPG SECURITIES P LTD B 413271 45.19
24/5/2010 533203 TARAPUR TRA SMART EQUITY BROKERS PRIVATE LIMITED S 114269 45.05
24/5/2010 533203 TARAPUR TRA TRANSGLOBAL SECURITIES LTD. S 175413 44.59
24/5/2010 533203 TARAPUR TRA CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 178801 44.50
24/5/2010 533203 TARAPUR TRA OPG SECURITIES P LTD S 413271 45.24
24/5/2010 532765 Usher Agro MANISH GANDHI B 250000 78.05
24/5/2010 532765 Usher Agro RAGA FINVEST LIMITED S 110000 78.05
24/5/2010 531249 Well Pack Papers TUSHARRAMESHBHAI PATEL B 472795 37.32
24/5/2010 531249 Well Pack Papers BHARATKUMARBALDEVBHAI PARMAR B 487698 37.69
24/5/2010 531249 Well Pack Papers BHARATKUMARBALDEVBHAI PARMAR S 487348 37.76
* B - Buy, S - Sell
NSE Bulk Deals to Watch - May 24 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
24-MAY-2010,BIRLAPOWER,Birla Power Solutions Ltd,EDELWEISS ESTATES P LTD,BUY,353186,2.50,-
24-MAY-2010,ECEIND,ECE Industries Limited,PAT Financial Consultants Pvt Ltd,BUY,112000,214.72,-
24-MAY-2010,INSECTICID,Insecticides (India) Limi,MANISH VRAJLAL SARVAIYA,BUY,75235,151.30,-
24-MAY-2010,ISFT,Intrasoft Tech. Ltd,SHEETAL MANUBHAI SHETH,BUY,78000,124.04,-
24-MAY-2010,PROVOGUE,Provogue (India) Limited,INDIA DISCOVERY FUND LIMITED,BUY,1100000,43.70,-
24-MAY-2010,SURYAROSNI,Surya Roshni Ltd,HENCO COMMERCIAL PRIVATE LIMITED,BUY,1485197,86.98,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,139898,43.60,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,ALIVE CONSULTANTS ALIVE,BUY,164606,44.44,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,BUY,178528,44.36,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,ELITE STOCK MANAGEMENT LTD.,BUY,193168,44.57,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,166588,43.60,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,OM INVESTMENTS,BUY,233629,44.25,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,R.M. SHARE TRADING PVT LTD,BUY,102908,43.13,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,RAINDROP FINANCIAL SERVICES PVT LTD,BUY,265581,44.88,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,204979,44.55,-
24-MAY-2010,ZANDUREALT,Zandu Realty Limited,TRANSGLOBAL SECURITIES LTD.,BUY,4577,3551.38,-
24-MAY-2010,ADANIENT,Adani Enterprises Limited,LOTUS GLOBAL INVESTMENTS LTD,SELL,5136274,548.12,-
24-MAY-2010,BIRLAPOWER,Birla Power Solutions Ltd,EDELWEISS ESTATES P LTD,SELL,5007230,2.59,-
24-MAY-2010,ECEIND,ECE Industries Limited,Hardik Bharat Patel,SELL,62000,214.50,-
24-MAY-2010,ECEIND,ECE Industries Limited,RUCHIT B. PATEL,SELL,49980,215.00,-
24-MAY-2010,INSECTICID,Insecticides (India) Limi,MANISH VRAJLAL SARVAIYA,SELL,75235,153.08,-
24-MAY-2010,ISFT,Intrasoft Tech. Ltd,LOKESH RAMGOPAL AGRAWAL,SELL,75000,121.79,-
24-MAY-2010,SURYAROSNI,Surya Roshni Ltd,LIFE INSURANCE CORPORATION OF INDIA,SELL,1277374,87.00,-
24-MAY-2010,SURYAROSNI,Surya Roshni Ltd,TERRANOVA TECHNOLOGIES LIMITED,SELL,185197,85.33,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,139898,43.68,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,ALIVE CONSULTANTS ALIVE,SELL,164606,44.49,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,CROSSEAS CAPITAL SERVICES PVT. LTD.,SELL,178528,44.41,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,ELITE STOCK MANAGEMENT LTD.,SELL,193168,44.57,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,165588,43.73,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,OM INVESTMENTS,SELL,233629,44.32,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,R.M. SHARE TRADING PVT LTD,SELL,102908,43.21,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,RAINDROP FINANCIAL SERVICES PVT LTD,SELL,265481,44.54,-
24-MAY-2010,TARAPUR,Tarapur Transformers Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,204979,44.57,-
24-MAY-2010,ZANDUREALT,Zandu Realty Limited,PRISM IMPEX PVT LTD,SELL,4060,3507.57,-
24-MAY-2010,ZANDUREALT,Zandu Realty Limited,TRANSGLOBAL SECURITIES LTD.,SELL,4602,3554.39,-
Market rejoices on Ambani's move
Today's major news
Banks to offer clean loans to telecom companies
Madras Cements FY2010 net down marginally; the stock closes 1.74% lower
Government relaxes work visa norms for IT companies
Click here for more stories
Global signals
European shares turned negative erasing early gains as investors staying cautious on a Spanish bank bailout and on worries that the Euro-zone crisis could hurt growth. At the time of writing the report, FTSE 100 was trading 0.55% lower.
All the major Asian indices closed in the positive territory except Jakarta Composite and Nikkei that closed in the red zone. SGX Nifty closed 5 points lower.
