1)SELL TATAMOTORS:------DAY TRADERS CAN CONSIDER TO SELL THIS STOCK AROUND AT 755.00 STOPLOSS 768.00 TARGET 740/732.00...
2) BUY GAIL:-----DAY TRADERS CAN CONSIDER TO BUY THIS STOCK AROUND AT 445.00 STOPLOSS 436.50 TARGET 554/558.
Disclaimer: These Recommendations are based on technical analysis and Personal observations. Due care has been taken while preparing these comments, no responsibility will be assumed by the author for the consequences what so ever, resulting out of acting on these recommendations.
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Monday, May 31, 2010
MARKET SEEN HALTING THREE-DAY RISE,GDP DATA EYED
The market is likely to edge lower, ending a three-day winning streak, after Spain's credit rating downgrade and downbeat U.S. economic data reignited concerns about the global economic recovery. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicated that the Nifty could fall 6 points at the opening bell. The fourth quarter March 2010 GDP data to be released by 11:00 IST today, 31 May 2010 will be closely watched.
Auto, steel and cement shares may see action ahead of release of May 2010 sales figures due to be announced this week.
Asian stocks were mixed on Monday after Spain had its credit rating reduced and downbeat U.S. economic data. Key benchmark indices in Hong Kong, South Korea and Taiwan were by up between 0.04% to 2.47%. However, indices in China and Japan were down 0.61% and 0.21% respectively.
US markets declined on Friday, 28 May 2010 as a downgrade by Fitch of Spain's credit rating reignited worries about euro-zone debt issues. The Dow Jones industrial average fell 122.36 points, or 1.19%, to 10,136.61. The Standard & Poor's 500 Index shed 13.65 points, or 1.24%, to 1,089.41 and the Nasdaq Composite Index declined 20.64 points, or 0.91 percent, at 2,257.04.
Global ratings firm Fitch Ratings cut Spain's credit rating by one level to AA+ from AAA, saying the country's debt burden is likely to weigh on growth. Fitch cited an inflexible labor market and a restructuring of regional and local savings banks as hindrances to the pace of adjustment. Spain is struggling to lower debt amid a fiscal crisis that prompted the European Union to forge an almost $1 trillion loan package for its weakest economies.
Spain's downgrade follows similar cuts in ratings earlier this month of Greece and Portugal as those nations attempt to grapple with debt problems by implementing austerity measures.
In economic data, personal spending in the U.S. was unchanged last month as Americans used wages to rebuild savings, according to a Commerce Department report. The Institute for Supply Management-Chicago Inc. said its business barometer fell to 59.7 this month from 63.8 in April.
US markets remain closed on Monday, 31 May 2010, for the Memorial Day holiday.
As per government data released on 28 May 2010, food inflation rose 16.23% in the year through 15 May 2010, lower than previous week's annual rise of 16.49%. The fuel price inflation also slowed to 12.08% from the previous week's 12.33%. The primary articles index was up 15.90%, compared with the previous week's annual reading of 16.19%.
The Reserve Bank of India (RBI) on 26 May 2010, eased rules to boost liquidity at banks to avoid a cash crunch because of payments for corporate advance tax and license fees for third-generation mobile-phone spectrum. As per RBI's circular released on 26 May 2010, banks can borrow as much as 0.5% of their deposits from the central bank under the repurchase agreement till 2 July 2010. In addition, RBI said that as an ad hoc measure, banks can seek a waiver for any shortfall in maintenance of the prescribed 25% statutory liquidity ratio (SLR) while availing the temporary facility.
Besides, the central bank has decided to conduct two rounds of liquidity adjustment facility (LAF) operations till 2 July 2010. Through LAFs, that are conducted at least once a day, banks can avail of funds through the repo window or park surplus cash through the reverse repo route.
China, India, Brazil and Russia are powering ahead, the Organisation for Economic Cooperation and Development (OECD) said on 26 May 2010, revising upwards its growth outlook for all four largest emerging economies. The OECD revised India's GDP growth forecast for 2010 to 8.2% from its earlier estimate of 7.3%. It also raised the growth forecast for 2011 to 8.5% from its earlier estimate of 7.6%. The OECD also said that underlying inflationary pressures are likely to persist given the strong outlook for demand.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
Prime Minister Manmohan Singh late May 2010 said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. The Prime Minister said he expects inflation to moderate to 5-6% by December 2010. Singh expects 8.5% GDP growth in the year ending March 2011 (FY 2011).
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
The India Meteorological Department (IMD) late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The fourth quarter corporate results season is almost over. The combined net profit of a total of 3,044 companies rose 14.90% to Rs 86631 crore on 25% rise in sales to Rs 889227 crore in the quarter ended March 2010 over the quarter ended March 2009.
Stocks extended gains for the third straight session on Friday, 28 May 2010, as world equities rose after China denied reports that it would pare euro-bond holdings. The BSE 30-share Sensex rose 196.66 points or 1.18% to 16,863.06 and the S&P CNX Nifty was up 63.45 points or 1.27% to 5,066.55.
From a recent low of 16,022.48 on Tuesday, 25 May 2010, the Sensex has jumped 840.58 points or 5.24% in the past three trading sessions.
As per the provisional data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 409.68 crore while domestic funds bought equities worth a net Rs 342.63 crore on 28 May 2010.
Auto, steel and cement shares may see action ahead of release of May 2010 sales figures due to be announced this week.
Asian stocks were mixed on Monday after Spain had its credit rating reduced and downbeat U.S. economic data. Key benchmark indices in Hong Kong, South Korea and Taiwan were by up between 0.04% to 2.47%. However, indices in China and Japan were down 0.61% and 0.21% respectively.
US markets declined on Friday, 28 May 2010 as a downgrade by Fitch of Spain's credit rating reignited worries about euro-zone debt issues. The Dow Jones industrial average fell 122.36 points, or 1.19%, to 10,136.61. The Standard & Poor's 500 Index shed 13.65 points, or 1.24%, to 1,089.41 and the Nasdaq Composite Index declined 20.64 points, or 0.91 percent, at 2,257.04.
Global ratings firm Fitch Ratings cut Spain's credit rating by one level to AA+ from AAA, saying the country's debt burden is likely to weigh on growth. Fitch cited an inflexible labor market and a restructuring of regional and local savings banks as hindrances to the pace of adjustment. Spain is struggling to lower debt amid a fiscal crisis that prompted the European Union to forge an almost $1 trillion loan package for its weakest economies.
Spain's downgrade follows similar cuts in ratings earlier this month of Greece and Portugal as those nations attempt to grapple with debt problems by implementing austerity measures.
In economic data, personal spending in the U.S. was unchanged last month as Americans used wages to rebuild savings, according to a Commerce Department report. The Institute for Supply Management-Chicago Inc. said its business barometer fell to 59.7 this month from 63.8 in April.
US markets remain closed on Monday, 31 May 2010, for the Memorial Day holiday.
As per government data released on 28 May 2010, food inflation rose 16.23% in the year through 15 May 2010, lower than previous week's annual rise of 16.49%. The fuel price inflation also slowed to 12.08% from the previous week's 12.33%. The primary articles index was up 15.90%, compared with the previous week's annual reading of 16.19%.
The Reserve Bank of India (RBI) on 26 May 2010, eased rules to boost liquidity at banks to avoid a cash crunch because of payments for corporate advance tax and license fees for third-generation mobile-phone spectrum. As per RBI's circular released on 26 May 2010, banks can borrow as much as 0.5% of their deposits from the central bank under the repurchase agreement till 2 July 2010. In addition, RBI said that as an ad hoc measure, banks can seek a waiver for any shortfall in maintenance of the prescribed 25% statutory liquidity ratio (SLR) while availing the temporary facility.
Besides, the central bank has decided to conduct two rounds of liquidity adjustment facility (LAF) operations till 2 July 2010. Through LAFs, that are conducted at least once a day, banks can avail of funds through the repo window or park surplus cash through the reverse repo route.
China, India, Brazil and Russia are powering ahead, the Organisation for Economic Cooperation and Development (OECD) said on 26 May 2010, revising upwards its growth outlook for all four largest emerging economies. The OECD revised India's GDP growth forecast for 2010 to 8.2% from its earlier estimate of 7.3%. It also raised the growth forecast for 2011 to 8.5% from its earlier estimate of 7.6%. The OECD also said that underlying inflationary pressures are likely to persist given the strong outlook for demand.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
Prime Minister Manmohan Singh late May 2010 said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. The Prime Minister said he expects inflation to moderate to 5-6% by December 2010. Singh expects 8.5% GDP growth in the year ending March 2011 (FY 2011).
