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Monday, August 10, 2009
Market may snap last two days' losses on positive global cues
The market may recover from last two days' near 5% slide on firm global stocks. However, weak monsoon and spread of the deadly swine flu in the country may cap the upside. Further, there are concerns that strong response to the initial public offer (IPO) of NHPC will suck out liquidity from the secondary market.
A 4-year-old Chennai boy died of swine flu in Chennai after a Pune doctor died of the disease today, 10 August 2009 morning, becoming the fifth fatality of the deadly swine flu in the country. Shares of companies making Tamiflu, the only known anti-viral drug effective to treat to swine flu, may edge higher.
Prime Minister Manmohan Singh on Sunday asked Union Health Minister Ghulam Nabi Azad to step up the preparedness and ensure closer coordination between the Health Ministry and the State governments to check the spread of the highly contagious disease.
Asian stocks rose today buoyed by better than expected US and Japanese data. The key benchmark indices in China, Hong Kong, Singapore and Taiwan rose by between 0.23% to 2.2%.
Japan's Nikkei rose 1.42%. Japanese machinery orders rose for the first time in four months in June 2009 and the current-account surplus widened, the latest signs that the nation's worst postwar recession is easing. Orders rose 9.7% from May 2009, the Cabinet Office said today in Tokyo, more than the 2.6% expected by economists. The surplus more than doubled in June 2009 from a year earlier to 1.15 trillion yen ($11.8 billion), expanding for the first time since February 2008 as exports improved.
US markets surged on Friday, 7 August 2009 on encouraging employment data. For the week, both the Dow and the S&P 500 closed with more than 2% gains. on Friday, the Dow soared 113.81, or 1.2%, to 9,370.07. The broader S&P 500 index rose 13.40, or 1.3 %, to 1,010.48, while the Nasdaq composite index gained 27.09, or 1.4%, to 2,000.25.
In economic news, the jobs report came in better than expected. The report showed 247,000 jobs were cut from non-farm payrolls last month, which was less than the 320,000 expected. The unemployment rate eased for the first time since April 2009 by coming in at 9.4%, down from 9.5%.
Back home, the key benchmark indices fell for the second day in a row on Friday, 7 August 2009 as weak global stocks and below normal rains weighed on investor sentiment. The BSE 30-share Sensex was down 353.79 points or 2.28% to 15,160.24 on that day. Foreign funds on Friday, 7 August 2009, dumped stocks worth a net Rs 1,050.81 crore, provisional data released by the stock exchanges after trading hours showed.
The IPO of NHPC, which opened for subscription on Friday 7 August 2009, was subscribed 3.54 times by 17:00 IST on Friday, data on NSE website showed. The IPO received bids for 594.09 crore shares compared to the issue size of 167.7 crore shares. NHPC is planning to raise Rs 6,040 crore at the upper end of the issue price band of Rs 36. The government kickstarts the divestment process by selling shares in NHPC.
Meanwhile, state-owned NMDC, India's biggest mining company, will reportedly tap the capital market
in two phases. The government will first divest 8.38% of its equity stake through an initial public offer (IPO) in the current financial year, which will be followed by a follow-on offer (FPO) in 2010-11.
Investors continue to bet that the government will undertake economic reforms which may boost economic growth and corporate earnings. The Q1 June 2009 results of India Inc were encouraging, with lower costs helping bottomline growth. The combined net profit of 3,190 companies rose 17% to Rs 73665 crore on 5% fall in sales to Rs 724055 crore in Q1 June 2009 over Q1 June 2008.
