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Friday, May 28, 2010
BSE Bulk Deals to Watch - May 28 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
28/5/2010 530901 ACIL Cot Inds RAMESH MOHOD B 75000 31.00
28/5/2010 530901 ACIL Cot Inds ABHIJIT RAMESH MOHOD B 75000 31.00
28/5/2010 532282 Amtek India AMTEK AUTO LIMITED B 33110710 64.83
28/5/2010 532282 Amtek India BAWA PHARMACEUTICALS (P) LTD S 7886310 67.50
28/5/2010 532282 Amtek India AMTEK TECHNOLOGIES AND SOLUTIONS LIMITED S 8767400 64.00
28/5/2010 532282 Amtek India AMTEK PHARMACEUTICALS LIMITED S 7532000 64.00
28/5/2010 532282 Amtek India AMTEK TELEFILMS LIMITED S 8925000 64.00
28/5/2010 531761 Amulya Leas ATUL SALUJA B 31000 37.30
28/5/2010 531761 Amulya Leas RAVINDER KUMAR GARG B 79700 37.30
28/5/2010 531761 Amulya Leas BP FINTRADE PRIVATE LIMITED B 31200 37.30
28/5/2010 531761 Amulya Leas IMARTI DEVI S 200000 37.30
28/5/2010 512247 Ashirwad Cap SAURABH KUMARRASIKLALGANDHI B 248113 2.00
28/5/2010 512247 Ashirwad Cap SWASTI VINAYAKA INVESTECH LIMITED S 200000 2.00
28/5/2010 531591 Bampsl Sec PRAKASHCHANDGUPTA S 500000 1.39
28/5/2010 532230 Bengal Tea PRAVINCHANDRA MORARJI VORA B 52150 50.65
28/5/2010 517001 Birla Power EDELWEISS ESTATES P LTD B 6287347 2.34
28/5/2010 517001 Birla Power EDELWEISS ESTATES P LTD S 6287347 2.32
28/5/2010 520115 Brakes Auto RICHA AGARWAL B 25000 10.00
28/5/2010 531337 Channel Guide AMISHDINESH SHAH B 30000 14.90
28/5/2010 533026 Chemcel Bio LUCAS MEYER INDUSTRIES PRIVATE LIMITED B 186001 8.19
28/5/2010 533026 Chemcel Bio ACME FURNITURE PRIVATE LIMITE S 186000 8.19
28/5/2010 532324 Cinevistaas ASHOKCHINUBHAI SHAH B 480888 7.62
28/5/2010 532324 Cinevistaas ASHOKCHINUBHAI SHAH S 600774 7.59
28/5/2010 532456 Compuage Info JIGNASANJEEV SHAH B 113450 144.08
28/5/2010 532456 Compuage Info RUPAPRADIP SHAH B 144981 143.41
28/5/2010 532456 Compuage Info RUPAPRADIP SHAH S 144881 143.41
28/5/2010 526550 Country Club SUNDEEP CREDITS PVT LTD B 584765 20.31
28/5/2010 512361 Cupid Trades PARVATIMINERALS PRIVATELTD B 10000 54.00
28/5/2010 512361 Cupid Trades SHAMANJWALI PVT LTD S 10000 54.00
28/5/2010 531171 Devika Prot NARENDRA VALLABHAJI BAHUVA B 52711 25.66
28/5/2010 532903 Dhanus Tech IFCI VENTURE CAPITAL FUND LTD S 123000 13.28
28/5/2010 532610 Dwarikesh Sugar MELCHIOR INDIAN OPPORTUNITIES FUND LIMITED S 85000 52.13
28/5/2010 526473 Elegant Flori AMITVIJAYKUMARMAHAJAN S 95000 8.60
28/5/2010 532038 Emmsons Intl ATIM KABRA B 22000 120.00
28/5/2010 531601 Gujarat Capital HIRALAL KHATRI B 125000 58.01
28/5/2010 531601 Gujarat Capital NIDHI MAHENDRA SHAH B 150000 49.23
28/5/2010 531601 Gujarat Capital MITTAL SECURITIES FINANCE LIMITED S 79810 39.58
28/5/2010 532770 Hanung Toys AASHKA CONSTRUCTION PRIVATE LIMITED B 143352 217.64
28/5/2010 532770 Hanung Toys AASHKA CONSTRUCTION PRIVATE LIMITED S 143352 217.01
28/5/2010 530255 KAY Power BAMPSL SECURITIES LTD B 70551 14.69
28/5/2010 530255 KAY Power BAMPSL SECURITIES LTD S 100000 14.44
28/5/2010 530547 KEN Fin Serv KAMAL M. TIBREWAL S 25000 67.00
28/5/2010 509011 Livingroom Life SHAKERAJEHANGIRNAGREE S 8600 43.74
28/5/2010 514450 Mahalaxmi Rub ASHOK PARMAR B 49418 159.13
28/5/2010 590111 MASTER SREE LAKSHMI MIKKILINENI B 61504 34.50
28/5/2010 590111 MASTER CHITTI BABU UPPALAPATI S 28000 34.45
28/5/2010 531453 Mohit Inds NARESHCHAND JAIN B 24398 26.68
28/5/2010 531453 Mohit Inds MOOSA ALIKADIR PAGARKAR B 25000 24.83
28/5/2010 531453 Mohit Inds NIRANJAN VENI S 25000 24.75
28/5/2010 531453 Mohit Inds GITABHAINI RANJAN S 25000 26.25
28/5/2010 531453 Mohit Inds NARESHCHAND JAIN S 24398 26.95
28/5/2010 533080 MOLDTKPACK A M LODHA AND SONS S 40000 51.18
28/5/2010 531496 Omkar Overseas PANKAJBABULAL KOTECHA S 40000 78.75
28/5/2010 512097 Oregon Comm AMULG DESAI B 13069 318.58
28/5/2010 512097 Oregon Comm DHIRENKUMAR DHARAMDAS AGARWAL B 5000 317.90
28/5/2010 512097 Oregon Comm KRUNAL GOPALDAS RANA S 15000 316.55
28/5/2010 512097 Oregon Comm CHETANKUMAR KANTILAL SHAH S 5000 318.75
28/5/2010 531280 Pankaj Poly GARNET INTERNATIONAL LIMITED B 70429 25.75
28/5/2010 531280 Pankaj Poly INDIRA GAGGAR S 42715 25.75
28/5/2010 590077 Ranklin Sol BALA RAMA VENKATA SIVA NAGA S B 48311 76.89
28/5/2010 590077 Ranklin Sol KURALLA KANT B 27052 77.16
28/5/2010 590077 Ranklin Sol KURALLA KANT S 27239 76.52
28/5/2010 532918 Rathi Bars WALLFORT FINANCIAL SERVICES LTD S 100000 20.94
28/5/2010 532918 Rathi Bars BP FINTRADE PRIVATE LIMITED S 87301 21.43
28/5/2010 512359 Rotam Comm BHARAT A PANCHAL B 7689 80.67
