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Wednesday, July 22, 2009
Turnover jumps
RIL July 2009 futures at premium
Nifty July 2009 futures were at 4413.15, at a premium of 14.25 points as compared to the spot closing of 4398.90. Turnover in NSE's futures & options (F&O) segment spurted to Rs 91,641.08 crore from Rs 65,459.06 crore on Tuesday, 21 July 2009.
Reliance Industries (RIL) July 2009 futures were at premium at 1981.10 compared to the spot closing of 1975.70.
Suzlon Energy July 2009 futures were near spot price at 91.55 compared to the spot closing of 91.25.
JSW Steel July 2009 futures were at discount at 590.80 compared to the spot closing of 594.80.
In the cash market, the S&P CNX Nifty lost 70.20 points or 1.57% at 4398.90.
Asian markets end mixed
Tentative signs of correction as risk appetite wanes, Yen surges
Asian markets witnessed some selling pressure at elevated levels as risk aversion took effect and the recent enthusiasm waned. The market participants failed to buy in the prospects of the US Fed keeping the interest rates too low for too long, as quoted by the Fed Chairman Ben Bernanke yesterday. Though China, Malaysia and New Zealand ended with decent gains, the sentiments seemed to have turned from modestly upbeat to intensely cautious, with the DOWJONES futures showing moderate selling pressure.
Yesterday, Federal Reserve chairman presented the bank's semi-annual monetary policy report to Congress. Bernanke noted that pace of the economic decline in the United States has slowed down significantly, signifying that that the worst of the financial crisis may be behind us. “The final demand of production has shown tentative signs of stabilization,” he said but added that the labour market continues to weaken. “Job insecurities together with declines on the home values and tight credit is likely to limit gains in consumer spending,” Bernanke said. “The possibility that recent stabilization in household spending will prove transient is an important downside risk to the outlook.”
However, Bernanke failed to account for the fact that the rising mortgage rates, which typically track the movements in the long term treasury yields, have all the essential ingredients of a becoming a recipe to undone the fragile housing market recovery.
Asian markets started on a broadly optimistic note following this background. Bank Of Japan deputy governor noted today that economic conditions in Japan have recently begun to stop worsening. However, the central bank expects the upward pressure to outweigh the downward, leading the economy to start recovering from the latter half of fiscal 2009. The Nikkei 225 average ended up 0.74% on the day.
China ended with strong gains with blue chips coming back in the fore after yesterday's debacle. Chinese equities slipped Tuesday after hitting a 13-month high Monday, posting the biggest one-day decline since June 12. However, the latest rebound offers credence to the view that the world's fastest growing economy is slowly entering into a safe territory, visible nonchalant to the customary gyrations in the world environment. In other markets, Malaysia and New Zealand ended with gains of around 1%.
Indian equities were hit hard today with the benchmark BSESENSEX sliding by more than 200 points or 1.50% as investors locked in gains, reflecting that rallies over the magical 15k mark are still being considered as a selling opportunity to cover previous longs. In other major losers, Hang Seng and Jakarta Composite shed 1.30% and 1% respectively.
Commodities were under hammer as crude oil shed more than 1 dollar ahead of the weekly US inventories data. Gold also corrected a bit with some selling emerging after the metal rallied to $950 per ounce mark in the current week. In currencies, Yen continued to appreciate against the US dollar, hitting 93.25- one-week high levels. Dollar itself hold steady against the Euro, consolidating around 1.4200 levels.