But, scanty rains remains a cause of concerns for investors. The South West monsoon rains were 64% below normal in the past seven days to 5 August 2009, dipping for the second straight week at a crucial period for oilseeds and sugarcane, and raising concerns of rising food prices. The total rainfall since the start of season on 1 June 2009 was a quarter below average, the India Meteorological Department said on 6 August 2009. The June-September rains are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
Daily News Roundup - Aug 10 2009
NTPC plans to continue to fight legally for the fuel's contracted price and seek Power Ministry's help. (BS)
Reliance, Lanco, Essar, L&T, GVK are in race for taking up the Rs121.32bn Hyderabad Metro Rail project. (BS)
Tata Motors’ may consider buying 20% stake from Thonburi in Thai truck JV. (BS)
NTPC plans to invest more than Rs90bn in its two new expansion projects located at Jhanor and Kawas in Gujarat. (ET)
Tata Steel plans to invest Rs400bn over the next five years to ramp up its production capacity to 16mn tonnes. (ET)
Bharti Airtel has sought loans worth US$1bn from SBI. (BL)
CAG has sought Petroleum Ministry’s help to access Reliance Industries’ account books.(TOI)
Finance Ministry believed to be favourably inclined towards Petroleum Ministry’s proposal that ONGC be reimbursed the royalty that it would pay on behalf of Cairn India in the Rajasthan oil field.(BL)
Indian Hotels’ arm plans to invest about Rs800mn for setting up seven to eight hotels in the current fiscal. (BS)
Bharti Airtel may increase its offer by 5-10% for a stake in MTN. (ET)
NTPC is likely to set up power plants in Nigeria and Sri Lanka. (BS)
Jaiprakash Hydro-Power plans to add 2,000 mw power generation capacity, comprising hydro and thermal, in the current Five-Year Plan period ending 2012. (ET)
Air India's demand for equity infusion receives support from the Prime Minister. (ET)
Petroleum ministry approves a three-month credit period to Air India for payment of its aviation turbine fuel dues. (BS)
India Cements receives approval for raising around US$100mn. (BS)
Srei Infrastructure unit plans to roll out IPTV services at its 20 common service centers in the rural areas of Orissa by the end of this year. (BS)
Peninsula Land plans to raise a QIP of Rs5bn for acquiring land in Mumbai. (ET)
Mahindra Satyam receives 30 contracts.(BL)
Reliance Power fully acquires Jharkhand Integrated Power, an SPV floated to implement the 4,000MW Tilaiya ultra mega power plant project. (ET)
BHEL plans to airlift critical power equipment from different countries for two NTPC projects critical for meeting the electricity demand during the Commonwealth Games 2010. (ET)
Essar group amongst bidders for Shell’s UK refinery.(TOI)
Moser Baer gets Supreme Court notice on Rs29.78bn tax evasion. (BS)
Berger Paints decides to set up Rs1bn greenfield water-based plant, along with a supporting emulsion facility in southern India. (ET)
Major retailers Future Group, Aditya Birla Retail, Spencer’s and Reliance Retail forms a rainbow coalition to align their sourcing operations and share private labels, logistics, warehouses and hiring details on a transactional payment basis. (ET)
SEBI may give parallel dates to ABG Shipyard and Bharati Shipyard for their open offers to buy additional stake in Great Offshore. (BS)
DoT has given a clean chit to Datacom Solutions on the grounds that there is no violation of the licence norms.(BL)
Tata Communications earmarks Rs100bn capital expenditure over 3 years.(FE)
MTNL invites bids from global players to set up and run its WiMax operations in Delhi and Mumbai on a franchisee basis for a six-year period. (ET)
RPG eyes Rs17bn loan for Haldia thermal project. (ET)
BSNL earmarks a capital expenditure of Rs12.5bn to make its network ready for
India's foreign exchange reserves rose to US$272bn as on July 31, from US$268bn a week earlier.(BL)
Government relaunches its largest ever auction of oil and gas exploration areas, aiming to attract US$3-4bn investment. (BS)
Cement dispatches in July grew 10.6%, as compared to 8.1% a year ago. (BS)
CERC notifies medium-term open access norms.(FE)
Agricultural growth in the current fiscal could slow down to 2.5% from 3%, according to the latest Survey of Professional Forecasters by the RBI.(BL)
CERC issues new rules on transmission.(BL)
Finance Minister says he is unsure of the economy’s direction as other problems may arise from the adverse effects of scanty rainfall.(BL)
The government is likely to come up with an index to track price variation in the services sectors like telecom and railways in the next six months. (BS
Keep your portfolio healthy!
