| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Jindal Cotex | 70 to 75 | 3.50 to 4 | -- |
| Globus Spirits Ltd. | 90 to 100 | 5 to 7 | -- |
| Oil | 950 to 1050 | 85 to 90 | 1800 to 1900 (+ 250 Form Commission) |
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Thursday, September 03, 2009
Grey Market - Globus Spirits, Oil India, Jindal Cotex
Pre Session Commentary - Sep 3 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened with remarkable gains. The Asian markets have rebound today after suffering losses in the past few days, which will also help domestic as well as European traders gain some firmness. In the domestic arena one could witness some buying momentum across broader level, however subdued trading with low volume is inevitable during the day’s trading.
On Wednesday, Markets closed the today’s volatile session on a lackluster note after showing gains during the mid session on the back of far end profit booking across the selective indices. Stocks managed to gain ground after subdued opening on some buying sentiment. However, market pared most of its gains during last hours on weak cues from the global markets and lower US index futures. Investors selected to tread a cautious path due to lack of prominent triggers. The BSE Sensex ended below 15,600 level and NSE Nifty closed below 4,650 mark. From the sectoral front, Realty, Auto, Capital Goods, Power, Bank and Metal stocks witnessed most of the selling from these baskets. BSE Midcap and Smallcap stocks also remained under pressure. However, IT, Teck and Pharma stocks gained favour from the market.
The BSE Sensex closed lower by 83.73 points or (0.54%) at 15,467.46 and NSE Nifty ended down by 17 points or (0.37%) at 4,608.35. BSE Mid Caps and Small Caps closed with losses of 39.46 and 22.15 points at 5,758.03 and 6,869.02 respectively. The BSE Sensex touched intraday high of 15,628.10 and intraday low of 15,392.68.
On Wednesday, US stock markets ended down. The markets traded range bound during the day with low volume trade. Economic data dominated the market headlines. ADP Employment Change Report for August reported that 298,000 private jobs were lost last month which proved disappointing since economists were expecting 250,000 job losses. In the FOMC minutes of meeting conducted on August 15, the FOMC has expressed concerns about the weakness in labor markets and job losses. Further on the brighter side, productivity for second quarter surged a remarkable 6.6% which is sharpest since 2003 and also better than expected 6.4%. On the other hand Factory orders made during the month of July surged 1.3% but still short of 2.2% that was generally accepted. US light crude oil futures for October delivery closed flat at $68.05 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 29.93 points at 9,280.67, NASDAQ index closed higher by 1.82 points at 1,967.07 and the S&P 500 (SPX) also closed lower by 3.29 points at 994.75.
Today the major stock markets in Asia opened positive. The Shanghai Composite is trading high by 87.58 at 2,802.55, Hang Seng is higher by 172.05 points at 19,694.05. Further Japan''s Nikkei is low by 41.78 points at 10,238.68. Strait times is also trading up by 23.68 points at 2,593.61. Taiwan Weighted is up by 62.63 points at 7,102.40.
Indian ADRs ended mixed in yesterday''s trade. In the IT space, Satyam was the top gainer with 1.99% gain. Infosys & Patni gained 0.70% & 0.24% respectively while Wipro was down 1.53%. In the telecom space, Tata Communication was up 1.89%. MTNL was down 0.53%. In the banking space, HDFC Bank surged more than 1%. ICICI Bank gained 0.5%. Tata Motors was the biggest loser with 2.03% loss. Sterlite Industries was down 0.77%. Dr. Reddys ended in green with modest gain of 0.32%.
The FIIs on Wednesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 2,596.80 Crore and gross debt purchased stood at Rs 519.50 Crore, while the gross equity sold stood at Rs 2,899.30 Crore and gross debt sold stood at Rs 286.10 Crore. Therefore, the net investment of equity and debt reported were Rs (302.50) Crore and Rs 233.40 Crore respectively.
On Wednesday, Indian Rupee closed at 48.96/97 per dollar, 0.2% weaker than its previous close at 49.05/06. The green back’s weakness against other currencies helped local currency gain strength.
