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Friday, May 29, 2009
Satyam to downsize operations, close offices
A handful of the 105 offices and 30 delivery centres that Satyam Computer Services has worldwide may soon cease to exist.
The Hyderabad-based company, recently acquired by Tech Mahindra, is evaluating options to downsize operations at its overseas development centres and terminate lease contracts for offices and other properties.
By consolidating its offices and delivery infrastructure, Satyam will be able to up capacity utilisation and also reduce overhead costs, two persons in the knowledge of the development told Business Line.
“The concept of global delivery centres is good but all delivery centres and offices will be right-sized both in terms of people and physical infrastructure,” one of them said.
Resurrection Plan
This review of operations is part of Operation Phoenix, Tech Mahindra’s plan of resurrecting Satyam.
Satyam has seven development centres in China, Germany, Brazil, Egypt and Malaysia, which act as near-shore destinations for getting work done in the same time zone as places such as the US and the UK.
A spokesperson for Satyam refused to comment on the news.
In April, Satyamites on bench in the US were asked to quit and return to India.
Satyam has already pruned its sales force across the globe.
However, recent news reports indicate that it plans to increase the sales team by 20 per cent. This could not be verified independently.
Another official said that Satyam is likely to consolidate sales operations in the US as a section of customers based there has severed ties with the company. The company has 14 offices in the country.
Apart from its 10,000 excess employees, Satyam is believed to have 20,000 spare seats in India across the 23 delivery centres.
“We have identified several rented premises whose lease will be terminated to provide sizeable savings. This space is anyway in excess and was invested based on anticipated growth,” Mr A. S. Murthy, Chief Executive Officer of Satyam, told staff in a recent email.
High-profile exodus
Meanwhile, the exodus of high-profile officials from Satyam continues
Those who have quit include Mr Virender Agarwal, Business Head of India, the Middle-East and the Asia-Pacific regions; Mr Hetzel Folden, head of the strategic deals group; Mr Naresh Jhangiani, human resource head of business process outsourcing, and Mr Deepak Nangia, head of the Australian region.
Ms Archana Muthappa, India-based spokesperson for Satyam, too has put in her papers.
Last week, Mr Vineet Nayyar, CEO of Tech Mahindra, had said Satyam has excess staff of 10,000
via BL
Crude tops $64
Prices surge as energy department reports unexpected drop inc rude inventories
Crude oil prices rose substantially higher on Thursday, 28 May 2009. Prices rose for the fourth consecutive session as energy department reported unexpected drop in crude inventories for last week. Market was anticipating a buildup in crude inventories.
On Thursday, crude-oil futures for light sweet crude for June delivery closed at $64.59/barrel (higher by $1.14 or 1.7%). Last week, crude ended higher by 8.2%.
Crude ended April higher by 2.9%. Previously, March trading ended up 10.9%. It rallied 11.3% in the first quarter. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 56% since then. Year to date, in 2009, crude prices are higher by 33%. On a yearly basis, crude prices are lower by 42%.
The energy department reported today that crude inventories declined by 5.4 million barrels in the week ended 22 May, 2009. Market was expecting stockpiles to show an increase of 1.8 million barrels. U.S. refineries ran at 85.1% of their operable capacity last week, up sharply from 81.8% in the prior week.
The EIA also reported that gasoline inventories fell by 600,000 barrels last week. Distillate stockpiles, which include heating oil and diesel, rose 300,000 barrels last week.
Gasoline production averaged nearly 9.4 million barrels a day last week, up from 8.7 million barrels in the week ended 15 May, 2009 as the nation entered into the post-Memorial Day driving season.
In its latest annual report, EIA reported yesterday, on international outlook for energy that global oil demand will grow to 91 million barrels a day in 2015 and 107 million barrels a day in 2030. Global oil supply will rise to 106.6 million barrels a day by 2030. The EIA also said natural-gas consumption will increase to 153 trillion cubic feet in 2030. The Energy Information Administration predicted in a newly released report that oil prices will rise to $110 in 2015 and $130 in 2030.
OPEC, in its latest meeting, decided to keep production quotas unchanged, in line with expectations. The cartel, which accounts for about one-third of the world's oil production, decided to leave production levels unchanged at today's meeting in Vienna.
Also at the Nymex on Thursday, June-dated reformulated gasoline rose 0.2% to $1.8955 a gallon, while June heating oil gained 2% to $1.5927 a gallon.
Natural gas for July delivery jumped 7% to reach $3.888 per million British thermal units. EIA also reported today that U.S. natural-gas inventories rose 106 billion cubic feet in the week ended 22 May.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for June delivery closed at Rs 3,087/barrel, higher by Rs 70 (2.3%) against previous day's close. Natural gas for June delivery closed at Rs 188.3/mmbtu, higher by Rs 14.6/mmbtu (8.4%).
Bullion metals shine
Gold manages modest jump while silver adds substantial glaze
Precious metals ended higher on Thursday, 28 May, 2009 at Comex. Prices ended higher as couple of encouraging economic reports hit the wires today thereby increasing inflation concerns. Economic reports on durable goods and housing – both checked in better than expected.
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 and also vice versa.
On Thursday, Comex Gold for June delivery rose $8.2 (0.9%) to close at $961.5 an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 3%. Year to date, gold prices are higher by 10.6%.
For the month of April, gold had lost 3.7%, the second consecutive monthly drop. For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7%) since then.
On Thursday, Comex silver futures for July delivery rose 29.5 cents (2.1%) at $15.16 an ounce. Year to date, silver has climbed 32.3% this year. For 2008, silver had lost 24%.
The Commerce Department reported on Thursday, 28 May, 2009 that U.S. new home sales rose 0.3% in April to a seasonally adjusted annual rate of 352,000. But the figure was well below the 365,000 pace expected.
In a separate report, The Commerce Department reported on Thursday, 28 May, 2009 that new orders for U.S made capital goods were much stronger than expected in April. Orders for durable goods rose 1.9% in April, pushed higher by new orders for primary metals, machinery and motor vehicles. It marked the largest gain in new orders since December 2007.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for June delivery closed higher by Rs 90 (0.61%) at Rs 14,712 per 10 grams. Prices rose to a high of Rs 14,759 per 10 grams and fell to a low of Rs 14,560 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 351 (1.51%) higher at Rs 23,516/Kg. Prices opened at Rs 23,113/kg and rose to a high of Rs 23,675/Kg during the day's trading.
