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Sunday, May 24, 2009
Weekly Newsletter - May 24 2009
After a freezing start the market did melt some of its excesses. The coming week will see cabinet with many old faces with hopefully renewed vigour as the UPA-led government moves in office for the second term. Besides the global cues, the market will pay close attention to the GDP growth number which is expected to be around the 5% mark. The monsoon forecast will also have some temporary bearing on the sentiment.
The mid-cap and small cap counters are seeing a flurry of activity and retail as well as institution interest is building in. Stock-specific activity will continue. More than getting into the market, getting out at profits could be the near term goal. For the long term investors, making money in the short-term will do no harm.
Poll results propel Dalal Street into new orbit
If the outcome of the Lok Sabha elections was unbelievable and stunning, then what happened on the Indian bourses was even better. May 18th was a momentous occasion in the history of India, both in terms of politics and capital markets. While the decisive verdict that the Indian voters delivered in the just concluded Lok Sabha polls was the best that Indian parliamentary democracy has got in a long, long time, then the reaction of the stock market was unimaginable. It may not be repeated ever again. For the first time ever, the key Indian stock indices hit an upper circuit - not once, but twice. Trading was first halted for a couple of hours within just a few seconds of opening bell, when the Nifty soared by over 17% upper circuit. When trading resumed at 11:55 am, it took just a few seconds for the market to freeze again, this time for the rest of the day. There was some buzz that the largest life insurance company may step in with basket selling, which could have kept the trading going. However, that was not to be.
The BSE Sensex rocketed by 2,110 points or 17.24 % to 14,284 while the NSE Nifty shot up 651 points or 17.35% to 4,323. However, neither the brokers nor the exchanges benefited from the frenzied buying. Total trade turnover in the market was Rs3,103 crores Cash + F&O. Only 842 stocks were traded on the BSE while 202 stocks witnessed action on the NSE.
PSU stocks were on a roll on hopes that the new Government may revive the disinvestment programme given that there is no Left to put up a stiff resistance to any such proposals. The Government badly needs to undertake some sort of disinvestment and raise money to partially offset the ballooning fiscal deficit, which is likely to cross double digits for a second year in a row in FY10. Shares of Neyveli Lignite, SCI, MMTC and PFC were among the prominent gainers. Infrastructure shares too jumped on expectations that the mush stronger UPA will boost spending on roads, bridges, power plants and metro rails to sustain a high growth rate in the coming years. L&T, JP Associates, BHEL, Gammon India, Punj Lloyd, GMR Infra and IVRCL Infra were some of the stocks that rose. Shares of insurance companies rallied on hope that the Government may hike the FDI limit in the sector, from the current 26% to 74%.
However, the market gave up some of the Monday's gains in the following days as traders booked profits amid persistent concern over the health of the Indian and global economy. Mid-Cap and Small-Cap shares, a space that missed out the magical gains of May 18, surged in a catch-up rally. Meanwhile, key global stock markets weakened amid renewed bad news about developed economies and the US housing market. While Japan reported a record drop in its GDP for the January-March quarter, the Federal Reserve said that it will take 5-6 years for the US economy to fully recover from the current recession. US housing starts and building permits hit record lows in April. S&P cut UK's AAA rating outlook to negative from stable.
Saturday, May 23, 2009
Sensex rises most in a week in 17 years
Manmohan Singh was sworn in as the prime minister for a second term, along with his new cabinet and the outlook for the market would depend on how quickly they are able to push asset sales in state firms, ease rules for foreign investment and boost sagging growth.
Some analysts believe the market is overbought after it leapt more than 17 per cent at the start of the week following the unexpectedly easy election win. The BSE index has risen 73 per cent from a 2009 low in early March and has climbed for 11 weeks in a row in the longest winning streak in four years.
"Valuations have become high, but people are buying because they may be left out otherwise," D.D. Sharma, vice president at Anand Rathi Securities, said.
The BSE index ended up 150.61 points at 13,887.15, with gainers and losers evenly matched. Trading was choppy with the index falling 0.9 per cent at one stage.
Brokerages and investment houses polled by Reuters expected the benchmark to reach 15,750 by the end of December, gaining another 13 per cent.
