Friday, August 14, 2009
Nifty August 2009 futures were at 4561, at a discount of 19.05 points as compared to the spot closing of 4580.05. Turnover in NSE's futures & options (F&O) segment was Rs 63,891.72 crore, lower than Rs 65,552.20 crore on Thursday, 13 August 2009.
JSW Steel August 2009 futures were at discount at 730.85 compared to the spot closing of 738.25.
DLF August 2009 futures were at discount at 392.40 compared to the spot closing of 395.50.
IFCI August 2009 futures were near spot price at 53.05 compared to the spot closing of 53.10.
In the cash market, the S&P CNX Nifty fell 24.95 points or 0.54% at 4580.05.
Shanghai, Sensex ends lower while Sydney, Seoul ends higher
Stock market in Asian region rose on Friday, 14 August 2009, as higher metal prices and anticipation of more takeovers fueled speculation a five-month rally will continue.
On Wall Street, stocks flaunted their resilience after Wednesday's rally, pulling off another, albeit smaller, wins despite disappointing data. After an up-and-down day, the Dow Jones Industrial Average ultimately tacked on 36.58 points, or 0.4%, to 9398.19. The S&P 500 advanced 6.92 points, or 0.7%, to 1012.73, and the Nasdaq Composite added 10.63, or 0.5%, to 2009.35.
Earlier in the day, disappointing retail, foreclosure, and jobless claims data took away some of the excitement that followed an unexpected increase in GDP in France and Germany and the Fed's most recent release.
In the commodity market, crude oil rose for a third day before a report forecast to show that industrial production in the U.S. rose for the first time in nine months, adding to optimism the global economy is reviving.
Crude oil for September delivery rose as much as $1.08, or 1.5%t, to $71.60 a barrel on the New York Mercantile Exchange, and traded at $70.96 at 9:52 a.m. in London.
Brent crude oil for September settlement gained as much as 80 cents, or 1.1%, to $74.28 a barrel on London’s ICE Futures Europe exchange. It was at $74.02 a barrel at 9:52 a.m. in London.
Gold climbed for a third day and headed for a fifth weekly advance as investors sought an alternative to a weakening dollar and commodities rose on signs of an economic turnaround. Gold for immediate delivery rose 0.2% to $956.47 an ounce at 2:03 p.m. in Singapore.
In the currency market, US dollar pares some of its overnight losses and remains in tight range against most major currencies in Asia today. Near term support levels in most pairs are still holding well for the moment and hence, there is generally no change in the anticipation of another round of dollar rally in near term.
The Japanese yen edge higher against major currencies. The Japanese yen was quoted at 95.25 per greenback, down from Thursday’s quote of 95.27 yen.
The Hong Kong dollar was trading at HK$ 7.7506 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 rose nearly 1 US cent today after risk sentiment rose on equity market gains and a positive economic outlook from the governor of the Reserve Bank of Australia (RBA). At the local close, the dollar was trading at $US0.8427, up from Thursday's close of $US0.8384.
In Wellington trade, the New Zealand dollar rose as evidence that the economy is improving mounted and as the Australian dollar rose to an 11-month high. By 5 pm the NZ dollar was US 67.87 cents from US 67.28 cents at 5 pm yesterday. The high of US 68.26 cents was the highest since early October 2008.
The South Korean won ended at 1,239.2 won to the U.S. dollar, down 1.9 won from Thursday's close, as offshore dealers snapped up the greenback.
The Taiwan dollar strengthens further against the greenback. The Taiwan dollar gained against the US dollar as it was trading higher at NT$ 32.8860, up by NT$ 0.0120 from Thursday’s close of NT$32. 8980.
Coming back in equities, Asian share markets were mixed, supported by gains in U.S. stocks, though concerns about the outlook for U.S. consumption weighed on some sectors. Comments from Australia's central bank governor reinforced expectations for an economic recovery and helped the Australian and New Zealand stock markets.
In Japan, the shares market surged with benchmark indices touches 10-month high, with investor confidence furthers reinforced on better-than-expected earnings from Wal-Mart Stores and after Germany and France reported an unexpected economic growth in the second quarter. Shares of Hitachi Construction Machinery led the rally after Mitsubishi UFJ Securities raised rating for the machinery maker. At the closing bell, the Nikkei 225 Stock Average index surged 80.14 points, or 0.76%, to 10,597.33, while the broader Topix index added 5.16 points, 0.53%, to 973.57.
On the economic front, Board members of the Bank of Japan said that capital expenditure, which has already plummeted during the current global economic slowdown could fall further, minutes from the July 14 and 15 monetary policy meeting revealed today. At the meeting, the board voted unanimously to keep the overnight call rate unchanged at 0.10%. The central bank did not announce any new policy measures along with the monetary policy statement. The Ministry of Economy, Trade and Industry revealed that the index measuring tertiary industrial activity in Japan inched higher by a seasonally adjusted 0.1% to 96.1 points in June compared to the previous month.
In Mainland China, share market tumbled with benchmark indices slide six week closing low on broad based selling across the sector, as investors’ confidence turned fragile on concern this year’s rally has overvalued the prospects for earnings growth and the government will tighten its monetary policy in the second half of the year. At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, plummeted 93.59 points, or 2.98%, to 3,046.97, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, stumbled 2.8% to 3,344.46.
On the economic front, China's stamp duty revenue on stock trading soared 152.35% year on year to RMB 7.09 billion in July, due to the booming stock market, according to statistics released by the Ministry of Finance yesterday.
In Hong Kong, the benchmark index bounced back from morning low to close edge higher as a bout of profit booking and buying at lower prices witnessed across the board. The benchmark indices tumbled in the morning on tracking weak cues from Shanghai bourses on worries about liquidity crunch and lending squeeze as increased supply of shares amid new listings and rights issues.
The Hang Seng Index bounced 32.03 points, or 0.15%, to 20,893.33, while the Hang Seng China Enterprise dropped 0.35 point to 11,899.80. The Hong Kong benchmark Hang Seng Index has gained 517.62 points or 2.54%, while Hang Seng China Enterprises Index added 287.62 points or 2.48%, in the week ended Friday, 14 August 2009.
In Australia, the stock market continued their strong run for fifth consecutive day, on the back of a positive cues from Wall Street and European market and with support from firmer base metal and energy prices. The industrials and building related stocks were the star performers, meanwhile, energy and materials sector climbed up on a firmer metal and oil price. Top four banks continued the rally on an upbeat commentary from Reserve Bank Governor Glenn Stevens. Health care and telecom surged inline with the market rally.
At the closing bell, the benchmark S&P/ASX200 index added 25.1 points, or 0.57%, to 4,461, meanwhile the broader All Ordinaries raised 28.4 points, or 0.64%, to 4,465.1. The benchmark S&P/ASX200 index has gained 161.60 points or 3.76%, while the Broader All Ordinaries rose 162 points or 3.76%, in the week ended Friday, 14 August 2009.
In New Zealand, stock market ended the week in the positive region supported by gains on the US markets. The share market continued to maintain its winning spree for the thirds day in a row on Friday. The NZX50 advanced 0.71% or 22.41 points to 3151.26. The NZX 15 ascended 0.43 % or 25.07 points to close at 5796.26.
In South Korea, stocks finished 1.71% higher as large-capped bank and tech issues rose on solid foreign buying. The benchmark Korean Composite Stock Price Index (KOSPI) shot up 26.77 points to 1,591.41, the highest since 31 July 2008.
In Singapore, the stock market climbed up after opening higher, on the back of positive finish of European market and Wall Street overnight and firmer commodities market. Banks and properties led the rally on tacking US peers. Meanwhile buying pressure was evident in multi industries and construction shares. Noble Group outperformed on better than expected earning. At the closing bell, the blue chip Straits Times Index added 17.33 points, or 0.66%, to 2,631.51. The blue chip Straits Times Index has added 82.16 points or 3.22%, in the week ended Friday, 14 August 2009.
In Taiwan, stock market finished Friday at two weeks high, as construction and steel shares rose after a local newspaper said Taiwan's cabinet had decided to set aside a special budget of up to T$200 billion for reconstruction after Typhoon Morakot left a path of destruction as it swept over the island. The benchmark Taiex share index attained a new two-weeks high by adding 34.55 points or 0.49% in a day, closing the day at 7069.51, the highest closing since 31 July 2009
The Executive Yuan (the Cabinet) decided to appropriate a special budget of NT$100 billion at minimum and NT$200 billion at maximum to fund the rescue and reconstruction operations related to typhoon Morakot. The special budget will be based on the special reconstruction statute for the 7 August flood, which will be put forth in no time, and will boost the central government’s total budget outlay next year to over NT$2 trillion, a record high.
In Philippines, stock market closed the week marginally lower, as investor’s took cue from the performance of Wall Street overnight. US stocks closed Thursday trading with modest gains after US reported a 0.1-percent decline in retail sales in July. However optimistic economic data on the domestic front, acted as a helping hand for the composite index, which kept the PSEi only marginally lower. At the concluding bell, the benchmark index PSEi lost 0.21% or 6.05 points to 2,850.01, while the All Shares index escalated 0.27% or 4.96 points to 1,806.98.
In India, the key benchmark indices provisionally closed near the day's low on profit taking ahead of the weekend after yesterday's sharp rally. The BSE 30-share Sensex was down 106.86 points or 0.69% at 15,411.63. The S&P CNX Nifty was down 24.95 points or 0.54% to 4,580.05.
Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.20% or 2.38 points to 1188.57 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2386.86.