Thursday, May 28, 2009
BSE Bulk Deals to Watch - May 28 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
28/5/2009 530499 A K CAPITAL FIRSTRAND (IRELAND) PUBLIC LIMITED COMPANY S 35000 205.97
28/5/2009 524412 AAREY DRUGS DAXABENVASANTKUMARSHAH B 39252 39.00
28/5/2009 524412 AAREY DRUGS MEHULNARENDRAGALA B 25000 41.10
28/5/2009 524412 AAREY DRUGS RESHMA MOGALRAO PAGARE B 25000 40.90
28/5/2009 524412 AAREY DRUGS DAXABENVASANTKUMARSHAH S 47400 39.85
28/5/2009 524412 AAREY DRUGS VARSHABENNAVINBHAISONI S 26470 42.15
28/5/2009 524412 AAREY DRUGS MEHULNARENDRAGALA S 25000 39.72
28/5/2009 532919 ALLIED COMP LATIN MANHARLAL SEC.PVT.LTD. B 1650225 0.59
28/5/2009 521070 ALOK INDUSTR CITIGROUPGLOBALMARKETSMAURITIUS PRIVATELIMITED S 2380000 24.41
28/5/2009 532981 ANU LABS STRUZZO CAPITAL SERVICES PVT L S 3024000 31.00
28/5/2009 532981 ANU LABS NAGESH SAYAJI RAO WALIMBE S 1007510 31.01
28/5/2009 532406 AVANTEL LTD* AVANTEL LIMITED B 160000 50.00
28/5/2009 532406 AVANTEL LTD* RAO D M S 47500 50.00
28/5/2009 505506 AXON INFOTEC DHANJIBHAIPUNJBHAIPATEL B 8039 15.56
28/5/2009 505506 AXON INFOTEC SUBHASHCHANDER S 8000 15.56
28/5/2009 531733 BAFNA SPINNI VINODPUKHRAJJAIN S 550000 2.14
28/5/2009 531719 BHAGIR CHE I VVSS ESTATES PRIVATE LIMITED B 50000 52.26
28/5/2009 531719 BHAGIR CHE I VVSS AGRO FARMS PRIVATE LIMITED B 50000 52.31
28/5/2009 531719 BHAGIR CHE I VIJAYALAKSHMI INS AND PEST LTD S 100000 52.28
28/5/2009 590076 CAMSON BIO ABHIJAT DEEPAK HOLDING PVT.LTD. B 100000 40.85
28/5/2009 590076 CAMSON BIO GRAND SLAM INVESTMENT PVT LTD S 50000 40.85
28/5/2009 590076 CAMSON BIO PRASHANT DESAI S 76575 40.85
28/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 738529 5.70
28/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD S 212822 5.69
28/5/2009 531682 CAT TECHNOL JMP SECURITIES PVT LTD S 314101 5.71
28/5/2009 531270 DAZZEL CONFI NILKANTHADEY B 100000 5.53
28/5/2009 531270 DAZZEL CONFI VIMALKUMARAGRAWAL S 70000 5.53
28/5/2009 531270 DAZZEL CONFI REKHA BHANDARI S 100000 5.53
28/5/2009 531270 DAZZEL CONFI SRIDEVI.MEDABALMI S 44634 5.52
28/5/2009 532876 EVERONN SYS OPG SECURITIES P LTD B 89676 344.59
28/5/2009 532876 EVERONN SYS OPG SECURITIES P LTD S 89676 344.92
28/5/2009 590024 FERT CHEM PUNEET SECURITIES PRIVATE LIMITED B 32530 43.73
28/5/2009 590024 FERT CHEM SAINATH HERBAL CARE MARKETING P.LTD B 35000 42.55
28/5/2009 590024 FERT CHEM SAINATH HERBAL CARE MARKETING P.LTD S 55000 44.66
28/5/2009 532022 FILAT FASH CHANDRESHCHANDRAKANTSHAH B 45700 100.59
28/5/2009 532022 FILAT FASH CHANDRESHCHANDRAKANTSHAH S 45700 98.81
28/5/2009 514386 GUJ COTEX MALSHEJ TRADING PRIVATE LIMITED S 21900 4.95
28/5/2009 504176 HIGH ENERGY DINESHCHHAJED B 5000 113.00
28/5/2009 504176 HIGH ENERGY JAISUKHRVORA B 5000 112.69
28/5/2009 504176 HIGH ENERGY SHEELA VIMAL JAIN B 13536 113.00
28/5/2009 504176 HIGH ENERGY PRAKASHMOHANLALMODI S 13500 113.00
28/5/2009 522059 INDAGE VIN RELIANCE CAPITAL LTD B 916000 83.85
28/5/2009 522059 INDAGE VIN SONATA INVESTMENTS LTD S 820000 84.00
28/5/2009 522059 INDAGE VIN ARISAIG PARTNERS (ASIA) PTE LTD S 477066 85.13
28/5/2009 516078 JUMBO BAG LT KRUPAL VIKRAMBHAI PATEL S 35458 30.38
28/5/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 61881 30.61
28/5/2009 524826 JUPITER BIOS ABN AMRO BANK NV S 142000 72.45
28/5/2009 524826 JUPITER BIOS HSBC BANK (MAURITIUS) LIMITED S 142014 72.84
28/5/2009 526209 K S OILS LTD BNP PARIBAS ARBITRAGE B 2000000 54.25
28/5/2009 526209 K S OILS LTD CITIGROUP VENTURE CAPITAL INTL GROWTH PARTNERSHIP MAURITIUS LIMIT S 8000000 54.33
28/5/2009 532081 K SERA SERA BASMATI SECURITIES PVT LTD B 702549 13.63
28/5/2009 532081 K SERA SERA EXCEL PAINTS PRIVATE LIMITED B 2939004 13.55
28/5/2009 532081 K SERA SERA JMP SECURITIES PVT LTD S 349358 13.29
28/5/2009 532081 K SERA SERA EXCEL PAINTS PRIVATE LIMITED S 2939004 13.58
28/5/2009 511131 KAMAN HSG MOHANKARNANI S 75600 32.32
28/5/2009 532724 MOUNT TRAD MAIR SECURITIES PRIVATE LIMI B 8983 100.18
28/5/2009 590011 MOVING PICTU-PMS CHANDRASHEKARJAYKISHANTHANVI B 304109 5.54
28/5/2009 590011 MOVING PICTU-PMS MAHEK INDUBHAI MEHTA HUF B 50000 5.75
28/5/2009 590011 MOVING PICTU-PMS CHANDRASHEKARJAYKISHANTHANVI S 304109 5.67
28/5/2009 590011 MOVING PICTU-PMS AMITOJ SINGH S 40000 5.60
28/5/2009 531287 NAT PLASTIC SUDERSHAN PARAKH B 35100 7.14
28/5/2009 531287 NAT PLASTIC ARIHANT STOCK BROKERS LTD S 35100 7.14
28/5/2009 590057 NORTHGATE TE AJAYJAYANTILALBAXI B 200100 42.75
28/5/2009 590057 NORTHGATE TE Naman Securities & Finance Pvt. Ltd. B 402717 42.52
28/5/2009 590057 NORTHGATE TE JMP SECURITIES PVT LTD B 398986 42.32
28/5/2009 590057 NORTHGATE TE BP FINTRADE PRIVATE LIMITED B 374019 42.48
28/5/2009 590057 NORTHGATE TE AJAYJAYANTILALBAXI S 200100 42.75
28/5/2009 590057 NORTHGATE TE Naman Securities & Finance Pvt. Ltd. S 396206 41.78
28/5/2009 590057 NORTHGATE TE JMP SECURITIES PVT LTD S 253986 42.17
28/5/2009 590057 NORTHGATE TE MERRILL LYNCH CAPITAL MARKET ESPANA SA SVB S 1000000 42.75
28/5/2009 590057 NORTHGATE TE BP FINTRADE PRIVATE LIMITED S 361447 42.46
