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Wednesday, May 19, 2010
3G auction closes; pan-India licence bid touches Rs 168.28 bn
Auction for 3G licence ended on Wednesday, with bids for pan-India licence touching Rs 168.28 billion that ensures the government a revenue of Rs 700 billion -- double the amount it expected to collect.
According to sources, Bharti, Idea and Vodafone Essar have won in some of the circles in the auction that lasted 34 days.
Details of who have secured all-India licence are awaited.
As per the latest figures, the pan-India licence bid touched Rs 168.28 billion compared to the reserve price of Rs 35 billion.
With the close of auction for 3G telephony spectrum, the government would commence the auction for Broadband Wireless Access (BWA) spectrum in two days.
Nine leading mobile operators, including Bharti Airtel, Vodafone, RCom and the Tatas, had entered the auction to grab spectrum for 3G services, which would allow users to access high-speed data downloads on mobile phones.
Slots were only available for three operators in most states, while four were available in Punjab, Bihar, Orissa, Jammu and Kashmir and Himachal Pradesh.
Nifty May 2010 futures below 5,000
Turnover jumps
Nifty May 2010 futures were at 4,925.10, at a premium of 5.45 points compared to spot closing of 4,919.65. Turnover in NSE's futures & options (F&O) segment jumped to Rs 1,36,575.09 crore from Rs 94,575.29 crore on Tuesday, 18 May 2010.
Tata Motors May 2010 futures were at premium at 712.15 compared to the spot closing of 709.45.
ICICI Bank May 2010 futures were at premium at 831.70 compared to the spot closing of 830.
Tata Steel May 2010 futures were at discount at 509.15 compared to the spot closing of 513.
In the cash market, the S&P CNX Nifty plunged 146.55 points or 2.89% at 4,919.65.
Asia spooked by German short selling moves
Dollar hits fresh four-year highs under 1.2200 as investors continue to be worried on Euro zone debt counts
The Asian stock market pared yesterday's modest advances and tumbled today as weak global cues and constant strength in the US dollar hurt the Asian equities. The benchmark indexes in major Asian markets dipped around 2% as fears about the Eurozone debt contagion refused to abate easily. The sentiments in risky assets were even more hurt yesterday on reports of Germany's decision to ban naked short selling in certain financial instruments, including select company shares and Euro government bonds. This took Euro to a fresh four-year low against the dollar, while crude oil slumped under $68 and hit a low of in early Asian trades, reflecting a tremendous drop in the risk appetite.
The Japanese stock market ended in negative territory though some intraday bounce back emerged in the stocks. Sharply lower closing on Wall Street, having given up considerable gains in early session, also pushed the buyers aside though bargain hunting in select stocks turned out to be a primary feature of the days in the second half of trading. The benchmark Nikkei 225 Index dropped 55.80 points, or 0.54%, to 10,187, while the broader Topix index of all First Section issues was down 3.27 points, or 0.36%, to 911.
On the economic front, a final report released by the Ministry of Economy, Trade and Industry revealed that industrial production in the country grew 1.2% in March compared to the previous month, revised upwards sharply from the preliminary report of a nominal 0.3% growth. On an annual basis, industrial production surged up 31.8%. The report further noted that shipments recorded a monthly increase of 2%, up from the initial estimate of 1.6%. At the same time, the decline in inventory was confirmed at 1.6%. On an annual basis, shipments climbed 29.9%, while inventory dropped 6%. Inventory ratio slipped 5.5% in March.
Further, the Bank of Japan revealed that output prices in manufacturing industry increased 1.2% in April compared with the same month last year. The report noted that, on a month-over-month basis, manufacturing output prices increased 1.2% in April, faster than the 0.2% rise in the prior month.
In Australia, stocks closed sharply lower following the rout in the regional indices. The market tanked to 9-month low as metal stocks were hurt badly. The benchmark S&P/ASX200 Index was down 83.60 points, or 1.87% to close at 4,387, while the All-Ordinaries Index ended at 4,414, representing a loss of 85.70 points, or 1.90%.
On the economic side, wages in the country rose at the fastest pace in more than a year in the first three months of 2010. Data released by the Australian Bureau of Statistics revealed that wages grew a seasonally adjusted 0.9% between January and March compared to the preceding three months. That is slightly above analyst forecasts for a 0.8% increase and follows a 0.6% increase in the December quarter. It also marks the fastest rate of wage growth since the December quarter of 2008, when wages increased 1.2%.
The minerals exploration expenditure in Australia is estimated to show a decrease of 11%, indicating that output of metals and minerals might be slowing in one of world's largest commodity producing nations, according to a latest report from the Australian Bureau of Agricultural and Resource Economics (ABARE). In its Minerals and energy Major development projects – April 2010 listings report, the ABARE stated that in 2009-10, mineral exploration expenditure in Australia is estimated to be $5.5 billion, a decrease of 11 per cent on expenditure in 2008-09.
In China, sellers returned with vengeance after an impressive 1% jump in the market yesterday. Chinese stocks were hurt by an utterly bearish undertone in the property and financial shares. The benchmark Shanghai Composite Index lost 0.27 percent to close at 2,587.81 points. The Shenzhen Component Index fell 0.12 percent to 9,991.4 at the close. Property stocks failed to continue Tuesday's strong performance with the sector losing 1.56 percent on continuing concerns over further tightening measures to cool the market.
