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Tuesday, January 05, 2010
Sensex to open gap-up
Headlines for the day
M&M enters heavy CV segment in partnership with Navistar of US
ACC opens 4th cement plant in Karnataka
Lanco Infra bags Rs2,106-crore orders
Marico arm buys Code 10 from Colgate-Palmolive
Novartis to get leg-up in India with Alcon buy
Events for the day
Major corporate action:
Listing of equity shares of Godrej Properties Ltd
Pre-market report
Global signals
On Monday, the European stocks rose to 15 month high helped by upbeat economic data and buying in banking stock. FTSE 100 closed 1.62% higher at 5500.
The US markets closed closes higher on first trading day of 2010. Nasdaq closed at 2308, 39 points higher.
In today's trade, all the Asian indices are trading higher, except Kospi that trading marginally lower. At the time of writing this report, SGX Nifty trading higher by 53 points
Indian markets
Owing to strong and positive cues coming from the global market, the domestic indices are expected to open higher and may continue its northbound journry.
Among the local indices, the Nifty could test the 5250-5300 range on the up side, while on the down side it could find support at 5180 and 52000. While the Sensex is likely to get support at 17100 and may face resistance at 17600.
Indian ADR's
Indian ADRs trading on the US bourses, all the ADRs closed higher on first trading day of 2010. MRNL surged the most with gains of 7.49% followed by Tata Motors that rose by 6.94%.
Commodity cues
In the commodity space, wherein the Crude oil prices recorded gain, with the Nymex light crude oil for February series rose by $2.15 to settle at $81.51 a barrel.
In the metals space, Comex Gold for February series rise by $23.30 to settle at $1119.50 to a troy ounce.
In the metals space, Comex Silver for March series rise by $0.60 to settle at $17.45 to a troy ounce.
Daily trend of FII/MF investment in equities
On January 04, 2010, FIIs were the net buyers of the Indian Stocks in the tune of Rs834.00 crore (with the gross purchase of Rs2702.50 crore and gross sales of Rs1868.50 crore).
While the Domestic mutual funds, on December 24, 2009, were the net buyers of the stocks in the tune of Rs144.50 crore (with gross purchase of Rs713.90 crore and gross sales of Rs569.40 crore).
Market may extend Monday's gains on firm Asian stocks; Godrej Properties lists today
The market may extend Monday (4 December 2009)'s gains on firm Asian stocks. US stocks jumped on Monday after U.S. manufacturing expanded at the fastest pace in more than three years.
The government does not need to tighten monetary policy now and risk stalling a nascent economic recovery as inflation pressure was mainly caused by high food prices, the chief economic adviser to the finance ministry Kaushik Basu said on Monday.
Kaushik Basu also said Asia's third-largest economy was likely to return to 9 % growth in the fiscal year 2010/11, after topping 7.5 % in the current year to end-March. "You don't want to have an effect across the board, which increases unemployment, which holds back the growth rate," he said, adding inflation would "peter out" over a few months. "Right now, it is a sector-specific intervention that is needed, which is in food sector and that is what the government is doing," he said.
Basu said the economic rebound seen in the first half of the current year would continue in the December quarter, despite a poor farm output.Basu said India's high savings and investment rates would help sustain the recovery and an annual economic growth rate of 10 percent is possible within "a couple of years".
India's food price inflation was at 19.83 % in the 12 months to 19 December 2009 on supply shortages after the weakest monsoon in 37 years, followed by floods in parts of the country that hit crops.
The Reserve Bank of India (RBI) has said it was worried about a spillover of higher food prices to other sectors, raising expectations of monetary tightening by the central bank to dampen inflationary expectations.
Reserve Bank of India (RBI) deputy governor Shyamal Gopinath said on Monday there have been no concerns on capital inflows.
Meanwhile, the latest data showed that the rate of growth in manufacturing rose for the first time in three months in December 2009, with activity reaching its highest since May 2009 on sharp rises in new work and output. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, rose to 55.6 in December from 53.0 in November. The reading was the strongest since May's 55.7, which was the strongest in 2009.
India's exports sector has bounced back with outward trade growing by 18% in November 2009, the commerce ministry said. The export figures turned positive after staying in the red for 13 months. The value of exports in November 2009 jumped to $13.19 billion compared to $11.16 billion.
Data earlier this month showed that corporate advance tax payments for the October-December 2009 quarter shot up sharply, suggesting a higher profit growth in corporate sector in the third quarter (October-December) of the current fiscal. Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter. The company-wise break-up of advance tax collection suggests a broad-based recovery with automobiles, cement, metals and consumer goods, doing well.
