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Thursday, August 27, 2009
Sensex ends choppy session on a flat note
The Sensex ended the volatile session on a flat note. Consumer durables stocks were in the limelight, whereas metal, banking, and realty stocks edged lower. It opened with a loss of 58.05 points, at 15,711.80 on Thursday tracking negative global cues. The index was hovering around the red line. Later the benchmark index recovered and entered into the positive terrain on buying seen in frontliners. It continued to trade in the positive territory, fluctuating back into the red, only to end marginally higher.
BSE Midcap index and Smallcap index rose 0.38% and 0.42% respectively.
On sectoral front, BSE Consumer durables surged 4.11%, Capital goods rose 1.16%, whereas Metal declined 0.88%, Bankex dipped 0.57% and Realty down 0.26%.
Inflation rose to (-) 0.95% for the week ended on Aug. 15, 2009 from (-) 1.53% in the previous week on the back of rising food prices. The wholesale price index (WPI) based inflation remained negative for the 11th consecutive week since June 06 mainly on high base.
On global front, European stocks slipped as speculation that the American economy shrank at a faster pace than previously estimated offset better-than-projected earnings at Credit Agricole. Standard & Poor`s 500 Index futures retreated 0.1%. UK`s benchmark index FTSE 100 fell 6.61 points, or 0.14%, to trade at 4,883.83. French benchmark index CAC 40 dipped 4.23 points, or 0.12%, to trade 3,664.34. Germany`s benchmark index DAX decreased 32.25 points, or 0.58%, to trade at 5,489.88. (4.20 p.m., IST)
Asian stocks fell after China said it may curb production in the steel and cement industries and Esprit Holdings reported lower profit. Japanese benchmark index Nikkei fell 165.74 points, or 1.56%, to end at 10,473.97. Hong Kong`s Hang Seng index declined 213.57 points, or 1.04%, to close at 20,242.75. China`s Shanghai Composite decreased 21.20 points, or 0.71% to settle at 2,946.40.
Sensex ended the day with a gain of 11.22 points, or 0.07% at 15,781.07 after touching a high of 15,853.71 and a low of 15,685.49. The broad-based NSE Nifty climbed 7.35 points, or 0.16% at 4,688.20 after hitting a high of 4,707.90 and a low of 4,645.15
Major gainers in the 30-share index were Bharti Airtel (2.74%), Wipro (2.01%), Tata Power Company (1.70%), Larsen & Toubro (1.56%), Sterlite Industries (India) (1.45%), and Bharat Heavy Electricals (1.34%).
On the other hand, Tata Steel (5.14%), Tata Motors (2.55%), Hindustan Unilever (2.32%), Hero Honda Motors (1.77%), DLF (1.68%), and Reliance Communications (1.50%) were the major losers in the Sensex.
Overall market breadth was positive. Out of the total 2,845 stocks traded at BSE, 1,638 advanced, 1,128 declined while 79 remained unchanged.
Rupee recovers
Ends at 48.91/92 per dollar
Rupee recovered from an early fall to 1-1/2-month lows past 49 per dollar, helped by gains in the yen against other major currencies.
Rupee ended at 48.91/92 per dollar, marginally stronger than its previous close of 48.93/94. It fell to 49.05 in early trade, its weakest since July 13.
Grey Market - Oil India, Jindal Cotex, NHPC, Globus Spirits
NHPC 36 4.5 to 5.50
Jindal Cotex 70 to 75 5 to 5.50
Globus Spirits Ltd. 90 to 100 7 to 8
Oil India 950 to 1050 140 to 150
Post Session Commentary - Aug 27 2009
Domestic market ended the day on flat note after making recovery from initial lows. After exhibiting weakness during the early trading, the benchmark Index rebounded in afternoon after Finance Minister Pranab Mukherjee said the economy is showing some positive signs. He expects more than 6% growth in the year ending March 2010 and over 8% growth in the year ending March 2011. However, market was volatile on the day of settlement of the August F&O series. Meanwhile, inflation rose to minus 0.95% for the week ended August 15 from minus 1.53% in the previous week. In addition, the government today unveiled its Foreign Trade Policy but did not announce any major sops for any sector. The BSE Sensex ended above 15,750 level and NSE Nifty closed above 4,650 mark.
Market opened the day on subdued note tracking weak Asian markets. The Asian stocks were lower in early trade whereas US stocks markets closed on flat note on Wednesday, as investors were cautious after a rally and ignored encouraging economic reports on new home sales. Further, Indian stocks turned volatile soon after start continued to exhibit instability. However, stocks managed to recover from days’ low and turned positive during afternoon session on some buying in key stocks. Recovery in US index futures and positive European stocks also added to the positive sentiments. Though, market again touched negative terrain before recovering once more. Finally, market managed to extend its gains to the sixth session and concluded the today’s trading with marginal gains. From the sectoral front, most of the buying was seen in Consumer Durable, Capital Goods, Pharma, Teck, IT and Power stocks. BSE Midcap and Smallcap stocks remained on buyer’s radar. However, Metal and Bank stocks contributed to most of the selling pressure.
Among the Sensex pack 15 stocks ended in green territory and 15 in red territory. The market breadth indicating the overall health of the market remained positive as 1638 stocks closed in green while 1128 stocks closed in red and 79 stocks remained unchanged in BSE.
The BSE Sensex closed slightly higher by 11.22 points at 15,781.07 and NSE Nifty ended marginally up by 7.35 points at 4,688.20. BSE Mid Caps and Small Caps closed with gains of 21.95 and 28.71 points at 5,822.50 and 6,907.06 respectively. The BSE Sensex touched intraday high of 15,883.71 and intraday low of 15,685.49.
Gainers from the BSE Sensex pack are Bharti Airtel (2.74%), Wipro Ltd (2.01%), Tata Power (1.70%), L&T Ltd (1.56%), Sterlite Industries (1.45%), BHEL (1.34%), M&M Ltd (1.20%), NTPC Ltd (0.71%), ITC Ltd (0.63%), SBI (0.61%) and Maruti Suzuki (0.60%).
Losers from the BSE Sensex pack are Tata Steel (5.14%), Tata Steel (2.55%), HUL (2.32%), Herohonda Motors (1.77%), DLF Ltd (1.68%), RCom (1.50%), ICICI Bank (1.36%), Hindalco (1.07%) and JP Associates (0.95%).
The government today unveiled its Foreign Trade Policy but did not announce any major sops for any sector. The trade minister Anand Sharma said the Indian government will continue a tax refund scheme for exporters until December 2010 while a duty-free export promotion scheme will valid until March 2011. The minister maintained status quo by not rolling back incentives announced in the previous policy. The government did introduce one new incentive though: a zero-duty EPCG scheme for specific sectors. He also said that the government would ensure that the dollar needs of exporters would be met.
Inflation rose to minus 0.95% for the week ended August 15 from minus 1.53% in the previous week on the back of rising food prices. The wholesale price index (WPI) based inflation remained negative for the 11th consecutive week since June 6 mainly on high base. It was 12.82% for the corresponding week last year.
On the global markets front, the Asian markets that opened before the Indian market, ended mostly lower. Shanghai Composite, Hang Seng, Nikkei 225 and Seoul Composite closed lower by 21.20, 213.57, 165.74 and 14.79 points at 2,946.50, 20,242.75, 10,473.97 and 1,599.33 respectively. However, Singapore''s Straits Times Index gained 13.80 points at 2,642.23.
European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading higher by 0.20 points at 5,522.17 and in London FTSE 100 is trading up by 3.77 points at 4,894.35.
The BSE Consumer Durable index outperformed the benchmark indices as gained (4.11%) or 131.68 points at 3,333.63. Gainers are Rajesh Export (8.58%), Videocon Ind (8.51%), Gitanjali GE (4.65%), Titan Ind (3.21%) and Blue Star L (0.57%).
The BSE Capital Goods index ended up by (1.16%) or 150.94 points at 1,3179.90 as SKF India (5.00%), Reliance Industrial Infra (4.20%), Bharat Bijli (3.35%), Usha Amrtin (2.86%) and BEML Ltd (2.83%) ended in green.
The BSE Pharma index closed higher by (1.13%) or 43.91 points at 3,940.43. Main gainers are Divis Lab (8.12%), Piramal Health (4.65%), Sunpha Adv (4.31%), Orchid Chem (3.67%) and Cipla Ltd (3.07%).
The BSE Teck index increased by (0.62%) or 18.93 points at 3,091.98. Gainers are Deccan Chr (4.74%), IOL Netcom (4.39%), HCL Tech (3.45%), Bharti Airtel (2.74%) and Tel Eighteen (2.83%).
The BSE Metal index dropped by (0.88%) or 111.04 points at 12,566.52. Losers are Tata Steel (5.14%), Hindustan Zinc (2.65%), Sesa Goa Ltd (2.22%), Ispat Industries (1.55%) and Jindal Saw (1.48%).
The BSE Bank index lost (0.57%) or 47.88 points at 8,310.62. Losers are Yes Bank (2.07%), Kotak Bank (1.87%), ICICI Bank (1.36%), Punjab National Bank (1.24%) and Axis Bank (1.04%).
Reliance Natural Resources Ltd fell 3.20% on reports the Oil Ministry may file a defamation suit against the company for persisting with false claims pertaining to government revenues from Reliance Industries KG-D6 fields.
IVRCL Infrastructures & Projects Limited lost 0.98%. The Company bagged Water Projects related to Drinking water supply in Mumbai and circulating water supply systems for Power plants of the value of Rs.583 Crores.
Great Eastern Shipping Co. Ltd closed higher by 5.02%. Greatship (India) Limited (GIL), a wholly owned subsidiary of the company has taken delivery of GREATSHIP AARTI, an SOT Anchor Handling Tug cum Supply Vessel.
BGR Energy Systems Limited ended up by 2.45%. The company has been awarded the Balance of Plant ("BOP") contract for 2 x 500 MW Marwa Thermal Power Project.
Nagarjuna Construction Company Limited went op by 1.88%. The company has secured three new orders aggregating Rs. 311 crores.
Aurobindo Pharma Limited advanced by 0.90%. It has received the final approval for Clindamycin Hydrochloride Capsules USP 150mg (base) and SOOmg (base) (ANDA No. 65-442) from the USFDA.
Unichem Laboratories Limited gained 0.35%. It has received ANDA approval from the United States Food and Drug Administration (USFDA) for Cionidine Hydrochloride.
