Wednesday, April 08, 2009
Nifty April 2009 futures at premium
Nifty April 2009 futures were at 3,354.50, at a premium of 11.55 points as compared to the spot closing of 3342.95. Turnover in NSE's futures & options (F&O) segment surged to Rs 63465.15 crore from Rs 48445.32 crore on Monday, 6 April 2009.
Reliance Industries April 2009 futures were at premium at 1735.90 compared to the spot closing of 1725.15.
Reliance Infrastructure April 2009 futures were at premium at 619.65 compared to the spot closing of 618.20.
Reliance Capital April 2009 futures were at discount at 452.90 compared to the spot closing of 454.40.
In the cash market, the S&P CNX Nifty gained 86.50 points or 2.65% at 3342.95.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
8/4/2009 503940 ASIAN ELECT ICG Q LTD S 243898 23.25
8/4/2009 532382 BALAJI TELE GENESIS INDIAN INVESTMENT COMPANY LIMITED S 554408 37.49
8/4/2009 533026 CHEMCEL SUNIL BHANDARI S 150000 7.33
8/4/2009 531224 COM INTERNAT SHARADKSHAH B 438000 3.07
8/4/2009 531224 COM INTERNAT DIPAKKSHAHSHAH B 136997 3.15
8/4/2009 531224 COM INTERNAT ASHOK POPATLAL SHAH S 584600 3.09
8/4/2009 531270 DAZZEL CONFI DEEPTI AGRAWAL B 50000 3.44
8/4/2009 512369 ENNORE COKE SANDEEP SINGH BHARADWAJ S 131273 12.31
8/4/2009 523277 G V FILMS LT CREDIT SUISSE SINGAPORE LIMITED S 2403271 1.13
8/4/2009 522059 INDAGE VIN NEW VERNON INDIA LIMITED B 500000 55.20
8/4/2009 522059 INDAGE VIN AMERICAN FUNDS INSURANCE SERIES GLOBAL SMALL CAPITALIZATION FUND S 420397 55.20
8/4/2009 522059 INDAGE VIN SMALL CAP WORLD FND INC S 384584 55.20
8/4/2009 532081 K SERA SERA S V ENTERPRISES B 414787 10.77
8/4/2009 532081 K SERA SERA S V ENTERPRISES S 424749 10.61
8/4/2009 502995 MALWA COT SP SANDIP PRAVINCHANDRA VORA B 60071 26.72
8/4/2009 517447 R S SOFTW I ASHOK POPATLAL SHAH S 49966 12.75
8/4/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC EXCEL FINCOM B 126984 560.33
8/4/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC CHANDARANA INTERMEDIARIES BROKERS P. LTD B 126589 516.59
8/4/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD B 500262 548.96
8/4/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC EXCEL FINCOM S 126784 562.19
8/4/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC CHANDARANA INTERMEDIARIES BROKERS P. LTD S 124173 522.14
8/4/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD S 500262 550.18
8/4/2009 521034 SOMA TEX IND S V ENTERPRISES B 208051 9.49
8/4/2009 521034 SOMA TEX IND S V ENTERPRISES S 208051 9.51
8/4/2009 531279 TRISH ELEC I FRIENDSHIP INVESTMENTS S 25000 18.70
8/4/2009 532478 UNITED BREW DEUTSCHE SECURITIES MAURITIUS LIMITED B 20689427 107.50
8/4/2009 532478 UNITED BREW DB INTERNATIONAL ASIA LIMITED S 20689427 107.50
8/4/2009 507458 UNITED BREWR DEUTSCHE SECURITIES MAURITIUS LIMITED B 5524031 91.85
8/4/2009 507458 UNITED BREWR DB INTERNATIONAL ASIA LIMITED S 5524031 91.85
8/4/2009 532917 VARUN INDS AMI PATEL S 148885 22.00
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
08-APR-2009,ALOKTEXT,Alok Industries Limited,HI GROWTH CORPORATE SERVICES PRIVATE LIMITED,BUY,1098577,13.66,-
08-APR-2009,BARTRONICS,Bartronics India Limited,AJAY BAXI,BUY,150000,97.16,-
08-APR-2009,ESCORTS,Escorts India Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,479543,42.63,-
08-APR-2009,FAGBEARING,Fag Bearings India Ltd,HDFC TRUSTEE CO.LTD.A/C. HDFC PRUDENCE FUND,BUY,300000,290.00,-
08-APR-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,BUY,1535788,113.72,-
08-APR-2009,KALINDEE,Kalindee Rail Nirman (Eng,HARSHAD RAI BAKHDA,BUY,70597,93.88,-
08-APR-2009,MIC,MIC Electronics Limited,BP FINTRADE PRIVATE LIMITED,BUY,626859,25.36,-
08-APR-2009,ORBITCORP,Orbit Corporation Limited,NEW VERNON INDIA LIMITED,BUY,209390,67.93,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,AMBIT SECURITIES BROKING PVT. LTD.,BUY,113380,554.23,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,BP FINTRADE PRIVATE LIMITED,BUY,121965,523.24,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD,BUY,145329,557.29,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,147731,524.00,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,150283,544.43,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,MANIPUT INVESTMENTS PVT LTD,BUY,117543,547.67,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,122839,537.81,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,NEPTUNE FINCOT PVT LTD,BUY,75518,546.90,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,P R B SECURITIES PRIVATE LTD,BUY,169441,557.84,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,SHREEPATI HOLDINGS AND FINANCE PVT. LTD.,BUY,84232,540.25,-
08-APR-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PVT LTD,BUY,1180004,14.20,-
08-APR-2009,ALOKTEXT,Alok Industries Limited,HI GROWTH CORPORATE SERVICES PRIVATE LIMITED,SELL,1098577,13.71,-
08-APR-2009,ASIANELEC,Asian Electronics Ltd,ICG Q LTD,SELL,293405,23.13,-
08-APR-2009,BALAJITELE,Balaji Telefilms Limited,GENESIS INDIAN INVESTMENT COMPANY LIMITED,SELL,1180000,37.63,-
08-APR-2009,ESCORTS,Escorts India Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,495369,42.67,-
08-APR-2009,FAGBEARING,Fag Bearings India Ltd,ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED,SELL,300000,290.00,-
08-APR-2009,HDIL,Housing Development and I,GENUINE STOCK BROKERS PVT LTD,SELL,1535788,113.80,-
08-APR-2009,KALINDEE,Kalindee Rail Nirman (Eng,HARSHAD RAI BAKHDA,SELL,70597,96.23,-
08-APR-2009,KALINDEE,Kalindee Rail Nirman (Eng,VNR AND CO,SELL,230000,95.03,-
08-APR-2009,MIC,MIC Electronics Limited,BP FINTRADE PRIVATE LIMITED,SELL,449803,25.32,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,AMBIT SECURITIES BROKING PVT. LTD.,SELL,113380,554.77,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,BP FINTRADE PRIVATE LIMITED,SELL,121978,522.65,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD,SELL,145329,558.23,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,SELL,146147,527.46,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,150283,545.91,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,MANIPUT INVESTMENTS PVT LTD,SELL,117543,548.65,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,121239,539.52,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,NEPTUNE FINCOT PVT LTD,SELL,75518,549.39,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,P R B SECURITIES PRIVATE LTD,SELL,170241,558.66,-
08-APR-2009,RIIL,Reliance Indl Infra Ltd,SHREEPATI HOLDINGS AND FINANCE PVT. LTD.,SELL,81032,545.47,-
08-APR-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PVT LTD,SELL,1180004,14.22,-
Indian market rebounded sharply from its initial losses to end the day with handsome gains on strong buying emerged during final trading hours. Recovery in European markets along with US index futures after touching day’s low, contributed to positive sentiments. US index futures recovered after a report that the US Treasury has decided to extend bailout funds to several stressed life insurance companies. However, market tumbled during the early trading and lost more than 3% tracking lower stocks all over the world. A gloomy start to the U.S. earnings season battered expectation of ending economic slump. Data showing fall in exports for the sixth month in a row at $12 billion in March 2009, also fueled the negative attitude till afternoon trade.
