Numeric Power Systems
India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Monday, September 10, 2007
Post Market Commentary
The markets closed flat as BSE Sensex closed little higher by 6.41 points at 15,596.83 and the Nifty closed little lower by 1.65 points at 4,507.85. The BSE mid cap and Small cap closed higher by 32.74 points and 80.85 points at 6,884.39 and 8,514.37 respectively. The market breadth was strong with 1,653 stocks advanced and 1086 stocks declined.
BSE FMCG index grew by 38.47 points to close at 2,085.10 as ITC (3.74%), United spirits by (2.71%), Tata Tea (2%) and Godrej (1.07%) closed in green.
BSE Capital goods index grew by 41.05 points to close at 13,654.29 as Jyothi structures (2.87%), Alstom projects (2.43%), ABB (1.58%), Punj Lloyd (1.44%), Bhel (0.51%) and Siemens (0.20%) closed higher.
BSE bankex index closed higher by 4.68 points at 8,100.37 as Kotak bank (3.76%), Andhra bank (1.42%), SBI (1.26%), Oriental bank (1.16%), Union bank (0.86%) and PNB (0.56%) closed in positive.
BSE Metal index dropped by 3.03 points to close at 11,606.95 as JSW steel (3.69%), Sterlite (1.45%) and SAIL (2.41%) closed lower while Sesa Goa (1.71%), Bhusan steel (1.36%), Jindal steel (1.08%) and Tata steel (0.72%) closed higher.
BSE Auto Index grew by 10.54 points to close at 4,900.37 as Tata Motors (0.91%), Ashok Leyland (0.13%) and Bajaj Auto (0.11%) closed in positive while Hero Honda (1.04%) and Mahindra and Mahindra (0.45%) closed in negative.
BSE oil & gas index increased by 74.16 points to close at 8,259.93 as RPL (4.48%), BPCL (3.65%), HPCL (3.39%) and IPCL (1.79%) closed higher while ONGC (2.19%) and GAIL (0.24%) are closed lower.
BSE IT index slipped by 88.81 points to close at 4,570.89 as HCL Tech.(5.23%), TCS (2.82%), Wipro (2.39%) Infosys (1.96%) and Satyam (1.67%) closed in red.
BSE Health Care Index closed higher by 15.13 points at 3,720.81 as Orchid chemeicals (4.28%), ranbaxy (2.17%), Divi''s lab (1.04%), Lupin (0.67%) closed higher while Glennmark (48.13%) closed in red due to stock split.
Close: Global selloff fails to dampens the momentum
The US selloff on Friday had the Asian markets tanking in early morning trades. This had the markets open on a weaker note. Investors have been nervously sitting on worries that US is headed for a recession. Indices traded ranged manner throughout the day. Selected stocks in FMCG, Capital goods and Power provided some support at the lower levels. However IT pivotal were weak on fears of a very weak US economy which could affect business near term. Small cap and Mid cap indices outperformed the index heavy weights. Asian markets recovered some of the lost gains but ended in red, European indices started off in red.
Sensex ended up by 6 points at 15596.83. It was helped up by gains in ITC (184.5,+4 percent), Guj Ambuja (144.6,+3 percent), Ranbaxy (418.8,+2 percent), NTPC (191.15,+2 percent) and Rel Energy (864.25,+2 percent). Restricting the gains were TCS (1046.95,-3 percent), Wipro (466.95,-2 percent), ONGC (832.1,-2 percent), Infosys (1871.5,-2 percent) and Satyam (442.25,-2 percent).
We had a note on Navneet Publication. The company seems headed the Educomp way. It has managed to develop content which it has already sold to 20 schools in Gujarat. The e-content for Maharashtra is slated to be online by November. This e-initiative should change the face of the company from being a laid back one to one that is leveraging its position in the Education space using all available media. Do read the note and decide wether its ready for a rerating.
We had a note on Dhanus Technologies, the IPO has opened for subscription today. Clearly its overpriced and the promoters are leaving nothing on the table. The risks for the busniess are high and the business of Fleet Trac which we like is too fledgling to get this kind of valuation. Best to avoid this one is what we suggest.