BSE Bulk Deals to Watch - July 22 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
22/7/2009 532995 AVON CORP S V ENTERPRISES B 326081 9.55
22/7/2009 531733 BAFNA SPINNI PUKHRAJ HIRACHAND BAFNA S 247970 1.75
22/7/2009 511664 BGIL FL TEC JINESH BHATT S 70989 19.87
22/7/2009 530803 BHAGERI DYEC DHARMESH D VORA B 56648 17.25
22/7/2009 530803 BHAGERI DYEC DEEPAK P VORA S 56648 17.25
22/7/2009 590076 CAMSON BIO ANGEL INFIN PRIVATE LIMITED B 51015 45.40
22/7/2009 590076 CAMSON BIO SOYUMM MARKETING PRIVATE LIMITED B 50000 45.40
22/7/2009 590076 CAMSON BIO ANGEL INFIN PRIVATE LIMITED S 132500 45.40
22/7/2009 590076 CAMSON BIO GRAND SLAM INVESTMENT PVT LTD S 50000 45.40
22/7/2009 531162 EMAMI LIMITE T.ROWE PRICE INTERNATIONAL A/C NEW ASIA FUND B 466615 354.00
22/7/2009 531162 EMAMI LIMITE ARENA HARIDASAN S 675000 354.00
22/7/2009 502865 FORBES & CO INDIA DISCOVERY FUND LIMITED B 355255 519.96
22/7/2009 502865 FORBES & CO GHEVAR INVESTMENTS AND TRADING COMPANY PRIVATE LIMITED S 343817 520.00
22/7/2009 530945 GANGOTRI I&S ARISTRO CAPITAL MARKETS PVT. LTD. B 46325 17.70
22/7/2009 530945 GANGOTRI I&S GBK RESOURCES PVT LTD S 61216 17.71
22/7/2009 523676 GOLKU DIAM J NEVERLOOSE PROPERTIES & INVES B 500000 10.65
22/7/2009 523676 GOLKU DIAM J ARVIND KANTIKUMAR DADHA S 125000 10.65
22/7/2009 523676 GOLKU DIAM J KANTIKUMAR DADHA S 125000 10.65
22/7/2009 523676 GOLKU DIAM J ASHISH KANTIKUMAR DADHA S 260000 10.65
22/7/2009 509597 HARDCAS WAUD VOCATION INV & FIN CO PVT LTD B 3265 290.00
22/7/2009 509597 HARDCAS WAUD VOCATION INV & FIN CO PVT LTD S 3265 286.68
22/7/2009 509597 HARDCAS WAUD APT FINANCIAL & CAP. SER. PVT LTD S 4869 288.42
22/7/2009 509684 INDIA FOILS SAINATH HERBAL CARE MARKETING P.LTD B 167268 14.92
22/7/2009 509684 INDIA FOILS SAINATH HERBAL CARE MARKETING P.LTD S 167268 14.97
22/7/2009 504336 INDTRADECO L BCB FINANCE PRIVATE LIMITED B 1600000 0.71
22/7/2009 504336 INDTRADECO L PLEASENT TEXTILES LIMITED S 1625000 0.71
22/7/2009 532777 INFO EDGE MORGAN STANLEY MAURITIUS COMPANY LIMITED B 397023 611.00
22/7/2009 532777 INFO EDGE CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 397023 611.00
22/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 60561 66.11
22/7/2009 516078 JUMBO BAG LT SANJEEV BURMAN JHAVERI S 59500 66.16
22/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 59474 67.20
22/7/2009 524826 JUPITER BIOS MACQUARIE BANK LIMITED S 81800 64.93
22/7/2009 531784 KADAMB CONST SAVITHA JAIN B 20000 41.00
22/7/2009 531784 KADAMB CONST RAMBHABA HLDG. & TRDG. CO. PVT S 15200 41.00
22/7/2009 500233 KAJARIA CERA ALCHEMY CAPITAL ALLTF B 1035064 35.50
22/7/2009 500233 KAJARIA CERA MOONSTAR SECURITIES TRADING & FINANCE CO S 1450000 35.78
22/7/2009 511131 KAMAN HSG ADITI JANMEJAY VYAS S 115532 31.01
22/7/2009 530255 KAY POW PAP SUNIL KUMAR GUPTA B 81699 6.64
22/7/2009 530255 KAY POW PAP SUNDER DASS AGARWAL B 55000 6.69
22/7/2009 530255 KAY POW PAP SUNIL KUMAR GUPTA S 96146 6.23
22/7/2009 515037 MURUEDM CHANDRA SHEKAR JAYKISHAN THANVI B 100000 25.97
22/7/2009 515037 MURUEDM IG FINANCIAL SERVICES INDIA PVT LTD B 134300 26.54
22/7/2009 515037 MURUEDM CHANDRA SHEKAR JAYKISHAN THANVI S 100000 26.50
22/7/2009 515037 MURUEDM IG FINANCIAL SERVICES INDIA PVT LTD S 134300 27.27
22/7/2009 515037 MURUEDM JAROLI VINCOM PVT LTD S 184000 26.14
22/7/2009 511766 MUTHOOT CAP EQUITY INTELLIGENCE INDIA PRIVATE LIMITED B 54333 61.34
22/7/2009 511766 MUTHOOT CAP GAURAV DEEPAK S 49438 61.37
22/7/2009 590077 RANKLIN SOLU NIBU KRISHNAN S 30304 33.61
