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Wednesday, December 12, 2007
Bulk Deal Watch
12-DEC-2007,EDELWEISS,Edelweiss Capital Limited,FID FUND MAURITIUS LTD,BUY,982000,1535.78,-
12-DEC-2007,EVERONN,Everonn Systems India Lim,JPMORGAN INDIA EQUITY FUND,BUY,105262,628.02,-
12-DEC-2007,RJL,Renaissance Jewellery Lim,DEUTSCHE INTL TRUST CORPN (C.I.) LTD A/C DBMGOF (MAU) LTD,BUY,201500,175.36,-
12-DEC-2007,RJL,Renaissance Jewellery Lim,J M FINANCIAL MUTUAL FUND,BUY,179417,173.06,-
12-DEC-2007,SRF,SRF Ltd.,SUNDARAM BNP PARIBAS SELECT MIDCAP,BUY,840000,185.67,-
12-DEC-2007,WANBURY,Wanbury Limited,RHODES DIVERSIFIED FCCB ACCOUNT,SELL,77815,140.00,-
12-DEC-2007,VISAKAIND,Visaka Industries Ltd.,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,140000,98.23,-
Sensex ends up 85pts; Edelweiss zooms 83%
The Sensex opened with a negative gap of 94 points at 20,197 following the sharp drop in the overseas markets after the US Fed cut its key rate by a lower-than-expected 25 bps.
The index soon slipped to a low of 20,045 - down 246 points from the previous close - in early trades.
The index, thereafter, stabilised and began to recover as the day progressed. Aggressive buying in the last hour of trade saw the index rally to a fresh all-time intra-day high of 20,419 - up 374 points from the day's low.
The Sensex finally ended with a gain of 85 points at a new closing record of 20,376.
The Small-cap index rallied nearly 2% to 11,885, and the Mid-cap index surged 1.7% to 9,339.
The NSE Nifty recovered from a low of 6005, and zoomed to a fresh all-time intra-day high of 6176 before finally settling with a gain of 62 poins at 6159.
The market breadth on the BSE was fairly positive with advancing stocks outnumbering declining stocks nearly 3:1 - out of 2,924 stocks traded, 2,139 moved up, 750 were down and the rest were unchanged today.
INDEX MOVERS...
HDFC zoomed over 5% to Rs 3,104. Reliance Communications and Tata Steel soared 3.5% each to Rs 766 and Rs 864, respectively.
NTPC and Hindalco surged over 3% each to Rs 251 and Rs 206, respectively.
Cipla and Bharti Airtel rallied over 2% each to Rs 200 and Rs 1,054, respectively.
ONGC gained 1.4% at Rs 1,256. TCS and ITC were the other major gainers at Rs 1,049 and Rs 189, respectively.
...AND THE SHAKERS
Infosys plunged over 3% to Rs 1,685, and Satyam dropped 2.4% to Rs 431.
ICICI Bank slipped 2% to Rs 1,290.
EDELWEISS SHINES ON DAY 1
Edelweiss Capital listed at a premium of 75% on the BSE at Rs 1,444 as against the issue price of Rs 825. The stock zoomed to a high of Rs 1,609, and finally ended with a huge gain of 83% at Rs 1,510.
Renaissance Jewellery listed at Rs 190 on the BSE - a premium of 26.7% against its issue price of Rs 150. The stock soared to a high of Rs 200, and then corrected to a low of Rs 163 before closing at Rs 165 - a gain of 10%.
VALUE & VOLUME TOPPERS
Debutant Edelweiss Capital topped the value chart with a turnover of Rs 552.70 crore followed by Essar Oil (Rs 315.30 crore), Reliance Natural Resources (Rs 256.50 crore), Reliance Petroleum (Rs 178 crore) and Jindal Steel (Rs 173.25 crore).
IKF Technologies led the volume chart with trades of around four crore shares followd by G V Films (3.86 crore), Tata Teleservices (2.54 crore), Ispat Industries (1.55 crore) and Gujarat Petronet (1.52 crore).