"There are so many desperate buyers because nobody is betting on the market going down. You will see people buying at every dip from now," Sharma said.
Energy giant Reliance Industries, private-sector lender ICICI Bank and infrastructure firm Larsen & Toubro led the market higher after a lower start.
Reliance, which has the biggest weight in the main index, rose 3.1 per cent to 2,183.10 rupees, while private-sector lender ICICI gained 4.5 per cent to 702.80 rupees.
Larsen & Toubro climbed 4.7 per cent to 1,301.40 rupees.
The market has largely been powered by foreign funds, which have pumped about $5 billion into the market in the past two months, including more than $1 billion in this week.
Outsourcers Tata Consultancy and Wipro, which get most of their revenue from overseas, fell about 2 per cent as the rupee climbed past 47 to a dollar to its highest since December.
The rupee is set to extend its gains in the remainder of 2009 after rising sharply this week following the ruling Congress-led coalition's decisive victory in the elections, a Reuters poll showed.
Asian shares eased after a drop on Wall Street overnight on fears the United States, with its increasing budget deficit and weakened economy could lose its AAA rating.
Japan's Nikkei dropped 0.4 per cent, while MSCI's measure of other Asian markets edged down 0.02 per cent.
European shares were higher after falling more than 2 per cent in the previous session. The FTSEurofirst 300 index of top European shares was up 0.4 per cent at 1117 GMT.
Turnover declines
RIL, Reliance Capital May 2009 futures at premium
Nifty May 2009 futures were at 4248, at a premium of 9.50 points over the spot closing of 4238.50. Turnover in NSE's futures & options (F&O) segment declined to Rs 68152.6 crore from Rs 71702.09 crore on Thursday, 21 May 2009.
Reliance Industries (RIL) May 2009 futures were at a premium at Rs 2191.30 compared to the spot closing of Rs 2185.75.
Reliance Capital May 2009 futures were at premium at Rs 905.10 compared to the spot closing of Rs 903.30.
ICICI Bank May 2009 futures were at a discount at Rs 701.90 compared to the spot closing of Rs 702.65.
In the cash market, the S&P CNX Nifty rose 27.60 points or 0.66% at 4238.50.
Friday, May 22, 2009
BSE Bulk Deals to Watch - May 22 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
22/5/2009 521070 ALOK INDUSTR SURESHKUMAR BHIKAMCHAND JAIN HUF S 2863816 18.31
22/5/2009 531223 ANJANI SYNTH RAKESH NIRANJANLAL AGARWAL S 60000 22.00
22/5/2009 530355 ASIAN OILFIE HITESHSHASHIKANTJHAVERI B 77132 61.05
22/5/2009 532493 ASTRA MICRO JMP SECURITIES PVT LTD B 409676 76.50
22/5/2009 531733 BAFNA SPINNI VINODPUKHRAJJAIN S 208300 1.80
22/5/2009 531719 BHAGIR CHE I SSVV AGRO FARMS PRIVATE LIMITED B 50500 50.92
22/5/2009 531719 BHAGIR CHE I VIJAYALAKSHMI INS AND PEST LTD S 101573 50.17
22/5/2009 590076 CAMSON BIO GIRISHKULKARNI B 130648 37.29
22/5/2009 590076 CAMSON BIO GRAND SLAM INVESTMENT PVT LTD S 200000 37.19
22/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 318131 5.06
22/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD S 167356 5.05
22/5/2009 532760 DEEP INDS AMRABATHI INVESTRA PVT LTD B 158722 97.35
22/5/2009 508860 DIAMANT INV VISHANDAS PARWANI B 6500 90.55
22/5/2009 508860 DIAMANT INV JITESH PARWANI B 6500 90.55
22/5/2009 508860 DIAMANT INV MANAKCHAND JAIN HUF S 13000 90.55
22/5/2009 532876 EVERONN SYS OPG SECURITIES P LTD B 93087 304.30
22/5/2009 532876 EVERONN SYS OPG SECURITIES P LTD S 93087 304.23
22/5/2009 522017 FLUIDOMAT LT KUNAL JAIN B 200000 15.50