BSE Bulk Deals to Watch - Aug 27 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
27/8/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 316079 1595.79
27/8/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 316079 1597.16
27/8/2009 532875 ALLIED DIGIT OPG SECURITIES P LTD B 114626 540.13
27/8/2009 532875 ALLIED DIGIT OPG SECURITIES P LTD S 114626 540.60
27/8/2009 526397 ALPHAGEO IND HITESH SHASHIKANT JHAVERI B 45003 281.05
27/8/2009 526397 ALPHAGEO IND JMP SECURITIES PVT LTD B 55504 275.45
27/8/2009 526397 ALPHAGEO IND HITESH SHASHIKANT JHAVERI S 45003 281.05
27/8/2009 526397 ALPHAGEO IND JMP SECURITIES PVT LTD S 81816 272.30
27/8/2009 531761 AMULYA LEAS KINOFOLK INDUSTRIES LTD. B 100000 21.32
27/8/2009 531761 AMULYA LEAS DHARMENDRA KUMAR S 109500 21.32
27/8/2009 531223 ANJANI SYNTH AMIT SHANTILAL MEHTA S 94387 35.51
27/8/2009 532935 ARIES AGRO HITESH SHASHIKANT JHAVERI B 221709 81.32
27/8/2009 532935 ARIES AGRO HITESH SHASHIKANT JHAVERI S 214732 81.24
27/8/2009 513729 ARO GRANIT I* PEARL MINERAL PVT LTD S 69050 40.60
27/8/2009 533068 ARROW TEX PACIFIC CORPORATE SERVICES LTD S 75000 10.39
27/8/2009 512642 ARTILL BIO-I DONTHI REDDY BALACHANDRA REDDY S 15073 2.11
27/8/2009 531932 C G IMPEX AMIT OMPRAKASH BAGADIA B 50000 7.73
27/8/2009 531932 C G IMPEX NILESH DOSHI B 100000 7.70
27/8/2009 531932 C G IMPEX NITA BANKESH BHAVSAR S 40000 7.72
27/8/2009 531337 CHAN GUIDE I ANIL AGRAWAL HUF S 32000 61.47
27/8/2009 531337 CHAN GUIDE I VIJAY ASHANAND THAKKAR S 30000 61.13
27/8/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD B 25950 8.33
27/8/2009 517973 DMC INTER SHIVCHARAN DASSMITTAL B 40000 7.98
27/8/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD S 31407 7.99
27/8/2009 517973 DMC INTER SHIVCHARAN DASSMITTAL S 40000 8.35
27/8/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 1500000 1.20
27/8/2009 530315 HIND TIN WOR SANJUG TRADING CO LTD B 100000 83.49
27/8/2009 530315 HIND TIN WOR Naman Securities & Finance Pvt. Ltd. B 65140 83.02
27/8/2009 530315 HIND TIN WOR Naman Securities & Finance Pvt. Ltd. S 90000 84.07
27/8/2009 509684 INDIA FOILS HITESH SHASHIKANT JHAVERI B 159924 15.59
27/8/2009 509684 INDIA FOILS SHILPA MILIND DESAI B 149265 14.99
27/8/2009 509684 INDIA FOILS SHILPA MILIND DESAI S 149265 15.59
27/8/2009 506522 J L MORISO I JAIDEEP HALWASIYA S 8873 332.75
27/8/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 15000 14.68
27/8/2009 532054 KDDL LTD DEEPAK POPATLAL VORA B 44198 16.80
27/8/2009 506528 KELTECH ENRG CHANCHAL DEVI LODHA B 11449 236.53
27/8/2009 531633 LINCOLN PHAR PATEL JAYANTILAL D S 51000 27.23
27/8/2009 532440 MACMILAN IND GENESIS ASSET MANAGERS LLP S 133023 71.03
27/8/2009 532907 MAYTAS INFRA SICOM LTD S 545000 101.80
27/8/2009 532819 MINDTREE LTD CAPITAL INTERNATIONAL GLOBAL EMERGING MKTS PVT EQUITY FUND S 571000 525.00
27/8/2009 509040 NETLINK SOLU JMP SECURITIES PVT LTD B 201725 1.87
27/8/2009 509040 NETLINK SOLU ANGEL INFIN PRIVATE LIMITED S 210000 1.86
27/8/2009 509040 NETLINK SOLU JMP SECURITIES PVT LTD S 246177 1.87
27/8/2009 531272 NIKKI GLOB F AKASH GOENKA B 29606 22.31
27/8/2009 531272 NIKKI GLOB F SURENDRA KUMAR GUPTA S 19500 22.45
27/8/2009 531272 NIKKI GLOB F SARITA GOVIND YADAV S 30000 22.30
27/8/2009 530377 NILA INFRAST KIRANBHAI B VADODARIA B 4900000 1.65
27/8/2009 530377 NILA INFRAST PEARL STOCK HOLDING PVT. LTD. S 4900000 1.65
27/8/2009 532882 OMNITECH PRIMORE SOLUTIONS PVT.LTD B 92469 121.62
27/8/2009 532882 OMNITECH PRIMORE SOLUTIONS PVT.LTD S 92469 122.08
27/8/2009 513228 PENNAR IND L KANUDIA CAPITAL AND MANAGEMENT SERVICES PVT LTD B 900000 25.50
27/8/2009 513228 PENNAR IND L DKG SECURITIES PVT. LTD. B 1300000 25.50
27/8/2009 513228 PENNAR IND L SPINNAKER GLOBAL STRATEGIC FUND LIMITED S 5100000 25.51
27/8/2009 509839 PUNJAB WOOLC SUSHMA RANIPUNNI S 61401 5.60
27/8/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD B 81888 1087.17
27/8/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD S 81888 1087.83
27/8/2009 531952 RIBA TEXTILE PRAMUKH PRAHLADBHAI PATEL B 45000 42.54
27/8/2009 531952 RIBA TEXTILE HARDIK CHAUHAN B 35000 42.24
27/8/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PRIVATE LIMITED S 69625 42.47
27/8/2009 526861 RISHI LASER RAVINDRA RAICHAND DHARAMSHI S 79000 38.25
27/8/2009 531901 SAARC NET SANJEEV PATEL B 500000 1.94
27/8/2009 531901 SAARC NET HEMCHAND JAIN B 300000 1.94
27/8/2009 531901 SAARC NET GOVIND SHARDA S 1000000 1.94
27/8/2009 530461 SABOO SOD CH RAJESH A BHUVA(HUF) B 125108 10.26
27/8/2009 530461 SABOO SOD CH RAJESH A BHUVA(HUF) S 125108 10.34
27/8/2009 532886 SEL MANUF SANJAY HIRAMAN PAWAR B 117005 77.17
27/8/2009 532886 SEL MANUF SANJAY HIRAMAN PAWAR S 117005 77.35
27/8/2009 532886 SEL MANUF ARPIT SHARE BROKERS PRIVATE LIMITED S 144399 77.66
27/8/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. B 90750 22.60
27/8/2009 530611 STURDY INDS IDYLLIC CONSTRUCTIONS PRIVAT S 92850 22.60
27/8/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PRIVATE LIMITED B 69459 55.36
27/8/2009 519228 TEMPT.FOODS MERRILL LYNCH CAPITAL MARKET ESPANA SA SVB S 200000 38.45
27/8/2009 532432 UNITD SPR GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 954689 921.29
27/8/2009 524576 VIVID IND GEETANJALI VENKATA KERTI B 35000 13.07
27/8/2009 524576 VIVID IND BCK RAMMOHANT S 25000 13.07
27/8/2009 531249 WELL PACK PA PANDYA HARDIK M B 22360 175.43
27/8/2009 531249 WELL PACK PA PANDYA HARDIK M S 23346 176.65
27/8/2009 522108 YUKEN INDIA HEMANTS S HETH B 15846 88.35
27/8/2009 522108 YUKEN INDIA HEMANT S SHETH S 15846 91.40
NSE Bulk Deals to Watch - Aug 27 2009
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
27-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,766187,1593.46,-
27-AUG-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,BUY,205550,1604.11,-
27-AUG-2009,ALOKTEXT,Alok Industries Limited,HI-GROWTH CORPORATE SERVICES PVT. LTD.,BUY,2340000,22.78,-
27-AUG-2009,ALPHAGEO,Alphageo (India) Limited,JMP SECURITIES PVT LTD,BUY,40680,271.47,-
27-AUG-2009,ALPHAGEO,Alphageo (India) Limited,MANSUKH SECURITIES & FINANCE LIMITED,BUY,33191,260.85,-
27-AUG-2009,ALPHAGEO,Alphageo (India) Limited,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,BUY,18010,282.08,-
27-AUG-2009,ARIES,Aries Agro Limited,BHAVIN Y MEHTA,BUY,98230,81.00,-
27-AUG-2009,ARIES,Aries Agro Limited,BP FINTRADE PRIVATE LIMITED,BUY,93697,80.35,-
27-AUG-2009,ARIES,Aries Agro Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,83110,75.31,-
27-AUG-2009,ARIES,Aries Agro Limited,SETU SECURITIES LTD,BUY,123181,81.01,-
27-AUG-2009,BRFL,Bombay Rayon Fashions Lim,GLOBE CAPITAL MARKET LIMITED,BUY,552764,201.20,-
27-AUG-2009,CLASSIC,Classic Diamonds (India),J V STOCK BROKING PRIVATE LIMITED,BUY,207047,19.82,-
27-AUG-2009,EDSERV,Edserv Softsystems Limite,TARUN JAIN,BUY,60900,82.50,-
27-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6149891,22.42,-
27-AUG-2009,JAYSREETEA,Jayashree Tea Ltd.,DARSHAN V SHAH,BUY,70941,283.44,-
27-AUG-2009,JAYSREETEA,Jayashree Tea Ltd.,NIKON FINLEASE PVT. LTD,BUY,64374,278.46,-
27-AUG-2009,JMFINANCIL,JM Financial Limited,SWISS FINANCE CORPORATION (MAURITIUS) LTD,BUY,6000000,41.10,-
27-AUG-2009,MLL,Mercator Lines Limited,GLOBE CAPITAL MARKET LIMITED,BUY,1705526,61.96,-
27-AUG-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,GLOBE CAPITAL MARKET LIMITED,BUY,894980,124.73,-
27-AUG-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,RATNABALI CAPITAL MARKETS LTD.,BUY,531593,124.39,-
27-AUG-2009,SELMCL,SEL Manufacturing Company,CHETANYA BUILDCON PVT. LTD.,BUY,100000,77.50,-
27-AUG-2009,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT. LTD.,BUY,11435,79.18,-
27-AUG-2009,SELMCL,SEL Manufacturing Company,SANJAY HIRAMAN PAWAR,BUY,224545,77.41,-
27-AUG-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1172279,20.90,-
27-AUG-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,766187,1594.40,-
27-AUG-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,SELL,208750,1604.86,-
27-AUG-2009,ALOKTEXT,Alok Industries Limited,HI-GROWTH CORPORATE SERVICES PVT. LTD.,SELL,2340000,22.81,-
27-AUG-2009,ALPHAGEO,Alphageo (India) Limited,JMP SECURITIES PVT LTD,SELL,39016,261.14,-
27-AUG-2009,ALPHAGEO,Alphageo (India) Limited,MANSUKH SECURITIES & FINANCE LIMITED,SELL,33191,261.41,-
27-AUG-2009,ALPHAGEO,Alphageo (India) Limited,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,SELL,27010,279.67,-
27-AUG-2009,ARIES,Aries Agro Limited,BHAVIN Y MEHTA,SELL,98230,81.00,-
27-AUG-2009,ARIES,Aries Agro Limited,BP FINTRADE PRIVATE LIMITED,SELL,93697,80.32,-
27-AUG-2009,ARIES,Aries Agro Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,83110,75.21,-
27-AUG-2009,ARIES,Aries Agro Limited,SETU SECURITIES LTD,SELL,123181,80.59,-
27-AUG-2009,ARROWTEX,Arrow Textiles Limited,PACIFIC CORPORATE SERVICES LTD,SELL,86581,10.50,-
27-AUG-2009,BRFL,Bombay Rayon Fashions Lim,GLOBE CAPITAL MARKET LIMITED,SELL,71309,202.16,-
27-AUG-2009,CLASSIC,Classic Diamonds (India),J V STOCK BROKING PRIVATE LIMITED,SELL,207100,19.86,-