28/5/2010 512359 Rotam Comm KAPILABENRASIKLALPANDYA B 15000 82.90
28/5/2010 512359 Rotam Comm PRAKASH KISHAN CHANDVIRWANI S 6000 80.00
28/5/2010 512359 Rotam Comm DILIPKVIRVANI S 6000 80.00
28/5/2010 511754 Shalibhadra Fin AMIT AGGARWAL B 27000 33.40
28/5/2010 531373 Suave Hotels LATIF UMMED ALI KHAN S 109454 41.02
28/5/2010 532311 Tutis Tech MANISH JAIN B 100000 23.48
28/5/2010 519457 Virat Crane GIRISH GULATI B 36732 17.50
28/5/2010 523628 Wearology RHODES DIVERSIFIED B 200000 86.50
28/5/2010 523628 Wearology SOPHIA GROWTH A SHARE CLASS OF SOMERSET I FUND S 199558 86.50
* B - Buy, S - Sell
NSE Bulk Deals to Watch - May 28 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
28-MAY-2010,ARSHIYA,Arshiya International Ltd,RELIANCE CAPITAL M F A/C REL REGULAR SAVING FUND EQ OPTION,BUY,1452489,190.00,-
28-MAY-2010,BIRLAPOWER,Birla Power Solutions Ltd,EDELWEISS ESTATES P LTD,BUY,6225394,2.25,-
28-MAY-2010,CINEVISTA,Cinevistaas Limited,SACHIN JAIN,BUY,400851,7.78,-
28-MAY-2010,CINEVISTA,Cinevistaas Limited,SHAH ASHOK CHINUBHAI,BUY,829320,7.68,-
28-MAY-2010,SPECTACLE,Spectacle Industries Ltd,ANKIT RAJENDRA SANCHANIYA,BUY,299403,126.13,-
28-MAY-2010,ARSHIYA,Arshiya International Ltd,CARLSON FUND EQUITY ASIAN SMALL CAP (CASE),SELL,452500,190.00,-
28-MAY-2010,ARSHIYA,Arshiya International Ltd,TREE LINE ASIA MASTER FUND (SINGAPORE) PTE LIMITED,SELL,1000000,190.00,-
28-MAY-2010,BANKRAJAS,Bank Of Rajasthan Ltd,PAYASH SECURITIES PVT.LTD.,SELL,790000,162.70,-
28-MAY-2010,BIRLAPOWER,Birla Power Solutions Ltd,EDELWEISS ESTATES P LTD,SELL,13939243,2.35,-
28-MAY-2010,CINEVISTA,Cinevistaas Limited,SACHIN JAIN,SELL,400603,7.71,-
28-MAY-2010,CINEVISTA,Cinevistaas Limited,SHAH ASHOK CHINUBHAI,SELL,821599,7.61,-
28-MAY-2010,DHANUS,Dhanus Technologies Limit,IFCI VENTURE CAPITAL FUND LTD,SELL,102000,13.54,-
28-MAY-2010,DWARKESH,Dwarikesh Sugar Industrie,MELCHIOR INDIAN OPPORTUNITIES FUND LIMITED,SELL,175000,52.24,-
28-MAY-2010,SPECTACLE,Spectacle Industries Ltd,ANKIT RAJENDRA SANCHANIYA,SELL,306903,126.00,-
Bulls lead third day back-to-back
Today's major news
Reliance Power acquires generation assets from Reliance Infrastructure
Food inflation inches down to 16.23%
Reliance Industries makes fifth oil discovery in Gujarat block
Click here for more stories
Global signals
European stocks rose in early trade on Friday, adding to a brisk two-day recovery rally as investors continued to scoop up beaten-down shares while fears over further sell-off of euro assets moved to the backburner.
All the major Asian indices closed in the positive territory except Shanghai Composite that closed with marginal loss of 0.01%. Jakarta Composite and Straits Times were closed today. SGX Nifty closed 65 points higher.
The US stock index futures signal mixed opening on the Wall Street. Investors keep an eye on data related to consumer sentiment, personal income and consumption numbers for the month of April.
Indian indices
Bulls continued to trounce the bear on the third consecutive day. The market witnessed solid gains and the momentum persisted throughout the session. The Sensex gained 841 points in the last three days. World equities also extended gains as investor worry eased after China refuted a report that it was reviewing its Euro zone bond holdings due to the region's debt crisis.
Heavy gains on the Wall Street and strong Asian indices, boosted the Indian indices at the start. The Sensex began the session 27 points higher. Easing food inflation to 16.23% for the week ended May 15, 2010 and positive European markets, coupled with robust buying in realty and metal stocks led the Sensex to expand its gains and hit the day's high of 16891. However, mid cap and small cap outperformed the Sensex. The Sensex finally ended at 16863, up 197 points. The Nifty holding its 5000 psychological levels, settled at 5066, higher by 63 points.
Market sentiment
The market breadth was constructive as advancing stocks outnumbered trailing stocks over two times. Of the 2,929 stocks traded on the BSE, 1,923 stocks advanced, whereas 892 stocks declined. Hundred and fourteen stocks remained unchanged.
Sectoral & stock screening
On the third straight session, all the 13 sectoral indices on the BSE closed on a positive note. BSE Realty led the pack of gainers, with gains of 3.92%, followed by BSE Metal that surged by 3.54% and BSE FMCG (fast moving consumer goods) that added 2.34%. Remaining indices closed in the range of 0.62%-1.47% higher.