The market opened sharply lower on the back of weak cues form the global markets. The US stock markets on Tuesday ended lower for second successive day, ahead of earnings season and concerns about the banking industry. In the domestic arena, fears regarding the earnings for the March quarter and uncertainty about general elections kept investor sentiment unstable during early trading. Further, benchmark indices continued to trade in negative terrain, though were simultaneously also trimming their losses and finally managed to recover from day’s low. Market ended up for the fifth consecutive session on huge buying across the board. BSE Sensex ended above 10,700 level and NSE Nifty above 3,300 mark. From the sectoral front, Reality, Consumer Durables, FMCG, PSU, Oil & Gas, Pharma, Capital Goods and Pharma stocks contributed to most of the buying. Mid Cap and Small Cap stocks also remained on buyers’ radar and gained more than 3% and 4% respectively. However, Bank stocks remained out of favour during the trading.
Among the Sensex pack 22 stocks ended in green territory and 8 in red. The market breadth indicating the overall health of the market remained extremely positive as 2021 stocks closed in green while 468 stocks closed in red and 63 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 207.47 points at 10,742.34 and NSE Nifty ended up by 86.35 points at 3,342.95. BSE Mid Caps and Small Caps closed with gains of 99.51 and 158.73 points at 3,3,02.59 and 3,705.97 respectively. The BSE Sensex touched intraday high of 10,778.11 and intraday low of 10,171.91.
Gainers from the BSE Sensex pack are JP Associates (8.71%), NTPC Ltd (6.70 %), Tata Motors (6.29%), HUL (6.06%), ITC Ltd (5.15%), L&T Ltd (4.71%), Wipro Ltd (4.69%), TCS Ltd (4.35%), Sun Pharma (4.20%), Reliance (3.10%) and Tata Steel (2.82%).
Losers from the BSE Sensex pack are M&M Ltd (3.54%), Hindalco (2.92%), RCom (2.18%), HDFC Bank (1.61%), BHEL (1%) and Sterlite Industries (0.52%).
On the global markets front the Asian markets which opened before the Indian market, ended lower on earning worries after a dismal start to the U.S. earnings season. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times index and Seoul Composite ended lower by 91.8, 454.11, 237.84, 18.43 and 38.03 points at 2,347.39, 14,474.86, 8,595.01, 1,783.96 and 1,262.07 respectively.
European markets which opened after the Indian market are trading in red. In Frankfurt the DAX index is trading lower by 14.63 points at 4,307.87 and in London FTSE 100 is trading down by 27.20 points at. 3,903.32.
The BSE Realty index gained (4.74%) or 87.58 points to close at 1,936.41 on hopes that lower rates will spur housing demand. Gainers are Orbit Co (18.44%), Indiabull Real (12.12%), Ansal Infra (8.61%), Parsvnath (8.14%) and Unitech Ltd (6.93%).
The BSE Consumer Durables ended up by (4.62%) or 83.94 points at 1,901.32. Gainers are Titan Ind (8.03%), Blue Star (2.88%), Videocon Ind (2.66%), Rajesh Export (2.16%) and Gitanjali GE (0.96%).
The BSE FMCG index increased by (4.47%) or 88.99 points at 2,078.37 on the expectations of better 4QFY09 results following reports of higher advance tax payment by these firms. United Brew (9.65%), HUL (6.06%), HUL (5.15%), Marico Ltd (4.26%) and United Brew (2.85%) ended in positive territory.
The BSE PSU stocks also advanced by (3.54%) or 196.32 points to close at 5,735.89. Major gainers are Hind Copper (19.98%), St Trade Corp (19.98%), Nalco (8.85%), MMTC Ltd (8.80%) and NTPC Ltd (6.70%).
The BSE Oil & Gas index gained (3.24%) or 251.18 points at 7,998.76. Scrips that gained are Essar Oil Ltd (8.43%), Gail India (7.82%), RNRL (5.65%), Aban Offshore (3.93%) and IOC Ltd (3.78%).
The BSE Bank index lost (0.22%) or 10.98 points to close at 4,915.29 on fears of rising defaults in a weakening economy and on decline in American Depository Receipts. Main losers are Yes Bank (4.91%), IDBI Bank (4.19%), Allahabad Bank (3.19%), Indus Ind Bank (3.14%) and Karnataka Bank (2.53%).
Religare enterprises ended higher by 0.18%. Religare Venture Capital Limited, a wholly owned subsidiary of Religare Enterprises Limited announced a 50:50 joint venture (subject to regulatory approvals, if any) with Milestone Capital, leading Private Equity player for managing a Rs. 600 crore Healthcare and Education fund to be raised domestically.
Aurobindo Pharma advanced 3.61% on receiving approval from Swissmedic, Government of Switzerland, for launch of a new drug in Switzerland.
Satyam Computer gained 1.11%. The company announced its partnership with Pentaho Corporation, a leading Open Source Business Intelligence (OSBI) product company. As a Silver Certified partner for system integration and a Pentaho OEM partner, Satyam will host ''On Demand BI Solutions'' for customers on Pentaho BI Suite Enterprise Edition.
NIIT Ltd went up by 7.57% after the company and New Delhi Municipal Council (NDMC) have entered into an agreement to provide ICT Education in 29 Municipal Schools in the city.
NTPC Ltd reported 6.70% increase as reported 5.6% increase in its provisional net profit for 2008-09. The power company posted Rs.7,827.4 crore as profit for 2008-09, as compared to Rs.7,414.8 crore of previous year.
Tata Motors surged 6.29%. The company will set up a heavy truck manufacturing facility with a capacity of 1,500 units per annum in Myanmar. The plant is being set up following an agreement between the governments of India and Myanmar.
TCS Ltd gained 4.35%. The software exporter has won $80-million outsourcing contract from UK’s Child Maintenance and Enforcement Commission. The company will will help CMEC implement and integrate various applications, including Oracle’s Siebel customer relationship management software and TCS’ Bancs software.
BHEL lost 1%. The company has signed a ten-year technology transfer agreement with the UK-based Sheffield Forgemasters International Ltd.
