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Thursday, July 31, 2008
Market extends gains
The key benchmark indices extended yesterday (30 July 2008)’s sharp gains ending marginally higher amidst volatility as futures & options contracts for July 2008 series expired today. However, the market breadth turned negative from earlier strong breadth. Crude oil surged by more than $4 a barrel yesterday, 30 July 2008. Tata Power Company and Tata Steel rose close to 4%.
Banking shares were mixed ahead of the inflation data for 12 months to 19 July 2008 to be released after trading hours today, 31 July 2008. Metal stocks gained. Healthcare and IT stocks fell.
The 30-share BSE Sensex rose 68.54 points or 0.48% at 14,355.75. At the day’s low of 14,161.76, the Sensex lost 125.45 points in afternoon trade. Sensex hit a high of 14,369.59 in late trade. At the day's high, the Sensex rose 82.38 points.
The broader based S&P CNX Nifty was up 19.40 points or 0.45% to 4,332.95. Nifty August 2008 futures were at 4337, at a premium of 4.05 points as compared to spot closing of 4332.95.
The BSE clocked the turnover of Rs 5,047 crore as compared to Rs 5,353.99 crore on 30 July 2008. NSE's futures & options (F&O) segment turnover was Rs 64,640.25 crore, which was higher than Rs 58,543.91 crore on Wednesday, 30 July 2008.
The barometer index BSE Sensex is down 5,931.24 points or 29.23% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,851.02 points or 32.3% away from its all-time high of 21,206.77 struck on 10 January 2008.
The market breadth turned negative from earlier strong breadth with 1,296 shares advancing as compared to 1,326 that declined on BSE. 75 remained unchanged.
Among the 30-member Sensex pack, 16 gained while the rest declined.
The BSE Mid-Cap index fell 0.24% to 5,567.37 and BSE Small-Cap index declined 0.21% to 6,912.79. Both these indices underperformed Sensex.
BSE Metal index (up 1.68% to 12,912.61), BSE Oil & Gas (up 1.27% to 9,729.48), BSE Power index (up 0.78% to 2,574.27), BSE Realty index (up 0.74% to 5,079.01), BSE Consumer Durables index (up 0.73% to 3,685.84), BSE Capital Goods index (up 0.48% to 11,683.80) outperformed Sensex.
BSE HealthCare (down 1.09% to 4,162.03), BSE Teck index (down 0.99% to 3,000.41), BSE IT index (down 0.87% to 3,689.57), BSE Bankex (down 0.1% to 6,516.41), BSE Auto index (up 0.18% to 3,679.51), BSE FMCG index (up 0.28% to 2,139.18), BSE PSU index (up 0.44% to 6,706.14), underperformed Sensex.
As per the provisional figures on BSE, foreign institutional investors (FII)'s bought shares worth Rs 494.87 crore and domestic funds bought shares worth Rs 320.57 crore today, 31 July 2008.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.99% to Rs 2,206.20.
IT stocks fell. Infosys (down 1.2% to Rs 1,583.30), Tata Consultancy Services (down 0.72% to Rs 832.55) and Wipro (down 1.53% to Rs 416) edged lower. India’s third largest IT exporter by sales Satyam Computer Services was flat at Rs 380.30.
Healthcare stocks fell. Cipla (down 0.61% to Rs 218.70), Dr Reddy’s Laboratories (down 2.78% to Rs 569.20), Wochardt (down 2.48% to Rs 186.85) edged lower. India’s largest drugmaker by sales Ranbaxy rose 1.29% to Rs 439.10.
Metal stocks rose. Hindalco Industries (up 0.68% to Rs 141.10), Steel Authority of India (up 3.42% to Rs 140.70), Sterlite Industries (up 1.5% to Rs 631.80) and Tata Steel (up 3.95% to Rs 654.95) edged higher.
Banking shares were mixed ahead of the weekly inflation data, to be released after market hours today, 31 July 2008. India’s largest private sector bank by net profit ICICI Bank declined 0.07% to Rs 634.85. India’s largest commercial bank State Bank of India rose 2.03% to Rs 1,414.75.
HDFC Bank, India's second largest private sector bank in terms of operating income, rose 0.25% to Rs 1,095.25.
Grasim Industries (down 2.78% to Rs 1,800.45), Bharti Airtel (down 2.46% to Rs 790), Maruti Suzuki India (down 2.36% to Rs 574.90), edged lower from Sensex pack.