28/5/2009 526747 P G FOILS LT MANOJ DUA HUF B 40000 25.42
28/5/2009 526747 P G FOILS LT PREM CABLES PVT LTD S 200000 24.91
28/5/2009 531769 PFL INFOTECH DHIRAJLAL V SANGHVI HUF B 22038 3.49
28/5/2009 532626 PONDY OXIDES ISF SECURITIES LIMITED B 68727 15.04
28/5/2009 532626 PONDY OXIDES VISHWAS SECURITIES LTD. B 76127 15.31
28/5/2009 532626 PONDY OXIDES VSB INVESTMENTS PVT LTD S 83000 15.07
28/5/2009 532626 PONDY OXIDES ISF SECURITIES LIMITED S 68727 15.04
28/5/2009 532626 PONDY OXIDES VISHWAS SECURITIES LTD. S 85462 15.27
28/5/2009 532791 PYRAMID SAIM BP FINTRADE PRIVATE LIMITED B 169773 25.64
28/5/2009 532791 PYRAMID SAIM COPTHALL MAURITIUS INVESTMENT LIMITED S 195000 25.72
28/5/2009 532791 PYRAMID SAIM BP FINTRADE PRIVATE LIMITED S 169768 25.79
28/5/2009 526753 ROSELABS LTD AABHASSHIVKUMARAGRAWAL S 75000 10.00
28/5/2009 526753 ROSELABS LTD AYUSHSHIVKUMARAGRAWAL S 150499 10.03
28/5/2009 526500 STR GRE WOO KILLOLSUBHASHBHAIRINGWALA S 25000 16.79
28/5/2009 526133 SUPERTEX IND HEMAL KETAN SHAH B 58025 45.76
28/5/2009 530155 TONIRA PHARM WALLFORT FINANCIAL SERVICES LTD S 45000 21.33
28/5/2009 531917 TWINSTA SO E MITESHVERSHIVORA B 153550 2.57
28/5/2009 531917 TWINSTA SO E VIJAY CHIMANLAL THAKKAR S 150000 2.57
28/5/2009 532360 VINTAGE CARD NARESHCHANDJAIN S 6754 26.15
NSE Bulk Deals to Watch - May 28 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
28-MAY-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,3118182,24.26,-
28-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,12114649,24.25,-
28-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,1291715,13.62,-
28-MAY-2009,MSKPROJ,MSK Projects (India) Limi,GATEWAY FINANCIAL SERVICES LIMITED,BUY,118845,74.66,-
28-MAY-2009,NICCO,Nicco Corporation Limited,SURESH KANMAL JAJOO,BUY,998440,7.70,-
28-MAY-2009,NORTHGATE,Northgate Technologies Li,AJAY BAXI,BUY,235506,42.53,-
28-MAY-2009,NORTHGATE,Northgate Technologies Li,BP FINTRADE PRIVATE LIMITED,BUY,176323,42.02,-
28-MAY-2009,NORTHGATE,Northgate Technologies Li,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,176284,42.29,-
28-MAY-2009,NORTHGATE,Northgate Technologies Li,SETU SECURITIES LTD,BUY,151277,42.07,-
28-MAY-2009,OILCOUNTUB,Oil Country Tubular Ltd,JAINEX SECURITIES PVT. LTD.,BUY,4577,62.50,-
28-MAY-2009,OILCOUNTUB,Oil Country Tubular Ltd,SURYANARAYANA KAMINENI,BUY,500000,61.44,-
28-MAY-2009,ORBITCORP,Orbit Corporation Limited,EVERLONE TRADING PVT. LTD.,BUY,205775,156.92,-
28-MAY-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,BUY,90074,85.82,-
28-MAY-2009,SKMEGGPROD,SKM Egg Products Export,AMRIT LAL JAIN,BUY,142433,24.15,-
28-MAY-2009,SKMEGGPROD,SKM Egg Products Export,PANDYA PRAGNESH ROHITKUMAR,BUY,130050,24.09,-
28-MAY-2009,VINCARDS,Vintage Cards & Creations,NARESH CHAND JAIN,BUY,548,27.63,-
28-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1208185,22.75,-
28-MAY-2009,ALOKTEXT,Alok Industries Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED.,SELL,2620000,24.45,-
28-MAY-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,3228454,24.30,-
28-MAY-2009,ALOKTEXT,Alok Industries Limited,PASHA FINANCE PVT LTD,SELL,2670684,23.99,-
28-MAY-2009,EMAMILTD,Emami Limited,VIDEOCON INDUSRTIES LTD.,SELL,400000,267.00,-
28-MAY-2009,ESCORTS,Escorts India Ltd.,SUNDARAM BNP PARIBAS TAX SAVER(OPEN ENDED) FUND,SELL,499815,62.51,-
28-MAY-2009,EVERONN,Everonn Systems India Lim,VIRMAC INVESTMENTS,SELL,92989,339.80,-
28-MAY-2009,GDL,Gateway Distriparks Limit,SEALAND TERMINALS PRIVATE LIMITED,SELL,1449000,83.71,-
28-MAY-2009,GLORY,Glory Polyfilms Limited,SAAKSHI SHARES PVT.LTD.,SELL,105000,27.35,-
28-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11164931,24.23,-
28-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,895116,13.69,-
28-MAY-2009,NICCO,Nicco Corporation Limited,RAPID ESTATES PRIVATE LIMITED,SELL,1000000,7.70,-
28-MAY-2009,NICCO,Nicco Corporation Limited,SURESH KANMAL JAJOO,SELL,319741,7.77,-
28-MAY-2009,NORTHGATE,Northgate Technologies Li,AJAY BAXI,SELL,200003,42.43,-
28-MAY-2009,NORTHGATE,Northgate Technologies Li,BP FINTRADE PRIVATE LIMITED,SELL,301379,42.37,-
28-MAY-2009,NORTHGATE,Northgate Technologies Li,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,294439,42.49,-
28-MAY-2009,NORTHGATE,Northgate Technologies Li,SETU SECURITIES LTD,SELL,189722,42.45,-
28-MAY-2009,OILCOUNTUB,Oil Country Tubular Ltd,JAINEX SECURITIES PVT. LTD.,SELL,370754,61.39,-
28-MAY-2009,ORBITCORP,Orbit Corporation Limited,JIGYASA PROPERTIES PRIVATE LIMITED,SELL,205775,156.92,-
28-MAY-2009,PSTL,Pyramid Saimira Theatre L,Copthall Mauritius Investment Ltd,SELL,302000,25.91,-
28-MAY-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,SELL,90074,85.69,-
28-MAY-2009,SELMCL,SEL Manufacturing Company,MAVI INVESTMENT FUND LTD DEUTSCHE BANK,SELL,100000,85.56,-
28-MAY-2009,SKMEGGPROD,SKM Egg Products Export,AMRIT LAL JAIN,SELL,79492,24.45,-
28-MAY-2009,SKMEGGPROD,SKM Egg Products Export,PANDYA PRAGNESH ROHITKUMAR,SELL,200952,24.34,-
28-MAY-2009,SUZLON,Suzlon Energy Limited,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,8496753,90.68,-
