| Company Name | Offer Price (Rs.) | Premium (Rs.) |
| Tarapur Transformers | 75 | 3 to 5 |
| Mandhana Industries Ltd. | 130 | 5 to 7 |
| Sutlaj Jal Vidhut Nigam (SJVNL) | 26 | 3 to 4 |
| Jaypee Infra | 102 | Discount |
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Tuesday, May 18, 2010
Daily Grey Market Premiums - May 18 2010
Markets likely to get a flat to positive start
Headlines for the day:
DoT may reject Trai's 2G pricing recommendation
ABB plans Rs4,400 cr buyback offer to raise stake to 75%
Tata Power softens stand on power battle
Events for the day:
Major corporate action
Tarapur Transformers to be list today
Ex-date for bonus issue of SE Investments in the ratio of 3:1
Results: Chennai Petroleum
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares ended lower on Monday, with miners weak as metals prices fell on a strengthening dollar, while gains in defensive food producers and drug makers limited wider losses.
The US stocks staged a comeback in late trading on Monday as bargain hunters snapped up beaten-down shares, setting aside concerns that efforts to tackle the euro-zone debt crisis could stifle the global economy.
In today's trade, the Asian markets were trading on a mixed note, with bargain hunters inspired by the mild gains on Wall Street. At the time of writing this report, SGX Nifty was trading 17 points lower.
Indian markets
There is still a fair degree of concern as equities are still struggling to sustain their early gains, The Wall Street still looks pretty ordinary as the euro remains dull. All it will take is some worrisome comment out of Europe and the concern will flood back into the market. The Asian markets were mixed in early trading, after the Wall Street finished slightly higher in an erratic session. The Domestic markets are expected to have a flat to positive start owing to the mixed signals that are coming from the global markets.
Monsoon rains, vital to farmers and economic growth, arrived Monday ahead of schedule in the far-flung Andaman and Nicobar Islands in the Bay of Bengal, after the country suffered its worst drought in decades last year. As the monsoon is on time it will be a key variable over the next few weeks and even months, which will give the direction to the markets.
The earning of Chennai Petroleum is later to be announced today - the stocks will be closely eyed by the investors.
Commodity cues
In the commodity space, the crude oil prices slipped to a 5-month low Monday, with the Nymex light crude oil for the June series down by $1.53 per barrel, whereas in the metals space, the Comex Gold for the June series rose by $0.30 and the Comex Silver for the June series was declined by $0.37 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 17, 2010, the foreign Institutional Investors (FIIs) were the net sellers of the Indian stocks to the tune of Rs204.90 crore, whereas the domestic mutual funds, on May 14, 2010, were the net sellers of the stocks to the tune of Rs205.50 crore.
Subdued start, improvement later!
There is not any memory with less satisfaction than the memory of some temptation we resisted - JB Cabell.
The recovery may sure tempt you to believe things are settling down but the situation remains uncertain and risk aversion is still pretty elevated. We managed to bounce back after another rough start as European markets were relatively stable. US stocks too rebounded from session lows to end in the green. Asian markets are mixed this morning with Chinese market in the red yet again. Given the murky global outlook, we expect a subdued start to the proceedings. Sentiment may improve a little, provided there no further tremors on the external front. But, on the whole we expect a volatile yet rangebound session.
Technically, the levels to watch are 4950 on the downside and 5100-5200 on the way up. A close below 4900 could lead to some panic. A decisive breakout may continue to elude us till the Nifty sustains above 5300. For the time being, the broader market may hold more promise as the large caps appear to be fully priced. In terms of events, the latest GDP data will be out on May 31. Monsoon’s progress will also have some bearing on market mood in the near term.
We are certainly not out of the woods yet as far as global factors are concerned, and so it would be wise to remain cautious. Fresh buying could be avoided for now. Long-term bulls can wait for some more correction (about 5% from here) before taking the plunge.