Tata Power Company (up 4% to Rs 1,160.10), DLF (up 3.79% to Rs 509.30), Mahindra & Mahindra (up 1.37% to Rs 520.55), NTPC (up 0.79% to Rs 172.25), Ranbaxy Laboratories (up 1.29% to Rs 499.10), edged higher from Sensex pack.
Tata Motors, the country’s top truck manufacturer in terms of sales lost 3.13% to Rs 403.25 after the company reported 30.10% fall in net profit to Rs 326.11 crore on 14.40% rise in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007. The company announced the results during trading hours yeserday, 30 July 2008, when the stock had risen 4.91% to Rs 416.30.
India’s largest cigarette maker in terms of sales ITC was flat at Rs 187.80. After market hours yesterday, 30 July 2008, the company reported 4% drop in net profit at Rs 748.67 crore on 18% growth in net turnover to Rs 3,900 crore in Q1 June 2008 over Q1 June 2007. The drop in net profit was attributed to the increase in excise duties on non-filter cigarettes in the Union Budget 2008, steep rise in commodity prices and store rentals.
Reliance Natural Resources clocked the highest volume of 3.72 crore shares on BSE. Birla Cotsyn (1.79 crore shares), Iapat Industries (1.3 crore shares), Kashyap Technologies (88.35 lakh shares) and Chambal Fertilisers and Chemicals (83.17 lakh shares) were the other volume toppers in that order.
Reliance Natural Resources clocked the hoghest turnover of Rs 370.34 crore on BSE. Reliance Capital (Rs 344.41 crore), Reliance Industries (Rs 182.77 crore), Tata Steel (Rs 163.03 crore) and SEL Manufacturing (Rs 151.18 crore) were the other turnover toppers in that order.
On the New York Mercantile Exchange, September 2008 crude surged $4.58, or 3.75%, to $126.77 a barrel yesterday, 30 July 2008 after data showed a surprise drawdown in gasoline stocks last week.
US markets surged yesterday, 30 July 2008 after encouraging jobs data and the central bank's attempts at boosting liquidity in the financial markets offset a surge in oil prices. The Dow Jones jumped 186.13 points, or 1.63%, to 11,583.69. The Standard & Poor's 500 index rose 21.06 points, or 1.67%, to 1,284.26, and the Nasdaq Composite index advanced 10.10 points, or 0.44%, to 2,329.72.
European markets which opened after Indian market were positive. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were down by between 0.64% to 1.11%.
Asian markets were trading mixed today, 31 July 2008. Key benchmark indices in China and Taiwan were down by between 0.65% and 1.25%. However, indices in Hong Kong, Japan Singapore and South Korea were up by between 0.07% and 1.08%.
Back home, rally in global equities and fall in oil prices aided a rebound on the domestic bourses yesterday, 30 July 2008. The 30-share BSE Sensex jumped 495.67 points or 3.59% at 14,287.21 and the broader based S&P CNX Nifty jumped 123.70 points or 2.95% at 4,313.55, on that day.
Morning Call - July 31 2008
Market Grape Wine :
In House :
Nifty at a support at 4260 4190 with resistance at 4322 4378 levels.
Cash: Buy ABB above 794 target 845 with S/L 770
Cash: Buy CIPLA above 222 target 234 with S/L 217
Future: Sell Zee Below 208 target 195 with S/L 216
Future: Buy RPOWER above 160 targets 170 with S /L 156.
Out House:
Markets at a support of 14014 & 13898 levels with resistance at 14341 & 14441 levels .
F&O Expiry today : Markets o be very choppy and volatile maintain strict stop loss .
Buy : INFY & Satyam
Buy : Adalbs
Buy : SesaGoa
Buy : RelInfra & Relcap
Buy : LNT
Buy : IBulls & IBullInfra
Buy : SBIN
Buy : Aftekinfo
Buy : Core project
Dark Horse : Sesa Goa , IBulls , RIL , Wipro , Adalbs , SBIN , LNT , Core & INFY
Grey Market - Nu Tek India, Vishal Information Technolgoies
Vishal Information Technologies 140 to 150 4 to 6
NU TEK India Ltd. 170 to 192 14 to 16
Pre Session Commentary - July 31 2008
The Indian Market is expected to have positive opening as US markets closed with gains and Asian markets are trading mixed. On Wednesday, the Indian market closed heavy gains due to strong buying over the counters led by favorable global cues global cues and steep drop in crude oil price. The domestic market opened sharply higher tracking strong cues from the global markets. Further, market traded sharply higher without any sign of weakness and continued to gain ground through out of the trading session. NSE Nifty gained around 3% and ended above 4,300 mark and BSE Sensex closed with gains of more than 3% and ended above 14,200 level. All indices except FMCG closed in green. Out of which, Bank and Reality indices rallied to close with a gain of more than 5%. Along with this, the Metal, Capital Goods, Oil & Gas, IT and Power stocks also witnessed sustained buying from these baskets. The BSE Sensex closed higher by 495.67 points at 14,287.21 and NSE Nifty ended up by 127.35 points at 4,317.20. We expect that market may remain volatile during the trading session ahead of F&O expiry day and inflation number for the week ended 19th July 2008, which has to come out today evening.