28-MAY-2009,VINCARDS,Vintage Cards & Creations,NARESH CHAND JAIN,SELL,4229,26.11,-
28-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1222415,22.78,-
Post Session Commentary - May 28 2009
The domestic market closed the session with decent gains on sustained buying across the sectoral indices. The volatility was high during the trading session due to the rollover of May 2009 contracts to June 2009 contracts in the futures and options segment. The rally was further supported by a statement from Finance Minister Pranab Mukherjee, that the government should push long pending reforms in the financial sector to boost the real economy growth. Further on the back of anticipations that there could be further rate cut from the RBI. Meanwhile the government is also not ruling out any stimulus package for particular sectors to deal with the impact of global economic slowdown. However, the wholesale price index remained unchanged at 0.61% in the 12 months to May 16, 2009, government data showed today, 28 May 2009.
The market opened the session with marginal gains but soon slipped into the negative territory on selective profit booking across the counters. The market soon recovered from the fall and kept on marching forward for most of the sessions but pared some of its gains in the afternoon session. However, less than expected weekly inflation figures lead the market to extend gains in the late hour of the session. Moreover, in the global arena, the US market closed in red on the back of mixed cues from corporate. There was news that General Motors has offered a $27 billion bond exchange, however this could not support the market sentiments. Besides, the auction of 5-year government notes carrying a 2.3% yield came with a solid bid-to-cover ratio of 2.3. The mortgage origination sellers took to hedge their positions and consequently pressured the long-end yield curve. However, benchmark indices gained strength during the session with BSE Sensex ended above 14,250 level and NSE Nifty above 4,337.10 mark. From sectoral front, investors on-loaded position across the sectors led by Metal, PSU, Bankex, Capital Goods and Realty index.
Among the Sensex pack 20 stocks ended in green territory and 10 in red. The market breadth indicating the overall health of the market remained firm as 1,738 stocks closed in positive while 1,020 stocks closed in negative and 54 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 186.37 points or 1.32% at 14,296.01 and NSE Nifty ended with gains of 61.05 points or 1.43% at 4,337.10. BSE Mid Caps and Small Caps closed with gains of 38.19 and 13.95 points at 4,935.56 and 5,811.69. The BSE Sensex touched intraday high of 14,377.23 and intraday low of 14,078.62.
Gainers from the BSE Sensex pack are Ranbaxy Labs (4.24%) followed by Sterlite Inds (3.59%), Bharti Airtel (3.42%), NTPC (2.80%), Tata Steel (2.77%), ICICI Bank (2.67%).
Losers from the BSE Sensex pack are Tata Motors (3.17%) along with Grasim Industries (2.80%), Wipro (2.68%), Reliance Communication (2.68%), Reliance Infra (1.34%) and Infosys (0.56%).
European markets which opened after the Indian market are trading in red. In Frankfurt the DAX index is trading lower by 1.32% at 4,934.53 and in London FTSE 100 is trading down by 1.35% at 4,356.83.
The BSE Metal index gained (2.76%) or 283.16 points to close at 10,549.95. Main gainers are NMDC (9.99%), SAIL (6.58%), JSW Steel (6.53%), Jai Corp (4.99%), Sterlite Industries (3.59%) and Tata Steel (2.77%).
The BSE Bankex index surged (1.81%) or 145.43 points at 8,162.73. Scrips that mostly gained are Allahabad Bank (8.87%), Indus Ind Bank (6.39%), IDBI Bank (3.60%), Kotak Bank (3.52%), ICICI Bank (2.67%) and SBI (2.14%).
The BSE Capital Goods index also ended higher by (1.74%) or 196.26 points at 11,448.72. ABB (3.56%), Siemens (3.21%), Jyoti Structure (2.99%), L&T (2.32%), BHEL (1.89%) and AIA Engineering (1.48%) ended in positive territory.
The BSE Realty index grew (1.74%) or 61.17 points to close at 3,577.94. Gainers are India Bull Real (10.56%), Anant Raj Ind (4.97%), Phoenix Mill (4.72%) and DLF (1.78%).
The BSE Power advanced (1.28%) or 35.73 points at 2,824.23. Gainers are GVK Power (3.48%), NTPC (2.80%), Power Grid (2.05%), Suzlon Energy (1.39%), Tata Power (0.88%) and Torent Power (0.70%).
The BSE Oil and Gas stocks gained (1.15%) or 114.52 points to close at 10,085.87. Gainers are ONGC (2.07%), RPL (1.35%), Reliance Industries (1.50%) and Gail India (0.69%).
The BSE Consumer Durables increased (0.87%) or 22.90 points at 2,663.48. Gainers are Titan Industries (2.46%), Gitanjali Gems (2.31%) and Bluestar (2.31%).
SAIL advanced 6.58% at Rs164.35. The Company has posted a net profit of Rs 14866.80 million for the quarter ended March 31, 2009 as compared to Rs 23767.60 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 138569.50 million for the quarter ended March 31, 2008 to Rs 125901.20 million for the quarter ended March 31, 2009.