In other regional market, European shares advanced on Friday, in what could be the third straight day of gains, as investors showed further confidence the economic backdrop will improve. On a regional level, the U.K. FTSE 100 index rose 0.7% to 4,788.60, the German DAX index rose 0.7% to 5,440.44 and the French CAC-40 index rose 0.7% to 3,550.76.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
14/8/2009 531223 ANJANI SYNTH SAGAR TEX CREATION PVT.LTD S 100051 23.90
14/8/2009 512149 AVANCE TECHN MANJULABEN SURESH GORADIA B 310000 2.23
14/8/2009 512149 AVANCE TECHN PANNALAL HASTIMAL GULECHA B 700000 2.23
14/8/2009 512149 AVANCE TECHN RAJESH R VIRA B 335000 2.23
14/8/2009 512149 AVANCE TECHN JAYESH R VIRA B 335000 2.23
14/8/2009 512149 AVANCE TECHN BIPIN R VIRA B 335000 2.23
14/8/2009 512149 AVANCE TECHN CHANDRAKANT B SHAH S 2025100 2.23
14/8/2009 512149 AVANCE TECHN VIPUL B GONDALIYA S 425000 2.23
14/8/2009 512149 AVANCE TECHN JASMIN S BAJORIYA S 950000 2.23
14/8/2009 512149 AVANCE TECHN SMK SHARES & STOCK BROKING PVT. LTD. S 350000 2.23
14/8/2009 512149 AVANCE TECHN NARESH KUMAR RAMCHANDRA TULSYAN S 800000 2.23
14/8/2009 532995 AVON CORP S V ENTERPRISES B 638908 10.94
14/8/2009 532995 AVON CORP S V ENTERPRISES S 638908 10.04
14/8/2009 526839 CCAP LTD ANKUR JHUNJHUNWALA B 18000 62.54
14/8/2009 526839 CCAP LTD JMP SECURITIES PVT LTD B 21500 64.59
14/8/2009 526839 CCAP LTD KALPANA MADHANI SECURITIES PVT. LTD. B 20000 67.85
14/8/2009 526839 CCAP LTD DYNAMIC STOCK BROKING INDIA PVT LTD B 18004 67.85
14/8/2009 526839 CCAP LTD DYNAMIC STOCK BROKING INDIA PVT LTD S 18004 67.85
14/8/2009 526839 CCAP LTD BP FINTRADE PRIVATE LIMITED S 32232 67.61
14/8/2009 590080 EASTERN GAS HITESHSHASHIKANT JHAVERI B 115051 46.74
14/8/2009 590080 EASTERN GAS HITESHSHASHIKANT JHAVERI S 67426 47.90
14/8/2009 532666 FCS SOFTWARE DALIP KUMAR S 750000 65.37
14/8/2009 513337 GUJ.TOOLROOM EMERGING EQUITIES PVT. LTD. B 50000 9.65
14/8/2009 513337 GUJ.TOOLROOM DHIRAJLAL V SANGHVI HUF S 25000 9.65
14/8/2009 513337 GUJ.TOOLROOM SANGHVI FINCAP LTD. S 29300 9.67
14/8/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 27000 7.36
14/8/2009 531784 KADAMB CONST SUKUSAMA TRADING & INVESTMENTS PVT LTD B 18501 77.25
14/8/2009 531784 KADAMB CONST SAMYAK INTERNATIONAL LTD B 13725 74.64
14/8/2009 530255 KAY POW PAP JOLLY GUPTA B 55380 7.77
14/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 581102 7.89
14/8/2009 530255 KAY POW PAP OMPARKASH GUPTA B 75001 7.76
14/8/2009 530255 KAY POW PAP NARENDER GUPTA B 82755 7.76
14/8/2009 530255 KAY POW PAP ANKIT KUMAR GUPTA B 70000 7.94
14/8/2009 530255 KAY POW PAP KAILASHCHAND GUPTA B 133315 7.77
14/8/2009 530255 KAY POW PAP JOLLY GUPTA S 83380 7.85
14/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 422684 7.78
14/8/2009 530255 KAY POW PAP OMPARKASH GUPTA S 100001 7.85
14/8/2009 530255 KAY POW PAP NARENDER GUPTA S 90000 7.69
14/8/2009 530255 KAY POW PAP ANKIT KUMAR GUPTA S 70000 8.32
14/8/2009 530255 KAY POW PAP SUNILKUMAR GUPTA S 100000 7.53
14/8/2009 530255 KAY POW PAP SUNDERDASS AGARWAL S 85095 7.57
14/8/2009 530255 KAY POW PAP KAILASHCHAND GUPTA S 212137 8.00
14/8/2009 531602 KOFF BR PICT PREM MOHANLAL PARIKH B 400000 3.67
14/8/2009 512559 KOHINORFOODS HITESHSHASHIKANT JHAVERI B 252677 64.47
14/8/2009 512559 KOHINORFOODS HITESHSHASHIKANT JHAVERI S 268545 64.45
14/8/2009 500313 OIL COUNTR T HITESHSHASHIKANT JHAVERI B 310090 80.15
14/8/2009 500313 OIL COUNTR T HITESHSHASHIKANT JHAVERI S 283360 80.10
14/8/2009 512449 PACE TEXTILES KIRAN SUTTAMCHAND B 450000 56.26
14/8/2009 532736 POWERSOFT ARCADIA SHARE & STOCK BROKERS PVT. LTD B 77508 21.91
14/8/2009 511652 RAM KAASHYAP SETU SECURITIES PVT LTD B 24000 10.24
14/8/2009 511652 RAM KAASHYAP TRUPTI ARUN MANDAVIYA B 25000 10.24
14/8/2009 511652 RAM KAASHYAP HITEN MEHTA B B 24000 10.24
14/8/2009 511652 RAM KAASHYAP KETAN PRAVIN CHANDRA MODY B 25000 10.24
14/8/2009 511652 RAM KAASHYAP VP PATEL B 25200 10.22
14/8/2009 511652 RAM KAASHYAP HITEN BHUPATRAI MEHTA B 23300 10.22
14/8/2009 511652 RAM KAASHYAP POWER PLAY CONSTRUCTION PRIVAT S 200000 10.24
14/8/2009 513558 REAL STRIP L GOPAL SANGHVI BABULAL B 39129 49.37
14/8/2009 513558 REAL STRIP L SHANTILAL SHETH S 25000 50.00
14/8/2009 531952 RIBA TEXTILE SHAILESH SOMABHAI PATEL B 52102 49.35
14/8/2009 531952 RIBA TEXTILE SHAISHIL TUSHARKUMAR JHAVERI S 50800 49.54
14/8/2009 512413 SPECTACLE ARCADIA SHARE & STOCK BROKERS PVT. LTD B 300000 41.01
14/8/2009 512413 SPECTACLE HEMANT MADHUSUDAN SHETH S 595500 41.02
14/8/2009 522108 YUKEN INDIA FAIRDEAL INFIN SERVICES PVT. LTD. B 26900 69.27
14/8/2009 522108 YUKEN INDIA GIRISH ISHWARDAS MANGLANI B 15429 70.39
14/8/2009 522108 YUKEN INDIA FAIRDEAL INFIN SERVICES PVT. LTD. S 24663 70.07
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
14-AUG-2009,APTECHT,Aptech Limited,ASIT C MEHTA FOREX PRIVATE LTD,BUY,278650,217.44,-
14-AUG-2009,EMCO,Emco Limited,RAJENDRA ANIL MAYUR,BUY,421303,86.28,-
14-AUG-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4400568,51.51,-
14-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11024245,22.92,-
14-AUG-2009,KOHINOOR,Kohinoor Foods Limited,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,164243,64.79,-
14-AUG-2009,RUCHINFRA,Ruchi Infrastructure Ltd.,RUCHI SOYA INDUSTRIES LTD.,BUY,2230000,40.99,-
14-AUG-2009,WEBELSOLAR,Webel-SL Energy Systems L,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,149477,290.00,-
14-AUG-2009,WEBELSOLAR,Webel-SL Energy Systems L,MACKERTICH CONSULTANCY SERVICES P. LTD,BUY,7383,288.67,-
14-AUG-2009,APTECHT,Aptech Limited,ASIT C MEHTA FOREX PRIVATE LTD,SELL,278650,218.41,-
14-AUG-2009,EMCO,Emco Limited,RAJENDRA ANIL MAYUR,SELL,49303,85.39,-
14-AUG-2009,EMCO,Emco Limited,SARALA SHANTILAL MUTTHA,SELL,400000,86.30,-
14-AUG-2009,FCSSOFT,FCS Software Solutions Li,KUMAR DALIP,SELL,750000,65.37,-
14-AUG-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4376928,51.49,-
14-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11544195,22.92,-
14-AUG-2009,KOHINOOR,Kohinoor Foods Limited,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,155343,64.41,-
14-AUG-2009,NIITTECH,NIIT Technologies Limited,L&T CAPITAL COMPANY LIMITED,SELL,324316,115.70,-
14-AUG-2009,RUCHINFRA,Ruchi Infrastructure Ltd.,DINESH SHAHRA (HUF),SELL,1500000,41.00,-
14-AUG-2009,WEBELSOLAR,Webel-SL Energy Systems L,KAYPEE INFOCOM PRIVATE LIMITED,SELL,50000,290.01,-
14-AUG-2009,WEBELSOLAR,Webel-SL Energy Systems L,MACKERTICH CONSULTANCY SERVICES P. LTD,SELL,40000,290.03,-
14-AUG-2009,WEBELSOLAR,Webel-SL Energy Systems L,NOVEL APARTMENTS PVT LTD,SELL,52500,290.05,-
After previous session’s strong rally, the domestic market closed the today’s instable session in red terrain on profit booking. Depressing US index futures weighed on the sentiments. Benchmark indices were under pressure also on concerns regarding poor monsoon. However, market tried to recover during mid session on the positive Asian markets and firm European markets, though were unable to continue the respite. The BSE Sensex ended below 15,450 level and NSE Nifty closed below 4,500 mark.
Market belled the day on a slight positive note after a sharp rise on the previous working day. The US stocks markets closed higher on Thursday, on strong performance by Wal-Mart. In addition, investors applauded an encouraging business-inventories report, which indicated that the recession might be winding down. Wal-Mart beats Street expectations and reported better-than-expected earnings along with solid outlook. However, Indian benchmark indices suddenly turned volatile and started losing ground as selling emerged among the key stocks. Further, market continued to extend its losses despite little unsuccessful attempt to recover. After skipping up and down on account of continuous buying and selling activity witnessed in heavyweights, market finally landed to negative terrain. From the sectoral front, most of the selling was seen in Realty, FMCG, IT, Teck, Auto and Pharma stocks. However, Oil & Gas and Consumer Durables stocks were in limelight as witnessed most of the buying from these baskets.
