Click on the Image to view Full SIZE
Tuesday, March 24, 2009
BSE Bulk Deals to Watch - March 24 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
24/3/2009 530499 A K CAPITAL FIRSTRAND IRELAND PLC S 135050 141.83
24/3/2009 524412 AAREY DRUGS JIPAL PINESHKUMAR SHAH B 27500 30.35
24/3/2009 524412 AAREY DRUGS CHAMPAKLAL C SHAH S 27505 30.35
24/3/2009 531223 ANJANI SYNTH POOJA SUMIT AGARWAL S 150000 8.76
24/3/2009 516064 AROW COAT PR BHARATHARJIBHAIGABANI B 25000 10.00
24/3/2009 532995 AVON CORP PANKAJ PRATAPSINH SARAIYA B 100000 5.48
24/3/2009 505506 AXON INFOTEC PIYUSH D MEHTA HUF B 4000 8.00
24/3/2009 512253 BIO GREEN I RAMESH BHAYANI B 125250 8.31
24/3/2009 512253 BIO GREEN I SUDHA R SHETH S 99800 8.29
24/3/2009 523367 DCM SHR CONS SAL REAL ESTATE PVT. LTD B 1259571 25.75
24/3/2009 523367 DCM SHR CONS SANJAY DUTT S 1259571 25.75
24/3/2009 532876 EVERONN SYS OPG SECURITIES P LTD B 245595 150.62
24/3/2009 532876 EVERONN SYS OPG SECURITIES P LTD S 245595 150.76
24/3/2009 532022 FILAT FASH KANTILAL PREMJI DEDHIA B 59500 66.81
24/3/2009 531137 GEMSTONE INV SHAH JATIN S 100000 28.12
24/3/2009 531137 GEMSTONE INV PARMAR BHARATKUMAR B S 15000 25.00
24/3/2009 531137 GEMSTONE INV HEMANTMADHUSUDANSHETH S 23000 23.48
24/3/2009 532296 GLENMARK PHA SR PHOENICIA MAURITIUS LIMITED CLASS A PHOENICIA PORTFOLIO B 2713295 149.60
24/3/2009 532296 GLENMARK PHA MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. S.V. S 2713295 149.60
24/3/2009 530263 GLOBAL CAP M CHAK DE TRADING PRIVATE LTD S 154100 18.00
24/3/2009 505750 JOSTS ENG CO MAHESH PARSAD B 7000 125.34
24/3/2009 505750 JOSTS ENG CO MAHESH PARSAD S 7000 116.41
24/3/2009 502933 KATARE SPG. AMI STOCK SHARE BROKERS PLTD S 56000 19.70
24/3/2009 502933 KATARE SPG. REENA JASVANTBHAI JANI S 15000 19.70
24/3/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 139576 5.80
24/3/2009 532967 KIRI DYES ARENA TEXTILES AND INDUSTRIES LIMITED B 399606 90.09
24/3/2009 511728 KZLEASING JYOTIKABEN MAHESHBHAI HADVANI B 20000 74.80
24/3/2009 511728 KZLEASING AMI STOCK SHARE BROKERS PLTD S 37700 74.67
24/3/2009 514242 MH MILLS & I AABHAR HOLDING PVT LTD B 128000 3.70
24/3/2009 514242 MH MILLS & I MALIBU KAPITAL LTD S 153000 3.72
24/3/2009 531611 PRRANET INDU BHOGILAL SHAH S 908104 2.35
24/3/2009 507649 RASOI LTD J L MORISON INDIA LIMITED B 16214 407.82
24/3/2009 530459 VALSON IND AMI STOCK SHARE BROKERS PLTD S 25000 25.90
24/3/2009 531668 VISION CORPO BALLY MERCHANDISE LTD B 925000 5.42
24/3/2009 531668 VISION CORPO RUPA V. SHAH S 175000 5.42
24/3/2009 531668 VISION CORPO HONEY N. SHAH S 515000 5.42
24/3/2009 531249 WELL PACK PA GANDHI MANISHA NAVNEETLAL B 25109 125.41
24/3/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 30000 125.49
24/3/2009 514470 WINSOME TEXT KANUBHAI GHELABHAI PATEL B 45000 34.48
24/3/2009 514470 WINSOME TEXT KANUBHAI GHELABHAI PATEL S 45000 31.67
NSE Bulk Deals to Watch - March 24 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
24-MAR-2009,BHAGWATIHO,Bhagwati Banquets and Hot,RAJSHAH ENTERPRISES (P)LTD,BUY,177375,23.00,-
24-MAR-2009,EDSERV,Edserv Softsystems Limite,EPOCH SYNTHETICS PVT LTD,BUY,227500,25.15,-
24-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,149517,2101.66,-
24-MAR-2009,EVERONN,Everonn Systems India Lim,CPR CAPITAL SERVICES LTD.,BUY,97663,149.61,-
24-MAR-2009,EVERONN,Everonn Systems India Lim,OM INVESTMENTS,BUY,97388,149.65,-
24-MAR-2009,GLORY,Glory Polyfilms Limited,YOGESH PRAKASH KELA,BUY,140000,53.70,-
24-MAR-2009,GMRFER,GMR Ferro Alloys & Indust,PRIME INDIA INVESTMENT FUND LTD,BUY,200000,25.02,-
24-MAR-2009,IFBAGRO,IFB Agro Industries Ltd,IFB AUTOMOTIVE PRIVATE LIMITED ,BUY,390000,46.50,-
24-MAR-2009,KALINDEE,Kalindee Rail Nirman (Eng,DBS CHOLAMUTUAL FUND ,BUY,83806,89.04,-
24-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,ARENA TEXTILES & INDUSTRIES LIMITED,BUY,400394,90.01,-
24-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,SHRIMAL ANIL,BUY,108421,98.20,-
24-MAR-2009,MCDOWELL-N,United Spirits Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,1490541,630.00,-
24-MAR-2009,MCDOWELL-N,United Spirits Limited,RELIANCE CAP TRUSTEE CO LTD A/C RELIANCE EQUITY FUND,BUY,733000,630.00,-
24-MAR-2009,MCDOWELL-N,United Spirits Limited,RELIANCE CAP TRUSTEE CO LTD A/C RELIANCE GROWTH FUND,BUY,734000,630.00,-
24-MAR-2009,MCDOWELL-N,United Spirits Limited,RELIANCE CAP TRUSTEE CO LTD A/C RELIANCE VISION FUND,BUY,733000,630.00,-
24-MAR-2009,MCLEODRUSS,Mcleod Russel India Limit,ASISH FINANCE LIMITED,BUY,613909,57.35,-
24-MAR-2009,MCLEODRUSS,Mcleod Russel India Limit,DAMANI MANMOHAN,BUY,1500000,63.20,-
24-MAR-2009,STAR,Strides Arcolab Limited,JM FINANCIAL MUTUAL FUND,BUY,200600,79.75,-
24-MAR-2009,SUNFLAG,Sunflag Iron And Steel Co,SUPRA CORPORATION LIMITED,BUY,1121058,12.89,-
24-MAR-2009,TECHNOELEC,Techno Ele. & Eng. Co Ltd,AARKAY INVESTMENTS PVT.LTD,BUY,465000,72.00,-
24-MAR-2009,TECHNOELEC,Techno Ele. & Eng. Co Ltd,NOBLE COMMUNICATIONS PVT LTD,BUY,476462,71.99,-
24-MAR-2009,TECHNOELEC,Techno Ele. & Eng. Co Ltd,VARANASI COMMERCIAL LIMITED,BUY,1925000,72.00,-
24-MAR-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PVT LTD,BUY,1148679,12.87,-
24-MAR-2009,EDSERV,Edserv Softsystems Limite,EPOCH SYNTHETICS PVT LTD,SELL,89581,25.23,-
24-MAR-2009,EDSERV,Edserv Softsystems Limite,HS FII INVESTMENTS LIMITED,SELL,209800,25.15,-
24-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,149517,2102.73,-
24-MAR-2009,EVERONN,Everonn Systems India Lim,CPR CAPITAL SERVICES LTD.,SELL,97663,149.64,-
24-MAR-2009,EVERONN,Everonn Systems India Lim,OM INVESTMENTS,SELL,98988,149.86,-
24-MAR-2009,GMRFER,GMR Ferro Alloys & Indust,BRP STOCK BROKING SERVICES LIMITED,SELL,200000,25.02,-
24-MAR-2009,IFBAGRO,IFB Agro Industries Ltd,ASANSOL BOTTLING PACKAGING CO. LTD.,SELL,390000,46.50,-
