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Wednesday, August 13, 2008
Morning Call - Aug 13 2008
Market Grape Wine :
In House:
Nifty at a support of 4515 4450 with resistance at 4595 and 4650 levels.
Cash: Buy MIC above 133 target 140 with S/L 129.50
Cash: AMBUJA CEMENT above 89.50 target 95 with S/L 87.
Future: Sell RELCAP below 1419 target 1370 with S/L 1445
Future: Sell ADLABS below 553 target 525 with S/L 565
Out House:
Markets at a support of 15051 & 14876evels with resistance at 15451 & 15686 levels .
Markets to remain choppy and volatile maintain strict stop loss .
Buy : Aptech
Buy : Pantaloon
Buy : Coreproject
Buy : Adalbs & Centextile
Buy : GSPL & Opto
Buy : RelCap
Buy : Chambal & Nagrfert
Buy : IBreal
Buy : SBIN & IciciBank
Dark Horse : Core , OPTO , GSPL , RelCap , SBIN , RIL , Chambal , & Adlabs
Pre Session Commentary - Aug 13 2008
The Indian Market is expected to have negative opening on weak global cues as US markets closed on downbeat note and Asian markets are trading lower. On Tuesday, the Indian market closed with losses for the first time in six days on weak IIP data. Weak cues from European markets also dampened investor sentiment and pushed them to lighten their positions. The domestic market opened marginally higher tracking positive cues from the US markets and steep drop in crude oil. Market slipped soon after start to trade in negative territory and extend its losses on IIP numbers. Further it continued to lose ground till the end of session. Investors were also cautious on SEBI meet on participatory notes on 13th August 2008. NSE Nifty ended below 4,600 mark and BSE Sensex ended below 15,300 level. From the sectoral front, Metal and Bank stocks lost more than 3%. Followed by, Reality, IT, Capital Goods and Pharma stocks that also remained out of favor. However, FMCG and Oil & Gas stocks were able to gain favor from the market as most of the buying was seen from these baskets. The BSE Sensex closed lower by 291.79 points at 15,212.13 and NSE Nifty ended down by 68.25 points at 4,552.25. The BSE Mid Caps and Small Caps closed with losses of 47.15 points and 50.93 points at 5,935.53 and 7,220.42 respectively.
We expect that market may trade lower with negative bias during the trading session. Also, the SEBI meet today to review the regulatory framework governing P-notes will give further direction to the market.
June IIP numbers were down at 5.4% (YoY) as against 8.9% of the same period of previous year, but it was above the previous month''''s upwardly revised 4.1%. India''''s infrastructure sector output grew by 3.4% in June 2008 from a year earlier, slightly below 3.5% annual growth in May 2008.
NSE, on Tuesday received an in principle approval from the Securities and Exchange Board of India to initiate an exchange to trade foreign currency derivatives. NSE is planning to start a separate segment on its existing stock and derivatives bourse to trade in forex derivatives.
On Tuesday, the US market was closed lower despite further fall in crude oil prices as losses from JPMorgan Chase & Co raised more concerns about the financial sector. According to JPM, trading conditions have deteriorated, which causes losses of $1.5 billion. Light, sweet crude for September settlement dropped by $1.44 to close at $113.01 a barrel on the New York Mercantile Exchange, after touching the low of $112.31, a new three month low. Oil is now nearly $35 below its July 11 record high of $147.27.
The Dow Jones Industrial Average (DJIA) closed lower by 139.88 points at 11,642.47 along with S&P 500 index closed down by 15.73 points at 1,289.59 and NASDAQ closed at 2,430.61 lower by 9.34 points.
Indian ADRs ended down. In technology sector, Satyam ended lower by (4.46%) along with Infosys by (3.31%), Wipro by (3.17%) and Patni Computers dropped by (2.15%). In banking sector, ICICI bank and HDFC bank lost (8.24%) and (5.26%) respectively. In telecommunication sector, Tata Communication and MTNL ended down by (2.85%) and (0.95%). However, Sterlite industries increased by (2.56%).
Today the major stock markets in Asia are trading lower extending losses for second consecutive day on Wall Street''s fall overnight. Japan’s Nikkei is trading lower by 297.02 points at 13,006.58 along with Hang Seng index trading down by 199.76 points at 21,441.23, Singapore''s Straits Times slipped by 26.49 points at 2,790.33, Taiwan Weighted trading at 7,268.35 dropped by 25.45 points and Seoul Composite fell 17.08 points at 1,560.04.