On Wednesday, the US market was closed with gains influenced by the latest ADP employment report that showed an unexpected 9,000 increase in July private non-farm jobs. A news about Fed’s extension of the length of its Term Securities Lending Facility program also added positive sentiment. These entire positive cues off sets the surge in crude. Crude advanced $4.58 to settle at $126.77 a barrel on the NYMEX.
The Dow Jones Industrial Average (DJIA) closed higher by 186.13 points at 11,583.69 along with S&P 500 index ended up by 21.06 points at 1,284.26 and NASDAQ closed higher by 10.10 points at 2,329.72.
Indian ADRs ended mixed. In technology sector, Patni Computers ended lower by (4.93%) along with Infosys by (0.69%) and Satyam by (0.40%) while Patni Computers remained unchanged. In banking sector, HDFC bank and ICICI bank dropped (2.03%) and (1.45%) respectively. In telecommunication sector, Tata Communication ended up by (3.49%) along with MTNL by (3.02%). Sterlite industries increased by (7.83%).
Today the major stock markets in Asia are trading mixed. Hang Seng index is trading higher by 68.19 points at 22,758.79 along with Taiwan Weighted trading up by 18.93 points at 7,089.28 while Japan’s Nikkei dropped 78.93 points at 13,288.86.
The FIIs on Wednesday stood as net seller in equity and net buyer in debt. The gross equity purchased was Rs2,312.70 Crore and the gross debt purchased was Rs159.30 Crore while the gross equity sold stood at Rs2,3645.00 Crore and gross debt sold stood at Rs33.40 Crore. Therefore, the net investment of equity reported was (Rs332.30) Crore and net debt was Rs125.90 Crore.
Today, Nifty has support at 4,227 and resistance at 4,408 and BSE Sensex has support at 13,989 and resistance at 14,627.
Market may remain nervous
Market may resume on firm note after the Sensex reported profit of around 500 points in the last session. Major hike in crude oil price, mixed asian indices and major funds resorting to selling of equities in the last session could make the investors jittery from taking any fresh position. Among the key local indices, the Nifty could decline to 4270 - 4200 on the downside while on the upside there is a near term resistance at 4350. The Sensex has a likely support at 14150 and may face resistance at 14450.
US indices ended positve on Wednesday on the back of strong financial reports, rising consumer confidence and falling oil prices. While the Dow Jones gained by 186 points to close at 11,584, the Nasdaq was up marginally by 10 points at 2330.
Major Indian ADRs, too, buckled under selling pressure on the US bourses. Patni Computer led the slump and tumbled 4.93% while Tata Motors declined 4.73%. Dr Reddy, HDFC Bank, ICICI Bank, Infosys, Satyam and Rediff lost over 0.17-2% each. However, MTNL and VSNL gained above 3%.
Crude oil prices advanced sharply after a surprise decline in the nation's gasoline stockpile, and a forecast from Goldman Sachs that said crude could hit $149 a barrel by year's end. The Nymex light crude oil for September series raising by $4.58 to close at $126.77 a barrel. In the commodity space, the Comex gold slumped $14.10 to settle at $912.30 a troy ounce.
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Bullion metals end mixed
Gold prices end considerably lower even though prices pare losses in last hours
Bullion metal prices once again dropped to its low levels in almost a month’s time today, Wednesday, 30 July, 2008. Prices fell as the dollar strengthened. Going into close, it pared some of its losses but still ended considerably lower. But silver prices rose for the day.
Comex Gold for August delivery fell $13.6 (1.5%) to close at $902.9 ounce on the New York Mercantile Exchange. It fell to a low of $895.4 during intra day trading. Last week, it ended lower by $30 (3.2%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.
