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Friday, January 23, 2009
Crude pare gains
Prices end marginally higher on hopes of new stimulus
Crude oil prices pared all their earlier losses and ultimately ended higher on Thursday, 22 January, 2009. Prices earlier fell as energy department reported more than expected build up in crude inventories. But prices then took a u turn on anticipation that the new administration will take necessary steps soon to boost the US economy.
On Thursday, crude-oil futures for light sweet crude for March delivery closed at $43.67/barrel (higher by $0.12 or 0.3%) on the New York Mercantile Exchange. Last week, crude prices shed 10.6%.
Prices reached a high of $147 on 11 July but have dropped almost 68% since then. Year to date, in 2009, crude prices are lower by 12.5%. On a yearly basis, crude prices are lower by 52%.
EIA reported today that U.S. crude supplies rose by 6.1 million barrels to stand at 332.7 million barrels during the week ended 16 January, 2009. Market had expected a buildup of 1.9 million barrels. After the data, March crude futures tumbled $2.62, or 6%, to $40.92 a barrel in electronic trading on Globex.
The EIA also reported a rise of 6.5 million barrels in gasoline supplies and a rise of 0.8 million barrels in distillate stocks for the week under review.
Against this background, March reformulated gasoline fell 8 cents to $1.12 a gallon, and March heating oil dropped 3 cents to $1.35 a gallon.
March natural gas futures fell 10 cents to $4.68 per million British thermal units.
Thursday, January 22, 2009
BSE Bulk Deals to Watch - Jan 22 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
22/1/2009 533026 CHEMCEL GANDHI MANISHA NAVNEETLAL B 140873 6.37
22/1/2009 533026 CHEMCEL USHADEVI SHAHRA B 300000 6.62
22/1/2009 533026 CHEMCEL AMAR PREMCHAND WALMIKI B 556988 6.71
22/1/2009 533026 CHEMCEL BIPIN KUMAR R GANDHI S 154298 6.33
22/1/2009 533026 CHEMCEL AMAR PREMCHAND WALMIKI S 694938 6.63
22/1/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD B 113362 1700.40
22/1/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD S 113362 1699.95
22/1/2009 532606 PAREKH ALUM AAP INVESTMENTS B 380000 50.00
22/1/2009 532606 PAREKH ALUM BARCLAYS CAPITAL MAURITIUS LIMITED S 356002 50.00
22/1/2009 507649 RASOI LTD TEJASWI VINIMAY PVT LTD B 10000 348.70
22/1/2009 531952 RIBA TEXTILE SHAH EKTA RIPPLE B 82000 28.66
22/1/2009 531952 RIBA TEXTILE SHAILESH SOMABHAI PATEL S 90651 28.35
22/1/2009 500368 RUCHI SOYA DHANAJAYA MONEY MANAGEMENT SER P LTD B 2900000 19.23
22/1/2009 500368 RUCHI SOYA SUNDARAM BNP PARIBAS MUTUAL FUND AC SELECT MIDCAP S 1700000 19.17
22/1/2009 531249 WELL PACK PA KAMLESH NAHAR B 55000 46.67
22/1/2009 531249 WELL PACK PA BIPIN KUMAR R GANDHI B 49048 47.20
22/1/2009 531249 WELL PACK PA BIPIN KUMAR R GANDHI S 63281 49.92
NSE Bulk Deals to Watch - Jan 22 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-JAN-2009,EDUCOMP,Educomp Solutions Limited,A TO Z STOCK TRADE PRIVATE LIMITED,BUY,94242,1700.49,-
22-JAN-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,203866,1702.75,-
22-JAN-2009,EDUCOMP,Educomp Solutions Limited,P R B SECURITIES PRIVATE LTD,BUY,102358,1680.01,-
22-JAN-2009,EVINIX,Evinix Accessories Limite,NCR BUILDTECH PRIVATE LIMITED,BUY,902000,2.40,-
22-JAN-2009,SATYAMCOMP,Satyam Computers Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,4902153,29.16,-
22-JAN-2009,WSI,W S INDUSTRIES (I) LTD,KANTHARAO UPPALA,BUY,142654,31.79,-
22-JAN-2009,EDUCOMP,Educomp Solutions Limited,A TO Z STOCK TRADE PRIVATE LIMITED,SELL,94242,1700.81,-
22-JAN-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,203866,1704.60,-
22-JAN-2009,EDUCOMP,Educomp Solutions Limited,P R B SECURITIES PRIVATE LTD,SELL,102358,1680.68,-
22-JAN-2009,EVINIX,Evinix Accessories Limite,SUPREME FINVEST (P) LTD.,SELL,902000,2.40,-
22-JAN-2009,MIC,MIC Electronics Limited,Copthall Mauritius Investment Ltd,SELL,590000,23.33,-
22-JAN-2009,MIC,MIC Electronics Limited,KOTAK MAHINDRA INVESTMENTS LIMITED,SELL,568500,23.57,-
