Thursday, March 19, 2009
In accordance with Circular no. NSE/SURV/12/2009 dated March 19, 2009 members are requested to note that Exchange has decided to exclude the scrip Akruti City Limited (AKRUTI) from equity derivatives segment.
Thus, fresh month contracts will not be introduced for the expiry month June 2009 on the expiration of March 2009 contracts. All existing contracts i.e. contracts with expiry dates April 30, 2009 and May 28, 2009 will expire on March 26, 2009. Accordingly, no futures and options contracts will be available in the underlying AKRUTI for trading from March 27, 2009 onwards. The methodology for position adjustments shall be separately intimated by NSCCL.
The security will continue to be available for trading in the capital market segment.
To align the domestic bourses with international markets
Market regulator Securities and Exchange Board of India (Sebi) today, 19 March 2009, proposed to extend trading hours in exchanges to align the domestic bourses with international markets and asked various stakeholders for their opinion by 10 April 2009.
Among the advantages noted by the regulator are incorporating information flowing from different time zones, markets becoming efficient with quick assimilation of data, attracting global trading interest and enabling participants to take longer positions.
In India, the equity cash market and exchange-traded derivatives market is open between 9:55 IST to 15:30 IST. While exchange-traded currency derivatives market operates from 9:00 IST to 17:00 IST, exchange-traded commodity futures market operates from 8:00 IST till 23:30 IST.
Set for deflation
The Wholesale price index recorded a decade low growth rate for the week ended 7 March 2009. The annual rate of inflation, calculated on point-to-point basis, stood at 0.44% for the week ended 07 March 2009 as compared to 2.43% for the previous week and 7.78% during the corresponding week of the previous year.
Laying with the global clues of falling oil and commodity prices the WPI based inflation moved steeply towards the southward direction. The higher base effect also cannot be ruled out.
The primary article index carrying a second highest weight in total WPI declined by 1.0 % to 245.5 from 248.1 for the previous week. The index of primary articles mainly comprises of food and non-food articles. The index for food articles group declined by 0.7% to 242.5 from 244.2 for the previous week due to lower prices of gram (5%), tea and fruits & vegetables (3% each), jowar and condiments & spices (2% each) and masur (1%). However, the prices of moong and fish-marine (2% each) moved up.
Another key driver that is the fuel, power, light and lubricant group index declined by 0.8% to 321.0 from 323.5 for the previous week due to lower prices of aviation turbine fuel and electricity for agriculture (8% each), light diesel oil (7%) and bitumen (2%). However, the prices of naphtha and furnace oil (3% each) and electricity for domestic, commercial and industry and railway traction (1% each) moved up.
The manufactured product index remained unchanged at its previous week's level of 199.2. The index for textile and machinery and machine tools grew by 0.1% for week ended 7 March 2009 compared to previous week. On a flip side index for textile group declined by 0.1 %to 140.5 from 140.4 for the previous week due to higher prices of hessian & sacking bags and hessian cloth (1% each). However, the prices of woollen yarn (6%) declined. In addition to this The index for chemicals and chemical products group declined by 0.2 % to 214.2 from 214.7 for the previous week due to lower prices of oxygen gas in cylinder (14%), liquid chlorine (3%), acetylene and titanium dioxide (2% each) and acid (all kinds), oxygen, methanol and soda ash (sodium carbonate) (1% each).
The current financial year started with single digit inflation number but reached to significantly higher level in June 2008 to October 2008. However the trend reversed from October 2008 and WPI based inflation fell steeply to 0.44% for the week ended 07 March 2009. Looking towards the current dismal growth in price level, India is set for deflation where we can see negative growth in price level. Below half a percent growth in inflation set a solid background for deflation.
However higher CPI and food inflation numbers can not be overlooked at this juncture. Inflation as measured by the consumer prices paid by industrial workers accelerated to 10.45% in January 2009. The consumer-price index for Agricultural Labourers and Rural Labourers increased 11.62% and 11.35%, respectively in January 2009 from a year earlier.
Though steep fall in WPI based inflation provides room for more monetary actions to ease liquidity and stimulate economic growth, the rising CPI cannot be ignored which is still running at above historic levels.
Nifty March 2009 futures were at 2801.55, at a discount of 5.60 points as compared to the spot closing of 2807.15. Turnover in NSE's futures & options (F&O) segment was Rs 48,752.20 crore, sharply lower than Rs 54,871.64 crore on Wednesday, 18 March 2009.
Akruti City March 2009 futures were at huge discount at 2141.25 compared to the spot closing of 2210.85.
DLF March 2009 futures were at discount at 169.65 compared to the spot closing of 174.
Axis Bank March 2009 futures were near spot price at 357.85 compared to the spot closing 358.
In the cash market, the S&P CNX Nifty gained 12.45 points or 0.45% at 2807.15.
Financial stocks act as accelerator while exports tried to put brake on further advance
Stock markets in Asian region continued their winning streak on Thursday, 19 March 2009, as most of the Asian markets continued to gain taking a positive clue from the overnight gain on Wall Street and weakening of US dollar against most of the regional currencies.
Stocks market on Wall Street turned a down day around to lock in 1% to 2% gains after the government said it would expand its quantitative easing efforts. Bank of America and Citigroup surged more than 20%, leading the Dow Jones Industrial Average, which rose 92.39 points, or 1.3%, to 7448.09, while the S&P 500 added 16.26 points, or 2.1%, to 794.38. The Nasdaq was better by 29.11 points, or 2%, to 1419.22, celebrating the prospective buyout of Sun Microsystems.
The Fed Open Market Committee (FOMC) wrapped up its meeting on Tuesday afternoon, saying it would keep its key interest rate at record low rates. Of note, the FOMC said it would purchase up to $750 billion of agency mortgage-backed securities, bringing its total purchases up to $1.25 trillion in 2009. The Fed will also purchase up to $300 billion of longer-term Treasury securities over the next six months to help conditions in private credit markets, and said it could expand the Term Asset Backed Securities Loan Facility (TALF) to include other financial assets.
In the commodity market, crude oil rebounded on optimism the U.S. Federal Reserve’s plan to buy back debt will end the global recession, reviving demand for fuels. The Fed is seeking to purchase about $1 trillion of U.S. Treasuries, mortgage-backed bonds and other debt.
Crude oil for April delivery rose as much as $1.69, or 3.5%, to $49.83 a barrel on the New York Mercantile Exchange. It was at $49.78 a barrel at 10:23 a.m. London time. Yesterday, futures fell $1.02, or 2.1%, to $48.14 a barrel. Prices are up 10 percent this year. The April contract expires tomorrow. The more-active May contract was at $49.85 a barrel, up 95 cents, at 1:28 p.m. Singapore time.
Brent crude oil for May settlement rose as much as $1.38, or 2.9%, to $49.04 a barrel on London’s ICE Futures Europe exchange. It was at $48.70 a barrel at 10:23 a.m. London time.
Gold continues to soar in Asia as the post Fed euphoria refuses to let go. Dollar is falling apart across the board after the US FED statement. COMEX Gold rebounded sharply immediately after the FOMC announcement, spiking well pass $900 and reached a high of $941.60 per ounce. The metal was also spurred by the helpful US inflation data yesterday.
In the currency market, the Japanese yen strengthened to 95.5460 against the US dollar, up from Wednesday quote of 98.54 yen.
The Hong Kong dollar was trading at HK$ 7.7516 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.
In Sydney trades, the Australian dollar finished the local session at a two-month high on Thursday as investors sold the US currency following the American central bank's decision to buy fixed-income securities. The Australian dollar finished trading at $US0.6746/48, up two per cent from Wednesday's close of $US0.6613/17 - the highest local close since 19 January 2009 when the currency ended the domestic session at $US0.6812/14.
In Wellington trades, the New Zealand dollar jumped over a cent against the greenback after the United States Federal Reserve unveiled more measures to revive the US economy.
The kiwi surged to a two-month high around US54.60c after the announcement this morning. The kiwi lost some of its gains during domestic trading hours to close trading at US54.16 cents, compared with US53.01 cents on Wednesday.
The South Korean currency rose to a one-month high against the U.S. dollar on Thursday as a plan by the U.S. Federal Reserve to buy government bonds revived appetite for riskier assets. The local currency closed at 1,396 won to the greenback, up 25.5 won, or 1.83% from Wednesday and the highest level since 11 February 2009.
The Taiwan dollar strengthened as it closed the trading at NT$ 33.924 up by NT$ 0.023 from Wednesday’s close of NT$34.156
Coming back in equities, in Japan, the benchmark Nikkei 225 snapped its four days winning streak, as Fed’s move caused the Japanese yen to strengthen against the US dollar, weighing the exporters down. Despite of opening higher, the Nikkei 225 Stock Average index tumbled 26.21 points, or 0.3%, to 7,945.96, while the broader Topix edged up 0.1 points, or 0.04%, to 765. The Nikkei has climbed 5% this week, while the Topix jumped 5.7%, its best performance in 2009. Central Bank’s interest rate decision of keeping the rate constant fell to cherish the stock markets as market ended the holiday-shortened week on a negative note. Japan’s markets will be closed tomorrow for a holiday.