27-AUG-2009,DISHTV,Dish TV India Limited,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,3919150,46.92,-
27-AUG-2009,FAME,Fame India Limited,JAIDEEP HALWASIYA,SELL,350000,25.00,-
27-AUG-2009,GMRFER,GMR Ferro Alloys & Indust,SATABDI INVESTMENT PVT LTD,SELL,98000,27.43,-
27-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6793998,22.44,-
27-AUG-2009,JAYSREETEA,Jayashree Tea Ltd.,DARSHAN V SHAH,SELL,58941,272.68,-
27-AUG-2009,JAYSREETEA,Jayashree Tea Ltd.,NIKON FINLEASE PVT. LTD,SELL,64374,278.67,-
27-AUG-2009,JMFINANCIL,JM Financial Limited,TIGER GLOBAL LIMITED,SELL,8550000,41.10,-
27-AUG-2009,MACMILLAN,Macmillan India Limited,GENESIS ASSET MANAGERS LLP,SELL,162605,70.71,-
27-AUG-2009,MAYTASINFR,Maytas Infra Limited,SICOM LTD,SELL,1255000,101.87,-
27-AUG-2009,MCDOWELL-N,United Spirits Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,656579,927.94,-
27-AUG-2009,MINDTREE,MindTree Limited,CAPITAL INTERNATIONAL GLOBAL EMERGING MKTS PVT EQUITY FUND,SELL,819000,525.00,-
27-AUG-2009,MLL,Mercator Lines Limited,CREDIT SUISSE FIRST BOSTON (SINGAPORE) LTD,SELL,1342600,61.21,-
27-AUG-2009,MLL,Mercator Lines Limited,GLOBE CAPITAL MARKET LIMITED,SELL,207781,62.32,-
27-AUG-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,CREDIT SUISSE FIRST BOSTON (SINGAPORE) LTD,SELL,661500,123.91,-
27-AUG-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,GLOBE CAPITAL MARKET LIMITED,SELL,459531,124.18,-
27-AUG-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,RATNABALI CAPITAL MARKETS LTD.,SELL,44093,122.88,-
27-AUG-2009,ROLTA,Rolta India Ltd.,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,1140000,176.99,-
27-AUG-2009,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT. LTD.,SELL,115172,77.80,-
27-AUG-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,SELL,200000,77.27,-
27-AUG-2009,SELMCL,SEL Manufacturing Company,SANJAY HIRAMAN PAWAR,SELL,224545,77.24,-
27-AUG-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1172279,20.90,-
Nifty September 2009 futures at premium
Turnover spurts
Nifty September 2009 futures were at 4705, at a premium of 16.80 points as compared to the spot closing of 4688.20. Turnover in NSE's futures & options (F&O) segment spurted to Rs 91,809.58 crore from Rs 78,077.71 crore on Wednesday, 26 August 2009.
The August 2009 derivatives contracts expired today. The rollover in Nifty futures was about 65% at the end of Wednesday's (26 August 2009) trade.
Reliance Industries September 2009 futures were at premium at 2053 compared to the spot closing of 2042.35.
Larsen & Toubro September 2009 futures were at premium at 1612.20 compared to the spot closing of 1600.45.
Tata Steel September 2009 futures were at discount at 430.90 compared to the spot closing of 435.70.
In the cash market, the S&P CNX Nifty rose 7.35 points or 0.16% at 4688.20.
Asian markets turn down on Thursday
Shanghai, Sydney, Nikkei, Hang Seng ends lower while Sensex, Strait Times wangle gains
Stock markets in Asian region slip as buying fatigue sets in on Thursday, 27 August 2009, after a flat day on Wall Street following encouraging home sales and durable goods data left investors cautious about chasing shares higher.
On Wall Street, stocks hovered just off the flat line Wednesday despite better-than expected data on durable goods and new home sales data. The Dow Jones Industrial Average rose 4.23 points, or 0.04%, to 9543.52, while the S&P 500 climbed 0.12 points, or 0.01%, to 1028.12. The Nasdaq Composite crept up 0.2 points, or 0.01%, to 2024.43.
Concisely perking up stocks, the Commerce Department said new-home sales rose to a seasonally adjusted annual rate of 433,000 in July, up from an upwardly revised 395,000 in June. It was the fourth straight increase and marked the most dramatic hike since February 2005.
Earlier, the Commerce Department said orders for goods expected to last at least three years increased 4.9% in July, the third rise in the past four-month. Orders for June were revised up to a 1.3% drop, from a 2.2% decline.
Orders for transportation equipment rose 18.4%. Commercial aircraft orders, a volatile category, more than doubled after falling 30% in June. Motor-vehicle orders increased 0.9%. Excluding transportation goods, orders rose 0.8%. That was the third straight increase.
In the commodity market, crude oil fell for a third day on concern China may cut back on industrial investment, slowing demand for fuels in the world’s second-largest energy user. It was also hurt by data showing an increase in U.S. inventories in the past week and a broad decline for Asian stocks.
Crude oil for October delivery fell as much as 40 cents, or 0.6%, to $71.03 a barrel on the New York Mercantile Exchange, and traded at $71.07 at 3:29 p.m. Singapore time. Yesterday, the contract dropped 62 cents, or 0.9%, to settle at $71.43.
Brent crude oil for October settlement declined as much as 53 cents, or 0.7%, to $71.12 a barrel on the London ICE Futures Europe Exchange, and traded at $71.19 at 3:29 p.m. Singapore time.
Gold futures are trading with marginal gains in the Asian electronic session as US dollar was flat against the European currency. Gold for immediate delivery gained 6 cent to $946.40 an ounce at 3:29 p.m. in Singapore.
In the currency market, Japanese yen rallies in Asia on broad based weakness Asian equities and news that China is planning to curb overcapacity and excessive investments in some industries. The US dollar's rebound yesterday takes a breather and turns into sideway consolidation. Main focus will turn to Q2 GDP preliminary reading which is expected to be revised down from advance reading of -1.0% annualized contraction.
The Japanese yen strengthened against major currencies on Thursday, 27 August 2009 on speculation restrictions on Chinese production will stifle an economic recovery, sparking demand for the relative safety of the Japanese currency. The Japanese yen was quoted at 94.07 per greenback, down from Wednesday’s quote of 94.17 yen.
The Hong Kong dollar was trading at HK$ 7.7510 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trade, the Australian dollar climbed off lows after a surprising jump in business investment in second quarter suggested the economy is growing faster than expected, underpinning bets for local rate hikes this year. Still, gains were capped by thin trading conditions, and a general sense of caution as investors worried China's economy could slow if the government tries to rein in investment. At the local close, the dollar was trading at $US0.8275, off a day’s low of $US0.8239. However, it was still nearly a cent lower than Wednesday's close of $US0.8359.
In Wellington trade, the New Zealand dollar fell around a cent as the greenback strengthened broadly, after another unsuccessful run at the US69c level overnight. The NZ dollar was down to US68.08c, having peaked 12 hours earlier at US68.94c.
The South Korea won ended at 1,248.7 won against the greenback, down 3.4 won from Wednesday's close, as companies snapped up the greenback to settle import bills.
The Taiwan dollar was unchanged against the greenback. The Taiwan dollar was trading flat against the US dollar as it closed trading at NT$ 32.9240, unaltered from Wednesday’s close of NT$32.9240.
Coming back in equities, Asian stock markets closed mostly lower with weakness in China shares dampening sentiment. In Japan, the yen's strength dragged exporters' stocks lower.
In Japan, shares market dropped as investor elected to book profit after the benchmark indices hitting ten month closing high yesterday, with export related shares drag the most on the index on stronger yen against major currencies.
At the closing, the Nikkei 225 Stock Average index stumbled 165.74 points, or 1.56% from Wednesday to 10,473.97, meanwhile the broader Topix index fell 11.36 points, or 1.16%, to 964.23.
On the economic front, the Japan Aluminium Association said that supplies of aluminum rolled products to the domestic and export markets gained 5.1% to 166,673 metric tons in July2009 from a June.
In Mainland China, share market stumbled in cautious trade as investors banked profits on news reports that China is considering curbing overcapacity in steel, cement and other industries to cool the pace of expansion and renewed concerns over share supplies. Shares of property companies’ weighed the most in the Shanghai index after China Vanke unveiled plans for a big share offer.
At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, dropped 21.20 points, or 0.71% to 2,946.40, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, slid 16.08 points, 0.5%, to 3,156.30.
In Hong Kong, benchmark index succumbed as disappointing set of corporate earnings from Esprit Holdings and CNOOC. Investors banked profits on news reports that China is considering curbing overcapacity in steel, cement and other industries to cool the pace of expansion in China. The Hang Seng Index dropped 213.57 points, or 1.04%, to 20,242.75, while the Hang Seng China Enterprise dived 86.46 points, or 0.74%, to 11,570.67.