22-JAN-2009,SATYAMCOMP,Satyam Computers Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,4902153,29.17,-
Post Session Commentary - Jan 22 2009
The Indian market managed to end the day in green terrain after showing choppiness during the trading session. Indices regained positive zone after slipping into red in a highly volatile session. The market gave up gains in afternoon trade on higher inflation data to 5.6% for the week ended January 10 from 5.24% a week earlier. Investors also eyed on the crucial quarterly number of the Reliance Industries. The company is likely to report dismal numbers due to the sharp fall in the demand of petrochemicals and the petroleum product prices. However, market regulator Sebi''s move asking promoters of listed companies to disclose there pledged shares, if any, with lenders boosted the market.
The domestic market today opened significantly higher tracking positive cues from the markets all over the world. Though, stocks were not able to sustain the same impetus and turned choppy as investors were cautious ahead of quarter earnings to be announced by the country’s most valuable listed company Reliance Industries. Nervousness prevailed the market despite an encouraging third quarter earnings announced by Bharti Airtel today. The rise in the inflation number also added to the choppiness. Further, market pared all its gains and slipped into red on account of profit booking seen in selective front liners. Finally, market recovered to get back some of its gains closed the directionless session above the dotted line on account of firm global cues. In the meantime, Planning Commission deputy chairman, Mr. Montek Singh Ahluwalia told the industry not to expect any more stimulus packages from government during this financial year ending March 2009. The government has already announced two stimulus packages to support the economy, reeling under the impact of the global slowdown. From the sectoral front, Teck, Bank, IT, and Oil & Gas stocks were on buyers ride today. However, Reality, Consumer Durable, Metal, Auto and Pharma stocks remained under pressure as witnesses most of the selling form these baskets. Midcap and Smallcap stocks also witnesses huge selling pressure during the trading.
Among the Sensex pack 15 stocks ended in red territory and 15 in green. The market breadth remained negative as 1661 stocks closed in red while 739 stocks closed in green and 96 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 34.67 points at 8,813.84 and NSE Nifty ended slightly up by 7.65 points at 2,713.80. The BSE Mid Caps and Small Caps ended with losses of 61.03 points and 67.70 points at 2,895.45 and 3,304.95 respectively. The BSE Sensex touched intraday high of 8,927.69 and intraday low of 8,699.32.
Gainers from the BSE Sensex pack are Bharti Airtel (6.19%), Grasim Indus (3.05), Sun Pharma (2.78%), Sterlite In (2.77%), ICICI Bank (2.53%), ACC Ltd (2.43%), HDFC (2.04%), JP Associates (1.53%) and Reliance (1.21%).
Losers from the BSE Sensex pack are DLF Ltd (9.36%), Ranbaxy Lab (8.89%), Hindalco (7.49%), Rel Infra (6.15%), Tata Motors (5.21%), Tata Steel (5.01%), Maruti Suzuki (4.10%), L&T Ltd (3.31%) and M&M Ltd(2.86%).
India''s wholesale price index rose to 5.6% for the week ended January 10 2008, from 5.24% a week earlier after moving downward for few weeks. However the expectations prevail that the eight-day truckers strike in early January would have pushed up the food price index. The annual inflation rate was 4.36% during the corresponding week of the previous year.
According to provisional figures the wholesale price index of all commodities increased by 0.4% to 230 from 229 of the previous week. Along with this, the index for primary articles rose 1.2% to 249.3 as against 246.3 and for manufactured products went up by 0.2% to 201.1 from 200.6 of earlier week. However, the index for fuel, power, light and lubricants remained unchanged at its previous weeks’ level of 329.8.
