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Friday, July 03, 2009
Thursday, July 02, 2009
Tata Steel July 2009 futures at huge discount
Turnover drops
Nifty July 2009 futures were at 4333.55, at a discount of 15.30 points as compared to the spot closing of 4348.85. Turnover in NSE's futures & options (F&O) segment was Rs 52,918.55 crore, lower than Rs 55,613.06 crore on Wednesday, 1 July 2009.
Tata Steel July 2009 futures were at huge discount at 399.90 compared to the spot closing of 420.40.
Oil & Natural Gas Corporation July 2009 futures were at premium at 1129.20 compared to the spot closing of 1126.60.
Reliance Infrastructure July 2009 futures were near spot price at 1253 compared to the spot closing of 1252.85.
In the cash market, the S&P CNX Nifty rose 7.95 points or 0.18% at 4348.85.
Asian markets awaits US non-farm payroll data
Nikkei, New Zealand continue losing while Sensex, Shanghai add up more gains
Stock market in Asian region closed mixed on Thursday, 2 July 2009, with the overnight surge on Wall Street and renewed hopes of an economic revival prompting investors to go in for some selective buying. Towards the end, the mood has turned a bit cautious in most of the markets as investors prepare for more news on the U.S. economy.
On Wall Street, the major indices closed modestly higher but off their highs of the session Wednesday as investors greeted a new quarter and a whirlwind of economic data ahead of the government's June employment report.
The new quarter kicked off with a new round of economic data. First, ADP estimated that there were 473,000 jobs lost in the private sector in June. However, job losses were down from a downwardly revised 485,000 in May and also marked the least number of estimated jobs lost since October 2008. ADP's report comes ahead of the government's unemployment data which is expected to show unemployment rose to 9.6% on Thursday.
Meanwhile, the National Association of Realtors said pending home sales increased by 0.1% in May, after an upwardly revised 7.1% increase the month prior.
Also, the Institute for Supply Management said its manufacturing index rose to 44.8 in June from 42.8 the month prior, although any figure less than 50 still represents a contraction.
The Dow Jones Industrial Average added 57.06 points, or 0.7%, to 8504.06, while the S&P 500 climbed 4.01 points, or 0.4%, to 923.33. The Nasdaq Composite tacked on 10.68 points, or 0.6%, to 1845.72.
In the commodity market, crude oil fell for a third day before a report forecast to show the U.S. unemployment increased last month, signaling the world’s largest energy user remains mired in recession.
Crude oil futures fell off earlier gains, ultimately losing 58 cents, to settle at $69.31 a barrel, after the Energy Department's Energy Information Administration reported that gasoline and distillate inventories increased more than expected last week. That overshadowed a report by The American Petroleum Institute late Tuesday that said U.S. crude inventories dropped by 6.8 million barrels last week, helping crude oil futures to rebound early Wednesday, gaining more than $1.50 before it moved into negative territory.
U.S. fuel demand in the four weeks ended June 26 fell 5.8 percent from a year earlier, while demand for distillate fuel including heating oil and diesel, fell 9.4 percent, according to a Department of Energy report yesterday.
Crude oil for August delivery fell as much as $1.14, or $1.64, to $68.17 a barrel in electronic trading on the New York Mercantile Exchange. It traded $68.23 at 10:41 a.m. London time.
Brent crude oil for August settlement declined as much as $1.09, or 1.6 percent, to $67.70 a barrel on London’s ICE Futures Europe exchange. It was at $67.97 a barrel at 10:38 a.m. in London.
Gold declined in Asian trading as a gain in the dollar curbed the precious metal’s appeal as an alternative investment. Gold for immediate delivery fell 0.3 percent to $938.11 an ounce at 3:16 p.m. in Singapore.
In the currency market, US dollar recovers strongly on supportive comments from China again but after all, financial markets are generally indecisively mixed ahead of key events of ECB rate decision and US Non-Farm Payroll report today.
