SGX Nifty Live Update - July 9 2009

4,077.5 +12.5

Turnover surges

NTPC July 2009 futures at discount

Nifty July 2009 futures were at 4064, at a discount of 14.90 points as compared to the spot closing of 4078.90. Turnover in NSE's futures & options (F&O) segment surged to Rs 66,588.76 crore from Rs 60,222.63 crore on Tuesday, 7 July 2009.

Bharat Heavy Electricals (Bhel) July 2009 futures were at a slight discount at 2045 compared to the spot closing of 2047.

NTPC July 2009 futures were at discount at 193.35 compared to the spot closing of 194.70.

Punj Lloyd July 2009 futures were near spot price at 183.45 compared to the spot closing of 183.80.

In the cash market, the S&P CNX Nifty lost 123.25 points or 2.93% at 4078.90.

Asian markets witness weak Wednesday

Hang Seng, Sensex lead the regional losses as investors turn cautious over the health of global economy

Stock market in Asian region remained weak on Wednesday, 8 July 2009, as investors tried to book some profits on renewed concerns over the state of global economy.

On Wall Street, stocks slipped once again pressured by slipping crude price. All ten sectors fell today at Wall Street. The worst performing areas were industrials, technology, energy and materials sectors. The defensive-oriented healthcare sector outperformed on a relative basis. The Dow Jones Industrial Average ended lower by 161 points at 8,163. The Nasdaq Composite Index, ended lower by 41 points at 1,746. S&P 500 ended lower by 18 points at 881.

In the commodity market, crude oil fell, poised for the longest losing streak since December, as equities slumped and an industry report showed an increase in U.S. fuel inventories.

According to the API report, crude oil inventories dropped 1.4 million barrels to 348.3 million. Stockpiles of distillate fuel, a category that includes heating oil and diesel, climbed 3.42 million barrels to 158 million, the highest since 1985. Gasoline supplies rose 767,000 barrels to 212.4 million last week. The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.

Crude oil for August delivery fell as much as $1.06, or 1.7%, to $61.87 a barrel on the New York Mercantile Exchange, the lowest intraday price since May 26. Oil was at $62.19 a barrel at 2:51 p.m. Singapore time.

Brent crude for August settlement declined as much as 93 cents, or 1.5 percent, to $62.30 a barrel on London’s ICE Futures Europe exchange. It was at $62.57 a barrel at 2:50 p.m. Singapore time. Yesterday, the contract fell 1.3 percent to $63.23, the lowest settlement price since May 27.

Gold fell for a third day in Asia as the dollar advanced against the euro and crude oil tumbled, reducing demand for the precious metal as a store of value. Gold for immediate delivery lost as much as 0.6 percent to $919.20 an ounce, the lowest since June 23, and traded at $919.45 an ounce at 2:29 p.m. in Singapore.

In the currency market, Yen and, to a lesser extent, dollar rise sharply today riding another round of risk aversion trades in the markets.

The Japanese yen strengthened against major currencies on Wednesday in Asia s investors sought the relative safety of the currency on concern the worldwide slump will be prolonged. The dollar fell for a third day against the yen on concern the greenback’s role as the world’s reserve currency will be questioned at a Group of Eight meeting starting today. The Japanese currencies were quoted at 94.5 against the US dollar.

The Hong Kong dollar was trading at HK$ 7.7505 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar fell almost 1 cent today after better than expected domestic economic data failed to kick-start a sluggish session depressed by offshore movements. At the local close, the Australian dollar was trading at $US0.7863, down from Tuesday's close of $US0.7960.

In Wellington trades, the New Zealand dollar drifted lower amid uncertainty about the global economic outlook and forthcoming corporate earnings in the United States. By evening the NZ dollar was buying US62.85c, down from US63.66c at 5pm yesterday. The range was US62.67c to US62.98c during the domestic session.

The South Korean won finished at 1,276.1 won to the U.S. dollar, down 3 won from Tuesday's close, as overseas investors reduced holdings of local shares.

The Taiwan dollar weakened further against the greenback. The Taiwan dollar fell against the US dollar as it was trading lower at NT$ 33.0360, down by NT$ 0.0370 from Tuesday’s close of NT$32.9890.

Coming back in equities, Asian stock markets were lower Wednesday, dragged by ongoing weakness in oil and metal prices, though the declines weren't as severe as those suffered on Wall Street.

In Japan, the stock market extended losses for sixth consecutive day, on tracking negative lead from Wall Street and weaker commodity prices, rekindled concern over the health of global economy. The market plummeted on speculation that corporate earnings are unlikely to improve amid a dearth of demand at home and abroad.

At the closing bell, the Nikkei 225 Stock Average index plummeted 227.04 points, or 2.35%, to 9,420.75, while the broader Topix index stumbled 20.59 points, or 2.3%, to 889.

On the economic front, the Cabinet Office said Japan’s machinery orders, a key leading barometer of the state of Asian demand and the region’s manufacturing sector, fell 3% in May from the previous month.

A separate Japanese report, the Ministry of Finance said the current-account surplus narrowed for a fourth month in May, adding to signs the global economy will take time to recover. The surplus shrank 34.3% from a year earlier to 1.302 trillion yen ($13.7 billion).