Among 'A' group stocks: The top three gainers - Sesa Goa (up 10.77%), Shree Renuka Sugars (up 9.71%) and Housing & Development Infrastructure (up 8.82%). The top three losers - Mphasis (down 3.24%), Tata Chemicals (down 2.10%) and Piramal Healthcare (down 1.75%).
Viewing volumes
Iron and steel maker and top gainers of the day - Sesa Goa saw highest trading with over 0.69 crore shares changing hands on the BSE, followed by industrial finance company - IFCI (0.67 crore shares), wind turbine major - Suzlon Energy (0.63 crore shares), sugar major - Shree Renuka Sugars (0.61 crore shares) and India's largest developer - Unitech (0.50 crore share).
Market rebounds from 3-1/2 month trough
The key benchmark indices rebounded from 3-1/2 month lows hit early in the week, tracking recovery in global stocks. The S&P CNX Nifty regained the psychological 5,000 mark after falling below that mark in the preceding week. The market gained in 4 out of 5 trading sessions in the week ended Friday, 28 May 2010.
The BSE Sensex rose 417.45 points or 2.54% to 16,863.06. The S&P CNX Nifty gained 135.40 points or 2.74% to 5,066.55.
The BSE Mid-Cap index rose 1.01% and the BSE Small-Cap index gained rose 0.94%. Both the indices underperformed the Sensex.
The Sensex had slumped to 3-1/2 month lows on Tuesday, 25 May 2010, on sustained selling by foreign funds triggered by risk aversion amid euro zone debt worries. Foreign institutional investors (FIIs) have sold Indian shares worth a net Rs 13,067.32 crore so far this month, till 27 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 6092.31 crore so far this month, till 27 May 2010.
The Reserve Bank of India (RBI) on Wednesday, 26 May 2010, eased rules to boost liquidity at banks to avoid a cash crunch because of payments for corporate advance tax and license fees for third-generation mobile-phone spectrum. As per RBI's circular released on 26 May 2010, banks can borrow as much as 0.5% of their deposits from the central bank under the repurchase agreement till 2 July 2010. In addition, RBI said that as an ad hoc measure, banks can seek a waiver for any shortfall in maintenance of the prescribed 25% statutory liquidity ratio (SLR) while availing the temporary facility.
Besides, the central bank has decided to conduct two rounds of liquidity adjustment facility (LAF) operations till 2 July 2010. Through LAFs, that are conducted at least once a day, banks can avail of funds through the repo window or park surplus cash through the reverse repo route.
China, India, Brazil and Russia are powering ahead, the Organisation for Economic Cooperation and Development (OECD) said on Wednesday, 26 May 2010, revising upwards its growth outlook for all four largest emerging economies. The OECD revised India's GDP growth forecast for 2010 to 8.2% from its earlier estimate of 7.3%. It also raised the growth forecast for 2011 to 8.5% from its earlier estimate of 7.6%. The OECD also said that underlying inflationary pressures are likely to persist given the strong outlook for demand.
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.
Prime Minister Manmohan Singh on Monday, 24 May 2010, said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. 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).
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.
The monsoon rains are likely to hit the country's southern coast in three to four days, the India Meteorological Department said in its latest forecast on Thursday, 27 May 2010. Conditions are becoming favourable for onset of southwest monsoon over Kerala during next 3-4 days, the weather office said.
The weather office had said late last week that rains were 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. 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 fourth quarter corporate results are almost over. The combined net profit of a total of 2,668 companies rose 10.90% to Rs 77238 crore on 25.80% rise in sales to Rs 812809 crore in the quarter ended March 2010 over the quarter ended March 2009.
The key benchmark indices settled marginally higher on Monday, 24 May 2010, 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% to 16,469.55 on Monday.
The key benchmark indices tumbled on Tuesday, 25 May 2010 to their lowest level in more than three months as world stocks slumped amid tensions in Korea as well as anxiety over global debt levels and sovereign default fears. The BSE 30-share Sensex fell 447.07 points or 2.71% to 16,022.48, its lowest closing level since 10 February 2010.
The key benchmark indices rebounded on Wednesday, 26 May 2010 from 3-1/2 month lows hit on Tuesday, 25 May 2010, tracking recovery in world stocks triggered by bargain hunting after a sharp slide. The BSE 30-share Sensex rose 365.36 points or 2.28% to 16,387.84.
Bulls were back with a bang as the key benchmark indices surged for the second straight day on Thursday, 27 May 2010, on firm global stocks after China signalled support for the euro zone. The BSE 30-share Sensex rose 278.56 points or 1.76% to 16,666.40 on that day.
Stocks extended gains for the third straight session on Friday, 28 May 2010, as world equities rose. The BSE 30-share Sensex was up 196.66 points or 1.18% to 16,863.06.
Index heavyweight Reliance Industries (RIL) rose 3.83% in the week after the feuding Ambani brothers Mukesh and Anil on Sunday, 23 May 2010, ended non-compete agreements in a move they hoped would lead to cooperation between the two groups. 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 Anil Dhirubhai Ambani group (ADAG) can enter petroleum and petrochemical businesses.
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.
Meanwhile, RIL during market hours on Friday, 28 May 2010 said it made a fifth oil discovery in Cambay basin in Gujarat.
Shares of Anil Dhirubhai Ambani group spurted. Reliance Natural Resources (up 17.75%), Reliance Power (up 12.97%), Reliance Communications (up 10.53%), Reliance Infrastructure (up 6.26%), Reliance Capital (up 6.26%), jumped.
India's largest cigarette maker by sales ITC rose 3.9%. The scrip hit an all time high of Rs 283.10 on Friday, 28 May 2010. 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 steel maker by sales Tata Steel slipped 2.6%. Tata Sons, the main investment firm of the Tata Group, is likely to inject around Rs 1,350 crore in Tata Steel through a preferential share-cum-warrant issue to part-finance the steel maker's future growth plans. The Tata Steel board on Thursday, 27 May 2010, decided to make the preferential allotment of 1.5 crore equity shares along with a 1.2 crore warrant issue to Tata Sons. The warrants can be converted into equity shares at a later stage at a pre-determined price.