Easun Reyrolle Manufacturer of the key elements that go into a substation transformers, tap changers, switchgear and power protection control and automation systems has reported that board has decided to raise long term funds upto Rs 245.42 crore for its expansion and diversification plans in the country and abroad. The GDR / fund raising plans had the stock up backed by the company's expansion plans. The stock ended up 10%.
Technically speaking: Markets traded narrow ranged with a smart recovery. Sensex touched intraday high of 15626 and low of 1363. Support is seen at 15,350 and Resistance is at 15,695 levels. Overall market turnover stood good at Rs 4026 Cr. Market breadth was in favor of Advances, where the Advances stood at 1682, while Declines were 1083. Technically Sensex remains upward biased unless it breaks 15270. Thats the level to watch out for. On the upper side Sensex needs to quickly create a new high.. else it will be termed as a weak bounce.
Sensex recovers but ends flat
The market wiped out a loss of over 260 points incurred during the intra-day trades after a strong bout of buying led by ITC, Ambuja Cement and NTPC in the afternoon changed the sentiment to bullish. The Sensex resumed 176 points lower at 15,414 following the weakness in Asian indices and crashed to the day's low of 15,364 on relentless selling pressure amid high volatility. The market showed strong optimism thereafter and the Sensex witnessed a sharp turn-around as gains in heavyweight, FMCG, oil and consumer durable stocks propelled it to an intra-day high of 15,626. The market turned extremely choppy and gyrated between the positive and negative territories for the later part of the trading session and the Sensex closed with a gain of six points at 15,597. The Nifty ended two points higher at 4,508.
The market breadth was marginally positive. Of the 2,798 stocks that traded on the BSE, 1,650 stocks advanced, 1,087 stocks declined and 61 stocks ended unchanged. Most of the sectoral indices ended in the green. The BSE FMCG index advanced 1.88% at 2,085 followed by the BSE CD index (up 1.53% at 4,548) and the BSE Oil & gas index (up 0.91% at 8,260). However, the BSE IT index slipped 1.91% at 4,571, the BSE Teck index (down 1.01% at 3,605) and the BSE Metal index (down 0.03% at 11,606).
Among the Sensex stocks, FMCG major ITC was the leading gainer and its stock price soared 3.74% at Rs185. Among the other stocks, Ambuja Cement advanced 3.25% at Rs145, Ranbaxy jumped 2.17% at Rs419, NTPC gained 2.14% at Rs191, Relance Energy moved up by 1.63% at Rs864, Reliance Industries added 1.32% at Rs1,987 and SBI surged 1.26% at Rs1,641. Among the laggards, TCS slipped 2.82% at Rs1,047, Wipro shed 2.39% at Rs467, ONGC declined by 2.19% at Rs832, Infosys fell by 1.96% at Rs1,872 and Satyam Computer lost 1.67% at Rs442.
Over 2.25 crore IFCI shares changed hands on the BSE followed by Tata Teleservices (88.84 lakh shares), Nagarjuna Fertilisers (83.12 lakh shares), IKF Technologies (80.90 lakh shares) and Nandan Exim (64.28 lakh shares).
IFCI registered a turnover of Rs164 crore on the BSE followed by Reliance Industries (Rs122 crore), Aptech (Rs106 crore), Reliance Petroleum (Rs74 crore) and SBI (Rs72 crore).
Sensex settles a tad below 15,600 following strong intra-day rebound
The market which opened on a weak note, recovered all the lost ground to post marginal gains, on strong buying in index pivotals, especially Reliance Industries. However IT pivotals stayed weak, on fears of US economy heading towards recession. The market breadth was strong on BSE in contrast to initial weakness.
The market had opened on a weak note following a sell-off in US stocks on Friday, 7 September 2007, after data showed US firms cut 4,000 jobs last month, the first such decline since August 2003.
The BSE 30-share Sensex rose 6.41 points or 0.04% at 15,596.83. It opened with a 176.84 points downward gap at 15,413.58 and slipped further to touch a low of 15,363.53. However, the index witnessed a sharp pull-back from lower levels to hit a high of 15,626.28
At the day's low of 15,363.53, the Sensex had lost 226.89 points for the day. At day’s high of 15,626.28, it had gained 35.86 points for the day. Sensex oscillated 262.75 points for the day
The BSE Sensex is now 272.02 points away from its all time high of 15,868.85 hit on 24 July 2007.
