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Friday, July 06, 2007
Sensex hits 15000 mark
The market sent jitters amongst the investors in early trades, as the Sensex opened at 14843, lost ground on sustained selling to slip below the 14830 mark and touched the day's low of 14826. However, renewed buying ensured the Sensex remained in positive territory thereafter. The strong buying in IT and CG stocks lifted the Sensex above the 15000 mark to an intra-day high of 15007. The Sensex finally ended the session with gains of 0.69% and was up 102 points at 14964, while the Nifty advanced 0.71% and was up 31 points at 4385.
The breadth of the market was overwhelmingly positive. Of the 2,662 stocks traded on the BSE 1,476 stocks advanced, 1,104 stocks declined and 82 stocks ended unchanged. All the sectoral indices closed higher except Metal, HC, Bankex and CD stocks. The BSE IT index rose 3.31% at 4950 followed by the BSE Teck index (up 2.47% at 3814), the BSE CG index (up 1.25% at 12776), and the BSE IT index (up 0.44% at 4903).
Only nine blue chips failed to attract buying support while 21 Sensex stocks finished with gains. On the back of strong buying Satyam soared 5.40% at Rs489. TCS jumped by 4.44% at Rs1159, Wipro surged 3.02% at Rs519, Infosys added 2.85% at Rs1971, HDFC Bank advanced 2.10% at Rs1153, ACC moved up by 1.85% at Rs1041, NTPC rose 1.70% at Rs155, L&T scaled up 1.67% at Rs2370 and Gujarat Ambuja was up 1.67% at Rs131. Other heavyweights also gained 0.50-1% each. However, ICICI Bank shed 2.37% at Rs982 while Cipla ended marginally lower at Rs212, down 1.87%.
Among the IT stocks Silverline Technologies surged 9.94% at Rs13.60, HOV Services spurted 9.76% at Rs225, Helios jumped 9.26% at Rs158, Asia CERC added 6.21% at Rs196 and Zenith Info gained 5.00% at Rs566. In the tech pack Tech Mahindra vaulted 4.82% at Rs1464, TCS soared 4.44% at Rs1159, Zee Enterprises zoomed 3.84% at Rs311, Balaji Tele advanced 3.74% at Rs231 and Wipro gained 3.02% at Rs519.
Over 55.21 lakh DLF shares changed hands on the BSE followed by RPL (39.02 lakh shares), Cairn India (33.06 lakh shares), ICICI Bank (32.52 lakh shares) and IDBI (25.83 lakh shares).
ICICI Bank registered a turnover of Rs319 crore on the BSE followed by DLF (Rs318 crore), Reliance Communication (Rs143 crore), Reliance Industries (Rs131 crore) and SBI (Rs98.58 crore)
Sensex spurts 96 points
It was a historical day for the markets, with the barometer index BSE Sensex hitting the 15000 level. Except for the small hiccup in early trade, the market headed higher with the passage of time as buying momentum refused to die down. IT shares dominated the market throughout the day, ahead of their results. A fall in rupee aided the rally in IT scrips. Buying was also seen in cement stocks, while banking shares saw profit booking.
The benchmark 30-shares BSE Sensex was up 95.75 points to 14,957.64 as per provisional closing. It struck a record high of 15,007.22 at 13:21 IST. It had opened at 14,843.43 and slipped to a low of 14,826.56 at 10:07 IST, which was a fall of 35 points for the day. It oscillated in a range of 180 points for the day.
The S&P CNX Nifty also struck an all time high of 4,411 in late-afternoon trade, and settled 29.35 points higher at 4383.30, as per provisional close.
It has taken seven months for the Sensex to move from 14,000 to 15,000. The index had first hit 14,000 on 5 December 2006. In contrast, it had taken just 26 trading sessions for the Sensex to reach the 14,000 level after it had hit the 13,000-mark on 30 October 2006.
It took about 17 months for the Sensex to move from the 10,000 level to 15,000. The barometer index had first struck 10,000 mark on 6 February 2006.
On BSE, a deal took place in State Bank of India (SBI) at Rs 1,760 at 13:03 IST. It is also all time high for the stock. This is way above the ruling market price of Rs 1,570. And the quantity executed at that price was not minuscule: 16,762 shares changed hands in the stock at the price. The SBI stock settled 0.14% higher at Rs 1549, on 6.32 lakh shares.
