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Monday, November 26, 2007
Empee Distilleries - ABN Amro bails out
26-NOV-2007,EDL,Empee Distilleries Limite,ABN AMRO BANK NV LONDON BR,SELL,155000,384.21,-
Sensex ends up 395pts, HDFC Bank gains 5%
The Sensex opened with a positive gap of 318 points at 19,171 on the back of positive cues from the global markets. The index touched a high of 19,360 in morning trades.
Intra-day profit-taking saw the index drop to a low of 19,138 in early noon deals. The Sensex, however, ended the day on a firm note at 19,248 - up 395 points (2.1%).
The BSE Metal index surged over 5% to 17,525. The Realty index rallied 3% to 10,081, and the IT index gained 2% at 4098.
The market breadth was fairly positive - out of 2,865 stocks traded, 1,813 advanced, 996 declined and 56 were unchanged today.
MAJOR MOVERS
HDFC Bank zoomed over 5% to Rs 1,644. Bharti Airtel and Reliance Energy soared 3.7% each to Rs 948 and Rs 1,790, respectively.
Tata Steel, ONGC and Hindalco rallied over 3% each to Rs 849, Rs 1,184 and Rs 194, respectively.
Grasim surged 3% to Rs 3,734. DLF and TCS gained 2.7% each at Rs 892 and Rs 985, respectively.
Reliance, BHEL and Wipro moved up 2.5% each to Rs 2,883, Rs 2,605 and Rs 453, respectively.
Satyam, Hindustan Unilever and Bajaj Auto were up over 2% each at Rs 426, Rs 210 and Rs 2,587, respectively.
VALUE & VOLUME TOPPERS
Reliance Petroleum topped the value chart with a turnover of Rs 515.50 crore followed by Jindal Steel (Rs 312.80 crore), Reliance Energy (Rs 201.70 crore), Empee Dist (Rs 176.70 crore) and J P Hydropower (Rs 168.70 crore).
Reliance Petroleum led the volume chart with trades of around 2.46 crore shares followed by Tata Teleservices (1.57 crore), Ispat Industries (1.56 crore), J P Hydropower (1.47 crore) and Reliance Natural Resources (1.03 lakh).
Market Close: Upbeat sentiment but low participation!
Strong rally supported by the global cues propelled Indian indices. Market traded firm till the afternoon session and peered some of its gains as investors preferred profit booking at higher levels. But there was sustained buying in heavyweights which kept market to trade higher. Metals were shining throughout the day and were the star performers like Jindal & Bhushan steel. Host of steel stocks were attracting good buying followed by Realty, Cap goods and Power stocks. Technology space also bounced back and was among the top gainers. Nitco stock fired up after some reports stated that leading FII had picked up 15% stake. Both the Midcap and smallcap indices closed up over 1%. Asian markets had a strong session, barring Shanghai while other Asian Markets closed in green. Europe trading in positive terrain now. Crude at $98 is putting pressure on the Airline and Oil marketing companies as the ATF prices are expected to be hiked on December 1st 2007, but the oil marketing are also hit by the crude prices.
Sensex ended up by 395 points at 19247.539. It was helped up by gains in HDFC Bk (1643.7,+5 percent), Bharti Tele (948,+4 percent), Rel Energy (1789.55,+4 percent), TISCO (849,+3 percent) and ONGC (1184.2,+3 percent). Restricting the gains were in Tata Motors (710.2,-1 percent), SBI (2242.25,0 percent).
Apar Industries Ltd a diversified company having presence in Speciality Oil, Aluminium Conductor and Polymers. It has 3 plants located at Rabale-Thane, Silvassa and Nalagarh - Himchal Pradesh. It is the largest manufacturer of Transformer Oils in India and the second largest manufacturer of high strength overhead power transmission and distribution conductors. The Company earns around 48% of its revenues from the power sector and 42% from Speciality oil and 10% from Polymers. With the buoyancy in the power sector, the two segments of the company are expected to see immense growth. Powers sector the major drive to the company. Last quarter the top line grew by 16% to Rs 418 cr and the bottom line grew by 19%. The company has sold the non performing polymer business to concentrate more on its core business and looking for businesses to expand in power which earns more. The stock is well placed but we believe there could be better opportunities. We have detailed note on this stock. Do read to have clear idea and to know our view on this stock. Today the stock performed well and ended up by 5%.
