Wednesday, June 17, 2009
Across-the-board selling leads to an unabated slide in the market with the Sensex and Nifty shedding 2.91% and 3.58% respectively for the day.
The market took a sharp dip after an initial surge and continued moving southwards, as shares across sectors came under the grip of relentless selling pressure
The session was marked with extreme volatility. After a firm opening at 14979, around 21 points above its previous close of 14958, the markets failed to capitalise on the gains and drifted into the negative territory in the afternoon. Heavyweights as well as realty, metal, public sector undertakings, oil & gas and capital goods stocks contributed to the fall and dragged the index to an intra-day low of 14447. The Sensex finally ended 2.91% or 435 points lower at 14523, while Nifty pared 3.58% or 162 points to 4356.
Market breadth, the number of advancing scrips to declining ones, was extremely negative. Of the 2,751 stocks traded on the BSE, where 1,990 stocks declined only 686 stocks advanced. Seventy five stocks ended unchanged. Among sectoral indices, BSE Realty shed 5.90% followed by BSE Metal (down 5.63%), BSE PSU (down 4.29%) and BSE Oil & Gas (down 4.26%).
Of the 30 stocks of the Sensex basket, only one stock-- Tata Power rose 0.03% at Rs1,181.25--closed positive. Among major losers, Tata Steel tumbled 7.52% at Rs417, Tata Motors plunged 6.28% at Rs205.10, JP Associates slumped 6.28% at Rs205.10, Reliance Communications dropped 5.92% at Rs309, DLF shed 5.66% at Rs333.30, ONGC lost 5.36% at Rs1,064.25 and Hindalco Industries declined 5.25% at Rs93.80. Other front-line stocks were down by 1-4% each.
Over 3.20 crore shares of Reliance Natural Resources changed hands on the BSE followed by Cals Refineries (2.94 crore shares), Unitech (2.70 crore shares), Satyam Computer Services (2.36 crore shares) and IFCI (1.98 crore shares).
To offer 92.65 lakh shares
Mahindra Holidays & Resorts India, a unit of Mahindra & Mahindra, will launch its initial public offer (IPO) on 23 June 2009. Bidding will remain open till 26 June 2009.
The company plans to sell 92.65 lakh shares, representing 11% of the post-issue paid up capital. The price-band of the book-built issue will be declared two days before the issue opens.
The IPO proceeds will be utilised in expanding current properties and adding five new properties at Kumbalgarh in Rajasthan, Kadambakkam in Tamil Nadu, Binsar in Uttaranchal, Theog in Himachal Pradesh, and Tungi in Maharashtra.
Mahindra Holidays & Resorts had raised nearly Rs 120 crore by selling 2% stake to State Bank of India and 1% stake to Jacob Ballas India Fund in February 2008. The transaction had taken place at Rs 479 a share.
Mahindra Holidays & Resorts India runs the shared vacation home business, Club Mahindra Holidays. India's largest tractor maker by sales Mahindra & Mahindra holds 93.64% in the company.
The Sensex today opened flat at 14,978, up 20 points. However within a fraction of a second the index slipped into the negative and exhibited sideways movement in morning trades.
The index rebounded into the green and touched a high of 14,996. The Sensex however failed to hold gains owing to negative cues from the global markets and slipped deeper into the red. Intense selling was witnessed in the metal and realty stocks.
The index slipped to a low of 14,447, down 549 points from the day's high. The volatile Sensex finally ended at 14,523, down 435 points.
The BSE Realty and the Metal indices were the major laggards. The Realty index was down 6% at 3,386 and the Metal index slipped 5.6% to 11,288.
The market breadth was extremely negative - out of 2,751 shares traded, 685 advanced, 1,990 declined and 76 were unchanged today.
Tata Steel and Tata Motors plunged 7.5% each to Rs 417 and Rs 324, respectively.
Jaiprakash Associates and Reliance Communications dropped 6% each to Rs 205 and Rs 309, respectively.
DLF, ONGC and Hindalco shed 5-6% each to Rs 330, Rs 1,064 and Rs 94, respectively.
Sterlite, NTPC, Wipro, Ranbaxy and Reliance declined 3-4% each to Rs 603, Rs 214, Rs 378, Rs 277 and Rs 2,051, respectively.
Larsen & Toubro, Grasim, ACC, Mahindra & Mahindra, BHEL, SBI, TCS and ITC were down 2.5-4% each.
OTHER PROMINENT LOSERS...
Hindustan Construction Company plunged over 10% to Rs 96. It was followed by Lanco Infrastructures, Jet Airways, Indian Hotels, Mangalore Refineries & Petrochemicals, Bhushan Steel, United Spirits, India Infoline, IDBI and Rolta India declined 8-9% each.
...AND THE GAINERS
Castrol India gained over 5% at Rs 366. It was followed by EIH, Piramal Healthcare, Cadila Healthcare, Jain Irrigation, Nestle, Central Bank, Max India, Lupin and Bajaj Auto up 1-4% each.
VALUE & VOLUME TOPPERS
Reliance topped the value chart with a turnover of Rs 362.05 crore. It was followed by Reliance Natural Resources (Rs 321.73 crore), Reliance Infrastructure (Rs 266.23 crore), Unitech (Rs 239.03 crore) and Reliance Capital (Rs 231.32 crore).
Reliance Natural Resources led the volume chart with trades of around 32 million shares. It was followed by Cals Refineries (29.45 million), Unitech (27 million), Satyam Computers (23.70 million) and IFCI (19.84 million).
DLF June 2009 futures at discount
Nifty June 2009 futures were at 4340, at a discount of 16.15 points as compared to the spot closing of 4356.15. Turnover in NSE's futures & options (F&O) segment surged to Rs 79,470.14 crore from Rs 68,737.85 crore on Tuesday, 16 June 2009.
DLF June 2009 futures were at discount at 331.40 compared to the spot closing of 333.20.
Unitech June 2009 futures were near spot price at 84.15 compared to the spot closing of 84.
Jaiprakash Associates June 2009 futures were near spot price at 205 compared to the spot closing of 205.15.
In the cash market, the S&P CNX Nifty lost 161.65 points or 3.58% at 4356.15.