L&T grew 2.32% at Rs1,341.80. The Company has posted a profit after tax of Rs 9985.20 million for the quarter ended March 31, 2009 as compared to Rs 9667.60 million for the quarter ended March 31, 2008. Total Income has increased from Rs 87372.10 million for the quarter ended March 31, 2008 to Rs 108357.90 million for the quarter ended March 31, 2009.
M&M surged 2.16% to Rs638.80. The Company has posted a net profit of Rs 4180.70 million for the quarter ended March 31, 2009 as compared to Rs 2211.00 million for the quarter ended March 31, 2008. Total Income has increased from Rs 31754.50 million for the quarter ended March 31, 2008 to Rs 37158.80 million for the quarter ended March 31, 2009.
Market belies expiry unwinding fears
The market displayed a positive trend almost for the entire session, despite expectations of unwinding of positions on the last day of the May series of derivative contracts. Inspite of weak Asian markets, the Sensex opened on a positive note but soon slipped into the red on selling pressure in heavyweights and health care stocks that dragged the market to its intra-day low of 14377. However, buying at lower levels by afternoon saw the Sensex pare its losses. The market remained range-bound thereafter, with a positive bias. However, the announcement of inflation numbers did little for the market despite the inflation (wholesale price index) for the week ended May 16, 2009 at 0.61% against the Bloomberg expectation of 0.69 % versus 0.61 % last week. Buoyancy in metal, especially in NMDC and SAIL, lifted the BSE Metal to its intra-day high of 10657. The Sensex bounced back towards the close, as short covering in heavyweights helped the index to recover and end the session at 14296, up 186 points. Nifty finally settled at 4337, up 61 points.
The breadth of the market was positive. Of the 2,811 stocks traded on the BSE, 1,740 stocks advanced, 1,020 stocks declined and 51 stocks ended unchanged. Among the 13sectoral indices on the BSE, the BSE Metal notched up gains of 2.76% at 10550 followed by the BSE PSU (up 2.34% at 8158), the BSE Bankex (up 1.81% at 8163) and the BSE CG (up 1.74% at 11449).
The heavyweights witnessed strong buying interest. Ranbaxy Laboratories soared 4.24% at Rs272.95, Sterlite Industries rose 3.59% at Rs612.35, Bharti Airtel was up 3.42% at Rs795.20, National Thermal Power Corporation shot up by 2.77% at Rs207.50, Tata Steel jumped 2.77% at Rs383.60, ICICI Bank added 2.67% at Rs729.50, Maruti Suzuki India gained 2.54% at Rs998.40, Larsen & Toubro moved up by 2.32% at Rs1,341.80 and Tata Consultancy Services was up 2.29% at Rs659.85. However, Tata Motors slipped 3.17% at Rs332.65, Grasim Industries lost 2.80% at Rs2,184.30, Wipro lost 2.68% at Rs368.40, Reliance Communications moved down 2.22% at Rs297.35 and Reliance Infrastructure declined 1.34% at Rs1,271.
Over 15.32 crore shares of Cals Refineries changed hands on the BSE followed by Ispat Industries (2.12 crore shares), KS Oils (1.83 crore shares), Alok Industries (1.68 crore shares) and Unitech (1.64 crore shares).
Value wise, Reliance Capital registered a turnover of Rs336 crore on the BSE followed by Reliance Industries (Rs222 crore), DLF (Rs220 crore), Indiabulls Real Estate (Rs212 crore) and Bharti Airtel (Rs204 crore).
RIL June 2009 futures at premium
Turnover surges
Nifty June 2009 futures were at 4,340, at a premium of 2.90 points as compared to the spot closing of 4,337.10. Turnover in NSE's futures & options (F&O) segment surged to Rs 90,315.67 crore from Rs 83,564.87 crore on Wednesday, 27 May 2009.
Rollover in the S&P Nifty futures was 52% from May 2009 contracts to June 2009 at the end of Wednesday (27 May 2009) trade. May 2009 derivatives contracts expired today.
Reliance Industries (RIL) June 2009 futures were at premium at 2,232.10 compared to the spot closing of 2,220.55.
Bharti Airtel June 2009 futures were at premium at 798 compared to the spot closing of 795.90.
Larsen & Toubro June 2009 futures were at discount at 1,336 compared to the spot closing of 1,345.70.
In the cash market, the S&P CNX Nifty rose 61.05 points or 1.43% at 4,337.10.
Nifty attains 8-month high as investors bet on economic reforms
Finance Minister Pranab Mukherjee's comments on Wednesday, 27 May 2009, that the government would take advantage of its political stability and push long-pending reforms boosted the bourses for the second day in a row. The S&P CNX Nifty attained its highest closing in more than eight months. But volatility was high as traders rolled over positions from May 2009 contracts to June 2009 contracts in the futures & options (F&O) segment. May 2009 derivatives contracts expired today, 28 May 2009.
The BSE 30-share Sensex jumped 186.37 points or 1.32%, off about 80 points from the day's high and up close 220 points from the day's low. The barometer index has risen 706.78 points or 5.2% in the last two trading sessions. Metal and banking stocks rose. IT stocks fell and index heavyweight Reliance Industries pared intraday gains.
The market was volatile. After opening higher, the market soon slipped into the red before bouncing back. The market extended gains in morning trade after Finance Minister Pranab Mukherjee during trading hours on Wednesday, 27 May 2009, said the government would take advantage of its political stability and push long-pending reforms.
The market pared gains in mid-morning trade after global rating agency Moody's Investors Service said India's credit rating may come under pressure if the government is not able to rein in a widening budget deficit. The market regained strength in early afternoon trade as inflation rose at a lower than expected rate. After extending gains, the market came off the higher level in mid-afternoon trade. Volatility was high in the last one hour of trade.
Rollover in the S&P Nifty futures was 52% from May 2009 contracts to June 2009 at the end of Wednesday (27 May 2009) trade. The rollover was 34% in Mini Nifty futures. Among individual stocks, substantial rollover has been witnessed in M&M, Bharat Forge, Hero Honda, Reliance Power and Sterlite Industries. Stocks where rollover has been low are Jaiprakash Associates, Kotak Mahindra Bank, Hindustan Construction, and Triveni Engineering
The wholesale price index rose 0.61% in the 12 months to 16 May 2009, matching the previous week's annual rise, government data showed today, 28 May 2009. The government, meanwhile, revised upwards the rate of inflation for the year through 21 March 2009 to 0.84% from 0.31%. Finance Minister Pranab Mukherjee on Wednesday said inflation is reasonably down and reviving growth will be the government's top priority.