On the global markets front, the Asian Markets ended higher despite economic concerns. Japan''s exports dropped for the third consecutive month in December to 35% from a year earlier. Markets got a boost on the back of sharp rise in the Wall Street, which overshadowed the region''s economies worries. The Bank of Japan (BOJ), as widely expected, held its key interest rate unchanged at 0.1% on Thursday, citing an increasingly worsening economic outlook at domestic and abroad. Meanwhile, the BOJ downgraded its estimates for the nation''s economic growth from the previously forecasted 0.1% to minus 1.8% in fiscal 2008, which ends in March 2009. For fiscal 2009, the central bank lowered its estimate for real GDP growth from earlier predicted 0.6% expansion to 2.0% contraction. Hang Seng index closed higher by 74.36 points at 12,657.99. Along with this, Nikkei, Straits Times and Seoul Composite index ended up by 150.10, 4.25 and 12.62 points at 8,051.74, 1,708.77 and 1,116.23 respectively.
The European Markets are also extending its gains. Major gainers are banking and energy stocks. Though, U.K. price inflation fell sharply in December to 3.1% as against 4.1% November. The DAX is up by 74.88 points at 4,336.03 and FTSE 100 is higher 75.18 points at 4,135.06.
The BSE Teck index witnessed most of the buying as ended up by (1.27%) or 21.83 points to close at 1,739.17 as Tanla (9.93%), Bharti Airtel (6.19%), Oracle Fin (3.92%), Zee News (3.24%), JAgran Prak (2.72%) and Deccan Chro (1.56%) ended in green.
The BSE Bank index gained (0.74%) or 34.46 points to close at 4,679.40 as investors speculated falling bond yields and lower rates would speed up loan growth and profitability of selective companies. Karnataka Bank (2.99%), ICICI Bank (2.53%), Bank of India (2.33%), Canara Bank (2.31%) and Axis Bank (1.96%) ended in positive territory.
The BSE Oil & Gas index also gained market favor and ended higher by (0.39%) or 21.97 points at 5,664. Gainers are Cairn Ind (2.86%) and Reliance (1.21%).
The BSE Reality index extended losses on reports that falling interest rates have failed to revive housing demand and ended down by (5.47%) or 89.78 points at 1,551.57. Major losers are DLF Ltd (9.36%), Anant Raj (4.94%), Indiabull Real (4.69%), Orbit Co (3.54%), Unitech Ltd (3.41%) and Housing Dev (2.88%).
The BSE Consumer Durable index also beaten down badly as heavy selling pressure was witnessed from this basket. It closed with decrease of (2.77%) or 49.16 points at 1,723.81. Scrips that lost are Gitanjali GE (6.72%), Blue Star L (5.51%), Titan Ind (2.46%) and Videocon Ind (1.18%).
The BSE Metal stocks tumbled (2.50%) or 117.24 points at 4,580.26 on fears that weakening domestic and global economy will hit demand. Main losers are Hindalco (7.49%), Jindal Saw (6.53%), Welspan Gujarat Sr (5.66%), Tata Steel (5.01%), Gujarat NRE C (3.52%) and JSW Steel (2.93%).
Bharti Airtel gained (6.19%) as reported good quarterly numbers in the third quarter. The company reported a 15% growth in quarter to quarter basis to Rs. 1976.4 crore versus Rs. 1,714.66 crore.
Modest gains for the day
The stock market witnessed volatile moves and swung 229 points during intra-day trades, as shares gyrated sharply between zones. Taking cue from firm global indices, Sensex started on a positive note at 8906 but failed to sustain its gains, as a sharp bout of profit-taking pulled the index below 8700 mark to an intra-day low of 8699. While the market remained lacklustre with a negative bias, Sensex rolled back to the green by mid-noon trades on renewed buying support, and surged to an intra-day high of 8928. However, a fresh round of profit-taking towards the fag end saw Sensex pare its gains and end at 8814, up 35 points, while Nifty added eight points to close at 2714.