Sensex, Hang Seng secure losses while Nikkei, Shanghai make additions
Stock market in Asian region witnessed another session of losses on Wednesday, 17 June 2009, as investors continued heavy selling amid renewed concerns over the state of global economy.
The much-hyped Brazil, Russia, India, and China (BRIC) summit failed to deliver little surprise to the markets. The statement called for a stable, predictable and more diversified currency system, and emerging economies to have greater voice and representation in international financial institutions. However, there is no mentioning of the possibility of lessening of dollar's influence, nor anything about investing BRIC’s reserve in each other's bond.
In addition, the regional markets tried to echoed the sentiments on Wall Street which tumbled down after the fall in U.S. industrial output on the back of a sharp drop in capacity utilization.
On Wall Street, the major indices extended their losses by more than 1% Tuesday, as better than expected housing and inflation data were offset by unimpressive gauges on output and more of the same economic concerns. The Dow Jones Industrial Average finished 107.46 points lower, or 1.3%, at 8504.67, while the S&P 500 was off by 11.75 points, or 1.3%, at 911.97. The Nasdaq fell 20.20 points, or 1.1%, to 1796.18.
On the economic front, the Department of Commerce reported that housing starts and permits increased more than expected in May, offering signs of improvement in the sector. There were 532,000 new housing starts, up from 454,000 in April, while permits increased to 518,000 from 494,000.
But the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) declined a point to 15 in June as homebuilders faced the recent upturn in interest rates and the lack of credit for housing production loans, according to a report earlier in the week.
Meanwhile, the producer price index, which measures prices of goods at the wholesale level, ticked up 0.2% in May. Excluding food and energy, it fell 0.1%. Other data, however, did little to excite investors. Capacity utilization fell from 69% to 68.3% in May, and industrial production fell 1.1% after a 0.7% decreases the month prior.
In the commodity market, crude oil traded little changed before a report forecast to show that crude supplies contracted for a second week in the U.S., the world’s largest energy consumer.
Crude oil for July delivery traded for $70.60 a barrel, 13 cents higher, on the New York Mercantile Exchange at 9:16 a.m. London time, after climbing as high as $71.28. The contract rose to a seven-month high of $73.23 on 11 June 2009.
Brent crude for August settlement was at $70.44 a barrel, 20 cents higher, on London’s ICE Futures Europe exchange at 9:13 a.m. London time.
Gold recovered a bit after felling for a fifth time in six days as the strengthening dollar reduced demand for the precious metal as a haven investment. Gold for immediate delivery was at $936.50 an ounce at 1:53 p.m. in Singapore after declining as much as 0.4% to $931.37 an ounce earlier.
In the currency market, US dollar bounded in tight range against major currencies in general. Japanese yen weakens mildly after following rebound in Asia stocks but the depth of the retreat is so far shallow. The developments suggest that some more sideway trading will likely be seen in near term.
The Japanese yen strengthened against its major counterparts on Wednesday. The Japanese currency quoted at 96.48 against greenback.
The Hong Kong dollar was trading at HK$ 7.7504 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 trade, the Australian dollar closed slightly higher on Wednesday, despite investors shying away from the risk sensitive currency during most of the local session. At the local close, the dollar was trading at $US0.7993, up slightly from Tuesday's close of $US0.7944. During the domestic session, the unit moved between $US0.7877 and $US0.7992.
In Wellington trades, the New Zealand dollar held around US63c in mixed trading today as investors globally continued to debate the speed and timing of an economic recovery.
The NZ dollar dipped briefly after Reserve Bank Governor Alan Bollard said, "If markets are buying the New Zealand dollar on the expectation of a strong recovery they may end up being disappointed".
The comment was seen as an attempt to talk down the NZ dollar but it didn't work for long. At the regional closing, the NZ dollar was buying US63.05c from US63.13c I the morning. It climbed from a low point around US62.40c early yesterday afternoon.
The South Korean won ended at 1,259.8 won to the dollar, down 2.3 won from Tuesday's close, as demand grew for safer bets amid falling local stocks
The Taiwan dollar weakened slightly against the greenback. The Taiwan dollar fell against the US dollar as it closed trading lower at NT$ 32.8890, down by NT$ 0.040 from Tuesday’s close of NT$32.8850.
Coming back in equities, Asian share markets finished mostly lower, as investors remained wary of the size of recent stock market gains, but trading ended higher in Tokyo as fresh talk about an improving economy helped rescue the market from a third day of losses.
In Japan, the stock index surged, shrugging off negative overnight cues from Wall Street as investors chased bargain following yesterday sell off. Shares of metal products, non-ferrous, iron & Steel, and oil & coal products led the rally on bottom fishing amid hopes higher prices of copper and nickel might boost profit. Rubber products and paper makers surged on expectation the decline in oil prices would trim manufacturing costs.
At the closing bell, the Nikkei 225 Stock Average index rebounded 87.97 points, or 0.9% to 9,840.85, while the broader Topix index rose 8.27 points, or 0.9% to 923.
On the economic front, the Bank of Japan on Tuesday retained its uncollateralized overnight call rate at 0.1%. Commenting on the economic assessment, BOJ stated that amid continuing weakness in economic conditions, exports and production are beginning to level out against the backdrop of progress in inventory adjustments.
In Mainland China, stock index reversed early losses to finish higher, with broadcasted bottom fishing across the board. Properties led the rally, with strong gains in China Vanke on signs of strong real estate sales.
Financials surged on bargain hunting after President Hu Jintao said Beijing’s stimulus is showing results. Meanwhile energy shares zoomed as crude oil heading toward eight month high in Asian trading. Shares of pharma companies rose on speculation that the spread of the swine flu pandemic would drive sales.
The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, jumped 1.2%, or 34.1 points, to 2,810.12, while the Shenzhen Component Index climbed up 2.25%, or 243.29 points, to 11,040.49.
On the economic front, Chinese President Hu Jintao said on Tuesday that China would provide a 10-billion-U.S. dollar credit loan to member states of the Shanghai Cooperation Organization (SCO) to shore up their economies amid the global financial crisis.
In Hong Kong, the stock market tumbled, enduring loses for third consecutive day, with broad based slumps in properties and commerce and industry issues on weaker commodity prices and worries that the economic recovery's pace might not be as strong as initially hoped.