22/7/2009 505141 SCOOTERS IND ALPESH ANANTRAI DOSHI B 10330 24.05
22/7/2009 505141 SCOOTERS IND ZAVERCHAND M CHHEDA S 14005 24.05
22/7/2009 512048 SPLASH MEDIA HITESH BABUBHAI DOBARIYA S 10202 99.21
22/7/2009 590037 STEEL EXCH SOHAN RAJUTTAMCHAND B 220000 29.40
22/7/2009 590037 STEEL EXCH SHIKHA SHARES AND SECURITIES PVT LTD S 85000 29.25
22/7/2009 590037 STEEL EXCH MITTAL SECURITIES FINANCE LIMITED S 135000 29.50
22/7/2009 590093 TRIMURTHI DR DHIRAJLAL V SANGHVI HUF S 48839 28.55
22/7/2009 530109 VANTA COR SE BHUPENDRA SHANTILAL SHAH S 20405 15.89
22/7/2009 531874 VENUS VENT AMRUT SECURITIES LTD. B 100000 28.45
22/7/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR S 44800 28.00
22/7/2009 531874 VENUS VENT VIJAY VELJIBHAI PADHARIA S 34500 29.00
22/7/2009 519602 VMF SOFT TEC MIHIR SHAH S 50000 8.00
22/7/2009 517498 WEBEL SL ENE MAVI INVESTMENT FUND LTD. B 142000 222.00
22/7/2009 517498 WEBEL SL ENE MACKERTICH CONSULTANCY SERVICES PVT. LTD. S 120000 222.00
22/7/2009 522108 YUKEN INDIA HEMANT S SHETH B 17161 70.98
NSE Bulk Deals to Watch - July 22 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,214678,926.84,-
22-JUL-2009,EMAMILTD,Emami Limited,T.ROWE PRICE INTL A/C NEW ASIA FUND,BUY,483451,354.00,-
22-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,14397619,21.47,-
22-JUL-2009,JBMA,JBM Auto Limited,ZEAL IMPEX & TRADERS PRIVATE LIMITED,BUY,1000000,31.00,-
22-JUL-2009,MAYTASINFR,Maytas Infra Limited,CLSA (MAURITIUS) LIMITED,BUY,662512,76.19,-
22-JUL-2009,MURUDCERA,Murudeshwar Ceram Ltd,IG FINANCIAL SERVICES INDIA PVT LTD,BUY,100000,26.11,-
22-JUL-2009,PUNJLLOYD,Punj Lloyd Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,3088175,239.11,-
22-JUL-2009,PVR,PVR Limited,SBI MUTUAL FUND A/C MSFU-EBF - 81,BUY,670000,101.04,-
22-JUL-2009,PVR,PVR Limited,SBI MUTUAL FUND SCHEME - MMCF - 99,BUY,500000,101.04,-
22-JUL-2009,SABERORGAN,Sabero Organics Gujarat ,BP FINTRADE PRIVATE LIMITED,BUY,210869,34.33,-
22-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,214678,927.43,-
22-JUL-2009,EMAMILTD,Emami Limited,VALUE & WORTH,SELL,400000,354.00,-
22-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,14638359,21.51,-
22-JUL-2009,JBMA,JBM Auto Limited,VALOUR CONSTRUCTION LTD.,SELL,1000000,31.00,-
22-JUL-2009,MAYTASINFR,Maytas Infra Limited,IFCI LTD.,SELL,700000,76.43,-
22-JUL-2009,MURUDCERA,Murudeshwar Ceram Ltd,IG FINANCIAL SERVICES INDIA PVT LTD,SELL,100000,27.33,-
22-JUL-2009,MURUDCERA,Murudeshwar Ceram Ltd,JAROLI VINCOM PVT LTD,SELL,222500,26.15,-
22-JUL-2009,PVR,PVR Limited,FIDELITY INVST INTL A/C FIDELITY KOREA-INDIA EQUITY INVST TR,SELL,135806,101.12,-
22-JUL-2009,PVR,PVR Limited,FIMHK-FIDELITY FUNDS MAURITIUS LTD,SELL,1064005,101.12,-
22-JUL-2009,SABERORGAN,Sabero Organics Gujarat ,BP FINTRADE PRIVATE LIMITED,SELL,210869,34.49,-
Post Session Commentary - July 22 2009
Indian market slumped sharply to close on a featureless note due to huge selling pressure led by heavy profit booking after a recent rally. Negative European markets contributed largely to the southward journey. Additionally, lower US index futures also weighed on sentiments. However, market witnessed gain in early trade on positive cues from global markets. In domestic arena, news that the government can bring a good amount this year from divestment also contributed to upward movement in equities. During the trading, stocks exhibited volatility on concern of the progress of India''s annual monsoon. BSE Sensex ended below 14,900 level and NSE Nifty closed around 4,400 mark.