Among the Sensex pack 25 stocks ended in red territory and 5 in green. The market breadth indicating the overall health of the market remained negative as 1417 stocks closed in red while 1243 stocks closed in green and 72 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 106.86 points at 15,411.63 and NSE Nifty ended down by 24.95 points at 4,580.05. BSE Small Caps closed with gains of 25.51 points at 6,412.56 whereas BSE Mid Caps ended with losses of 50.8 points at 5,603.81. The BSE Sensex touched intraday high of 15,535.47 and intraday low of 15,367.61.
Losers from the BSE Sensex pack are JP Associates (3.52%), HUL (2.60%), NTPC Ltd (2.41%), RCom (2.34%), ACC Ltd (2.21%), HDFC (2.19%), Maruti Suzuki (1.99%), Herohonda Motors (1.93%), ITC Ltd (1.78%), ICICI Bank (1.69%), Sun Pharma (1.63%), Grasim Industries (1.39%), Tata Motors (1.38%), DLF Ltd (1.25%) and Infosys Tech (1.26%).
Gainers from the BSE Sensex pack are ONGC Ltd (4.79%), Reliance Infra (1.49%), Reliance (0.54%), Sterlite Industries (0.34%) and HDFC Bank (0.13%).
On the global markets front the Asian markets that opened before the Indian market, ended mostly higher on indication that the world economy is emerging from a deep recession. Hang Seng, Nikkei 225, Singapore''s Straits Times Index and Seoul Composite ended higher by 32.03, 80.14, 17.33 and 26.77 points at 20,893.33, 10,597.33, 2,631.51 and 1,591.41 respectively. However, Shanghai Composite lost 93.58 points at 3,046.97.
European markets, which opened after the Indian market, are trading in green, as investors remained hopeful over signs that a global economic slowdown may be coming to an end. GDP data released on Thursday indicated Europe''s powerhouses Germany and France had returned to growth as both grew by 0.3% between April and June. In Frankfurt the DAX index is trading higher by 26.48 points at 5,427.59 and in London FTSE 100 is trading up by 17.71 points at 4,773.17.
The BSE Realty index lost (1.69%) or 68.2 points at 3,963.06 on profit taking. Losers are Orbit Co (4.97%), Penland Ltd (4.14%), Ackruti (4.01%), Omaxe Ltd (3.88%) and Ansal Infra (3.72%).
The BSE FMCG index ended down by (1.26%) or 32.48 points at 2,552.80. As HUL (2.60%), ITC Ltd (1.78%), United Spr (1.45%), United Brew (1.10%) and Ruchi Soya (0.40%) ended in red.
The BSE IT index closed lower by (1.16%) or 46.86 points at 3,977.73 on weak US retail sales data. Losers are HCL Tech (4.15%), Financ Tech (3.25%), Tech Mahindra (1.43%), Infosys Tech (1.23%) and TCS Ltd (1.21%).
The BSE Teck index dropped by (1.05%) or 31.12 points at 2,920.82. Scrips that lost are HCL Tech (4.15%), Financ Tech (3.25%), Wire & Wirles (2.70%), RCom (2.34%) and Him Futr Com (2.13%).
The BSE Auto index lost (1.04%) or 58.6 points at 5,569.2 on worries arising from scanty rains as auto firms derive larger revenue from rural India. Main losers are Bharat Forge (3.00%), Maruti Suzuki (1.99%), Herohonda Motors (1.93%), Tata Motors (1.38%) and MRF Ltd (1.06%).
The BSE Oil & Gas index advanced by (1.73%) or 167.60 points at 9,869.21 as oil prices inclined overnight on gains in US stock markets. Gainers are ONGC Ltd (4.79%), HPCL (3.60%), Cairn Ind (3.27%), Gail India (3.27%) and IOC Ltd (3.13%).
HDFC dropped by 2.19%. The country’s largest home loan financer has reduced the interest rate by 50 basis points on loan amount ranging between Rs.30-50 lakh. After this cut, the new rate will carry 9% per annum down from 9.5% earlier. However, the stock is now trading down by (2.16%) at Rs. 2,312.
Punjab National Bank ended lower by 1.34%. The bank has slashed home and car loan rates by 50 basis points where the bank has launched ''''PNB Festival Season Bonanza Offer 2009'''' that offers attractive rates to people during the festival season. However, PNB''''s campaign is said to come a week after SBI''''s three-month-long home loan campaign, offering loans at 8%.
Sterlite Industries is closed higher by 0.34% amid reports that the government is planning to sell its 49% stake in Bharat Aluminium Company (Balco) to Sterlite Industries at around Rs.2000 crore. Sterlite Industries had earlier bought 51% stake in Balco in 2001.
Tulsyan NEC Ltd gained 0.69% after the company said its board will meet on 18 August 2009 to consider issue of equity shares on rights basis.
IndusInd Bank Ltd spurted 2.69% after the bank said its capital adequacy ratio, or CAR, has risen to over 15% following its Rs. 480 crore qualified institutional placement.
eClerx Services Ltd gained 1.70% after private equity firm Sequoia Capital bought a 6% stake in the company from Burwood Ventures for nearly Rs. 40 crore in a block deal on Wednesday, 12 August 2009.
Indraprastha Gas Ltd gained 12.49% on buzz that the company signed a pact with Reliance Industries and its partner NIKO for purchasing of gas from D6 block of Krishna-Godavari basin at $4.2 per million British thermal unit.
Man Industries India Ltd went up by 10.49%. The company has informed that the Company has secured an order worth Rs 200 crore from Gail (India) Ltd and orders worth of Rs 550 crore from Middle East and African Continent for supply of LSAW pipes.
Buoyant industrial production data, a new Direct Taxes Code providing a simple tax structure for better compliance, and optimistic comments from the US Federal Reserve on the US economy lifted the key benchmark indices in the week ended Friday, 14 August 2009. The rise was despite the key indices sliding in in 3 out of 5 trading sessions in the week. Small and mid-cap shares outperformed the Sensex.
The BSE Sensex rose 251.39 points or 1.66% to 15,411.63 in the week ended 14 August 2009. The S&P CNX Nifty gained 98.65 points or 2.20% to 4580.05 in the week.
The BSE Mid-Cap index jumped 170.56 points or 3.14% to 5,603.81 and the BSE Small-Cap index rose 218.80 points or 3.53% to 6,412.56
India's industrial production expanded 7.8% in June 2009, adding to signs that the economy has been spared from the worst of the global recession and is well on its way to a turnaround. Data released by the government on 12 August 2009, showed that industrial growth was higher than the 5.45% seen in June 2008.
Industrial output expanded at its fastest pace in 16 months in June 2009, beating forecasts by a wide margin, as higher salaries of government employees and stimulus spending boosted consumer demand. The growth was much higher than a revised 2.2% growth in May 2009. The growth in industrial production for May 2009 was revised downwards to 2.2% from 2.7%. Planning commission deputy chairman Montek Singh Ahluwalia said positive trend in industrial output will continue.
The government after trading hours on 12 August 2009, released a brand new Direct Taxes Code that will replace the 1961 Income Tax Act and other direct tax laws, providing a simple tax structure for better compliance. The draft direct tax code proposes a reduction in corporate tax rate to 25% from 30% now. It has also proposed a reduction in taxes on individuals.
The new tax code proposes to phase out profit-linked exemptions for companies and replace them with investment-linked incentives. Business losses will be allowed to be carried forward indefinitely, while rules for capital gains and mergers and acquisitions will be rationalised, according to the draft plan.
The code proposes abolition of STT, which is now levied on purchase of shares and bonds. However, investors will have to pay a capital gains tax on profits earned by them on investments irrespective of the tenure of investments. In other words, there is no distinction between short term and long term capital gains, though gains realised after one year will be eligible for indexation benefits. Currently, short-term capital gains on sale of shares are taxed at 15% and there is no long-term capital gains tax on sale of shares sold after one year. The government is hoping to implement the new code from 2011.
The US Federal Reserve kept interest rates at near zero at its two-day meet that ended on 12 August 2009. The central bank in a statement said US economic activity was leveling out and the financial sector had continued to improve in the last few weeks. The Fed kept its benchmark federal funds rate at a 0-0.25% range and pledged to keep rates low 'for an extended period'.
Foreign funds, which were the key drivers of the recent rally, turned sellers in August 2009 after remaining net buyers in previous five months. FII outflow in August 2009 totaled Rs 522.90 crore (till 12 August 2009). FII inflow in calendar year 2009 totaled Rs 35,646.80 crore.
The monsoon situation remains grim with the country heading into the worst drought year over the last two decades. Monsoon was 56% below normal in week to 12 August 2009 and was 72% below normal in the soyabean growing central region in past one week, India Meteorological Department (IMD) said on 13 August 2009. Monsoon rains were 29% below normal during the period from 1 June 2009 to 12 August 2009.
The progress of monsoon is closely watched as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 5764.32 points or 59.75% in calendar year 2009 as on 14 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7,251.23 points or 88.85% as on 14 August 2009.
Trading for the week began on a subdued note. The BSE 30-share Sensex fell 150.47 points or 0.99% at 15,009.77 on Monday, 10 August 2009 on fears scanty rains may hamper a nascent revival in the domestic economy. The S&P CNX Nifty fell 43.75 points or 0.98% to 4,437.65.
Key benchmark indices advanced on Tuesday, 11 August 2009, snapping a three-day falling trend, on bargain hunting in auto stocks. Volatility was high with the barometer index BSE Sensex moving in and out of the psychological 15,000 mark during the day's trade. The Sensex rose 64.82 points or 0.43% at 15,074.59. The S&P CNX Nifty rose 33.70 points or 0.76% to 4,471.35.
Selling pressure by foreign funds weighed on the bourses on Wednesday, 12 August 2009, offsetting a stronger-than-expected domestic industrial production data for June 2009. The BSE 30-share Sensex slipped 54.43 points or 0.36% at 15,020.16 and the S&P CNX Nifty declined 13.85 points or 0.31% to 4,457.50.
