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Tuesday, October 05, 2010
Delight for D-street in July-Sept quarter
After a quite H1CY2010 (first six months of 2010), the bulls were back with a bang in July-September quarter. The domestic indices witnessed strong gains of over 13% in the quarter. The domestic indices outperformed its global peers mainly on account of continuous inflows of foreign funds. The other positive triggers back home were gross domestic product (GDP) for Q1FY2011 at 8.8% growing at a fastest pace in 2 ½ years, continuous rise in exports and strong index of industrial production data for July at 13.8%; this led foreign institutional investors (FIIs) to maintain their bullish stance on India. The Sensex and the Nifty touched new high of 20000 and 6000 levels respectively for first time since January 2008. However, the domestic markets shrugged off the rate hike by the Reserve Bank of India in its quarterly policy in July and in its mid-quarter policy review in September along with string of weak global data in the US.
BSE Bulk Deals to Watch - Oct 5 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
5/10/2010 530043 Acknit Inds DIPAK KANAYALAL SHAH B 24000 35.23
5/10/2010 530043 Acknit Inds AMIT JAIN S 20009 35.27
5/10/2010 590059 APL Apollo Tubes APL INFRASTRUCTURE PRIVATE LIMITED B 250000 156.52
NSE Bulk Deals to Watch - Oct 5 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-OCT-2010,AMDIND,AMD Industries Limited,V.K. KUMRA,BUY,115000,30.23,-
05-OCT-2010,AROGRANITE,Aro Granite Industries Li,SAR AUTO PRODUCTS LIMITED,BUY,85770,68.66,-
Sensex shuts choppy session lower
Major headlines
Microsec Financial slides after a decent debut; the stock closes 6.02% lower
JSW Energy gains on commissioning power unit; the stock ends 5.52% higher
Adani Power restructures $1 billion debt to save cost; the stock closes higher by 2.89%
Anil Dhirubhai Ambani group shares vault
The key benchmark indices ended lower in choppy trade as resistance emerged after a three-day rally, but sustained foreign fund buying helped the broader market score gains. The market seesawed as traders booked profits at higher levels while investors bought shares on declines. Shares of Anil Dhirubhai Ambani group saw across the board rally today, 5 October 2010.
Crude pares early gains
Supply concerns and strong dollar pull down prices
Crude oil prices pared early gains and ended lower on Monday, 04 October, 2010 at Nymex. Prices shed early gains as the dollar strengthened following concerns in the euro zone economy. Supply concerns also led to higher crude prices.
Latest Grey Market Premiums - Oct 5 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Career Point Infosystems | 310 (Upper Band) | 155 to 157 |
| Eros International | 175 (Upper Band) | 41 to 43 |
| Microsec Fin | 118 (Upper Band) | 18 to 22 |
| Ramky Infrastructure Ltd. | 450 | 9 to 11 |
| Orient Green Power | 47 (Lower Band) | Discount |
| Electro Steel | 11 (Upper Band) | 1.30 to 1.40 |
| Gallantt Ispat | 50 (Fixed Price) | + / - 4 to 6 |
| VA Tech Wabag | 1310 (Upper Band) | 290 to 300 |
| Cantabil Retail | 135 (Upper Band) | 3 to 5 |
| Tecpro Systems | 355 (Upper Band) | 52 to 55 |
| Ashoka Buildcon | 324 (Upper Band) | 18 to 20 |
| Sea TV Network | 100 (Upper) | 15 to 17 |
| Bedmutha Ind. | 102 (Upper) | 15 to 17 |
| Commercial Engg. | 125 to 127 | -8 to -10 (Discount) |
| Oberoi Realty | 253 to 260 | 9 to 11 |
| B.S. Trans | 257 to 266 | 6 to 8 |
| Coal India | 225 to 250 (Approx) | 15 to 16 |
Precious metals turn little dull
Prices drop as dollar regains some strength
Precious metals dropped a little from their all time highs on Monday, 04 October 2010 at Comex. Prices shed early gains as the dollar strengthened following concerns in the euro zone economy.