The FIIs on Tuesday stood as net buyer in both equity and debt. The gross equity purchased was Rs2,958.10 Crore and the gross debt purchased was Rs359.30 Crore while the gross equity sold stood at Rs2,548.40 Crore and gross debt sold stood at Rs89.50 Crore. Therefore, the net investment of equity reported was Rs509.70 Crore and net debt was Rs269.80 Crore.
Due to sharp fall in domestic stock market, Indian rupee lost 21 paise at 42.37/38 against the US dollar. Indian currency opened lower at 42.24/26 a dollar against yesterday''s close of 42.16/17 and moved down further to close at 42.37/38 per dollar.
Today, Nifty has support at 4,412 and resistance at 4,608 and BSE Sensex has support at 14,726 and resistance at 15,492.
Market may extend fall on weak global cues
The market may extend Tuesday (12 August 2008)’s fall on weak global cues. US stocks fell on Tuesday, 12 August 2008, as bank shares tumbled on fresh worries about the economy and further losses stemming from the mortgage crisis. The Dow Jones industrial average fell 139.88 points, or 1.19%, to 11,642.47, while the Standard & Poor's 500 Index slid 15.73 points, or 1.21%, to 1,289.59. The Nasdaq Composite Index dropped 9.34 points, or 0.38%, to 2,430.61.
In Asia on Wednesday, 13 August 2008, key benchmark indices in Hong Kong, Japan, South Korea, Singapore, China and Taiwan were down by between 0.8% to 2.5%.
Oil extended its sharp decline witnessed over the past few days. US crude oil for September delivery fell $1.44 to settle at $113.01 a barrel on Tuesday, 12 August 2008, on the New York Mercantile Exchange on concerns about a slowing economy and a drop in demand.
A sharp fall in oil prices from last month’s record high above $147 a barrel has raised hopes for cooling inflation and easing of upward pressure on interest rates. From a low of 12,575.80 on 16 July 2008, the barometer index BSE Sensex rose 2,636.33 points or 20.96% to 15,212.13 on 12 August 2008, led by a sharp fall in oil price.
Profit taking pulled the barometer index down 291.79 points or 1.88% to 15,212.13 on Tuesday, 12 August 2008. As per provisional data released by the stock exchanges, foreign funds on Tuesday, 12 August 2008, sold shares worth a net Rs 687.19 crore. Domestic funds sold shares worth a net Rs 7.65 crore.
India's industrial output rose 5.4% in June 2008 from a year earlier, above the previous month's upwardly revised 4.1%, data released by the government on Tuesday, 12 August 2008, showed. The growth was much lower than double-digit growth seen in 2006 and early 2007.
The board of market regulator Securities & Exchange Board of India will review the regulatory framework governing participatory notes (PNs), at its meeting on Wednesday, 12 August 2008. There are expectations that Sebi may relax some of restrictions on PNs that were introduced in October 2007. At the time, Sebi had proposed that foreign institutional investors (FIIs) and their sub-accounts cannot issue or renew PNs with underlying as derivatives with immediate effect. They had to unwind their current position within 18 months. The capital market regulator had also said that FIIs cannot hold over 40% of assets in PNs
The October 2007 restrictions on PNs were brought in the backdrop of copious capital flows into the country. Ever since the curbs on PNs were announced, the FIIs had been net sellers, initially due to these restrictions and later beginning January 2008 on account of global financial turmoil following deepening of US sub-prime crisis. Participatory notes are the instruments through which unregistered foreign players invest in Indian securities.
Meanwhile, the National Stock Exchange (NSE), late on Tuesday, 12 August 2008, said it has added 39 additional stocks for trading in the futures & options (F&O) segment effective from 21 August 2008. Some of the new F&O entrants include ABG Shipyard, Asian Paints, Balaji Telefilms, Container Corporation of India, Deccan Chronicle Holdings, Dish TV India, Indiabulls Real Estate, Sintex Industries, Thermax and Walchandnagar Industries
Trading Calls - Aug 13 2008
Nifty (4552) Sup 4480 Res 4605
Sell ICICI Bank (740) SL 750
Target 715, 710
Sell SBI (1556) SL 1570
Target 1525, 1515
SELL Tata Power (1037) SL 1050 Target 1015, 1005
Buy Tata Chem (338) SL 333
Target 348, 351
Buy Sasken (157) SL 153
Target 165, 168
Jumping the gun!
Jumping to conclusions seldom leads to happy landings.