The Hang Seng Index tumbled 80.908 points, or 0.45%, to 18,084.6, while the Hang Seng China Enterprise Index melted 16.17 points, or 0.15% to 10,700.15.
In Australia, the stock market tumbled; extending loosing streak for third consecutive day on tracking falls on Wall Street overnight and weaker commodity prices. Shares of miners, materials and resources, energy dragged down the market after pullback in commodities and crude oil prices amid concerns about the pace of any economic recovery.
At the closing bell, the benchmark S&P/ASX200 index stumbled 58.4 points, or 1.47%, to 3,904.1, while the broader All Ordinaries tumbled 53.7 points, or 1.36%, to 3,904.2.
In New Zealand, stock market dipped down in line with most of the Asian markets that fell following a dull day on the Wall Street overnight. The NZ benchmark index registered a fall for the second consecutive session in a row. Asian share markets were mostly lower as uncertainty about the global economy hampered investor sentiments. The NZX50 fell 0.29% or 8.115 points to 2778.04. The NZX 15 was down 0.41% or 20.659 points to close at 5054.77.
On the economic front, speaking to a Wellington business, Reserve Bank Governor Alan Bollard said the global economy appeared more stable, with growth forecasts for trading partners appearing to have finished their freefall. He expects the economy to begin growing again toward the end of the year, but the recovery is likely to be slow and drawn out. He also said that business activity is near its low point, but any recovery could be ‘erratic'.
In South Korea, stocks closed lower as sliding U.S. markets raised fears that an economic recovery will take more time than expected, sparking sell offs in steel and financial shares. The benchmark Korea Composite Stock Price Index (KOSPI) slid 7.98 points to 1,391.17.
In Singapore, the stocks index erased, extended losing streak for third day, on tracking falls on Wall Street overnight and other Asian bourses and weaker commodity prices as investors worried that the economic recovery's pace might not be as strong as initially hoped. Lower commodity prices and valuation concerns following recent run up also impacted market sentiment. The blue chip Straits Times Index eased 16.71 points, or 0.73%, to 2,271.45.
In Taiwan, stock market broadened its losses for the fourth consecutive session as semiconductor and tourism sector lead the sectoral index dragging the index lower. In the opening trade, the Taiex tried to buck the negative lead from Wall Street with good gains, however it couldn’t sustain it, turning it lower towards the end.
The main Taiex share index stretched its downward trend for another session as the Taiex index fell 24.90 points or 0.40%, closing the day at 6195.91, another lowest closing since 30 April 2009 when market closed at 5992.57.
In Philippines, the stock market nose-dived for the second consecutive day, closing nearly 3% lower, as investors remained cautious about the country’s economic prospects. Moreover, the composite index also tracked the overnight losses on Wall Street. At the final bell, the benchmark index PSEi plummeted 2.88% or 72.42 points to 2,441.75, while the All Shares index fell 2.25% or 36.39 points to 1,575.87.
On the economic front, Philippines recorded a balance of payments deficit of $55 million in May after a surplus of $466 million in April. The cumulative surplus in the five months to May has reached $2.143 billion. The BSP has predicted a BOP surplus of $700 million this year. The overall BOP surplus in 2008 fell to a four-year low of $89 million after a record $8.58 billion in 2007.
As of March 2009, the National Government debt increased by 1.5 % or P65 billion from the end February 2009 level. Total outstanding debt stood at P4.229 trillion of which, P1.842 trillion or 44% is owed to foreign creditors and P2.387 trillion or 56% to domestic creditors. The domestic debt increased by P93 billion or 4.1% from the recorded end February 2009 level arising from the net issuance of government securities made by NG.
In India, the key benchmark indices tumbled in the last one-hour of trade tracking weak stocks. The BSE 30-share Sensex went down 435.07 points, or 2.91%, to 14,522.84. The S&P CNX Nifty declined by 161.65 points or 3.58% to 4,356.15.
Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.30% or 3.22 points to 1070.90 while Indonesia’s Jakarta composite index ended the day lower at 2024.96.
In other regional market, European shares edged lower; with mineral extractors declining as investors fretted about the economic backdrop and British supermarket group J. Sainsbury was under pressure after announcing that it will ask shareholders for capital. The U.K. FTSE 100 index fell 0.3% to 4,317.62, the German DAX 30 index lost 0.5% to 4,868.52 and the French CAC-40 index fell 0.5% to 3,198.85.
Looking ahead, events in UK will be the main focus in the European session today. The number of UK claimants is expected to rise in May. Bank of England minutes will be released. Other data include Swiss ZEW and Euro zone trade balance.