On BSE, total number of shares traded were 44 Crore and total turnover stood at Rs 5,440.54 Crore. On NSE, total number of shares traded were 93.21 Crore and total turnover was Rs 16,832.45 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 79736359 shares, followed by Suzlon Energy with 55055589, DLF with 13157780, Reliance Comm with 12299261 and Tata Steel with 10591265 shares.
On NSE Future and Options, total number of contracts traded in index futures was 771316 with a total turnover of Rs 16,773.23 Crore. Along with this total number of contracts traded in stock futures were 535275 with a total turnover of Rs 16,858.45 crore. Total numbers of contracts for index options were 1196136 with a total turnover of Rs 28,084.99 Crore and total numbers of contracts for stock options were 52984 and notional turnover was Rs 1,771.10 Crore.
Today, Nifty would have a support at 4,544 and resistance at 4,665 and BSE Sensex has support at 15,236 and resistance at 15,598
Pre Session Commentary - Sep 3 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened with remarkable gains. The Asian markets have rebound today after suffering losses in the past few days, which will also help domestic as well as European traders gain some firmness. In the domestic arena one could witness some buying momentum across broader level, however subdued trading with low volume is inevitable during the day’s trading.
On Wednesday, Markets closed the today’s volatile session on a lackluster note after showing gains during the mid session on the back of far end profit booking across the selective indices. Stocks managed to gain ground after subdued opening on some buying sentiment. However, market pared most of its gains during last hours on weak cues from the global markets and lower US index futures. Investors selected to tread a cautious path due to lack of prominent triggers. The BSE Sensex ended below 15,600 level and NSE Nifty closed below 4,650 mark. From the sectoral front, Realty, Auto, Capital Goods, Power, Bank and Metal stocks witnessed most of the selling from these baskets. BSE Midcap and Smallcap stocks also remained under pressure. However, IT, Teck and Pharma stocks gained favour from the market.
The BSE Sensex closed lower by 83.73 points or (0.54%) at 15,467.46 and NSE Nifty ended down by 17 points or (0.37%) at 4,608.35. BSE Mid Caps and Small Caps closed with losses of 39.46 and 22.15 points at 5,758.03 and 6,869.02 respectively. The BSE Sensex touched intraday high of 15,628.10 and intraday low of 15,392.68.
On Wednesday, US stock markets ended down. The markets traded range bound during the day with low volume trade. Economic data dominated the market headlines. ADP Employment Change Report for August reported that 298,000 private jobs were lost last month which proved disappointing since economists were expecting 250,000 job losses. In the FOMC minutes of meeting conducted on August 15, the FOMC has expressed concerns about the weakness in labor markets and job losses. Further on the brighter side, productivity for second quarter surged a remarkable 6.6% which is sharpest since 2003 and also better than expected 6.4%. On the other hand Factory orders made during the month of July surged 1.3% but still short of 2.2% that was generally accepted. US light crude oil futures for October delivery closed flat at $68.05 per barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 29.93 points at 9,280.67, NASDAQ index closed higher by 1.82 points at 1,967.07 and the S&P 500 (SPX) also closed lower by 3.29 points at 994.75.
Today the major stock markets in Asia opened positive. The Shanghai Composite is trading high by 87.58 at 2,802.55, Hang Seng is higher by 172.05 points at 19,694.05. Further Japan''s Nikkei is low by 41.78 points at 10,238.68. Strait times is also trading up by 23.68 points at 2,593.61. Taiwan Weighted is up by 62.63 points at 7,102.40.
Indian ADRs ended mixed in yesterday''s trade. In the IT space, Satyam was the top gainer with 1.99% gain. Infosys & Patni gained 0.70% & 0.24% respectively while Wipro was down 1.53%. In the telecom space, Tata Communication was up 1.89%. MTNL was down 0.53%. In the banking space, HDFC Bank surged more than 1%. ICICI Bank gained 0.5%. Tata Motors was the biggest loser with 2.03% loss. Sterlite Industries was down 0.77%. Dr. Reddys ended in green with modest gain of 0.32%.
