India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Friday, November 23, 2007
Weekly Close:: FIIs take a break !
Some sign's of correction were yet again seen this week and this time the correction was largely driven by global issues. US economy continues to shed tears on worsening housing market. No one is clear about how much more the housing market has to worsen before it gets better. FIIs have been sellers in a big way and hence caution prevailed across the board. There were talks that SEBI rejected a few applications and that led to disapppointment. We doubt such a case. The rejetions probably meant more information requirement by SEBI. They would eventually they would come back with that. For now the objective for the RBI is to slow down the inflows a bit and they have the leverage to do that. Indian markets pared off gains but as expected it continued to be buoyant and recovered in late trading sessions on each trading day on value buying. There was some hope of the Nuke deal getting finalised as the Left softened their stand on talks with IAEA. But it is really difficult to comment whether the deal will go through or not as politics is remains as unpredictable as ever.
Most large cap counters were down but Banking was the strong one. This is the one counter where is very first to benefit from a rate cut and thats being expected. SBIs was hot on the rights issue. There is also the market hope of acquisition in mid cap banks. All said and done "one thing we believe is that Indian interest rates are unlikely to rise. A cut in CRR / bank rates is what the RBI could be thinking off. The big question is when. We don't see signs for that yet but we expect one certainly before the end of this fiscal. And when you have interest rates headed down.. you wont see a bear market." This is why we hold the opinion that markets will be ranged struggling between valuations in some and flows on the other.
IT continued to be underowned and we don't see any drastic change happening here in short run. ICICI CEO K V Kamath warned that the Rupee would strengthen by 1 or 2 against the dollar each year, irrespective of whatever was done to check the rising Indian currency. We do not disagree with that. However, factors against a strong rupee could be high crude oil prices which will put pressure, lower growth itself for the IT sector where business conditions may not remain as sanguine. Slower growth itself for the economy and to add to that would be coming elections when the Government tends to lose its purse strings and ignores deficits. Do read economy taking stock !
Markets this week: Sensex ended down by 4%; Nifty slipped 5%; Reality cap goods and FMCG ended down by 6%; Oil and gas index ended down 4%; IT index down 3%; Mid cap index down 4%; Banking and Metal index down 4%; Smal Cap index down 2%; Maruti, Suzlon and MTNL down 10%; Bajaj 9% up; IOC 20% down; Nalco down 18%; VSNL and BHEL down 9%; TATA motors up 3%; KEC infra down 22%; UCO up 12%; REL down 5%.
TC was in news. The stock rallied sharply in the last few days followed by some profit taking as well. It was in the news for eyeing Parle's Candy business and earlier Parrys confectionary as well. It is pursuing growth opportunities through acquisitions across categories. Parle Products confectionery basket includes strong heritage brands such as Poppins, Kismi, Melody, Mango Bite, Rol-a-Cola, Mints and Orange Candy, among others. ITC has two confectionery brands, Candyman and Mint-O Fresh in its portfolio. ITC has been extremely aggressive. We have been cautious on ITC largely on the back of its Management which has been at loggerheads with BAT (34% stake in ITC). ITC has been managed as a personal fiefdom with expansions across categories including, FMCG products including agarbattis, Matchboxes, garments and now shampoos, Confectionary apart from its mainstay of cigarettes, Hotels and Paper. The idea is to use the cash thrown up by the strong cashflow business of Cigarettes. The bet is that BAT will come in eventually. However we dont think there is much value even then.
Everest Kanto: CLSA mid cap conference brought in some interest here. Everest Kanto is one of the leading high pressure steel cylinder manufacturers in the world for two main applications - industrial and CNG (compressed natural gas). CNG is expected to be the key growth driver going forward. EKC is uniquely positioned to do so because of its long term raw material sourcing relationship with Tenaris. We agree that EKC has certainly done well. The company has enjoyed first mover advantage and that can be seen from the revenue growth and exponentially high margins. The margins we believe are unsustainable over the longer term. We see no sustainable competitive advantage in this business. Clearly a case of optimistic exuberance.
Bata: Business is doing well here.. and that may deliver. The recent run up we believe has more than priced it in. However, its surprising to note that the company spends less than 1% on brand building. Of course the big upside in this is the realisation from of the property in Calcutta. It?s the quantum and the time frame for receiving that.
Solar Explosives: This company recently acquired a 74% stake in company which is looking to acquire a coal mine and not an explosives company as we had anticipated. Some reason to cheer here.. though valuations we believe are pricing in quite a bit of optimism. The mystery element is the mine it will get. Apparenlty the mine size could be around 30 - 40 mn tonnes. Solar would thus benefit from largesse received from the Government as a coal mine but its core competency is the explosives business and thats where it will do well. We are convinced on that.
We believe that its unwise to pick tops and bottoms and lets just have a strategy in the current environment. We believe that the "Callous" comfort of market direction has the possibility to hit markets badly. Valuations have been stretched in the large cap companies and these excess could cool off. The Companies such as Reliance Energy, Reliance Petroleum, RNRL, Essar Oil where the run ups have been on the back of skewed logic. Of course valuations of Reliance Larsen, BHEL, ABB are others which could be made to eat humble pie.