The US stock index futures point to a lower opening on the Wall Street on Monday. Investors will keep an eye on National Association of Realtors' existing home sales data for April for fresh insight on the outlook for the economy.
Indian indices
Ambani brothers — Mukesh and Anil — agreed to cancel all non-compete agreements and work in harmony. This news gave the market much-needed boost after the last week’s sell-off as Reliance Industries and Anil Dhirubhai Ambani Group (ADAG) stocks soared, which lifted the market sentiments and helped the Nifty to regain its psychological level of 5000. But the excitement for the overall market was short-lived, as the market erased most of its gains owing to weakness in the metal and realty stocks, and after European indices turning negative. If there would had not been Reliance Industries’ contribution in today’s trade, then the markets would have ended in the negative territory.
The Sensex remained highly volatile by swinging 344 points and the Nifty 106 points in a day. The Sensex slipped 288 points and the Nifty 86 points from day's high.
The 30-stock Sensex started the session 50 points higher at 16495 on supportive global cues and extended its gains in morning trade on the Ambani brothers' patch up news. The Sensex touched the day’s high of 17758 in afternoon session as European stocks opened in the positive territory. However, post lunch, the market failed to hold its early gains and gradually started paring most of its gains as European indices turned negative and late selling pressure seen in metal, banking and auto stocks dragged the market down into the negative territory to hit the day’s low of 16413. However, the Sensex managed to close with marginal gains of 24 points at 16470. The Nifty was also able to close in the green at 4944, 13 points higher.
Market sentiment
The market breadth was positive as advancing stocks outpaced declining stocks. Of the 2,928 stocks traded on the BSE, 1,674 stocks advanced, whereas 1,155 stocks declined. Ninety-Nine stocks remained unchanged.
Sectoral & stock screening
Of the 13 sector indices, six closed higher while seven closed lower. Among gainers, BSE Oil & Gas surged the most by 1.61%, followed by BSE Power that advanced 1.16%. On the other hand, BSE Realty was hit the most by 1.92%, BSE Metal declined by 0.93% and BSE Auto slid 0.83%.
Among 'A' group stocks: ADAG stocks occupied the top three slots as Reliance Natural Resources was up 22.58%, Reliance Communications gained 10.87% and Reliance Power surged 7.86%. The top three losers were – Hindalco Industries (down 3.93%), Tata Chemicals (down 3.73% after posting below expectation Q4 numbers) and Marico (down 3.18%).
Viewing volumes
ADAG firm and top gainer among ‘A’ group stocks — Reliance Natural Resources saw highest trading with over 2.41 crore shares changing hands on the BSE, followed by India's largest developer — Unitech (0.58 crore shares), diversified conglomerate — Adani Enterprises (0.56 crore shares), pharmaceutical firm — Piramal Healthcare (0.52 crore shares) and industrial finance company — IFCI (0.51 crore shares).
Market ekes out small gains
The key benchmark indices settled marginally higher, giving away strong intraday gains, as European stocks and US index futures fell. The BSE 30-share Sensex rose 23.94 points or 0.15%, off close to 290 points from the day's high and up close to 55 points from the day's low. Banking, metal, auto and realty stocks reversed initial gains.
Index heavyweight Reliance Industries (RIL) pared initial gains triggered by a truce between the two Ambani brothers - Mukesh and Anil on Sunday, 23 May 2010. Shares of Anil Dhirubhai Ambani group surged. The S&P CNX Nifty settled below the psychological 5,000 mark after alternatively moving above and below that level earlier in the day.
Volatility was high as traders rolled over positions in the futures & options (F&O) segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts on Thursday, 27 May 2010. The market surged in early trade tracking gains in Asian stocks. It held firm in morning trade. The market extended gains in early afternoon trade as European stocks rose at the onset of the trading session. The market came off the higher level in afternoon trade. The market was further off the day's high in mid-afternoon trade as European stocks gave up initial gains. The market slipped into the red in late trade.
NSE's volatility index India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, declined 2.98% to 31.30. 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.
Cabinet Secretary K.M. Chandrasekhar on Monday said inflows towards the third-generation (3G) spectrum auction, which concluded last week will bring down fiscal deficit and cut the government's borrowing plans. The government has mopped up almost Rs 70000 crore from the sale of 3G spectrum, which is twice the projected revenue. The government could additionally generate about Rs 15000 crore from sale of pan-India licenses for broadband wireless access (BWA) services.
Prime Minister Manmohan Singh on Monday said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. In a news conference to mark the completion of one year of the ruling Congress led United Progressive Alliance government at the Centre, the prime minister said he expects inflation to moderate to 5-6% by December 2010. Singh expects 8.5% GDP growth in the year ending March 2011 (FY 2011).
European shares turned negative on Monday after falling in the previous three sessions, with investors staying cautious on a Spanish bank bailout and on worries the euro zone crisis could hurt growth. The key benchmark indices in France, UK and Germany were down 0.43% to 1.24%.
Earlier in the global day, most Asian stocks rose, tracking gains on Wall Street on Friday, 21 May 2010. The key benchmark indices in China, South Korea, Indonesia, Hong Kong, Singapore and Taiwan rose by between 0.3% to 3.48%. But, the key benchmark indices in Indonesia and Japan fell by between 0.27% to 0.52%.
US index futures fell in volatile trade. Trading in US index futures indicated that the Dow could fall 96 points at the opening bell on Monday, 24 May 2010.