India's wholesale price index rose 4.13% in the 12 months to 23 June 2007, higher than the previous week's increase of 4.03% due to a rise in some food and mineral prices, government data released noon today, 6 July 2007, showed.
The total turnover on BSE amounted to Rs 5,850 crore compared with a turnover of Rs 5,329 crore at about 14:30 IST.
The market breadth was strong, with small-cap and mid-cap shares also participating in the rally: 1,490 shares rose on BSE as against 1,176 that declined, while 86 were unchanged.
Among the Sensex pack, 25 advanced while the rest declined.
IT pivotals dominated gainers, with 4 from the top 5 Sensex gainers being IT stocks. They advanced on fresh buying after the Indian rupee today, Friday, 6 July 2007, turned weak and was quoted at 40.47/48 against the US currency due to suspected intervention by the central bank and dollar buying by oil refinery companies.
Satyam Computers galloped 4.60% to Rs 485.50 on 12.53 lakh shares and was the top gainer from the Sensex pack.
Infosys Technologies (up 3% to Rs 1974), TCS (up 4.17% to Rs 1156), and Wipro (up 2.95% to Rs 519), were other gainers from IT sector.
Wipro signed definitive agreements to acquire 100% shareholding in Unza Holdings (Unza), a Singapore-based fast moving consumer goods (FMCG) company, for an all-cash consideration of Rs 1010.20 crore (approximately $246 million). It recorded revenue of Rs 683.30 crore with double-digit operating margin for fiscal year ending on 30 April 2007. Transaction is expected to be closed by end July 2007. The company made this announcement after market hours on 6 July 2007
Shares from cement pack advanced today, Friday, 6 July 2007, after declining on Thursday 5 July 2007. They had surged recently on reports that cement firms have hiked prices by Rs 3-Rs 5 per 50-kilogram bag across India effective from 4 July 2007.
Ambuja Cements (up 1.86% to Rs 131.50), ACC (up 2.28% to Rs 1045), Birla Corporation (up 3.56% to Rs 284) and India Cements (up 3% to Rs 219.80) edged up from the cement sector.
Engineering and construction major L&T advanced 1.71% to Rs 2,371, after striking an all-time high of Rs 2,385.90. L&T will float five new companies to ensure better corporate governance as well as attracting talent. The companies will operate in L&T’s new business areas of power projects, boilers, turbines, water and shipbuilding.
Private sector banking major ICICI Bank was week throughout the day’s trading session. It was the top loser from the Sensex pack. The stock lost 2.70% to Rs 978.25 on 32.47 lakh shares. The 5.81-crore shares of ICICI Bank offered in its follow on public offer (FPO) that was completed last month, were listed on the bourses today. The company had priced its FPO at Rs 940 per share. Retail investors were offered the shares at a discount of Rs 50, i.e., at Rs 890 per share.
The issue was subscribed 11.5 times, with the qualified institutional buyers category bid 21.6 times. The issue was open from 19 June 2007 to 22 June 2007.
HDFC (down 1.74% to Rs 1916), Maruti Udyog (down 1.27% to Rs 795) and Cipla (down 1.50% to Rs 213) were the other losers.
Index heavyweight Reliance Industries (RIL) was up 0.27% to Rs 1,712.55, on 7.59 lakh shares. It moved in range of Rs 1703 – 1733.
Real-estate major DLF rose 0.17% Rs 571, on high volumes of 55.15 lakh shares. The stock had settled at Rs 570.05 on Thursday, 5 July 2007, at a premium of 8.57% over the IPO price of Rs 525.
Mahindra & Mahindra surged 2.83% to Rs 791 on renewed buying ahead of its entry into the BSE Sensex from Monday, 9 July 2007. In the market barometer index, the tractor & utility vehicle maker will replace two-wheeler maker Hero Honda. Hero Honda also rose 1.52% to Rs 699.85.
Most Asian markets rebounded from early fall. Shanghai Composite surged after initial fall. It surged 4.58% at 3,781.34. Hang Seng (up 1.25% to 22,531.74), Seoul Composite (up 0.72% to 1,861.01), Taiwan Weighted (up 0.43% to 9,188.31) and Straits Times (up 0.29% to 3,561.96), edged higher.
Majority of European indices were trading with gains.