Shares of Godrej Properties will list on the bourses today. The company has set issue price at Rs 490.
Most of the Asian stocks rose on Tuesday led by electronics and mining companies, after U.S. manufacturing expanded at the fastest pace in more than three years and commodity prices advanced. The key benchmark indices in Hong Kong, Indonesia, Japan, and Singapore rose by between 0.55% to 0.95%. But, the key benchmark indices in China, South Korea and Taiwan fell by between 0.31% to 0.54%.
US stocks rallied to their highest levels in over a year on the first trading day of 2010 on Monday after a report that showed growth in the manufacturing sectorAll three benchmark indices hit 15 month highs. The Dow Jones Industrial Average gained 155.91 points, or 1.5%, to 10,583.96. The Standard & Poor's 500 index added 17.89 points, or 1.6%, to 1,132.99, while the Nasdaq Composite Index rose 39.27 points, or 1.7%, to 2,308.42.
In key economic data, the ISM's gauge of manufacturing showed growth for a fifth straight month, rising to 55.9 in December 2009 from 53.6 in November. Participants shrugged off the two-month old construction spending data that showed a slightly steeper-than-expected 0.6% monthly decline for November.
Closer home, Indian stocks kicked off 2010 on an upbeat note, with key benchmark indices hitting multi-months high on Monday 4 January 2010 as strong auto sales, a jump in manufacturing activity in December 2009, and the latest data showing a surge in exports in November 2009, underpinned sentiment. The BSE 30-share Sensex rose 93.92 points or 0.54% to 17,558.73, its highest closing since 2 May 2008 on that day.
As per provisional figures on NSE, foreign funds bought shares worth Rs 613.42 crore and domestic funds bought shares worth Rs 2330.25 crore on Monday.
US stocks kick off New Year with a bang
Indices register new 52-week high levels
US stocks started New Year with a bang on Monday, 04 January 2009. Stocks registered solid gains throughout the day riding on the back of upbeat economic report and slipping dollar. The lower dollar popped up the energy and material sectors, which lent utmost support to the market.
At the end of the day on 04 January, 2010, the Dow Jones Industrial Average ended higher by 155.91 points at 10,583.96. Nasdaq ended higher by 39.27 points at 2308.2. S&P 500 ended higher by 17.89 points at 1132.99. It was new 52 week high for the indices.
All ten economic sectors ended higher for the day led by materials, energy, industrials, and financial sectors. Bank of America, Boeing, United Technologies, and Intel were the main Dow winners today.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell against almost all the counterparts. The dollar index settled for a loss of 0.5%.
Among economic reports expected for the day today, The Institute for Supply Management in US reported on Monday, 04 January, 2010 that manufacturing sector in US expanded in December for the fifth straight month.
The ISM manufacturing index rose to 55.9% from 53.6% in November. It was the highest since April 2006. Market was expecting a modest gain to 54.2%. Readings over 50% indicate that more manufacturing firms said business was improving than said it was worsening.
In a separate report, the government in US reported on Monday, 04 January, 2010 that U.S. construction projects fell in November, marking the seventh straight monthly decline. Overall, spending on construction projects fell 0.6% in November in line with expectation. Year over year, construction spending is down by 13.2% in November.
Mahindra Navistar Automotives, a joint venture between Navistar International and India's Mahindra & Mahindra announced its plans to start exporting its trucks in two years and reportedly said that it will initially export to South and Southeast Asian countries and South Africa.
Crude prices ended substantially higher on Monday, 04 January 2010, the first day of trading of FY 2010. Prices rose as the dollar fell sharply. Upbeat economic reports also helped crude oil glide up. On Monday, crude-oil futures for light sweet crude for February delivery closed at $81.51/barrel (higher by $2.15 or 2.7%). Crude settled above $81 for the first time in two months.
All the Indian ADRs registered healthy gains today. Tata Motors and MTNL were the largest gainers soaring 6.9% and 7.5% respectively. HDFC Bank and ICICI Bank, each gained around 2.7%.
For tomorrow, there are no economic or earning reports expected.