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
The India Meteorological Department (IMD) late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The fourth quarter corporate results season is almost over. The combined net profit of a total of 3,044 companies rose 14.90% to Rs 86631 crore on 25% rise in sales to Rs 889227 crore in the quarter ended March 2010 over the quarter ended March 2009.
Stocks extended gains for the third straight session on Friday, 28 May 2010, as world equities rose after China denied reports that it would pare euro-bond holdings. The BSE 30-share Sensex rose 196.66 points or 1.18% to 16,863.06 and the S&P CNX Nifty was up 63.45 points or 1.27% to 5,066.55.
From a recent low of 16,022.48 on Tuesday, 25 May 2010, the Sensex has jumped 840.58 points or 5.24% in the past three trading sessions.
As per the provisional data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 409.68 crore while domestic funds bought equities worth a net Rs 342.63 crore on 28 May 2010.
DAILY NEWS ROUNDUP- MAY 31 2010
M&M makes bid to buy South Korea’s bankrupt Ssangyong Motor Corp. (ET)
Reliance Industries made fifth oil discovery in exploration block CB-ONN-2003/1, located in the Cambay Basin, about 130 km from Ahmedabad. (BS)
Reliance Power to buy three gas-based power plants from group firm Reliance Infrastructure for an enterprise value of Rs10.95bn. (ET)
Amtek Auto has acquired a 26.3% stake in group firm Amtek India from the promoters in a deal worth Rs2.15bn to consolidate business under one flagship company. (ET)
ADAG scales up stake to 15.03% in multiplex chain operator Fame India. (ET)
US Exim Bank may extend credit lines to Spicejet, for its maiden purchase of Boeing aircraft. (ET)
City Union Bank to raise Rs 1,000 cr through QIP route. (BS)
HDIL plans to launch 4-6mn square feet of residential projects in the current financial year. (BS)
Ahluwalia Contracts is looking for acquisition or tie-up with a specialised construction firm to help it become an integrated urban infrastructure company. (BS)
Essar Group plans to buy majority stake in AGC Networks from Avaya of the US for US$$44.5mn. (BS)
Dewan Housing Finance raised Rs5bn through a combination of QIP and preferential allotment of equity shares. (BS)
Uttam Galva Steel plans to commission the Wardha unit by June-end. (BS)
Alstom-Schneider plans to make an open offer to acquire 20% additional stake in Areva T&D India. (BS)
SAIL has hinted at a reduction in prices in line with the downward trend overseas. (DNA)
GTL likely to take 26% stake in Qualcomm's BWA foray. (BS)
Kingfisher Airlines repays 40% of its overdue fuel bill and agreed to give bank guarantee as insurance against default on future jet fuel purchases. (ET)
Magma Fincorp expects regulatory clearance for its general insurance venture with a Germany based company during this year. (ET)
Core sector industries expanded by 5.1% in April, a drop from the healthy 7.2% growth in March. (ET)
Foreign exchange reserves up by US$64mn to US$273bn for the week ending May 21. (BL)
Sugarcane production is likely to increase by 10% to over 300mn tons in the 2010-11 crop year. (BS)
The electrical equipment industry clocks 11.25% growth in 2009-10 compared to this, the industry grew only 2.73% last year. (BS)
DoT asked the finance ministry to give defence forces a waiver of about Rs100bn on spectrum charges. (BS)
Value of pan India broadband spectrum has reached Rs52bn at the end of the fourth day of bidding. (BL)
Reliance Industries made fifth oil discovery in exploration block CB-ONN-2003/1, located in the Cambay Basin, about 130 km from Ahmedabad. (BS)
Reliance Power to buy three gas-based power plants from group firm Reliance Infrastructure for an enterprise value of Rs10.95bn. (ET)
Amtek Auto has acquired a 26.3% stake in group firm Amtek India from the promoters in a deal worth Rs2.15bn to consolidate business under one flagship company. (ET)
ADAG scales up stake to 15.03% in multiplex chain operator Fame India. (ET)
US Exim Bank may extend credit lines to Spicejet, for its maiden purchase of Boeing aircraft. (ET)
City Union Bank to raise Rs 1,000 cr through QIP route. (BS)
HDIL plans to launch 4-6mn square feet of residential projects in the current financial year. (BS)
Ahluwalia Contracts is looking for acquisition or tie-up with a specialised construction firm to help it become an integrated urban infrastructure company. (BS)
Essar Group plans to buy majority stake in AGC Networks from Avaya of the US for US$$44.5mn. (BS)
Dewan Housing Finance raised Rs5bn through a combination of QIP and preferential allotment of equity shares. (BS)
Uttam Galva Steel plans to commission the Wardha unit by June-end. (BS)
Alstom-Schneider plans to make an open offer to acquire 20% additional stake in Areva T&D India. (BS)
SAIL has hinted at a reduction in prices in line with the downward trend overseas. (DNA)
GTL likely to take 26% stake in Qualcomm's BWA foray. (BS)
Kingfisher Airlines repays 40% of its overdue fuel bill and agreed to give bank guarantee as insurance against default on future jet fuel purchases. (ET)
Magma Fincorp expects regulatory clearance for its general insurance venture with a Germany based company during this year. (ET)
Core sector industries expanded by 5.1% in April, a drop from the healthy 7.2% growth in March. (ET)
Foreign exchange reserves up by US$64mn to US$273bn for the week ending May 21. (BL)
Sugarcane production is likely to increase by 10% to over 300mn tons in the 2010-11 crop year. (BS)
The electrical equipment industry clocks 11.25% growth in 2009-10 compared to this, the industry grew only 2.73% last year. (BS)
DoT asked the finance ministry to give defence forces a waiver of about Rs100bn on spectrum charges. (BS)
Value of pan India broadband spectrum has reached Rs52bn at the end of the fourth day of bidding. (BL)
Thursday, May 27, 2010
EXPIRY OF MAY 2010 DERIVATIVES CONTRACTS MAY KEEP MARKET VOLATILE
Volatility may rise as traders rollover positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts today, 27 May 2010. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicated that the Nifty could rise 11 points at the opening bell. The government will unveil data on some wholesale price indices for the year through 15 May 2010 viz. the food price index, the primary articles index and the fuel price index at about 12:00 IST today.
Meanwhile, stocks brokers have advised clients not to sell shares today which they had bought in the cash segment on Wednesday, 26 May 2010, due to clubbing of settlements due to a bank holiday today, 27 May 2010. There is no settlement of trades today due to the bank holiday.
Meanwhile, the Reserve Bank of India (RBI) on Wednesday eased rules to boost liquidity at banks to avoid a cash crunch because of payments for tax and license fees for third-generation mobile-phone spectrum. As per RBI's circular released on 26 May 2010, banks can borrow as much as 0.5% of their deposits from the central bank under the repurchase agreement till 2 July 2010.
In addition, RBI said that as an ad hoc measure, banks can seek a waiver for any shortfall in maintenance of the prescribed 25% statutory liquidity ratio (SLR) while availing the temporary facility. Besides, the central bank has decided to conduct two rounds of liquidity adjustment facility (LAF) operations till 2 July 2010. Through LAFs, that are conducted at least once a day, banks can avail of funds through the repo window or park surplus cash through the reverse repo route.
Asian stocks declined on Thursday on rising concern that Chinese property curbs and Europe's debt crisis will hurt global economic growth. The key benchmark indices in Hong Kong, Japan, China, Indonesia, Singapore and Taiwan were down by between 0.36% to 1.72%. However South Korea's Seoul Composite index rose 0.07%.
US markets declined in volatile trading session on Wednesday on selling pressure in financial and technology stocks. The Dow Jones Industrial Average slipped 69.30 points, or 0.69%, at 9,974.45. The S&P 500 was down 6.08 points, or 0.57%, to 1067.95. The Nasdaq was down 15.07 points, or 0.68%, at 2195.88.
Close home, Tata Steel reported a consolidated loss of Rs 2,009.22 crore in the year ended March 2010 compared with a net profit of Rs 4950.09 crore in the year ended March 2009. Total income decreased 29.82% to Rs 103578.97 crore in the year ended March 2010 over the year ended March 2009.
BPCL, Cairn India, Gujarat State Petronet, Omaxe and Tata Motors, will announce their January-March 2010 quarter results today.
Prime Minister Manmohan Singh on Monday said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. The Prime Minister said he expects inflation to moderate to 5-6% by December 2010. Singh expects 8.5% GDP growth in the year ending March 2011 (FY 2011).