The Japanese yen steady against major currencies on Wednesday Thursday. The Japanese currencies were quoted at 96.48 against the US dollar, down from Wednesday’s quote of 96.77-79 yen
The Hong Kong dollar was trading at HK$ 7.7501 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar closed weaker on Thursday after the nation recorded its largest trade deficit in 10 months. At the local close, the dollar was trading at $US0.8028, down from Wednesday's close of $US0.8062. During the local session, the unit moved between $US0.8095 and $US0.8030.
In Wellington trades, the New Zealand dollar was testing support at US63.80c late today with dealers citing Fonterra's latest Internet auction as a factor. The NZ dollar was US63.79c at 5pm from US64.44c at the same time yesterday. It fell during the Wednesday night session and traded in a range between US63.79c and US64.16c during the domestic session, ending at the bottom of the range.
Reversing earlier gains, the South Korean won ended at 1,269.5 won against the greenback, down 1.8 won from Wednesday's close, as importers snapped up the dollar to cover debts. In early trading, the Korean won rose to as high as 1,257.5 won to the dollar on reports that South Korea's foreign exchange reserves rose to a nine-month high in June
The Taiwan dollar weakened against the greenback. The Taiwan dollar fell against the US dollar as it was trading lower at NT$ 32.8210, down by NT$ 0.0360 from Wednesday’s close of NT$32.7850.
Coming back in equities, Asian shares ended mostly lower, with investors locking in profits ahead of U.S. jobs data due out later in the day.
In Japan, the stock erased early gains on cautious ahead of the release of the key U.S. non-farm payroll report that could shed light on the pace of recovery in the world's largest economy. At the closing bell, the Nikkei 225 Stock Average index erased 63.78 points, or 0.64%, to 9,876.15, while the broader Topix index fell 4.28 points, or 0.5%, to 924.
On the economic front, the Ministry of Finance said Japanese investors purchased a net 1.533 trillion yen in foreign bonds and also a net 150.5 billion yen worth of foreign stocks for the week ending June 27. Foreign investors sold a net 195.1 billion yen in Japanese stocks and also sold a net 666.7 billion yen in Japanese bonds last week.
The Bank of Japan said the monetary base in Japan expanded by 6.4% on year in June to standing at 93.639 trillion yen. The seasonally adjusted monetary base fell an annual 8.8% to 94.448 trillion yen. For the second quarter, the monetary base was up 7.5% on year.
In Mainland China, stock index spurted with gains in financials and energy as China’s manufacturing added to signs the global recession is easing and hopes record bank lending will revive the world’s third-largest economy and on report power demand in the nation’s manufacturing hub of Guangdong rose in June. Resources related shares zoomed on higher commodities prices
The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, added 1.73%, or 52.1 points, to 3,060.25, while the Shenzhen Component Index rose 1.03%, or 121.97 points, to 11,970.72.
In Hong Kong, the stock market tumbled on first trading day of the third quarter, 2 July 2009, reversed morning gains, with losses from financials and properties as investors prompted for profit booking amid cautious ahead US non-farm payrolls tonight and second-quarter earnings season looms. The Hang Seng Index retreated 200.68 points, or 1.09%, to 18,178.05, while the Hang Seng China Enterprise Index leaped 9.28 points, or 0.08%, to 10,971.89.
In Australia, the Australian stock market pared back morning gains to finish the session higher, despite a positive lead from Wall Street, as gains from miners and resources were offset by losses from energy shares. At the closing bell, the benchmark S&P/ASX200 index added 3.3 points, or 0.09%, to 3,877.3, meanwhile the broader All Ordinaries rose 2.9 points, or 0.07%, to 3,875.2.
On the economic front, the Australian bureau of statistic said in a repot that Australia’s May Trade Balance plummeted to a deficit of A$556 million from a negatively revised deficit of A$282 million in April, performing five times worse than that which was expected as exports of coal, wheat and natural gas fell. Imports fell 4% to A$20.95 billion in May. Imports of capital goods, such as trucks and machinery, dropped 14% and imports of consumer goods slipped 1%. Exports declined 5% from April to A$20.39 billion.