In such a scenario it will be tough for Mid caps to hold out. There has been a strong run up in the mid caps. Quite a bit of that has already come off on profit taking. We believe Markets could head to the lower level of the range. One crucial support which may sound extremely bearish now is around 15100 levels for the Sensex. But that would be an extreme case of negativism. Its unlikely to be a sharp fall as the underlying Momentum, the cash on the sidelines, the "Left Out" feeling will have supports coming in at each lower level of support which would result in bounce at every fall. But, we would recommend to get into some value stocks with sound fundamentals rather than getting carried away with the rally.
Technically Speaking: As we mentioned of 18900 levels, Sensex failed to cross this levels for the second day. On Monday if it crosses this 18900 levels could take us to 19100+ levels. But If failed we could see 17200 levels.
Market loses ground on FII sales
The market lost ground as foreign investors continued to withdraw funds from Indian markets amidst growing unease over US economic outlook and weakening credit markets in the US. Housing sector slump in United States coupled with weak dollar and surging oil prices weighed on global markets.
The Japanese yen strengthened to a two-year high against the dollar and also gained against the euro as investors reversed carry trades, where they borrow yen to buy high-yielding but risky assets.
Crude oil prices climbed back above $97 a barrel in thin trade on Friday, 23 November 2007 buoyed by the unrelenting decline in the US dollar. London Brent crude rose 35 cents to $94.85 a barrel, while US light crude for January delivery stood at $97.35 a barrel.
The 30-share BSE Sensex fell 845.49 points or 4.29% to 18,852.87 in the week ended Friday, 23 November 2007. The broader S&P CNX Nifty fell 298.25 points or 5.04% to 5608.60.
The BSE Mid-Cap index fell 3.33% to 8,228.50, while the BSE Small-Cap fell 2.02% to 10,171.43.
On Monday, 19 November 2007, the 30-share BSE Sensex lost 64.53 points or 0.33% at 19,633.36. The broader CNX S&P Nifty was up 0.8 points or 0.01% at 5,907.65. The market lost ground in late trade as index heavyweight Reliance Industries dropped and ITC slipped.
On Tuesday, 20 November 2007, the market slipped deep into the red in late trade as IT and metal stocks tumbled. The 30-share BSE Sensex lost 352.56 points or 1.8% at 19,280.80. The S&P CNX Nifty ended down 126.75 points or 2.15% to 5,780.90.
On Wednesday, 21 November 2007, the 30-share BSE Sensex lost 678.18 points or 3.52% at 18,602.62. At day’s low of 18,515.30 Sensex had lost 765.50 points. The broader CNX S&P Nifty was down 219.85 points or 3.8% at 5,561.05.
On Thursday, 22 November 2007, the market bounced back in late trade as banking and auto stocks jumped amidst volatile trade. The Sensex ended down 76.30 points or 0.41% at 18,526.32. The S&P CNX Nifty ended 41.7 points or 0.75% lower at 5,519.35.
On Friday, 23 November 2007, the market shrugged off blasts in Uttar Pradesh and galloped in late trade on a volatile day of trading. It snapped the last six day losses by posting decent gains today. The 30-share BSE Sensex rose 326.55 points or 1.76% at 18,852.87. The S&P CNX Nifty rose 89.25 points or 1.62% to 5,608.60.
The BSE Bankex fell 5.35% to 10,414.36 in the week ended Friday, 23 November 2007. ICICI Bank fell 6.49% to Rs 1140.35 in the week, State Bank of India declined 3.20% to Rs 2251.20 and Axis Bank fell 4.58% to Rs 929.95.
The BSE Capital Goods index fell 6.43% to 19,316.12 in the week. Larsen & Toubro fell 6.29% to Rs 411.50, Bharat Heavy Electricals (Bhel) dropped 8.73% to Rs 2543.20 and Jaiprakash Associates gained 6.93% to Rs 1625.95.
The BSE IT index declined 3.41% to 4,017.10. Infosys Technologies fell 4.03% to Rs 1558, Wipro fell 3.55% to Rs 442.05 and TCS declined 2.26% to Rs 985.50.
The BSE Power index fell 6.74% to 4,282.35. Reliance Energy declined 5.51% to Rs 1725.10, Neyveli Lignite fell 0.60% to Rs 214.30, Power Grid Corporation of India fell 2.92% to Rs 151.20 and NTPC slumped 10.48% to Rs 236.60.
Financial services provider Religare Enterprises debuted on 21 November 2007. The stock debuted at Rs 323.75, a premium of 75% over the IPO price of Rs 185. The stock settled at Rs 521.70 on BSE on that day, a premium of 182% over IPO price.
Varun Industries, a Mumbai-based exporter of stainless steel kitchenware, debuted on exchanges on 22 November 2007. The stock debuted on BSE at Rs 105, a 75% premium compared to its issue price of Rs 60. It ended at Rs 112.65 on BSE, a premium of 87.75% over IPO price.