Prism Cement
We recommend a buy in Prism Cement from a short-term perspective. It is evident from the charts that after retracing 50 per cent of the stock's up move (from October 2008 low to September 2009 high), the stock found support at around Rs 36 in early November 2009. Subsequently, the stock resumed its longer-term uptrend. The stock surpassed its 21- and 50-day moving averages in mid of December and is currently trading well above them. For the past three trading sessions the stock has been heading higher accompanied by above average volumes. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI has entered the zone from the neutral region. Both the daily and weekly moving average convergence and divergence indicators are hovering in the positive territory, signalling signs of optimism. Our short-term outlook is bullish for the stock. We expect its upward momentum to continue until it hits our price target of Rs 56. Traders with short-term perspective can consider buying the stock while maintaining a stop-loss at Rs 48.
via BL
Base metals take a big leap
Red metal rises for sixth straight session
Copper prices ended higher at Comex and LME on Monday, 04 January 2010. Upbeat economic reports at US and China, weak dollar and strike concerns at the world's second largest mine took red metal prices higher today.
At USA, copper futures for March delivery ended higher by 5.9 cents (1.8%) to 3.406 a pound. It was the sixth straight session rise for copper. Copper ended FY 2009 higher by 140%.
At LME, copper for delivery in three months ended higher by $125 (1.7%) at $7,500. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
As per latest reports, workers at Codelco's Chuquicamata mine went on a strike from 4th January, 2010, in Chile. The company is the world's biggest copper miner. Workers voted to strike after rejecting a 3.8% pay increase offered by Codelco. The union sought 5%.
Copper ended substantially higher last year on expectations of revived global economic growth along with a decline in the dollar. The metal was also pushed higher by record first-half imports to China, the world's largest user.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell against almost all the counterparts. The dollar index settled for a loss of 0.5%.
Among economic data expected for the day, The Institute for Supply Management in US reported on Monday, 04 January, 2010 that manufacturing sector in US expanded in December for the fifth straight month. The ISM manufacturing index rose to 55.9% from 53.6% in November. It was the highest since April 2006. Market was expecting a modest gain to 54.2%. Readings over 50% indicate that more manufacturing firms said business was improving than said it was worsening.
Also in China, an industry report showed that manufacturing in China, the world's biggest metals user, expanded last month by the most since April 2004.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for February delivery closed at Rs 347.35/Kg. The closing price was Rs 3.05/Kg (0.88%) higher than previous closing price. Prices rose to a high of Rs 349.4/Kg and fell to a low of Rs 344.8/Kg during the day's trading.
Among other metals traded in the LME on Monday, lead gained 2% to end at $2,480 a ton and zinc gained 2.1% to end at $2,613 a ton. Nickel gained 1.5% to end at $18,798. Aluminium rose 1.4% to end at $2,260 a ton.
Daily news Roundup - Jan 5 2010
Reliance Industries raised Rs26.7bn by selling a part of its treasury stock to LIC, to create a war chest to acquire the bankrupt chemicals giant LyondellBasell. (BS)
Larsen & Toubro has bagged Rs9.9bn order from the GNFC for setting up a 1,120mn tons per day ammonia equivalent natural gas-based synthesis gas generation plant at Bharuch, Gujarat. (BL)
Suzlon Energy bags second order of about Rs1.6bn from ITC Ltd, for setting up 21MW wind turbines in Maharashtra and 6MW in Karnataka. (BL)
Marico has entered the hair-styling market in Malaysia by acquiring Code 10, a Colgate-Palmolive owned brand, for an estimated Rs2.8bn. (BL)
Ranbaxy Laboratories has launched a new skincare medicine Lulifin (Luliconazole) through an exclusive in licencing agreement with Japan’s Summit Pharmaceuticals International. (ET)
Central Bank of India plans to sell non-performing assets (NPAs) of 41 industrial units with an outstanding of Rs4.1bn to clean up its balance sheet. (BS)
Dr Reddy's diabetic drug has showed encouraging results in the final lap of human clinical trials. (BS)
M&M enters heavy CV segment in partnership with Navistar of US. (BS)
Lanco Infratech has bagged three contracts aggregating Rs21.1bn from one of its subsidiaries, Lanco Kondapalli Power Private Limited, for various works. (BS)
Bharat Forge plans to invest Rs15bn to expand its non-automotive business. (BL)
Ashok Leyland to roll out 25 products in the next eighteen months from its newly launched truck platform and will shift all existing products to it by 2013. (FE)
Novartis AG’s plans to acquire a majority stake in the world’s largest eye-care company, Alcon, will give a boost to its Indian operations as it will get a new basket of products. (BS)
ACC opens 4th cement plant in Karnataka. (BS)
Zydus Cadila has received the approval of the Drug Controller General of India (DCGI) to conduct multi-centric clinical trials for the H1N1 (swine flu) vaccine in the country. (BS)
Renault plans to launch zero emission electric vehicles (EVs) in India by the middle of this decade. (BS)
RBI to consider the introduction of credit default swaps. (ET)
Government may blacklist ethanol makers on failure to supply to OMCs.(BS)
The roll-out of the GST is certain to be delayed beyond its scheduled launch date of April 1 this year because of administrative and constitutional constraints. (ET)
India's exports rose at an annual rate of 18.2%yoy for the month of November to US$13.2bn. Imports dropped 2.6%yoy to US$22.8bn. (FE)
IRDA is set to link the amount of capital that companies need to earmark for their business with the economic cycle. (ET)
Twist likely later…
Uncertainty will always be part of the taking charge process.