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
China, India, Brazil and Russia are powering ahead, the Organisation for Economic Cooperation and Development (OECD) said on Wednesday, 26 May 2010, revising upwards its growth outlook for all four largest emerging economies. The OECD revised India's GDP growth forecast for 2010 to 8.2% from its earlier estimate of 7.3%. It also raised the growth forecast for 2011 to 8.5% from its earlier estimate of 7.6%. The OECD also said that underlying inflationary pressures are likely to persist given the strong outlook for demand.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The fourth quarter corporate results have been decent. The combined net profit of a total of 2,523 companies rose 17.10% to Rs 68147 crore on 23.90% rise in sales to Rs 670843 crore in the quarter ended March 2010 over the quarter ended March 2009.
The key benchmark indices rebounded on Wednesday, 26 May 2010, tracking recovery in world stocks triggered by bargain hunting after a recent sharp slide. The BSE 30-share Sensex rose 365.36 points or 2.28% to 16,387.84 and the S&P CNX Nifty gained 110.65 points or 2.3% to 4,917.40
As per the provisional data from the stock exchanges, foreign institutional investors (FIIs) offloaded stocks worth a net Rs 166.66 crore and domestic funds bought shares worth a net Rs 64.86 crore on Wednesday, 26 May 2010.
Meanwhile, stocks brokers have advised clients not to sell shares today which they had bought in the cash segment on Wednesday, 26 May 2010, due to clubbing of settlements due to a bank holiday today, 27 May 2010. There is no settlement of trades today due to the bank holiday.
Meanwhile, the Reserve Bank of India (RBI) on Wednesday eased rules to boost liquidity at banks to avoid a cash crunch because of payments for tax and license fees for third-generation mobile-phone spectrum. As per RBI's circular released on 26 May 2010, banks can borrow as much as 0.5% of their deposits from the central bank under the repurchase agreement till 2 July 2010.
In addition, RBI said that as an ad hoc measure, banks can seek a waiver for any shortfall in maintenance of the prescribed 25% statutory liquidity ratio (SLR) while availing the temporary facility. Besides, the central bank has decided to conduct two rounds of liquidity adjustment facility (LAF) operations till 2 July 2010. Through LAFs, that are conducted at least once a day, banks can avail of funds through the repo window or park surplus cash through the reverse repo route.
Asian stocks declined on Thursday on rising concern that Chinese property curbs and Europe's debt crisis will hurt global economic growth. The key benchmark indices in Hong Kong, Japan, China, Indonesia, Singapore and Taiwan were down by between 0.36% to 1.72%. However South Korea's Seoul Composite index rose 0.07%.
US markets declined in volatile trading session on Wednesday on selling pressure in financial and technology stocks. The Dow Jones Industrial Average slipped 69.30 points, or 0.69%, at 9,974.45. The S&P 500 was down 6.08 points, or 0.57%, to 1067.95. The Nasdaq was down 15.07 points, or 0.68%, at 2195.88.
Close home, Tata Steel reported a consolidated loss of Rs 2,009.22 crore in the year ended March 2010 compared with a net profit of Rs 4950.09 crore in the year ended March 2009. Total income decreased 29.82% to Rs 103578.97 crore in the year ended March 2010 over the year ended March 2009.
BPCL, Cairn India, Gujarat State Petronet, Omaxe and Tata Motors, will announce their January-March 2010 quarter results today.
Prime Minister Manmohan Singh on Monday said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. The Prime Minister said he expects inflation to moderate to 5-6% by December 2010. Singh expects 8.5% GDP growth in the year ending March 2011 (FY 2011).
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
China, India, Brazil and Russia are powering ahead, the Organisation for Economic Cooperation and Development (OECD) said on Wednesday, 26 May 2010, revising upwards its growth outlook for all four largest emerging economies. The OECD revised India's GDP growth forecast for 2010 to 8.2% from its earlier estimate of 7.3%. It also raised the growth forecast for 2011 to 8.5% from its earlier estimate of 7.6%. The OECD also said that underlying inflationary pressures are likely to persist given the strong outlook for demand.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The fourth quarter corporate results have been decent. The combined net profit of a total of 2,523 companies rose 17.10% to Rs 68147 crore on 23.90% rise in sales to Rs 670843 crore in the quarter ended March 2010 over the quarter ended March 2009.
The key benchmark indices rebounded on Wednesday, 26 May 2010, tracking recovery in world stocks triggered by bargain hunting after a recent sharp slide. The BSE 30-share Sensex rose 365.36 points or 2.28% to 16,387.84 and the S&P CNX Nifty gained 110.65 points or 2.3% to 4,917.40
As per the provisional data from the stock exchanges, foreign institutional investors (FIIs) offloaded stocks worth a net Rs 166.66 crore and domestic funds bought shares worth a net Rs 64.86 crore on Wednesday, 26 May 2010.
DAILY NEWS ROUNDUP- MAY 27 2010
Reliance Industries-RNRL to present gas supply agreement to government in two weeks. (ET)
Reliance Industries may consider buying minority stake in gas-based power plant of Reliance Power. (ET)
Mahindra & Mahindra buys majority stake in electric car maker Reva. (ET)
Bombay High Court refuses to stay state government order asking Tata Power to supply 360MW to Reliance Infra. (ET)
Reliance Industries has suspended drilling of a well in K-G Basin using a rig hired from Transocean. (BS)
IVRCL bags an order worth Rs5.67bn. (BS)
Shopper Stop is close to buy additional 32% stake in Hyper City for 1.25bn. (BS)
GVK Power and Infra to merge all power units under one sub holding company. (BL)
HPCL plans to set-up Rs300bn refinery on the west coast. (ET)
DLF seeks to revive SEZ in kolkatta. (ET)
Ranbaxy seeks US FDA approval for selling a new drug made in a factory, which is under scrutiny of the US regulator. (ET)
SpiceJet to raise US$75mn for capex. (ET)
Bajaj Electrical plans acquisitions in home appliance space. (ET)
Mukund may sell its Thane land for Rs6bn. (ET)
Telecom companies have raised Rs360bn to pay for 3G spectrum. (ET)
RBI announces measures to overcome short-term liquidity crunch; cuts SLR by 50bps. (ET)
Government announces measures to stream line and speed-up its disinvestment of PSUs. (ET)
Broadband Wireless Access (BWA) auction bids cross Rs100bn on 3rd day. (ET)
Government frees import of radial tyres by removing it from the restricted list. (BL)
Food inflation to come down to 5% till November says planning commission member Abhijit Sen. (ET)
Sugar industry seeks lifting of stock limit on bulk users. (ET)
Reliance Industries may consider buying minority stake in gas-based power plant of Reliance Power. (ET)
Mahindra & Mahindra buys majority stake in electric car maker Reva. (ET)
Bombay High Court refuses to stay state government order asking Tata Power to supply 360MW to Reliance Infra. (ET)
Reliance Industries has suspended drilling of a well in K-G Basin using a rig hired from Transocean. (BS)
IVRCL bags an order worth Rs5.67bn. (BS)
Shopper Stop is close to buy additional 32% stake in Hyper City for 1.25bn. (BS)
GVK Power and Infra to merge all power units under one sub holding company. (BL)
HPCL plans to set-up Rs300bn refinery on the west coast. (ET)
DLF seeks to revive SEZ in kolkatta. (ET)
Ranbaxy seeks US FDA approval for selling a new drug made in a factory, which is under scrutiny of the US regulator. (ET)
SpiceJet to raise US$75mn for capex. (ET)
Bajaj Electrical plans acquisitions in home appliance space. (ET)
Mukund may sell its Thane land for Rs6bn. (ET)
Telecom companies have raised Rs360bn to pay for 3G spectrum. (ET)
RBI announces measures to overcome short-term liquidity crunch; cuts SLR by 50bps. (ET)
Government announces measures to stream line and speed-up its disinvestment of PSUs. (ET)
Broadband Wireless Access (BWA) auction bids cross Rs100bn on 3rd day. (ET)
Government frees import of radial tyres by removing it from the restricted list. (BL)
Food inflation to come down to 5% till November says planning commission member Abhijit Sen. (ET)
Sugar industry seeks lifting of stock limit on bulk users. (ET)
Wednesday, May 26, 2010
MARKET MAY RECOVER ON HIGHER ASIANSTOCKS; BHEL, TATA STEEL Q4 RESULTS EYED.
The market may rebound after hitting 3-1/2 month low on Tuesday, 25 May 2010, tracking recovery in Asian stocks. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicated that the Nifty could gain 33.50 points at the opening bell. But, volatility may remain high as traders roll over positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts on Thursday, 27 May 2010.