24-MAR-2009,KALINDEE,Kalindee Rail Nirman (Eng,VNR AND CO,SELL,139000,88.07,-
24-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,SHRIMAL ANIL,SELL,108421,91.97,-
24-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,SILVER CROSS MARKETING PVT LTD,SELL,350000,90.01,-
24-MAR-2009,MCDOWELL-N,United Spirits Limited,FID FUNDS (MAURITIUS) LIMITED,SELL,3272280,630.00,-
24-MAR-2009,MCDOWELL-N,United Spirits Limited,FIDELITY INVST INTERNATIONAL FIDELITY KOREA- INDIA EQ INVST,SELL,678698,630.00,-
24-MAR-2009,MCLEODRUSS,Mcleod Russel India Limit,ASISH FINANCE LIMITED,SELL,1313380,62.93,-
24-MAR-2009,MCLEODRUSS,Mcleod Russel India Limit,KALPTARU INVESTMENTS PVT. LTD.,SELL,619842,63.85,-
24-MAR-2009,SUNFLAG,Sunflag Iron And Steel Co,CHARANJIV DHAWAN,SELL,1028522,12.90,-
24-MAR-2009,TECHNOELEC,Techno Ele. & Eng. Co Ltd,CITIGROUP VENTURE CAPITAL,SELL,2830669,72.00,-
24-MAR-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PVT LTD,SELL,1092640,12.85,-
Post Session Commentary - March 24 2009
Markets closed on a lackluster note after showing a strong rally at the initial stage on the back of far end profit booking across the selective indices. BSE Sensex managed to end the day on positive note helped by some buying in key stocks, after touching the red zone during final trading. Market pared most of its gains during last hours on some profit booking led by recent rally in stocks and lower US index futures. However, stocks extended their gains before afternoon trade tracking upbeat sentiment from global markets following the US government''s announcement to ease banks of toxic assets by buying those bad assets.
The market opened today on firm note backed by strong cues from the markets all over the world. The US stock markets on Monday surged after the treasury department announced plan to remove bad assets from banks'' balance sheets. Along with this, a better-than-expected existing home sales report also contributed to the rally. Further, strong buying impetus aided benchmark indices continue to trade on strong note. However, Market was not able to maintain the same tide till end and slipped during final trading. Market pared its initial gains to close below the day''s high. BSE Sensex ended above 9,400 level and NSE Nifty closed below 2,950 level. From the sectoral front, Bank, Reality, Capital Goods and FMCG stocks remained in lime light as witnessed most of the buying from these baskets. However, Metal, Consumer Durables, PSU and Pharma contributed to most the selling pressure. Mid Cap and Small Cap stocks also remained out of favor during the trading session.
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 weak as 1395 stocks closed in red while 1134 stocks closed in green and 107 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 47.02 points at 9,471.04 whereas NSE Nifty ended slightly down by 1.20 points at 2,938.70. BSE Mid Caps and Small Caps closed with losses of 16.36 and 21.47 points at 2,820.08 and 3,155.45 respectively. The BSE Sensex touched intraday high of 9,699 and intraday low of 9,402.64.
Gainers from the BSE Sensex pack are HDFC Bank (6.31%), ICICI Bank (2.44%), HDFC (2.33%), BHEL (2.25%), Ranbaxy Lab (1.83%), Bharti Airtel (1.69%), Wipro Ltd (1.36%) and M&M Ltd (1.23%).
Losers from the BSE Sensex pack are JP Associates (6.77%), Hindalco (4.51%), Rel Infra (4.23%), RCom (3.98%), Tata steel (3.63%), Sun Pharma (2.91%) and Tata Motors (2.41%).
On the global markets front the Asian markets which opened before the Indian market, ended up tracking Wall Street gains overnight. The U.S. Treasury announced plans to buy $1 trillion of toxic assets in banks. The better-than-expected existing home sales also helped pushed Wall Street up. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended higher by 12.94, 462.92, 272.77, 42.26 and 22.2 points at 2,338.42, 13,910.34, 8,488.30, 1,706.34 and 1,221.7 respectively.
European markets which opened after the Indian market are trading mixed In Frankfurt the DAX index is trading up by 17.21 points at 4,193.58 while in London FTSE 100 is trading lower by 36.73 points at 3,916.08.
The BSE Bank stocks advanced by (2.18%) or 94.13 points to close at 4,419.67 on hopes that lower interest rates may improve lending growth. Major gainers are HDFC Bank (6.31%), Yes Bank (4.97%), Bank of Baroda (2.81%), ICICI Bank (2.44%) and SBI (1.09%).
The BSE Reality ended up by (0.85%) or 13.39 points at 1,591.07. Gainers are Omaxe Ltd (7.21%), Anant Raj (4.41%), Unitech Ltd (3.94%), Parsvnath (2.22%) and Indiabull Real (1.75%).
The BSE Capital Goods index surged (0.78%) or 46.13 points to close at 5,984.39. Main gainers are Kalpat Power T (6.60%), Siemens Ltd (6.23%), Suzlon Energy (5.43%), Usha Martin (5.42%) and Everest Kanto (1.31%).
The BSE FMCG index gained (0.27%) or 5.39 points to close at 1,967.29. Gainers are Dabur India (1.08%), Nestle Ltd (1.08%), United Spr (0.55%), ITC Ltd (0.49%) and HUL (0.21%).
The BSE Metal index closed with decrease of (2.99%) or 167.28 points at 5,425.27 on profit booking. Scrips that lost are NMDC Ltd (5.27%), Steel Authority (5.22%), Hindalco (4.51%), JSW Steel (4.16%) and Welspan Gujarat (4.02%).
The BSE Consumer Durable index ended lower by (1.45%) or 22.67 points to close at 1,537.22. Gitanjali GE (6.64%), Videocon Ind (3.18%), Titan Ind (2.48%) and Rajesh Export (1.83%) ended in negative territory.
Omaxe jumped 7.21% on launching a new project Omaxe Enternity in Vrindavan in the state of Uttar Pradesh.
M&M Ltd gained 1.23%. According to the company’s January 2009 sales figure, recently launched Mahindra XYLO has sold 1,788 numbers in two weeks, while bookings for the vehicle have crossed the 4,000 mark.