In US, we have a data release showing the Consumer price index that is expected to rise in May as driven by rally in retail gasoline price. Gasoline price has surged 10.6% in May and after seasonal adjustment, the gasoline component of CPI should have risen 4%. Other components remained soft but the pace of decline probably slowed down.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
17/6/2009 532057 ABHINAV CAP RAJESH NANDU S 55816 94.00
17/6/2009 532919 ALLIED COMP PRAVIN DEEPSINH CHAVDA B 1272976 0.60
17/6/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA B 69107 27.32
17/6/2009 531223 ANJANI SYNTH KAPILABEN RASIKLAL PANDYA B 54500 27.45
17/6/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA S 57515 27.48
17/6/2009 532995 AVON CORP BASMATI SECURITIES PVT LTD B 90000 9.50
17/6/2009 532995 AVON CORP S V ENTERPRISES B 126477 9.92
17/6/2009 532995 AVON CORP S V ENTERPRISES S 122854 9.58
17/6/2009 590061 BRUSHMAN IND GOURAV GUPTA B 79846 15.21
17/6/2009 590061 BRUSHMAN IND SAVINA JAIN B 100000 13.75
17/6/2009 590061 BRUSHMAN IND GOURAV GUPTA S 79846 15.03
17/6/2009 590061 BRUSHMAN IND ARISAIG PARTNERS (ASIA) PTE LTD S 272000 14.21
17/6/2009 531682 CAT TECHNOL S V ENTERPRISES B 334742 6.56
17/6/2009 531682 CAT TECHNOL S V ENTERPRISES S 383919 6.51
17/6/2009 532760 DEEP INDS HITESH SHASHIKANT JHAVERI B 139781 140.70
17/6/2009 532760 DEEP INDS ARCADIA SHARE & STOCK BROKERS PVT. LTD S 117303 140.60
17/6/2009 532760 DEEP INDS HITESH SHASHIKANT JHAVERI S 167924 140.66
17/6/2009 511636 DJS STOCK SH PRAKASH DEVIDASH SEC LTD S 70700 36.29
17/6/2009 532022 FILAT FASH MUKESH DHIRAJLAL MAHETALIA B 44700 108.56
17/6/2009 532022 FILAT FASH MUKESH DHIRAJLAL MAHETALIA S 43775 108.82
17/6/2009 532836 GREMAC INFRA SHRI DURGA FINVEST PRIVATE LIMITED S 100000 38.40
17/6/2009 522059 INDAGE VIN HITESH SHASHIKANT JHAVERI B 87465 103.35
17/6/2009 522059 INDAGE VIN HITESH SHASHIKANT JHAVERI S 111931 103.79
17/6/2009 531807 ING VYSYA BK MORGAN STANLEY MAURITIUS COMPANY LIMITED S 748666 173.00
17/6/2009 524826 JUPITER BIOS CLSA (MAURITIUS) LIMITED S 182169 70.81
17/6/2009 532081 K SERA SERA OUDH FINANCE & INVESTMENT PVT LTD B 358110 15.00
17/6/2009 531731 KUVAM INTL UMA KANSAL S 25000 7.01
17/6/2009 511728 KZLEASING YOGIRAJ GIRDHARLAL PANDYA S 17000 11.63
17/6/2009 512047 NATRAJ FIN SAMRIDDHI COMMOTRADE PRIVATE LIMITED B 34000 44.00
17/6/2009 512047 NATRAJ FIN FIRST CHOICE COMOTRADE PRIVATE LIMITED B 30000 44.00
17/6/2009 512047 NATRAJ FIN N T MARKETING PVT LTD B 25000 44.00
17/6/2009 512047 NATRAJ FIN VIJAY BABULAL KHANDELWAL S 89000 44.00
17/6/2009 526753 ROSELABS LTD ALPHA GRAPHIC INDIA LTD. S 57286 10.83
17/6/2009 531898 SANGUINE MD SETU SECURITIES PVT LTD B 123608 5.24
17/6/2009 531898 SANGUINE MD SANDIP BHARATBHAI RAVAL B 109160 5.39
17/6/2009 531898 SANGUINE MD HEMANSHU JADHAV S 136999 5.23
17/6/2009 531898 SANGUINE MD FORSEE FINANCIAL AND CONSULTANCY SERVICES PVT LTD S 200000 5.31
17/6/2009 531898 SANGUINE MD VARUN NAGINBHAI PATEL S 106440 5.23
17/6/2009 531898 SANGUINE MD ANGEL INFIN PRIVATE LIMITED S 294873 5.36
17/6/2009 500285 SPICEJET LTD ANGEL INFIN PRIVATE LIMITED B 1736870 21.24
17/6/2009 500285 SPICEJET LTD ANGEL INFIN PRIVATE LIMITED S 1299370 21.02
17/6/2009 530017 STANDARD IND PRAMOD PREMCHAND SHAH B 446504 20.75
17/6/2009 530017 STANDARD IND DEUTSCHE SECURITIES MAURITIUS LIMITED S 500000 20.75
17/6/2009 523455 TECHTRAN POL NIRMAL INVESTMENTS B 70000 11.38
17/6/2009 523455 TECHTRAN POL PARESH KANJI SONI S 75051 11.40
17/6/2009 531390 UPSURGE INVS NEW ERA ADVISORS PVT LTD B 140000 14.25
17/6/2009 531390 UPSURGE INVS ASHOK DEVAKINANDAN BANSAL S 100000 14.25
17/6/2009 503657 VEER ENERGY VILPABENPRANAVBHAIVORA B 15000 270.00
17/6/2009 531874 VENUS VENT BESTO TRADECOMM PRIVATE L IMITED B 50000 49.88
17/6/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR S 49264 49.88
17/6/2009 531404 ZICOM ELE SE PUSHKAR BANIJYA LIMITED B 65000 85.78
17/6/2009 531404 ZICOM ELE SE SIDHANT FINANCIAL SERVICES PVT LTD S 64860 85.78
The domestic stock market closed on a deep red note on heavy selling pressures across the sectoral indices backed by the weak cues from the global markets. Though the market opened with a negative gap and managed to recover from the fall on the back of surge in the Chinese stocks. But the weak opening of the European markets do the damage that led the market to lost further grounds. However, the Chinese shares rose after the President Hu Jintao said that Beijing stimulus is showing results and China was determined to take the lead in emerging from the global economic crisis. From the sectoral front, the Realty, Metal Oil and Gas stocks were badly hit on heavy selling pressures across the counters.
The key benchmark indices extends its losses further in the final hours of the session after a gap down opening. Lack of favoring cues from the global as well as domestic arena, the domestic stock markets remained on the sellers radar through out the trading session. In the global arena, the US Markets closed with losses despite encouraging housing data. The trading started with a positive movement across the broader level however the below expected PPI data along with lack of buying sentiments pulled the markets towards the southward. Housing starts for May increased 17.2% month-over-month to an annualized rate of 532,000 and building permits inclined by 4.0% to an annualized rate of 518,000. Both numbers were encouraging and better than expected.
On the other hand, the British unemployment rate in the three months ending in April 2009 shot up to 7.2%, up from 6.5% in the three months to January, the Office for National Statistics reported Wednesday. In the three months ended April, the number of unemployed totaled stood at 2.26 millions, a rise of 232,000 from the previous three-month period and a rise of 605,000 from the same period a year earlier. Moreover, the seasonally-adjusted number of persons claiming jobless benefits grew 39,300 in May.
Among the Sensex pack 29 stocks ended in negative territory while 1 closed in negative. The market breadth indicating the overall health of the market remained weak as 1,990 stocks closed in red while 686 stocks closed in red while 75 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 435.07 points or 2.91% at 14,522.84 and NSE Nifty fell by 161.65 points or 3.58% at 4,356.15. The BSE Mid Caps and Small Caps closed with losses of 205.09 and 224.82 points at 5,021.07 and 5,786.54. The BSE Sensex touched intraday high of 14,996.39 and intraday low of 14,447.02.