The breadth of the market was negative. Of the 2,496 stocks traded on the BSE 1,661 stocks declined, 739 stocks advanced and 96 stocks remained unchanged. Among the sectoral indices, BSE Realty index dropped 5.47% while BSE CD, BSE Metal, BSE CG and BSE Auto also ended at lower levels. BSE Teck, BSE Bankex, BSE Oil and BSE IT gained around 0.36-1% each.
Select heavyweights edged higher on decent buying support. Bharti Airtel rose 6.07% at Rs619, ICICI Bank jumped 2.98% at Rs380, Grasim advanced 2.94% at Rs1,175, Sun Pharmaceutical Industries added 2.529% at Rs1,100, Sterlite Industries gained 2.42% at Rs243 and ACC gained 2.09% at Rs488.10. However, select front-line stocks came under selling pressure. DLF was the major loser and dropped 9.36% at Rs164.05. Among other draggers Ranbaxy Laboratories declined 8.89% at Rs186.10, Hindalco Industries dropped 7.49% at Rs43.85 and Reliance Infrastructure shed 6.15% at Rs488.40. While Tata Motors, Tata Steel, Maruti Suzuki India, Larsen & Toubro and Mahindra & Mahindra closed with loss of 2-5% each.
Over 2.99 crore shares of Satyam Computer Services changed hands on the BSE followed by UNITECH (1.52 crore shares), Reliance Natural Resources (97 lakh shares), Suzlon Energy (62 lakh shares) and GVK Power & Infrastructure (59 lakh shares).
Sensex ends slightly higher; Bharti Airtel surges, DLF plunges
Key benchmark indices logged small gains on positive global cues in what was a highly choppy trading session. Stocks oscillated wildly reacting to inflation data, corporate results and global cues. The BSE 30-share Sensex was up 34.67 points, or 0.39%.
The market had opened on a firm note on positive global cues. Also market regulator Sebi's move asking promoters of listed companies to disclose their pledged shares, if any, with lenders boosted the market. Caution gripped market after a strong start as key benchmark indices eased from day's high weighed by index heavyweight Reliance Industries, which slipped in red, in anticipation of subdued results from the firm later in the day. The market which gave up gains on higher inflation data in afternoon trade. Sensex oscillated in and out of positive zone in late trade.
Wholesale price index rose 5.6 % in the 12 months to 10 January 2009, above the previous week's annual rise of 5.24%, government data showed at 12:00 IST today.
Positive global cues lifted sentiment. European stocks rose on Thursday, 22 January 2009, as banking shares such as UBS bounced back from recent steep losses, while investors awaited earnings from tech bellwether Nokia. Key benchmark indices in UK, Germany and France were up by between 1.76% and 1.95%.
Asian markets, which opened before the Indian markets, were firm today led by financial companies and the optimism that government policies to ease the financial crisis will ease the global recession. Key benchmark indices in Hong Kong, South Korea, Singapore, China, Taiwan, Japan were up by between 0.13% to 1.9%.
US stocks jumped on Wednesday, 21 January 2009 after a surprisingly healthy earnings report from IBM fueled optimism that technology profits may fare better than other sectors during the recession. The Dow Jones Industrial Average climbed 279.01 points, or 3.51%, to end at 8,228.10, the S&P 500 Index gained 35.02 points, or 4.35%, to finish at 840.24 and the Nasdaq Composite Index rose 66.21 points, or 4.60%, to close at 1,507.07.
In an investor friendly move, the market regulator Sebi on Wednesday, 21 January 2009, asked promoters of listed companies to disclose if they have pledged shares with lenders, while saying it has had no luck in determining the real size of the Satyam Computer fraud. The regulator's announcement on disclosure of pledged shares comes in the wake of the Satyam scam, wherein promoter Ramalinga Raju had pledged nearly all his shares, whose prices he had inflated by falsifying profits.
The details of disclosure should be made in two stages that is event-based and periodical, which will be notified shortly after amending the relevant regulations and listing agreements, Sebi chairman C B Bhave said after the board meeting.
On the flip side, the Planning Commission deputy chairman, Mr Montek Singh Ahluwalia yesterday, 21 January 2009 told the industry not to expect any more stimulus packages from government during this financial year ending March 2009. He said that enough has been done for the industry.
The government has already announced two stimulus packages to give a boost to the economy, reeling under the impact of the global slowdown. The government and the Reserve Bank were working in close coordination on steps to stimulate the economy, he noted.