Wipro Ltd ended up by 1.36%. The company got Rs 1,282 crore Employees State Insurance Corporation (ESIC)’s contract to convert its paper-based administrative and operational system into a paperless E-governance system.
Reliance Industries gained 0.82% after reports stated that the company has raised the marketing margin it will charge on selling natural gas from eastern offshore KG-D6 fields to US$0.15 per mmbtu from US$0.12 per mmbtu earlier.
Tata Motors lost 2.41%. The company yesterday (Monday) announced the commercial launch of the Tata Nano, keenly awaited across India since it’s unveiling on January 10, 2008. The Tata Nano is BS-III* compliant and comes with an all-new 2-cylinder aluminum MPFI 624 cc petrol engine mated to a four-speed gear box and will be available in three variants.
Market loses steam at fag end
The market appeared to be heading towards a negative close after a strong bout of profit taking towards the close shaved off nearly 228 points from the day’s high. Starting the day with a huge gap of 126 points at 9550, Sensex witnessed strong optimism till afternoon. Sustained buying in several counters held the market firm above 9600 levels in the first half of the trading session. In afternoon session, the index notched up further gains to touch the day's high of 9699. However, the market slid towards the close, as weakness in select heavyweights, metal, consumer durables and public sector units stocks dragged the index to an intra-day low of 9403, down 21 points for the day. Sensex however ended the session with marginal gains of 47 points at 9471, while the Nifty lost a point to close at 2939.
The market breadth was negative. Of the 2,636 stocks that traded on the BSE, 1,395 stocks declined, 1,134 stocks advanced and 107 stocks ended unchanged. Most of the 13 sectoral indices on BSE remained marginally up or below their yesterday’s close. BSE Metal dropped 2.99% followed by BSE CD (down 1.45%) and BSE PSU (down 0.81%). BSE Bankex was the only one, which posted perceptible (2.18%) gains for the day.
Among Sensex stocks, Bankex major HDFC Bank was the leading gainer, soaring 6.31% at Rs940.50 for the day. ICICI Bank advanced 2.44% at Rs355.10, HDFC jumped 2.33% at Rs1,564.45, Bharat Heavy Electricals shot up by 2.25% at Rs1,444.35, Ranbaxy Laboratories added 1.83% at Rs164, while Bharti Airtel, Wipro, Mahindra & Mahindra, State Bank of India and Reliance Industries closed with marginal gains. Among laggards, JP Associates tumbled 6.77% at Rs78.55, Hindalco Industries shed 4.61% at Rs49.70 and Reliance Infrastructure declined by 4.23% at Rs508.15, whereas Reliance Communications, Tata Steel, Sun Pharmaceutical Industries, Tata Motors and ONGC lost 2-3% each.
Over 2.12 crore shares of Unitech changed hands on BSE followed by Suzlon Energy (1.56 crore shares), Reliance Natural Resources (1.52 crore shares), Cals Refineries (82.92 lakh shares) and Satyam Computer Services (68 lakh shares).
Sensex sheds 225 points from the day's high
The BSE Sensex posted small gains and S&P CNX Nifty ended flat as the market reversed most of its earlier strong intraday gains as European stocks gave up early gains and US index futures. Political uncertainty ahead of parliamentary elections also prompted traders to lock in gains after a recent solid surge in share prices. Banking and IT stocks pared intraday gains. Index heavyweights Reliance Industries and Larsen & Toubro also came off the day's highs. Metal stocks slipped. The BSE 30-share Sensex rose 47.02 points or 0.5%, off close to 225 points from the day's high.
The market breadth, indicating the overall health of the market, was negative. The 50-share S&P CNX Nifty fell below the psychological 3,000 mark which it had breached in intraday trade. Nifty today hit the 3,000 level for the first time since 7 January 2009.
The market extended gains in early afternoon trade after a firm opening triggered by an upbeat sentiment across global markets following the US government's plan to mop up toxic assets from banks' balance sheet. The BSE Sensex hit its highest level in more than a month. The market soon cut losses. It recovered in afternoon trade. The market lost ground later amid volatile trade.
Volatility on the bourses may remain high in the next two days ahead of the expiry of March 2009 derivatives on Thursday, 26 March 2009.
From a three-year closing low of 8,160.40 on 9 March 2009, the BSE Sensex has risen 1,310.64 points or 16.06%. The barometer index jumped 457.34 points, or 5.1%, to 9,424.02 on Monday, 23 March 2009, its biggest one-day rise in percentage terms since early December 2008.
Prime Minister Manmohan Singh today said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect.
The fall in headline inflation to a record low has raised expectations of further easing of the monetary policy by RBI to boost demand in the economy. Inflation based on the wholesale price index (WPI) rose 0.44% in the year through 7 March 2009, a record low for the current series, data released by the government during trading hours on Thursday, 19 March 2009, showed. The rate of growth in inflation was much lower than previous week's annual rise of 2.43%.
Retail inflation is, however, ruling firm even as the whole sale price inflation has touched a record low. Retail inflation as measured by the Consumer Price Index for farm labourer (CPI-AL) and rural labourers (CPI-RL) eased to 10.79% in February 2009, a marginal dip from 11.62% and 11.35% respectively in January 2009. CPI-AL and CPI-RL were at 6.38% and 6.11% in corresponding period last year.
Annual inflation for food articles remains high even though it has eased from the 10 year high of 11.64% witnessed in first week of January 2009. Inflation for food articles stood at 7.35% for first week of March 2009 with double-digit price rise for many items including sugar and gur, pulses and cereals. At the time of announcing a reduction in key short-term interest rates, the RBI said early this month that though consumer price inflation has remained at elevated level due to increase in primary articles prices, it is expected to decline with a lag effect due to sharp fall in the wholesale price inflation.
Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.
Raising funds could become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into practice from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.
Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.
Meanwhile, foreign institutional investors are now in buying mode which follows easing of FII selling vigour in the past few days. FIIs bought shares worth a net Rs 1182.20 crore in six trading sessions from 13 March 2009 to 20 March 2009.
Foreign funds can take solace in the recent sharp rebound in the rupee against the dollar. However, the currency has been volatile. The partially convertible rupee was at 50.70 per dollar, weaker than Monday's close of 50.46/47. A recent sharp slide in the rupee to a record low had resulted in a depreciation in the value of FIIs equity portfolio to the extent of the fall in rupee. The rupee hit a record low beyond 52 per dollar early this month.
Domestic institutional investors have been absorbing heavy selling by foreign funds in calendar year 2009.
Meanwhile, a good news for the Asian emerging markets is that the region accounted for the bulk of the healthy inflow into emerging market equities funds during the week ended 18 March 2009, according to the latest data from fund tracker EPFR Global. Emerging market equities, among the riskier asset classes, saw a healthy net inflow of $350.3 million in the latest week. Funds focused on Asia ex-Japan made up the bulk of that overall amount, with a net inflow of $409.2 million.
However, the upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls.
But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad today announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.
The Congress, meanwhile, has reported sealed a seat-sharing pact with the Nationalist Congress Party (NCP) in the populous Maharashtra state. Relations between the two parties have been prickly as the NCP negotiated with opposition parties to undercut Congress and boost its leader's prime ministerial ambitions. Congress will stand for 26 seats in the state and the NCP for 22. The allies are weighing up their options for a similar deal outside the state.
The Congress party today said it would extend interest relief to farmers and build on the national job guarantee scheme. Releasing the party manifesto for the election, the Congress party said it would maintain government control over state-run firms in the manufacturing and finance sectors.