In Mumbai, the BSE 30-share Sensex hit its lowest level in 2-1/2 months. The barometer index was provisionally down 460.03 points or 2.73%, up close to 40 points from the day's low and off close to 385 points from the day's high. The S&P CNX Nifty fell below the psychological 5,000 level. Banks were hammered with India's largest private sector bank by net profit ICICI Bank slumping close to 7% after an in-principle approval for the merger of Bank of Rajasthan with ICICI Bank.
In other markets, Hang Seng ended down 1.83%, Straits Times shed 2.40% while the TSEC lost out a relatively modest 0.34%.
The U.S. stock futures are showing that the DOW may slide by around 63 points at the open. The futures have been hit persistently during the day. The US dollar struck fresh four year high of 1.2142 and are currently consolidating just under 1.2200 threshold. Light sweet crude oil futures for June delivery dipped under $68 per barrel in electronic trading and currently trade at $68.38, down more than 1 dollar right now.
BSE Bulk Deals to Watch - May 19 2010
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
19/5/2010 500057 Aditya Birla Chem MAYUR MANGALDAS KOTHARI B 200000 88.25
19/5/2010 500057 Aditya Birla Chem ULKA MAYUR KOTHARI S 206500 88.24
19/5/2010 533026 Chemcel Bio ACME FURNITURE PRIVATE LIMITE B 186000 9.74
19/5/2010 533026 Chemcel Bio SUNIL BHANDARI B 186024 9.70
19/5/2010 533026 Chemcel Bio KAMLESH NAHAR B 152740 9.22
19/5/2010 533026 Chemcel Bio ACME FURNITURE PRIVATE LIMITE S 186000 9.70
19/5/2010 533026 Chemcel Bio SUNIL BHANDARI S 180647 9.74
19/5/2010 533026 Chemcel Bio KAMLESH NAHAR S 138790 9.19
19/5/2010 530495 Chhattisgarh Inds PRISM IMPEX PRIVATE LIMITED B 100000 7.17
19/5/2010 530495 Chhattisgarh Inds IMAGINE TRADING COMPANY PRIVATE LIMITED S 111811 7.17
19/5/2010 530755 Coral News INDER PAL DOGRA B 33900 8.37
19/5/2010 532542 Crew Bos SETU SECURITIES PVT LTD B 70000 83.00
19/5/2010 532542 Crew Bos CHETAN R.SHAH S 70000 83.00
19/5/2010 531270 Dazzel Conf KAMLESH NAHAR B 38613 32.29
19/5/2010 517973 DMC Intl NORTH INDIA SECURITIES PRIVATE LIMITED B 176000 15.74
19/5/2010 517973 DMC Intl BHARAT GUPTA B 111913 15.59
19/5/2010 517973 DMC Intl BHARAT GUPTA S 111813 15.66
19/5/2010 532671 Henkel India SHARAD SHAH B 1403782 54.07
19/5/2010 531979 Hind Aluminium DIPAK K SHAH B 44122 53.02
19/5/2010 530519 Interface Fin RAMANA KUMARI MANDAVA S 236091 0.31
19/5/2010 523712 JMG Corp BANARAS BEAD LEASING AND FINANCE PVT LTD B 500000 4.75
19/5/2010 523712 JMG Corp BIG BANG ENTERPRISES PVT LTD S 500000 4.75
19/5/2010 500235 Kalyani Steel MARWADI SHARES AND FINANCE LTD. B 239256 99.04
19/5/2010 500235 Kalyani Steel JMP SECURITIES PVT LTD B 221494 101.92
19/5/2010 500235 Kalyani Steel MARWADI SHARES AND FINANCE LTD. S 239256 98.98
19/5/2010 500235 Kalyani Steel JMP SECURITIES PVT LTD S 238401 102.08
19/5/2010 530547 KEN Fin Serv BHUPENDRA DEVICHARAN KASHYAP S 22300 82.00
19/5/2010 530547 KEN Fin Serv DHARAMVEER MOHANLAL REWAR S 15700 82.00
19/5/2010 531602 Koffee Break MAHENDRA KUMAR KHEDIA B 850000 2.35
19/5/2010 509011 Livingroom Life VSL SECURITIES PVT LTD B 15000 45.75
19/5/2010 509011 Livingroom Life ANISHA ASHISH CHATURMOHTA S 14959 45.75
19/5/2010 532998 Lotus Eye Care BHARAT SECURITIES PVT LTD B 118264 33.05
19/5/2010 532998 Lotus Eye Care BHARAT SECURITIES PVT LTD S 118264 32.81
19/5/2010 532998 Lotus Eye Care HARSHA RAJESHBHAI JHAVERI S 175000 33.25
19/5/2010 532998 Lotus Eye Care JHAVERI TRADING AND S 126134 33.25
19/5/2010 500267 Majestic Auto SHIVALIK SECURITIES LTD. B 172687 93.01
19/5/2010 533204 MANDHANA GENUINE STOCK BROKERS PVT. LTD. B 334612 134.84
19/5/2010 533204 MANDHANA SMART EQUITY BROKERS PRIVATE LIMITED B 197303 134.77
19/5/2010 533204 MANDHANA CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 798645 135.04
19/5/2010 533204 MANDHANA INTELLIVATE CAPITAL VENTURES LIMITED B 905549 133.09
19/5/2010 533204 MANDHANA LEENA INVESTMENT CONSULTANCY LLP B 615723 133.20
