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Thursday, May 28, 2009
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.
Pre Session Commentary- May 28 2009
Today domestic markets are likely to open negative as the US markets closed in red and the other Asian markets are also trading in the southward. The trading across broader level could be choppy amidst weak cues from other markets and also the expiry of the F&O today. Investors would trade cautiously to withstand the bearish cues from other markets across the world. The opening of the European markets may further guide the domestic sentiments as well.
On Wednesday, the domestic markets closed with whopping gains. The markets opened with phenomenal positive gap on the back of strong positive cues from the US and Asian markets. As the trading progressed, broader level buying reinforced the sentiments resulting huge gains in front line stocks and consequently the bench mark indices. 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, rate sensitive sectors like Realty and Bankex spurred with gains of 6.09% and 5.42% respectively. Sectors like Power, PSU, Metal and CG inclined by 4.89%, 4.71%, 4.67% and 4.24% respectively. Mid cap and Small cap stocks also were also in the lime light due to broader level buying as they inclined by 3.67% and 3.37% respectively. We expect the markets to be trading volatility.
The BSE Sensex closed gained by 520.41 points at 14,109.64 and NSE Nifty ended with a gain of 159.35 points at 4,276.05. BSE Mid Caps and Small Caps closed with gains of 173.28 points and 189.08 points at 4,897.37 and 5,797.74 respectively. The BSE Sensex touched intraday high of 14,122.78 and intraday low of 13,780.41.
On Wednesday, the US Markets closed in red. After a phenomenal rally in the previous trading session, the day started with a choppy trade on the back of mixed cues from corporate. Further as the trading session progressed the concerns of high treasury yield, which could complicate an economic recovery, prompted selling pressure. There was news that General Motors has offered a $27 billion bond exchange, however this could not support the market sentiments. On the other hand better than expected earnings report from the corporate helped bringing in mixed trading in the early trading session. 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. That further pushed the yield of 10-year note to 3.7% to a fresh 2009 high. The US light crude oil for June delivery inclined by 1.6% to settle at $63.45 a barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed low by 173.47 points at 8,300.02, the NASDAQ Composite (RIXF) index declined by 19.35 points to close at 1,731.08 and the S&P 500 (SPX) lost 17.27 points to close at 893.06.
Indian ADRs ended mixed. In technology sector, Patni Computers closed down by (0.88%) while Infosys closed up by (0.62%) and followed by Wipro that gained (0.72%). In banking sector HDFC Bank fell by (0.78%) While ICICI Bank gained by (0.21%). In telecommunication sector, MTNL gained enormously by (10.97% While Tata Communication lost (5.26%). However, Sterlite Industries galloped by (6.73%).
Today major stock markets in Asia are trading negative. Hang Seng and Shanghai markets are closed today. However Japan''s Nikkei is trading low by 7.85 points at 9,430.92, Strait Times is low by 20.63 points at 2,285.45 Seoul Composite is also low by 7.77 points at 1,354.25 respectively.
On Wednesday, the partially convertible rupee closed at 47.70/71 per dollar, 0.38% stronger than it previous close at 47.88/90. The rupee gained strength on the back phenomenal surge in local stock markets.
On BSE, total number of shares traded were 70.60 Crore and total turnover stood at Rs 6,932.67 Crore. On NSE, total number of shares traded was 118.26 Crore and total turnover was Rs 206.33 Crore.
Top traded volumes on NSE Nifty – Unitech with 57311447 shares, Idea Cellular with 42227245 shares, Suzlon Energy with 31167714 shares, DLF with 19358577 shares, followed by Reliance Comm with 16337134 shares.
On NSE Future and Options, total number of contracts traded in index futures was 880361 with a total turnover of Rs 18,216.98 Crore. Along with this total number of contracts traded in stock futures were 662829 with a total turnover of Rs 33,935.38 Crore. Total numbers of contracts for index options were 1389547 with a total turnover of Rs 29,435.69 Crore and total numbers of contracts for stock options were 38066 and notional turnover was Rs 1,976.83 Crore.