India's top truck maker by sales Tata Motors jumped 5.31%. The company reported a consolidated net profit of Rs 2571.06 crore in the year ended March 2010 as against a net loss of Rs 2505.25 crore in the year ended March 2009. Net sales rose 30.7% to Rs 91893.45 crore in the year ended March 2010 over in the year ended March 2009. Surge in consolidated net profit was helped by rising sales and profitability at its Jaguar Land Rover (JLR) unit. The result was announced after market hours on 27 May 2010.
India's largest tractor maker by sales Mahindra & Mahindra rose 1.04%. The company on Wednesday, 26 May 2010, said it has entered into high growth electric car segment by acquiring a majority 55.2% equity stake in Reva Electric Car Company. The company announces its Q4 result on Saturday, 29 May 2010.
India's largest small car maker by sales Maruti Suzuki India lost 1.53%.
Sterlite Industries (up 6.26%), Tata Consultancy Services (up 4.21%), DLF (up 4.05%), Larsen & Toubro (up 1.12%), rose.
Monthly sales data from auto, cement firms eyed
A raft of macro economic data will be in focus early next week. The monsoon also holds key. The developments in the euro zone will also be closely watched as investors have remained cautious and stayed away from risky assets in the recent past amid persistent worries that the debt crisis in the euro zone could dent consumer spending in that region and slow a global economic recovery.
Foreign institutional investors (FIIs) have sold Indian shares worth a net Rs 13,067.32 crore so far this month, till 27 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 6092.31 crore so far this month, till 27 May 2010.
The government will unveil Q4 March 2010 GDP growth data on Monday, 31 May 2010. The government will also announce the infrastructure output data for the month of April 2010 on Tuesday, 1 June 2010.
Investors will also keenly watch HSBC purchasing manager's Index (PMI) index indicating manufacturing activity and the HSBC business activity index indicating services activity for the month of May 2010
Cement, auto and steel stocks will be in action as companies announce their sales figures for the month of May 2010.
Progress of the monsoon will be closely watched as any surprises here will have a serious impact on investor sentiment specifically after the last year's drought. The monsoon rains are likely to hit the country's southern coast in three to four days, the India Meteorological Department said in its latest forecast on 27 May 2010. Conditions are becoming favourable for onset of southwest monsoon over Kerala during next 3-4 days, the weather office said.
The weather office had said late last week that rains were 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. 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 results season is almost over. The combined net profit of a total of 2,657 companies rose 13.8% to Rs 70,690 crore on 25.4% rise in sales to Rs 7,35,191 crore in the quarter ended March 2010 over the quarter ended March 2009.
Mahindra & Mahindra will announce its Q4 March 2010 result on Saturday, 29 May 2010.
Market extends gains for the third day
Stocks extended gains for the third straight session as world equities rose after China on Thursday, 27 May 2010, denied reports that it would pare euro-bond holdings. The BSE 30-share Sensex was up 196.66 points or 1.18% to 16,863.06, up 170.40 points from the day's low and off 28.11 points from the day's high. The market breadth was strong.
From a recent low of 16,022.48 on Tuesday, 25 May 2010, the Sensex has jumped 840.58 points or 5.24% in the past three trading sessions. The Sensex has lost 1,106.96 points or 6.16% from a recent peak of 17,970.02 on 7 April 2010. The barometer index has lost 601.75 points or 3.44% in calendar 2010 after jumping 81% in 2009.
Coming back to today's trade, metal shares gained following rise in metal prices in London on Thursday. Banking stocks advanced on fresh buying. IT pivotals gained, reversing early losses, on the back of firm ADRs on Thursday, 27 May 2010. Oil exploration stocks gained after crude oil rose on Thursday. Realty stocks extended gains for the third day in a row. Sugar stocks gained on reports global prices may rise on speculation that importers will boost purchases of the sweetener. Six stocks in which trading began in the derivatives segment from today, 28 May 2010, were mixed.
Intraday volatility was high. The market opened on a firm note tracking gains in Asian stocks. The market soon pared gains on profit taking. The market regained strength in morning trade. Stocks once again pared gains later. The market recovered from lower level in mid-morning trade. The market moved in a range later. The Sensex surged to a fresh intraday high in mid-afternoon trade. The market pared gains at the fag end of the trading session soon after hitting a fresh intraday high.
NSE's volatility index India VIX declined sharply, extending a two-day steep slide. India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, dropped 8.89% to 26.43. 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
Standard Chartered's Indian depository receipts (IDRs) issue was fully bid. The issue was subscribed 2.17 times by 16:00 IST, getting bids for 44.34 crore shares as against 20.40 crore IDRs on offer. The issue closes today.
As per government data released today, 28 May 2010, food inflation rose 16.23% in the year through 15 May 2010, lower than previous week's annual rise of 16.49%. The fuel price inflation also slowed to 12.08% from the previous week's 12.33%. The primary articles index was up 15.90%, compared with the previous week's annual reading of 16.19%.
The government unveils fourth quarter March 2010 GDP data on Monday, 31 May 2010.
European shares moved higher for the third straight session on Friday, with mining stocks continuing to outperform the broader market. The key benchmark indices in France, Germany and UK rose by between 0.20% to 0.56%. UK market remains closed on Monday, 31 May 2010, on account of Spring Bank Holiday
Asian stocks extended gains for the third straight session on Friday after China reassured its commitment to investing in Europe. Key benchmark indices in Hong Kong, South Korea, Japan and Taiwan were up by between 0.72% to 1.73%. However, China's Shanghai Composite declined marginally by 0.01%, reversing early gains. Markets in Singapore, Indonesia, Thailand and Malaysia were closed for a public holiday.
US markets rallied on Thursday, 27 May 2010 after China said it remains a long-term investor in Europe. China's State Administration of Foreign Exchange put aside rumors that it has lost faith in euro-zone bonds and reiterated that it remains a long term investor in Europe. The Dow Jones Industrial Average rallied 284.54 points or 2.85% to 10,258.99. The Nasdaq index rose 81.80 points or 3.73% to 2,277.68 and the S&P 500 advanced 35.11 points or 3.29% to 1,103.06.
In economic data, the commerce department on Thursday reported that US gross domestic product rose at an annualised rate of 3% in the first quarter, a downward revision from last month's initial estimate of 3.2% growth. The US economy had expanded at a 5.6% pace in Q4 2009.