19/5/2010 533204 MANDHANA OPG SECURITIES P LTD B 1005230 135.14
19/5/2010 533204 MANDHANA NAVEEN TAPARIA B 202986 134.03
19/5/2010 533204 MANDHANA LAXMI NATH MEHROTRA B 400000 133.70
19/5/2010 533204 MANDHANA GENUINE STOCK BROKERS PVT. LTD. S 334612 134.76
19/5/2010 533204 MANDHANA SMART EQUITY BROKERS PRIVATE LIMITED S 197303 134.51
19/5/2010 533204 MANDHANA CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 798645 135.00
19/5/2010 533204 MANDHANA INTELLIVATE CAPITAL VENTURES LIMITED S 705549 133.77
19/5/2010 533204 MANDHANA OPG SECURITIES P LTD S 1005230 134.87
19/5/2010 533204 MANDHANA NAVEEN TAPARIA S 202986 133.74
19/5/2010 533204 MANDHANA INDIA MAX INVESTMENT FUND LIMITED S 248236 133.20
19/5/2010 590111 MASTER PARVATHANENI MOUNISHA B 41881 31.50
19/5/2010 590111 MASTER PERLA T N V A R SUDARSAN B 72013 31.97
19/5/2010 590111 MASTER VENKATA BADRINARAYANAMMA GOLLAPUDI B 42000 31.84
19/5/2010 590111 MASTER PARVATHANENI MOUNISHA S 41881 31.84
19/5/2010 590111 MASTER DEVAIANH MONDI S 37426 31.52
19/5/2010 590060 MK Exim NISHIL KANTILAL MALDE B 21200 50.00
19/5/2010 590060 MK Exim PARAGNAVINCHANDRASHETH S 16800 50.00
19/5/2010 523160 Morganite Cruc RAJENDRA KANTILAL SHAH B 18380 239.17
19/5/2010 523820 Neo Corp PAWANSUT TIE UP PRIVATE LIMITED S 60385 52.36
19/5/2010 531496 Omkar Overseas SHRENI SHARES PRIVATE LTD B 29279 63.50
19/5/2010 531496 Omkar Overseas NIRAV J SHAH (HUF) B 40000 64.32
19/5/2010 531496 Omkar Overseas PRANALI COMMODITIES PVT.LTD S 25000 63.90
19/5/2010 531496 Omkar Overseas RESHMA NAYANKUMAR SHAH S 33695 65.49
19/5/2010 530923 Passari Cellu APURVA COMMODITIES PRIVATE LIMITED B 53500 53.40
19/5/2010 530923 Passari Cellu SUNITA KOTHARI S 53500 53.39
19/5/2010 517417 Patels Airtmp REENA JAIN B 26000 124.50
19/5/2010 530047 Rai Saheb Rekh NILU SANJAY PODDAR S 25250 129.30
19/5/2010 512359 Rotam Comm KAPILABEN RASIKLAL PANDYA S 7744 76.99
19/5/2010 511144 Saya Housing NAWAL KISHOR AGARWAL B 20000 2.85
19/5/2010 531645 Southern Ispat VIMAL JITENDRABHAI DALAL B 56500 21.14
19/5/2010 522296 SS Forgings BRIJESHKUMAR PARSOTTAMBHAI UKANI B 60000 6.55
19/5/2010 522296 SS Forgings HITESH K PATEL S 60200 6.55
19/5/2010 526133 Supertex Inds AMAR KANAIYALAL CHAUHAN B 600000 3.91
19/5/2010 526133 Supertex Inds SUPER INFINCON PVT LTD B 3261394 4.33
19/5/2010 526133 Supertex Inds AMAR KANAIYALAL CHAUHAN S 600000 3.91
19/5/2010 526133 Supertex Inds ARCHI STEEL WIRES PVT.LTD. S 560000 4.28
19/5/2010 526133 Supertex Inds VIJAYKUMAR KASHMIRILAL PUNJABI S 500022 3.95
19/5/2010 526133 Supertex Inds SUPER INFINCON PVT LTD S 3278792 4.27
19/5/2010 523722 Svam Software SL GUPTA AND CO. B 87039 2.62
19/5/2010 532890 Take Solutions RELIANCE CAPITALTRUSTEE CO LTD AC REGULARSAVINGFUND-EQUITYOPTION B 800000 22.85
19/5/2010 532890 Take Solutions DSP BLACKROCK INVESTMENT MANAGERS PVT LTD B 3500000 22.85
19/5/2010 532890 Take Solutions PASSPORT INDIA INVESTMENTS MAURITIUS LIMITED S 5790924 22.86
19/5/2010 533203 TARAPUR TRA GENUINE STOCK BROKERS PVT. LTD. B 285086 51.38
19/5/2010 533203 TARAPUR TRA SMART EQUITY BROKERS PRIVATE LIMITED B 262480 51.86
19/5/2010 533203 TARAPUR TRA TRANSGLOBAL SECURITIES LTD. B 176147 51.61
19/5/2010 533203 TARAPUR TRA CROSSEAS CAPITAL SERVICES PRIVATE LIMITED B 747137 51.39
19/5/2010 533203 TARAPUR TRA OPG SECURITIES P LTD B 360407 51.68
19/5/2010 533203 TARAPUR TRA ANGEL INFIN PRIVATE LIMITED B 108320 51.99
19/5/2010 533203 TARAPUR TRA R M SHARES TRADING PRIVATE LIMITED B 116819 51.35
19/5/2010 533203 TARAPUR TRA RKSV SECURITIES INDIA PRIVATE LIMITED B 167685 52.89
19/5/2010 533203 TARAPUR TRA ATUL CHANDRAKANT SHAH B 100000 50.00
19/5/2010 533203 TARAPUR TRA NAVEEN TAPARIA B 144364 51.45
19/5/2010 533203 TARAPUR TRA SAHAR VYAPAR PRIVATE LIMITED B 374626 50.57
19/5/2010 533203 TARAPUR TRA GENUINE STOCK BROKERS PVT. LTD. S 285086 51.40
19/5/2010 533203 TARAPUR TRA SMART EQUITY BROKERS PRIVATE LIMITED S 262480 51.78
19/5/2010 533203 TARAPUR TRA TRANSGLOBAL SECURITIES LTD. S 175647 51.60