Key benchmark indices extended recent strong gains with the barometer index BSE Sensex registering its highest closing in nearly six months. Realty, capital goods, FMCG and IT stocks, led the rally. Index heavyweight Reliance Industries (RIL) extended recent gains. Banking stocks cut intraday losses. The BSE 30-share Sensex rose 207.47 points or 1.97% up close to 570 points from the day's low.
Data showing resumption of buying by foreign funds boosted the market sentiment. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has jumped 2,581.94 points or 31.63%.
The market staged a strong rebound after an initial steep slide caused by weak global markets and data showing fall in exports for the sixth month in a row in March 2009. Weak global markets triggered profit taking after a steep rally on the domestic bourses in the past few days.
Indian stocks have risen sharply in the past few days as a part of a solid rally in global stocks triggered by hopes the worst of the global economic recession may be over.
As per the provisional data released by the commerce department on Tuesday, 7 April 2009, India's exports declined for a sixth month in a row in March 2009. Quick estimates made by the commerce department reveal that exports fell by 18% in March 2009 to $12 billion. With demand in key markets including the US, the European Union and Japan slowing down, exports in most countries have been hit.
The Q4 March 2009 results of India Inc would start trickling in soon and investors will closely watch the future outlook provided by the management. IT bellwether Infosys Technologies kickstarts the earnings reporting season on 15 April 2009.
One domestic brokerage expects core earnings of 30-Sensex firms to decline 12% in Q4 March 2009 over Q4 March 2008. The decline in earnings may be more widespread than in the previous quarter. The decline in earnings was led primarily by commodities in Q3 December 2008. The above mentioned brokerage expect earnings to decline in real estate, automobiles, banking, financial services & insurance (BFSI), media, and construction, in addition to commodities (metals & mining, cement), sectors. FMCG and capital goods are expected to report only a marginal earnings growth. Oil marketing companies are, however, expected to post strong earnings growth.
The suspension of AS-11 till 2011 will result in significant increase in profits in Q4 March 2009, as companies may write back marked-to-market losses on foreign currency liabilities booked in the past three quarters.
The above-mentioned brokerage expects Sensex earnings to decline 5% in the year ending March 2010 (FY 2010). Capital goods, FMCG, oil & gas, and BFSI are expected to register earnings growth in FY 2010, whereas metals, cement and real estate are expected to see sharp earnings decline, it says in a recent report. Slowing economic growth, weak demand, and lower realisations will keep earnings growth and profitability of Indian corporates under pressure in the near term. With sales declining, operating leverage will result in margin contraction. However, this will be partially compensated by lower input costs.
Consensus earnings expectations have been consistently revised downwards. There could be further earnings downgrades if the macroeconomic situation does not improve materially.
European stocks witnessed intraday recovery after a sharp slide in opening trade. In London, the FTSE 100 index was now down 0.68%. It had fallen 1.3% in early trade. In France, the CAC-40 index was now down 0.34%. It had fallen 1.8% in early trade. In Germany, the DAX index was now down 0.04%. It had fallen 1.9% in early trade.
European shares edged lower today as the first-quarter earnings season got off to a poor start following a larger-than-expected loss from aluminum giant Alcoa.
Asian stocks fell for a second day in a row on Wednesday, 8 April 2009, led by mining and finance companies, as losses at Alcoa Inc. and Daiwa Securities Group Inc. renewed concern the global recession is hurting corporate earnings. Key benchmark indices in China, Singapore, Taiwan, Indonesia, South Korea fell by between 1.02% to 3.76%.
Alcoa, the largest US aluminum producer, posted a second-straight quarterly loss as the global recession reduced demand for the metal used in automobiles and appliances.
Japan's Nikkei 225 Stock Average dropped 2.69% as a government report showed the country's exports sank 50.4% in February 2009 from a year earlier. Daiwa Securities, Japan's second-biggest brokerage, said it will report an annual loss as it books a 17.4 billion yen ($173 million) decline in the value of securities holdings.
Hong Kong's leading share index which had ended the morning session sharply lower on Wednesday pulled down by losses from market heavyweight HSBC Holdings, cut losses later. The Hang Seng was now down 3.04%.
Trading in US index futures showed the Dow could fall 42 points at the opening bell on Wednesday, 8 April 2009. The Dow futures were choppy.
US stocks slumped on Tuesday, 7 April 2009, as investors George Soros and Marc Faber predicted that the recent rebound in equities will falter.
The International Monetary Fund will probably increase its estimate of credit losses on US assets to about $2.8 trillion from $2.2 trillion in its Global Financial Stability report due on 20 April 2009, the Financial Times said, citing people familiar with the matter.
The US Treasury has decided to extend bailout funds to several struggling life insurance companies, according to a report in The Wall Street Journal. The extension of the Troubled Asset Relief Program is expected to be announced in the next several days, the newspaper reported. Keeping life insurers on solid footing is seen as crucial to maintaining confidence, the report said.
Meanwhile, investors moved more cash out of safe-haven money market funds and moved it into higher-risk investments in the week ended 1 April 2009, data from Boston-based fund tracker EPFR Global showed on 3 April 2009. During the week ended 1 April 2009, long-only dedicated emerging market equity funds witnessed net inflows of $1.2 billion, according to the US-based EPFR Global, which provides fund flows and asset allocation data to financial institutions.
The broader category of Global Emerging Market (GEM) equity funds had net inflows of $867.5 million. However, India had net outflows of $4.1 million in the week ended 1 April 2009. It seems that emerging markets have once again become attractive investment destinations, promising better growth prospects, says EPFR Global managing director Brad Durham.
In the latest period, investors pulled $9.68 billion out of money market funds while developed equity markets such as the United States and Japan had outflows of $1.095 billion and $487.1 million, respectively.
Foreign funds have resumed buying of Indian stocks. The foreign funds bought shares worth Rs 172.30 crore on Monday, 6 April 2009. Foreign funds bought shares worth Rs 931.10 crore in two trading sessions between 1 April 2009 and 2 April 2009. The inflow followed heavy sales in the preceding three trading sessions. Foreign funds dumped stocks worth a net Rs 1266.70 crore in three trading sessions from 27 March 2009 to 31 March 2009. Before the selling, foreign institutional investors had mopped up stocks worth Rs 3635 crore in a short span from 17 March 2009 to 26 March 2009.
However, a recent sharp volatility in the rupee may dissuade fresh buying by foreign funds. The rupee has bounced back after hit a record low beyond 52 per dollar early last month.
The Indian rupee dropped on Wednesday after a three-day rise as weakness in regional stocks raised concerns of outflows from domestic shares. The partially convertible rupee was at 50.19 today weaker compared to a closing of 50.04/05 per dollar, on Monday 6 April 2009. India's bond and currency markets were closed on Tuesday 7 April 2009 for a local holiday.
Domestic institutional investors have been absorbing heavy selling by foreign funds witnessed in first two months of calendar year 2009.