The BSE 30-share Sensex rose 34.67 points, or 0.39%, to 8,813.84. The Sensex rose 148.52 points at the day's high of 8,927.69 in early trade. The Sensex fell 79.85 points at the day's low of 8,699.32 in mid-afternoon trade. The Sensex swung 228.37 points between the day's high and the day's low.
The S&P CNX Nifty rose 7.65 points, or 0.28%, to 2,713.80.
Nifty January 2009 futures were at 2696, a discount of 17.80 points as compared to the spot closing of 2713.80. Turnover in NSE's futures & options (F&O) segment was Rs 38,676.85 crore, much lower than Rs 43,026.95 crore on Wednesday, 21 January 2009.
The market breadth, indicating the overall health of the market, was weak on BSE with 756 shares advancing as compared with 1,687 that declined. 41 shares remained unchanged. The breadth was positive in early trade.
Among the 30-share Sensex pack, 15 rose while the rest fell. ACC, Jaiprakash Associates, Tata Power Company, Grasim Industries, rose by between 0.1% to 3.05%.
Sectoral indices on BSE displayed mixed trend. The BSE Teck index (up 1.27%), the BSE Bankex (up 0.74%) outperformed the Sensex. The BSE Oil & Gas index rose 0.39%, matching Sensex' rise. However the BSE Realty index (down 5.47%), the BSE Consumer Durables index (down 2.77%), the BSE Metal index (down 2.5%), the BSE Capital Goods index (down 1.61%), the BSE Auto index (down 1.58%), the BSE HealthCare index (down 1.31%), the BSE FMCG index (down 0.96%), the BSE PSU index (down 0.56%), the BSE Power index (down 0.24%), the BSE IT index (up 0.36%), underperformed the Sensex.
The BSE Sensex has lost 868.14 points or 8.63% so far in 2009 from its close of 9647.31 on 31 December 2008. The barometer index had lost 10639.68 points or 52.44% in the calendar year 2008
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 1.21% to Rs 1,132.95. The stock swung in volatile band of Rs 1,153.40 - Rs 1110.65.
The company after market hours today announced 8.8% fall in net profit to Rs 3501.crore in Q3 December 2008 over Q3 December 2007, its first drop in three years, but beat forecasts as refining margins did not fall as much as expected.
India's largest telecom services provider by sales Bharti Airtel rose 6.19% after it before market hours today reported a 25% rise in net profit in Q3 December 2008 over Q3 December 2007. The stock was the top gainer from the Sensex pack.
Realty stocks fell on reports falling interest rates have failed to revive housing demand. india's largest realty developer by m-cap DLF plunged 9.36% to Rs 164.05 on high volumes of 57.55 lakh shares. Indiabulls Real Estate and Unitech fell 4.69% and 3.41% respectively.
Most metal stocks fell on worries a weakening domestic and global economy will hit demand. India's largest steel maker by sales Tata Steel fell 5.1% to Rs 179.20. The stock hit a high of Rs 193.90 after the company's overseas unit signed a pact with UK based Klesch & Company for selling aluminium smelters. Other metal stocks, Steel Authority of India, Hindalco Industries, Hindustan Zinc, fell by between 1.34% to 7.39%. While, National Aluminum Company and Sterlite Industries rose by between 2.66% to 5.52%.
Bank stocks turned mixed in volatile trade after latest data showed rise in inflation over the previous week. India's largest bank in terms of assets and branch network State Bank of India rose 0.66% to Rs 1,089.05. The stock moved between the high of Rs 1,102.80 and the low of Rs 1,065.30. India's second largest private sector bank by net profit HDFC Bank rose 0.37% to Rs 892.80. The stock moved between the high of Rs 948.70 and the low of Rs 882.80. Its American depository receipt (ADR) gained 4.85% on Wednesday, 21 January 2009. India's largest private sector bank by net profit ICICI Bank fell 2.53% to Rs 378.35. The stock moved between the high of Rs 385.70 and the low of Rs 359.40. Its ADR rose 6.34 % overnight.
India's largest dedicated housing finance company by total income HDFC rose 2.04%. HDFC, during market hours on 21 January 2009 said its net profit fell 15.73% to Rs 546.83 crore in Q3 December 2008 over Q3 December 2007.