On the economic front, Japan’s central bank left its super-low interest rates unchanged for a third straight month and announced it would pump more cash into the financial system to tackle a severe recession. The Bank of Japan said it will increase bond purchases from banks and hopes for the flow of money coming into the global financial system after the US Federal Reserve decision to add another $US1.15 trillion ($A1.74 trillion) to its efforts to ignite an economic recovery.
In Mainland China, the picture was exactly opposite as the markets continued to end finish higher for the fourth consecutive session, led by the coal producers and property developers. Tracking the positive Wall Street cues the Chinese market opened the day with positive sentiments.
The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, surged 42.03 points, or 1.9%, to 2,265.75. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange added 1.85%, or 156.51 points, to 8,622.47.
On the economic front, China's holdings of US Treasury bonds hit US$739.6 billion by the end of January, US$12.2 billion more than that of a month ago. According to the latest International Capital Report by the US Treasury Department the increase was the slightest since June 2008, and it is expected that China, the largest creditor of the US government succeeded by Japan, will continue to slow its purchase of U.S. bonds in the future due to the plunging trade surplus and increasing concerns over investment security.
In Hong Kong, the stock markets followed their Chinese counterparts by ending the day slightly higher. The benchmark Hang Seng Index opened 88 points higher at 13,205. After touching the intraday low of 12,947.90 points, Hang Seng Index climbed 13.75 points or 0.1% to close at 13.130.92. The Hang Seng China Enterprise Index, which tracks the overall performance of 43 Chinese mainland state-owned enterprises on the Hong Kong Stock Exchange, edged up 98.91 points or 1.3% to 7,731.41 points.
In Australia, the stock markets closed the day on a successful note as strong gains in banks offset a drop in Telstra to a record low on a fresh battle with the competition watchdog. Towards its closing, the benchmark S&P/ASX200 index was up 1%, or 33.9 points, at 3480.2 after rising as much as 1.6% this morning to briefly pass the 3500 barrier. The broad-market All Ordinaries index was up 0.9%, or 30.60 points, at 3416.8.
Though market showed some resilience, there was lot of upheaval on the economic front as housing starts slumped to their lowest level in almost eight years in the December quarter as potential home owners were sidelined by worries about the economy.
According to the data released by the Australian Bureau of Statistics (ABS), the number of dwelling commencements fell by 9.9% to 32,637 units, seasonally adjusted, in the December quarter. Quarterly housing starts had not been this low since June 2001. In the year to December, total housing starts dropped by 19.5%.
On the other hand, the Reserve Bank of Australia expects the local economy to remain weak in 2009, but is confidant policy makers have the necessary tools to support the nation during the global financial crisis. RBA assistant governor of economics Malcolm Edey says Australia is being affected by the "very severe" crisis and sharp downturn in global demand and activity.
In New Zealand, the stock market followed the regional trend by ending its session on a higher for the fifth consecutive session. New Zealand's benchmark NZX-50 index closed up 26.88 points or 1.03% to 2633.21, following a 41.6-point rise on Wednesday.
Bucking the regional trend the stock market in South Korea closed the day slightly higher as institutional selling overshadowed overnight gains in U.S. markets. The benchmark Korea Composite Stock Price Index fell 8.14 points, or 0.7 percent, to 1,161.81. The South Korean won closed at 1,396 won to the dollar, up 25.5 won from Wednesday's close, on expectations that South Korea may post a large trade surplus this month.
On the economic front, South Korea's jobless rate jumped to a four-year high in February as companies scaled back recruitment in the face of deepening recession woes. According to the report by the National Statistical Office, the unemployment rate was 3.9% in February 2009, up from the previous month's 3.6%.
In Taiwan, stock markets snapped its four days of winning streak by ending the day in negative terrain, as investors locked in profits from recent advances on the market. A sharp rise in the Taiwan dollar also pressured exporters that showed some correction during the day.
The main Taiex share index showed some slight correction by closing marginally lower by 11.61 points or 0.23% at 5,035.93, receding from yesterday’s 5 month high when market closed the day at 5047.54; the highest closing since 16 October 2008 when market closed the day at 5075.97. However during intra day movement the market successfully breached this five month as it moved in the wide range of 5125.40 –5035.82.
In Philippines, stock market continued to take an uphill for the second consecutive day, assisted by the gains in Wall Street overnight. The benchmark index PSEi escalated 0.56% or 9.98 points to 1,780.26, while the All Shares index climbed 0.46% or 5.41 points to 1,176.68.
In India, it was a day of immense volatility with alternate bouts of buying and selling. The key benchmark indices ended slightly higher after recovering sharply in mid-afternoon trade. Expectations of a further cut in policy rates by the Reserve Bank of India and firm European markets triggered a late recovery. The BSE 30-share Sensex was up 25.07 points, or 0.28%, to 9,001.75. The S&P CNX Nifty was up 12.45 points or 0.45% to 2,807.15.
Elsewhere, Malaysia's Kula Lumpur Composite index was up 0.50% or 4.22 points to 852.18, while Indonesia’s Jakarta composite increased by 18.77 points or 1.42% to 1,341.60. In Thailand, the Thai Stock exchange added 1.52 points or 0.36% to 427.72.
In other regional markets, stocks in Europe advanced on Thursday, in the first opportunity to react to the news the Federal Reserve was following in the Bank of England's footsteps with the direct purchase of $300 billion in long-term Treasury bonds.
By region, the FTSE 100 was down 0.1% to 3,801.24; with HSBC Holdings dragging the index lower with a 3% fall a day ahead of the trading of its discounted share offer. The German DAX 30 rose 1.2% to 4,044.46 and the French CAC 40 added 1.4% to 2,797.90.
Godrej Consumer Products, Tulip Telecom, GMR Infrastructure and Gujarat Mineral Development Corporation are among the other gainers.
Mumbai-based real estate firm Akruti City soared 10.70% to Rs 2,227.50. It topped the gainer's in BSE's 'A' group. The stock is up 159.61% from a recent low of Rs 858 on 2 March 2009.
The Akruti stock has been consistently outperforming the real estate sector as well as major equity indices during a period marked by sliding real estate prices and a slowing economy. The stock market regulator Securities & Exchange Board of India, BSE, and NSE, have reportedly initiated a probe into the sharp surge in the Akruti City stock price. The rise has more to do with speculation because of low free float than with the company's fundamentals.
FMCG firm Godrej Consumer Products moved up 7.80% to Rs 121. It was the second biggest gainer in 'A' group.
Delhi-based Tulip Telecom jumped 7.31% to Rs 418.25. It was the third biggest gainer in 'A' group. The stock had risen 30.74% to Rs 389.75 yesterday, 18 March 2009.
Earlier in February this year, the company had repurchased foreign currency convertible bonds (FCCBs) aggregating $30.50 million. The buyback of FCCBs will help reduce liabilities of the company. It will also ease concerns about the impact of foreign exchange fluctuations in the profit & loss account, to the extent of the reduction of the FCCBs.
Infrastructure developer GMR Infrastructure 7.27% to Rs 86.30. It was the fourth biggest gainer in 'A' group.