The S&P CNX Nifty was down 1.65 points or 0.04% at 4,507.85. The Nifty September 2007 futures settled at 4,500, a discount of 7.85 points as compared to spot closing
The market breadth was strong on BSE, with 1,682 shares advancing as compared to 1,083 that declined, while 58 remained unchanged. This is in sharp contract to that of opening session, when 827 shares declined, 570 rose and 31 remaining unchanged.
The BSE Mid-Cap Index rose 0.48% to 6,884.39, while the BSE Small-Cap Index gained 0.96% to 8,514.37. Both these indices outperformed the Sensex.
The BSE Small-Cap Index hit an all time high of 8,525.39 in intra-day trade today. From a recent low of 7424.39 on 23 August 2007 the BSE Small-Cap index rose 13.59% to 8433.52 on 7 September 2007.
The BSE Mid-Cap index is within striking distance from its all time high of 6,909.25 hit on 7 September 2007.
The total turnover on BSE amounted to Rs 4,026 crore as compared to Rs 4,890 crore on Friday, 7 September 2007. The NSE F&O turnover was Rs 37,333.48 crore as compared to Rs 38,666.44 crore on Friday, 7 September 2007.
Most of the sectoral indices on BSE posted gains. The BSE Oil and Gas Index (up 0.91% at 8,259.93), BSE Consumer Durables index (up 1.53% to 4,548.44), BSE Realty index (up 0.81% to 7,531.12), BSE PSU index (up 0.54% to 7,327.62), BSE Health Care Index (up 0.41% at 3,720.81), BSE Metal Index (down 0.03% at 11,606.05), BSE Capital Goods Index (up 0.30% at 13,654.29), BSE Auto Index (up 0.22% at 4,900.37), BSE Bankex (up 0.06% at 8,100.37), and BSE FMCG Index (up 1.88% at 2,085.10) outperformed the Sensex.
However, the BSE TecK index (down 1.01% to 3,605.36), and BSE IT Index (down 1.91% at 4,570.89) were underperformers.
From the 30-member Sensex pack, 16 gained while the rest slipped.
IT shares were weak on fears that the US economy may be headed into a recession. India’s top software services exporter by revenue TCS lost 2.97% to Rs 1045.30 on 2.72 lakh shares. It was the top loser from Sensex pack.
Other IT pivotals - Infosys Technologies (down 2.06% to Rs 1869.45), Wipro (down 2.45% to Rs 466.70), and Satyam Computers (down 1.39% to Rs 443.50) - declined. IT firms derive over 50% of their revenue from exports to the US.
From a recent low of 4294.86 on 21 August 2007, the BSE IT index had risen 8.49% to 4659.70 on 7 September 2007.
The Indian rupee recovered from an initial fall that was caused by fears about a reversal in risk appetite after weak US job data triggered a sell-off in Asian equity markets. Rupee was hovering at 40.64, a bit stronger than Friday (7 September 2007)’s close of 40.6875/6975.
Oil & Natural Gas Corporation (ONGC), the country’s largest oil exploration company by market capitalisation, slipped 2.20% to Rs 832. It went Rs 13 per share ex-dividend from today. ONGC’s shares have face value of Rs 10 each.
ICICI Bank (down 0.76% to Rs 912), HDFC (down 1.65% to Rs 2095) and Hindalco Industries (down 1.56% to Rs 154.50) were the other losers from Sensex pack.
India’s largest cigarette manufacturer ITC advanced 3.80% to Rs 184.60 on 15.44 lakh shares. It was the top gainer from the Sensex pack. As per recent reports, after getting approval from the shipping ministry, Kolkata Port Trust (KoPT) may give land to ITC for expanding its existing cigarette factory
Cement stocks Ambuja Cements (up 2.82% to Rs 144) and Grasim (up 0.93% to Rs 3212) edged higher on fresh buying.