National Aluminium Corporation (Nalco) was one of the buzzing stock for the day which ended up by 14%. Nalco reported some of its plans in coming future which supported the stock to perform. It has plans invest around Rs 20,000 crore to set up two new greenfield projects an alumina refinery in Andhra Pradesh and an integrated Aluminium complex in Orissa. Nalco has also planed to go for a follow-on public offering including a rights issue to part fund investments. It is also set to rise around Rs 6,000 crore through external commercial borrowings (ECB) to finance equipment imports. Government holds 87.15% stake in the PSU. All the process is on cards which is been discounted in the market price.
Technically Speaking: Markets traded strong following the global upswing, with strong positive breadth. Sensex touched intraday high of 19360 and low of 19138. Sensex turnover was low at Rs 5823 Cr. Market breadth was in favor of Advances, where the Decliners stood at 996, Advances were stood at 1774. Sensex today faced resistance at its 20 DMA of 19360. Low volumes are suggesting lower participation and hence we could see a volatile expiry close this Thursday as the liquidity is likely to be less. Traders can look for shorts if Sensex trades below 19000.
Post Market Commentary
The market closed on an impressive note due to strong buying across the heavy weights scrips. The market got off a good start carrying it from the last closing on Friday and closed with heavy gains. Though the market tumbles in the middle but manages to overcome in the final trading hour of the session. The global cues are in favor which led o the Indian market to trade higher. Most buying is seen Metal, Capital goods, oil & gas and Realty indices scrips. The BSE Sensex surged 394.67 points to close at 19,247.54 and Nifty grew by 123.1 points to close at 5,731.70. The Sensex touched an intraday high of 19,360.23 and low of 19,137.66 during the trading session. Overall, the market breadth was strong as 1,820 stocks are closed higher while 986 are closed lower. Both BSE Mid cap and Small cap grew by 155.75 points and 171.82 points to close at 8,384.25 and 10,343.25 respectively.
BSE Metal index surged by 930.46 points to closed at 17,524.54. Pushed up by Jindal steel (16.74%), NALCO (14.41%), SAIL (5.32%), Ispat Industries (4.60%), Tata Steel (3.47%)
BSE Capital Goods index closed higher by 435.53 points at 19,751.65. Pushing it up are Kirloskar (10.64%), BEML (9.26%), Crompton Greaves (8.45%), Praj Industries (5.59%), Suzlon Energy (4.05%) and SKF (2.38%).
BSE Realty index surged 297.91 points to close at 10,081.27. Pushing it up are Ansal Infra (11.01%), Sobha developers (7.15%), Unitech by (6.05%), Anant Raj (3.41%) and Parsvnath by (2.51%).
BSE oil & gas index surged by 227.81 points to closed at 12,215.28. Jumped by Cairn (4.38%), ONGC (3.35%), HPCL (2.81%), Reliance industries (2.54%) and Indian Oil (1.61%).
BSE Power index grew by 94.38 points to close at 4,376.73 as Crompton Greaves (8.45%), Suzlon energy by (4.05%), Reliance energy by (3.74%), GVK Power (3.67%) closed higher.
BSE IT index closed higher by 81.13 points at 4,098.23. Scrips that grew are NIIT ltd by (10.93%), I-FLEX by (7.47%) at Rs1448.80, Rolta India by (6.41%) at Rs676.10, Wipro by (2.41%)
Market ends upbeat, gains 395 points
Sensex opened on a firm note at 19,171 and rallied further on substantial buying in metal and capital goods stocks. Despite the slowdown in FII inflows, the Sensex rallied further to touch the intra-day high of 19,360 on substantial buying support. The market remained firm above the 19,150 level for the entire trading session as firm Asian and European indices helped investors to pursue buying. However, profit bookings at higher levels dragged the index to its day's low of 19,138, above 285 points its previous close. The market recovered in the afternoon but the Sensex shed some of its profits towards the close. The Sensex finally wrapped up the session with a gain of 2.09% or 395 points at 19,248. The Nifty rose by 2.19% and gained 123 points to close at 5,732.