Indian manufacturing activity contracted for a fifth straight month in March 2009 as demand remained depressed by the global economic downturn, although there were some signs of improvement, a survey showed on 1 April 2009. The new orders index rose to 49.5 in March 2009 from 45.9 in February 2009.
Prime Minister Manmohan Singh on 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.
Meanwhile, there are signs that the credit flow to businesses is improving. During the fortnight ended 13 March 2009, loans sanctioned by scheduled commercial banks (SCBs), including regional rural banks, went up by Rs 22,423 crore. This was the third fortnight in a row when credit flow went up. Earlier, an extreme risk aversion by banks had chocked credit flow to the industry - the lifeline of business.
Indian corporate bonds sales posted their best quarter on record as government-backed infrastructure and finance companies raised funds to bolster their capital. Indian companies raised Rs 37800 crore from bonds in Q1 March 2009, 44% more than in the same period a year earlier. State-owned lender India Infrastructure Finance Co. raised Rs 7370 crore in the biggest bond sale of the quarter, followed by a Rs 3950-crore issue by the National Bank for Agriculture & Rural Development, known as Nabard.
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.
Raising funds may become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into force from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.
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.
India's fiscal deficit for the April-February 2009 period was Rs 3,07,000 crore ($61 billion), or 94.1% of an upwardly revised budget target, a government statement said on Tuesday, 31 March 2009. In February 2009, the government revised upwards its fiscal deficit estimate for the year ending 31 March 2009 to Rs 3, 27, 000 crore, equivalent to 6% of gross domestic product from 2.5% estimated earlier. The deficit has widened after the government announced extra spending of close to Rs 1,50,000 to cover a farm debt scheme, subsidies and steps to stimulate a slowing economy.
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. More so at a time when early estimates point a fractured mandate. A group of smaller political parties, including the communists, have formally launched a Third Front in a bid to provide an alternative to the two main parties viz. the Congress and the BJP.
The BSE 30-share Sensex rose 207.47 points or 1.97% to 10,742.34 its highest closing since 15 October 2008. At the day's high of 10,778.11, the Sensex rose 243.24 points in late trade. At the day's low of 10,171.91, the Sensex fell 362.96 points in early trade.
The S&P CNX Nifty gained 86.35 points or 2.65% to 3,342.95 its highest closing since 14 October 2008.
The BSE clocked a turnover of Rs 5,423 crore, higher than Rs 4,690.15 crore on Monday, 6 April 2009.
Nifty April 2009 futures were at 3,354.50, at a premium of 11.55 points as compared to the spot closing of 3342.95. Turnover in NSE's futures & options (F&O) segment surged to Rs 63,465.15 crore from Rs 48,445.32 crore on Monday, 6 April 2009.
The BSE Mid-Cap index rose 3.11% and the BSE Small-Cap index rose 4.47%. Both the indices outperformed the Sensex.
The BSE Realty index (up 4.74%), the BSE Consumer Durables index (up 4.62%), the BSE FMCG index (up 4.47%), the BSE PSU index (up 3.54%), the BSE Oil & Gas index (up 3.24%), the BSE Healthcare index (up 3.04%), the BSE Capital Goods index (up 3.02%), the BSE Power index (up 2.81%) outperformed the Sensex.
The BSE Bankex (down 0.22%), the BSE Auto index (up 1.31%), the BSE TECk index (up 1.41%), the BSE Metal index (up 1.65%), the BSE IT index (up 1.78%) underperfomed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 2,031 stocks advanced as compared to 492 that declined. A total of 58 shares remained unchanged. The breadth was weak earlier in the day.
From the 30 share Sensex pack 22 stocks gained while rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 3.1% to Rs 1,724.05. The stock came off the day's low of Rs 1,605.10. The company started pumping gas from the Krishna Godavari (KG) recently which is estimated to add close to $2 billion to the company's profit at peak production levels.
PSU OMCs rose on fall in crude oil prices. BPCL, HPCL and Indian Oil Corporation rose by between 1.15% to 3.78%. Lower oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. Oil fell by over a dollar toward $48 a barrel on Wednesday, adding to Tuesday's 3.7% on higher-than-expected rise in US crude inventories.
Auto shares rose on a revival of demand for vehicles on lower interest rates and fall in fuel prices. Auto sales are largely driven by finance. India's largest car maker by sales Maruti Suzuki India rose 2.15% to Rs 816.50. It came off the day's low of Rs 775. Its total vehicle sales rose 21.9% to 85,669 units in March 2009 over March 2008.
India's largest motorbike maker by sales Hero Honda Motors rose 1.68% to Rs 1,077.70. It came off the day's low of Rs 1,040.05. Sales rose 10.2% to 3.53 lakh unit in March 2009 over March 2008.
India's largest commercial vehicle maker by sales Tata Motors rose 6.29% to Rs 222.30. It came off the day's low of Rs 197.50. Its domestic sales however fell 13% to 52,686 units in March 2009 over March 2008. Nevertheless, the domestic sales rose 24% in March 2009 over February 2009.
But, India's largest tractor maker by sales Mahindra & Mahindra fell 3.54%. Total sales rose 6% to 26,209 in March 2009 over March 2008.
Some healthcare stocks rose triggered by expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Lupin, Pfizer, Cipla, Ranbaxy Laboratories, Biocon, Sun Pharmaceutical Industries, Piramal Healthcare rose by between 0.61% to 10.42%.
Aurobindo Pharma rose 3.61% on receiving approval from Swissmedic, Government of Switzerland, for launch of a new drug in Switzerland.
Rate sensitive real estate shares surged on hopes lower rates will spur housing demand. DLF, Unitech, Indiabulls Real Estate, Housing Development & Infrastructure rose by between 1.15% to 12.12%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.
Some of the FMCG stocks rose triggered by expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Britannia Industries, United Spirits, Tata Tea, Marico, ITC, REI Agro rose by between 0.21% to 13.26%. India's largest FMCG major Hindustan Unilever rose 6.06% after the stock fell over 5% in last five sessions.
Outsourcing focussed IT firms reversed early losses on a weaker rupee. India's third largest software services exporter, Wipro rose 4.69% to Rs 282.10. The stock came off the day's low of Rs 258. Its ADR fell 3.72% on Tuesday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).
India's largest software services exporter by sales TCS rose 4.35% to Rs 604.80, off the day's low of Rs 550. The company has reportedly bagged a $80 million outsourcing contract from UK's Child Maintenance and Enforcement Commission, the first in a series of $2-3 billion worth of contracts to be awarded by the UK's state-owned departments. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.
India's fifth largest IT firm by sales HCL Technologies rose 10.75% on recent reports the firm has bagged a five-year IT services contract worth close to $170 million or Rs 848 crore from US-based Microsoft Corporation.
India's second largest software services exporter Infosys Technologies rose 0.52% to Rs 1,421.80, off the day's low of Rs 1,368.10. Its ADR fell 0.42% on Tuesday.
Recent reports said Infosys may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.
A weak rupee boosts revenues of IT firms in rupee terms as IT companies earn a lion's share of revenue from exports.