In Australia, the stock market closed marginal lower as investors elected to profit-taking on as a string of poor earnings reports and a fall in materials and resource stocks such as Rio Tinto and BHP Billiton as base metal prices plummeted by news the world’s top consumer, China, would take steps to curb industrial overcapacity. At the closing bell, the benchmark S&P/ASX200 index slid 3.7 points, or 0.08%, to 4,450.8, meanwhile the broader All Ordinaries skid 6.3 points, or 0.14%, to 4,458.1.
On the economic front, the Australian Bureau of Statistics (ABS) said that new private capital expenditure rose 3.3% in real terms, seasonally adjusted, in the June quarter. The seventh and final estimate of expenditure for 2008-09 is $101.134 billion, which is 16.9% higher than the seventh and final estimate for 2007-08.
In New Zealand, stock market ended its three-day winning streak following a dull day on the Wall Street overnight. The share market was flat in early trading as earnings results continued to reflect tough economic conditions. The NZX50 fell 0.47% or 14.48 points to 3076.42. The NZX 15 decreased 0.68% or 41.58 points to close at 5660.94.
In South Korea, stocks closed lower as institutional investors took a breather with tech and bank share sell-offs. The benchmark Korea Composite Stock Price Index (KOSPI) declined 14.79 points to 1,599.33. The Kospi rose to a fresh 13-month high on Wednesday as investors snapped up undervalued shares and the U.S. economy showed signs of improvement. But institutional sell-offs sparked by the recent sessions' sharp gains weighed on the market, sending the key stock index down as much as 1.43% in late trading.
In Singapore, the stock market surged after opening lower, buoyed by buying pressure among properties and multi industries shares, shrugged off weak performance in offshore markets and other Asian bourses. The blue chip Straits Times Index surged 13.8 points, or 0.53%, to 2,642.23.
In Taiwan, stock market continued to linger in red, as dawdling worries over a possible cabinet reshuffle and an H1N1 outbreak triggered selling. The benchmark Taiex share index stretched its losing stripe in third session as its finished the session lower by 28.46 points or 0.42% in a day, closing the day at 6690.75.
On the economic front, the revival in the car market and in the stay-at-home sales, Taiwan’s retailing sales witnessed a monthly rise of 1.28% to NT$277 billion in July, a new high since June of 2008.
In India, volatility ruled the roost as the key benchmark indices provisionally closed with small gains. The market recovered after an early slide triggered by weak global stocks. Volatility was high in late trade with the Sensex alternatively moving between positive and negative zone as traders rolled over positions in the derivatives segment from August 2009 series to September 2009 series, ahead of the expiry the August 2009 contracts.
The Sensex moved into positive zone in morning trade. It slipped into the red red again later. The market once again moved into the green from red in early afternoon trade. The market extended gains in afternoon trade. The market pared gains in mid-afternoon trade. The BSE 30-share Sensex was up 11.22 points or 0.07% to 15,781.07. The S&P CNX Nifty was up 7.35 points or 0.16% to 4,688.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.37% or 4.34 points to 1176.90 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2356.06.
In other regional market, European shares held to a tight range on Thursday, as gains from Credit Agricole, Nokia and Accor worked to offset weakness from Diageo and miners. Overall, the French CAC-40 index was trading little higher by 0.1% at 3,672, the German DAX 30 index lost 0.1% to 5,519 and the U.K. FTSE 100 rose was trading higher by 0.1% at 4,894.
Market extends gains for the sixth day
Volatility ruled the roost as the key benchmark indices notched up small gains. The market rose for the sixth straight day in a row. But, India's largest steel maker by sales Tata Steel tumbled after reporting heavy losses in Q1 June 2009 on consolidated basis. The BSE 30-share Sensex was up 11.22 points or 0.07%, off close to 70 points from the day's high and up close to 95 points from the day's low. The market breadth, indicating the overall health of the market, was strong
As per provisional data, foreign funds today, 27 August 2009, sold shares worth a net Rs 41.47 crore. Domestic funds bought shares worth a net Rs 29.22 crore
Capital goods stocks
rose. IT stocks gained after the top three IT firms won a large order from British Petroleum. Realty stocks fell.
The market recovered after an early slide triggered by weak global stocks. The Sensex moved into positive zone in morning trade. It slipped into the red red again later. The market once again moved into the green from red in early afternoon trade. The market extended gains in afternoon trade. The market pared gains in mid-afternoon trade.
Volatility was high in late trade with the Sensex alternatively moving between positive and negative zone as traders rolled over positions in the derivatives segment from August 2009 series to September 2009 series, ahead of the expiry the August 2009 contracts. The August 2009 contracts expired today. The rollover in Nifty futures was about 65% at the end of Wednesday's (26 August 2009) trade. Rollover in Mini Nifty futures was about 51%.
Finance Minister Pranab Mukherjee today said the economy is showing some positive signals. The Finance Minister expects over 6% growth in the year ending March 2010 even as he expressed concerns over growth in the infrastructure sector. Mukherjee said weak rains have hit the summer crop. India's economy could possibly grow at more than 8% in the year ending March 2011, he added. He further said India's heavy borrowing in the 2009/10 fiscal year will not crowd out private investments.
As per reports, India's monsoon rain in the week till 26 August 2009 was 6.6% below long term average. The monsoon deficit narrowed to 25% during the period from 1 June 2009 to 26 August 2009, from 26% a week ago. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
The government's immediate objective is to reverse declining exports and the trade policy will give thrust to employment oriented sectors, Commerce Minister Anand Sharma said today at the time of unveiling a trade policy for the five years ending March 2014. The minister said he expects exports to grow 15% in fiscal year ending March 2011. The government will continue a tax refund scheme for exporters until December 2010 while a duty-free export promotion scheme will be valid until March 2011, Sharma said on Thursday.
India is expected to return to a high export-growth path of an annual 25% by 2014, Sharma said on Thursday. He said government will take further steps to reduce transaction cost for exporters. He said government to allow tax refund schemes for jewellery sector and there are plans to set up diamond bourses. He said state run banks will provide dollar credit to exporters.
Sharma said India's industrial output rose 7% in July 2009, compared to a 7.8% rise in June 2009. Government data had on Wednesday shown a sharp slowdown in infrastructure sector output. Infrastructure sector out grew 1.8% in July 2009 over July 2008, lower than an upwardly revised 6.8 % in June 2009. The infrastructure sector accounts for 26.7% of India's industrial output.
The widely watched wholesale price index fell 0.95% in the 12 months to 15 August 2009, its 11th successive fall. The decline was, however, lower than a 1.53% decline a week before that. The food articles index surged 13.3% from a year earlier as drought has hit nearly half of India's districts, eroding crop production and raising major headaches for policy makers. The government announced the inflation data after market hours on Wednesday.
European shares fell reversing early gains. Key benchmark indices in France, Germany and UK were down by between 0.02% to 0.48%.
Asian stocks declined today led by commodity companies, after China's government said it may curb overcapacity in the steel and cement industries as well as strengthen controls of stock and bond sales by companies in targeted sectors. Key benchmark indices in China, Hong Kong, Japan, Taiwan, South Korea, were down by between 0.42% to 1.56%. Sigapore's Strait Times rose 0.53%.
US index futures moved between gains and losses. Trading in US index futures indicated Dow could fall 7 points at the opening bell today, 27 August 2009.
US markets ended flat on Wednesday, 26 August 2009 as a smaller-than-estimated rise in orders for some durable goods and possible curbs on raw-materials suppliers in China outweighed a surge in new-home sales. The Dow rose 4.23 points, or 0.04%, to 9,543.52. The S&P 500 index added 0.12 points, or 0.01%, to 1,028.12, while the Nasdaq Composite Index rose 0.20 points, or 0.01%, to 2,024.43.
In economic news, new-home sales shot up 9.6% in July 2009 to 433,000 units. The number blew past economists' expectation for a 1.6% increase. Another data showed orders orders for durable goods, excluding transportation, rose less than forecast in June 2009 despite overall orders posting their largest advance since July 2007.
The BSE 30-share Sensex was up 11.22 points or 0.07% to 15,781.07. The barometer index rose 84.06 points at the day's high of 15,853.71 in afternoon trade. The Sensex fell 84.36 points at the day's low of 15,685.49 in early trade.
The S&P CNX Nifty was up 7.35 points or 0.16% to 4,688.20. Nifty September 2009 futures were at 4705, at a premium of 16.80 points as compared to the spot closing of 4688.20. Turnover in NSE's futures & options (F&O) segment spurted to Rs 91,809.58 crore from Rs 78,077.71 crore on Wednesday, 26 August 2009.
BSE clocked a turnover of Rs 6546 crore, lower than Rs 6917.58 crore on Wednesday, 26 August 2009.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1631 shares advanced as compared with 1127 that declined. A total of 79 shares remained unchanged.
Among the 30-member Sensex pack, 15 rose while the rest declined.
The market has surged in the past six days supported by positive global cues. The BSE Sensex has risen 971.43 points or 6.55% to 15,781.07 on Thursday, 27 August 2009 from 14,809.64 on 19 August 2009.
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 6133.76 points or 63.58% in calendar year 2009 as on 27 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7620.67 points or 93.38% as on 27 August 2009. FII inflow in calendar year 2009 totaled Rs 37,849.20 crore (till 26 August 2009).
Coming back to today's trade, the BSE Mid-Cap index was up 0.38% and the BSE Small-Cap index rose 0.42%. Both the indices outperformed the Sensex.
The BSE Consumer Durables index (up 4.11%), the BSE Capital Goods index (up 1.16%), the BSE Healthcare index (up 1.13%), the BSE Teck index (up 0.62%), the BSE PSU index (up 0.5%), the BSE IT index (up 0.32%), the BSE Power index (up 0.28%), the BSE Auto index (up 0.25%), the BSE Oil & Gas index (up 0.12%), outperformed the Sensex.
The BSE Metal index (down 0.88%), the BSE Bankex (down 0.57%), the BSE Realty index (down 0.26%), the BSE FMCG index (up 0.01%), underperformed the Sensex.
India's largest steel maker by sales Tata Steel fell 5.14% after the company reported a net loss of Rs 2208.68 crore in Q1 June 2009 on a consolidated basis compared with a net profit of Rs 3900.90 crore in Q1 June 2008. The company's total income fell 46% to Rs 23496.21 crore in Q1 June 2009 over Q1 June 2008. The stock tanked soon after the result hit the market in late trade. The stock was the top loser from the Sensex pack.