Post Market Commentary
The market closed at all time high after struggling a lot at the initial stage. The cues from the global market are not in favor, which led the Indian markets to open on a weak note on the back of heavy selling across the counters. Though the market lost the ground at the initial stage but manages to recover all its losses as a result of heavy buying at lower levels. The metal, realty and Oil and Gas indices remained the centre of attraction as most buying is seen from these stocks. The BSE Sensex closed higher by 84.98 points at 20,375.87 and NSE Nifty closed up by 62.05 points at 6,159.30. Both the BSE Mid cap and Small cap outperformed the benchmark to close higher by 152.51 points and 217.15 points at 9,339.49 and 11,884.99 respectively. Overall, the market breadth was strong as 2,139 stocks are closed higher while 750 stocks are closed lower.
BSE Metal index surged 574.48 points to close at 19,629.07. Scrips that advanced are Jindal Saw (12.35%), Nalco (11.54%), Jindal Steel (5.52%), Tata Steel (3.42%) and Hindalco (3.06%)
BSE Realty index closed higher by 358 points at 12,540.32. Pushed up by Ansal Infra (22.38%), HDIL (14.01%), Phoenix mill (12.04%), Purvankara (6.12%) and Omaxe (5.62%).
BSE Health Care index closed up by 111.74 points at 4,173.98. Scrips that gained are Glenmark (10.61%), Bilcare (7.87%), Nicholas Piramal (7.73%), Sun pharma (4.48%) and Lupin (3.05%).
BSE Oil & Gas index grew by 186.59 points to closed at 13,152.02. Pulled up by IOCL (6.63%), RNRL (5.99%), Essar oil (5.43%), Gail (4.75%), Cairn (3.32%) and ONGC (1.40%).
BSE Bankex index closed lower by 66.59 points at 11,712.12. Scrips that fell are ICICI bank (1.96%), IOB (1.62%), Yes bank (1.15%), Oriental bank (0.42%) and SBI (0.22%).
BSE IT index slipped by 78.86 points at 4,353.59. Scrips that fell are Satyam (2.39%), I-Flex (1.97%), NIIT (1.81%), Educomp solution (1.13%), Rolta (1.62%).
Market Close: India...A different story
Market opened with a gap down following the global cues. Although there was a 25 bps cut in discount rate in US the investors were not happy resulting US indices to sink in red. Indian indices were with no exception and started off with weak note but later saw value buying. Markets managed to recover nearly 280 points from days low till the last hour of trading session to end in green. Recovery was seen on the back of better than expected industrial growth number at 11.8% Vs 4.5% YoY where markets expected was 11% which supported the market. Metal, Realty and Oil & Gas were the major gainers. IT and Banking stocks ended under pressure. Midcap and Smallcap outperformed ended up by 1.5%. Indian markets outperformed most of the Asian which all ended in red. European indices are trading in red.
Sensex ended up by 85 points at 20375.869.It was helped up by gains in HDFC (3103.95,+5 percent), RCVL (765.75,+4 percent), TISCO (864.45,+3 percent), NTPC (251,+3 percent) and Hindalco (205.65,+3 percent). Restricting the gains were Infosys (1684.8,-3 percent), Satyam (431.15,-2 percent), ICICI Bk (1290.3,-2 percent), BHEL (2648.3501,-1 percent) and Rel Energy (1931.7,-1 percent).
Karuturi Networks was on lime light for the day. Karuturi the largest rose player in the world. It has 2 segments of business, Horticulture and ISP. More than 90% of the revenue comes from the flower business. Karuturi has a total capacity of 650 mn stems. It has 10 hectares in India with 10 mn stems capability inhouse and another 25 mn stems which are managed through contract farming. 100 hectares are operational in Ethiopia with a capacity of over 100 mn stems. Karuturi Networks has been allotted additional 450 hectares of land by the Government of Ethiopia for its expansion and diversification projects. The Kenyan acquisition of Sher brought in abnout 525 mn stems. Globally 40,000 hectares of land is under rose cultivation. However, The field sizes globally are fragmented and are not over 200 acres. Karuturi is one of the big players here now. Do read our research note to know more about the story.
Garnet Construction which was recommened a few days back was on also on circuit today.Garnet is a Mumbai based real estate and construction company. The company develops properties on Residential, Commercial and Industrial land within Maharashtra (Mumbai, Navi Mumbai and Lonavla). Company has a total land bank of 490 acres. The Company has a project at Magic Hills which is located at Panvel. It will develop residential bungalows and IT park. The company has a marketing tie up with Sternon Group to target NRI's in UK, US West Asia. Another residential project Crystal Springs is located at Lonavala. This project is expected to have its own private boat club, mini theatre, gym, pool, special area for business center, etc. There is lots more to know about Garnet. Do read our view in research note. We have a call running here.
