Thursday, July 16, 2009
Sydney, New Zealand added more than 1% while Shanghai, Sensex ended little lower
Stock markets in Asian region closed higher for third session on Thursday, 16 July 2009, following the strong earnings reports from leading U.S. firms and some fairly encouraging news on the economic front, Investors across region seemed busy in buying activity after renewed optimism about a global economic revival following the U.S. Federal Reserve's announcement that it expects a less severe economic contraction in 2009 and a moderately stronger recovery in 2010. Stocks gained further after gained after official data showed the Chinese economy expanded at a faster-than-expected pace of 7.9% in the second quarter over the year-earlier period
On Wall Street, the major indices surged more than 3% Wednesday as the market welcomed an Intel earnings surprise, a fresh round of economic data and minutes from the latest Federal Open Market Committee meeting. The Dow Jones Industrial Average gained 256.72, or 3.1%, to 8616.21, while the S&P 500 climbed 26.84 points, or 3%, to 932.68. The Nasdaq Composite advanced 63.17 points, or 3.5%, to 1862.90.
Industrials, energy, financial and tech stocks were all swept up in a cross-sector rally after earnings and economic data offered a promising glimpse of the state of the economic recovery. Intel, which surpassed earnings expectations and raised guidance late Tuesday, was one of the greatest gainers on the Dow, rising 7.3%.
The FOMC posted the eagerly awaited minutes for its June 24 meeting Wednesday afternoon. The Fed now expects the economy to shrink by a less severe range of 1% to 1.5% for 2009, against a previously forecast range of 1.3% to 2%. However, it also raised its expectation for joblessness, predicting unemployment could climb to 10.1% after its estimate of 9.6% at the May meeting.
The committee also raised its inflation projection to 1.2% to 1.8% for 2010 to reflect increased energy prices. Board members and FOMC participants expect that the Fed won't have to extend a number of emergency facilities beyond 1 February 2010, if recent improvements in the market continue. However, they're prepared to extend the terms of some or all programs as needed if financial stresses don't moderate.
In the commodity market, crude oil was trading little changed near a one-week high as equities rallied after China’s economy showed signs of rebounding from its weakest growth in almost a decade.
China overtook Japan as the world’s second-largest stock market by value for the first time in 18 months, as government spending and record bank lending boosted share prices. China’s industrial production increased 10.7% in June from a year earlier, the largest gain in nine months excluding seasonal distortions. Retail sales climbed 15%. U.S. crude inventories fell 2.81 million barrels to 344.5 million last weeks, the Energy Department said yesterday.
Crude oil for August delivery was at $61.38 a barrel, down 16 cents, on the New York Mercantile Exchange at 2:58 p.m. in Singapore. Earlier, the contract rose as much as 47 cents, or 0.8%, to $62.01 a barrel. Prices jumped 3.4% yesterday to $61.54, the highest settlement since 7 July 2009.
Brent crude for August settlement was at $62.95 a barrel, down 14 cents, on London’s ICE Futures Europe Exchange at 2:58 p.m. in Singapore. The more-actively traded contract for September, which moves to the front month tomorrow, slipped 14 cents to $63.38.
Gold declined for the first time in six days as the dollar rebounded, reducing the appeal for the precious metal as an alternative investment. Gold for immediate delivery fell 0.3% to $936.55 an ounce at 12:19 p.m. in Singapore after touching $942.21 yesterday, the highest since 1 July 2009. Gold futures for August delivery slipped 0.3% to $936.40 an ounce on the New York Mercantile Exchange’s Comex division. The contract climbed 1.8% yesterday, the biggest one-day gain for the active contract since 20 April 2009.
In the currency market, risk appetite was lifted in early Asian session by strong rally in US stocks as well as strong growth report from China. However, the momentum s cannot sustain towards the end of the session after news that New Zealand's credit rating outlook was downgraded and CIT won't be bailed out. Profit taking is seen on major currencies after yesterday's strong rally against dollar and yen.
The Japanese yen softened against major currencies on Thursday. The Japanese currencies were quoted at 94.23 against the greenback.
The Hong Kong dollar was trading at HK$ 7.7502 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 struggled to hold on to early gains on Thursday after news that a medium-sized US bank may soon file for bankruptcy slightly dented demand for riskier assets. The dollar slipped back to end local trading at $US0.7966, virtually unchanged from yesterday's close of $US0.7965, and down from a day's high of $US0.8053.
In Wellington trade, the New Zealand dollar was knocked lower by news that credit rating company Fitch has changed the outlook for the country's credit rating to negative from stable. While Fitch is not as powerful as Moody's Investors Service or Standard and Poor's it reminded traders of the country's high debt levels and reliance on borrowing from offshore.
The NZ dollar fell from US 64.63 cents to US 63.90 cents at 5 pm. It was US 64.07 cents at 5pm yesterday and opened this morning at US 65 cents when equity markets around the globe posted gains.
The South Korean won ended at 1,265.7 won against the dollar, up 12.8 won from Wednesday's close, as offshore investors unloaded the greenback.
The Taiwan dollar strengthened against the greenback. The Taiwan dollar gained against the US dollar as it was trading higher at NT$ 32.9590, up by NT$ 0.0140 from Wednesday’s close of NT$32.975.
Coming back in equities, most of the Asian equity markets ended higher, following a strong rally overnight on Wall Street, but robust economic data from China failed to lift shares in Shanghai as investors there locked in some profits.
In Japan, the benchmark indices was lifted by gains amongst the exporters, resources, and financials following a strong rally on Wall Street, rebound in metal and crude oil prices, and softening yen against major currencies. The investors’ sentiments reinforced after better-than-expected results by Goldman Sachs and Intel boosted expectations company earnings will grow. At the closing bell, the Nikkei 225 Stock Average index gained 0.81%, or 74.91 points, to 9,344.16, while the broader Topix index rose 0.7%, 5.88 points, to 872.25.
On the economic front, Japan’s Ministry of Economy, Trade and Industry said today that tertiary industrial activity in Japan fell a seasonally adjusted 0.1% month-on-month in May, after rising 2.2% in the preceding month. Year-on-year, the tertiary industrial activity was down 6.8% in May, on an unadjusted basis, faster than a 6.1% fall in the preceding month. Moreover, the activity index has been declining continuously since August last year.
A report from the International Monetary Fund revealed yesterday that the Japanese economy is expected to contract 6% this year, but expand 1.75% in the next year. Further, the IMF forecasts that inflation in Japan will remain negative until 2011.
The International Monetary Fund has held Japan’s outlook to remain uncertain despite recent tentative signs of stabilization at home and abroad. Staff projects GDP to fall by 6% in 2009, before expanding by 1¾% in 2010. A sustained recovery will likely emerge during the course of 2010 but will hinge critically on improvement in overseas lending conditions and trade. The IMF has projected the country’s inflation to remain negative until 2011. The current account surplus is expected to fall to 1½% of GDP in the short term, well below the levels typical earlier this decade.
The Bank of Japan extended its corporate funding support measures beyond their planned expiry in September, and it kept interest rates on hold at 0.1% amid signs the world’s second-largest economy has ended its slide.
In Mainland China, stock market erased early gains to eventually close lower after swinging between gains and losses snapping two days of winning streak, as investors caution the rally has overvalued the prospect for earnings growth. Materials, Industrials, and energy shares closed below the line amid profit booking. Retailers and healthcares dropped in line with market.
The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, dropped 0.15%, or 4.80 points, to 3,183.74, while the Shenzhen Component Index added 0.02%, or 2.63 points, to 13,081.89.
On the economic front, the National Bureau of Statistics said China’s economic growth accelerated in the second quarter amid a stimulus-fueled surge in consumer spending and factory output and investment. China GDP expanded by 7.9% in the quarter ended June 2009 from a year earlier, up from 6.1% growth witnessed in quarter ended March 2009.
The gross domestic product (GDP) grew 7.1% in the first half to 13.99 trillion yuan from the same period a year ago. China’s consumer price index (CPI), a main gauge of inflation, declined 1.7% in June from a year earlier.
The National Bureau of Statistics said China’s retail sales in the first half-year rose 15% to 5.87 trillion Yuan from a year earlier. Retail sales in June 2009 rose by 15% from May 2009. Real (inflation-adjusted) retail sales growth was recorded at 16.6% in the first half year. Urban sales of consumer goods expanded 14.4% to 3.98 trillion Yuan, while sales in rural areas increased 16.4% to 1.89 trillion Yuan.
The bureau also said China’s industrial output expanded 10.7% in June2009 from a year earlier, faster than the 8.9% rate in May2009. The industrial output growth raises to 7% for the first half of year2009. The figure rose to 9.1% in the second quarter from 5.1% in the first quarter.
In Hong Kong, the benchmark index endured gains for third consecutive day, on tracking strong cues from Wall Street overnight and mainland market, on optimism government stimulus policies around the world will revive the global economy. Financials and commerce & industry stocks led the rally after data showing China’s economy grew by a better-than-expected margin in the second quarter. The Hang Seng Index spurted 103.21 points, or 0.57%, to 18,361.87, while the Hang Seng China Enterprise Index surged 41.81 points, or 0.38%, to 10,902.47.
