Monday, September 14, 2009
PATEL ENGINEERING LIMITED
ANNUAL REPORT 2008-2009
The Directors are pleased to submit the Annual Report of the Company
together with the audited statement of accounts for the year ended March
For the year under review, the Directors have declared an interim Dividend
of Re. 0.80 per share on its Equity shares. In addition, the Directors have
recommended a final Dividend of Re. 0.95 per share. The total Dividend
payout for the year is Rs. 1.75 per share (previous year Rs. 1.50 per
Operations & Business:
The Company continues to see a profitable growth in the financial year
For the year ended March 31, 2009, the Company earned a total income of
Rs.17,963.22 million, as increase of 34.56% over the previous year of
Rs.13,348.97 million. As per the Consolidated Accounts the total income was
Rs. 24,743.04 million, an increase of 32.79% over the previous year's
The net profit of the Company for the year increased to Rs. 1,743.37
million as compared to Rs. 1,476.14 million in the previous year. As per
the Consolidated Accounts the net profit for the year was Rs. 1,804.78
million as compared to Rs. 1,519.05 million in 2007-2008.
The detailed report on the activities undertaken by the Company have been
dealt with in the Management Discussion and Analysis (MDA), forming part of
this annual report.
Unclaimed shares 1,346 unclaimed shares,relating to company's Follow on
Public issue 2006, were transferred to a separate demat account of the
Company, in compliance with Clause 5A of the Listing Agreement entered with
the Stock Exchanges and the voting rights on these shares are frozen till
the shares are claimed by the actual beneficiary.
The government on Monday fixed the issue price of the initial public offer (IPO) of state-run explorer Oil India at Rs 1,050 per
share, raising a cumulative Rs 4,982 crore.
The IPO of 11 per cent fresh equity shares would fetch Rs 4,982 crore at the higher end of the Rs 950-1,050 price band. Further, the government would sell its 10 per cent stake to state refiners at the issue price for Rs 2,205 crore.
"The company would be listed on the bourses on September 30," Oil India Chairman N M Borah told reporters here.
About 99 per cent of the issue was subscribed at the higher end of the price band, official sources said.
The IPO of OIL, which ended on September 10, got subscribed 30.81 times the shares on offer.
The state-run firm received overwhelming response from institutional investors who subscribed about 54 times of the portion reserved for them. Non-institutional and retail investors bid for 9.77 times and 1.14 times respectively of the shares on offer.
Under the twin offer for disinvestment, the Mini Ratna PSU, which produces 3.5 million tonnes of oil annually, will offer fresh equity of 2.64 crore shares or 11 per cent, while the government will put on offer 10 per cent of its stake in the company to state refiners.
Indian equities ended on a marginally lower note tracking weak cues of the global equity markets. Consumer Durables and Realty were amongst the worst hit stocks. On the other hand, Auto, PSU and Banking stocks witnessed buying spree.Real Estate companies traded under the shadow of Housing Development & Infrastructure (HDIL) which had taxmen knocking. Most of the real estate shares retreated.
Major gainers in the sectoral indices were BSE Auto (1.04%), PSU (0.93%), Bankex (0.49%) and Oil&Gas (0.24%). On the other hand, Consumer Durables (1.06%), Realty (0.79%), Teck (0.55%) and Capital Goods (0.55%) were amongst the major losers in the sectoral indices.
BSE Midcap and Smallcap however ended on a higher note up by 0.15% and 0.46% respectively.
``The market moved in a narrow range today and closed a little lower than yesterday. The advances and declines were evenly matched,`` noted Avinash Gupta, AVP Research Equity, Bonanza Portfolio. ``The market has closed on a positive note though Nifty continues to bound in a range of 4,700 and 4,850,`` he added.
On the global front Asian stocks ended on a negative note amid concern a six-month rally had overvalued prospects for an earnings recovery in the region.
Honda Motor retreated 3% in Tokyo on concern the yen`s appreciation to a seven-month high against the dollar will reduce the value of overseas revenue.
Japanese benchmark index Nikkei lost 242.27 points, or 2.32%, to end at 10,202.06 while Hong Kong`s Hang Seng index sank 229.22 points, or 1.08%, to close at 20,932.20.
Meanwhile, European stocks declined on concern the six-month rally in equities have outpaced the prospects for earnings and economic growth.
Societe Generale and Deutsche Bank fell after Nomura Holdings downgraded the shares. BHP Billiton sank almost 2.5% in London as metals retreated.
Standard & Poor`s 500 Index futures expiring in December slid 0.8%.
UK`s benchmark index FTSE 100 fell 34.55 points, or 0.69%, to trade at 4,976.92.
The Sensex ended the day with a loss of 50.11 points, or 0.31% at 16,214.19 after touching a high of 16,252.18 and a low of 16,119.95. The broad-based NSE Nifty fell 20.95 points, or 0.43% at 4,808.60 after hitting a high of 4,832.25 and a low of 4,786.25.
Biggest gainers in the 30-share index were Tata Steel (2.12%), Tata Motors (1.97%), State Bank Of India(1.95%), Hindustan Unilever (1.62%), Mahindra & Mahindra (1.44%), and Jaiprakash Associates (1.21%).
On the other hand, Sterlite Industries (India) (3.55%), Hindalco Industries (2.46%), Grasim Industries (2.01%), Reliance Capital (1.94%), Reliance Communications (1.83%), and DLF (1.67%) were the biggest losers in the Sensex.
Overall market breadth was however positive. Out of the total 2,855 shares traded at BSE, 1,472 advanced, 1,310 declined while 73 remained unchanged.
A week after the Sensex gained over 550 points on sustained all-round buying, the market was range-bound during intra-day trades. After losing 80 points to yesterday's close, the market soon eased and slipped further in afternoon, as investors tracked weak Asian indices. Selling in CD, realty and teck undertakings triggered a major sell-off and the Sensex tumbled around 16100-mark to touch the day's low of 16120. However, select buying towards the close saw the Sensex pare some losses and end the session at 16214, down 50 points, while the Nifty shed 21 points to close at 4809.
The market breadth was marginally positive. Of the 2,855 stocks traded on the BSE, 1,472 stocks advanced, 1,310 stocks declined and 73 stocks ended unchanged. Among the sectoral indices BSE CD and BSE Realty shed 1%, while BSE Teck and BSE CG declined 0.55%. BSE Auto, BSE PSU and BSE Bankex were gainers and moved up marginally.
Select heavyweights declined sharply on strong selling pressure. Sterlite Industries tanked 3.55% to Rs719.45, Hindalco Industries dropped 2.46% to Rs121.10, Grasim Industries fell 2.01% to Rs2,596.95, Reliance Communications shed 1.83% to Rs292.45, DLF lost 1.67% to Rs392, ONGC declined 1.26% to Rs1161.55, Larsen & Toubro dipped 1.24% to Rs1,607.75 and ICICI Bank slumped 1.21% to Rs825.55. ITC, ACC, HDFC, Infosys Technologies and Bharti Airtel shed marginally. Among the select gainers Tata Steel advanced 2.12% to Rs479.10, Tata Motors added 1.97% at Rs561.80, State Bank of India gained 1.95% to trade at Rs1,956.15 and Hindustan Unilever was up 1.62% to Rs260.10.
Over 1.46 crore shares of Kirloskar Oil changed hands on the BSE followed by NHPC (1.40 crore shares), Ispat Industries (1.10 crore shares), IFCI (1.05 crore shares) and Suzlon Energy (0.89 crore shares).
Long journey on premium cruise
Currently in a cyclical downturn, the uptrend does not seem to be on the horizon for the ship-building industry
Pipavav Shipyard is setting up a modern shipyard at a cost of Rs 2995.18 crore on the west coast of the country adjacent to Pipavav Port in Amreli district of Gujarat. Originally promoted by SKIL Infrastructure and Grevek Investments in 1997 as Pipavav Ship Dismantling and Engineering, the present name was acquired in April 2005 to reflect the change in its main business to shipbuilding and ship-repair. Punj Lloyd joined as co-promoters in September 2007. It will hold a 19.43% stake in the post-issue equity capital. The other original promoters, SKIL Infra and Grevek, will own about 18.27% and 1.85%, respectively, of the post-issue capital.
On completion of the construction of a shipyard, Pipavav Shipyard will have the capability to construct and repair a wide range of vessels up to 4,00,000 dead weight tonnage (DWT) including very large crude carriers (VLCCs) and large naval and coast-guard Vessels.
Pipavav Shipyard comprises two sites: a special economic zone (SEZ) unit located on about 95 hectares and an export-oriented unit (EoU) on about 103.92 hectares aggregating nearly 198.92 hectares. A block-making unit and part of the fabrication facility comprises the SEZ unit located in a SEZ owned by E Complex, a wholly owned subsidiary of the company. The shipyard site consisting of the dry dock is part of the EoU, which is 4.5 km from the SEZ unit. An internal road constructed by Pipavav Shipyard links the block-assembly area and the dock site.
Two Goliath cranes, with lifting capacity of 600 tonnes, will service the dry dock, with 662 metres of length and 65 metres. Currently, it is the largest dry dock in India and can accommodate two-and-a-half Panamax vessel or one VLCC or four small vessels at a time for construction.
A major part of construction of the shipyard is complete, barring installation of two Goliath cranes. Construction of the first of the two Goliath cranes will be completed end September 2009 and the second by October 2009. Work on the shipyard will be over by October 2009. Having completed the construction and installation of equipment at modular fabrication and other allied facilities, Pipavav Shipyard has commenced commercial operations with the building of modules of ships from 1 April 2009. The company is targeting to deliver the first Panamax vessel on April 2010 with subsequent deliveries expected to occur at intervals ranging from one to three months thereafter.
Due to the changed market composition, Pipavav Shipyard decided to put up a dedicated facility to cater to offshore business including development of an offshore yard, dredging in the sea face in front of offshore yard for load-out, construction of workshops, building of internal roads and installation of equipment. Construction of the exclusive offshore yard will complete in all respect by March 2010. Through the offshore yard, the company aims to offer products and services such as offshore platforms, rigs, jackets and vessels (excluding sub-sea pipelines) for oil and gas companies.