US stocks snapped a three-day losing streak on Friday as investors bought beaten-down shares including banks on bets the financial regulation bill won't be as onerous as some had feared. Bank shares rose a day after the US Senate approved a sweeping overhaul of regulation of Wall Street firms, capping months of wrangling over the biggest changes since the 1930s. The Dow Jones Industrial Average gained 125.38 points, or 1.25% to 10,193.39. The Standard & Poor's 500 Index jumped 16.10 points, or 1.50% to 1,087.69. The Nasdaq Composite Index rose 25.03 points, or 1.14% to 2,229.04.
Back home, India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. 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 latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%
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.
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.
The 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 World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
The fourth quarter corporate results have been decent. The combined net profit of a total of 2,332 companies rose 23.2% to Rs 59,592 crore on 24.3% rise in sales to Rs 5,87,466 crore in the quarter ended March 2010 over the quarter ended March 2009.
The BSE 30-share Sensex rose 23.94 points or 0.15% to 16,469.55. The Sensex gained 312.12 points at the day's high of 16,757.73 in afternoon trade. The index fell 32.58 points at the day's low of 16.413.03 in late trade.
The S&P CNX Nifty rose 12.80 points or 0.26% to 4,943.95. It came off an intraday high of 5,029.55.
The BSE Mid-Cap index rose 0.02% and underperformed the Sensex. The BSE Small-Cap index rose 0.61% and outperformed the Sensex.
Sectoral indices on BSE were mixed. BSE Oil & Gas index (up 1.61%), Power index (up 1.16%), Capital Goods index (up 1.1%), IT index (up 0.34%), and Consumer Durables index (up 0.23%), outperformed the Sensex. BSE Realty index (down 1.92%), Metal index (down 0.93%), Auto index (down 0.83%), banking sector index Bankex (down 0.55%), FMCG index (down 0.32%), PSU index (down 0.32%), and Healthcare index (down 0.15%), underperformed the Sensex.
The market breadth, indicating the overall health of the market was strong. On BSE, 1691 shares advanced as compared to 1155 shares that declined. A total of 83 shares were unchanged. The breadth was much stronger earlier in the day.
From the 30 share Sensex pack, 18 stocks fell and rest rose.
BSE clocked turnover of Rs 4060 crore, lower than Rs 4347.89 crore on Friday, 21 May 2010.
Index heavyweight Reliance Industries (RIL) rose 2.58% to Rs 1021.45 after the two Ambani brothers - Mukesh and Anil took a step towards reconciliation in their long-running feud on Sunday, ending non-compete agreements. However, the stock came off the day's high of Rs 1049. Both the groups said they aim to reach a conclusion soon for a gas supply agreement between Mukesh Ambani's RIL and younger brother Anil's Reliance Natural Resources (RNRL).
The scrapping of the non-compete agreement between the two groups means RIL can enter financial services, telecom and infrastructure sectors whereas the ADAG can enter petroleum and petrochemical businesses. Reliance Industries and the ADAG said they agreed to cancel all existing non-compete pacts the groups had signed in 2006 and entered into a new non-compete pact only for gas-based power generation.
The settlement comes two weeks after the Supreme Court ruled in Mukesh Ambani's favour in a bitter public dispute over gas pricing. The court on 7 May 2010 ordered the brothers to renegotiate within six weeks a private natural gas supply contract between Reliance Industries and Reliance Natural Resources. The new contract must abide by a government price of $4.2 per million metric British thermal unit (mmBtu), compared with $2.34 per mmBtu the brothers agreed on in 2005 for a 17-year period.
Shares of Anil Dhirubhai Ambani group (ADAG) firms soared, boosted by the truce between the two Ambani brothers. Reliance Natural Resources (up 22.58%), Reliance Communications (up 10.87%), Reliance Power (up 7.66%), Reliance Infrastructure (up 6.23%), Reliance Capital (up 4.8%) and Reliance MediaWorks (up 3.9%), jumped.
Sun Pharmaceutical Industries rose 0.4%. Net profit fell 29% to Rs 898.65 crore in the year ended Mach 2010 over the year ended March 2009. The company announced the result during market hours today.
Auto shares reversed initial gains. India's top truck maker by sales Tata Motors fell 0.52% to Rs 706.60, with the stock falling for the seventh straight day. The stock came off the day's high of Rs 739.95. 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 1.88% to Rs 529.30, reversing initial gains. The stock came off the day's high of Rs 556.90.
India's largest small car maker by sales Maruti Suzuki India fell 1.72%. 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 2.23%. The stock had hit a record high of Rs 2219.90 in intraday trade on 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 the result during market hours on 12 May 2010. India's largest motorbike maker by sales Hero Honda Motors rose 1.31%.
Some metal stocks reversed initial gains. Sterlite Industries, Hindalco Industries, JSW Steel, Tata Steel, Steel Authority of India fell by between 0.83% to 3.93%.
Tata Power Company fell 1.32% ahead of its Q4 result today.
Realty stocks fell, reversing initial gains. Peninsula Land, DLF, Indiabulls Real Estate, Unitech, HDIL fell by between 0.08% to 2.66%.
Bank stocks reversed initial gains. Private sector lender ICICI Bank fell 0.34% to Rs 832. The stock came off the day's high of Rs 852. Its ADR rose 3.5% on Friday, 21 May 2010. The stock had slumped 7.24% on Wednesday, 19 May 2010, amid concerns the bank is paying a high price for its proposed deal to buy small rival bank Bank of Rajasthan.
