Monday, August 27, 2007
The markets closed the session on a strong positive note as BSE Sensex closed higher by 417.51 points at 14,842.38 and the Nifty grew 112.45 points to end at 4,302.60. The BSE mid cap and Small cap closing higher by 170.21 points and 203.27 points at 6,360.66 and 7,725.52 respectively.
BSE Metal index gained 361.04 points to close at 10,637.64. as JSW Steel (7.06%), Hindalco (4.54%), Sterlite industries (4.49%), Tata Steel (3.55%), Jindal Steel (2.64%) and Nalco (1.18%) closed higher.
BSE Auto Index gained 113.71 points to close at 4,682.97 as TVS Motor (5.86%), Maruti Udyog (5.13%), Escorts (3.13%), Punjab tractors (3.12%), Tata Motors (2.84%), Apollo Tyres (2.82%), Mahindra and Mahindra by (2.66%) a closed in green.
BSE oil & gas index added 209.12 points to close at 7,725.80. GAIL India (4.42%) led the gainers pack, followed by Reliance Industries by (3.29%), ESSAR Oil (2.85%), Reliance Petroleum (2.19%) and ONGC (1.59%)
BSE Bankex index ended higher by 339.55 points at 7,654.98 with SBI (6.17%), Allahabad bank (6.01%), Yes Bank (5.95%), ICICI bank (5.93%), Federal bank (5.40%), Kotak Bank (4.90%) closed in green.
BSE Capital goods index gained by 457.79 points to close at 13,080.02 with Areva (7.25%), Havell India (5.96%), Alstom projects (5.84%), Crompton Greaves (5.72%), ABB (5.13%), Punj Lloyd (4.85%), AIA Engineering (4.53%), L&T (3.75%).
BSE Health care index closed higher by 63.31 points at 3,487.33 as Fortis healthcare (5.73%), Aurobindo pharma (5.05%), Lupin ltd (5.03%), Ranbaxy (2.77%), Glaxosmithkline (1.88%) closed in green .
BSE FMCG index advanced by 34.23 points at 1,912.20 with Colgate palm (7.53%), Britannia (4.40%), United spirit (3.05%), Nestle (2.80%), Tata Tea (2.04%) closed higher.
BSE IT index grew by 64.91 points to 4,473.39 as Rolta India (7.61%), Mosear Baer (6.07%), Patni Computers (4.94%), HCL technologies (2.95%), Financial technologies (2.47%) closed in positive territory.
Taking cues from the Asian markets and the Wall Street rally on Friday, the Sensex opened with a huge positive gap of 156 points at 14,581 today.
The index zoomed to a high of 14,859 in late noon deals - a gain of 434 points from the previous close of 14,425.
The Sensex finally closed with a gain of 417 points (2.9%) at 14,842.
The BSE Realty index zoomed over 5% to 7147. The BSE Bankex gained nearly 5% to 7655.
The broad market mood was bullish right through the day - out of 2,717 scrips traded, 2,063 logged gains today.
GAINERS ALL THE WAY
SBI opened on a firm note on the news over the weekend that the bank board has started the process of amalgamation of subsidiary banks with Bank of Saurashtra, the smallest associate bank, being merged with SBI.
SBI zoomed to a high of Rs 1,565 in late noon deals before closing with a gain of over 6% (Rs 90) at Rs 1,557.
ICICI Bank gained nearly 6% to close at Rs 884.
Reliance advanced over 3% (Rs 58) to Rs 1,833.
Maruti zoomed over 5% to Rs 831. Tata Motors, M&M and Bajaj also finished with gains.
RCom gained over 4% to Rs 521. Hindalco was up over 4% at Rs 148.
L&T and BHEL added 3.7% each to close at Rs 2,535 and Rs 1,815, respectively.
MOST ACTIVE COUNTERS
Debutant Take Solutions was the most active counter with a turnover of Rs 505 crore followed by SEL Manufacturing (Rs 295 crore), Reliance (Rs 120 crore), SBI (Rs 111 crore) and ICICI Bank (Rs 105 crore).
The risk of US markets falling into a recession mode is higher than ever before since the aftermath of September 11, 2001 attacks, former US Treasury secretary Larry Summers has said.
It is "premature" to say the crisis is over despite some recovery by the stock markets and the Federal Reserve last week availing more cash into credit markets, the Treasury Secretary of previous Clinton administration said on Sunday.
"We certainly saw some repair and return to normality this week. But I think it would be far premature to judge this crisis over for at least two reasons," he told ABC News.
"First, we can't yet know there aren't more shoes to drop in the financial area. There had been all kinds of securities that people had judged to be very safe that turned out to be anything but. There's a large pipeline of loans that needs to be funded," he said referring to the collapsing US housing debt market.
"Second, we haven't yet had time to observe what all is going to mean for the real economy and for the actual process of job creation in our economy.
"The consumer has been propelled by a rising housing market and by greater availability of housing credit. Those processes, the rising housing market, the greater credit taken out of their homes, are going to reverse to at least some degree," he said.
"I do not think we yet have ... a basis of making a prediction that there will be a recession, but I would say that the risks of recession are now greater than they've been any time since the period in the aftermath of 9/11," said Summers, now with the New York investment firm DE Shaw & Co.
Good day for the market as Indices witnessed phenomenal rally. Strong Asian cues and the Dow ending up close last week had great smiles for the Investors. Sustained buying was seen in almost all scripts across sectors barring select Auto and Cement stocks. Investor went for valuable buying assuming no negative triggers in near term. Banking stocks were among the top gainers followed by Realty, Metals and Capital goods. The market which opened with a spurt kept on heading north as buying momentum continued at higher levels. Even European Markets traded positive which gave a greater support for the Indian bourses. Midcap and Smallcap Index ended up nearly 2.5% each. Rupee was hovering at Rs 40.97 against the Dollar.
Sensex ended up by 418 points at 14842.38. It was helped up by gains in SBI (1556.65,+6 percent), ICICI Bk (883.75,+6 percent), Maruti (830.7,+5 percent), Hindalco (148.4,+5 percent) and RCVL (521.15,+4 percent). Restricting the gains were Guj Ambuja (133.2,-2 percent), Cipla (170.3,0 percent).