Asian stock markets staged a rebound on Wednesday after a sharp cut on Tuesday caused by growing questions about the stability of the European banking system. The key benchmark indices in Hong Kong, Japan, Indonesia, Singapore and Taiwan rose by between 0.19% to 2.45%. But, the key benchmark indices in China and South Korea fell by between 0.32% to 0.65%.
US stocks staged a late rebound on Tuesday to end mostly flat as the focus shifted from European debt woes to buying after shares hit six-month lows. The Dow Jones Industrial Average dropped 22.82 points, or 0.23% to 10,043.75. The Nasdaq Composite Index shed 2.60 points, or 0.12% to 2,210.95. The Standard & Poor's 500 Index gained 0.38 points or 0.04% to end at 1,074.03.
US consumer confidence rose for the third straight month in May 2010 to the highest in more than two years. But, that was countered by a report showing single-family home prices dropping in the first quarter on renewed price pressure as federal aid faded away.
Closer home, the Indian Depository Receipts (IDR) issue of British bank Standard Chartered PLC received a muted initial response. The issue received bids for 1.11 crore shares on the first day of the issue on Tuesday, 25 May 2010 compared to 20.4 crore shares on offer. Standard Chartered has set the price band for the IDR at Rs 100-115 each. Retail investors will be allotted shares at 5% discount to the issue price. The issue closes on 28 May 2010. Ten IDRs will represent one underlying equity share of Standard Chartered PLC.
The British bank on Monday, 24 May 2010, announced issue of 3.6 crore shares to anchor investors at Rs 104 each. The anchor investors include all the top domestic mutual funds.
Prime Minister Manmohan Singh on Monday said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. The Prime Minister said he expects inflation to moderate to 5-6% by December 2010. Singh expects 8.5% GDP growth in the year ending March 2011 (FY 2011).
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%
While the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
Industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
The fourth quarter corporate results have been decent. The combined net profit of a total of 2,432 companies rose 24.1% to Rs 61301 crore on 24.1% rise in sales to Rs 6,04,086 crore in the quarter ended March 2010 over the quarter ended March 2009.
Bharat Heavy Electricals, Tata Steel, Oil India, Asian Hotels, Bank of India, HPCL, Godrej Industries, REI Agro among others will announce their January-March 2010 quarter results today.
The key benchmark indices tumbled to their lowest level in more than three months on Tuesday, 25 May 2010, as world stocks slumped amid tensions in Korea as well as anxiety over global debt levels and sovereign default fears. The BSE 30-share Sensex fell 447.07 points or 2.71% to 16,022.48, its lowest closing level since 10 February 2010.
Sustained selling by foreign funds has weighed on investor sentiment in the past few days. As per provisional figures on NSE, foreign institutional investors (FIIs) sold shares worth Rs 1464.19 crore and domestic funds bought shares worth Rs 406.12 crore on Tuesday, 25 May 2010. FIIs have sold shares worth a net Rs 12367.59 crore so far this month, till 25 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 5617.01 crore so far this month, till 25 May 2010.
Asian stock markets staged a rebound on Wednesday after a sharp cut on Tuesday caused by growing questions about the stability of the European banking system. The key benchmark indices in Hong Kong, Japan, Indonesia, Singapore and Taiwan rose by between 0.19% to 2.45%. But, the key benchmark indices in China and South Korea fell by between 0.32% to 0.65%.
US stocks staged a late rebound on Tuesday to end mostly flat as the focus shifted from European debt woes to buying after shares hit six-month lows. The Dow Jones Industrial Average dropped 22.82 points, or 0.23% to 10,043.75. The Nasdaq Composite Index shed 2.60 points, or 0.12% to 2,210.95. The Standard & Poor's 500 Index gained 0.38 points or 0.04% to end at 1,074.03.
US consumer confidence rose for the third straight month in May 2010 to the highest in more than two years. But, that was countered by a report showing single-family home prices dropping in the first quarter on renewed price pressure as federal aid faded away.
Closer home, the Indian Depository Receipts (IDR) issue of British bank Standard Chartered PLC received a muted initial response. The issue received bids for 1.11 crore shares on the first day of the issue on Tuesday, 25 May 2010 compared to 20.4 crore shares on offer. Standard Chartered has set the price band for the IDR at Rs 100-115 each. Retail investors will be allotted shares at 5% discount to the issue price. The issue closes on 28 May 2010. Ten IDRs will represent one underlying equity share of Standard Chartered PLC.
The British bank on Monday, 24 May 2010, announced issue of 3.6 crore shares to anchor investors at Rs 104 each. The anchor investors include all the top domestic mutual funds.
Prime Minister Manmohan Singh on Monday said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. The Prime Minister said he expects inflation to moderate to 5-6% by December 2010. Singh expects 8.5% GDP growth in the year ending March 2011 (FY 2011).
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%
While the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
Industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
The fourth quarter corporate results have been decent. The combined net profit of a total of 2,432 companies rose 24.1% to Rs 61301 crore on 24.1% rise in sales to Rs 6,04,086 crore in the quarter ended March 2010 over the quarter ended March 2009.
Bharat Heavy Electricals, Tata Steel, Oil India, Asian Hotels, Bank of India, HPCL, Godrej Industries, REI Agro among others will announce their January-March 2010 quarter results today.
The key benchmark indices tumbled to their lowest level in more than three months on Tuesday, 25 May 2010, as world stocks slumped amid tensions in Korea as well as anxiety over global debt levels and sovereign default fears. The BSE 30-share Sensex fell 447.07 points or 2.71% to 16,022.48, its lowest closing level since 10 February 2010.
Sustained selling by foreign funds has weighed on investor sentiment in the past few days. As per provisional figures on NSE, foreign institutional investors (FIIs) sold shares worth Rs 1464.19 crore and domestic funds bought shares worth Rs 406.12 crore on Tuesday, 25 May 2010. FIIs have sold shares worth a net Rs 12367.59 crore so far this month, till 25 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 5617.01 crore so far this month, till 25 May 2010.
STOCKS SET TO START ON A FLAT-TO-POSITIVE NOTE.
Headlines for the day:
Aditya Birla Group revs up power plans
Mahindra & Mahindra may buy strategic stake in Reva
R-Infra to roll out 11 projects this year
Events for the day:
Major corporate action
Ex-date for dividend of Infosys and Indian Overseas Bank
Results: Indian Hotels, Godrej Industries, Bharat Heavy Electricals
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares fell to their lowest close in nearly nine months on Tuesday, with banks hit as interbank lending rates rose and worries persisted that austerity measures to be taken in European economies will hurt growth.
The US stocks staged a furious late-day rally on Tuesday to push the S&P 500 into the positive territory as the focus shifted from European debt woes to buying after shares hit six-month lows.
In today's trade, the Asian markets were trading on a positive note, except Kospi index that underperformed slightly amid ongoing tensions on the Korean Peninsula. At the time of writing this report, SGX Nifty was trading 34 points higher.
Indian Indices
It was a tough session yesterday on the Dalal Street with weak global cues weighing heavily on the markets. News of Spain's central bank taking control of a beleaguered small savings outfit served as a reminder of the financial uncertainty in Europe. Also, rising geopolitical tensions between North and South Korea added to the negative sentiment.
The US indices pared most of their earlier losses yesterday as the investors were expecting that the market may find support near current levels. But it is difficult to determine and judge the current situation across the globe.
The Asian markets rebound in their opening session, after a late-session reversal of losses on Wall Street helped confidence. Being in line with the Asian peers, the Indian markets are set to have a flat-to-positive start.
As we have witnessed volatility and heavy volumes in trade in the past two days, the same is expected to continue in today's session ahead of the F&O expiry.
The earnings of Indian Hotels Company, Godrej Industries, Gujarat Mineral Development Corporation, Everest Kanto Cylinder, Hindustan Petroleum Corporation, REI Agro, Mphasis, Tata Iron and Steel Company and Bharat Heavy Electricals are later to be announced today - the stocks will be closely eyed.
Commodity cues
In the commodity space, the crude oil prices slipped, with the Nymex light crude oil for the June series down by $1.46 per barrel, whereas in the metals space, the Comex Gold for the June series rose by $4 and the Comex Silver for the June series was down by $0.22 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 25, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs881.80 crore, whereas the domestic mutual funds, on May 21, 2010, were the net buyers of the stocks to the tune of Rs287.60 crore.