In Mainland China, stock index endured losses for second consecutive day, on tracking the weakness in global market on concerns over economic recovery. Banks shares dived on concern regulators will crack down on mortgage lending to cool growth in housing prices. The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, tumbled 0.28%, or 8.67 points, to 3,080.77, while the Shenzhen Component Index jumped 1.02%, or 126.14 points, to 12,488.58.

In Hong Kong, the g benchmark Index extended losses for third day in row, on tracking negative cues from Shanghai bourses and Wall Street overnight. Banks and financials plummeted on concern Chinese regulators will crack down on mortgage lending to cool growth in property prices.

Properties extended losses amid worries recent gains had outpaced profit expectations. Lower crude oil and metals prices taking a toll on commodity-linked stocks, while renewed doubts over global economic recovery weighed down export-related shares.

The Hang Seng Index melted 141.20 points, or 0.79%, to 17,721.07, while the Hang Seng China Enterprise Index retracted 100.96 points, or 0.95%, to 10,573.71.

In Australia, the stock market clawed back earlier losses to finish the session flat, snapping three days of loosing streak as investors chased for bargain among recently battered shares. Banks and properties spurted after positive consumer confidence data and home loan approvals. Australian consumer confidence jumped to the highest level in 19-months in July and number of loans issued for new housing increased in May by 2.2% over April.

At the closing bell, the benchmark S&P/ASX200 index edged up 1 point, or 0.03%, to 3,767.9, meanwhile the broader All Ordinaries shrank 1.8 points, or 0.05%, to 3,766.

On the economic front, the outcome of Westpac Banking Corporation and Melbourne Institute survey statement said that the Australian consumer confidence jumped to the highest level in 19- months in July with the sentiment index rising 9.3% from June to 109.4.

The Australian Bureau of Statistics revealed that number of loans issued for new housing increased in May by 2.2% over April. The Bureau said loan approvals to build houses was up a seasonally adjusted 8.0% on month in May, approvals to purchase newly built homes were up 2.9%, and the number of approvals to purchase existing houses was up 1.5%

In New Zealand, equities inched up slightly although most of the Asian markets were trading deep in the negative terrain today trailing a dull session on the Wall Street overnight. The New Zealand benchmark index registered its second consecutive session in the green region on Wednesday. The NZX50 inched forward 0.16% or 4.35 points to 2750.60. The NZX 15 increased 0.60% or 30.23 points to close at 5098.86.

On the economic front, as per a survey conducted by business NZ, New Zealand has scored highly in a survey of international trade. Business NZ Chief Executive Phil O’Reilly says this ranking is a testament to their openness to international trade, sound institutions and services and hard work over decades to get good trade deals with other nations. Meanwhile, New Zealand’s score would be even higher if not for the barriers erected in a number of countries against agricultural exports. The NZX50 inched forward 0.16% or 4.35 points to 2750.60. The NZX 15 increased 0.60% or 30.23 points to close at 5098.86.

In South Korea, stocks finished lower as foreign investors dumped steel and financial shares amid jitters over a global economic recovery. The benchmark Korea Composite Stock Price Index (KOSPI) declined 3.18 points to 1,431.02. Foreign investors snapped a nine-day buying streak, weighing down on the market.

In Singapore, the stock market fell on tracking the weakness in global market on concerns over economic recovery. Lower crude oil and metals prices taking a toll on commodity-linked stocks, while renewed doubts over global economic recovery weighed down shares of financials and manufacturing. Properties extended losses amid worries recent gains had outpaced profit expectations. The blue chip Straits Times Index melted 12.49 points, or 0.55%, to 2,259.77

In Taiwan, stock market continued to seesaw between gains and losses, giving up its one-month high status as economic report released today showed slowing demand from Mainland China and the United States, putting pressure on export oriented sector stocks. The main Taiex share index gave up yesterday’s gains as the Taiex index de-escalated 47.08 points or 0.70%, closing the day at 6668.14

In Philippines, the stock market reversed their two days gain, closing marginally lower, tracking the losses on the Wall Street overnight. The steep overnight decline of US stocks muted the positive impact of the rate cuts hopes by the Philippine monetary officials on the local bourse, following that the inflation has slowed down to 22 years low level. The benchmark index PSEi lost 0.39% or 9.77 points to 2,461.99, while the All Shares index declined 0.25% or 4.03 points to 1,578.77.

In India, the key benchmark indices slumped in late trade after the global rating agency Standard & Poor's today, said there is risk that its sovereign credit ratings on India may be lowered. Weak global stocks also dampened investor sentiment. The BSE 30-share Sensex was down 401.30 points or 2.83% to 13,769.15. The S&P CNX Nifty was down 123.25 points or 2.93% to 4,078.90.

Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.08% or 0.89 points to 1065.47 while stock markets in Indonesia were closed on the account of holiday.

In other regional market, European shares pulled back for the fifth straight session on Wednesday, with investors turning away from financial firms and oil producers as they continued to fret about the prospects for a recovery in the global economy. On a regional level, the U.K. FTSE 100 index fell 0.1% to 4,183.02, The German DAX index traded down 0.2% at 4,588.37 and the French CAC-40 index declined 0.7% to 3,028.31.