McNally Bharat Engineering, one of the leading Indian company engaged in providing Turnkey solutions in the areas of Power, Steel, Alumina and Material Handling. Today company has reported that it has bagged an order worth Rs 90 Cr from Mazgoan docks. McNally has 20% market share in Material Handling & Ash handling Segment, 25% Mineral Beneficiation Segment and 30% in Port Handling Segment. McNally reported healthy results for the Q1 FY2007-08. The Top line grew by 3% to Rs 111 cr from Rs 108 cr on yoy basis and the Bottom line grew by 26% to Rs 4 cr from Rs 3.5 cr on yoy basis. Future is certainly bright; the major investments in steel and power sector will boost the company's revenues. Based on its strong order book position and more importantly the expansion plans and bidding expected... Robust growth is round the corner. Mcnally rallied with good volume on the back of good order book and new order for Mazgoan docks. Stock ended up by 9%. We had a research note on the stock and there is a call here as well.
State Bank of India country's largest PSU commercial bank reported that its board has approved the merger of State Bank of Saurashtra with itself. This is the beginning of whole group's restructuring. SBS is the smallest of the seven associates. After SBS, SBI is likely to merge the other three unlisted arms and then follow it up with the listed ones. The other associates are State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Indore and State Bank of Patiala. SBS has 460 branches and the merger would help eliminate duplication of branches in the same area. Its net profit rose 45 % to Rs 87.4 Cr in 2006-07. The bank has paid-up equity capital of Rs 314 Cr. The total deposits stood at Rs 15,804 Cr while total advances are at Rs 11,081 Cr. We believe that this merger would help out SBI to consolidate its position the country's biggest bank and widen the gap with nearest rival ICICI Bank. SBI rallied 6.3% taking the Index along with it.
There was lot of research on Solar Explosives which is certainly not to be missed. There was a rerun of a note on Himadri Chemicals. There was a research report on Educomp and the stock obliged by running up over 10%. Thats our research .. Relevant and exactly when its happening.
Technically Speaking: Markets traded firm at the higher levels tracking the uptrend in global equity markets overall market breadth was positive. Sensex traded in a north bound session today and made a high of 14859 and low of 14581 with the Advances outnumbering Declines. Advances were 2050 Vs Declines of 629. Volumes were good as the market churned Rs 3489 Cr. As expected we have done our target of 14860 (Mentioned in our mid market). Some correction might be seen here before the Sensex starts its journey back to 14950. On the lower side support exists at 14690 and 14540 levels. Keep reading our reports for more updates on Sensex levels.
The Sensex had a roaring start and the index continued its record rally after Friday's recovery. Strong economic numbers including the July new home sales and durable goods’ orders sent the US markets higher on Friday. Tracking the same, Asian markets rose over 1% in early trades and the Sensex too resumed with a positive gap of 156 points at 14,581. Ease in the domestic political worries also helped the Sensex to rally. The market gained momentum by mid-morning trades on gains in banking, realty and consumer durable stocks and rallied sharply to touch the day's high of 14,859. The index also received major support from ICICI Bank, SBI and Reliance Communication, which gained over 5-6% today. Finally, the Sensex closed the session at 14,842, up 418 points. The Nifty ended the session at 4,303 up 112 points.
Among the sectoral indices the BSE Realty index led the upsurge with gains of 5.37% at 7,147 followed by the BSE Bankex index (up 4.64% at 7,655), the BSE CD index (up 4.48% at 4,165) and the BSE CG (up 3.63% at 13,018). The market breadth was extremely positive. Of the 2,718 stocks traded on the BSE 2,067 stocks advanced, 605 stocks declined and 46 stocks ended unchanged.
Out of the 30 Sensex stocks, 28 managed to end in the green while two stocks ended with losses. SBI was the leading gainer and soared 6.17% at Rs1,557. ICICI Bank jumped 5.93% at Rs884, Maruti Udyog shot up by 5.13% at Rs831, Hindalco advanced 4.54% at Rs148, Reliance Communication moved up by 4.45% at Rs521, L&T added 3.75% at Rs2,536 and BHEL gained 3.72% at Rs1,816. Among the laggards, Ambuja Cement dropped 1.62% at Rs133 and Cipla slipped marginally at Rs170.
Over 1.45 crore Tata Tele Services shares changed hands on the BSE followed by SEL Manufacturing (1.34 crore shares), IFCI (76.64 lakh shares), UCO Bank (64.79 lakh shares) and IQMS Software (61.33 lakh shares).
Take Solutions registered a turnover of Rs505 crore on the BSE followed by SEL Manufacturing (Rs295 crore), Reliance Industries (Rs120 crore), SBI (Rs111 crore) and ICICI Bank (Rs105 crore).
After opening strong, the market continued to gain strength on buying momentum in index pivotals. The benchmark BSE 30-share Sensex crossed the 14,850 level at the fag end of the trading session. However, the turnover was dull today, 27 August 2007.
Asian markets, which had opened before the Indian markets, were firm, while European markets, which started trading later, also notched gains.
Today's momentum was derived from the rally on Wall Street on Friday, 24 August 2007, triggered by surprisingly strong data on US home sales and durable goods. Also short covering ahead of the expiry of derivatives contracts for August 2007 series aided the market's rise.
The Sensex surged 417.51 points or 2.89% at 14,842.38. Earlier, it had opened with an upward gap of 156.40 points at 14,581.35. The broad market index also hit a high of 14,858.93, couple of minutes before the closing bell.
The BSE Sensex is up 28.26% over the one-year period from its close of to 11,572.20 on 25 August 2007. It had hit 52-week high (also its all time high) of 15868.85 on 24 July 2007 and a 52-week low of 11444.18 on 12 September 2006.
The S&P CNX Nifty jumped up 112.45 points or 2.68% at 4,302.60. The Nifty August 2007 futures settled at 4294.55, a discount of 8.05 points as compared to spot closing.
The market breadth was strong on BSE, with 2,050 shares advancing as compared to 629 that declined, while 54 remained unchanged.
The BSE Mid-Cap Index rose 2.75% to 6,360.66 while the BSE Small-Cap Index gained 2.70% to 7,725.52. Both these indices underperformed the Sensex by a small margin.