Among other metal stocks, Hindustan Zinc, JSW Steel, Hindalco Industries and Steel Authority of India, fell by between 0.15% to 2.65%.
India's largest mobile phone company by sales Bharti Airtel rose 2.74% on reports the company and MTN Group may agree on a merger deal by mid-September. The stock was the top gainer from Sensex pack. However, South Africa's MTN said no decision or agreement to acquire any shares, GDRs, implement transaction with Bharti Airtel has yet been made by the boards of either MTN or Bharti.
Bharti and Johannesburg-based MTN, Africa's largest wireless carrier, on 20 August 2009 extended talks for a second time over a potential $23 billion merger that would challenge Vodafone Group Plc's push into India and Africa. The deadline is 30 September 2009.
India's second largest mobile telecom player by sales Reliance Communications (RCom) fell 1.5% despite reports the company is likely to sign a 10-year tower-sharing agreement with Chennai-based telecom operator STel. The deal is likley to bring annual revenue of about Rs 800-1000 crore for RCom
Bank stocks fell on profit taking. India's second largest private sector bank by net profit HDFC Bank fell 0.15% after its ADR fell 1.1% on Wednesday, 26 August 2009.
India's largest private sector bank by net profit ICICI Bank fell 1.36%. The bank has launched a special offer for new home loan borrowers effective from 20 August 2009. Under this, interest rates for home loans upto Rs 20-lakh will now be at 8.75%. For loans between Rs 20-Rs 50 lakh, the new rates will be 9.25% while those above Rs 50-lakh, the rate has been fixed at 9.75%.
But, India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.61%.
IT stocks rose after the top three IT firms won a large outsourcing deal from British Petroluem. India's third largest software services exporter Wipro rose 2.01% as its ADR rose 2.16% on Wednesday. India's second largest software services exporter Infosys Technologies rose 0.39% as its American depository receipt (ADR) rose 2.62% on Wednesday, 26 August 2009. But, India's largest software services exporter TCS fell 0.67%.
In one of the largest deals, the top-three Indian vendors Infosys, TCS and Wipro along with IBM Corp bagged a slice of the $1.5 billion five year information technology (IT) outsourcing contract from British Petroleum Pcl (BP), one of the world's largest integrated oil and gas companies. The companies announced the BP deal after trading hours on Wednesday.
None of the three companies announced the order size. BP has been consolidating its IT vendors for the past 12 months, with goals to simplify its processes and improve service quality.
Realty shares fell on profit taking. Indiabulls Real Estate, Phoenix Mills, Unitech and DLF fell by between 0.34% to 3.31%.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was flat at Rs 2040.25. The stock hit a high of Rs 2056.50 and a low of Rs 2020.10. A panel of ministers has reportedly decided to protect NTPC's interests with regard to a gas dispute. As per reports, the government has decided to spell out its position in the two disputes involving the Krishna-Godavar Basin D6 block gas supplies - NTPC-Reliance Industries (RIL) and RIL-Reliance Natural Resources (RNRL).
On Friday, 21 August 2009 the government had clarified that it was not correct that it would earn Rs 500 crore from the KG basin gas, as claimed by Anil Ambani in the media. It said it would get Rs 84,000 crore.
The dispute between Reliance Industries and Reliance Natural Resources (RNRL) is centered around the price and supply of gas from KG basin operating by RIL to RNRL for the power plants of Anil Dhirubhai Ambani group. NTPC-RIL case also deals with price and supply of gas to NTPC's power plants from RIL.
India's largest oil exploration firm by market capitalisation ONGC rose 0.26% ahead of the opening of the intiail public offer (IPO) of state-run Oil India (OIL) on 7 September 2009. OIL, which produces 3.5 million tonne of oil annually, will offer fresh equity of 2.64 crore shares or 11%, while the Government will put on offer 10% of its stake in OIL to the public sector refining-cum-marketing companies — Indian Oil Corporation, HPCL and BPCL. The government has fixed a price band of Rs 950-1,050 per share for the Oil India IPO.
Cairn India fell 1.6% as crude oil declined. Cairn India will start pumping crude on Saturday 29 August 2009 from its Rajasthan block.
Crude oil declined for a third day on Thursday after a report showed that inventories unexpectedly rose last week in the US, the world's largest energy user. Crude oil for October delivery dropped as much as 62 cents, or 0.9%, to $70.81 a barrel in electronic trading on the New York Mercantile Exchange. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.
India's largest car maker by sales Maruti Suzuki was flat at Rs 1404.80 after its sales chief said on Thursday that company has seen double-digit percentage growth in sales this month and has not seen any impact so far due to drought in the country.
India's largest bike maker by sales Hero Honda Motors fell 1.77% even after the company said it will launch 9 new models by March 2010.
India's largest truck marker by sales Tata Motors fell 2.55% on profit taking after a strong rally in the past few weeks. The company has reportedly come to the public for the second time to raise about Rs 1,500 crore via fixed deposit schemes, offering up to 9.88% annual interest for a three-year deposit.
Capital goods shares rose on government's thrust on infrastructure. Higher government spending on infrastructure sector in 2009-2010 to provide a stimulus to the economy, may result in increase order flow for capital goods firms.
Larsen & Toubro, Bharat Heavy Electricals, ABB, Thermax, Siemens, BEML, rose by between 0.96% to 2.83 %
Power stocks fell on profit taking. Reliance Infrastructure, Torrent Power, GVK Power, PowerGrid Corporation of India, Reliance Power, Adani Power fell by between 0.58% to 2.23%.
Among a slew of IPOs lined from the sector include that of Indiabulls Power, JSW Energy, Jindal Power, Sterlite Energy, and GMR Energy.
Some FMCG stocks dipped on concerns deficient monsoon rains may crimp rural sales. FMCG firms derive a substantial revenue from rural India. Hindustan Unilever, Dabur India, Marico, Tata Tea, Britannia Industries fell by between 0.53% to 2.54%.
Shares of four tea makers rose after tea prices in Kenya, which sets global benchmark prices, hit record levels due to drought. Asian Tea & Exports, Warren Tea, McLeod Russel and Harrisons Malayalam rose by between 0.16% to 10%. Kenyan tea prices hit record levels for the second week running at the Mombasa auction on Wednesday, 26 August 2009 due to drought fears
Sugar stocks rose on bargain hunting after a recent fall. Shree Renuka Sugars, Bajaj Hindustan, Renuka Sugars rose by between 1.2% to 2.93%.
Sugar stocks fell recently after government on Monday 24 August 2009 decided to limit sugar stocks with bulk buyers.
Shares of export oriented sectors gained after the government extended tax sops for exports in its new foreign trade policy. From the textile pack, Gokaldas Exports, Arvind Mills, Alok Industries and Raymond rose by between 1.41% to 5%.
From leather sector, Bhartiya International, Mirza Tanneries, Liberty Shoes Crew Bos rose by between 0.39% to 7.18%.
Gitanjali Gems, Shrenuj & Company, Vaibhav Gems, SB&T International rose by between 4.65% to 17.58% from the gems and jewellery sector after the trade minister said government would allow a tax refund scheme for the sector.
Cals Refineries clocked the highest volume of 2.62 crore shares on BSE. Mahindra Satyam (2.14 crore shares), Reliance Natural Resources (1.68 crore shares), Alok Industries (1.53 crore shares) and Unitech (1.37 crore shares) were the other volume toppers in that order.
Aban Offshore clocked the highest turnover of Rs 377.02 crore on BSE. Mahindra Satyam (Rs 245.85 crore), Tata Steel (Rs 203.40 crore), HOEC (Rs 158.80 crore) and Reliance Capital (Rs 256.87 crore) were the other turnover toppers in that order.
Globus Spirits IPO Analysis
Globus Spirits, promoted by Ajay Kumar Swarup and family, manufactures, markets and sells industrial alcohol comprising rectified spirit and extra-neutral alcohol, country liquor, and Indian-made foreign liquor (IMFL). With steady growth and production of good quality liquor, the company has established its identity in the country liquor and IMFL business. Its brand portfolio in the country-liquor segment includes Rana, Rajasthan No.1, Ghoomar, Samalkha No.1, Samalkha Ki Saunfi, and Kinnu. In the IMFL segments, its brands comprise White Lace Duet Gin, Samurai Premium Whisky, 20-20 Premium Whisky, GR 8 Times Whisky, and Hannibal Legendry Rum. Globus Spirits also caters to reputed Indian brands in the IMFL segment such as Officer's Choice Prestige Whisky, Officer's Choice Classic Whisky, Officer's Choice No.1 Brandy and Officer's Choice XXX Rum. The company has launched its own IMFL brands in Haryana, Rajasthan, Chandigarh, Uttar Pradesh, Andhra Pradesh, Kerala and Karnataka. It proposes to launch the brands in two states and Union territory in north India and one state and Union territory in south India.
The two distilleries of Globus Spirits at Behror in Rajasthan and at Samalkha in Haryana are capable of manufacturing alcohol from molasses as well as grain. The total licensed and installed capacity of both the units stand is at 144 lakh bulk litres (BL) per annum each. The distilleries have modern bottling facilities equipped with bottling machines and cater to jn-house country liquor and IMFL brands. Also, the company has tie-ups and separate arrangements for bottling IMFL products for other brand owners.
To lower the cost of production while continuing to produce high quality spirit, Globus Spirits is modernising and expanding its production facilities, and setting up latest facilities in utility management. The company intends to enter the IMFL market by developing its own brands and/or acquiring existing brands and marketing them across India. It proposes to implement greenhouse gas abatement project by utilising biomass and biogas for steam and power generation to reduce emission of greenhouse gases (GHG) from fossil fuel combustions for equivalent energy generation. This will help in getting the potential benefits of the GHG abatement project under the clean development mechanism of the Kyoto Protocol.
To expand and modernise its existing facilities, Globus Spirits requires Rs 89.28 crore. To raise this amount, the company is entering the capital market with its initial public offering of 75 lakh equity shares of face value of Rs 10 each through a 100% book-building process at a price band between Rs 90 and Rs 100 per equity share. It is also getting a term loan of Rs 12 crore from SBI. The remaining will be through internal accruals.
Strengths
Good financial track record, with consistent growth in sales and profit.
Strategically located with access to raw material (molasses and grains). The plant also has technological flexibility to use both grain and molasses as raw material, insulating from dependence on any specific raw material.
Weaknesses
Products lack adequate awareness, and have limited geographical presence across the country. Dependent on a single customer for bottling of IMFL products
Does not have adequate distribution network for its products in the IMFL segments.
The industry is heavily taxed and regulated by the government.