In Australia, the stock market surged, finishing just shy of the 4,000 point mark, endured gains for third day in row on tracking strong cues from the US and other Asian bourses. Gains were broad based with commodity stocks leading the rally on hopes the global economy will soon return to growth. At the closing bell, the benchmark S&P/ASX200 index spurted 71.1 points, or 1.81%, to 3,995.6, meanwhile the broader All Ordinaries surged 70.3 points, or 1.79%, to 3,987.8.
On the economic front, the Australia Bureau of Statistics said in its preliminary analysis that imports totaled A$16.28 billion in June, compared to A$16.29 billion in May.
In New Zealand, equities surged more than 1% for the first time in the month of July. The share market registered the third consecutive session in the positive terrain after a couple of positive economic data fueled slight optimism among investors accompanied by the surge in the US markets overnight. However, alongside came a spark of pessimism as Fitch rating agency revised NZ outlook to negative. The NZX50 advanced 1.35% or 37.43 points to 2801.52. The NZX 15 increased 1.39% or 70.82 points to close at 5171.73.
On the economic front, New Zealand’s inflation rate slows to lowest level in seven quarters. New Zealand’s consumer price index (CPI) increased 1.9 percent from the June 2008 quarter to the June 2009 quarter, which included a rise of 0.6 percent for the June 2009 quarter, Statistics New Zealand said today. This annual increase is the smallest since a 1.8 percent rise recorded in the year to the September 2007 quarter. The food group (up 0.9 percent) made the biggest upward contribution to the quarterly CPI increase of 0.6 percent, driven by higher vegetable prices
New Zealand manufacturing activity improves in June, according to Business NZ. As per the report, New Zealand’s manufacturing activity continued to climb out of the depths of contraction with the highest overall activity level in nine months. The seasonally adjusted PMI was at 46.2 in June, up 3.1 points from May, and 1.2 points higher than June 2008. The seasonally adjusted PMI for June stood at 46.2.
In South Korea, stocks ended up as investors scooped up shipyard, steel and auto shares on upbeat outlooks for their earnings. The benchmark Korea Composite Stock Price Index (KOSPI) rose 11.36 points to 1,432.22, advancing for the third consecutive day.
In Singapore, the stock market surged on tracking strong cues from Wall Street overnight and other Asian bourses, with investors cheered by signs of a turnaround in key economies including upbeat earnings at US companies and strong economic growth in China and an improvement in U.S. manufacturing gauges. The blue chip Straits Times Index added 11.6 points, or 0.49%, to 2,401.02.
In Taiwan, stock market extended its upward run for third session ending the session at the highest level in more than one month, as strong corporate earnings and improving economic data in the United States fuelled technology shares. The main Taiex share index extended gains for third session as the benchmark index added 41.70 points or 0.62%, closing the day at 6780.30, highest closing since 9 June 2009 as signs of global economic recovery boosted investors sentiments.
On the economic front, Hu Sheng-cheng, fellow at the Academia Sinica, Taiwan’s highest academic organization, said that Taiwan’s economic recovery depends on the global climate, as well as reflected by the national savings rate.
Hu was the former chairman of the Cabinet-level Council for Economic Planning and Development (CEPD) and has been closely watching Taiwan’s economic trend, predicting that Taiwan might undergo a second economic recession if its savings rate remains high.
In Philippines, the stock market closed more than 1% higher as market sentiments swung towards optimism followed by a wave of positive news, which boosted investor’s confidence. The investor’s also took cues from the overnight gains on Wall Street. At the concluding bell, the benchmark index PSEi ascended 1.51% or 38.01 points to 2,553.96, while the All shares index rose 1.50% or 24.12 points to 1,627.40.
On the economic front, the World Bank approved over US$320 million in loans to finance development programs and projects in the Philippines in Fiscal Year (FY) 2009, a 31% increase over the previous fiscal year, to help the country weather the effects of the global financial crisis. Fiscal year 2009 was particularly challenging as the Philippines and the rest of the world were hit by shocks coming from the global food crisis and the global financial meltdown. With the new CAS, the Bank is in a better position to help address the country’s development needs as it battles the impact of the evolving global recession.
In India, the key benchmark indices provisionally closed little lower after moving between the positive and negative terrain throughout the day. The BSE 30-share Sensex was down 2.99 points or 0.02% at 14,250.25. The S&P CNX Nifty ended lower at 4,231.40, 2.10 points lower.
On the economic front, India's wholesale price index (WPI) in 12 months to 4 July 2009 fell 1.21% compared to a previous week's decline of 1.55% the government data showed at 12:00 IST today. The government revised upwards the WPI index to 1.56% for week ended 9 May 2009 to 1.56% from earlier 0.61%.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 1.06% or 11.64 points to 1108.88 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2177.95.
In other regional market, European shares advanced on Thursday after U.S. banking giant J.P. Morgan put out second-quarter results. The French CAC-40 index rose 1.2% to 3,208.14, the German DAX index climbed 0.9% to 4,970.61 and the U.K. FTSE 100 index rose 0.3% to 4,358.85
L&T July 2009 futures at discount
Nifty July 2009 futures were at 4230.10, at a discount of 1.30 points as compared to the spot closing of 4231.40. Turnover in NSE's futures & options (F&O) segment surged to Rs 68,847.29 crore from Rs 57,969 crore on Wednesday, 15 July 2009.
JSW Steel July 2009 futures were at discount at 577 compared to the spot closing of 579.65.
Tata Steel July 2009 futures were at discount at 383 compared to the spot closing of 384.20.
Larsen & Toubro July 2009 futures were at discount at 1372 compared to the spot closing of 1379.10.
In the cash market, the S&P CNX Nifty fell 2.10 points or 0.05% at 4231.40.
Reportedly plans to raise Rs 1,500 crore through the public offer
Indiabulls Real Estate said on Wednesday, 15 July 2009 its wholly-owned power subsidiary Indiabulls Power has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offer (IPO).
However, No other details were announced by Indiabulls Real Estate in a filing to the Bombay Stock Exchange.
Indiabulls Power (formerly Sophia Power Company) reportedly plans to raise Rs 1500 crore through an IPO to finance its three upcoming power projects in Maharashtra and Chhattisgarh.
Raj Oil Mills, promoted by Shaukat S. Tharadra and his wife Shahida S. Tharadra, buys, sells, manufactures and processes edible oil. The company has a wide range of product offerings like mustard oil, sunflower oil, groundnut oil, cottonseed oil, til oil and ayurvedic oil. They are sold under three umbrella brands: Cocoraj, Guinea and Raj. These products have been in the market for more than five decades.
Raj Oil Mills markets the following products: Cocoraj (Coconut Oil), Cocoraj Cool (Ayurvedic oil), Guinea Groundnut Oil (double filtered oil), Guinea Lite Groundnut Oil (refined oil), Guinea Lite Sunflower Oil (refined oil), Guinea Lite Cottonseed Oil (refined oil), Guinea Lite Soyabean Oil (refined oil), Tilraj Til Oil, Mustraj Mustard Oil and Cocoraj Jasmine. It deals in edible oil in bulk and in customer retail packs ranging from 5ml pack to 15 liters.
At present, Raj Oil Mills has 5,00-tonne per annum (tpa) of crushing and 30,000 tpa of oil filtration at Manor, district Thane. Capacity utilization is 96%.
Raj Oil Mills wants to expand its crushing capacity to 60,000 tonnes at its present facility at Manor. At the same time, it wants to set up new capacities: 60,000 tonnes of refinery, 30,000 tonnes of palm fractionation, 15,000 tonnes of vanaspati ghee, and 1,500 tonnes of ayurvedic and cosmetic production. The company also wants to set up a 60,000-tonne crushing capacity at Bagru, district Rajasthan.
To finance these projects, Raj Oil Mills is going for an initial public offering (IPO) of 95 lakh equity shares of face value of Rs 10 each through a 100% book-building process at a price band between Rs 100 and Rs 120 per equity share.
Financial track record is good, with consistent growth in sales, margins and profits. However, operating profit margin, at 16.4% for calendar year (CY) 2008, looks high as compared to other solvent extraction companies whose margins are in the range of 3% to 7% The high margin is attributed to its focus on retail sales.
Earnings are vulnerable to changes in international edible oil prices and the duty differential between crude and refined oil.
It's a regional player mainly focused on western India.
Has a negative net operating cash flow of Rs 12.5 crore in CY 2008 and Rs 7.5 crore CY 2007. Has not complied with terms of a bank loan. Outstanding amount to be repaid was Rs 1.5 crore end March 2009.