Mukherjee during trading hours on Wednesday said that a sustained stimulus to economic growth is possible by next round of reforms. He said reviving growth momentum is a top priority for the government adding that fiscal prudence will also be kept in mind.
Mukherjee said the government will stick to fiscal deficit target of 5.5% of GDP in the current financial year that ends on March 2010 (FY 2010). He said the government is committed to fiscal consolidation in 2-3 years.
Mukherjee said the government will continue to step up spending this year to support growth, risking a wider budget deficit. Growth and employment are not possible without increased spending and borrowing, the Finance Minister said. The prophets of doom have been unduly focusing on increased public spending and a consequent increase in the fiscal deficit, Mukherjee said. "An early return to our recent growth performance will help us get back to our preferred path of fiscal prudence," he said.
The fiscal deficit jumped to an estimated 10.6% of the nation's gross domestic product in the year ended 31 March 2009. India's credit rating may come under pressure if the government is not able to rein in a widening budget deficit, Moody's Investors Service today, 28 May 2009, said. “The stable outlook on the ratings has recently faced growing pressure, mainly due to substantial deterioration in the fiscal position,” Aninda Mitra, a senior analyst at Moody's in Singapore, said in a report today. “Inability of the newly re- elected government to meaningfully adjust fiscal policies and push ahead with reforms could pressurize the foreign currency credit rating.”
Moody's Baa2 rating on India's long-term foreign debt is the second-lowest investment grade. The ranking is the highest in South Asia after Kazakhstan's, four levels below China's, two levels under Malaysia's and six levels above Pakistan's.
“If the newly re-elected government proves able to quickly outline and sustain a credible program for reducing consolidated deficits, then the sustainability prospects for general government debt would improve,” Moody's said in its report. “These trends could boost the outlook for the country's local currency credit ratings.”
The comments from Moody's today came after Fitch Ratings, which ranks India's debt BBB-, on 14 May 2009 said it expected the new government to step up spending to arrest slowing growth. That would widen India's national budget deficit, including state government finances, to more than 10% of GDP for a second year in a row, Fitch said.
According to analysts the new government should give priority to reforming the subsidy mechanism aimed at improving delivery mechanism while at the same time reducing costs. Analysts also say labour reforms are needed as a number of youngsters enter the job market.
The FM on Wednesday said he would be able to announce the full-budget for FY 2010 by the first week of July 2009 and try to get it approved by 31 July 2009. He said the common man will be the focus of the government policy.
Mukherjee said the industry and business have been hurt by high cost of finance but added that coordinated steps taken by central bank and government have stabilised the economy. He said the liquidity situation eased considerably adding that international capital flows have resumed.
The FM said he hoped banks would take advantage of the monetary policy and make cheap credit available. "One of the first steps I propose to take is to meet bankers and get them committed to a more benign plan of action," he said. His comments came in the backdrop of a newspaper report that state-run banks plan to cut lending rates by 100-150 basis points within the next fortnight after a finance ministry directive to lower interest rates in line with falling cost of funds.
In overseas markets, European stocks slipped as a surge in US Treasury yields fueled concerns about the US economy. Key benchmark indices in France, Germany and UK were down by between 0.94% to 1.11%.
Japanese stocks rose as a slightly weaker yen supported sentiment, making exports from Japan more competitive. The Nikkei rose 0.13%. In Seoul, the Kospi index moved between positive and negative zone. It was up 2.21%. But Singapore's Straits Times was down 0.57%. Markets in Hong Kong, China and Taiwan were closed for a holiday.
Trading in the US index futures indicated Dow could rise 30 points at the opening bell on Thursday, 28 May 2009.
US markets tumbled on Wednesday, 27 May 2009 after a spike in Treasury yields spurred concerns that the government's efforts to reduce interest rates would fail. In economic news, existing home sales for April 2009 came in at an annualized rate of 4.7 million, in line with expectations. There was some disappointment in the House Price Index for March 2009, which decreased 1.1% month-on-month. It was expected to increase 0.2%. The Dow fell 173.47 points, or 2.1%, to 8,300.02. The S&P 500 index fell 17.27 points, or 1.9%, to 893.06, and Nasdaq Composite Index slipped 19.35 points, or 1.1%, to 1,731.08.
US government bonds came under heavy pressure on Wednesday as investors worried about the ever-expanding amount of debt needed to fund a record $1.75 trillion budget deficit.
Closer home, President Pratibha Patil on Thursday administered the oath of office to 14 Cabinet ministers, 7 ministers of state with independent charge and 38 Minsters of State (MoS) in an elaborate ceremony at the Rashtrapati Bhavan. Former Maharashtra chief minister Vilasrao Deshmukh, DMK leader Dayanidhi Maran, A Raja, Mallikarjun Kharge, Kumari Selja, Subodh Kant Sahay, M S Gill, G K Vasan, Pawan Kumar Bansal, Mukul Wasnik, Kantilal Bhuria and MK Azhagiri were sworn in as Cabinet ministers.
Praful Patel, Prithviraj Chavan, Sriprakash Jaiswal, Salman Khursheed, Dinsha Patel, Jairam Ramesh and Krishna Tirath took oath as ministers of state with independent charge.
Srikant Jena, E Ahamed, Mullappally Ramachandran, V Narayanasamy, Jyotiraditya Scindia, D Purandeswari, K H Muniyappa, Panabaka Lakshmi, Namo Narain Meena, M M Pallam Raju, Saugata Ray, S S Palanimanickam, D Napoleon, S Jagathrakshakan, S Gandhiselvan, Preneet Kaur, Sachin Pilot, Shashi Tharoor, Bharatsinh Solanki, Tusharbhai Chaudhary, Arun Yadav, Prateek Prakash Patil, R P N Singh, Vincent Pala, Pradeep Jain and Agatha Sangma were sworn in ministers of state.
The 78-strong council of ministers includes 59 from the Congress and 19 from five allies: seven each from DMK and Trinamool Congress, three from Nationalist Congress Party (NCP) and one each from the Muslim League and National Conference. Nineteen cabinet ministers, including Trinamool Congress chief Mamata Banerjee and NCP's Sharad Pawar, were sworn in 22 May 2009.
Dr Manmohan Singh was on 22 May 2009 sworn-in as Prime Minister for a second consecutive term. A day after the swearing-in of the UPA government on Friday 22 May 2009, the Union cabinet met under the chairmanship of Prime Minister Manmohan Singh on Saturday 23 May 2009. The cabined took a decision to convene the Parliament session from 1 June to 9 June 2009. A meeting with leaders of various parties will be held in the first week of June 2009 for finalising the dates of the budget session, home minister P Chidambaram said after the cabinet meeting on Saturday. He said government is quite hopeful of passing the budget by 31 July 2009.