Markets rallied on Thursday, 13 August 2009 as strong global cues coupled with a draft direct tax code which proposed to reduce tax rates on individuals and corporates and scrapping of the Securities Transaction Tax (STT), lifted sentiment. The BSE 30-share Sensex jumped 498.33 points or 3.32% at 15,518.49 and the S&P CNX Nifty was up 147.50 points or 3.31% to 4,605.
Profit taking after Thursday (13 August 2009)'s sharp rally pulled market lower on Friday, 14 August 2009. The BSE 30-share Sensex shed 106.86 points or 0.69% at 15,411.63 and the S&P CNX Nifty was down 24.95 points or 0.54% to 4,580.05.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 1.92% to Rs 2034.30 in the week. The company found natural gas reserves in a well drilled on its NEC-25 block in Mahanadi basin, off the Orissa coast, the company's junior partner Niko Resources of Canada said on Friday, 14 August 2009.
Meanwhile, weeks after Anil Ambani, Chairman of Reliance Natural Resources (RNRL) unleashed a scathing attack against his elder brother and Chairman of petrochemical major Reliance Industries (RIL), on the issue of supply of gas from the Krishna Godavari basin (KG basin) by RIL to RNRL, the Mukesh Ambani group on 7 August 2009, rejected all the allegations as baseless and malafide.
The Ambani brothers have been at loggerheads since the death of their father in 2002, and a 2005 settlement saw the Reliance group split into two. The dispute between Reliance Industries and Reliance Natural Resources (RNRL) is centred around the price and supply of gas from KG basin operating by RIL to RNRL for the power plants of Anil Dhirubhai Ambani group.
Auto stocks were mixed as robust July 2009 sales were offset by poor monsoon. Tata Motors (up 12.62%), and Maruti Suzuki India (up 4.26%), gained. But Mahindra & Mahindra (down 5.45%), Bajaj Auto (down 4.55%), Hero Honda Motors (down 0.21%), declined.
IT stocks rose as better than expected US jobs data underpinned hopes for a recovery in the world's largest economy. India IT companies derive a lion's share of revenues from exports to the US.
India's largest IT exporter by sales TCS rose 2.43%. The company recently bagged an order from multi-brand discount chain The Loot. TCS will manage the back-end and software support system for the retail chain.
India's third largest IT exporter by sales Wipro rose 2.25%. The company on 5 August 2009 said it has entered a five-year contract with US apparel retailer Charming Shoppes Inc. to provide information technology services.
India's second largest IT exporter by sales Infosys fell 0.10%. The company recently signed an agreement with BanColombia SA for its Finacle software to be used by the Colombian bank and its overseas units.
The US jobs report showed on 7 August 2009 that 2,47,000 jobs were cut from non-farm payrolls last month, which was less than the 320,000 expected. The unemployment rate eased for the first time since April 2009 at 9.4%
India's largest mobile services provider by sales Bharti Airtel gained 6.29%. The Securities Appellate Tribunal (SAT) on 11 August 2009 adjourned till 28 August 2009 the hearing on an appeal seeking greater clarity on a Securities & Exchange Board of India (Sebi) order, which exempts South Africa's MTN from making an open offer to shareholders of Bharti, if a merger deal between two telecom companies materialises.
On seeking guidelines on the proposed merger with MTN, Sebi in an order dated 22 June 2009 had said that telecom giant MTN need not make an open offer to Bharti shareholders in India as its stake in the domestic mobile company would be through the Global Depository Receipts (GDRs). The appeal was filed by a shareholder Deepak Mehra, who holds around 200 shares, arguing that MTN has to make an open offer to Bharti shareholders.
Metal shares rose on firm prices on the London Metal Exchange. Hindalco Industries (up 6.81%), National Aluminum Company (up 0.51%), JSW Steel (up 4.94%), rose. China is the world's largest consumer of copper and aluminum.
India's largest steel maker by sales Tata Steel rose 2.97% on reports the company plans to raise Rs 5000 crore through issue of securities and is seeking shareholder approval for the fund raising. The funds will be used for capital expenditure, the repayment of debt, acquisitions and working capital.
India's largest copper maker by sales Sterlite Industries gained 5.33% after the company said it has revised its offer to acquire Asarco, reducing the value of a copper price participation deal to $208 million, from a previous level of $770 million. The company will also offer $1.59 billion in cash. The consideration was changed to reflect an increase in copper prices and to meet the expectations of creditors, the firm said
Sterlite and Grupo Mexico are facing off in a Texan court in the final stage of a year-long tussle for acquiring the US based copper miner, which sought court protection in 2005 amid a worker strike and more than $1 billion of environmental damage and asbestos claims.
Rate sensitive realty rose on hopes the government's thrust on housing sector in the Union Budget 2009-2010 may help extend recovery in housing demand witnessed in the past few months. Omaxe (up 2.56%), Indiabulls Real Estate (up 3.34%), Anant Raj Industries (up 17.89%), gained
Unitech jumped rose 8.03% after index compiler MSCI added the stock in the MSCI Emerging Markets Index.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 1.42% after a joint venture of the company bagged a Rs 4000-crore equipment order. The announcement was made on Wednesday, 12 August 2009.
Banks stocks gains as a recovery in the economy may boost lending growth. India's largest private sector bank by net profit ICICI Bank rose 0.83%. India's biggest commercial bank in terms of branch network State Bank of India (SBI) gained 3.19%. India's second largest private sector bank by net profit HDFC Bank rose 2.47%.
India's largest dedicated home loan lender HDFC fell 2.83% after firm reduced home loan rates by 50 basis points to 9% in the Rs 30 lakh to Rs 50 lakh segment for new loans on 13 August 2009.
Companies making oseltamivir (Tamiflu) rose following the spread of the deadly swine flu in India. Ranbaxy Laboratories (up 13.49%), Natco Pharma (up 38.04%), Cipla (up 3.37%), and Strides Arcolabs (up 7.30%), edged higher
Raj Oil Mills settled at Rs 119.30 a discount of 0.58% over its offer price of Rs 120 on its debut on 12 August 2009.
The NHPC initial public offer ended on 12 August 2009 with robust investors response. The IPO was subscribed 23.74 times.
Key benchmark indices are likely to extend gain as sentiment across the globe remains upbeat after the US Federal Reserve said the world's largest economy US may be emerging from a 20-month recession. However, selling by foreign funds may cap the upside. The BSE Sensex gained 251.39 points or 1.66% to 15,411.63 in the week ended Friday, 14 August 2009.
The US Federal Reserve kept interest rates at near zero at ts two-day meet that ended on 12 August 2009. The central bank
in a statement said US economic activity was leveling out and the financial sector had continued to improve in the last few weeks. The Fed kept its benchmark federal funds rate at a 0-0.25% range and pledged to keep rates low 'for an extended period'.
Back home, India's industrial production expanded 7.8% in June 2009, the fastest pace since February 2008, adding to signs that the economy has been spared from the worst of the global recession and is well on its way to a turnaround. Data released by the government on 12 August 2009, showed that industrial growth was higher than the 5.45% seen in June 2008.
Meanwhile, a draft direct tax code released by the government on 12 August 2009, which proposes to reduce tax rates on individuals and corporates and scrapping of the Securities Transaction Tax (STT), has boosted sentiment.
On the flip side foreign funds, which were the key drivers of the recent rally, turned sellers in August 2009 after remaining net buyers in previous five months. FII outflow in August 2009 totaled Rs 522.90 crore (till 12 August 2009). FII inflow in calendar year 2009 totaled Rs 35,646.80 crore.
After being heavy net sellers of Rs 4545.30 crore in January 2009 and to the tune of Rs 2436.60 crore in February 2009, foreign fund turned net buyers in March 2009 when they bought shares worth Rs 530.30 crore. Their buying gathered steam in April 2009 when they pumped Rs 6508.20 crore. They continue their buying spree in May 2009 pouring Rs 20117.20 in equities. Foreign funds bought equities worth Rs 3830 crore in June 2009 and Rs 11066.30 crore in July 2009.
Also the monsoon situation remains grim with the country heading into the worst drought year over the last two decades. Monsoon was 56% below normal in week to 12 August 2009 and was 72% below normal in the soyabean growing central region in past one week, India Meteorological Department (IMD) said on 13 August 2009. Monsoon rains were 29% below normal during the period from 1 June 2009 to 12 August 2009.
The progress of monsoon is closely watched as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
Meanwhile, there are concerns a glut of initial public offer may suck out liquidity from the secondary market. Among the companies likely to tap the primary market include Oil India, Coal India, Pipavav Shipyard, Indiablls Power, Usher Eco Power, MCX, Godrej Properties, ARSS Infrastructure Projects, Pride Hotels, Bharat Sanchar Nigam (BSNL), Great Eastern Energy, JSW Energy, Euro Multivision, and Radiant Info Systems
The key benchmark indices edged lower on profit taking ahead of the weekend after Thursday (13 August 2009)'s sharp rally. The BSE 30-share Sensex shed 106.86 points or 0.69% off close to 120 points from the day's high and up close to 45 points from the day's low. Oil & gas stocks bucked the weak trend. IT, banking, auto, realty and FMCG stocks fell. The market breadth, indicating the overall health of the market, was positive.
Intraday volatility was high. The key benchmark indices slipped in early trade on profit taking after Thursday's (13 August 2009)'s sharp gains. Weak Chinese stocks and poor monsoon triggered profit taking. The market extended losses in morning trade before recovering from lower level. The recovery gathered steam later as the Sensex moved into the green from red in early afternoon trade.
The market once again slipped into the red in early afternoon trade and extended losses for the day. The Sensex once again moved into the green as European stocks rose. However, it soon slipped into the red once again. The market extended losses in late trade.
The Sensex had jumped 498.33 points or 3.32% at 15,518.49 on Thursday boosted by government's proposal to reform direct taxes and on improved economic data in key European economies.
India's economic growth is expected to be between 6% to 6.5 % in the 2009/10 fiscal year, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan today said.
A rapid expansion in the government's borrowing impedes the Reserve Bank of India's (RBI) monetary policy transmission, its Governor Duvvuri Subbarao said on Friday. He was speaking at a Reserve Bank event in Hyderabad. The agriculture situation in India is disturbing but it is too early to take action on inflation, the RBI governor said. There was no policy decision yet on increasing the size of government borrowing, he said.