India Taxes Reference 2009

India Taxes Reference 2009

ITC

ITC

Budget FY10

Budget FY10

BSE Bulk Deals to Watch - July 8 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
8/7/2009 531761 AMULYA LEAS RENUGOYAL B 50000 7.73
8/7/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA B 56301 37.66
8/7/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA S 55201 38.24
8/7/2009 509009 CORE EMBALAG SAVITRI SONS B 109800 9.99
8/7/2009 509009 CORE EMBALAG ASHOK KUMAR SONI HUF S 68500 9.99
8/7/2009 511636 DJS STOCK SH SHOHESHPSHAH S 50000 32.00
8/7/2009 532707 DYNEMIC PRO DHAVAL AMRISH SHAH S 57195 21.95
8/7/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD B 89383 3566.60
8/7/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD S 89383 3567.94
8/7/2009 532038 EMMSO INTERN AJAY AGARWAL B 29908 50.00
8/7/2009 531137 GEMSTONE INV HEMANTMADHUSUDANSHETH S 55000 22.05
8/7/2009 500189 HINDUJA VENT AASIA MANAGEMENT AND CONSULTANCY P LTD B 400000 178.00
8/7/2009 500189 HINDUJA VENT AASIA EXPORTS S 400000 178.00
8/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 40200 58.03
8/7/2009 502933 KATARE SPG. RAMESHGGOKANI B 18178 15.10
8/7/2009 502933 KATARE SPG. AMI STOCK & SHARE BROKERS PVTLTD S 15000 15.10
8/7/2009 513693 KIC METALIKS CARWIN MERCANTILES PVT LTD B 62526 28.58
8/7/2009 526263 MOLDTEK TECH SUDHINDAR K KHANNA ( NRO) S 28834 74.50
8/7/2009 526753 ROSELABS LTD SINGHAL OVERSEAS LIMITED S 101700 11.01
8/7/2009 506460 SI GROUP DEUTSCHETRUSTEESERVICESINDIAPVT.LTD.A/C DWSMONEYPLUSADVANTAGEFUND B 433030 68.89
8/7/2009 512048 SPLASH MEDIA NEHAKHANDELIA B 10000 93.94
8/7/2009 512048 SPLASH MEDIA SHREEGOPALNATHMALKABRA S 10000 90.05
8/7/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 53500 55.87
8/7/2009 531249 WELL PACK PA PANDYA HARDIK M B 28380 162.28

NSE Bulk Deals to Watch - July 8 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,BUY,118753,3562.89,-
08-JUL-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,BUY,108776,323.31,-
08-JUL-2009,FAME,Fame India Limited,JAIDEEP HALWASIYA,BUY,195000,17.90,-
08-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7248357,19.03,-
08-JUL-2009,ROLTA,Rolta India Ltd.,WARD FERRY MGMT LIMITED A/C WF ASIAN SMALLER CO.FUND LTD,BUY,998000,109.10,-
08-JUL-2009,SIGROUPIND,SI Group - India Limited,DEUTSCHE TRUSTEE SER IND PVT LTD A/C DWS MONEY PLUS ADV FUND,BUY,251004,68.89,-
08-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,SELL,118453,3564.35,-
08-JUL-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,SELL,108776,323.38,-
08-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,7071183,19.02,-

Post Session Commentary - July 8 2009

Indian markets slipped sharply to close the day in deep red on global slide. Profit taking also contributed to the southward journey as investors selected to book profit in keys stocks after previous session’s rise. Benchmark indices exhibited volatility with unsuccessful trial to reduce losses during afternoon trade on some recovery in other Asian stocks. Reports that government will have disinvestment plan in around three months to fill the gap of fiscal deficit also contributed to small revival. However, fresh bouts of strong selling took huge beating on the bourses. BSE Sensex ended below 13,800 level and NSE Nifty closed below 4,100 level.

The market tumbled since initial bell amid unfavorable cues from the markets all over the world. The Asian markets were sharply lower during initial trading and the US stocks markets closed in deep red on Tuesday due to growing concerns about the economic recovery. Moreover, the traders dumped shares ahead of start of the quarterly reporting period. Further, the domestic stocks plunged stridently lower on huge selling emerged over the ground. The benchmark indices continued trade in negative zone despite witnessing little gain during afternoon trade. During final trading hours, market lost further ground to shatter with huge losses on heavy sell off. Negative opening of European market along with selling by foreign funds in domestic arena also weighed on the sentiments. Of the 13 sectoral indices on the BSE, all indices ended in red. Among those, Realty, Capital Goods, Metal, Bank, Power, Consumer Durable, Teck and Oil & Gas stocks witnessed most of the selling pressure form these baskets. BSE Mid Cap and Small Cap stocks also followed the same trend.

Among the Sensex pack 24 stocks ended in red territory and 6 in green. The market breadth indicating the overall health of the market remained weak as 1980 stocks closed in red while 563 stocks closed in green and 59 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 401.30 points or 2.83% at 13,769.15 and NSE Nifty ended down by 123.25 points or 2.93% at 4,078.90. BSE Mid Caps and Small Caps closed with losses of 181.50 and 206.92 points at 4,782.84 and 5,337.35 respectively. The BSE Sensex touched intraday high of 14,039.58 and intraday low of 13,701.76.