Allied Computers International, a Mumbai based IT hardware company, debuted on BSE on Friday, 23 November 2007 at Rs 21, a 75% premium compared to its issue price of Rs 12. It settled at Rs 37.70 on BSE, a premium of 214.16% over IPO price.
Barak Valley Cements, which manufactures various grades of ordinary portland cement, debuted on BSE on Friday, 23 November 2007 at Rs 65, a 54.76% premium over IPO price of Rs 42. It settled at Rs 56.05 on BSE, a 33.45% premium compared to IPO price.
Rathi Bars, which manufactures cold twisted deformed (CTD) steel bars and thermo-mechanically treated (TMT) steel bars, debuted on BSE on Friday, 23 November 2007 at Rs 38, an 8.57% premium over IPO price of Rs 35. It settled at Rs 31.90 on BSE, an 8.85% discount as compared to IPO price.
A large number of foreign investors want to register in India to participate in the booming stock market, Securities & Exchange Board of India (Sebi) chief M. Damodaran, told a business conference on Wednesday, 21 November 2007. He said a number of FIIs have approached Sebi for registration in the past one month.
India's wholesale price index rose 3.01% in the 12 months to 10 November 2007, below the previous week's rise of 3.11%, government data released on Friday, 23 November 2007, showed. The annual inflation rate was 5.39% during the corresponding week of the previous year
FII activity holds key
The market may remain volatile in the coming week ahead of expiry of November 2007 derivatives contracts on Thursday, 29 November 2007. Outflow of funds by foreign investors may also weigh on sentiments. The market has been volatile over the past few days on concerns over the impact of the US sub-prime mortgage problems on the US economy. These concerns may continue to cast their shadow on the markets in the weeks to come.
As per provisional data, FIIs sold shares worth a net Rs 2487.71 crore on Thursday, 22 November 2007.
FII selling may continue in the near term as they may resort to year-end profit taking. FIIs follow calendar year as their accounting year.
India's wholesale price index rose 3.01% in the 12 months to 10 November 2007, below the previous week's rise of 3.11%, government data released on Friday, 23 November 2007, showed. The annual inflation rate was 5.39% during the corresponding week of the previous year.
The Q2 September 2007 results of India Inc. were decent to strong, which means that strong fundamentals would support Indian equities at declines. At the macro level, the India’s economy is expected to post decent to strong growth for a long period of time, mainly due to favourable demographics.
IPO Listing Updates
Barak Valley Cements on Friday surged 33.45 per cent over its issue price of Rs 42 to settle at Rs 56.05 on the Bombay Stock Exchange.
The scrip opened at Rs 65 and touched an intra-day high of Rs 72 and a low of Rs 53.10. A total of over 84.73 lakh equity shares changed hands at BSE.
The initial public offer (IPO) of the cement manufacturer had received robust response from investors and was subscribed around 29 times.
The money raised through IPO would be used to fund the production capacity expansion programmes, the company said. BVCL has earmarked an investment of Rs 55 crore for purchasing and upgrading its equipment and other expansion plans in the two units.
While, the scrip of steel manufacturer Rathi Bars fell below its issue price to Rs 31.90. Earlier in the morning, the company got listed with a marginal premium of 8.57 per cent at Rs 38.
The scrip touched an intra-day high of Rs 45 and a total of 62.48 lakh shares changed hands at the BSE.
The company will list its 71.43 lakh equity shares. The proceeds from the issue would be utilised for expansion and modernisation including purchase of plant and machinery, building and civil works, requirement of working capital, preliminary expenses and production launch expenses.
Further, Allied Computers International scrip surged 214 per cent to end at Rs 37.70.
The scrip touched an intra-day high of Rs 41.25 over its issue price of Rs 12. A total of 2.74 crore shares changed hands at the BSE.
Six points to sustain high growth rate
To achieve high and sustained GDP growth rate, the Associated Chamber of Commerce (ASSOCHAM) has proposed making India a common economic market by implementing Goods and Services Tax (GST), reduction in the excise duties, rationalisation of taxes on key infrastructure, encouragement of indigenous R&D, corporatisation of agriculture and promotion of India as a global headquarter of business enterprises.
At the meeting with the officials of the Finance Ministry chaired by Revenue Secretary, P.V. Bhide, the industry chamber has stressed the need to implement GST at the earliest so that cascading effect of taxes is removed form indigenous manufacturing and services cost, transaction cost is reduced and trade and industry grow faster by taking advantage of scale economy and efficient supply chain.
The process of replacing existing complex indirect tax system by GST should be initiated in the forthcoming Union Budget by taking initial steps towards GST, according to ASSOCHAM. It has suggested that the CST rate should be reduced from 3% to 2% as a step towards creating Indian common market. Excise and service tax be integrated into Central GST during 2008-09 and sugar & textiles should be brought from special duty regime to VAT regime, ASSOCHAM adds.