In New Zealand, equities on the New Zealand stock market ended weak. The benchmark index registered its second consecutive decline in a row. The NZX50 ended down 0.44% or 12.18 points to 2768.19. The NZX 15 declined 0.67% or 34.07 points to close at 5086.57.
On the economic front, a 13.5 percent increase in the price of sawn timber in June helped counter a 3.3 percent decline in dairy prices in the ANZ Commodity Price Index .The ANZ Commodity Price Index increased 0.2 percent in June from the month earlier. This is the fourth consecutive monthly rise in the index. However, the index is down 27.9 percent on June last year.
In South Korea, stocks closed lower as investors await the release of U.S. job data for clues about an economic recovery. After volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI) edged down 0.18 point to 1,411.48.
In Singapore, the stocks shrugged off early high as investors selling for profit on cautious ahead of nation’s PMI data for June and ahead US non-farm payrolls tonight and second-quarter earnings season looms. The blue chip Straits Times Index melted 31.73 points, or 1.35%, to 2,320.82.
In Taiwan, stock market consolidated its recent gains as it moved ahead for third straight session, led by gains in major LCD makers after stronger demand from China. Gains were also supported by the intensified efforts by the Financial Supervisory Commission (FSC) to strengthen cross-Taiwan Strait economic and financial exchanges; it decided to allow local financial institutions to offer wealth-management services to Chinese mainlanders.
The main Taiex share index carried its winning streak in third session as the Taiex index stepped up 88.56 points or 1.35%, closing the day at 6667.53, strongest closing since last 6 June 2009 when market closed at 6856.74.
In Philippines, the stock market rallied for the first time in the week, scaled up by gains in the index linked counters as investors sentiments was enhanced by the gains in Wall Street overnight. At the concluding bell, the benchmark index PSEi increased 0.21% or 5.15 points to 2,438.04, while the All Shares index fell 0.29% or 4.70 points to 1,562.47.
In India, the key benchmark indices provisionally ended with small losses in what was a choppy trading session. Fears the government may make dividend taxable in the hands of shareholders weighed on investors sentiment after the finance ministry's annual economic survey suggested a rationalization of the dividend distribution tax.
Suggesting sweeping tax reforms, the Economic Survey released ahead of Monday's (6 July 2009) budget announcement for the fiscal year ending in March 2010, asked for rationalising the dividend distribution tax (DDT) so that dividend is taxed in the hands of receiver. As per the current dispensation, a company pays tax on dividend declared to shareholders, which is called dividend distribution tax. The dividend is tax-free in shareholders hand.
The survey also called for a review and phasing out of surcharges, cesses and transaction taxes such as commodities transaction tax (CTT), securities transaction tax (STT) and fringe benefit tax (FBT).
The Economic Survey said economy could grow around 7% in the year ending March 2010 if the US economy recovers by September 2009. It further said economy could return to 8.5-9% growth in medium terms if reforms are pursued. It said government should free diesel and petrol prices at the earliest. The report said government should take advantage of the recent low price in oil costs to free petrol and diesel prices.
The Economic Survey has called for introduction of standardized credit default swaps on exchanges subject to strict contols, introduction of exchange traded derivatives such as interest rates swaps, foreign direct investment in multi format retail starting with food retail, raising foreign equity share in insurance to 49%, rationalising dividend distribution tax and revival of disinvestment plan to generate at least Rs. 25,000 crore annually. The survey has also called for reforms in petroleum, fertilizers, food subsidies to reduce leakages, ensure targeting. The survey also called for an auction of third-generation mobile phone spectrum.
It also called for implementation of a goods and services tax (GST) by April 2010 to maximise revenues and simplify the tax regime. It also called for "greater urgency" to removing hurdles to investment in infrastructure by government and the private sector. The survey said inflation is no longer a worry and called for an urgent return to the targeted fiscal deficit of 3%.