Technically Speaking: Market traded volatile but managed to have positive breadth. Sensex made a intraday low of 20045 and high of 20419. Advances outnumbered Declines in the ratio of 3:1. Market turnover was good of Rs 8922 Crs for the day. Markets have resumed the uptrend after a small sideways movement. Traders can trade long with Stoploss below 20000. Support lies at 20200, 20050.
Weak global cues fail to dampen market spirit
The market went into a correction mode at the opening bell, tracking the weakness in international markets. Yesterday, the US Federal Reserve cut the interest rate by quarter points disappointing investors looking for a bigger cut. The market remained choppy thereafter as investors continued to book profits on every rise. The Sensex managed to enter into positive territory by the afternoon but succumbed to heavy selling in frontline and information technology stocks and touched the day's low of 20,045. However, eruption of buying towards the close saw the Sensex pare the losses and end the session with a gain of 85 points at 20,376. The Nifty closed the session at 6,159, up 62 points.
The market breadth was extremely positive. Of the 2,924 stocks that traded on the Bombay Stock Exchange (BSE), 2,135 stocks advanced, 755 stocks declined and 34 stocks ended unchanged. Except the BSE Bankex index and the BSE IT index all the sectoral indices closed in the green. The BSE Metal index surged 3.01% at 19,629 followed by the BSE Realty index (up 2.94% at 12,540) and the BSE HC index (up 2.75% at 4,174).
Among the Sensex stocks, HDFC was the leading gainer and soared 5.33% at Rs3,104, Reliance Communication advanced 3.51% at Rs766, Tata Steel jumped 3.42% at Rs864, NTPC shot up by 3.21% at Rs251, Hindalco moved up 3.06% at Rs206 and Cipla gained 2.36% at Rs200. Among the laggards Infosys tumbled 3.34% at Rs1,685, Satyam Computer shed 2.39% at Rs431, ICICI Bank declined by 1.96% at Rs1,290 while BHEL, Reliance Energy, Bajaj Auto, Ambuja Cement and Maruti Suzuki closed with marginal losses.
Over 3.97 crore IKF Technologies shares changed hands on the BSE followed by GV Films (3.86 crore shares), Tata Teleservices (2.53 crore shares), Ispat Industries (1.54 crore shares) and Gujarat Petronet (1.52 crore shares).
Edelwess registered a turnover of Rs552 crore on the BSE followed by Essar Oil (Rs315 crore), Reliance Natural Resources (Rs256 crore), Reliance Petroleum (Rs178 crore) and Jindal Steel (Rs173 crore).
Domestic bourses buck weak global equities on strong IIP data
The market surged to all-time high in late trade, in what was a choppy trading session today. The market had lost ground in afternoon trade after staging a rebound from lower level in early trade from an initial slump. IT, banking majors declined. Realty, healthcare and metal stocks gained. Reliance Industries was flat. HDFC and Reliance Communications were the major gainers while Infosys and Satyam Computer Services were major losers from the Sensex pack.
The market breadth was strong. BSE Mid-Cap and Small-Cap indices hit all-time highs today and both the indices outperformed Sensex. Edelweiss Capital surged on debut.
The Index of Industrial Production (IIP) jumped 11.8% in October 2007 from 4.5% in October 2006. IIP stood at 9.7% in April-October 2007 compared with 10.1% in April-October 2006. Industrial output data for September 2007 was revised upwards to 6.8% from 6.4%. The government released the IIP data early afternoon today, 12 December 2007.
European markets, which opened after Indian market, were weak in. Asian markets edged lower today, 12 December 2007, after the US Federal Reserve's small 25 basis points interest rate cut on Tuesday, 11 December 2007, raised worries about US economic growth.
Prime Minister Manmohan Singh brushed aside on Tuesday, 11 December 2007, a new threat from his communist allies to force early elections over a controversial nuclear deal with the United States. In the government's first reaction to a call by the leader of the largest left-wing party for talks on the deal to be stopped, Singh said he would stick to a plan conditionally approved by the communists earlier to push the landmark pact.