Banking stocks cut intraday losses on hopes lower interest rates may boost lending growth. India's largest private sector bank by net profit ICICI Bank rose 0.51% to Rs 376.55. The stock came off the day's low of Rs 341.20. Its American depository receipts (ADR) fell 2.15% on Tuesday, 7 April 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 second largest private sector bank by operating income HDFC Bank slipped 1.61% to Rs 1,045.85. The stock came off the day's low of Rs 992.50. Its ADR fell 3.48% on Tuesday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.
India's largest bank in terms of assets and branch network State Bank of India fell 0.45% to Rs 1,123.90. Nevertheless, the stock came off the day's low of Rs 1,071. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.
India's biggest dedicated housing finance firm by operating income HDFC rose 0.58% to Rs 1,709.10. The stock came off the day's low of Rs 1,600. It announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective 25 March 2009.
Indian largest engineering and construction firm by sales Larsen & Toubro rose 4.71%. It had recently won two orders worth a total of Rs 1,344 crore ($265 million) from refiner Mangalore Refinery and Petrochemicals. It had also bagged two orders aggregating Rs 1,143 crore ($227 million) from Tata Steel.
Other capital goods stocks, BEML, Praj Industries, Thermax, ABB, Punj Lloyd, rose by between 1.46% to 7.3%.
India's largest steel maker by sales Tata Steel rose 2.82% as its total sales rose 45% to 6.96 lakh tones in March 2009 over March 2008.
Other metal stocks, Steel Authority of India, National Aluminum Company and Hindalco Industries rose by between 2.93% to 8.85%
India's largest power generation firm by sales NTPC rose 6.7% after it reported a 5.6 % rise in provisional net profit to Rs 7827 crore in the year ended March 2009 over the year ended March 2008.
Airline stocks rose on fall in crude oil prices. SpiceJet, Kingfisher Airlines and Jet Airways, rose by between 7.74% to 20%. Jet fuel constitute more than 50% of the operating cost for the airliners. The prices of jet fuel are linked to crude oil.
Reliance Natural Resources clocked the highest volume of 2.57 crore shares on BSE. Unitech (2.36 crore shares), United Breweries Holdings (2.12 crore shares), Cals Refineries (1.98 crore shares) and Ispat Industries (1.66 crore shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 346.19 crore on BSE. United Breweries Holdings (Rs 228.95 crore), Reliance Capital (Rs 202.35 crore), Essar Oil (Rs 190.67 crore), Essar Oil (Rs 190.87 crore) and Reliance Infrastructure (Rs 189.34 croree) were the other turnover toppers in that order.
Today domestic markets are likely to open negative after a holiday yesterday as the cues from the global markets are not in favor. The US market tumbled on Tuesday on the back of fears that the earning of the companies will be hammered in the first quarter due to recession. Followed this, the Asian markets also opened with negative gap on earnings fears. Also, fears regarding the earnings for the March quarter and uncertainty about general elections may keep investor sentiment unresponsive. The market will hunt for some news to take further directions. So one could anticipate some profit booking during the trading session after consecutive rally in the last week.
On Monday, the domestic markets closed with phenomenal gains. The sentiments were very strong since the positive gap opening, however later the profit booking pressures pared some gains. The Asian markets were trading firm with green numbers and the remarkable opening of the European markets further supported the domestic markets’ sentiments. Sectors like CD, CG, Metal and Auto witnessed huge buying as they gained 5.84, 3.75%, 3.65% and 3.59% respectively. However FMCG was the only sector that was hammered. The market was closed on Tuesday, for a holiday. During the session we expect some profit booking.
The BSE Sensex closed with gain of 186.04 points at 10,534.87 and NSE Nifty ended with gain of 45.55 points at 3,256.60. BSE Mid Caps and BSE Small Caps ended with gains of 77.66 points and 110.32 points at 3,203.08 and 3,547.24 respectively. The BSE Sensex touched intraday high of 10,654.89 and intraday low of 10,410.44.
On Tuesday, the US Markets ended lower for second successive day, ahead of earnings season and concerns about the banking industry. There was absence of any major headline, consequently market participants left to prepare for earnings season. The financial sector performed in-line with much of the broader market for almost the entire session, but a late selling effort forced the sector to close at its session low with a 3.2% loss. The US light crude oil for May delivery faced selling pressure and declined by 3.5% to settle at $49.28 a barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed low by 186.29 points at 7,789.56 the NASDAQ Composite (RIXF) index declined by 45.1 points to close at 1,561.61 and the S&P 500 (SPX) dropped by 19.93 points to close at 815.55.
Today major stock markets in Asia are trading in red. Shanghai composite is low by 47.44 points at 2,391.74. Hang Seng is trading in extremely down by 545.77 points at 14,383.20 followed by Japan''s Nikkei which is down by 174.22 points at 8,658.63, Strait Times is low by 37.37 points at 1,765.02. Further, Taiwan Weighted is down with losses of 72.55 points at 5,504.30 and Seoul Composite is also down by 27.26 points at 1,272.84 respectively.
Indian ADRs ended lower. In technology sector, Infosys ended down by 0.42% along with Satyam by 8.93%. Further, Wipro lost 3.72% while Patni Computers remained unchanged. In banking sector ICICI Bank and HDFC Bank lost 2.15% and 3.48 respectively. Further, in telecommunication sector Tata Communication and MTNL dropped by 1.34% and 6.27% respectively.
The FIIs on Monday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 2,761.50 Crore and gross debt purchased stood at Rs 291.10 Crore, while the gross equity sold stood at Rs 2,065.30 Crore and gross debt sold stood at Rs. 299.80 Crore. Therefore, the net investment of equity and debt reported were Rs 696.30 Crore and Rs (8.70) Crore respectively.
On Monday, the Rupee closed at Rs. 50.05, 0.58% stronger that its previous close of Rs. 50.34. The local currency appreciated on the back of phenomenal gain in the stock markets increasing hopes of foreign currency inflow.
On BSE, total number of shares traded were 45.71 Crore and total turnover stood at Rs 4,690.16 Crore. On NSE, total number of shares traded was 104.74 Crore and total turnover was Rs 14,844.12 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with 60222633 shares, Unitech with 42996319 shares, ICICI Bank with 21989218 shares, SAIL with 17256891 shares followed by Reliance Comm with 17251478 shares.
On NSE Future and Options, total number of contracts traded in index futures was 751043 with a total turnover of Rs 11,746.59 Crore. Along with this total number of contracts traded in stock futures were 490631 with a total turnover of Rs 16,414.83 Crore. Total numbers of contracts for index options were 1139046 with a total turnover of Rs 18,716.09 Crore and total numbers of contracts for stock options were 43270 and notional turnover was Rs 1,567.81 Crore.
Today, Nifty would have a support at 3,196 and resistance at 3,306 and BSE Sensex has support at 10,214 and resistance at 10,712.
Weak in global markets may trigger profit taking on the domestic bourses which have seen a sharp surge in the past few days. Indian stocks have risen sharply in the past few days as a part of a solid rally in global stocks triggered by hopes the worst of the global economic recession may be over. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex jumped 2,374.47 points or 29.09% to 10,534.87 on 6 April 2009, its highest closing since 10 November 2008. The stock market was closed on Tuesday, 7 April 2009, for a public holiday.