Today, Nifty would have a support at 4,156 and resistance at 4,305 and BSE Sensex has support at 13,798 and resistance at 14,238.
Bullion metals end mixed
Gold stays steady while silver shines
Precious metals ended mixed on Wednesday, 27 May, 2009 at Comex. Gold ended almost flat while silver gained. Gold stayed steady due to the rising dollar and the stronger than expected housing data.
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 Wednesday, Comex Gold for June delivery rose $0.2 (0.006%) to close at $953.5 an ounce on the New York Mercantile Exchange. Earlier during the day, it fell to a low of $946.6 but also rose to a high of $959.6. Last week, gold ended higher by 3%. Year to date, gold prices are higher by 9.7%.
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 (8%) since then.
On Wednesday, Comex silver futures for July delivery rose 26.5 cents (1.8%) at $14.865 an ounce. Year to date, silver has climbed 30.2% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the U.S. dollar index, rose 0.4%. The greenback advanced against most of its major rivals as a mixed batch of U.S. housing data and worries that rising interest rates might limit an economic recovery.
The Federal Agency reported on Wednesday, 27 May, for April, home prices fell 0.5% in the first quarter of the year and were down 7.3% in the past year. The FHFA price index measures sales of the same homes over time, and is therefore not influenced by a different mix of homes sold in a period as the median sales price is.
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 50 (0.34%) at Rs 14,622 per 10 grams. Prices rose to a high of Rs 14,707 per 10 grams and fell to a low of Rs 14,491 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 416 (1.8%) higher at Rs 23,165/Kg. Prices opened at Rs 22,650/kg and rose to a high of Rs 23,347/Kg during the day's trading.
Crude shoots up
Strong housing report increases hopes of global recovery
Crude oil prices rose substantially higher on Wednesday, 27 May 2009. Prices rose on hopes of global economic recovery.
On Wednesday, crude-oil futures for light sweet crude for June delivery closed at $63.45/barrel (higher by $1 or 1.6%). 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. For the month of February, crude prices had ended higher by 1.5%.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 52% since then. Year to date, in 2009, crude prices are higher by 31.3%. On a yearly basis, crude prices are lower by 45%.
In its latest annual report, EIA reported 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.
The Federal Agency reported on Wednesday, 27 May, that home prices fell 0.5% in the first quarter of the year, a much smaller pace of decline than in the final three months of 2008. It was down 7.3% in the past year. The FHFA price index measures sales of the same homes over time, and is therefore not influenced by a different mix of homes sold in a period as the median sales price is.
Also at the Nymex on Wednesday, June-reformulated gasoline rose 3.39 cents, or 2.1%, to $1.8917 a gallon, while June heating oil gained 1.64 cents, or 1.1%, to $1.5617 a gallon.
Natural gas for June delivery rose slightly to $3.537 per million British thermal units.
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 3,017/barrel, higher by Rs 75 (2.5%) against previous day's close. Natural gas for June delivery closed at Rs 173.8/mmbtu, higher by Rs 1.2/mmbtu (0.7%)
Market may open lower on weak global cues
The key benchmark indices may slide tracking weak global cues and on profit taking after the recent solid surge. However, volatility may remain high ahead of the expiry of May 2009 futures and options (F&O) contract today, 28 May 2009.
The Sensex is up 4,462.33 points or 46.25% in calendar year 2009to 14,109.64 on Wednesday, 27 May 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 5,949.24 points or 72.9%.
Asian stocks fell today, led by banks and mining companies, after Australia & New Zealand Banking Group Ltd. sold shares and metal prices declined. Key benchmark indices in Japan, South Korea, Singapore fell by between 0.08% to 1.8%.
The US markets slid on Wednesday, 27 May 2009 after a spike in Treasury yields spurred concerns that the government's efforts to reduce interest rates would fail. The yield on the benchmark 10-year note rose above 3.7% to a fresh 2009 high.
