Wednesday, December 03, 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
3/12/2008 531932 C G IMPEX PRAFULLABEN AMRUTBHAI SONI B 45922 3.75
3/12/2008 531932 C G IMPEX DAXABEN VASANTKUMAR SHAH S 45922 3.75
3/12/2008 530309 CHAND PRAB I PIYUSH JAIN B 30700 4.02
3/12/2008 532696 EDUCOMP SOLN OPG SECURITIES P LTD B 92513 2086.87
3/12/2008 532696 EDUCOMP SOLN OPG SECURITIES P LTD S 92513 2087.94
3/12/2008 530955 KAILASH FICO RAJRATAN TRADING PVT LTD B 66900 23.59
3/12/2008 500304 NIIT LTD COPTHALL MAURITIUS INVESTMENT LIMITED B 6963255 25.75
3/12/2008 500304 NIIT LTD DEUTSCHE SECURITIES MAURITIUS LIMITED S 2309024 25.75
3/12/2008 500304 NIIT LTD MORGAN STANLEY INVESTMENTS MAURITIUS LIMITED S 1700000 25.75
3/12/2008 500304 NIIT LTD MACQUARIE BANK LIMITED S 2881061 25.75
3/12/2008 526747 P G FOILS LT PREM CABLES PVT LTD B 150000 20.50
3/12/2008 526747 P G FOILS LT TIRUMALA IRONS PVT LTD S 150000 20.50
3/12/2008 590077 RANKLIN SOLU JYOTHI G B 26700 53.72
3/12/2008 531898 SANGUINE MD VISHU ENTERPRISE B 114523 6.28
3/12/2008 531898 SANGUINE MD COMFORT INTECH LIMITED S 190150 6.14
3/12/2008 512634 SAVERA IND DOLLY KHANNA B 30000 31.00
3/12/2008 512634 SAVERA IND FRANKLIN TEMPLETON ASSET MGT INDIA PVT LTD S 30200 31.01
3/12/2008 526365 SHYAM STAR VIJIT ASSET MANAGEMENT PRIVATE LIMITED. B 68008 11.81
3/12/2008 526365 SHYAM STAR ASHWIN COMMODITIES AND SHARES PVT LTD. B 41094 11.97
3/12/2008 526365 SHYAM STAR VIJIT ASSET MANAGEMENT PRIVATE LIMITED. S 38008 11.51
3/12/2008 531574 VAS INFRA LOTUS GLOBAL INVESTMENTS LTD S 192000 8.00
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
03-DEC-2008,BAJAJFINSV,Bajaj Finserv Limited,BAJAJ HOLDINGS AND INVESTMENT LIMITED,BUY,3800000,94.00,-
03-DEC-2008,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,112295,2098.13,-
03-DEC-2008,GOLDENTOBC,Golden Tobacco Limited,SOMERSET EMERGING OPPORTUNITIES FUND,BUY,100000,42.00,-
03-DEC-2008,INDOTECH,Indo Tech Transformers Li,TATA MUTUAL FUND,BUY,74567,274.54,-
03-DEC-2008,PANTALOONR,Pantaloon Retail (India),Fidelity Funds - Emerging Markets,BUY,900000,223.00,-
03-DEC-2008,PIRLIFE,Piramal Life Sciences Lim,DSP MERRILL LYNCH MUTUAL FUND A/C DSP MERRILL LYNCH FIXED TE,BUY,216559,47.00,-
03-DEC-2008,UNITECH,Unitech Ltd,TOTAL SECURITIES LIMITED,BUY,9400104,26.06,-
03-DEC-2008,BAJAJFINSV,Bajaj Finserv Limited,T ROWE PRICE INTERNATIONAL A/C NEW ASIA FUND,SELL,1960127,94.00,-
03-DEC-2008,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,112295,2099.37,-
03-DEC-2008,PANTALOONR,Pantaloon Retail (India),BSMA LIMITED,SELL,900000,223.00,-
03-DEC-2008,PIRLIFE,Piramal Life Sciences Lim,ABERDEEN ASSET MANAGEMENT ASIA LIMITED A/C NTMF PACIFIC BASI,SELL,221722,47.15,-
03-DEC-2008,UNITECH,Unitech Ltd,TOTAL SECURITIES LIMITED,SELL,9491004,26.07,-
The domestic market ended the day in flat note after trading in a lackluster manner for throughout of session. Market tried to recover from lower level during the trading but was unable to hold the momentum. Concerns for the weakening global economy fueled to the negative attitudes. Reports that the government is considering various options including a strike on Pakistan’s terror bases in response to the recent Mumbai terror attacks, also weighted on the sentiments.