Separately, new applications for state jobless benefits dropped to 460,000 in the week ending 22 May 2010 from 474,000 in the prior week, the Labor Department said.
Trading in US index futures indicated that the Dow could gain 8 points at the opening bell on Friday, 28 May 2010. US markets are closed on Monday, 31 May 2010, for the Memorial Day holiday.
Back home, the Reserve Bank of India (RBI) on Wednesday, 26 May 2010, eased rules to boost liquidity at banks to avoid a cash crunch because of payments for corporate advance tax and license fees for third-generation mobile-phone spectrum. As per RBI's circular released on 26 May 2010, banks can borrow as much as 0.5% of their deposits from the central bank under the repurchase agreement till 2 July 2010. In addition, RBI said that as an ad hoc measure, banks can seek a waiver for any shortfall in maintenance of the prescribed 25% statutory liquidity ratio (SLR) while availing the temporary facility.
Besides, the central bank has decided to conduct two rounds of liquidity adjustment facility (LAF) operations till 2 July 2010. Through LAFs, that are conducted at least once a day, banks can avail of funds through the repo window or park surplus cash through the reverse repo route.
China, India, Brazil and Russia are powering ahead, the Organisation for Economic Cooperation and Development (OECD) said on Wednesday, 26 May 2010, revising upwards its growth outlook for all four largest emerging economies. The OECD revised India's GDP growth forecast for 2010 to 8.2% from its earlier estimate of 7.3%. It also raised the growth forecast for 2011 to 8.5% from its earlier estimate of 7.6%. The OECD also said that underlying inflationary pressures are likely to persist given the strong outlook for demand.
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.
Prime Minister Manmohan Singh early this week said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. 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).
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.
The monsoon rains are likely to hit the country's southern coast in three to four days, the India Meteorological Department said in its latest forecast on Thursday. Conditions are becoming favourable for onset of southwest monsoon over Kerala during next 3-4 days, the weather office said.
The weather office had said late last week that rains were 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. 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 fourth quarter corporate results season is almost over. The combined net profit of a total of 2,675 companies rose 11.50% to Rs 79540 crore on 25.30% rise in sales to Rs 825519 crore in the quarter ended March 2010 over the quarter ended March 2009.
The BSE 30-share Sensex was up 196.66 points or 1.18% to 16,863.06. The index rose 224.70 points at the day's high of 16,891.17 in late trade. The Sensex rose 26.26 points at the day's low of 16,692.66 in early trade.
The S&P CNX Nifty was up 63.45 points or 1.27% to 5,066.55 as per provisional closing
The market breadth, indicating the overall health of the market, was strong. On BSE, 1930 shares advanced as compared with 936 that declined. A total of 100 shares remained unchanged.
The BSE Mid-Cap index rose 1.65% to 6,756.01 and the BSE Small-Cap index rose 1.39% to 8,494.45. Both the indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3962 crore, higher than Rs 3,824.08 crore on Thursday.
Among the 30-share Sensex pack, 24 advanced while the rest fell.
Index heavyweight Reliance Industries (RIL) rose 0.99% to Rs 1032. The stock rose in volatile trade, swinging in a band of Rs 1015 and Rs 1037 during the day. The company during market hours today said it made a fifth oil discovery in Cambay basin in Gujarat.
Oil exploration stocks gained after crude oil rose on Thursday, 27 May 2010. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Cairn India rose 1.21%, boosted by strong results. Cairn India's consolidated net profit jumped 53% to Rs 1051.10 crore on 45% increase in operating revenue to Rs 1623 crore in the year ended March 2010 over the year ended March 2009. The results were announced after trading hours on Thursday
India's largest oil & gas exploration firm by sales Oil & Natural Gas Corporation was unchanged at Rs 1125 ahead of its year ended March 2010 results today.
Oil prices rallied for a second day on Thursday as investors set aside worries for now about the European debt crisis and focused on rising stock markets and improving economic data. Benchmark crude for July delivery rose $3.04 to $74.55 a barrel on the New York Mercantile Exchange.
Metal shares surged after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 2.96% to 3,204.10 on Thursday, 27 May 2010.
India's largest non-ferrous metal producer by sales Sterlite Industries jumped 5.91% to Rs 682.90 and was the top gainer from the Sensex pack.
India's largest private sector aluminium maker by sales Hindalco Industries rose 1.01% after its US subsidiary Novelis clawed back into profits. The world's largest producer of aluminium rolled products reported a net income of $405 million for the fiscal year 2010 as against a net loss of $1.9 billion it suffered last year.
However, India's largest steel maker by sales Tata Steel slipped 0.30% to Rs 491.50, off day's high of Rs 508.80 on profit booking. Tata Sons, the main investment firm of the Tata Group, is likely to inject around Rs 1,350 crore in Tata Steel through a preferential share-cum-warrant issue to part-finance the steel maker's future growth plans. The Tata Steel board on Thursday, 27 May 2010, decided to make the preferential allotment of 1.5 crore equity shares along with a 1.2 crore warrant issue to Tata Sons. The warrants can be converted into equity shares at a later stage at a pre-determined price.
National Aluminium Company (up 1.83%), Hindustan Zinc (up 3.24%), Sesa Goa (up 11.07%), Jindal Steel & Power (up 4.83%), rose.
Steel Authority of India (Sail) rose 3.05% after net profit jumped 40.3% to Rs 2084.90 crore in Q4 March 2010 over Q4 March 2009. The result was announced during trading hours today.
India's largest cigarette maker by sales ITC rose 2.45% at Rs 281.90. The scrip hit an all time high of Rs 283.10 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 listed cellular services provider by sales Bharti Airtel fell 0.40%. As per reports, the company is seeking funds from its bankers to pay for its $9-billion buy of Kuwaiti telecom Zain's African assets.
India's top truck maker by sales Tata Motors gained 0.75% to Rs 748.50. The stock came off the day's high of Rs 774. The company reported a consolidated net profit of Rs 2571.06 crore in the year ended March 2010 as against a net loss of Rs 2505.25 crore in the year ended March 2009. Net sales rose 30.7% to Rs 91893.45 crore in the year ended March 2010 over in the year ended March 2009. Surge in consolidated net profit was helped by rising sales and profitability at its Jaguar Land Rover (JLR) unit. The result was announced after market hours on 27 May 2010.