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.
Back home, team Manmohan is finally in place. After three days and several rounds of brainstorming, the Prime Minister and Sonia Gandhi finalised a team of 78 at around noon on Wednesday, clearing the way for the second stage of formation which will see no less than 59 ministers take oath of office today .
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. Fourteen will take oath Thursday morning along with 45 ministers of state, seven of whom will hold independent charge.
Former chief ministers Vilasrao Deshmukh, Vir Bhadra Singh and Farooq Abdullah were among the 14 politicians who were named as Cabinet ministers in the second list released on Wednesday.
DMK leaders Dayanidhi Maran, A Raja and M K Azhagiri will join the Manmohan Singh government as Cabinet ministers too. The list of Cabinet ministers also includes Mallikarjun Kharge, Kumari Selja, Subod Kant Sahay, M S Gill, G K Vasan, P K Bansal, Mukul Vasnik and Kantilal Bhuria.
As many as 45 politicians will join the government as Ministers of State. NCP leader Praful Patel and Congress leaders Prithviraj Chauhan, Sriprakash Jaiswal, Salman Khursheed, Dinsha Patel, Jairam Ramesh and Krishna Tirath will be Ministers of State with independent charge.
The notable omissions in the list of cabinet ministers are H.R. Bhardwaj, Shivraj Patil, Arjun Singh, Sis Ram Ola and P R Kyndiah.
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.
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 bloc led by the Hindu-nationalist 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
Trade with caution
The market is likely to remain volatile ahead of derivatives expiry for May series and weak global markets may put pressure on domestic indices in early trades. However, presence of strong bullish sentiment may help the market to turn positive. The Nifty could test higher levels at 4325 and may dip around 4225, while the Sensex has a likely support at 13950 and may face resistance at 14250.
US indices ended weak on Wednesday, a sharp rise in Treasury yields added to jitters over a looming bankruptcy for General Motors. The Nasdaq slipping by 19 points to close at 1748 amid selling in technology stocks and while the broader Dow Jones end 173 points lower at 8300.
Indian ADRs had a mixed outing on US bourses. VSNL, Rediff ,Patni Computer, Dr Reddy, HDFC Bank and Patni Computers dropped around 1-5% each. While, MTNL gained 10.97% while Infosys, Wipro, Tata Motors and ICICI Bank were up around 1% each.
The Nymex light crude oil for July delivery shed $1 at $63.45 a barrel. In the commodity segment, the Comex gold for August series gained by 10 cents to settle at $955.20 an ounce.
Daily News Roundup - May 28 2009
RIL strikes two gas reserves of estimated 20 trillion cubic feet (BS)
Axiata (formerly Telekom Malaysia) mulls open offer to raise stake in Idea (BS)
Swiss Re, the world's second-largest reinsurer, is in talks with Religare Enterprises to form a joint venture to launch a health insurance company in India. (ET)
Infosys eyes US$250mn deals from existing customer British Petroleum. (ET)
Escorts is working on restructuring plan, which includes clean-up of books, launching product and increasing margins. (ET)
Government has evolved a new subsidy-sharing formula to rescue HPCL. (ET)
Tata group is close to finalizing succession plans for Tata Motors and Tata Steel, Prakash telang to be MD of Tata Motors and HM Nerurkar to be the new MD of Tata Steel. (ET)
Tatas to raise US$1bn for the realty arm. (ET)
Cairn India to start production from its Rajasthan fields by next week. (ET)
Tata Motors to extend JLR bridge loan tenure. (ET)
Essar Oil to step up refining capacity to 1mn barrels a day. (ET)
Tata Realty and Infrastructure, a closely-held unit of Tata Sons, plans to invest Rs200bn in core sector projects (BS)
ONGC shelves plans to build a new 15mn ton refinery adjacent to its subsidiary MRPL (BS)
Novartis may revise open offer price to buy back an additional stake of up to 39% in the Indian subsidiary (BS)