The survey said it be challenging to fund $500 billion of planned spending on roads and power plants over five years as the economic slowdown and the global financial crisis have made it difficult to raise funds
The survey has also called for passage of pending bills on pension, insurance and forward contract reforms. The BSE 30-share Sensex closed up 13.02 points or 0.09% to 14,658.75. The S&P CNX Nifty ended higher 7.95 points or 0.18% to 4,348.85.
Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.06% or 0.69 points to 1078.71 while Indonesia’s Jakarta composite index ended the day higher at 2065.75.
In other regional market, European shares fell in early trading Thursday as investors awaited an interest-rate decision from the European Central Bank with crucial U.S. jobs data also on tap. At the regional level, the German DAX index dropped 1.69% or 82.64 points to 4,823, while the French CAC-40 index declined 1.32% or 42.57 point to 3,174 and the U.K.’s FTSE 100 index fell 0.85% or 37.09 point to 4,304.
Looking forward, the focus of the day will be on ECB rate decision and US Non-Farm Payroll report today. ECB is widely expected to leave benchmark interest rates unchanged at 1.00% today. From US, markets will expect the release of regular initial jobless claims and factory orders in addition to non-farm payrolls.
BSE Bulk Deals to Watch - July 2 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
2/7/2009 524412 AAREY DRUGS SHAISHIL TUSHAR KUMAR JHAVERI B 32000 37.13
2/7/2009 524412 AAREY DRUGS HARISH RATILAL SHAH B 30000 37.00
2/7/2009 524412 AAREY DRUGS AJITBHAI PADMAKUMAR VASA B 30000 36.96
2/7/2009 524412 AAREY DRUGS PATEL NITABEN SHAILESHBHAI B 65000 37.27
2/7/2009 524412 AAREY DRUGS NIKHILBHAI VINAKANTBHAI SHAH B 32000 37.15
2/7/2009 524412 AAREY DRUGS SHAISHIL TUSHAR KUMAR JHAVERI S 32000 37.15
2/7/2009 524412 AAREY DRUGS HARISH RATILAL SHAH S 30000 37.25
2/7/2009 524412 AAREY DRUGS AJITBHAI PADMAKUMAR VASA S 30000 37.30
2/7/2009 524412 AAREY DRUGS DAXABEN VASANTKUMAR SHAH S 25961 37.04
2/7/2009 524412 AAREY DRUGS NITA BANKESH BHAVSAR S 31763 37.04
2/7/2009 531223 ANJANI SYNTH MANGILAL B. BURAD B 110861 34.79
2/7/2009 531223 ANJANI SYNTH SAGAR TEX CREATION PVT.LTD B 85863 33.53
2/7/2009 531223 ANJANI SYNTH MANGILAL B. BURAD S 111862 34.09
2/7/2009 532914 ARCOTECH LTD TEJINDER SINGH S 600000 3.00
2/7/2009 532406 AVANTEL LTD* AVANTEL LIMITED B 35688 48.50
2/7/2009 532406 AVANTEL LTD* AMAR INVESTMENTS LIMITED S 29188 48.50
2/7/2009 532995 AVON CORP BASMATI SECURITIES PVT LTD B 105000 9.01
2/7/2009 532995 AVON CORP S V ENTERPRISES B 172800 9.07
2/7/2009 532995 AVON CORP S V ENTERPRISES S 143721 9.01
2/7/2009 500446 CAROL INFO BHARAT JAYANTILAL PATEL B 181190 55.01
2/7/2009 531682 CAT TECHNOL S V ENTERPRISES B 205094 7.17
2/7/2009 531682 CAT TECHNOL S V ENTERPRISES S 210600 7.61
2/7/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD B 134227 4303.01
2/7/2009 532696 EDUCOMP SOLN OPG SECURITIES P LTD S 134227 4304.23
2/7/2009 509709 INTERN CONVE R C A LIMITED B 20658 267.75
2/7/2009 509709 INTERN CONVE KEDCO PROCESSORS PRIVATE LIMITED S 20000 267.53