As it does not have prior experience in shipbuilding, Pipavav Shipyard has executed cooperation agreements with various companies that have substantial experience in this business. For instance, it has tied up with KOMAC, a Korean ship designing and consulting firm, to provide ship designs, drawings, plans and documents; procurement support for supply of non-Indian-sourced shipbuilding materials, shipboard machineries and equipment; production management services related to the start-up and initial operation of Pipavav Shipyard; and technical support services for the construction of the Panamax bulk carriers. It has entered into agreements with PILS Company of South Korea, a procurement and logistics firm, to assist it with the procurement of certain component parts for production, and has executed a technical assistance agreement with SembCorp, a company operating shipyards and offshore construction and fabrication facilities in Singapore. For building offshore supply vessels(OSVs), the company has roped in Jurong Shipyard of Singapore as technical collaborator.
Pipavav Shipyard proposes to utilise the proceeds of the issue to fund the construction of facilities for shipbuilding, ship repair and offshore yard (Rs 179.27 crore), as margin for working capital (Rs 244.04 crore), and for general corporate purpose.
Has firm orders from Golden Ocean (of Bermuda) and AVGI (of Greece) for construction of 10 Panamax bulk carriers of 74,500 DWT each. The aggregate value of the orders is Rs 1788 crore (or US$ 373.52 million), with the delivery starting April 2010 and ending by May 2012. Has also received notification of award of contract for construction of 12 OSVs from ONGC. The order value is Rs 535 crore. Thus, the order book excluding the contract under renegotiation (eight Panamax vessels) and arbitration (four Panamax vessels) stood at Rs 2323 crore. Renegotiating with clients Golden Ocean and AVGI to construct two and six Panamax vessels, respectively. The client will get an option to take delivery or terminate the contract by paying option fee.
Punj Lloyd, as a co-promoter, to conduct all its offshore business (excluding construction and fabrication of sub-sea pipeline) in India through the company or as a consortium partner with the company. This will facilitate pre-quality and successful bagging of orders in niche offshore product segments.
Employs modular process of shipbuilding, enabling it to simultaneously fabricate various parts of ship. Moreover, the longest dry dock and huge Goliath cranes give an edge in launching the vessel by drastically cutting down the dry-docking time of a vessel. Has installed high capacity machines such as a 1,600-tonne steel plate press that will facilitate processing thicker steel plates used in submarines. Has access to skilled manpower at globally competitive cost. Modern shipbuilding facility backed by skilled manpower will facilitate quality offerings at globally competitive prices.
Tax benefits under SEZ and EOU as modular fabrication unit is located in a SEZ and the shipyard in an EOU. However, the notification issued by the Union government in March 2009 stipulated capping total benefits accruing to shipyards located in SEZs from the subsidy plus any other benefits and incentives from the Central government at 30% instead of the earlier policy of shipyards getting 30% subsidy in addition to any other available benefits and incentives.
The global shipbuilding industry has been going through a cyclical downturn since the second half of calendar year (CY) 2008. After a boom in order intake, there have been hardly any major new orders for commercial vessels in the past year. Few orders were booked at very low prices by public-sector yards in China. Instead, the sector is witnessing order cancellations and rescheduling of delivery dates. The slump in orders are due to soft freight rates and fall in prices and rise in availability of second-hand vessels. According to statistics released by the Japan Ship Exporters' Association (JSEA), backlogs held by the Japanese builders dwindled to 60.16 million gross registered tonnage (GRT) end July 2009 from 70.94 million GRT in September 2008. While the long-term prospects of the shipbuilding industry is good, no one is ready to hazard a guess on the bounce-back, which depends on pick-up in freight rates and scrapping of older vessels. . If the market does not pick up till 2011, then the situation could worsen as most of the current order backlog of the existing yards will get over by then, and competition will intensify for new orders, further affecting realisation.
Two major players such as South Korea and Japan, with reputation for quality, might shift their focus to hitherto ignored niche OSVs due to the downturn in the shipbuilding industry. As a result, competition is set to intensify for the Indian shipbuilding industry primarily comprising small players.
Currently, major firm orders are for building commercial ships and not naval and coast-guard vessels. However, small inroads have been made in OSVs by bagging an order for 12 OSVs from ONGC. Commercial shipbuilding is cyclical and it is currently going through a rough patch, with no major orders in the last 12 months. Cancellation of orders or deferment of delivery has become common. Being not an exception to the general trend in the industry, is currently involved in arbitration with one of its clients, Setaf, which had singed contract for four Panamax vessels. The arbitration is over whether the client has the right to cancel the order. Similarly, also renegotiating with Ocean Green and AVGI for a total of eight Panamax vessels. Naval contracts are less cyclical to commercial shipbuilding.
Lacks experience and prequalification for large ticket orders, especially in the offshore market.
Foreign direct investment (FDI) in any company in the defence sector is capped at 26% of the equity capital and requires prior approval of the Foreign Investment Promotion Board. Pre issue aggregate foreign investment stands at 28.62%. Post issue it will come down to 24.96%. May be required to comply with the FDI guidelines to qualify for naval contracts. Failure could affect prospects in the lucrative naval and coast-guard orders.
Currently does not have in-house capability to make basic design for shipbuilding. It bought basic design from KOMAC for Panamax vessels and does the process design engineering in-house.
Current firm order book after considering the delivery schedule of vessels will result in only 56% capacity utilization of the fabrication and dry dock. Thus, optimum utilisation depends on bagging fresh orders, especially orders with shorter delivery schedule.
Any spurt in material/steel cost will affect profitability as prices of orders are fixed.
Shipbuilding orders taken after 14 August 2007 are not eligible for the shipbuilding subsidy of 30%. This has put Indian ship builders at a cost disadvantage as major shipbuilding nations across the world are providing incentives to their shipbuilding industry. Though the order book of 22 Panamax vessels (including orders renegotiated and in arbitration) is eligible for shipbuilding subsidy, replacement orders (fresh order in place of cancelled order) are not eligible for subsidy.
After changing its business from ship dismantling to ship building in 2002-03, has gone through the corporate debt restructuring (CDR) for loans taken to finance construction of ship-dismantling facility. As it has paid the lenders, currently not subject to the CDR scheme. However, rescheduled part of its long-term debts (principal) including loan from HUDCO and IL&FS amounted to Rs 77.46 crore end March 2009 .
Poor corporate governance track record of promoters and directors is a concern. Trading in Horizon Infrastructure, in which promoters and directors Nikhil Gandhi, Bhavesh Gandhi are also directors, has been suspended by the NSE due to non-compliance with the technical and procedural requirements of the listing agreement with the NSE. Following satisfactory redressal, the NSE ended the suspension. Trading was allowed from 25 January 2008. However, Sebi is currently conducting a preliminary investigation into the price movement and transaction post lifting of suspension. Moreover, there are criminal and legal proceedings against certain directors, promoters and promoter group entities.
Part of the equity shares held by the promoters, SKIL and Grevek Investments and Finance, and pledged with certain lenders prior to the filing of the red herring prospectus, has been temporarily released so as to comply with the requirement of Sebi, with specific understanding between promoters, company and lenders. These will be re-pledged on 31 October 2009 in favour of lenders unless the promoters have repaid all amounts due and outstanding.
Foreign institutional investors, who will hold 24.96% of the post-issue equity, are not bound by the lock-in period and are free to sell most of their stake post listing. This may affect the share price of the company on listing.
Since the shipyard is still under construction and commercial operation commenced only on 1 April 2009, cost related to the project has been treated as project development expense pending capitalisation in the fiscal ended March 2009. Hence, the profit and loss account is not representative of the operations.
The order book at Rs 2323 crore (excluding orders under renegotiation and arbitration) is relatively small compared with domestic peers who boast of strong order books, with a diversified mix. Pipavav Shipyard's order book including contract under renegotiation but excluding under arbitration was about Rs 3769.9 crore. The order book of Bharati Shipyard was Rs 5065.5 crore with pending execution at over Rs 3106.49 crore end June 2009 and that of ABG Shipyard was at Rs 12474 crore end May 2009.
Post-IPO, the market cap of Pipavav Shipyard will stand at Rs 3994.79 crore (at the upper price band) and Rs 3661.89 (at the lower price band) compared with ABG Shipyard's current market cap of Rs 1283.18 crore and that of Bharati Shipyard's Rs 559.12 crore. The enterprise value to order book excluding contracts under renegotiation and arbitration at offer price of Rs 55-60 is 2.1-2.2. In comparison, the enterprise value to order book of ABG Shipyard stands at 0.2.
Pipavav Shipyard, with the largest and a modern shipbuilding facility in India, will be ideally placed to capitalise on the uptrend in the shipbuilding industry as and when it comes. However, as of now, it looks like the uptrend in the shipbuilding industry will take a long time to come.
Breaking the past few days of rally session, the domestic market today took a sharp turn to close in red terrain on intense profit booking. However, market cut off losses towards closing on some buying in key stocks. Intense selling dragged the domestic bourses lower on the first trading day of the week. Weak cues from the markets all over the world weighed on the sentiments as European stocks are trading with huge losses and Asian markets closed in red. Depressing US index futures also took huge beating on the domestic bourses. Benchmark indices were in narrow range today on continuous bouts of buying and selling. Buying in PSU stocks along with Bank and Oil & Gas and Auto stocks restricted the losses to some extent. The BSE Sensex ended below 16,250 level and NSE Nifty closed around 4,800 mark.
The market tumbled since initial bell as the majority of Asian stocks were in negative terrain. Besides, the US stock markets snapped its six-day winning streak and closed lower on Friday, due to sharp drop in oil prices and profit-taking that offset an improvement in consumer confidence. There was moderate selling pressure across the broader level and session end choppy. Further, Indian benchmark indices continued to remain in pressure on sustained selling over the counters. After a range bound trading, market managed to minimize the losses during last trading hours though remained on negative zone. On the sectoral front, Consumer Durable, Realty, Teck and Capital Goods stocks witnessed most of the selling from these baskets. However, Auto, PSU, Bank and Oil & Gas stocks contributed to the buying attitude during the trading. BSE Midcap and Smallcap stocks also followed the same trend.