The Speaker's election would be held on 3 June 2009 and President Pratibha Patil will address the joint sitting on 4 June, the day Rajya Sabha will also be convened. This will be followed by the debate on motion of thanks. Explaining the process of passing the general budget, Chidambaram said this has to be completed by 31 July 2009 failing which a vote-on-account will have to be approved.
A comfortable victory for the Congress-led coalition government in election has raised expectations of a strong push for economic reforms by the government. Dr Manmohan Singh has reportedly prepared the broad contours of an economic revival plan to be taken up soon after the new government is formed, reports suggest. While recommendations to revive growth and ease the credit squeeze are likely to find a place in the plan, tax proposals are expected to be taken up as budget recommendations.
The telecom ministry has prioritised the much delayed auction of 3G airwaves and WiMAX spectrum. It has also prioritised introduction of a new spectrum policy.
The petroleum ministry has reportedly prepared a draft Cabinet note on a partial decontrol of petrol and diesel prices after which they will be linked to international movements.
The new government is also likely to pursue disinvestment of state-run undertakings, reports suggest. It remains to be seen whether the government undertakes privatisation of state-run firms.
Financial sector reforms are likely to get a push in the coming days, which were relegated to the back seat due to persistent opposition from the Left parties.
The Congress party-led coalition has the support of 322 lawmakers, Prime Minister-elect Manmohan Singh said on Wednesday, 20 May 2009, giving it a clear majority in a new government. Congress said it has support of 274 members of the 15th Lok Sabha. In addition, the Bahujan Samaj Party, the Samajwadi Party and the Rashtriya Janata Dal sent letters of support for a Manmohan Singh-led government directly to the President, taking the support base to 322.
The Congress-led UPA defied predictions of a tight election and was only about 11 seats short of an majority from the 543 seats at stake in the recently concluded Lok Sabha election. Congress' alliance took 261 seats, sweeping aside its nearest rival the Bharatiya Janata Party (BJP), which won only 159 combined. Congress, which alone won 205 seats, needs a handful of partners to reach the 272 seats needed to take power, and is expected to seek the support of more smaller parties or independents.
The BSE 30-share Sensex surged 186.37 points or 1.32% to 14,296.01, its highest closing since 19 May 2009. The Sensex gained 267.59 points at the day's high of 14,377.23 in mid-afternoon trade. At the day's low of 14,078.62, the Sensex fell 31.02 points in early trade.
The S&P CNX Nifty was up 61.05 points or 1.43% to 4,337.10, its highest closing since 10 September 2008.
Nifty June 2009 futures were at 4,340, at a premium of 2.90 points as compared to the spot closing of 4,337.10. Turnover in NSE's futures & options (F&O) segment surged to Rs 90,315.67 crore from Rs 83,564.87 crore on Wednesday, 27 May 2009.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1729 shares rose as compared with 1,020 that fell. A total of 56 shares remained unchanged.
The Sensex is up 4,648.70 points or 48.18% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6,135.61 points or 75.18%.
BSE clocked a turnover of Rs 6,892 crore, lower than Rs 6,932.67 crore on Wednesday, 27 May 2009
From the 30 share Sensex pack, 20 stocks rose and rest fell.
The BSE Mid-Cap index was up 0.78% and the BSE Small-Cap index was up 0.24%. However, both these indices underperformed the Sensex.
The BSE Metal index (up 2.76%), the BSE PSU index (up 2.34%), the BSE Bankex (up 1.81%), the BSE Capital Goods index (up 1.74%), the BSE Realty index (up 1.74%), outperformed the Sensex.
The BSE Healthcare index (down 0.4%), the BSE IT index (down 0.23%), the BSE FMCG index (down 0.2%), the BSE TECk index (up 0.29%), the BSE Auto index (up 0.6%), the BSE Consumer Durables index (up 0.87%), the BSE Oil & Gas index (up 1.15%), the BSE Power index (up 1.28%), underperfomed the Sensex.
Outsourcing focussed IT stocks dropped as rupee strengthened. India's second largest software services exporter by sales Infosys fell 0.56%. Its American depository receipt (ADR) rose 0.62% overnight. India's third largest software services exporter by sales Wipro fell 2.68%. Its ADR rose 0.72% overnight. But, India's largest software services exporter by sales TCS rose 2.29%.
Indian rupee reversed losses and was slightly stronger on Thursday as domestic shares gained fuelling hopes for capital inflows, but a sharper rise was prevented by the dollar's gains versus other majors overseas. The partially convertible rupee was at 47.69 per dollar, and stronger than its previous close of 47.70/71. A firm rupee negatively impacts operating margins of IT firms as they earn a lion's share of revenues from exports.
Bank stocks reversed early losses on expectations that the Congress-led UPA government will pursue financial sector reforms. India's largest private sector bank by net profit ICICI Bank rose 2.67%. Its American depository receipt (ADR) rose 0.21% on Wednesday, 27 May 2009. India's second largest private sector bank by net profit HDFC Bank rose 2%. Its ADR fell 0.78% overnight.
India's biggest bank in terms of branch network State Bank of India (SBI) rose 2.14%. As per reports, the Congress-led UPA government may go ahead on a plan to merge six associate banks with State Bank of India to create a Indian banking behemoth. The government may also re-introduce the State Bank of India (Amendment) Bill that will enable Centre to reduce its stake in SBI to 51% from current 59.41%. Meanwhile, bank is reportedly expected to lower prime lending rate in next few weeks.
India's biggest dedicated housing finance firm by operating income HDFC gained 0.41%. As per recent reports, HDFC is likely to cut deposit rates and follow it with a cut in lending rates.
With a decisive mandate, there are expectations that the UPA government may pursue financial sector reforms. There is likely to be some movement on passage of the Bill to amend the Insurance Act, 1938. Apart from raising the foreign investment ceiling to 49%, from 26% at present, the Bill had proposed to do away with the stipulation on Indian promoters having to mandatorily sell a part of their holdings after 10 years of operation.
There are two other Bills - for providing statutory backing to the pensions regulator and to amend the Banking Regulation Act which have been pending in Parliament for over five years, mainly due to the opposition from the Left parties. But now the Left is no longer an ally of the re-elected UPA, the Bills may finally be enacted.
The Pension Fund Regulatory & Development Authority Bill will allow the regulator to issue regulations, instead of the present system where it has to enter into agreements with service providers such as the fund managers. In addition, it will also help PFRDA regulate the pension products offered by life insurance companies. The new government may also announce tax benefits on investment in the New Pension Scheme, which will help make it attractive for investors, reports suggest
The amendments to the Banking Regulation Act will allow foreign investors to exercise voting rights in line with their shareholding. While the Reserve Bank of India has concerns on greater play for foreign banks, it will have no reservations in getting more powers for regulation of banks and supercession of borads, which are provided for in the Bill.