The boards of ICICI Bank and Bank of Rajasthan (BoR), which met on Sunday, cleared the merger proposal between the two. Both banks have called for an extraordinary general meeting of shareholders on 21 June 2010 to approve the deal. The two private sector banks had on 18 May 2010 approved an exchange ratio of 25 shares of ICICI Bank for 118 shares of BoR. The favourable swap ratio send shares Bank of Rajasthan surging for yet another day.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) fell 1.26% to Rs 2243, reversing initial gains. The stock came off the day's high of Rs 2311.65. 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 on Friday, 14 May 2010.
India's second largest private sector bank by net profit HDFC Bank fell 0.07% to Rs 1823.40, with the stock falling for the straight eighth day. The stock came off the day's high of Rs 1867. Its ADR rose 2.92% on Friday, 21 May 2010.
India's largest mortgage lender by total income Housing Development Finance Corporation fell 1.87%.
India's largest cigarette maker by sales ITC fell 1.18% reversing early gains. The stock hit a record high of Rs 281.95 today. ITC said at the time of announcing Q4 March 2010 results on Friday, 21 May 2010, that a meeting of the board of directors will be held on 18 June 2010 to consider issue of bonus shares.
The cigarette major's profit rose 27% to Rs 1028.22 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Friday, 21 May 2010.
India's largest FMCG maker by sales Hindustan Unilever rose 0.43% in volatile trade ahead of its Q4 result tomorrow, 25 May 2010.
India's largest thermal power producer by sales NTPC rose 0.99%, on bargain hunting after recent losses triggered by lower fourth quarter bottom line. 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 on 17 May 2010
Some consumer durables stocks rose on bargain hunting after a recent steep fall. Videocon Industries, Blue Star, Gitanjali Gems rose by between 1.52% to 3.2%.
IT stocks rose on gains in American depository receipts on Friday, 21 May 2010. India's third largest software services exporter Wipro rose 0.98% as its ADR rose 1.79% on Friday, 21 May 2010. India's second largest software services exporter Infosys rose 0.41%, with the stock recovering from last three days' losses. Its ADR rose 2.19% on Friday, 21 May 2010. But, India's largest software services exporter TCS fell 0.18%, with the stock falling for the second straight day.
India's largest engineering and construction firm by sales Larsen & Toubro rose 1.25%. At the time of announcing Q4 March 2010 results on Monday, 17 May 2010, L&T's management gave a guidance of 20% growth in revenue and 25% growth in new orders in the current financial year.
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 36,996 crore for the year ended March 2010. Net profit rose 44% to Rs 1438.10 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on 17 May 2010.
India's largest equipment maker by sales Bharat Heavy Electricals rose 0.38%. The company will announce its Q4 result on Wednesday, 26 May 2010.
Among other capital goods stocks, ABB, Thermax, Siemens, Crompton Greaves rose by between 0.22% to 1.69%.
Cals Refineries clocked the highest volume of 6.48 crore shares on BSE. Reliance Natural Resources (2.41 crore shares), Birla Power Solutions (1.42 crore shares), Sanraa Media (82.04 lakh shares) an Unitech (58.75 lakh shares) were the other volume toppers in that order.
Adani Enterprises clocked the highest turnover of Rs 331.27 crore on BSE. Piramal HealthCare (Rs 257.73 crore), Reliance Natural Resources (Rs 131.79 crore), Reliance Industries (Rs 130.48 crore) and Reliance Infrastructure (Rs 126.37 crore) were the other turnover toppers in that order.
Market surges as Ambani brothers end non-compete pact
The key benchmark indices surged in early trade as index heavyweight Reliance Industries (RIL) and Anil Dhirubhai Ambani group (ADAG) shares surged after the feuding Ambani brothers - Mukesh and Anil ended non-compete pact. Metal stocks gained as metal prices rose on the London Metal Exchange on Friday, 21 May 2010.
The market breadth was strong. All the sectoral indices on BSE rose. The S&P CNX Nifty was below the psychological 5,000 mark after crossing that level at the onset of the trading session. The BSE 30-share Sensex was up 216.02 points or 1.31%, off close to 60 points from the day's high and up close to 165 points from the day's low.
Volatility may remain high in near term as traders roll over positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts on Thursday, 27 May 2010.
Most Asian stocks rose on Monday tracking gains on Wall Street on Friday, 21 May 2010. However, investors remain cautious about fiscal and debt problems in the euro zone. The key benchmark indices in China, Indonesia, Hong Kong, Singapore and Taiwan rose by between 0.27% to 3.14%. But, the key benchmark indices in Japan and South Korea fell by between 0.04% to 0.28%.
Trading in US index futures indicated that the Dow could fall 26 points at the opening bell on Monday, 24 May 2010.
US stocks snapped a three-day losing streak on Friday as investors bought beaten-down shares including banks on bets the financial regulation bill won't be as onerous as some had feared. Bank shares rose a day after the US Senate approved a sweeping overhaul of regulation of Wall Street firms, capping months of wrangling over the biggest changes since the 1930s. The Dow Jones Industrial Average gained 125.38 points, or 1.25% to 10,193.39. The Standard & Poor's 500 Index jumped 16.10 points, or 1.50% to 1,087.69. The Nasdaq Composite Index rose 25.03 points, or 1.14% to 2,229.04.
Back home, India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. 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 latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%
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.
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.
The 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 World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
The fourth quarter corporate results have been decent. The combined net profit of a total of 2,301 companies rose 23.8% to Rs 58.802 crore on 24.3% rise in sales to Rs 5,82,064 crore in the quarter ended March 2010 over the quarter ended March 2009.