Among the Sensex pack 16 stocks ended in red territory and 14 in green territory. The market breadth indicating the overall health of the market remained positive as 1472 stocks closed in green while 10310 stocks closed in red and 73 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 50.11 points at 16,214.19 and NSE Nifty ended down by 20.95 points at 4,808.60. BSE Mid Caps and Small Caps closed with gains of 8.77 and 32.39 points at 5,930.38 and 7,133.36 respectively. The BSE Sensex touched intraday high of 16,252.18 and intraday low of 16,119.95.
Losers from the BSE Sensex pack are Sterlite Industries (3.55%), Hindalco (2.46%), Grasim Industries (2.01%), RCom (1.83%), DLF Ltd (1.67%), ONGC Ltd (1.26%), L&T Ltd (1.24%), ICICI Bank (1.21%), ITC Ltd (1.10%), ACC Ltd (0.82%), HDFC (0.72%), Infosys Tech (0.68%) and Bharti Airtel (0.58%).
Gainers from the BSE Sensex pack are Tata Steel (2.12%), Tata Motors (1.97%), SBI (1.95%), HUL (1.62%), M&M Ltd (1.44%), JP Associates (1.21%), Wipro Ltd (0.95%), Maruti Suzuki (0.56%) and Reliance Infra (0.32%).
On the global markets front, the Asian markets that opened before the Indian market, ended mostly lower. Japanese stocks plunged on concerns that the strengthened yen could put a knock in exporters'' earnings. Hang Seng, Nikkei 225, Singapore''s Straits Times Index and Seoul Composite closed down by 229.22, 242.27, 41.29 and 16.79 points at 20,932.20, 10,202.06, 2,639.74 and 1,634.91 respectively. However, Shanghai Composite gained 36.95 points at 3,026.74.
European markets, which opened after the Indian market, are trading in red. Shares are pulling back from 11-month highs, with banks and commodity stocks leading the fallers. In Paris the CAC 40 is lower by 48.42 points at 3,686.47, in Frankfurt DAX index is trading up by 75.07 points at 5,548.95 and in London FTSE 100 is trading higher 45.66 points at 4,965.81.
The BSE Consumer Durables index tumbled (1.06%) or 35.66 points at 3,338.58, as Rajesh Export (5.35%), Gitnajali GE (1.88%), Videocon Ind (1.46%), Titan Ind (0.34%) and Blue Star L (0.30%) closed in negative terrain.
The BSE Realty index closed down by (0.79%) or 33.34 points at 4,213.44. Losers are Housing Dev (3.57%), Orbit Co (2.50%), Unitech Ltd (2.22%), Sobha Dev (1.86%) and Anant Raj (1.82%).
The BSE Teck index ended lower by (0.55%) or 17.37 points 3,134.93. Losers are Deccan Chr (4.75%), UTV Software (4.11%), Tanla (2.42%), Zee News (1.84%). and Tata Tele (1.81%).
The BSE Capital Goods index dropped by (0.55%) or 72.96 points at 13,198.59. Losers are Jyoti Struct (3.15%), Praj Industries (1.71%), Thermax Ltd (1.62%), L&T Ltd (1.60%) and Alstom Proje (1.53%).
The BSE Auto index gained (1.04%) or 62.46 points 6,092.85 as Bharat Forge (6.93%), Cummins Indi (3.28%), Apollo Tyre (2.57%), Amtek Auto (1.99%) and Tata Motors (1.97%) ended in green.
The BSE PSU index closed up by (0.93%) or 80.05 points at 8,655.40. Main gainers are MMTC Ltd (6.62%), Indian Overseas Bank (5.55%), Bank of India (4.99%), Chennai Petr (3.43%) and IOC Ltd (3.17%).
Vertex Spinning Limited ended lower by 4.98%. It announced the company''s newest offering, the NARDHANA VERTEX INTEGRATED TEXTILES PARK at a high profile meet with the Nasik Industries and Manufacturers'' Association or NIMA, and the Association of Real Estate Consultants or AREC in Nasik.
Abhishek Inds ended up by 2.45%. The company in a first of its kind agreement, Abhishek Industries Ltd (AIL), the flagship company of the Trident Group has procured Direct License of Time Inc lifestyle publication, Southern Living and has obtained its brand rights for three years for its bath products comprising towel, mat and robe.
Oracle Financial Services Software gained 0.66%. The company announces new release of Oracled FLEXCUBE Universal Banking. New release will help the financial institutions to achieve the greater efficiency and ability, lower costs and streamline business processes.
Suven Life Sciences Ltd (Suven) went up by 4.99%. The company announced that the US Patent Office has issued two Patents: US 7,507,835 and US 7,388,024 corresponding to two New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases and these Patents are valid until 2022 & 2024 respectively.
Godrej Industries Ltd gained 2.22% on reports the company''''s unit Godrej Properties will launch an initial public offering in the next three months.
Kirloskar Oil Engines Ltd increased by 1.53% after 1.42 crore shares, or 7.31% equity, changed hands in a block deal on the BSE at Rs. 113 per share.
Punj Lloyd Ltd gained 1.05% after the company got an order worth Rs. 550 crore from Mangalore Refinery & Petrochemicals for construction related works.
Indian Oil Corporation Ltd rose 3.17% after the company''''s board approved issuing bonus shares in the ratio of 1:1.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
14/9/2009 531932 C G IMPEX NILESH DOSHI S 41171 7.25
14/9/2009 532413 CEREBRA INT VALUE SOURCE IT PRIVATE LIMITED S 375000 10.21
14/9/2009 532363 COMP-U-LEARN RAMESH BABU P B 77583 13.92
14/9/2009 532363 COMP-U-LEARN RAMESH BABU P S 74501 13.72
14/9/2009 532903 DHANUSTECH SANJEEV BURMAN JHAVERI S 100000 37.87
14/9/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 27837 13.98
14/9/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD B 22888 14.15
14/9/2009 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. B 157224 81.82
14/9/2009 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. S 161224 81.86
14/9/2009 532022 FILAT FASH JMP SECURITIES PVT LTD B 36000 57.69
14/9/2009 532022 FILAT FASH HIMAL KANCHANLAL PARIKH HUF S 50000 57.45
14/9/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 1516971 1.15
14/9/2009 508918 GREYCELLS EN I G E INDIA LTD B 83000 115.00
14/9/2009 508918 GREYCELLS EN EVERGREEN RESOURCES PVT LTD S 83000 115.00
14/9/2009 523467 JAI MATA GLA HITESH SHASHIKANT JHAVERI S 20061 8.33
14/9/2009 500243 KIR OIL ENG BETTER VALUE HOLDINGS PRIVATE LIMITED B 14200000 113.00
14/9/2009 500243 KIR OIL ENG KIRLOSKAR SYSTEMS LIMITED S 14200000 113.00
14/9/2009 531731 KUVAM INTL YOGESH SHROFF B 100000 28.10
14/9/2009 531731 KUVAM INTL KIRAN SHROFF B 40000 28.10
14/9/2009 531731 KUVAM INTL RAJNI NAYYAR B 50000 28.10
14/9/2009 531731 KUVAM INTL DINESH CHHAGANLAL THAKKAR HUF B 100000 28.10
14/9/2009 531731 KUVAM INTL AMITA MAHENDRA PARMAR S 40100 28.10
14/9/2009 531731 KUVAM INTL SURESH KUMAR GUPTA S 41000 28.10
14/9/2009 531731 KUVAM INTL AVINASH GUPTA S 88100 28.10
14/9/2009 531731 KUVAM INTL WALBAI NARAYAN BAROT S 20000 28.10
14/9/2009 531731 KUVAM INTL PREMILA SOMESHWAR JOSHI S 18000 28.10
14/9/2009 531731 KUVAM INTL SHOBHA GUPTA S 20000 28.10
14/9/2009 531731 KUVAM INTL GAURAV GARG S 22000 28.10
14/9/2009 531528 MAARS SOFTWR BASMATI SECURITIES PVT LTD S 746790 3.30
14/9/2009 590011 MOVING PICTU-PMS KUSHAL KISHOR LADDHAD B 50000 5.18
14/9/2009 532376 MRO-TEK LTD* DB (INTL) OWN TRADING B 95685 43.85
14/9/2009 532376 MRO-TEK LTD* DB (INTL) OWN TRADING S 95685 43.58
14/9/2009 532736 POWERSOFT DILIP RAMANLAL VAKHARIA B 180270 24.13
14/9/2009 532736 POWERSOFT DILIP RAMANLAL VAKHARIA S 157532 24.04
14/9/2009 532687 REPRO INDIA SUNITA BANSAL B 56651 112.67
14/9/2009 524540 SECUN HEALTH BANSI CHETAN SHAH B 22200 29.28
14/9/2009 524540 SECUN HEALTH SAMEER N SHAH B 47298 29.31
14/9/2009 524540 SECUN HEALTH SAURABHKUMAR RASIKLAL GANDHI S 24115 29.49
14/9/2009 524540 SECUN HEALTH SAMEER N SHAH S 50158 28.93
14/9/2009 532886 SEL MANUF SANJAY HIRAMAN PAWAR B 97283 74.48
14/9/2009 532886 SEL MANUF ARPIT SHARE BROKERS PRIVATE LIMITED B 100000 73.00
14/9/2009 532886 SEL MANUF SANJAY HIRAMAN PAWAR S 97283 74.39
14/9/2009 512413 SPECTACLE KISHORE B CHAUHAN B 313787 54.72
14/9/2009 512413 SPECTACLE KISHORE B CHAUHAN S 266987 54.77
14/9/2009 500470 TATA STL TATA SONS LTD B 5000000 473.00
14/9/2009 500470 TATA STL TATA MOTORS LTD. S 5000000 473.00
14/9/2009 519228 TEMPT.FOODS WALLFORT FINANCIAL SERVICES LTD S 200000 43.14
14/9/2009 590093 TRIMURTHI DR VISHU ENTERPRISE B 44906 36.40
14/9/2009 590093 TRIMURTHI DR DHIRAJLAL V SANGHVI HUF S 55480 36.73
14/9/2009 507747 TTK HEALTHCA* EAST SAIL MNGD BY PARI WASHINGTON COMPANY PVT. LTD. S 101819 180.00
14/9/2009 504973 TUBE INVEST TOYOTA TSUSHO CORPORATION B 2700000 70.77
14/9/2009 504973 TUBE INVEST ELARA CAPITAL PLC (DR) S 2648913 70.80
14/9/2009 503657 VEER ENERGY AANGI SHARES & SERVICES PVT. LTD. B 280672 24.66
14/9/2009 531874 VENUS VENT KAUSHIK RAJNIKANT MEHTA B 40550 61.51
14/9/2009 519307 VIKAS WSP LT JMP SECURITIES PVT LTD B 1186382 23.24