Meanwhile, after seven successive quarters of decline, the Federation of Indian Chambers of Commerce and Industry's (Ficci's) overall business confidence index has increased in the October-December 2008 with less number of respondents saying economic situation has worsened. The economic and industrial performance may have reached a trough and it would improve from now onwards, found the Ficci's Business Confidence Survey.
The overall Business Confidence Index for the surveyed quarter, which has moved to 44 from 37.8 in the second quarter of 2008-09, had seen a significant deterioration at three levels - economy, industry and organisation.
European shares gave up gains to turn negative early on Tuesday, breaking a three-day winning run after euro zone and UK macro data showed job losses and higher inflation, giving a bleak picture of European economy's state. Key benchmark indices in France, Germany were up by between 0.38% to 0.49%. UK's FTSE 100 fell 1.02%.
Asian equities gained today, 24 March 2009 tracking overnight solid 7% surge in US stocks. The key benchmark indices in Japan, Hong Kong, China, Singapore, South Korea, Taiwan rose by between 0.56% to 3.32%.
But trading in US index futures indicated the Dow could fall 52 points at the opening bell on Tuesday, 24 March 2009.
US stocks surged on Monday, 23 March 2009, with the Dow and the S&P 500 posting their best one-day advance in nearly five months, after the Obama administration unveiled a long-awaited plan to purge toxic assets from bank balance sheets. A report showing a rebound in existing-home sales in February 2009 also added to the positive tone.
The Dow Jones Industrial Average gained 497.48 points, or 6.84%, to 7,775.86. The Standard & Poor's 500 Index rallied 54.37 points, or 7.07%, to 822.91 and the Nasdaq Composite index surged 98.50 points, or 6.76%, to 1,555.77.
The US government is planning to loan private firms money to buy up to $1 trillion of bad assets, then share in the profit or loss when they are sold at a later date. The plan is two-pronged. One part will focus on purchasing toxic securities, the other on purchasing bad loans.
The BSE 30-share Sensex was up 47.02 points or 0.5%, to 9,471.04, its highest close since 13 February 2009. At the day's high of 9,699, the Sensex rose 274.98 points in early afternoon trade. At the day's low of 9,402.64 Sensex lost 21.38 points in late trade.
The S&P CNX Nifty was down 1.20 points or 0.04% to 2,938.70. It came off a high of 3,017.40.
The market breadth, indicating the overall health of the market, was negative on BSE with 1,143 shares advancing as compared with 1,413 that declined. A total of 57 shares remained unchanged. The breadth was strong earlier in the day.
The BSE clocked a turnover of Rs 4,245 crore, higher than Rs 3,718.74 crore on Monday, 23 March 2009.
Nifty March 2009 futures were at 2933.90, at a discount of 4.80 points as compared to the spot closing of 2938.70. Turnover in NSE's futures & options (F&O) segment surged to Rs 78,270.59 crore from Rs 63,299.50 crore on Monday, 23 March 2009.
The BSE Mid-Cap index was down 0.58% and BSE Small-Cap index fell 0.68%. Both the indices underperformed the Sensex.
The BSE Bankex (up 2.18%), the BSE Realty index (up 0.85%), the BSE Capital Goods index (up 0.78%) outperformed the Sensex.
The BSE Metal index (down 2.99%), the BSE Consumer Durables index (down 1.45%), the BSE PSU index (down 0.81%), the BSE Healthcare index (down 0.62%), the BSE IT index (down 0.38%), the BSE Power index (down 0.28%), the BSE TECk index (down 0.15%), the BSE Oil & Gas index (down 0.04%), the BSE Auto index (up 0.05%), the BSE FMCG index (up 0.27%), underperfomed the Sensex.
From the 30 share Sensex pack, 15 stocks rose while rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 0.82% to Rs 1,451.65 ahead of production of gas from KG basin, off the east coast. But the stock came off the day's high of Rs 1,472. Petroleum Secretary R.S. Pandey today said natural gas output from Reliance Industries' deep-sea fields in the Krishna Godavari Basin is expected to start in early April 2009, slightly later than expected.
RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.
Cairn India fell 2.19% on fall in crude oil prices while India's largest oil exploration firm by sales ONGC declined 2.01%. Crude oil fell from the highest level in almost four months on speculation that US stockpiles increased because of lower demand. A gain in the dollar also reduced the appeal of commodities to investors. Crude oil for May delivery fell as much as 68 cents, or 1.3%, to $53.12 a barrel, on the New York Mercantile Exchange.
Fall in crude oil prices would result in lower realizations from crude sales for the oil exploration firm.
Meanwhile, Petroleum Secretary Pandey said Cairn India is expected to start producing crude oil from its fields in the desert state of Rajasthan in a month, and will sell a part of the output to state refiners Indian Oil Corporation and Mangalore Refinery and Petrochemicals.
Shares of oil marketing companies rose after the government issued oil bonds worth Rs 10,000 crore to PSZhe them to compensate for under-recoveries on the sale of petroleum products at a controlled price during the current financial year. BPCL, HPCL and Indian Oil Corporation rose by between 1.31% to 5.32%.
Indian Oil Corporation has been issued oil bonds worth Rs 5,817.27 crore, while Bharat Petroleum Corporation has been issued bonds worth Rs 2,144.32 crore. Hindustan Petroleum Corporation has got bonds worth Rs 2,038.41 crore.
Metal stocks fell on decline in metal prices on London Metal Exchange. Steel Authority of India, Hindustan Zinc, Tata Steel, National Aluminum Company and Hindalco Industries fell by between 1.7% to 5.22%.
Banking shares rose on hopes lower interest rates may boost lending growth. However, stocks pared gains. India's largest private sector bank by net profit ICICI Bank rose 2.44% to Rs 355.10. However, it came off the day's high of Rs 373.30. Its American depository receipts (ADR) surged 15.95% on Monday, 23 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.
India's second largest private sector bank by operating income HDFC Bank rose 6.31% to Rs 940.50. The stock came off the day's high of Rs 973.90. Its ADR jumped 23.42% on Monday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.
India's largest bank in terms of assets and branch network State Bank of India rose 1.09% to Rs 1,034.65. The stock came off the day's high of Rs 1,088. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.
India's biggest dedicated housing finance firm by operating income HDFC rose 2.33% to Rs 1,564.45. The stock came off the day's high of Rs 1,595.
Bond yields rebounded off early lows on Tuesday and matched the previous session's one-week high as investors fretted about a wall of supplies in coming weeks. By 10:05 IST, the yield on the most traded 6.05% 2019 bond was at 6.68%, three basis points above Monday's close of 6.65%, and off an early low of 6.57%.
The benchmark yield has risen 182 basis points from a lifetime low of 4.86% hit in early January 2009, despite the central bank's cumulative 150 basis points of rate cuts since the start of 2009. Bond yields have soared after the government announced a late rush of borrowings totaling Rs 91000 crore ($18.1 billion) since early February 2009, more than doubling the borrowing plan for 2008/09 to Rs 306000 crore. It plans to borrow a record Rs 362000 crore in the 2009/10 fiscal year.
It may be recalled that a solid surge in bond prices (bond prices rise when yields fall) had boosted treasury profits of banks in Q3 December 2008.