Yesterday it was IIP. Today it is SEBI Board meet. The bears needed an excuse and they found one to begin with. An erroneous media flash of infrastructure growth figures as IIP numbers caused brief panic in the market. We expect the market to be under pressure again at the opening bell, as most global markets are down on fresh bad news from the western financial sector. But, crude oil has cooled off to $113 per barrel levels, which could encourage the bulls. Things could improve for the mid-cap space as NSE has decided to introduce 39 new scrips in the F&O segment from Aug. 21. Most of the stocks belong to the mid-cap segment. So, expect some positive action later in this space.
The focus however would be on the SEBI Board meeting. Expectations are a review of the Participatory Note (PN) guidelines issued in October 2007. The bulls are likely to be disappointed if the regulator does not relax its stance on PNs. Any negative announcement from SEBI will act as a dampener. On the other hand, lack of bad news from the regulator will be greeted with cheers.
Weak government data on industrial production and six key infrastructure industries for the month of June prompted the bulls to step back for a day on Tuesday. FIIs were the big sellers while local funds too remained largely inactive.
The IIP numbers for June are much better than May, when industrial output had sunk to a six-year low. Consumer durables and non-durables have also bounced back from last year's poor performance. The problem is industrial production growth has halved in the first quarter of FY09 over the year-ago period. At 3.5%, growth of the six core sector industries for the April-June period too has been dismal.
FIIs were net sellers of Rs6.87bn (provisional) in the cash segment on Tuesday and the local funds offloaded shares worth Rs76.5mn. In the F&O segment, the foreign funds were net sellers of Rs8.64bn. On Monday, FIIs were net buyers of Rs4.09bn in the cash segment. Mutual funds were net buyers of Rs4.55bn.
Bangalore-based realty firm Puravankara is expected to make an announcement on a mass housing project.
Asian stocks dropped, sending the region's benchmark index to a two-year low, after Japan's economy contracted and companies reported weaker profit growth. The MSCI Asia Pacific Index dropped 1.3% to 126.18 as of 11:20 a.m. in Tokyo, the lowest level since September 2006.
Japan's Nikkei 225 Stock Average lost 2.2% to 13,006.07. All other benchmark indexes in the region fell apart from Vietnam, which was little changed.
US stocks ended lower on Tuesday after a slew of financial companies warned about the ongoing impact of credit market problems, overshadowing any relief about lower crude oil prices.
The Standard & Poor's 500 Index slid 15.73 points, or 1.2%, to 1,289.59. The Dow Jones Industrial Average decreased 139.88 points, or 1.2%, to 11,642.47. The Nasdaq Composite Index slipped 9.34 points, or 0.4%, to 2,430.61.
Market breadth was negative. Two stocks dropped for each that rose on the New York Stock Exchange. But, trading volume was light.
The major stock indices were in negative territory for most of the day, although the Nasdaq made a few forays into positive zone, thanks to lower oil prices.
The issues plaguing financial shares have recently been offset by a decline in crude oil, which has revived hopes that less expensive energy costs would boost consumer and business spending.
JP Morgan Chase said it may post more credit losses, pushing the worldwide costs for the collapse of the subprime mortgage market to more than US $500bn.
JP Morgan dropped the most since 2002 after saying trading conditions have substantially deteriorated. Goldman Sachs had its worst decline in five months as Deutsche Bank and Oppenheimer cut their profit estimates for the top Wall Street firm.
Wachovia slid 12% and Morgan Stanley tumbled 6.4% as financial shares erased Monday's advance.
Oil prices slipped even as the dollar fluctuated and concerns about supply disruptions in Eastern Europe stayed front and center. BP shut down a Georgian pipeline for safety reasons, although Russia said it has halted its attacks on Georgia.
US light crude oil for September delivery fell $1.44 to settle at $113.01 a barrel on the New York Mercantile Exchange. Crude prices are down over 20% since peaking above $147 a barrel in mid-July.
In the bond market, Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.90% from 3.99% late on Monday. In currency trading, the dollar fell versus the euro and the yen. COMEX gold for December delivery fell $13.50 to settle at $810.80 an ounce.
After the close, Applied Materials reported sales and earnings that tumbled from a year ago due to the tough industry environment. Nonetheless, results edged out analysts' estimates. Shares gained 3% in extended-hours trading.
Wednesday brings key economic reports on July retail sales, June business inventories and the weekly crude inventories report.
In Europe, UK stocks ended an erratic session in the red. The UK FTSE 100 ended the day with a loss of 0.1%, or 7.3 points, at 5,534.5. The pan-European Dow Jones Stoxx 600 index traded down 0.4% at 291.84. Germany's DAX 30 lost 0.4% at 6,585.87, while the French CAC-40 dropped 0.4% to 4,518.48.