As bulls take charge of the proceedings at start, investors will try to grapple with concerns on valuations. India has always commanded a premium; some more head room is always there. How much is anybody’s guess! The budget could play some role in shaping the roadmap for the economy and markets. Hopefully, the FM will not disappoint this time. A major concern right now is on inflation. Crude oil has crossed $80 per barrel. Key inflation barometers are hovering between 15-20%.
The start of the year wasn’t bad for the bulls across world markets. Strong manufacturing data and favourable comments from Fed officials did the trick. Back home too, the Government is no mood to reverse the fiscal stimulus as yet. Even the monetary tightening is not expected to be aggressive. Possible near-term trigger could come from India Inc’s report card. The critical factor would be the outlook for FY11.
Today, we expect another positive opening on the back of overnight rally on Wall Street, but the mood could turn a little sour later in the day. European markets too posted smart gains. However, Asian markets are mixed. The opening gains could be limited as profit booking is likely to set in sooner than later.
FIIs were net buyers in the cash segment on Monday at Rs6.13bn on a provisional basis. The local funds were net buyers of Rs23.3bn, according to figures published on the NSE's web site. This is primarily due to the Reliance Industries' treasury share sale. In the F&O segment, the foreign funds were net sellers at Rs505.4mn. As per the SEBI figures, FIIs were net buyers of Rs8.34bn in the cash segment on Thursday (Dec. 31).
US stocks kicked off the new year on a strong note on Monday after a report showed manufacturing activity is picking up and the weak dollar propelled commodity prices and stocks.
The Dow Jones Industrial Average rallied 156 points, or 1.5%. The S&P 500 index rose 18 points, or 1.6%. The Nasdaq Composite gained 39 points, or 1.7%. All three major gauges closed at 15-month highs.
The first few trading sessions of a new year are typically positive and the advance has to sustain for several more days on strong trading volume before one can convincingly say that the rally has recharged.
Stocks fell on Thursday in a thinly traded session on the last day of 2009. All financial markets were closed on Friday in observance of New Year's Day. The last month of 2009 saw stocks churning in a narrow range, managing modest gains. The market lost some momentum in November and December. That slowdown coincided with the dollar beginning to firm up.
A tumultuous 2009 ended with substantial gains. The S&P 500 gained 23.4%, the Dow industrials gained 18.8% and the Nasdaq composite gained 44%. Stocks are up even more substantially since bottoming in March at the height of the financial market crisis. After closing at a 12-year low on March 9, the Dow gained 59% and the S&P 500 gained 65% through year end. After closing at a 6-year low on the same date, the Nasdaq gained 79%.
In the day's main economic report, the Institute for Supply Management's manufacturing index rose to 55.9 in December from 53.6 in November, signifying a wider expansion in the sector. Economists thought it would rise to 54.3.
Stronger manufacturing reports were also released in Asia as well as Europe, adding to bets that the global manufacturing sector is recovering.
A separate report from the US government showed that construction spending fell 0.6% in November versus forecasts for a drop of 0.5%. Spending fell 0.5% in October.
Swiss drugmaker Novartis AG plans to take control of Alcon by paying $38.5 billion to buy the 77% of the eye care products maker it doesn't already own. The deal involved Novartis buying out Nestle SA's 52% stake in Alcon for $28 billion in cash and then merging with Alcon to access the remaining 23% held by minority shareholders. Alcon shares fell nearly 6%.
Federal Reserve chairman Ben Bernanke said on Sunday that the central bank's decision to keep interest rates very low between 2002 and 2006 was appropriate and not the cause of the housing market bubble. He said that regulation would have been a better way to avert the collapse that led to the worst financial crisis since the Great Depression.
The dollar tumbled versus other major currencies. The weaker dollar gave a lift to dollar-traded commodities.