Results Today: Bilpower, Bombay Rayon, Chennai Petro, Grindwell Norton, ICRA, JK Lakshmi Cement, Man Industries, Motherson Sumi, Munjal Showa and Omnitech Info.
FIIs were net sellers of Rs12.24bn in the cash segment on Monday on a provisional basis, according to NSE web site. Local institutions were net buyers of Rs3.82bn. In the F&O segment, the foreign funds were net sellers of Rs9.83bn. FIIs were net sellers of Rs2.05bn in the cash segment on Friday, as per the SEBI data. Mutual Funds were net sellers of Rs2.05bn in the cash segment on the same day.
US stocks ended slightly higher on Monday, as a late-session reversal in technology companies and private-school operators offset lingering worries about Europe's debt crisis. All the three main US indices erased big losses after the euro rebounded from a four-year low and gained ground against the dollar.
The Dow Jones Industrial Average was up 5.67 points, or 0.1%, at 10,625.83, snapping a two-day losing streak. Out of 30 components, 15 ended higher.
For every stock on the rise, 1.5 fell on the New York Stock Exchange, where more than 1.4 billion shares traded hands. Composite volume topped 6.1 billion.
The blue-chip Dow average had spent nearly 90% of the day lower and had fallen as much as 184 points.
Consumer staples and telecom sectors also led gainers on the S&P 500 Index, which closed up 1.3 points, or 0.1%, to 1,136.94. Energy was the hardest-hit sector on the S&P 500, falling nearly 1%.
But it was a turn higher in consumer-discretionary shares, including a late-session rally in educational providers Apollo Group and DeVry, that helped turn the broader market around.
The technology sector also closed up higher with the Nasdaq Composite rising 7 points, or 0.3%, to 2,354.23.
Before posting gains, all three indexes were more than 1% lower but began to trim losses with an hour left in the session.
Earlier, the euro sank below $1.23, as euro-zone debt concerns weighed on investors. But the currency recovered its losses late in the afternoon. The euro stabilized near $1.24. It had declined as low as $1.2233 as the market considered the impact of budget cuts in countries on Europe's economic recovery.
US stocks had tumbled on Friday, as the Dow lost 1.5%, and S&P 500 and Nasdaq slipped about 2% on a weak euro.
After holding firm against the euro most of the day, the dollar fell 0.3% late in the afternoon. But the greenback was 0.3% higher against the British pound and rose 0.1% versus the Japanese yen.
US light crude oil for June delivery slid $1.53, or 2.1% to settle at $70.08 a barrel - a five-month high.
Gold prices continued to rise, gaining 70 cents, or 0.1%, to settle at $1,228.50 per ounce.
Treasury prices gave up gains Monday afternoon. The price of benchmark 10-year note edged lower, and its yield edged up to 3.49%.
A report from the Federal Reserve Bank of New York showed that manufacturing growth slowed in the region in May. The Empire State Manufacturing Survey's index fell to 19.1 from 31.9 in April. Economists expected the index to slip modestly to 30.
The National Association of Home Builders on Monday reported a gain in confidence among U.S. home builders in May, with the trade group's index hitting a 33-month high.
The Treasury said China boosted its holdings of US debt in March for the first time in six months, increasing them by 2% to $895.2 billion. With mounting concerns over European debt and a strengthening US economy, overall foreign holdings of Treasury securities rose by 3.5% to $3.88 trillion.
General Motors (GM) posted its first quarterly profit in nearly three years, earning $865 million on revenue of $31.5 billion. After emerging from bankruptcy last July, the company has trimmed costs and increased sales thanks to an improving economy and recall troubles at rival Toyota.
Hope improvement retailer Lowe's posted a profit that rose 2.7% from a year earlier and topped expectations as demand for big-ticket items improved. But the company's forecast for the second quarter came in lower than expectations, and shares of the retailer finished 3% lower.
European shares ended a choppy session down, dragged lower as a drop in commodity prices weighed on the mining sector and concerns about the future of the region's economy sent the euro to a four-year low versus the dollar.