The ASSOCHAM delegation says that the manufactured goods are still quite expensive. Therefore, a reduction in the excise duty rate to 12% will make them affordable to larger population and will boost their demand, accelerating the manufacturing sector’s growth with minimum impact on revenue. Such reduction will also align the tax rates under excise and service tax, facilitating their integration under Central GST. The excise duty rate on automobiles should also be moderated by removing the special excise duty on this sector, the chamber says.
To upgrade the country's infrastructure significantly to sustain economic growth, ASSOCHAM President Venugopal N. Dhoot says that service tax and excise duty on inputs during the investment phase should be exempted from tax or refunded. Tax may be collected once the projects are put to use and start earning revenue, he adds.
At present, a large number of Indian companies are investing overseas for profitable growth and strategic advantage. Any dividend remittance by such foreign companies to India attracts full tax even where such profit from which dividend is remitted has suffered tax in the host country. This has led to Indian companies setting up head offices abroad or parking funds overseas.
Many countries exempt such dividend where the shareholding is substantial (20% to 40%), ASSOCHAM says. India should promote itself as a headquarter of business enterprises and retain long term capital in India by exempting dividend remitted by foreign subsidiaries or associates with 40% or more investment, it adds. Alternatively the tax paid on profit from which dividend is declared should be given credit.
ASSOCHAM suggests the creation of an Agriculture Economic Zone on the line of SEZ, in order to achieve the agriculture growth of at least 4% on the sustainable basis. The Government will have to ensure adequate investments in the areas like pre & post harvest management, food processing, export promotion related activities, specific crop related activities and application of the R&D to the agricultural production, the chamber adds.
In order to ensure that there is adequate quality produce, investment in irrigation, transport, rural electrification and telecom will be required apart from pre and post harvesting activities, feels ASSOCHAM. This will help develop rural infrastructure as well as provide employment to people engaged in agriculture, it adds.
For a strong research base and pool of intellectual properties, ASSOCHAM proposes that scientific research in emerging sectors like bio-technology, nanotechnology, industrial deigns, IT, telecom, food processing, medicines and engineering should be given favourable tax treatment under direct and indirect taxes to encourage such activities and the double taxation of intellectual properties under service tax and VAT regime should be discontinued.
Weekly positional calls
While the Sensex staged a smart recovery on Friday, for the week it closed down 4.3% or 845 points. The Nifty fell by 5% or 298 points to close at 5609. A lot will again depend on global cues in the coming week. To add to the volatility, we have the F&O expiry.
Short-term traders will continue to be the worst hit if wild swings take place. Long-term players can take solace in the fact that any correction gives them an opportunity to get some heavyweights at relatively lower prices. Besides stocks like Reliance, sectors to watch out for would be power and banking.
Buy RPL
Buy HPCL
Buy NTPC
Buy R Com
Buy Bajaj Auto
Govt clears FDI proposals
The government today approved 22 foreign direct investment (FDI) proposals entailing an inflow of Rs 511.5 crore, including that of World Bank's private sector arm IFC and global private equity player Goldman Sachs.
International Finance Corporation will take up 18% stake in domestic stocks and commodities brokerage firm Angel Infin for Rs 152 crore. US-based Goldman Sachs and Australia's Macquarie will pick 40% stake in PTC India Financial Services, a non-banking financial arm of power trading firm PTC India, for Rs 155.74 crore.
The proposals were cleared by finance minister P Chidambaram on the recommendations of Foreign Investment Promotion Board (FIPB), an official statement said.
"The equity investment will support Angel Infin, based in Mumbai, to expand its operations to tier II and III cities in India and introduce new products," official sources said.
However, a proposal of Flemingo to open duty free shops outside airports and in hotels has been rejected. A proposal of leading retailer Dolce & Gabbana to set up a joint venture with 51% stake to undertake single brand retailing of fashion and lifestyle products has been put on hold.
FIPB has also deferred a decision on the proposal of Russia's Sistema Joint Stock Financial Corp to increase its stake from 10% to 74% in a telecom firm.
Brokerage Reports
BHARAT FORGE
Religare Securities believes Bharat Forge valuations are attractive at current levels and has maintained a ‘Buy’ call on the stock with a target price of Rs 404 on a price to earning of 22.5x on FY09 estimate. This makes for an upside of 25 per cent to the current price of Rs 322.
Bharat Forge is currently trading at P/E of 17.9 times and EV/EBIDTA of 8.8 times 2008-09 estimate. The brokerage also valued the company on DCF, which yields a fair value of Rs 406 based on weighted average cost of capital of 13 per cent, beta of 1 per cent and terminal growth of 3 per cent.
The company will be incurring capital expenditure of Rs 330 crore during the current year and in 2008-09 to set up greenfield capacities for non-automotive foray at Pune, Mundwa and Baramati. Construction has already started and is expected to begin trial production in the first and second quarter of 2008-09 (April-March). It expects contribution from the non-automotive business to increase the consolidated revenue from 10 per cent to 17 per cent by end of 2009-10.