This year, gold prices have gained 8.1% till date against a 8% drop for the dollar against the euro. Gold prices ended June, 2008 with a gain of 4.1%. The yellow metal ended second quarter with a marginal gain of 0.7%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, for April, prices closed lower by 6.3%.
For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.
On Monday, Comex silver futures for September delivery rose 9 cents (0.46%) to $17.465 an ounce. Silver has gained 18.7% in 2008 till date. For the second quarter, it had gained a paltry 1.4%.
Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.
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. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.
At the currency markets on Wednesday, the dollar rose earlier in the day in foreign-exchange trading after data based on a sampling of ADP payrolls indicated that July's private-sector employment rose by 9,000. Including some 20,000 government workers typically hired in a given month, the ADP index suggests U.S. nonfarm payrolls rose by about 30,000. But the dollar index which tracks the performance of the greenback against a basket of other currencies, pulled back a bit as oil prices gained more ground. The index was settled at 73.29, compared with 73.285 in the previous day.
At the crude market on Wednesday, crude-oil futures closed with a more than $4 per barrel gain finding support from the first drop in U.S. gasoline supplies in five weeks and a second-weekly decline in crude inventories. Production concerns tied to conflicts in Nigeria and rising tension in Iran also lent support. Crude for September delivery gained $4.58 to close at $126.77 a barrel on the New York Mercantile Exchange.
The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Gold and oil has climbed 34% and 60% since the past one year.
During last week of June, Federal Reserve yesterday sharpened its focus on inflation, saying that the upside risks to inflation have increased. Fed held its target for short-term interest rates steady at 2%. Since last September, Fed has axed interest rates seven times and brought it down to 2%. On the other hand, after keeping interest rates unchanged at 4% since June, 2007, ECB hiked the same to 4.25% in June, 2008.
Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for August delivery closed lower by Rs 142 (1.12%) at Rs 12,477 per 10 grams. Prices rose to a high of Rs 12,630 per 10 grams and fell to a low of Rs 12,284 per 10 grams during the day’s trading.
At the MCX, silver prices for September delivery closed Rs 174 (0.71%) higher at Rs 24,482/Kg. Prices opened at Rs 24,305/kg and rose to a high of Rs 24,560/Kg during the day’s trading.
Crude registers strong gains
Prices rise by almost $5 on inventory data
Crude prices registered sharp rise in prices today, Wednesday, 30 July, 2008. Prices rose after Energy Department’s weekly inventory report showed that last week registered first drop in gasoline inventories in almost five weeks and also showed a second weekly decline in the crude inventories.
Crude-oil futures for light sweet crude for September delivery closed at $126.77/barrel (higher by 4.54/barrel or 3.6%) on the New York Mercantile Exchange. Crude prices had registered drop in the past two days and yesterday it fell by almost $3. Last week, prices coughed up $6.5 (4.8%). It's now 14% lower than the $147.27 record high hit last on Thursday, 10 July, 2008.
EIA reported today that crude supplies fell by 100,000 barrels to 295.2 million barrels for the week ended 25 July. U.S. refinery activity was at 87.2% of capacity last week. That's up slightly from 87.1% the previous week.
EIA also reported that as for the oil products, motor gasoline supplies dropped by 3.5 million barrels to 213.6 million last week following a total climb of more than 8 million barrels between the weeks ended 27 June and 18 July. Distillate inventories, which include heating oil, were up 2.4 million at 130.5 million.
The increase in gasoline supplies came even as demand for motor gasoline stood at an average of about 9.4 million barrels per day over the past four weeks, down 2.4% from the same time a year ago.
At the currency markets on Wednesday, the dollar rose earlier in the day in foreign-exchange trading after data based on a sampling of ADP payrolls indicated that July's private-sector employment rose by 9,000. Including some 20,000 government workers typically hired in a given month, the ADP index suggests U.S. nonfarm payrolls rose by about 30,000. But the dollar index which tracks the performance of the greenback against a basket of other currencies, pulled back a bit as oil prices gained more ground. The index was settled at 73.29, compared with 73.285 in the previous day.
Crude prices gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. Prices are 62% higher than a year ago. For the year, crude is up by 32% till date.
Against this background, September reformulated gasoline rose by 12.7 cents to close at $3.1399 a gallon while September heating oil added 4.7 cents to end at $3.5458 a gallon.
Natural-gas futures finished higher ahead of tomorrow’s update on natural-gas supplies from the EIA. September natural-gas futures rose 11.8 cents to close at $9.248 per million British thermal units.