Other auto stocks saw mixed trend. India's largest tractor maker by sales Mahindra & Mahindra rose 3.61%, extending two-day gains after the company during market hours on Wednesday, 26 May 2010, said it has entered into high growth electric car segment by acquiring a majority 55.2% equity stake in Reva Electric Car Company. The company announces its Q4 result on Saturday, 29 May 2010.
India's largest small car maker by sales Maruti Suzuki India lost 1.01% to Rs 1220.20 and was the top loser from the Sensex pack.
Amtek India jumped 3.91% after Amtek Auto bought 26.25% stake in the company through block deals on the Bombay Stock Exchange at an average price of Rs 64.83 a share. The announcement was made during trading hours today, 28 May 2010.
Reliance Infrastructure rose 0.75% and Reliance Power gained 1.03%. Reliance Infrastructure during market hours today announced transfer of 433 megawatt of generation assets in favor of Reliance Power. The transfer of assets has been valued at Rs 1095 crore. Both companies belong to the group controlled by billionaire Anil Ambani.
Banking stocks gained on fresh buying, reversing initial fall. India's largest private sector bank by net profit ICICI Bank rose 0.40% to Rs 860, off day's low of Rs 848.
India's largest commercial bank by net profit and branch network State Bank of India rose 0.69% to Rs 2231.05 after declining to day's low of Rs 2202.85. Canara Bank (up 1.12%), Vijaya Bank (up 3.22%), and Bank of India (up 2.33%), rose.
However, India's second largest private sector bank by net profit HDFC Bank declined 0.58% to Rs 1884, retreating from day's high of Rs 1920.
IT pivotals gained, reversing early losses, on the back of firm American depository receipt (ADRs) on Thursday, 27 May 2010. India's second largest software services exporter by sales Infosys gained 1.27% to Rs 2677.15, off day's low of Rs 2638. Its ADR rose 4.19% on Thursday.
India's third largest software services exporter by sales Wipro rose 1.07% to Rs 664.10, off the day's low of Rs 655.15. Its ADR rose 6.9% on Thursday. India's largest software services exporter by sales TCS rose 1.11% to Rs 749.25, off the day's high of Rs 737.
Realty stocks extended gains for the third running day. DLF (up 2.98%), Parsvnath Developers (up 11.46%), Unitech (up 2.74%), Orbit Corporation (up 4.52%), rose.
Early this week, Lodha Developers paid more than twice the asking price to win a 25,000-square meter plot of land in the central Mumbai suburb of Wadala for Rs 4050 crore.
Omaxe jumped 3.07% after the company reported a net profit of Rs 41.30 crore in Q4 March 2010 compared with net loss of Rs 31.83 crore in Q4 March 2009. The result was announced after market hours on Thursday, 27 May 2010.
Housing Development & Infrastructure jumped 8.34% after net profit surged 187.20% to Rs 177.84 crore on 19.50% increase in total income to Rs 464.46 crore in Q4 March 2010 over Q4 March 2009. The result was announced during trading hours today, 28 May 2010.
Six stocks in which trading began in the derivatives segment from today, 28 May 2010, were mixed. Exide Industries (up 0.13%), Ruchi Soya Industries (up 4.48%), and Sobha Developers (up 2.72%), gained. However, Jindal Southwest Holdings (down 0.15%), Gujarat Mineral Development Corporation (down 1.92%), and Hexaware Technologies (down 1.79%), declined.
Sugar stocks gained on reports global prices may rise on speculation that importers will boost purchases of the sweetener. Uttam Sugar (up 4.95%), Bajaj Hindusthan (up 6.59%), Balrampur Chini Mils (up 3.01%), Triveni Engineering & Industries (up 5.07%), and Sakthi Sugar (up 15.14%), gained.
Shree Renuka Sugars galloped 9.98% on reports the company's billion-dollar acquisition of the world's largest sugar producer is on the verge of collapsing. The stock surged as concerns of assuming huge debt in the books of the firm arising from the large acquisition, receded.
D B Corp rose 1.57% as its net profit jumped 45.8% to Rs 40.95 crore on 9.3% rise in net sales to Rs 244.83 crore in Q4 March 2010 over Q4 March 2009. The company announced the result after market hours on Thursday, 27 May 2010.
Sun TV Network rose 0.82% after net profit surged 29.8% to Rs 567.38 crore on 31.69% rise in total income to Rs 1437.52 crore in the year ended March 2010 over the year ended March 2009. The company announced the result during market hours today, 28 May 2010.
Pantaloon Retail (India) jumped 5.61% after company said a board meeting will be held on 31 May 2010 to consider raising funds by various routes. The company announced the board meeting after market hours on Thursday, 27 May 2010.
Blue Star rose 2.42% after the company said its board will meet on Monday, 31 May 2010, to consider a proposal for purchase of a business. No other details were disclosed. The announcement was made after market hours on Thursday, 27 May 2010.
Areva T&D India jumped 7.33% to Rs 287 after the company's foreign promoter fixed the open offer price at Rs 295.34 per share to acquire up to 4.78 crore shares, or 20% equity capital of the company. The open offer was announced at the onset of trading session today, 28 May 2010.
Neyveli Lignite Corporation rose 3.33% after net profit rose 51.92% to Rs 1247.46 crore on 17.41% rise in total income to Rs 4719.76 crore in the year ended March 2010 over the year ended March 2009. The company announced the result after market hours on Thursday, 27 May 2010.
Apollo Tyres jumped 7.06% after net profit soared 151.50% to Rs 116.17 crore on 18.20% increase in net sales to Rs 1312.78 crore in Q4 March 2010 over Q4 March 2009. The result was announced during trading hours today, 28 May 2010.
Amtek India clocked the highest volume of 3.56 crore shares on BSE. Cals Refineries (2.60 crore shares), Birla Power Solutions (2.23 crore shares), Pipavav Shipyard (89.39 lakh shares), and Sesa Goa (69.84 lakh shares) were the other volume toppers in that order.
Sesa Goa clocked the highest turnover of Rs 255.37 crore on BSE. Amtek India (Rs 231.89 crore), Tata Steel (Rs 176.16 crore), Tata Motors (Rs 122.76 crore) and State Bank of India (Rs 91.73 crore) were the other turnover toppers in that order.