The total turnover on BSE amounted to Rs 3489 crore as compared to Rs 3632 crore on Friday, 24 August 2007. The NSE’s F&O turnover was Rs 52748.00 crore as compared to Rs 43336.32 crore on Friday, 24 August 2007.
All the sectoral indices on BSE posted gains. The BSE Metal index (up 3.51% to 10,637.64), BSE Realty index (up 5.37% to 7,147.47), BSE Bankex (up 4.64% to 7,654.98), BSE Consumer Durables (up 4.48% to 4,165.45), BSE Capital Goods index (up 3.63% to 13,080.02), were outperformers compared with Sensex.
Though trading higher, the BSE Auto index (up 2.49% to 4,682.97), BSE PSU index (up 2.88% to 6,816.74), BSE Oil & Gas index (up 2.78% to 7,725.80), BSE Health Care index (up 1.85% to 3,487.33), BSE TECk index (up 1.95% to 3,534.47), BSE FMCG Index (up 1.82% to 1,912.20), and BSE IT index (up 1.47% to 4,473.39) were underperformers compared to the Sensex.
Among the 30-member Sensex constituents, 28 gained, while Ambuja Cements (down 1.60% to Rs 133.25) and Cipla (down 0.50% to Rs 170.10) shed value.
Banking and financial shares dominated gainers. India’s largest bank by net profit State Bank of India (SBI) jumped 6.60% to Rs 1563 on 7.23 lakh shares. It was the top gainer from the Sensex constituents.
SBI has started the consolidation process with its associate banks by deciding to merge its wholly-owned subsidiary State Bank of Saurashtra (SBS) with itself. SBS is the smallest of the seven associates banks. The boards of both SBI and SBS have given approval to the merger proposal on 25 August 2007.
ICICI Bank, the country’s largest private sector bank by net profit, advanced 5.85% to Rs 883 on high volumes of 12.11 lakh shares. The Reserve Bank of India on Friday, 24 August 2007, allowed foreign investors to purchase equity shares of the bank from the secondary markets in India as their holding had come down below the trigger limit of 74%.
Other banking and financial institution stocks, Allahabad Bank (up 6.38% to Rs 85), Federal Bank (up 5.40% to Rs 323.80), Bank of Baroda (up 3.97% to Rs 263.50), HDFC Bank (up 1.87% to Rs 1121.60) and Kotak Mahindra Bank (up 4.83% to Rs 680.70) had also gained.
India's largest private sector steel manufacturer Tata Steel gained 3.72% to Rs 604 on reports that it is targeting to more than double production by 2015. Tata Steel now has an annual production totaling 25.6 million tonnes. By 2015, Tata Steel hopes to add another 35 million tonnes to boost its worldwide annual production to 61.1 million tonnes.
Metal shares were boosted by Friday's (24 August 2007) surprisingly strong US economic data, which calmed worries about a slowdown in the world's largest economy. Copper producer Sterlite Industries rose 4.12% to Rs 599.95 and India’s top aluminium maker Hindalco gained 4.97% to Rs 149
India’s top engineering & construction firm by revenue Larsen & Toubro (L&T) had advanced 3.90% to Rs 2539. During trading hours on Friday, 24 August 2007, L&T got shareholders’ approval to raise $700 million to expand operations.
India's largest thermal power generator by revenue NTPC was up 2.44% to Rs 167.80 on reports the government plans to sell 4.75% holding in the firm through follow-on public issue. The proposed sale is aimed at increasing the free float of NTPC's shares in the market and help improve the company's valuation.
India’s second largest bike maker Bajaj Auto (BAL) rose 2.84% to Rs 2295. As per reports it will stop production of vehicles at its Akurdi plant in Pune in Maharashtra from 1 September 2007. BAL is expected to gain Rs 1000 per unit from shifting the production base from Akurdi to Waluj in Aurangabad, Maharashtra as it gets sales tax benefits and other government concessions at Waluj unit.
India’s top truck maker, Tata Motors was up 3.43% to Rs 680.20 after its American depository receipt or ADR jumped 5.7% to $16.45 on Friday, 24 August 2007, after chairman Ratan Tata confirmed on Friday, 24 August 2007, that he is interested in acquiring Jaguar and Land Rover from their parent, Ford.
Maruti Udyog (up 5.67% to Rs 835), Reliance Communications (up 4.36% to Rs 520.70), and Bhel (up 3.98% to Rs 1820), were the other gainers from the Sensex pack.
India’s largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) gained 3.41% to Rs 1835 on 6.60 lakh shares. RIL has reportedly ventured into construction business and will set up a Rs 450-crore pre-engineered building (PEB) facility in Gujarat. RIL has roped in Dubai-based Mammut Group as a joint venture partner for the plant, which is likely to be commissioned by end-2008.
SEL Manufacturing saw intense volatility today. It surged to a high of Rs 247.50, a rise of 13.06% from Friday’s (24 August 2007) close of Rs 218.90. It, however, ended with a 20% plunge to Rs 175.15 on high volumes of 1.34 crore shares, and was the top traded counter on BSE with turnover of Rs 295.02 crore
Among the side counters, Karur KCP Packaging (up 20% to Rs 63.40), Pyramid Saimaira Theatre (up 18.41% to Rs 321.60), Sanghi Industries (up 14% to Rs 92.90), Indian Bank (up 14.80% to Rs 151), and Vadilal Industries (up 17.44% to Rs 66) surged.
GL Hotels (down 7.61% to Rs 355.30), TCI Industries (down 5% to Rs 3634.90), Ras Resorts (down 6.80% to Rs 26), Khoday Industries (down 5% to Rs 291.40), and Sahara Housing (down 5% to Rs 67.55) declined.
Take Solutions settled at Rs 926.50 on the BSE, a premium of 26.91% over the IPO price of Rs 730. On BSE, 56.53 lakh shares of the scrip were traded. The stock had debuted at Rs 876. It had hit a high of Rs 943.30 and a low of Rs 839.15. The IPO had ended on 7 August 2007 with 57.97 times subscription.
Real-estate stocks surged the most among the sectoral indices on BSE, on fresh buying after the recent fall. Ansal API (up 2.66% to Rs 244.90), Indiabulls Real Estate (up 11.57% to Rs 497), Peninsula Land (up 10.28% to Rs 464), Unitech (up 7.67% to Rs 491.20), and DLF (up 2.33% to Rs 576.50) advanced. The BSE Realty index lost 8.65% to 6,783.21 on 24 August 2007 over a month’s time period.