Raj Oil Mills has set a price band of Rs 100 to Rs 120 per equity share of Rs 10 face value. At the lower band of Rs 100 per share, the P/E would be 12.2x times and at the upper price band of Rs 120 per share, the P/E works out to be 14.6x times the EPS for CY 2008. Industry composite TTM P/E is 12.4.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
16/7/2009 524412 AAREY DRUGS SHAISHIL TUSHAR KUMAR JHAVERI B 25000 45.00
16/7/2009 524412 AAREY DRUGS NIKHIL VINUKANT SHAH S 25000 45.00
16/7/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 430063 849.15
16/7/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 430063 849.49
16/7/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA B 58620 49.15
16/7/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA S 79854 47.13
16/7/2009 532995 AVON CORP S V ENTERPRISES B 294324 8.55
16/7/2009 532995 AVON CORP RAVI SHET S 89000 8.56
16/7/2009 532995 AVON CORP S V ENTERPRISES S 189582 8.52
16/7/2009 531530 BETALA GLO S BISWANATH MONDAL S 8586 4.17
16/7/2009 531682 CAT TECHNOL S V ENTERPRISES S 165000 6.56
16/7/2009 531127 ENRICH INDUT DINESH MADHUKAR BHANARKAR HUF B 50000 3.15
16/7/2009 531127 ENRICH INDUT KAVITA DINESH BHANARKAR B 45000 3.15
16/7/2009 531127 ENRICH INDUT JAYESHKUMAR JAYANTILAL PANDYA B 70000 3.15
16/7/2009 531127 ENRICH INDUT HITESH ARJUNBHAI AHIR B 65000 3.15
16/7/2009 531127 ENRICH INDUT HEMANT R SHAH S 300000 3.15
16/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 53695 65.46
16/7/2009 511131 KAMAN HSG NISHA SUMAN JAIN B 110000 30.66
16/7/2009 502933 KATARE SPG. RAMESH G GOKANI B 30001 13.25
16/7/2009 502933 KATARE SPG. AMI STOCK & SHARE BROKERS PVTLTD S 30000 13.25
16/7/2009 530255 KAY POW PAP SUNDER DASS AGARWAL S 88766 6.24
16/7/2009 531602 KOFF BR PICT KAMLESH KUSUMCHANDRA SHAH B 300000 3.78
16/7/2009 531731 KUVAM INTL SANJIV V ARORAA B 19000 12.75
16/7/2009 531731 KUVAM INTL MAYURBHAI GORDHANBHAI PATEL S 25000 12.75
16/7/2009 531731 KUVAM INTL GOVIND MATHURADAS KOTAK S 45000 12.75
16/7/2009 531731 KUVAM INTL ALKA DILIP RATHOD S 29800 11.55
16/7/2009 530273 LIBERTY PHOS SADIQUA BANU B 50000 24.88
16/7/2009 530273 LIBERTY PHOS SIRAJ RAHIMTULA S 50000 24.87
16/7/2009 533088 MAH HOLIDAY OPG SECURITIES P LTD B 1017353 324.89
16/7/2009 533088 MAH HOLIDAY OPG SECURITIES P LTD S 1017353 325.00
16/7/2009 526263 MOLDTEK TECH RAJENDAR REDDY NARRA S 20290 76.65
16/7/2009 530923 PASSARI CELL PRIMEX B 30000 30.70
16/7/2009 530923 PASSARI CELL PARAS KANWAR S 37000 30.70
16/7/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD B 110511 1015.63
16/7/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD S 110511 1016.64
16/7/2009 531952 RIBA TEXTILE SHAISHIL TUSHAR KUMAR JHAVERI B 38000 48.89
16/7/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD B 45503 51.01
16/7/2009 531952 RIBA TEXTILE MANJULA NILKHANTH SHAH B 50000 48.50
16/7/2009 531952 RIBA TEXTILE SHAILESH SOMABHAI PATEL B 60199 49.72
16/7/2009 531952 RIBA TEXTILE SHAISHIL TUSHAR KUMAR JHAVERI B 42153 48.56
16/7/2009 531952 RIBA TEXTILE SHAISHIL TUSHAR KUMAR JHAVERI S 38000 48.93
16/7/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD S 44822 48.50
16/7/2009 531952 RIBA TEXTILE PATEL NITABEN SHAILESHBHAI S 124801 50.12
16/7/2009 533083 RISHABHDEV Naman Securities & Finance Pvt. Ltd. B 94429 19.16
16/7/2009 533083 RISHABHDEV Naman Securities & Finance Pvt. Ltd. S 104439 19.30
16/7/2009 533083 RISHABHDEV JMP SECURITIES PVT LTD S 145949 19.88
16/7/2009 512048 SPLASH MEDIA BHANUMATI DHARAMRAJ GIRI S 12920 109.83
16/7/2009 526133 SUPERTEX IND ARCHITA JIGNESH SHAH B 60000 55.99
16/7/2009 526133 SUPERTEX IND HARISH RATILAL SHAH S 56750 56.01
16/7/2009 503657 VEER ENERGY JITENDRA KUMAR JAIN B 7700 285.85
16/7/2009 503657 VEER ENERGY JITENDRA KUMAR JAIN S 7700 285.54
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
16-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,605195,846.12,-
16-JUL-2009,ABAN,Aban Offshore Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,256631,843.62,-
16-JUL-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,BUY,222245,845.86,-
16-JUL-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,BUY,314765,839.21,-
16-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,BUY,102216,3975.51,-
16-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,12769893,19.72,-
16-JUL-2009,WEBELSOLAR,Webel-SL Energy Systems L,MACKERTICH CONSULTANCY SERVICES P. LTD,BUY,52100,211.92,-
16-JUL-2009,WEBELSOLAR,Webel-SL Energy Systems L,MAVI INVESTMENT FUND LTD,BUY,50000,212.00,-
16-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,605195,846.82,-
16-JUL-2009,ABAN,Aban Offshore Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,256631,844.31,-
16-JUL-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,SELL,215045,847.54,-
16-JUL-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,SELL,277970,843.41,-
16-JUL-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD.,SELL,102216,3977.46,-
16-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,13056243,19.75,-
16-JUL-2009,WEBELSOLAR,Webel-SL Energy Systems L,CONSORTIUM CAPITAL PRIVATE LIMITED,SELL,50000,212.00,-
16-JUL-2009,WEBELSOLAR,Webel-SL Energy Systems L,MACKERTICH CONSULTANCY SERVICES P. LTD,SELL,52100,211.95,-
Indian market closed the today’s volatile session on flat note as investors booked profits following steep rise in previous two sessions. However, market exhibited positive attitude during early trading on overnight rise in US stocks. Further, concerns regarding the inflation data and the negative opening of European markets hit the sentiments. Meanwhile, inflation stood at (-) 1.21% for the week ended July 4 against (-) 1.55% during the previous week mainly due to higher prices of fuel items. BSE Sensex ended around 14,250 level and NSE Nifty closed below 4,250 mark.
Favorable cues from the markets all over the world led the gap up opening of the market. Asian stocks had opened with gains and the US markets closed higher on the back of the better than expected results reported by Intel and the Federal Reserve improved outlook for the economy. Moreover, the Consumer Price Index recorded sharper than expected growth of 0.7% during the month of June. Further, Indian benchmark indices were unable to hold the same impetus and started losing ground due to profit booking pressure at higher levels. Market exhibited instability during the trading and continued to swing between positive and negative terrain further. Weak European markets also fueled the downbeat response that directed the market to end the today’s journey on flat note. From the sectoral front, Capital Goods, Metal and Power stocks witnessed most of the selling from these baskets. However, Auto, Oil & Gas, Consumer Durables, Pharma and Teck stocks were able to gain favour from the market. BSE Mid Caps and Small Caps stocks also observed buying.
Among the Sensex pack 16 stocks ended in red territory and 14 in green. The market breadth indicating the overall health of the market remained positive as 1465 stocks closed in green while 1131 stocks closed in red and 93 stocks remained unchanged in BSE.
The BSE Sensex closed slightly lower by 2.99 points at 14,250.25 and NSE Nifty ended marginally down by 2.10 points at 4,231.40. BSE Mid Caps and Small Caps closed with gains of 11.78 and 21.76 points at 4,990.42 and 5,545.56 respectively. The BSE Sensex touched intraday high of 14,493.10 and intraday low of 14,169.58.
Losers from the BSE Sensex pack are Sterlite Industries (6.12%), Reliance Infra (3.97%), JP Associates (3.66%), Larsen & Toubro Ltd (3.65%), HDFC (2.07%), SBI (1.62%), DLF Ltd (1.46%), ACC Ltd (1.25%), ONGC Ltd (1.16%) and HUL (1.15%).
Gainers from the BSE Sensex pack are Maruti Suzuki (3.20%), Reliance (3.16%), Herohonda Motors (3.10%), RCome (3.09%), NTPC Ltd (2.96%), Tata Motors (2.62%), Tata Steel (1.29%) and BHEL (0.88%).
India''s inflation stood at (-) 1.21% for the week ended July 4 against (-) 1.55% in the previous week mainly due to higher prices of fuel items. The wholesale price index during the corresponding week a year ago was as high as 12.19%. The wholesale price index for all commodities for the week ended July, 4, 2009 rose by 0.7% to 236.4 from 234.7 for the previous week. The index for ''Food Articles'' group dipped by 0.2% to 253.6 from 254.0 for the previous week. The index for ''Non-Food Articles'' group rose by 0.3% to 237.7 from 237.0 for the previous week.
On the global markets front the Asian markets that opened before the Indian market, ended mostly up. Hang Seng, Nikkei 225 index, Straits Times and Seoul Composite ended up by 103.21, 74.91, 11.60 and 3511.36 points at 18,361.87, 9,344.16, 2,401.02 and 1,432.22 respectively. However, Shanghai Composite lost 4.81 points at 3,183.72.
European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading down by 0.87 points at 4,927.57 and in London FTSE 100 is trading lower by 11.49 points at 4,334.97.