…So if you're not healthy to begin with, getting the flu can easily turn into a very serious medical situation.
We can barely handle a regular flu outbreak. As if the deficit monsoon was not enough, we now have to grapple with the growing concerns over swine flu. Though the situation has not yet reached alarm levels, it might have some effect on sentiment. More worrisome is the virtual disappearance of rains. Food prices are already pretty high and with the festival season approaching, it is likely to spike up further. A drought is the last thing that India needs at this crucial juncture.
Thankfully, the bulls got a dose of good news over the weekend in terms of stronger than expected US jobs data. This has come as a shot in the arm for the market, which is likely to overlook worries over swine flu and shortfall in monsoon. Among the key events to watch out this week would be the IIP numbers and comments from the Fed. We see the Nifty moving in a broad range of 4300-4800 in the near term. Ensure a healthy balance of your portfolio to stay immune from the vagaries of the market.
FIIs were net sellers of Rs10.5bn in the cash segment on Friday on a provisional basis while the local funds pumped in Rs4.14bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs7.92bn. On Thursday, the foreign funds were net sellers at Rs2.46bn in the cash segment. Their net purchases of Indian stocks have crossed $7.4bn year-to-date. Mutual Funds were net buyers of Rs212mn on Thursday.
Asian stocks rose, led by automakers and consumer companies, after the US jobless rate dropped and Japanese machinery orders increased, boosting confidence that the world’s two largest economies are emerging from recessions.
The MSCI Asia Pacific Index climbed 1.4% to 112.28 as of 11:35 a.m. in Tokyo, following a 1% drop last week. The regional benchmark has climbed 59% from a more than five-year low on March 9.
Japan’s Nikkei 225 Stock Average rose 1.3% to 10,545.90. The Hong Kong’s Hang Seng Index climbed 2% to 20,789.
Japanese machinery orders rose for the first time in four months and the current-account surplus widened. Orders rose 9.7% from May, the Cabinet Office said today in Tokyo, more than the 2.6% expected by economists. The current-account surplus more than doubled in June from a year earlier to 1.15 trillion yen (US$11.8bn), expanding for the first time since February 2008 as exports improved.
The US economy may be on the cusp of a recovery and the impact of the nation’s stimulus plan should increase this quarter, said Laura Tyson, an adviser to President Barack Obama. “We may have hit stability, we may be in the beginning of an upturn based on the latest economic data," Tyson, a member of the White House’s Economic Recovery Advisory Board, said yesterday during an interview in Kuala Lumpur.
Nobel Prize- winning economist Paul Krugman said that the deepest slump since the Great Depression may be ending. "It’s quite possible, though not certain, that retrospectively, we’ll say that the recession ended in July or August, maybe September,” Krugman said in a separate interview in the Malaysian capital. “My guess is that we’ve bottomed out now, that August was probably the trough month.”
US stocks rose on Friday, with the Dow and S&P 500 closing at the highest point in nine months, after the July jobs report showed the smallest number of job cuts in nearly a year, adding to recovery hopes.
The Dow Jones Industrial Average gained 114 points, or 1.2%, to 9370.07. The S&P 500 index rose 13 points, or 1.3%, to 1010.48. The Nasdaq Composite index added 27 points, or 1.4%, to 2000.25. All three indexes finished higher for the week.
US employers cut 247,000 jobs from their payrolls in July after slashing a revised 443,000 jobs in June. Economists had forecast job cuts of 325,000. It was the lowest level of losses since last August.
It was the best reading on non-farm payrolls since before Lehman Brothers' collapse last September.
The unemployment rate, generated by a separate survey, fell to 9.4% in July from 9.5% in June, versus forecasts for a rise to 9.6%.
The stock advance was broad based, with 24 of 30 Dow components rising.