In the emerging markets, the Bovespa in Brazil was down 0.4% at 54,502 while the IPC index in Mexico fell 1.1% to 26,636. The RTS index in Russia surged 3.5% to 1803 after Russia ordered an end to military operations against Georgia. The ISE National 30 in Turkey was down 0.6% at 51,172.
Markets snapped a five day winning streak as bears got a boost after core sector data spooked the Indian bulls. India's production at six key industries, which account for a quarter of the nation's industrial production, rose 3.4% in June from 5.2% in the same month a year earlier.
Previous IIP data brought havoc to markets; however, this time Industrial Production figures barely had any impact on Dalal Street. India's industrial production growth accelerated to 5.4% in June from year ago and government also announced that it revised May Industrial Production to 4.1% vs 3.8%.
Finally, the benchmark Sensex lost 291 points to close at 15,212 and Nifty was up 68 points to close at 4,552.
Shares of Trent Ltd rallied by over 10% to Rs545 after the company announced that the board of directors of the company, approved the company entering into an association with Tesco Plc, UK's leading retailer, for the company's Star Bazaar hyper market business which is carried on by Trent Hypermarket Ltd (THL).
Under this association, THL will be entering into a franchise agreement with Tesco. This will facilitate access to Tesco's retail expertise and technical know-how for operation of the hyper-market business. The scrip touched an intra-day high of Rs587 and a low of Rs492 and recorded volumes of over 1,00,000 shares on BSE.
FDC Ltd declined by 7.1% to Rs34. The Board of Directors of the company approved the Buyback of its fully paid equity shares, from the open market, through the stock exchanges, at a price not exceeding Rs40/- per share being 10% of the total paid up capital and free reserves as per audited balance sheet for the year ended March 31, 2008. The scrip touched an intra-day high of Rs38.2 and a low of Rs34 and recorded volumes of over 11,00,000 shares on BSE.
Steel Strips Wheels surged by 4% to Rs121 after the company announced that it has achieved sales of 515,284 Wheel Rims during the month of July, 2008 as against 428,416 wheel Rims during the month of July, 2007, recording a growth of 20%. The company has also achieved production of 518,039 Wheel Rims during July 2008 as against 430,039 during July, 2007 recording a growth of 20%.
The company has also achieved the Export Sales of 38,640 wheel rims during the month of July, 2008 as against 9870 wheel rims during the month of July, 2007, recording a growth of 291%. The scrip touched an intra-day high of Rs123 and a low of Rs117.
IOB slipped by 1.5% to Rs97. The bank announced that the Board of Directors approved the increase of the Benchmark Prime Lending Rate (BPLR) of the bank by 0.50bps from existing 13.5% p.a. to 14% p.a. with effect from August 16, 2008.
The existing housing loans and education loans which are inked to BPLR, existing loans under special credit schemes where fixed rote option is applicable, fresh housing loans upto Rs30 lac and fresh education loans are exempted from the present revision in BPLR. The scrip touched an intra-day high of Rs100 and a low of Rs96 and recorded volumes of over 77,000 shares on BSE.
L&T ended 1.5% lower to Rs2849 . The company in consortium with Global technology partners has secured EPC orders aggregating to Rs38.16bn from various customers in the metals industry.
L&T in the consortium with Outotec, GmbH of Germany for Pellet plant and Paul Wurth, Italia for Blast Furnace has bagged EPC orders worth Rs25.45bn from Tata Steel for 6 MITPA Pellet Plant and 3,800 CuM Blast Furnace at Jamshedpur. L&T's portion is valued at Rs15.78bn. The scrip touched an intra-day high of Rs2930 and a low of Rs2889 and recorded volumes of over 5,00,000 shares on BSE.
Shares of Petronet LNG slipped by 2% to Rs61 after the company announced that it cut output at Indian terminal by 13%, the company said that it cut output on equipment breakdown. The scrip touched an intra-day high of Rs64 and a low of Rs61 and recorded volumes of over 2,00,000 shares on BSE.
Shares of Idea slipped by 2.5% to Rs87 after reports stated that the company may lose as much as Rs3.5bn if it wants to go with its proposed acquisition of equity stake in Spice Communication. The DoT asked the company to surrender its licence in Punjab and Karnataka without getting a refund of entry fee paid for these circles to avoid overlapping of service areas.
While Idea Cellular had recently got licences for the two areas, Spice has been offering mobile services there. According to existing merger and acquisition rules, a single company cannot hold more than 10% stake in two different telecom firms in the same circle. Idea Cellular had announced in June that it was acquiring 40.8% stake, in Spice Telecom for Rs27bn. However, DoT norms do not permit acquisition in overlapping areas, the report stated.