Outsourcing focussed IT stocks pared gains as fears a weak global economy would cut the amount firms spent on technology. India's largest software services exporter by sales TCS rose 0.3% to Rs 521.35. The stock came off the day's high of Rs 532.80. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.
India's fifth largest IT major by sales HCL Technologies rose 0.58% to Rs 104.35 off the day's high of Rs 105.45. India's third largest software services exporter, Wipro gained 1.36% to Rs 242.30. The stock came off the day's high of Rs 248.95 .Its ADR 16.52% on Monday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).
India's second largest software services exporter Infosys Technologies fell 0.58% to 1,322.95. The stock came off the day's high of Rs 1,359.30. Its ADR gained 6.68% on Monday. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.
The recent high volatility in the rupee also does not augur well for IT firms as the sector derives a lion's share of revenue from exports. A stronger rupee affects operating margins of IT firms negatively as they earn most of their revenues from exports.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. Housing Development & Infrastructure, Unitech and Indiabulls Real Estate rose by between 0.59% to 3.94%. But India's largest realty major by sales DLF fell 0.66%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Some FMCG stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Nestle India, Dabur India, REI Agro, United Spirits rose by between 0.55% to 5.14%. India's largest FMCG firm by sales Hindustan Unilever rose 0.21%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008. While India's largest cigarette maker by sales ITC rose 0.49%.
India's largest drug maker by sales Ranbaxy Laboratories rose 1.83% extending gains for the second straight day after company said drug regulators in the UK and Australia had issued "good manufacturing practice" certificates for its Paonta Sahib facility in India. In February 2009, the US Food and Drug Administration halted reviews of drug applications from Paonta Sahib plant saying it had falsified data.
Other healthcare stocks, Cadila HealthCare, Cipla, Biocon, Pfizer, Lupin, rose by between 0.39% to 2.95%.
India's largest commercial vehicle maker by sales Tata Motors fell 2.41% to Rs 162.05. The stock came off the day's high of Rs 171.95 after the world's cheapest car Tata Nano was unveiled in Mumbai by Tata Group Chairman Ratan Tata on Monday 23 March 2009. The Tata Nano was launched in three models - Base, CX and LX. The booking for Tata Nano will be held between 9 April 2009 and 25 April 2009. The first set of Tata Nano will be delivered in the first week of July 2009. Within 60 days of the closure of bookings, Tata Motors will process and announce the allotment of 1,00,000 cars in the first phase of deliveries, through a computerised random selection procedure.
India's largest tractor maker by sales Mahindra & Mahindra gained 1.23% on reports the company is eyeing acquisition of Birmingham-based ailing vanmaker LDV, which is struggling to keep afloat amid the economic downturn.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 0.53% to Rs 607.90. The stock came off the day's high of Rs 628.70. As per recent reports L&T and Grasim Industries are on the verge of settling their 7-year old legal dispute over Grasim`s 0.62% stake in L&T and the latter`s 11.49% stake in Ultratech, the Birla group cement firm. Grasim Industries and Ultratech Cement are Aditya Birla group companies. Other capital goods stocks, Bharat Heavy Electricals, Punj Lloyd, Thermax, ABB rose by between 0.33% to 2.25%.
Unitech clocked the highest volume of 2.12 crore shares on BSE. Suzlon Energy (1.56 crore shares), Reliance Natural Resources (1.52 crore shares), Cals Refnerirs (82.92 lakh shares) and Satyam Computer Services (68.90 lakh shares) were the other volume toppers in that order.
Akruti City clocked the highest turnover of Rs 296.38 crore on BSE. Reliance Industries (Rs 287.63 crore), Reliance Capital (Rs 248.76 crore), ICICI Bank (Rs 195.69 crore) and State Bank of India (Rs 154.62 crore) were the other turnover toppers in that order.
Pre Session Commentary - March 24 2009
Today domestic markets are likely to open positive as the US Treasury plan of $ 1 trillion has rocked the markets across the world. The plan will be a Public Private Investment Program that will use US Treasury Capital and financing from the Federal Reserve as well as money from private investors to create a fund that will buy the so-called "toxic assets" which is preventing banks from providing more liquidity to the lending markets. The domestic markets have also gained enough on yesterday’s trade and therefore today the intensity of the trend may not be that strong. The other Asian markets have once again opened with green numbers and therefore we anticipate a positive trend in today’s trade.
On Monday, the domestic markets opened with a positive gap and maintained its trend to close with huge gain. The markets were on the high spirits ever since the opening on the back of positive cues other foreign markets. Asian markets had phenomenal rally as the US government is launching a $ 1 trillion investment program to buy the legacy mortgage assets. The rally was so intense of its kind in the year 2009. Sectors like Bankex, Oil & Gas, Metal, PSU and Power witnessed exemplary buying as they gained 6.66%, 6.40%, 6.31%, 4.21% and 3.66% respectively. During the session we expect the markets to be trading positive with mild volatility due to profit booking pressures.
The BSE Sensex closed with a gain of 457.34 points at 9,424.02 and NSE Nifty ended high by 132.85 points at 2,939.90. BSE Mid Caps and BSE Small Caps ended with gains of 75.38 points and 62.54 points at 2,836.44 and 3,176.92 respectively. The BSE Sensex touched intraday high of 9,454.69 and intraday low of 9,040.30.
On Monday, the US Markets surged a staggering high on the back of the $ 1 trillion treasury plan to form pubic private investment fund to buy the toxic assets of banks. The fund will be used to buy $500 billion to $1000 billion in legacy loans and securities. To encourage participation from the private sector, the government is taking on much of the risk and offering subsidies. On the other hand the existing home sales in February rose 5.1% month-over-month to a seasonally adjusted annual rate of 4.72 million. Economists expected a 0.9% month-over-month drop to 4.45 million. A substantial portion of the sales were from first time homebuyers and distressed properties.
The Dow Jones Industrial Average (DJIA) closed high by 497.48 points at 7,775.86, the NASDAQ Composite (RIXF) index gained 98.50 points to close at 1,555.77 and the S&P 500 (SPX) gained by 54.38 points to close at 822.92.
Today major stock markets in Asia are trading with phenomenal gains. Hang Seng is trading with gains of 171.13 points at 13,618.55 followed by Shanghai composite that is also up by 16.17 points at 2,341..65. Japan''s Nikkei is up by 121 points at 8,336.53, Strait Times is up by 28.58 points at 1,692.66 and Seoul Composite by 11.42 points at 1,210.92.
Indian ADRs ended up. In technology sector, Patni Computers ended higher by 6.98% along with Infosys that ended up by 6.68%. Further, Wipro gained 16.52% and Satyam closed up by 4.49%. In banking sector ICICI Bank and HDFC Bank gained 15.95% and 23.42% respectively. In telecommunication sector, Tata Communication advanced by 12.65% along with MTNL by 16.45%. Further, Sterlite Industries increased by 10.34%.
The FIIs on Monday stood as net buyer in equity and net seller in debt. Gross equity purchased stood at Rs 1,277.40 Crore and gross debt purchased stood at Rs 171.20 Crore, while the gross equity sold stood at Rs 1,228 Crore and gross debt sold stood at Rs. 328.50 Crore. Therefore, the net investment of equity and debt reported were Rs 49.40 Crore and Rs (157.30) Crore respectively.
On Monday, the Indian rupee closed at 50.46/47, 0.4% stronger than its previous close 50.66/68. Rupee gained due to phenomenal rally in the stock markets raising expectations of dollar inflow.