Losers from the BSE Sensex pack are Tata Steel (8.93%), Sterlite Industries (8.38%), DLF Ltd (7.68%), Reliance Infra (7.04%), L&T Ltd (5.84%), ICICI Bank (5.82%), JP Associates (5.58%), BHEL (4.19%), ONGC Ltd (3.89%), RCom (3.57%), HDFC Bank (3.49%), SBI (3.02%), Bharti Airtel (2.30%), Infosys Tech (1.93%), HDFC (1.86%) and M&M Ltd (1.80%).

Gainers from the BSE Sensex pack are ACC Ltd (3.09%), Maruti Suzuki (3.13%), Herohonda Motors (1.51%), Grasim Industries (1.20%), NTPC Ltd (0.98%) and Tata Motors (0.46%).

On the global markets front the Asian markets that opened before the Indian market, ended lower on growth concern as an unexpected drop in Japanese machinery orders raised concern that a recovery in global economy will weaken. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended lower by 8.68, 141.20, 227.04, 12.49 and 3.18 points at 3,080.77, 17,721.07, 9,420.75, 2,259.77 and 1,431.02 respectively.

European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading down by 13.78 points at 4,584.41 and in London FTSE 100 is trading lower by 1.73 points at 4,185.27.

The BSE Reality index underperformed the benchmark indices and closed with decrease of (8.47%) or 269.51 points at 2,912.63. Scrips that lost are Unitech Ltd (10.81%), Indiabull Real (9.74%), Ansal Infra (9.41%), Omaxe Ltd (9.22%) and Parsvnath (8.36%).

The BSE Capital Goods index tumbled (5.05%) or 621.53 points to close at 11,680.32. Losers are Suzlon Energy (10.26%), Elecon Eng C (9.94%), Punj Lloyd (8.83%), Walchand In (8.15%) and Reliance Industrial Infra (7.88%).

The BSE Metal ended down by (4.22) or 444.61 points at 10,101.66 after LMEX, a measure of six metals traded on the London Metal Exchange, fell 1.18% overnight. Losers are Jai Corp Ltd (9.98%), Tata Steel (8.93%), Sterlite Industries (8.38), Ispat Industries (7.96%) and LSW Steel (6.71%).

The BSE Bank stocks dropped by (4.09%) or 319.13 points to close at 7,485.53 as the government skipped financial sector reforms in the Budget. Major losers are Canara Bank (9.81%), ICICI Bank (5.82%), IDBI Bank (5.36%), Kotak Bank (5.12%) and Oriental Bank (5.06%).

The BSE Power index lost (3.64%) or 100.73 points to close at 2,669.77. Losers are Suzlon Energy (10.26%), Reliance Infra (7.04%), GMR Infra (6.08%), Siemens Ltd (5.79%) and ABB Ltd (5.19%).

The BSE Consumer Durable index ended lower by (2.98%) or 87.71 points to close at 2,857.97. Rajesh Export (9.66%), Gitanjali GE (8.78%), Videocon Ind (5.47%), Titan Ind (1.26%) and Blus Star L (0.34%) ended in negative territory.

Lanco Infratech Ltd dropped by 4.15%. The company has received Letter of Intent (LOI) from Footwear Design & Development Institute (FDDI), Ministry of Commerce & Industry, Government of India for the Construction and Development of FDDI at E-1, Sipcot Industrial Park, Irungattukottai, Kancheepuram, Tamil Nadu of a Total Contract Value of Rs 52.30 Crores.

MindTree lost 5.66%. The company announced the availability of its Knowledge Management {KM) solution for the manufacturing industry. The MindTree KM offering is designed to help manufacturing organizations systematically collect, manage and execute the numerous ideas and suggestions of its workforce, resulting in innovative solutions, higher productivity, and faster response and delivery times.

Geometric Limited ended lower by 6.16%. The company disclosed the release of NestLib 2009 R2. In addition to a number of enhancements, this version offers a new Edge Matching feature for the wood working industry, to help in the creation of wooden floorings and rooftops.

Bank of Maharashtra (BoM) dropped by 2.18%. The bank reduced its benchmark prime-lending rate (BPLR) by 0.25 per cent to 12.25 per cent from 6th July. Besides, the bank has also cut interest rates on its domestic term deposits by up to 0.50 per cent from 1st July.

Sun Pharmaceutical Industries Ltd lost 0.09%. The company announced that USFDA has granted its subsidiary an approval for an abbreviated New Drug (ANDA) for generic Casodex, bicalutamide tablets.

Tata Steel ended lower by 8.93%. The company has announced that in the month of June 2009 it has achieved a significant growth in its hot metal as well crude steel and saleable steel production over the same month last year. The company has reported 19% growth in sales volume to 4.97 lakh tonnes as against 4.19 lakh tonnes in the same month previous year. In line with this, the sales volume rose 22% to 14.18 lakh tonnes in the first quarter of FY10 as 11.59 lakh tonnes in first quarter of FY09.

Banking, metal stocks lead a near 3% Sensex slide

The key benchmark indices slumped after the global rating agency Standard & Poor's said there is risk that its sovereign credit ratings on India may be lowered. Weak global stocks also dampened investor sentiment. The BSE 30-share Sensex fell 401.30 points or 2.83%. Banking, metal, capital goods and realty stocks led the fall. Index heavyweight Reliance Industries dropped in volatile trade. The market breadth was weak.