22/5/2009 522017 FLUIDOMAT LT INDUSTRIAL FINANCE CORPORATION OF INDIA S 200000 15.50
22/5/2009 530945 GANGOTRI I&S TRI BUSINESS ASSOC PVT LTD B 50000 16.06
22/5/2009 532857 GLORY POLY UMESH DHAN SINGH B 87950 25.78
22/5/2009 532857 GLORY POLY UMESH DHAN SINGH S 87950 25.58
22/5/2009 532857 GLORY POLY INTEGRAL VINIMAY PRIVATE LTD S 101714 24.77
22/5/2009 532857 GLORY POLY MAVI BUSINESS VENTURE LTD S 107557 26.05
22/5/2009 530655 GOOD LUCK ST UNITED INDIA INSURANCE COMPANY LTD. B 20000 165.00
22/5/2009 530655 GOOD LUCK ST UNITED INDIA INSURANCE CO. LTD. B 25000 165.00
22/5/2009 524164 IOL CHEM PH HETALCHETANMEHTA S 289367 95.41
22/5/2009 532081 K SERA SERA BASMATI SECURITIES PVT LTD B 371517 10.61
22/5/2009 532081 K SERA SERA S V ENTERPRISES B 956401 10.64
22/5/2009 532081 K SERA SERA ALKA INDIA LIMITED S 893417 10.58
22/5/2009 532081 K SERA SERA S V ENTERPRISES S 955401 10.57
22/5/2009 590003 KARUR VYSYA-PMS INDEA CAPITAL PTE LIMITED A/C INDEA ABSOLUTE RETURN FUND B 243000 297.50
22/5/2009 590003 KARUR VYSYA-PMS INDEA CAPITAL PTE LIMITED A/C INDEA ABSOLUTE RETURN FUND S 243000 297.50
22/5/2009 500304 NIIT LTD OPG SECURITIES P LTD B 1638670 47.04
22/5/2009 500304 NIIT LTD OPG SECURITIES P LTD S 1638670 47.12
22/5/2009 504058 NIPPO BATT DAIWA SECURITIES SMBC CO LIMITED S 26811 315.36
22/5/2009 532854 NITIN FIRE MUKUND SHETH HUF S 80000 275.99
22/5/2009 526747 P G FOILS LT TIRUMALA IRONS PVT LTD S 200412 25.31
22/5/2009 508941 PANASON CAR DAIWA SECURITIES SMBC CO LIMITED S 30000 107.79
22/5/2009 531769 PFL INFOTECH SARLAPANALALSHAH S 41150 3.77
22/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD B 141261 1010.44
22/5/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD S 141261 1011.66
22/5/2009 526753 ROSELABS LTD JAGDISHKUMAR AMRUTLAL AKHANI B 60195 10.55
22/5/2009 526753 ROSELABS LTD ZAMEERPAWANKUMARAGRAWAL S 70000 10.54
22/5/2009 514412 SARUP TANNER CHEVVUSUBBAREDDY S 39189 39.42
22/5/2009 500376 SATYAM COMP TRANSGLOBAL SECURITIES LTD. B 4922061 51.81
22/5/2009 500376 SATYAM COMP TRANSGLOBAL SECURITIES LTD. S 4924061 51.79
22/5/2009 500285 SPICEJET LTD JMP SECURITIES PVT LTD B 1432295 21.33
22/5/2009 512048 SPLASH MEDIA SHREEGOPALNATHMALKABRA B 10000 41.21
22/5/2009 512048 SPLASH MEDIA KIRIT V DAVE S 18204 41.09
22/5/2009 530419 SUMEDH FISCA MANOJ DUA HUF B 35854 8.90
22/5/2009 530419 SUMEDH FISCA RAJESH ROSS CHANDRAN S 35754 8.90
22/5/2009 531390 UPSURGE INVS KIRIT V DAVE S 65000 6.14
NSE Bulk Deals to Watch - May 22 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-MAY-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,2991019,18.88,-
22-MAY-2009,CHAMBLFERT,Chambal Fertilizers Ltd.,PACE FINANCIAL SERVICES,BUY,2083220,62.06,-
22-MAY-2009,EMCO,Emco Limited,MUTHA SARLA SHANTILAL,BUY,420724,77.00,-
22-MAY-2009,EVERONN,Everonn Systems India Lim,BHARAT SECURITIES PVT LTD,BUY,92232,297.94,-
22-MAY-2009,EVERONN,Everonn Systems India Lim,GANES BAZAR M/S,BUY,99551,298.20,-
22-MAY-2009,EVERONN,Everonn Systems India Lim,INDEA ABSOLUTE RETURN FUND,BUY,77000,296.19,-
22-MAY-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,BUY,92779,297.92,-
22-MAY-2009,FSL,Firstsource Solutions Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2886137,23.71,-
22-MAY-2009,GISOLUTION,GI Engineering Solutions,SUNIL N KRISHNANI,BUY,1,5.45,-
22-MAY-2009,GLORY,Glory Polyfilms Limited,SWARAJ SHARES & SEC PVT. LTD.,BUY,103845,24.98,-
22-MAY-2009,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,3879368,42.86,-
22-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8636499,20.39,-