Investors are worried about poor rains. Monsoon was 56% below normal in week to 12 August 2009 and was 72% below normal in the soyabean growing central region in past one week, India Meteorological Department (IMD) said on Thursday. Monsoon rains were 29% below normal during the period from 1 June 2009 to 12 August 2009. India relies on rain for 60% of its irrigation and on agriculture for 17% of its economy. The weather office chief Ajit Tyagi on Thursday told a television channel that the situation was grim and low rainfall would hurt winter-sown crops as well.
Prime Minister Manmohan Singh on Thursday constituted a Group of Ministers (GoM) which will suggest measures to control the damage caused by the failure of summer crop. The GoM, headed by finance minister Pranab Mukherjee, has agriculture minister Sharad Pawar, railway minister Mamata Banerjee, petroleum minister Murli Deora and power minister Sushil Kumar Shinde as its members.
Meanwhile, India on Thursday signed a landmark free trade agreement (FTA) with 10-member regional grouping The Association of Southeast Asian Nations (Asean) that will eliminate tariffs on around 4,000 products such as consumer electronics, pharmaceuticals, machinery, metals and readymade garments. The pact is a strategic victory for India, which has been trying to intensify its relationship with the region as a counterweight to the regional blocs in North America and Europe. Formal negotiations on liberalising services and investment, however, are yet to begin and the challenge before India is to expedite the process, reports suggest.
European shares rose on Friday amid growing confidence of a global economic rebound, and helped by overnight gains in the United States. The key benchmark indices in France, Germany and UK were up by between 0.42% to 0.54%.
But, Chinese stocks fell extending a recent steep correction triggered by concerns this year's rally has overvalued the prospects for earnings growth. The Shanghai Composite index was down 2.98%.
Most other Asian markets were in green as higher metal prices and anticipation of more takeovers fueled speculation a five-month rally will continue. The key benchmark indices in Hong Kong, Singapore, Japan, South Korea, Taiwan rose by between 0.15% to 1.71%.
Trading in US index futures indicated Dow could fall 8 points at the opening bell today, 14 August 2009.
US markets pulled off modest gains in a late rally on Thursday, 13 August 2009 as investors cheered an encouraging business-inventories report, the latest sign that the recession may be winding down. The Dow Jones industrial average gained 36.58 points, or 0.4%, to 9,398.19. The S&P 500 index added 6.92 points, or 0.7%, to 1,012.73, while the Nasdaq Composite Index rose 10.63 points, or 0.5%, to 2,009.35.
But weekly jobless claims rose unexpectedly by 4,000 to 558000 while continuing claims made a surprise drop to 6.2 million. Data on US retail sales, too, was weak. After increasing by an upwardly revised 0.8% in June 2000 and 0.5% in May 2009, sales at US retailers declined 0.1% in July 2009.
The BSE 30-share Sensex shed 106.86 points or 0.69% at 15,411.63. The Sensex rose 16.98 points at the day's high of 15,535.47 in early trade. At the day's low of 15,367.61, the Sensex fell 150.87 points in afternoon trade.
The S&P CNX Nifty was down 24.95 points or 0.54% to 4,580.05. Nifty August 2009 futures were at 4561, at a discount of 19.05 points as compared to the spot closing of 4580.05. Turnover in NSE's futures & options (F&O) segment was Rs 63,891.72 crore, lower than Rs 65,552.20 crore on Thursday, 13 August 2009.
BSE clocked a turnover of Rs 5623 crore, lower than Rs 6105.39 crore on Thursday, 13 August 2009.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1412 shares advanced as compared with 1243 that declined. 70 shares remained unchanged. Breadth weakened compared to strong breadth earlier in the day.
From the 30 share Sensex pack, 25 stocks fell and rest rose.
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 5764.32 points or 59.75% in calendar year 2009 as on 14 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7,251.23 points or 88.85% as on 14 August 2009. FII inflow in calendar year 2009 totaled Rs 35,634.60 crore (till 12 August 2009).
Coming back to today's trade, the BSE Mid-Cap index was down 0.09%. The BSE Small-Cap index was up 0.4%. Both the indices outperformed the Sensex.
The BSE Oil & Gas index (up 1.73%), the BSE Consumer Durables index (up 1.2%), the BSE PSU index (up 0.45%), the BSE Metal index (down 0.46%), the BSE Capital Goods index (down 0.57%), the BSE Power index (down 0.68%), outperformed the Sensex.
The BSE Realty index (down 1.69%), the BSE FMCG index (down 1.26%), the BSE IT index (down 1.16%), the BSE Teck index (down 1.05%), the BSE Auto index (down 1.04%), the BSE Healthcare index (down 0.89%), the BSE Bankex (down 0.82%), underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 0.54% to Rs 2034.30. The stock hit the high of Rs 2063.80 and a low of Rs 2007.05. Prime Minister Manmohan Singh has reportedly constituted a panel of four senior cabinet ministers that will continuously review the government's position in the Supreme Court case over allocation of gas from the Krishna-Godavari basin to ensure that their ministries don't speak in divergent voices on the vexed issue.
The dispute between Reliance Industries and Reliance Natural Resources (RNRL) which is centred around the price and supply of gas from KG basin operating by RIL to RNRL for the power plants of Anil Dhirubhai Ambani group.
Oil exploration stocks rose as crude oil rose for a second day after the German and French economies unexpectedly grew and the US Federal Reserve on Wednesday said the recession is easing, sparking hopes for a rebound in fuel demand. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
India's largest state-run oil exploration firm by sales ONGC rose 4.79%. Crude oil for September delivery rose 36 cents, or 0.5%, to settle at $70.52 a barrel on the New York Mercantile Exchange on Thursday.
Cairn India rose 3.27%. As per reports, the company is likely to start crude production from its Rajasthan oil fields later this month. The company has already reached pricing agreements for the crude with principal buyers, Indian Oil Corporation and Mangalore Refinery and Petrochemicals.
Shares of three public sector oil marketing companies rose on expectations that a hike in retail fuel prices in early July 2009 may boost Q2 September 2009 results. BPCL, HPCL and Indian Oil Corporation (IOC) rose by between 2.04% to 3.6%. On 1 July 2009, the government had hiked petrol price by Rs 4 per litre and diesel by Rs 2 per litre.
The three public sector oil marketing firms reported strong Q1 June 2009 results as they incurred negligible underrecoveries on domestic sale of fuel at controlled prices. The strong performance was despite lack of any oil bonds from the government.
Indraprastha Gas jumped 12.49% on reports it has signed a gas sale and purchase agreement (GSPA) with RIL and its partner NIKO (NECO) for procurement of 0.308 million square cubic meters a day (mscmd) from D6 block of Krishna-Godavari basin.
Some FMCG stocks fell on concerns over scanty rains. FMCG firms derive substantial revenue from rural markets. United Spirits, ITC, Hindustan Unilever fell by between 1.45% to 2.6%.
IT stocks fell on weak US retail sales and increase in weekly jobless claims. IT companies derive a lion's share of revenues from exports to the US. India's second largest IT exporter by sales Infosys fell 1.23%. Its American depository receipt (ADR) fell 0.37% on Thursday. India's third largest IT exporter by sales Wipro fell 1.04% even as its ADR rose 0.9% on Thursday India's largest IT exporter by sales TCS fell 1.21%.
Realty shares fell on profit taking. Phoenix Mills, Ackruti City, Omaxe, Indiabulls Real Estate, Ansal Properties, DLF fell by between 1.25% to 3.88%. Realty shares had risen sharply in the past few weeks on hopes the government's thrust on housing sector in the Union Budget 2009-2010 may help extend recovery in housing demand witnessed in the past few months.
Unitech fell 1.85% after jumping 7.07% on Thursday when index compiler MSCI added the stock in the MSCI Emerging Markets Index.
Auto stocks fell on concerns arising from scanty rains. Auto firms derive substantial revenue from rural India. Maruti Suzuki India, Hero Honda Motors, Mahindra & Mahindra, fell by between 0.78% to 1.99%.
India's largest commercial vehicle maker by sales Tata Motors fell 1.38%. Tata Motors reportedly plans to spend around Rs 8,000 crore over the next three to four years on capital expenditure and product development, taking advantage of easing credit conditions and reviving sales to breathe life into an ageing product portfolio.
Construction, capital goods and cement shares fell on profit taking after recent gains. Higher government spending on infrastructure sector in 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction and capital goods firms and may help boost cement demand. Among construction shares, IVRCL Infrastructure & Projects, Hindustan Construction Company, Nagarjuna Construction Company, fell by between 1.27% to 3.52%.
Bidding is expected to start soon on 139 road projects covering 14,395 kilometres at a cost of about US$ 21 billion.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 0.64% on profit taking after recent gains triggered after a joint venture of the company bagged a Rs 4000-crore equipment order. The announcement was made on Wednesday.
Other capital goods stocks, Bharat Heavy Electricals, Thermax, Punj Lloyd, ABB, Crompton Greaves, fell by between 0.09% to 1.35%.
From the cement pack, UltraTech Cement, Grasim Industries, ACC, Ambuja Cements, fell by between 0.96% to 2.94%.
India's largest mobile services provider by sales Bharti Airtel fell 1.17% on profit taking after a three-day rally. The Securities Appellate Tribunal (SAT) on Tuesday adjourned till 28 August 2009 the hearing on an appeal seeking greater clarity on a Securities & Exchange Board of India (Sebi) order, which exempts South Africa's MTN from making an open offer to shareholders of Bharti, if a merger deal between two telecom companies materialises.
On seeking guidelines on the proposed merger with MTN, Sebi in an order dated 22 June 2009 had said that telecom giant MTN need not make an open offer to Bharti shareholders in India as its stake in the domestic mobile company would be through the Global Depository Receipts (GDRs). The appeal was filed by a shareholder Deepak Mehra, who holds around 200 shares, arguing that MTN has to make an open offer to Bharti shareholders.
India's second largest mobile services provider by sales Reliance Communications fell 2.34%. The company on Wednesday said it has tied-up with US-based Kodiak Networks for a nationwide roll-out of mobile conferencing service
Bank stocks fell on profit taking. India's largest private sector bank by net profit ICICI Bank fell 1.69% even as its ADR rose 4.14% on Thursday.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) fell 0.1%. Among other PSU banks, Bank of Baroda, Punjab National Bank, Bank of India, Union Bank of India fell by between 0.94% to 1.99%.