According to analysts a recovery in the economy will make the rally sustainable. Indian manufacturing activity contracted for a fifth straight month in March 2009 as demand remained depressed by the global economic downturn, although there were some signs of improvement, a survey showed on 1 April 2009. The new orders index rose to 49.5 in March 2009 from 45.9 in February 2009.
However, as per the provisional data released by the commerce department on Tuesday, 7 April 2009, exports declined for a sixth month in a row in March 2009. Quick estimates made by the commerce department reveal that exports fell by 18% in March 2009 to $12 billion. With demand in key markets including the US, the European Union and Japan slowing down, exports in most countries have been hit.
The Q4 March 2009 results of India Inc would start trickling in soon and investors will close watch the future outlook provided by the management. IT bellwether Infosys Technologies kickstarts the earnings reporting season on 15 April 2009.
One domestic brokerage expects core earnings of 30-Sensex firms to decline 12% in Q4 March 2009 over Q4 March 2008. The decline in earnings may be more widespread than in the previous quarter. The decline in earnings was led primarily by commodities in the previous quarter. The above mentioned brokerage expect earnings to decline in real estate, automobiles, banking, financial services & insurance (BFSI), media, and construction, in addition to commodities (metals & mining, cement). FMCG and capital goods are also expected to report only a marginal earnings growth. Oil marketing companies are, however, expected to post strong earnings growth.
The suspension of AS-11 till 2011 will result in significant increase in profits in Q4 March 2009, as companies may write back marked-to-market losses on foreign currency liabilities booked in the past three quarters.
The above-mentioned brokerage expects Sensex earnings to decline 5% in the year ending March 2010 (FY 2010). Capital goods, FMCG, oil & gas, and BFSI are expected to register earnings growth in FY 2010, whereas metals, cement and real estate are expected to see sharp earnings decline, it says in a recent report. Slowing economic growth, weak demand, and lower realisations will keep earnings growth and profitability of Indian corporates under pressure in the near term. With sales declining, operating leverage will result in margin contraction. However, this will now be partially compensated by lower input costs.
Consensus earnings expectations have consistently been revised downwards in the year ended March 2009 (FY 2009). There could be further earnings downgrades if the macroeconomic situation does not improve materially.
Asian stocks fell for a second day in a row on Wednesday, 8 April 2009, led by mining and finance companies, as losses at Alcoa Inc. and Daiwa Securities Group Inc. renewed concern the global recession is hurting corporate earnings. Key benchmark indices in Hong Kong, China, Japan, Indonesia, South Korea, Singapore and Taiwan were down by between 0.7% to 4.1%.
Asian stocks fell, led by mining and finance companies, on renewed concern the global recession will weigh on earnings.
Daiwa Securities Group slipped almost 5.5% after writing down the value of its securities holdings. Inpex Corp sank almost 3% after crude oil futures dropped.
Japanese benchmark index Nikkei fell 138.29 points, or 1.57%, to trade at 8,694.56.
China`s Shanghai Composite declined 11.07 points, or 0.45%, to trade at 2,428.12.
Taiwan`s Taiex index gained 18.62 points, or 0.33%, to trade at 5,595.47.
South Korea`s Kospi index slipped 14.56 points, or 1.12%, to trade at 1,285.54.
Singapore`s Straits Times slid 19.01 points, or 1.05%, to trade at 1,783.38. (7.46 a.m., IST)
Hong Kong`s Hang Seng index fell 491.68 points, or 3.29%, to trade at 14,437.29.(8.52 a.m., IST)
The market is monitoring the international markets for further direction and the weakness across the global markets may drag down the local indices. The market may open in negative territory following the slump in Asian markets in morning trades. However, after posting significant gains in last four sessions, buying interest may continue on the back of firm trend. Among the key local indices, the Nifty has good support around 3200-3150 levels and upside till 3300-3350 levels. The Sensex has a likely support at 10400 and may face resistance at 10700.
US indices slipped on Tuesday, retreating for a second straight session after a four-week advance, on worries about banks and autos and the start of the quarterly reporting period. The Dow ended lower at 7790 down 186 points, while the tech-laden Nasdaq declined to close 45 points lower at 1562.
Indian floats had a weak outing on the US bourses. Satyam and MTNL lost around 6-8% each while Wipro, HDFC Bank, ICICI Bank, Tata Motors, VSNL, Dr Reddy and Infosys dropped 0.50-3% each.
However, only Rediff closed in positive territory with the gain of 6.45%.
Crude oil prices in the international market edged lower, with the Nymex light crude oil for June delivery decline by $1.90 to close at $49.15 per barrel. In the commodity space, the Comex gold for June series advanced $10.50 to settle at $883.30 a troy ounce.
DLF plans to raise Rs9bn in the next three months through the sale of at least eight hotel plots across cities. (ET)
TCS bags US$80mn outsourcing contract UK’s Child Maintenance and Enforcement Commission. (ET)
ONGC defers decision on hiring a drilling rig from Reliance Industries. (BS)
Tech Mahindra to take final call on Satyam bid next week. (ET)
Leila Lands, a 100% subsidiary of Bomay Burmah Trading Company, a Wadia group firm to buy out Danone’s 25% stake in Britannia for ~US$200mn. (ET)
The Wadia family plans to raise ICICI Bank’s five-year loan of US$200mn for buying out Danone’s stake in Britannia. (ET)
HCL Technologies has signed a six-year, multi-region data centre services and transformation deal worth ~US$100mn with Xerox Corporation. (ET)
The shareholders and creditors of Reliance Industries have approved the merger with RPL. (ET)
M&M launches Xylo in Nepal. (ET)
Tata Motors to set up a heavy truck manufacturing facility in Myanmar with a capacity of 1,500 units per annum. (BS)
BHEL to spend Rs8bn in FY10 on R&D. (BL)
Bharti Airtel’s US$750mn outsourcing deal with IBM has touched the US$2.5bn mark as of March-end 2009. (ET)
IVRCL has bagged orders worth ~Rs3.6bn from different vendors for construction related works. (FE)
Bharti Airtel is open to the DoT’s special audit of its books. (FE)
Mahindra Yueda Yancheng Tractor Company, a JV between Mahindra group and the Yueda Group of China, rolled out its maiden 125-hp tractor from its Chinese factory. (ET)
Pfizer and Sanofi-Aventis are among multinational pharma firms that are currently doing a due diligence of Wockhardt’s Rs1.5bn animal healthcare business. (ET)
Reliance Communications has forayed into high-speed wireless broadband services in Kolkata. (ET)
Bharti Airtel introduced wireline broadband on DSL in the country at a speed of 16 Mbps. (FE)
Tata Steel’s production increased by ~14% yoy to 6.25mn tons in FY09. (FE)
Hotel Leelaventure has bought back ~US$50mn FCCBs at discount from the international markets. (FE)
JSW Steel’s production surged by 11% yoy to 1.1mn tons in Q4 FY09. (FE)
Videocon Industries to raise over Rs2bn through issue of warrants on preferential basis to Bennett, Coleman & Company Ltd. (FE)