The FIIs on Wednesday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 2,596.80 Crore and gross debt purchased stood at Rs 519.50 Crore, while the gross equity sold stood at Rs 2,899.30 Crore and gross debt sold stood at Rs 286.10 Crore. Therefore, the net investment of equity and debt reported were Rs (302.50) Crore and Rs 233.40 Crore respectively.
On Wednesday, Indian Rupee closed at 48.96/97 per dollar, 0.2% weaker than its previous close at 49.05/06. The green back’s weakness against other currencies helped local currency gain strength.
On BSE, total number of shares traded were 44 Crore and total turnover stood at Rs 5,440.54 Crore. On NSE, total number of shares traded were 93.21 Crore and total turnover was Rs 16,832.45 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 79736359 shares, followed by Suzlon Energy with 55055589, DLF with 13157780, Reliance Comm with 12299261 and Tata Steel with 10591265 shares.
On NSE Future and Options, total number of contracts traded in index futures was 771316 with a total turnover of Rs 16,773.23 Crore. Along with this total number of contracts traded in stock futures were 535275 with a total turnover of Rs 16,858.45 crore. Total numbers of contracts for index options were 1196136 with a total turnover of Rs 28,084.99 Crore and total numbers of contracts for stock options were 52984 and notional turnover was Rs 1,771.10 Crore.
Today, Nifty would have a support at 4,544 and resistance at 4,665 and BSE Sensex has support at 15,236 and resistance at 15,598
Market may snap last three days of losses on positive Asia; inflation eyed
The key benchmark indices may edge higher on bargain hunting after last three days of losses backed by positive Asian stocks. Investors will keenly watch the wholesale price index (WPI) in the year to 22 August to be announced by the government today. The WPI fell 0.95% in 12 months to 15 August 2009. The fall, however, was lower than previous week's 1.53% decline.
The key benchmark indices edged lower on Wednesday, 2 September 2009 extending losses for the third straight day, as weak global stocks weighed on investor sentiment. The BSE 30-share Sensex lost 83.73 points or 0.54% to 15,467.46 on Wednesday, 2 September 2009. The BSE Sensex has lost 454.88 points or 2.85% in the last three days from 15,922.34 on Friday, 28 August 2009 after gaining for seven straight days. The Sensex had jumped 1112.70 points or 7.51% in seven trading sessions to settle at 15,922.34 on Friday, 28 August 2009 from 14,809.64 on 19 August 2009.
India's exports fell an annual 28.4% in July 2009 over July 2008 and imports fell 37.1%, data released by the government during on Tuesday, 1 September 2009, showed.
A latest survey showed India's manufacturing activity expanded at its slowest pace in five months in August 2009. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, fell to a five-month low of 53.2 in August 2009 from a revised reading of 55.4 in July 2009. The new orders index fell to 56.2 in August 2009, also its lowest in four months, from 60 in July 2009.
The PMI has been above 50, which separates expansion from contraction, for five months. Before that, it shrank for the five months through March 2009, hitting a trough of 44.4 in December 2008.
India's gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation announced on Monday, 31 August 2009, showed. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%.
The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009.
Farm secretary T. Nanda Kumar on Wednesday 2 September said improved monsoon rains in recent days will boost crop prospects for rice and sugar cane. He said other crops would also gain.
The monsoon witnessed a revival in the second half of August 2009 but the cumulative rains were still a quarter below average till last week. Drought or drought-like conditions have been declared in 278 districts or 44% of the nation's total, as rainfall has been 25% below average so far in the four- month monsoon season that started on 1 June 2009, the farm ministry said on 27 August 2009.
Asian stocks advanced today after gold prices climbed and Alcoa Inc. raised its forecast for global aluminum consumption. The key benchmark indices in China, Hong Kong, South Korea, Singapore and Taiwan rose by between 0.31% to 3.36%.
Japan's stocks slipped 0.41% on expectations of a slower recovery than investors have priced into markets, raising uncertainty about riskier assets.
The US markets fell for the fourth straight day on the back of some disappointing economic data. At the day's close, the Dow Jones Industrial Average reported its fourth straight decline, falling about 0.32% or 29.93 points, to 9,280.67. The S&P 500 Index shed 0.33% or 3.29 points, to 994.75 and the Nasdaq Composite dropped 0.09% or 1.82 points, to 1,967.07.