19/5/2010 533203 TARAPUR TRA CROSSEAS CAPITAL SERVICES PRIVATE LIMITED S 747137 51.18
19/5/2010 533203 TARAPUR TRA OPG SECURITIES P LTD S 360407 51.86
19/5/2010 533203 TARAPUR TRA ANGEL INFIN PRIVATE LIMITED S 108320 51.17
19/5/2010 533203 TARAPUR TRA R M SHARES TRADING PRIVATE LIMITED S 116819 51.31
19/5/2010 533203 TARAPUR TRA RKSV SECURITIES INDIA PRIVATE LIMITED S 167685 52.39
19/5/2010 533203 TARAPUR TRA ATUL CHANDRAKANT SHAH S 100000 52.60
19/5/2010 533203 TARAPUR TRA NAVEEN TAPARIA S 144364 51.67
19/5/2010 533203 TARAPUR TRA SAHAR VYAPAR PRIVATE LIMITED S 374626 50.27
19/5/2010 516072 Vishnu Chem BALRAM CHAINRAI S 72208 69.28
19/5/2010 531249 Well Pack Papers AMAR PREMCHAND WALMIKI B 417416 34.33
19/5/2010 531249 Well Pack Papers AMAR PREMCHAND WALMIKI S 417416 35.49
19/5/2010 522029 Windsor Mach HITESH SHASHIKANT JHAVERI S 77519 57.40
19/5/2010 506720 Zandu Rlty GENUINE STOCK BROKERS PVT. LTD. B 5175 3508.86
19/5/2010 506720 Zandu Rlty SMART EQUITY BROKERS PRIVATE LIMITED B 11005 3480.77
19/5/2010 506720 Zandu Rlty MARWADI SHARES AND FINANCE LTD. B 5801 3459.76
19/5/2010 506720 Zandu Rlty OPG SECURITIES P LTD B 13035 3471.99
19/5/2010 506720 Zandu Rlty RKSV SECURITIES INDIA PRIVATE LIMITED B 5516 3353.30
19/5/2010 506720 Zandu Rlty GENUINE STOCK BROKERS PVT. LTD. S 5175 3515.67
19/5/2010 506720 Zandu Rlty SMART EQUITY BROKERS PRIVATE LIMITED S 11005 3487.83
19/5/2010 506720 Zandu Rlty MARWADI SHARES AND FINANCE LTD. S 5801 3458.38
19/5/2010 506720 Zandu Rlty OPG SECURITIES P LTD S 13035 3477.52
19/5/2010 506720 Zandu Rlty RKSV SECURITIES INDIA PRIVATE LIMITED S 5516 3383.06
18/5/2010 513693 KIC Metaliks PUNJAB NATIONAL BANK S 55000 107.03
* B - Buy, S - Sell
Bears tighten their grip
Germany's move to ban naked shorting of certain financial instruments, including shares of ten German financial companies rattled world stocks, with the domestic bourses following suit. Banking, IT, metal, FMCG, consumer durables and realty stocks declined. Index heavyweight Reliance Industries extended recent sharp losses. The market breadth was weak. All the sectoral indices on BSE were in the red.
The BSE 30-share Sensex hit its lowest level in 2-1/2 months. The Sensex fell 467.27 points or 2.77%, up close to 45 points from the day's low and off close to 395 points from the day's high. The S&P CNX Nifty fell below the psychological 5,000 level.
India's largest private sector bank by net profit ICICI Bank slumped close to 7% after an in-principle approval for the merger of Bank of Rajasthan with ICICI Bank. Shares of Bank of Rajasthan hit 20% upper circuit on a favourable swap ratio for the merger.
The Sensex has lost 1,561.53 points or 8.68% from a recent peak of 17,970.02 on 7 April 2010. It is down 6% in calendar 2010 so far, after climbing 81% in calendar 2009.
Back to today's trade and intraday volatility was high. The market recovered from lower after an initial slide triggered by weak Asian stocks. The market weakened again later. The market once again recovered from lower level in morning trade. The intraday recovery proved short lived. The Sensex hit a fresh intraday low in early afternoon trade. Bargain hunting in some pivotals helped key benchmark indices recover from lower level in choppy afternoon trade. A sell-off gripped the bourses in mid-afternoon trade as European stocks slumped after Germany sharpened financial regulation. The Sensex hit 2-1/2 month low later.
NSE's volatility index India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, jumped 20.72% to 32.04. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
Foreign funds are offloading Indian stocks. As per the provisional data from the stock exchanges, foreign institutional investors (FIIs) sold shares worth Rs 439.70 crore and domestic funds bought shares worth Rs 326.61 crore on Tuesday, 18 May 2010. FIIs have sold shares worth a net Rs 6326.62 crore this month, till 18 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 2509.05 crore so far this month, till 18 May 2010.