Radico Khaitan has bought back additional FCCBs worth US$4mn from the international markets. (FE)
SBI and Macquarie Group jointly tied up more than US$1bn to finance infrastructure projects. (FE)
NMDC to seek shareholders approval for merger of Sponge Iron India with it on May 22, 2009. (FE)
DLF Ltd to invest Rs4bn to develop a housing project of ~600 apartments in Delhi. (ET)
JSW Steel has cancelled 14.74% of its outstanding zero coupon FCCBs of US$100,000 each due 2012, aggregating to US$47.8mn. (FE)
JSL plans to raise Rs15bn through rights issue, FCCBs and private placement. (ET)
RPG Group’s retail flagship Spencer’s Retail is making a major foray into lifestyle retailing. (ET)
Essar Group is likely to dilute its stake in Econet, its telecom venture in Kenya. (FE)
Network 18 has acquired the investment advisory business of its group company Capital 18 Media Advisors, a venture capital and private equity firm. (FE)
NHPC plans to set up over 10,000mw capacity projects in the Northeastern region with an investment of ~Rs500bn by 2022. (FE)
iGate forays into healthcare to de-risk business. (BS)
Maytas Infra Ltd completed the construction of a six-lane outer ring road for the Bangalore Development Authority (BDA). (BS)
M&M’s tractor joint venture in China rolled out its 125 HP tractor from its new tractor plant with the capacity of 38,000 units. (BL)
PTC cuts fund raising target to Rs5bn. (BL)
French company Vetoquinol is in race for Wockhardt’s vet unit. (ET)
NMDC has surpassed the production target set by the government for FY09. (ET)
Power Grid to borrow US$2bn from World Bank and Asian Development Bank to part finance Rs550bn investment plans till 2012. (ET)
Moody’s downgrades Tata Chemicals corporate family rating to Ba1 from Baa3. (BL)
Fortis Healthcare to expand network to 40 hospitals by 2012. (BL)
Essar Steel plans to start the first phase of production from its proposed US$1.1bn steel plant in US by 2011. (ET)
Tata Industries gets IT department notice, raising a demand of Rs2.98bn on capital gains on sale of shares in Idea Cellular. (BS)
V-Guard opens two new cable factories in Uttarakhand and Tamil Nadu. (BS)
Exports declined 30% in March to US$12bn. (BS)
Corporate Affairs ministry clears DOT’s plan to impose three year ban on equity sales by owners of companies that acquired UAS licenses. (ET)
Specialized steel makers have raised prices by 3.5%. (BS)
Sugar production is expected to plunge 45% to 14.5mn tons during the current season ending September. (BL)
3G services of private players to go on stream only by FY11. (FE)
RBI said that the government’s borrowing program would be substantially higher in 2009-10 as against a year earlier. (BS)
With low credit demand, banks park ~Rs1,220bn with the RBI through the reverse repo window. (BS)
The mutual fund industry suffered an erosion of Rs1,000bn during the month of March alone due to huge redemptions from banks and institutional investors in liquid and money market funds. (BS)
The country’s steel imports dipped by about 18% in FY09 amid slackening demand. (BS)
The Government, in a bid to encourage private sector participation in the power transmission sector, proposes to rework a new bidding process. (FE)
Finance companies that lend to firms building infrastructure projects may be permitted to raise funds from overseas banks and markets. (ET)
The department of public enterprises has asked all central public sector enterprises to put in place an in-house energy audit team to give more focus to energy conservation measures. (ET)
Finished steel products imports increased by 40% qoq in March 2009. (ET)
Indian corporates have raised a total of US$452mn through external commercial borrowings during February 2009. (FE)
The second container terminal at the Chennai port, built by PSA-SICAL consortium at an estimated cost of Rs4.95bn, will become operational from May 1, 2009. (FE)
The shoe that fits one person pinches another; there is no recipe for living that fits all cases.
In the market too there is no recipe perfect for all cases. The same issues, usually bank-related, are turning from headwinds to tailwinds and vice-versa at regular intervals. After a long sprint bulls may feel comfortable unlacing their shoes. Hopefully they need not chuck it at someone to prove a point.
The key indices should soften a little today after the recent spurt. Global stocks have eased amid renewed skepticism about a quick recovery in the financial markets and therefore in the global economy.
Bad news, which was getting ignored all this while, seems to have caught global attention once again. Consider this: Alcoa has swung to a loss on 'historic' aluminum price fall. RBS is to cut 9,000 back office jobs. Eurozone Q4 GDP contracts more than expected. Concerns about the health of the western banking system are still in place. A top European central banker warns that G20 measures could stoke inflation.
In Asia, the Reserve Bank of Australia cut interest rates to a record low 3% and the Bank of Japan unveiled steps to free up credit by lending against a wider range of municipal bonds. Ireland will unveil an emergency budget with the government under intense pressure to tame the deficit after three attempts in nine months.
Back home, we have earnings and elections to grapple with in the near term. Both these events are likely to throw up a few nasty surprises which could be difficult for the market to stomach. In short, a swift recovery remains a pipe dream as of now which means one should take off stocks that pinch one’s portfolio.
US stocks slid for a second straight day on Tuesday after investors from George Soros to Marc Faber said that the rebound in world equities will falter as the market braces for a seventh successive quarter of declining earnings. The dollar rose against most currencies, oil fell and Treasuries gained.
The Dow Jones Industrial Average lost 186 points, or 2.3%, to 7,789.56. The S&P 500 index dipped 20 points, or 2.4%, to 815.55. The Nasdaq Composite index slid 45 points, or 2.8%, to 1,561.61.
After the close, Alcoa reported a first-quarter loss of 59 cents per share, wider than the 56 cents per share loss analysts were expecting. The aluminum maker earned 44 cents a year earlier.
Alcoa's revenue fell to $4.1 billion from $7.375 billion a year ago, versus forecasts for a steeper drop to $4.077 billion. Alcoa is typically the first Dow component and major company to report results. Alcoa shares fell 3% in extended-hours trading after rising just after the results.
Stocks have been retreating this week in the aftermath of a swift rally that propelled the major gauges more than 20% off multi-year lows. Stocks were vulnerable to a pull back anyway, following a big four-week rally that saw all three major gauges jump at least 20%.
Since bottoming at a 12-year low on March 9, the Dow has rallied 21%, its best four-week run since 1933, when it added 31%. The advance was driven in part by optimism that the economy and financial sector are close to stabilizing.
On Monday, a breakdown in merger talks between IBM and Sun Microsystems weighed on techs. Bank shares were bludgeoned after an influential analyst said the default rate on loans will approach the percentages seen during the Great Depression.
General Motors (GM) is reportedly preparing for the possibility of filing for bankruptcy, if it can't meet the government's reorganizing deadline of June 1. The news dragged on investor sentiment and sent GM shares down by 12%. Healthier rival Ford lost 7.5%.