The Indian market belled the day in positive note on the back of gains in overseas market, after a reporting a fall in previous session. But market lost its momentum soon after start and turned choppy. Further, the benchmark indices continued to roll between positive and negative territory despite rally in Asian indices. Concern for the impact of US recession along with negative European markets contributed to the downward journey. Alternatively, market is expecting that the government is likely to announce a series of measures to boost economic activity. From the sectoral front Metal, Reality, consumer Durables, Bank, PSU and Capital Goods stocks supported the market. Some buying was also seen in Midcap and Smallcap stocks. While, IT, Teck, Oil & Gas and Pharma stocks remained under pressure.
Among the Sensex pack 15 stocks ended in red territory and 15 in green. The market breadth was positive as 1180 stocks closed in green while 930 stocks closed in red and 78 stocks remained unchanged.
The BSE Sensex closed marginally higher by 8.19 points at 8,747.43 while NSE Nifty ended slightly down by 1.35 points at 2,656.45. The BSE Mid Caps and BSE Small Caps ended with gains of 25.26 and 12.69 points at 2,830.59 and 3,265.10 respectively. The BSE Sensex touched intraday high of 8,854.81 and intraday low of 8,601.41.
Gainers from the BSE Sensex pack are Tata Steel (10.80%), JP Associates (8.04%), Maruti Suzuki (6.94%), SBI (5.50%), DLF Ltd (5.44%), Tata Motors (3.74%), ICICI Bank (3.44%), Reliance Infra (3.09%), HDFC (1.62%) and L&T Ltd (1.61%).
Losers from the BSE Sensex pack are Infosys Tech (4.29%), Wipro Ltd (4.23%), M&M Ltd (2.80%), RCom (2.29%), Hindalco (1.92%), ONGC Ltd (1.76%), ACC Ltd (1.73%), Satyam Computer (1.27%), Bharti Airtel (1.07%) and NTPC Ltd (0.72%).
The BSE Metal index ended higher by (3.39%) or 146.14 points at 4,451.04 as Tata Steel (10.80%), NMDC Ltd (7.41%), JSW Steel (4.56%), Jindal Steel (4.46%), Jai Corp Ltd (3.73%) and Ispat Industries (2.54%) ended in positive territory.
The BSE Reality index ended up by (3.34%) or 50.42 points at 1,559.69. Major gainers are Anant Raj (10.94%), DLF Ltd (5.44%), Parsvnath (4.86%), Housing Dev (4.21%), Penland Ltd (2.73%) and Unitech Ltd (1.75%).
The BSE Consumer Durables index gained (2.70%) or 45.30 points to close at 1,713.78. Main gainers are Gitanjali GE (4.44%), Videocon Ind (4.27%), Titan Ind (4.16%) and Rajesh Export (1.27%).
The BSE IT index dropped by (3.08%) or 76.09 points to close at 2,400.09. Losers are HCL Tech (4.43%), Infosys Tech (4.29%), Wipro Ltd (4.23%), Finance Tech (3.49%), NIIT Ltd (2.77%) and Patni Computer (2.77%).
The BSE Teck index plunged by (2.16%) or 42.34 points to close at 1,918.77 as HCL Tech (4.43%), Infosys Tech (4.29%), IBN18 (4.28%), Wipro Ltd (4.23%), Finance Tech (3.49%) and Idea Cell (3.34%) ended in red.