On BSE, total number of shares traded were 30.22 Crore and total turnover stood at Rs 3,718.74 Crore. On NSE, total number of shares traded was 63.56 Crore and total turnover was Rs 10,295.48 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with 27542100, Unitech with 25235768 shares, ICICI Bank with 17342680 shares, SAIL with 14943657 shares followed by Hindalco with 14698153 shares.
On NSE Future and Options, total number of contracts traded in index futures was 1058880 with a total turnover of Rs 14,817.97 Crore. Along with this total number of contracts traded in stock futures were 625930 with a total turnover of Rs 18,312.54 Crore. Total numbers of contracts for index options were 1943318 with a total turnover of Rs 28,114.11 Crore and total numbers of contracts for stock options were 64538 and notional turnover was Rs 2,054.88 Crore.
Today, Nifty would have a support at 2,962 and resistance at 2,998 and BSE Sensex has support at 9,512 and resistance at 9,635.
Indices seen extending gains on US bank rescue plan
Key benchmark indices are likely to extend yesterday's, 23 March 2009, over 5% surge buoyed by the upbeat sentiment across global markets following the US government's plan to mop up toxic assets from banks' balance sheet. The SGX Nifty futures for March 2009 series advanced 25.50 points in Singapore.
However volatility may remain high ahead of the expiry of March 2009 derivatives contracts for March 2009 series on Thursday, 26 March 2009.
Meanwhile, after seven successive quarters of decline, the Federation of Indian Chambers of Commerce and Industry's (Ficci's) overall business confidence index has increased in the October–December 2008 with less number of respondents saying economic situation has worsened. The economic and industrial performance may have reached a trough and it would improve from now onwards, found the Ficci's Business Confidence Survey.
The overall Business Confidence Index for the surveyed quarter, which has moved to 44 from 37.8 in the second quarter of 2008-09, had seen a significant deterioration at three levels — economy, industry and organisation.
Asian equities gained today, 24 March 2009 tracking Wall Street gains. The Nikkei climbed 1.95%, Hang Seng advanced 1.3% and Straits Times rose 1.4%.
US stocks surged on Monday, 23 March 2009, with the Dow and the S&P 500 posting their best one-day advance in nearly five months, after the Obama administration unveiled a long-awaited plan to purge toxic assets from bank balance sheets. A report showing a rebound in existing-home sales in February 2009 also added to the positive tone.
The Dow Jones Industrial Average gained 497.48 points, or 6.84%, to 7,775.86. The Standard & Poor's 500 Index rallied 54.37 points, or 7.07%, to 822.91 and the Nasdaq Composite index surged 98.50 points, or 6.76%, to 1,555.77.
The US government is planning to loan private private firms money to buy up to $1 trillion of bad assets, then share in the profit or loss when they are sold at a later date. The plan is two-pronged. One part will focus on purchasing toxic securities, the other on purchasing bad loans.
Back home, key benchmark indices jumped after the US' latest attempt to revive the economy and stabilize its financial system buoyed markets across Asia and Europe. The BSE 30-share Sensex jumped 457.34 points, or 5.1%, to 9,424.02, its highest closing since 13 February 2009 and its biggest one-day rise in percentage terms since early December 2008. The S&P CNX Nifty gained 133.85 points or 4.73% at 2939.90.
From a three-year closing low of 8,160.40 on 9 March 2009, the BSE Sensex has risen 1,263.62 points or 15.48%.
According to provisional data on NSE, Foreign institutional investors (FIIs) were net buyers worth Rs 376.23 crore while mutual funds bought shares worth Rs 376.51 crore on Monday, 23 March 2009.
Institutional Activity
FIIs: Foreign institutional investors (FIIs) sold Rs 2276.20 crore more shares than they bought from 2 to 12 March 2009. However, daily net sales, which ranged from Rs 450 crore to Rs 600 crore in the four trading sessions from 2 to 5 March 2009, eased substantially in the next three trading sessions from 6 to 12 March 2009. In fact, FIIs were net buyers on 9 March 2009, albeit marginally, with an inflow of Rs 12 crore.
DIIs: Domestic institutional investors (DIIs) bought Rs 2674.06 crore more shares than they sold from 2 to 13 March 2009. DIIs have been absorbing heavy sales by foreign funds in the past one year. However, within DIIs, mutual funds were in a selling mode. Mutual funds sold Rs 621.90 crore more shares than they bought from 2 March 2009 to 12 March 2009.
Gains may continue
The market is likely to see further action on the back of a firm US markets and over 1-2% gains in majority of the Asian indices in the prevailing trades. Surging FIIs fund inflows coupled with firm economy outlook also may help the market advance further. Among the key local indices, the Nifty has a strong support between 2900-2850 range, while on the upside the index could test higher level in the 3000-3050 range. The Sensex has a likely support at 9275 and may face resistance at 9600.
The Dow Jones soared about 500 points to a close on Monday, posting its biggest gain since November, after Treasury's plan to buy up billions in bad bank assets and a better-than-expected existing home sales report raised hopes that the economy is stabilizing. While the Nasdaq surged by 99 points at 1556 and Dowjones gained 497 points at 7776.
All the Indian ADRs witnessed strong buying support on US bourses. HDFC Bank notched up significant gains and soared over 23% . The other Indian floats, Wipro, MTNL, ICICI Bank, Tata Motors and VSNL surged over 12-16% each. while Infosys, Satyam, Dr Reddy's, Rediff and Patni Computers were up around 3-7% each.
Crude oil prices gained marginally. The US light crude oil for April series advanced by $1.73 at $53.80 a barrel. In the commodity space, the Comex gold for April delivery declined by $3.70 to settle at $952.50 an ounce
Asian stocks open in green
Asian stocks gained, led by finance and energy stocks, after a US Treasury plan to remove toxic assets from banks triggered a global rally in equities.
Toyota Motor rose more than 3.5% in Tokyo after the yen weakened against the dollar.
Japanese benchmark index Nikkei advanced 201.66 points, or 2.45%, to trade at 8,417.19.
Hong Kong`s Hang Seng index gained 325.75 points, or 2.42%, to trade at 13,773.17.
China`s Shanghai Composite climbed 33.82 points, or 1.45%, to trade at 2,359.30.
Taiwan`s Taiex index went up 92.90 points, or 1.81%, to trade at 5,217.08.
South Korea`s Kospi index rose 12.11 points, or 1.01%, to trade at 1,211.61.
Singapore`s Straits Times increased 25.12 points, or 1.51%, to trade at 1,689.20. (7.48 a.m., IST).