US stocks closed mixed in post-holiday trading on Thursday, 5 July 2007, as a rebound in bond yields stifled Wall Street's excitement about new buyout activity and strength in the US service sector. The Dow fell 11.46 points, or 0.08%, to 13,565.84. The Standard & Poor's 500 index rose 0.53 points, or 0.03%, to 1,525.40, while the Nasdaq Composite index rose 11.70 points, or 0.44%, to 2,656.65.
Sensex Journey - 1000 to 15000
1000, July 25, 1990
On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results.
2000, January 15, 1992
On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh.
3000, February 29, 1992
On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly Budget announced by the then Finance Minister, Dr Manmohan Singh.
4000, March 30, 1992
On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.
5000, October 8, 1999
On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.
6000, February 11, 2000
On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.
7000, June 20, 2005
On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL , Reliance Energy, Reliance Capital and IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first time.
8000, September 8, 2005
On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.
9000, November 28, 2005
The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.
10,000, February 6, 2006
The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006.
11,000, March 21, 2006
The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.
12,000, April 20, 2006
The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time.
13,000, October 30, 2006
The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.
14,000, December 5, 2006
The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.
15,000, July 6, 2007
The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.
India's 10 largest initial public offerings
Company Size(billion rupees) Year
DLF Ltd. 91.88 2007
Cairn India Ltd. 57.88 2006
Tata Consultancy Services 54.20 2004
NTPC Ltd. 53.68 2004
Reliance Petroleum Ltd. 27.00 2006
Idea Cellular Ltd. 24.43 2007
Reliance Petroleum Ltd. (merged with Reliance Industries) 21.72 1993
Jet Airways (India) Ltd. 18.99 2005
Essar Oil Ltd. 16.39 1995
Suzlon Energy Ltd. 14.96 2005
Sensex hits 15,000
The benchmark BSE 30-share Sensex pierced the psychologically important 15,000 level at about 13:20 IST today, 6 July 2007.
At 13:29 IST, the Sensex was up 101 points to 14,963. It struck a record high of 15,007.22 at 13:21 IST
It has taken seven months for the Sensex to move from 14,000 to 15,000. The index had first hit 14,000 on 5 December 2006. In contrast, it had taken just 26 trading sessions for the Sensex to reach the 14,000 level after it had hit the 13,000-mark on 30 October 2006.
On BSE, a deal took place in State Bank of India (SBI) at Rs 1,760. This is way above the ruling market price of Rs 1,570. And the quantity executed at that price was not minuscule: 16,762 shares changed hands in the stock at the price.
The deal partly helped the Sensex to achieve the 15,000 level, though the deal alone did not play a role as most of the Sensex constituents were firm today. Twenty-five of the 30 Sensex stocks were in the positive zone. Further, most of the sectoral and niche indices on BSE were in the green.
India's wholesale price index rose 4.13% in the 12 months to 23 June 2007, higher than the previous week's increase of 4.03% due to a rise in some food and mineral prices, government data released noon today, 6 July 2007, showed.
Two of the three major European markets --- London and France ---were in the green, whereas the German market edged lower.
Asian markets had recouped early losses and most were trading in the positive zone. Key benchmark indices in Hong Kong, Singapore, South Koera and Taiwan were up by between 0.2% to 1%.
BSE clocked a turnover of Rs 3,444 crore compared with a turnover of Rs 2,547 crore at about 12:30 IST.
Buying was conspicuous in IT and telecom stocks. Satyam Computer rose 3.4% to Rs 480, TCS 2.8% to Rs 1141, Wipro 1.8% to Rs 513.50, and Infosys 1.7% to Rs 1949.
Among telecom stocks, Bharti Airtel rose 2% to Rs 871 and Reliance Communications 1.9% to Rs 555.75.
The market breadth was strong: 1,678 shares rose on BSE as against 891 that declined, while 86 were unchanged.
Sensex hits 15,000
The Sensex has crossed another landmark of 15,000, in mid-noon trades today.
The Sensex after a flat start, gained momentum in late morning deals on the back of renewed buying interest in technology stocks ahead of the earnings season.
Reliance Communications and TCS have rallied 2.5% each to Rs 559 and Rs 1,137, respectively.
Reliance Energy and Satyam have surged over 2% each to Rs 605 and Rs 474, respectively.