The BSE Oil & Gas index lost (0.56%) or 25.96 points to close at 5,367.91. Losers are ONGC Ltd (1.76%), BPCL Ltd (1.13%), Reliance Petroleum (0.70%) and Reliance (0.48%).
In a spiritless trading session, the market displayed a range-bound trend with select bouts of buying and selling. After opening 112 points higher over its previous close of 8,739, the Sensex scaled higher to touch an intra-day high of 8,855. In mid session the market remained steady, however the sentiment turned bearish at the end of the session and the index dipped to the day's low of 8,601. However, the Sensex on the back of selective stocks ended on a flat note at 8,747, up by just eight points. Nifty however lost a point for the day to close at 2,656. Market breadth on the BSE was positive. Of the 2,188 stocks traded, 1,180 stocks advanced whereas 930 stocks declined; the remaining 78 stocks ended unchanged.
Sectoral indices showed a mixed result. BSE Metal, BSE Realty, BSE CD, BSE Bankex, BSE PSU, BSE CG, BSE Auto and BSE Power ended in the green, However, BSE IT, BSE Teck, BSE Oil, BSE HC and BSE FMCG exhibited weakness.
Among the gainers, Tata Steel flared up 10.80% at Rs164.70, JP Associates moved up 8.04% at Rs62.45, Maruti Suzuki India jumped 6.94% at Rs492, State Bank of India gained 5.50% at Rs1,097, DLF scaled up by 5.44% at Rs191.90, Tata Motors was up 3.74% at Rs133.20 and ICICI Bank advanced up 3.44% at Rs334.90. Reliance Infrastructure, Larsen & Toubro, HDFC, Sterlite Industries, Ranbaxy Laboratories, Tata Power and Tata Consultancy Services reported steady gains. However, Infosys Technologies dropped 4.29% at Rs1,157.85, Wipro shed 4.23% at Rs223 and Mahindra & Mahindra dipped 2.80% at Rs242.80. Reliance Communications, Hindalco, and ONGC were marginally down.
Over 2.36 crore Unitech shares changed hands on the BSE followed by Suzlon Energy (1.46 crore shares), GVK Power & Infrastructure (1.23 crore shares) and NIIT (0.78 crore shares)
Shanghai leads the regional rally as Nikkei, New Zealand snaps losing streak
The stock markets across the Asian region closed the day higher amid volatility, after Wall Street rebounded over night on bargain hunting following Monday's sharp decline.
The Dow rose 270.0 points or 3.3% to 8,419.1, the S&P 500 index climbed 32.6 points or 4.0% to 848.8, and the Nasdaq composite index gained 51.7 points or 3.7% to 1,449.8.
In the commodity market, crude oil prices rose in the Asian session, ahead of U.S. inventory data, after the contract fell overnight on fears about weakening demand due to a global slowdown. January light sweet crude oil futures were up as much as 67 cents to $47.63 a barrel. The front-month contract ended at its lowest level since May 20, 2005 in Nymex trading Tuesday, falling $2.32 to $46.96 a barrel.
Coming to the equity market, Japanese stock index Nikkei snapped two days of losing streak to finish the session 1.8% higher on bargain hunting following steep declines in the previous two sessions and as hopes grew of a rescue of the Big Three US automakers.
The Nikkei 225 Stock Average gained 140.41 points, or 1.8%, to 8,004.1, off the day’s high of 8,056.38 and a low of 7,889.82. The broader Topix climbed 12.94 points, or 1.6%, to 800, off the day’s high of 803 and a low of 788.
In Mainland China, the Shanghai stock exchange recoil its yesterday losses with strong gains in banks and financials on news that a unit of China’s sovereign wealth fund has increased its stake in the China Construction Bank and the government plans to spend hugely on infrastructure to stimulate the economy. Meanwhile, miners and metal stocks outperformed on hopes demand would boost on the government's infrastructure spending. The benchmark Shanghai Composite Index closed up 75.78 points or 4.01% at 1,965.41. The Shenzhen composite index gained 3.90% closing the day at 584.43.