2/7/2009 532705 JAGRAN PRAK INDEPENDENT NEWS MEDIA INVESTMENTS LIMITED S 4500000 67.39
2/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 90204 52.15
2/7/2009 516078 JUMBO BAG LT CHIMANLAL MANEKLAL SECURITIES PVT.LTD B 50511 52.40
2/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 82862 51.73
2/7/2009 516078 JUMBO BAG LT CHIMANLAL MANEKLAL SECURITIES PVT.LTD S 43811 51.75
2/7/2009 531602 KOFF BR PICT DIPESH SURESH JAIN S 455658 3.64
2/7/2009 512559 KOHINORFOODS SAMRIDHI SHARE AND STOCK BROKER LIMITED B 135000 50.50
2/7/2009 512559 KOHINORFOODS MLJ CAPITAL SERVICES LTD. B 135000 50.50
2/7/2009 512559 KOHINORFOODS NEWMECH VYPAAR PRIVATE LIMITED B 165000 50.50
2/7/2009 512559 KOHINORFOODS TEMPTATION FOODS LTD S 500000 50.50
2/7/2009 531731 KUVAM INTL SEEMA GANDHI B 27000 8.73
2/7/2009 531731 KUVAM INTL AMRIT LAXMICHAND GANDHI B 25000 8.73
2/7/2009 531731 KUVAM INTL SAHIL SINGLA S 20000 8.73
2/7/2009 526263 MOLDTEK TECH SUNIDHI SECURITIES & FINANCE LTD. S 19661 85.00
2/7/2009 500304 NIIT LTD TRANSGLOBAL SECURITIES LTD. B 1047432 72.05
2/7/2009 500304 NIIT LTD TRANSGLOBAL SECURITIES LTD. S 1047932 72.07
2/7/2009 532497 RADICO KHAIT CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 1225000 79.99
2/7/2009 532497 RADICO KHAIT HSBC GLOBAL INVESTMENT FUNDS MAURITIUS LIMITED S 1211485 80.00
2/7/2009 531952 RIBA TEXTILE PATEL NITABEN SHAILESHBHAI B 74545 54.36
2/7/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD S 34750 54.89
2/7/2009 531952 RIBA TEXTILE SHAISHIL TUSHAR KUMAR JHAVERI S 43000 53.91
2/7/2009 533083 RISHABHDEV JMP SECURITIES PVT LTD B 87894 22.87
2/7/2009 533083 RISHABHDEV AMIT SAHITA FINANCE PVT. LTD. B 109212 23.23
2/7/2009 533083 RISHABHDEV JMP SECURITIES PVT LTD S 75457 23.70
2/7/2009 533083 RISHABHDEV AMIT SAHITA FINANCE PVT. LTD. S 110212 23.27
2/7/2009 512048 SPLASH MEDIA LAKSHMI DEVI B 10000 87.80
2/7/2009 512048 SPLASH MEDIA BHANUMATI DHARAMRAJ GIRI S 17790 87.92
2/7/2009 532249 SQL STAR INT CHIRAAYUSH STOCK CONSULTANTS PVT LTD S 117830 11.44
2/7/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 89935 58.38
2/7/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 81522 58.46
2/7/2009 526133 SUPERTEX IND PATEL SHAILESH SOMABHAI S 69000 58.27
2/7/2009 532156 VAIBHAV GEM AMIT BUSINESS PVT LTD B 149500 21.25
2/7/2009 532156 VAIBHAV GEM SIDHANT FINANCIAL SERVICES PVT LTD S 149500 21.25
NSE Bulk Deals to Watch - July 2 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
02-JUL-2009,AHMEDFORGE,Ahmednagar Forgings Ltd,RAPID ESTATES PRIVATE LTD,BUY,174000,51.46,-
02-JUL-2009,APTECHT,Aptech Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,290957,178.62,-
02-JUL-2009,AUROPHARMA,Aurobindo Pharma Ltd.,HSBC INVEST (HK) LTD A/C HGIF INDIA EQUITY FUND,BUY,1417000,460.00,-
02-JUL-2009,CAROLINFO,Carol Info Services Limit,Bharat Patel,BUY,295459,55.07,-
02-JUL-2009,CAROLINFO,Carol Info Services Limit,Gandiv Investment Pvt Ltd,BUY,111353,55.00,-
02-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,BUY,190813,4292.50,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,BHARAT SECURITIES PVT LTD,BUY,87717,431.13,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,BUY,315924,440.32,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,BUY,132745,440.26,-