GMR ties-up funds for its 1,050MW thermal power project in Orissa (BL)
Corporation Bank to raise Rs10bn in FY10 (BS)
Jaiprakash Associated Ltd receives High Court approval for merger of four group companies with itself (BS)
MRF lifts lockout at its Tamil Nadu factory (BS)
IVRCL Infra gets Rs3bn orders from the Bihar Government for construction-related work (FE)
Simplex Projects has received construction orders worth Rs4bn from various state governments (BS)
Prajay Engineering to increase its authorized share capital (BL)
Godfrey Phillips plans national roll-out (BL)
Hindustan Copper to sell concentrate after the closure of one of its two smelters (BL)
Dena Bank raises Rs1.25bn through perpetual bonds (BS)
UCO Bank has put on hold its plans to raise Rs4.5bn through a FPO (BS)
Gammon Infrastructure has bagged an order worth Rs8.6bn for Godavari Bridge Project. (FE)
Grasim Industries has suspended operation at its viscose staple fibre unit at Nagda in Madhya Pradesh till monsoons. (FE)
SEBI is considering a proposal to ease fund raising rules for Infrastructure companies. (ET)
Nine infrastructure projects worth over Rs700bn have achieved financial closure in the past three months (BS)
Textile ministry to seek cabinet approval for Rs32bn debt waiver scheme for handloom weavers. (ET)
India’s PC shipments rise 7% sequentially in the first quarter of 2009 (BS)
Global air passenger and cargo demand declined by 3.1% and 21.7% respectively in the month of April (BS)
Twist to the global tale!
What separates the winners from the losers is how a person reacts to each new twist of fate.
The twists and turns of the market continue unabated and often irrationally. If a US-led global rally was said to be the main driving force behind Wednesday’s surge, today it could be the basis of a weak start. The overnight fall in the US market coupled with indecisive cues from Asian markets could dampen sentiment at start. Trading will turn volatile given the F&O expiry today.
Bajaj Holding, Corp Bank and Indusind Bank will be excluded from the F&O segment post July. This is in addition to the 53 stocks which will be excluded post the June expiry.
No other immediate catalysts for now besides the GDP numbers tomorrow. The Union budget and Q1 results will be the next events that could have a bearing on the sentiment. Till then, the market’s direction will hinge on daily newsflow. We are in a phase where every big rally will see some profit taking while fresh buying will come in at lower levels.
Asian stock markets open for trading are mostly in the red. Markets in Hong Kong, China and Taiwan are shut for public holidays. Banks led European markets higher for a third straight session. Brazilian and Mexican stock indices have risen to new highs for 2009.
Meanwhile, the difference in yields between Treasury two- and 10-year notes widened to a record on concern surging sales of US debt will overwhelm the Federal Reserve’s efforts to keep borrowing costs low. The so-called yield curve steepened to 2.75%, surpassing the previous record of 2.74% set on Aug. 13, 2003. Yields on 10-year notes have risen more than 100 basis points since Fed officials said in March they would buy up to $300 billion of U. debt over six months.
Results Today: Action Construction Equipment, Bajaj Electricals, Chennai Petro, Dalmia Cement, Gokaldas Exports, GMDC, Ipca Labs, Karur Vysya Bank, L&T, M&M, Nagarjuna Construction, Sangam India, SAIL, Swaraj Mazda, Tata Chemicals, Tata Power and V Guard.
US stock benchmarks erased some of the previous day's gains on Wednesday as concerns over the fate of auto major GM and a jump in long-term borrowing costs raised concerns that the Obama regime's efforts to reduce interest rates will fail. Monsanto Co.’s disappointing forecast triggered a drop in commodity producers.
The Dow Jones Industrial Average fell 173 points, ending the day 2% lower, at 8,300. The S&P 500 index lost 17 points, or 1.9%, to 1,747. The Nasdaq Composite index slid 1.1%, giving up 19 points, at 893.