Aditya Birla Group revs up power plans
Mahindra & Mahindra may buy strategic stake in Reva
R-Infra to roll out 11 projects this year
Events for the day:
Major corporate action
Ex-date for dividend of Infosys and Indian Overseas Bank
Results: Indian Hotels, Godrej Industries, Bharat Heavy Electricals
For more events, log on to Sharekhan.com
Pre-market report
Global signals
The European shares fell to their lowest close in nearly nine months on Tuesday, with banks hit as interbank lending rates rose and worries persisted that austerity measures to be taken in European economies will hurt growth.
The US stocks staged a furious late-day rally on Tuesday to push the S&P 500 into the positive territory as the focus shifted from European debt woes to buying after shares hit six-month lows.
In today's trade, the Asian markets were trading on a positive note, except Kospi index that underperformed slightly amid ongoing tensions on the Korean Peninsula. At the time of writing this report, SGX Nifty was trading 34 points higher.
Indian Indices
It was a tough session yesterday on the Dalal Street with weak global cues weighing heavily on the markets. News of Spain's central bank taking control of a beleaguered small savings outfit served as a reminder of the financial uncertainty in Europe. Also, rising geopolitical tensions between North and South Korea added to the negative sentiment.
The US indices pared most of their earlier losses yesterday as the investors were expecting that the market may find support near current levels. But it is difficult to determine and judge the current situation across the globe.
The Asian markets rebound in their opening session, after a late-session reversal of losses on Wall Street helped confidence. Being in line with the Asian peers, the Indian markets are set to have a flat-to-positive start.
As we have witnessed volatility and heavy volumes in trade in the past two days, the same is expected to continue in today's session ahead of the F&O expiry.
The earnings of Indian Hotels Company, Godrej Industries, Gujarat Mineral Development Corporation, Everest Kanto Cylinder, Hindustan Petroleum Corporation, REI Agro, Mphasis, Tata Iron and Steel Company and Bharat Heavy Electricals are later to be announced today - the stocks will be closely eyed.
Commodity cues
In the commodity space, the crude oil prices slipped, with the Nymex light crude oil for the June series down by $1.46 per barrel, whereas in the metals space, the Comex Gold for the June series rose by $4 and the Comex Silver for the June series was down by $0.22 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On May 25, 2010, the FIIs were the net sellers of the Indian stocks to the tune of Rs881.80 crore, whereas the domestic mutual funds, on May 21, 2010, were the net buyers of the stocks to the tune of Rs287.60 crore.
Tuesday, May 25, 2010
INTRADAY CALL: MAY 25 2010
1) SELL SBI::--Day traders can consider to sell this stock around @2218 sl@2250 target@2175/2160.
2)BUY BPCL:-- Day traders can consider to buy this stock around @548 sl@543 target@565/568.
3)SELL INFOSYSTECH:--Day traders can consider to sell this stock around@2580 sl@2625 target@2504.
Disclaimer: These Recommendations are based on technical analysis and Personal observations. Due care has been taken while preparing these comments, no responsibility will be assumed by the author for the consequences what so ever, resulting out of acting on these recommendations.
2)BUY BPCL:-- Day traders can consider to buy this stock around @548 sl@543 target@565/568.
3)SELL INFOSYSTECH:--Day traders can consider to sell this stock around@2580 sl@2625 target@2504.
Disclaimer: These Recommendations are based on technical analysis and Personal observations. Due care has been taken while preparing these comments, no responsibility will be assumed by the author for the consequences what so ever, resulting out of acting on these recommendations.
DAILY NEWS ROUNDUP- MAY 25 2010
Hindalco Industries plans to raise about Rs75bn of debt under the project finance route to achieve financial closure for Mahan Aluminium, its new factory project. (BS)
Standard Chartered Plc has raised around Rs3.7bn by roping in six anchor investors for its Indian Depository Receipt (IDR) issue. (BS)
Bharti Airtel raised Rs88bn from a six-year syndicated loan to pay for third-generation (3G) spectrum. (BS)
Bajaj Auto will continue to pursue its broad plans with the Austrian bike manufacturer KTM Power Sports AG, including a gradual increase of its stake in the performance bike making company. (BS)
BHEL has signed a memorandum of understanding with National Oil Well Varco, a US-based oil and gas drilling equipment firm, to build 35 AC (alternating current) deep land drilling rigs in phases. (BS)
Novo Nordisk has sued Lupin to prevent it from launching the low priced version of its patented diabetes medicine sold under the brand Prandimet in US. (ET)
Essar Shipping Ports & Logistics Ltd's 30mtpa bulk terminal at Hazira commenced commercial operations with the berthing of the first supramax vessel - M.V. Malavika having a capacity of 53,000 dead weight tonnage (DWT). (BS)
HCL Infosystems is understood to have pipped TCS to clinch an e-governance contract from the Madhya Pradesh government. (BS)
TCS may be hit by UK's £6.25bn cost-cut for 2010-11, a possible £2bn cuts in IT, suppliers and property. (BS)
Biocon has announced a long-term supply agreement of fidaxomicin, an active pharmaceutical ingredient (API), for US-based biopharma company Optimer Pharmaceuticals. (ET)
Tata Chemicals Ltd plans to raise Rs4bn through a preferential allotment of shares to Tata Sons to part finance the capacity expansion of its fertiliser plant in Babrala in Uttar Pradesh. (BL)
Madras Cements Ltd plans to invest Rs6.3bn to expand its cement production capacity. (BL)
BOC India plans to invest Rs15bn to set up separation plants across India by 2012. (ET)
Reliance MediaWorks along with two other ADAG group firms, acquired 0.33% stake in Fame India, taking their combined holding in the multiplex chain to 14.84%. (FE)
Companies setting up industrial parks will be able to avail of the tax benefits available to the scheme for another year as the finance ministry has extended the 10-year tax holiday by an year. (ET)
The Union petroleum minister have said that a final decision on price hike would be taken by the empowered group of ministers at its meeting to be held in Delhi on June 7. (ET)
The auction for broadband wireless access (BWA) spectrum on the first day itself saw bids up by 34% over the base price. (BS)
Fresh trouble between the defence ministry and the Department of Telecommunications (DoT) over spectrum could delay the launch of third generation (3G) telephony services in the country by March next year. (BS)
India’s three leading GSM operators challenged the recommendations of the telecom regulator on second generation (2G) pricing before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). (BS)
The commerce and industry ministry is likely to propose 100% foreign direct investment (FDI) in multi-brand retail. (ET)
Standard Chartered Plc has raised around Rs3.7bn by roping in six anchor investors for its Indian Depository Receipt (IDR) issue. (BS)
Bharti Airtel raised Rs88bn from a six-year syndicated loan to pay for third-generation (3G) spectrum. (BS)
Bajaj Auto will continue to pursue its broad plans with the Austrian bike manufacturer KTM Power Sports AG, including a gradual increase of its stake in the performance bike making company. (BS)
BHEL has signed a memorandum of understanding with National Oil Well Varco, a US-based oil and gas drilling equipment firm, to build 35 AC (alternating current) deep land drilling rigs in phases. (BS)
Novo Nordisk has sued Lupin to prevent it from launching the low priced version of its patented diabetes medicine sold under the brand Prandimet in US. (ET)
Essar Shipping Ports & Logistics Ltd's 30mtpa bulk terminal at Hazira commenced commercial operations with the berthing of the first supramax vessel - M.V. Malavika having a capacity of 53,000 dead weight tonnage (DWT). (BS)
HCL Infosystems is understood to have pipped TCS to clinch an e-governance contract from the Madhya Pradesh government. (BS)
TCS may be hit by UK's £6.25bn cost-cut for 2010-11, a possible £2bn cuts in IT, suppliers and property. (BS)
Biocon has announced a long-term supply agreement of fidaxomicin, an active pharmaceutical ingredient (API), for US-based biopharma company Optimer Pharmaceuticals. (ET)
Tata Chemicals Ltd plans to raise Rs4bn through a preferential allotment of shares to Tata Sons to part finance the capacity expansion of its fertiliser plant in Babrala in Uttar Pradesh. (BL)
Madras Cements Ltd plans to invest Rs6.3bn to expand its cement production capacity. (BL)
BOC India plans to invest Rs15bn to set up separation plants across India by 2012. (ET)
Reliance MediaWorks along with two other ADAG group firms, acquired 0.33% stake in Fame India, taking their combined holding in the multiplex chain to 14.84%. (FE)
Companies setting up industrial parks will be able to avail of the tax benefits available to the scheme for another year as the finance ministry has extended the 10-year tax holiday by an year. (ET)
The Union petroleum minister have said that a final decision on price hike would be taken by the empowered group of ministers at its meeting to be held in Delhi on June 7. (ET)
The auction for broadband wireless access (BWA) spectrum on the first day itself saw bids up by 34% over the base price. (BS)
Fresh trouble between the defence ministry and the Department of Telecommunications (DoT) over spectrum could delay the launch of third generation (3G) telephony services in the country by March next year. (BS)
India’s three leading GSM operators challenged the recommendations of the telecom regulator on second generation (2G) pricing before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). (BS)
The commerce and industry ministry is likely to propose 100% foreign direct investment (FDI) in multi-brand retail. (ET)
MARKET MAY EDGE LOWER ON WEAK ASIAN STOCK; HUL'S Q4 RESULT EYED
Weak Asian stocks may pull the domestic bourses lower after Monday (24 May 2010)'s mild gains. Trading in S&P CNX Nifty index futures on the Singapore stock exchange indicated that the Nifty could fall 46 points at the opening bell. Volatility may remain high as traders roll over positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts on Thursday, 27 May 2010.