At 9:20 IST, the BSE 30-share Sensex was up 216.02 points or 1.31% to 16,661.63. The Sensex gained 279.30 points at the day's high of 16,724.91 in early trade. The index rose 49 points at the day's low of 16,494.61 in early trade.
The S&P CNX Nifty was up 67.60 points or 1.37% to 4,998.75. It hit a high of 5,020.65.
The BSE Mid-Cap index rose 1.88% and the BSE Small-Cap index rose 2.04%.
The market breadth, indicating the overall health of the market was strong. On BSE, 1218 shares declined as compared to 178 shares that advanced. A total of 17 shares were unchanged.
From the 30 share Sensex pack, 23 stocks rose and rest fell.
Index heavyweight Reliance Industries (RIL) jumped 3.93% after the two Ambani brothers Mukesh and Anil took a step towards reconciliation in their long-running feud on Sunday, ending non-compete agreements. Both groups said they aim to reach a conclusion soon for a gas supply agreement between Mukesh Ambani's RIL and younger brother Anil's Reliance Natural Resources (RNRL).
The scrapping of the non-compete agreement between the two groups means RIL can enter financial services, telecom and infrastructure sectors whereas the ADAG can enter petroleum and petrochemical businesses. Reliance Industries and the ADAG said they agreed to cancel all existing non-compete pacts the groups had signed in 2006 and entered into a new non-compete pact only for gas-based power generation.
The settlement comes two weeks after the Supreme Court ruled in Mukesh Ambani's favour in a bitter public dispute over gas pricing. The court on 7 May 2010 ordered the brothers to renegotiate within six weeks a private natural gas supply contract between Reliance Industries and Reliance Natural Resources. The new contract must abide by a government price of $4.2 per million metric British thermal unit (mmBtu), compared with $2.34 per mmBtu the brothers agreed on in 2005 for a 17-year period.
Shares of Anil Dhirubhai Ambani group (ADAG) firms soared boosted by the truce between the two Ambani brothers. Reliance Infrastructure (up 7.44%), Reliance Communications (up 4.95%), Reliance Power (up 10.57%), Reliance Natural Resources (up 20%) and Reliance Capital (up 6.03%) jumped.
Tata Power Company fell 1.54% ahead of its Q4 result today.
India's largest FMCG maker by sales Hindustan Unilever fell 0.37% ahead of its Q4 result tomorrow, 25 May 2010.
Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 2.91% on Friday, 21 May 2010. Sterlite Industries, Jindal Steel & Power, Jindal Saw, Hindalco Industries, JSW Steel, Tata Steel, Steel Authority of India, National Aluminum Company, Hindustan Zinc, rose by between 1.55% to 3.21%.
Stocks head towards a positive start
Headlines for the day:
ICICI Bank-Bank of Rajasthan swap ratio fixed at 1:4.72
Crash fallout: Aviation insurance rates harden
Godrej Consumer to buy Latin America's Issue Group
Events for the day:
Major corporate action
Ex-date for dividend of Goodyear India
Results: GMR Infra, Sun Pharma, Tata Power
For more events, log on to Sharekhan.com
Pre-market report
Global signals
A late rally for banks prevented European shares from closing at their lowest in more than eight months on Friday (May 21, 2010) as the euro zone sovereign debt crisis persisted, draining investor confidence worldwide.
The US stocks snapped a three-day losing streak on Friday as investors bought beaten-down shares including banks on bets the financial regulation bill won't be as onerous as some had feared.
In today's trade, the Asian markets were trading on a mixed note. At the time of writing this report, SGX Nifty was trading 57 points higher.
Indian Indices
India's billionaire Ambani brothers took a step towards reconciliation of their long-running feud on Sunday (May 23, 2010), ending non-compete agreements in a step they hoped would lead to cooperation between the two groups.
Both groups said they hoped to reach a conclusion soon in a gas supply agreement between Reliance Industries (RIL) and Anil's Reliance Natural Resources (RNRL) that had been at the heart of their dispute. A positive reaction (to the truce) is expected in the share prices of the companies belonging to the two groups.
Markets are expected to open on a positive note tracking firm cues from US stocks, but the gain is unlikely to sustain as investors are cautious and overseas fund houses are continuously pulling the money.
The Indian indices are expected to remain volatile this week ahead of derivative settlement on May 27, 2010 and on weak global sentiments, although the truce Greece crisis between the Ambani brothers may have overall positive fallout. RIL (Mukesh Ambani) and Anil Dhirubhai Ambani Group (ADAG, Anil Ambani) — are likely to spurt when the markets resume trade.
The earnings of GMR Infrastructure, Opto Circuits (India), Tata Chemicals, Tata Power and Sun Pharmaceutical Industries are later to be announced today — the stocks will be closely eyed. RIL and ADAG stocks will also be in focus.
Commodity cues
In the commodity space, the crude oil prices fell, as investors remained wary that Europe's debt crisis and growing oil stockpiles will cut demand for fuel, with the Nymex light crude oil for the June series declined by $0.76 per barrel, whereas in the metals space, the Comex Gold for the June series dipped by $12.10 and the Comex Silver for the June series was down by $0.06 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 21, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs710.70 crore, whereas the domestic mutual funds, on May 19, 2010, were the net sellers of the stocks to the tune of Rs412.70 crore.