In Hong Kong, the share prices closed stronger, though off their highs, led by China stocks as the Shanghai market gained over 4% and investors continued to hope for further stimulus measures from Beijing. The Hang Seng index closed up 182.81 points or 1.36% at 13,588.66, off a low of 13,573.43 and a high of 13,778.05. The Hang Seng China Enterprises index was up 230.06 points or 3.29% at 7,232.54.
The Australian S&P/ASX 200 climbed 1.3% to 3,573.50. According to the data released by the Bureau of Statistics the gross domestic product expanded 0.1% in the third quarter from the second, falling short of an expected 0.2% expansion. On annualized basis the economy expanded 1.9% during the quarter, showing the economy remains on track for annual expansion this year, although well short of its long-term average growth of 3%.
The New Zealand stock market closed higher for the first time in three days on the back of gains in US markets. The benchmark NZX 50 index closed up 55.6 points or 2.1% at 2,706.8 and the broader NZX All Capital index gained 55.0 points or 2.0% to finish at 2,746.8.
On the economic front, commodity prices in New Zealand plunged for a fourth consecutive month, declining 7.2% in November, according to ANZ. The index has posted a cumulative fall of 21% since July 2008, with pelt prices recording the biggest fall.
The South Korean stock market closed lower, extending its losses for a third straight trading session. The benchmark Korea Composite Stock Price Index or KOSPI was down 0.53 points or 0.05% at 1,022.67.
On the economic front, the Bank of Korea said that South Korea's foreign exchange reserves continued to fall in November mainly due to liquidity injections meant to ease an ongoing credit crunch and financial jitters. The nation's foreign reserves totaled $200.5 billion as of end-November, down $11.7 billion from $212.25 billion a month ago. Foreign reserves fell the eighth straight month.
In India, amid a see-saw trade the key benchmark indices close the day slightly higher. The BSE 30-share Sensex was up 8.19 points, or 0.09% closing the day at 8747.43.
Elsewhere, Singapore’s strait times gained marginally by 1.39 points or 0.08% closing the day at 1640.57; Malaysia's KLCI closed up 0.21% at 847.53; and Indonesia's Jakarta Composite index gained by 0.10% at 1,192.53. Taiwan’s Taiex closed the day 49.72 points or 1.14% lower at 4307.26
In the other regional market, European shares slipped in the early trading hours, with electricity group EDF leading the decline after it offered to buy a 50 percent stake in Constellation Energy Group Inc's nuclear business. The German DAX 30 index dropped 1.9% to 4,445.37, the French CAC-40 index fell 1.4% to 3,107.39 and the U.K. FTSE 100 index lost 0.8% to 4,090.91.
Congress party head Sonia Gandhi's statement that India wants peace with all its neighbours helped the market stage a rebound from lower level in mid-afternoon trade. Easier margining norms, hopes of government measures to pump prime the economy and firm Asian stocks supported the domestic bourses. But lower US index futures, weak European stocks and on concerns about the weakening global economy capped gains. The BSE 30-share Sensex was up 8.19 points, or 0.09%, recovering close to 145 points from the day's low.
The market was highly volatile and moved between positive and negative zone throughout the day. After a firm start on easier margining norms and hopes of government measures to pump prime the economy, the market shortly slipped into the red as lower US index futures, paring of gains by Asian markets and global recession worries marred investor sentiment. The market bounced back later as Asian equities regained strength.
But the recovery proved short-lived as tension between India and Pakistan in the aftermath of terror attacks in Mumbai, weak European markets, lower US index futures and concerns about the global economic recession weighed on the market.
The market cut losses later. The Sensex swung 253.40 points between the day's high and low.
The Congress President at an election rally near the ceasefire line with Pakistan today, 3 December 2008, said India wants peaceful relations with all its neighbours, but this should not be taken as a weakness.
Tension between India and Pakistan have mounted after the Mumbai attacks. India has blamed Islamist militants based in Pakistan for the attacks. As per reports, the government is considering various options including a strike on Pakistan to dismantle its terror bases in response to the recent Mumbai terror attacks. The government will discuss the issue of attacking Pakistan with US Sectretary of State Condoleezza Rice who arrived in New Delhi today, 3 December 2008. As a strike on Pakistan could lead to a full scale war between the two nuclear armed countries, India is maintaining a cautious approach and wants to gauge every possible ramification of its decision, reports suggest.
