Wednesday, August 10, 2011
U.S. stocks fell sharply Wednesday, nearly wiping out the previous session's huge rally, as fears about Europe's ongoing debt crisis resurfaced.
The Dow Jones industrial average (INDU) was down 380 points, or 3.4%, in the afternoon. Earlier, the index fell as much as 468 points.
Non-banking finance company Shriram City Union Finance said that it will raise up to Rs750 crore through a non-convertible debenture ( NCD) issue which opens for subscription tomorrow.
The issue will let investors choose between three years and five years’ tenor options and will carry a coupon rate of up to 12.1% per annum.
The basic objective of the issue, which is open for subscription till August 27, is to raise Rs375 crore, while the company has a green-shoe option to retain oversubscriptions of an equal amount.
U.S. stock futures fell Wednesday as markets remain shaky in what has been a volatile week.
The Dow Jones industrial average surged on Tuesday to its biggest gain since 2009 after the Federal Reserve pledged to keep its key interest rate at nearly zero into 2013. The central bank also said it considered other "policy tools" to spur economic growth. Some investors took that to mean that more stimulus may be coming.
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
10/8/2011 506027 Bhoruka Alum VANRAJSINGH KAHOR B 142584 26.35
10/8/2011 506027 Bhoruka Alum VANRAJSINGH KAHOR S 199080 24.74
10/8/2011 533469 Birla Pacific Medspa V P PATEL B 1492847 18.92
10/8/2011 533469 Birla Pacific Medspa EPOCH SYNTHETICS PRIVATE LIMITED B 600000 19.15
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
10-AUG-2011,AANJANEYA,Aanjaneya Lifecare Ltd,PANTHER FINVEST PVT. LTD.,BUY,91669,456.95,-
10-AUG-2011,APIL,Alstom Projects India Lim,ALSTOM HOLDINGS (INDIA) LIMITED,BUY,580700,540.00,-
10-AUG-2011,INVENTURE,Inventure Gro & Sec Ltd,ALFA FISCAL SERVICES PVT LTD,BUY,553262,227.54,-
10-AUG-2011,INVENTURE,Inventure Gro & Sec Ltd,CHANDARANA INTERMEDIARIES BROKERS P. LTD,BUY,402533,228.42,-
After a recent sharp setback in share prices, a broad-based rebound was witnessed on the domestic bourses today, 10 August 2011, as US Federal Reserve's decision on Tuesday, 9 August 2011, to keep US interest rates ultra-low for two more years raised expectations of increase in fund inflows into high-yielding emerging markets such as India. Incidentally, foreign institutional investors (FIIs) pressed heavy sales of Indian shares recently as a US credit rating downgrade caused global risk aversion. The barometer index BSE Sensex today, 10 August 2011, regained the psychological 17,000 mark. The Sensex jumped 272.60 points or 1.62%, off 125.95 points from day's high and up 108.26 points from day's low.
Yellow metal strikes all time record high while silver drops
Precious metals ended mixed on Tuesday, 09 August 2011 at Comex. Gold struck another all time record high while silver prices dropped. Investors continued to flock to bullions, which are seen as much safer and better bets in times of turbulence. Prices rose when bullion market closed ahead of Fed's latest FOMC comments.
Crude sheds almost 17% in August itself
Crude prices ended substantially lower on Tuesday, 09 August 2011 at Nymex. Prices plunged as recent economic conditions continued to question the demand and outlook for crude in the coming months to come. News that Standard & Poor's downgraded US debt last weekend kept stocks volatile even on Tuesday. Prices also slipped along with equities before Fed came out with its latest comments regarding the FOMC meet.
On Tuesday, crude oil futures for light sweet crude for August delivery closed lower by $2.01 (2.4%) at $79.31/barrel. It fell to a low of $75.71 and also rose to a high of $83.05 during intra day trading. Last week, crude shed 9.2%. So far this month, oil has lost 17%. For the year, it has declined 13%.
A recovery in global equities post a recent sell-off may help Indian equities break their six-day declining trend. Markets across the globe rose after the Fed pledged to keep its key interest rate at its record low of nearly zero through the middle of 2013. Trading of S&P CNX Nifty on the Singapore stock exchange indicates a rise of 64.50 points at the opening bell.
Foreign institutional investors (FIIs) sold shares worth a massive Rs 2104.56 crore on Tuesday, 9 August 2011, as per provisional data from the stock exchanges. Domestic institutional investors (DIIs) absorbed most of the heavy selling by foreign funds, with purchases of shares worth Rs 1412.96 crore on that day, as per data from the stock exchanges. FII outflow in August 2011 totaled Rs 4211.50 crore (till 8 August 2011). FIIs had bought shares worth a net Rs 8030.10 crore in July 2011. FII inflow in calendar 2011 totaled Rs 6489 crore (till 8 August 2011).
The global sentiments improved after the Federal Reserve pledged to keep interest rates near zero. So a bounce back is expected for the Indian markets in the opening trade.
Headlines for the day:
ABB to acquire Baldor Electric India
Oberoi, RIL plan property tie-up
Core Projects bags Rs 124 crore order
RIL and BP's $7.2-billion deal has received the government's stamp. Under the agreement, BP will pick up 30% stake in 21 (of 23) oil and gas blocks RIL operates in India. (BS)
Hero MotoCorp unveiled plans to morph itself into an independent and global two-wheeler company, that will involve investments in excess of Rs 45bn over the next five years. (BS)
TCS has joined hands with the Singapore Management University to start a research facility for developing information technology frameworks for the so-called intelligent city model of urban development.(BL)
"One of the common denominators I have found is that expectations rise above that which is expected." -George W Bush.
A wonderful Wednesday lay in store, as the worries of the world take a backseat. After a couple of nerve-wrecking and highly volatile sessions, some semblance of stability was much needed. US stocks survived a mid-session drop to end smartly higher. Fed’s assurance that it will keep rates at record low till at least the middle of 2013 was the main driving force. European markets too rebounded from day’s lows.