Daily News Roundup - May 24 2010
Mukesh and Anil Ambani have cancelled all existing non-compete agreements between their groups, drawn-up during the Reliance re-organization in 2006. (BL)
Piramal Healthcare sells its domestic formulations business to US-based Abbott in a deal worth US$3.72bn. (BS)
DLF is in talks with Government of Singapore Investment Corporation, Abu Dhabi Investment Authority and Kuwait Investment Authority to sell majority stake in luxury hotel chain Aman Resorts. (BS)
Infosys is looking to bid for US-based Logica for ~Rs185bn. (BS)
Bank of Rajasthan shareholders to gain one share of ICICI Bank for every 4.72 shares of Bank of Rajasthan. (BS)
Jindal Power is looking to set up a hydro-power project in Nepal at an estimated cost of Rs15bn as part of its multi-billion dollar programme in the energy space. (BS)
GMR Infrastructure unit GMR Energy plans to raise Rs102.75bn of debt funding to help achieve financial closure for three of its power projects. (ET)
The Hinduja group acquired the private banking arm of Belgian high street bank KBC for € 1.35bn. (ET)
The government is understood to have asked BSNL and MTNL to pay Rs167.5bn for the 3G spectrum in their possession by month-end. (ET)
Motherson Sumi is in talks with Unilever for contract manufacturing of water purifiers for the company’s international business. (BS)
Fortis Healthcare has raised around US$100mn through the issuance of FCCBs. (ET)
Ranbaxy receives approval of Canadian health regulator to market the generic version of cholesterol lowering medicine Lipitor. (ET)
Top officials of Maruti Suzuki and Volkswagen India are understood to have met to explore synergies in production and vehicle design. (ET)
Gujarat State Petroleum Corporation plans to start its upstream overseas arm in the next two to three years to look after its global oil and gas explorations. (BS)
Srei Infrastructure may hive off its road projects business into a separate company and induct a financial investor at a later stage. (ET)
Bharat Forge is looking at increasing its manufacturing footprint in the US market. (BS)
Shree Cement is expanding its capacity by setting up a 1mtpa clinker unit at Ras and 1mtpa cement grinding unit in Jaipur. (BL)
Godrej Consumer Products has entered into an agreement to acquire the entire stake of the promoters in Laboratoria Cuenca, Consell SA, Issue Uruguay and Issue Brazil, which is collectively referred to as the Issue Group. (TOI)
Carborundum Universal is all set to pump in Rs500-750mn for setting up a brown fused alumina plant in Kutch district of Gujarat. (BS)
JK Lakshmi Cement is holding talks to acquire an Egyptian cement firm for around Rs8bn. (ET)
Standard Chartered Plc has fixed the price band for its proposed issue of 240mn Indian Depository Receipts at between Rs100 and Rs115. (BL)
GSM telecom user base added just over 11mn new users in April, lower than the 13.9mn added in March. (ET)
Maharashtra Government plans to rope in foreign investment, creating a joint venture with the private sector or on lease to provide a new leash of life to closed spinning mills and those under liquidation. (BS)
Foreign exchange reserves declined US$2.9bn to US$273bn for the week ending May 14. (BL)
Banks likely to fix base rate at 8.5-9.5%. (BL)
Banks agree to give clean loans to telecom companies to acquire bandwidth for 3G mobile telecom licences. (ET)
via BL
Rumble on the street...Sensex, Nifty falls 3.3% in the week
‘Sell in May’ seems to be the jingle on the street as the Indian markets witnessed another deep cut during the week. The Nifty and the Sensex both lost over 3% each. Sentiment remained fragile owing to concerns that the European debt disaster could disrupt the global economic recovery. The Nifty failed to rebound after slipping below its 200-day DMA after Germany spooked the world markets as it banned naked short selling in certain financial instruments. Many Indian stocks also slipped below their 200-day DMA, which is seen as a key technical level owing to relentless selling by FIIs.
The BSE Sensex hit an intra-week high of 17,000 and low of 16,187 while, the NSE Nifty hit an intra-week high of 5,105 and low of 4,842
The top gainers: The top gainers in the Sensex were L&T (up 5.2%), ONGC (up 4.8%), SBI (up 2.1%), ITC (up 1.2%) and Cipla (up 1.1%).
The Top Losers: The top losers in the Sensex were Tata Motors (down 13%), DLF (down 9.9%), Ranbaxy Labs (down 8.9%), ICICI Bank (down 8.4%) and Hindalco (down 7.2%).
The BSE IT Index (down 3.8%):The top losers in the IT sector were HCL Tech (down 9.4%), Sasken Communication (down 8.5%), Mahindra Satyam (down 7.4%), Financial Tech (down 7.1%), TCS (down 5.9%) and Wipro (down 3.7%).
The BSE Consumer Index: The top losers in the Consumer Durables sector were Samtel Color (down 10%), Videocon Ind (down 5.5%), Blue Star (down 3.1%), Mirc Electronics (down 3%) and Titan (down 2%)
The BSE Healthcare Index (down 1.6%): The top gainers in the Pharma space were Zandu Pharma (up 30.6%), Strides Arcolab (up 4.8%), Dishman Pharma (up 3.2%), Dr Reddy's Labs (up 1.4%) and Astrazeneca Pharma (up 1.3%).
The top losers were Suven Life Science (down 7.9%), Marksans Pharma (down 6.6%), Morepen Labs (down 6.1%), Aurobindo Pharma (down 5.6%) and Glenmark Pharma (down 5.5%).
In pharma news, Abbott Laboratories said it will buy Piramal Healthcare's (PIHC IN) healthcare solutions unit for $3.72bn to become the biggest drug company in India. Abbott will pay $2.12bn initially and $400m annually over the next four years. The Abbott stock rose over 15% during the week.