Losers from the BSE Sensex pack are Tata Steel (7.52%), Tata Motors (7.36%), JP Associates (6.28%), Reliance Communication (5.92%), DLF (5.66%), ONGC (5.36%) and Hindalco Inds (5.25%).
Gainer from the BSE Sensex pack is Tata Power (0.03%).
On the global markets front the Asian markets which opened before the Indian market, closed mixed. Strait Times, Seoul Composite, Hang Seng and Taiwan Weighted closed lower by 0.73%, 0.57%, 0.45% and 0.40% at 2,271.45, 1,391.17, 18,084.60 and 6,195.91 respectively. While Japan’s Nikkei closed up by 0.90% at 9,840.85. The Bank of Japan (BoJ) on Wednesday said that Japan’s economy in the coming months is "likely to show clearer evidence of leveling out over time," according to the central bank''s June report of Recent Economic and Financial Developments. Moreover, the bank also reiterated the comments made following the monetary policy meeting Tuesday that the nation''s economic conditions have “begun to stop worsening”.
European markets which opened after the Indian market are trading in negative. In Frankfurt the DAX index is trading lower by 1.08% at 4,838.05 and in London FTSE 100 is trading down by 1.01% at 4,284.66.
The BSE Realty index dropped (5.90%) or 212.25 points to close at 3,386.50. Main losers are Phoenix Mill (8.30%), India Bull Real (7.44%), HDIL (6.65%), Mahindra Life (6.33%), DLF (5.66%) and Unitech (5.57%).
The BSE Metal index plunged (5.63%) or 672.88 points at 11,288.50. Scrips that mostly lost are Tata Steel (7.52%), Ispat Industries (7.40%), JSW Steel (7.36%), Welspun Gujarat Stahl (6.86%), Sesa Goa (6.58%) and Hindalco Industries (5.25%).
The BSE Oil and Gas index ended lower by (4.26%) or 423 points at 9,514.37 as Aban Offshore (6.37%), RNRL (5.37%), ONGC (5.36%), HPCL (5.12%) and RPL (4.42%) ended in positive territory.
The BSE Capital Goods index fell (3.95%) or 500.92 points to close at 12,176.65. Losers are Reliance Industrial Infra (9.08%), Everest Kanto (6.94%), Lakshmi Machine Works (6.59%), Alstom Project (5.37%), Punj Lloyd (5.49%) and Praj Industries (5.48%).
The BSE Power decreased (3.32%) or 99.30 points at 2,892.22. Losers are Suzlon Energy (6.18%), Reliance Power (5.59%), Torent Power (4.94%), NTPC (4.68%) and GVK Power (4.13%).
The BSE Consumer Durables index declined (3.24%) or 96.72 points to close at 2,892.31. Losers are Videocon Industries (6.65%), Gitanjali Gems (6.06%), Rajesh Export (4.66%), Blue Stat Ltd. (2.35%) and Titan Industries (0.91%).
The BSE Auto index decreased (2.49%) or 120.38 points at 4,718.81. Losers are Tata Motors (7.36%), Exide Industries (4.43%), Bharat Forge (3.67%) and Mahindra & Mahindra (3.27%).
Sobha Developers Ltd inched up 0.59% to close at Rs222.55. The company has accorded to the following at the Extra Ordinary General Meeting (EGM) of the Company held on June 17, 2009- 1. Infusion of additional capital up to Rs 1500 Crores by further issue of securities pursuant to Section 81 (1A) of the Companies Act, 1956. 2- Increasing the limit of Foreign Institutional Investors investment in the equity shares of the company up to 100% of the equity Share capital of the Company
Kavveri Telecom Products Ltd dipped 4.99% to close at Rs60.90. The company has informed that the Board of Directors of the Company at its meeting held on June 17, 2009, has approved the issue of Equity Shares of the Company on rights basis.
Syndicate Bank tumbled 5.60% to Rs72.45. The bank has informed that the Bank has on June 15, 2009 raised Tier II Capital to the extent of Rs 200.00 Crore through issue of Unsecured Non-Convertible Sub-ordinated Debt (eligible for Lower Tier II Capital). The issue opened and closed on June 15, 2009. The bond was priced at 8.49%p.a. payable annually.
Weak global cues weighed on investor sentiment today as the key benchmark indices tumbled in the last one hour of trade recording their steepest drop in seven weeks. Index heavyweight Reliance Industries (RIL) declined sharply. Heavy selling was also witnessed in realty, metal and capital goods stocks. The BSE 30-share Sensex plunged 435.07 points, or 2.91%. The market breadth turned very weak in late trade in contrast to a positive breadth earlier in the day.
Selling by foreign funds in last two days after the recent aggressive buying also dampened sentiment.
The market was volatile. After an early slide triggered by weak global cues, the market cut losses in morning trade. It weakened again later. The market recovered from lower level again later. It extended recovery in early afternoon trade as Chinese stocks surged. The market lost ground once again in afternoon trade on weak European markets. The market cut losses after it slumped to fresh intraday low in mid-afternoon trade. A sell-off gripped the market in the last one hour of trade.
European shares were lower on Wednesday, extending a losing run to four days, with miners in the doldrums. Key benchmark indices in France, Germany and UK were down by between 0.65% to 0.77%.
The British unemployment rate in the three months ending in April 2009 rose to 7.2%, up from 6.5% in the three months to January, the Office for National Statistics reported Wednesday. The number of unemployed totaled 2.26 millions in the three months ending in April, a rise of 232,000 from the previous three-month period and a rise of 605,000 from the same period a year earlier. The seasonally-adjusted number of persons claiming jobless benefits rose 39,300 in May, equal to 4.8% of the workforce, the ONS said. Economists had forecast a 65,000 rise to 4.9% of the workforce.
Asian stocks fell after fluctuating between gains and losses in choppy trade. Key benchmark indices in South Korea, Hong Kong, Singapore and Taiwan were down by between 0.4% to 0.73%.