The scrip touched an intra-day high of Rs90 and a low of Rs86 and recorded volumes of over 10,00,000 shares on BSE.
L&T bags orders worth Rs3.8bn from various customers in the metal industry. (ET)
ONGC has received nod from the government to include Pertrobras and Statoil in its KG project. (BL)
According to RNRL, Reliance Industries should pay US$17bn in cash if it fails to supply gas. (ET)
ICICI Bank expects overall credit growth of 15-16% in FY09. (FE)
Reliance Industries to start crude oil output from KG basin in second half of September 2008. (BL)
Indian Bank, IOB and OBC raises PLR by 75bps, 50bps and 25bps respectively. (BS)
ONGC and BHEL have signed a contract to set-up a 726mw gas based power project in Tripura. (FE)
Infosys cuts hiring target for FY09. (ET)
TESCO, UK’s supermarket group plans to enter India through an exclusive franchise agreement with Trent. (ET)
Chrysler has alleged that M&M has copied the front grill design of ‘Scorpio’ from ‘Jeep’. (ET)
Crompton Greaves plans to invest Rs2.2bn in FY09 for expanding capacity. (Mint)
Reliance Retail has tied up with British toy retailer Hamleys Group to set up a nation wide network of exclusive toy stores. (ET)
i-flex bags US$90mn deal from National Australian Bank. (ET)
Satyam Computers has signed a service pact with RelWare. (BS)
Following political disturbances in Pakistan and Nepal, Dabur India is rethinking its strategy for these two countries. (BS)
Videocon, LG, Godrej and others plan to raise consumer durables prices next month or at the start of festival season. (BS)
NDTV Imagine is launching a Bollywood entertainment channel. (BL)
Jindal Rail Infrastructure, a subsidiary of Jindal Saw is setting up a Rs3.5bn freight wagon manufacturing unit at Baroda. (FE)
Colgate-Palmolive India has decided to significantly reduce the number of stock keeping units it says. (MINT)
Federal Mogul buys 51% in Perfect Circle for Rs170mn. (ET)
National Housing Bank is all set to acquire 12.5% stake in Mahindra Rural Housing Finance, a subsidiary of M&M Financial Services. (ET)
Voltas acquires 51% stake in Rohini Industrial Electricals for Rs620mn. (ET)
HTMT to buy two US firms by the year end. (BS)
Sarovar Hotels plans to raise Rs7-8bn through SPV. (BS)
BSEL Infra Realty to consider raising US$100mn to various means. (BS)
SEL Manufacturing Company plans to invest Rs15bn for its capacity expansion programme. (BS)
Max India plans to invest Rs22bn for its expansion plans over the next three years. (BS)
Panacea Biotec bags order worth Rs1.4bn from UNICEF. (BL)
Economy Front page
IIP growth for June 2008 was at 5.4% as compared to 8.9% for June 2007. (ET)
TRAI has said that the decision to allot 3G spectrum to CDMA players without an auction is against the principles of equality. (ET)
Domestic airlines carried 3.04mn passengers in the month of July 2008 as compared to 3.48mn passengers in July 2007. (ET)
Power plant developers building large and UMPPs may soon get to buy equipments without paying customs or excise duties. (ET)
The ministry of corporate affairs is considering ways to bring uniformity between company laws and accounting standards that require companies to declare their foreign exchange losses. (ET)
Core sector growth dips to 3.4% in June 2008 from 5.2% in June 2007. (ET)
Government may cap prices for short term power trades. (BS)
SEBI is expected to review its restriction on P Notes in its board meeting today. (BS)
Government is considering allowing FII’s to invest in IDR. (BS)
Government has ruled out any hike in coal prices in the current fiscal. (BL)
Government has put sugar de-control on back burner following spike in retail sugar prices. (BL)
India is expected to expand its wind base power plant capacity by 6,000mw by 2012.
Maharashtra government has raised special fee by 200% on imported spirits and wine. (FE)
Sasan Power Ltd has requested coal ministry to allocate Semaria coal block to it. (FE)
Singapore Airlines - the best in the world
Singapore Airlines has been named the world's best airline in the 2008 Airline of the Year awards. Cathay Pacific and Qantas came second and third respectively in the annual survey.
Singapore won the title for the second year in a row and the third time in 10 years. The airline also took out the award for best business class.
Qantas also won the award for best first class lounge, best economy class catering and best airline in Australasia.
The awards, run by UK-based aviation research agency Skytrax, are based on the world's largest passenger survey, with 15 million passengers taking part around the world.