Auto stocks fell on worries high interest rates and sluggish consumer spending have dented demand for automobiles, including for trucks, motorcycles and scooters. Mahindra & Mahindra, Maruti Suzuki India and Tata Motors fell by between 2.86% to 5.21%. India's largest motorbike maker by sales Hero Honda Motors rose 0.91% as company on 21 January 2009 its net profit rose 9.24% to Rs 300.42 crore in Q3 December 2008 over Q3 December 2007.
Capital goods stocks fell on worries a slowing economy will crimp orders. Larsen & Toubro, BEML, ABB, Thermax fell by between 0.03% to 6.83%.
India's largest drugmaker by sales Ranbaxy Laboratories fell 8.89%. The company after the market hours today reported a net loss of Rs 806.55 crore in Q4 December 2008 compared to a net profit of Rs 48.4 crore in Q4 December 2007.
Bharat Forge tanked 6.12% after the company reported a 92.52% fall in net profit to Rs 4.35 crore in Q3 December 2008 over Q3 December 2007.
Coromandel Fertilisers rose 13.12% after its net profit rose 77% in Q3 December 2008 over Q3 December 2007.
Pudumjee Pulp & Paper Mills rose 2.2% after its board approved 5 to 1 stock split
Kotak Mahindra Bank fell 5.81% after its net profit fell 30.03% in Q3 December 2008 over Q3 December 207.
Meanwhile, Singapore's government said it plans to spend $20.5 billion Singapore dollars ($13.6 billion) this year, causing a budget deficit blowout, in a bid to spur domestic demand and ease the impact of a severe recession. The government will target job preservation, bank lending, and infrastructure projects while widening this year's fiscal deficit to 6% of gross domestic product, the city-state's largest deficit ``to date,'' Finance Minister Tharman Shanmugaratnam said Thursday in a televised speech.
Singapore, however, slashed its 2009 growth forecast Wednesday for a second time this month, saying the economy could shrink as much as 5% as global demand for the country's exports collapses. China's GDP grew at slowest pace in 7 years and Japan's export plunged most since 1980.
Japan's central bank kept its already super-low interest rate on hold today, 22 January 2009, as widely expected but sharply downgraded its economic outlook amid an ever-deepening recession. In a unanimous vote, the Bank of Japan's policy board chose to keep the overnight call rate target at 0.1%. The BOJ now predicts that the world's second largest economy will shrink 1.8% this fiscal year through March and will contract 2% next fiscal year. The policy board cut the overnight call rate target to 0.1% from 0.3 % in December, joining the U.S. Federal Reserve in lowering borrowing rates to nearly zero amid an ever-worsening outlook for the global economy.
Daily Call - Jan 22 2009
One does not have to have a doctorate in Oriental capital markets to know that we will see some short covering today after fight back in the US indices, which was led by banking stocks. These rallies not withstanding, the bottom line is that the world banking system is in deep morass and Obama is no superman. He is just another human being who happens to be the 43rd American to take the oath of office of the President. Don't cross check the 43rd part, its right.
As the lows of the Sensex and the Nifty were convincingly broken on closing terms, we would advice waiting in the wings and not buying into today's rally. Reliance, the market mover, will present its results today later after the markets close and is unlikely to pull a rabbit out of its hat. Take a cautious approach today and if you need to trade long, do it only intra day with tight stop losses.
Pre Session Commentary - Jan 22 2009
Today the markets are likely to open with a positive gap as the US markets rebound due to better than expected quarterly results and majority of Asian markets have also opened in green. The sentiments across Asia are good after consecutive negative trades in prior sessions. Therefore today we expect our domestic markets to rebound on the back of recovery shown by other markets in Asia and US. The consecutive losses suffered in the prior sessions would prompt new positions today. Therefore today domestic markets are likely to rebound and trade positive.