Market opened on positive note tracking firm cues from the global markets. Most of the Asian markets opened in green and on Tuesday, the US markets closed higher on the back of good earnings report. The US stocks once again acclimated on the back of solid earnings report from Caterpillar that reported second quarter earnings per share of $0.72, which was $0.50 better than consensus estimates. Domestic investors’ took fresh position on the frontline stocks on growing optimism about the recovery in the world economy that led market to trade in green till mid session. Further, benchmark indices were unable to unable to hold the momentum and slipped on profit taking. The huge selling pressure was mainly led by negative European stocks along with lower US index futures. Market continued to stay in red till end on sustained selling across the board since afternoon trade. From the sectoral front, all indices ended in red. Besides, most of the selling was seen in Capital Goods, Auto, Power, IT, Teck, Metal, Pharma and Bank stocks. Broader market indices also remained out of favour as BSE Mid Cap and BSE Small Cap indices also witnessed selling pressure.
Among the Sensex pack 26 stocks ended in red territory and 4 in green. The market breadth indicating the overall health of the market remained negative as 1374 stocks closed in red while 1231 stocks closed in green and 99 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 219.37 points or (1.46%) at 14,843.12 and NSE Nifty ended down by 70.20 points or (1.57%) at 4,398.90. BSE Mid Caps and Small Caps closed with losses of 50.47 and 20.46 points at 5,174.74 and 5,817.36 respectively. The BSE Sensex touched intraday high of 15,369.42 and intraday low of 14,789.58.
Losers from the BSE Sensex pack are HDFC (4.43%), Hindalco (3.44%), Reliance Infra (3.36%), Grasim Industries (3.32%), Tata Steel (3.27%), JP Associates (2.95%), BHEL (2.89%), TCS Ltd (2.42%), RCom (2.17%), ACC Ltd (2.02%), Reliance (1.99%), Maruti Suzuki (1.83%), Bharti Airtel (1.76%) and Herohonda Motors (1.66%).
Gainers from the BSE Sensex pack are ONGC Ltd (4.60%), Sterlite Industries (0.91%), DLF Ltd (0.79%) and NTPC Ltd (0.44%).
On the global markets front the Asian markets that opened before the Indian market, ended mixed. Hang Seng and Straits Times ended lower by 253.53 and 3.50 points at 19,248.17 and 2,450.83 respectively. However, Shanghai Composite, Nikkei 225 and Seoul Composite gained 83.41, 71.14 and 5.05 points at 19,248.17, 9,723.16 and 1,494.04 respectively.
European markets, which opened after the Indian market, snapped seven-day winning streak and are trading in red. In Frankfurt the DAX index is trading down by 21.94 points at 5,072.03 and in London FTSE 100 is trading lower by 12.86 points at 4,468.31.
The BSE Capital Goods index tumbled (1.87%) or 231.60 points at 12,141.46. Bharat Elect (5.71%), Thermax Limited (5.41%), Punj Lloyd (3.44%), ABB Ltd (3.24%) and Jyoti Struct (3.18%) closed in negative territory.
The BSE Auto index dropped by (1.61%) or 83.16 points at 5,077.90. Scrips that lost are Excide Indus (5.01%), Gammon Indi (4.03%), Ashok Leyland (2.99%), Escorts Ltd (2.10%) and Bajaj Auto (1.92%).
The BSE Power index decreased by (1.60%) or 45.31 points to close at 2,783.87. Main losers are Reliance Infra (3.36%), ABB Ltd (3.24%), BHEL (2.89%), Crompton Greaves (2.26%) and Neyveli LIG (2.09%).