British bank Standard Chartered Plc's Indian Depository Receipts (IDRs) issue opens for bidding today. Standard Chartered has set the price band for its proposed issue of 240 million IDRs at Rs 100-115 each. Retail investors will be allotted shares at 5% discount to the issue price. The issue closes on 28 May 2010. Ten IDRs will represent one underlying equity share of Standard Chartered Plc.
Asian stocks fell sharply on Tuesday, extending an equity sell-off that sent Wall Street lower overnight. The key benchmark indices in China, Hong Kong, Japan, Singapore and Taiwan fell by between 1.29% to 2.37%.
South Korea's Kospi index fell 3.17% with talk of war looming between North and South Korea. North Korean leader Kim Jong II has ordered the country's military to get ready for war, according to news reports.
US stocks slid on Monday as fresh signs of Europe's banking problems emerged. Concerns about Europe's banking system continued to weigh on markets, after the Bank of Spain took over a small savings bank, CajaSur, over the weekend, increasing anxiety among investors worried about debt problems spreading throughout financial markets. The Dow Jones Industrial Average dropped 126.82 points, or 1.24% to 10,066.57. The Standard & Poor's 500 Index slipped 14.04 points, or 1.29% to 1,073.65. The Nasdaq Composite Index fell 15.49 points, or 0.69% to 2,213.55.
Economic data showed sales of previously owned US homes rose to a five-month high in April as buyers rushed to close on contracts before a federal home buyer tax credit expired, although housing inventory also increased.
Back home, Prime Minister Manmohan Singh on Monday said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. In a news conference to mark the completion of one year of the ruling Congress led United Progressive Alliance government at the Centre, the prime minister said he expects inflation to moderate to 5-6% by December 2010. Singh expects 8.5% GDP growth in the year ending March 2011 (FY 2011).
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%
While the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
Industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
The fourth quarter corporate results have been decent. The combined net profit of a total of 2,368 companies rose 22.6% to Rs 59,857 crore on 24.3% rise in sales to Rs 5,92.242 crore in the quarter ended March 2010 over the quarter ended March 2009.
Hindustan Unilever (HUL), Tata Tea, NHPC, Mercator Lines, Jai Corp, Power Grid Corporation of India, Aban Offshore among others will announce their January-March 2010 quarter results today.
The key benchmark indices settled marginally higher, giving away strong intraday gains on Monday, 24 May 2010, as European stocks and US index futures fell. The BSE 30-share Sensex rose 23.94 points or 0.15% to 16,469.55 on Monday.
As per provisional figures on NSE, foreign institutional investors (FIIs) sold shares worth Rs 995.32 crore and domestic funds bought shares worth Rs 1107.42 crore on Monday, 24 May 2010. FIIs sold shares worth a net Rs 10,903.41 crore so far this month, till 24 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 5210.89 crore so far this month, till 24 May 2010.
British bank Standard Chartered Plc's Indian Depository Receipts (IDRs) issue opens for bidding today. Standard Chartered has set the price band for its proposed issue of 240 million IDRs at Rs 100-115 each. Retail investors will be allotted shares at 5% discount to the issue price. The issue closes on 28 May 2010. Ten IDRs will represent one underlying equity share of Standard Chartered Plc.
Asian stocks fell sharply on Tuesday, extending an equity sell-off that sent Wall Street lower overnight. The key benchmark indices in China, Hong Kong, Japan, Singapore and Taiwan fell by between 1.29% to 2.37%.
South Korea's Kospi index fell 3.17% with talk of war looming between North and South Korea. North Korean leader Kim Jong II has ordered the country's military to get ready for war, according to news reports.
US stocks slid on Monday as fresh signs of Europe's banking problems emerged. Concerns about Europe's banking system continued to weigh on markets, after the Bank of Spain took over a small savings bank, CajaSur, over the weekend, increasing anxiety among investors worried about debt problems spreading throughout financial markets. The Dow Jones Industrial Average dropped 126.82 points, or 1.24% to 10,066.57. The Standard & Poor's 500 Index slipped 14.04 points, or 1.29% to 1,073.65. The Nasdaq Composite Index fell 15.49 points, or 0.69% to 2,213.55.
Economic data showed sales of previously owned US homes rose to a five-month high in April as buyers rushed to close on contracts before a federal home buyer tax credit expired, although housing inventory also increased.
Back home, Prime Minister Manmohan Singh on Monday said inflation is showing signs of moderating and the government expects to achieve a medium term target of 10% GDP growth annually. In a news conference to mark the completion of one year of the ruling Congress led United Progressive Alliance government at the Centre, the prime minister said he expects inflation to moderate to 5-6% by December 2010. Singh expects 8.5% GDP growth in the year ending March 2011 (FY 2011).
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%
While the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
Industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
The fourth quarter corporate results have been decent. The combined net profit of a total of 2,368 companies rose 22.6% to Rs 59,857 crore on 24.3% rise in sales to Rs 5,92.242 crore in the quarter ended March 2010 over the quarter ended March 2009.
Hindustan Unilever (HUL), Tata Tea, NHPC, Mercator Lines, Jai Corp, Power Grid Corporation of India, Aban Offshore among others will announce their January-March 2010 quarter results today.
The key benchmark indices settled marginally higher, giving away strong intraday gains on Monday, 24 May 2010, as European stocks and US index futures fell. The BSE 30-share Sensex rose 23.94 points or 0.15% to 16,469.55 on Monday.
As per provisional figures on NSE, foreign institutional investors (FIIs) sold shares worth Rs 995.32 crore and domestic funds bought shares worth Rs 1107.42 crore on Monday, 24 May 2010. FIIs sold shares worth a net Rs 10,903.41 crore so far this month, till 24 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 5210.89 crore so far this month, till 24 May 2010.
Monday, May 24, 2010
MARKET SURGES AS AMBANI BROTHERS END NON-COMPETE PACT
The key benchmark indices surged in early trade as index heavyweight Reliance Industries (RIL) and Anil Dhirubhai Ambani group (ADAG) shares surged after the feuding Ambani brothers - Mukesh and Anil ended non-compete pact. Metal stocks gained as metal prices rose on the London Metal Exchange on Friday, 21 May 2010.
The market breadth was strong. All the sectoral indices on BSE rose. The S&P CNX Nifty was below the psychological 5,000 mark after crossing that level at the onset of the trading session. The BSE 30-share Sensex was up 216.02 points or 1.31%, off close to 60 points from the day's high and up close to 165 points from the day's low.
Volatility may remain high in near term as traders roll over positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts on Thursday, 27 May 2010.
Most Asian stocks rose on Monday tracking gains on Wall Street on Friday, 21 May 2010. However, investors remain cautious about fiscal and debt problems in the euro zone. The key benchmark indices in China, Indonesia, Hong Kong, Singapore and Taiwan rose by between 0.27% to 3.14%. But, the key benchmark indices in Japan and South Korea fell by between 0.04% to 0.28%.
Trading in US index futures indicated that the Dow could fall 26 points at the opening bell on Monday, 24 May 2010.
US stocks snapped a three-day losing streak on Friday as investors bought beaten-down shares including banks on bets the financial regulation bill won't be as onerous as some had feared. Bank shares rose a day after the US Senate approved a sweeping overhaul of regulation of Wall Street firms, capping months of wrangling over the biggest changes since the 1930s. The Dow Jones Industrial Average gained 125.38 points, or 1.25% to 10,193.39. The Standard & Poor's 500 Index jumped 16.10 points, or 1.50% to 1,087.69. The Nasdaq Composite Index rose 25.03 points, or 1.14% to 2,229.04.