India’s third largest pharma company by revenue Ranbaxy Laboratories gained 2.21% to Rs 418.95. World Health Organisation (WHO) has included the company's three drugs for treatment of AIDS in its pre-qualification list. With the new additions, 15 Anti Retroviral (ARV) products of the company are now in the WHO's pre-qualification list.
NTPC, the nation’s largest power generation company, rose 2.48% to Rs 191.80. The stock hit a record high of Rs 192. As per reports, NTPC is in talks with established players to manufacture power plant equipment.
India’s largest private sector company by market capitalisation and oil refiner Reliance Industries (RIL) staged a sharp recovery from day’s low of Rs 1945. It rose 1.27% to Rs 1986.45 on 6.19 lakh shares. It is now at a striking distance of its all-time high of Rs 1999.30 hit on 5 September 2007. RIL today, 10 September 2007, reached an agreement to acquire assets of Hualon, a leading polyester producer in Malaysia. This acquisition will bestow RIL with more than 7% global market share in polyester fibre and yarn.
Auto stocks rebounded from early lows on value buying. Tata Motors (up 0.79% to Rs 702, off its day’s low of Rs 683.05), Maruti Udyog (up 0.81% to Rs 879.95, off its day’s low of Rs 860), and TVS Motor Company (up 13.44% to Rs 73, off its day’s low of Rs 63.90) recovered from their lows.
Among side counters, Godawari Power & Ispat (up 10% to Rs 208.65), International Conveyors (up 10% to Rs 272.05), Parsoli Corporation (up 10% to Rs 56.10), Easun Reyrolle (up 10% to Rs 252.90), Artson Engineering (up 14.33% to Rs 53.50) and BPL (up 14.96% to Rs 68.40) surged.
Roto Pumps (down 8.17% to Rs 68), ITD Cementation (down 6.08% to Rs 455), and Freshtrop Fruits (down 6.43% to Rs 137.60) slumped.
IFCI topped the turnover chart on BSE notching turnover of Rs 164 crore followed by Reliance Industries (Rs 123 crore), Aptech (Rs 106 crore), Reliance Petroleum (Rs 74 crore) and State Bank of India (Rs 72.80 crore).
Brokerage shares hogged limelight on momentum buying ahead of listing of Motilal Oswal Financial Services (MOFS) on Tuesday, 11 September 2007. Emkay Shares & Stock Brokers (up 20% to Rs 154.85), JRG Securities (up 11% to Rs 56.40), Khandwala Securities (up 3.04% to Rs 47.40), Prime Securities (up 4.60% to Rs 100), India Infoline (up 9.79 to Rs 743) and Geojit Financial Services (up 7.12% to Rs 45.90) surged
MOFS fixed the IPO price at the top end of the Rs 725 - RS 825 per share price band. At the IPO price of Rs 825, PE works to 31.7 based on the consolidated year ended March 2007 EPS of Rs 26. The IPO closed on 20 August 2007 with 27.41 times subscription.
Gammon India plunged 8.92% to Rs 420 after an under-construction flyover it was constructing in Hyderabad collapsed yesterday, 9 September 2007. The collapse of the flyover could affect Gammon's ability to get new contracts.
Hindustan Zinc rose 0.11% to Rs 713.35. As per reports, it has lowered prices of the metal by Rs 2900, or 2.10% , to Rs 136300 a metric ton. Lead prices were also lowered by 1.2%, to Rs 137500 a ton.
Corporation Bank rose 0.93% to Rs 338 after it said it said after trading hours on Friday, 7 September 2007, it has sold its stake in the National Stock Exchange for Rs 35 crore.
Carborundum Universal gained 0.31% Rs 180.40 after it said after trading hours on Friday, 7 September 2007, it had acquired Russian firm Volzhsky Abrasive Works for $37 million. The company had announced the acquisition in June 2007.
Compressor maker Ingersoll Rand (India) rose 2.49% to Rs 353.50 after its board approved sale of its utility equipment business to South Korean firm Doosan Infracore for Rs 103 crore
Steel pipes and industrial tools maker Zenith Birla (India) rose 5.16% to Rs 35.65 after it said after trading hours on Friday, 7 September 2007, its board would meet on 14 September 2007 to consider spinning off its tool manufacturing division.