Worries over fiscal problems in southern Europe triggered outflow from China and India dedicated funds during the week ended 12 May 2010. As a result, Asia funds, excluding Japan, saw only $27 million inflows, their worst week in well over a year, as per data from global fund tracker EPFR Global.
European stocks slumped after Germany's move to ban some naked shorting and German Chancellor Angela Merkel said the euro was in danger. Key indices in UK, France and Germany fell by 2.13% to 2.5%.
Germany's financial-markets regulator on Tuesday banned naked short selling of certain euro-zone debt and other securities to curb excessive price movements it said could destabilize the financial system.
Meanwhile, European finance ministers on Tuesday approved new regulations aimed at reining in hedge funds, the latest sign of toughened oversight of powerful players in global financial markets. The European Union also plans to limit the amount of debt, or leverage, that foreign-based funds can use to amplify their trades and profits.
Asia shares dropped in volatile trade as investors nervously eyed the euro's plunge to a fresh multi-year low against the US dollar and assessed moves by German financial regulators to ban some types of short selling of euro-zone securities. The key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Singapore and Taiwan fell by between 0.27% to 3.69%.
Japan's industrial output rose 1.2% in March, revised data showed on Wednesday, confirming output remains on an uptrend on the back of solid exports to Asia.
US index futures slumped in volatile trade. Trading in US index futures indicated that the Dow could fall 68 points at the opening bell on Wednesday, 19 May 2010.
US stocks sank on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed bank stocks, adding to worries about the sustainability of the global economic recovery. The Dow Jones Industrial Average fell 114.88 points or 1.08% to 10,510.95. The Standard & Poor's 500 Index lost 16.14 points, or 1.42% to 1,120.80. The Nasdaq Composite Index shed 36.97 points, or 1.57% to 2,317.26.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 2,114 companies rose 24.6% to Rs 55,330 crore on 25.3% rise in sales to Rs 5,57,645 crore in the quarter ended March 2010 over the quarter ended March 2009.
On the macro front, while the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
The latest economic data showed industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
A cyclone in Bay of Bengal is unlikely to impact the progress of India's monsoon rains, Ajit Tyagi, director general of the India Meteorological Department told a news agency on Tuesday. Cyclone Laila is moving across the Bay of Bengal towards east coast and is forecast to reach hurricane strength before making landfall in Andhra Pradesh on Thursday.
The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 1010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
The BSE 30-share Sensex fell 467.27 points or 2.77% to 16,408.49, its lowest closing since 25 February 2010. The Sensex fell 73.37 points at the day's high of 16802.39 in early trade. The index fell 502.44 points at the day's low of 16,373.32 in late trade.
The S&P CNX Nifty declined 146.55 points or 2.89% to 4,919.65 its lowest closing since 25 February 2010. The index hit a low of 4,908.15.
The BSE Mid-Cap index fell 2.55%. The BSE Small-Cap index fell 2.54%. Both the indices outperformed the Sensex.
All the sectoral indices on BSE declined. BSE Metal index (down 4.19%), Realty index (down 3.95%), banking sector index Bankex (down 3.85%), Auto index (down 3.44%), and FMCG index (down 2.79%), underperformed the Sensex. BSE IT index (down 1.53%), Capital Goods index (down 1.83%), PSU index (down 1.84%), Power index (down 1.94%), Consumer Durables index (down 1.98%), Healthcare index (down 2.01%), and Oil & Gas index (down 2.09%), outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 2203 shares declined as compared to 650 shares that advanced. A total of 70 shares were unchanged.
From the 30 share Sensex pack, 27 stocks declined and the rest rose.
BSE clocked turnover of Rs 4532 crore, higher than Rs 4421.91 crore on Tuesday, 18 May 2010.
Index heavyweight Reliance Industries (RIL) fell 2.19%, extending recent losses. RIL has agreed with Russia's Sibur to set up a joint venture in India to make butyl rubber amid rising demand from the auto industry. As per the agreement, butyl rubber will be produced at RIL's integrated petrochemical site in Jamnagar.
The RIL stock had surged early this month, boosted by after a favourable ruling in the Supreme Court on gas dispute with Anil Ambani controlled Reliance Natural Resources (RNRL). The Supreme Court ordered the two firms to renegotiate a deal based on government policy on gas utilization.
Earlier, the Bombay High Court, in its order dated 15 June 2009 had directed that RNRL will get assured supply of 28 mmscmd of gas from RIL's Krishna-Godavari basin for 17 years at $2.34 per million British thermal units (mBtu). The gas price was 44.28% lower than the price fixed by the government for gas sale from the RIL block in the KG basin at $4.2 mBtu.
India's largest drug maker by sales Ranbaxy Laboratories fell 5.87% after company said on Wednesday its European unit was recalling select batches of three products to add safety warnings under the regulations there. The company said there was no product quality concerns for the drugs, but did not name the products. Ranbaxy said the drugs were being recalled from Britain, Denmark and Ireland.
Auto shares fell on profit taking. India's top truck maker by sales Tata Motors fell 7.19%, with the stock falling for the fourth straight day. The company's global vehicles sales rose 53% to 77,732 units in April 2010 over April 2009. Global sales include that of Jaguar and Land Rover brands, which rose 61% to 17,909 vehicles. The figures were announced on 14 May 2010.
India's largest small car maker by sales Maruti Suzuki India declined 0.98%. Maruti's total sales rose almost 30% to 93,058 units in April 2010 over April 2009. Domestic sales rose 23.4% to 80,034 units. The data was unveiled on 1 May 2010. India's largest tractor maker by sales Mahindra & Mahindra fell 5.92%.