COMEX gold for February delivery settled up $22.10 to $1,118.30 an ounce. Gold closed at an all-time high of $1,218.30 an ounce earlier this month.
US light crude oil for February delivery gained $2.15 to settle at $81.51 a barrel on the New York Mercantile Exchange, the highest close since October 2008.
Treasury prices rose, lowering the yield on the 10-year note to 3.81% from 3.84% late on Thursday.
European stocks began the new year higher. After finishing 2009 with a 29% return - the best since 1999 - the pan-European Dow Jones Stoxx 600 rose 1.6% to 257.31. The index wasn't calculated on Thursday, when markets in Britain, France and some other European countries were only open for a half day.
Germany's benchmark DAX index gained 1.5% to 6,048.30 to recapture the 6,000 mark, the French CAC 40 index rose 2% to 4,013.97 to cross the 4,000 threshold and the UK's FTSE 100 index added 1.6% to 5,500.34.
The start to trading may have been advanced by an hour, but the extended hours had no major impact on volume; may be a few traders and investors are still in a holiday mood. Nevertheless, the very first day of trading saw the Indian markets carrying forward the previous year’s momentum.
The NSE Nifty index managed to close at a 19-month high on account of impressive sales performance by the Auto, Cement and Steel companies. The upswing was supported by a firm start to equity markets across Europe, lifting the sentiment on Dalal Street.
The BSE Sensex gained 94 points to end at 17,559 after touching a high of 17,583 and a low of 17,378. The NSE Nifty advanced 31 points to end at 5,232.
Equity markets in Asia were mixed, the Nikkei in Japan was up 1%, while Australia's S&P/ASX ended flat. However, the Shanghai SE Composite fell 1% and Hang Seng index in Hong Kong was down 0.3%.
In Europe, stocks were trading in the green. The DAX in Germany was up 0.8% and the CAC 40 index in France was up 1%. The FTSE in the UK was up 0.5%.
Coming back to India, among the BSE sectoral indices, the Consumer Durables index was the top gainer, adding 2%, followed by the Metal index that was up 2% and the BSE Auto index was up 2%. Even the BSE Mid-Cap index gained 1.6% while the BSE Small-Cap index was up 1.5%.
Among the 30-components of Sensex, 23 stocks ended in the positive terrain and 7 ended in the red. ACC, JP Associates, M&M, Tata Motors and Grasim were among the top gainers.
On the other hand, among the major losers were NTPC, Reliance Industries, Bharti Airtel and Maruti.
Outside the frontline indices, the big gainers in the broader market were RCF, Chambal Fert, GTL Infra, Gujarat NRE Coke and Ultratech Cement. On the other hand, losers included Central Bank, Torrent Power, PFC and Container Corp.
Reliance Industries shares hogged the limelight on the first day of the year after the company sold treasury shares worth Rs25.75bn.
About 25.91mn equity shares or 0.78% of the company changed hands in multiple block deals on the BSE and NSE at an average price of Rs1035 per share. Reliance Industries last year had raised US$658mn through treasury sale.
Shares of Reliance Industries ended lower by 1.2% to end at Rs1075, the stock had hit an intra-day low of Rs1022 in the early trades.
Pantaloon Retail announced that the board has decided the Transfer of Value Retail Business of the Company to its wholly owned subsidiary, "Future Value Retail Ltd." (FVRL) with all its assets, rights, liabilities / obligations of all nature and kind, along with its employees related to Value Retail Business on a going concern basis through agreements and such other modes as may be deemed expedient with effect from January 01, 2010.
The Value Retail Business would commence with effect from January 01, 2010 in Future Value Retail Ltd.
The scrip gained 1.5% to end at 388, it opened at Rs387 it touched an intra-day high of Rs394 and a low of Rs378 and recorded volumes of over 53,000 shares on BSE.
Marico announced that it entered into Malaysian hair styling market through the acquisition of the brand code 10 from Colgate-Palmolive company. The deal for an undisclosed consideration envisages the acquisition of the Brand Code 10 and related IPR by Marico Malaysia Sdn Bhd, a wholly owned subsidiary of Marico Middle East FZE. The Code 10 range comprises hair creams and hair gels.
Shares of Marico erased early gains and ended lower by 0.7% to end at Rs102. The scrip opened at Rs104.45 it touched an intra-day high of Rs105.50 and a low of Rs101.8 and recorded volumes of over 0.24mn shares on BSE.
On the other hand, shares of Colgate advanced 4.2% to end at Rs686. The scrip opened at Rs665 it touched an intra-day high of Rs690 and a low of Rs657 and recorded volumes of over 0.34mn shares on BSE.