22-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,1089479,10.61,-
22-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,AMBIT SECURITIES BROKING PVT. LTD.,BUY,2545173,36.38,-
22-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,BUY,3993464,36.70,-
22-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,JAYPEE CAPITAL SERVICES LTD.,BUY,2465224,36.86,-
22-MAY-2009,NIITLTD,NIIT Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,913461,45.31,-
22-MAY-2009,NIITLTD,NIIT Limited,FRANKLIN PRIMA FUND,BUY,1338840,47.02,-
22-MAY-2009,NOIDATOLL,Noida Toll Bridge Company,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1468745,38.23,-
22-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,BUY,117273,1005.39,-
22-MAY-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,87517,1006.11,-
22-MAY-2009,RIIL,Reliance Indl Infra Ltd,PRB SECURITIES PRIVATE LTD.,BUY,82499,1013.64,-
22-MAY-2009,ROLTA,Rolta India Ltd.,OM INVESTMENTS,BUY,1030720,115.20,-
22-MAY-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,5015401,51.74,-
22-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1895525,20.64,-
22-MAY-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,2816472,18.93,-
22-MAY-2009,CHAMBLFERT,Chambal Fertilizers Ltd.,PACE FINANCIAL SERVICES,SELL,1999880,61.96,-
22-MAY-2009,DSKULKARNI,DS Kulkarni Dev. Ltd.,BNP PARIBAS ARBITRAGE,SELL,172498,49.70,-
22-MAY-2009,EMCO,Emco Limited,PRAVIN SUWALAL BAFNA,SELL,420424,77.00,-
22-MAY-2009,EVERONN,Everonn Systems India Lim,BHARAT SECURITIES PVT LTD,SELL,92232,298.38,-
22-MAY-2009,EVERONN,Everonn Systems India Lim,GANES BAZAR M/S,SELL,99551,297.91,-
22-MAY-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,SELL,92779,298.45,-
22-MAY-2009,FSL,Firstsource Solutions Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2786137,23.82,-
22-MAY-2009,GISOLUTION,GI Engineering Solutions,SUNIL N KRISHNANI,SELL,50001,5.38,-
22-MAY-2009,GLORY,Glory Polyfilms Limited,SWARAJ SHARES & SEC PVT. LTD.,SELL,103845,25.14,-
22-MAY-2009,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,3784808,42.88,-
22-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8109413,20.38,-
22-MAY-2009,KSERAPRO,K Sera Sera Productions L,ALKA INDIA LIMITED,SELL,1184000,10.58,-
22-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,600029,10.59,-
22-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,AMBIT SECURITIES BROKING PVT. LTD.,SELL,2537051,36.51,-
22-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,SELL,3993464,36.73,-
22-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,JAYPEE CAPITAL SERVICES LTD.,SELL,2466232,36.64,-
22-MAY-2009,NIITLTD,NIIT Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,913461,45.79,-
22-MAY-2009,NITINFIRE,Nitin Fire Protection Ind,NIRMIT FINVEST & PROPERTY PVT. LTD.,SELL,77000,281.75,-
22-MAY-2009,NOIDATOLL,Noida Toll Bridge Company,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1452345,38.31,-
22-MAY-2009,PSL,PSL Limited,KMUK A/C SANSTONE CAPITAL INDIA MASTER FUND LTD,SELL,245914,120.33,-
22-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,SELL,117273,1006.26,-
22-MAY-2009,RIIL,Reliance Indl Infra Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,87517,1006.74,-
22-MAY-2009,RIIL,Reliance Indl Infra Ltd,PRB SECURITIES PRIVATE LTD.,SELL,84898,1011.18,-
22-MAY-2009,ROLTA,Rolta India Ltd.,OM INVESTMENTS,SELL,1030720,115.27,-
22-MAY-2009,SATYAMCOMP,Satyam Computers Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,5015401,51.83,-
22-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1893525,20.66,-