CLSA - Indiabulls Realestate
CLSA in their report on Indiabulls Real Estate (IBREL), say that it is one of the most aggressive growth stories in the Indian real estate sector. They believe that the company entered the real estate space in 2005 and now boasts of 4,000+ acres of landbank spread across Western, Northern and Southern part of the country. They feel that with US$360m raised through GDR closed on July 3 rd, the company can expand business operations further. The company's first two projects will be concluded in 2008 and SEZ opportunity can provide a big upside to the existing NAV of Rs584/share.
SSKI - Reliance Capital
Reliance Capital (RCL) has arrived with a bang! Number 1 in the domestic asset management business, around 4x growth in market share in both life and general insurance in 18 months and a 1% share in broking business in three months assert the efficacy of the Reliance brand and its aggression. RCL offers the best vehicle to play India's fast expanding non-bank financial services market. The recipe for success is there.....strong capitalization with backing of a USD 38bn group, a plan to build one of India's finest distribution platforms and a sponsor with ability to swing deals at enviable valuations make RCL one of the best bets in the space. Though the stock has returned 72% in the past six months, the price does not discount RCL's blazing growth and its emergence as a formidable force. We believe the party has just begun; initiating coverage with an 18-month price target of Rs1,929.
Fingers in every growing pie: Insurance, asset management, broking and wealth management are the key high-growth sectors riding India's amazing demographic changes. RCL has made its mark in all the segments in a short period of time. RCL has an aggressive management team with relevant sector experience and proven track record to methodically execute its growth plan.
Building blocks in place: RCL has got the two key ingredients for success in the space; capital and distribution. A net worth of Rs53bn as also its pedigree (part of the ADA Group, India's fourth largest business house by market capitalization) impart significant leverage to RCL. Recognizing the importance of a vast distribution reach for the business, RCL is aptly ramping up its footprint across businesses. In the next 3-4 years, we see RCL having one of the largest networks of customer touch points.
The whole cake is mine: RCL owns 100% economic interest in its businesses, which would enable it to capture their full value. The sponsors have chosen to utilize the expertise within the country and consciously avoid partnerships with global majors (which have extracted disproportionate value from other local insurance players). We have valued RCL on sum-of-parts (FY10) basis as we believe the key businesses - life insurance and general insurance - will continue to outgrow private sector peers over the period. Our 18-month price target of Rs1,929 per share offers 70% upside.
HDFC Sec - Balaji Telefilms
HDFC Securities report on Balaji Telefilms:
Balaji Telefilms, BTL is India’s largest TV content producer. It clocked ~1800 programming hours during FY07. It has a presence on all major General Entertainment Channels (GEC) in the country and offers content in Hindi, Tamil, Kannada, Malayalam, and Telugu. With strong quality content, BTL is the best play in the domestic content production story.
BTL formed a 51:49 JV with Star TV in FY07. This JV will launch regional GEC channels in south Indian markets of TN, Karnataka, AP and Kerala. We expect ~1150 programming hours from this JV during FY09E, resulting in revenues of Rs 196 million for BTL.
We expect BTL to post a CAGR of 20% in revenues between FY07-09E and 19% in earnings. With the company reducing its exposure in sponsored programming (low margin), its JV with Star TV for regional programs and venture into international markets such as the Middle East, Sri Lanka and Indonesia, makes us believe the prospects of BTL are positive. At the CMP of Rs 223, the stock trades at a PER of 15x and 13x our FY08E and FY09E EPS estimates of Rs 15.26 and Rs.17.18. We have a price target of Rs 275. At our target price, the stock would trade at a PER of 16x our FY09E estimates. We initiate coverage with a “BUY” rating.
PSEC - Ashok Leyland
P-Sec report on Ashok Leyland:
Ashok Leyland reported flattish volume growth of 1.6% y-o-y on account of degrowth in domestic MDV goods segment of 24% y-o-y. MDV passenger goods segment grew by 318% y-o-y on account of low base during last year in June’06. The volume growth has been above our expectations. Ashok Leyland has recently entered in JV with Alteams Group of Finland to manufacture High Pressure Die Casting aluminium products in automotive and telecom sector. This venture will enable ALL to diversify and de -risk its product portfolio in long run; the company is already present in foundaries through Ennore foundaries. The stock trades at 9x its FY09P earnings. We recommend Accumulate.
ICICI Bank FPO Listing
Only the fully paid up shares listed today. Partly paid shares aren't listed yet and might get listed very soon. Hold on tight !
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