India Budget Analysis - March 3 2010
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Wednesday, March 03, 2010
Asian stocks open positive
Asian stocks rose as metal and oil prices advanced and concerns about Greece`s budget problems eased.
Japanese benchmark index Nikkei 225 rose 2.64 points, or 0.03%, to trade at 10,224.48. Hong Kong`s is trading advanced 110.18 points, or 0.53%, at. 21,016.29. China`s Shanghai Composite decreased 3.12 points, or 0.10% to trade at 3,069.99.
Taiwan`s Taiex index increased 51.23 points, or 0.67%, to trade at 7,648.85. South Korea`s Kospi index rose 2.66 points, or 0.16% to trade at 1,617.78. Singapore`s Straits Times index increased 13.02 points, or to 0.47% trade at 2,785.22. (07.30 a.m., IST)
US stocks end with mild gains
Stocks run out of gas in the final hour of trading
US stocks coughed up almost all its early gains and ended marginally higher on Tuesday, 02 March, 2010. Some merger related news and a weak dollar gave stocks a strong start and indices were trading modestly higher during mid session. But at the end, stocks almost ran out of gas and ended little higher.
At the end of the day on Tuesday, the Dow Jones Industrial Average ended higher by 2.19 points at 10405.98. Nasdaq ended higher by 7.22 points at 2280.79. S&P 500 ended higher by 2.6 points at 1118.31. Dow opened 37 points higher earlier during the day.
Seven of ten economic sectors ended higher led by the materials, energy, and utilities sectors. Telecom and technology sectors featured among laggards. Walt Disney was a major Dow gainer while Microsoft was the main Dow loser.
Strong gains among Europe's bourses in the wake of another rate hike by Australia's central bank helped prop up the mood of global participants and helped U.S. equities start the session on solid footing.
The materials stocks were the best performers. Financials were also a primary leader earlier this session, thanks to a rebound by bank stocks.
Among basic materials plays, Newmont Mining was a primary leader. The stock was helped by both broader market support and sharp gains among precious metals prices.
Monthly auto sales figures hit the wires this session. Toyota Motor reported that U.S. February sales declined 8.7% year-over-year, while Honda Motor reported that its American Honda Motor division saw February sales increase 12.7% year-over-year. Ford reported that its February monthly sales surged 43.1% and retail sales increased 28% from one year ago.
Among major stock movement, Qualcomm shares rose 7% after the company increased its stock buyback authority and increasing its dividend by 12%.
Crude prices ended higher on Tuesday, 02 March, 2010. Prices rose as the dollar slipped against the euro increasing commodities' appeal against an alternate investment. On Tuesday, crude-oil futures for light sweet crude for April delivery closed at $79.68/barrel (higher by $0.98 or 1.2%). During intra day trading, crude rose to a high of $80.62.
In the currency market on Tuesday, the dollar weakened against the euro. The dollar index dropped by almost 0.4%.
Barring WNS, all Indian ADRs ended higher on Tuesday. Wipro Technologies and Tata Motors were the main gainers soaring 2.1% and 4.8% respectively.
Couple of economic data are expected tomorrow. The private data job cut and employment data are the major ones. Earning reports will continue to pour in tomorrow.
ARSS Infrastructure to list on 3 March 2010
The IPO was priced at Rs 450 per share
Shares of construction and engineering firm ARSS Infrastructure Projects will be listed on the stock exchanges on 3 March 2010. The company had raised Rs 113.04 crore through the recently concluded initial public offer (IPO) which was subscribed 47.62 times. The company had fixed issue price at the top end of the Rs 410 to Rs 450 price band.
Foreign institutional investors (FIIs) put in bids for 4.48 crore shares compared with 15.07 lakh shares reserved for the qualified institutional buyers (QIB) category as a whole. The non-institutional investors segment, comprising of high networth individuals and corporates was bid a staggering 124.5 times. The retail investors' segment was bid 18.5 times. The company had set the Rs 410 to Rs 450 per share as price band for the IPO which remained open for bidding between 8 and 11 February 2010.
The company will use the issue proceeds for investment in joint ventures and funding long term working capital requirement.
ARSS Infrastructure Projects (AIPL) provides construction services for railway infrastructure, roads & highways and irrigation projects. The company has successfully executed over 86 projects involving construction of over 200 km of railway tracks. Besides rail projects, AIPL is also into construction of roads and highways and irrigation projects.
Railway projects account for 41% of AIPL's unexecuted order book of Rs 2877.53 crore (as on 10 January 2010). Road projects account for 41% and 3% of the order backlog comprises irrigation projects.
Bullion metals add substantial glaze
Prices shine as euro gains against dollar
Precious metal prices ended decently higher on Tuesday, 02 March, 2010. Prices rose as the dollar slipped against the euro increasing precious metal's appeal against an alternate investment.
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 Tuesday, gold for April delivery ended at $1,137.4 an ounce, higher by $19.1 (1.7%) an ounce on the New York Mercantile Exchange.
On Tuesday, March Comex silver futures ended higher by 59 cents (3.5%) at $17.04 an ounce.
In the currency market on Tuesday, the dollar weakened against the euro. The dollar index dropped by almost 0.4%.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
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. 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.
At the MCX, gold prices for April delivery closed higher by Rs 223 (1.33%) at Rs 17,020 per ten grams. Prices rose to a high of Rs 17,037 per 10 grams and fell to a low of Rs 16,767 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 646 (2.5%) higher at Rs 26,691/Kg. Prices opened at Rs 25,989/kg and rose to a high of Rs 26,788/Kg during the day's trading.
Crude closes shy of $80
Prices rise as the dollar drops
Crude prices ended higher on Tuesday, 02 March, 2010. Prices rose as the dollar slipped against the euro increasing commodities' appeal against an alternate investment.
On Tuesday, crude-oil futures for light sweet crude for April delivery closed at $79.68/barrel (higher by $0.98 or 1.2%). During intra day trading, crude rose to a high of $80.62.
In the currency market on Tuesday, the dollar weakened against the euro. The dollar index dropped by almost 0.4%.
Also on Tuesday, natural-gas futures for April delivery shed an earlier, modest loss to gain 3 cents, or 0.6%, to $4.708 per million British thermal units.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 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. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for February delivery closed Rs 78 (2.1%) higher at Rs 3,702/barrel. Natural gas for March delivery closed unchanged at Rs 217/mmbtu.
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