14/9/2009 519307 VIKAS WSP LT JMP SECURITIES PVT LTD S 1023501 23.29
14/9/2009 530477 VIKRAM THERM KAPILA BEN B PATEL S 18825 18.91
14/9/2009 524576 VIVID IND ABHILASHA MONEY OPERATIONS PVT LTD B 38825 18.61
14/9/2009 506720 ZANDU PHAR W HITESH SHASHIKANT JHAVERI B 5576 11881.00
14/9/2009 506720 ZANDU PHAR W HITESH SHASHIKANT JHAVERI S 4507 11880.40
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
14-SEP-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,258939,1526.50,-
14-SEP-2009,DTIL,Dhunseri Tea & Industries,GYAN TRADERS LIMITED,BUY,2100,166.09,-
14-SEP-2009,DTIL,Dhunseri Tea & Industries,UNIVERSAL INDUSTRIAL FUNDS LTD,BUY,132304,166.50,-
14-SEP-2009,EXCELINFO,Excel Infoways Limited,TRANSGLOBAL SECURITIES LTD.,BUY,133675,81.62,-
14-SEP-2009,HIMATSEIDE,Himatsingka Seide Ltd,AJAY BAXI,BUY,645177,47.03,-
14-SEP-2009,ICI,ICI India Ltd.,ICI INDIA LIMITED,BUY,501500,565.49,-
14-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6656256,22.90,-
14-SEP-2009,ITI,ITI Ltd.,JMP SECURITIES PVT LTD,BUY,257255,41.48,-
14-SEP-2009,MRO-TEK,MRO-TEK Limited,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,44307,44.83,-
14-SEP-2009,MRO-TEK,MRO-TEK Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,104698,43.57,-
14-SEP-2009,NOVAPETRO,Nova Petrochem Limited,MANJUDEVEI JAYPRAKASH AGARWAL,BUY,500000,20.25,-
14-SEP-2009,REPRO,Repro India Limited,SUNITA BANSAL,BUY,56375,111.95,-
14-SEP-2009,RUCHINFRA,Ruchi Infrastructure Ltd.,RUCHI SOYA INDUSTRIES LTD.,BUY,2400261,40.00,-
14-SEP-2009,SUNDARMFIN,Sundaram Finance Ltd.,RELIANCE MUTUAL FUND,BUY,568000,305.00,-
14-SEP-2009,TRICOM,Tricom India Limited,PRIMORE SOLUTIONS PVT.LTD,BUY,293775,17.22,-
14-SEP-2009,ZANDUPHARM,Zandu Pharma works Ltd,JMP SECURITIES PVT LTD,BUY,4067,11854.64,-
14-SEP-2009,ZANDUPHARM,Zandu Pharma works Ltd,SETU SECURITIES LTD,BUY,5299,11882.42,-
14-SEP-2009,ZANDUPHARM,Zandu Pharma works Ltd,SVS SECURITIES PVT. LTD.,BUY,5495,11885.97,-
14-SEP-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,258939,1527.18,-
14-SEP-2009,DTIL,Dhunseri Tea & Industries,GYAN TRADERS LIMITED,SELL,134204,166.50,-
14-SEP-2009,EXCELINFO,Excel Infoways Limited,TRANSGLOBAL SECURITIES LTD.,SELL,131675,81.62,-
14-SEP-2009,HIMATSEIDE,Himatsingka Seide Ltd,AJAY BAXI,SELL,601000,47.10,-
14-SEP-2009,ICI,ICI India Ltd.,ASIAN PAINTS LIMITED,SELL,500782,565.50,-
14-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6656316,22.93,-
14-SEP-2009,ITI,ITI Ltd.,JMP SECURITIES PVT LTD,SELL,242255,41.86,-
14-SEP-2009,JKTYRE,JK Tyre & Industries Ltd,PAWAN KUMAR BANSAL....,SELL,262691,113.24,-
14-SEP-2009,MRO-TEK,MRO-TEK Limited,AJAY ASSET MANAGEMENT PRIVATE LIMITED,SELL,96807,44.38,-
14-SEP-2009,MRO-TEK,MRO-TEK Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,104698,43.87,-
14-SEP-2009,NOVAPETRO,Nova Petrochem Limited,CHIRIPAL INDUSTRIES LIMITED,SELL,500000,20.25,-
14-SEP-2009,REPRO,Repro India Limited,SUNITA BANSAL,SELL,54786,115.68,-
14-SEP-2009,RUCHINFRA,Ruchi Infrastructure Ltd.,ANKESH DINESH SHAHRA,SELL,2400000,40.00,-
14-SEP-2009,SUNDARMFIN,Sundaram Finance Ltd.,HAMBLIN WATSA INVESTMENT COUNSEL LTD A/C HWIC ASIA FUND CLAS,SELL,568212,305.00,-
14-SEP-2009,TIDEWATER,Tide Water Oil Co. (India,MADANLAL LIMITED,SELL,6500,4950.00,-
14-SEP-2009,TRICOM,Tricom India Limited,EMERGING CAPITAL ADVISORS LTD,SELL,401976,17.15,-
14-SEP-2009,TRICOM,Tricom India Limited,PRIMORE SOLUTIONS PVT.LTD,SELL,293775,17.71,-
14-SEP-2009,ZANDUPHARM,Zandu Pharma works Ltd,JMP SECURITIES PVT LTD,SELL,3992,11886.47,-
14-SEP-2009,ZANDUPHARM,Zandu Pharma works Ltd,SETU SECURITIES LTD,SELL,4304,11856.44,-
14-SEP-2009,ZANDUPHARM,Zandu Pharma works Ltd,SVS SECURITIES PVT. LTD.,SELL,4515,11818.78,-
The key benchmark indices snapped last six days' gains as world stocks fell on the eve of the first anniversary of the collapse of US investment back Lehman Brothers. Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. The BSE 30-share Sensex fell 50.11 points or 0.31%, up close to 95 points from the day's low and off 40 points from the day's high. Auto and banking stocks were in demand. PSU OMCs also edged higher as crude oil prices fell. But realty stocks fell. The market breadth, indicating the overall health of the market was positive.
As per provisional data, foreign funds today, 14 September 2009, sold shares worth a net Rs 44.40 crore. Domestic funds sold stocks worth a net Rs 6.11 crore
After a weak opening triggered by lower Asian stocks, the market cut losses shortly. But the intraday recovery was short-lived with the Sensex hitting a fresh intraday low soon. The market once again cut losses after hitting a fresh intraday low in morning trade. After a range bound movement for a while, the market extended intraday recovery in early afternoon trade. Alternate bouts of buying and selling was witnessed in mid-afternoon trade even as the Sensex's movement was confined to a relatively narrow band. The intraday day recovery gathered further strength in late trade.
Companies' advance tax numbers and the second quarter September 2009 results next month would be key triggers for the market in the near term. Indian firms have to pay 30% of the estimated tax liability for the year by the second installment of advance tax which falls due on 15 September. Higher advance tax payment will mean their profits may be higher in Q2 September 2009 over Q2 September 2008 and vice versa.
The market slipped today after a sharp rally in the past six days. The Sensex had jumped 865.97 points or 5.62% in six trading days to 16,264.30 on 11 September 2009 from a recent low of 15,398.33 on 3 September 2009 as a revival of monsoon rains, strong response to the initial public offer of Oil India and firm global stocks boosted sentiments.
India's economy will stabilise in the next six months and loan growth is showing signs of improvement, plan panel deputy chairman Montek Singh Ahluwalia said on Monday.
The weather office said on Thursday, 10 September 2009 rainfall was 21% above average in the week to 9 September 2009 continuing the upturn since mid-August but total seasonal rainfall was a fifth short of normal since the season began with the driest June in eight decades. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains. Higher rainfall in the past week has helped India's 81 biggest reservoirs fill up much faster than normal for this time of year. Reservoirs are important for hydropower, which accounts for a quarter of India's generation capacity. They also provide water to irrigate winter crops.
However, India's drought has spread to nearly half its more than 600 districts, particularly in sugar-producing areas, but the government said its grain stocks were bigger than last year and sugarcane output would not fall. Finance Minister Pranab Mukherjee said the country had enough grains to face the drought but there was a shortfall in lentils and edible oils.
India's industrial output rose a decent 6.8% in July 2009 though the growth was lower than a 6.9% rise in the same month last year data showed on Friday 11 September 2009. The industrial output for the month of June 2009 was revised upwards to a solid 8.2%.
But analysts are concerned that a sharp surge in food prices in the past few days due to scanty rains may stoke inflationary pressures in the economy. Interest rates could rise on higher inflation which in turn may impact a nascent economic recovery and corporate profits.
The wholesale price index (WPI) fell 0.12% in the year through 29 August 2009, lower than an annual decline of 0.21% in the previous week, data released by the government showed on Thursday, 10 September 2009. The food article index surged 14.8%.
European shares fell on Monday, breaking a six-session winning streak and pulling back from 11-month highs, with banks and commodity stocks leading the losers. The key benchmark indices in France, Germany and UK were down by between 0.71% to 1.07%.
Asian stocks fell today after the dollar fell to a fresh seven-month low against the yen helped by talk of Japanese fund repatriation and the view that it is replacing the yen as the funding currency for carry trades. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 1.02% to 2.32%. But, China's Shanghai Composite rose 1.24%.
Escalating tensions about bilateral trade between between China and the US also weighed on sentiment. On Sunday, Beijing singled out US automotive and poultry product imports for investigation after the Obama administration decided to put steep import duties on Chinese tires.
