Rollover Analysis - Aug 24 2010
Tuesday, August 24, 2010
After opening marginally in the green, markets witnessed a sustained selling pressure through the trading session to close half a percent lower. Sensex lost 98 points to close at 18311 while Nifty finished at 5505, down 38 points. BSE Mid-cap and Small-cap indices lost 0.7% each. Cairn jumped 3% on the back of reports that ONGC, OIL, GAIL may make a counter bid for the stake in the company. Sterlite Industries plunged 4% on the back of reports that environment ministry has rejected stage II forest approval for Vedanta’s bauxite mining project in Orissa and that government is examining penal action against Vedanta. European markets were down by more than a percent while US stock indices futures too were lower by about two third of a percent ahead of existing home sales data.
Tulsi Extrusions’ board approved stock split; the stock closed lower by 0.91%
DQ Entertainment International signed European footwear licensing pact; the stock ended 1.41% higher
Econet Group deployed Subex’s fraud management solution; the stock closed 0.27% higher
Sustained selling hurts the regional equities as global worries stay firmly in place
Asian stocks eased further today, as the weak global economic recovery continued to act as the central theme in the global asset markets. The US economic data has been quite poor off late and with the Eurozone also flashing a number of negative data surprises yesterday, the traders saw little incentive to by anything than the US dollar, which neared its six week high against the Euro in the last session. US stocks closed lower, falling in late slide as amid a flurry of mergers and acquisitions. The Dow fell by 39.21 points or 0.4 percent to 10,174.41.
Gets bids for 2.53 crore shares
Investors put in bids for a total 2.53 crore shares in the initial public offer of Gujarat Pipavav Port by the end of the second day of the bidding for the issue today, 24 August 2010. The IPO was subscribed 23%.
Fears of a slowdown in global growth spooked equity and commodity markets across the globe, with Indian stocks being no exception. Nevertheless, the 50-unit S&P CNX Nifty found support at the 5,500 level after falling below that mark in intraday trade. There was no panic on the domestic bourses as some side counters rallied. But, intraday volatility was high as traders rolled over positions in the derivatives segment from the August 2010 series to the September 2010 series ahead of the expiry of the near-month August 2010 contracts on Thursday, 26 August 2010.
The market may see a negative start on weak global cues. Asian markets were trading lower following an overnight decline in US stocks, which fell on lingering worries about the health of the US economy. Trading of the S&P CNX Nifty futures on the Singapore stock exchange indicated that the Nifty could fall 14 points at the opening bell.
M&M has signed an agreement to acquire a majority stake in beleaguered South Korean auto manufacturer Ssangyong Motor Company (SYMC). (BS)
State-owned ONGC, OIL and Gail may make a joint bid to counter Vedanta Resources’ US$8.48bn offer for majority stake in Cairn India, and have already got US$10bn in loan commitments from international banks for the move. (BS)
The Indian markets ended on a flat note on Monday starting off the week on a sluggish note. The benchmark indices stayed in a narrow trading range and were unable to find any specific direction. However, in the second half, key indices witnessed some upswing after the European markets opened in the green.