Intraday volatility was high. The market tumbled soon after a weak opening triggered by lower Asian stocks and overnight setback in US stocks. The market cut losses in mid-morning trade on media reports that the government will have a disinvestment road map in place in about three months to bridge the high fiscal deficit. Intraday recovery gathered further steam in afternoon trade after Planning Commission deputy chairman Montek Singh Ahluwalia said the government's 2009/10 budget was pro-growth and addressed the stimulus needs of the economy. But the recovery proved short-lived. The market slumped in late trade.

As per the provisional data, foreign funds today, 8 July 2009, sold shares worth a net Rs 828.01 crore. Domestic funds bought shares worth a net Rs 594.07 crore.

Global rating agency Standard & Poor's Ratings Services today said it maintains its view that India's high fiscal deficits are not sustainable in the medium term and if fiscal consolidation is delayed, there is a risk that the sovereign credit ratings on India may be lowered. S&P ranks India's long-term local-currency rating at BBB-, their lowest investment grade.

Finance Minister (FM) Pranab Mukherjee set a sharply higher fiscal deficit target to 6.8% for the financial year ending March 2010 after he increased spending on roads, power and aid to the poor. Mukherjee said on Tuesday government spending has to fill a gap left by lower private investment, a day after he sharply raised government spending on some social sector programme and infrastructure in the Union Budget 2009-2010 on Monday, 6 July 2009. Higher government spending on infrastructure sector and rural economy may help facilitate recovery in the economy.

Trade minister Anand Sharma today said steps already taken by the government will help revive industrial output. He said cement and steel output rose 13% each in June 2009 over June 2008. Sharma said exports are declining at a slower pace due to government assistance to exporters. He said exports fell 29% in June 2009 from year earlier. The government will officially release export figures for the month of June on 3 August 2009

Meanwhile, steel minister Virbhadra Singh said Indian steel consumption could rise 6 to 8 % in 2009/10.

Indian government is reportedly planning to sell about 10-20% stake in listed blue chip companies. Among those likely to be targeted are ONGC, Indian Oil Corporation (IOC), NTPC, Bharat Heavy Electrical (Bhel) and Steel Authority of India (Sail). Considering that these companies are profitable, selling stakes at the opportune time could fetch the government a neat revenue that could help bridge the fiscal deficit.

The government set an very small target of Rs 1120 crore from divestment for the financial year ending March 2010 in the Union Budget 2009-2010 which it unveiled on Monday, 6 July 2009.

European shares fell on Wednesday, mirroring big losses on Wall Street on Tuesday and losing ground for the fifth straight session, as investors braced for the start of the corporate earnings season. Key benchmark indices in France and UK were down by between 0.01% to 0.48%. Germany's DAX was flat.

Though in the red, Asian stocks were off early lows. Key benchmark indices in China, Hong Kong, South Korea, Singapore and Taiwan were down by between 0.28% to 0.79%.

Japan's Nikkei fell 2.35% after the latest data showed Japanese core machinery orders fell 3% from a month earlier in May 2009.

US index futures were volatile. Trading in the US index futures indicated Dow could rise 3 points at the opening bell today, 8 July 2009.

US markets closed deep in the red yesterday, 7 July 2009 as stocks fell to their lowest level in 10 weeks amid growing doubts about an economic recovery. The Dow slipped 161.27 points, or 1.9%, to 8,163.60. The S&P 500 index fell 17.69 points, or 2%, to 881.03. The Nasdaq Composite Index lost 41.23 points, or 2.3%, to 1,746.17.

The BSE 30-share Sensex fell 401.30 points or 2.83% to 13,769.15. At the day's low of 13,701.76, Sensex fell 468.70 points in morning trade. The Sensex fell 130.87 points at the day's high of 14,039.58 in early trade.

The S&P CNX Nifty was down 123.25 points or 2.93% to 4,078.90. Nifty July 2009 futures were at 4064, at a discount of 14.90 points as compared to the spot closing of 4078.90. Turnover in NSE's futures & options (F&O) segment surged to Rs 66,588.76 crore from Rs 60,222.63 crore on Tuesday, 7 July 2009.

BSE clocked a turnover of Rs 5,384 crore slightly higher than Rs 5,304.88 crore on Tuesday, 7 July 2009.

The market breadth, indicating the overall health of the market, was extremely weak. On BSE, 557 shares rose as compared with 1,979 that fell. A total of 59 shares remained unchanged.

From the 30 shares Sensex pack, 24 fell and one rose.

On the back of heavy buying by foreign funds, the BSE Sensex is up 4,121.84 points or 42.72% in calendar year 2009, as on 8 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 5,608.75 points or 68.73% as on 8 July 2009.

Foreign institutional investors' (FII) inflow in July 2009 totaled Rs 3,581.20 crore (till 7 July 2009). FII inflow in calendar year 2009 totaled Rs 28,125.40 crore (till 7 July 2009).

Coming back to today's trade, the BSE Mid-Cap index was down 3.66% and the BSE Small-Cap index was down 3.73%. Both the indices underperformed the Sensex.

The BSE Auto index (down 0.23%), the BSE FMCG index (down 0.9%), the BSE Healthcare index (down 1.31%), the BSE PSU index (down 1.4%), the BSE Oil & Gas index (down 1.98%), the BSE IT index (down 2.36%), the BSE TECk index (down 2.47%), outperformed the Sensex.