02-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,3880088,53.69,-
02-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7893224,21.67,-
02-JUL-2009,NIITLTD,NIIT Limited,OM INVESTMENTS,BUY,1680442,71.76,-
02-JUL-2009,NIITLTD,NIIT Limited,TRANSGLOBAL SECURITIES LTD.,BUY,934213,72.07,-
02-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1172026,20.59,-
02-JUL-2009,ZYLOG,Zylog Systems Limited,SUNDARAM SMALL CAP FUND,BUY,350000,195.00,-
02-JUL-2009,ZYLOG,Zylog Systems Limited,SUNDARAM SMILE FUND,BUY,150000,195.00,-
02-JUL-2009,AHMEDFORGE,Ahmednagar Forgings Ltd,MSR MARKETING PRIVATE LTD,SELL,174000,51.46,-
02-JUL-2009,APTECHT,Aptech Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,290757,178.59,-
02-JUL-2009,AUROPHARMA,Aurobindo Pharma Ltd.,STANDARD CHARTERED PRIVATE EQUITY (MAURITIUS) LIMITED,SELL,643745,460.16,-
02-JUL-2009,AUROPHARMA,Aurobindo Pharma Ltd.,STANDARD CHARTERED PRIVATE EQUITY(MAURITIUS)LIMITED-FDI A/c,SELL,801839,460.02,-
02-JUL-2009,CAROLINFO,Carol Info Services Limit,Bharat Patel,SELL,101708,55.00,-
02-JUL-2009,CAROLINFO,Carol Info Services Limit,Gandiv Investment Pvt Ltd,SELL,261353,55.04,-
02-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,SELL,190813,4293.80,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,BHARAT SECURITIES PVT LTD,SELL,87717,431.29,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,SELL,315924,440.83,-
02-JUL-2009,EVERONN,Everonn Systems India Lim,MULTIPLEX CAPITAL LTD.,SELL,132745,440.88,-
02-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,3864327,53.73,-
02-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,7269711,21.66,-
02-JUL-2009,JAGRAN,Jagran Prakashan Limited,INDEPENDENT NEWS & MEDIA INVESTMENTS LIMITED,SELL,8450000,69.89,-
02-JUL-2009,NIITLTD,NIIT Limited,OM INVESTMENTS,SELL,1682042,71.81,-
02-JUL-2009,NIITLTD,NIIT Limited,TRANSGLOBAL SECURITIES LTD.,SELL,937652,72.15,-
02-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1152023,20.51,-
02-JUL-2009,ZYLOG,Zylog Systems Limited,ADITICON SERVICES INDIA PVT LTD,SELL,201400,195.01,-
Post Session Commentary - July 2 2009
The domestic market today took a sharp turn after the posting good gains yesterday, to close on flat note on profit booking. Depressing US index futures along with negative European markets fueled the negative sentiments. The market was extremely volatile on as the investors were eyeing the outcome of the Economic Survey report, which gave emphasis on the disinvestment of the PSUs as well as decontrolling of fuel prices, tax cuts and phasing out of cesses and surcharge on taxes, etc. However, the Benchmark indices were under pressure also on concerns ahead of forthcoming Union Budget on 6th July. Worries for inflation also contributed to instability as it remained in negative terrain for third successive week. The wholesale price index fell to minus 1.30% for the week ended June 20, as compared to minus 1.14% of the previous week June 13. However, market bounced back during mid session but were unable to hold the momentum and slipped again. BSE Sensex ended around 14,650 level and NSE Nifty around 4,350 mark.