But, India's second largest private sector bank by net profit HDFC Bank rose 0.13% as its ADR rose 2.01% on Thursday.
India's largest dedicated home loan lender HDFC fell 2.19% after firm reduced home loan rates by 50 basis points to 9% in the Rs 30 lakh to Rs 50 lakh segment for new loans.
Some power stocks rose as the NHPC IPO received robust investor response. The IPO which ended on Wednesday, 12 August 2009, was subscribed 23.74 times. Reliance Infrastructure, Reliance Power, PowerGrid Corporation of India, GVK Infrastructure & Company, CESC and Torrent Power rose by between 0.11% to 1.97%.
But, India's biggest power producer by revenue NTPC lost 2.41% on reports that India's top two law officers have advised NTPC to move Supreme Court to secure gas at a contracted price from RIL, a position in variance with Oil Ministry's plea on the Ambani borthers' gas dispute. NTPC is fighting to get gas at $2.34 a unit from RIL, which has challenged it on the grounds that government's stand on price would frustrate the deal.
Metal shares fell even after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 3.6% on Thursday, 13 August 2009. Steel Authority of India, Hindalco Industries, Tata Steel, Hindustan Zinc fell by between 0.16% to 1.5%.
India's second largest aluminum producer by sales National Aluminium Company fell 0.86% even after the company recently raised aluminium prices for the second time this month following a rise in international prices of the metal.
But, India's largest copper maker by sales Sterlite Industries rose 0.34% on reports government plans to offer to sell its 49% stake in Bharat Aluminium Co (Balco) to non-ferrous metals maker Sterlite Industries , for about Rs 2000 crore. Sterlite already owns 51% stake in Balco.
Airline stocks extended Thursday's rally. Aviation minister Praful Patel said on Thursday government will form a group of ministers (GoM) to look into airline industry's woes. Kingfisher Airlines, Jet Airways and SpiceJet rose by between 3.19% to 9.69%.
He further said the GoM will look into the ATF price issue. He said the industry is likely to grow 8.5% per year till 2015.
IFCI clocked highest volume of 2.26 crore shares on BSE. Cals Refineries (1.46 crore shares), Ispat Industries (1.36 crore shares), Firstsource Solutions (1.28 crore shares) and NOCIL (1.08 crore shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 244.46 crore on BSE. Tata Steel (Rs 170.83 crore), DLF (Rs 150.15 crore), Educomp Solutions (Rs 141.62 crore) and Reliance Capital (Rs 132.56 crore) were the other turnover toppers in that order.
Today domestic markets are likely to open positive as there is moderate buying sentiments prevailing across broader level. The US markets closed with minimal gains due to disappointing macro economic data however the resurgence of European economy is likely to bring a lot of confidence across Asian markets. Today one could expect a range bound trade with positive bias.
On Thursday, Domestic markets closed with staggering gains. Market rallied sharply following firm European markets along with positive US index futures and higher Asian stocks. Further, strong industrial production (IIP) also boosted investor’s sentiments, which expanded 7.8% in June 2009, at the fastest pace in 16 months. The draft direct tax code, which proposes to reduce tax rates on individual and corporate and scrapping of the Securities Transaction Tax (STT) also contributed to the upward movement across the board. Meanwhile, inflation fell to the lowest in three decades to (-) 1.74% for the week ended 1st August 2009. During final trading hours, market gained further grounds and concluded its upward journey with strong gains. From the sectoral front Realty, Metal, Bank, Auto, Capital Goods, FMCG, PSU and Power witnessed most of the buying from these baskets.
The BSE Sensex closed higher by 498.33 points or (3.32%) at 15,518.49 and NSE Nifty ended up by 147.50 points or (3.31%) at 4,605. BSE Mid Caps and Small Caps closed with gains of 194.36 and 252.12 points at 5,608.89 and 6,387.05 respectively. The BSE Sensex touched intraday high of 15,545.13 and intraday low of 15,207.96.
On Thursday, US stock markets closed higher. There was lot of optimism and strong buying sentiment during the opening bell as German and French economies both exceeded expectations by posting second quarter growth of 0.3%. However array of bad US economic news tarnished the shine of stocks. Total retail sales for July made an unexpected 0.1% decline and sales less autos fell a sharper-than-expected 0.6%. Initial jobless claims were also higher than expected at 558,000 and propelled the 4-week moving average up to 565,000 from 556,500. Meanwhile, continuing claims made a larger-than-expected retreat to 6.20 million, but the drop is most likely from unemployed workers losing their benefits. US light crude oil futures for September delivery closed at $70.65 per barrel higher by 0.7% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 36.58 points at 9,398.19, NASDAQ index inclined by 10.63 points to 2,009.35 and the S&P 500 (SPX) closed higher by 6.92 points at 1012.75.
Today major stock markets in Asia are trading mixed. Shanghai Composite is low by 74.47 points at 3,066.92. Japan''s Nikkei is trading up by 60.46 points at 10,577.65 followed by Strait Times which is trading lower by 0.26 points at 2,613.92 and Seoul Composite is trading higher by 15.97 points at 1,580.61. Hang Seng is trading low by 190.63 points at 20,670.67.
Indian ADRs ended mostly up on Thursday. In the banking space, ICICI Bank was up 4.14% and HDFC Bank was up 2.01%. In the telecom space, Tata Communication was up 3.69% and MTNL was up 1.48%. In the IT space, Satyam Computers was up 2.94%, Patni Computers was up 3.26%, Wipro was up 0.9% while Infosys was down 0.37%. In other sectors, Sterlite Industries was up 4.41%, Tata Motors was up 3.2% while Dr Reddy''s Labs was down 0.06%.
The FIIs on Thursday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 2,595.00 Crore, while the gross equity sold stood at Rs 2,705.50 Crore and gross debt purchased stood at Rs 119.60 Crore, while gross debt sold stood at Rs 285.50 Crore. The net investment of equity reported was Rs (110.50) Crore and net debt was Rs (165.80) Crore.
On BSE, total number of shares traded were 48.06 Crore and total turnover stood at Rs 6,105.39 Crore. On NSE, total number of shares traded were 96.66 Crore and total turnover was Rs 17,892.37 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 60974334 shares, followed by Suzlon Energy with 46635075, DLF with 13008636, Hindalco with 11631313 and Tata Steel with 10466794 shares.
On NSE Future and Options, total number of contracts traded in index futures was 704015 with a total turnover of Rs 15,182.35 Crore. Along with this total number of contracts traded in stock futures were 596910 with a total turnover of Rs 18,937.86 crore. Total numbers of contracts for index options were 1283432 with a total turnover of Rs 29,578.09 Crore and total numbers of contracts for stock options were 57906 and notional turnover was Rs 1,853.89 Crore.
Today, Nifty would have a support at 4,568 and resistance at 4,655 and BSE Sensex has support at 15,425 and resistance at 15,675.
The key benchmark indices may extend Thursday's (13 August 2009) strong gains on firm global cues. Robust industrial output data announced on Wednesday may further support market amid concerns over scanty rains.
The key benchmark indices soared on Thursday, 13 August 2009 on firm global cues and a surge in industrial production in June 2009 reinforced expectations that the economy is recovering. The BSE 30-share Sensex jumped 498.33 points or 3.32% at 15,518.49 on that day.
As per the provisional figures on NSE, foreign funds bought shares worth Rs 630.94 crore and domestic funds bought shares worth Rs 182.85 crore on Thursday.
Robust industrial production data may offset gloom in the farm sector, India's industrial output expanded 7.8% in June 2009, at the fastest pace in 16 months, beating forecasts by a wide margin, data released by the government during trading hours on Wednesday, 12 August 2009, showed.
India's monsoon rainfall deficit has widened further, increasing the risk of crop damage. Monsoon was 56% below normal in week to 12 August 2009 and was 72% below normal in soya bean growing central region in past one week, India Meteorological Department (IMD) said on Thursday. Monsoon rains were 29% below normal during the period from 1 June 2009 to 12 August 2009. India relies on rain for 60% of its irrigation and on agriculture for 17% of its economy. The weather office chief Ajit Tyagi on Thursday told a television channel that the situation was grim and low rainfall would hurt winter-sown crops as well.
With IMD finally acknowledging that the situation was as bad as 2002, when the failure of monsoon cut the growth rate to 3.8%, Prime Minister Manmohan Singh reportedly on Thursday constituted a Group of Ministers (GoM) on drought and food security. The GoM, headed by finance minister Pranab Mukherjee, has agriculture minister Sharad Pawar, railway minister Mamata Banerjee, petroleum minister Murli Deora and power minister Sushil Kumar Shinde as its members. To begin with, the team will look into how to control the damage caused by the failure of the kharif season.
Inflation based on the wholesale price index declined 1.74% in the year through 1 August 2009, after falling 1.58% in the previous week, data released by the government on Thursday showed. However, the decline in headline inflation is only due to a statistical effect caused by sharply higher prices a year earlier and consumer price inflation remains high. The government revised upwards inflation for the week ended 6 June 2009 to a fall of 1.01% from earlier 1.61% decline.
Meanwhile, India on Thursday signed a landmark free trade agreement (FTA) with 10-member regional grouping The Association of Southeast Asian Nations (Asean) that will eliminate tariffs on around 4,000 products such as consumer electronics, pharmaceuticals, machinery, metals and readymade garments. The pact is a strategic victory for India, which has been trying to intensify its relationship with the region as a counterweight to the regional blocs in North America and Europe. Formal negotiations on liberalising services and investment, however, are yet to begin and the challenge before India is to expedite the process report said.
Asian stocks rose today as higher metal prices and anticipation of more takeovers fueled speculation a five-month rally will continue. The key benchmark indices in Japan, South Korea, Singapore, Taiwan rose by between 0.1% to 1.54%. The key benchmark indices in China and Hong Kong fell by between 0.55% to 1.66%.