At the MCX, crude oil for August delivery closed at Rs 5,347/barrel, higher by Rs 168 (3.2%) against previous day’s close. Natural gas for August delivery closed at Rs 392.5/mmbtu, higher by Rs 1.1/mmbtu (0.3%).
Energy Department will natural gas inventory data tomorrow covering the week ended 25 July.
Wednesday, July 30, 2008
BSE Bulk Deals to Watch - July 30 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
30/7/2008 590059 BIHAR TUBES APL INFRASTRUCTURE PRIVATE LIM B 1545000 156.75
30/7/2008 590059 BIHAR TUBES RAJASHTHAN GLOBAL SECURITIES LTD S 1600000 156.75
30/7/2008 533006 BIRLA COTSYN N D NISSAR B 765355 11.03
30/7/2008 533006 BIRLA COTSYN H.J.SECURITIES PVT.LTD. B 1329331 9.90
30/7/2008 533006 BIRLA COTSYN ADARSH FINVEST PRIVATE LTD B 1090500 9.77
30/7/2008 533006 BIRLA COTSYN N D NISSAR S 765355 11.03
30/7/2008 533006 BIRLA COTSYN H.J.SECURITIES PVT.LTD. S 1329331 9.89
30/7/2008 533006 BIRLA COTSYN JATIA FINANCE LTD S 864870 9.27
30/7/2008 500078 CAMP ALLI PR SUMARU ENTERPRISES PRIVATE LTD B 55000 85.55
30/7/2008 532836 GREMAC INFRA MAVI INVESTMENT FUND LTD S 150000 88.01
30/7/2008 531084 INDOCASTLE M INDOCITY INFOTECH LTD S 52700 13.95
30/7/2008 512185 IOL NET COM JAROLI VINCOM PVT LTD B 170000 80.54
30/7/2008 530885 JAISAL SECUR VENUGOPAL REDDY S B 25000 37.49
30/7/2008 530885 JAISAL SECUR CANOS TRADING PVT LTD. S 20000 37.50
30/7/2008 500277 MIDINDI INDU ALKEN MANAGEMENT AND FINANCIAL S B 90064 2.97
30/7/2008 532606 PAREKH ALUM PIONEER NIRMAN INDIA PRIVATE L B 147559 142.38
30/7/2008 514300 PIONER EMBRO ANAND YOGESH SHARES AND CONSULTANCY PVT LTD B 68500 45.72
30/7/2008 514300 PIONER EMBRO GOPAL TRADERS S 65173 45.75
30/7/2008 500302 PIRAMA HEALT THE SWASTIK SAFE DEPOSIT B 1390000 315.00
30/7/2008 500302 PIRAMA HEALT URVI ASHOK PIRAMAL S 1390000 315.00
30/7/2008 531646 RFL INTERNAT KANAK B MEHTA B 26000 0.70
30/7/2008 500389 SILVERLINE T APEX SECURITIES B 466923 19.00
30/7/2008 500389 SILVERLINE T SHALANI DHOOP PVT LTD B 454232 19.02
30/7/2008 500389 SILVERLINE T APEX SECURITIES S 247123 18.97
30/7/2008 500389 SILVERLINE T BSMA LTD S 950000 18.82
30/7/2008 500389 SILVERLINE T SHALANI DHOOP PVT LTD S 495578 19.02
30/7/2008 504398 SJ CORP LTD RAMESH D. PATEL B 2500 446.80
30/7/2008 504398 SJ CORP LTD SURBHI DHANANJAYA DESAI S 1500 446.80
30/7/2008 504398 SJ CORP LTD DHANANJAYA SUSHILCHANDRA DESAI S 1000 446.80
30/7/2008 517224 SUJANA UNIV S V ENTERPRISES B 1046170 11.22
30/7/2008 517224 SUJANA UNIV S V ENTERPRISES S 1046170 10.90
30/7/2008 532887 SUJANATOWER LIVE STAR MARKETING PVT LTD S 220000 75.00
30/7/2008 507785 TAINWA CHE P BHAGWANDAS HASHMATRAI MELWANI S 200000 13.01
30/7/2008 524394 VIMTA LABS L QUEST PORTFOLIO SERVICES P.LTD. B 200000 47.20
30/7/2008 524394 VIMTA LABS L DHARAMSHI BROKING PVT.LTD. S 200000 47.20
30/7/2008 517498 WEBEL SL ENE S L AGARWAL B 40000 232.00
30/7/2008 517498 WEBEL SL ENE GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 40000 232.00
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