The market opened on positive note tracking favorable cues from the global markets. The US stocks markets ended higher on Wednesday but off highs following a barrage of economic reports. The ISM Manufacturing Index for the month of June came in-line at 44.8, from 42.8 in May, slightly higher than expected. However, Indian market gave up all early gains soon after start and turned volatile. Investors were concerned for inflation as it continued to hold negative territory and stood at minus 1.30% for the week ended June 20. Further, the benchmark indices rebounded from its lows to witness sharp gains though they slipped later with negative European markets and lower US index futures. Market came off from day’s high also on announcement of the Economic Survey. Finally market concluded the extremely volatile session on flat note. Meanwhile, the government yesterday hiked the petrol prices by Rs 4 per litre and diesel by Rs 2 per litre effective from midnight in order to cut the losses of oil companies due to rising global oil rates. However, the government kept the prices of Kerosene and LPG unchanged. From the sectoral front, Metal, PSU, Reality, Pharma and Consumer Durables stocks witnessed most of the buying. Mid Cap and Small Cap stocks also remained on buyer’s radar. However, Capital Goods, Auto and Teck stocks remained out of favour.
The Economic Survey for 2008-09, which was released today, stated that the government should sell a minimum stake of 10 per cent in all the unlisted public sector enterprises and "auction" those that can''t be revived. It also recommended a disinvestment target of Rs 25,000 crore annually. The Economic Survey for financial year 2009 stated 100% FDI in health and weather insurance, disinvestment target of Rs 25,000 crore per year, removed Commodity Transaction Tax, Securities Transaction Tax, and Fringe Benefit Tax, etc. Moreover, the survey suggested tax cuts as well as increase in government expenditure as part of another stimulus package to boost the economy. Besides this, the government should phase out all cesses and surcharges on taxes and securities transaction tax, fringe benefit tax and introduce a new income tax code, the Economic Survey said. On the top of this, decontrol the petrol and diesel prices to take the advantage of low inflation and global crude prices, the Economic Survey said.
Among the Sensex pack 15 stocks ended in green territory and 15 in red. The market breadth indicating the overall health of the market remained positive as 1459 stocks closed in green while 1141 stocks closed in red and 92 stocks remained unchanged in BSE.
The BSE Sensex closed marginally higher by 13.02 points at 14,658.49 and NSE Nifty ended slightly up by 7.95 points at 4,348.85. BSE Mid Caps closed with gains 16.76 and 42.82 points at 5,144.27 and 5,800.24 respectively. The BSE Sensex touched intraday high of 14,764.35 and intraday low of 14,469.69.
Gainers from the BSE Sensex pack are ONGC Ltd (7.02%), Tata Steel (6.37%), Grasim Industries (4.20%), Sterlite Industries (3.75%), DLF Ltd (3.12%), Sun Pharma (2.46%), HDFC (2.33%), NTPC Ltd (2.17%), Tata Power (2.04%), Reliance Infra (1.56%) and Hindalco (1.38%).
Losers from the BSE Sensex pack are BHEL (3.03%), Reliance (2.29%), Bharti Airtel (2.27%), RCom (1.83%), Tata Motors (1.67%), Maruti Suzuki (1.53%), SBI (1.17%), Herohonda Motors (0.96%) and HUL (0.88%).
India’s annual rate of inflation remained in negative terrain for third successive week. The wholesale price index fell to minus 1.30% for the week ended June 20, as compared to minus 1.14% of the previous week June 13, according to official data released on Thursday. However, inflation was 11.91% during the corresponding period of previous year. The index for primary articles increased 0.5%, while for fuel and power rose by 0.1% and manufactured products went up by 0.05%.
On the global markets front the Asian markets which opened before the Indian market, ended mostly mixed. Hang Seng, Nikkei 225, Straits Times index and Seoul Composite closed down by 200.68, 63.78, 31.73 and 0.18 points at 18,178.05, 9,876.15, 2,320.82 and 1,411.48 respectively. However, Shanghai Composite closed up by 52.10 points at 3,060.25.