The BSE IT index ended lower by (1.60%) or 59.04 points at 3,634.99. Losers are Tech Mahindra (5.07%), HCL Tech (4.88%), Rolta India (4.73%), NIIT Ltd (3.68%) and Patni Computer (2.73%).
The BSE Teck closed down by (1.54%) or 43.13 points at 2,758.42. are Tech Mahindra (5.07%), HCL Tech (4.88%), Rolta India (4.73%), Adlabs Films (4.40%) and IOL Netcom (4.37%) ended in red territory.
The BSE Metal stocks lost (1.45%) or 166.40 points to close at 11,345.61. Major losers are Ispat Industries (4.40%), Hindalco (3.44%), Stata Steel (3.27%), Steel Authority (3.26%) and Sesa Goa Ltd (2.45%).
Wipro Ltd dropped by 1.52% despite reporting impressive rise of 119.40 per cent in its net profit to Rs 11,979 million for the quarter ended June 30, 2009 as compared to Rs 5,460 million for the quarter ended June 30, 2008.
Infosys Technologies Ltd lost 1.23%. The company has been awarded the eBiz Project by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India. The eBiz Project is among the 27 Central, State and Integrated Mission Mode Projects (MMPs) under the National E-Governance Plan (NEGP) of the Government of India.
Reliance Communications lost 2.17%. The company and Etisalat DB announced a long-term passive infrastructure sharing agreement, which will accelerate Etisalat DB Telecom''s forthcoming rollout of telecom services in India. As per agreement, Etisalat DB and its subsidiary would outsource their Telecom infrastructure requirements for the 15-telecom circles, encompassing end-to-end tower and transmission infrastructure to Reliance Infratel Limited and Reliance Communications Limited, respectively.
Thermax Limited fell 5.41%. The company and GE Water, USA, have signed agreements to expand the role that both companies will play in meeting India''s growing water quality and availability challenges.
Canara Bank ended down by 2.08%. The bank posted a net profit of Rs 5553.30 million for the quarter ended June 30, 2009 as compared to Rs 1226.80 million for the quarter ended June 30, 2008.
Spice Communications plunged 2.16%. The company posted a net loss of Rs (349.10) million for the quarter ended June 30, 2009 as compared to net loss of Rs (1364.50) million for the quarter ended June 30, 2008.
Brahmaputra Infraproject Limited gained 4.92%. The company has bagged two orders amounting to Rs. 433 crores from Jaiprakash Associates Limited for the construction of Yamuna Expressway connecting Greater Noida to Agra.
ING Vysya Bank Ltd zoomed 8.55% after net profit increased phenomenally 48.3% to Rs. 60.26 crore in Q1 June 2009 as against Q1 June 2008.
Sensex ends below 15k; HDFC plunges 4.43%
The Sensex for the second straight session ended on a weak note. Capital goods, auto, power,IT, metal and banking stocks led the fall. It opened positive with a gain of 62.43 points, at 15,124.92 on Wednesday on good global cues. Wipro`s Q1 earnings beats expectations and came as a good news for market. For the first half of the session, the index traded in the positive, touching a high of 15,369.42. Later, it lost all its firmness and slipped into the negative as profit booking emerged for the second half of the day. It continued its downward trend on aggressive selling pressure seen in frontliners and touched a low of 14,786.58. Even opening of negative European markets also added fuel to the sentiment. Finally, it wrapped the day below 15, 000 mark.
BSE Midcap and Smallcap index declined 0.97% and 0.35% respectively.
Among the sectoral indices, BSE Capital goods dipped 1.87%, BSE IT, Power, Auto, Metal and Bankex down over 1% each.
European stocks slipped after a seven-day rally pushed valuations on the Dow Jones Stoxx 600 Index to the highest in five years, offsetting better-than- estimated earnings from Apple and TomTom. UK`s benchmark index FTSE 100 fell 4.94 points, or 0.11%, to trade at 4,476.23.French benchmark index CAC 40 lost 23.67 points, or 0.72%, to trade at 3,279.22 and Germany`s benchmark index DAX declined 15.54 points, or 0.33% to trade at 5,077.86. (4.14 p.m., IST)
Asian stocks gained as Shin-Etsu Chemical sought to raise prices and BHP Billiton pumped a record amount of crude oil. Japanese benchmark index Nikkei rose 71.14 points, or 0.74%, to end at 9,723.16.Hong Kong`s Hang Seng index fell 253.56 points, or 1.30%, to finish at 19,248.17 and China`s Shanghai Composite climbed 83.41 points, or 2.60% to settle at 3,296.62.