But Chinese shares rose after President Hu Jintao said Beijing's stimulus is showing results and China was determined to take the lead in emerging from the global economic crisis. The Shanghai Composite Index rose 1.23%.
Japan's Nikkei rose 0.9%. The Bank of Japan (BoJ) said Wednesday that in the coming months, Japan's economy is "likely to show clearer evidence of leveling out over time," according to the central bank's June report of Recent Economic and Financial Developments. The BoJ also reiterated comments made following the monetary policy meeting Tuesday that the nation's economic conditions have "begun to stop worsening."
US index slipped into the red from green. Trading in the US index futures indicated Dow could fall 21 points at the opening bell today, 17 June 2009.
US stocks dropped on Tuesday, 16 June 2009 after Best Buy Co., the world's largest electronics retailer, posted disappointing sales. The Dow declined 107.46 points, or 1.3%, to 8,504.67. The S&P 500 index fell 11.75 points, or 1.3%, to 911.97, while the Nasdaq Composite Index fell 20.20 points, or 1.1%, to 1,796.18.
In economic data, a report showed that the US housing starts surged 17.2% in May 2009 after sliding 12.9% in April 2009. In other data, producer prices rose at a slower pace at 0.2% while core prices dropped 0.1%. Industrial production fell 1.1% in May 2009, after a 0.7% drop in April 2009.
In an interview with Bloomberg News, US President Barack Obama predicted a 10% unemployment rate even as he said the engines of an economic recovery have begun to turn. Obama is due to unveil his plan to revamp financial market regulation later today, 17 June 2009.
Back home, the data on advance tax payments reported on Monday for the first quarter of the financial year indicated the manufacturing sector may take more time to recover, while the financial sector remains buoyant. Indian companies paid around Rs 23,000 croe in advance tax for the first quarter of FY10, almost flat at the previous year's receipts. Among manufacturing sector companies, Reliance Industries' first installment of advance tax payments fell by 7.65 % to Rs 314 crore. Similarly, almost all Tata group companies, barring Tata Power, have paid lower advance tax.
Engineering major Larsen and Toubro has seen a 15.79 % rise, while Mahindra and Mahindra's advance tax payment went up by 25%.Engineering major Larsen and Toubro has seen a 15.79 % rise, while Mahindra and Mahindra's advance tax payment went up by 25%.The banking sector has put up a healthy show. State Bank of India is the highest taxpayer during the first quarter of 2009-10 with a 61.09% jump to Rs 1,068 crore. HDFC Bank has paid 16.28% higher advance tax to Rs 250 crore.
Even smaller banks such as IndusInd Bank (122 % increase to Rs 20 crore), Dena Bank (75 % rise to Rs 35 crore) and Yes Bank (42 % increase to Rs 27 crore) have followed the trend.
ACC posted 11% rise in advance tax to Rs 600 crore. India Oil Corporation paid advance tax of Rs 1.30 crore, HPCL paid advance tax of Rs 0.15 crore and BPCL paid advance tax of Rs 0.4 crore advance tax in Q1 June 2009. These three PSU OMC had paid nil advance tax in Q1 June 2008.
Foreign funds have sold shares in last two days after aggressively buying in the past three months or so. Foreign funds sold shares totaling Rs 943.20 crore on Monday and Tuesday.
FII inflow in June 2009 totaled Rs 5189 crore (till 16 June 2009). FII inflow in calendar year 2009 totaled Rs 26,508.40 crore (till 16 June 2009).
Finance Minister Pranab Mukherjee would present the Union Budget on 6 July 2009. The Railway Budget will be presented on 3 July 2009 and the Economic Survey would be presented on 2 July 2009.
Interest rates in India are falling thanks to ample liquidity in the banking system, low headline inflation and a loose monetary policy stance of the Reserve Bank of India. However, inflation may rise if oil and metal prices which have risen sharply in 2009 continue to rally.
As per recent reports, the government may cut interest rates on small savings schemes which currently yields 8% by 50 to 75 basis ponits. A rate cut in the small savings scheme rate will allow banks to bring down their lending rates.
Finance minister Pranab Mukherjee last Wednesday said banks should provide credit at reasonable rates to spur growth, saying cuts in official rates by the Reserve Bank of India had not been passed on.
Indian stocks have soared in the past three months on a view that ample global liquidity and a return of risk appetite will help India Inc help raise funds for expansion which in turn will boost corporate profits. India Inc has already raised almost Rs 5,000 crore from three qualified institutional placements (QIPs) so far in 2009 and announced plans to raise another Rs 20,000 crore.
Many equity analysts have been raising earnings forecasts of India Inc on hopes that the new government will provide thrust on the infrastructure sector and push economic reforms to boost growth. Citigroup expects the economy to grow by 6.8% in 2009/10 and 7.8% in 2010/11.
A comfortable victory last month for the Congress-led United Progressive Alliance (UPA) government in elections for the 15th Lok Sabha has raised hopes for economic reforms. Reforms virtually came to a halt in the past five years of the Congress-led alliance government at the centre, when the Communists provided support to the government from outside for a large part of the five-year term. Left parties are opposed to economic reforms.
Investor expectations from the new government are high. Investors expect financial sector reforms such as increase in the cap on foreign direct investment in insurance sector to 49%, from 26% at present.
Unveiling the agenda of the government, President Pratibha Patil in her speech addressed to a joint session of both houses early this month had indicated government's intension to divest stake in state-run firms. The government, however, intends to retain control over state-run firms and will continue to hold at least 51% stake. But some investors are concerned that the government's two key allies viz. the DMK and Trinamool Congress (TC) may oppose economic reforms.
Finance minister Pranab Mukherjee recently said there was a need to find ways to bring the economy back to higher growth path without increasing the fiscal deficit. He said the government would focus on infrastructure, agriculture and employment generating sectors to protect growth and jobs.
But rising metal prices is a cause of concerns for manufacturing companies as their raw material costs may shoot up.
The government's oil subsidy bill may remain high and it could continue to put pressure on the already high fiscal deficit if the government does not resort to decontrol of oil prices. However, the surging rupee against the dollar may mitigate the impact to some extent as India is a major importer of crude.