The BSE Realty index (down 8.47%), the BSE Capital Goods index (down 5.05%), the BSE Metal index (down 4.22%), the BSE Bankex (down 4.09%), the BSE Power index (down 3.64%), the BSE Consumer Durables index (down 2.98%), underperformed the Sensex.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) shed 1.4% to Rs 1,829.35. The stock was volatile. It hit a high of Rs 1,890.10 and a low of Rs 1,800. The Supreme Court on Tuesday declined to stay the Bombay High Court's verdict in a dispute over the sale of natural gas by Reliance Industries (RIL) to Reliance Natural Resources (RNRL).

The Supreme Court didn't grant RIL' plea to stay the order of the Bombay High Court until the resolution of the case and issued notices to the companies and the Centre. Both companies have to reply to appeals filed by each other by 20 July 2009, when the matter is scheduled to be heard. The government must also respond by then, the court said.

RIL, late last week, moved the Supreme court, challenging the Bombay High Court judgment asking it to supply gas to the former at a price that is 44% lower than fixed by the government. In its appeal filed in the Supreme Court on Saturday 4 July 2009, Reliance Industries contended that the high court had erred in deciding the three terms - quantity, tenure and price of gas supply to power plants of Reliance Natural Resources (RNRL) affiliates.

Meanwhile, RIL's tax liability would rise after Finance Minister Pranab Mukherjee increased the rate of minimum alternate tax (MAT) to 15% from 10% of book profit. RIL pays taxes under MAT. RIL's total tax liability stood at Rs 3028 crore in the year ended March 2009 (FY 2009), which included deferred taxes of Rs 900 crore and fringe benefit tax of Rs 54 crore. While higher MAT may result in increase in tax outgo, the scrapping of the fringe benefit tax (FBT) may help mitigate the impact to some extent. The government has scrapped FBT in the Union Budget 2009-2010.

Oil stocks fell as crude oil hit six-week low on Tuesday on speculation that a US government report will show an increase in weekly US crude inventories as the recession cut demand. India's largest state-run oil exploration firm by revenue ONGC fell 3.89%. Cairn India fell 6.23%. The fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms. Crude oil for August delivery fell $1.12, or 1.7%, to $62.93 a barrel on the New York Mercantile Exchange on Tuesday, the lowest settlement since 26 May 2009.

But the fall in oil price boosted shares of PSU OMCs. BPCL, HPCL and Indian Oil Corporation rose by between 2.86% to 4.31% Lower crude oil prices will reduce under-recoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. The government, last week, hiked petrol prices by Rs 4 per liter and diesel prices by Rs 2 per liter.

But contrary to market expectations, the Union Budget 2009-2010 did not include a roadmap for decontrol of fuel prices in the country but the finance minister said it will set up a expert panel to look into the matter of fuel pricing.

Realty stocks extended last two day's losses as finance minister made no major announcement to boost the debt ridden sector reeling under slump in demand for new homes in the Budget. DLF, Omaxe, Unitech, Indiabulls Real Estate, Housing Development & Infrastructure, Akruti City fell by between 7.68% to 10.81%.

Capital goods and construction stocks fell even as the Budget laid a major emphasis on infrastructure development. Siemens, Praj Industries, Siemens, ABB, Larsen & Toubro, Bharat Heavy Electricals fell by between 2.59% to 7.05%.

Finance Minister Pranab Mukherjee on 6 July 2009, provided a thrust on various infrastructure projects in the Budget which will benefit construction firms in the form of increased orders. The government announced more spending for urban, water and road projects. The allocation to National Highway development program allocation was increased 23% to Rs 15948 crore.

Among construction stocks, Hindustan Construction Company, IVRCL Infrstructure & Projects and Nagarjuna Construction Company fell by between 4.86% to 6.73%.

But cement stocks rose for the second straight day as a thrust on the infrastructure sector in the Budget may boost cement demand. ACC, Ambuja Cements, Ultratech Cement and Grasim Industries, rose by between 0.63% to 3.09%. The four cement pivotals had risen 3.87% to 5.34% on Tuesday.

To ensure that infrastructure projects do not face financing difficulties arising from the current downturn, the government has decided that India Infrastructure Finance Company (IIFCL) will refinance 60% of commercial bank loans for Public Private Partnership (PPP) projects in critical sectors over the next fifteen to eighteen months.

Bank stocks fell as government did not announce financial sector reforms in the Budget. Market expectations on financial sector reforms were high. The government's annual economic survey released ahead of the Budget had called for a phased increase in the foreign direct investment limit in banks. Voting rights in banks should be aligned with equity holdings, the Survey had said.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 3.02%. India's largest private sector bank by net profit ICICI Bank fell 5.82%. Its American depository receipt (ADR) fell 0.21% on Tuesday, 7 July 2009. India's second largest private sector bank by net profit HDFC Bank fell 3.49% as its ADR fell 1.08% overnight.

India's biggest dedicated housing finance firm by operating income Housing Development Finance Corporation fell 1.5% as the finance minister did not announce a hike in tax sops for housing loans in the Budget contrary to market expectations.

Auto stocks rose on retention of lower excise duties in the Budget. India's largest car maker by sales Maruti Suzuki India rose 2.13%. India's largest commercial vehicle maker by sales Tata Motors rose 0.46%. India's largest bike maker by sales Hero Honda Motors rose 1.51%.