Car sales in India rose an annual 39.5% to 143,976 cars in April 2010 over April 2009, data from the Society of Indian Automobile Manufacturers (SIAM) showed. Sales of trucks and buses, a barometer of economic activity, rose 64.5 % to 49,086 units in April 2010 over April 2009, SIAM said.
Bajaj Auto fell 2.15%. The stock had hit a record high of Rs 2219.90 in intraday trade on Friday, 14 May 2010, boosted by strong Q4 results. Net profit surged 306% to Rs 528.65 crore in Q4 March 2010 over Q4 March 2009. The company announced result during market hours on Wednesday, 12 May 2010.
But, India's largest motorbike maker by sales Hero Honda Motors rose 0.59%, reversing early losses.
Interest rate sensitive banking shares declined tracking weak financial shares worldwide. India's second largest private sector bank by net profit HDFC Bank fell 1.67%, with the stock falling for the fifth straight day.
Private sector lender ICICI Bank tumbled 7.24% amid concerns the bank is paying a high price for its proposed deal to buy small rival bank Bank of Rajasthan. ICICI shares extended fall for the forth straight day.
The board of directors of ICICI Bank and Bank of Rajasthan have given an in-principle nod for the merger of the later with the former. The swap ratio for the merger is set at 25 shares of ICICI Bank for every 118 shares held in Bank of Rajasthan. Bank of Rajasthan shares hit 20% upper circuit at Rs 119.40, boosted by the favourable swap ratio for the merger.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) fell 2.69%. SBI expects its advances to grow by 22-23% in the current financial year. SBI's net profit declined 31.93% to Rs 1866.60 crore in Q4 March 2010 over Q4 March 2009. The bank announced the result during market hours on Friday, 14 May 2010.
India's largest mortgage lender by total income Housing Development Finance Corporation fell 2.54% with the stock falling for the fourth straight day. The company's board on 3 May 2010 approved a 5-for-1 stock-split.
HDFC has reportedly extended concessional home loan scheme till 30 June 2010. Under the scheme, HDFC would offer a fixed interest rate of 8.25% up to March 2011, 9% for the next one year and a floating rate thereafter. The scheme was scheduled to end on 30 April 2010.
Metal and mining stocks fell as copper prices dropped in Asian trading on Wednesday. Hindustan Zinc, Jindal Steel & Power, Sterlite Industries, Tata Steel, Jindal Saw, Hindalco Industries, Steel Authority of India, Sesa Goa, National Aluminum Company fell by between 2.83% to 7.33%.
Consumer durables stocks fell on profit taking. Rajesh Exports, Blue Star, Titan Industries, Videocon Industries and Gitanjali Gems fell by between 0.21% to 3.76%.
FMCG stocks fell on profit taking. United Spirits, ITC, Hindustan Unilever and Marico fell by between 0.91% to 3.48%.
Oil exploration stocks fell as crude oil futures prices declined. Fall in crude oil prices would result in lower realizations from crude sales. Light, sweet crude oil futures for June delivery on the New York Mercantile Exchange settled 67 cents lower at $69.41 a barrel on Tuesday. Cairn India fell 3.86%. India's largest oil & gas exploration firm by sales ONGC fell 2.02%. India's second largest oil & gas exploration firm by sales Oil India declined 1.4%.
India's largest cellular services provider by sales Bharti Airtel fell 3.08% extending recent sharp fall triggered by telecom regulator Telecom Regulatory Authority of India (Trai)'s recommendation that telecom firms pay a one-time fee for holding radio-spectrum beyond 6.2 mega hertz (MHz) based on 3G prices.
Bharti Airtel said the telecoms regulator's proposals on allocation of second-generation (2G) spectrum are shocking, arbitrary and retrograde and are against all existing global norms for spectrum allocation. The company said it was confident that the Department of Telecommunications (DoT) and that the government will take a rational approach and summarily reject these arbitrary, impractical and perverse recommendations.
India's second largest listed cellular services provider by sales Reliance Communications (RCom) fell 5.66%. The stock hit a 52 week low of Rs 136 today. Consolidated net profit declined 22.99% to Rs 4655 crore in the year ended March 2010 over the year ended March 2009. The company announced the result on Saturday, 15 May 2010.
At the time of announcing the results, chairman Anil Ambani said RCom will be able to sustain profitable growth in the coming quarters despite a highly competitive environment.
India's largest thermal power producer by sales NTPC fell 1.69% extending recent losses as net profit declined 4.52% to Rs 2017.65 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.
India's largest engineering and construction firm by sales Larsen & Toubro fell 1.3% on profit taking after last two days' post-result rally triggered by strong guidance for the current financial year. At the time of announcing Q4 March 2010 results on Monday, 17 May 2010, L&T's management gave a guidance of 20% growth in revenue and 25% growth in new orders in the current financial year.
L&T's order inflow jumped 90% to Rs 23843 crore in Q4 March 2010 over Q4 March 2009. The company's order book as at 31 March 2010 stood at Rs 1,00,239 crore, which is 2.7 times its sales of Rs 36,996 crore for the year ended March 2010. Net profit rose 44% to Rs 1438.10 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.
Among other capital goods stocks, Siemens, Bharat Heavy Electricals, BEML, ABB, Thermax and Punj Lloyd fell by between 1.26% to 5.47%.