After a 4.8% rise last week, the Stoxx Europe 600 index declined 0.1% to close at 248.09.
Oil producers had helped buoy European shares in earlier activity. BP shares temporarily rose after it provided investors with some hope that it's starting to control an oil spill in the Gulf of Mexico. BP said over the weekend that it was able to reroute some oil. But oil shares turned south as oil futures slumped.
The UK's FTSE 100 index ended virtually flat at 5,262.54. The German DAX index rose 0.2% to close at 6,066.92, while the French CAC-40 index fell 0.5% to settle at 3,543.55.
The Greek ASE Composite Index declined 1.4% to 1,634.61.
The euro traded at a four-year low against the dollar. It later trimmed losses to change hands at $1.2310, a loss of 0.4% from Friday.
Shares of life insurer Prudential was down 1.5% to 534.5 pence. The firm launched its delayed share sale to finance the acquisition of AIG's Asian business, AIA. Prudential said shareholders will be able to buy 11 new shares for every two they already own at a price of 104 pence a share.
The rights issue had been delayed while the company sought approval from the U.K. Financial Services Authority for the capital raising. Prudential is paying $35.5 billion for AIA, including $25 billion in cash.
Shares of hedge-fund manager Man Group dropped 8.8% after it said it has agreed to buy GLG Partners for $1.6 billion. The deal will create a firm with around $63 billion of funds under management.Daily News Roundup - May 18 2010
ABB has made an offer to increase stake in its Indian subsidiary by 22.89% at a cost of nearly US$1bn. ABB said it will buy 48.59mn shares at Rs900 per share, a 34% premium to last Friday’s closing price of ABB India shares. (ET)
Credit rating agency Fitch removed Bharti Airtel from its negative watch list in anticipation of an US$2bn equity infusion during the current fiscal, as well as hopes of better overall performance. (ET)
DLF confirmed it had decided to sell its stake in Aman Resorts, but a sale would exclude Aman’s New Delhi property. (ET)
Tata Steel is keen on forming a JV with Steel Authority of India (SAIL) to set up a steel plant. (ET)
Thermax has signed a five-year technology transfer agreement with Germany based Lambion Energy Solutions in the areas of energy generation from waste. (ET)
Zain Group received preliminary approval to transfer its licences in Uganda to Bharti Airtel. (ET)
Shree Renuka Sugars is renegotiating the price of its proposed Rs15.3bn acquisition of Brazilian sugar and ethanol maker Equipav amidst differences over the amount of debt on the company’s books. (ET)
Tata Motors-owned Jaguar Land Rover (JLR) is set to wrap up the £600mn (US$850mn) three-year Chinese deal it had bagged in February 2009, one year ahead of schedule. (BS)
Input costs prompt 12% increase in Hindalco’s capex in six months. (BS)
Essar Energy plc said its indirect subsidiary, Essar Power Gujarat Ltd (EPGL), has signed a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Ltd (GUVNL). (FE)
Shriram Transport Finance Company plans to infuse around Rs6bn capital in its proposed subsidiary, for conducting equipment finance business, which is expected to float in a month. (BS)
Maruti Suzuki India has appointed Japanese firm Nippo as its consultant for developing a test track at Rohtak, in Haryana, where its research and development centre is being set up at an investment of Rs15bn. (FE)
Lupin has lost the battle on antibiotic Levofloxacin against US-based Ortho Mcneil Pharma and Japanese drug maker Daiichi Sankyo with the US Court of Appeals for Federal Circuit upholding the patent term extension granted to the innovator company on the drug. (FE)
Alstom Projects said it has bagged Rs1.2bn contract to supply electro mechanical equipment to the 96 mw Jorethang loop hydroelectric project in Sikkim. (FE)
Bank of India on Monday slashed interest rates on deposits by 25-75 basis points in short-term category. (FE)
KSK Energy Ventures has commenced operations at the first of its four 135MW units that constitute the 540MW Wardha Warora coal-fired project in Maharashtra. (BS)
Godrej Properties promoters are open to their stake in their real-estate company to fuel future growth. (BL)