There was no across-the-board increase in excise duties after a sharp reduction in excise duties in two stages since December 2008 which was announced as a part of the government's stimulus package for the economy. A section of the market was fearing rollback of excise duties due to signs of a recovery in the Indian economy.

IT stocks fell on worries US economic recovery may take longer than expected. US is the biggest market for Indian IT firms. TCS, Wipro and Infosys fell by between 0.82% to 2.3%.

Finance Minister extended deduction in respect of export profits under the Software Technologies Parks of India (STPI) scheme available under sections 10A and 10B of the Income-tax Act till the financial year 2010-11. In order to tide over the slowdown in exports, the Finance Minister proposed to extend the sun-set clauses for these tax holidays by one more year i.e. for the financial year 2010-11. Last year, the benefit under this section was extended to one year till 2009-2010.

Power stocks fell as no major benefits were announced for the sector by the Finance Minister in the Budget. Reliance Infrastructure, PowerGrid Corporation of India, Tata Power Company, Reliance Power fell by between 0.96% to 7.04%.

FMCG stocks fell even as the finance minister reiterated the government's thrust on the agriculture sector. FMCG firms derives a substantial revenue from rural sector. Aries Agro, Advanta India, Jain Irrigation, Tata Tea, Hindustan Unilever, ITC, United Spirits, Dabur india fell by between 0.57 % to 8.58%.

Finance Minister Pranab Mukherjee, while presenting the Union Budget for 2009-10, said the government will ensure that agriculture grows by at least 4% per year.

The government has announced additional interest rate subvention of 1% to farmers who pay short-term farm loans on schedule. The government has also decided to extend agriculture debt waiver by six months and to provide additional Rs 1000 crore over interim budget for irrigation.

Metal stocks fell after LMEX, a measure of six metals traded on the London Metal Exchange, fell 1.18% on Tuesday, 7 July 2009. Steel Authority of India, Tata Steel, Sterlite Industries, Hindalco Industries, National Aluminum Company fell by between 0.2% to 8.93%.

Unitech clocked the highest volume of 3.64 crore shares on BSE. Cals Refineries (2.61 crore shares), Suzlon Energy (1.79 crore shares), Ispat Industries (1.25 crore shares) and Satyam Computer Services (1.24 crore shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 342.72 crore on BSE. Unitech (Rs 247.84 crore), Tata Steel (Rs 197.77 crore), Reliance Infrastructure (Rs 183.02 crore), Educomp Solutions (Rs 182.54 crore) were the other turnover toppers in that order.

That sinking feeling

Markets will nosedive early morning in tune with weak international cues. Markets are threatening to close below 4150 support level. A decisive close below this level can spell danger as we have been highlighting in this space.

The economic data have shown that US economy is still reeling and coupled with correction in commodities has resulted in a correction in US markets. The quarterly earnings seasons starts across the globe and the fears investors has is that the numbers may not be able to justify the stupendous rally in stock prices since March.

Below 14000(4150), the support for the index comes in at 13550(4113). All long derivatives bets should be off below 4150

Pre Session Commentary - July 8 2009

Today domestic markets are likely to open negative as majority of Asian markets have opened with huge blood bath on the back of losses in US markets last night. The US markets fell on concerns of low spending in the technology space, which has been predicted by Gartner Inc. to fall by nearly 6 per cent. The sentiments across the globe are weak and therefore one would witness bearishness prevailing across the broader level in domestic arena. Yesterday’s minimal rebound exudes signs of immense cautiousness amongst investors.

On Tuesday, domestic markets closed with moderate gains. The positive gap up opening turned choppy amidst weak sentiments and cautiousness in traders. Yesterday’s huge losses paved way for some value buying in key sectors however volatility was inevitable at broader level. However after the post mid session, European markets provided a lot of support to domestic sentiments. Sectors like Auto, FMCG, CG and Power managed to record gains of 3.92%, 3.83%, 1.67% and 0.97% respectively. BSE Midcap ended with a gain of 0.92% and Smallcap closed with a loss of 0.33%. Today domestic markets are likely to trade range bound.

The BSE Sensex closed high by 127.05 points at 14,170.45 and NSE Nifty ended with a gain of 36.45 points at 4,202.15. BSE Mid Cap closed with gain of 45.46 points at 4,964.34 and Small Cap closed with a marginal loss of 18.60 points at 5,544.27 respectively. The BSE Sensex touched intraday high of 14,251.88 and intraday low of 14,000.68.

On Tuesday, US Markets closed with huge losses. The S&P 500 plunged to its lowest since May 1, ’09 due to concerns of slow spending in the technology sector. The further apprehensions are about the second quarter results of the technology sector. Microsoft and Google Inc. conceded more than 2.8 per cent after researcher Gartner Inc. predicted spending on information technology will plummet by 6 per cent this year. On the other hand Discover Financial Services fell by 11 per cent on plans to sell $500 million in shares. US light crude oil for August Futures delivery declined by 1.8 per cent at $62.93 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) fell by 161.27 points at 8,163.60. NASDAQ index declined by 41.23 points at 1,746.17 and the S&P 500 (SPX) fell by 17.69 points to close at 881.03 points.

