There's really no fun in being sensible all the time....
The bulls are well enjoying every bit of the move these days. Global cues will work to their advantage this morning as US and Asian markets have gained. A big drop in the yen and encouraging comments from the chairman of the Federal Reserve kept the global indices higher.
After a strong start, expect swings on account of the F&O expiry in the local bourses today. Many more shorts are likely to get covered though September is usually a bad month globally for the markets. No new strategy to adopt for the day. A run-up close to the 16,000 levels appears on the cards again (as of now).
Puravankara Projects Ltd, a real estate company will be listed on the BSE and the NSE today. The company had extended its IPO period and reduced its price band from Rs 500- 525 to Rs 400-450 a share.
Buzz is that Patni stake sale has been finalised. Expect an announcement next week. Apax Partners and Cerberus PE are likely to buy 45% stake in the company. Expectations are that the transaction will take place between Rs 700 - 720 per share.
Stocks expected to witness positive action in the coming days include Arvind Mills, Escorts, TFCI and Ranbaxy.
Gammon India may develop budget hotels in India with Wyndham Worldwide Corp.
Mr Ratan Tata, Chairman, Tata Steel Ltd, said a special 25 per cent dividend had been declared to mark the centenary year of the companyElectrosteel Castings is said to be witnessing accumulation by investors following the company’s decision to invest in a new steel unit
Abbott India Ltd’s board will meet on September 5 to consider a proposal for buyback of a portion of fully paid equity shares of the company at a price to be determined by the board, not exceeding Rs 650 per equity
Priyadarshini Spinning Mills Ltd board has decided to allot 10 lakh warrants, each convertible into one equity share of Rs 10 each at a premium of Rs 15 a share to the promoters on preferential basis
The four-year-old legal tussle between Mr Rahul Bajaj and Mr Shishir Bajaj, who are engaged in a legal battle over division of the Group, looks headed for a settlement.
The empowered group of ministers deliberating on Reliance Industries Ltd's gas pricing formula is likely to clear it with some minor modifications.
Iran is set to further boost its rising crude oil exports to Asia, as OPEC's second-biggest producer is close to concluding its first term contract with BPCL.
There are at least five companies looking at setting up or expanding SPV cell and module capacities in India currently. They include Solar Semiconductors, Signet Solar, Reliance Industries and Moser Baer.
Markets extended their run to third trading session as bulls yet again staged a comeback in the second half of the trading session. Weak global cues coupled with selling pressure dragged the key indices to open lower. However, buying interest in the Metal, Capital Good and Oil & Gas stocks lifted the benchmark Sensex to recover almost 400 points from its days low. Even the Broader market i.e. Mid-Cap and the Smallcap indices recovered adding over 0.5% each. Finally, the BSE 30-share Sensex closed at 14,993 surging 73 points. NSE Nifty added 38 points to close at 4359.
Tata Steel surged by over 9% to Rs662 after the world's sixth-largest steelmaker announced its consolidated operating profit of its Indian operations and Corus Group Plc for the June quarter almost tripled. The scrip touched an intra-day high of Rs663 and a low of Rs590 and recorded volumes of over 67,00,000 shares on NSE.
HDIL slipped by 0.5%to Rs540. Eveready agreed to sell land in Navi Mumbai to HDIL. The scrip touched an intra-day high of Rs549 and a low of Rs523 and recorded volumes of over 18,00,000 shares on NSE.
Elder Pharma edged higher by 1% to Rs390. The company announced that it bought a majority stake in Bulgaria's Biomeda Group. Elder paid 5mn euros for a 51% stake in the Bulgarian maker of finished medicines. The scrip touched an intra-day high of Rs394 and a low of Rs385 and recorded volumes of over 13,000 shares on NSE.