The Dow, Nasdaq and S&P 500 all hit fresh 2009 highs earlier last week following three weeks of gains. Since bottoming March 9 at a 12-year low, the S&P 500 has risen 49.4% as of Friday's close.
AIG reported its first quarterly profit in nearly two years on Friday, but the troubled insurer continues to struggle in the aftermath of its near-collapse last fall. AIG still owes taxpayers $87.6 billion. The stock nearly doubled in the run-up to the profit report. AIG gained another 20.5% on Friday.
President Obama on Friday signed into law an extension of the auto sales stimulus program that will keep it running through Labor Day. On Thursday, the Senate approved $2 billion in extra funding for the popular program, which gives consumers up to $4,500 if they turn in gas guzzlers and buy more fuel-efficient models.
US light crude oil for September delivery fell $1.01 to settle at $70.93 a barrel on the New York Mercantile Exchange. Oil prices have been gaining in recent weeks on bets the global economy is close to turning around.
COMEX gold for December delivery fell $3.40 to settle at $959.50 an ounce. Treasury prices tumbled, raising the yield on the benchmark 10-year note to 3.85% from 3.74% late on Thursday. In currency trading, the dollar gained versus the euro and the Japanese yen.
Europe stocks advanced on Friday. The pan-European Dow Jones Stoxx 600 index reversed earlier losses to gain 1.2% to 230.66 after the US Labor Department report. The gains put the index 48% above March lows of 155.38.
Germany's DAX index rose 1.7% to 5,458.96, the UK's FTSE 100 index added 0.9% to 4,731.56 and the French CAC 40 index gained 1.3% to 3,521.14.
Nifty struck a new 2009 high this week. But the bull’s victory was short-lived. Concerns on the monsoon deficit and its wider fallout on the economy, especially on food prices and apprehension over the drought spreading across the country coincided with profit booking across the board. Finally, the NSE Nifty and BSE Sensex closed the week lower by 3.3%.
On Friday, the BSE Sensex slipped 354 points or 2.2% at 15,160 after touching a high of 15,502 and a low of 15,104. The index opened at 15,441 against the previous close of 15,514. The NSE Nifty ended lower by 104 points to shut shop at 4,481.
In Asia, the Nikkei in Japan ended higher by 0.3% at 10,412 while Australia's S&P/ASX ended lower by 0.6% at 4,299. The Hang Seng index in Hong Kong ended lower by 2.5% at 20,375. Shanghai index in China slipped by 2.8% at 3,260.
In Europe, stocks were trading lower. The FTSE in the UK was down 1.1%. The DAX was down 0.7% and the CAC 40 index in France was down 1%.
Coming back to India, among the BSE sectoral indices, the Consumer Durables index was the top loser, losing 4%, followed by the Auto index that was down 3.8%. The BSE Realty index down 3.2% and the BSE Bankex index was down 3%.
The BSE Mid-Cap index ended lower by 2.3% and the BSE Small-Cap index ended lower by 2%.
Within the Sensex, the major losers were RCom, JP Associates, M&M, Maruti and Tata Power. Among the major gainers were NTPC, Tata Steel and Wipro.
Outside the frontline indices, the big losers in the broader market were Tech M, United Spirits, IRB Infra, IDBI Bank and Opto Circuit. On the other hand, gainers included Lupin, Shriram transport, Mphasis and Biocon.
For the week, The top gainers: The top gainers in Sensex were Reliance Industries (up 2.2%), Wipro (up 2%) and Hindalco (up 1%).
The Top Losers: The top losers in the Sensex were Maruti Suzuki (down 8.6%), ITC (down 7.9%), Hero Honda (down 7.9%), Hindustan Unilever (down 7.5%), and DLF (down 7.3%).
The BSE IT Index (down 1.1%): The top losers in the IT sector were Oracle Financial (down 3.7%), TCS (down 3.2%), Patni (down 1.3%) and Infosys (down 1.2%).
Mahindra Satyam ended 2% lower in the week. Mahindra Satyam has outstanding income tax dues of Rs5.3bn, S.S. Palanimanickam, junior finance minister said.