Market may open flat to slightly lower
The market may open steady to slightly weaker, tracking weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicate a flat opening for Nifty.
Sensex expects a cautious start
Headlines for the day:
IRDA norms could cap charges on ULIPs
Parsvnath plans to raise up to $67 million via QIP
RIL tax battle with UP holds up gas sale to NTPC, IOC
Daily News Roundup - Oct 5 2010
TCS, Infosys and Wipro have been shortlisted by insurance regulator IRDA for financial bidding to implement its enterprise resource planning (ERP) system. (ET)
Tata Motors has acquired 80% stake in Trilix Srl, an Italian design and engineering firm for Rs113mn. (ET)
Sensex skids on profit booking
The Indian markets ended near the day's low on Monday after starting off a new week on a much more stronger footing. After opening with smart gains, the key stock indices came under pressure and slipped from session highs gradually through the day. FMCG, IT and Telecom stocks were among the major losers today.
Some silver lining
Too many people miss the silver lining because they're expecting gold. - Maurice Sette.
India missed out some gold medals at the Commonwealth Games. But four Indian weightlifters brought home two silver and two bronze; not bad to begin with. The heavyweights in the indices too seem to be losing the golden touch. It looked like another splendid day for the bulls but the early morning rally fizzled out with the key indices closing nearly flat. The silver lining is that robust economic fundamentals and steady earnings growth make India a compelling case. Today’s opening is likely to be sedate at best owing to shaky global markets. The finish could be different if world markets improve.
US stocks closed lower as investors turned cautious after last month’s rally. Wall Street also chose to be on the sidelines ahead of the all-important jobs data and the start of the quarterly earnings season. Downgrades of Alcoa and Microsoft accentuated the fall. European stocks also fell while Asian indices are also mostly in red. Though the overall undercurrent remains strong, there might be some cooling after a sensational September. Any consolidation this month won’t be all that bad.
All eyes will be on the monthly US jobs data and other important economic reports. Central bank decisions are due today in Japan and Australia, while the same will be announced on Thursday in the UK and EU. The earnings season also kicks off this week - here in India and in the US.
The Nifty has strong support at around 6100-6080. On the way up, it will meet resistance at 6230-6250 before it heads north towards 6300-6350. Its all-time high stands at 6357. On daily candlestick chart, the Nifty has formed an shooting star pattern. This has to be dealt with caution as a close below 6130 is likely to confirm reversal in the short term.
Tech Mahindra could see some action amid reports that BT is planning to reduce its stake further. Patni Computer is in the news again for stake sale. SKS Microfinance may continue to be in the spotlight after its Board sacked its CEO.
Shares of Microsec Finance Ltd. will list today on the bourses.
Gitanjali Gems and other retailers of diamond jewellery could rise amid reports of strong sales. Akzo Nobel has sold its starch business to CPI's Indian subsidiary. ONGC might take a hit on reports that BP will sell stake in its Vietnam project to its affiliate first.
The FIIs were net buyers of Rs12.64bn in the cash segment on Monday (provisionally), according to the NSE web site. Local funds were net sellers of Rs7.97bn. In the F&O segment, the foreign funds were net sellers at Rs1.09bn. The foreign funds were net buyers of Rs19.64bn in the cash segment on Friday, as per the SEBI web site. Mutual Funds were net sellers at Rs187mn on the same day.
Mahindra Forgings
We recommend a buy in the stock of Mahindra Forgings from a short-term perspective. It is apparent from the charts of the stock that from its March low of Rs 35.3, the stock has been on an intermediate term uptrend. However, following a medium-term downtrend from March 2010 peak (Rs 145) to the May trough of Rs 85, the stock reversed higher. Subsequently, the stock formed a strong base at the support level Rs 100 before inching higher.
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