Bharat Forge has no immediate plans to increase the forging capacity catering to the automotive industry. The company will instead focus on improving productivity to meet the robust demand. The company’s standalone EBIDTA margin has declined, but has improved on consolidated basis.
It experienced a 150 basis points decline in standalone EBIDTA margin to 24.6 per cent in July-September quarter due to 28 per cent increase in expenditure. As a result, the company reported slower growth in EBIDTA at 18 per cent to Rs 140 crore.
However, the consolidated EBIDTA margin improved 40 basis points year on year and 320 bps quarter on quarter to 16.6 per cent in second quarter of 2007-08 due to high productivity in China operations. Thus, consolidated operating profit increased 11 per cent year on year to Rs 180 crore.
BOMBAY RAYON FASHIONS
Brokerage Prabhudas Lilladher has re-initiated coverage on Bombay Rayon Fashions with a ‘buy’ recommendation for target price of Rs 620. Bombay Rayon Fashions plans to invest Rs 1,100 crore over a span of three years in Maharashtra, to set up six manufacturing units, and this would quadruple and nearly double its fabric and garment manufacturing capacities.
The company has also signed an agreement with the Maharashtra government, to set up its fabric processing and garmenting units in the state. The brokerage expects this initiative to contribute about Rs 1,000 crore in revenue in 2009-10, expanding operating margin by about 500 basis points and net margin by 200 basis points.
Revenue is expected to grow at 73 per cent CAGR and earnings by 77 per cent over 2007-2010. With better government support and greater operational synergies, the company could witness margin expansion of about 740 basis points over 2008-10 estimate, says the brokerage.
At the current price, the stock is trading at 21.3 times, 11.6 times, 6.2 times 2007-08, 2008-09 and 2009-10 estimated earnings per share respectively. The brokerage has derived the target price of Rs 620 (93% upside), by assigning 2009-10 estimated earning per share, an estimate of Rs 51.8, a 12 times PER multiple.
Prabhudas Lilladher believes the true picture of company’s financials would only emerge in 2009-10, once the Maharashtra plans come on-stream.
Post Market Commentary
The market closed on an upbeat note by creating a rally over all the sectoral indices. All the sectotral indices closed in a positive territory. Most buying is seen Metals, Capital goods, Realty and Oil & gas indices scrips. The market pared most of gains at the mid session as the news about the three bomb blasts in UP came but it doesnot put any pressure on the investors mind for long and recovered well to closed the session on a impressive note. The Sensex covers an intraday high of 18,910.46 and low of 18,548.06 during the trading session. Finally, BSE Sensex closed with a hand some gain of 326.55 points at 18,852.87 and NSE Nifty closed up by 89.25 points at 5,608.60. Overall, the market breadth was strong as 1,760 stocks are closed higher while 1034 are closed lower. Both BSE Mid cap and Small cap grew by 137.66 points and 110.56 points to close at 8,228.50 and 10,171.43 respectively.
BSE Auto index closed up by 77.39 points at 5,256.55 as Escorts (8.42%), TVS (4.52%), MICO (4.41%), Bharat Forge (4.09%), Tata Motors (3.27%) and Bajaj Auto (2.46%) closed in green.
BSE Capital Goods index closed higher by 500.94 points at 19,316.12. Pushing it up are Alstom projects (4.75%), Praj industries (4.39%), L&T (4.02%), ABB (3.22%), BHEL (2.34%) and Siemens by (2.23%).
BSE Metal index surged by 548.96 points to closed at 16,594.08. Pushed up by Jindal steel (20.74%), Welspun Gujarat stalh (7.70%), Jindal Stainless (6.68%), Sterlite (4.60%) and SAIL (1.94%).
BSE oil & gas index surged by 295.40 points to closed at 11,987.47. Jumped by Essar oil by (12.50%), RNRL (6.75%), Aban Offshore (3.75%), Reliance industries (3.03%)
BSE Power index grew by 131.28 points to close at 4,282.35. Scrips that grew are Reliance energy (7.48%), Torrent Power (7.39%), Power Grid (6.59%), GMR Infra (4.74%), NTPC (3.98%).
BSE IT index closed up by 57.20 points at 4,017.10 as Educomp solution (9.35%), Tech Mahindra (5.13%), HCL tech (4.42%), NIIT tech (3.68%), and Infosys (1.71%) are closed lower
Sensex gains 327 points on bargain hunting
The market shrugged off blasts in Uttar Pradesh and galloped in late trade on a volatile day of trading. It snapped the last six day losses by posting decent gains today. Reliance Industries surged in late trade. Reports of three blasts in Uttar Pradesh had pulled the market off higher level in mid-afternoon trade. It instantly recovered from lower level later. Earlier, the market had surged in afternoon trade.
Three consecutive blasts outside civil courts in Lucknow, Varanasi and Faizabad in Uttar Pradesh today killed five people and injured many more.
Capital goods, power, realty, metal stocks gained. Reliance Energy and DLF were the major gainers whereas Maruti Suzuki india and HDFC Bank were major losers from Sensex pack. The market breadth was strong. European markets which opened after Indian market were firm. Asian markets, which opened before Indian market, were mixed.