Vijaya Bank
We recommend a buy on Vijaya Bank stock from a short-term trading perspective. It is apparent from the charts of Vijaya Bank that it was on medium-term downtrend from its January high of Rs 39.3 to its March low of Rs 20. The stock had lost almost 50 per cent of its value from this peak. However, the stock found support in the range of Rs 20 to Rs 20.50 recently and reversed direction. The stock has been on a short-term uptrend from this support zone. The stock conclusively penetrated its medium-term down trendline by gaining 3 per cent on March 23, confirming end of the medium-term downtrend. The daily relative strength index has entered the neutral region from the bearish zone. We notice a buy signal in daily moving average convergence and divergence indicator. From a short-term perspective we are bullish on the stock. We expect its short-term uptrend to continue until it hits our price target of Rs 26 in the forthcoming sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 22.
via BL
Daily News Roundup - March 24 2009
The Tata Group is likely to consolidate the varied beverages businesses under a single entity; may also merge Mount Everest Mineral Water with Tata Tea. (ET)
TCS plans to hire 2,000 people for the Passport Seva Project, which is ready for a pilot launch in June this year. (FE)
GE Hitachi Nuclear Energy has signed preliminary agreements with Nuclear Power Corporation of India Ltd and BHEL to build reactors in India. (BL)
Tata Motors launched its much awaited Rs100,000 car Nano. (BL)
Tata Motors plans to re-design the Nano for the US and launch it in the next three years. (BL)
Reliance Industries has raised the marketing margin it will charge on selling natural gas from eastern offshore KG-D6 fields to US$0.15 per mmbtu from US$0.12 per mmBtu earlier. (BS)
The Government has issued oil bonds amounting to Rs100bn to HPCL, BPCL and IOC. (BL)
The Government-appointed board of Satyam is understood to have short-listed six bidders, including Spice Group, L&T and Tech Mahindra. (BS)
The short-listed bidders for Satyam may be asked to submit their financial bids around April 9. (BL)
The Spice Group is having second thoughts and planning to re-evaluate its interest in the Satyam bid. (ET)
Drug regulators of the UK and Australia have approved Ranbaxy Laboratories’ Paonta Sahib manufacturing facility. (BL)
UB Group is planning to enter the tourism industry, by promoting its Four Seasons winery at Baramati in Maharashtra as a lifestyle destination. (BS)
Punjab National Bank’s credit growth is likely to slow down to 20% for the next fiscal, according to its CMD, Dr K.C. Chakrabarty. (BL)
Credit Analysis and Research (CARE) has assigned the highest ratings of AAA and PR1 for Tech Mahindra’s short-term and long-term borrowing programs respectively. (ET)
BSNL has decided to lease out towers in semi-urban areas to other telecom companies. (FE)
Nigeria has short-listed GAIL India to develop the African nation’s natural gas reserves. (FE)
SBI to provide seven year term for paying Nano’s loan. (FE)
A consortium of 11 banks led by IDBI Bank has offered to extend structured funding facilities worth Rs38.5bn to BGR Energy to execute Rajasthan Rajya Vidyut Utpadan Nigam Ltd’s 1,200mw Kalisindh Thermal Power Project at Jhalawar. (FE)
NDTV is ready for a demerger of its news and entertainment business. (BS)
Share Microfin Ltd has entered into a rated loan assignment transaction of Rs493mn with Yes Bank. (BL)
Hikal Ltd’s board to meet this week to consider the merger of its subsidiary Hikal Pharmaceuticals with itself. (FE)
Subhash Projects has bagged an order worth Rs4.9bn from a Mumbai suburban municipal corporation for an underground sewerage project. (BS)
Srei Infrastructure Finance Ltd has signed a letter of intent with the Netherlands-based FMO for external commercial borrowing of US$100mn. (BL)
Bosch Ltd plans to open 230 multibrand Bosch Car Service centres by 2010 across the country, taking the total number to 500. (BS)
Highway developers are looking at selling small stakes in various central road projects to raise funds, as banks deny loans for high–risk BOT projects. (ET)
National Highway Builders Federation NHBF has alleged that cement manufacturers have been consistently increasing prices in the last few months instead of passing on the duty cuts to customers. (BL)
The Indian Sugar Mills Association has opposed duty-free import of white sugar into the country. (BL)
Whole-sale sugar prices have fallen below production cost for the first time in India. (ET)
India and Association of South-East Asian Nations are likely to reschedule the June 1 deadline for eliminating duties on more than 4,000 products traded between the tow sides. (ET)
The prices of IT services in outsourcing are anticipated to shrink by 5-20% globally during 2009 and 2010. (FE)
A nano change in sentiment!
A nano change in sentiment!
The more difficult the problem, the greater the challenge in working it out.
After an arduous six-year drive, the Tata Nano has finally found some stability and will hopefully roll on smoothly. Ratan Tata’s engineering marvel could potentially turn out to be a game-changing product. However, some teething troubles are a given. Whether it is a boon or a bane for Tata Motors only time will tell.
The bulls too are driving ahead as markets globally seem to be on overdrive. The latest catalyst powering the global rally is the US government’s plan to buy banks’ soured assets and get credit flowing again. The news was out early on Monday morning, sending stocks in Asia and Europe sharply higher. The Wall Street followed the global trend with the key indices there up 6-7%.
The fact that the US news was already discounted yesterday leaves limited scope for the Indian market to react to the Wall Street rally. Still, we will see the key indices building on the recent momentum. Banking shares are likely to be among the leading gainers.
Remember, except for the current half-hearted sentiment, things haven’t changed dramatically. The upside appears limited. Check your fuel before planning a long drive.
FIIs were net buyers in the cash segment on Monday at Rs3.76bn while the local institutions too poured in a similar amount. In the F&O segment, the foreign funds were net buyers at Rs5.02bn. On Friday, FIIs were net buyers of Rs494mn. Mutual Funds were net sellers of Rs1.6bn on the same day.
US stocks soared on Monday, spurred on by the Treasury Department's proposed new plan that will enable banks to get rid of their rotten assets and revive the comatose credit markets. An encouraging report on existing home sales added fuel to the fire.
The Dow Jones Industrial Average surged 497 points, its biggest one-day point gain since Nov. 21. The gain was equivalent to 6.8%, which was the biggest one-day percentage gain since Oct. 28. The blue-chip barometer ended at 7,775.86.
The S&P 500 index shot up 54 points, its best one-day point gain since Nov. 13. The percentage gain of 7.1% was the best since Oct. 28. It closed at 822.92.
The Nasdaq Composite index jumped 99 points or 6.8% to 1,555.77 for the best one-day point and percentage gain since Oct. 2.
US stocks have gained for the past two weeks, notwithstanding the reversals on Thursday and Friday. But that retreat gave investors an opportunity to jump back in Monday, with bank shares leading the advance.
Since tumbling to 12-year lows two weeks ago, the S&P 500 has now rallied 18% as of Monday's close, blasting through 800, a key resistance level that analysts have been watching.
Treasury rolled out its long-awaited plan to purge bank balance sheets of as much as $1 trillion in sour assets that are limiting lending and prolonging the recession. The government will commit $75 billion to $100 billion of taxpayer money to launch the "Public-Private Investment Program," which seeks to create a market for that bad debt.
The government plans to run auctions between the banks looking to unload the bad assets and the investors looking to buy them. The Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) will be involved.
Last week, the Federal Reserve announced it was pumping another trillion into the economy to try to get credit flowing.
Existing home sales rose 5.1% in February, according to the National Association of Realtors. Sales rose at a seasonally-adjusted 4.72 million unit annual rate versus a 4.49 million unit annual rate in January. Economists had expected sales to dip to a 4.45 million unit rate.
Suncor Energy, Canada's No. 2 oil company, said that it will buy rival Petro-Canada for $14.86 billion to create the country's biggest energy company. Suncor shares lost 1.8% and Petro shares gained 23%.
In other deal news, an Abu Dhabi fund, Aabar Investments, bought a 9.1% stake in German carmaker Daimler in a $2.67 billion deal announced late Sunday.
Treasury prices dipped, raising the yield on the benchmark 10-year note to 2.64%, up from 2.63% late on Friday.
Lending rates were little changed. The 3-month Libor rate held steady at 1.22%, unchanged from late Friday, while the overnight Libor rate rose to 0.29% from 0.28% Friday. Libor is a bank-to-bank lending rate.