Post Market Commentary - May 22 2009
Markets rolled its volatile journey towards northward to close with gains on firm cues from European markets along with positive US index futures. However, lower Asian stocks took beating on the domestic bourses during mid session. Further, stocks slashed losses and bounced back on hopes of economic reforms by the new UPA government. The come back of UPA government barring Left parties, raised hopes that the long-awaited reforms may finally take place and consequently will help the economy spring back from the slowdown.
The market today had gap down opening mirroring negative cues from the markets all over the world. The Asian markets were lower and the US stock markets on Thursday closed in red on the back of disappointing economic data and of downgrading of the UK economy to negative from stable by Standard & Poor. Further, Indian benchmark indices gained some ground on support of buying in key stocks. During mid session, market again slipped into red, though it managed to reduce losses and recovered later. After exhibiting volatility during the trading, finally market managed to hold its gains and ended above previous session’s closing. BSE Sensex ended above 13,800 level and NSE Nifty closed above 4,200 level. From the sectoral front, mainly Capital Goods, Bank, Pharma, Oil & Gas, IT and Power stocks supported the buying sentiments. Mid Cap and Small Cap stocks also followed the same trend. However, most of the selling was seen in Consumer Durable, Auto, Realty and Metal, stocks.
Among the Sensex pack 15 stocks ended in green territory and 15 in red. The market breadth indicating the overall health of the market remained positive as 2139 stocks closed in green while 595 stocks closed in red and 49 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 150.61 points at 13,887.15 and NSE Nifty ended up by 27.60 points at 4,238.50. BSE Mid Caps and Small Caps closed with gains of 81.81 and 170.63 points at 4,755.68 and 5,513.16 respectively. The BSE Sensex touched intraday high of 13,936.93 and intraday low of 13,611.30.
Gainers from the BSE Sensex pack are L&T Ltd (4.73%), ICICI Bank (4.54%), JP Reliance (3.13%), NTPC Ltd (1.93%), Sun Pharma (1.59%), Infosys Tech (1.11%), HDFC (1.09%), SBI (1.01%) and Reliance Infra (0.97%).
Losers from the BSE Sensex pack are Sterlite Industries (4.32%), M&M Ltd (3.57%), Tata Motors (3.29%), ONGC Ltd (2.74%), Hindalco (2.53%), DLF Ltd (2.34%), TCS Ltd (2.27%) and Grasim Industries (2.20%).
On the global markets front the Asian markets which opened before the Indian market, ended mostly lower tracking Wall Street losses overnight. There were concerns of the US losing its AAA rating and along with worries about the strength of the economic recovery in China. Shanghai Composite, Hang Seng, Nikkei 225 and Seoul Composite ended lower by 13.02, 136.97, 38.34 and 17.90 points at 2,597.60, 17,062.52, 9,225.81 and 1,403.75 respectively. However Straits Times index gained 34.30 points at 2,245.27.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 53.73 points at 4,954.40 and in London FTSE 100 is trading higher by 35.98 points at 4,381.45.
The BSE Capital Goods index closed with increase of (2.90%) or 313.29 points at 11,108.25 on expectations of increased infrastructure spending by the Congress-led UPA government to increase growth. Scrips that gained are Praj Industries (12.11%), SKF India (8.37%), Everest Kanto (7.82%), Lakshmi MA W (7.65%) and Aiaengineer (5.81%).