India's wholesale price index rose 3.01% in the 12 months to 10 November 2007, below the previous week's rise of 3.11%, government data released today afternoon showed. The annual inflation rate was 5.39% during the corresponding week of the previous year.
The 30-share BSE Sensex rose 326.55 points or 1.76% at 18,852.87. Sensex hit a low of 18,548.05 in mid-afternoon trade. At day's low, Sensex was up just 21.74 points for the day. Sensex hit a high of 18,910.46 in early afternoon trade. At day’s high of 18,910.46, Sensex had gained 384.14 points.
The S&P CNX Nifty rose 89.25 points or 1.62% to 5,608.60.
BSE clocked a turnover of Rs 6140 crore, lower than Thursday (22 November 2007)'s Rs 7,127.32 crore.
Nifty November 2007 futures were at 5620, at a premium of 11.40 points as compared to spot closing of 5608.60.
NSE’s futures & options (F&O) segment turnover was Rs 66,744.48 crore, which was lower than Rs 71,149.36 crore on Thursday, 22 November 2007.
The market breadth was strong. On BSE, 1,727 stocks advanced, 1,034 stocks declined and 33 stocks were unchanged. 22 out of 30 stocks from the Sensex pack were in the green.
The BSE Mid-Cap index rose 1.7% to 8,228.50 and the BSE Small-Cap index up 1.1% to 10,171.43. Both these indices underperformed Sensex.
BSE Auto index (up 1.49% to 5,256.55), BSE Bankex (up 0.08% to 10,414.36), BSE FMCG (up 0.36% to 2,111.34), BSE Health Care index (up 0.01% to 3,810.92), BSE IT index (up 1.44% to 4,017.10) and BSE PSU index (up 0.81% to 9,502.09) underperformed Sensex.
BSE Capital Goods index (up 2.66% to 19,316.12), BSE Metal index (up 3.42% to 16,594.08), BSE Oil & Gas index (up 2.53% to 11,987.47), BSE Power index (up 3.16% to 4,282.35) and BSE Realty (up 3.45% to 9,783.36) outperformed Sensex.
Index heavyweight and India’s largest private sector firm by market capitalisation Reliance Industries was up 3.03% to Rs 2,811.45.
Metal stocks surged in late trade. Sterlite Industries (up 4.6% to Rs 879.10), Steel Authority of India (up 1.94% to Rs 251.75),Hindalco Industries (up 0.86% to Rs 188.05) and Tata Steel (up 0.19% to Rs 820.50) edged higher.
India’s largest truck maker by sales Tata Motors rose 3.27% to Rs 714.65 after union leaders at Ford Motor Co's Land Rover and Jaguar brands agreed on Thursday, 22 November 2007, to support the Indian firm's bid for the brands. Tata Motors, Mahindra & Mahindra and buyout firm partner Apollo, and JP Morgan-backed One Equity Partners, are reportedly in race to acquire the Ford brands.
Power stocks surged. India's biggest power generation firm by revenue NTPC rose 3.98% to Rs 236.60. NTPC announced after market hours on Thursday, 22 November 2007 that the company and Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL) have signed a memorandum of understanding for the formation of a joint venture company (JVC) for establishing and operating a coal based thermal power project at Meja Tehsil or any other suitable site in Allahabad district in the state of Uttar Pradesh.
Reliance Energy (up 7.48% to Rs 1,725.10) and PowerGrid Corporation of India (up 6.59% to Rs 151.20) edged higher.
Realty stocks gained. India’s largest real estate developer by market capitalisation DLF rose 5.58% to Rs 868.65. As per reports, Fortis Healthcare and DLF are close to signing an agreement to set up 15 hospitals in the next five years on lands situated in the real estate giant’s townships in India. As per some other reports, leading US quick service restaurant (QSR) chains Burger King and Wendy's are having talks with India's largest real estate company DLF for a foray into the Indian market.
Indiabulls Real Estate (up 1.86% to Rs 614.05), Unitech (up 3.58% to Rs 339.95) edged higher.
Capital goods stocks surged. Larsen & Toubro (up 4.02% to Rs 4,100.50), Bharat Heavy Electricals (up 2.34% to Rs 2,543.20) and Suzlon Enegy (up 0.14% to Rs 1,859.75) edged higher.
India's biggest dedicated housing finance firm in terms of revenue HDFC rose 4.12% to Rs 2,666.30.
Maruti Suzuki India (down 2.07% to Rs 946.70) Cipla (down 0.93% to Rs 181.25) and ITC (down 0.57% to Rs 184.15), HDFC Bank (down 1.97% to Rs 1,562.70) and ONGC (down 0.32% to Rs 1,145.85) edged lower.
Jindal Steel rose 20.7% to Rs 12,096 and was the top gainer from A group shares on BSE. Neyveli Lignite (up 18.3% to Rs 214.30), Welspun Gujarat Stahl Rohren (up 7.7% to Rs 399.30), Escorts (up 8.42% to Rs 148.15) and Indian Bank (up 10.03% to Rs 166.75) edged higher.