European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading lower by 68.33 points at 4,837.11 and in London FTSE 100 is trading down by 31.16 points at. 4,309.55.
The BSE Metal index gained (4.26%) or 355.15 points at 11,243.85 after LMEX, a gauge of six metals traded on the London Metal Exchange, improved 2.9% overnight. Scrips that gained are Tata Steel (6.37%), Jai Corp Ltd (4.93%), Steel Authority (3.77%), Sterlite Industries (3.75%) and Jindal Steel (3.64%).
The BSE PSU index jumped (1.95%) or 156.06 points to close at 8,156.03. Main gainers are Gail India (7.85%), Power Financ (6.57%), Hindustan Copper (4.99%), REC Ltd (4.97%) and Mahanag Tele (4.96%).
The BSE Realty stocks also gained (1.55%) or 51.67 points to close at 3,395.18. Major gainers are Sobha Dev (4.98%), Anant Raj (4.96%), Ansal Infra (3.99%), DLF Ltd (3.12%) and Parsvnath (2.34%).
The BSE Pharma index advanced by (0.84%) or 29.78 points to close at 3,590.24. Gainers are Glenmark Pharma (4.44%), Glaxosmith (2.86%), Sun Pharma (2.46%), Apollo Hos (2.29%) and Orchid Chem (1.43%).
The BSE Capital Goods index decreased by (1.01%) or 130.26 points at 12,770.31. Usha Martin (3.05%), BHEL (3.03%), Areva (2.85%), Alstom Proje (2.45%) and Suzlon Energy (2.34%) ended in negative territory.
The BSE Auto index ended slightly down by (0.91%) or 41.78 points at 4,573.98. Losers are Bajaj Auto (3.10%), Escorts Ltd (2.97%), Apollo Tyre (2.65%), Ashok Leyland (2.11%) and Tata Motors (1.67%).
Metals steel the show
The stock market witnessed strong volatility, swinging 294 points during intra-day trades, as shares gyrated sharply between zones. Taking cue from mixed Asian indices, the Sensex started on a positive note at 14694, but failed to sustain its gains, as a sharp bout of profit-taking pushed the index below 14500 mark to an intra-day low of 14470. While the market remained lacklustre with a negative bias for some time, the Sensex rolled back to the green by mid-noon trades on renewed buying support and surged to an intra-day high of 14764. However, a fresh round of profit-taking towards the fag end saw the Sensex pare its gains and end at 14658, up only 13 points, while Nifty added 7 points to close at 4349.
The market breadth, the number of advancing shares to declining ones, was positive. Of the 2,692 stocks traded on BSE 1,452 stocks advanced, whereas 1,150 stocks declines. Ninety stocks remained unchanged. Of the 13 sectoral indices, BSE Metal gained 3.26%, while BSE PSU, BSE Realty and BSE HC ended at higher levels. BSE CG, BSE Auto, BSE Teck, BSE Bankex and BSE FMCG were the sectoral indices posting losses for the day.
Select heavyweights edged higher on decent buying support. ONGC rose 7.02% at Rs1,126, Tata Steel jumped 6.39% at Rs420.15, Grasim Industries advanced 4.20% at Rs2,401.75, Sterlite Industries added 3.75% at Rs634.10, DLF gained 3.12% at Rs335.75 and Sun Pharmaceutical Industries gained 2.46% at Rs1,145.85. However, select front-line stocks came under selling pressure. Bharat Heavy Electricals was the major loser and lost 3.03% at Rs2,149.90. Reliance Industries declined 2.29% at Rs2,010.15, Bharati Airtel dropped 2.27% at Rs804.10 and Reliance Communications shed 1.83% at Rs293.10.
Over 1.48 crore shares of Ispat Industries changed hands on BSE followed by Satyam Computer Services (1.47 crore shares), Suzlon Energy (1.24 crore shares), NIIT (1.23 crore shares) and Unitech (1.17 crore shares).
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