Prime Minister Manmohan Singh recently said India will achieve an economic growth of at least 7% this fiscal and promised more resources for areas like infrastructure and public services. He said India will be able a growth rate of 8-9%, even when the world grows at a lower rate.
The Prime Minister said the reason behind his optimism was that India's savings rate, which determines the money that can be deployed for development projects, was still high at 35% of gross domestic product (GDP).
The BSE 30-share Sensex was down 435.07 points, or 2.91%, to 14,522.84 its steepest drop since 28 April 2009. The Sensex rose 38.48 points at the day's high of 14,996.39 in afternoon trade. At the day's low of 14,447.02, Sensex fell 510.89 points in late trade.
The S&P CNX Nifty was down 161.65 points or 3.58% to 4,356.15, its steep slide since 30 March 2009. Nifty June 2009 futures were at 4340, at a discount of 16.15 points as compared to the spot closing of 4356.15. Turnover in NSE's futures & options (F&O) segment surged to Rs 79,470.14 crore from Rs 68,737.85 crore on Tuesday, 16 June 2009.
BSE clocked a turnover of Rs 6,932 crore higher than Rs 6,892.33 crore on Tuesday, 16 June 2009.
The Sensex has jumped 4,875.53 points or 50.53% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,362.44 points or 77.96%
Coming back to today's trade, the market breadth turned weak in late trade from a positive breadth earlier in the day. On BSE, 664 shares rose as compared with 1,992 that declined. A total of 79 shares remained unchanged. From the 30 share Sensex pack 29 stocks fell and one rose.
The BSE Mid-Cap index fell 3.92% and the BSE Small-Cap index slipped 3.74%. Both the indices underperformed the Sensex.
All the sectoral indices on BSE fell. The BSE Realty index (down 5.9%), the BSE Metal index (down 5.63%), the BSE PSU index (down 4.29%), the BSE Oil & Gas index (down 4.26%), the BSE Capital Goods index (down 3.95%), the BSE Power index (down 3.32%), the BSE Consumer Durables index (down 3.24%), underperfomed the Sensex.
The BSE Healthcare index (down 1.66%), %), the BSE IT index (down 1.96%), the BSE FMCG index (down 2.06%), the BSE Bankex (down 2.19%), the BSE TECk index (down 2.49%), the BSE Auto index (down 2.49%) outperformed the Sensex
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 4.24% to Rs 2,050.80 extending past two days' fall triggered by an unfavourable court ruling on gas sales. The Bombay High Court has directed RIL and Reliance Natural Resources (RNRL) to sign gas supply deal.
The court has asked RIL to supply 28 million metric standard cubic meters per day (mmscmd) of gas for 17 years at $2.34 per million metric British thermal unit (mmbtu) to RRNL. This is much lower than the price fixed by the government for gas sale from the RIL block in the KG basin at $4.2 million per metric British thermal unit. The lower gas sale price will result in lower-than-expected earnings from gas sales for RIL. Shares of RNRL fell 5.52%.
RIL's advance tax payment fell 7.65% to Rs 1,068 crore in Q1 June 2009 over Q1 June 2008.
In January 2009, the Bombay High Court had issued an interim order saying Reliance Industries was allowed to sell gas at $4.2 per million British thermal units from its KG-D6 block in the Krishna Godavari basin off eastern India, pending a final judgment.
Oil stocks fell as the dollar's bounce from its lows and persistent concerns about economic recovery helped pull oil back from its earlier peak above $72 a barrel. Cairn India fell 2.53%. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) fell 5.36% On the New York Mercantile Exchange, July crude settled down 15 cents, or 0.21 percent, at $70.47 a barrel on Tuesday. The fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.
PSU OMCs fell on reports the government is unlikely to raise auto fuel prices immediately. A hike in fuel prices will be considered only when the average crude price reaches $70 a barrel in a quarter. BPCL, HPCL and Indian Oil Corporation fell by between 1.73% to 5.12%. State-run oil marketing firms suffer revenue loss on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
Realty stocks fell on profit taking after the recent surge triggered by expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth. Omaxe, Indiabulls Real Estate, DLF, Unitech fell by between 3.43% to 7.44%.
Unitech and Indiabulls Real Estate, have already raised funds through qualified institutional placements (QIPs). A number of other realty funds have decided to raised funds by way of QIPs. The promoters of DLF last month sold a 10% stake in the secondary equity markets.
Metal stocks fell after a gauge of six metals traded on the London Metal Exchange dipped for a third day in a row on Tuesday, the longest losing stretch since February 2009. National Aluminum Company, Sterlite Industries, Hindalco Industries, Jindal Steel, Steel Authority of India fell by between 1.6% to 5.25%.
India's largest steel maker by sales Tata Steel fell 7.52%. Its advance tax payment fell 36.39% to Rs 230 crore in Q1 June 2009 over Q1 June 2008.
Capital goods stocks fell on profit taking after a recent sharp surge triggered by hopes the government may boost spending on the infrastructure sector. Siemens, Thermax, Bharat Heavy Electricals, ABB, Punj Lloyd, fell by between 1.71% to 5.49%.
India's largest engineering and construction firm by sales Larsen & Toubro fell 3.93% even as its advance tax payment rose 15.79% to Rs 110 crore in Q1 June 2009 over Q1 June 2008.
Healthcare stocks fell on profit taking after recent surge triggered by hopes the government will give primary importance to healthcare segment and health of citizens. Biocon, Lupin, Dr Reddy's Laboratories, Ranbaxy's Laboratories, Piramal HealthCare, Pfizer fell by between 0.01% to 7.62%.
Bank stocks fell as higher bond yields will result in diminution in valuation of banks' bond portfolio. India's largest private sector bank by net profit ICICI Bank fell 1.48%. ICICI Bank cut prime lending rate by 50 basis points to 15.75% with effect from Friday, 5 June 2009. All the existing floating rate customers to benefit from the cut. ICICI Bank's advance tax payment rose 7.64% to Rs 366 crore in Q1 June 2009 over Q1 June 2008.
India's second largest private sector bank by operating income HDFC Bank fell 1.76%. Its ADR rose 0.66% on Tuesday. HDFC Bank's advance tax payment rose 16.28% to Rs 250 crore in Q1 June 2009 over Q1 June 2008.