On Wednesday, the markets once again faced heavy selling pressures and closed with huge negative gap. Since morning trade, the sentiments across Asia exuded relentless selling pressures. Later after the post mid session the downtrend of European markets set ablaze the domestic markets to close in deep red. Heavy selling was witnessed across broader markets and investors were also taking new short positions in the index heavyweights. On the front line, Heavy weights like ICICI Bank, Tata Power and Sterlite Industries faced enormous sell off. Sectors like Metal, Power, Bankex, Oil & Gas and Realty closed with losses of 4.07%, 3.91%, 3.91%, 3.78% and 3.61% respectively. On the other hand FMCG was the only sector left as a last resort for investors and therefore recorded a marginal gain of 0.84%. Sensex and Nifty lost 3.53% and 3.23% respectively. Mid caps and Small caps also shed 1.97% and 1.93% respectively. During the session we expect the markets to be trading positive.
The BSE Sensex closed lower by 321.38 points at 8,779.17 and NSE Nifty lost 90.45 points at 2,706.15. The BSE Mid Caps and Small Caps ended with losses of 59.50 points and 6.44 points at 2,956.51 and 3,372.65 respectively. The BSE Sensex touched intraday high of 9,051.31 and intraday low of 8,734.93.
The US markets on Wednesday closed in green. There was enough short covering that helped a remarkable rally among the stocks. The financial sector was the key driver after a 35% loss it suffered in the past two weeks. Better than expected results from Northern Trust and good purchases of Bank of America also helped maintain buying sentiments. Northern Trust reported fourth quarter earnings of $1.39 per share, which is $0.47 more than the estimated $0.92 per share and therefore its shares moved up by 31%. IBM also reported fourth quarter earnings of $3.28 per share, which is $0.25 better than the consensus estimate of $3.03 per share. IBM also expects 2009 earnings to be at least $9.20 per share, which is more than the $8.75 per share that Wall Street forecast. Crude oil futures for the month of February delivery grew by $2.71 to $43.55 per barrel on New York Mercantile Exchange. The crude futures closed above $43 a barrel backed by signs that the OPEC oil cartel is cutting output. Further the optimism about President Barack Obama''s economic stimulus package also added to the rally.
The Dow Jones Industrial Average (DJIA) closed higher by 279.01 points at 8228.10 NASDAQ index gained by 66.21 points at 1,507.07 and the S&P 500 (SPX) also closed higher by 35.02 points at 840.24.
Indian ADRs ended higher. In technology sector, Satyam ended up by 8.91% along with Infosys by 2.18%. Further Patni Computers ended with increase of 1.27% and Wipro closed up by 2.07%. In banking sector ICICI Bank and HDFC Bank advanced by 6.34% and 4.85% respectively. In telecommunication sector, Tata Communication lost 3.51% while MTNL gained 3.18%. Sterlite Industries increased by 0.20%.
Today major stock markets in Asia have opened positive. The Shanghai Composite is trading high by 2.67 points at 1,987.68. while Hang Seng is up by 145.04 points at 12,728.67. Further Japan''s Nikkei is trading low by 3.18 points at 7898.46. South Korea’s Seoul Composite is up by 10.20 points at 1,113.81 and Singapore’s Strait Times is also up by 20.28 points at 1,724.80.
The FIIs on Wednesday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 767.30 Crore and gross debt purchased stood at Rs 592.20 Crore, while the gross equity sold stood at Rs 1,059.50 Crore and gross debt sold stood at Rs 771.50 Crore. Therefore, the net investment of equity and debt reported were Rs (292.20) Crore and Rs (179.30) Crore respectively.
On Wednesday, Indian Rupee closed at 49.11/13 per dollar, 02% stronger than Tuesday’s close of 49.20/22. The rupee gained strength as exporters sold dollars to book cash, however the steep fall in stock markets resisted the further rise.
On BSE, total number of shares traded were 25.88 Crore and total turnover stood at Rs 2,852.17 Crore. On NSE, total number of shares traded were 56.44 Crore and total turnover was Rs 79.42 Crore.
Top traded volumes on NSE Nifty – Unitech with 47110550 shares, Suzlon Energy with 20061646 shares, SAIL with 12388616 shares, ICICI Bank with total volume traded 11918570 shares followed by NTPC with 9512265 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1028488 with a total turnover of Rs 13,248.08 Crore. Along with this total number of contracts traded in stock futures were 1132842 with a total turnover of Rs 11,090.31 Crore. Total numbers of contracts for index options were 1262525 with a total turnover of Rs 17,852.71 Crore and total numbers of contracts for stock options were 78427 and notional turnover was Rs 835.86 Crore.