TRF rose 3.88% to Rs 1095 after it said before trading hours on Monday, 10 September 2007, its board has approved buying 51% stake in YORK Transport Equipment (Asia) PTE Ltd of Singapore for an undisclosed sum.
Electrosteel Castings rose 5.42% to Rs 471.95 after it fixed 24 September 2007 as the record date for the purpose of stock-split of equity shares to 10 shares of Re 1 in lieu of 1 equity share of Rs 10 each. The company made this announcement after market hours on Friday, 7 September 2007
Nagarjuna Fertilizers & Chemicals rose 1.89% to Rs 43.20 while Bongaigaon Refinery & Petrochemicals jumped 5.92% to Rs 59.95. National Stock Exchange said after trading hours on Friday, 7 September 2007, fresh positions cannot be created in the derivatives contracts of Nagarjuna Fertilizers & Chemicals and Bongaigaon Refinery & Petrochemicals. The ban in these two derivatives contracts is because the open interest has crossed 95% of the limit.
Aptech rose nearly 4.14% to Rs 380.70. Aptech said late on Friday, 7 September 2007, Bear Stearns & Co has sold 1 million shares or a 2.32% stake in the company to reduce its stake to 3.5%.
Kirloskar Brothers rose 0.1% to Rs 485 after the company said during trading hours today, 10 September 2007, it had acquired Gondwana Engineers for Rs 7.63 crore. Gondwana specialises in various water, sewage and effluent treatment plants.
Most of the European markets, which opened after Indian markets, were trading lower. Key benchmark indices in Germany (down 0.01% to 7,435.63) and France (down 0.05% to 5,527.51) declined. However United Kingdom’s FTSE 100 index rose up 0.05% to 6,194
Asian markets which opened before Indian markets, 10 September 2007, settled lower. Japan's Nikkei (down 2.22% at 15,764.94), Seoul Composite (down 2.60% to 1,835.58), Taiwan Weighted (down 0.89% to 8,937.58) and Straits Times (down 1.35% to 3,441.84) slipped.
However, Hang Seng (up 0.07% at 23,999.70) and China’s Shanghai Composite (up 1.48% to 5,355.09) rose after initial weakness.
US stocks tumbled on Friday, 7 September 2007, following weak job data. Dow Jones Industrial Average tanked 2,49.97 points, or 1.87%, to 13,113.38. The tech-laden Nasdaq Composite index lost 48.62 points, or 1.86%, to 2,565.70.
The Sensex rose 271.82 points, or 1.77%, to 15,590.42 in the week ended 7 September 2007. The S&P CNX Nifty was up 45.5 points, or 1.01%, to 4,518.60 in the week.
US light crude fell 15 cents to $76.55 a barrel while London Brent crude declined 17 cents to $74.90 a barrel today, 10 September 2007.
Meanwhile, a panel set up by the government to look into Left front's concerns over Indo-US nuclear deal is expected to hold its first meeting on Tuesday, 11 September 2007.
Gold at 16 month high
Gold edged up today and held within sight of a 16-month high hit last week as its status as a safe investment came under the spotlight amid a sell-off in stocks, but a firmer yen put pressure on Tokyo futures.
Spot gold was at $700.50/701.30 an ounce as of 0307 GMT, edging up from $699.90/700.70 late in New York on Friday, when it rallied to its highest since mid-May 2006 at $707.10.
Capital inflows continued into gold-backed exchange traded funds (ETFs) listed overseas despite a slump on Wall Street after surprisingly bleak US jobs data, underlining investor confidence in bullion.
Analysts said the data worsened prospects for the dollar and encouraged bullion buying. A lower dollar makes gold, which is denominated in the U.S. currency, cheaper for investors holding the euro and other foreign currencies.
“Investors are getting more confident that bullion has hit a floor and is on the way back up,” said Yuki Sonoda, advisor at Daiichi Commodities Co Ltd.
“Finally, a gleam is in sight,” he said, adding that an increased amount of gold held by
ETFs showed steady appetite for gold by pension funds and other long-term investors.