Parsvnath Developers rose 4.80% to Rs 293.15 after winning project from The BrihanMumbai Electric Supply and Transport, Mumbai to develop a plot of land at Mahim Bus Station, Mumbai for commercial and residential utilization along with remodeling of existing bus station. The project would give the company a developable area of 40,000 square feet with a realizable value of approximately Rs 70 crore.
i-flex Solutions rose 2.32% to Rs 1915 after its Dutch unit, i-flex Solutions BV, raised its stake in i-flex solutions SA, Greece to 90%. i-flex Solutions, which is Oracle Corporation's Indian unit, did not disclose financial details of the deal. The Greek unit was incorporated in May 2007 with an investment of 35% by i-flex Solutions BV, Netherlands, a subsidiary of the company.
Mercator Lines (MLL) rose 2.24% to Rs 54.75 on recent reports that it is raising around $250 million in the largest-ever Indian offering in Singapore. The Mumbai-based shipping company is offloading 30% stake in its wholly-owned subsidiary Mercator Lines (Singapore) through an IPO.
Mastek rose 1% to Rs 260 on reports that the Maharashtra government is planning to launch an electronic toll collection system on some of the Mumbai's busiest routes and has appointed it to develop the system. Mumbai-headquartered Mastek has earlier worked on the electronic toll collection in London.
IFCI (up 4.33% to Rs 61.50), and Tata Teleservices (Maharashtra) (up 2.48% to Rs 28.90) gained despite the National Stock Exchange of India barring further F&O positions as the 95% marketwide position limit was crossed on Friday, 24 August 2007.
GMR Infrastructure spurted 4% to Rs 749.90 after GMR Energy, a 100% subsidiary of the company, was awarded the 180-megawatt Bajoli Holi power project by the Himachal Pradesh government.
Parenteral Drugs India jumped 5% to Rs 161 after it scheduled a meeting of the board of directors to be held on 3 September 2007 to consider a bonus issue.
Advani Hotels & Resorts India galloped 5% to Rs 252 after its board of directors decided to convene an annual general meeting of the members on 26 September 2007 to consider sub-division of equity shares of the company from Rs 10 each to five equity shares of Rs 2 each.
BPO firm Firstsource Solutions jumped 4.46% to Rs 73.75. As per recent reports it is in talks with UK-based financial services major Prudential for acquiring two of its global contact centres, one of which is located in Mumbai. The size of the outsourcing and contact centre sale deal is estimated to be about $1-1.5 billion.
NIIT Technologies soared 10% to Rs 449.50 on reports that NIIT, the promoter of the Delhi-based IT company, is looking to sell 25% in the company to a strategic investor.
Usha Martin climbed up 2.58% to Rs 237 after announcing the acquisition of the business of The Netherlands-based De Ruiter Staalkabel B.V. This acquisition will enable the company and the subsidiaries to grow further in Europe
Canara Bank scaled up 4% to Rs 234 after its board approved increasing its stake to 51% to convert the sponsored entity Can Fin Homes into a subsidiary, through the process of open-offer. Can Fin Homes galloped 13% to Rs 56.80. Canara Bank had a 29.4% stake in Can Fin Homes end March 2007. Can Fin Homes provides housing finance.
Bharat Forge advanced 2.05% to Rs 267.35 after Life Insurance Corporation of India purchased 63.61 lakh shares of the company from open market from 11 August 2007 to 21 August 2007. It now holds 7.17% or 1.59 crore shares of Bharat Forge.
McNally Bharat Engineering Company jumped 10% to Rs 194.95 after it received an order worth Rs 89.86 crore from Mazagaon Dock
Logistics firm Gati moved up 2.73% to Rs 99.75 on reports the company would acquire 52.96% stake, or 19.6 lakh shares in Kausar India at Rs 72.84 per share. Delhi-based Kausar India provides refrigrated transportation of perishable goods, frozen foods, etc.
Fruit exporter Freshtrop Fruits was up 5% to Rs 108 after the firm said its board would meet on 3 September 2007 to consider a bonus issue.
Matrix Laboratories rose 2.85% to Rs 231 after it said after trading hours on Friday, 24 August 2007, it plans to buy the residual stake of Mark Gao, former promoter of MCHEM group of companies in China.
Punjab Chemicals & Crop Protection rose 3% to Rs 122.50 after it said during trading hours on Monday, 27 August 3007, it has agreed to acquire 100% stake in Pegevo Beheer BV for an enterprise value of 39.5 million euros.
Auto parts maker Omax Autos rose 2.85% to Rs 63.25 after it said during trading hours on Monday, 27 August 2007, its board would meet on 1 September 2007 to consider a rights issue.
All the Asian markets, which had opened earlier today, 27 August 2007, advanced following the strong finish on the Wall Street on Friday, 24 August 2007. Hang Seng (up 2.86% at 23,577.73), Japan's Nikkei (up 0.32% at 16,301.39), Taiwan Weighted (up 0.32% at 8,718.31), Shanghai Composite (up 0.83% to 5,150.18), Singapore's Straits Times (up 0.56% at 3,388.84) and South Korea's Seoul Composite (up 0.65% at 1,803.03) rose.
All the European markets, which opened after the Indian markets, edged higher, except Sweden’s Stockholm General (down 0.09% to 391.15). Key benchmark indices in Germany (up 0.19% to 7,521.39) and France (up 0.65% to 5,605.53) rose. The UK stock market is closed on Monday, 27 August 2007, for a public holiday.
On Friday, 24 August 2007, the Dow Jones Industrial Average had risen 142.99 points, or 1.08%, to 13,378.87. Broader stock indicators also advanced sharply. The Standard & Poor's 500 index jumped 16.87 points, or 1.15 %, to 1,479.37. The Nasdaq Composite index ended up 34.99 points, or 1.38%, to 2,576.69.
Oil prices fell on Monday, 27 August 2007, boosted by worries over gasoline supplies in the US, the top energy consumer. US crude for October delivery fell 20 cents to $70.89 a barrel.