Essar Energy plc through its indirect subsidiary, Essar Power Gujarat Ltd (EPGL), has signed a PPA with Gujarat Urja Vikas Nigam Ltd (GUVNL) for 800MW of contracted capacity from the 1,320MW coal-fired Salaya II power project to be located in Jamnagar district. (BL)
Prudential may sell Tata AIG stake to Tatas. (BS)
The government’s provisional revenue from the sale of 3G airwaves Monday crossed the Rs650bn mark and nationwide license price reached over Rs160bn at the end of 176 rounds of an auction. (ET)
DoT is likely to reject the telecom regulator's proposal to charge operators holding excess spectrum at a rate determined on the basis of the ongoing 3G bids. (BS)
The Centre plans to do both an audit as well as security checks of all China-made telecom gear installed on the existing networks of all service providers before allowing any fresh imports from that country. (ET)
The Planning Commission of India to closely monitor the progress in infrastructure development in the country. The commission, which has till date set annual projections over a five-year period, has set infrastructure targets for various sectors on a quarterly basis and will gauge the performance of ministries responsible for infrastructure development. (BS)
India looks all set to open its doors further to FDI in the sensitive defence production. The commerce and industry ministry has put out a discussion paper that suggests an increase in FDI in defence to 74% from 26% to encourage greater local manufacturing and technology transfer. (ET)
India has settled a dispute over taxing profits of captive IT services units and research arms of US firms, bolstering New Delhi’s position as a preferred destination of such investments. (ET)
Indian corporate borrowed US$4.3bn overseas in March 2010, taking the overall external commercial borrowing for the fiscal 2009-10 to US$17.6bn. (ET)
India and Japan are going to re-open discussions on liberalisation of movement of professionals, an issue that has long stalled any significant progress in the conclusion of the free trade agreement (FTA) between the two countries. (FE)
Sensex recovers...Nifty ends above 5000
It could have been worse. That's what everyone connected to the Indian bourses would be saying after the key stock indices staged a smart recovery from the day's lows. What's more, the NSE Nifty managed to end above 5000, a crucial psychological and technical level. The broader market did even better than the frontline indices.
The rebound in the Indian market came post noon when the European markets opened for trading. Stocks in the region, which is at the heart of a raging debt crisis, managed to hold their own after a volatile opening. Steady European markets also led to a recovery in the US stock futures.
The BSE Sensex closed another tumultuous day at 16,835.56, down 159.04 points or 0.94% from the previous close. Earlier, it touched a day's low of 16,551.00 after opening at 16,961.92. The NSE Nifty, on the other hand ended at 5,059.90, down 33.60 points or 0.66%. It hit an intra-day low of 4966.25 after starting the day at 5093.90.
The BSE Small-Cap and Mid-Cap indices were down 0.7% and 0.2%, respectively at 8,750 and 6,927.
In terms of sectors, Oil & Gas, IT, Auto, Real Estate and Banking indices on the BSE were the biggest losers, down 0.5-2%. Capital Goods sector was the star of the day, buoyed by parent's open offer for ABB India and L&T's strong results.
BSE Pharma and BSE FMCG indices too ended in the green while BSE Metal index managed to recoup from the worst point of the day. Power was a steady performer.
Within the Sensex, the top losers were DLF (~4%), ACC (3.3%), Wipro (3.3%), Tata Motors (3.3%), Jaiprakash Associates (3%), Reliance Infra (2.9%), Reliance Industries (2.6%), TCS (2.5%), Tata Steel (2.25%) and Reliance Communications (2%).
L&T (5%), Hindustan Unilever (2.5%) and SBI (1.3%) were the notable gainers.
Outside the main indices, the main losers included Lakshmi Overseas, Prakash Industries, DCM Shriram, Jyoti Structures, Engineers India, Aban Offshore, KPIT Cummins, Punj Lloyd, Astra Micro, Jubilant Foodworks, Kingfisher Airlines, Bhushan Steel, IVRCL Infra, Chennai Petro, Ruchi Infra and McNally Bharat.