The latest data showed gold held in New York-listed StreetTRACKS Gold Shares NYS, the world’s largest gold-backed ETF, rose to 549.42 tonnes, another record high, up 33.98 tonnes or 6.6 percent from the start of the month.
But yen-denominated gold futures on the Tokyo Commodity Exchange came under pressure from a weakening dollar versus the yen.
A higher yen deflates yen-based gold futures, encouraging domestic players who had bought to unwind long positions.
The benchmark August 2008 gold futures fell 19 yen per gram, or 0.7 percent, to 2,574 yen.
The dollar slid to a 15-year low against a basket of major currencies on Monday as Friday’s data showing companies cut 4,000 jobs last month, the first such decline since August 2003, prompted investors to expect a hefty Federal Reserve rate cut next week to protect the economy from the housing market crisis.
Against the yen, it fell 0.4 percent from late U.S. trade to 112.95 yen sliding back towards a 14-month low of 111.60 yen. The euro edged up to $1.3775 jumping back near a high of $1.3853 hit in July -- the highest since the single currency was first launched in 1999.
Platinum rose to $1,292.50/1,297.50 an ounce from $1,286.10/1,293.10 late in New York. It hit an intraday high of $1,295 an ounce on Monday -- its highest in five weeks.
The market received support from news on Friday that a South African labour union had called off a strike by some 1,500 workers at a smelter and two refining operation of Anglo Platinum , the world’s biggest platinum producer.
Palladium inched up to $333/338 an ounce from $332.50/336.70 an ounce.
Silver inched down to $12.50/12.54 ounce from $12.51/12.54 an ounce late in New York on Friday, when it rose to its highest in more than three weeks at $12.67. Precious metals prices at 0322 GMT Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 700.40 0.20 +0.03 10.18 Spot Silver 12.50 -0.10 -0.79 -2.72 Spot Platinum 1292.50 3.00 +0.23 14.18 Spot Palladium 333.00 -1.30 -0.39 0.30 TOCOM Gold 2574.00 -19.00 -0.73 5.28 56423 TOCOM Platinum 4694.00 -46.00 -0.97 10.34 16455 TOCOM Silver 457.40 -4.90 -1.06 -7.28 1111 TOCOM Palladium 1240.00 -23.00 -1.82 -1.20 109 Euro/Dollar 1.3769 Dollar/Yen 112.95 TOCOM prices in yen per gram, except for silver which is in yen per 10 grams, spot prices in $ per ounce.
Via Mint
Grey Market- Magnum Venture, Power Grid, Motilal Oswal
Power Grid Corporation 44 to 52 13 to 14
Magnum Venture 27 to 30 3 to 4
Dhanus Tech. 280 to 295 110 to 115
Kaveri Seeds 150 to 170 25 to 28
Allied Computer 12 0
Motilal Oswal 825 110 to 115
Markets to open lower
Equities are expected to open lower Monday tracking global cues. Just when the indices were set for new highs, the unexpected fall in US job data, which raised concerns of a recession in the economy, will hurt sentiment.
Friday, the Labor Department in Washington said that employers cut 4,000 workers from payrolls in August, compared with a gain of 68,000 in July, while economists had forecast 110,000 jobs were created. The news plunged US indices down nearly 2 per cent. Asian stocks too tumbled Monday on US economic fears.
Back home, the market will remain nervous for the next seven days of trade till September 18, when US Federal Reserve is expected to announce a rate cut, which will set the course for the market direction.
Friday, National Stock Exchange’s Nifty closed down 9 points or 0.2 per cent at 4509.5. The index touched a high of 4547.75 and low of 4499.9 intra-day. Bombay Stock Exchange’s Sensex ended down 26 points or 0.17 per cent at 15,590.42, making a high of 15,716.06 and low of 15,565.22.
Foreign institutional investors were net buyers of equity worth Rs 384.68 crore Friday, while domestic institutional investors net sold equity worth Rs 99.43 crore.
Morning Call - Sep 10 2007
Market Grape Wine :
In House :
Nifty at a supp of 4403 and 4445 levels with resistance at 4550 and 4587 levels .