The BSE Sensex had surged 260.89 points, or 1.84%, to settle at 14,424.87, on Friday, 24 August 2007. The S&P CNX Nifty was up 75.20 points, or 1.83%, to 4,190.15.
The market ended its four-week losing streak to post gains in the week ended Friday, 24 August 2007. The Sensex jumped 283.35 points, or 2%, to close at 14,424.87. The S&P CNX Nifty was up 82.10 points, or 1.99%, to end the week at 4,190.15.
Minister for science and technology and senior Congress leader Kapil Sibal said on Saturday, 25 August 2007 the government would not fall due to opposition to the Indo-US nuclear pact from Left parties. Sibal said the government would address the concerns of Communists on the deal in a debate in parliament.
India's biggest communist party, Communists Party of India (Marxists), or CPM, on Thursday, 23 August 2007, said it does not want to topple the government over a nuclear deal with the United States. Though CPM softened its stand on withdrawing support to the ruling coalition government at the Centre, it reiterated the government should not go ahead with negotiations with the International Atomic Energy Agency and Nuclear Suppliers Group over a nuclear deal with the US.
The Left Front’s opposition to the nuclear deal with US had stoked concerns over the past few days that if the Communist allies of the ruling coalition government at the Centre decide to pull their support, the government will be reduced to a minority, triggering fresh elections.
Power Grid Corporation 44 to 52 10 to 10.50
Motilal Oswal 825 95 to 100
Indowind Energy 55 to 65 Discount
Magnum Venture 27 to 30 3 to 4
Puravankara Projects 400 Discount
Take Solutions 730 160 to 170
KPR Mills 225 Discount
Indian market is likely to have a positive opening on the back of strong positive global cues. On Friday, the Indian markets ended on a positive note, as BSE Sensex closed higher by 260.89 points at 14,424.87 while Nifty grew by 75.2 points to close at 4,190.15. We expect the market to remain optimism during the trading session.
Friday, the US markets closed in green The Dow Jones Industrial Average (DJIA) grew by 142.99 points to close at 13,378.87. The S&P 500 (SPX) index increased by 16.87 points to close at 1,479.37 and the NASDAQ Composite (RIXF) advanced by 34.99 points to close at 2,576.69.
Indian ADRs ended in positive. In technology sector, Patni Computers grew by (2.64%) along with Infosys by (2.24%), Satyam by (1.45%) and Wipro by (1.41%). In banking sector, HDFC bank and ICICI bank increased by (4%) and (2.54%) respectively. MTNL and VSNL closed higher by (3.56%) and (2.33%) respectively. Tata Motors grew by (5.72%).
The major stock markets in Asia are trading strong. Japan''s Nikkei trading higher by 172.92 points at 16,421.89. Hang Seng grew by 399.83 points to trade at 23,321.72. Taiwan weighted increased by 99.75 points to trade at 8,789.84. Singapore Strait times advanced by 43.60 to trade at 3,413.05
Today, Nifty has support at 4,155 and resistance at 4,285 and BSE Sensex has support at 14,330 and resistance at 14,720.
Friday, the US stock markets closed higher on the back of better than expected economic data and earnings results from several retailers. For the month of July, the durable orders jumped 5.9% while new home sales increased 2.8% to an annualized rate of 870K. Further, the speculation of better M&A activity within the battered investment-banking group provided a positive response to the market.
The Dow Jones Industrial Average (DJIA) surged 142.99 points to close at 13,378.87. The S&P 500 (SPX) index increased by 16.87 points to close at 1,479.37 and the NASDAQ Composite (RIXF) grew 34.99 points to close at 2,576.69.
Boeing, Wal Mart and Exxon Mobil were the main gainers in Dow.
A total of 1.3bn shares were traded on the NASDAQ, while advances outpaced the declines by 9 to 5. On NYSE around 0.9bn shares traded for the day, with advances outpaced the declines by 3 to 1.
Crude oil prices closed at $71.09per barrel higher by $1.26 in NYME. Crude oil Prices grew on account of upbeat data on the U.S. economy as well as a steep fall in gasoline inventories, but ultimately suffered from an unexpected rise in U.S. supplies and reports of Mexico''s post-hurricane resumption of oil output.
The market is expected to higher on positive global cues. The BSE 30-share Sensex rose 260.89 points or 1.84% to settle at 14,424.87, on Friday, 24 August 2007.
The S&P CNX Nifty was up 75.20 points or 1.83% at 4190.15, Friday, 24 August 2007. The market is expected to remain volatile ahead of the derivative contracts expiry for the August 2007 series on Thursday, 30 August 2007
The market ended its four week losing streak to post gains for the week ended Friday, 24 August 2007. The 30-share BSE Sensex rose 283.35 points or 2% to settle at 14,424.87. The S&P CNX Nifty rose 82.10 points or 1.99% to settle at 4,190.15 in the week.
Also FIIs, who were the key drivers of the recent rally have resorted to selling. As per the latest data they sold shares worth Rs 8,895.80 crore in the month of August, till 23 August 2007. FII inflow in the month of July 2007, totaled Rs 23,872.40 crore.
Asian indices rose sharply early today, 27 August 2007, inspired by a strong finish on Wall Street. Hang Seng (up 1.74% at 23,321.72), Japan's Nikkei (up 1.06% at 16,421.89), Taiwan Weighted (up 1.15% at 8,789.84), Singapore's Straits Times (up 1.29% at 3,413.05) and South Korea's Seoul Composite (up 1.49% at 1,818.01) edged higher.
US markets advanced on Friday, 24 August 2007. The Dow Jones Industrial Average rose 142.99 points, or 1.08% at 13,378.87. Broader stock indicators also advanced sharply. The Standard & Poor's 500 index rose 16.87 points, or 1.15 %, to 1,479.37. The Nasdaq Composite index rose 34.99 points, or 1.38%, to 2,576.69.
As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 274.69 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 400.71 crore on Friday, 24 August 2007.
Oil prices fell on Monday, 27 August 2007, boosted by worries over gasoline supplies in top energy consumer the United States. US crude for October delivery fell 20 cents to $70.89 a barrel
The Market may log gains due to optimism amongst the investors. Market is likely to make further headways on firm Asian markets and positive weekly close in US markets. However, the market may see some short-term profit bookings in frontline stocks creating a volatility in the afternoon trades. Among the indices, the Nifty could test higher levels around the 4262-4315 range, while on the downside it has a key support around 4157-4110. The Sensex has a likely support at 14100 and may face resistance at 14500.