The 30-share BSE Sensex rose 84.98 points or 0.42% to 20,375.87. Sensex hit all-time high of 20,419.11 in late trade. At day's high, Sensex rose 128.22 points. Sensex had slipped to a low of 20,045.42 in early trade. At day’s low Sensex had lost 245.47 points.
The broader S&P CNX Nifty rose 62.05 points or 1.02% at 6,159.30. It hit all-time high of 6,175.65 today in late trade.
Market breadth was strong. On BSE, 2,108 stocks advanced, 749 stocks declined and 28 stocks remained unchanged. 18 out of 30 stocks from the Sensex pack were in green.
BSE clocked a turnover of Rs 8922 crore, compared to Tuesday, 11 December 2007's Rs 8,227.36 crore.
Nifty December 2007 futures were at 6177, at a premium of 17.70 points as compared to the spot closing of 6159.30.
The NSE's futures & options (F&O) segment turnover was Rs 71,385.36 crore, which was higher than Rs 59,421.97 crore on Tuesday, 11 December 2007.
The BSE Mid-Cap index rose 1.66% to 9,338.49. It hit a all time high of 9,345.16 today. BSE Small-Cap index rose 1.86% to 11,884.99. It hit a all-time high of 11,899.96 today. Both these indices outperformed Sensex.
BSE Auto index (up 0.15% to 5,770.02), BSE Power (up 0.36% to 4,539.86), BSE Capital Goods index (up 0.04% to 20,308.27), BSE Bankex (down 0.57% to 11,712.12) and BSE IT index (down 1.78% to 4,353.59) underperformed Sensex.
BSE FMCG index (up 0.92% to 2,189.52), BSE Oil & Gas index (up 1.44% to 13,152.02), BSE PSU index (up 1.58% to 10,245.58), BSE Health Care index (up 2.75% to 4,173.98), BSE Realty index (up 2.94% to 12,540.32) and BSE Metal index (up 3.01% to 19,629.07) outperformed Sensex.
India’s largest private sector firm by market capitalization & oil refiner Reliance Industries rose 0.28% to Rs 2,886.90. The company said on Tuesday, 11 December 2007, it has signed exploration and production contracts with Colombia's Agencia Nacional de Hydrocarburos for two offshore blocks, Borojo North and Borojo South.
Banking stocks declined. ICICI Bank (down 1.96% to Rs 1,290.30) and State Bank of India (down 0.22% to Rs 2,440.40) edged lower. Interest rates in India are unlikely to come down in the short to medium term, T.S. Bhattacharyya, managing director of State Bank of India said today. HDFC Bank rose 0.52% to Rs 1,784.
IT pivotals were mixed. Infosys (down 3.34% to Rs 1,684.80), Satyam Computer Services (down 2.39% to Rs 431.15) edged lower. Wipro (up 0.08% to Rs 505.55) and Tata Consultancy Services (up 0.94% to Rs 1,049) edged higher.
Healthcare stocks advanced in late trade. Cipla (up 2.36% to Rs 199.55), Ranbaxy Laboratories (up 0.63% to Rs 407.70) and Dr. Reddy’s Laboratories (up 1.75% to Rs 685.80) edged higher.
Realty stocks rose. Hosing Development & Infrastructure (up 14.01% to Rs 978.30), Ansal Properties & Infrastucture (up 22.38% to Rs 418.35), Indiabulls Real Estate (up 3.19% to Rs 746.55) Unitech (up 1.28% to Rs 485.95), and DLF (up 0.74% to Rs 1,021.10) edged higher.
Metal stocks surged in late trade. Tata Steel rose 3.42% to Rs 864.45. The company today said it has signed a joint venture agreement with state-run mineral development company SODEMI for the development of Mount Nimba iron ore deposits in Ivory Coast, West Africa.
Jindal Saw (up 12.35% to Rs 1,036.45), Shree Precoated Steel (up 3.67% to Rs 395.15), National aluminium Company (up 11.54% to Rs 451.45), Hindalco Industries (up 3.06% to Rs 205.65), Steel Authority of India (up 3.85% to Rs 287.55) edged higher.
HDFC (up 5.33% to Rs 3,103.95), Reliance Communications (up 3.51% to Rs 765.75), NTPC (up 3.21% to Rs 251) edged higher.