Among the sectoral indices, the Metal index led the upsurge with gains of 5.61% at 17,525 followed by the BSE Realty index (up 3.05% at 10,081), the BSE CG index (up 2.25% at 19,751) and the BSE Power (up 2.20% at 4,377). The market breadth was extremely positive. Of the 2,865 stocks traded on the BSE 1,820 stocks advanced, 986 stocks declined and 59 stocks ended unchanged.
Out of the 30 Sensex stocks, 28 managed to end in the green while two stocks ended with losses. HDFC Bank was the lead gainer and soared 5.18% at Rs1,644. Bharti Airtel jumped 3.78% at Rs948, Reliance Energy shot up by 3.74% at Rs1,790, Tata Steel advanced 3.47% at Rs849, ONGC moved up by 3.35% at Rs1,184, Hindalco added 3.32% at Rs194 and Grasim gained 2.94% at Rs3,734. Among the laggards Tata Motors and SBI slipped marginally.
Over 2.46 crore Reliance Petroleum shares changed hands on the BSE followed by Tata Teleservices (1.56 crore shares), Ispat Industries (1.56 crore shares), JP Hydro (1.47 crore shares) and Reliance Natural Resources (1.03 crore shares).
Reliance Petroleum registered a turnover of Rs515 crore on the BSE followed by Jindal Steel (Rs312 crore), Reliance Energy (Rs202 crore), Empee Distilleries (Rs176 crore) and JP Hydro (Rs168 crore).
Sensex garners 395 points in global rally
The market ended on a strong note as US shares were buoyed on Friday, 23 November 2007, by a strong start to the US holiday shopping period. Short covering in futures & options segment ahead of expiry of November 2007 derivatives contracts on Thursday, 29 November 2007 also boosted the market. Heavy buying was seen in metal stocks while realty and software stocks also rose. Market breadth was strong. European markets, which opened after Indian market, were in green. Asian markets, which opened before Indian market, were firm.
The 30-share BSE Sensex surged 394.67 points or 2.09% to 19,247.54. Sensex hit a low of 19,137.66 in afternoon trade. At day's low, Sensex was up 284.79 points for the day. Sensex hit a high of 19,360.23 in mid-morning trade. At day’s high of 19,360.23, Sensex had risen 507.36 points.
The broader based S&P CNX Nifty rose 123.01 points or 2.19% to 5731.70.
The BSE Mid-Cap index was up 1.89% to 8,384.25, while the BSE Small-Cap index was up 1.69% to 10,343.25. Both these indices underperformed the Sensex.
The market breadth was strong. On BSE, 1820 shares advanced and 986 shares declined. 59 shares were unchanged. 28 out of 30 shares in the Sensex pack were in green.
BSE clocked a turnover of Rs 5823 crore compared to Friday (23 November 2007)'s Rs 6,348.22 crore.
Nifty November 2007 futures were at 5761.25, a premium of 29.55 points as compared to spot closing of 5731.70.
NSE’s futures & options (F&O) segment turnover was Rs 75903.04 crore, which was higher than Rs 66744.48 crore on Friday, 23 November 2007.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries gained 2.54% to Rs 2882.85. The company has sold 4.01% of the equity share in its subsidiary company Reliance Petroleum (RPL) by transactions through the stock exchanges. The aggregate sale consideration is Rs. 4,023 crore and post-sale RIL’s stake in RPL has come down to 70.99% from 75%.
Reliance Petroleum ended 2.60% lower at Rs 204.05 on huge volumes of 2.46 crore shares on BSE.
India’s second largest telecom service provider Reliance Communications moved up 0.87% to Rs 687.90. The company reportedly plans to sell another 5% stake in its wireless tower business in the second such transaction in this calendar year.
India’s largest commercial bank State Bank of India fell 0.40% to Rs 2242.25.
India's biggest truck maker by revenue Tata Motors slipped 0.62% to Rs 710.20.
The BSE Metal index moved up 5.61% to 17,524.54. It outperformed the Sensex. Jindal Saw gained 8.80% to Rs 814.95, Steel Authority of India (Sail) moved up 5.32% to Rs 265.15, Tata Steel rose 3.47% to Rs 849, Hindalco Industries rose 3.32% to Rs 194.32 and Sterlite Industries gained 2.01% to Rs 896.80.