Market seen extending two-day rally on strong global cues
The market is likely to extend two-day strong gains on positive global cues. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicated that the Nifty could rise 64 points at the opening bell. The government will unveil data on some wholesale price indices for the year through 15 May 2010 viz. the food price index, the primary articles index and the fuel price index at about 12:00 IST today.
Auto and cement shares may see action ahead of release of May 2010 sales figures due to be announced next week. Tata Motors posted consolidated net profit of Rs 2571.06 crore for the year ended March 2010 (FY 2010) as compared with net loss of Rs 2505.25 crore in the year ended March 2009 (FY 2009). The result was announced after trading hours on 27 May 2010.
Apollo Hospital, Apollo Tyres, Asian Paints, BEML, EIH, Glenmark Pharma, HDIL, Indian Oil Corporation, ONGC, Punjab National Bank, Punj Lloyd, Sail, Unitech, and Sun TV Network will announce their January-March 2010 quarter results today.
Asian stocks extended gains for the third straight session on Friday after China reassured its commitment to investing in Europe. Key benchmark indices in China, Hong Kong, South Korea, Japan and Taiwan were up by between 0.46% to 1.01%.
US markets rallied on Thursday, 27 May 2010 after China said it remains a long-term investor in Europe. The Dow Jones Industrial Average rallied 284.54 points or 2.85% to 10,258.99. The Nasdaq index rose 81.80 points or 3.73% to 2,277.68 and the S&P 500 advanced 35.11 points or 3.29% to 1,103.06.
In economic data, the first quarter GDP showed that the US economy expanded at 3%. This is slower than the 3.2% increase that came with the advance estimate.
Back home, the Reserve Bank of India (RBI) on Wednesday eased rules to boost liquidity at banks to avoid a cash crunch because of payments for corporate advance tax and license fees for third-generation mobile-phone spectrum. As per RBI's circular released on 26 May 2010, banks can borrow as much as 0.5% of their deposits from the central bank under the repurchase agreement till 2 July 2010. In addition, RBI said that as an ad hoc measure, banks can seek a waiver for any shortfall in maintenance of the prescribed 25% statutory liquidity ratio (SLR) while availing the temporary facility.
Besides, the central bank has decided to conduct two rounds of liquidity adjustment facility (LAF) operations till 2 July 2010. Through LAFs, that are conducted at least once a day, banks can avail of funds through the repo window or park surplus cash through the reverse repo route.
China, India, Brazil and Russia are powering ahead, the Organisation for Economic Cooperation and Development (OECD) said on Wednesday, 26 May 2010, revising upwards its growth outlook for all four largest emerging economies. The OECD revised India's GDP growth forecast for 2010 to 8.2% from its earlier estimate of 7.3%. It also raised the growth forecast for 2011 to 8.5% from its earlier estimate of 7.6%. The OECD also said that underlying inflationary pressures are likely to persist given the strong outlook for demand.
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.
Prime Minister Manmohan Singh early this week said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. 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).
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.
The monsoon rains are likely to hit the country's southern coast in three to four days, the India Meteorological Department said in its latest forecast on Thursday. Conditions are becoming favourable for onset of southwest monsoon over Kerala during next 3-4 days, the weather office said.
The weather office had said late last week that rains were 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. 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 fourth quarter corporate results have been decent. The combined net profit of a total of 2,635 companies rose 13.60% to Rs 71372 crore on 25.40% rise in sales to Rs 733414 crore in the quarter ended March 2010 over the quarter ended March 2009.
Bulls were back with a bang as the key benchmark indices surged for the second straight day on Thursday, 27 May 2010, on firm global stocks after China signaled support for the euro zone. Volatility was high as derivative contracts for the May 2010 series expired on Thursday, 27 May 2010. The BSE 30-share Sensex rose 278.56 points or 1.76% to 16,666.40 and the S&P CNX Nifty jumped 85.70 points or 1.74% to 5,003.10.
As per the provisional data from the stock exchanges, foreign institutional investors (FIIs) sold stocks worth a net Rs 533.07 crore while domestic funds bought equities worth a net Rs 410.44 crore on 27 May 2010.
Daily News Roundup - May 28 2010
TCS, Wipro, TechM, IBM, NEC shortlisted for UID project. (BS)
Infosys looking at acquisition of the size US$500mn. (BL)
NTPC-BHEL venture is mulling technology tie-up with global companies. (BL)
Tata Steel to increase stake in Canada mining firm, New Millennium Capital Corp. (BS)
The Government may give preference in gas allotment to power projects of the ADAG Group if RIL picks up equity stakes in them. (ET)
GM has snapped its partnership with Reva and will roll out electric cars on its own after it was acquired by M&M. (ET)
Promoters of Tata Steel may invest Rs1.33bn, a move that would increase the promoters holding by 3% to 38%. (ET)
M&M is close to buying drip irrigation company Parixit Industries. (ET)
Bharti starts fund raising for Zain. (BS)
Private equity player Actis to buy into GVK’s power business. (BS)
Essar Group planning to set-up own port in Africa. (BS)
Renuka Sugar’s acquisition of 51% in Equipav on the verge of turning bitter. (BS)
Dish TV starts high definition service. (BS)
Bata to replace small stores with large ones. (BL)
The annual monsoon on track to hit the southern coast in the next three to four days. (BS)
Banks ask RBI to defer liquidity tightening. (BL)
LIC can’t charge fee for transfer of policy, as per the high court judgment. (ET)
RBI gives thumbs up to SLR cut, in a move to create headroom for Rs20bn liquidity. (FE)
Fantastic Friday!
Counting the cost and paying the price aren't things to think about any more. All that matters is value - James Hilton.
The hungry bulls will look at lapping up whatever comes their way. Value and rationale could take a backseat. The scary rollercoaster ride of the previous few sessions will take a break, as risk aversion has subsided somewhat after China dismissed a report saying it was mulling paring its holding of European bonds. This helped spark a world-wide rally in equities and commodities. The euro too rebounded while gold dipped and the VIX – Wall Street’s fear gauge – dropped below 30 after surging past 44 not too long ago.