Stronger-than-expected readings on the economy, sent stocks higher on Friday. The Dow Jones industrial average jumped as much as 143 points at 13379, the Nasdaq moved up by 35 points to close at 2577.
The Indian ADRs also claosed with solid gains on the US bourses. Tata Motors jumped 5.72% followed by HDFC Bank adding 4%, while Infosys, Satyam, Wipro, Tata Motors and Patni Computer were up over 1-3% each. However, Rediff slipped 0.59% and Dr reddy's Lab lost 1.15%.
Crude oil prices rose on Friday, with the Nymex light crude oil for October delivery gaining $1.26 to close at $71.09 a barrel. In the commodity space, the Comex gold for December delivery gained $9.10 to settle at $677.50 an ounce.
Market Grape Wine :
In House :
Nifty at a supp of 4110 and 3978 on a weekly basis with resis being 4265 and 4395
Intra day supp for Nifty at 4178 and 4155 with resis at 4260 and 4314
Intra day: Buy Relcap above 1085 with a TGT of 1107 and a SL of 1072
Buy SBIN above 1466 with a TGT of 1486 and a SL of 1454
F&O: Buy Tatasteel above 588.40 with a TGT of 605
Buy ACC above 1075
Out House :
Markets at a support of 14234 & 14141 levels with resistance at 14543 & 14646 levels .
Markets to remain choppy and volatile maintain strict stop loss .
Buy : JpAsso & Centextile
Buy : RIL & REL
Buy : Bhel , Siemens & Titan
Buy : TTML & Nagarafert
Buy : HanunToys & JPHydro
Buy : IndiaCement
Buy : Kotak & Hdfcbank
Dark Horse : Jphydro , Nagarfert , TTMl , Kotak , IolBroad , CenTextile , Indiacem & REL
Market sentiments shows improvement amid ongoing problems
After weeks of extreme choppy and sea saw trading, US Market’s tone was much improved for the week ended Friday, 24 August, 2007. Market did exhibit cautiousness at every step, but underlying sentiment was much improved. Market registered good gains for the week.
The basic comfort came from Bank of America's announcement that it plans to invest $2 billion in mortgage lender Countrywide Financial to help the company overcome its problems. Some deal news also cheered investors who thought that liquidity has not dried up to the extent as has being portrayed.
The Dow Jones Industrial Average gained 300 points for the week. Tech - heavy Nasdaq gained 71 points while S&P 500 gained 33 points. Crude prices ended the week crossing $70/barrel.
But mortgage related problems continued in Wall Street. Lehman Brothers said it will close one of its mortgage unit and cut roughly 1,200 jobs. Capital One Financial announced that it will close its wholesale mortgage business, GreenPoint Mortgage. HSBC and Accredited Home Lenders also announced job cuts related to the difficult credit conditions.
Four big banks - Citigroup, JPMorgan Chase, Wachovia and Bank of America said during the week that they had borrowed $500 million each from the Federal Reserve's discount window after the Fed cut its discount rate last week.
On Friday, 24 August, better than expected economic data, better than expected earnings results from several retailers and speculation that a buyout deal might be in the offing gave stocks a good boost. Technology and Energy sectors rallied. Dow closed higher by 143 points on that day.
On the economic data front, on Friday, the Commerce Department reported orders for durable goods surged 5.9% in July after an upward revision to 1.9% in June. This easily beat market expectations and was encouraging news for business investment. July new home sales also unexpectedly rose 2.8% to 870,000 after an upward revision to June.
Earnings report continued to trickle in the market during the week at times. Home improvement retailer Lowe's reported a higher than expected profit despite weakness in the housing market. Luxury homebuilder Toll Brothers posted grim results due to lower demand and write-downs, but managed to beat analysts' expectations.
Among retailers, Target reported strong results, despite increased consumer pressures. Gap and Ann Taylor, both reported better than expected earnings results and provided reassuring earnings guidance.
Deal reports that made headlines were - Rio Tinto has raised a record-breaking $40 bln to fund its proposed takeover of Alcan; Dubai World is reportedly investing $5 bln to buy a 9.5% stake in MGM Mirage; TD Ameritrade and E*Trade Financial were reported to merge; Nymex Holdings confirmed it is in takeover talks.
For the week, all the three indices registered good gains measuring 2%-3%. DJIx is up by 2.2%, S&P 500 is up by 2.3% and Nasdaq is up by 2.9%. Investors were a bit confused with Federal Reserve’s action. One side, Fed showed concerns about current market condition, but on other side gave no hint about an imminent rate cut.
For the year, Dow is up by 7.3%, Nasdaq is up by 6.7% and S&P 500 is up by 4.3%.
Volatility is expected to continue in the market. Federal Reserve’s meeting in September is expected to be a major factor in dictating market momentum next. Till then, market is expected to go through these rollercoaster rides.
NIFTY (4190) Supp 4160 Res 4236
Buy Pantaloon (470) SL 465 Target 479, 481
Buy REL (736) SL 730
Target 748, 751
Buy Kotak Bank (650) SL 645 Target 660, 663
Buy L&T (2444) SL 2430
Target 2480, 2490
Sell Bata (147) SL 151
Target 140, 138
It is not how much we have, but how much we enjoy, that makes happiness.
Suddenly the worst seems to be over for the day. We can't take a two day call these days. The storm (kicked up by the slump in US housing market) seems to have subsided for now. Global markets have recovered smartly in recent times thanks largely to the Fed cutting its discount rates and expectations of a further reduction in September. The resumption of the yen carry trade is another good sign for the bulls. Remember, it doesn't take too long for sentiment to change in the forex markets. Unless another bombshell springs up from some corner of the world, we will have stability across global markets with a positive bias. Keep a close watch on the US economy's health for any further clue on global market trends. Another rate cut from the Fed will be a bonus.
Spurred by a strong closing on Wall Street and in other main markets Asian markets have opened on a firm note. Expect a gap-up opening on local bourses as well.