Chinese stocks were led higher by gains for companies with stakes in firms that could potentially list on the Growth Enterprise Market (GEM) after China's securities regulator yesterday said it will start reviewing applications from companies seeking to list on the GEM.
Trading in US index futures indicated Dow could fall 65 points at the opening bell on Monday, 14 September 2009.
A year ago, it seemed as if the financial world was coming to an end when Lehman, a 158-year-old US investment bank, filed for bankruptcy on 15 September 2008, setting off a scramble by authorities to avert global financial meltdown.
US markets snapped a five-day winning streak on Friday 11 September 2009 as profit-taking offset data showing an improvement in consumer confidence. The Dow Jones Industrial Average was down 22.07 points, or 0.2%, to 9,605.41. The S&P 500 index fell 1.41 points, or 0.1%, to 1,042.73, and the Nasdaq Composite Index fell 3.12 points, or 0.2%, to 2,080.90.
The university of Michigan-Reuters gauge of consumer sentiment jumped higher than expected to 70.2 in a mid-September reading against a final reading of 65.7 in August 2009. Their outlook for the next year was the highest since September 2007.
Among other economic data, wholesale inventories fell 1.4% to their lowest level in nearly three years in July 2009 and import prices spiked 2% last month.
The BSE 30-share Sensex fell 50.11 points or 0.31% to 16,214.19. The barometer index fell 144.35 points at the day's low of 16,119.95 in morning trade. The Sensex fell 12.12 points the day's high of 16,252.18 in late trade.
The S&P CNX Nifty fell 20.95 points or 0.43% to 4808.60. Nifty September 2009 futures were at 4837, a premium of 28.4 points as compared to the spot closing of 4808.60. Turnover on NSE's futures & options (F&O) segment declined to Rs 58031.55 crore from Rs 61648.13 crore on 11 September 2009.
BSE clocked a turnover of Rs 5099 crore, lower than Rs 5710.05 crore on Friday, 11 September 2009.
The market breadth indicating the overall health of the market, turned positive from negative breadth earlier in the day. On BSE, 1467 shares rose as compared with 1310 that declined. A total of 72 shares remained unchanged.
Among the 30-member Sensex pack, 16 fell while the rest gained.
Stocks have risen sharply this year on increased global risk appetite triggered by hopes of a recovery in the global economy after a setback from a financial sector crisis. The Sensex is up 6566.88 points or 68.06% in calendar year 2009 as on 14 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8053.79 points or 98.69% as on 14 September 2009. FII inflow in calendar 2009 totaled Rs 42700.60 crore (till 11 September 2009).
Coming back to today's trade, the BSE Mid-Cap index rose 0.15% and the BSE Small-Cap index rose 0.46%. Both the indices outperformed Sensex.
The BSE Auto index (up 1.04%), the BSE PSU index (up 0.93%), the BSE Bankex (up 0.49%), the BSE Oil & Gas index (up 0.24%), the BSE Healthcare index (down 0.08%), the BSE Metal index (down 0.14%), the BSE Power index (down 0.21%), the BSE FMCG index (down 0.24%), outperformed the Sensex.
The BSE Consumer Durables index (down 1.06%), the BSE Realty index (down 0.79%), the BSE Teck index (down 0.55%), the BSE Capital Goods index (down 0.55%), the BSE IT index (down 0.33%), underperformed the Sensex.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 0.28% to Rs 2146.95. The stock hit a high of Rs 2159.90 and a low of Rs 2113. The company said today The Bombay high court has sanctioned a scheme of amalgamation of Reliance Petroleum (RPL) with Reliance Industries and consequently RPL stands dissolved without winding-up.
RIL executive director P.M.S. Prasad today said the company's new 5,80,000 barrel-per-day (bpd) refinery in Gujarat is operating at close to full capacity.
Meanwhile, in the latest war of words, Anil Ambani group firm Reliance Natural Resources (RNRL) on Sunday 13 September 2009 alleged that Reliance Industries (RIL) is charging unauthorised marketing margins of 13.5 cents (Rs 6.6) per million metric British thermal unit (mmBtu) on the sale of gas from its KG basin D-6 fields. This means a potential loss of Rs 10,000 crore to the government in the form of subsidies to power and fertiliser firms, it claimed.
RNRL last week told the Supreme Court that the government has no role to play either in the utilisation or the fixation of gas price as per its contract with Mukesh-led RIL. The two sides - RIL and RNRL had approached Supreme Court challenging a decision by the Bombay High Court on 15 June 2009, which said RIL should provide 28 million cubic metres of gas per day to RNRL at $ 2.34 per mmBtu and both the parties should sign a necessary agreement for the same within a month. RIL, however, is pleading that it was only a contractor for the gas from the Krishna-Godavari basin's D6 block and did not have the power to fix the price, while the government has also moved a special leave petition in the case asserting its right on pricing and distribution of natural gas. The apex court has decided to commence hearing on this matter on 20 October 2009.
Oil exploration stocks fell on fall in crude oil. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) fell 1.26%. Cairn India fell 1.09%. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.
Crude oil futures prices fell on Friday, posting the biggest single-day loss in two weeks, on worries of near-term supplies outpacing demand. Light, sweet crude oil for October delivery on the New York Mercantile Exchange settled 3.7% lower at $69.29 a barrel.
But, PSU OMCs rose as the fall in crude oil prices will result in lower under-recoveries for the PSU OMCs on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. BPCL and HPCL rose by between 1.18% to 1.39%.
Indian Oil Corporation rose 3.17% after company's board approved a liberal 1:1 bonus issue.
Housing Development & Infrastructure (HDIL) fell 3.57% after company said that the Income tax Department had conducted a raid on the company's office premises and promoters' residences on 10 and 11 September 2009. During the course of raid, HDIL has agreed to offer close to Rs 350 crore as income to be booked in remaining quarters of financial year ending March 2010.
Further, the company also clarified that, there is no undisclosed income, tax evasion, levy of penalty for any previous years or current year as reported in various newspaper and media. There will not be any substantial change to tax liability or revision in income booked of earlier accounting years, the company said.
Among other realty stocks, DLF, Ackruti City, Omaxe and Unitech, fell by between 1.06% to 2.22%.
Auto stocks rose on hopes of strong sales in the upcoming festive season. India's largest tractor maker by sales Mahindra & Mahindra rose 1.44%. The president of company's two-wheeler business Anoop Mathur said on Thursday, 10 September 2009, at the launch of two new scooters that Mahindra & Mahindra (M&M) expects to sell 100,000 two-wheelers in the next 18 months. M&M entered the two-wheeler segment with the acquisition of Kinetic Motor last year.
Two-wheeler makers were mixed. India's largest bike maker by sales Hero Honda Motors fell 0.17%. India's second largest bike maker by sales Bajaj Auto rose 0.95%.
India's largest truck maker by sales Tata Motors rose 1.97% to Rs 561.80 reversing early losses on reports the company plans to raise about $412 million soon through a sale of global depositary receipts to reduce its debt. The stock came off the day's low of Rs 539.25. The burgeoning debt has been largely related to the purchase of Ford Motor's marquee brands Jaguar Land Rover last year, for which it took a loan of $3.2 billion and other debt to keep the loss-making unit running.
India's top small car maker by sales Maruti Suzuki rose 0.56% on hopes of robust sales in the upcoming festival season.
Car sales rose 26% to 120,669 units in August 2009 over August 2008 boosted by new launches and availability of cheaper loans, data released by the industry body Society of Indian Automobile Manufacturers on 8 September 2009, showed. Sales of trucks and buses rose 18.5% to 40,624 units and motorcycle sales rose 26% to 611,173 units.
Auto component makers rose on expectations of a double digit growth owing to huge orders from Europe and other nations and strong domestic demand. Banco products India, Amtek Auto, Exide Industries rose by between 1.43% to 1.99%.
Banking shares rose on hopes a recovery in the economy will boost lending growth. India's largest bank by net profit and branch network State Bank of India rose 1.95%. Chairman O.P. Bhatt on 8 September 2009 said the bank's earnings are likely to grow 30-35% in Q2 September 2009 over Q2 September 2008. SBI's retail loan growth is likely to be twice of what it was in the year-ago quarter, he said.
Among other PSU banks, Bank of India, Punjab National Bank, Bank of Baroda, rose by between 2.65% to 4.56%.
India's second largest private sector bank by net profit HDFC Bank rose 0.23%. Its ADR rose 0.37% on Friday.
But, India's largest private sector bank by net profit ICICI Bank fell 1.21% even as its ADR rose 1.6% on Friday. The bank's managing director Chanda Kochhar said on 8 September 2009 credit growth in India is likely to pick up in the second half of this year.
Metal stocks fell as LMEX, a gauge of six metals traded on the London Metal Exchnage fell 3.54% on Friday, 11 September 2009.
India's largest copper maker by sales Sterlite Industries fell 3.55% extending Friday's 2.87% fall. The company on Friday said it had raised its open offer price for bankrupt US copper miner Asarco by a fifth to $2.565 billion. Sterlite, a unit of India-focused mining company Vedanta Resources, has been facing off with Mexican miner Grupo Mexico for the assets of Asarco, which has been under bankruptcy protection since 2005.
Among other metal stocks, Hindalco Industries, National Aluminum Company, Hindustan Zinc, Steel Authority of India, fell by between 1.11% to 2.46%.
But India's largest steel maker by sales Tata Steel rose 2.12% extending recent gains after Steel Minister Virbhadra Singh on 10 September 2009 said domestic consumption of steel could rise 6% this quarter.
Domestic steel makers raised prices of flat steel products such as plates and sheets, mainly used in manufacturing automobiles, refrigerators and washing machines, by about 3-5% from Tuesday, 1 September 2009, in line with international prices.
Tata's steel sales from Indian operations rose 25% to 4,92,000 tonnes in August 2009 over August 2008. The local operations contribute about a quarter of the group's total annual global capacity of 30 million tonnes, which includes Corus, Europe's second-largest steelmaker.