The Sensex ended the day with a loss of 219.37 points, or 1.46% at 14,843.12 after touching a high of 15,369.42 and a low of 14,786.58. The broad-based NSE Nifty fell 70.20 points, or 1.57% at 4,398.90 after hitting a high of 4,557.95 and a low of 4,380.45
Major gainers in the 30-share index were Oil & Natural Gas Corporation (4.60%), Sterlite Industries (India) (0.91%), DLF (0.79%), and NTPC (0.44%).
On the other hand, Housing Development Finance Corporation (4.43%), Hindalco Industries (3.44%), Reliance Energy (3.36%), Grasim Industries (3.32%), Tata Steel (3.27%), and Jaiprakash Associates (2.95%) were the major losers in the Sensex.
Overall market breadth was mixed. Out of the total 2,704 stocks traded at BSE, 1,231 advanced, 1,374 stocks declined while 99 remained unchanged.
Market changes direction after hitting one-month high; Sensex below 15,000
The key benchmark indices dropped, reversing intraday gains of 2%, as investors booked profits after recent sharp gains. The BSE 30-share Sensex was provisionally down 221.86 points or 1.47%, off close to 495 points from the day's high and up close to 55 points from the day's low. Index heavyweight Reliance Industries (RIL) slipped. Capital goods, power, IT stocks fell.
The barometer index BSE Sensex fell below the psychological 15,000 mark. Weak European markets and lower US index futures soured sentiment. The market breadth was negative compared to a strong breadth earlier in the day. Concerns over the progress of India's annual monsoon triggered profit taking after a recent strong rally in share prices.
India's largest power equipment maker by sales Bharat Heavy Electricals and India's largest dedicated housing finance company
by sales, HDFC dropped despite good Q1 results announced during trading hours. India's largest oil exploration firm by revenue ONGC rose ahead of its Q1 June 2009 results tomorrow, 23 July 2009.
The market was volatile. The market surged in early trade tracking firm global stocks. Reports that the government can fetch a large sum from divestment this year also aided the surge in equities. The market extended gains in morning trade with the barometer index BSE Sensex hitting its highest level in more than a month. The market pared gains in early afternoon trade. The Sensex slipped into the red and fell below the psychological 15,000 mark later as lower European stocks and fall in US index futures soured sentiment. The market cut losses in mid-afternoon trade.
The Sensex had lost 128.52 points or 0.85% at 15,062.49 on Tuesday, 21 July 2009 as profit booking emerged after a recent solid surge. Before Tuesday's slide, the market had surged on the back of good initial batch of Q1 June 2009 results. From a low of 13,400.32 on 13 July 2009, the Sensex had risen 1,790.69 points or 13.36% in just five trading sessions to 15,191.01 on Monday, 20 July 2009.
The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 283 companies rose 52.1% Rs 15,199 crore on 11.7% growth in sales to Rs 1,13,379 crore in Q1 June 2009 over Q1 June 2008.
But news flow on divestment may keep market firm in the coming months. The steel ministry has reportedly initiated steps to sell small stakes in profit-making state-run firms Manganese Ore India (MOIL) and NMDC (formerly National Mineral Development Corporation), which it estimates could fetch up to Rs 25,000 crore. While the ministry has cleared a proposal to divest 10% in unlisted MOIL through an initial public offering (IPO), a proposal to divest 8-20% stake in listed NMDC is under its active consideration, report said.
The Union Budget, presented by finance minister Pranab Mukherjee on 6 July 2009, refrained from making any major commitment and proposed a modest disinvestment target of Rs 1,120 crore for the current financial year, although the government clarified later that there could be more sell-off proposals later in the year.
Weak rains is a cause for concern. The likely emergence of El Nino, the name given to the warming of the Pacific Ocean and which often influences the Indian monsoon adversely, coupled with the failure of the monsoon to gather momentum in the key north-western agricultural belt, has added to the worry. Under the circumstances, the assertion by the India Meteorological Department (IMD) that much of the rain deficit in June will be made up in July (which is mostly over) and August has fetched little results.
More than two-thirds of the people live in villages and 60 % of the farm land depends on the annual rains. While some sense an imminent drought, resulting in a poor kharif harvest, the agriculture ministry still hopes that agricultural production will be in the normal range. The Finance Ministry is worried, as a drought is the last thing it would like to cope with during an economic downturn.