The US markets pulled off modest gains in a late rally on Thursday, 13 August 2009 as investors cheered an encouraging business-inventories report, the latest sign that the recession may be winding down. The Dow Jones industrial average gained 36.58 points, or 0.4%, to 9,398.19. The S&P 500 index added 6.92 points, or 0.7%, to 1,012.73, while the Nasdaq Composite Index rose 10.63 points, or 0.5%, to 2,009.35.
Earlier in the session, unexpected economic growth out of Germany and France helped set a positive tone and business inventories for June retreated more than expected. Inventories dropped over a percent to 1.35 trillion dollars, helped by a 0.9% increase in sales. The inventory-to-sales ratio fell to 1.38 from 1.41. But weekly jobless claims rose unexpectedly by 4,000 to 5.58 lakh while continuing claims made a surprise drop to 6.2 million.
Tata Motors plans to spend ~Rs80bn over the next three to four years on capital expenditure and product development. (ET)
The Government will offer its 49% stake in Bharat Aluminium Company (Balco) to Sterlite Industries for ~Rs20bn. (ET)
HDFC has reduced home loan rates by 50bps to 9% in the Rs3-5mn segment. (ET)
Suzlon Energy plans to divest either fully or partially its stake in its Belgian subsidiary, Hansen Transmission International. (BS)
The PM has formed a four-member core committee of Ministers to monitor the Government’s stand on the KG D6 block gas dispute between RIL and RNRL in the Supreme Court. (BL)
L&T and Bhel bid for the boiler-turbine-generator supply order for Maharashtra State Power Generation Company’s proposed 1,980 mw thermal power plant in Koradi in Nagpur. (ET)
Indraprastha Gas signed the Gas Sale and Purchase Agreement with RIL for supply of 0.308 mscmd from KG D6 block at US$4.2/mBtu at the landfall point. (BL)
IOC is planning to take the number of its auto LPG outlets from the current 230 to 300 by the year-end. (BS)
Britannia Industries seeks shareholder’s approval for a proposal to enhance borrowing limit to Rs20bn. (ET)
IndusInd Bank raises Rs4.8bn through QIP issue. (ET)
Great Eastern Energy Corporation plans to raise Rs4bn through IPO to finance development of coal bed methane block in Raniganj, West Bengal. (ET)
Aditya Birla Nuvo is in talks with global private equity players Blackstone, Carlyle and KKR to sell shareholding in its proposed holding firm for its financial services business. (BS)
Suzlon’s shareholders have approved the proposal of fund raising plan of up to Rs50bn through issuance of securities both in domestic as well as overseas markets. (ET)
Grasim Industries has bought 4.08% stake in its subsidiary UltraTech for Rs1.72bn. (ET)
United Bank of India plans to set up a housing finance subsidiary, after its IPO hits the market by December-end or January next year. (BS)
Renuka Sugars gets nod to buy excess stake in NCDEX. (ET)
Unitech has sold over 6,000 units in the residential space since April, 2009. (BL)
IIFCL plans to raise US$500mn through its UK based subsidiary. (ET)
ONGC is yet to decide on bidding for Spanish oil firm Repsol’s Argentinean arm. (FE)
Dabur India eyes acquisitions in Africa. (BS)
Usha Martin gets carbon credits worth Rs44mn. (BS)
FIPB asks MHA to speed up inquiry into Telenor’s proposal of increasing stake in Indian telecom joint venture Unitech Wireless. (BS)
Bajaj Auto to focus on dual brand bike strategy. (BL)
Godrej Consumer may acquire some of Sara Lee Corp’s international businesses, including the US company’s stake in its Indian JV. (ET)
Corporation Bank has raised Rs1bn through issue of tier-I bonds. (BL)
Orchid Chemicals has received the final approval from US FDA for its drug Sumatriptan Succinate tablets. (FE)
Dr Reddy’s has launched Strea Professional, the company’s first product in the non-invasive aesthetics segment in India. (FE)
Sun Pharmaceuticals will re-file application for Taro tender offer under Hart-Scott-Rodino Act on account of expiration of waiting period on August 12. (FE)
Private equity firm, Sequoia Capital has bought 6% stake in BPO firm eClerx Services from Burwood Ventures for ~Rs400mn. (ET)
The annual rate of inflation touched a 33-year low of -1.74% for the week ended August 01, 2009. (ET)
RBI will allow banks, at least in the current financial year, to deduct floating provisions from gross non-performing assets (NPAs) to arrive at net NPAs. (BS)
The Government has decided to set up a group of ministers to review taxes on aviation turbine fuel. (FE)
The seasonal rain deficit has worsened to 29% as on August 12 amid fresh rains over east and east-central India. (BL)
RBI has set up a financial stability unit (FSU) to conduct macro-prudential surveillance of the financial system on an ongoing basis. (BS)
The Government has approved the continuation of a centrally sponsored scheme for supporting alternative systems of medicines, ‘Ayush’ at a cost of Rs6.5bn. (ET)
Tax liability for resident foreign firms is likely to go up post new Tax Code. (FE)
Standard and Poor’s (S&P’s) have raised its India’s growth rate forecast by 30bps to 6.3% for the current fiscal on the back of improving global and domestic economic scenario. (BS)
India’s engineering exports fell by ~21% yoy to US$3.33bn in June 2009. (ET)
Freedom in general may be defined as the absence of obstacles to the realization of desires.
The sleeping bulls had some freedom to push up counters as they woke up to a feel-good factor, largely due to upbeat remarks by the Fed and data showing end of recession in Germany and France. Obstacles remain with mixed economic data in the US taking the sheen off the world-wide rally. US retail sales unexpectedly fell in July. The recovery in American labour and housing markets remains fragile.
Despite raining gains for a day as if the dam of liquidity overflowed, we have to grapple with an impending drought and all its attendant problems, especially inflation. Exports too remain a cause for concern. At the same time, the latest IIP data does promise betters prospects, as does the proposed new Direct Tax Code. Given this backdrop, stock valuations and liquidity flows will play crucial role in determining the market’s near-term direction.
We expect a cautious start, as Asian markets are mixed. Wall Street too failed to capitalise on the global advance. The average man does not want to be free. He simply wants to be safe. The market has come a long way since early March. But, the million-dollar question is where do we go from here?. We need to see a few quarters of strong growth, not just one quarter.
Equity and commodity markets rallied, while emerging market and high yield currencies were in demand at the expense of the dollar and yen. The euro advanced against the dollar and the yen after the eurozone's two largest economies - Germany and France - reported surprise returns to growth in the second quarter. Crude oil prices rose above $71 per barrel while the sugar market extended its recent rally and base metals staged a broad advance as risk appetite strengthened.
FIIs turned net buyers at Rs6.31bn in the cash segment on Wednesday on a provisional basis while the local funds pumped in Rs1.83bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs9.42bn. On Wednesday, the foreign funds were net sellers at Rs1.1bn in the cash segment. Their net purchases of Indian stocks have crossed $7.3bn year-to-date.
US stocks ended marginally higher on Thursday after a choppy session, as the Fed's upbeat economic outlook and a positive government debt auction overshadowed a report showing a surprise drop in retail sales.
Wal-Mart's better-than-expected earnings report and a spike in financial shares also helped support stocks. News that recession ended in Germany and France also had a positive rub-off effect.
The Dow Jones Industrial Average index added 37 points, or 0.4%, to 9,398.19, ending at its highest point since Nov. 4. The S&P 500 index rose 7 points, or 0.7%, to 1,012.73, ending at its highest point since Oct. 6. The Nasdaq Composite index gained 10 points, or 0.5%, 2,009.35, ending at its highest point since Oct. 1. Financial shares added to the gains. The KBW Bank index gained 3.1%.
Thursday's jump followed a rally on Wednesday after the Fed held interest rates near historic lows and signaled that the US economy has finally started to stabilize.
US stocks had stalled as the major benchmarks struggled to remain above key psychological levels - 2,000 for the Nasdaq and 1,000 for the S&P 500. But shares managed to close decidedly above those levels on Thursday.
Both France and Germany posted GDP growth in the second quarter, surprising economists. In the US, the Fed provided a little optimism on Wednesday, saying that although economic activity is likely to remain weak, the decline is leveling out and financial market conditions appear to have improved.
Future growth could be constrained by consumers, who continue to scale up savings and avoid discretionary spending, as Thursday's retail sales and jobless claims reports made clear.
The Commerce Department reported that business inventories declined for the 10th straight month.
Retail sales fell 0.1% in July, the Commerce Department reported. The results were a surprise to economists who were looking for a rise of 0.7%, on average. Sales rose 0.8% in June.
Results would have been worse if not for the government's Cash for Clunkers program, which boosted auto sales. Retail sales, excluding autos fell 0.6% in July versus forecasts for a rise of 0.1%. Sales without autos rose a revised 0.5% in June.
The report is worrisome, as consumer spending fuels two-thirds of the US economic growth.
Ford Motor said it is boosting production for the rest of the year to meet increased demand as a result of Cash for Clunkers.
Wal-Mart earned 88 cents per share versus 87 cents a year ago and more than what analysts had forecast. Wal-Mart also said that it expects current-quarter earnings in line with analysts' forecasts.
But revenue fell more than expected and the company said customers were cutting back. The Dow component also said that sales at stores open a year or more, also known as same-store sales, fell 1.2% in the quarter. Nonetheless, investors focused on the positive and shares gained 2.7%.
The number of Americans filing new claims for unemployment rose to 558,000 last week, surprising economists who were expecting jobless claims to drop to 545,000 claims.
However, the Labor Department report also showed that continuing claims, which measures people who have been receiving benefits for a week or more, fell to 6,202,000 from 6,343,000 in the previous week.
The housing market remains constrained, according to a new report released Thursday. Foreclosure filings jumped almost 7% in July from the previous month, according to RealtyTrac. Filings rose 32% from a year ago.
In bonds, the last of the government's three debt auctions this week - this time $15 billion in 30-year bonds - saw strong demand, helping to support the market.
Treasury prices gained, lowering the yield on the benchmark 10-year note to 3.59% from 3.71% on Wednesday. The US government is auctioning $75 billion in debt this week as part of its efforts to reduce the deficit and fuel its recovery efforts. On Thursday, Treasury auctioned $15 billion in 30-year bonds to strong demand. The first two auctions had mixed results. Tuesday's sale of $37 billion in three-year notes saw stronger demand than other recent auctions. Wednesday's auction of $23 billion in 10-year notes showed demand roughly in line with recent levels.