Valuation
Globus Spirits has set a price band of Rs 90 to Rs 100 per equity share of Rs 10 face value. At the lower band of Rs 90 per share, the P/E will be 13.8 times the EPS for the financial year ended March 2009 (FY 2009). At the upper price band of Rs 100 per share, the P/E will be 15.3 times. In the breweries & distilleries industry, comparable companies such as Tilaknagar Industries and Associated Alcohols and Breweries have P/E around 5.3 and 7.3 times FY 2009 EPS.
RNRL letter to Petro Ministry
Dear Sir,
Subject: Petroleum Ministry's Press Note dated 21.08.2009 silent on several key questions of public and national interest
1. We are happy to note that the Petroleum Ministry has issued a Press Note dated 21.8.09 in response to recent developments, providing answers to a series of questions in public and national interest regarding the supply of gas from KG-D6 fields.
2. We welcome the Ministry's stand that it is committed to protecting the interests of the government-owned navratna NTPC. We trust the Ministry will now take all appropriate steps to ensure that NTPC gets its rightful share of 12 mmscmd of gas from Reliance Industries (RIL) at a price of USD 2.34 /mmbtu for a period of 17 years for its Kawas and Gandhar expansion projects.
3. On the issue of KG-D6 capex, we were surprised to learn from media reports that RIL had, in a letter to the Ministry on 20.08.2009 - just a day before the Ministry issued its own public statement - justified the massive escalation in the Development Cost of KG D6 block. We were also surprised that the Petroleum Ministry, within the short time of less than a day that was available for any verification, defended RIL's apparently inflated capital expenditure, without seeking to allay legitimate public apprehensions on the subject. We have already written a separate letter dated 25.08.2009 to you, seeking an expeditious completion of the CAG audit, and an independent credible revalidation of such capex, in the light of several issues of conflict of interest, etc. surrounding the previous evaluation, and request you to kindly take appropriate action in that regard.
4. We would like to also bring to your kind attention certain other critical issues of public and national interest for your necessary action.
Pricing of Domestic Gas
a. The international price of gas, i.e. the Henry Hub price quoted at Nymex, has crashed by nearly 80% from USD 13.58/mmbtu in July 2008 to USD 2.73/mmbtu on 24th August 2009. As against this dramatic collapse in prices globally, the price consumers are paying for RIL's KG Basin gas during the same period has moved in the opposite direction, and actually gone up by over 20% in rupee terms.
b. This is primarily because the said price of gas, a domestic natural resource for sale in the domestic market in India, has quite strangely been denominated in a foreign currency i.e. US Dollars. This has led to an entirely unjustified annual increase, at peak production, of over Rs 3,700 crore for gas consumers. Over the expected life-time of the KG Basin fields, this increase will amount to a staggering burden of nearly Rs 50,000 crore, even assuming that the exchange rate remains constant at the current levels.
c. Most of this unwarranted increase in gas prices will be borne by power and fertilizer consumers and will lead to a substantial increase in Government subsidies. This aberration once again demonstrates the need for the entire gas pricing policy in India to be reviewed, not just on account of the denomination in a foreign currency, but also because of its lack of elasticity in response to sharp movements in global prices.
Availability of Domestic Gas
d. As per media reports, the DGH has stated that RIL is capable of producing up to 52 mmscmd of gas but is, at present, producing a much smaller quantity in keeping with the lower demand for gas. The same view has been reiterated several times over by senior RIL officials in numerous media reports since June 2006.
e. The DGH had further stated that production from RIL's KG-D6 basin could be ramped to 80 MMSCMD by the end of August 2009, if not earlier.
f. In such a scenario, it is surprising that the Petroleum Ministry continues to take the stand that there is a scarcity of gas in the country, as most recently enunciated in its affidavit to the Supreme Court.
g. This perception of scarcity - a totally artificially created phenomenon - is being exploited by RIL to extract a higher price of gas and make super normal profits. Most independent experts firmly believe that there is little or no demand for gas in the country at the high price of USD 4.2 per mmbtu, which is presently being insisted upon. Indeed, there is unanimity among experts that the price for gas will fall much lower if the contractor is forced to ramp up production, rather than hoarding gas to its sole advantage, as it is doing presently. Only the price thus discovered would truly qualify to be called a freely determined market price of gas.
h. We would, therefore, once again request you to compel RIL to end the artificial scarcity by quickly ramping up production. This will ensure the price of gas corrects to appropriate lower levels in the larger public and national interest.
Petroleum Ministry's Intervention in Court Matters
i. Media reports indicate that RIL is relying on the Petroleum Ministry's affidavits in the RIL-RNRL case in the Bombay High Court and Supreme Court to strengthen its own ongoing case against NTPC, and dishonor its binding gas supply agreement with NTPC. Yet, the Petroleum Ministry, it would appear, is not considering intervening in the court case between RIL and NTPC. Indeed, fears are now being expressed that the Petroleum Ministry's recent statements in Parliament may harm the interests of NTPC in its legal battle against RIL.
j. In contrast to this hands-off approach in the RIL-NTPC case, the Petroleum Ministry has chosen to actively intervene in a similar commercial dispute over gas supply between two corporates, even though the Government's interests in this case are fully protected as per the judgment of the Bombay High Court.
k. We would request you, in the interests of having a uniform approach, to kindly consider becoming a party in the RIL-NTPC litigation, as it involves a Government-owned PSU, and concerns an exorbitant burden of an additional Rs 30,000 crore that power consumers in the country may be called upon to bear, solely for the benefit of a private monopoly gas producer, RIL.
5. We request the Petroleum Ministry to take immediate and appropriate steps on the above important matters, in the wider national and public interest.
Thanks Gautam
Pre Session Commentary - Aug 27 2009
Today domestic markets are likely to open positive as Ministry of commerce will unveil today the new foreign trade policy named as “forward looking”. The new trade policy is likely to give special preference to textiles, handicrafts, leather and gems and jewellery, and also promote the growth of domestic exporters beyond the conventional US and European markets. The exports for the month of July had dipped by 26 per cent at $12.5 billion, compared with $17 billion in the corresponding month previous year. However the markets are already at its peak level and any lack of guidance from foreign markets would result in profit booking. The markets are likely to trade volatile.
On Wednesday, domestic markets closed marginally higher after a volatile session. Domestic market managed to extend its’ initial gains to end in a positive zone. Strong buying over the ground was contributed by positive Asian markets along with higher US index futures. Strong US economic data also added to the positive sentiments. However, stocks were little volatile ahead of the expiry of the August F&O series on Thursday, 27 August 2009. In addition, negative European markets constrained the upward journey of benchmark indices and domestic bourses came off the day’s high during mid session. In the meantime, profit booking was also witnessed following recent rally. The BSE Sensex ended above 15,750 level and NSE Nifty closed above 4,650 mark.
The BSE Sensex closed higher by 81.38 points at 15,769.85 and NSE Nifty ended up by 21.50 points at 4,680.85. BSE Mid Caps and Small Caps closed with gains of 63.02 and 133.11 points at 5,800.55 and 6,878.35 respectively. The BSE Sensex touched intraday high of 15,831.49 and intraday low of 15,695.94.
On Wednesday, US stock markets closed higher. Despite better than expected economic data market participants hardly reacted. There was lack of buying sentiments across the broader level. Annualized new home sales for July hit 433,000 units, which is well above the 390,000 that had been expected. What''s more, the 9.6% month-over-month increase for July is the sharpest rise since 2005. That helped bring inventory down to a 7.5 month supply from an 8.5 month supply. Durable goods orders made their sharpest increase in two years by spiking 4.9% in July. Economists had called for a 3.0% increase. US light crude oil futures for October delivery closed at $71.38 per barrel down by 1% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 4.23 points at 9,543.52, NASDAQ index inclined by 0.20 points to 2,024.43 and the S&P 500 (SPX) closed high by 0.12 points at 1,028.12.
Indain ADR''s ended mixed on Wednesday. In the IT space Infosys was up 2.62%, Wipro was up 2.16%, Satyam was up 0.92% but Patni was down 0.27%. In the Banking space, HDFC Bank was down 1.10% and ICICI Bank was down 0.06%. In the telecom space, MTNL was up 0.51% and Tata Comm was up 1.58%. In the other space Dr Reddys was 1.89%, Tata Motors was up 1% and Sterlite was up 5.08%.
The FIIs on Wednesday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 2,039.30 Crore and gross debt purchased stood at Rs 159.10 Crore, while the gross equity sold stood at Rs 2,092.90 Crore and gross debt sold stood at Rs 504.40 Crore. Therefore, the net investment of equity and debt reported were Rs (53.60) Crore and Rs (345.40) Crore respectively.
On Wednesday, Indian Rupee closed at 48.93/94 per dollar, 0.4 per cent weaker as compared to its previous close at 48.75/76. The intense demand for green back by oil importers pulled the domestic currency.
On BSE, total number of shares traded were 63.15 Crore and total turnover stood at Rs 6,917.58 Crore. On NSE, total number of shares traded were 106.29 Crore and total turnover was Rs 19,520.98 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 45169487 shares, followed by Unitech with 40840724, DLF with 10327096, Hindalco with 8131129 and Tata Motors with 7415023 shares.
On NSE Future and Options, total number of contracts traded in index futures was 725288 with a total turnover of Rs 16,401.46 Crore. Along with this total number of contracts traded in stock futures were 926878 with a total turnover of Rs 29,670.69 crore. Total numbers of contracts for index options were 1281564 with a total turnover of Rs 29,898.59 Crore and total numbers of contracts for stock options were 65896 and notional turnover was Rs 2,106.96 Crore.
Today, Nifty would have a support at 4,590 and resistance at 4,720 and BSE Sensex has support at 15,612 and resistance at 15,890
Trade with caution
The market is likely to remain volatile ahead of derivatives expiry for August series and weak global markets may put pressure on domestic indices in early trades. However, presence of strong bullish sentiment may help the market to turn positive. The Nifty could test higher levels at 4732 and may dip around 4620, while the Sensex has a likely support at 15560 and may face resistance at 16033.
US indices ended marginal positive on Wednesday as investors welcomed positive reports on housing and durables goods, but remained on the sidelines after pushing the market to 2009 highs in the previous session. The DowJones end 4 points higher at 9544 and the Nasdaq remained unchanged and close at 2024. Among the Indian ADRs ended mixed on the US bourses.
The Nymex light crude oil for September delivery lost 62 cents at $71.43 a barrel. In the commodity segment, the Comex gold for December series tumbled by 20 cents to settle at $945.80 an ounce.