The stock market regulator Securities & Exchange Board of India (Sebi), after trading hours on Tuesday, 2 December 2008, extended the facility of cross margining across cash and derivatives segments to all categories of market participants. So far, this benefit had been restricted to institutional trades. The move will lower margin payment for traders, who are holding opposite positions in the cash and futures segment of the same stock. This will come has a big relief to broking firms as cost of working capital has risen sharply in the past few months.
Meanwhile, the government is set to announce a slew of measures at the weekend to pump prime the economy, media reports suggest. The likely measure include cheap credit to exports and low-cost housing as well as making available additional funds worth Rs 50000 crore to the infrastructure sector. There is also possibility of the Reserve Bank of India (RBI) announcing another set of cuts in key policy rates like the cash reserve ratio (CRR), the repo rate and the reverse repo rate.
CRR is the ratio of bank deposits that commercial banks are required to keep with the central bank. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks.
Weak data on euro zone services sector pulled European markets lower. The key benchmark indices in France, Germany and UK were down by between 1.06% to 2.19%.
Euro zone services activity fell further than initially thought in November, to a fresh record low, while inflationary pressures continued to subside, a key survey showed.
Trading in US futures indicated the Dow could fall 141 points at the opening bell. The US index futures were volatile.
But most of the Asian markets were firm. The Nikkei 225 average in Japan was up about 1.79% as a decision by global industrial bellwether General Electric on Tuesday, 2 December 2008, to leave its dividend intact despite the worsening economy, sparked optimism. Key benchmark indices in Singapore, China and Hong Kong were up by between 0.76% to 4.01%. The indices in these four Asian markets were up by between 0.91% to 1.84% earlier. However, Key benchmark indices in Singapore and Taiwan were down by between 0.05% to 1.14%.
The outlook for the global economy continues to weaken, with Australia saying on Wednesday, 3 December 2008, that growth in the last quarter was at its slowest pace in eight years. Corporate profits worldwide are also under threat as consumers cut back spending. US auto makers on Tuesday, 2 December 2008, posted a nearly 37% plunge in monthly sales that brought levels to their lowest in since 1982, reinforcing their plea for a bailout from the US government.
The BSE 30-share Sensex was up 8.19 points, or 0.09%, to 8,747.43. At the day's high of 8,854.81 hit in early trade, the Sensex rose 115.57 points. The Sensex lost 137.83 points at the day's low of 8,601.41 hit in late trade.
The S&P CNX Nifty was down 1.35 points, or 0.05%, to 2,656.45.
The BSE clocked a turnover of Rs 2,948 crore today, higher than Rs 2,603.16 crore on 2 December 2008.
Nifty December 2008 futures were at 2647, at a discount of 9.45 points as compared to the spot closing of 2656.45. Turnover in NSE's futures & options (F&O) segment increased to Rs 33,606.23 crore from Rs 33,471.48 crore on Tuesday, 2 December 2008.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,180 shares rose as compared with 930 that declined. 78 shares remained unchanged.
The barometer index BSE Sensex is down 11,539.56 points or 56.88% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 12,459.34 points or 58.75% below its all-time high of 21,206.77 struck on 10 January 2008.
As per the provisional figures on BSE, foreign institutional investors (FIIs) sold shares worth Rs 452.11 crore today, 3 December 2008 while domestic funds bought shares worth Rs 366.24 crore.
Sectoral indices on BSE displayed mixed trend. The BSE Metal index (up 3.39% to 4,451.04), the BSE Realty index (up 3.34% to 1,559.69), the BSE Consumer Durables index (up 2.7% to 1,713.68), the BSE Bankex (u 2.5% to 4,547.01), the BSE PSU index (up 1.13% to 4,500.52), the BSE Capital Goods index (up 1.08% to 6,086.58), the BSE Auto index (up 0.85% to 2,173.11), the BSE Power index (up 0.53% to 1,586.05) outperformed the Sensex.