Driving the losses in the market was mainly news from the economic front. The ADP employment change report showed private employers cut 298,000 jobs in August 2009. This was more than the 250,000 economists expected. Factory orders rose 1.3% in July. The pace was much slower than the 2.2% expected.
But on an encouraging note, Federal Reserve policy makers said they are confident the recession is ending. They are therefore more comfortable slowing down their economic-recovery plan, according to minutes from their last meeting.
Daily News Roundup - Sep 3 2009
RIL has told power ministry about NTPC reluctance to sign the gas supply contract. (BS)
Maruti is considering hike in production capacity at Manesar plant. (BS)
Power Ministry wants more gas from RIL’s KG-Basin block for new power projects. (BS)
MTNL has submitted a bid to acquire a 75% stake in Nigerian Telecommunications. (ET)
NTPC plans to move the Supreme Court against a decision by a division bench of the Bombay High Court that allowed Reliance Industries to make changes in its written arguments. (ET)
Tata group may consider diluting its stake in Infiniti Retail, its wholly-owned subsidiary, which runs the consumer durable chain Croma. (ET)
IOC is likely to sign a JV agreement with Nuclear Power Corp of India this month to foray into nuclear power generation. (ET)
Bharti Airtel plans to roll out 3G services by October 2010. (FE)
Tata Sons plans to raise its stake in some group companies, after its dividend from TCS doubled to Rs20bn. (ET)
DoT has asked Sistema Shyam Teleservices to seek fresh approval for its wholly-owned subsidiary Shyam Internet Services, an internet service provider. (ET)
Bank of India eyes entry into 14 foreign locations with Rs6bn investment in FY10. (FE)
Tata Motors is considering raising small commercial vehicle manufacturing capacity after its Pantanagar facility reaches full capacity. (ET)
Godrej Appliances plans to invest Rs1.2bn for setting up a television facility in Himachal Pradesh by the middle of next year. (ET)
Tata Steel, SAIL and ISPAT Industries have increased flat product prices by upto Rs1,500/per ton . (BS)
Bajaj Auto august two-wheeler sales rise 4% yoy. (BS)
Tata Motors to hike its production ACE light truck by 15-20% till end of March. (BS)
IL&FS backs out of stake buy in Tata Tea plantation unit. (BS)
Tata Motors to phase out 15 truck model by March 2010. (BL)
Ranbaxy to sell products of Daiichi Sankyo in Romania. (BL)
IL&FS has announced an open offer for Maytas Infra at Rs112.8 per share. (BS)
Oil India is looking in overseas acquisition in partnership with IOC and may form JV for pipeline projects. (BS)
Shriram EPC arm to set up 18MW wind farm in Czech Republic. (BL)
SEBI has granted MCX-SX one more year to complete the exchange’s disinvestment process. (BS)
Government may sell 15% stake in Coal India as against 10% proposed earlier. (BS)
Modi Rubber plans to sell an undisclosed equity stake to German technology partner Continental. (ET)
Carborundum Universal has signed a division agreement with its Chinese JV partner, China Metallurgical Geology Bureau for restructuring the JV, Jingri-CUMI super hard materials Co. (ET)
Golden Tobacco may co-develop or sell its 7.5-acre property in western Mumbai. (ET)
Loop Mobile plans to invest Rs3.6bn as FY10 capital expenditure. (FE)
Europe based hospitality group Accor, owning ~4,000 hotels across the world, plans to open 45 new properties in India by 2012. (FE)
Finance ministry has exempted transport of goods by Railways from the service tax. (BL)
The Government has made it mandatory for automobile manufacturers to sell vehicles with energy-efficiency tags from 2011. (ET)
The Government is looking at a proposal to remove a 1mn ton limit on white sugar imports. (ET)
Airfares are likely to rise by 10% in the current month as jet fuel prices go up. (ET)
Opportunities in obstacles
An obstacle is often an unrecognized opportunity.
The bulls will hope that the immersion, which symbolizes Ganesha’s return from the earth after removing obstacles, will hold true for the market. Sentiment suddenly appears to be sinking in the recent past with concerns especially on the monsoon front. But, the volatility in the market always provides some opportunities to capitalise on.