Market may fall tracking weak global cues
The key benchmark indices may decline tracking weak global cues as investors may book profits after recent surge in indices. Volatility may remain high today as traders roll over positions in the derivatives segment from August 2009 series to September 2009 series, ahead of the expiry the August 2009 contracts today, 27 August 2009.
The market will keenly watch foreign trade policy to be announced by the Commerce Minister Anand Sharma today. The Foreign Trade Policy is widely expected to contain sops for labour intensive sectors like gems and jewellery, textiles and leather. India's exports in the last 10 months have been sliding steadily by more than 25 per cent.
Key benchmark indices extended gains for the fifth day in a row on Wednesday, 26 August 2009. The BSE 30-share Sensex was up 81.38 points or 0.52% to 15,769.85 on Wednesday. The market has surged in the past five days supported by positive global cues. The BSE Sensex has risen 960.21 points or 6.48% in the past five trading days till Wednesday.
As per provisional data, foreign funds on Wednesday, 26 August 2009, bought equities worth a net Rs 378.54 crore. Domestic funds mopped up stocks worth a net Rs 128.65 crore
India's infrastructure sector output grew 1.8 % in July 2009 over July 2008, lower than an upwardly revised 6.8 % in June 2009, government data showed on Wednesday Output had risen 5.1 %in July 2008. The infrastructure sector accounts for 26.7 % of India's industrial output.
On Tuesday, Finance Minister Pranab Mukherjee said the economy could grow around 6 % in the year to March 2010, lower than the 6.7 % growth in 2008/09 and after expanding 9 percent or more in the previous three fiscal years.
The widely watched wholesale price index fell 0.95 % in the 12 months to 15 August 2009, its 11th successive fall compared to a 1.53 % decline in the prior week. The food articles index surged 13.3 % from a year earlier as drought has hit nearly half of India's districts, eroding crop production and raising major headaches for policy makers. The government announced the data after market hours on Wednesday.
Asian stocks declined today led by commodity companies, after China's government said it may curb overcapacity in the steel and cement industries, as well as strengthen controls of stock and bond sales. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan fell by between 0.04% to 1.59%.
The US markets ended flat on Wednesday, 26 August 2009 as investors shrugged off encouraging economic reports. The Dow rose 4.23 points, or 0.04%, to 9,543.52. The S&P 500 index added 0.12 points, or 0.01%, to 1,028.12, while the Nasdaq Composite Index rose 0.20 points, or 0.01%, to 2,024.43.
In economic news, new-home sales shot up 9.6% in July to 4 lakh 33 thousand units. The number blew past economists' expectation for a 1.6% increase. Meanwhile another report showed mortgage applications jumped 7.5%.
Daily News Roundup - Aug 27 2009
Infosys, Wipro and IBM have won new outsourcing contracts worth US$1.5bn from BP. (ET)
Bharti Airtel may have to pay Rs20bn more than originally presumed to shareholders of MTN as the South African currency has significantly appreciated against the US Dollar. (ET)
ICICI Bank has come out with special offers on new home loans - 8.75% for a loan up to Rs2mn, 9.25% up to Rs5mn and 9.75% above Rs5mn. (ET)
Oil Ministry to consider a defamation suite against RNRL for persisting with false claims. (BS)
Government is likely to allocate 4.3mmscmd of gas from Reliance Industries’ KG Basin to five power plants by end of this week. (BS)
Reliance Infratel has entered in a tower sharing pact with Chennai based telecom operator STel. (ET)
Reliance Communication and China Telecom have launched a terrestrial cable connecting East Asia with the Indian sub-continent. (BS)
NTPC has signed a power purchase agreement with the Chattisgarh government. (BL)
Cairn India and ONGC to invest US$1.5-1.8bn more in Rajasthan over the next two years. (BS)
M&M to demonstrate its hydrogen powered three-wheeler vehicle ‘Hy-Alfa’ in 2010. (BS)
Mahindra Satyam is planning to add 300 people by next month. (BS)
Cipla plans to raise Rs15bn to retire debt and fund capex.(ET)
Union Bank to raise Rs15bn during the current fiscal. (FE)
Maytas Infra dilutes stake in highway projects to stay afloat. (ET)
Tata Tea plans major push in health and wellness sector by launching more products in this category. (FE)
Biocon to list two subsidiaries by next year. (BS)
Government has rejected REC QIP plans. (ET)
BEML bags order worth Rs2.1bn from an Indonesian coal mining company. (BL)
MRPL has shut down its refinery due to power breakdown. (BL)
Thermax has formed a 51:49 JV with US based SPX Corporation for manufacturing of plant equipments for large coal based power plants. (ET)
EIH has joined hands with Max India Chairman Aniljit Singh to set up a 100-room 5-star hotel in Dehradun. (ET)
United Spirits to mop up funds from PE investors or through rights issue to de-leverage its balance sheet. (BS)
Alstom Projects plans to set up metro rail coach facilities in Sri City, Chennai. (BL)
Motherson Sumi bags an order worth Rs40bn from a German contractor. (FE)
India’s headline inflation increases to -0.95% for the week ended August 15 from -1.53% in the previous week. (FE)
Foreign trade policy to be announced today. (ET)
Six core industries index grows by 1.8% for July 2009, lowest in the past five months. (ET)
Fund raising through ADRs to get easier. (ET)
ECB volumes have crossed over US$2bn mark in July, for the first time in past nine months. (BS)
Greed, fear and stubbornness!
Many are stubborn in pursuit of the path they have chosen, few in pursuit of the goal-Friedrich Nietzsche.
The Nifty is close to breaching 4700, which has in the recent past proved to be quite stubborn. A slew of technical analysts predict further gains if the Nifty stays above 4700 for a few days. The greed is getting bigger with bullish ones even talking of Nifty soaring to 5300 in the next few weeks.
Ignoring valuations, the small-cap and mid-cap stocks appear to be playing catch-up with their frontline counterparts on the logic that side counters had under-performed lately. It sure is time to fear.
Today we expect a subdued opening, though action will pick up later. Bulls and bears will slug it out as August F&O contracts expire.
Stocks of export-oriented sectors could hog the limelight as the Government is scheduled to announce the Foreign Trade Policy today. We expect the Centre to unveil a few relief measures to ease the pain for the exporters.
FIIs were net buyers at Rs3.78bn in the cash segment on Wednesday on a provisional basis while the local funds pumped in Rs1.28bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs4.3bn.
On Tuesday, FIIs were net sellers at Rs536mn in the cash segment. Mutual Funds were net buyers of Rs4.23bn in the cash segment on the same day.
A few factors will have an influence on the sentiment. Among the critical ones include: the fallout from drought, inflation, fund flows and of course global cues.
Inflation seems to be picking up and stood at -0.95% in the week ended Aug. 15 compared to -1.53% in the previous week. It was at 12.82% during the corresponding week of the previous year. Inflation had peaked this time last year. So, one should expect the high base effect to taper off in the coming weeks. As a result, the headline WPI inflation number will begin to inch higher.
Growth in the output of six key infrastructure industries slowed in July to just 1.8% from an impressive 6.8% in June.
On the positive side, pessimism about US stocks fell to the lowest level since the S&P 500 Index peaked in October 2007, as economic reports and policy makers indicate that the recession is moderating.
China’s resilient growth has been a key driver of flows into emerging markets equity funds in recent months. During the third week of August, however, doubts about the quality of the loans doled out at breakneck speed by Chinese banks during H1 2009 prompted investors to book profits and take some of their recent gains off the table, says EPFR Global.
EPFR Global-tracked China Equity Funds had their worst week since early Q1 2008 while outflows from Asia (ex-Japan) and Global Emerging Markets (GEM) Equity Funds hit 24 week and year-to-date highs respectively.
US stocks struggled for direction on Wednesday, as investors welcomed positive reports on housing and durables goods, but decided to take a breather after pushing the key indices to new annual highs in the previous session.
The Dow Jones Industrial Average added 4 points or less than 0.1%, to 9,543.52, still managing to close at its highest point since Nov. 4. The S&P 500 index ended at 1,028.12, just above unchanged, squeaking out its highest close since Oct. 6. The Nasdaq Composite index also finished at 2,024.43, just above unchanged, ending at its highest point since Oct. 1.
The Dow has now gained for seven consecutive sessions, topping off a strong summer rally. After such a strong rally, US stocks were bound to face some resistance, despite the encouraging reading on new home sales.
A bottoming in housing is one of the reasons that could lift GDP growth in the US going ahead. Growth will also be driven by inventory rebuilding across many sectors.
US stocks have been more or less on the rise since bottoming in March. After hitting a more than 12-year low on March 9, the S&P 500 has risen 52%. The only notable pullback was a 7% slide in the run up to the start of the second-quarter earnings period.
July new home sales rose to a 433,000 unit annualized rate from a revised 395,000 unit rate in June. Economists forecast sales at a 390,000 unit annual rate.
On Tuesday, an S&P/CaseShiller report showed that home prices rose 2.9% in the second quarter versus the first, the first quarterly rise in three years.
Also on Tuesday, reports showed consumer confidence and housing are starting to recover - and President Obama nominated Ben S. Bernanke for a second term as chairman of the Federal Reserve.
Orders for durable goods rose more than expected in July. According to a Commerce Department report, durable good orders rose 4.9% after falling a revised 1.3% in June. Economists thought orders would rise 3.2%.
Light crude oil prices for October delivery fell 62 cents to settle at $71.43 a barrel on the New York Mercantile Exchange. Prices fell after a government report showed crude supplies rose less than expected last week, while gas and distillates - used in heating oil - rose more than expected.
Vonage Holdings jumped 36% in unusually active New York Stock Exchange trade, building on its recent gain. The provider of VoIP - Internet based calling - has seen its stock bounce over 300% in the last week on speculation that the company can stay afloat, despite weaker revenue and subscriber growth.
Human Genome also moved on unusually high volume on speculation that the company could be bought out by GlaxoSmithKline, its partner on several drugs, according to published reports.
Treasury prices were little changed, with the yield on the benchmark 10-year note ending at 3.43%. Treasury sold $42 billion of 2-year notes on Tuesday and is planning to sell $39 billion of five-year notes on Wednesday and $28 billion of 7-year notes on Thursday.
COMEX gold for December delivery fell 20 cents to settle at $945.80 an ounce. In currency trading, the dollar rose versus the euro and fell versus the Japanese yen.
A revised reading on GDP in the last quarter is due before the start of trading on Thursday. The weekly jobless claims report is also on tap.