The Sydney Morning Herald quoted Skytrax's CEO, Edward Plaisted, as saying that the criticism of airlines from within their own regions did not reflect the experiences of global customers.
"The global rating for Qantas is interesting. We do find that many flag-carrier airlines suffer fairly vitriolic levels of reporting in their local regions, and the airline industry remains a business that some areas of the press seem to love to hate."
"The lounge concept for both product and staff service has been modelled around the finest quality you would expect to find in a five-star hotel or restaurant, and the best part is that the concept is being so well delivered by Qantas," Plaisted added.
"Business class standards continue to be upgraded by airlines across the world, and Singapore Airlines managed to retain their title amidst this growing level of competition," Plaisted said.
Abu Dhabi-based Etihad Airways, which recently expanded their Australian routes, climbed into the top 10 for the first time, and was placed tenth.
Bullion metals down by 3% in FY 2008
Gold loses almost 12% in August till date
Strong US dollar and sliding crude prices continued to send bullion metal prices to their lowest levels in a year today, Tuesday, 12 August, 2008. Gold and silver prices have registered losses in all the trading sessions in the current month of August, 2008. Bullion metals had also incurred sufficient losses last week. Silver prices also fell for the day.
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. 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 and vice versa.
Comex Gold for December delivery fell $13.7 (1.7%) to close at $814.6 ounce on the New York Mercantile Exchange. With today’s drop, it lost 11.7% in August, 2008 till date. Last week, it ended lower by 5.8%. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped 22% since then.
This year, gold prices have lost 2.9% till date as the dollar rallied against the euro. It has lost almost $108 in August till now. Gold ended July, 2008 lower by $11 (1.1%).
Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. It ended June, 2008 with a gain of 4.1%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, in 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 Tuesday, Comex silver futures for September delivery fell 13.5 cents (0.9%) to $14.485 an ounce. With today’s drop silver erased all of its gains and has lost almost 2.9% in 2008 till date. Last week it lost 12.5%. It ended July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.
At the currency markets on Tuesday, the dollar was little changed against the euro after rallying 4.4% this month before today. Traders pared speculation on a rate hike by the European Central Bank later this year, after policy makers held the benchmark rate at 4.25% on 7 Aug, 2008. The dollar index which measures the greenback against a basket of currencies, fell to 76.14 from 76.21 in the previous day.
At the crude market on Tuesday, crude oil fell to a 14-week low on speculation that the dollar will strengthen against the euro, weakening the appeal of commodities as an inflation hedge. Crude oil for September delivery fell $1.44 (1.3%) to settle at $113.01 a barrel. It dropped to an intra day low of $112.5.
Earlier this year, the weakening dollar and higher global demand for raw materials had led to records this year for commodities including gold. The Federal Reserve halted cuts to its target bank lending rate in April, after slicing it in seven steps to 2% from 5.25% in September.
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. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for October delivery closed lower by Rs 41 (0.35%) at Rs 11,354 per 10 grams. Prices rose to a high of Rs 11,488 per 10 grams and fell to a low of Rs 11,186 per 10 grams during the day’s trading.
At the MCX, silver prices for September delivery closed Rs 17 (0.08%) higher at Rs 20,833/Kg. Prices opened at Rs 20,720/kg and rose to a high of Rs 21,175/Kg during the day’s trading.
Crude price continues to soften
IEA estimates oil demand rising 0.9% in FY 2008
The steady dollar and overall economic concerns related to the US economy pushed crude prices below the $115/barrel level once again today, Tuesday, 12 August, 2008. Prices fell to almost $112 earlier during the day. Most energy and metals futures dropped as the U.S. currency rose to a 5 1/2-month high versus the euro earlier today. Crude had lost almost 8% ($10) last week too.
Crude-oil futures for light sweet crude for September delivery closed at $113.01/barrel (lower by 1.44 or 1.3%) on the New York Mercantile Exchange. Futures earlier fell to an intraday low of $112.5 a barrel. Last week, crude prices ended lower by $9.9 (8%). Before that crude lost $15.92 (11%) in July, 2008, the biggest ever in dollars.
Prices also fell today following news that Russia ordered an end to military operations in Georgia, which relieved some anxiety over supplies from the region but some news reports said the conflict continued despite the order.
At the currency markets on Tuesday, the dollar was little changed against the euro after rallying 4.4% this month before today. Traders pared speculation on a rate hike by the European Central Bank later this year, after policy makers held the benchmark rate at 4.25% on 7 Aug, 2008. The dollar index which measures the greenback against a basket of currencies, fell to 76.14 from 76.21 in the previous day.