But, the uncertainty over the fate of the current Government could linger on for a while and could potentially tie the bulls down despite the improvement in the global markets. This again will come in only when statements are made or rumors are spread. Be prepared for knee jerk reactions and bounce backs. The F&O expiry on Thursday may make markets volatile. And, don't forget the FIIs are still selling. For the key indices to hit previous all-time highs, this category of investors have to resume their shopping spree.
Shares of Take Solutions will get listed today. Punjab Chemicals could be in action today as it is likely to announce an acquisition of Dutch company Pegevo Beheer BV. Another stock that could gain is Moser Baer amid reports that it is planning to list its subsidiary Moser Baer Photovoltaic in the US.
Airlines such as Deccan Aviation and SpiceJet are expected to be in the spotlight as a financial daily reports that the Government might relax the current regulations pertaining to launching overseas operations. NIIT Technologies is also likely to attract attention amid reports of stake sale.
SBI is expected to hog the limelight as it has decided to merge State Bank of Saurashtra with itself. Deep Industries is another counter where some buying is expected. Reliance Industries could gain initially on reports that it is entering the construction business. Read - RIL ventures into construction business...
Northgate Technologies has set up a subsidiary called Social Media India Ltd., to tap the online advertising and other internet transaction services industry.
Kothari Products has approved the proposed demerger of Pan Masala Division, Beverages Division and Trading Division into Pan Parag India.
Prakash Industries has approved the issue of 55,55,556 warrants convertible into equity shares to Barclays Capital Mauritius. Price of Rs80 per warrant has been calculated as per the SEBI Guidelines.
ANG Auto, Kalpataru Power, Lokesh Machines and Micro Technologies will announce their results today.
Stronger-than-expected readings on the economy, including July new home sales, sent US stocks higher on Friday, yet gains were limited by higher oil prices and ongoing worries about the tightening credit markets.
For the week, the Standard & Poor's 500 Index advanced 2.3% to 1,479.37, the steepest gain since March. The Dow Jones Industrial Average rose 2.3% to 13,378.87. The Nasdaq Composite Index climbed 2.9% to 2,576.69.
US stocks started the day with small losses, before turning higher following the release of the housing report. July new home sales rose 2.8% to an 870,000 annual sales pace, beating forecasts for a drop to 825,000. In addition, the reading on June new home sales was revised upward.
Another report showed that July durable goods orders jumped 5.9%, easily topping economists' forecasts for a rise of 1.4%.
Treasury prices rose, lowering the yield on the 10-year note to 4.62% from about 4.64% late on Thursday. In currency trading, the dollar slipped versus the euro and the yen.
US light crude oil for October delivery rose $1.02 to $70.85 a barrel on the New York Mercantile Exchange. COMEX gold rose $3.60 to $672 an ounce.
European shares closed out a successful week on Friday with their sixth straight advance, with metals and oils producers getting a bounce from unexpectedly strong US economic data.
The pan-European Dow Jones Stoxx 600 index ended 0.3% higher at 370.52. The UK's FTSE 100 rose 0.4% to 6,220.10 and the French CAC 40 gained 0.8% at 5,569.38. The German DAX 30 declined 0.1% to 7,507.27.
In the emerging markets, the Bovespa in Brazil rose 2.2% to 52,998 while the RTS index in Russia was flat at 1864 and the ISE National 30 index in Turkey fell 1.4% to 58,499.
Most Asian markets were trading higher this morning. The Nikkei in Tokyo was up 172 points to 16,421 while the Hang Seng in Hong Kong gained 460 points to 23,382. The Kospi in Seoul was up 27 points at 1818 while the Straits Times in Singapore advanced 44 points to 3413.
The Morgan Stanley Capital International Asia-Pacific Index added 1.1% to 149.86 as of 10:45 a.m. in Tokyo, set for its highest close since Aug. 9. The index jumped 8.1% in the five days ended Aug. 24, the best performance since March 2002 and its first advance in five weeks.
Benchmarks advanced in other markets open for trading.
After witnessing high volatile session in the previous day bulls managed to stage a strong come back ignoring political uncertainties and weak global cues. BSE Metal, Auto and Capital Good stocks led from the front and even the Mid-Cap and the Small Cap indices aided strong support. RIL, BHEL, SBI and L&T were the leading movers among the 30-scripas of Sensex. Finally, the BSE 30-share Sensex closed at 14,424 surging 260 points. NSE Nifty gained 75 points to close at 4190.
Tata power slipped by 0.3% to Rs679 after S&P lowered rating on the company. The scrip touched an intra-day high of Rs686 and a low of Rs672 and recorded volumes of over 3,00,000 shares on NSE.
Reliance Industries gained by 1.8% to Rs1776 after India's biggest company by market value proposed building an oil refinery and other petroleum facilities in Egypt valued at $10bn. The scrip touched an intra-day high of Rs1782 and a low of Rs1742 and recorded volumes of over 16,00,000 shares on NSE.
Tata Steel advanced by 4% to Rs582 following reports that world's sixth- largest steelmaker and Essar Steel Holdings Ltd. are among seven companies shortlisted by Egypt's government to build a $3bn steel and billet plant. The scrip touched an intra-day high of Rs587 and a low of Rs560 and recorded volumes of over 17,00,000 shares on NSE.
Gujarat State Petronet surged by over 3% to Rs55 after the company announced that they would sell 22mn shares to IFC at Rs57.29. The scrip touched an intra-day high of Rs57 and a low of Rs53 and recorded volumes of over 4,00,000 shares on NSE.
MTNL jumped by over 3% to Rs134 following news reports that the company has won tax disputes; it may get Rs11bn Tax refund. The scrip touched an intra-day high of Rs137 and a low of Rs130 and recorded volumes of over 17,00,000 shares on NSE.
ICSA India rallied 9% to Rs1565 after the company announced that they would consider stock split on August 30 and also yesterday secured order worth Rs186mn. The scrip touched an intra-day high of Rs1581 and a low of Rs1440 and recorded volumes of over 48,000 shares on NSE.
Auto stocks were in top gear. Tata Motors surged by over 5.8%to Rs656, Maruti surged by 2% to Rs790, M&M was up by 3% to Rs640 and TVS motors added 1.7% to Rs57.