Shares of L&T climbed after the company said that its net profit in the fourth quarter stood at Rs14.38bn versus Rs9.98bn in the same quarter last year. Net sales for the reporting quarter came in at Rs133.75bn compared to Rs104.69bn in the year-ago period.
The current order book of L&T stands at Rs1 lakh crores. Large order book provides sufficient visibility, L&T said, adding that it is cautiously optimistic about the future prospects.
Among the other companies that announced their results, NTPC ended down about 1% while Gail India shares rose by over 1%. Mundra Port closed down by nearly 2% post its results and stock split announcements.
Shares of ABB India surged by 23.4% after its Swedish parent made a voluntary open offer to increase its shareholding in the Indian arm to 75%. The stock closed at Rs831 after being as high as Rs869. It opened at Rs700.
ABB Asea Brown Boveri Ltd. and ABB Ltd. are proposing to acquire up to 48,510,997 fully paid up equity shares of the Target Company, constituting 22.89% of the Voting Share Capital at a price of Rs900 per equity share. The offer will open on July 8 and will close on July 27.
Shares of Whirlpool India jumped 20% after the company said its net profit in Q4 FY10 soared 234% to Rs577.2mn on a 56% increase in net sales to Rs5.56bn. The stock closed at Rs239.55. This is also its all time high. The stock had hit a 52-week low of Rs36 on May 14, 2009.
Other notable gainers today included the likes of Piramal Healthcare, Dena Bank, Gateway Distriparks, Everest Kanto, Karnataka Bank, Siemens, Bartronics, Zydus Wellness, Bayer Crop, Balrampur Chini and Federal Bank.
Precious metals fluctuate
Prices remain volatile on doubts of global recovery
Precious metals ended lower on Monday, 17 May at Comex. Gold prices registered marginal drop while silver registered substantial drop. Prices remained volatile for the entire day. Strong dollar also took some shine away from precious metals.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Monday, gold for June delivery ended at $1,228.1 an ounce, lower by $0.30 (0.02%) an ounce on the New York Mercantile Exchange. A sliding U.S. stock market and further losses for oil took a toll on gold as investors sold bullion to cover margin calls in stocks and other commodities. Gold for June delivery had settled above $1,200 in early December, only to pull back to $1,172 area and dip as much as the $1,050 vicinity in early February.
Last week, gold ended higher by 1.5%. For the month of April, gold ended higher by 6%. For the first quarter of this year, gold rose by 1.7%, its sixth quarterly rise. On a year to date basis, gold is higher by 11.6%.
On Monday, July Comex silver futures ended lower by 37 cents (1.9%) at $18.85 an ounce. Last week, silver ended higher by 4.1%. For the month of April, silver ended higher by 4.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 6.7%.
In the currency market today, the euro dropped once again against the dollar. The dollar index, which measures the strength of the dollar against a basket of six other currencies rose by 0.6%.
Among economic data for the day, The National Association of Home Builders on Monday reported a gain in confidence among U.S. home builders in May, with the trade group's index hitting a 33-month high. The housing market index rose three points in May to 22 after a four-point increase in April. At 22, the index is at its highest point since August 2007, but it's still very weak in historic context. Before the current downturn, the index had been at 22 or lower just twice in its 25-year history.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level.
At the MCX, gold prices for June delivery closed higher by Rs 96 (0.52%) at Rs 18,260 per ten grams. Prices rose to a high of Rs 18,424 per 10 grams and fell to a low of Rs 18,151 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 265 (0.9%) lower at Rs 29,393/Kg. Prices opened at Rs 29,750/kg and fell to a low of Rs 29,192/Kg during the day's trading.