The BSE Bank stocks ended higher by (1.8%) or 138.33 points to close at 7,827.56 on hopes that the UPA government will follow financial sector reforms. Major gainers are Karnataka Bank (14.14%), IDBI Bank (4.60%), ICICI Bank (4.54%), Kotak Bank (4.19%) and Axis Bank (3.78%).
The BSE Pharma index advanced by (1.77%) or 58.58 points to close at 3,377.31. Main gainers are Wockhardt Ltd (8.76%), Glenmark Pharma (8.57%), IPCA Lab (7.77%), Biocon Ltd (7.63%) and Opto Circuit (6.01%).
The BSE Oil & Gas ended up by (1.32%) or 127.54 points at 9,814.23. Gainers are Reliance (3.13%), Reliance Pet (2.91%), RNRL (2.35%), Cairn Ind (0.73%) and BPCL (0.67%).
The BSE IT index gained (1.06%) or 29.61 points to close at 2,829.93. Gainers are NIIT Ltd (23%), Tech Mahindra (13.93%), Aptech Ltd (13.27%), Mphasis Ltd (11.37%) and Moser Bayer (10.87%).
The BSE Consumer Durable index lost (1.13%) or 28.61 points to close at 2,507.79. Titan Ind (5.13%), Rajesh Export (1.03%) and Videocon Ind (0.62%) ended in negative territory.
Bharti Airtel gained 0.80%. The company is set to launch a low-cost online computer powered by Microsoft and Nivio. The Airtel Net PC is a plug-and-play online computer, including a 15-inch LCD monitor, keyboard, mouse and Nivio companion (which enables the PC to connect to a backend Linux-run server for storage and applications).
NTPC Ltd ended up by 1.93%. The Company has posted a net profit after tax of Rs 21133.50 million for the quarter ended March 31, 2009 as compared to Rs 13394.80 million for the quarter ended March 31, 2008.
Tata Steel closed down by 0.72%. The company at last has got the prospecting licence (PL) from the Jharkhand government for the Ankua iron ore mines.
Ranbaxy Laboratories Ltd lost 1.23%. The company has acquired trademarks, product dossiers and marketing rights from Ochoa Laboratories Ltd (Ochoa) for its entire range of Dermatological and Lidrstyle products.
Federal Bank ended lower by 8.39%. The Bank has posted a net profit of Rs 1141.70 million for the quarter ended March 31, 2009 as compared to Rs 1028.60 million for the quarter ended March 31, 2008. Total Income has increased from Rs 8417.90 million for the quarter ended March 31, 2008 to Rs 10162.80 million for the quarter ended March 31, 2009.
Derivatives: Markets expected to remain range bond with downward bias
Consistent profit booking through out the next week can be expected although there won't be a steeper correction.
The market opened this week on 18th May 2009 cheering the UPA alliances thumping victory in the Lok Sabha election. A clear mandate for the Congress-led United Progressive Alliance (UPA) in Lok Sabha election send stocks surging with trading on the bourses halted for the day at about 11:55 IST. For the first time in the history of the stock markets trading was halted because the market-wide circuit was applied due to a solid surge. Earlier, there have been instances when trading was halted when market-wide circuit filters were applied due to a market crash. This was much anticipated after the kind of number of seats the Congress has managed to win, since this will ensure that the government need not have to rely on the Left parties to form the government. This will enable the newly elected government to go ahead with various reforms, which was other wise consistently toppled by the left allies.
In a matter of a few seconds after the opening bell, the Sensex and the Nifty had breached the 15 per cent circuit barrier set by the exchanges, the Sensex gaining 1790 points and the Nifty 532. Trading was halted for two hours till 11.55 a.m. With in seconds of resumption of trade at 11.55 a.m., the second circuit breaker had to be applied as the indices went on to breach the 20-per cent level. The Sensex closed at 14,284 with its highest ever single-day gain of 2,110 points or 17.34 per cent, while the Nifty gained 652 or 17.7 per cent, to close at 4323.