The BSE Capital Goods index dropped by (1.65%) or 197.97 points at 11,818.18. Scrips that lost are Larsen & Toubro Ltd (3.65%), Bharat Bijli (3.27%), Elecon Eng C (2.66%), Punj Lloyd (1.53%) and Suzlon Energy (1.33%).
The BSE Metal closed down by (0.45%) or 48.77 points at 10,807.51. Losers are Ispat Industries (6.12%), Welspan Gujarat SR (3.71%), Ispat Industries (1.53%), Steel Authority (1.33%) and Jindal Saw (1.24%).
The BSE Power index lost (0.37%) or 10.17 points at 2,74.62. Losers are Lanco Infra (5.47%), Reliance Infra (3.97%), GMR Infra (3.22%), Torrent Power (2.28%) and Suzlon Energy (1.33%).
The BSE Auto stocks ended up by (1.95%) or 92.21 points to close at 4,821. Major gainers are Bajaj Auto (5.12%), Maruti Suzuki (3.20%), Herohonda Motors (3.10%), Bharat Forge (2.90%) and Tata Motors (2.62%).
The BSE Oil & Gas closed higher by (1.88%) or 168.9 points at 9,151.31. Gail India (3.69%), Reliance (3.16%), Reliance Pet (2.69%), Aban Offshore (2.59%) and RNRL (1.26%) ended in positive territory.
The BSE Consumer Durable index increased by (1.51%) or 42.68 points to close at 2,867.07. Main gainers are Rajesh Export (1.99%), Blue Star L (1.80%), Titan Ind (1.68%), Gitanjali GE (0.72%) and Videocon Ind (0.09%).
Tata Communications ended up by 0.58%. The company announced the opening of its Data Center in Kolkata, the first such third party tier ill data centre in eastern India, This latest addition to Tata Communications rollout of world class IDC infrastructure will enable customer access to reliable, secure data centers which are connected our Tier I India and Global network backbone.
Tata Steel Limited advanced by 1.29%. Tata Steel Global Minerals Holdings Pte Limited, an indirect wholly owned subsidiary of Tata Steel has today acquired additional shares of Riversdale Mining Limited, Australia through market purchases taking its total holding to 19.38%.
Tech Mahindra gained 0.82%. The company has now enhanced its presence in Eastern India by setting up a new BPO Centre in Kolkata. The facility will focus on providing end to end customer service delivery to Telecom Service Providers, The Kolkata centre will primarily be servicing Reliance Communications'' operations in the first phase of ramp up.
Bajaj Auto Ltd closed higher by 5.12%. The company has posted a net profit of Rs 2934.90 million for the quarter ended June 30, 2009 as compared to Rs 1751.10 million for the quarter ended June 30, 2008. Total Income has increased from Rs 23334.50 million for the quarter ended June 30, 2008 to Rs 23616.10 million for the quarter ended June 30, 2009.
The market was poised for another positive close, but a late bout of selling dragged the Sensex below 14300 and halted its up-move. Shrugging off the mixed trend in the US and European markets, the Sensex took a cue from the Asian indices and resumed 99 points above its last close at 14352. Extending the up-move on hectic buying support, the Sensex breached the 14500 mark and touched the day's high of 14493. The market remained above the crucial 14350 levels for a major portion of the day, but witnessed a major slump towards the close and touched an intra-day low of 14170. The Sensex closed three points down at 14250, while the Nifty was two points lower at 4231.
The market breadth was positive, with the gainers outpacing the losers by 1.29:1. Of the 2,689 stocks that traded on the BSE, 1,465 stocks declined, 1,131 stocks advanced and 93 stocks ended unchanged. Sectoral indices had a mixed ending. BSE Auto, BSE Oil & Gas and BSE CD gained around 1% each. BSE CG dropped 1.65% followed by BSE Metal (down 0.45%) and BSE Power (down 0.37%).
Among the Sensex stocks, Maruti Suzuki India was the leading gainer and soared 3.20% to Rs1,144. Reliance Industries advanced 3.16% to Rs1,934.30, Hero Honda jumped up 3.10% to Rs1,492.05 and Reliance Communications moved up 3.09% to Rs269.85. Among other stocks, National Thermal Power Corporation jumped 2.96% to Rs205.40, Tata Motors shot up by 2.62% to Rs296.20, while Tata Steel, Bharat Heavy Electricals, Wipro, Bharti Airtel, Mahindra & Mahindra and HDFC Bank closed with marginal gains. Among laggards, Sterlite Industries tumbled 6.12% to Rs590.15, Reliance Infrastructure shed 3.97% to Rs1,060.50, JP Associates declined 3.66% to Rs198.55 and Larsen & Toubro lost 3.65% to Rs1,378. HDFC, State Bank of India, DLF, ACC and ONGC closed with marginal loss.
Over 3.52 crore shares of Mahindra Satyam changed hands on the BSE followed by Suzlon Energy (1.61 crore shares), Reliance Natural Resources (1.60 crore shares), Ispat Industries (1.48 crore shares) and IFCI (1.46 crore shares)
The key benchmark indices closed little changed after moving between positive and negative terrain throughout the day. Index heavyweight Reliance Industries jumped. The BSE 30-share Sensex fell 2.99 points or 0.02%, off close to 240 points from the day's high and up close to 85 points from the day's low.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell as order inflow declined 22% in Q1 June 2009 over Q1 June 2008. India's largest copper maker by sales Sterlite Industries tumbled. Auto stocks rose.
The market was volatile. Equities pared gains after a firm start triggered by overnight solid surge in US stocks. Traders took home profit after the Sensex jumped 6.3% in the two trading sessions to 14,253.24 on Wednesday, 15 July 2009 from 13,400. 32 on 13 July 2009. The market cut losses in mid-morning trade after it had pared a large part of the initial gains. The market hovered between the positive and negative terrain later. The market cut losses after hitting a fresh intraday low in afternoon trade. The market closed flat after hovering between the positive and negative terrain in late trade.
India's weather office has forecast widespread rainfall in most regions in the next five days, calming fears of extensive crop damage in the country where only 40% of the farmland is irrigated. In the next two days heavy rains are expected in the western Gujarat state, a key cotton and oilseeds producer, and many places in Madhya Pradesh where soybean is being planted.
A weak start to the vital June-September monsoon rains stoked fears of crop failure, encouraging the government to ban wheat exports and prepare contingency plans. But the weather office said on Wednesday that rainfall had improved in the past two days and Finance Minister Pranab Mukherjee told parliament yesterday that while the slow progress of monsoons was a concern, the situation was not alarming. A shortfall of 34% of the long-term average during the period from 1 June 2009 to 9 July 2009, has been reduced to 29% during the period 1 June 2009 to 14 July 2009.
Meanwhile, Finance Secretary Ashok Chawla said on Wednesday the government will come up with a roadmap for the sale of its stake in public sector companies by mid-August.
India's wholesale price index (WPI) in 12 months to 4 July 2009 fell 1.21% compared to a previous week's decline of 1.55% the government data showed at 12:00 IST today. The government revised upwards the WPI index to 1.56% for week ended 9 May 2009 to 1.56% from earlier 0.61%.
The stock market has entered a crucial period of earnings. Early this week, HDFC Bank, India's second biggest private sector bank, reported good Q1 results. Last week, IT bellwether Infosys reported better than expected Q1 results.
European shares edged higher in volatile trade on Thursday. Key benchmark indices in Germany, UK and France were up by between 0.09% to 1.02%.
Asian stocks pared gains after a firm start triggered by an improvement in US manufacturing. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan rose were up by between 0.49% to 0.81%.
China's Shanghai Composite fell 0.17%, reversing early gains. China's economy rebounded from its weakest growth in almost a decade as record lending and surging investment countered a slump in exports. Gross domestic product expanded 7.9% in the second quarter from a year earlier after a 6.1% gain in the previous three months, the Statistics Bureau said in Beijing today.
Trading in US index futures indicated Dow could rise 4 points at the opening bell today, 16 July 2009.
US markets closed sharply higher yesterday, 15 July 2009 after Intel's earnings beat estimates and minutes from the Federal Reserve's most recent policy-setting meeting showed officials judged that the US economy's contraction was slowing. Also a slew of economic reports indicated stronger signs of a turnaround. The Dow gained 256.72 points, or 3.1%, to 8,616.21. The S&P 500 index added 26.84 points, or 3%, to 932.68, while Nasdaq Composite Index gained 63.17 points, or 3.5%, to 1,862.90.
In economic news, readings on New York manufacturing, consumer prices, industrial production and mortgage applications each provided hope for the economy. While none was particularly buoyant, each beat analyst expectations.
The BSE 30-share Sensex fell 2.99 points or 0.02% at 14,250.25. At the day's high of 14,493.10, the Sensex rose 239.86 points in early trade. At the day's low of 14,169.58, the Sensex fell 83.66 points in mid-afternoon trade.
The S&P CNX Nifty fell 2.10 points or 0.05% to 4,231.40. Nifty July 2009 futures were at 4230.10, at a discount of 1.30 points as compared to the spot closing of 4231.40. Turnover in NSE's futures & options (F&O) segment surged to Rs 68,847.29 crore from Rs 57,969 crore on Wednesday, 15 July 2009.
BSE clocked a turnover of Rs 6,278 crore, higher than Rs 5,460.73 crore on Wednesday, 15 July 2009.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,456 shares rose as compared with 1134 that fell. A total of 93 shares remained unchanged.