Bharat Heavy Electricals declined 0.82% to Rs 2,648.35.
Reliance Energy declined 0.72% to Rs 1,931.70. It has bagged an engineering, procurement and construction (EPC) contract from Damodar Valley Corporation (DVC) to set up a coal based power station at Raghunathpur in West Bengal. The contract is valued at over Rs 3,725 crore. The EPC Group of Reliance Energy currently has orders on hand for execution aggregating over Rs 10,000 crore.
IKF Technologies rose 20% to Rs 11.38. It clocked the highest volume of 3.97 crore shares on BSE. G V Films clocked the second highest volume of 3.86 crore shares. It rose 18.03% to Rs 9.10. Tata Teleservices (Maharashtra) rose 2.74% to Rs 60. It clocked the third highest volume of 2.53 crore shares. Ispat Industries rose 1.48% to Rs 71.80. It clocked the fourth highest volume of 1.54 crore shares. Gujarat State Petronet rose 14.13% to Rs 96.50. It clocked the fifth highest volume of 1.52 crore shares on BSE.
Essar Oil clocked the highest turnover of Rs 315.32 crore on BSE. Reliance Natural Resources (Rs 256.48 crore), Reliance Petroleum (Rs 178.07 crore), Jindal Steel (Rs 173.25 crore) and Lanco Infratech (Rs 156.73 crore) were other turnover toppers on BSE in that order.
Edelweiss Capital ended at Rs 1,509.95 on BSE, a premium of 83.02% compared to IPO price of Rs 825. On BSE, 36.16 lakh shares changed hands in the counter. The stock debuted at Rs 1443.75, a premium of 75% as compared to the issue price of Rs 825.
In an important event, after Indian market hours yesterday, 11 December 2007, the US Federal Reserve lowered its benchmark interest rate by a quarter point to 4.25%, while signaling that it is open to further cuts if the housing slump and credit squeeze worsens. The Fed also lowered its discount rate, the interest it charges on direct loans it makes to banks, by a quarter-point to 4.75%.
European markets slipped today. France’s CAC 40 (down 1.25% to 5,653.29), Germany’s DAX (down 0.6% to 7,961.18) and UK’s FTSE 100 (down 0.85% to 6,480.80) edged lower.
Asian markets were weak today, 12 December 2007. Hong Kong's Hang Seng (down 2.41% at 28,521.06), Japan's Nikkei (down 0.7% at 15,932.26), Taiwan's Taiwan Weighted (down 1.71% points at 8,490.84), Straits Times (down 1.11% at 3,549.25) and Shanghai Composite (down 1.54% to 5,096.59), all edged lower. South Korea's Seoul Composite (up 0.12% 1,927.45) edged higher.
US markets tumbled after the Fed cut rates by a quarter point disappointing traders expecting double that amount. The Fed's statement said that elevated energy and commodity prices may put upward pressure on inflation.
The Dow Jones Industrial Average slumped 294.26 points, or 2.14%, to 13,432.77. The Standard & Poor's 500 index plunged 38.31 points, or 2.53%, to 1,477.65, and the Nasdaq Composite index declined 66.60 points, or 2.45%, to 2,652.35.
US Market slammed as Fed disappoints
Dow drops the most in more than a month as Fed fails to deliver
Federal Reserve disappointed Wall Street today, Tuesday, 11 December, 2007 after interest rates were cut by just quarter of a percentage point. Investors thought that this reduction was already priced in the market and was too little. Half a percentage cut would have cheered them. Stocks just plunged once Fed’s decision hit the wires today at 2.15 pm E.T. Among other developments in the market, oil prices crawled up by more than $2/barrel and Citigroup named Vikram Pandit as its new CEO
Market was at its best highs just before Fed’s decision hit the wires. But stocks seemed to have unanimous response to Fed’s decision. Even the exciting technology stocks failed to excite investors. The Dow Jones industrial Average ended the day with a loss of 294 points at 13,432. The Nasdaq Composite Index, finished lower by 66 points at 2,652. S&P 500 finished lower by 38 points at 1,477.
Nine out of ten economic sectors posted losses today, led by the Financial sector. Twenty-eight out of thirty Dow stocks ended in red today. JP Morgan, Citigroup and American Express led the group of Dow laggards. AT&T and Mc Donalds were the only two Dow winners.