Tata Teleservices Maharashtra rose 7.09% to Rs 48.35 and clocked the highest volume of 2.52 crore shares on BSE. Reliance Petroleum clocked the second highest volume of 1.75 crore and it rose 0.29% to Rs 209.50. Reliance Natural Resources clocked the third highest volume of 1.63 crore and it rose 6.75% to Rs 158.20. Ispat Industries rose1.16% to Rs 39.10 and clocked the fourth highest volume of 1.12 crore shares.Essar Oil rose 12.5% to Rs 194.45 and clocked the fifth highest volume of 1 crore shares.
Reliance Petroleum clocked the highest turnover of Rs 367.34 crore on BSE. Reliance Energy (Rs 291.3 crore), Reliance Natural Resources (Rs 252.75 crore), Reliance Industries (Rs 232.69 crore) and Reliance Capital (Rs 202.84 crore) were other turnover toppers on BSE in that order.
Khaitan Weaving Mills hit 5% upper circuit at 293.45 after it fixed 14 December 2007 as the record date for the purpose of determining the entitlement of right offer of equity shares in the ratio 6:1.
Shares in DCM Shriram Industries hit 5% upper circuit at Rs 88.05 on reports that the founders offered to raise the warrants subscription price to Rs 90 each from Rs 52 at a Company Law Board hearing. The move was in response to a petition from a large shareholder seeking a stay on the preferential issue of warrants due to low pricing.
Asian Oilfield Services hit 5% upper circuit at Rs 205.15. It announced after the market hours on Thursday, 22 November 2007 that a meeting of the board of directors of the company will be held on 23 November 2007, to consider the issue and allotment of equity shares and/or warrants on preferential basis to strategic investors.
European markets were firm. France’s CAC 40 (up 0.63% to 5,450.46), Germany’s DAX (up 0.26% to 7,581.80) and UK’s FTSE 100 (up 0.97% to 6,215.10) edged higher.
Asian markets were trading mixed today, 23 November 2007. Hong Kong's Hang Seng (up 2.06% at 26,541.09), China’s Sanghai Composite (up 0.96% to 5,032.13) and Singapore's Straits Times (up 0.39% to 3,325.89) rose. However, Taiwan's Taiwan Weighted (down 1.85% at 8,342.20) and South Korea's Seoul Composite (down 1.45% at 1,772.88), slipped. Japanese stocks market is closed today for Labour Thanksgiving Day.
US markets remained closed for Thanksgiving day yesterday, 22 November 2007.
Crude oil prices climbed back above $97 a barrel in thin trade on Friday, 23 November 2007 buoyed by the unrelenting decline in the US dollar. London Brent crude rose 35 cents to $94.85 a barrel, while U.S. light crude for January delivery stood at $97.35 a barrel.
RIL leads rally
The market shrugged off blasts in Uttar Pradesh and galloped in late trade on a volatile day of trading. Reliance Industries surged in late trade. Reports of three blasts in Uttar Pradesh had pulled the market off higher level in mid-afternoon trade. It instantly recovered from lower level later. Earlier, the market had surged in afternoon trade.
Three consecutive blasts outside civil courts in Lucknow, Varanasi and Faizabad in Uttar Pradesh today killed five people and injured many more.
Capital goods, power, realty, metal stocks gained. Reliance Energy and DLF were the major gainers whereas Maruti Suzuki india and HDFC Bank were major losers from Sensex pack. The market breadth was strong. European markets which opened after Indian market were firm. Asian markets, which opened before Indian market, were mixed.
India's wholesale price index rose 3.01% in the 12 months to 10 November 2007, below the previous week's rise of 3.11%, government data released today afternoon showed. The annual inflation rate was 5.39% during the corresponding week of the previous year.
The 30-share BSE Sensex provisionally ended up 323.32 points or 1.75% at 18,849.64. Sensex hit a low of 18,548.05 in mid-afternoon trade. At day's low, Sensex was up just 21.74 points for the day. Sensex hit a high of 18,910.46 in early afternoon trade. At day’s high of 18,910.46, Sensex had gained 384.14 points.
The S&P CNX Nifty rose 93.9 points or 1.7% to 5,613.25.
BSE clocked a turnover of Rs 6140 crore, lower than Thursday (22 November 2007)'s Rs 7,127.32 crore.
The market breadth was strong. On BSE, 1,726 stocks advanced, 1,038 stocks declined and 32 stocks were unchanged. 22 out of 30 stocks from the Sensex pack were in the green.
The BSE Mid-Cap index rose 1.75% to 8,232.07 and the BSE Small-Cap index up 1.19% to 10,180.59.
Index heavyweight and India’s largest private sector firm by market capitalisation Reliance Industries was up 3.53% to Rs 2,825.