IT stocks gained momentum towards the end. Satyam Computer advanced by 3.3% to Rs436, Rolta was up by 2.5% to Rs434 and Moser Baer added 2.4% to Rs271 and Infosys was up by 0.8% to Rs1825
Fertilizer stocks bounced back after being on the receiving end in the previous trading session. Chambal Fertilizer surged by over 4.5% to Rs46, Deepak Fertilizer gained by 7% to Rs101 and GNFC added 1%to Rs121.
Metal stocks shinned brightly led by gains in the heavyweight JSW Steel surged by 10% to Rs571, Hindalco was up by 2% to Rs142 and Sterlite Industries added 2% to Rs578.
Select Realty stocks were on the receiving end. Sobha slipped by 0.6% to Rs741. However, Unitech gained 0.7% to Rs456, DLF gained 1% to Rs565 and Akruti rose 6.9%to Rs507.
Auto stocks gained momentum in this week led by Tata Motors, the scrip was up by 2.5% to Rs656 and Maruti gained by 1.5% to Rs790, TVS Motors rose 3.6% to Rs57 and Ashok Leyland added 0.5% to Rs35.
Cement stocks were in limelight during the week. Ambuja Cement rose over 7% to Rs135, ACC jumped by over 6% to Rs1010, Prism Cement added 1.3% to Rs54 and Grasim was up 1% to Rs2771.
FIIs were net sellers of Rs2.75bn (provisional) in the cash segment on Friday and the local institutions pumped in Rs4bn. In the F&O segment, FIIs were net sellers at Rs5.2bn. On Thursday, foreign funds pumped in Rs3.3bn in the cash segment. Mutual Funds were net buyers at Rs3.09bn on the same day.
Major Bulk Deals:
Reliance Capital has bought Asian Granito; Reliance Long Term MF has picked up Essel Propac; UBS Securities has purchased IOL Broadband.
Kesoram Industries Ltd: SBI Mutual Fund under its various schemes has purchased from open market 17957 equity shares of the company on 21st August, 2007.
Euro Ceramics Limited: Bear, Stearns & Co. A/c BSMA Limited has purchased from open market 300000 equity shares of the company on 22nd August, 2007.
IOL Broadband and Era Construction.
Etc Networks, Ganesh Forgings, Kothari Products, Balasore Alloys, Vyapar Industries and Flawless Diamond
Delivery Delight (Rising Price & Rising Delivery):
BPCL, Bharti Airtel, Gokaldas Exports, Hindustan Construction, Maruti and Sintex Industries.
Bharati Shipyard, Pantaloon, Grasim, Rajesh Exports, BEL and VSNL.
Major News & Announcements:
Inflation for the week ended Aug. 11 was 4.1% vs expectation of 4.05%
Sical Logistics signs agreement with Mihan Road Terminal
ICSA to consider stock split on August 30
MTNL wins tax disputes - Reports
S&P lowers rating on Tata power
L&T plans to raise $700mn selling securities
Gujarat State Petronet to sell 22mn shares to IFC at Rs57.29
Power Grid Corporation 44 to 52 10 to 10.50
Motilal Oswal 825 95 to 100
Indowind Energy 55 to 65 Discount
Magnum Venture 27 to 30 3 to 4
Puravankara Projects 400 Discount
Take Solutions 730 160 to 170
KPR Mills 225 Discount
Cnx Bank Index: 6177 — The index is trading around the support levels near the 6035-6030 band. 200 dma = 6035. Declines during last week’s trading saw the index finding support around the 200 dma. The level of 6030 is the 50% retracement level of the rally from the low of 4837 (16 March 07) to the recent high of 7209 (20 July 07). Resistance level is around the 10 dma around 6377 and 6568. Lower support is around 5745. Conclusion: Intra-week pullback toward 6377 can be expected with support around 6030.
Cnx IT Index: 4580 — The index has closed below the lower end of the 5513-4925 consolidation band. Close below the 4925 levels suggests weakness. The resistance levels are around 4652-4925. Support levels are around 4439-4206. The level of 4206 is the 62% retracement level of the rise from low of 3193 to the recent peak of 5857.
Conclusion: Intra-week, trade a breakout from the 4652-4439 range.
Bse Capital Goods Index: 12622 — The index has closed around the upper band of the downward sloping channel. Break above the upper end at 12640 will see the index exhibit strength and rise toward 13267 (high of 9 August 07). Support is around 12256-11913. Conclusion: The index should exhibit strength during current week’s trading with support around 12256.
Bse FMCG Index: 1879 — The index has been stuck in a 1767-1941 range for the last four months. The index has closed above the 200 dma (1867); sustaining above the 200 dma should see the index firm up from current levels. Support is around 1854 for the current week’s trading. The index faces resistance around 1986 levels.
Conclusion: Expect rise toward 1986.
Bse Oil & Gas Index: 7517 — The index is stuck in a trading band of 7266-7685 for the last five trading sessions. Support is around 7315 levels. On daily charts Stochastic Oscillator (5,3) has turned up from the oversold zone with positive divergence. This suggests the index can see a rise toward 7685 levels. Conclusion: Expect intra-week rise toward 7685 levels.
Nifty — The index traded positive on the opening session of the week, mid-week it declined toward 4040, after which it saw range-bound trading toward the closing sessions of the week. It ended the week with gains of 82 points.
200-day moving average — The index tested support around the 200 dma (4075). The intra-day index dipped down toward the average but maintained above it on a closing basis during last week’s trading. The 4075 level should be seen as a support level for the current week's trading. Lower support is around 3971 (62% retracement level from the low of 3555 to the recent high of 4648).
Momentum Oscillators — On the daily chart MACD is in sell mode and in negative territory. RSI (14) - Relative Strength Index has turned up from around the oversold zone. Stochastic (5, 3) has triggered a buy. Momentum Oscillators suggest index an see further rise from current levels.
10 & 20 dma — The 10 dma = 4211 and 20 dma = 4309. The index can test the 20 dma around 4309 during the current week's trading where resistance can be expected. Cross above the 10 dma around 4211 will see index exhibit intra-day strength.
Support & Resistance — The index has support around 4148 and 4075 (200 dma).Resistance is around the 10 & 20 dma around 4211-4309.
Conclusion — Expect test of 4300 levels during current week’s trading.