The International Energy Agency today reported that tight global oil demand and supply balance, which has helped push up crude prices to record highs, is easing as higher prices and slower economic growth in developed countries is curbing oil demand. Despite that, IEA inched up its 2009 demand estimate for oil products while keeping its 2008 view unchanged. For this year, it estimates oil demand rising 0.9% to 86.9 million barrels of oil a day. For 2009, it estimates rising 1.1% to 87.8 million barrels.
In a separate report today, the U.S. Energy Department's Information Administration lowered its outlook for oil prices, citing slower demand growth and rising production capacity.
Crude prices had 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%. For the year, crude is up by 16.7% till date.
Brent crude oil for September settlement fell $1.52 cents (1.4%) to settle at $111.15 a barrel on London's ICE Futures Europe exchange.
Against this background, September reformulated gasoline fell by 2.3 cents to close at $2.8432 a gallon and September heating oil shed 4.1 cents to end at $3.0781 a gallon.
Natural gas in New York was little changed, erasing an earlier advance, as crude oil slipped to a 14-week low and the dollar held against the euro. Natural gas for September delivery fell 1.9 cents to settle at $8.33 per million British thermal units.
At the MCX, crude oil for August delivery closed at Rs 4,833/barrel, higher by Rs 68 (1.4%) against previous day’s close. Natural gas for August delivery closed at Rs 354.1/mmbtu, higher by Rs 5.1/mmbtu (1.5%).
Tuesday, August 12, 2008
New F&O Stocks
Sr No | Symbol | Security Name |
| 1 | ABGSHIP | ABG SHIPYARD LTD |
| 2 | AKRUTI | AKRUTI CITY LIMITED |
| 3 | ASIANPAINT | ASIAN PAINTS LIMITED |
| 4 | BALAJITELE | BALAJI TELEFILMS LIMITED. |
| 5 | CONCOR | CONTAINER CORP OF IND LTD |
| 6 | COREPROTEC | CORE PROJ. & TECH. LTD. |
| 7 | DCHL | DECCAN CHRONICLE HOLD LTD |
| 8 | DISHTV | DISH TV INDIA LTD. |
| 9 | EVERONN | EVERONN SYSTEMS IND. LTD |
| 10 | FSL | FIRSTSOURCE SOLU. LTD. |
| 11 | GSPL | GUJARAT STATE PETRO LTD |
| 12 | GTLINFRA | GTL INFRA.LTD |
| 13 | GVKPIL | GVK POW. & INFRA LTD. |
| 14 | HCL-INSYS | HCL INFOSYSTEMS LTD |
| 15 | IBREALEST | INDIABULLS REAL EST. LTD |
| 16 | ICSA | ICSA (INDIA) LIMITED |
| 17 | KLGSYSTEL | KLG SYSTEL LTD. |
| 18 | KSOILS | K S OILS LIMITED |
| 19 | MIC | MIC ELECTRONICS LIMITED |
| 20 | MINDTREE | MINDTREE LIMITED |
| 21 | MLL | MERCATOR LINES LIMITED |
| 22 | MONNETISPA | MONNET ISPAT LTD |
| 23 | MRF | MRF LTD |
| 24 | NBVENTURES | NAVA BHARAT VENTURES LIMI |
| 25 | NOIDATOLL | NOIDA TOLL BRIDGE CO LTD |
| 26 | OPTOCIRCUI | OPTO CIRCUITS (I) LTD. |
| 27 | ORBITCORP | ORBIT CORP. LTD. |
| 28 | PRISMCEM | PRISM CEMENTS LTD |
| 29 | PTC | PTC INDIA LIMITED |
| 30 | RIIL | RELIANCE INDUSTRIAL INFRASTRUCTU LTD |
| 31 | SINTEX | SINTEX INDUSTRIES LTD |
| 32 | SREINTFIN | SREI INFRASTRUCTURE FINAN |
| 33 | THERMAX | THERMAX LTD |
| 34 | TORNTPOWER | TORRENT POWER LTD |
| 35 | TV-18 | TV18 INDIA LIMITED |
| 36 | UCOBANK | UCO BANK |
| 37 | UTVSOF | UTV SOFT. COMM. LTD. |
| 38 | VOLTAMP | VOLTAMP TRANSFORMERS LTD |