Meanwhile, Junior trade minister Jyotiraditya Scindia said today that India is unlikely to meet $200 billion export target for FY 2010. He said shrinking global demand is affecting textile, leather, gems and jewellery exports.
India's direct tax receipts in Q1 June 2009 rose 3.65% to Rs 59,465 crore. Corporate tax receipts in the same period rose 3.31% to Rs 35,709 crore an official of the Central Board of Direct Taxes said. Income tax receipts were up 4.38 % to Rs 24,564 crore.
European shares fell in choppy trade on Wednesday, ending a seven-day winning run as profit taking emerged after recent surge. Analysts cautioned about earnings expectations. The key benchmark indices in Germany and France were down by between 0.13% to 0.51%. UK's FTSE 100 was flat.
Asian stocks rose today led by material producers and electronics makers, amid mounting speculation a global recovery will boost earnings. Key benchmark indices in China, South Korea, Hong Kong, Japan, and Taiwan rose by between 0.34% to 2.6%. The key benchmark indices in Hong Kong and Singapore were down by between 0.14% to 1.3%.
Trading in the US index futures indicated Dow could fall 41 points at the opening bell today, 22 July 2009.
US markets ended with modest gains after a late rally on Tuesday, 21 July 2009. The Dow gained 67.79 points, or 0.8%, to 8,915.94. The S&P 500 index rose 3.45 points, or 0.4%, to 954.58. The Nasdaq rose 6.91 points, or 0.4%, to 1,916.20. In key corporate earnings after the bell, Apple posted a quarterly profit way past Wall Street forecasts on strong sales of MAC computers and improved margins. The popular search engine, Yahoo's second-quarter profit rose 8% boosted by the company's cost-cutting measures.
As per the provisional figures, the BSE 30-share Sensex was down 221.86 points or 1.47% at 14,840.63. At the day's high of 15,369.42, Sensex rose 306.93 points in mid-morning trade, its highest level since 12 June 2009. At the day's low of 14,786.58, the Sensex fell 275.91 points in late trade.
The S&P CNX Nifty was down 66.75 points or 1.49% to 4,402.35 as per the provisional figures.
BSE clocked a turnover of Rs 6,643 crore, higher than Rs 6,215.28 crore on Tuesday, 21 July 2009.
The market breadth, indicating the overall health of the market turned negative compared to a strong breadth earlier in the day. On BSE, 1,171 shares rose as compared with 1410 that fell. A total of 105 shares remained unchanged.
From the 30 shares Sensex pack, 26 fell and rest rose.
The BSE Mid-Cap index was down 0.83% and the BSE Small-Cap index was down 0.15%.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 2.04% to Rs 1,976.40. The stock came off the day's high of Rs 2,056.30. The Supreme Court on Monday, 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.
RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.
In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row. The government, however, has said that the country's interest must be taken into consideration first and that cannot be held to ransom by a dispute between two industrialists or a previous, private pact between them.
India's largest oil exploration firm by revenue ONGC rose 4.13% ahead of its Q1 June 2009 results on 23 July 2009. Recent reports suggested Oil & Natural Gas Corporation (ONGC) has hired Citigroup to advise it on a bid for Kosmos Energy's stake in an oil field in Ghana in a deal that could be worth between $3 billion and $5 billion.
India's largest dedicated housing finance company by sales, HDFC fell 5.63% even after company's net profit rose 20.68% to Rs 564.92 crore on 22.86% rise total income to Rs 2,849.07 crore in Q1 June 2009 over Q1 June 2008. The lender announced its result during late trade today.
HDFC has reportedly cut lending rates for new customers by 25-50 basis points. The financial institution has restructured its loan baskets to create a new product where loans up to Rs 15 lakh are available at 8.75% as against 9.25% earlier.
Canara Bank declined 1.47% after the bank's gross non-performing assets rose 87.39% to Rs 2,462.94 crore in Q1 June 2009 over Q1 June 2008.