A flat to slightly positive start is in the offing. We expect stocks to remain lackluster and sideways in the near term without any specific bias. With most good news discounted, the market is now anxiously awaiting the next batch of positive triggers. At the same time, the poor monsoon has added to concerns that inflation will shoot up.
In fact, CPI has already started inching up, with most indices at around 10-12%. Even the WPI inflation is expected to turn positive in the run up to festivals. The Government and the RBI have their task clearly cut out. With stock valuations not cheap and uncertainty in global markets, the market will find it tough to make new highs.
Even the liquidity factor seems to be turning adverse, especially from the overseas side, due to the dearth of incremental good news. With the market turning volatile lately, some traders have resorted to the so-called pair strategies to avoid getting caught on the wrong foot. We see the churning of portfolios and the consolidation phase to continue for a while.
Coming to the big news, the missing Andhra Pradesh CM is yet to be traced. The search so far has proven to be elusive. Hope we hear some good news on this front soon.
FIIs were net sellers at Rs6.88bn in the cash segment on Wednesday on a provisional basis while the local funds pumped in Rs737.9mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs13.6bn. On Tuesday, FIIs were net buyers of Rs3.02bn in the cash segment. Mutual Funds were net buyers of Rs935mn on the same day.
US stocks slipped on Wednesday after a volatile session as nervous investors continued to worry that the market rally may have outpaced any recovery.
The Dow Jones Industrial Average lost 30 points, or 0.3%, to 9,280.67. The S&P 500 index slid 3 points, or 0.3%, to 994.75. The Nasdaq Composite index managed a tiny gain of 2 points, or 0.2%, to 1,967.07.
Stocks seesawed throughout the session as investors considered a couple of private unemployment reports that signaled that the pace of job cuts continues to moderate, ahead of Friday's bigger August jobs report. Trading was largely listless.
The release of the minutes from the last Fed meeting failed to have any material impact on the sentiment. The FOMC minutes showed that the American central bankers thought that the US economy was stabilising, after weakening in 2008 and early 2009, and construction was starting to pick up.
The Fed policymakers also discussed the need to keep refining the central bank's so-called exit strategy after injecting billions into the financial system to help manage the meltdown.
Stocks slumped on Tuesday, with the three major gauges all losing around 2%. Since bottoming on March 9 at a 12-year low, the S&P 500 has basically been on the rise, adding 52% through Monday. Stocks saw a minor retreat in late June and early July, with the S&P 500 losing about 7% heading into the start of the second-quarter financial reporting period. But other than that small selloff, the direction has mostly been up.
Reports on Tuesday showed housing and manufacturing are recovering, but investors remain worried about the labor market and how rising joblessness will impact consumer spending. Consumer spending fuels two-thirds of the US economic growth.
Payroll services firm ADP said employers in the private sector cut 298,000 jobs from their payrolls last month after cutting a revised 360,000 in July. Economists were expecting 250,000 job cuts.
Separately, outplacement firm Challenger, Gray & Christmas reported 76,456 job cut announcements in August, 21% fewer than in July. Although both reports indicate the pace of job cuts has slowed, the US economy is still shedding jobs.
However, many economists were forecasting no abatement or improvement until later this year or early next. If the pace of the recovery in the jobs market continues and business spending picks up, the recovery could be stronger than forecast. But without those two factors, growth will remain sluggish.
A Labor Department report showed that non-farm productivity rose at a 6.6% annual rate during the second quarter versus the initially reported 6.4% pace. That was in line with forecasts.
Factory orders rose 1.3% in July, the Commerce Department reported. Orders rose a revised 0.9% in June. Economists thought orders would rise 2.2% in July.
Wells Fargo is set to repay the $25 billion in bailout funds it took from the U.S. government. The bank expects to pay it back from internal funds, rather than through issuing new shares. Financial stocks as a sector retreated for the second session in a row, although the declines were fairly modest.
The KBW Bank index lost nearly 8% in Tuesday and Wednesday's sessions after rallying 20% in the three months ended Aug. 31.