Indian ADRs ended mostly down on Tuesday. In the Banking space, ICICI Bank was down 0.21% and HDFC Bank was down 1.08%. In the telecom sector, MTNL was up 1.49% but Tata Comm was down 2.285. In the IT space, Infosys was down 1.43%, Wipro was down 1.24%, Patni was down 1.68%. However, Satyam was up 1.83%. In the other space, Sterlite was down 2.57%, Dr Reddys was up 0.49% and Tata Motors was down 2.26%.

Today major stock markets in Asia are trading low. Hang Seng is low by 348.07 points at 17,514.20. Japan''s Nikkei is trading down by 226.35 points at 9,557.39.

On Tuesday, the partially convertible rupee ended at Rs 48.45/46, 0.2% stronger than its previous close at 48.56/59. The rupee gained strength on the back of rise in local stock markets.

The FIIs on Tuesday stood as net sellers in equity and net buyer in debt. Gross equity purchased stood at Rs 3,189.50 Crore and gross debt purchased stood at Rs 1,184.00 Crore while the gross equity sold stood at Rs 3,540.80 Crore and gross debt sold stood at Rs 10.00 Crore. Therefore, the net investment of equity reported was Rs (351.40) Crore and net debt was Rs 1,174.00 Crore.

On BSE, total number of shares traded were 37.88 Crore and total turnover stood at Rs 5,304.88 Crore. On NSE, total number of shares traded was 84.71 Crore and total turnover was Rs 17,255.88 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 62718092 shares, followed by Suzlon Energy with 46628097, DLF with 17682445, ITC with 17610178 and ICICI Bank with 11712721 shares.

On NSE Future and Options, total number of contracts traded in index futures was 799497 with a total turnover of Rs 16,089.08 Crore. Along with this total number of contracts traded in stock futures were 576819 with a total turnover of Rs 15,764.94 crore. Total numbers of contracts for index options were 1245421 with a total turnover of Rs 26,996.37 Crore and total numbers of contracts for stock options were 46056 and notional turnover was Rs 1,372.25 Crore.

Today, Nifty would have a support at 4,085 and resistance at 4,157 and BSE Sensex has support at 13,710 and resistance at 14,052.

Latest IPO Grey Market Premiums

Mahindra Holidays 300


25 to 27


Adani Power 110 to 130 (Approximate)


20 to 25

NHPC 15 to 20 (Approximate)


4 to 5

FIIs in selling mode

Outflow of Rs 351.40 crore on 6 July 2009

Foreign institutional investors (FIIs) sold shares worth a net Rs 351.40 crore on Monday, 6 July 2009, as against an inflow of Rs 568.40 crore on Friday, 3 July 2009.

FII outflow of Rs 351.40 crore on 6 July 2009 was a result of gross purchases Rs 3189.50 crore and gross sales Rs 3540.80 crore. The BSE Sensex tanked 869.65 points or 5.83% to 14,043.40 on that day. The market had tumbled that day after Finance Minister Pranab Mukherjee presented an expansionary budget with a major spending thrust on areas such as farm and rural development, defense and infrastructure, setting a higher fiscal deficit target of 6.8% of GDP for the financial year 2009-2010.

FII inflow in July 2009 totaled Rs 782.60 crore (till 6 July 2009). FII inflow in calendar year 2009 totaled Rs 25,326.80 crore (till 6 July 2009).

There are a total of 1677 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Daily News Roundup - July 8 2009

Supreme Court has issued notice to RIL, RNRL and government on gas supply dispute. (ET)

SEBI has waived the open offer clause for Bharti-MTN deal. (ET)

Company law board has authorized Mahindra Satyam to allot nearly 2mn shares to venture bay, 100% subsidiary of Tech Mahindra. (ET)

Tata Steel witness 22% jump in sales volumes during Q1 FY10, while production volume rose by 30%. (FE)

Sun Pharma US arm cuts 350 jobs. (ET)

JSW Energy, a subsidiary of JSW Steel to set-up 3200mw super critical thermal power plant with an investment of Rs150bn in Ratnagiri. (FE)

Bharti Shipyard has revised its offer price for Great Offshore by Rs2 a share to Rs405. (ET)

GAIL to raise Rs20bn via debt for expansion. (BS)

Infosys is looking for strategic acquisition in the range of US$40-60mn for a BPO based in US or Canada. (BS)

Pantaloon get nod to raise Rs10bn through a QIP issue. (ET)

Andhra Pradesh government has cancelled Rs121bn Hyderabad metro rail project contract awards to Maytas led consortium. (BL)

ABG Shipyard plans to raise funds through QIP issue. (BL)

Bank of Maharashtra plans to raise Rs5bn of Tier I capital every year for the next three years. (BL)

GVK Power to raise Rs30bn via QIB. (FE)

Corporation Bank to raise Rs3bn via issue of bonds. (FE)

Essar Steel is close to acquiring a majority stake in Shree Precoated Steel. (ET)

TRF Ltd has acquired controlling stake in Dutch Lanka Trailer Manufacturers Ltd of Sri Lanka. (BL)

Government to announce disinvestment road map in three months. (ET)

Government will re-launch NELP-VIII. (FE)

Bankers ask RBI to extend dead line for NPA restructuring to December 2009. (FE)

Tea export plunge 10% in May. (FE)

As per the government fiscal deficit could come down to 3% by 2012. (BS)