Gujarat based public sector mining major Gujarat Mineral Development Corporation (GMDC) rose 7.18% to Rs 38.80. It was the fifth biggest gainer in 'A' group. The company is reportedly eying a 26% stake in as many as 14 projects to be set up by leading companies in Gujarat. The company had signed MoUs with these companies during the Vibrant Gujarat Global Investors' Summit 2009.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
19/3/2009 530499 A K CAPITAL SPEED TRADE SECURITIES PVT LTD B 30000 139.67
19/3/2009 530499 A K CAPITAL FIRSTRAND IRELAND PUB LTD S 85000 139.81
19/3/2009 526955 ABL BIOTECHN AXIS BANK LTD. CHENNAI BRANCH S 126557 9.60
19/3/2009 532840 ADVANTA MORGAN STANLEY MAURITIUS COMPANY LIMITED B 85600 449.00
19/3/2009 532840 ADVANTA MORGAN STANLEY INVESTMENTS MAURITIUS LIMITED S 85600 449.00
19/3/2009 532799 AKRUTI CITY OPG SECURITIES P LTD B 671572 2172.30
19/3/2009 532799 AKRUTI CITY OPG SECURITIES P LTD S 671572 2175.26
19/3/2009 530355 ASIAN OILFIE TCK FINANCE AND LEASING PRIVATE LTD B 96000 30.50
19/3/2009 532674 BANNARI AMMA WEALTH ESCALATOR B 137611 27.00
19/3/2009 590061 BRUSHMAN IND IVORY CONSULTANTS PVT LTD. S 147000 19.15
19/3/2009 530393 DB(INTR) STBR SANJAY VANWARI B 18000 22.95
19/3/2009 530393 DB(INTR) STBR KISHORE VANWARI B 18000 22.95
19/3/2009 532876 EVERONN SYS MBL AND COMPANY LIMITED B 98596 147.95
19/3/2009 532876 EVERONN SYS OPG SECURITIES P LTD B 214106 144.85
19/3/2009 532876 EVERONN SYS MBL AND COMPANY LIMITED S 98596 148.39
19/3/2009 532876 EVERONN SYS OPG SECURITIES P LTD S 214106 145.03
19/3/2009 532022 FILAT FASH RAJASTHAN CYLINDERS AND CONTAINERS LTD S 37000 70.50
19/3/2009 531744 GINI SIL MIL HARLALKA DEEPAK B 36500 14.00
19/3/2009 531744 GINI SIL MIL HARLALKA VISHWANATH B 35000 14.00
19/3/2009 531744 GINI SIL MIL GINI TRADERS S 71500 14.00
19/3/2009 500164 GODREJ INDUS BIRLA SUNLIFE INSURANCE COMPANY LIMITED B 2400000 52.50
19/3/2009 500164 GODREJ INDUS QUANTUM INDIA FUND L.P. S 4370107 52.50
19/3/2009 532777 INFO EDGE FIL TRUSTEE COMPANY PVT LTD FIDELITY EQUITY FUND B 146324 435.00
19/3/2009 532777 INFO EDGE CITI GROUP GLOBAL MARKET MAURITIUS LIMITED B 235000 435.00
19/3/2009 532777 INFO EDGE PASSPORT INDIA INVESTMENT MAURITIUS LIMITED S 586797 435.00
19/3/2009 514034 JBF.IND.LTD ABN AMRO BANK N.V. LONDON S 690000 30.05
19/3/2009 531687 KARUTURI GLO MORGAN STANLEY MAURITIUS COMPANY LIMITED B 2619321 8.84
19/3/2009 531687 KARUTURI GLO MORGAN STANLEY INVESTMENTS MAURITIUS LIMITED S 2619321 8.84
19/3/2009 532092 KIRTI FINVES SHREYANS PARAKH B 458607 0.25
19/3/2009 532092 KIRTI FINVES TAPASYA PROJECTS LIMITED S 686525 0.25
19/3/2009 511728 KZLEASING HIMAT P JATANIA B 80000 74.07
19/3/2009 511728 KZLEASING RAMESH G GOKANI B 106742 74.10
19/3/2009 511728 KZLEASING ILA S MEHTA B 61156 73.94
19/3/2009 511728 KZLEASING NAINESH HIMAT JATANIA B 35000 74.20
19/3/2009 511728 KZLEASING HARDIK M. MITHANI B 29999 73.87
19/3/2009 511728 KZLEASING KAMLESH H DAFTARY B 15700 74.00
19/3/2009 511728 KZLEASING YOGESH GIRDHARLAL PANDYA S 73400 74.01
19/3/2009 511728 KZLEASING AMI STOCK SHARE BROKERS PLTD S 50000 74.14
19/3/2009 511728 KZLEASING JIVABHAI S PANCHAMATIA S 34475 73.93
19/3/2009 511728 KZLEASING YOGESH R GOKANI S 35000 73.91
19/3/2009 511728 KZLEASING RISHTI KISHOR POPAT S 25000 74.05
19/3/2009 511728 KZLEASING CHETAN MANSUKHLAL GOKANI S 25000 73.87
19/3/2009 511728 KZLEASING KRISHNABEN B PANCHMATIA S 25000 73.90
19/3/2009 511728 KZLEASING NAINESH HIMAT JATANIA S 35000 74.22
19/3/2009 514242 MH MILLS & I SAURIN JITENDRA SHAH HUF B 240000 4.25
19/3/2009 500304 NIIT LTD SWIFTCURRENT PARTNERS GLOBAL LTD B 2178450 18.05
19/3/2009 500304 NIIT LTD MORGAN STANLEY MAURITIUS COMPANY LIMITED S 2178450 18.05
19/3/2009 531726 PANCH ORGAN KISHORE TURAKHIA B 93500 7.11
19/3/2009 531726 PANCH ORGAN RAJESH TURAKHIA B 84500 7.11
19/3/2009 531726 PANCH ORGAN MAHENDRA TURAKHIA B 72000 7.11
19/3/2009 531726 PANCH ORGAN VISHAL SHAH S 249765 7.11
19/3/2009 531746 PRAJAY ENG S MORGAN STANLEY MAURITIUS COMPANY LIMITED B 239996 13.30
19/3/2009 531746 PRAJAY ENG S MORGAN STANLEY INVESTMENTS MAURITIUS LIMITED S 239996 13.30
19/3/2009 503873 PRIYA SPIN L EUREKA STOCK AND SHARE BROKING SERVICES LIMITED B 60000 5.00
19/3/2009 503873 PRIYA SPIN L SOMANI SONS PRIVATE LIMITED S 59677 4.99
19/3/2009 531898 SANGUINE MD PRASHANT MAHADEV KAMBLE B 197593 2.40
19/3/2009 512048 SPLASH MEDIA TAPAN GANGWAL S 13661 104.09
19/3/2009 519228 TEMPT.FOODS MARYADA BARTER PVT LTD. B 900000 19.70
19/3/2009 519228 TEMPT.FOODS DKG SECURITIES PVT LTD B 720500 20.63
19/3/2009 519228 TEMPT.FOODS INDIABULLS FINANCIAL SERVICES LTD S 3367441 20.14
19/3/2009 511431 VAKRAN SOFTW MORGAN STANLEY MAURITIUS COMPANY LIMITED B 452815 24.05
19/3/2009 511431 VAKRAN SOFTW MORGAN STANLEY INVESTMENTS MAURITIUS LIMITED S 452815 24.05
19/3/2009 526953 VENUS REMEDS MORGAN STANLEY MAURITIUS COMPANY LIMITED B 100000 160.05
19/3/2009 526953 VENUS REMEDS MORGAN STANLEY INVESTMENTS MAURITIUS LIMITED S 100000 160.05
19/3/2009 531249 WELL PACK PA KAMOD DEVI BACHHAWAT S 34000 110.65
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
19-MAR-2009,AKRUTI,Akruti City Limited,C D INTEGRATED SERVICES LTD,BUY,576615,2182.43,-
19-MAR-2009,AKRUTI,Akruti City Limited,P R B SECURITIES PRIVATE LTD,BUY,369913,2157.49,-
19-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,112035,1928.70,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PVT LTD,BUY,137772,145.57,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,C D INTEGRATED SERVICES LTD,BUY,164667,148.07,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,GENUINE STOCK BROKERS PVT LTD,BUY,233463,145.45,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,BUY,80477,147.46,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,OM INVESTMENTS,BUY,380058,146.06,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,TRANSGLOBAL SECURITIES LTD.,BUY,174921,146.57,-
19-MAR-2009,GLORY,Glory Polyfilms Limited,SACHINPRABHAKARPAWAR,BUY,150000,56.15,-
19-MAR-2009,GLORY,Glory Polyfilms Limited,SHILPIAMRITLALKHIMANI,BUY,150000,56.15,-
19-MAR-2009,GLORY,Glory Polyfilms Limited,YOGESH PRAKASH KELA,BUY,130000,56.15,-
19-MAR-2009,IBREALEST,Indiabulls Real Estate Li,COPTHALL MAURITIUS INVESTMENT LTD,BUY,2083198,97.07,-
19-MAR-2009,PANACEABIO,Panacea Biotec Ltd.,FIRST LUCRE PARTNERS HIP CO,BUY,350632,53.00,-
19-MAR-2009,SREINTFIN,SREI Infrastructure Finan,ADHYATMA COMMERCIAL PRIVATE LIMITED,BUY,1282000,28.66,-
19-MAR-2009,AKRUTI,Akruti City Limited,C D INTEGRATED SERVICES LTD,SELL,576615,2184.35,-
19-MAR-2009,AKRUTI,Akruti City Limited,P R B SECURITIES PRIVATE LTD,SELL,371713,2164.30,-
19-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,112035,1929.81,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PVT LTD,SELL,137772,145.55,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,BIRLA MUTUAL FUND,SELL,95537,148.95,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,C D INTEGRATED SERVICES LTD,SELL,164667,148.12,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,GENUINE STOCK BROKERS PVT LTD,SELL,233463,145.60,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,SELL,80477,147.26,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,OM INVESTMENTS,SELL,380058,146.25,-
19-MAR-2009,EVERONN,Everonn Systems India Lim,TRANSGLOBAL SECURITIES LTD.,SELL,174921,146.55,-
19-MAR-2009,GLORY,Glory Polyfilms Limited,UMESH PRAKASH KELA,SELL,400000,56.15,-
19-MAR-2009,HBLPOWER,HBL Power Systems Limited,BLACKSTONE ASIA ADVISORS LLC. DEUTSCHE BANK,SELL,250000,98.42,-
19-MAR-2009,SREINTFIN,SREI Infrastructure Finan,CALLIDORA MERCANTILES PRIVATE LIMITED,SELL,1270000,28.66,-
Indian market today managed to end the volatile session just above the dotted line. Market recovered after touching the lowest in afternoon trade. Benchmark indices were mixed on news that the inflation fell to a historic lows. India’s inflation for the week ended March 7, has dropped to a historic low of 0.44% from 2.43% in the previous week. This is the lowest inflation rate since annual numbers in the current index started in 1995. Stocks exhibited volatility during the trading as were hovering between positive and negative terrain on fears of crises in Indian economy and on lower US index futures.