The BSE Realty index jumped 3.05% to 10,081.27. It outperformed the Sensex. DLF moved up 2.68% to Rs 891.90, Unitech rose 6.05% to Rs 360.50 and Sobha Developer gained 7.15% to Rs 883.10.
The BSE IT index rose 2.02% to 4,098.23. It underperformed the Sensex. Infosys Technologies rose 1.18% to Rs 1576.35, TCS moved up 2.60% to Rs 985, Wipro rose 2.41% to Rs 452.70 and Satyam Computers gained 2.30% to Rs 426.35. The recovery in IT stocks was due to recent weakening of the rupee against the dollar. IT companies derive a lion's share of revenue from exports. They had been hit hard over the past few months due to rupee's surge.
The BSE Capital Goods index moved up 2.25% to 19,751.65. It outperformed the Sensex. Larsen & Toubro gained 1.83% to Rs 4175.50, Bharat Heavy Electricals (Bhel) rose 2.43% to Rs 2605.10, Jaiprakash Associates rose 3.285 to Rs 1679.35 and BEML jumped 9.26% to Rs 1775.70.
The BSE Bankex was up 1.70% to 10,590.95. It underperformed the Sensex. ICICI Bank rose 1.52% to Rs 1157.65, HDFC Bank jumped 5.18% to Rs 1643.70, Union Bank (India) rose 3.54% to Rs 174.20, Punjab national Bank gained 2.94% to Rs 599.60 and Axis Bank rose 0.74% to Rs 936.80.
The BSE Power index moved up 2.20% to 4,376.73. It outperformed the Sensex. Neyveli Lignite jumped 5.44% to Rs 225.95, CESC gained 2.94% to Rs 607.40, Tata Power jumped 2.53% to Rs 1178.80, and NTPC moved up 0.85% to Rs 238.60.
Power utility Reliance Energy gained 3.74% to Rs 1789.55. The company has entered into a joint venture with the country’s main transmission utility Power Grid Corporation of India to execute about 300 kilometre (km) transmission lines from Parbati to Koldam and Koldam to Ludhiana. The company will have a 26% equity holding in the venture while Reliance Energy will have 74% stake.
State-run transmission utility Power Grid Corporation of India was up 0.53% to Rs 152 on volumes of 45.46 lakh shares on BSE.
Walchandnagar Industries, which makes boilers for sugar and cement industry, hit upper circuit of 5% at Rs 8,478.25. The board of the company has approved the issue of one bonus share for each held and splitting each share into five. The board also set a special dividend of Rs 10 a share.
Infrastructure development firm Lanco Infratech rose 2.89% to Rs 444.70 after the company said it has received five letters of acceptance for supply and erection of 33/11 kilo volt substations and 33/11 kilo volt lines in five districts in Andhra Pradesh.
Television maker MIRC Electronics was up 3.48% to Rs 31.20. Sonu Mirchandani, who has a 33% stake in the company, has now offered to buy out his elder brother Gulu’s share in the company.
Sadbhav Engineering, which constructs roads and highways, moved up 3.10% to Rs 1091.35 after the company received road development projects worth Rs 99.01 crore from the government of Chhattisgarh.
Brokerage firm India Infoline spurted 3.42% to Rs 1153.05 on reports that foreign investors Goldman Sachs and Blackstone are in final stages of negotiations to buy a 26% stake in India Infoline Distribution Company, a distribution subsidiary of the brokerage.
Ceramic tiles maker Nitco Tiles soared 6.05% to Rs 302.25 on reports that leading foreign investors Lehman Brothers, Citigroup, Merrill Lynch, Deutsche Bank and Reliance Capital have picked up a total 15% stake in the company for around Rs 170 crore.
Balaji Telefilms, which provides content to most Hindi satellite channels, surged 12.46% to Rs 376.30 on reports that the company plans to offload 10% to 15% stake in its wholly owned subsidiary Balaji Motion Pictures.
Reliance Petroleum clocked the highest turnover of Rs 516.79 crore on BSE. Jindal Steel & Power (Rs 312.80 crore), Reliance Energy (Rs 202.21 crore), Empee Distilleries (Rs 176.85 crore) and Jaiprakash Hydro-Power (Rs 168.93 crore), were the other turnover toppers on BSE in that order.