Today, Nifty would have a support at 2,680 and resistance at 2,775 and BSE Sensex has support at 8,710 and resistance at 9,025.
Market seen firm
Key benchmark indices are headed for a positive start on firm global cues. Stock specific action is likely to set the tone of the market as a slew of corporate results from frontline companies will unveil their results during the day. Also inflation data for the week ended 10 January 2009 will be watched closely.
In a move that may boost stock markets, market regulator Sebi on Wednesday, 21 January 2009, asked promoters of listed companies to disclose if they have pledged shares with lenders, while saying it has had no luck in determining the real size of the Satyam Computer fraud. The regulator's announcement on disclosure of pledged shares comes in the wake of the Satyam scam, wherein promoter Ramalinga Raju had pledged nearly all his shares, whose prices he had inflated by falsifying profits.
The details of disclosure should be made in two stages that is event-based and periodical, which will be notified shortly after amending the relevant regulations and listing agreements, Sebi chairman C B Bhave said after the board meeting.
On the flip side, the Planning Commission deputy chairman, Mr Montek Singh Ahluwalia yesterday, 21 January 2009 told the industry not to expect any more stimulus packages from government during this financial year ending March 2009. He said that enough has been done for the industry.
The government has already announced two stimulus packages to give a boost to the economy, reeling under the impact of the global slowdown. The government and the Reserve Bank were working in close coordination on steps to stimulate the economy, he noted.
Back home, Reliance Industries, Bharti Airtel, Ranbaxy Laboratories, Reliance Power, Kotak Mahindra Bank, Cipla, Bank of India, Idea Cellular, Bharat Forge, declare their December 2008 quarterly results today, 22 January 2009. Meanwhile, aggregate results of 339 companies showed 17.70% fall in net profit on a 23.50% increase in net sales in Q3 December 2008 over Q3 December 2007.
The street was anticipating poor Q3 December 2008 earnings from Indian Inc on high input costs, the credit crunch and high interest rates, coupled with the burden of piled-up inventories.
Foreign brokerage Morgan Stanley in its research report dated 5 January 2009 said earnings of 30 BSE Sensex firms are set for their first quarterly drop in Q3 December 2008, since the data was first made available in 1999. It estimates the BSE Sensex earnings to drop 0.2% year-on-year basis compared with a growth of 5.5% and 20% in the September 2008 and June 2008 quarters, respectively.
Asian markets opened soft today, 22 January 2009, as china's GDP grew at slowest pace in 7 years and Japan's export plunged most since 1980. China's Shanghai Composite was up 0.73% or 14.49 points at 1,999.46, Hong Kong's Hang Seng rose 1.37% or 172.72 points at 12,756.35, Singapore's Straits Times advanced 0.77% or 13.14 points at 1,717.66, and South Korea's Seoul Composite gained 0.94% or 10.4 points at 1,114.01. However, Japan's Nikkei was down 0.15% or 12.03 points at 7,889.61.
US stocks jumped on Wednesday, 21 January 2009 after a surprisingly healthy earnings report from IBM fueled optimism that technology profits may fare better than other sectors during the recession. The Dow Jones Industrial Average climbed 279.01 points, or 3.51%, to end at 8,228.10, the S&P 500 Index gained 35.02 points, or 4.35%, to finish at 840.24 and the Nasdaq Composite Index rose 66.21 points, or 4.60%, to close at 1,507.07.
Back home, a sell-off in late trade dragged key benchmark indices lower on Wednesday, 21 January 2009, in what was a global equities rout. Fresh worries the global banking crisis may last longer than expected rattled bourses across the globe. The BSE 30-share Sensex lost 321.38 points, or 3.53%, to 8,779.17 and the S&P CNX Nifty fell 90.45 points, or 3.23%, to 2,706.15.
Foreign institutional investors (FIIs) are in selling mode after an inflow of Rs 1319.10 crore in December 2008. Their outflow in January 2009 totaled Rs 2,936.60 crore (till 20 January 2009).
According to provisional data on NSE, FIIs were net sellers worth Rs 786.62 crore while mutual funds bought shares worth Rs 282.73 crore on Wednesday, 21 January 2009,
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