The market opened on firm note tracking positive cues form the US markets. The US stock markets on Wednesday continued its upward rally as investors were cheered by the Federal Reserve’s plan to buy nearly $1.25 trillion bonds. Further, stocks turned volatile and pared off gains on some profit booking. Additional, the all time low inflation data has caused concerns of deflation in near future. Instable market once again reported recovery during final trading hours backed by firm European markets. At the end, market pulled down its shutters in green on buying in key stocks. BSE Sensex ended around 9,000 level and NSE Nifty around 2,800 level. From the sectoral front, buying sentiments was emerged mainly in Reality, IT, Teck, Oil & Gas, Bank and Metal stocks. Further, BSE Mid Cap and Small Cap stocks were also in buyer’s radar. However, Capital Goods, Auto, FMGC and Consumer Durables stocks remained out of favor.
Among the Sensex pack 19 stocks ended in green territory, 10 in red and 1 remained unchanged. The market breadth indicating the overall health of the market remained strong as 1354 stocks closed in green while 1105 stocks closed in red and 102 stocks remained unchanged in BSE.
The BSE Sensex closed marginally higher by 25.07 points at 9,001.75 and NSE Nifty ended up by 12.45 points at 2,807.15. BSE Mid Caps and BSE Small Caps ended with gains of 14.22 and 33.05 points at 2,774.12 and 3,097.53 respectively. The BSE Sensex touched intraday high of 9,086.77 and intraday low of 8,900.39.
Gainers from the BSE Sensex pack are Sterlite Industries (4.18%), HDFC (2.53%), Sun Pharma (2.33%), Maruti Suzuki (1.70%), TCS Ltd (1.62%), NTPC Ltd (1.57%), Infosys Tech (1.44%), JP Associates (1.26%), DLF Ltd (1.11%), Reliance (1%) and ONGC Ltd (0.97%).
Losers from the BSE Sensex pack are L&T Ltd (4.14%), BHEL (3.15%), Tata Motors (2.75%), RCom (2.03%), M&M Ltd (1.89%), Tata Steel (1.76%) and HDFC Bank (1.78%).
India’s inflation has fallen to a historic low of 0.44% for the week ended March 7 from 2.43% in the previous week. This is the lowest inflation rate since annual numbers in the current index started in 1995. This was mainly due to the base effect and also due to the economic slowdown. Wholesale Price Index for all commodities was down 0.4% at 226.7 in the week under consideration compared to 227.7 in the preceding week. It was the lowest annual reading in the history of the current series.
On the global markets front the Asian markets which opened before the Indian market, ended mostly higher on U.S. Federal Reserve''s $1.2 trillion spending plan that raised optimism to bring a quicker end to the worst global slowdown in decades. Shanghai Composite, Hang Seng and Straits Times index ended higher by 42.03, 13.75 and 8.92 points at 2,265.76, 13,130.92 and 1,584.86 respectively. However, Nikkei 225 and Seoul Composite lost 26.21 and 8.14 points at 7,945.96 and 1,161.81 respectively.
European markets which opened after the Indian market are trading in green. In Frankfurt the DAX index is trading up by 36.42 points at 4,032.74 and in London FTSE 100 is trading higher by 31.17 points at 3,836.16.
The BSE Reality ended up by (2.48%) or 39.22 points at 1,596.27 on hopes lower rates will spur housing demand. Gainers are Akruti City (10.70%), Indiabull Real (3.81%), Mahindra Life (1.76%), Penland Ltd (1.75%) and Unitech Ltd (1.31%).
The BSE IT stocks also witnessed rally as advanced by (1.58%) or 34.47 points to close at 2,219.23 on hopes of revival in the US economy, the biggest market for IT firms. Major gainers are NIIT Ltd (15.86%), Oracle Fin (6.38%), Aptech Ltd (5.78%), Rolta India (3.66%) and Patni Computer (3.42%).
The BSE Teck index closed with increase of (0.83%) or 14.41 points at 1,745.80. Scrips that gained are NIIT Ltd (15.86%), Him Futr Com (9.96%), Oracle Fin (6.38%), Aptech Ltd (5.78%) and UTV Software (3.89%).
The BSE Oil & Gas index ended higher by (0.74%) or 46.73 points to close at 6,355.25. Aban Offshore (4.48%), Cairn Ind (1.09%), Reliance (1%), ONGC Ltd (0.97%) and Reliance Pet (0.30%) ended in positive territory.
The BSE Capital Goods index tumbled (2.62%) or 159.43 points to close at 5,924.97. Main losers are L&T Ltd (4.14%), BHEL (3.15%), Crompton Greaves (2.46%), Usha Martin (2.21%) and Gammon Indi (1.64%).
The BSE Auto index lost (0.71%) or 20.47 points to close at 2,870.08 on fears that slow consumer spending may Bajaj Auto (2.44%) and Ashok Leyland (2.21%).
UTV Software Communications surged 3.89% on reports that the UTV group is planning to raise Rs. 100-125 crore from a strategic stake sale of its English news channel UTVi.
Satyam Computer gained 1.03% on report that the Company received a fresh order from a food company based in Europe. In the latest development, the Board has placed norms for the winner of the bid, including no sale of the company''s assets for 3 years, not to pledge them to raise debt, no sudden lay-off of employees and should hold enough cash to infuse immediately,
Cairn India inclined 1.05% as crude oil prices rose more than 2% in Asian electronic trading on Thursday, 19 March 2009. Rise in crude oil prices would result in higher realizations from crude sales for the oil exploration firms.
Ramsarup Industries ended up by 9.84%. The Company has bagged orders aggregating Rs 164 crores under RGGVY Electrification Work from West Bengal State Electricity Distribution Company Ltd.
It was a day of immense volatility with alternate bouts of buying and selling. The barometer index BSE Sensex ended slightly higher after recovering sharply in mid-afternoon trade. Expectations of a further cut in policy rates by the Reserve Bank of India and firm European markets triggered a late recovery. Volatility in index heavyweight Reliance Industries (RIL) caused volatility in key benchmark indices today. Banking stocks, too, were choppy. IT and realty stocks rose.
Shares of some textile, gems and jewellery and leather exporters rose after Trade Secretary Gopal Pillai said exports of textiles, leather and gems and jewellery, which contribute heavily in India's total export basket, were showing signs of a pick up.
The BSE 30-share Sensex rose 25.07 points, or 0.28%, off close to 100 points from the day's low but down close to 85 points from the day's high. The Sensex flirted with the 9,000 level throughout the day.
The market surged at the onset of the trading session on mostly higher Asian stocks, increase in risk appetite globally, hopes of a recovery of the global economy, a strong rebound in rupee against the dollar and on buying by foreign funds. The barometer index BSE Sensex moved past the psychological 9,000 level. However, the market soon came off the day's high on lingering concerns about the slowing Indian economy and on lower US index futures. It slipped into the red later as some Asian stocks slipped into the red.
The Sensex moved into the green from red after the inflation data hit the market in early afternoon trade. It later recovered again after slumping to the day's low in afternoon trade. However, the recovery proved short-lived and the market weakened later. The Sensex fell below the psychological 9,000 level. It cut losses trade to trade in green for a brief period. It fell once again to hit day's low before recovering in mid-afternoon trade regaining 9,000 level. The market pared gains in late trade with the Sensex once again falling below the 9,000 mark
Inflation based on the wholesale price index (WPI) rose 0.44% in the year through 7 March 2009, a record low for the current series data released by the government today showed. The rate of growth in inflation was much lower than previous week's annual rise of 2.43%.
A sharp fall in inflation in the past few months has provided room for the Reserve Bank of India (RBI) to cut policy rates. Japanese financial services firm Nomura expects a 100 basis points reduction in key short-term interest rates by RBI in April-June 2009 quarter.
However, the central bank would be in dilemma over further rate cuts as other gauges of inflation that it takes into account when deciding policy are at a decade high. The inflation rate as measured by consumer price index for industrial workers, which seeks to represent the impact of retail prices on the country's workforce, had risen to 10.45% in January 2009, compared to 9.7% in the previous month.