Reliance Petroleum registered highest volumes of 2.46 crore shares on BSE. Tata Teleservices (1.56 crore shares), Ispat Industries (1.56 crore shares), Jaiprakash Hydro-Power (1.47 crore shares) and Reliance Natural Resources (1.03 crore shares), were the other volume toppers on BSE in that order.
Friday’s US rally boosted stocks across Asia and Europea. In Europe, key indices in France, Germany and United Kingdom were up by between 0.47% to 0.60%.
In Asia, key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up by between 2.23% to 4.65%. China’s Shanghai Composite was down 1.46% to 4,958.849.
The Dow Jones industrial average jumped 181.84 points, or 1.42%, to close at 12,980.88 on Friday, 23 November 2007. The Standard & Poor's 500 Index gained 23.93 points, or 1.69% to finish at 1,440.70. The Nasdaq Composite Index advanced 34.45 points, or 1.34%, to end at 2,596.60.
FII sales caused by redemption pressure in their home countries and fears of a US recession arising from housing slump and credit crisis had spooked stocks across Asian over the past few days. Concerns about the health of the US economy remain.
As per provisional data, FIIs bought shares worth a net Rs 50.40 crore today, 26 November 2007. Domestic institutions bought shares worth a net Rs 274.06 crore today.
FIIs sold shares worth a net Rs 173.40 crore on Friday, 23 November 2007. Domestic funds bought shares worth a net Rs 525.86 crore on that day.
Trading Calls
Buy Power Grid with a stop loss of Rs 135 for targets of Rs 167 and Rs 200.
Buy Neyveli Lignite with a stop loss of Rs 175 for target of Rs 290.
Buy Hindustan Petroleum with a stop loss of Rs 260 for a short-term target of Rs 360.
Buy LIC Housing Finance with a stop loss of Rs 307 for a short-term target of Rs 390.
Morning Call
Market Grape Wine :
In House :
Nifty at a supp of 5572 and 5515 with resis at 5668 and 5725
Mkt to give a gap up opening with selling at higher levels not ruled out.
Intra day: Buy LITL above 443 with a TGT of 465 and a SL of 436
Buy NTPC above 239 with a TGT of 253 and a SL of 234
F&O: Buy CESC with SL
Buy Welspun Guj above 404 with a TGT of 420 and a SL of 398
Out House :
Markets at a support of 18484 & 18686 levels with resistance at 18986 & 19229 levels .
Buy : RIL & RPL bullet
Buy : RELCAP & REL
Buy : JpAsso & JpHydro
Buy : Aban & Skumar
Buy : GeShipping & SCI
Buy : IBUllsreal & IBulls
Buy : IciciBnak & SBIN & HdfcBank
Dark Horse : RPL , REL , JpAsso , Aban, RIL , GeShipping , SBIN & JpHydro
Bullet : RPL & JpHydro with strcit stop loss
US Markets ends strong
US markets recovered and helped to trim down some of the weekly losses made. The recovery was largely due to positive cues from European markets and Canadian stocks posted a triple digit gain. Mean while on hopes of black Friday; markets expect a boost in the retail sales; traditionally this is one of the important day of year sales. This boosted the sentiments of investors and helped the indices to close on strong bounces back. Dow ended up by 181 points at 12,981 while the Nasdaq closed at 2,597 up by 34 points. The S&P index ended up by 24 points at 1441. Asain markets are trading in green following the US Positive move. Expect Indian Markets to have positive start.
Indian ADR?s ended strong. The major gainers were HDFC Bank (+7.74%), Tata Motors (+7.46%), ICICI Bank (+4.74%) and Satyam (+4.67%).
Grey Market Premium - Edelweiss, Jyothy, Kolte Patil
Reliance Power -- 60 to 65
Jyothy Lab. 620 to 690 380 to 400
Edelweiss 725 to 825 765 to 775
Renaissance Jewellery 125 to 150 48 to 50
Kolte Patil 125 to 145 95 to 100
Kaushalya Infra 50 to 60 15 to 17
Mundra Port & Sez 440 600 to 615
Empee Distilleries 400 35 to 40
SVPCL 42 - 3 to -5
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