Monday, May 17, 2010
Sensex ends lower; DLF, ACC plunge
Indian equities continued to drop for the second day on Monday. The Sensex ended on a lower note owing worries over euro zone debt concerns. Oil & gas, IT, auto and teck stocks traded lower, while capital goods and healthcare stocks gained.
The index plunged over 300 points in the early deals due to meltdown in overseas markets on concerns over Europe`s sovereign debt crisis.It continued to plummet as aggressive selling pressure was seen in heavweights like RIL and Infosys. It dropped to a low of 16,551 in the first half. Later the index pared some of its losses in the second half as European market opened flat. Finally, it made a smart recovery, erasing all its earlier losses at close.
On global front, European stocks declined on concern the region`s measures to reduce fiscal deficits will hamper economic growth. US index futures pared some of their losses. Asian stocks fell, dragging the MSCI Asia Pacific Index down the most in almost six months, as the euro declined against the yen on concern measures to reduce fiscal deficits in Europe will hurt economic growth.
At the close, the benchmark 30-share index, BSE Sensex declined 159.04 points or 0.94% at 16,835.56 with 24 components posting drop. Meanwhile, the broad based NSE Nifty fell by 33.60 points or 0.66% at 5,059.90 with 37 components posting drop.
Sensex Movers
Reliance Industries contributed fall of 57.16 points in the Sensex. It was followed by Infosys Technologies (26.05 points), Tata Consultancy Services (14.21 points), ICICI Bank (13.19 points) and HDFC Bank (11.01 points).
However, Larsen & Toubro contributed rise of 53.83 points in the Sensex. It was followed by State Bank Of India (10.86 points), Hindustan Unilever (8.5 points), Bharti Airtel (4 points) and Hindalco Industries (0.62 points).
Major gainers in the 30-share index were Larsen & Toubro (4.97%), Hindustan Unilever (2.52%), State Bank Of India (1.30%), Bharti Airtel (0.79%), Cipla (0.38%), and Hindalco Industries (0.21%).
On the other hand, DLF (3.95%), ACC (3.31%), Wipro (3.30%), Tata Motors (3.29%), Jaiprakash Associates (3.05%), and Reliance Infrastructure (2.92%) were the biggest losers in the Sensex.
Mid & Small-cap Space
The BSE Midcap index was at 6927.38 down by 91.54 points or by 1.3%.
The major losers were Aban Offshore (4.59%), A I A Engineering (1.34%), Alstom Projects India (1.32%), Ackruti City (1.1%) and Core Projects and Technologies (0.9%).
The BSE Smallcap index was at 8750.12 down by 184.28 points or by 2.06%.
The major losers were A B G Infralogistics (2.97%), Abhishek Industries (2.35%), Provogue (India) (2.1%), A B G Shipyard (1.74%) and Aarti Industries (1.15%).
Sectors in Limelight
The Oil & Gas index was at 9,689.39, down by 378.59 points or by 3.76%. The major losers were Aban Offshore (4.59%), Reliance Industries (2.57%), Oil & Natural Gas Corporation (1.72%), Bharat Petroleum Corporation (1.33%) and Cairn India (1.1%).
The Metal index was at 15,868.05, down by 598.08 points or by 3.63%. The major losers were Welspun Corp (2.49%), Hindustan Zinc (2.43%), Tata Steel (2.25%), JSW Steel (1.98%) and Sterlite Industries (India) (0.19%).
The Realty index was at 3,259.10, down by 114.53 points or by 3.39%. The major losers were D L F (3.95%), Housing Development and Infrastructure (2.41%), Peninsula Land (2.22%), Anant Raj Industries (1.2%) and Ackruti City (1.1%).
On the other hand, the Capital Goods index was at 13,596.79, up by 130.57 points or by 0.97%. The major gainers were A B B (23.44%), Siemens (5.3%), Larsen & Toubro (4.97%), Areva T & D India (2.38%) and Praj Industries (0.95%).
Market Breadth
Market breadth was negative with 1,068 advances against 1,783 declines.