Similarly, consumer price index for urban non-manual employees suggests that the annual rate of inflation in 59 Indian cities had been 9.8% in December 2008, the latest month for which data is available.
Nonetheless, a rally in rupee against the dollar has helped reduce concerns about the increase in costs of imports for Indian firms arising from a recent steep slide. However, volatility of the currency remains a cause for concern. Early this month, the rupee had tumbled to a record low below 52 a dollar.
The Indian rupee strengthened past 51 per dollar for the first time in three weeks on Thursday, boosted by firmer Asian stock markets and a weakening dollar. The partially convertible unit was at 50.32, sharply higher than Wednesday's close of 51.29/30.
The increase in global risk appetite in the past few days is a good news for Indian Inc which is facing liquidity crunch as Indian banks have become risk averse on fears of rising defaults in a slowing economy and due to the global financial sector crisis. Fund crunch for the corporate sector has, in turn, accelerated slowdown in the economy.
Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.
Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.
Risk appetite rose globally following the latest aggressive move by the US Federal Reserve. The Fed on Wednesday said it would buy $300 billion in longer-dated Treasurys over the next six months, along with another $850 billion in mortgage-related debt, in a bid to improve credit markets and pull the US economy out of its hole.
The Fed kept the benchmark interest rates unchanged at between zero and 0.25%.
European shares rose on Thursday, tracking gains on Wall Street after the Federal Reserve said it would buy long-term Treasury bonds for the first time in four decades to try and revive the economy. Key benchmark indices in France, Germany and UK were up between 1.75% to 2.3%.
Asian markets were mixed in contrast to a firm start on lower US index futures. Key benchmark indices in Japan, Taiwan and South Korea were down by between 0.23% to 0.7%. Key benchmark indices in Singapore, Hong Kong and China were up by between 0.1% to 1.89%.
Meanwhile, Oracle Corp jumped 7.4% in after-hours trade in the US after the company said it would pay its first-ever dividend. Its fiscal third-quarter net income eased 0.8%. Yet, trading in US index futures indicating that the Dow could slide 36 points at the opening bell on Thursday, 19 March 2009.
Closer home, concerns about the slowing Indian economy remain. Indian commercial banks have become more averse to extending loans, further throttling the economic growth.
On the flip side, foreign institutional investors (FIIs) are now in buying mode which follows easing of FII selling vigour in the past few days. FIIs bought shares worth a net Rs 353.70 crore on Wednesday, 18 March 2008. FIIs can also take solace in the recent strong rebound in the rupee. A recent sharp slide in the rupee to a record low had resulted in a depreciation in the value of their equity portfolio to the extent of the fall in rupee.
Domestic institutional investors (DIIs) bought shares worth a net Rs 526.34 crore on Wednesday as per the provisional data. DIIs have been absorbing heavy selling by foreign funds in calendar year 2009.
However, the upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009.
Meanwhile, FIIs have responded enthusiastically to the government's decision to increase the cumulative investment limit in corporate debt from $ 6 billion to $ 15 billion. In an open bidding held at the National Stock Exchange (NSE) recently, a total of 24 bidders were allocated investments of Rs 29350 crore, the highest ever investment allocation by FIIs in India. In comparison, the net investment of FIIs in 2008 was only Rs 12069 crore. Since January 2009, FII's net investment in debt instrument has fallen by Rs 634 crore.
As per the Securities and Exchange Board of India (Sebi) data, $8 billion (Rs 41,000 crore) was available for allocation to FIIs and their sub-accounts in an open bidding platform.
Attractive interest rates have lured foreign funds to Indian debt market. For instance, corporate debt returns in the US are 1-1.5%, whereas in India, the rates are as high as 8-9%. Bonds floated by state-run firms fetch yields in the range of 9.30%, which are about 300 basis points higher than 10-year G-Sec yields. As per reports, FIIs are likely to invest in attractive PSU bonds floated by quasi-government entities like Power Finance Corporation and Rural Electrification Corporation.
Meanwhile, foreign direct investment (FDI) in India in January 2009 was up 55% at $2.73 billion from $1.76 billion for the same month in the preceding year. Up to September this fiscal year, the monthly inflows were in excess of $2 billion. However, the following three months witnessed a sharp dip in the overseas investment, due to the backdrop of the global financial crisis. The January figures bring a renewed hope that India is back on the radar of global investors.
The BSE 30-share Sensex was up 25.07 points, or 0.28%, to 9,001.75, its highest closing since 19 February 2009. At the day's high of 9,086.77, the Sensex gained 110.09 points in early trade. At the day's low of 8,900.39, the Sensex fell 76.29 points in mid-afternoon trade.
The S&P CNX Nifty was up 12.45 points or 0.45% to 2,807.15.
From the recent low of 8,160.40 on 9 March 2009, the Sensex has risen 841.35 points or 10.31% in six trading sessions. Yet, the Sensex is down 645.56 points or 6.69% in calendar 2009 from its close of 9,647.31 on 31 December 2008. The S&P CNX Nifty is down 152 points or 5.13% in calendar 2009 from its close of 2,959.15 on 31 December 2008.
The BSE clocked a turnover of Rs 3,967 crore, lower than Rs 4,148.70 crore on Wednesday, 18 March 2009.
Nifty March 2009 futures were at 2801.55, at a discount of 5.60 points as compared to the spot closing of 2807.15. Turnover in NSE's futures & options (F&O) segment was Rs 48,752.20 crore, sharply lower than Rs 54,871.64 crore on Wednesday, 18 March 2009.
The BSE Mid-Cap index was up 0.52% and BSE Small-Cap index rose 1.08%. Both the indices outperformed the Sensex.
The BSE Realty index (up 2.48%), the BSE IT index (up 1.58%), the BSE TECk index (up 0.83%), the BSE Oil & Gas index (up 0.74%), the BSE Bankex (up 0.61%), the BSE Metal index (up 0.59%) outperformed the Sensex.
The BSE Capital Goods index (down 2.62%), the BSE Auto index (down 0.71%), the BSE FMCG index (down 0.28%), the BSE Consumer Durables index (down 0.19%), the BSE Power index (down 0.08%), the BSE Healthcare index (up 0.03%), the BSE PSU index (up 0.12%) underperfomed the Sensex.
The market breadth indicating the overall health of the market was positive on BSE with 1,335 shares advancing as compared with 1,128 that declined. A total of 62 shares remained unchanged. The market breadth had turned even in afternoon trade from a strong breadth earlier in the day.
From the 30 share Sensex pack, 19 stocks rose while rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) was volatile, moving between positive and negative zone. It provisionally rose 1% to Rs 1,344.65. The company is likely to start production of gas from KG basin, off the east coast, this month. RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.
India's largest oil exploration firm by revenue ONGC rose 0.97% as crude oil prices rose more than 2% in Asian electronic trading on Thursday, 19 March 2009. Rise in crude oil prices would result in higher realizations from crude sales for the oil exploration firms.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF, Indiabulls Real Estate and Unitech rose by between 1.11% to 3.81%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Arihant Foundations & Housing rose 4.47% after one of the promoter group companies hiked stake in the firm.
Rate sensitive banking shares rose in choppy trade on hopes a further fall in interest rates may boost lending growth. The stocks were volatile. India's largest private sector bank by net profit ICICI Bank rose 0.87% to Rs 338.10, off the day's low of Rs 327.60. Its American depository receipts (ADR) jumped 6.19% on Wednesday, 18 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.
India's largest bank in terms of assets and branch network State Bank of India rose 0.75% to Rs 968.20, off the day's low of Rs 936.40. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.
India's second largest private sector bank by operating income HDFC Bank fell 1.48% to Rs 830.20, off the day's low of Rs 819.40. Its ADR rose 4.77% on Wednesday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.
Bond prices surged in early trade today ahead of the central bank's purchase of Rs 10000-crore of existing debt from investors in an effort to cap yields. The yield on the 6.05 bond maturing in February 2019 dropped 14 basis points to 6.3% as of 9:13 IST in Mumbai. Bond yields and bond prices are inversely related.
Outsourcing focussed IT firms gained on hopes of revival in the US economy, the biggest market for IT firms. A surprise move by the Federal Reserve to buy government bonds revived hopes the battered US economy could soon begin its recovery.
India's largest software services exporter by sales TCS rose 1.62% to Rs 514.80 off the day's high of Rs 517.95. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008. The company during trading hours on Monday 16 March 2009 said its promoter Tata Sons has pledged more than 12.06 crore shares or 12.33% of the equity capital of the firm.
India's fifth largest IT major by sales HCL Technologies rose 2% extending recent gains on securing a contract worth $350 million on Monday, 16 March 2009.
India's third largest software services exporter, Wipro rose 0.89% as its ADR rose 5.05% on Wednesday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).
India's second largest software services exporter Infosys Technologies rose 1.44% as its ADR gained 3.31% on Wednesday. Infosys chief and co-founder Mr S Gopalakrishnan said on Sunday, 15 March 2009, the Indian IT industry would tide over the current downturn and might surpass the US in terms of having the largest number of IT professionals in the world in the next three years.