From the 30 shares Sensex pack, 16 fell and rest rose.
The Sensex is up 4,602.94 points or 47.71% in calendar year 2009, as on 16 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,089.85 points or 74.62% as on 16 July 2009.
Coming back to today's trade, the BSE Mid-Cap index was up 0.34% and the BSE Small-Cap index was up 0.44%. Both these indices outperformed the Sensex.
The BSE Auto index (up 1.95%), the BSE Oil & Gas index (up 1.88%), the BSE Consumer Durables index (up 1.51%), the BSE Healthcare index (up 0.69%), the BSE TECk index (up 0.67%),the BSE IT index (up 0.25%), the BSE PSU index (up 0.17%), the BSE FMCG index (down 0.01%), outperformed the Sensex.
The BSE Capital Goods index (down 1.65%), the BSE Metal index (down 0.45%), the BSE Power index (down 0.37%), the BSE Bankex (down 0.15%), the BSE Realty index (down 0.05%), underperformed the Sensex.
India's largest private sector firm by market capitalisation Reliance Industries (RIL) rose 3.16% to Rs 1,934.30 on bargain hunting after a recent sharp fall. Recent reports suggest that the government is open to allowing private-sector refiners such as RIL and Essar Oil to access subsidy on domestic fuel sales. The stock came off the day's high of Rs 1,966.60. From a recent high of 2,084.95 on 29 June 2009 the stock had lost 10.11% to Rs 1,875 on 15 July 2009.
The Supreme Court, last week, declined to stay the Bombay High Court's verdict in a dispute over the sale of natural gas by Reliance Industries (RIL) to Reliance Natural Resources (RNRL). The Supreme Court didn't grant RIL' plea to stay the order of the Bombay High Court until the resolution of the case and issued notices to the companies and the Centre. Both companies have to reply to appeals filed by each other by 20 July 2009, when the matter is scheduled to be heard. The government must also respond by then, the court said.
RIL had moved the Supreme court, challenging the Bombay High Court judgment asking it to supply gas to the former at a price that is 44% lower than fixed by the government. In its appeal filed in the Supreme Court on Saturday 4 July 2009, Reliance Industries contended that the high court had erred in deciding the three terms - quantity, tenure and price of gas supply to power plants of Reliance Natural Resources (RNRL) affiliates.
Shares of oil exploration firms reversed early gains as oil fell 0.16% after gaining 3.4% in the previous session. India's largest state-run oil exploration firm by revenue ONGC fell 1.16%. Cairn India fell 1,75%. US oil for August delivery dipped 13 cents to $61.41 a barrel, after gaining 3.4% on Wednesday.
PSU OMCs fell on higher crude oil prices. HPCL, BPCL and Indian Oil Corporation fell by between 0.42% to 0.85%. The rise in crude oil prices will increase under-recoveries for PSU OMCs on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
Oil minister Murli Deora, last week, said that the government will roll back the Rs 4 a litre hike in petrol prices and the Rs 2 a litre increase in diesel rates if international crude oil prices stabilize between $50 and $60 a barrel. At the beginning of this month, the Government had raised petrol and diesel prices citing spike in international crude oil prices to $70 a barrel.
Contrary to market expectations, the Union Budget 2009-2010 did not include a roadmap for decontrol of fuel prices in the country even as the finance minister said an expert panel will be set up to look into the matter of fuel pricing.
Two-wheeler makers rose boosted by good Q1 June 2009 results from Bajaj Auto during trading hours today. Bajaj Auto surged 5.12% after net profit jumped 67.60% to Rs 293.49 crore in Q1 June 2009 over Q1 June 2008.
Hero Honda Motors and TVS Motor Company rose by between 3.1% to 10.03%.
India's largest commercial vehicle maker by sales Tata Motor rose 2.62% on reports the company will deliver the first batch of Nano, the world's cheapest car, in the last week of July 2009.
India's largest small car maker by sales Maruti Suzuki India rose 3.2% and India's largest tractor maker by sales Mahindra & Mahindra rose 0.33%.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 3.65% after a top official of the company said order inflow was down 22 % in Q1 June 2009 over Q1 June 2008. The company's order backlog at the end of the June quarter was Rs 71, 650 crore ($14.7 billion).
L&T's net profit rose 218.08% to Rs 1598.20 crore on 6.68% rise in total income to Rs 7362.71 crore in Q1 June 2009 over Q1 June 2008. Exceptional profit of a massive Rs 1019.88 crore on sales of long term investment in Ultratech Cements boosted the Q1 net profit. The company announced the result during market hours today.
Decline in L&T's order intake weighed on other capital goods stocks as well. BEML, ABB, Punj Lloyd, Praj Industries, Siemens fell by between 0.04% to 1.53%.
Some cement stocks fell on profit taking after recent rise after a thrust on infrastructure development in the Union Budget 2009-2010. Birla Corporation of India, Grasim Industries, Ambuja Cements, Ultratech Cements, fell by between 0.38% to 1.25%.
Finance Minister Pranab Mukherjee on 6 July 2009, provided a thrust on various infrastructure projects in the Budget which may help boost cement demand. The government announced more spending for urban, water and road projects. The allocation to National Highway development program allocation was increased 23% to Rs 15948 crore.
Construction stocks fell on profit taking after recent gains. Era Infra Engineering, Hindustan Construction Company, IVRCL Infrstructure &Projects and Nagarjuna Construction Company fell by between 1.2% to 2.95%.
India's largest copper maker by sales Sterlite Industries fell 6.12% on equity dilution concerns after the company said it is raising $1.5 billion in an issue of American Depositary Receipts, with parent Vedanta to buy $500 million of the issue. The deal, arranged by JPMorgan and Morgan Stanley, was launched in the United States on Wednesday, 15 July 2009. The stock was the major loser from the Sensex pack.
The world's sixth-largest steel producer, Tata Steel rose 1.29% after company said its unit had raised its holding in Australia's Riversdale Mining to 19.38%.
Telecom stocks rose even after junior telecoms minister Gurudas Kamat today said the government has ordered a special audit of the country's five leading private-sector mobile telecoms firms to check whether there had been any misreporting of revenue. Bharti Airtel and Reliance Communications rose by between 0.67% to 3.09%.
Mahindra Holiday's and resorts settled at Rs 317.10, a premium of 5.7% over the initial public offer price of Rs 300 on its debut today. The stock debuted at Rs 315. It hit a high of Rs 339.70 and low of Rs 311.10. On BSE, 84.96 lakh shares changed hands in the counter.
IT stocks rose on hopes of a revival in US economy. US is the largest market for IT firms. India's third largest IT exporter by sales Wipro rose 0.87% as its American depository receipt (ADR) rose 8.34% on Wednesday.
India's largest IT firm by sales Infosys rose 0.23% after the company raised the lower end of its annual forecast in dollar terms at the time of announcing Q1 June 2009 results before trading hours on Friday, 10 July 2009. Its ADR rose 3.52% overnight. But, India's largest IT exporter by sales TCS fell 0.49%
Some FMCG stocks rose on hopes of revival in India's annual monsoon. FMCG firms derive substantial revenue from the rural sector. Britannia Industries, Tata Tea, Nestle India, Dabur India and United Spirits rose by between 0.5% to 5.47%.
Some drug makers rose after the Finance Minister Pranab Mukherjee reduced customs duty on life saving drugs in the Budget. Ranbaxy Laboratories, Pfizer, Cipla, Lupin, Biocon, Sun Pharmaceutical Industries rose by between 0.1% to 3.61%.
Finance minister on 6 July 2009, reduced basic customs duty on influenza vaccine and nine other specified life-saving drugs used for treating breast cancer, hepatitis-B, rheumatic arthritis, etc.
The government has also reduced basic customs duty for two bulk drugs used in manufacturing these medicines from 10% to 5%. Bulk drugs are processed raw materials used in manufacturing the final doses of medicines.
Power stocks fell on profit taking after disappointment from the Budget. There was lack of any major sops in the Budget for the power sector. Reliance Power, Reliance Infrastructure, Tata Power Company, fell by between 0.09% to 3.97%.
Fertiliser shares rose on hopes of revival in India's annual monsoon. Rashtriya Chemicals and Fertilizers, Nagarjuna Fertilizers & Chemicals, Zuari Industries, Chambal Fertilizers & Chemicals, National fertilizers, Gujarat State Fertilizers Company, Deepak Fertilisers and Petrochemicals Corporation, Tata Chemicals rose by between 0.15% to 2.38%.
Shipping stocks fell even as the Baltic Dry Index, which measures the cost of shipping commodities, climbed 7.3% in London yesterday, taking gains in the past two days to 12%. Essar Shipping, GE Shipping Company and Mercator Lines fell by between 0.2% to 4.31%.
Mahindra Satyam clocked the highest volume of 3.52 crore shares on BSE. Suzlon Energy (1.61 crore shares), Reliance Natural Resources (1.6 crore shares), Ispat Industries (1.48 crore shares) and IFCI (1.46 crore shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 328.33 crore on BSE. Mahindra Satyam (Rs 288.99 crore), Mahindra Holiday's & Resorts (Rs 269.42 crore), Aban Offshore (Rs 261.80 crore) and Larsen & Toubro (Rs 224.22 crore) were the other turnover toppers in that order.