The BSE IT index (down 3.08% to 2,400.09), the BSE Teck index (down 2.16% to 1,918.77), the BSE Oil & Gas index (down 0.56% to 5,367.91), the BSE HealthCare index (down 0.36% to 2,823.25), the BSE FMCG index (down 0.11% to 1,901.60), underperformed the Sensex.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) slipped 0.48% to Rs 1,069.50, off day's high of Rs 1,125, on concerns a global slowdown would hit demand for petrochemicals.
India's largest oil exploration firm by revenue ONGC fell 1.76% as crude oil hovered near record lows. Falling crude oil prices will affect the realization from crude sales.
PSU OMCs were mixed amid fall in oil product sales in October 2008. Indian Oil Corporation and HPCL rose by between 0.17% to 0.32%. BPCL fell 1.13%. The sale of industrial fuel and diesel declined 1.7% to 10.1 million tonnes in October 2008 over October 2007, government data showed on Monday 1 December 2008.
Crude oil rebounded from a three-year low on speculation OPEC will cut production further this month to check the collapse in prices. Crude oil for January delivery rose as much as $1.14, or 2.4 %, to $48.10 a barrel in electronic trading on the New York Mercantile Exchange.
Steel makers rose as sentiments improved after the sector bellwether Tata Steel reported strong consolidated Q2 September 2008 results after trading hours on Tuesday, 2 December 2008. Jindal Steel, JSW Steel, Steel Authority of India, Ispat Industries, Maharashtra Seamless were up by between 1% to 4.56%.
Tata Steel, the world's sixth largest steel maker jumped 10.8% as consolidated net profit soared 215.77% to Rs 4703.64 crore on a 36.17% increase in total income to Rs 44283.34 crore in Q2 September 2008 over Q2 September 2007.
Realty stocks rose on reports the government will next week unveil measures for the realty sector, which may include incentives for low-cost housing and lower loan rates. Indiabulls Real Estate, DLF, Unitech rose by between 0.59% to 5.44%.
Realty firm Parsvnath Developers surged 4.86% on reports it has cut salaries of its employees by up to 20% to prune costs amid a slowdown in the real estate sector.
Banking stocks edged higher on rate cut hopes. India's largest private sector bank by net profit ICICI Bank rose 3.44% as American depository receipt (ADR) gained 7.14% on Tuesday, 2 December 2008. India's largest commercial bank State Bank of India (SBI) jumped 5.5%. However, India's second largest private sector bank by net profit HDFC Bank fell 0.4% as ADR rose 6% on Tuesday.
India's largest home loan lender by operating income HDFC rose 1.62%.
Bank of Baroda gained 2.07% after a block deal of 4.96 lakh shares was executed on NSE at Rs 247 per share.
IT stocks slipped as a stronger rupee offset firm ADRs. India's second largest IT exporter by sales Infosys fell 4.29%, even as ADR rose 3.47% overnight. India's fourth largest IT exporter by sales Wipro fell 4.23% even as ADR rose 3.09%. India's third largest IT exporter by sales Satyam Computer Services slipped 1.27% even as ADR gained 4.49% on Tuesday, 2 December 2008. However, India's largest IT exporter by sales Tata Consultancy Services rose 0.06%.
The Indian rupee was mostly steady in afternoon trade on Wednesday as a choppy share market failed to provide adequate cues on the direction of fund flows while some defence-related dollar demand kept pressure on the currency. The partially convertible rupee was at 49.95/50.00 per dollar, off an early high of 49.75 but still stronger than 50.15/16 at close on Tuesday. A stronger rupee affects IT firms negatively as they earn most of their revenues from exports.
Auto stocks extended losses of the last two trading session on dismal monthly sales figures by most auto firms. India's largest tractor maker by sales Mahindra & Mahindra dipped 2.8% after total vehicle sales (excluding tractors) fell 41% at 10,430 units in November 2008 over November 2007.