MindTree surged 32.58% on reports the company will restructure its business into five independent business units.
However, a stronger rupee may cap upside in IT stocks in the near future. The Indian rupee strengthened past 51 per dollar for the first time in three weeks on Thursday, boosted by firmer Asian stock markets and a weakening dollar. A stronger rupee affects operating margins of IT firms negatively as they earn most of their revenues from exports.
Metal stocks gained on jump in metal prices on London Metal Exchange. Steel Authority of India, Hindustan Zinc, Sterlite Industries and Hindalco Industries rose by between 0.01% to 2.91%. But Tata Steel and National Aluminum Company fell by between 1.76% to 2.32%.
Rate sensitive auto shares fell on worries a sluggish consumer spending may dent demand for cars, motorcycles and scooters. Profit taking was another reason for slide in auto stocks after recent strong gains. Mahindra & Mahindra and Hero Honda Motors fell by between 0.65% to 1.89%. But India's largest car maker by sales Maruti Suzuki India rose 1.7%.
India's largest commercial vehicle maker by sales Tata Motors fell 2.75% after a recent strong rally in the stock ahead of the launch of its Rs 1-lakh car Nano on 23 March 2009. Tata Motors paid no advance tax in Q4 March 2009 compared to Rs 75 crore in March 2008.
Some FMCG stocks fell on profit taking after recent gains triggered by expectations of better Q4 March 2008 results following reports of higher advance tax payment by these firms. Nestle India, Dabur India, Britannia Industries, Marico and United Spirits fell by between 0.2% to 3.98%. India's largest FMCG firm by sales Hindustan Unilever fell 1.03% extending recent fall even as the company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.
Some healthcare stocks fell after recent gains triggered by expectations of better Q4 March 2008 results on reports of higher advance tax payment by these firms. Cipla, Wochardt, Biocon, Glenmark Pharmaceuticals, Lupin fell by between 0.03% to 3.61%.
Areva T & D India gained 0.76% on bagging an order worth 33 million euros.
Cals Refineries clocked the highest volume of 2.01 crore on BSE. Suzlon Energy (96.87 lakh shares), Unitech (84.65 lakh shares), Firstsource Solutions (81.46 lakh shares) and NIIT (72.01 lakh shares) were the other volume toppers in that order.
Akruti City clocked the highest turnover of Rs 994.03 crore on BSE. Reliance Industries (Rs 192.40 crore), ICICI Bank (Rs 169.95 crore), Educomp Solutions (Rs 144.15 crore) and HDFC (Rs 113.1 crore) were the other turnover toppers in that order.
Today domestic markets are likely to open positive as US markets have once again closed with phenomenal gains on the back of latest policy statement of the FOMC. IBM in talks to buy Sun Microsystems has been wild fire news across the world. The FOMC has kept its fed rate unchanged at 0 - 0.25% and further it is buying treasuries to a tune of $300 billion to keep its balance sheet heavy. This will probably influence the yield of the bonds as well. The other Asian markets are also trading in the northward direction showing signs of positive sentiments. On the domestic front one could once again witness some trend happening across broader level along with the profit booking pressures.
On Wednesday, the domestic markets opened with phenomenal positive gap and managed to sustain the gain till the end. The strong positive cues from the US, Asian and Other European markets helped the domestic investors gain momentum. The day’s trade witnessed blistering buying interest across broader level, however towards the end the frontline stocks pared off some gains due to profit booking pressure. FMCG was the only laggard in the rally whereas sectors like Realty, Metal, CG and Bankex gained by 7.65%, 3.47%, 3.18% and 2.63% respectively. During the session we expect the markets to be trading positive with mild volatility.
The BSE Sensex closed high by 112.86 points at 8,976.68 and NSE Nifty ended high by 37.25 points at 2,794.70. BSE Mid Caps and Small Caps ended with gains of 63.55 points and 54.17 points at 2,759.90 and 3,064.48 respectively. The BSE Sensex touched intraday high of 9,120.46 and intraday low of 8,951.32.
On Wednesday, the US stock markets closed with phenomenal gains. IBM in talks to buy Sun Microsystems has been wild fire news across the world which shows consolidation in the IT sphere. On the other hand the FOMC is maintaining a target fed funds lending rate within the range 0.00% to 0.25%, as predicted. Further it will bolster its balance sheet by buying up to $300 billion of Treasuries during the next six months. The 10-year Note surged on the news; it finished almost 4 points higher, pushing its yield down to a two-month low of 2.55%. Besides, an additional $100 billion of agency debt will also be purchased this year, bringing the total to $200 billion. The Consumer Price Index for February showed a 0.4% month-over-month increase, which topped the 0.3% increase that was expected. Core CPI for February increased 0.2% month-over-month, which also exceeded the consensus 0.1% increase. US light crude oil for April delivery fell by $0.98 to settle at $48.16 a barrel on the New York Mercantile Exchange. Crude Oil prices managed to recover from the lows of $46.92 per barrel after the Department of Energy reported a larger-than-expected weekly inventory build.
The Dow Jones Industrial Average (DJIA) closed up by 90.88 points at 7,486.58, the NASDAQ Composite (RIXF) index gained 29.11 points to close at 1,491.22 and the S&P 500 (SPX) inclined by 16.27 points to close at 794.22.
Today major stock markets in Asia are trading positive. Shanghai composite is up by 21.75 points at 2,245.48 followed by Hang Seng that is also up by 25.92 points at 13,143.09. Further, South Korea''s Seoul Composite is flat at 1,171.72 and Japan''s Nikkei is also flat at 7,967.09. However, Singapore''s Strait Times is up by 18 points at 1,593.94.
Indian ADRs ended up. In technology sector, Patni Computers ended higher by 4.05% along with Infosys by 3.31%. Further, Wipro gained 5.05 and Satyam closed up by 5.06%. In banking sector ICICI Bank and HDFC Bank gained 6.19% and 4.77 respectively. In telecommunication sector, Tata Communication advanced by 5.21% along with MTNL by 1.96%. Further, Sterlite Industries increased by 4.11%.
On Wednesday, the Indian rupee closed at 51.29/30, 0.35% stronger than its previous close of 51.47/48. On the back of phenomenal trend in the stock markets the rupee gained strength.
On BSE, total number of shares traded were 34.02 Crore and total turnover stood at Rs 3,974.95 Crore. On NSE, total number of shares traded were 70.57 Crore and total turnover was Rs 10,903.28 Crore.
Top traded volumes on NSE Nifty – Suzlon with 43254377, Unitech with 34988893 shares, DLF with 21474898 shares, ICICI Bank with 16522390 shares followed by SAIL with 12662153 shares.
On NSE Future and Options, total number of contracts traded in index futures was 988339 with a total turnover of Rs 13,239.72 Crore. Along with this total number of contracts traded in stock futures were 524671 with a total turnover of Rs 15,116.50 Crore. Total numbers of contracts for index options were 1768930 with a total turnover of Rs 24,886.21 Crore and total numbers of contracts for stock options were 52560 and notional turnover was Rs 1,629.22 Crore.
Today, Nifty would have a support at 2,779 and resistance at 2,839 and BSE Sensex has support at 8,942 and resistance at 9,155.
The market may extend gains on mostly higher Asian stocks, hops of a recovery of the global economy
and on buying by foreign funds. The latest data is expected to a show a further fall in inflation which will keep rate cut expectations intact. However, concerns about the slowing Indian economy and lower US index futures may cap the upside.
Asian shares were mostly higher with financial stocks getting a lift from the Federal Reserve's plan to buy longer-dated US Treasurys. However, exporters hurt by stronger currencies. The Fed said it would buy $300 billion in longer-dated Treasurys over the next six months, along with another $850 billion in mortgage-related debt, in a bid to improve credit markets and pull the US economy out of its hole. The Fed kept the benchmark interest rates unchanged at between zero and 0.25%.
There was some positive news after-hours in the US, too, with Oracle Corp rising 7.4%. Its fiscal third-quarter net income eased 0.8% but it said it would pay its first-ever dividend. Yet, trading in US index futures indicated that the Dow could slide 54 points at the opening bell on Thursday, 19 March 2009.
Closer home, the government will today release the inflation data for the year through 7 March 2009. As per the market buzz, inflation based on the wholesale price index could fall to a record low for the current series at below 1%.
However, Indian commercial banks have become more averse to extending loans, further throttling the economic growth.