After witnessing the surge on Wednesday the market is expected to make further headways on firm Asian markets. The market may see some short-term profit bookings in frontline stocks creating a volatility in the afternoon trades. Among the indices, the Nifty could test higher levels around the 4250-4250 range, while on the downside it has a key support around 4200-4150. The Sensex has a likely support at 14100 and may face resistance at 14400. Important results: L&T, Opto circuit, Bajaj holding, Bajaj Auto, ICI India, Welspun Gujarat, Zee Ent.
Major US indices gained on Wednesday, with all three major gauges jumping at least 3% after Intel's forecast for a second-half pickup and the Federal Reserve's improved outlook reassured wary investors. The Dow Jones gained 257 points at 8161 and the Nasdaq moved up by 63 points to close at 1863.
Indian floats trading on the US bourses fared better, after crashing in tandem with a slump in domestic bourses in the last few sessions. Among the gainers Tata Motors, Wipro, Satyam and MTNL gained 6-8% each, While Rediff, VSNL, HDFC Bank, ICICI Bank and Infosys rose over 3-5% each. Dr Reddy, however, dropped over 0.44%.
Crude oil prices rose on Wednesday, with the Nymex light crude oil for August delivery gaining $2.02 to close at $61.54 a barrel. In the commodity space, the Comex gold for August delivery gained $16.60 to settle at $939.40 an ounce.
Daily trend of FII/MF investment in equities
On July 14 2009, FIIs were net buyers of stocks to the tune of Rs453 crore (purchases worth Rs2107 crore and sales of Rs1654 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs222 crore (purchases worth Rs807 crore and sales of Rs585 crore).
Data to be announced Today Inflation : Bloomberg expectation –1.4 % v/s –1.55%
Important results: L& T , opto circuit,bajaj holding, bajaj auto,ici India,welspun guj, zee ent
Stocks with +ve bias : Rcom, Grasim
Stocks for short-term delivery: Birla Corp,Hind Zinc
Stocks for investment: Balrampur chini, Emco ltd, Ultratech cement & Bajaj Holdings.
Mahindra Holidays 300
25 to 30
Excel Infoways Ltd. 80 to 85
6 to 8
Raj Oil Mills Ltd. 100 to 120
4 to 6
Adani Power 110 to 130 (Approximate)
16 to 18
NHPC 15 to 20 (Approximate)
3 to 5
Today domestic markets are likely to open positive as majority of Asian markets have opened in green. The US markets recorded exemplary gains in the overnight trade on the back of better than expected Intel’s results. The US Consumer Price Index also reported a sharper than expected increase for the month of June. Domestic markets are likely to extend its gains today as firm rally in US paves way for northward movement in Asian markets.
On Wednesday, domestic markets closed with phenomenal gains. The positive gap opening was boosted by the positive opening of Asian markets. Further as the session advanced, Finance Minister’s positive comments pumped the over all market sentiments. The revival of monsoon also boosted the markets at broader level. The FM has initiated discussion with other ministers on divesting portion of government’s holding in PSUs. Further PSUs will come out with fresh capital issue to meet their respective fund requirements. Sectors like Realty, Metal, Power and CG were the leaders of the day’s rally with gains of 7.98%, 5.67%, 4.77% and 4.66% respectively. BSE Midcap and Smallcap gained by 4.15% and 4.56% respectively. Today domestic markets are likely to trade positive.
The BSE Sensex closed high by 399.54 points at 14,253.24 and NSE Nifty gained 66.60 points at 4,178.00. BSE Mid Cap and Small Cap closed with gains of 198.36 points and 240.78 points at 4,978.64 and 5,523.80 respectively. The BSE Sensex touched intraday high of 14,299.54 and intraday low of 13,891.04.
On Wednesday, the US stocks markets closed with remarkable gains. The better than expected results reported by Intel boosted the buying sentiments across broader level. The Company reported quarterly earnings at 18 cents per share, much higher than the earnings forecast of 8 cents per share. The total revenue of $8 billion and gross margin of 51 per cent were far better than expected. On macro economic front, the Consumer Price Index recorded sharper than expected growth of 0.7% during the month of June. However, a 0.4% drop in June industrial production meant that production has fallen in 17 out of 18 months. But the decline was less than expected and the softest downturn since a positive reading in October 2008. The US light crude oil futures for August delivery closed at $61.51 per barrel up by 3.4 per cent on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 256.72 points at 8,616.21. NASDAQ index gained 63.17 points to 1,862.90 and the S&P 500 (SPX) closed up by 26.84 points at 932.68.
Today major stock markets in Asia are trading higher. Hang Seng is up by 321.85 points at 18,580.51. Shanghai Composite is up by 22.744 points at 3,211.295. Japan''s Nikkei is trading up by 138.48 points at 9,407.73. Strait Times is up by 25.97 points at 2,415.39. Seoul Composite is up by 9.7 points at 1,430.56 and KLSE Composite is up by 17.61 points at 1,097.24.
Indian ADRs rallied on Wednesday. In the IT space, Wipro was up 8.34%, Satyam Computers was up 7.16%, Infosys was up 3.52% and Patni Computers was up 4.02%. In the banking space, ICICI Bank was up 5.49% and HDFC Bank was up 3.59%. In the telecom space, MTNL was up 6.3% and Tata Communication was up 5.1%. In other sectors, Sterlite Industries was up 6.5%, Tata Motors was up 8.32% while Dr Reddy''s Labs, which was the sole loser among the ADRs, was down marginally by 0.44%.
On Wednesday, the partially convertible rupee ended at Rs 48.64/65, 0.7% stronger than its previous close at 48.96/09. The rupee gained strength on the back of phenomenal surge in local stock markets raising hopes for increased Dollar inflow.
The FIIs on Wednesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,106.90 Crore and gross debt purchased stood at Rs 318.00 Crore while the gross equity sold stood at Rs 1,654.00 Crore and gross debt sold stood at Rs 82.00 Crore. Therefore, the net investment of equity reported was Rs 452.90 Crore and net debt was Rs 236.00 Crore.
On BSE, total number of shares traded were 41.94 Crore and total turnover stood at Rs 5,460.73 Crore. On NSE, total number of shares traded were 92.18 Crore and total turnover was Rs 16,685.17 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 58400112 shares, followed by Unitech with 57442344, DLF with 14870347, ICICI Bank with 9562855 and SAIL with 8640681 shares.
On NSE Future and Options, total number of contracts traded in index futures was 631551 with a total turnover of Rs 12,761.55 Crore. Along with this total number of contracts traded in stock futures were 570741 with a total turnover of Rs 15,984.47 crore. Total numbers of contracts for index options were 1308845 with a total turnover of Rs 27,577.26 Crore and total numbers of contracts for stock options were 56721 and notional turnover was Rs 1,645.72 Crore.
Today, Nifty would have a support at 4,215 and resistance at 4,298 and BSE Sensex has support at 14,449 and resistance at 14,678.
The key benchmark indices may extend gains for the third straight day tracking strong global cues. Meanwhile, the government will announce India's wholesale price index (WPI) in the 12 months to 4 July 2009 at around noon today. India's WPI fell 1.55% in the 12 months to 27 June 2009, compared with the previous week's annual decline of 1.3%, government data showed on 9 July 2009.
The key benchmark indices rose for the second straight day yesterday, 15 July 2009 as firm global markets boosted sentiment. The BSE 30-share Sensex jumped 399.54 points or 2.88% to 14,253.24. Equities recovered in last two days after a recent steep slide. The Sensex has risen 852.92 points or 6.36% in last two trading sessions. The barometer index had slipped 13.36% to 13,400.32 on Monday, 13 July 2009 from a high of 15,466.81 on 10 July 2009.
As per the provisional figures on NSE, foreign funds bought shares worth Rs 255.46 crore and the domestic funds bought shares worth Rs 272.97 crore on Wednesday, 15 July 2009.
The stock market has entered a crucial period of earnings. The market expectations are that in Q1 June 2009, the 30 stocks that comprise Mumbai's benchmark Sensex index could see an annual fall in sales of 4-8% and fall in profit at between 9-13%. Larsen & Toubro (L&T), Bajaj Auto, Bajaj Holdings, Zee Entertainment, Welspun Gujarat, Mid-Day, Polaris, Exide Industries, ICI India, Nitin Fire, Opto Circuits, VST Industries, Novartis will announce their quarter ended June 2009 result today.
Asian stocks advanced for a third day today, led by automakers and mining companies, as an improvement in U.S. manufacturing and rising commodity prices fueled optimism that the global economy is recovering. The key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.2% to 2.22%.
China's Shanghai Composite rose 0.2%. China's economy rebounded from its weakest growth in almost a decade as record lending and surging investment
countered a slump in exports. Gross domestic product expanded 7.9 % in the second quarter from a year earlier after a 6.1 % gain in the previous three months, the statistics bureau said in Beijing today.
The US markets closed sharply higher yesterday, 15 July 2009 after Intel's earnings beat estimates and minutes from the Federal Reserve's most recent policy-setting meeting that showed officials judged that the U.S. economy's contraction was slowing. Also a slew of economic reports indicated stronger signs of a turnaround. The Dow gained 256.72 points, or 3.1%, to 8,616.21. The S&P 500 index added 26.84 points, or 3%, to 932.68, while Nasdaq Composite Index gained 63.17 points, or 3.5%, to 1,862.90.