Bharat Forge announced the commissioning of its new fully integrated Ring Rolling Facility at its Centre for Advanced Manufacturing at Baramati. The facility was inaugurated by Dr. Albert Hieronimus, President & CEO, Bosch Rexroth AG.
Shares of Bharat Forge advanced by 1.4% to end at Rs275. The scrip opened at Rs272 it touched an intra-day high of Rs277 and a low of Rs270 and recorded volumes of over 0.14mn shares on BSE.
Welspun-Gujarat Stahl announced that the board of directors decided not to pursue the Scheme of Arrangement in the nature of demerger and transfer of plate cum coil mill division of the Company in to a subsidiary Company.
The stock gained 2.3% to end at Rs276, it opened at Rs270 it touched an intra-day high of Rs277.5 and a low of Rs270 and recorded volumes of over 0.39mn shares on BSE.
Suzlon shares erased early gains and end at flat at Rs89.90. The company won repeat orders from ITC Limited for two new projects totaling 27MW in Karnataka and Maharashtra. The scrip opened at Rs91.95 it touched an intra-day high of Rs91.95 and a low of Rs89.25 and recorded volumes of over 6.5mn shares on BSE.
Precious metals kick off New Year with brightness
Prices end higher as dollar slips sharply
Bullion metal prices rose on the first day of trading of FY 2010 on Monday, 04 January 2010. Prices rose as the dollar fell sharply. Upbeat economic reports also helped precious metals shine.
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 Monday, gold for February delivery ended at $1,118.3 an ounce, higher by $22.1 (2%) an ounce on the New York Mercantile Exchange. During intra day trading, it rose to a high of $1,124.6.
Gold ended FY 2009 higher by 24%. In 2008, gold prices ended higher by 5.5%.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end.
On Monday, March Comex silver futures ended higher by 61.8 cents (3.7%) at $17.463 an ounce.
Silver futures ended 2009 up 50%. Silver futures had hit a low at $10.42 on 15 January, 2009 and hit a high at $19.30 per ounce on 2 December, 2009. Like gold, silver also ended lower than its all time high level.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell against almost all the counterparts. The dollar index settled for a loss of 0.5%.
Among economic data expected for the day, The Institute for Supply Management in US reported on Monday, 04 January, 2010 that manufacturing sector in US expanded in December for the fifth straight month. The ISM manufacturing index rose to 55.9% from 53.6% in November. It was the highest since April 2006. Market was expecting a modest gain to 54.2%. Readings over 50% indicate that more manufacturing firms said business was improving than said it was worsening.
At the MCX, gold prices for February delivery closed higher by Rs 97 (0.57%) at Rs 16,830 per ten grams. Prices rose to a high of Rs 16,894 per 10 grams and fell to a low of Rs 16,656 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 410 (1.5%) higher at Rs 27,245/Kg. Prices opened at Rs 26,821/kg and rose to a high of Rs 27,341/Kg during the day's trading.
Crude shoots up
Price crosses $81 for first time in two months
Crude prices ended substantially higher on Monday, 04 January 2010, the first day of trading of FY 2010. Prices rose as the dollar fell sharply. Upbeat economic reports also helped crude oil glide up.
On Monday, crude-oil futures for light sweet crude for February delivery closed at $81.51/barrel (higher by $2.15 or 2.7%). Crude settled above $81 for the first time in two months.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October this year and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then.
A year before, crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell against almost all the counterparts. The dollar index settled for a loss of 0.5%.
Among economic data expected for the day, The Institute for Supply Management in US reported on Monday, 04 January, 2010 that manufacturing sector in US expanded in December for the fifth straight month. The ISM manufacturing index rose to 55.9% from 53.6% in November. It was the highest since April 2006. Market was expecting a modest gain to 54.2%. Readings over 50% indicate that more manufacturing firms said business was improving than said it was worsening.
Among other energy products on Monday, February gasoline rose 2.5% to $2.1044 a gallon and February heating oil gained 3.5% to $2.1905 a gallon.
Also on Monday, February natural gas rallied 5.6% to $5.884 per million British thermal units. Consumers have been using more natural gas in recent weeks as the cold weather, which could last into February, hit the U.S.
At the MCX, crude oil for January delivery closed higher by Rs 39 (1%) at Rs 3,766/barrel. Natural gas for January delivery closed higher by Rs 9.5 (3.6%) at Rs 270.6/mmbtu.
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