IT stocks rose on hopes of faster recovery in US economy. US is the biggest market for Indian IT companies. India's largest software services exporter by sales Tata Consultancy Services rose 0.1%. TCS's Chief Executive S. Ramadorai on 7 September 2009 said TCS is seeing stability on the ground and the company's demand pipeline is good.
India's third largest software services exporter by sales Wipro rose 0.95%. Its ADR rose 0.3% on 11 September 2009.
But, India's second largest software services exporter by sales Infosys fell 0.68% as its ADR fell 0.91% on Friday, 11 September 2009.
India's largest thermal power generator by sales NTPC was flat at Rs 205.20 . The company's chairman said late on Thursday the government may sell up to 5% in power producer NTPC before March 2010.
Among other power stocks, Reliance Infrastructure, Torrent Power, Tata Power Company, Reliance Power fell by between 0.02% to 1.23%.
Cement stocks extended recent losses on reports cement makers have cut prices by Rs 3 per 50 kilogram bag in Mumbai. ACC, Grasim Industries, Ultratech Cement, Ambuja Cements fell by between 0.82% to 2.01%.
FMCG pivotals fell on worries over scanty rains. FMCG firms derive substantial revenue from the rural sector. Marico, Dabur India, Tata Tea, ITC, Hindustan Unilever fell by between 0.63% to 1.1%.
Telecom stocks fell. India's largest mobile telecom player by sales Bharti Airtel fell 0.58% after a South African minister expressed caution over the proposed tie-up between South African MTN and Bharti Airtel, casting doubt over whether the deal will get a nod from the South African government.
Both MTN and Bharti have extended exclusive talks twice and given themselves time until the end of the month of September 2009 to decide whether to join forces.
India's largest mobile telecom player by sales Reliance Communications fell 1.83%.
The government plans to hold a much-awaited auction on 7 December 2009 to sell airwave spectrum bands to the country's mobile operators for use in third-generation wireless services, the Department of Telecommunications said in a notice on its Web site Monday.
The auction for 3G spectrum will allow operators a chance to offer mobile-phone access to high-speed Internet, video downloads and other 3G services in the world's second-largest wireless market by subscribers. The move is also expected to earn the government billions of dollars in revenue in a year when it is expected to borrow a record amount to bridge its fiscal deficit.
The government said it will issue a notice inviting applications from interested bidders on 26 October 2009, with the final date for receiving the applications set for 13 November 2009.
Capital goods stocks fell on profit taking. India's largest engineering and construction firm by sales Larsen & Toubro fell 1.24%. The company on Thursday 10 September 2009 said it got orders worth Rs 405 crore.
Among other capital goods stocks, Praj Industries, Siemens, BEML, Thermax, fell by between 0.25% to 1.71%.
India's largest electric equipment maker by sales Bharat Heavy Electricals was flat at Rs 2256.10. As per reports the company has won an order worth Rs 1300 crore for an upcoming thermal power project at Ennore in Tamil Nadu. The power project is being set up by a joint venture between NTPC and the Tamil Nadu Electricity Board (TNEB).
Jet Airways jumped 2.18% after pilots resumed work on Sunday, 13 September 2009, ending a 5-day stir. The pilots, including the four who were sacked, resumed duties, after an amicable agreement was reached between the management and the striking pilots. All international and domestic flights are expected to resume normal operations from today, 14 September 2009.
Among other airline stocks, KingFisher Airlines and SpiceJet fell by between 0.54% to 4.87%.
Tea stocks fell on profit taking after recent gains triggered by jump in tea auction prices due to fall in production. McLeod Russel, Assam Tea & Exports, Harrison Malayalam, Assam Company fell by between 0.86% to 2.19%.
Tea production in India fell by 3% to 127 million kilogram (kg) in July 2009 over July 2008 on a decline in output mainly in West Bengal, though higher realisation pushed up exports marginally, according to the Tea Board.
Sugar stocks on bargain hunting after a recent slide. Shree Renuka Sugars, Balrampur Chini, Bajaj Hindustan, rose by between 0.32% to 2.63%.
Sugar stocks had declined in the past few days on recent reports the Indian government has asked tax authorities to monitor the release of sugar stocks by mills to ensure steady prices and supplies in the festival season when demand peaks.
Kirloskar Oil Engines clocked the highest volume of 1.46 crore shares on BSE. NHPC (1.4 crore shares), Ispat Industries (1.1 crore shares), Cals Refineries (1.06 crore shares) and IFCI (1.05 crore shares) were the other volume toppers in that order.
Tata Steel clocked the highest turnover of Rs 365.19 crore on BSE. Aban Offshore (Rs 176.84 crore), Kirloskar Oil Engines (Rs 170.26 crore), Reliance Industries (Rs 152.31 crore) and Housing Development & Infrastructure (148.79 crore) were the other turnover toppers in that order.
Today domestic markets are likely to open negative as the majority of Asian markets are trading weak. In addition, the US markets snapped a five-day winning streak and closed lower on Friday due to sharp drop in oil prices and profit-taking that offset an improvement in consumer confidence. In domestic arena, profit booking may emerge after last six trading sessions’ gains. Market is likely to remain volatile during the trading.
On Friday, the domestic market today took a turn after upbeat opening, to close with slight gain due to profit booking after rally in past few days. The market was extremely volatile and was constantly hovering between positive and negative terrain on continuous bouts of buying and selling. Benchmark indices overlooked the positive global cues and industrial output data that came as per expectations. India’s industrial production witnessed rise for the 7th straight month, as it grew 6.8% during July 2009, as compared to 6.4% in the corresponding month last year. The BSE Sensex ended above 16,200 level and NSE Nifty closed above 4,800 mark.
The BSE Sensex closed marginally higher by 47.44 points at 16,264.30 and NSE Nifty ended slightly up by 10.15 points at 4,829.55. BSE Mid Caps and Small Caps closed with losses of 7.89 and 26.92 points at 5,921.61 and 7,101.27 respectively. The BSE Sensex touched intraday high of 16,337.98 and intraday low of 16,130.32.
On Friday, US markets closed negative. After intraday high of 2009, the stocks gave up some gains after six straight sessions. There was moderate selling pressure across the broader level and session end choppy. An upbeat forecast from FedEx provided a lot of support to the industrial sector which closed with a moderate gain of 0.4%. The University of Michigan released a better-than-expected preliminary consumer sentiment survey for September at 70.2, however as the data doesn’t directly correlate with the consumer spending, traders ignored it completely and the retail sector ended with a loss of 0.8%. Further the Import Price Index report for August showed that import prices were down a steeper-than-expected 2.0% month-over-month. Meanwhile, wholesale inventories for July fell 1.4% little worse than expected. At the macro level the August budget showed a smaller-than-expected deficit of $111.40 billion and consequently the treasuries were under pressure. Crude oil futures for the month of October delivery fell by 3.8% at $69.22 barrel on New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed lower by 22.07 points at 9,605.41. NASDAQ index lost 3.12 points at 2,080.90 and the S&P 500 (SPX) also declined by 1.41 points to close at 1,042.73 points.
Today the major stock markets in Asia trading in negative. Hang Seng is low by 204.71 points at 20,956.71. Further, Japan''s Nikkei is low by 257.70 points at 10,186.63 followed by Straits Times trading down by 19.82 points at 2,661.21 and Seoul Composite lower by 12.82 points at 1,638.88. However, Shanghai Composite is trading high by 7.53 points at 2,997.32.
Indian ADR''s ended mixed on Friday. In the IT space, Infosys was down 0.91%, Satyam was down 2.11%, Patni was down 2.78%, while Wipro was up 0.30%. In the banking sector, ICICI Bank gained 1.60% and HDFC Bank was up 0.37%. In the telecom pack, MTNL was up 0.80% and Tata Comm was up 0.50%. In the other space, Sterlite was down 2.99%, Tata Motors slipped 3.13% and Dr Reddys was down 0.96%.
The FIIs on Friday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,998.50 Crore and gross debt purchased stood at Rs 663.90 Crore, while the gross equity sold stood at Rs 2,423.60 Crore and gross debt sold stood at Rs 510.40 Crore. Therefore, the net investment of equity and debt reported were Rs 574.90 Crore and Rs 153.50 Crore respectively.
Positive upside guidance fail to boost stocks
US stocks slipped for the first time in six sessions on Friday, 11 September, 2009. Economic reports dominated the day and the same that checked in were mixed in nature. Despite Friday's losses, stocks registered good gains for the week. The advance came despite a relatively slow week, with only a handful of earnings and economic reports.
For the week, that ended on Friday, 11 September, 2009, The Dow Jones Industrial Average ended higher by 164.14 points (1.7%) at 9,605.41. The Nasdaq Composite Index, ended higher by 62.12 points (3.1%) at 2,080.90. S&P 500 ended higher by 26.33 points (2.6%) at 1042.73. Nine of ten sectors registered weekly losses led by financial sector. Only the consumer staple sector managed to incur gains.
During the course of the week, in economic news, weekly jobless claims fell to 26,000 to 550,000, topping the 560,000 consensus. Continuing claims declined 159,000 to 6.088 million. The consensus expected continuing claims to decline a more modest 34,000.
The Fed's Beige Book, a collection of anecdotal economic data from the Fed districts, continued to show that the rate of economic decline is slowing, with manufacturing showing improvement. But areas such as employment, consumer spending, and construction remain weak.
In corporate news, Kraft offered to buy London-based Cadbury for $16.7 bln, which Cadbury subsequently rejected.
Among major earning announcements, Texas Instruments raised its Q3 outlook.
In the Wall Street on Friday, 11 September, 2009, stocks initially looked as if they would extend recent gains as they made their way to new intraday highs for 2009, but the largely listless trade in the early going made for choppy trade, which then invoked moderate selling pressure.
The Dow Jones industrial Average ended lower by 22.07 points on Friday, 11 September, 2009 at 9605.41. The Nasdaq shed 3.12 points to end at 2080.90. S&P 500 ended lower by 1.41 points at 1042.73.
An upbeat earnings forecast from FedEx helped keep the stock market's bullish mood intact and start the session in positive territory. FedEx issued upside earnings guidance for its fiscal first quarter, saying that strict cost management and better-than-expected volume in international shipments helped its performance. Campbell Soup and National Semiconductor also made upbeat forecasts, but their announcement didn't help market much.