Pfizer will plead guilty to a criminal charge related to how it promoted now-defunct pain killer Bextra. The Dow component will pay $2.3 billion to settle charges it wrongly marketed 13 medicines. In January, Pfizer said it took the charge but didn't specify why.
Shares of Sepracor rallied 26.5% on published reports that Japan's Dainippon Sumitomo Pharma plans to make a $2.7 billion bid for the drugmaker.
Diversified manufacturer Danaher said it is cutting more jobs as part of its restructuring plan - and is buying two businesses that make scientific instruments for about $1.1 billion. The company is buying the life sciences instrument business of Canadian MDS for $650 million in cash.
That purchase includes a 50% stake in AB SCIEX, which makes instruments used by researchers. Danaher will also buy the rest of AB SCIEX for $450 million. Danaher shares gained 2%, while MCS shares gained 32%.
US light crude oil for October delivery settled at $68.05 a barrel on the New York Mercantile Exchange after a mixed weekly inventory report from the Energy Information Administration. The settle price was unchanged from the previous session. Oil prices have been slipping since hitting a 10-month high just below $75 a barrel late last month.
In other energy sector news, BP said that it has made a "giant" oil discovery in the Gulf of Mexico. Although the company doesn't yet know the volume of oil present, it is thought to be in excess of 3 billion barrels.
COMEX gold for December delivery rose $22 to settle at $978.50 an ounce.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.29% from 3.36% late on Tuesday.
In currency trading, the dollar fell versus the euro and the Japanese yen.
US retail chain stores will be releasing August sales on Thursday. Investors will be looking to see if the stock rally and signs of recovery in the economy have had any impact on consumer spending. The Institute for Supply Management's services sector index for August is also due in the morning, along with the weekly jobless claims report.
European shares closed down for a third straight session, with financials among the worst performers as investors took some recent profits off the table. The pan-European Dow Jones Stoxx 600 index declined 0.5% to 230.49. The index ended with a 1.8% loss on Tuesday, the first day of September and the second consecutive day of losses.
Germany's DAX index lost 0.1% to 5,319.84, while the French CAC-40 index declined 0.3% to 3,573.13 and the UK's FTSE 100 index ended virtually unchanged at 4,817.55. In Spain, where unemployment rose in August, the Ibex 35 index fell 1.6% to 10,991.1.Indian markets extended its losing streak to third straight trading session on Wednesday mainly on the back of a sell-off seen in the international equity markets. Domestically, disappointing reports on manufacturing PMI and exports coupled with weak monsoon continue to have adverse effect on market sentiment.
The IT, select telecom and the Pharma stocks were among the major gainers while the Realty and the Auto stocks took some beating. Even the Mid-Cap and the Small-Cap stocks were under pressure.
Over the past three days the NSE Nifty has lost 130 points or 2.6%, while the BSE Sensex has shed ~455 points or 2.8%. Technically, 4,550-4,560 is the 20 day moving average where the index could find some support.
On Wednesday, the BSE Sensex lost 84 points or 0.54% at 15,467 after touching a high of 15,628 and a low of 15,392. The index opened at 15,482 against the previous close of 15,551. The NSE Nifty slipped by 17 points to shut shop at 4,608.
In Asia, the Nikkei in Japan slipped 2.3% at 10,280 while Australia's S&P/ASX ended lower by 1.7% at 4,438. The Hang Seng index in Hong Kong was down 1.8% at 19,522. Meanwhile, Shanghai index in China recovered and ended higher by 1.2% at 2,714.
In Europe, stocks were trading in the red. The FTSE in the UK was down 0.5%. The DAX in Germany was down 0.9% and the CAC 40 index in France was down 1.2%.
Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 1.7%, followed by the Auto index that was down 1.4%. The BSE Capital Goods index down 1.2% and the BSE Power index was down 1%.
Bucking the negative trend were BSE IT index up 1% and BSE Teck index was up 0.6%. The BSE Mid-Cap index slipped 0.7% and the BSE Small-Cap index lost by 0.4%.
Among the 30-components of Sensex, 21 stocks ended in the red and 8 ended in the positive terrain. Among the major losers were Sterlite, BHEL, JP Associates, M&M, Maruti and Tata Motors.