In economic news, readings on New York manufacturing, consumer prices, industrial production and mortgage applications each provided hope for the economy. While none was particularly buoyant, each beat analyst expectations.
Back home, the finance minister said on Wednesday India has a contingency plan if annual monsoon rains remain below normal and there is no need panic, India has suffered the worst start to the vital monsoon in eight decades, raising fears of a drought in a country where only 40 % of farmland is irrigated. But the rains have picked up from a shortfall of 34% of the long-term average in the 1 June – 9 July period, to 29% between 1 June and 14 July as per India's meteorological department.
Meanwhile, finance secretary Ashok Chawla said on Wednesday the government will come up with a road map for the sale of its stake in public sector companies by mid-August. He also said the finance ministry and the Reserve Bank of India would finalise the government's borrowing programme for the financial year, today. The government will have to raise more than Rs 4 lakh crore this year to finance the highest fiscal deficit on record. Mr Chawla said the government plans to borrow Rs 15,000 crore every week till September 2009 as part of its effort to front load most of the current fiscal's total borrowing of Rs 4 lakh crore, or 40% of the total expenditure of over Rs 10 lakh crore. This is to leave room for private sector borrowers in the second half of the fiscal year, he said.
ONGC’s deep-sea project in Brazil has begun crude oil production (BS)
NTPC has signed MoUs with Chattisgarh Government for setting-up a 4,000MW power project (BL)
RIL has sent its first shipment of petrol from Jamnagar new refinery to New York (FE)
Tata Group to rejig its budget hotel brand, Ginger, by divesting unviable properties and adopting a flexible pricing strategy (ET)
Tata Motors to deliver first batch of Nano by July-end (ET)
M&M unveiled a new pick-up vehicle, Bolero MaxiTruck, replacing its three-year old Maxx MaxiTruck (ET)
Tata Motors-owned JLR has announced 300 fresh job cuts at its Halewood plant (BS)
MERC stays tariff hike announced by Reliance Infrastructure (ET)
Tech M has set-up a BPO centre in Kolkata (BS)
Dabur eyes acquisition up to Rs5bn in healthcare (BS)
Tata Teleservices is eying a majority stake in Matrix Cellular Services (ET)
Essar Oil plans to expand its retail fuel outlet network to 1,500 by the end of this year (BL)
Reliance Big Entertainment, a ADAG Group company, has sealed initial funding of US$825mn for its JV with Dreamworks (ET)
MTNL has invited bids from international firms to run its 3G mobile services (ET)
IDBI plans rights issue to bolster capital base (BS)
Godrej Properties, the real estate arm of Godrej Group, receives SEBI’s approval for IPO (ET)
JSL acquires chrome ore assets in Turkey (ET)
Jet Airways and Sahara have failed to settle tax dispute out-of-court (FE)
3i Infotech will buy the entire 49% stake of Elegon Infotech from Yucheng Technologies, its JV partner in China (BS)
Panacea Biotech along with two other companies has received the nod to develop swine flu vaccine (ET)
Government targets Rs150bn from divestment; to present a roadmap by mid-August (ET)
India likely to miss its export target of US$200bn in the current year due to continuing global crisis (ET)Government has initiated talks with DoT for BSNL stake sale (BS
Being happy doesn't mean that everything is perfect. It means that you've decided to look beyond the imperfections.
The local bulls have decided to look beyond the budget. The FM’s statements on disinvestment and clarifications on the borrowing programme, coupled with reports of encouraging progress in monsoon have allowed bulls to raise their glasses. A simultaneous rally across global markets has added fuel to the fire.
Spirits are not high when a discount sale is underway in the market; rather happy hours are when you can sell at a profit. The Fed’s minutes released give reason to cheer, though there is nothing fresh about the assessment of the US economy. Still, words like recession may soon end could provide some more ammunition to the bulls. We expect a positive opening, but it would be wise to cash in on the rally rather than get in.
Performance chasing my perk up sentiment for some time but the morning euphoria may not last all day. Assessing the market trend has become quite a task given the heightened volatility. Several more bouts of rallies and reversals could follow in the coming weeks and perhaps months before there is stability.
China's gross domestic product (GDP) expands by 7.9% in the second quarter, beating estimates for a 7.7% expansion, thanks to rising domestic consumption and a strong increase in industrial activity. Consumer and wholesale prices, however, sink lower.
FIIs were net buyers of Rs2.55bn in the cash segment on Wednesday on a provisional basis while the local funds too picked up shares worth Rs2.72bn. In the F&O segment, the foreign funds were net buyers at Rs9.65bn.
Results Today: Bajaj Holdings, Bajaj Auto, Exide, ICI India, JK Tyre, L&T, Mid-Day Multimedia, Nitin Fire, Novartis India, Opto Circuits, Polaris, Swaraj Engine, Welspun Gujarat and Zee Entertainment.
US stocks jumped on Wednesday, with all three major indices rising at least 3% after Intel's forecast for a second-half pickup and the Federal Reserve's improved outlook reassured wary investors.
The Dow Jones Industrial Average gained 256 points, or 3.1%, to 8616.21. The S&P 500 index added 27 points, or 3%, to 932.68. The Nasdaq Composite index rose 63 points, or 3.5% to 1862.90.
Both the Dow and Nasdaq saw their best one-day point gains in nearly four months. The S&P 500's gain was the best in two months.
Intel reported profit and revenue late on Tuesday that dipped from a year ago, but surpassed forecasts. Also, the chipmaker predicted better revenue growth in the third and fourth quarters thanks to improved demand for personal computers. Intel shares jumped 7% and boosted other big tech stocks.
While the start to the financial results was positive, it is too early to pop the champagne regarding second-quarter results. S&P 500 profits are expected to have fallen around 36% in the second quarter versus a year ago, according to the latest Thomson Reuters forecast.
Worries about the corporate earnings outlook and the health of the economy have been a drag on stocks over the last month following a three-month rally that lifted the S&P 500 by 40%.
The rally on Wednesday intensified after the Federal Reserve said that the end of the recession might be on the horizon. The Fed released the minutes from the last policy meeting and the forecast through 2010. Information reviewed at the meeting showed that the US economy remained weak, although the pace of the decline seemed to be lessening. In its forecast, the Fed said that the unemployment rate could top 10% this year, but it also said that the recession may soon end.
Oil stocks jumped in line with the underlying commodity prices.
Goldman Sachs reported a bigger-than-expected quarterly profit due to strength in its fixed income and trading businesses.
Citigroup, Bank of America and JPMorgan Chase report results either on Thursday or Friday. Goldman and the other three bank stocks rallied, along with other big financial firms - American Express, Morgan Stanley and Wells Fargo. The KBW Bank index gained 4.3%.
The consumer price index (CPI), a measure of consumer inflation, edged up 0.7% in June after rising 0.1% in May, according to a government report released in the morning. Economists had thought it would rise 0.6%. So-called core CPI, which strips out volatile food and energy prices, grew 0.2% versus a rise of 0.1% in May. Economists thought it would rise 0.1%.
Industrial production fell 0.4%, according to another government report, versus forecasts for a drop of 0.6%. Industrial production fell 1.2% in May. Capacity utilization dipped to 68% from 68.2% in the previous month. Economists thought it would dip to 67.9%.
Treasury prices fell, raising the yield on the benchmark 10-year note to 3.56% from 3.47% on Tuesday.
In currency trading, the dollar fell against the euro and gained versus the Japanese yen.
US light crude oil for August delivery rose $2.02 to settle at $61.54 a barrel on the New York Mercantile Exchange.
COMEX gold for August delivery rose $16.60 to settle at $939.10 an ounce.
JPMorgan Chase releases its quarterly financial report before the start of trading on Thursday. Google and IBM report results after the close. Small-business lender CIT Group will also be in focus. The federal government could be set to announce a bailout of the struggling company within the next 24 hours.
On the economic front, the Philadelphia Fed index, a monthly manufacturing report, is due shortly after the start of trading. RealtyTrac's report on foreclosure filings in the first half of the year is due in the morning. Additionally, the weekly jobless claims report from the Labor Department is on tap.
European shares staged a broad-based advance, with technology stocks leading the rally. The pan-European Dow Jones Stoxx 600 index rose 2.7% to 208.89. The UK's FTSE 100 index climbed 2.6% to 4,346.46, while Germany's DAX index rose 3.1% to 4,928.44 and the French CAC-40 index advanced 2.9% to 3,171.27.
For the second day running, the bulls marched ahead in style, aided by firm global trend coupled with encouraging progress in southwest monsoon. Even the results announced by some of the domestic companies were pretty good, bolstering the confidence further. Earlier, global equity markets had been buttressed by better-than-expected results of Goldman Sachs and Intel.
With today’s smart advance, the BSE Sensex has now recouped almost 900 points while the NSE Nifty has recovered nearly 260 points in last couple of days. The two-day rally is in stark contrast to the grim mood that set in post the budget, though the near-term trend still appears to be uncertain.
Realty, Metals, Power and Capital Goods stocks hogged the limelight and even the Mid-Cap and the Small-Cap stocks joined the party.
The Sensex finally surged by 400 points or 2.8% to end at 14,253 after touching a high of 13,299 and a low of 13,891. The index had opened at 13,917 against the previous close of 13,853.