The top gainer was Financial Tech. The stock surged over 9% during the week. Reports stated that the company plans to divest 52% in the MCX-SX bourse by September-end.
Wipro gained 2% during the week. The company announced that it has entered into a 5-year strategic agreement with US-based multi-brand specialty retailer, Charming Shoppers, stated reports.
Among the major gainers were Sasken Communication (up 9%), Wipro (up 2%) and HCL (up 1.4%).
The BSE Consumer Index: The top losers in the consumer durables space were Blue Star (down 8.4%), Mirc Electronics (down 4.1%), Samtel Color (down 2%) and Whirlpool (down 1.5%).
The top gainer was Su-Raj Diamonds (up 3.4%).
The BSE Healthcare Index (down 0.9%): The top losers in the Pharma space were Divi’s Labs (down 11.4%), Ranbaxy Labs (down 6.8%), Strides Arcolab (down 6.5%), Emami (down 5.9%) and Suven Life (down 4.9%).
The top gainers were Astrazeneca Pharma (up 21.9%), Dishman Pharma (up 11.3%), Marksans Pharma (up 6%) and Panacea Biotec (up 4.9%).
Emergency Warning Signs - H1N1 - Swine Flu
If you become ill and experience any of the following warning signs, seek emergency medical care.
In children, emergency warning signs that need urgent medical attention include:
* Fast breathing or trouble breathing
* Bluish or gray skin color
* Not drinking enough fluids
* Severe or persistent vomiting
* Not waking up or not interacting
* Being so irritable that the child does not want to be held
* Flu-like symptoms improve but then return with fever and worse cough
In adults, emergency warning signs that need urgent medical attention include:
* Difficulty breathing or shortness of breath
* Pain or pressure in the chest or abdomen
* Sudden dizziness
* Confusion
* Severe or persistent vomiting
* Flu-like symptoms improve but then return with fever and worse cough
Protect Yourself, Your Family, and Community
* Stay informed. Health officials will provide additional information as it becomes available.
* Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.
* Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hand cleaners are also effective.
* Avoid touching your eyes, nose and mouth. Germs spread this way.
* Try to avoid close contact with sick people.
* If you are sick with a flu-like illness, stay home for at least 24 hours after your fever is gone except to get medical care or for other necessities. (Your fever should be gone without the use of fever-reducing medicine.) Keep away from others as much as possible. This is to keep from making others sick.
* If you are sick and sharing a common space with other household members in your home, wear a facemask, if available and tolerable, to help prevent spreading the virus to others. For more information, see the Interim Recommendations for Facemask and Respirator Use.
* Learn more about how to take care of someone who is ill in "Taking Care of a Sick Person in Your Home"
* Follow public health advice regarding school closures, avoiding crowds, and other social distancing measures.
* If you don’t have one yet, consider developing a family emergency plan as a precaution. This should include storing a supply of extra food, medicines, and other essential supplies.
Market may open firm
The market sentiment is likely to remain bullish following firm Asian markets in current trades and overnight gains in US markets. The renewed buying interest in heavyweights may keep the bias positive for the day. Among the key domestic indices, the Nifty could test higher levels in the 4530-4570 range and has a support at 4420. The Sensex has a likely support at 14888 and may face resistance at 15450.
US indices finished higher on Friday, the July jobs report showed the labor market is starting to show signs of bottoming. With the Dow Jones closing 1.23% higher at 9370 up 114 points, while the Nasdaq changed 27 points up to close at 2000.
The upsurge in both the domestic and US markets spurred the Indian ADRs trading on the US bourses. Tata Motors led the pack with gains of 2.38% followed by Patni Computers gaining 2.16% while Infosys, Wipro, Dr Reddy, Tata Motors, HDFC Bank, VSNL and MTNL surged around 1% each. However, Satyam, ICICI Bank and Rediff slipped around 1-4% each.
Crude oil prices in the international market moved down, with the Nymex light crude oil for September 09 delivery declining by $1.01 to close at $70.93 per barrel. In the commodity space, the Comex gold for December series lost by $3.40 to settle at $959.50 a troy ounce.