Back home, India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%
While the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
Industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
The fourth quarter corporate results have been decent. The combined net profit of a total of 2,301 companies rose 23.8% to Rs 58.802 crore on 24.3% rise in sales to Rs 5,82,064 crore in the quarter ended March 2010 over the quarter ended March 2009.
At 9:20 IST, the BSE 30-share Sensex was up 216.02 points or 1.31% to 16,661.63. The Sensex gained 279.30 points at the day's high of 16,724.91 in early trade. The index rose 49 points at the day's low of 16,494.61 in early trade.
The S&P CNX Nifty was up 67.60 points or 1.37% to 4,998.75. It hit a high of 5,020.65.
The BSE Mid-Cap index rose 1.88% and the BSE Small-Cap index rose 2.04%.
The market breadth, indicating the overall health of the market was strong. On BSE, 1218 shares declined as compared to 178 shares that advanced. A total of 17 shares were unchanged.
From the 30 share Sensex pack, 23 stocks rose and rest fell.
Index heavyweight Reliance Industries (RIL) jumped 3.93% after the two Ambani brothers Mukesh and Anil took a step towards reconciliation in their long-running feud on Sunday, ending non-compete agreements. Both groups said they aim to reach a conclusion soon for a gas supply agreement between Mukesh Ambani's RIL and younger brother Anil's Reliance Natural Resources (RNRL).
The scrapping of the non-compete agreement between the two groups means RIL can enter financial services, telecom and infrastructure sectors whereas the ADAG can enter petroleum and petrochemical businesses. Reliance Industries and the ADAG said they agreed to cancel all existing non-compete pacts the groups had signed in 2006 and entered into a new non-compete pact only for gas-based power generation.
The settlement comes two weeks after the Supreme Court ruled in Mukesh Ambani's favour in a bitter public dispute over gas pricing. The court on 7 May 2010 ordered the brothers to renegotiate within six weeks a private natural gas supply contract between Reliance Industries and Reliance Natural Resources. The new contract must abide by a government price of $4.2 per million metric British thermal unit (mmBtu), compared with $2.34 per mmBtu the brothers agreed on in 2005 for a 17-year period.
Shares of Anil Dhirubhai Ambani group (ADAG) firms soared boosted by the truce between the two Ambani brothers. Reliance Infrastructure (up 7.44%), Reliance Communications (up 4.95%), Reliance Power (up 10.57%), Reliance Natural Resources (up 20%) and Reliance Capital (up 6.03%) jumped.
Tata Power Company fell 1.54% ahead of its Q4 result today.
India's largest FMCG maker by sales Hindustan Unilever fell 0.37% ahead of its Q4 result tomorrow, 25 May 2010.
Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 2.91% on Friday, 21 May 2010. Sterlite Industries, Jindal Steel & Power, Jindal Saw, Hindalco Industries, JSW Steel, Tata Steel, Steel Authority of India, National Aluminum Company, Hindustan Zinc, rose by between 1.55% to 3.21%.
The market breadth was strong. All the sectoral indices on BSE rose. The S&P CNX Nifty was below the psychological 5,000 mark after crossing that level at the onset of the trading session. The BSE 30-share Sensex was up 216.02 points or 1.31%, off close to 60 points from the day's high and up close to 165 points from the day's low.
Volatility may remain high in near term as traders roll over positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts on Thursday, 27 May 2010.
Most Asian stocks rose on Monday tracking gains on Wall Street on Friday, 21 May 2010. However, investors remain cautious about fiscal and debt problems in the euro zone. The key benchmark indices in China, Indonesia, Hong Kong, Singapore and Taiwan rose by between 0.27% to 3.14%. But, the key benchmark indices in Japan and South Korea fell by between 0.04% to 0.28%.
Trading in US index futures indicated that the Dow could fall 26 points at the opening bell on Monday, 24 May 2010.
US stocks snapped a three-day losing streak on Friday as investors bought beaten-down shares including banks on bets the financial regulation bill won't be as onerous as some had feared. Bank shares rose a day after the US Senate approved a sweeping overhaul of regulation of Wall Street firms, capping months of wrangling over the biggest changes since the 1930s. The Dow Jones Industrial Average gained 125.38 points, or 1.25% to 10,193.39. The Standard & Poor's 500 Index jumped 16.10 points, or 1.50% to 1,087.69. The Nasdaq Composite Index rose 25.03 points, or 1.14% to 2,229.04.
Back home, India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency last week. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%
While the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
Industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
The fourth quarter corporate results have been decent. The combined net profit of a total of 2,301 companies rose 23.8% to Rs 58.802 crore on 24.3% rise in sales to Rs 5,82,064 crore in the quarter ended March 2010 over the quarter ended March 2009.
At 9:20 IST, the BSE 30-share Sensex was up 216.02 points or 1.31% to 16,661.63. The Sensex gained 279.30 points at the day's high of 16,724.91 in early trade. The index rose 49 points at the day's low of 16,494.61 in early trade.
The S&P CNX Nifty was up 67.60 points or 1.37% to 4,998.75. It hit a high of 5,020.65.
The BSE Mid-Cap index rose 1.88% and the BSE Small-Cap index rose 2.04%.
The market breadth, indicating the overall health of the market was strong. On BSE, 1218 shares declined as compared to 178 shares that advanced. A total of 17 shares were unchanged.
From the 30 share Sensex pack, 23 stocks rose and rest fell.
Index heavyweight Reliance Industries (RIL) jumped 3.93% after the two Ambani brothers Mukesh and Anil took a step towards reconciliation in their long-running feud on Sunday, ending non-compete agreements. Both groups said they aim to reach a conclusion soon for a gas supply agreement between Mukesh Ambani's RIL and younger brother Anil's Reliance Natural Resources (RNRL).
The scrapping of the non-compete agreement between the two groups means RIL can enter financial services, telecom and infrastructure sectors whereas the ADAG can enter petroleum and petrochemical businesses. Reliance Industries and the ADAG said they agreed to cancel all existing non-compete pacts the groups had signed in 2006 and entered into a new non-compete pact only for gas-based power generation.
The settlement comes two weeks after the Supreme Court ruled in Mukesh Ambani's favour in a bitter public dispute over gas pricing. The court on 7 May 2010 ordered the brothers to renegotiate within six weeks a private natural gas supply contract between Reliance Industries and Reliance Natural Resources. The new contract must abide by a government price of $4.2 per million metric British thermal unit (mmBtu), compared with $2.34 per mmBtu the brothers agreed on in 2005 for a 17-year period.
Shares of Anil Dhirubhai Ambani group (ADAG) firms soared boosted by the truce between the two Ambani brothers. Reliance Infrastructure (up 7.44%), Reliance Communications (up 4.95%), Reliance Power (up 10.57%), Reliance Natural Resources (up 20%) and Reliance Capital (up 6.03%) jumped.
Tata Power Company fell 1.54% ahead of its Q4 result today.
India's largest FMCG maker by sales Hindustan Unilever fell 0.37% ahead of its Q4 result tomorrow, 25 May 2010.
Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 2.91% on Friday, 21 May 2010. Sterlite Industries, Jindal Steel & Power, Jindal Saw, Hindalco Industries, JSW Steel, Tata Steel, Steel Authority of India, National Aluminum Company, Hindustan Zinc, rose by between 1.55% to 3.21%.