In currency trading, the dollar gained versus the euro and the yen.
US light crude oil for May delivery gained $1.73 to settle at $53.80 a barrel on the New York Mercantile Exchange.
COMEX gold for May delivery fell $3.60 to settle at 953.80 an ounce.
Across the Atlantic, European stocks continued last week's advance. The market closed near the day's highs. The pan-European Dow Jones Stoxx 600 index rose 3% to 177.73.
The UK's. FTSE 100 rose 2.9% to 3,952.81, while Germany's DAX 30 added 2.7% to 4,176.37, and the French CAC 40 gained 2.8% to 2,869.57.
Heading into Monday's session, the FTSE 100 was up 8.8%, the DAX 30 had gained 11% and the CAC 40 had advanced 8.2% over a two-week period.
Indian market ended with stellar gains on Monday with huge turnover. Exchanges recorded its highest turnover ~72,000cr since September 2008. After a bright start, key indices gained momentum as the day progressed.
Unabated buying in the banking, oil & gas and metals stocks lifted the BSE Sensex and the NSE Nifty t close above the 9,400 and 2900 levels respectively.
Finally, the BSE Sensex surged 457 points to close at 9,424 and the NSE Nifty surged 132 at 2,939.
Among the 30-components of Sensex, 29 stocks ended in positive terrain and only DLF ended in the red. Ranbaxy, Tata Steel, Hindalco, HDFC, Reliance Infra, Reliance Industries and ICICI Bank were among the top gainers.
Among the BSE Sectoral indices BSE Bankex index was the top gainer, the index surged 7%. Among the other major gainers were BSE Oil & Gas index (up 7%), BSE Metals index (up 6.5%) and BSE PSU index (up 4.5%).
Market breath was positive, 1,613 stocks advanced against 920 declines, while, 109 stocks remained unchanged.
Shares of Tata Motors surged over 3% to Rs166 after hitting an intra-day high of Rs173 and a low of Rs164 and recorded volumes of over 2.7mn shares on BSE.
The Nano would come in three versions -- standard and two deluxe models with air conditioning.
After the launch in Mumbai, Nano would be displayed at the company's dealerships from the first week of April, while the bookings would start from the following week.
Shares of Infosys surged by over 2.5% to Rs1330 after reports stated that the company may bag IT project from government which would run on transaction based pricing model. The scrip touched an intra-day high of Rs1340 and a low of Rs1300 and recorded volumes of over 0.15mn shares on BSE.
Shares of Sun Pharma advanced by 4% to Rs1082 after reports stated that the company would extend the offer to acquire the remaining stake in Taro to April 3. The scrip touched an intra-day high of Rs1091 and a low of Rs1029 and recorded volumes of over 21,000 shares on BSE.
BGR Energy Systems signed up credit lines to fund its working capital requirements for execution of EPC contract for 2 x 600 MW Thermal Power Project at Kalisindh of Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL).
The Company has estimated its fund based and non fund based working capital facilities at Rs38.5bn and mandated IDBI Bank Ltd to arrange the financing facilities.
Shares of BGR surged by 5% to Rs128 after hitting an intra-day high of Rs130 and a low of Rs118 and recorded volumes of over 0.15mn shares on BSE.
The board of directors of Hikal Ltd would meet on March 25, 2009 for considering a proposal for merger of Hikal Pharmaceuticals Ltd, a wholly owned subsidiary of the Company, with itself pursuant to a Scheme of Arrangement and all matters related and incidental thereto.
Shares of Hikal surged by over 7% to Rs169 after hitting an intra-day high of Rs178 and a low of Rs157 and recorded volumes of over 6,000 shares on BSE.
Shares of Subhash Projects surged by over 14% to Rs53 after hitting an intra-day high of Rs54.9 and a low of Rs47 and recorded volumes of over 4mn shares on BSE.
Bulls would look to carry on the momentum, however, there could be wild swings ahead of F&O expiry. Also, some resistance is likely at higher levels as investors could turn cautious ahead of an eventful April. We will have to contend with earnings, elections and RBI policy next month.
Bullion metals end mixed again
Gold drops but silver manages to crawl up
Gold prices ended lower on Monday, 23 March, 2009 but silver rose. The Treasury Department today detailed their plan to remove toxic assets from banks' balance sheets. This boosted the confidence of the investors and decreased the appeal of precious metals as a safe haven against alternatives. Fed's recent moves had sparked some good notions about the recovery from the recent recession in US. The rebounding dollar was also responsible for precious metals ending lower today.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Monday, Comex Gold for April delivery fell $3.7 (0.4%) to close at $952.5 an ounce on the New York Mercantile Exchange. Last week, the yellow metal ended higher by 2.8%. For the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are higher by 15.1%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.9%) since then.
On Monday, Comex silver futures for May delivery rose 3.5 cents (0.3%) to end at $13.875 an ounce. In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 26.3% this year. For 2008, silver had lost 24%.
The Treasury Department unveiled their plan today about buying back most of the bank's toxic assets thereby cleaning up their balance sheet to the extent possible. Treasure Secretary Tim Geithner detailed today that the Treasury plans to create a series of public-private investments funds to buy $500 billion to $1000 billion in legacy loans and securities. To encourage participation from the private sector, the government is taking on much of the risk and offering subsidies.
US stocks rallied today on the back of this news and the Dow ended more than 500 points higher for the day.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for April delivery closed lower by Rs 76 (0.5%) at Rs 15,425 per 10 grams. Prices rose to a high of Rs 15,518 per 10 grams and fell to a low of Rs 15,355 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 90 (0.4%) higher at Rs 22,827/Kg. Prices opened at Rs 22,700/kg and rose to a high of Rs 22,936/Kg during the day's trading.
Crude glides up
Oil prices end higher in sync with US stocks
Following strong gains at Wall Street today, crude prices ended higher on Monday, 23 March, 2009. The rebounding dollar was mainly the reason for this. The Treasury Department today detailed their plan to remove toxic assets from banks' balance sheets. This boosted the confidence of the investors.
On Monday, crude-oil futures for light sweet crude for May delivery closed at $53.8/barrel (higher by $1.73 or 3.3%) on the New York Mercantile Exchange. Last week, crude ended higher by 10.4%. For the month of February, crude prices had ended higher by 1.5%.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 63% since then. Year to date, in 2009, crude prices are higher by 21.8%. On a yearly basis, crude prices are lower by 49%.
The Treasury Department unveiled their plan today about buying back most of the bank's toxic assets thereby cleaning up their balance sheet to the extent possible. Treasure Secretary Tim Geithner detailed today that the Treasury plans to create a series of public-private investments funds to buy $500 billion to $1000 billion in legacy loans and securities. To encourage participation from the private sector, the government is taking on much of the risk and offering subsidies.
US stocks rallied today on the back of this news and the Dow ended more than 500 points higher for the day.
Also at the Nymex on Monday, April reformulated gasoline rose 2.1% to $1.4881 a gallon and April heating oil gained added 6.3% to $1.4707 a gallon.
April natural-gas futures rose 1.6% to $4.294 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for March delivery closed at Rs 2,694/barrel, higher by Rs 65 (2.5%) against previous day's close. Natural gas for April delivery closed at Rs 221.7/mmbtu, higher by Rs 3.1/mmbtu (1.4%).
Subscribe to:
Posts (Atom)