The government may also re-introduce the Micro-finance Development and Regulation Bill.
Metal stocks rose on strong domestic demand for metals. Tata Steel, JSW Steel and Sterlite Industries, rose by between 2.77% to 6.53%.
India's largest public sector steel maker by sales Steel Authority of India (Sail) rose 6.58% even as net profit fell 37.44% to Rs 1486.68 crore in Q4 March 2009 over Q4 March 2008.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 1.5% to Rs 2,245 on reports it has struck gas in two blocks (D3 and D9), with estimates putting the natural gas reserves at 20 trillion cubic feet (tcf). But the stock came off the day's high of Rs 2,245. Hardy Oil & Gas Plc has 10% stake each in the two blocks where RIL is the operator with 90% interest.
Analysts expect strong growth in RIL's bottom line in coming quarters from sale of gas which it started pumping last month from its deep-sea field off the east coast.
India's largest oil exploration firm by revenue Oil & Natural Gas Corp rose 2.07% extending yesterday's sharp surge triggered by a newspaper report that the government may double the price of natural gas. The government may double the administered price of natural gas to $4.2 per million British thermal units. The increase will benefit ONGC and Oil India which sell the fuel at prices fixed by the government, according to the report.
Capital goods stocks rose on expectations of increased infrastructure spending by the Congress-led UPA government to boost growth. Other capital goods stocks, ABB, Praj Industries Siemens and Punj Lloyd rose by between 0.1% to 3.56%.
India's largest construction & engineering firm by sales Larsen & Toubro rose 2.32% after company's net profit rose 3.28% to Rs 998.52 crore on 24.01% rise in total income to Rs 10835.79 crore in Q4 March 2009 over Q4 March 2008. The company announced the results during trading hours today.
Notwithstanding a slowdown in the Indian capital goods and infrastructure sectors, L&T's order intake rose 23% to Rs 51621 crore in the year ended March 2009 (FY 2009). The order book stood at Rs 70319 crore as on 31 March 2009, which is two times its revenue of Rs 34045 crore in FY 2009, giving a strong revenue visibility.
India's largest electric equipment maker by sales Bharat Heavy Electricals rose 1.89% as net profit rose 21.29% to Rs 1347.47 crore in Q4 March 2009 over Q4 March 2008. The company announced the results after trading hours on Wednesday, 27 May 2009
Reliance Infrastructure fell 1.34% on profit taking after the stock rose 14.79% yesterday. The board of Reliance Infrastructure on Sunday, 24 May 2009, approved a new preferential offer of 43 million warrants to the company's promoters, convertible at Rs 1,000 a share, cancelling the current offer of equal size which expires on 19 July 2009 and which carried a conversion price of Rs 1,822 a share. If fully exercised the promoters the Anil Dhirubhai Ambani group would raise their stake in the company to 48%, from 38% currently, at a price of Rs 4,300 crore (against over Rs 7,800 crore through the earlier one).
Some realty stocks rose on expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth. DLF, Anant Raj Industries,, Indiabulls Real Estate rose by between 1.78% to 10.56%.
In the last six weeks, three realty firms Unitech, DLF and Indiabulls Real Estate, have together raised Rs 8000 crore through qualified institutional placements (QIPs).
Some auto stocks gained on hopes the new government will treat auto sector as a priority sector and attend to some pressing concerns of the sector, mainly differential excise duty, lack of retail finance and lack of focus on infrastructure. Maruti Suzuki India, Bajaj Auto rose by between 2.54% to 4%.
India's largest tractor maker by sales Mahindra & Mahindra rose 2.16% after net profit jumped 89% to Rs 418.07 crore in Q4 March 2009 over Q4 March 2008.
Shipping stocks rose after the Baltic dry index rose 7.54% to 3,164 in London yesterday, 27 May 2009. Mercator Lines, Great Eastern Shipping Company, Essar Shipping Ports & Logistics, SEAMEC, Varun Shipping Company, Shipping Corporation of India, and Shreyas Shipping rose by between 0.55 to 5.69%.
healthcare stocks fell on profit taking after the recent gains triggered by hopes newly elected UPA government will give primary importance to healthcare segment and health of citizens. Lupin, Sun Pharmaceuticals Industries, Dr Reddy's Laboratories, Biocon, Wockhardt, fell by between 0.02% to 5.32%.
But, India's largest drugmaker by sales Ranbaxy Laboratories rose 4.24% extending yesterday's 7.14% rise. The stock had tumbled 8.36% on Tuesday on reports the firm could take a hit of as much as $50 million due to a delay in supplying a key ingredient to UK's AstraZeneca used to make anti-ulcer drug, Nexium.
The stock had surged 20.73% on Monday 25 May 2009 after its chief executive officer resigned on Sunday, 24 May 2009, as part of efforts to turn around the company. In a swift and unexpected move, Japanese drug maker Daiichi Sankyo on Sunday, 24 May 2009, took complete control of Ranbaxy Laboratories in which it had acquired 63.9% stake in June 2008 after all representatives of the former Indian promoter family resigned from the board. Following a board meeting on Sunday morning, former promoter Malvinder Mohan Singh, whose term was originally supposed to run till 2013, resigned as Chairman and Managing Director.
Besides Singh, two other Singh-family Board nominees, Sunil Godhwani and Balvinder Dhillon, also resigned. Tsutomu Une from Daiichi has been appointed chairman. Atul Sobti, who was originally nominated on the board by the former Indian promoters, has been appointed as CEO and MD for three years.
India's largest telecom player by sales Bharti Airtel galloped 3.42% on value buying after the stock fell 10.36% in preceding three sessions. On Monday, 25 May 2009, Bharti said it was in talks to buy 49% of Johannesburg-based MTN, the first step in a potential $23 billion merger. The deal may also see MTN, Africa's largest mobile-phone company, buy 36% of Bharti
Cals Refineries clocked the highest volume of 16.2 crore shares on BSE. Ispat Industries (2.12 crore shares), K S Oils (1.83 crore shares), Alok Industries (1.69 crore shares) and Unitech (1.64 crore shares) were the other volume toppers in that order.
Relaince Capital clocked the highest turnover of Rs 331.23 crore on BSE. Reliance Industries (Rs 227 crore), ICICI Bank (Rs 221.48 crore), DLF (Rs 221.16 crore) and Indiabulls Real Estate (Rs 220.20 crore) were the other turnover toppers in that order.
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