GM is still trying to get concessions from its unions and creditors ahead of the Obama administration deadline, but it is also in "intense and earnest" preparations for a possible filing. GM and privately-held Chrysler have both received billions in government aid.
Separately, GM said that it has paired with Segway to create a two-wheeled, two-seat, electrically powered vehicle for city navigation. Project P.U.M.A. - Personal Urban Mobility and Accessibility - was unveiled on Tuesday in New York.
Chevron, Exxon Mobil and other oil services stocks slipped along with the price of oil, which closed below $50 a barrel. Meanwhile, a number of bank stocks weakened for a second straight session. The KBW Bank index lost 3.5%.
Borrowing costs slipped, following a one-month advance, the Federal Reserve said on Tuesday. Consumer credit fell 3.5% in February after rising 1.8% in January. Economists thought it would fall 1.5%.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 2.75% from 2.87% on Monday.
Lending rates were little changed. The 3-month Libor rate fell to 1.15% from 1.16% on Monday. The overnight Libor rate inched higher to 0.28% from 0.27% Monday. Libor is a bank-to-bank lending rate.
In currency trading, the dollar gained versus the euro and the yen.
US light crude oil for May delivery fell $1.90 to settle at $49.15 a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $10.50 to settle at $883.30 an ounce.
Stocks in Europe lost ground on Tuesday as investors turned nervous ahead of the first-quarter earnings season. Paced by the financial sector, which is most leveraged to either an economic upswing or a continued recession, the pan-European Dow Jones 600 index dropped 0.8% to 183.46. It's the third session in a row the index has declined.
The UK-based FTSE 100 index closed down 1.6% at 3,930.52, while Germany's DAX 30 index dropped 0.6% to 4,322.50 and the French CAC-40 index fell 0.9% to 2,902.31.
It was the fourth trading session of gains for the Indian markets with the Nifty index managing to close above the 3,250 levels. Rally was not only in India, but was also seen across US, Asia and Europe. The ongoing upswing stems mainly from optimism about the latest efforts to unfreeze the US credit markets.
Finally, the BSE Sensex advanced 186 points to close at 10,534 and the NSE Nifty was up 45 points at 3,256.
Among the 30-components of Sensex, 22 stocks ended in positive terrain and 8 stocks ended in the red. M&M, RCom, L&T, HDFC, Reliance Infra, Hindalco and Tata Steel were among the major gainers. Among the top losers were ACC, ITC, Ranbaxy, Grasim, HUL and SBI.
Shares of Pantaloon ended marginally higher by a 0.5% to Rs169 after report stated that the company is in talks for stake sale in subsidiaries like Big Bazaar and Food Bazaar. The scrip touched an intra-day high of Rs173 and a low of Rs161 and recorded volumes of over 0.1mn shares on BSE.
Shares of Ambuja Cements slipped by 2% to Rs73 after reports stated that the company which is setting up two grinding units at Bhatapara in Chattisgarh and Rauri in Himachal Pradesh, said project cost would go up by 10% from earlier estimates. The scrip touched an intra-day high of Rs76 and a low of Rs71 and recorded volumes of over 0.7mn shares on BSE.
Shares of 3iInfotech gained by 2.5% to Rs35 after reports stated that the company would triple its network of IT Kiosks in rural areas to over 12,000 by the year end. The scrip touched an intra-day high of Rs35.8 and a low of Rs34.2 and recorded volumes of over 0.2mn shares on BSE.
Shares of IVRCL Infra gained by 5% to Rs154 after the company announced that it won order worth Rs3.59bn. The scrip touched an intra-day high of Rs161 and a low of Rs149 and recorded volumes of over 0.7mn shares on BSE.
Shares of Satyam Computer rallied by over 13% to Rs45. Reports stated that L&T, Tech Mahindra, Wilbur Ross and Cognizant reached the final stages to acquire Satyam.
The company also announced that it modified the bidding process to ensure if no bid comes within at least 90% of the highest bid the highest bidder would be declared the final buyer. The scrip touched an intra-day high of Rs46.8 and a low of Rs41.2 and recorded volumes of over 20.8mn shares on BSE.
Shares of Ashok Leyland declined by 2% to Rs18.5 after the company reported a fall of 52.2% in commercial vehicle sales at 5,112 units in March this year compared to same month in 2008. The scrip touched an intra-day high of Rs19.2 and a low of Rs17.9 and recorded volumes of over 0.7mn shares on BSE.With the Nifty index ending above the crucial 3,250 mark, bulls would look to carry on the momentum. The 200 DMA stands at 3450. But, a truncated trading week coupled with the anxiety over earnings and elections might just halt the bulls
Gold and silver both gain as earning season kicks off
Bullion metal pared all its early losses and ended higher on Tuesday, 07 April, 2009. Prices rose as fell as earnings seasons kicked off today fuelling the recession concerns once again thereby increasing the appeal of the precious metal. The stronger dollar also added to the selling pressure.
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 April delivery rose $10.7 (1.2%) to close at $882.2 an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 3%. Year to date, gold prices are lower by 0.1%.
For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (15.8%) since then.
On Tuesday, Comex silver futures for May delivery rose 10 cents (0.8%) to end at $12.21 an ounce. Year to date, silver has climbed 8.1% this year. For 2008, silver had lost 24%.
In the US market today, stocks registered losses for second straight day. Alcoa is expected to report its earnings after market closes today.
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 June delivery closed higher by Rs 176 (1.2%) at Rs 14,297 per 10 grams. Prices rose to a high of Rs 14,321 per 10 grams and fell to a low of Rs 14,151 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed Rs 155 (0.8%) higher at Rs 20,502/Kg. Prices opened at Rs 20,400/kg and rose to a high of Rs 20,590/Kg during the day's trading.
Prices stay below $50
Oil prices fell for third straight day on Tuesday, 07 April, 2009. Prices continued to fall as traders anticipated that tomorrow's weekly inventory report by the energy department will show more than expected build up in crude inventories.
On Tuesday, crude-oil futures for light sweet crude for May delivery closed at $49.15/barrel (lower by $1.9 or 3.7%) on the New York Mercantile Exchange. During intra day trading, it dropped to a low of $48.89. Last week, crude ended higher by 0.3%.
Crude ended March trading up 10.9%. It rallied 11.3% in the first quarter. For the month of February, crude prices had ended higher by 1.5%.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 68% since then. Year to date, in 2009, crude prices are higher by 8.3%. On a yearly basis, crude prices are lower by 50%.
Brent crude oil for May settlement dropped $1.02 (2%) to end the session at $51.22 a barrel on London's ICE Futures Europe exchange.
Traders expected today that tomorrow's inventory report might show that crude inventories climbed up by 1.5 million barrels last week.
Also at the Nymex on Tuesday, May-reformulated gasoline fell 1% to $1.4604 a gallon and May heating oil dropped 2% to $1.3903 a gallon.
May natural-gas futures dropped 4.6% to $3.56 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 2,495/barrel, lower by Rs 27 (1.07%) against previous day's close. Natural gas for April delivery closed at Rs 181.1/mmbtu, lower by Rs 5.07/mmbtu (3.05%).