But the bad news was that on this day the volumes were very narrow and the retail investors hardly participated in the gain. The combined volume in the bourses was Rs 3,103 crore (Both NSE and BSE cash and future and options). So the gain in the index was just a number, which might serve as a sentiment improver. Nothing more can be inferred from this. Before the market opened for trading on Monday the Singapore exchange, SGX Nifty Futures were trading up more than 11%. Now this is a fundamental err which has happened before. The price of the future of an index is based on the underlying index price. Before the underlying or any of the components of the underlying starts trading how can the future price be determined is a seriously debatable issue. Ideally the market consolidates after such a kind of rally, however this has not seen happening since the market rose without much volume. As a result the index would hover around this level until new trend either way would emerge. Consistent profit booking through out the next week can be expected although there won't be a steeper correction.
The S&P CNX Nifty for the full week ended May 22 surged surged 565.90 points to close at 4237.55. The market ended the week with a healthy 36.65 points higher as compared to the previous trading session.
In the domestic futures & options market the Nifty future contract remained at a premium to the underlying through out the week and it closed the week with a 10.45 points premium to the underlying. During the initial 2 days of the week the Nifty near month contract added significant open interest (OI), however after that it started shedding OI. The average volume during the current series till date was Rs 56,518.28 crore and the volume during the current week was Rs 63,802.08 crore as the volume considerably increased after the days when the market hit upper circuit level.
On 22nd May the Nifty May Open Interest (OI) shed 32.88 lakh shares and the total OI in Nifty May expiry stood at 3.02 crore shares. The mid month Nifty contract however added 34.03 lakh shares in OI and its total OI stood at 76.09 lakh shares.
During the previous week there was some activity in the Nifty 4000 strike call indicating that the market could easily cross this level on Monday as the market opens for trade. Now after the index hit the circuit limit on Monday, new OI were added in call strikes ranging from 4300 to 4900 strikes. Now these were call writing done at these levels and the trend continued through out the week indicating that the market has several strong resistances to cross if it has to maintain the upward momentum. On the other hand during these days the Nifty put strike ranging from 4000 to 4500 witnessed addition of OI due to aggressive put buying at these levels. Both these signs indicate bearish scenario as the market participants expects the market to consolidate at these levels. The option action on 22nd May was mixed. However as mentioned earlier, the market may not go into a complete profit booking mode as nobody has made profit. Had there been enough volume or had there been market wide participation on Monday we could have expected some correction. There would be intermittent profit booking, but that won't be substantial. Thus the market may remain flat until the expectations are translated into material developments and until the real economy improves. Fundamentally the Indian market looks expensive compared to the emerging market peers.
The Nifty 4300 strike call witnessed huge activity with fresh call being bought at this strike. The OI of 4300-strike call increased 4.60 lakh shares and stood at 26.53 lakh shares on 22nd May 2009. The open interest in the 4200 and 4500 strike call also increased to 3.24 lakh shares and 1.68 lakh shares whereas on the last day of the week the 4300 strike put added 1.97 lakh shares in OI.
The index put call ratio fell to 0.87 on 22nd May 2009 as compared to 1.21 during the previous trading session, whereas the stock put call ratio fell to 0.29 as compared to 0.35 during the previous session. Thus the market wide put call ratio was 0.85 as compared to 1.17 on 21st May 2009. The PCR indicates overbought scenario
The top ten contracts contributed to around 30% of the total traded volume in Futures on individual securities. RELIANCE was the most active future contracts on individual securities traded today with 30681 contracts and ICICIBANK was the next most active futures contracts with 28390 contracts being traded. Reliance OI fell by 5.68 lakh shares and the total OI was 72.46 lakh shares, whereas ICICI Bank OI fell to 1.47 crore shares. DLF OI fell by 22.56 lakh shares to 1.68 crore shares.
The market would remain range bond with a strong resistance at 4450-4500 levels. The expectation that is being built from the election outcome is an over reaction. This cannot be considered as a beginning of another bull market as for that to happen the global real economy has to improve. The expectations have to be translated into material outcome. The market discounts the good news as well as the bad news, but often it misses the reversals.
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