Daily trend of FII/MF investment in equities
On August 06 2009, FIIs were net sellers of stocks to the tune of Rs247 crore (purchases worth Rs2580.90 crore and sales of Rs2827 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs21 crore (purchases worth Rs1061 crore and sales of Rs1040 crore).
Encouraging job report pushes US stocks higher
Unemployment rises les thane expected for last month
US stocks ended with good gains for the week that ended on Friday, 07 August, 2009. The gains were led by healthy economic reports, mainly in the housing and employment sectors. There were also a large number of earnings reports, and most of them beat expectations.
The Dow Jones Industrial Average gained 198.46 points (2.2%) for the week to end at 9,370.07. Tech - heavy Nasdaq gained 21.75 (1.1%) to end at 2,000.25. S&P 500 gained 23 (2.3%) to end at 1010.48. With this week's gains, the Dow, Nasdaq and S&P 500 have surely consolidated their positions to their best levels of the year.
Seven of the ten sectors gained during the week led by the financial, industrial and consumer discretionary sectors.
Among manor names that reported earnings during the week, Cisco reported a 18% year-over-year drop in revenue in fiscal Q4, matching expectations, with earnings slightly beating estimates due to the company's cost cutting measures. Cost controls helped Procter & Gamble (PG) top quarterly EPS estimates. But its revenue of $18.66 billion disappointed investors as it was well short of the $19.32 bln consensus.
Among economic data for the week, the positive tone was set early in the week as ISM Manufacturing Index made its seventh straight increase, coming in at 48.9 for July. While the sub-50 reading indicates contraction in the manufacturing sector, the number was still better than the 46.5 expected. Separately, construction spending data for June made a surprise 0.3% increase. It was expected to fall 0.5%.
In the housing data, the National Association of Realtors reported that Pending Home Sales rose 3.6% in June, better than the expected increase of 0.7%. Low prices, low mortgage rates, and the first-time buyer tax credit continued to be attractive inducements for prospective buyers.
In the US market on Friday, 07 August, 2009, The Dow Jones Industrial Average ended higher by 113.8 points at 9,370.07. The Nasdaq Composite Index, ended higher by 27.09 points at 2,000.25. S&P 500 ended higher by 13.4 points at 1,010.48.
The Labor Department reported on Friday, 07 August, 2009 that the unemployment rate, in July, 2009 unexpectedly fell to 9.4% as nearly a half a million people dropped out of the labor market. U.S. nonfarm payrolls declined by 247,000 to 131.5 million in July, the 19th consecutive month of job losses. It was the fewest lost payroll jobs since last August, 2008.
But the number of people who've been out of work longer than six months soared by a record 584,000 to 5 million, accounting for more than a third of all unemployment for the first time on record.
Among earning reports, AIG was a primary leader in the financial sector after posting its first profit since 2007. What's more, the company's earnings exceeded expectations. On the other hand, Ambac Financial
plummeted after reporting a considerable loss for the second quarter.
In the currency market on Friday, the dollar index, a six-currency gauge of the greenback's value, rose by almost 1.2%.
Crude prices ended lower on Friday, 07 August, 2009. Prices fell as the dollar strengthened following an upbeat job report from the Labor Department in US. Inspite of the drop, crude managed weekly gains. On Friday, crude-oil futures for light sweet crude for September delivery closed at $70.93/barrel (lower by $1.01 or 1.4%). During intra day trading, it rose to a high of $72. For the week, crude ended higher by 2.1%.
For the year 2009, Dow is up by 6.8%. The Nasdaq and S&P 500 are up by 26.8% and 11.9% respectively.
Precious metals manage mixed end
Gold turns pale but silver shines though both manage weekly gains
Yellow metal prices fell on Friday, 07 August, 2009. Prices fell as the dollar strengthened following an upbeat job report from the Labor Department in US. But silver managed to add some shine to itself by going up.