Among economic reports expected on Friday, the Import Price Index for August first hit the wires. According to the report, last month's import prices were down a steeper-than-expected 2% month-over-month. Wholesale inventories for July fell 1.4%, which was a bit worse than had been expected.
The University of Michigan released a stronger-than-expected preliminary consumer sentiment survey for September that came in at 70.2. Last on the day's economic calendar was the Treasury's August budget, which showed a smaller-than-expected $111.4 billion deficit.
On Friday, crude prices ended lower for the first time in five sessions on Friday, 11 September, 2009. Prices ended lower due to weak demand concerns in the international front. On Friday, crude-oil futures for light sweet crude for October delivery closed at $69.29/barrel (lower by $2.65 or 3.7%). During intra day trading, crude had hit a high of $72.9 earlier. Prior to Friday, crude had added 6% in past four sessions. For the week, crude ended higher by 1.9%.
As per latest reports, crude imports in China, the world's second biggest oil consumer, fell to 18.47 million metric tons in August, or about 4.37 million barrels a day.
In the currency market on Friday, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by 0.2%. The dollar fell against the euro to a fresh one year low.
Precious metal prices ended higher on Friday, 11 September, 2009. Prices rose due to the slipping dollar. On Friday, gold for December delivery ended at $1006.4, higher by $9.6 (1%) an ounce on the New York Mercantile Exchange. During intra day trading, gold went up by 1013.7. For the week, gold ended higher by 1%.
For the year, The Dow, Nasdaq and S&P 500 are higher by 9.4%, 32% and 15.4% respectively.
4.50 to 5.50
Globus Spirits Ltd.
5 to 6
950 to 1050
40 to 42
55 to 60
6 to 7
The key benchmark indices may fall on profit taking after last six days of gains tracking weak global cues. However, revival in India's annual monsoon and good industrial output data may cap fall.
Asian stocks fell today after the dollar fell to a fresh seven-month low against the yen helped by talk of Japanese fund repatriation and the view that it is replacing the yen as the funding currency for carry trades. The key benchmark indices in HongKong, Japan, South Korea, Singapore and Taiwan fell by between 0.65% to 2.47%. But, China's Shanghai Composite rose 0.14%.
The US markets snapped a five-day winning streak on Friday on profit-taking offset an improvement in consumer confidence. The Dow Jones was down 22.07 points, or 0.2%, to 9,605.41. The S&P 500 index fell 1.41 points, or 0.1%, to 1,042.73, and the Nasdaq Composite Index fell 3.12 points, or 0.2%, to 2,080.90.
The markets shrugged off an improvement in consumers' outlook. The university of Michigan-Reuters gauge of consumer sentiment jumped higher than expected to 70.2 in a mid-September reading against a final August reading of 65.7. Their outlook for the next year was the highest since September 2007.
Among other economic data, wholesale inventories fell 1.4% to their lowest level in nearly three years in July and import prices spiked 2% last month.
Back home, the weather office said on Thursday, 10 September 2009 rainfall was 21 % above average in the week to 9 September 2009 continuing the upturn since mid-August but total seasonal rainfall was a fifth short of normal since the season began with the driest June in eight decades. More than two-thirds of the people live in villages and 60 % of the farm land depends on the annual rains. Higher rainfall in the past week has helped India's 81 biggest reservoirs fill up much faster than normal for this time of year. Reservoirs are important for hydropower, which accounts for a quarter of India's generation capacity. They also provide water to irrigate winter crops.
However, India's drought has spread to nearly half its more than 600 districts, particularly in sugar-producing areas, but the government said its grain stocks were bigger than last year and sugarcane output would not fall. Finance Minister Pranab Mukherjee said the country had enough grains to face the drought but there was a shortfall in lentils and edible oils.
The wholesale price index (WPI) fell 0.12% in the year through 29 August 2009, lower than an annual decline of 0.21% in the previous week, data released by the government showed on Thursday. The food article index surged 14.8%.
Analysts are concerned that a sharp surge in food prices in the past few days due to scanty rains may stoke inflationary pressures in the economy. Interest rates could rise on higher inflation which in turn may impact a nascent economic recovery and corporate profits.
Meanwhile, India's industrial output data for the month of July 2009 showed growth of 6.8% compared with 6.9% growth in the same month last year data showed on Friday 11 September 2009. The industrial output for the month of June 2009 revised higher to 8.2%.
The BSE 30-share Sensex rose 47.44 points or 0.29% to 16,264.30 on Friday.
As per the provisional figures on NSE, foreign funds bought shares worth Rs 228.77 crore while domestic funds sold shares worth Rs 294.20 crore on Friday.
The Sensex has jumped 865.97 points or 5.62% in six trading days to 16,264.30 on 11 September 2009 from a recent low of 15,398.33 on 3 September 2009 as a revival of monsoon rains, strong response to the initial public offer of Oil India and firm global stocks boosted sentiments.
Prices drop as inventories pile up
Copper prices continued to fall on Friday, 11 September, 2009 at Comex and LME. Prices fell to on e week lows as inventories piled up at Shanghai.
At USA, copper futures for December delivery fell 3 cents (1%) to 2.865 a pound. Earlier, during the day, copper rose by almost 1.4%. Copper fell 0.7% for the week. Copper ended August, 2009, higher by 7%.
On the London Metal Exchange, copper for delivery in three months ended lower by $44 (0.7%) at $6,250 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 92%.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
As per latest reports, stockpiles monitored by the Shanghai Futures Exchange climbed 12% this week to 97,396 metric tons, the most since June 2007. The price of the metal has doubled this year, driven by record purchases by China in the first half.
In the currency market on Friday, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by 0.2%. The dollar fell against the euro to a fresh one year low.
In its latest report, Goldman Sachs reported that it has forecast copper to reach $7,650 a ton at the end of 2010.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
Among other metals traded in the LME on Friday, lead gained 1.9% to $2,150 a ton and zinc gained 1.3% to end at $1,935 a ton. Nickel gained 0.85% to end at $17,405. Aluminium rose marginally to $1,856 a ton.
The market is likely to remain uncertain on the back of a strong intra-day volatile moves. However, weak Asian indices in current trades may add some pressure from local indices in morning trades. Among the local indices, in the near term the Nifty could test 4870 on the upside while on the downside the index may get support at 4790. The Sensex is likely to get support at 16024 and may face resistance at 16400.
US indices declined marginally on Friday, with the Dow Jones lost 22 points to close at 9605 and the Nasdaq to end 3 points lower at 2081.
Among the ADR,s, Tata Motors was the biggest loser and dropped over 3.13% followed Patni Computers and Satyam declined 2% each, while Infosys, Dr Reddy and Reddy were down around 1% each. However, Wipro, ICICI Bank, HDFC Bank, MTNL and VSNL closed in positive territory with marginal gain.
Crude oil prices lost sharply, with the Nymex light crude oil declined $2.64 at $69.29 per barrel. In the metals segment, the Comex gold for June series gained $9.60 to settle at $1006.40 an ounce.
Daily trend of FII/MF investment in equities
On September 10 2009, FIIs were net buyers of stocks to the tune of Rs575 crore (purchases worth Rs2999 crore and sales of Rs2424 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs343 crore (purchases worth Rs631 crore and sales of Rs977 crore.
Sterlite Industries raises its offer price by a fifth to US$2.56bn to acquire Asarco in an all-cash deal. (BS)
Tata Motors plans to soon raise Rs20bn from overseas investors through a sale of GDRs and use the proceeds to pare debt burden.(Mint)
Jet Airways decides to cut economy ticket prices by a flat 50% on its flagship airline for travel up to September 18.(BL)
Bharti Airtel and MTN may extend deadline for deal. (ET)
Petroleum ministry asks Cairn India to pay a production tax on oil it has started producing from its Rajasthan fields.(FE)
BHEL says it has received Rs13bn order from NTECL, a joint venture between NTPC and Tamil Nadu Energy Company.(FE)
Biocon, Amylin Pharma tie up to develop new diabetes drug.(BL)
Glenmark Pharma plans to set up a facility to produce oncology drugs in Buenos Aires in Argentina. (ET)
Infosys may acquire consulting businesses for as much as US$200mn. (ET)
Government is mulling a JV between Nalco and Hindustan Copper as one of the options to revamp the state-owned copper producer.(DNA)
The promoters of Patni Computer and PE firm General Atlantic have revived consultations with potential buyers to sell a part of their stake in the company. (BS)
Jet Airways resumes flights, full normalcy expected. (BS)
HCL Technologies raised Rs5bn by way of debt through allotment of debentures. (ET)
HDIL has allegedly admitted to the existence of unreported income of around Rs3.5bn. (ET)
BPCL talks to PE investors for stake sale in Bina refinery. (BS)
Jet Airways plans to raise capital through the sale of shares to institutions within the next 2-3 months. (BS)
Essar Oil says its subsidiary Vadinar Power Company has raised additional equity, following which the company's stake in the unit has reduced to 26%.(FE)
Jaypee Hydro says its 1,000MW project in Himachal Pradesh would be commissioned in the second half of the next calender year.(FE)
Adani Power ties up for coal linkages with a central PSU, while it has been alloted blocks for captive coal mines by the Union Government. (BS)
HCC plans to develop a mini township on 500 acres of land at Nashik in Maharashtra, with an investment of around Rs8bn. (ET)
Dabur plans to set up its second manufacturing facility in Egypt as part of its expansion plan in the region. (ET)
RBI has for the first time made an exception and allowed Indiabulls Financial, an NBFC, to take 74% stake in an insurance JV.(TOI)
NMDC says it is in discussion with the West Australian government to acquire an iron ore mine for the first time outside the country.(DNA)
Rural Electrification Corporation is planning to raise around Rs90bn in 2009-10. (BS)
BSNL to award US$2bn equipment contract ITI Industries. (ET)
Novartis receives the government nod to start human trials for its swine flu vaccine in India. (ET)
Adhunik Metaliks’ subsidiaries, Orissa Manganese & Minerals Ltd and Adhunik Power will be investing Rs33.5bn in mining and power over the next two years. (BS)
Brigade Enterprises is looking to raise close to Rs9bn through the PE route to expand its hospitality vertical as well as to develop a 120 acre township in Bangalore. (BS)
Coal India is eyeing acquisition of a mid-sized thermal coal block in Australia. (BL)
GSPC likely to file for IPO in October; proposes to raise Rs50bn for KG basin development.(BL)
Centre may allow PSU coal miners Coal India and Singareni Collieries to revise prices next month.(BL)
Oberoi Constructions plans to raise Rs1bn through an IPO by March next year.(DNA)
Foreign exchange reserves increased by US$1.3bn to US$278bn for the week ended September 4.(BL)
Major ports may be allowed to invest their surplus of over Rs120bn in the equities of PSUs in case the ports do not have any immediate need for funds.(BL)
IIP grows 6.8% in July’ 09 as compared to 6.4% a year ago.(TOI)
Cement production rose by 17.6% YoY in August while dispatches improved 17.0% as per CMIE data.(TOI)
Cumulative industrial growth for the first four months of the current fiscal stood at 4.6% as compared to 5.6% for the same period a year ago.(BL)
Union Minister for IT and Communications favours extending the tax benefits enjoyed by ICT firms in Software Technology Parks by a further three years from 2011.(BL)
The pre-bid meeting on 3G spectrum will be held on October 12, according to the Union Minister of Communication and Information Technology; spectrum auction will begin on December 7.(FE)
RBI deputy governor says central bank will soon come out with draft norms on repoability in corporate bonds and credit derivatives; also examining the issue of hiking the cap on HTM segment.(DNA)
RBI removes the clause for hotels to be classified as commercial real estate; relief to make room for easy credit, cheaper rates for hospitality industry.(FE)
CERC notifies a price band from 10paise to Rs8 per unit on electricity prices; cap will be applicable to power exchanges and bilateral markets for a period of 45 days.(FE)
The central government has given in-principle approval to connect educational institutions and colleges in the country, said Sachin Pilot, Minister of State for Communications and Information Technology. (BS)
PSU banks seek government help to meet capital needs. (ET)
Life is a succession of lessons which must be lived to be understood.