On the other hand, RCom, HUL, Hero Honda, TCS and Infosys were among the major gainers.
Outside the frontline indices, the big losers in the broader market were Gujarat NRE, Tulip Tele, PTC India, IRB Infra, Exide Ind. On the other hand, gainers included Essar Oil, Oracle Finance, P&G, OBC and Renuka Sugars.
Shares of Austral Coke & Projects were locked at 5% lower circuit at Rs48 after SEBI yesterday barred it from raising more funds.
The market regulator barred Austral Coke from raising any fresh equity after the IT department discovered an suspected more than Rs10bn fraud in the company's transactions.
SEBI hereby prohibits Austral Coke and Projects from raising any further capital in any manner, directly or indirectly, whatsoever, till further orders," the regulator said in an order.
The ban has come ahead of the company's board meeting on which was scheduled to be held on September 3 for considering raising about Rs9.6bn through private placement of shares with institutions.
Meanwhile, shares of Gremach Infrastructure were also locked at 10% lower circuit at Rs38. The stock opened at Rs38 and made an intra-day high of Rs38 and a low of Rs38. Total traded volumes stood at 0.184mn shares.
Shares of Ranbaxy and Strides Arcolab were in demand after they secured bagged order to supply 9.2mn capsules of generic or low priced version of swine flu drug Tamiflu. In addition, reports stated that Ranbaxy will market Daiichi Sankyo’s osteroporosis drug Evista in Romania through its subsidiary Terapia Ranbaxy.
Shares of Ranbaxy gained by 1.2% to Rs322. The stock opened at Rs322 and made an intra-day high of Rs327 and a low of Rs318. Total traded volumes stood at 0.32mn shares.
On the other hand, Shares of Strides Arcolab advanced by 6.5% to Rs162. The stock opened at Rs151 and made an intra-day high of Rs165 and a low of Rs151. Total traded volumes stood at 0.77m shares.
Shares of RNRL gained by 2.4% to Rs86. A court filing proposed by the government said its production-sharing contract with Reliance Industries must prevail over any private arrangement the company has for the sale of natural gas from the KG-D6 field. The stock opened at Rs85 and made an intra-day high of Rs88.8 and a low of Rs84.20. Total traded volumes stood at 10mn shares.
Maruti Suzuki announced that it plans to spend as much as Rs15bn on a research and development center in Rohtak, Haryana, said the Chairman R.C. Bhargava. The company aims to design small cars in India, he added. The stock was down by 2.2% to Rs1510. It opened at Rs1534 and made an intra-day high of Rs1571 and a low of Rs1507. Total traded volumes stood at 0.23mn shares.
Shares of Texmaco shot up by over 3.5% to Rs119 after Reliance Capital Trustee and Reliance Infrastructure Fund picked up 3.9313% stake increasing its stake to 6.0858%. The reliance funds acquired the shares through Qualified Institutional Placement, according to a disclosure made in the Bombay Stock Exchange. The stock opened at Rs115 and made an intra-day high of Rs127 and a low of Rs112. Total traded volumes stood at 0.32mn shares.
Shares of Redington India surged by over 10% to Rs258 after ~2.8% of the company’s shares changed hands in a single transaction. The stock opened at Rs231 and made an intra-day high of Rs274 and a low of Rs231. Total traded volumes stood at 2.9mn shares.
Foreign funds step up selling
Outflow of Rs 302.50 crore on 1 September 2009
Foreign funds stepped up selling in equities with a net outflow of Rs 302.50 crore on Tuesday, 1 September 2009, compared to Rs 86.20 crore on Monday, 31 August 2009.
The net outflow of Rs 302.50 crore on Tuesday, 1 September 2009, was a result of gross purchases Rs 2596.80 crore and gross sales Rs 2899.30 crore. The BSE Sensex had lost 115.45 points or 0.74% to 15,551.19 that day, falling for the second day in a row, with the market sentiment hit by a tepid debut of state-run power firm NHPC on the bourses.
The inflow of foreign funds slowed sharply last month. FII inflow in August 2009 totaled Rs 4028.80 crore. Foreign funds had bought equities worth Rs 11,625.20 crore in July 2009.