After long, we have a bright morning to start with as we stare at a gap-up opening and hopefully another day of solid gains. Asian markets are upbeat following the overnight bounce in the US as well as European markets. Still, it would be foolhardy to take the recent pull-back in stocks as a decisive turnaround and start buying aggressively. The problems in Europe and other advanced economies have not vanished. So, one expects the volatility to persist for some time to come owing to uncertainty about the global picture.
What we are witnessing lately is more of a relief rally from the lows hit in the current intermediate downtrend. This advance has to sustain for a while to restore investor confidence. Also, FIIs - who have been net sellers for quite some time - have to resume their buying spree. Even prior to the current falls, the Indian market had struggled to break out of a range. We have to see whether this time is different and the key indices will head higher after dust settles on the euro-zone debt crisis.
For India the prospects appear really good. The next big trigger will come from monsoon and hopefully raingods will be kind this year. The Government will announce GDP figures for the January-March quarter as well as for the full year on Monday. Reports suggest a sharp bounce back from the same period last year. Consensus estimates are pointing to 8-8.5% kind of a number for Q4. For the whole year, the GDP may just beat the official forecast of 7.2%.
One has to keep a close watch on how the monsoon begins and progresses in the weeks and months ahead. Last year was pretty bad for the agriculture sector. So, naturally everybody is keeping its fingers crossed and is praying for a normal monsoon season.
Among the stocks, Areva T&D could be in focus on the announcement of an open offer by its parent. SCI will be another stock that could rally on speculation of disinvestment and a bonus as well. Apollo Hospitals and Emami boards will discuss a stock split today.
Indian markets ended near day’s high on Thursday as bears ran for cover during the last hour of trade owing to a strong bull charge. Intense short covering was seen in the NSE Nifty, which not only sustained above the crucial 4950 level but also closed above 5000. With this, the main indices have now recovered heavy losses suffered in Tuesday’s session. Today’s rebound was led by strength in Banking, Auto and Oil & Gas stocks, which lifted the Nifty above its 200-day DMA of 4999.
"Sentiment across the world got a fillip after the Chinese government dismissed reports that it was considering paring down its holdings of eurozone bonds", says Amar Ambani, Vice President Research IIFL. The State Administration of Foreign Exchange (SAFE) said that China will not change the direction of its diversification strategy. The euro rallied and US stock futures surged on China’s reassurance that it was not selling euro-denominated debt.
Finally, the BSE 30-share Sensex surged 279 points at 16,666 and NSE Nifty advanced 86 points at 5,003.
Markets in Asia ended in the green; the Nikkei in Japan advanced by 1.3%, Australia's S&P/ASX gained by 1.7%, while the Hang Seng index in Hong Kong rose 1.2% and Shanghai SE Composite gained 1.5%.
European indices were trading in the green as well, the DAX in Germany was up 2.3%, the CAC 40 index in France was up 2.4% and the FTSE in the UK was up 2%.
All the BSE sectoral indices ended in the green, BSE Banking index was the top gainer, the index was up 2.5%, followed by BSE Auto index was up 2.1% and BSE Oil & Gas index was up 2%. Even the BSE Mid-Cap index ended higher by 1% and the Small-Cap index gained 0.8%.
Outside the frontline indices, the big gainers in the broader market were Areva T&D, REI Agro, Apollo Hosp, Fortis Health and LITL. On the other hand, losers included Adani Ent, Max India, Piramal Health and Koutons.
FIIs net buyers Rs 609cr in F&O on Thursday
The Foreign Institutional Investors (FIIs) were net buyers of Rs 609.46 crore in futures and options segments on Thursday.
According to the data released by the NSE, FIIs were buyers of index futures to the tune of Rs 831.88 crore while sold index options worth Rs 288.69 crore. They were net buyers of stock futures to the tune of Rs 193.38 crore while sold stock options worth Rs 127.11 crore.
Precious metals shed gains
Prices drop for first time in four days
After three sessions of rise, precious metals ended lower on Thursday, 27 May 2010 at Comex. Prices fell despite a weak dollar. Gold prices struggled to retain its gains and inched lower finally. Prices fell as tension once again inched up regarding eurozone's problems.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Thursday, gold for August delivery ended at $1,214.4 an ounce, lower by $0.90 (0.1%) an ounce on the New York Mercantile Exchange. Gold had closed above $1,200 for first time in a week yesterday. Gold for June delivery had settled above $1,200 in early December, only to pull back to $1,172 area and dip as much as the $1,050 vicinity in early February.
Last week, gold ended lower by 4.2%. This month, till date gold is trading higher by 2.9%. For the month of April, gold ended higher by 6%. For the first quarter of this year, gold rose by 1.7%, its sixth quarterly rise. On a year to date basis, gold is higher by 10.4%.
On Thursday, July Comex silver futures ended lower by 16 cents (0.8%) at $18.46 an ounce. Last week, silver ended lower by 8.1%. For the month of April, silver ended higher by 4.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 7.8%.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against a basket of six other currencies fell by 1%.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.
At the MCX, gold prices for June delivery closed lower by Rs 154 (0.83%) at Rs 18,388 per ten grams. Prices rose to a high of Rs 18,537 per 10 grams and fell to a low of Rs 18,361 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 28 (0.09%) higher at Rs 29,308/Kg. Prices opened at Rs 29,350/kg and rose to a high of Rs 29,461/Kg during the day's trading.
ZF Steering
Investors with a short term trading perspective can consider buying the stock of ZF Steering. This stock is in an extended sideways moving consolidation pattern in the range between Rs 290 and Rs 220 since January this year. The zone around Rs 240 was a strong support for this stock in this period. It reversed higher from here in January and March this year. The stock once again rebounded from this zone on Wednesday accompanied by strong volumes. A bullish engulfing candle is also apparent in the daily candlestick chart. The key short-term support for this stock also occurs at Rs 242 that is 61.8 per cent retracement of the prior up-move.
Oscillator charts in the short-term time frame are signalling reversal of the downtrend that began in the last week of April. 14-day relative strength index is moving up from oversold zone. There is a likelihood of the stock moving higher. Investors can buy the stock for short-term gains with the stop loss at Rs 248. Short-term targets for the stock are Rs 261 and Rs 266.
via BL
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