ONGC–Teri Biotech Ltd, a JV between ONGC and The Energy and Resources Institute, is competing to get a contract worth US$3bn for cleaning the huge oil spill left over from the 1991 Gulf war in Kuwait. (BS)
ONGC Videsh Ltd’s efforts to get back two highly prospective deep-sea oil blocks in Nigeria have hit a roadblock, with a court in the African nation granting an interim injunction on the transaction. (BS)
Reliance Industries plans to sell petrol and diesel from its twin refineries at Jamnagar in Gujarat directly to US. (ET)
TCS will complete the process of bringing on board the campus recruits of 2008-09 by this month-end. (BL)
IDBI Bank will lead a consortium in arranging US$1bn needed to bail out national carrier Air India. (BS)
IOC plans to raise almost Rs150bn from the domestic and external markets to part finance its grassroot refinery complex at Paradip, Orissa. (BL)
Reliance Communications and TTML are ready to offer internet services at a speed of up to 3.1 Mbps. (FE)
The Government is believed to have put on hold Unitech’s plan to raise Rs50bn through a GDR issue. (FE)
IOC may reply in favour of Reliance Industries’ proposal for forming a JV for reviving its 1,432 petrol pumps closed last year. (FE)
Coal India Ltd expects to complete the tendering process for revival and development of the abandoned coal mines, having reserves of ~1.6bn tons, by the end of 2009-10. (BS)
The eastern zone of Axis Bank, comprising West Bengal, entire North-East, Bihar, Jharkhand and parts of Chhattisgarh, would curtail its personal loan portfolio following an increase in delinquencies. (BL)
BEML has signed a MoA with NFM Technologies, France, for the manufacture of tunnel boring machines in India. (BL)
Telecom infrastructure companies including Acme, GTL Infra, Spanco and KEC have emerged as the lowest bidders for BSNL’s project to roll out passive cellular infrastructure across the country. (BL)
BSNL and MTNL have told the government that it will not stop offering 3G services even as security agencies have raised concerns about lack of adequate monitoring facility. (BL)
Essar Shipping has chalked out plans to expand its operations with an investment of over US$1bn in a couple of years. (ET)
Ashok Leyland plans to set up a captive vehicle financing arm by the middle of FY10. (FE)
MindTree Ltd has decided to restructure its business into five dependent business units under different CEOs. (ET)
Tata Teleservices is expected to close this fiscal with highest-ever revenues of Rs20bn. (ET)
MMRDA has proposed the cancellation of two major land deals with Jet Airways and Starlite Systems. (ET)
Gati has discontinued the arrangement with Air India for aircraft lease. (FE)
M&M likely to look for PE investment in new ventures. (FE)
BSNL to launch BlackBerry services by next month. (FE)
United Spirits expects to sell 90mn cases by March-end. (FE)
CERC and power traders have differed over procurement of power by distribution companies. (FE)
Future Group has downsized its target for retail expansion for the year to 2.5mn sq ft from 4mn sq ft of space following the economic slowdown. (BL)
UTV group has decided to sell substantial stake in UTVi to a strategic partner to raise Rs1-1.25bn. (BS)
Essar Group company Essar Oilfield Services plans to procure two jack-up rigs for US$440mn. (FE)
Satyam Computers to miss the March 31 deadline for reporting its Q3 FY09 results. (ET)
Kingfisher Airlines is in talks with the GVK-led Mumbai International Airport over repayment of Rs197mn dues for a host of overheads relating to landing, parking, route navigation levy and terminal charges. (BL)
Ramsarup Industries has bagged Rs1.6bn orders for rural electrification in West Bengal. (ET)
iGate Corp. has entered into an alliance with the Tokyo-headquartered CAC Corporation to offer integrated technology and operations services to the latter’s Japanese clients for their global operations, targeting revenue of over US$50mn in three years. (BL)
An IDFC group company is investing Rs3.5bn in Essar Power to par-finance the latter’s ongoing expansion projects. (ET)
Dhoots of the Videocon Group to buy promoter’s stake of 36% in Himachal Futuristic Communications for ~Rs13bn. (ET)
The Russian government is picking up a 20% stake in telecom service provider Sistema-Shyam for ~Rs34.3bn. (ET)
The International Monetary Fund (IMF) projects India’s economy to slow down to 6.25% GDP growth this fiscal and further to 5.25% in 2009-10. (BL)
The government has extended the imports of pulses at zero customs duty by one more year. (BL)
The Government will award three more Ultra Mega Power Projects of 4,000MW each in FY10. (ET)
The Government has scrapped 20% import duty on soya oil to narrow its premium over imported palm oil. (ET)
The Department of Industrial Policy and Promotion is examining a proposal to allow real estate developers to buy-back built-up area sold in software technology parks of India units and lease out the same to other businesses. (ET)
South India tea production seen 35% down in Q1 on drought. (BL)
India’s holdings of the US Government securities rose by US$17.9bn on a year-on-year basis despite a sharp contraction in foreign exchange reserves. (BL)
Net direct tax collections grew at 19% per cent to touch Rs3.1trn till March 18 this year. (BS)
What you don't see with your eyes, don't invent with your mouth.
It may just be a happy coincidence to see markets positive as inflation flirts with the sub-1% mark. That prices of even street snacks are rising is a reality we have to live with in a depressing economy. The inflation figure which will come in around noon is already discounted, and may not have a major bearing on sentiment for long.
The Indian indices may continue their northward movement due to overnight gains in the US market. The market is likely to open flat to slightly positive. Things may turn choppy and rangebound later in the day. Avoid mid-caps and small-caps as the current rally may soon fizzle out.
As expected, the Fed has announced plans to buy up to $300bn in government securities. It will also expand its balance sheet by purchasing up to an additional $750bn of mortgage-backed securities. The key rates have been left unchanged at near zero. However, not all is hunky-dory. The UK’s unemployment has shot up to 2mn mark while the World Bank has cut China’s GDP forecast to 6.5%.
FIIs were net buyers in the cash segment on Wednesday at Rs2.22bn while the local institutions pumped in Rs5.26bn. In the F&O segment, the foreign funds were net buyers at Rs3.8bn. On Tuesday, FIIs were net buyers of Rs4.44bn.
US stocks extended their recent good run, with the key indices rising for sixth of the last seven sessions on Wednesday, after the Federal Reserve said it will try and ease strain in credit markets by buying long-term Treasury bonds and more mortgage-backed securities.
The Dow Jones Industrial Average gained 91 points, or 1.2%, to close at 7486, while the S&P 500 index advanced 16 points or more than 2% to 794.35. The Nasdaq Composite index climbed 29 points or just under 2% to 1,491.22.
After closing at its lowest level in 12 years on March 9, the Dow has climbed more than 14%, and the S&P 500 has gained 17% over the same period.
US stocks were lower throughout the morning but turned sharply higher after the Fed announced its plan to increase liquidity in the credit markets over the next six months.
The Fed said it will buy up to $300 billion in longer-term Treasurys and raise the size of lending programs already aimed at reducing mortgage rates by another $750 billion. The commitment to buy Treasury securities and additional mortgage-related debt should mean lower rates for a variety of business and consumer loans.
Banks will now be able to borrow money more cheaply, leaving more room for a profit. Also, the value of toxic mortgage securities will likely benefit from the Fed's purchases in that market.
While the US economy is likely to remain weak in the near term, the Fed said it expects the government's efforts to stabilize the financial system to contribute to a gradual resumption of sustainable economic growth. As was widely expected, the central bank held interest rates steady near 0%.
The rally continued from Tuesday's gains after the government issued a much stronger-than-expected report on February housing starts and building permits. This, along with an upbeat report on retail sales last week, have raised hopes that certain critical areas of the economy are showing some sings of improvement.
At the same time, shares of Citigroup and other major financial institutions have been rallying after top executives said last week that the banks were profitable in the first two months of the year.
Bank shares have also risen on continued speculation that government regulators will modify mark-to-market accounting rules, which could make it easier for financial institutions to sell illiquid assets weighing down their balance sheets.
The House Financial Services sub-committee met on Wednesday to discuss the government's $170 billion bailout of insurance giant AIG, especially $165 million in bonuses the company was giving out after receiving taxpayer-funded assistance.
Edward Liddy, AIG's CEO told lawmakers that he found the bonuses distasteful, but necessary because of legal obligations and competition. Still, he said he would ask employees who got $100,000 or more to give half back.
AIG has been the target of a public and political outrage over the bonuses. US President Barack Obama pulled up the company on Tuesday, and lawmakers are pursuing ways to block or tax the bonuses.
Dow component IBM is in talks to buy Sun Microsystems for at least $6.5 billion, according to The Wall Street Journal. The deal could create a new powerhouse in the computer server business to challenge the dominant player, Hewlett-Packard.
Sun, which makes the technology platform Java, surged 80% to $9.03 a share. Shares of IBM ended down 1%.
Before the market opened, the government announced an increase in consumer prices for February that was slightly higher than expected. The Bureau of Labor Statistics said the Consumer Price Index (CPI) rose a seasonally adjusted 0.4% in February. The core CPI, excluding volatile food and energy prices, rose 0.2%.
A consensus of economists had forecast an overall increase of 0.3%, with core CPI up 0.1%. In January, CPI was up 0.3% and the core prices were 0.1% higher.