The BSE Banking Index (down 4.2%): The top gainers in the banking space were Karnataka Bank (up 15.6%), Federal Bank (up 11.2%) and SBI (up 2.1%).
The top losers were ICICI Bank (down 8.4%), OBC (down 7.5%), HDFC Bank (down 6.4%), Axis Bank (down 6.2%) and Andhra Bank (down 4.6%).
The BSE Auto Index (down 5.1%): The top losers in the auto space were Tata Motors (down 13%), Ashok Leyland (down 9%), Hindustan Motors (down 6.4%), Bajaj Auto (down 3.9%) and M&M (down 3.8%).
The BSE Oil & Gas Index (down 2%): The top losers in the oil & gas space were Gujarat NRE Coke (down 21.7%), Hindustan Oil (down 13.7%), MRPL (down 5.7%), Jindal Drilling (down 5%) and Essar Oil (down 4.9%).
The top gainers in the oil & gas space were IOC (up 6.9%), ONGC (up 4.8%), HPCL (up 4.5%), BPCL (up 1.8%) and GSPL (up 0.9%).
The BSE Capital Goods Index (up 1.2%): The top gainers in the Capital Goods space were ABB (up 22.9%), L&T (up 5.2%) and Carborundum Univ (up 0.7%).
The top losers were Jyoti Structures (down 12.5%), Crompton Greaves (down 8.8%), Dredging Corp (down 8%), Usha Martin (down 7.8%) and Elgi Equipments (down 7.8%).
The Cement Sector: The top losers in the cement sector were Dalmia Cement (down 12.6%), Mangalam Cement (down 8.7%), Prism Cement (down 8.3%), Madras Cements (down 7.3%) and Gujarat Sidhee (down 7.1%),
The Telecom Sector: The top losers in the telecom space were MTNL (down 12.4%), WWIL (down 9.4%), Idea Cellular (down 9.1%), Reliance Com (down 7.7%) and TTML (down 7.4%).
The Realty Sector (down 8.8%): The top losers in the realty space were HDIL (down 15.7%), Mahindra Lifespace (down 12%), Dlf (down 9.9%), Unitech (down 9.7%) and Peninsula Land (down 8.8%).
The Metals sector (down 5.1%): The top losers in the metals sector were Adhunik Metaliks (down 10.1%), JSW Steel (down 9.3%), Tata Sponge Iron (down 9%), Bhushan Steel (down 8.1%) and Jindal Stainless (down 8.1%).
The top gainers in the metals sector were Lloyds Metals (up 20.2%) and Bhuwalka Steel (up 1.6%).
Peace and prosperity
All differences in this world are of degree, and not of kind, because oneness is the secret of everything. - Swami Vivekananda.
Nearly five years after the big Reliance empire was split, the warring Ambani brothers have decided to bury the hatchet. The new peace deal in the Ambani family will surely prove to be a sentiment-booster for our market, which was starved of positive triggers. It’s a no-brainer that shares of the two Reliance groups will steal the limelight, although one is still not sure of the long-term impact of the truce. What’s more, Asian markets, barring Japan, are mostly positive. The good news is that the rally is being led by China, which has been the worst-performing market this year. A meeting of the China-US Strategic and Economic Dialogue takes place in Beijing until May 25. The strength of the Chinese currency is a likely topic.
Given the feel-good backdrop, we expect a firm opening and perhaps a positive finish too. If global cues remain supportive and there are no fresh mishaps, the markets will be able to regain some of the lost ground. Some risks may still persist mainly due to concerns about the European sovereign debt problems and possible overheating in China. In the immediate future, the key events to watch out for will be next week’s GDP report and progress of monsoon. A spate of global data points will also have to be factored in. The market may remain choppy owing to the F&O expiry on Thursday and continuing uncertainty over the euro-zone debt crisis.
Results Today: Aegis Logistics, Astec Life Sciences, Bombay Dyeing, Canara Bank, Future Capital, GMR Infra, Hotel Leela, LMW, Madras Cements, Opto Circuits, Sun Pharma, Tata Chemicals, Tata Power and TV Today.
FIIs were net sellers of Rs15.4bn in the cash segment on Friday on a provisional basis, according to the NSE data. The local institutions were net buyers at Rs8.16bn on the same day. In the F&O segment, the foreign funds were net buyers of Rs1.05bn. On Thursday, FIIs were net sellers of Rs7.1bn in the cash segment. according to the SEBI data.
US stocks ended higher on Friday after a fairly volatile session, as investors used the recent sell-off to claw their way back into the market. However, the overall undertone is still a bit cautious owing to fears that the fiscal problems in the euro-zone could have wider repercussions for the global economy.
The Dow Jones industrial average rose 125 points or 1.3%, to 10,193 after having fallen as much as 150 points earlier in the session.
Gains were broad based, with 28 of 30 Dow components ending higher.
The S&P 500 index gained 16 points or 1.5% to 1,088 and the Nasdaq composite was up 25 points or 1.1% at 2,229 after having been on both sides of breakeven throughout the session.
A flurry of buying in the last half-hour of trading session was partly responsible for the positive close. And, despite Friday's gains, the Dow nevertheless snapped a two-week winning streak, off 4% for this week.
The Dow is now down 9% from its 2010 high, just out of territory signaling a correction to the bull market dating back to March 2009.
Though fears about Europe's credit crisis eased a little most traders and analysts are likely to keep a close eye on the region in the weeks ahead. Things may remain volatile as the debt-strapped euro-zone works its way out of the trouble.