Ess Dee Aluminium edged higher by 0.4% to Rs504 following reports that the Indian pharmaceutical- packaging company may buy India Foils Ltd. (IF IN) from Vedanta Resources Plc for as much as Rs3bn. The scrip touched an intra-day high of Rs510 and a low of Rs498 and recorded volumes of over 8,000 shares on BSE.
Sugar stocks were the pick of the day. UP Government requested Centre to grant Rs20bn interest free loan for state sugar companies. Bajaj Hindusthan surged by over 5% to Rs134, Renuka Sugar spurred by over 9% to Rs532 and Balrampur Chini jumped by over 8% to Rs59.
Metal stocks are trading higher led by gains in Tata Steel, the scrip has spurred by over 7% to Rs648, Hindalco is up by 1% to Rs154 and SAIL has gained by 2.1% to Rs156.
Capital Goods stocks also gained momentum. BHEL advanced by 2.2% to Rs1853, L&T was up by 1.5% to Rs2591; Punj Lloyd gained 1.2% to Rs267 and Gamon India surged by over 5% toRs446.
IT stocks were on the receiving end led by fall in the frontline stock Infosy, the scrip was down by 2.2% to Rs1837, Satyam Computer was down by 1.2% to Rs444 and Mphasis was down by 1.3% to Rs280. However, Wipro and TCS erased its losses each ending 0.5% higher.
Oil & Gas stocks also were in momentum. BPCL rose over 3% to Rs310, HPCL was up by 2.8% to Rs235 and IOC added 1.8% to Rs387. Even the Oil exploration stocks ended higher, Reliance Industries gained 0.5% to Rs1889 and ONGC rose over 3% to Rs833.
The bulls have had things going their way over last three trading sessions. After an impressive recovery on Wednesday we have another action packed day in store. However, the bulls are not out of the woods yet, as volatility is likely to remain high. The choppiness is likely to continue as unwinding of long positions and short covering on account derivatives expiry. Also, one must keep an eye on global issues like the housing market crisis and trouble in the credit markets in America.Fund Activity:
FIIs were net sellers of Rs1.6bn (provisional) in the cash segment on Tuesday and the local institutions bought worth Rs0.6bn. In the F&O segment, FIIs were net buyers at Rs0.9bn.
On Tuesday, foreign funds bought worth Rs3.6bn in the cash segment. Mutual funds were net buyers to the tune of Rs0.4bn.
Major Bulk Deals:
IPCA Labs was sold by Goldman Sachs. KPR Mill was bought by Principal MF. Novartis was bought by Reliance Capital and sold by ICICI Prudential. Shrenuj & Co was bought by Goldman Sachs and UBS and sold by HDFC MF.
Lower Circuit:
Bank of Rajasthan
Upper Circuit:
Evinix, Kothari Products, ETC Networks, XL Tele, Karutari Network, Ruby Mills, Swan Mills, Jai Corp, Raj Tele and BF Utilities
Delivery Delight (Rising Price & Rising Delivery):
Bajaj Hindustan, Escorts, Maruti Udyog, Polaris, Ranbaxy Labs.
Abnormal Delivery:
NDTV, Tata Chemical, Canara Bank, Triveni Engineering and Patni.
Major News & Announcements:
India’s April-July steel exports rose 7.2% to 1.75mn tons and imports rose 60.2% to 1.45mn tons
Eveready agrees to sell land in Navi Mumbai to HDIL
IDFC plans to borrow as much as Rs140bn in FY08
Mastek to consider selling securities overseas on September 5
Bartronics India plans to sell securities to raise $50mn
Lloyd Electric to sell Rs2bn shares to large investors
Ashok Leyland, Nissan agree to team up for making Light trucks
Phoenix Mills announces to set-up a 30-storey luxury 5-start hotel in Lower Parel,Lloyd Electric announced plan to raise over Rs3.12bn by issue of securities in the domestic market.
Firstsource Solutions acquires US-based MedAssist Holding, a provider of revenue cycle management in the Healthcare industry, for US$330mn.