Separately, the Mortgage Bankers Association said mortgage applications surged last week, led by a 30% increase in refinancing activity. The spike comes as rates on home loans fall near historic lows, the MBA said.
Treasurys surged, after the Fed's announcement, lowering the yield on the benchmark 10-year note to 2.51% from 3.01% on Monday.
Lending rates improved. The 3-month Libor rate fell to 1.29% from 1.3% Monday, while the overnight Libor rate was unchanged at 0.31%. Libor is a bank-to-bank lending rate.
In currency trading, the dollar fell sharply against the euro and the pound.
US light crude oil for April delivery fell $1.02 to settle at $48.14 a barrel. Earlier, the government reported that the nation's supplies of gasoline soared last week.
COMEX gold for April delivery fell $27.70 to settle at $889.10 an ounce.
European stocks lost ground, failing to hold early gains in the face of a worrisome rise in UK unemployment and profit booking following last week's rally. The pan-European Dow Jones Stoxx 600 index finished down 0.8% to 170.76.
The UK's FTSE 100 index fell, hit by news that unemployment in the UK topped two million for the first time in a decade. The London benchmark eventually closed down 1.4% to 3,804.99.
The French CAC 40 index lost 0.3% to 2,760.34, but Germany's DAX 30 index bucked the trend, rising 0.2% to 3,996.32.
Markets resumed its uptrend after a short breather on Tuesday. Majority of the gains were on the back of global cues and short covering. Other than the realty, metal, capital goods and banking stocks the mid-cap and the small-cap indices also were in demand. However, bulls were unable to sustain above the crucial levels, as trader and investors preferred to book some profits in the second half. Finally, the BSE Sensex surged 112 points to close at 8,976 and the NSE Nifty was up 37 at 2,794.
Shares of NTPC gained by a percent to Rs175 following reports that the company has given technical approval for the establishment of coal-based thermal power plant at Kudagi in Bijapur district. The scrip touched an intra-day high of Rs176 and a low of Rs173 and recorded volumes of over 0.9mn shares on BSE.
Shares of M&M declined by 4% to Rs362 after reports stated that Mahindra Defence Systems has called off talks with Italian aerospace and defence major. The scrip touched an intra-day high of Rs380 and a low of Rs359 and recorded volumes of over 0.3mn shares on BSE.
Shares of Harrisons Malayalam surged by over 3.5% to Rs33. 8 after reports stated that the company plans to invest Rs900mn to vitalize its ageing rubber and tea plantations. The scrip touched an intra-day high of Rs35 and a low of Rs32 and recorded volumes of over 29,000 shares on BSE.
Jagatjit Industries was in high spirits for the second trading session on Wednesday after reports stated that the long rivalry between two brothers is nearing closing stages.
CLB chairman S Balasubramanian, in an order dated March 12 took the view that there was no merit in challenging the allotment of shares with differential voting rights (DVRs), as it is legally permissible. It dismissed the petitions filed by the two estranged brothers — Anand Jaiswal and Jagatjit Jaiswal.
Besides settling the family dispute the order is also significant as it may offer clarity on minority promoters using DVRs to fend off hostile takeover threats. The stock further rallied by over 15% to Rs63 recording volumes of over 0.1mn shares on the BSE.
Shares of Akruti zoomed by over 27% to hit its new 52-week high of Rs2145 on the back of huge volumes in the counter
The stock has rallied over 103% in the last five trading sessions and has surged 216% from its 52-wek low of Rs550 hit on January 1, 2009. The stock has been constantly outperforming the real estate sector as well as major equity indices despite sliding real estate prices.
ICSA India has secured work orders for a total contract value of Rs4.64bn from Bihar State Electricity Board, Mahavitaran (Maharashtra State Electricity Distribution Co. Ltd) and M P Poorv Kshetra Vidyut Vitaran Co. Ltd.
Shares of ICSA surged by over 9% to Rs70 after hitting an intra-day high of Rs72.40 and a low of Rs65 and recorded volumes of over 3.7mn shares on BSE.
Bulls may look to carry the momentum at least in the early trades provided the support of global. However, the current rebound in global equities is due to technical factors. So, selling pressure cannot be ruled out.
We recommend a buy on Thermax stock from a short-term trading perspective. We observe from the charts of Thermax that from December 2008 high of Rs 222, the stock was on a medium-term downtrend till it found support at around Rs 150 in early March 2009. The stock has significant medium-term support level at Rs 150.The stock changed its trend after taking support recently. On March 17, the stock jumped up by 6 per cent breaking through its medium-tern down trendline as well as 21-day moving average. On March 18, the stock gained 6 per cent penetrating the 50-day moving average on March 18. We notice good volume traded over the past two sessions. The daily relative strength index is featuring in the bullish zone. The daily moving average convergence and divergence is on the brink of entering into positive territory. We are bullish on the stock from a short-term horizon. We look forward to the stock rallying further until it hits our price target of Rs 195 in the upcoming sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 165.
Weak dollar makes it a bright day for bullion metals
After dropping for two straight days, bullion metals started shining on Wednesday, 18 March, 2009. The weak dollar was mainly the reason for this. The dollar slumped today after Fed said today that it will buy long term treasuries and this also increased the appeal of precious metals as a safe haven against alternatives.
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 Wednesday, Comex Gold for April delivery rose $35.9 (4.1%) to close at $925 an ounce on the New York Mercantile Exchange. In the past two days, gold had shed almost 1.4%. Last week on Tuesday, gold had dropped below $900 for first time in two months. Last week, the yellow metal ended lower by 1.5%. For the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are higher by 8%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (8.9%) since then.
On Wednesday, Comex silver futures for May delivery rose $0.85 (5.5%) to end at $12.595 an ounce. Last week, silver fell 0.8% In February, 2009, silver had rose 4.3% after climbing 14% in January. Year to date, silver has climbed 15.8% this year. For 2008, silver had lost 24%.
At the end of a two-day FOMC meeting in mid-afternoon, the Fed said it was committed to buying $300 billion in longer-term Treasurys to help the struggling American economy recover.
In the currency market on Wednesday, the dollar slumped after Fed's announcement. The dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by almost 3% soon after Fed announced its plan to buy the long term treasuries.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.
Prior to 2008, 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 April delivery closed lower by Rs 393 (2.6%) at Rs 14,752 per 10 grams. Prices rose to a high of Rs 15,138 per 10 grams and fell to a low of Rs 14,640 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 1,021 (4.7%) lower at Rs 20,625/Kg. Prices opened at Rs 21,625/kg and fell to a low of Rs 20,435/Kg during the day's trading.
Weak dollar helps crude glide up
Crude prices, which fell earlier in the day on Wednesday, 18 March, 2009, pared some of its earlier losses and closed higher for the day. Prices dropped initially as energy department reported more than expected buildup in crude and gasoline inventories for last week. But then, with a weak dollar, crude prices reversed their course of direction and ended little lower.
On Wednesday, crude-oil futures for light sweet crude for April delivery closed at $48.14/barrel (lower by $1.02 or 2%) on the New York Mercantile Exchange. The more active May contract fell $1.14 to settle at $48.9/barrel. Last week, crude ended higher by 1.6%. For the month of February, crude prices had ended higher by 1.5%. The April futures contract will end this coming Friday.
Prices had remained extremely volatile last week also. Prices reached a high of $147 on 11 July, 2008 but have dropped almost 67% since then. Year to date, in 2009, crude prices are higher by 12.5%. On a yearly basis, crude prices are lower by 56%.
The EIA reported today that gasoline inventories rose by 3.2 million barrels in the week ended 13 March, 2009. The EIA also reported an increase of 2 million barrels in crude inventories. Market was expecting a decline in either case. The EIA also said distillate stockpiles, which include diesel and heating oil, rose by 100,000 barrels.
At the end of a two-day FOMC meeting in mid-afternoon, the Fed said it was committed to buying $300 billion in longer-term Treasurys to help the struggling American economy recover. In the currency market on Wednesday, the dollar slumped after Fed's announcement. The dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by almost 3% soon after Fed announced its plan to buy the long term treasuries.
Last Friday, the IEA said in the monthly report that global oil supply in February is estimated at 83.9 million barrels a day, down 1 million barrels from a month ago and 3.4 million barrels from a year ago. The agency also lowered its forecast for this year's global oil demand to 84.4 million barrels a day, 1.5%, or 1.2 million barrels, lower than a year ago.
Also at the Nymex on Wednesday, April reformulated gasoline fell 5 cents to end at $1.37 a gallon and April heating oil finished down 1 cent at $1.26 a gallon.
April natural-gas futures fell 13 cents to end at $3.68 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for March delivery closed at Rs 2,523/barrel, lower by Rs 45 (1.7%) against previous day's close. Natural gas for February delivery closed at Rs 191.2/mmbtu, lower by Rs 5.8/mmbtu (2.9%).