Precious metals at three month high
Weak job report imparts shine to precious metals
Precious metal prices ended substantially higher on Wednesday, 02 September, 2009. Prices rose as the dollar dropped following a disappointing private sector job report thereby increasing the appeal of precious metals as a safe haven against other investment alternatives.
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 $978.5, higher by $22 (2.3%) an ounce on the New York Mercantile Exchange. It rose as high as $981.4 earlier. Last week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 11.4%.
Gold ended August, 2009 higher by 0.2%. 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 (5%) since then.
On Wednesday, Comex silver futures for September delivery rose by 30.5 cents (2%) to $15.365 an ounce. Last week, silver ended higher by 4.3%.
Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 35.5% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.5%.
Among economic reports expected on Wednesday, a private sector payrolls report indicated that employment in the U.S. private sector fell by 298,000 in August.
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 316 (2.1%) at Rs 15,519 per 10 grams. Prices rose to a high of Rs 15,546 per 10 grams and fell to a low of Rs 15,180 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 461 (1.9%) higher at Rs 24,953/Kg. Prices opened at Rs 24,410/kg and rose to a high of Rs 25,101/Kg during the day's trading.
Copper ends marginally highe
Prices rise at Comex but drop at LME
Copper prices continued to fall at Comex and LME on Wednesday, 02 September, 2009. But at the end, prices registered marginal gains at Comex. Prices dropped today due to rising LME inventories.
At USA, copper futures for December delivery rose 0.75 cents (0.3%) to 2.826 a pound. Last week, copper ended higher by 2%. Copper ended August, 2009, higher by 7%.
On the London Metal Exchange, copper for delivery in three months ended lower by $26 (0.4%) at $6,174 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 89.3%.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.5%.
Among economic reports expected on Wednesday, a private sector payrolls report indicated that employment in the U.S. private sector fell by 298,000 in August.
As per latest reports, stockpiles of the metal monitored by the London Metal Exchange have jumped 18% since mid-July to 302,950 metric tons.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for November delivery closed at Rs 305.3/Kg. The closing price was Rs 0.15/Kg (0.04%) lower than previous closing price. Prices rose to a high of Rs 306.85/ Kg and fell to a low of Rs 298/Kg during the day's trading.
Among other metals traded in the LME on Wednesday, lead rose 1% to $2,080 a ton and zinc fell 0.5% to end at $1,815 a ton. Nickel fell 3.2% to end at $17,663. Aluminium ended unchanged at $1,881 a ton.
Crude remains unchanged
Prices witness a full day of volatile session
Crude prices ended almost unchanged on Wednesday, 02 September, 2009. Prices remained volatile for entire day but ultimately ended almost at yesterday's levels.
On Wednesday, crude-oil futures for light sweet crude for October delivery closed at $68.05/barrel. During intra day trading, crude touched a high of $68.8 but also fell to a low of $67.05. Last week, crude ended higher by 9.5%. It was the biggest weekly gain for crude in three months.
For the month of August, 2009, crude ended higher by a marginal 0.7%. 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 56% since then. Year to date, in 2009, crude prices are higher by 42%.
EIA reported today that crude inventories fell by 400,000 barrels during last week. Market had expected a decline of 1.9 million barrels. At 343.4 million barrels, crude inventories stand at a level above the upper boundary of the average range for this time of year. Utilization rate rose to 87.2% of capacity.
Rising input was partly offset by another jump in crude imports. The U.S. imported 9.58 million barrels a day of crude last week, up 3.8% from a week ago.
EIA also reported that gasoline inventories fell by 3 million barrels last week. Distillates, however, rose by 1.2 million barrels.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.5%.
Also at the Nymex on Wednesday, October reformulated gasoline rose 2.64 cents, or 1.5%, to $1.8086 a gallon. October heating oil fell slightly to $1.7505 a gallon.
October natural gas fell 10.6 cents, or 3.7%, to $2.715 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 lower by Rs 61 (1.8%) at Rs 3,330/barrel. Natural gas for September delivery closed lower by Rs 5 (3.5%) at Rs 136.3/mmbtu.
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