If you can solve your problem, then what is the need of worrying? If you cannot solve it, then what is the use of worrying?
The bulls came up trumps for yet another week, despite inflation shooting up to a 42-month high. In short, most worries are being ignored for now. The RBI's move to keep rates unchanged, coupled with firm global markets and decent set of earnings helped the bulls maintain the current momentum. Technically too, things are looking up, with the Nifty surpassing the 200 DMA comfortably and staying above that level. Technical experts see further upside of about 150-200 points on the Nifty before the bulls meet with any major resistance. The 5000 level is being seen as a major support for the Nifty. Lots of put writing is taking place at this level. Single stock futures too witnessed encouraging build up last week. Things are looking promising for the bulls as of now though a fresh downside is not entirely ruled out.
Most factors that led to the big crash in the first quarter may still pose some challenges going ahead. Don’t get carried away with the current euphoria. Lock in gains in stocks that have seen a healthy rally over the past month or so. FIIs have not been pretty active during the ongoing rally, which raises some doubts about the strength and longevity of the rebound. This week, the outlook remains positive, with the
Key Results Today: Century Enka, Century Textiles, i-flex and JSW Steel.
FIIs were net buyers of Rs6.58bn (provisional) in the cash segment, while local institutions were net sellers of Rs180mn. In the F&O segment, foreign funds were net buyers of Rs17.39bn. On Wednesday, FIIs were net sellers of Rs847mn in the cash segment.
Most Asian stocks advanced this morning, lifting the region's benchmark to an almost four-month high, after copper and crude oil prices rallied. BHP Billiton advanced in Sydney. STX Pan Ocean Co. led shipping stocks higher after the price of transporting bulk commodities jumped to the highest in almost five months.
The MSCI Asia Pacific excluding Japan Index advanced 0.1% to 498.41 as of 9:29 a.m. in Hong Kong, with an index of raw material suppliers adding 1.1%. The regional benchmark was poised for its highest close since January 15.
Markets in Japan, South Korea and Thailand are closed for holidays. Australia's S&P/ASX 200 Index added 0.5%. Benchmark indexes open for trading elsewhere in Asia gained.
US shares closed mostly up on Friday after a highly choppy day. However, all the major indices eased off after a strong opening, which was sparked by fewer than expected job losses and the Federal Reserve's latest liquidity boosting measures.
Up 120 points at the start, the Dow Jones Industrial Average gained 48 points, or 0.4%, to close at 13,058.20. It was up 1.3% on the week. The S&P 500 gained 5 points, or 0.3%, to close at 1,413.9, giving it a 1.1% weekly rise.
The technology-laden Nasdaq Composite fell 4 points, or 0.2%, to 2,476.99, clocking a weekly gain of 2.2%.
A better-than-forecast jobs report and the $23bn takeover of Wrigley pushed the US market to its longest winning streak in seven months last week. Technology, consumer and telephone stocks led the S&P 500 to a four-month high, while raw material and energy producers declined as the dollar climbed.
Volume on the New York Stock Exchange neared 3.9bn, with advancers outpacing decliners roughly 9 to 7. On the Nasdaq, almost 2.3bn shares traded hands, and declining issues edged just ahead of those advancing, about 4 to 3.
Crude oil futures rose $3.80 to close at $115.632 a barrel. Elsewhere on the New York Mercantile Exchange, gold futures gained $7.1 to $858 an ounce. The dollar advanced 1.3% against the euro last week. The yield on the benchmark 10-year Treasury note declined to 3.86% from 3.87% as traders anticipated that the Fed may pause its interest-rate cuts.
The Fed slashed the benchmark interest rate by a quarter point to 2% and indicated it's ready to pause after seven cuts since September. That pushed the dollar to the highest in five weeks, making commodities a less attractive investment because they are often priced in the US currency.
US job losses narrowed in April, with the non-farm payrolls dropping by 20,000, far fewer than the 75,000 decline that had been anticipated by most Wall Street analysts. The US unemployment rate dropped to 5% from 5.1% in April.
The jobs report signaled that the downturn in the world's largest economy may be milder than the 2001 recession.
Meanwhile, the Commerce Department reported a 1.4% rise in US factory orders in March.
Wall Street will start the new week in an upbeat mood, with investors growing more confident that the economy and the financial markets are heading towards a second-half recovery.