Sell : Intraday : RelCap : below 1224 target 1208 s/l of 1231
Buy : Intraday : GMrInfra : above 765 target of 786 s/l of 757
Sell L Intraday : in F&OHclTech : below 308 target 296 s/l of 312
Sell : Intraday : Gesco below 508 target 498 s/l of 515
Out House :
Markets at a support of 15324 & 15243 levels with resistance at 15616 & 15786 levels .
Buy : REL at dips
Buy : RIL at dips
Buy : Titan at dips
Buy : Indiacement at dips
Buy : SKumar at dips
Buy : JpHydro , TTML & Nagarfert at dips
Buy : Tisco at dips
Buy : IOlBroad & Aban
Dark Horse : RIL , REL, IOLBroad, NTPC , SBIN & Kajaria
Pre Open Market Commentary
Indian market is likely to have a negative opening on the back of negative global cues. On Friday, the Indian markets ended on a negative note, as BSE Sensex closed lower by 25.89 points at 15,590.42 while Nifty slipped by 9.1 points to close at 4,509.50. We expect the market to remain cautious during the trading session.
On Friday, the US market closed in red. The Dow Jones Industrial Average declined by 249.97 points to close at 13,113.38. The Nasdaq Composite Index fell by 48.62 points to close at 2,565.70. The S&P 500 index decreased by 25 points to close at 1,453.55.
Indian ADRs ended in negative territory. In technology sector, Patni computers dropped by (4.45%) along with Infosys by (2.65%), Satyam by (2.56%) and Wipro by (1.74%). In banking sector, HDFC bank and ICICI bank fell by (2.85%) and (2.12%) respectively. VSNL and MTNL closed lower by (4.88%) and (1.81%) respectively.
The major stock markets in Asia are trading weak. Japan''s Nikkei trading lower by 340.49 points to trade at 15,781.67. Hang Seng slipped by 370.12 points to trade at 23,612.49. Taiwan weighted dropped by 83.02 points to trade at 8,935.06. Singapore Strait times trading lower by 73.60 points at 3,415.37.
Today, Nifty has support at 4,340 and resistance at 4,605 and BSE Sensex has support at 15,240 and resistance at 15,630.
Domestic bourses may track weak global equities
The market is expected to edge lower due to fresh worries about the US economy. Domestic institutions may step up buying at lower level in case there is a sharp fall. Domestic private insurance firms have been putting in money raised through unit linked insurance plans (with a very high weighting in equity) in equities.
On the other hand, foreign institutional investors (FIIs) may press sales due to slide in rupee against the US dollar. Rupee was hovering at 40.73 against the dollar in early deals, weaker than Friday (7 September 2007)’s close of 40.6875/6975. The rupee has been one of the best performing currency against the dollar in Asia in the current calendar year. But the current slide in the rupee may prompt hedge funds to sell Indian equities so that they can still capture some of this year’s strong currency gains.
FIIs have made substantial buying this month. Their net inflow in the first few days of September 2007 totaled Rs 2191.60 crore (till 6 September 2007). As per provisional data, FIIs bought shares worth a net Rs 385 crore on Friday, 7 September 2007. Domestic institutions sold shares worth a net Rs 99 crore on that day.
Asian markets edged lower today, 10 September 2007, after the data released on Friday, 7 September 2007, showed US payrolls shrank in August 2007 for the first time in four years which raised fears that the world's largest economy, Asia's top export destination, was headed into recession. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore, Taiwan, and Indonesia were down by between 0.8% to 2.5%.
US stocks tumbled on Friday, 7 September 2007 following weak job data. Dow Jones Industrial Average tanked 249.97 points or 1.87% at 13,113.38. The tech-laden Nasdaq Composite index lost 48.62 points or 1.86% at 2,565.70.
The BSE 30-share Sensex declined 25.89 points or 0.17% at 15,590.42 on Friday, 7 September 2007. The S&P CNX Nifty shed 9.10 points or 0.20% at 4509.50 on that day.
India's wholesale price index rose 3.79% per annum in the 12 months to 25 August 2007, lower than the previous week's 3.94% due to a decline in some food prices, government data showed on Friday, 7 September 2007. Inflation is at its lowest level since it touched 3.70% in the week ended April 15, 2006.
Subscribe to:
Posts (Atom)