India's largest electric equipment maker by sales Bharat Heavy Electricals (BHEL) fell 3.38% even as net profit rose 22.41% to Rs 470.59 crore on 27.64% rise in total income to Rs 5,898.51 crore in Q1 June 2009 over Q1 June 2008. Bhel outstanding order book stood at Rs 1,24,000 crore. The company announced the result during market hours today.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 1.78%. The company, last week, stood by its stated outlook of 25% growth in order inflows for the current year even as the first quarter ended with a negative note. At the time of announcing Q1 June 2009 results, L&T had during trading hours on Thursday, 16 July 2009 said its order inflow was down 22 % in Q1 June 2009 over Q1 June 2008. The company's order backlog at the end of the June quarter was Rs 71, 650 crore ($14.7 billion).
Other capital goods stocks, Thermax, Siemens, ABB, Crompton Greaves, fell by between 0.26% to 5.94%.
IT stocks fell on profit taking reversing early gains triggered by better-than-expected Q1 June 2009 result by India's third largest IT exporter by sales Wipro. Wipro fell 1.46%. Wipro's consolidated net profit as per Indian accounting rules rose 0.54% to Rs 1015.50 crore on 2.5% fall in sales to Rs 6289.10 crore in Q1 June 2009 over Q4 March 2009. The company announced the results before trading hours today.
Wipro expects 0.91% to 1.9% growth in consolidated revenue from IT Services at between $1035 million to $1053 million in Q2 September 2009 over Q1 June 2009. The guidance is based on constant currency exchange rates
. Its American depository receipt (ADR) fell 1.17% on Tuesday, 21 July 2009.
India's largest IT exporter by sales TCS fell 2.6%. The company's net profit rose 15.27% to Rs 1276.44 crore on 0.12% fall in sales to Rs 5609.60 crore in Q1 June 2009 over Q4 March 2009. The company announced the result after trading hours on Friday, 17 July 2009.
India's largest IT firm by sales Infosys fell 1.64%. The government has launched a Government-to-Business (G2B) services e-biz project with Infosys as the technology partner. The project is among the 27 Central, State and Integrated Mission Mode Projects (MMPs) under the National E-Governance Plan (NEGP).
Power stocks reversed early gains triggered by strong response to Tata Power Company's global depository receipts. Tata Power Company fell 1.23% to Rs 1,115. The stock was volatile. It hit a high of Rs 1,160 and low of Rs 1,115. Tata Power Company during trading hours today, 22 July 2009, said it has raised $335 million from an issue of global depository receipts (GDR). The company said a strong investor responce enbale the company to raise GDR issue size to $335 million from $250 million.
Other power stocks, Reliance Power, Reliance Infrastructure, Power Grid Corporation of India, fell by between 0.68% to 2.36%.
Hindustan Zinc fell 2.96% after its net profit fell 15.2% to Rs 719 crore in Q1 June 2009 over Q1 June 2008.
NMDC rose 1.59% on reports the steel ministry has initiated steps to sell small stake in the firm.
Piramal HealthCare roe 2.25% after its net profit rose 45.48% to Rs 74.11 crore in Q1 June 2009 over Q1 June 2008.
Daily News Roundup - July 22 2009
Tata Power eyes US$250mn via GDR issue (ET)
HDFC cuts new loan rates by 50bps (ET)
Government to kick-off stake sale in two PSUs, Manganese Ore India and NMDC, which could fetch up to Rs250bn (ET)
SAIL to delay expansion plan by two years; to reach 26.2mtpa of hot metal capacity by 2014 (ET)
Infosys bags government contract to set-up an e-biz platform which will give companies easy access to government information and services (BS)
M&M sings an MOU with State Bank of Travancore for vehicle finance (FE)
Reliance Infra acquires RNRL’s 5% stake in Reliance Cementation (ET)
RIL borrows Rs5bn for working capital (BS)
Pfizer increases its stake in Indian arm to 71% (BS)
Reliance Infra to handle ADAG’s cement business (BL)
Essar Oil ties-up US$920mn to fund the expansion of its Vadinar refinery to 16mn tones (BS)
Ranbaxy gets approval from Canadian health regulator to manufacture and market its cholesterol lowering drug, Ran-Simvastatin (ET)
Reliance Capital may sell stake in insurance arm, float IPO (ET)
Adani Group targets 20,000MW generation capacity by 2020 (FE)
Kingfisher is planning to raise up to Rs5bn through equity issuance (BS)
Shriram Transport to raise Rs10bn via NCDs (BS)
Moser Baer’s solar energy unit defers Chennai plant (BS)
Government raises FY09 food grain output estimate by 4mn tones (BL)
Railways freight revenues up 4.1% during April-June 2009 (BS)
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