US stocks had traded mixed for most of the session as concerns that GM will not be able to avoid bankruptcy overshadowed an encouraging housing report. But the selloff gained momentum in the afternoon as the yield on the benchmark 10-year bond jumped to a six-month high.
Shares of energy producers fell even as the price of oil rose above $63 per barrel. Technology stocks, which had led gainers for most of the day, also ended lower.
Treasury prices fell, with the yield on the benchmark 10-year bond rising to 3.71% - it's highest since mid-November. It stood at 3.51% late on Tuesday.
Treasurys sold off shortly after the government said it received relatively healthy demand for Wednesday's $35 billion worth of 5-year notes. The increase raised concerns that mortgage rates, which are tied to the 10-year yield, could head higher and stifle a recovery in the housing market. Many analysts also worry that the record amounts of debt coming to the market could overwhelm demand for bonds as the government expands already massive budget deficits.
GM confirmed reports that bondholders rejected an offer from the company to trade $27 billion of debt for equity stakes, making it much more likely that the auto giant will declare bankruptcy sooner rather than later. The company faces a June 1 deadline to win concessions from its union, creditors and other parties or be forced into bankruptcy by the US Treasury Department, which is funding it's operations. Shares fell 19%.
Sales of existing homes increased 2.9% in April to 4.86 million homes sold, up from a downwardly revised figure of 4.55 million in March, according to the National Association of Realtors. April sales were slightly ahead of expectations. Analysts had forecast a rate of 4.66 million units. But sales are still off 3.5% from the 4.85 million homes sold 12 months ago.
Wednesday's housing data followed a report released on Tuesday that showed that the drop in home prices deepened during the first three months of the year. Separately, a survey showed that business economists expect the recession to end this year. Almost three out of four survey respondents believe the recession will end by the third quarter of 2009, the report said.
The FDIC said that the number of banks on its so-called "problem bank" list jumped to 305 during the first three months of the year, up from 252 in the fourth quarter of last year. This is the highest number of troubled institutions since 1994.
Shares of Bank of America rose 1% after the company said it was well on its way towards raising the nearly $34 billion in capital that government regulators said it needs to buffer against future loan losses.
Monsanto, the world's largest seed company, said it expects 2009 fiscal-year results to be at the low end of its earnings forecast. The company said stronger-than-expected competition in the herbicides business prompted the warning. Shares fell 6%.
Office supplies retailer Staples reported a one-third drop in quarterly profit to $147 million, or 20 cents per share, but still managed to beat analyst expectations. Excluding restructuring expenses, Staples reported earnings of 22 cents per share, one cent ahead of the analyst consensus estimate. The stock fell 1.7%.
In currency trading, the dollar rose against the euro and the yen. It slipped against the pound, with the U.K. currency rising above $1.60.
NYMEX oil for July delivery was rose $1 to settle at $63.45 a barrel. Saudi Oil Minister Ali al-Naimi said on Wednesday that the global economy was capable of managing with oil as high as $75 to $80 a barrel.
COMEX gold for August delivery closed at 953.30 an ounce, unchanged from Tuesday.
Across the Atlantic, European shares rose for a third straight session, with banks rising sharply as data continued to give investors hope that the global economy could be past the worst. The pan-European Dow Jones Stoxx 600 index advanced 0.7% to 210.48.
The French CAC-40 index rose 0.7% to 3,294.86, Germany's DAX 30 index gained 0.3% to 5,000.77 and the UK's FTSE 100 inched 0.1% higher to 4,416.23.
Indian markets ended with outstanding gains on Wednesday as the BSE Sensex shut shop above the 14,000 and the NSE Nifty ended above the 4,250 levels. It was a terrific rally with the heavyweights participating as well. Index bellwethers like ONGC, DLF and ICICI Bank rallied between 6-9%.