The NSE Nifty shot up by 134 points or 3.2% to shut shop at 4,245.
Asian markets ended in the positive terrain. The Nikkei in Japan gained 0.3% at 9,269, Australia's S&P/ASX ended higher by 1.5% at 3,924. The Hang Seng index rose by 2% to 18,258.
In Europe, stocks were trading in the green. The FTSE in the UK was up 1.4% at 4,297. The DAX rose 1.6% at 4,861 and the CAC 40 gained 1.4% at 3,125.
Coming back to India, among the BSE sectoral indices, the BSE Realty index was the top gainer, surging by an impressive 8%, followed by the BSE Metal index that was up 5.6%. The BSE Power index rose 5% and BSE Capital Goods index was up 4.7%.
The BSE Mid-Cap index jumped 4.1% and the BSE Small-Cap index rose 4.5%.
Within the Sensex, the major gainers were Hindalco, JP Associates, DLF, Hero Honda, BHEL, Tata Steel, Tata Motors and RCOM. Infosys was the only loser among the 30-components of Sensex.
Outside the frontline indices, the top gainers included Bhushan Steel, Indiabulls Real Estate, Lanco Infra, Ackruty City, Opto Circuits, IFCI, Welspun Gujarat and RNRL.
Among the big losers in the broader market were Jubilant Organosys, EIH, KSK Energy, Union Bank, Max India and GTL.
Shares of Adani Enterprise shot up by over 8% to Rs801. Adani Power, a power project development company promoted by Adani Enterprises is entering the capital markets with an IPO of 301,652,031 equity shares of Rs10 each for cash at a price to be decided through a 100% book-building process. The issue opens on July 28 and closes on July 31.
Shares of Indiabulls Real Estate rallied by over 13% to Rs215 after reports stated that Indiabulls Power, a 100% subsidiary of Indiabulls Real Estate, is planning to raise Rs15bn through an IPO in August. The company has filed its draft red herring prospectus with SEBI.
Indiabulls Power plans to offer ~340mn equity shares for sale in the primary market. Following the move Indiabulls Real Estate’s holding will drop down from the current 71.4% to 57.8%.
The stock opened at Rs193 and made an intra-day high of Rs224 and a low of Rs193. Total traded volumes stood at 6.9mn shares on BSE.
Bharti Airtel and MTN Group are expected to confirm the details of the deal in the coming weeks, media reports stated. MTN, on July 6 had announced that it was still in talks with Bharti about a possible merger.
Shares of Bharti Airtel gained by 1% to Rs780. The stock opened at Rs794 and made an intra-day high of Rs794 and a low of Rs777. Total traded volumes stood at 0.29mn shares on BSE.
Shares of IDBI Bank surged by over 5.6% to Rs100 after the bank posted a net profit of Rs1718.30mn for the quarter ended June 30, 2009 as compared to Rs1597.60mn for the quarter ended June 30, 2008.
The total Income has increased from Rs27561.50mn for the quarter ended June 30, 2008 to Rs42189.10mn for the quarter ended June 30, 2009.
Shares of Infotech Entreprises have shot up by 15% to Rs202 after the company posted net profit of Rs462.6mn as compared to Rs245.6mn for the quarter ended 30th June 2008.
The net sales stood at Rs2326mn for the quarter ended 30th June 2009 as compared to Rs2006.1mn for the quarter ended 3oth June 2008.
Shares of 3i Infotech surged by over 4% to Rs72 after the company announced that it has entered into an agreement with Yucheng Technologies Ltd (Yucheng) (the JV partner of the company in China) to acquire the 49% stake from Yucheng in order to make Elegon Infotech Ltd a wholly owned subsidiary of the Company in China.
The stock opened at Rs70 and made an intra-day high of Rs73 and a low of Rs70.45. Total traded volumes stood at 0.5mn shares on BSE.
Shares of OnMobile Global climbed over 13% to Rs516 after the Company signed business agreements with Telefonica Internacional, S.A.U. Spain (Telefonica), for exclusive and non-exclusive market rights, thereby enabling the Company to deploy various Valde Added Services including RBT, Music radio, Soccer portal, Voice Search, and several other VAS services in the Latin American telecommunication markets where Telefonica operates over the next few years.
Most of the major VAS services will be launched by Telefonica on an exclusive basis with OnMobile.
Weak dollar takes precious metals higher
Precious metal prices rose for the third straight day on Wednesday, 15 July, 2009. Prices rose with higher crude price and weak dollar.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Wednesday, gold for August delivery ended at $939.4, higher by $16.6 (1.8%) an ounce on the New York Mercantile Exchange. Last week, gold ended lower by 1.6%. Year to date, gold prices are higher by 6.3%.
For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (11%) since then.
On Wednesday, Comex silver futures for September delivery rose 35.5 cents (2.7%) at $13.208 an ounce.
Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 17.1% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the U.S. dollar lost ground against most of its major rivals after data showed U.S. consumer prices rose in June at their fastest pace in nearly a year. The dollar index, which weighs the dollar against a basket of six other currencies, fell by almost 0.7% during the day.
The Labor Department reported on Wednesday, 15 July, 2009 that U.S. consumer prices rose a seasonally adjusted 0.7% in June, 2009 matching expectations as gasoline prices jumped higher.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for August delivery closed higher by Rs 114 (0.77%) at Rs 14,770 per 10 grams. Prices rose to a high of Rs 14,789 per 10 grams and fell to a low of Rs 14,631 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 325 (1.5%) higher at Rs 21,858/Kg. Prices opened at Rs 21,565/kg and rose to a high of Rs 21,990/Kg during the day's trading.
Prices end their losing streak as crude inventories drop
Crude prices shot up on Wednesday, 15 July, 2009 as the dollar weakened and energy department reported drop in crude inventories for last week.
On Wednesday, crude-oil futures for light sweet crude for August delivery closed at $61.54/barrel (higher by $2.02 or 3.4%). Last week, crude ended lower by 10.3%.
For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 63% since then. In July, 2009, it has dropped by 12% till date. Year to date, in 2009, crude prices are higher by 39%.
EIA reported today that U.S. crude inventories fell 2.8 million barrels in the week ended Friday, 10 July, 2009. The drawdown in crude inventories came as crude-oil inputs in U.S. refineries rose to 15.105 million barrels a day last week, the highest level since late August. Refiners' utilization rate rose to 87.9%.
EIA also reported that gasoline inventories rose 1.5 million barrels, while distillate stockpiles, which include diesel and heating oil, rose 600,000 barrels. Demand for petroleum products, however, remained weak, pushing total petroleum product inventories to 771.6 million barrels last week, up 4.6 million barrels from a week ago. That's the highest level since September 1998.
In the currency market on Wednesday, the U.S. dollar lost ground against most of its major rivals after data showed U.S. consumer prices rose in June at their fastest pace in nearly a year. The dollar index, which weighs the dollar against a basket of six other currencies, fell by almost 0.7% during the day.
In its latest monthly report, OPEC reported yesterday that global oil demand will fall by 1.6 million barrels a day this year from a year ago. It also said the cartel increased its production in June for a third straight month. As per OPEC, oil demand will fall this year as the global economy is expected to contract 1.4%. The cartel, which accounts for about one third of the world's oil production, also said its oil production in June rose to 28.441 million barrels a day.
Also at the Nymex on Wednesday, the August reformulated gasoline contract rose 6.1 cents, or 3.7%, to $1.7081 a gallon and August heating oil rose 7.02 cents, or 4.6%, to $1.5821 a gallon.
August natural-gas futures fell 14.6 cents, or 4.3%, to $3.283 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 August delivery closed at Rs 3,059/barrel, higher by Rs 84 (2.8%) against previous day's close. Natural gas for July delivery closed at Rs 159.9/mmbtu, lower by Rs 6.9/mmbtu (4.1%).
Initial public offering of 30.16 crore equity shares
Adani Power which is building four projects with a combined capacity of 6,600 megawatts, plans to tap the capital markets on 28 July 2009 with an initial public offering of 30.16 crore equity shares of Rs 10 each at a price to be decided through the book-building process. The issue would constitute 13.84% of the post-issue paid-up capital. It includes a reservation of up to 80 lakh shares
for employees. The net issue is for 29.36 crore shares, and constitutes 13.47% of the post-issue capital. The IPO closes on 31 July 2009.
Adani Enterprises holds 90.57% stake in Adani Power (as on 31 March 2008). Adani Enterprises is the flagship company of the Adani group. The company is a global trading
organization with operations covering a wide range of commodities like agro, energy, metals & minerals.
We recommend a buy in the stock of Rolta India from a short-term trading horizon. It is evident from the charts of Rolta that it has been trending up, forming higher peaks and higher troughs since early March low of Rs 40. This low is apparently its 52-week low. However, after recording a high of Rs 152 on June 10, the stock was on a corrective decline till Rs 105 and found support. Taking support around Rs 105 the stock resumed its intermediate-term uptrend recently. The stock gained over 10 per cent over the past two trading sessions, reinforcing the uptrend. Both the daily and weekly relative strength index (RSI) are heading towards the bullish zone in the neutral region. Taking into consideration the intermediate-term uptrend line is intact and still in place, we are bullish on the stock from a short-term perspective. We expect it to move up further until it hits our price target of Rs 130 in the approaching trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 111.