US light crude oil for September delivery rose 36 cents to settle at $70.52 a barrel on the New York Mercantile Exchange. COMEX gold for December delivery rose $4 to settle at $956.50 an ounce. In currency trading, the dollar fell versus the euro and the Japanese yen.
Market breadth was positive and trading volume was moderate. It was the second slowest trading day of the year for the NYSE, eclipsed only by the day before the July 4th holiday.
European shares climbed. The pan-European Dow Jones Stoxx 600 index rose 0.8% to 230.47. Germany's DAX index rose 1% to 5,401.11, the UK's FTSE 100 index added 0.8% to 4,755.46 and the French CAC-40 index gained 0.5% to 3,524.39.
In addition, investor sentiment improved around the globe this month, turning bears into bulls in five of the world’s biggest stock markets, says a global survey. So, quite clearly the worst of the recession is history in most parts of the world. But, don’t uncork the bubbly yet, as periodic bad news will test the strength and sustainability of any rally. Weakness will persist for a while in some pockets of the world as well as individual economies before there are sustained signs of a turnaround.
The BSE Sensex surged 498 points or 3.3% at 15,518 after touching a high of 15,545 and a low of 15,208. The index opened at 15,208 against the previous close of 15,020. The NSE Nifty surged by 147 points to shut shop at 4,605.
In Asia, the Nikkei in Japan ended higher by 0.8% at 10,517 while Australia's S&P/ASX gained 2.1% at 4,435. The Hang Seng index in Hong Kong gained 2% at 20,861. Shanghai index in China added 0.9% at 3,140.
In Europe, stocks were trading in the green. The FTSE in the UK was up 1.1%. The DAX in Germany was up 1.3% and the CAC 40 index in France was up 1%.
Coming back to India, all the BSE sectoral indices ended in the green, the Realty index was the top gainer, gaining 7%, followed by the Metal index that was up 5.5%. The BSE Auto index up 4.4% and the BSE Bankex index was up 4.2%.
The BSE Mid-Cap index surged by 3.5% and the BSE Small-Cap index gained by 4.1%.
Within the Sensex, the major losers were DLF, ICICI Bank, Maruti, Tata Steel, Tata Motors, SBI and Sterlite.
Outside the frontline indices, the big gainers in the broader market were JP Hydro, IFCI, Bhushan Steel, Rolta, Ispat Industries and HCL Tech. On the other hand, losers included Jain Irrigation, Pantaloon Retail and Oracle Financials.
India's inflation fell to the lowest levels in three decades as the wholesale price index stood at -1.74% in the week ended August 1 as compared to 1.58% in the previous week. Inflation was at 12.91% during the corresponding week of the last year (wee ended Aug. 2, 2008). For the week ended 1st August, 2009 the WPI for "All Commodities" rose by 0.1% to 237.2 from 236.9 in the
Shares of Reliance Industries ended higher by 1.5% to Rs2023. The company is reportedly pulled out of an ONGC-led consortium which was formed to bid for a 40% stake in an oil field in Venezuela.
This means that ONGC now has to find another partner to bid for the foreign oil block, reports a business daily. The Venezuela oil block is estimated to hold up to 40-50bn barrels of proven oil reserves, reports added.
Shares Axis Bank gained by 1% to Rs877 after reports stated that the company plans to raise Rs9.4bn through preferential allotment of 18mn shares to its promoters. The stock opened at Rs876 and made an intra-day high of Rs888 and a low of Rs867. Total traded volumes stood at 0.64mn shares.
Shares of Ranbaxy gained by 1.6% to Rs294 after report stated that the company has entered protein supplement market with the launch of Revitalite. The stock opened at Rs295 and made an intra-day high of Rs299 and a low of Rs292. Total traded volumes stood at 0.8mn shares.
Share Rallis India gained by 4.5% to Rs767 after Tata Chemicals announced that the board of directors decided to increase its equity shareholding in Rallis India by offering to purchase equity shares from other qualifying "Promoter Group" Tata Companies (i.e. Tata Tea Ltd, Tata Sons Ltd, Tata Investment Corporation Ltd & Ewart Investments Ltd) through inter-se transfer of shares. The Board of Tata Chemicals approved a proposal to purchase upto 35.80% shares, in any event not exceeding Rs850/- per equity share.
Everonn Systems bagged Rs918.7mn order from Government of Uttar Pradesh for implementation of Computer Education in 1099 Middle Schools in Uttar Pradesh for a period of 6 years on BOOT model, covering over 6,60,000 students of classes 6th to 12th.
The Company has received letter of intent from Directorate of Secondary Education, Government of Utttar Pradesh. The total number of schools in Everonn's portfolio will be over 5500 schools with this order.
Shares of Everonn Systems gained by 6.5% to Rs370. The stock opened at Rs351 and made an intra-day high of Rs373 and a low of Rs350. Total traded volumes stood at 0.4mn shares.
Shree Renuka Sugars an integrated manufacturing company acquired 5% stake in the National Commodity & Derivatives Exchange Ltd. for Rs365mn, reports stated. The company bought 3% stake in the exchange from InterContinental Exchange Inc. and 2% from Goldman Sachs Group Inc., added the reports.
Shares of Renuka Sugar gained by 1.2% to Rs187. The stock opened at Rs187 and made an intra-day high of Rs189 and a low of Rs184. Total traded volumes stood at 1.4mn shares.
Dr. Reddy's launched Strea Professional, the company's first product in the non-invasive aesthetics segment in India. It is the first Bi-phasic superficial peel for specific imperfections avaialble in India.
The stock gained by 1% to end at Rs804. It had opened at Rs805 and made an intra-day high of Rs820 and a low of Rs800. Total traded volumes stood at 49,000 shares.
Shares of Sun TV surged by over 3.3% to end at Rs280. The company categorically denied news reports about the plans to foray into the aviation business by entering into a partnership with Star Aviation, an airline promoted by the diversified Dubai-based ETA Star group.
The news item is totally false and frivolous, Sun TV said in a statement. The group has no such intention or interest or is in discussions in acquiring stake in Star Aviation, it added. The news is totally unfounded and baseless, Sun TV said.
Gold and silver gain as dollar slips
Precious metal prices rose on Thursday, 13 August, 2009 after the dollar slipped following disappointing US retail sales data. The dollar also fell today after the Federal Reserve said yesterday that it would keep interest rates low for some more time.
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 Thursday, gold for December delivery ended at $956.5, higher by $4 (0.4%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 7.5%.
Gold ended July, 2009 higher by 2.8%. Before this, 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 (7.5%) since then.
On Thursday, Comex silver futures for September delivery gained 40.5 cents (2.7%) to $14.99 an ounce. Last week, silver ended higher by 5.2%.
Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 32.3% this year. For 2008, silver had lost 24%.
In the currency market on Thursday, the dollar index which weighs the value of dollar against a basket of six other currencies, fell by 0.4%.
Retail sales for July fell 0.1% when a 0.8% increase was expected. Excluding autos, sales were down a sharper-than-expected 0.6%. On the other hand, Wal-Mart provided better-than-expected earnings and a solid outlook.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed higher by Rs 78 (0.52%) at Rs 14,938 per 10 grams. Prices rose to a high of Rs 14,984 per 10 grams and fell to a low of Rs 14,847 per 10 grams during the day's trading.
At the MCX, silver prices for September delivery closed Rs 589 (2.51%) higher at Rs 23,988/Kg. Prices opened at Rs 23,362/kg and rose to a high of Rs 24,149/Kg during the day's trading.
Asian stocks rose after increased metal prices boosted commodities companies.
Mitsubishi Corp climbed almost 3.5%.
Japanese benchmark index Nikkei 225 gained 94.02 points, or 0.89%, to trade at 10,611.21.
Hong Kong`s Hang Seng index rose 162.66 points, or 0.78%, to trade at 21,023.96.
China`s Shanghai Composite decreased 1.66 points, or 0.05% to trade at 3,138.90.
Taiwan`s Taiex index gained increased 74.38 points, or 1.06%, to trade at 6,998.77.
South Korea`s Kospi index climbed 26.21 points, or 1.68%, to trade at 7,109.34.
Singapore`s Straits Times advanced 19.89 points, or 0.76%, to trade at 2,634.07. (7.52 a.m., IST)
Outflow of Rs 110.50 crore on 12 August 2009
Foreign institutional investors (FIIs) sold shares worth a net Rs 110.50 crore on Wednesday, 12 August 2009, as against an inflow of Rs 704.20 crore on Tuesday, 11 August 2009.
FII outflow of Rs 110.50 crore on 12 August 2009 was a results of gross purchases Rs 2595 crore and gross sales Rs 2705.50 crore. The BSE Sensex lost 54.43 points or 0.36% at 15,020.16 that day.
FII outflow in August 2009 totaled Rs 522.90 crore (till 12 August 2009). Foreign funds had bought equities worth Rs 11,625.20 crore in July 2009. FII inflow in calendar year 2009 totaled Rs 35,646.80 crore (till 12 August 2009).
There are a total of 1680 foreign funds registered with the Securities & Exchange Board of India (Sebi).
We recommend a buy in the stock of Kohinoor Foods from a short-term perspective. It is apparent from the charts of the stock that it was on an intermediate-term downtrend from its September 2008 peak of Rs 130 till its July low of Rs 43. However, the stock reversed direction taking support from the significant support band between Rs 41 and Rs 43. Since then, the stock has been on a medium-term uptrend. While trending up, the stock surpassed 21 and 50-day moving average one after another and is trading well above these averages. On August 12, the stock jumped 10 per cent, accompanied with high volume. This bullish momentum helped the stock to conclusively break through its intermediate-term down trend line, by gaining another 10 per cent with an upward gap on August 13. The daily relative strength index is featuring in the bullish zone. Besides, the daily moving average convergence and divergence is on the verge of entering into the positive territory. We are bullish on the stock from a short-term horizon. We anticipate it to move up until it knocks our price target of Rs 68. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 58.