It stocks fell on profit taking. India's second largest software services exporter Infosys fell 0.76%, reversing initial gains. India's third largest software services exporter Wipro fell 1.54%. India's largest software services exporter TCS fell 2.26% with the stock falling for the fourth straight day on reports the UK government will review outsourcing contracts, including agreements signed with TCS, in a bid to cut government spending.
Mandhana Industries settled at Rs 133.65 on BSE, a 2.81% premium over the initial public offer price of Rs 130. The stock debuted at Rs 132.70, a 2.10% premium over initial public offer (IPO) price.
Cals Refineries clocked the highest volume of 3.15 crore shares on BSE. Reliance Natural Resources (1.25 crore shares), Birla Power Solutions (1.24 crore shares), Mandhana Industries (1.08 crore shares) and Tarapur Transformers (91.62 lakh shares) were the other volume toppers in that order.
ICICI Bank clocked the highest turnover of Rs 197.98 crore on BSE. Piramal HealthCare (Rs 183.36 crore), Tata Steel (Rs 169.31 crore), Mandhana Industries (Rs 145.45 crore) and State Bank of India (Rs 125.57 crore) were the other turnover toppers in that order.
Market may edge lower on weak global stocks; ICICI Bank eyed
Weak global global stocks may pull domestic bourses lower after Tuesday's (18 May 2010)'s mild gains. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicated that the Nifty could fall 78 points at the opening bell. Foreign funds are pressing sales.
As per the provisional data from the stock exchanges, foreign institutional investors (FIIs) sold shares worth Rs 439.70 crore and domestic funds bought shares worth Rs 326.61 crore on Tuesday. FIIs have sold shares worth a net Rs 6326.62 crore so far this month, till 18 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 2509.05 crore so far this month, till 18 May 2010
Asian stocks slid on Wednesday after concerns about the sustainablility of the global economic recovery drove US shares lower. The key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Singapore and Taiwan fell by between 1.24% to 1.94%.
US stocks sank on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed bank stocks, adding to worries about the sustainability of the global economic recovery. The Dow Jones Industrial Average fell 114.88 points or 1.08% to 10,510.95. The Standard & Poor's 500 Index lost 16.14 points, or 1.42% to 1,120.80. The Nasdaq Composite Index shed 36.97 points, or 1.57% to 2,317.26.
Adding to the woes, Germany added to the uncertain future for banks when it suddenly moved to ban naked short selling in the stocks of the country's 10 most important financial institutions. Naked short selling occurs when an investor sells shares without borrowing them first.
Meanwhile, European finance ministers approved new regulations aimed at reining in hedge funds, the latest sign of toughened oversight of powerful players in global financial markets. The European Union also plans to limit the amount of debt, or leverage, that foreign-based funds can use to amplify their trades and profits.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 2,100 companies rose 24% to Rs 54,676 crore on 25.3% rise in sales to Rs 5,54,626 crore in the quarter ended March 2010 over the quarter ended March 2009.
Pidilite Industries, Rural Electrification Corporation, Amara Raja Batteries, Agro Tech Foods among others will announce their January-March 2010 quarter results today.
Meanwhile, Bank of Rajasthan has agreed a merger with ICICI Bank. The swap ratio for the merger is set at 25 shares of ICICI Bank for every 118 shares held in Bank of Rajasthan.
On the macro front, while the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
The latest economic data showed industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
The southwest monsoon has set over the Andaman and Nicobar islands and some parts of southeast Bay of Bengal. The weather IMD expects normal rainfall in the June-September monsoon season this year. Rainfall is likely to be 98% of the long-term average, the IMD said on 23 April 2010. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its half-yearly World Economic Outlook, the International Monetary Fund (IMF) has pegged India's GDP growth at 8.75% in calendar 2010 and 8.5% in calendar 2011. According to the IMF, domestic demand in India will strengthen as the labour market improves, and investment is expected to be boosted by strong corporate profitability, rising business confidence and favourable financing conditions.
The key benchmark indices eked out small gains in choppy trading session on Tuesday, 18 May 2010, tracking higher European stocks and gains in US index futures. The BSE 30-share Sensex rose 40.20 points or 0.24% to 16,875.76 on Tuesday.
Grey Market Premiums - May 19 2010
| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Mandhana Industries Ltd. | 130 | 5 to 7 |
| Sutlaj Jal Vidhut Nigam (SJVNL) | 26 | 3 to 4 |
| Jaypee Infra | 102 | Discount |
Crude ends lower for sixth straight day
Prices erase earlier gains as dollar spikes up
Crude oil prices ended substantially lower at Nymex on Tuesday, 18 May 2010. Prices erased earlier gains after the euro continued its backslide against the dollar. Prices fell as tomorrow's weekly inventory report is expected to show another piling of crude inventories. Prices slipped as the dollar rose substantially and traders continued to mull over the pace of euro zone's recovery and its impact on the currencies, especially on the euro. Prices rose earlier on the back of stronger than expected economic data.
On Tuesday, crude-oil futures for light sweet crude for June delivery closed at $69.41/barrel (lower by $0.67 or 1%). With today, prices fell for sixth straight session. Last week, crude shed 4.6%. For the month of April, crude rose 2.8%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is lower by 1.6%.
Prices have shed almost 17% since it hit a high of $86.5 during first week of April this year. Prices are also very much lower as compared to 3 July, 2008 settlement of $145.29 a barrel and an intraday high of $147.27 on 11 July, 2008, an all-time high. However, oil has also gained nearly 135% from a December 2008 nadir. That day prices settled at $33.87 a barrel following an intraday low of $32.40.