Value and Volume Toppers
Aban Offshore topped the value chart on the BSE with a turnover of Rs. 2,487.67 million. It was followed by State Bank Of India (Rs. 1,910.52 million), Tata Steel (Rs. 1,883.10 million) and Larsen & Toubro (Rs. 1,771.55 million).
The volume chart was led by Cals Refineries with trades of over 32.79 million shares. It was followed by Birla Power Solutions (12.78 million), Reliance Natural Resources (7.41 million) and Suzlon Energy (5.93 million).
Market engineers rebound on L&T nos
Today's major news
Direct tax mop-up at Rs3,78,350 cr in FY10
Protests at hearing on 10,000MW nuclear plant
SLDC snubs Tatas, supports R-Infra
Click here for more stories
Global signals
European stocks edge higher on Monday reversing some of ground that they lost in the previous session on Euro zone debt worries. FTSE 100 was trading higher by 1.04%.
All the major Asian indices closed in negative territory as Shanghai Composite tumbled over 5%. SGX Nifty closed 22 points lower.
US stock futures signal lower opening on the Wall Street as Euro zone debt worries are still in the investor's minds. Oil stocks may be in focus as crude oil futures fell below $70 a barrel.
Indian Indices:
Markets across the globe were in a complete bear grip with sentiments taking a beating. The domestic market witnessed heavy sell-off all through the day. The continuous heavy fall must have made the investors jittery that the markets will lead to a bloodbath. But, engineering major, Larsen & Toubro (L&T), along with a slightly positive European markets helped the domestic bourses recover from the day's low.
Tracking weak Asian markets and Friday's (May 14, 2010) heavy sell-off in Europe and US markets, as euro fell to its four-year lows on Euro zone debt worries and heavy selling in oil & gas stocks as crude oil price dropped nearly $70 per barrel, the 30-benchmark Sensex started off weak. The Sensex opened 23 points lower at 16962 and this was also its day's high. The market went on falling with no hopes of recovery and expanded losses wildly. The Nifty breached 5000 levels. The Indian indices touched the two-and-half months' low.
However, post stellar Q4 results by Larsen & Toubro and European markets turning positive, much to surprise, after briefly trading in red boosted the sentiments, which led to some smart recovery. However, the BSE bellwether recovered more than 285 points from the low of 16551. Despite the recovery, the market was unable to close positive. At finishing line, the Sensex quoted at 16836, lower by 159 points. The Nifty managed to close above 5000 levels at 5060, 34 points lower.
Market sentiment
The market breadth was extremely negative as declining stocks outnumbered gaining stocks. Of the 2,889 stocks traded on the BSE, 1,746 stocks declined, whereas 1,056 stocks advanced. Eighty seven stocks closed unchanged.
Sectoral & stock screening
Of the 13 sectoral indices in the BSE, eight were battered. Among the major losers, BSE Oil & Gas lost 1.85%, the BSE IT dropped 1.80%, BSE Auto shed 1.27% and BSE TECk declined by 1.27%. Bucking the downtrend, BSE CG (consumer goods) gained 2.80%, BSE HC (health care) advanced 0.53% and BSE FMCG (fast moving consumer goods) up 0.38%.
Among 'A' group stocks: Gainers' were - ABB surged the most by 23.44% after its parent company made an open offer at Rs900 per share, followed by Piramal Healthcare that rose 6.78%, and Everest Kanto Cylinder that jumped 5.39%. Losers' were -Aban Offshore topped the losers' chart, with a loss of 4.59%, followed by Punj Lloyd that slid by 4.36%, and Bhushan Steel that fell by 4.27%.
Viewing volumes
Anil Dhirubhai Ambani Group company Reliance Natural Resources continued to witness highest trading with over 0.74 crore shares changing hands on the BSE, followed by wind turbine major Suzlon Energy (0.59 crore shares), India's second largest developer Unitech (0.47 crore shares), industrial finance company IFCI (0.41 crore shares) and sugar major Shree Renuka Sugars (0.36 crore shares).
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