India's largest motorbike maker by sales Hero Honda Motors slipped 2.13% as the company expects sales to be under pressure with the festive season over.
However, India's largest commercial vehicle maker by sales Tata Motors rose 3.74% on reports Company aims to raise up to Rs 2700 crore through term deposits to tide over a cash crunch. The company had reported 30% decline in total vehicle sales to 32,696 units in November 2008 over November 2007, after trading hours on Monday, 1 December 2008.
Force Motors was locked at upper limit of 20% at Rs 74.40 on its decision to sell stake in a joint venture.
Power stocks rose on reports the likely government measures to boost the economy may include special credit window for the power sector. Tata Power Company, Reliance Infrastructure, Power Grid Corporation of India jumped by between 0.54% to 3.09%.
Steel makers rose as sentiments improved after the sector bellwether Tata Steel reported strong consolidated Q2 September 2008 results after trading hours on Tuesday, 2 December 2008. Tata Steel, Jindal Steel, JSW Steel, Steel Authority of India, Ispat Industries, Maharashtra Seamless were up by 1.65% to 10.8%.
Tata Steel's consolidated net profit soared 215.77% to Rs 4703.64 crore on a 36.17% increase in total income to Rs 44283.34 crore in Q2 September 2008 over Q2 September 2007.
Meanwhile, reports suggested that domestic steel makers are set to cut prices of hot rolled coils, a base product determining the prices of various downstream products, by around Rs 1,000 - Rs 1,500 a tonne.
Capital goods stocks rose on hopes government efforts to pump prime the economy will boost orders. Larsen & Toubro, Suzlon Energy, Crompton Greaves and Thermax rose by between 1.81% to 2.3%. However India's largest electric equipment maker by sales Bharat Heavy Electricals fell 0.34%.
Consumer durables stocks rose on hopes further rate cuts by the Reserve Bank of India would spur demand which is mainly driven by finance. Videocon Indusries, Rajesh Exports and Titan Industries rose by between 0.04% to 4.27%.
Defense equipment makers rose on expectations that the government will raise defence spending after recent terror attacks in Mumbai. Astra Microwave, Zen Technologies and Bharat Electronics rose by 3.65% to 17.96%.
Infrastructure stocks rose on hopes a likely government package to boost the economy will give thrust to the infrastructure sector. Hindustan Construction Company, Nagarjuna Construction Company, Era Infra Engineering, IVRCL, Infrastructure & Projects, Larsen & Toubro rose by between 0.42% to 9.88%.
Cement stocks were mixed on hopes likely government measures to boost the infrastructure sector will spurt demand. Birla Corporation, UltraTech Cement, and Grasim Industries rose by between 0.03% to 3.94%
India's largest cement maker by sales ACC fell 0.81% even as cement shipments rose 9.5% to 1.73 million tonnes in November 2008 over November 2007. Ambuja Cements, India's third-largest cement maker, fell 0.56% even its shipments rose 8.8% to 1.48 million tones in November 2008 over November 2007.
Kingfisher Airlines galloped 5.74% on reports it has received government nod to operate flights on nine international routes.
Aurobindo Pharma declined 3.66% on reports US drug major Eli Lilly has sued the company for patent infringement on an antidepressant drug.
Indo Tech Transformers rose 8.99% on reports a global power major is set to buy out promoter stake in the company.
Kalindee Rail Nirman Engineers gained 4.31% on bagging an order worth Rs 99.99 crore.
We recommend a sell in the Rolta India stock for investors with short-term perspective. From the charts of Rolta, it is clearly evident that it has been trending downwards from its September high of Rs 360.
However, after finding support at Rs 134 (a 52-week low) in early October, the stock bounced up. This up move failed to move beyond Rs 200. Since then, the stock was on a sideways consolidation in the range of Rs 160 and Rs 195.
During late October the stock breached its 21-day moving average on the downside, signalling initial weakness. Subsequently, on December 2, the stock conclusively broke out of the sideways trading range by declining 5.5 per cent accompanied with above-average volumes. With this, the daily relative strength index (RSI) has entered in to the bearish zone and weekly RSI is already featuring in this zone.