India's biggest bank in terms of branch network State Bank of India (SBI) fell 2.96%. SBI's advance tax payment rose 61.09% to Rs 1,068 crore in Q1 June 2009 over Q1 June 2008. SBI cut deposit rates across all tenors by 25 basis points with effect from 15 June 2009.
SBI chairman O.P. Bhatt recently said SBI's first priority is to absorb its associate banks. It is also looking to grow by buying domestic banks.
India's biggest dedicated housing finance firm by operating income HDFC fell 1.14%. HDFC plans to raise up to Rs 4000 crore after its board recently approved a proposal to raise Rs 4000 crore by selling bonds and warrants. The maximum dilution on conversion of all warrants to shares would be 3.5% of the expanded capital.
Bond yields edged up on Wednesday as traders priced in a quicker economic recovery and ahead of a Rs 15000 crore bond auction later this week. At 10:23 IST, the yield on the most traded 6.07% bond maturing in 2014 was at 6.69%, above its previous close of 6.67%. There were no trades so far in the benchmark 10-year bond. Bond yields and bond prices are inversely related .
Auto stocks fell on profit taking after a recent surge triggered by improved sales in the month of May 2009. India's largest car maker by sales Maruti Suzuki India fell 1.21%.
India's largest tractor maker by sales Mahindra & Mahindra fell 3.27%. Its advance tax payment rose 25% to Rs 17.5 crore in Q1 June 2009 over Q1 June 2008.
India's largest commercial vehicle maker by sales Tata Motors fell 7.36%. Its advance tax payment remained flat at Rs 30 crore in Q1 June 2009 over Q1 June 2008.
FMCG stocks fell on profit taking after recent jump triggered by expectations the government to continue with its rural focus. FMCG firms derive substantial revenue from the rural market. Marico, Dabur India, United spirits, ITC, Hindustan Unilever fell by between 0.68% to 8.43%.
Cement stocks fell on profit taking after a recent surge triggered on hopes government may boost spending on the infrastructure sector to boost economic growth. ACC, Ultratech Cements, Ambuja Cements, India Cements, Grasim Industries fell by between 0.24% to 7.17%.
Reliance Natural Resources clocked the highest volume of 3.2 crore shares on BSE. Cals Refineries (2.94 crore shares), Unitech (2.7 crore shares), Satyam Computer Services (2.37 crore shares) and IFCI (1.98 crore shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 350.91 crore on BSE. Reliance Natural Resources (Rs 304.84 crore), Reliance Infrastructure (Rs 259.06 crore), Unitech (Rs 226.85 crore) and Reliance Capital (Rs 221.94 crore) were the other turnover toppers in that order.
We recommend a buy in the Apollo Tyres stock from a short-term trading horizon. It is visible from the charts of Apollo Tyres that it has been on an intermediate-term uptrend since its March low of Rs 14.7. This low is apparently a 52-week low for the stock. It has been forming higher peaks and higher troughs since. While trending up, the stock conclusively broke through key resistances at Rs 20 and Rs 26 in early April and early May respectively. Besides, it breached the 200-day moving average and is trading way above this level. We notice above-average volumes over the past five trading sessions. After taking support from the intermediate-term up trendline on June 16, the stock jumped 9 per cent with heavy volumes. Both daily and weekly relative strength index (RSI) are featuring in the bullish zone. The weekly moving average convergence and divergence indicators have entered positive territory. Considering that the stock’s intermediate-term uptrend line is intact; we are bullish on it from a short-term perspective. We anticipate the stock’s rally to prolong until it hits our price target of Rs 39.Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 33.
The company awaits government nod for the issue
State-run NHPC is ready with its initial public offer (IPO) plan and is awaiting government approval, its chairman, S K Garg said Monday, 15 June 2009.
NHPC has already secured regulatory approval - valid until September this year - from the Securities and Exchange Board of India (Sebi) for the proposed IPO.
The government is soon likely to appoint an independent director to the board of NHPC, paving the way for the country's largest hydroelectric generator to come out with an IPO by September 2009.
Sebi's rules require independent directors to make up half the company's board before it can sell shares via IPO. The state-owned company has six and needs one more independent director.
NHPC, formerly National Hydroelectric Power Corporation, said in November 2008, it had postponed a planned share sale after global equity markets crashed.
NHPC plans to spend Rs 28,000 crore to more than double generating capacity by 2012. Of this, Rs 11,000 crore would have come from its own cash and the IPO and Rs 17,000 crore from borrowings.
The company will offer 168 crore shares, consisting of 112 crore new shares and 55.91 crore shares owned by the Indian government, according to the offer document submitted to the Sebi. The proceeds will be used to partly pay for the construction of seven hydropower plants.
The stake of the government, which fully owns NHPC, will decline to 86.4% after the issue.
Outflow of Rs 213.30 crore on 15 June 2009
Foreign institutional investors (FIIs) sold shares worth a net Rs 213.30 crore on Monday, 15 June 2009, as against an inflow of Rs 518.70 crore on Friday, 12 June 2009.
FII outflow of Rs 213.30 crore on 15 June 2009 was a result of gross purchases Rs 2,578.60 crore and gross sales Rs 2,791.90 crore. The BSE Sensex lost 362.42 points, or 2.38%, to 14,875.52 on that day.
FII inflow in June 2009 totaled Rs 5900.80 crore (till 15 June 2009). FII inflow in calendar year 2009 totaled Rs 27,220.20 crore (till 15 June 2009).
There are a total of 1665 foreign funds registered with the Securities & Exchange Board of India (Sebi).
Nifty June 2009 futures were near spot price at 4517.60 as compared to the spot closing of 4517.80. Turnover in NSE's futures & options (F&O) segment was Rs 68,737.85 crore, lower than Rs 69,109.05 crore on Monday, 15 June 2009.
State Bank of India (SBI) June 2009 futures were at premium at 1716 compared to the spot closing of 1714.35.
Suzlon Energy June 2009 futures were near spot price at 120.25 compared to the spot closing of 119.95.
Tata Steel June 2009 futures were at discount at 448.20 compared to the spot closing of 450.70.
In the cash market, the S&P CNX Nifty gained 33.80 points or 0.75% at 4517.80.