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 Friday, gold for August delivery ended at $957.3, lower by $3.4 (0.4%) an ounce on the New York Mercantile Exchange. For the week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 7.8%.
Gold ended July, 2009 higher by 2.8%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (10.3%) since then.
On Friday, Comex silver futures for September delivery rose 2.3 cents (0.2%) at $14.668 an ounce. For the week, silver ended higher by 5.2%.
Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 31.7% this year. For 2008, silver had lost 24%.
In the currency market on Friday, the dollar index, a six-currency gauge of the greenback's value, rose by almost 0.7%.
The Labor Department reported on Friday, 07 August, 2009 that the unemployment rate, in July, 2009 unexpectedly fell to 9.4% as nearly a half a million people dropped out of the labor market. U.S. nonfarm payrolls declined by 247,000 to 131.5 million in July, the 19th consecutive month of job losses. It was the fewest lost payroll jobs since last August, 2008.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed higher by Rs 13 (0.08%) at Rs 14,868 per 10 grams. Prices rose to a high of Rs 14,875 per 10 grams and fell to a low of Rs 14,853 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 18 (0.07%) lower at Rs 23,386/Kg. Prices opened at Rs 23,400/kg and fell to a low of Rs 23,359/Kg during the day's trading.
Crude slips down
Friday's loss curtails crude's weekly gains
Crude prices ended lower on Friday, 07 August, 2009. Prices fell as the dollar strengthened following an upbeat job report from the Labor Department in US. Inspite of the drop, crude managed weekly gains.
On Friday, crude-oil futures for light sweet crude for September delivery closed at $70.93/barrel (lower by $1.01 or 1.4%). During intra day trading, it rose to a high of $72. For the week, crude ended higher by 2.1%.
For the month of July, 2009, crude ended lower by a marginal 0.6%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 43% since then. Year to date, in 2009, crude prices are higher by 47.5%.
In the currency market on Friday, the dollar index, a six-currency gauge of the greenback's value, rose by almost 0.7%.
The Labor Department reported on Friday, 07 August, 2009 that the unemployment rate, in July, 2009 unexpectedly fell to 9.4% as nearly a half a million people dropped out of the labor market. Market was expecting a figure of 9.7%. U.S. nonfarm payrolls declined by 247,000 to 131.5 million in July, the 19th consecutive month of job losses. It was the fewest lost payroll jobs since last August, 2008.
Earlier during the week, EIA reported that crude supplies increased 1.7 million barrels to 349.5 million barrels in the week ended 31 July, 2009. Market was expecting a rise of 1.5 million barrels. The Energy Department also said that gasoline stocks fell by 200,000 barrels and distillate inventories dropped by 1.1 million barrels last week.
Also at the Nymex on Friday, September reformulated gasoline fell 5.26 cents, or 2.6%, to $2.0081 a gallon, and September heating oil dropped 2.45 cents, or 1.3%, to $1.9122 a gallon.
September natural gas futures rose 6.9 cents, or 1.8%, to $3.674 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 August delivery closed lower by 35 (1.02%) at Rs 3,392/barrel. Natural gas for August delivery closed unchanged at Rs 177.7/mmbtu.
Dhampur Sugar Mills
We recommend a buy in Dhampur Sugar Mills from a short-term perspective. It is evident from the charts of the stock that it has been trending upwards since November 2008 low of Rs 19.50. Since then, it has been forming higher peaks and higher troughs. In mid-July, the stock took support around Rs 50 and bounced resuming its long-term uptrend. The stock surpassed a medium-term resistance around Rs 72last week and is currently trading well above 21- and 50-day moving averages. The intermediate-term uptrend from March low is intact. We notice that there is an increase in weekly volume over the past four weeks. Both daily and weekly relative strength index (RSI) are featuring in the bullish zone. The daily as well as weekly moving average convergence and divergence indicators are hovering in the positive territory. Our short-term outlook is bullish on the stock. We anticipate it to move up until it hits our price target of Rs 85. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 73.
via BL
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