Our short-term view on the stock is bearish. We expect the stock to decline until it hits our price target of Rs 140 in the forthcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 164.
Weak dollar increase their appeal
Falling dollar increased the appeal of the bullion metals and the same rose on Tuesday, 02 December, 2008. Gold and silver prices rose due to the weak dollar. Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Tuesday, Comex Gold for February delivery rose $6.5 (0.8%) to close at $783.3 an ounce on the New York Mercantile Exchange. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (25%) since then. Last week, gold prices ended higher by 3.1%. For the month of November, gold prices ended higher by 14%.
Prior to this, for the month of October, gold had ended lower by 18%. It was the biggest percentage loss for gold since February, 1983.
This year, gold prices have lost 6.8% till date. Futures have averaged $882 in 2008. The dollar index has gained 11% this year. For the third quarter ended September, 2008, gold prices ended lower by 5.1%. It was the first quarterly loss for the yellow metal since the second quarter in FY 2007. Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. For first quarter prices gained 10.7%.
On Tuesday, Comex silver futures for December delivery rose 26.5 cents (2.5%) to $9.615 an ounce. Last week, silver gained 7.5%. For the month of November, silver prices gained 5%. Till date, silver has lost 33.5% this year.
For the month of October, silver had slipped by 20%. Silver had ended month and quarter of September 2008 with a loss of 10%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.
At the currency market on Tuesday, the dollar index, which tracks the performance of the dollar against a trade-weighted basket of six major currencies, shed 0.4%.
Earlier this year, the weakening dollar and higher global demand for raw materials had led to records this year for commodities including gold. Gold reached a record in March as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the latest move, the Federal Reserve has cuts its target bank lending rate to 1% from 5.25% in September, 2007. The Fed did it in eight steps.
Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.
At the MCX, gold prices for February delivery closed lower by Rs 77 (0.6%) at Rs 12,607 per 10 grams. Prices rose to a high of Rs 12,701 per 10 grams and fell to a low of Rs 12,436 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 57 (0.34%) higher at Rs 16,748/Kg. Prices opened at Rs 16,658/kg and rose to a high of Rs 16,998/Kg during the day's trading.
Prices slip by another 5% after yesterday's 9% drop
Crude prices ended lower once again on Tuesday, 02 December, 2008. Prices fell as OPEC kept its production quota unchanged in last weekend's meeting and as traders mulled over demand for energy in the coming months.
On Tuesday, crude-oil futures for light sweet crude for January delivery closed at $46.96/barrel (lower by $2.32 or 4.7%) on the New York Mercantile Exchange. Prices reached a high of $147 on 11 July but have dropped almost 67% since then. Last week, prices rose by 9%, the first weekly gain in a month. For this year in 2008, crude prices have dropped 50%.
For the month of November, crude prices ended lower by 19.7%. Before this, for the month of October, 2008, crude prices had ended lower by 32.6%, the biggest monthly drop since 1983.
The Organization of Petroleum Exporting Countries ended a weekend meeting in Cairo without any decision on a production cut. OPEC President and Algerian Oil Minister Chakib Khelil said he expects oil demand to decline from a month ago, and said the group would take necessary action on 17 December when it meets in Oran, Algeria.
EIA will report the weekly status of crude and crude production inventories for last week tomorrow, Wednesday, at 10 am. Market expects a build up of crude and gasoline inventory of 2 million barrels and 1 million barrels respectively.
For the third quarter of the year crude prices ended lower by 28%. This was the biggest quarterly drop since 1991. Before that, crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. For the month of September, prices registered drop of 13%.
Against this background, January reformulated gasoline dropped 4.8% to $1.0583 a gallon and January heating oil slid 2% to $1.5832 a gallon.
January natural-gas futures fell 2.7% to $6.424 per million British thermal units.
At the MCX, crude oil for December delivery closed at Rs 2,479/barrel, lower by Rs 94 (3.6%) against previous day's close. Natural gas for November delivery closed at Rs 325.5/mmbtu, lower by Rs 10.6/mmbtu (3.1%).