The bulls may raise a toast that they have lived to fight another year. Given the lessons from the past, the bulls may look at lessening their holdings temporarily. Today, we expect a weak opening with most regional markets flashing red signs. Results will be the next big event, both here and overseas. Another quarter of outperformance will set the stage for a brief rally. There could be some fireworks this Diwali unless some party poopers pop up.
The financial world was hit by a massive earthquake a year ago in the form of the collapse of big financial houses. It turned the seemingly invincible US capitalism upside down, and left a trail of destruction. The collateral damage spread across the globe with disastrous consequences. Though Asia was also badly affected, it mostly emerged unscathed, barring Japan.
Overall, the global situation has stopped worsening and there are pockets where one can spot a few greenshoots. But, the recovery will be slow before a more sustained rebound. Strong liquidity could still power the market higher, but the gains will not come easy. Don’t accelerate too much lest you lose control of the steering.
The intermediate trend is up, but it will not be a one-way move up as the indices have more than doubled. While 4350 looks quite improbable as of now, support could kick in at 4650-4700 or even at 4760-4790 before that. On the way up, the Nifty could go as high as 5200-5300 in a few weeks.
Over the medium-to long-term, one has to see how the report cards of India Inc. and Global Inc. turn out and how regulators go about implementing their so-called 'exit strategies' to reverse the huge stimulus measures. Stick to a stock centric approach. Traders and investors alike may tread with caution and will react to daily dose of news.
FIIs were net buyers of Rs2.28bn in the cash segment on Friday on a provisional basis while the local funds pulled out Rs2.94bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs864.3mn. On Thursday, FIIs were net buyers of Rs5.75bn in the cash segment. With this, their net investments in Indian stocks this year have crossed $8.7bn. Mutual Funds were net sellers of Rs3.43bn on Thursday.
US stocks slipped on Friday as investors chose to take some money off the table after sending the major indexes to 11-month highs in the previous session. Weak oil prices weighed on the influential commodities sector.
Concerns that the recent rally has outpaced the prospects for earnings overshadowed higher-than-estimated consumer confidence and profit at FedEx Corp.
The Dow Jones Industrial Average lost 21 points, or 0.2%, to 9,605.41. The S&P 500 index finished nearly unchanged at 1,042.73. Both the Dow and S&P 500 ended the previous session at their highest points since Oct. 6.
The Nasdaq Composite index fell 3 points, or 0.2%, after ending the previous session at its highest point since Sept. 26. All the three major indexes rose for the week.
Stock declines were broad based, with 21 of 30 Dow issues falling.
The weak dollar, higher commodity prices and investor fears of missing out on a rally have all contributed to the recent rally. However, this week's advance was fueled by light trading volume, pointing to the lack of conviction among investors.
Investors have also been pulling money out of stocks and funds and putting it into cash or bonds. Tracker Trim Tabs said equity mutual funds and ETFs are on track to post the first monthly outflows since March.
Since bottoming March 9 at a more than 12-year low, the S&P 500 has risen 54%.
Meanwhile, the CBOE Volatility index, the VIX, Wall Street's fear gauge, closed at the lowest point since Sept. 8 of last year. Typically, the VIX moves inversely to the direction of stocks.
Package delivery firm FedEx, often seen as a proxy for the economy, lifted its fiscal first- and second-quarter earnings forecasts due to cost cutting and stronger international shipments. FedEx said it expects to earn 58 cents per share in the first quarter versus its earlier forecast for a profit of 44 cents per share. The company expects to earn between 65 cents and 95 cents per share in the second quarter versus its earlier prediction of 70 cents. FedEx shares gained 6.4%.
The University of Michigan's initial reading on consumer sentiment rose to 70.2 in September from 65.7 in late August. That topped the 67.5 reading economists were expecting and is the highest reading since June.
The report showed that only 16% of consumers said their finances had improved, the smallest percentage on record since the university first asked the question in 1946. Only 25% of consumers said they expected income gains over the next year.
In other economic news, the Commerce Department reported that wholesale inventories fell 1.4% in July after falling a revised 2.1% in June. Economists forecast inventories would fall by 1%. It was the 11th consecutive month investors dropped.
Additionally, the Bureau of Labor Statistics said that August import prices rose 2% versus forecasts for a rise of 1%. Import prices excluding oil rose 0.4% after falling 0.2% in July. Export prices rose 0.7%.
The August Treasury budget was released in the afternoon. The deficit grew by US$111.4 billion in August versus forecasts for a deficit of US$139.5 billion. The deficit for the first 11 months of the fiscal year stood at US$1.38 trillion.
Weakness in dollar and optimism over a global economic recovery have lifted commodity prices. But oil prices reversed course on Friday. US light crude oil for October delivery fell US$2.65 to settle at US$69.29 a barrel on the New York Mercantile Exchange.
The dollar continued its slide against other major currencies, falling to multi-month lows versus the euro and the Japanese yen.
COMEX gold for December delivery rose US$9.60 to settle at a record US$1,006.40 an ounce, after topping the key US$1,000 level during the day for the past three sessions.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.31% from 3.35% late on Thursday. Treasury saw strong demand for its auction of US$32 billion in long-term bonds earlier this week.
Tuesday marks the first anniversary of the collapse of Lehman Brothers, an event seen as exacerbating the recession and pushing the economy into crisis mode. Ahead of that, President Obama will speak Monday about the steps his administration has taken to "bring the economy back from the brink" and make sure a collapse at that level doesn't happen again.
European shares closed higher for the seventh straight session on Friday, with miners and automakers pacing the advance to a fresh 11-month high.
After a modest rise on Thursday, the pan-European Dow Jones Stoxx 600 index finished with a gain of 0.5% to 241.78 for the session and a rise of over 3% on the week. Every Stoxx 600 sector but telecoms traded higher.
The UK's FTSE 100 index was up 0.5% to 5,011.47, while the French CAC-40 index added 0.8% to 3,734.89 and the German DAX index rose 0.5% to 5,624.02.
The BSE Sensex gained 57 points or 0.4% at 16,274 after touching a high of 16,337 and a low of 16,130. The index opened at 16,254 against the previous close of 16,216. The NSE Nifty gained 10 points to shut shop at 4,829.
In Asia, the Nikkei in Japan slipped by 0.7% at 10,444 while Australia's S&P/ASX ended higher by 0.6% at 4,596. The Hang Seng index in Hong Kong gained 0.5% at 21,161. However, Shanghai SE Composite in China gained by 2.2% at 2,989.
In Europe, stocks were in the green. The FTSE in the UK was up 0.7%, The DAX in Germany was up 0.62% and the CAC 40 index in France was up 0.9%.
Coming back to India, among the BSE sectoral indices, the Consumer Durables index was the top gainer, gaining 2%, followed by the PSU index that was up 1.8%. The BSE Bankex index up 1.6% and the BSE IT index was up 1.2%.
However, BSE Realty index was down 1.5% and BSE FMCG index was down 1%. The BSE Mid-Cap index fell 0.2% and the BSE Small-Cap index fell by 0.4%.
Among the 30-components of Sensex, 20 stocks ended in the red and 10 ended in the positive terrain. Among the major losers were Sterlite, DLF, ACC, HUL and JP Associates.
On the other hand, Hindalco, SBI, ICICI Bank and Wipro were among the major gainers.
Outside the frontline indices, the big loses in the broader market were Spice Tele, Sintex Ind, REC, Bhushan Steel and REI Agro. On the other hand, gainers included MMTC, Godrej industries, Central Bank, Bosch and P&G.
The top gainers in the IT sector were TCS (up 5.3%), Infosys (up 3%) and HCL Tech (up 2.6%).
The top losers were Patni Computer (down 6.3%), Financial Tech (down 5.3%), Mphasis (down 4.8%), Oracle Financial (down 2.7%) and Sasken Comm (down 1.2%).
The BSE Consumer Index: The top gainers in the consumer durables were Blue Star (up 3.8%), Titan Inds (up 1.1%) and Mirc Electronics (up 0.6%).The top losers in consumer durables space were Samtel Color (down 3.1%) and Su-Raj Diamonds (down 1.1%)