| 39 | WALCHANNAG | WALCHANDNAGAR INDUSTRIES |
BSE Bulk Deals to Watch - Aug 12 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
12/8/2008 531223 ANJANI SYNTH NARENDRA VALLABHJI BAHUVA B 83723 49.44
12/8/2008 531223 ANJANI SYNTH NARENDRA VALLABHJI BAHUVA S 83723 50.10
12/8/2008 530355 ASIAN OILFIE VSB INVESTMENTS PVT LTD B 300000 150.00
12/8/2008 530355 ASIAN OILFIE DECENT FIN SER P LTD B 200000 150.00
12/8/2008 530355 ASIAN OILFIE CONSOLIDATED SECURITIES LTD S 186448 150.00
12/8/2008 590059 BIHAR TUBES KINSFOLK INDUSTRIES PVT LTD B 40000 166.44
12/8/2008 531682 CAT TECHNOL PARSHURAM SHIVAJI CHAUDHARI B 231889 7.34
12/8/2008 531682 CAT TECHNOL PARSHURAM SHIVAJI CHAUDHARI S 250822 7.35
12/8/2008 532980 GOKUL REFOIL CRESTA FUND LTD B 672000 222.10
12/8/2008 532980 GOKUL REFOIL PACIFIC CORPORATE SERVICES LIMITED S 656606 222.10
12/8/2008 530885 JAISAL SECUR PALANICHAMY A S 18000 40.10
12/8/2008 526209 K S OILS LTD MORGAN STANLEY MAURITIUS COMPANY LTD B 2000000 60.00
12/8/2008 530165 KANCHA INTER PRAMODA H SHAH B 25000 6.50
12/8/2008 530165 KANCHA INTER VISHAL H SHAH S 20000 6.50
12/8/2008 526115 KARAN WOOSIN PRAMODA H SHAH B 158000 3.00
12/8/2008 526115 KARAN WOOSIN VISHAL H SHAH S 79000 3.00
12/8/2008 526115 KARAN WOOSIN HARSHAD N SHAH HUF S 79000 3.00
12/8/2008 502933 KATARE SPG. DIVYA STOCK BROKING LTD B 38700 24.32
12/8/2008 502933 KATARE SPG. KRISHNAGOPAL MOTILAL CHANDAK S 14000 24.42
12/8/2008 532906 MAN ALUMIN THE BANK OF NEWYORK GDR S 37399 30.18
12/8/2008 533010 OCTAV INVES MANSUKH SECURITIES FINANCE LIMITED B 33163 87.14
12/8/2008 533010 OCTAV INVES YUVAK SHARE TRADING PVT LTD B 28631 87.50
12/8/2008 533010 OCTAV INVES MANSUKH SECURITIES FINANCE LIMITED S 33163 87.90
12/8/2008 533010 OCTAV INVES HDFC PREMIER MULTICAP S 25689 82.99
12/8/2008 533010 OCTAV INVES HITESH SHASHIKANT JHAVERI S 57773 90.05
12/8/2008 533010 OCTAV INVES YUVAK SHARE TRADING PVT LTD S 33097 88.81
12/8/2008 590077 RANKLIN SOLU RAVI BHAGWANDAS PANCHAL B 50000 169.26
12/8/2008 526407 RIT PRO IND GIRISHBHAI CHANDULAL SANGHVI B 53008 111.53
12/8/2008 526407 RIT PRO IND SHREE ATAM VALLABH POLY PLSTI S 55000 112.42
12/8/2008 526407 RIT PRO IND GIRISHBHAI CHANDULAL SANGHVI S 53008 111.44
12/8/2008 532886 SEL MANUF MARWADI SHARES AND FINANCE LIMITED B 166610 400.39
12/8/2008 532886 SEL MANUF SPJSTOCK B 160704 409.32
12/8/2008 532886 SEL MANUF B K SHAH CO B 174258 403.82
12/8/2008 532886 SEL MANUF MARWADI SHARES AND FINANCE LIMITED S 166610 400.21
12/8/2008 532886 SEL MANUF SPJSTOCK S 160704 406.35
12/8/2008 532886 SEL MANUF B K SHAH CO S 174263 403.08
12/8/2008 513530 STELCO STRIP INDEX SECURITIES AND RESEARCH PV B 138074 20.00
12/8/2008 533011 VISHAL INFO MANSUKH STOCK BROKERS LIMITED B 114697 195.25
12/8/2008 533011 VISHAL INFO MEENAL NITISH THAKUR B 76491 200.88
12/8/2008 533011 VISHAL INFO YUVAK SHARE TRADING PVT LTD B 64585 200.10
12/8/2008 533011 VISHAL INFO MANSUKH STOCK BROKERS LIMITED S 114697 194.50
12/8/2008 533011 VISHAL INFO MEENAL NITISH THAKUR S 76491 198.14
12/8/2008 533011 VISHAL INFO YUVAK SHARE TRADING PVT LTD S 66585 199.20
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