Clouds of uncertainty hanging over Europe dissipated a bit today as Greece said that it received 14.5 billion euros in loans from the European Commission and that its short-term financing needs are covered.
The news saw some renewed strength in the euro. However, the euro soon resumed its backslide. Its downturn steepened following news that Germany will ban naked short selling of certain financial stocks, credit default swaps, and government bonds. The euro dropped a sharp 1.5% to a fresh four-year low that was just above 1.2200 per dollar. In the currency market today, the Dollar Index spiked 1.1% to a fractionally improved 52-week high.
Among economic data for the day, The Commerce Department in US reported on Tuesday, 18 May 2010 that U.S. housing starts increased for the second straight month in April but building permits fell sharply. Hitting an 18-month high, housing starts rose an estimated 5.8% to a seasonally adjusted annual rate of 672,000 from an upwardly revised 635,000 in March. April's starts marked the highest level of new construction since October 2008, when the financial crisis worsened. Starts of single-family homes rose 10.2% in April to a 593,000-unit annual rate, the highest since August 2008.
However, building permits fell 11.5% to a seasonally adjusted annual rate of 606,000, the lowest in six months. Permits for single-family homes, also dropped, down 10.7% to a 484,000 annual rate. Housing starts are up 40.9% compared with the record low in April 2009, but they're down about 70% from the peak in 2006. Building permits are up 15.9% compared with a year earlier.
Separately, the Labor Department in US reported on Tuesday, 18 May 2010 that wholesale prices fell slightly in April as the cost of energy and food eased. The main producer price index fell 0.1%, seasonally adjusted. The more closely followed core rate, which excludes volatile energy and food prices, rose 0.2%. Over the past 12 months, wholesale prices have risen 5.5%, on an unadjusted basis. Yet the core rate has risen only 1% in the past year.
Last week, The International Energy Agency lowered by 220,000 barrels a day its forecast for global oil demand for 2010. Oil demand is estimated to grow from 2009 by 1.9%, equating to 1.6 million barrels a day, to 86.4 million barrels a day.
In contrast, the U.S. Energy Information Agency had raised its outlook for global oil demand to 1.6 million barrels per day in 2010, slightly higher than the 1.5 million barrels-a-day projection made last month. Separately, The Organization of the Petroleum Exporting Countries had also said last week it was raising its estimate for global oil demand for 2010. OPEC expects global oil demand to grow by 950,000 barrels a day to 85.38 million barrels a day. It previously expected growth of 900,000 barrels a day.
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. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for May delivery closed lower by Rs 19 (0.6%) at Rs 3,199/barrel. Natural gas for May delivery closed at Rs 199.5, lower by Rs 0.9 (0.44%).
Markets likely to weaken at start
Headlines for the day:
Bank of Rajasthan to merge with ICICI Bank
Japan steel maker's plan to buy stake in JSW comes close
Steel firms prepare to ease prices on market signals
Events for the day:
Major corporate action
Mandhana Industries to be list today
Ex-date for dividend of Sterlite Industries
Results: Rural Electrification Corporation
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares rose on Tuesday, snapping two consecutive days of falls as sovereign debt fears waned after Greece received funds from the European Union to repay its immediate debt.
The US stocks sank on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed banking stocks, adding to worries about the sustainability of the global economic recovery.
In today's trade, the Asian markets were trading in red, following the Wall Street losses. At the time of writing this report, SGX Nifty was trading 77 points lower.
Indian markets
The Greece gets their first $18 billion bailout package from European Union to rescue it from the debt default, these relieved some fears in the Euro-zone, which led to positive closing in the European markets. The drop in US stocks came as the euro fell to a four-year low against the dollar on continued fear that European authorities wouldn't be able to contain the region's fiscal and debt problems. The Asian markets were lower after Wall Street dropped on Germany's decision to ban naked short selling in certain financial instruments, with the resulting drop in the euro weighing on exporters around the region. Following the negative cues set by the Asian markets, the Indian indices are set to have a gap-down start.
The scrip specific action can be seen from companies like Rural Electrification Corporation , who will be reporting its results today, and some movements in Bank of Rajasthan and ICICI Bank as they are set to merge. Also there is a new listing on the bourses today, Mandhana Industries, a vertically integrated textile and garment manufacturing company. Its issue price has been fixed at Rs130 per share, at higher end of price band of Rs120-130.
In terms of events, the latest gross domestic product data will be out on May 31, 2010. Monsoon’s progress will also have some bearing on market mood in the near term.
Commodity cues
In the commodity space, the crude oil prices slipped to a 7 month low Tuesday as the dollar neared a new four-year high against the euro, with the Nymex light crude oil for the June series decreased by $0.67 per barrel, whereas in the metals space, the Comex Gold for the June series dipped by $13.40 and the Comex Silver for the June series was up by $0.02 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 18, 2010, the foreign Institutional Investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs1,031.60 crore, whereas the domestic mutual funds, on May 14, 2010, were the net sellers of the stocks to the tune of Rs205.50 crore.
Oil prices fall to USD 69.41 a barrel
Benchmark crude for June delivery fell 54 cents to settle at USD 69.41 a barrel on the New York Mercantile Exchange.
In other Nymex trading in June contracts, heating oil fell 2.37 cents to settle at USD 1.9615 a gallon. Gasoline settled unchanged at USD 2.0431 a gallon. Natural gas gave up 5.6 cents to settle at USD 4.342 per 1,000 cubic feet.
In London, the Brent crude July contact dropped 67 cents to settle at USD 74.43 on the ICE futures exchange.
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