Metal stocks surged in late trade. Sterlite Industries (up 5.53% to Rs 886.90), Steel Authority of India (up 2.41% to Rs 252.90),Hindalco Industries (up 0.8% to Rs 187.95) and Tata Steel (up 0.01% to Rs 819) edged higher.
India’s largest truck maker by sales Tata Motors rose 2.6% to Rs 710 after union leaders at Ford Motor Co's Land Rover and Jaguar brands agreed on Thursday, 22 November 2007, to support the Indian firm's bid for the brands. Tata Motors, Mahindra & Mahindra and buyout firm partner Apollo, and JP Morgan-backed One Equity Partners, are reportedly in race to acquire the Ford brands.
Power stocks surged. India's biggest power generation firm by revenue NTPC rose 3.98% to Rs 236.60. NTPC announced after market hours on Thursday, 22 November 2007 that the company and Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL) have signed a memorandum of understanding for the formation of a joint venture company (JVC) for establishing and operating a coal based thermal power project at Meja Tehsil or any other suitable site in Allahabad district in the state of Uttar Pradesh.
Reliance Energy (up 7.48% to Rs 1,725.10) and PowerGrid Corporation of India (up 6.59% to Rs 151.20) edged higher.
Realty stocks gained. India’s largest real estate developer by market capitalisation DLF rose 5.58% to Rs 868.65. As per reports, Fortis Healthcare and DLF are close to signing an agreement to set up 15 hospitals in the next five years on lands situated in the real estate giant’s townships in India. As per some other reports, leading US quick service restaurant (QSR) chains Burger King and Wendy's are having talks with India's largest real estate company DLF for a foray into the Indian market.
Indiabulls Real Estate (up 1.86% to Rs 614.05), Unitech (up 3.58% to Rs 339.95) edged higher.
Capital goods stocks surged. Larsen & Toubro (up 4.02% to Rs 4,100.50), Bharat Heavy Electricals (up 2.34% to Rs 2,543.20) and Suzlon Enegy (up 0.14% to Rs 1,859.75) edged higher.
India's biggest dedicated housing finance firm in terms of revenue HDFC rose 4.12% to Rs 2,666.30.
Maruti Suzuki India (down 2.07% to Rs 946.70) Cipla (down 0.93% to Rs 181.25) and ITC (down 0.57% to Rs 184.15) edged lower.
Jindal Steel rose 20.7% to Rs 12,096 and was the top gainer from A group shares on BSE. Neyveli Lignite (up 18.3% to Rs 214.30), Welspun Gujarat Stahl Rohren (up 7.7% to Rs 399.30), Escorts (up 8.42% to Rs 148.15) and Indian Bank (up 10.03% to Rs 166.75) edged higher.
Khaitan Weaving Mills hit 5% upper circuit at 293.45 after it fixed 14 December 2007 as the record date for the purpose of determining the entitlement of right offer of equity shares in the ratio 6:1.
Shares in DCM Shriram Industries hit 5% upper circuit at Rs 88.05 on reports that the founders offered to raise the warrants subscription price to Rs 90 each from Rs 52 at a Company Law Board hearing. The move was in response to a petition from a large shareholder seeking a stay on the preferential issue of warrants due to low pricing.
Asian Oilfield Services hit 5% upper circuit at Rs 205.15. It announced after the market hours on Thursday, 22 November 2007 that a meeting of the board of directors of the company will be held on 23 November 2007, to consider the issue and allotment of equity shares and/or warrants on preferential basis to strategic investors.
European markets were firm. France’s CAC 40 (up 0.55% to 5,445.62), Germany’s DAX (up 0.15% to 7,572.64) and UK’s FTSE 100 (up 0.9% to 6,210.70) edged higher.
Asian markets were trading mixed today, 23 November 2007. Hong Kong's Hang Seng (up 2.06% at 26,541.09), China’s Sanghai Composite (up 0.96% to 5,032.13) and Singapore's Straits Times (up 0.39% to 3,325.89) rose. However, Taiwan's Taiwan Weighted (down 1.85% at 8,342.20) and South Korea's Seoul Composite (down 1.45% at 1,772.88), slipped. Japanese stocks market is closed today for Labour Thanksgiving Day.
US markets remained closed for Thanksgiving day yesterday, 22 November 2007.
As per provisional data, FIIs sold shares worth a net Rs 2487.71 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 1341.15 crore on Thursday, 22 November 2007.
Foreign institutional investors (FIIs) were net sellers to the tune of Rs 240.07 crore in the futures & options segment on Thursday. According to data released by the NSE, FIIs were net sellers of index futures to the tune of Rs 544.02 crore and bought index options worth Rs 154.75 crore. They were net buyers of stock futures to the tune of Rs 153.02 crore and sold stock options worth Rs 3.82 crore.
Crude oil prices climbed back above $97 a barrel in thin trade on Friday, 23 November 2007 buoyed by the unrelenting decline in the US dollar. London Brent crude rose 35 cents to $94.85 a barrel, while U.S. light crude for January delivery stood at $97.35 a barrel.
Subscribe to:
Posts (Atom)