Key indices started with a positive gap up tracking strong cues from the US and the Asian markets. US stocks climbed on Tuesday, with the Dow gaining nearly 200 points, spurred by a strong reading on consumer confidence. In Asia as well, the Hang Seng index in Hong Kong rose over 5%.
Markets also gained strength after the country’s finance minister, Pranab Mukherjee said, that the Government will have to focus on implementing and strengthening its infrastructure investments. He also added, we need to seize the opportunity presented by the current circumstances for pushing long pending reform measures which include measures in the area of financial sector and real economy.
The Sensex rallied 520 points or 3.8% to close at 14,019 after touching a high of 14,123 and a low of 13,780. The index had opened at 13,780 against the previous close of 13,589.
The NSE Nifty gained 159 points or 3.8% to shut shop at 4,276.
The advance decline ratio stood at 7:1.
Shares of the Sugar companies were under pressure after the government banned new futures contracts for the commodity. The ban on new contracts and on taking new positions in existing contracts will remain until Dec. 31, said the Forward Markets Commission spokesman, Anupam Mishra.
Bajaj Hindusthan slipped 1.5%, Renuka Sugar fell 2%, Sakhti Sugars declined 3% and Balrampur Chini fell 3.5%.
The textile sector was in demand Arvind Ltd rallied 19%, Alok Industries 14%, BRFL surged 14% and Century Textile advanced 10%.
The media counters also hogged the limelight on Wednesday. Among the top gainers were, TV today up 19%, TV 18 up 14%, NDTV up 8%, Zee News up 5% and Zee Entertainment 4.5%.
The ADAG stocks also were in momentum, Reliance Infra surged 15%, Adlabs advanced 5%, RCom was up 4.3%, RNRL surged 6%, Reliance Capital rallied 7.5%, RPower shot up 12.5%.
Among the BSE Sectoral indices BSE Realty index was the top gainer adding 6.1%, followed by the BSE Bankex index up 5.2%, BSE Power index up 5%, BSE Metal index up 4.6% and BSE PSU index up 4.3%.
The BSE Mid-Cap index surged 3.7% and BSE Small-Cap index gained 3.4%.
In the Sensex, Reliance Infra, Sterlite Industries, DLF, ONGC, Grasim, Ranbaxy, ICICI Bank and JP Associates ended in the green today. However, among the major losers were ACC, Bharti and ITC.
Outside the frontline indices, the top gainers included Bhushan Steel, GMDC, Neyveli Lignite, Hind Copper, Aban, Videocon Industries, Welspun Gujarat and GTL Infra.
Among the big losers in the broader market were Tata Communication, Balrampur Chini, Spice Tele, Renuka Sugar, Bajaj Holding, Castrol India and Lupin.
Shares of ONGC rose over 9.5% to Rs1108 after reports stated that the government may double the price of natural gas. Government may double the administered price of natural gas to US$4.2 per mn British thermal units, added reports. The scrip touched an intra-day high of Rs1118.7 and a low of Rs1025 and recorded volumes of over 0.6mn shares on BSE.
Shares of IVRCL Infra surged by over 6% to Rs288 after the company’s Water Division bagged order worth Rs2.99bn from the Government of Bihar, Public Health Engineering Department. The scrip touched an intra-day high of Rs293 and a low of Rs278 and recorded volumes of over 0.8mn shares on BSE.
Shares of Reliance Power gained by 12% to Rs178 after reports stated that the company may earn Rs40bn from carbon credit sales. The scrip touched an intra-day high of Rs183 and a low of Rs163 and recorded volumes of over 6.3mn shares on BSE.
Shares of RCom surged by over 4% to Rs304 after the company announced that it received shareholders approval for the demerger of its optic fibre division and subsequent merger with wholly-owned subsidiary Reliance Infratel. The scrip touched an intra-day high of Rs308 and a low of Rs292 and recorded volumes of over 5.9mn shares on BSE.
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