The CBOE Volatility index (VIX), Wall Street's fear gauge, fell 12% to 39.88. The VIX had fallen more substantially in the early afternoon. On Thursday, the VIX spiked to a 14-month high of 45.48.
The euro gained 0.7% versus the dollar, rising for the third day in a row. The euro has seesawed over the last few days after plunging to a four-year low of US$1.2234 on Monday.
The dollar rose 0.4% versus the yen. The US Dollar Index slipped 0.2%.
Both the lower and upper houses of Germany's parliament approved the country's contribution to the €750bn (US$938.33bn) aid package from the European Union and International Monetary Fund bailout.
Commodities recovered some of the lost ground. Copper edged upwards, helping to push the broad Dow Jones-UBS Commodity Index up 0.3%.
US light crude oil for July delivery fell 76 cents to settle at US$70.04 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery fell US$12.50 to settle at US$1,176.10 an ounce.
Treasury prices rose, lowering the yield on the 10-year note to 3.20% from 3.26% late on Thursday.
The market is more than 10% off 2010 highs. A decline of more than 10% on a closing basis is technically considered to be a correction.
Since peaking at roughly 18-month highs in late April, the Dow had lost 10.2% and the S&P 500 had lost 12%. The Nasdaq was at a 22-month high at its peak and is down 12.9% as of Thursday's close.
The S&P 500 needs to close above the 200-day moving average within the next few sessions - otherwise that level, around 1102, or 3% above Thursday's close, is going to become hard for the market to surpass.
Big banking stocks sustained gains through the afternoon. A broad financial sector rally propelled the KBW Bank (BKX) sector index by 4% following the Senate's approval of the biggest overhaul of the financial system since the 1930s.
On Thursday night, the Senate passed a far-reaching Wall Street reform bill that is part of legislation that aims to prevent another financial crisis.
The nearly 1,600-page bill establishes a new consumer regulatory agency, sheds light on complex financial products and provides a new way for the government to deal with so-called too big to fail financial firms.
The bill has to be reconciled with a similar measure the House of Representatives passed in December before it can be sent to President Obama to sign.
Google got the regulatory approval for its US$750mn purchase of mobile advertising firm AdMob, following a six-month antitrust investigation. The Federal Trade Commission approved the deal since rival Apple recently purchased a mobile advertising service, Quattro Wireless.
Dell reported higher quarterly earnings and revenue that topped expectations, after the close of trading on Thursday. Strong business spending fueled the sales gain. However, the company's gross margins, a key measure of profitability, were lower than what many analysts were expecting. Dell shares fell 6.8%.
In economic data, More than half of all the US states saw lower unemployment rates last month, according to state-by-state figures released Friday morning.
European shares closed in the red on Friday but were well off the session lows, even as investors continued to be jittery about the fiscal situation in the debt-plagued euro-zone region.
The Stoxx Europe 600 index, which fell nearly 3% early in the session, finished down just 0.5% to 237.04. Friday's decline brought weekly losses for the for the pan-European stock market index to 4.6%.
The German DAX index fell 0.7% to 5,829.25, the French CAC-40 index dropped 0.1% to 3,430.74 and the UK FTSE 100 index declined 0.2% to 5,062.93.
Asian shares ended mixed, while US stocks closed with solid gains after oscillating between gains and losses in morning trading.
The German parliament approved the country's contribution to the joint EU-IMF support package for euro-zone countries struggling with high fiscal deficit levels. earlier in the week, Germany sent shockwaves across the globe when its regulator banned naked short-selling of certain financial instruments.
Drug stocks declined. GlaxoSmithKline shares lost 2.3% and Sanofi-Aventis shares fell 1.4%.
Royal Dutch Shell shares fell 1.1%. British oil giant BP, which is continuing to battle to clear up an oil spill in the Gulf of Mexico, was down 4.2%.
Rio Tinto shares gained 3.5% and Xstrata shares rose 6.4%.
British Airways saw it shares add 1%. It lost ground in the previous session when a court lifted an injunction that prevented cabin crew from striking.
British Airways said on Friday that its fiscal-year net loss widened to 425 million pounds (US$613.2 million), from £358 million a year ago. The latest quarter's operating loss includes seven days of strike action with a net cost of £43 million.
BA said that market conditions are showing improvement from depressed levels in 2009/10 and it's targeting revenue growth of 6% and breakeven at the profit before tax level for fiscal 2011.
Telecom stocks were in focus after the German spectrum auction ended late on Thursday. The auction raised €4.38 billion in total, according to reports. Analysts had been expecting proceeds of between €2 billion to €8 billion.
Vodafone shares rose 0.4% and Telefonica shares climbed 1%.
Dutch telecom firm KPN's shares rose 2.3%. It acquired 19% of the auctioned amount of frequency for €284 million and said that it will accelerate its share buyback program.
In the currency market, the euro rose versus the dollar, pushing the shared currency to its first weekly gain in five mostly due to short-covering. The euro touched a four-year low, under the US$1.22 mark, earlier this week.
The euro rose to US$1.2581, up from US$1.2550 late on Thursday. gve4Earlier, it rose as high as US$1.2672.
Against the Japanese yen, the euro traded at ¥113.05, from ¥112.99 on Thursday, a day during which the single currency dropped as low as ¥109.50 - its weakest since 2001.
The dollar index, which tracks the US currency against a basket of six major currencies, fell to 85.397, down from 85.637 late on Thursday.
The dollar traded at ¥89.87, compared to ¥90.01 late on Thursday, when it fell to a two-week low of ¥88.95.
The British pound bought US$1.4472, from US$1.4417 late on Thursday.
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