Second-quarter GDP is expected to have contracted at a 1.5% annualized rate, according to economists. That would be steeper than the initially reported 1% rate, but not as sharp as the 6.4% decline reported in the first quarter.
The number of Americans filing new claims for unemployment is expected to have risen to 580,000 from 576,000 in the previous week.
Toll Brothers reports quarterly results in the morning. After the close, tech bellwether Dell reports results.
European shares lost ground, snapping a four-session run of gains, hurt by weakness for mining and oil and gas shares. After notching a fresh annual high early in the session, the pan-European Dow Jones Stoxx 600 index fell 0.6% to 236.54.
The UK's FTSE 100 index shed 0.5% to 4,890.58, while Germany's DAX index lost 0.6% to 5,521.97 and the French CAC-40 index declined 0.3% to 3,668.34.
Bulls thundered their way to fifth successive day of healthy gains as the NSE Nifty index extended its winning streak to shut above the 4,650 levels for the third day. Key indices witnessed a blip in the mid-afternoon hours on the back of weak six key industrial production data.
However, the benchmark indices staged a V-shaped recovery led by gains in the IT, Telecom and the Realty stocks. The Mid-Cap and the Small-Cap indices were in demand as well, in fact the broader indices outperformed the benchmark Sensex and Nifty.
The BSE Sensex surged 81 points or 0.5% at 15,770 after touching a high of 15,831 and a low of 15,670. The index opened at 14,763 against the previous close of 15,688. The NSE Nifty gained by 21 points to shut shop at 4,681.
In Asia, the Nikkei in Japan gained by 1.4% at 10,639 while Australia's S&P/ASX ended higher by 1.1% at 4,454. The Hang Seng index in Hong Kong was up 0.2% at 20,456. Shanghai index in China gained by 1.8% at 2,967.
In Europe, stocks were trading mixed. The FTSE in the UK was up 0.3%. The DAX in Germany was down 0.4% and the CAC 40 index in France was down 0.2%.
Coming back to India, among the BSE sectoral indices, the IT index was the top gainer, gaining 3.3%, followed by the Teck index that was up 2.5%. The BSE Realty index up 1.2% and the BSE Pharma index was up 1%.
The BSE Mid-Cap index gained 1.1% and the BSE Small-Cap index gained by 2%.
Among the 30-components of Sensex, 18 stocks ended in the green and 12 ended in the negative terrain. Among the major gainers were Infosys, Reliance Industries, TCS, Sterlite, RCom and Wipro.
On the other hand, HDFC Bank, HUL, ITC, ONGC and Bharti were among the major laggards.
Outside the frontline indices, the big gainers in the broader market were Aban Offshore, RNRL, Shriram Transport, Gujarat NRe Coke, GE Shipping and Biocon. On the other hand, losers included Jubilant Organosys, Mphasis, Jindal Steel and Apollo Hosp.
Shares of Aban Offshore shot up significantly and rallied over 25% at Rs1536 after the company announced that a contract has been signed for the deployment of 3 newbuild jack-up rigs (from the Deep Driller series) in the Middle East for a period of 3 years each. The estimated revenues from the Contract is approx. Rs29.25bn. The deployment is likely to commence in the third quarter of 2009.
Further, a Contract has been signed for the deployment of a newbuild jack-up rig (from the Deep Driller series) in Latin America for a period of 25.5 months. The estimated revenues from the Contract is approx. Rs4.46bn. The deployment is likely to commence in the third quarter of 2009.
The stock opened at Rs1264 and made an intra-day high of Rs1565 and a low of Rs1264. Total traded volumes stood at 3.8mn shares.
Shares of United Spirits fell to a low of Rs885 in the early trades after United Spirits called off its negotiations with Diageo. The stock however recovered smartly and ended down by 2% at Rs911.
The British firm efforts of acquiring a 15% stake in the United Spirits came to an end after talks of selling minority stake were called off.
The two firms were in talks since early this year for the sale of United Spirits treasury stock created by amalgamation and demergers, which were not traded on exchanges. The deal would have added global brands such as Johnnie Walker Black Label and Smirnoff to the USL stable, which already has McDowell's No.1, Romanov, Royal Challenge and Black Dog in its portfolio
Shares of Educomp gained by 4% to Rs4286 after the board of directors of the company announced that it approved a stock split with a ratio of 1:5. The stock opened at Rs4150 and made an intra-day high of Rs4348 and a low of Rs4150. Total traded volumes stood at 0.3mn shares.
Crude drops for second straight day
Price drop as crude inventories rise
Crude prices dropped for second straight day pared on Wednesday, 26 August, 2009. Prices fell today as energy department reported a rise in crude inventories for last week. The strong dollar also impacted crude prices.
On Wednesday, crude-oil futures for light sweet crude for October delivery closed at $71.43/barrel (lower by $0.62 or 0.9%). Last week, crude ended higher by 6.1%.
For the month of July, 2009, crude ended lower by a marginal 0.6%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 53% since then. Year to date, in 2009, crude prices are higher by 47%.
EIA reported today that U.S. crude inventories rose 200,000 barrels in the week ended 21 August, as imports jumped 14% from the prior week. In the weekly report, the EIA also reported gasoline stockpiles fell 1.7 million barrels last week while distillate fuels, which include diesel and heating oil, rose 800,000 barrels.
The report also detailed that total gasoline supplied, an implied gauge of demand for the fuel, fell 1.1% from a week ago to 9.1 million barrels a day. But total petroleum products supplied rose slightly, to 19.5 million barrels a day, as small increases in jet fuel and residual oil demand offset the decline in gasoline.
In the currency market on Wednesday, the dollar firmed up during the day. The dollar index which weighs the value of dollar against a basket of six other currencies rose by 0.7%.
Also at the Nymex on Wednesday, September reformulated gasoline fell 2.44 cents, or 1.2%, to $1.9826 a gallon and September heating oil fell slightly to $1.852 a gallon.
September natural-gas futures rose 2.1 cents, or 0.7%, to $2.903 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 September delivery closed higher by Rs 19 (0.54%) at Rs 3,523/barrel. Natural gas for September delivery closed lower by Rs 0.4 (0.24%) at Rs 160.2/mmbtu.
Alok Industries
Investors with a short-term perspective can buy Alok Industries. The stock underwent a steep correction in June and July when it plunged from Rs 29 to Rs 15. Things are looking up since then and the stock is in a short-term uptrend since July 13. The uptrend accelerated on Wednesday as the stock moved 7 per cent higher accompanied by strong volumes. Oscillators in the daily chart are just moving in to the bullish zone from neutral, indicating that the short-term rally can extend. The stock also recorded a firm close above the 50-day moving average on Wednesday; that is a positive signal.
We expect the stock to move up to Rs 24.4 in the near-term. Investors can buy the stock with a tight stop at Rs 20.4.
via BL
Precious metals turn little
Prices drop due to the strong dollar
Precious metal prices fell on Wednesday, 26 August, 2009. Prices fell today due to the strong dollar.
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 Wednesday, gold for December delivery ended at $945.8, lower by $0.20 (0.02%) an ounce on the New York Mercantile Exchange. During intra day trading, it fell to a low of $941.2. Last week, gold ended higher by almost 0.6%. Year to date, gold prices are higher by 6.5%.
Gold ended July, 2009 higher by 2.8%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (9%) since then.
On Wednesday, Comex silver futures for September delivery fell by 5.5 cents (0.4%) to $14.255 an ounce. Last week, silver ended lower by 3.9%.
Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 28% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the dollar firmed up during the day. The dollar index which weighs the value of dollar against a basket of six other currencies rose by 0.7%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed higher by Rs 68 (0.45%) at Rs 15,032 per 10 grams. Prices rose to a high of Rs 15,045 per 10 grams and fell to a low of Rs 14,977 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 47 (0.2%) higher at Rs 23,381/Kg. Prices opened at Rs 23,423/kg and rose to a high of Rs 23,546/Kg during the day's trading.
FIIs in selling mode
Outflow of Rs 53.60 on 25 August 2009
Foreign institutional investors (FIIs) sold shares worth a net Rs 53.60 crore on Tuesday, 25 August 2009, as against a huge inflow of Rs 848.60 crore on Monday, 24 August 2009.
FII outflow of Rs 53.60 crore on 25 August 2009 was a results of gross purchases Rs 2039.30 crore and gross sales Rs 2092.90 crore. The BSE Sensex rose 59.72 points or 0.38% to 15,688.47 on that day.
FII inflow in August 2009 totaled Rs 643.60 crore (till 25 August 2009). Foreign funds had bought equities worth Rs 11,625.20 crore in July 2009. FII inflow in calendar year 2009 totaled Rs 36,813.30 crore (till 25 August 2009).
There are a total of 1691 foreign funds registered with the Securities & Exchange Board of India (Sebi).
Gold ETFs emerge as best performers
If you are one of those who invested in gold exchange traded funds
(GETFs) a year ago, the yellow metal has not only turned out to be a great asset protector but also a solid wealth generator. GETFs have given a stellar 28% gains in the last 12 months when the other 26 fund categories — debt, equity and hybrid — have struggled to break the average 20% mark.
What's made gold ETFs more safer is that all of them have same returns (since all the ETFs are tracking the same commodity), while there is huge divergence in the other fund categories — sometimes as high as 40-50 % between the best and worst schemes.
With gold as an asset coming into limelight as the world went into a slump, ETFs tracking metal price rose in tandem as stocks fell.
The gains logged by gold ETFs come in a period when equity funds focussed on banking and FMCG have delivered around 18-19 % returns, GILT (medium and long-term ) schemes have given 13% returns , monthly income plans posted 12% gains and sensex rose 9%, data from fund tracker ValueResearch shows.
Currently there are five gold ETFs such as Gold Benchmark ETF, Kotak Gold ETF, Quantum Gold, Reliance Gold ETF and UTI Gold ETF with more than 1 year history . SBI MF launched its Gold ETF in April this year. With Chinese consumers buying gold aggressively, coupled with onset of the festive season in India, experts predict gold prices will rise further.
"For the last 15 years, dollar has depreciated while gold prices have inched up. For the record, gold has delivered 16-17 % compounded annual growth rate (CAGR) for the past 9 years. If high crude prices continue to push inflation , making gold more attractive as an inflation hedge," Amar Shah, Head of Research (Commodities), Angel Broking, said.
Gold prices in New Delhi market currently trade around Rs 15,200 per 10 grams. Investors have clearly identified gold as a part of their asset allocation strategy , feels Krishnan Sitaraman, director — Crisil FundServices . "Gold's allure lies in the fact that it has proven its mettle during down times.
via ET
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