There's a growing sense that the worldwide credit crisis, triggered by the meltdown in the US housing sector is nearing an end.
European shares rallied on Friday after a day's break. The pan-European Dow Jones 600 index rose 1.9% to 329.21, extending early gains after data on the US labor market came in stronger than expected. Advancers on the Stoxx 600 led decliners by nearly a six-to-one ratio.
Most European stock markets were closed on Thursday for the May Day holiday.
The UK's FTSE 100 gained 2.1% to 6,215.50, while the French CAC 40 added 1.5% to 5,069.71 and the German DAX 30 advanced 1.4% to 7,043.23.
In the emerging markets, the Bovespa in Brazil rose 2.2% to 69,366 while the IPC index in Mexico gained nearly 0.9% to 30,551. The RTS index in Russia added 0.9% to 2140 and the ISE National 30 index in Turkey advanced 1.8% to 54,068.
US data to accelerate gains
It was the second straight day of gains for the bulls as key indices ended the week higher. Bulls yet again shrugged off the spike in the inflation figures lifting the Nifty index above the 5,200 mark and the Sensex index above the 17,600 mark. Inflation was at 7.57% in week ended April 19 against expectation of 7.42%. India’s Inflation stayed at 3 ½ years high.
Barring the Metal index all the other key BSE Sectoral indices ended in positive terrain. The Banking, Auto and the Realty stocks were the major gainers.
Among the 30-scrips of Sensex ICICI Bank, Reliance Industries, L&T and Infosys were among the major gainers. However, on the other hand RCom, Tata Steel, HDFC and Hindalco were among the major laggards.
Finally, the BSE benchmark Sensex ended 312 points higher to close at 17,600 and the Nifty index ended 62 points higher to 5,228.
Overall about 1,400 stocks advanced; 1,301 stocks declined while 67 stocks remained unchanged. Among the 50-Nifty 32 stocks ended in green and 18 stocks ended in red.
Tata Steel slipped by 2.5% to Rs797. The company along with Essar is interested in buying stake in Krakatau Steel. The scrip touched an intra-day high of Rs826 and a low of Rs791 and recorded volumes of over 8,00,000 shares on BSE.
Indian Bank gained by over 2% to Rs142 after the company announced that it signed an agreement with Reliance Capital Assets Management. The scrip touched an intra-day high of Rs143 and a low of Rs140 and recorded volumes of over 2,00,000 shares on BSE.
Reliance Power edged higher by 0.5% to Rs396 after the company said its unit agreed to buy three coal mines in Indonesia. The unit will buy 100% ``economic interest'' in the mines. The scrip touched an intra-day high of Rs404 and a low of Rs395 and recorded volumes of over 16,00,000 shares on BSE.
JP Associates advanced by 6% to Rs286 after reports stated that the company emerged successful bidder for 45% stake in Price Petroleum. The scrip touched an intra-day high of Rs290 and a low of Rs272 and recorded volumes of over 53,00,000 shares on BSE.
Tech Mahindra gained by 4% to Rs950 as the company won the prestigious Billing & OSS World 2008 Excellence Awards in the 'Best Billing Solution' category for its LHS BSCS iX Release 1 Integrated with Ericsson Charging System project.
This award was announced by Billing & OSS World as a part of the Billing & OSS World 2008 conference & Expo in Chicago. The Billing & OSS World Excellence Awards recognizes the leaders- vendors, service providers and integrators -- in the development and deployment of billing and OSS technologies and processes. The scrip touched an intra-day high of Rs968 and a low of Rs921 and recorded volumes of over 1,00,000 shares on BSE.
United Phosphorous slipped by 2.3% to Rs315 after the company’s FY08 net profit fell by 0.35% to Rs2.81bn. However, net sales were at Rs37.3bn (up 52.2%). The scrip touched an intra-day high of Rs331 and a low of Rs310 and recorded volumes of over 1,00,000 shares on BSE.
Roman Tarmat gained by 1.3% to Rs84 after the company announced that it secured two orders of around Rs196.2mn for construction of additional concrete parking bays for aircraft at Cochin International Airport, Nedumbassery from Cochin International Airport Ltd at Company's quoted percentage rate of 36% (Thirty six Percentage) above the estimate amount of Rs81.8mn will come to Rs111.25mn. The scrip touched an intra-day high of Rs87 and a low of Rs84 and recorded volumes of over 18,000 shares on BSE.