The central bank lowered the federal funds rate by a quarter-point to 4.25%. The Fed also lowered its discount rate, the interest it charges on direct loans it makes to banks, by a quarter-point to 4.75%. It was Fed’s third rate cut in the past three meetings
The Fed acknowledged an intensification of the housing correction, some softening in business and consumer spending, and strains in financial markets. It also said recent developments have increased the uncertainty surrounding the outlook for economic growth and inflation.
Citigroup sheds more than 4% after naming its new CEO
AT&T shares closed higher by 4% today after the company said that it will raise its dividend 12.7% and buy back 400 million shares.
Citigroup shares closed lower by more than 4% after the company named Indian born Vikram Pandit as its new CEO.
Barring MTNL, all Indian ADRs ended in red today. Wipro Technologies, Infosys and VSNL were the topmost losers, each shedding between 4%-5%. MTNL shares gained more than 2%.
Cut in interest rate by Federal Reserve took oil prices back above $90 today and crude closed more than $2 higher for the day. Lower borrowing costs are expected to spur fuel demand and investment in commodities. Crude-oil futures for light sweet crude for January delivery closed at $90.02/barrel (higher by $2.16/barrel or 2.5%) on the New York Mercantile Exchange. The contract touched $90.55 before the Fed announced its decision at 2:15 p.m. Prices are up 47% from a year ago.
On the New York Stock Exchange, nearly 1.6 billion shares traded hands, and declining stocks outran advancers more than 5 to 1. On the Nasdaq, more than 2.2 billion shares were exchanged, and decliners topped advancers nearly 4 to 1.
Tomorrow, investors will focus on investors will look for fresh economic data to help set the tone of trading. At 8:30 ET, the Labor Dept.'s report on November Export/Import Prices will hit the wires, along with the October Trade Balance. They will be followed by the Treasury Budget in the post lunch hours.
Grey Market Premium Updates
eClerx Services 270 to 315 0 to 45
BGR Energy 425 to 480 340 to 350
Transformers & Rectifiers 425 to 465 360 to 370
Brigade Enterprises 351 to 390 50 to 60
Jyothy Lab. 690 230 to 240
Burnpur Cement Ltd. 12 6 to 7
Edelweiss 825 720 to 740
Renaissance Jewellery 150 40 to 45
Kolte Patil 145 80 to 85
Kaushalya Infra 60 11 to 12
SVPCL 42 - 5 to -7
Aries Agro 120 to 130 40 to 45
Manaksia Ltd. 140 to 160 50 to 55
Porwal Autocompotents 68 to 75 22 to 25
Precision Pipes & Profiles 140 to 150
40 to 50
Market may move in tune with global markets
US markets slumped after the Federal Reserve cut the interest rate to a quarter a points as investors felt that this rate cut is not enough for slowing economic growth. Tracking the same the Asian markets also slipped in morning trades and weakness in these global indices could make the investors jittery from taking any fresh position. Most of the leading Asian indices are down around 2% in current trades. Also fresh rally in global crude oil prices may weigh on the local indices in early trades and thereafter could exhibit volatility during intra-day trades. However, the prevailing north-bound journey and strong fund inflows in the past few sessions may add to the market advantage. Among the domestic indices, the Nifty could test 5740 and below this level may slip to 5594, while on the upside it could edge higher to 6200. The Sensex has a likely support at 19300 and may face resistance at 21000.
US indices slumped on Tuesday after the Federal Reserve cut the fed funds rate by a quarter-percentage point, as expected, but disappointed investors looking for a bigger cut. While the Dow Jones tumbled 294 points at 13,433, the Nasdaq ended 67 points lower at 2,652.
Except MTNL all the Indian ADRs ended weak on the US bourses. Satyam slumped over 7% while Wipro and VSNL slipped by over 5%. Infosys, Tata Motors, HDFC Bank, Patni Computers, ICICI Bank and Rediff ended in the red with losses around 1-4% each.
Crude oil prices in the international market edged higher, with the Nymex light crude oil for January delivery rising by $2.16 at $90.02 a barrel. In the commodity segment, the Comex gold for February series moved up by $3.60 to settle at $817.10 an ounce.
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