Corporate News
GTL subsidiary acquires the tower business of Essar group for US$1.5bn.(BS)
ONGC Videsh secures a commitment for a 23% stake in Russia’s Sakhalin III project.(BS)
MRF to invest Rs9bn on a greenfield manufacturing plant in Tamil Nadu.(BS)
MindTree acquires 32.6% stake in Aztecsoft for Rs1.2bn.(BL)
Tata Steel eyeing the iron ore arm of Brazilian miner CSN.(BS)
Real estate developer HDIL gets government approval for Mumbai airport slum rehabilitation programme.(BS)
Vodafone and Idea may set up a separate tower or passive infrastructure company.(ET)
Godrej group exits from BPO business; to sell stake in Godrej Global Solutions to Tricom India for Rs196mn.(TOI)
Ennore Port may float an IPO to raise Rs8bn.(BL)
M&M to sell 3.7% stake to a unit of Goldman Sachs to expand its automobile and tractor business.(BS)
Telecom Malaysia is likely to increase its stake in Spice Communications to 51%.(ET)
Adani Power files DRHP to raise Rs56bn through an IPO.(DNA)
Tata Steel and Essar Steel, amongst others, seek a stake in Krakatau Steel, Indonesia’s state owned producer.(FE)
GMR consortium receives a 20 year license to operate the airport in the Turkish capital.(BS)
ONGC board approves Rs36bn in investments, including Rs 18bn for development of four oil fields in Barmer, Rajasthan.(BS)
Essar Shipping lines up US$800mn to buy 14 ships.(BL)
Elecon Engineering plans acquisitions in Western Europe or the United States.(BS)
Jaiprakash Associates wins a bid to buy 45% stake in Prize Petroleum.(BL)
Escalating steel prices likely to affect 60% of BHEL’s order book.(Mint)
JSW Steel and Ispat announce cut in steel prices in the range of Rs400-Rs700 per ton.(BL)
Ergo Insurance Group of Germany and Hero Group agree to form a life insurance JV in India.(ET)
GE Shipping to invest Rs24bn over next three years to acquire ships and upscale operation of subsidiary company.(BL)
Parsvnath Developers to develop a luxury mall complex in Delhi with an investment of Rs3bn.(DNA)
Income Tax department asks Tatas to pay Rs450mn for Idea stake buy.(ET)
GMR Energy plans to raise Rs40bn through IPO and PE placements.(Mint)
Power Finance Corp. may be allowed to access up to US$5bn foreign exchange reserves through IIFCL.(ET)
Cipla makes unconditional offer to share the know-how of making all 354 essential drugs with the public sector drug manufacturers.(ET)
Supreme Court approves the prospecting license to Tata Steel for mining in Bailadila block in Chattisgarh.(DNA)
IOC asks government to allow autonomy in pricing of petroleum products.(ET)
Tata Motors sales decline 5.8% yoy in April; Eicher Motors April sales increase 16.8%.(FE)
Essar Exploration, a subsidiary of Essar Oil, reschedules drilling campaign in Myanmar.(BL)
DLF is setting up a JV with Italian leather and luggage accessory major Piquadro.(ET)
Air India to hike domestic fares by 10%.(ET)
BG India, part of BG Gas group, to invest US$1bn in oil exploration.(FE)
RCom to sell GSM handsets in the existing eight circles of Reliance Telecom.(ET)
Reliance Big Entertainment in talks with private equity funds for a divestment of 10% equity.(ET)
Economic News
TRAI issues a consultation paper on allocation and pricing of 3G spectrum.(BS)
Annual crude oil imports increase 9.1% yoy in the fiscal year ended March 2008.(FE)
India targets FDI investments worth US$35bn in 2008-09.(BS)
Thirteen PPP projects worth Rs79bn for various infrastructure segments receive government approval.(ET)
India close to clinching a free trade deal with Southeast Asian nations according to Trade Minister.(FE)
Government is expected to announce a new policy for investments in the fertilizer sector.(BL)
Government to import more cement from Pakistan.(ET)
Processed food industry to attract investments worth Rs950bn in the next three years.(FE)
Government may exempt cold rolled coils, galvanized products and tubes & pipes from the levy of 10% export duty if such products are exported against imported of semi-finished steel. (ET)
The Government may suspend trading in some more food futures to reign in spiraling prices. (DNA)