DAILY NEWS ROUNDUP- MAY 24 2010
Mukesh and Anil Ambani have cancelled all existing non-compete agreements between their groups, drawn-up during the Reliance re-organization in 2006. (BL)
Piramal Healthcare sells its domestic formulations business to US-based Abbott in a deal worth US$3.72bn. (BS)
DLF is in talks with Government of Singapore Investment Corporation, Abu Dhabi Investment Authority and Kuwait Investment Authority to sell majority stake in luxury hotel chain Aman Resorts. (BS)
Infosys is looking to bid for US-based Logica for ~Rs185bn. (BS)
Bank of Rajasthan shareholders to gain one share of ICICI Bank for every 4.72 shares of Bank of Rajasthan. (BS)
Jindal Power is looking to set up a hydro-power project in Nepal at an estimated cost of Rs15bn as part of its multi-billion dollar programme in the energy space. (BS)
GMR Infrastructure unit GMR Energy plans to raise Rs102.75bn of debt funding to help achieve financial closure for three of its power projects. (ET)
The Hinduja group acquired the private banking arm of Belgian high street bank KBC for € 1.35bn. (ET)
The government is understood to have asked BSNL and MTNL to pay Rs167.5bn for the 3G spectrum in their possession by month-end. (ET)
Motherson Sumi is in talks with Unilever for contract manufacturing of water purifiers for the company’s international business. (BS)
Fortis Healthcare has raised around US$100mn through the issuance of FCCBs. (ET)
Ranbaxy receives approval of Canadian health regulator to market the generic version of cholesterol lowering medicine Lipitor. (ET)
Top officials of Maruti Suzuki and Volkswagen India are understood to have met to explore synergies in production and vehicle design. (ET)
Gujarat State Petroleum Corporation plans to start its upstream overseas arm in the next two to three years to look after its global oil and gas explorations. (BS)
Srei Infrastructure may hive off its road projects business into a separate company and induct a financial investor at a later stage. (ET)
Bharat Forge is looking at increasing its manufacturing footprint in the US market. (BS)
Shree Cement is expanding its capacity by setting up a 1mtpa clinker unit at Ras and 1mtpa cement grinding unit in Jaipur. (BL)
Godrej Consumer Products has entered into an agreement to acquire the entire stake of the promoters in Laboratoria Cuenca, Consell SA, Issue Uruguay and Issue Brazil, which is collectively referred to as the Issue Group. (TOI)
Carborundum Universal is all set to pump in Rs500-750mn for setting up a brown fused alumina plant in Kutch district of Gujarat. (BS)
JK Lakshmi Cement is holding talks to acquire an Egyptian cement firm for around Rs8bn. (ET)
Standard Chartered Plc has fixed the price band for its proposed issue of 240mn Indian Depository Receipts at between Rs100 and Rs115. (BL)
GSM telecom user base added just over 11mn new users in April, lower than the 13.9mn added in March. (ET)
Maharashtra Government plans to rope in foreign investment, creating a joint venture with the private sector or on lease to provide a new leash of life to closed spinning mills and those under liquidation. (BS)
Foreign exchange reserves declined US$2.9bn to US$273bn for the week ending May 14. (BL)
Banks likely to fix base rate at 8.5-9.5%. (BL)
Banks agree to give clean loans to telecom companies to acquire bandwidth for 3G mobile telecom licences. (ET)
Piramal Healthcare sells its domestic formulations business to US-based Abbott in a deal worth US$3.72bn. (BS)
DLF is in talks with Government of Singapore Investment Corporation, Abu Dhabi Investment Authority and Kuwait Investment Authority to sell majority stake in luxury hotel chain Aman Resorts. (BS)
Infosys is looking to bid for US-based Logica for ~Rs185bn. (BS)
Bank of Rajasthan shareholders to gain one share of ICICI Bank for every 4.72 shares of Bank of Rajasthan. (BS)
Jindal Power is looking to set up a hydro-power project in Nepal at an estimated cost of Rs15bn as part of its multi-billion dollar programme in the energy space. (BS)
GMR Infrastructure unit GMR Energy plans to raise Rs102.75bn of debt funding to help achieve financial closure for three of its power projects. (ET)
The Hinduja group acquired the private banking arm of Belgian high street bank KBC for € 1.35bn. (ET)
The government is understood to have asked BSNL and MTNL to pay Rs167.5bn for the 3G spectrum in their possession by month-end. (ET)
Motherson Sumi is in talks with Unilever for contract manufacturing of water purifiers for the company’s international business. (BS)
Fortis Healthcare has raised around US$100mn through the issuance of FCCBs. (ET)
Ranbaxy receives approval of Canadian health regulator to market the generic version of cholesterol lowering medicine Lipitor. (ET)
Top officials of Maruti Suzuki and Volkswagen India are understood to have met to explore synergies in production and vehicle design. (ET)
Gujarat State Petroleum Corporation plans to start its upstream overseas arm in the next two to three years to look after its global oil and gas explorations. (BS)
Srei Infrastructure may hive off its road projects business into a separate company and induct a financial investor at a later stage. (ET)
Bharat Forge is looking at increasing its manufacturing footprint in the US market. (BS)
Shree Cement is expanding its capacity by setting up a 1mtpa clinker unit at Ras and 1mtpa cement grinding unit in Jaipur. (BL)
Godrej Consumer Products has entered into an agreement to acquire the entire stake of the promoters in Laboratoria Cuenca, Consell SA, Issue Uruguay and Issue Brazil, which is collectively referred to as the Issue Group. (TOI)
Carborundum Universal is all set to pump in Rs500-750mn for setting up a brown fused alumina plant in Kutch district of Gujarat. (BS)
JK Lakshmi Cement is holding talks to acquire an Egyptian cement firm for around Rs8bn. (ET)
Standard Chartered Plc has fixed the price band for its proposed issue of 240mn Indian Depository Receipts at between Rs100 and Rs115. (BL)
GSM telecom user base added just over 11mn new users in April, lower than the 13.9mn added in March. (ET)
Maharashtra Government plans to rope in foreign investment, creating a joint venture with the private sector or on lease to provide a new leash of life to closed spinning mills and those under liquidation. (BS)
Foreign exchange reserves declined US$2.9bn to US$273bn for the week ending May 14. (BL)
Banks likely to fix base rate at 8.5-9.5%. (BL)
Banks agree to give clean loans to telecom companies to acquire bandwidth for 3G mobile telecom licences. (ET)
Sunday, May 23, 2010
INDIA'S FOOD INFLATION EDGES HIGHER, FUEL PRICES STEADY
Food prices in the country inched up in the week ended May 8 while prices of non-food articles declined and that of fuel items remained steady, data released by the Government showed. Inflation in the Food Articles group rose to 16.49% at the end of the first week in May as against 16.44% in the week ended May 1, the Commerce & Industry Ministry said. It stood at 8.28% in the corresponding period last year. The WPI for the Food group declined to 293.9 from 294.0. Inflation in the Primary Articles group softened to 16.19% in early May compared with the previous week's annual reading of 16.76%. Inflation in the group stood at 6.67% during the week ended May 9, 2009. The WPI for this group declined by 0.1% to 299.2. Non-food Articles' inflation fell sharply to 18.68% in the week ended May 8 from 21.24% in the preceding week. Inflation in this group stood at 3.3% in the year-ago period. The WPI for this group declined by 0.4% to 282.1. India's Fuel price inflation remained steady at 12.33% in the week under review while the same was at -6.17% during the corresponding week of the previous year. The WPI for this group remained unchanged at its previous week’s level of 365.3.
GERMANY SPOOKES MARKETS WITH BAN ON NAKED SHORT SELLING.
World markets went through another tumultuous week, with risk aversion still pretty elevated amid lingering concerns that the euro-zone debt crisis will dent a global economic recovery. So, stocks were pummeled and commodities were pounded while the dollar and bonds were snapped up as investors continued to prefer safety and quality. But, the euro rebounded from a fresh four-month low against the US dollar by Friday amid talk of some intervention by the European Central Bank (ECB). A couple of weak economic reports on the US economy also led to the improvement in the euro-zone shared currency at the expense of the greenback. The euro also benefited from a flurry of short covering. At the same time, fear psychosis climbed with the CBOE volatility index or VIX spiking to a 14-month high of 46.37. The Wall Street's key fear gauge has soared from a three-year low hit four weeks ago as investors are increasingly turning skeptical about the efforts to rein in the sovereign-debt troubles in the 16-member bloc. Even at Thursday's highs, the VIX is still way below the peak level of almost 90 hit in October 2008 - after Lehman Brothers collapsed.
The European Union (EU) and the International Monetary Fund (IMF) have hammered out a nearly US$1 trillion bailout package for the debt-plagued euro-zone nations, but that has failed to assuage investor concerns so far. The ECB's announcement that it had made an initial purchase of €16.5bn (US$20.4bn) in government bonds as part of a programme to soothe markets had limited impact on markets. Sentiment across the globe took another big hit this week after Germany’s market regulator BaFin banned investors from naked short selling in 10 banks and insurers, as well as naked credit-default swaps (CDS) on euro-area government bonds. The regulator didn’t provide details on how it will enforce the ban or whether it would extend to trades outside Germany. Most CDS trading takes place in New York and London.
Germany will act alone where necessary, German Chancellor Angela Merkel said, referring to the short-selling ban by BaFin. "All of this will stay in effect until another solution has been found at the European level," she told the German parliament. The Netherlands and Finland said they have no plans to implement similar measures. France too doesn’t plan to follow Germany in banning the use of contracts to speculate on European sovereign debt, Finance Minister Christine Lagarde said. France has banned "naked short sales" on equity markets since September 2008.
Germany will lobby governments to introduce a tax on financial markets, and for ratings companies to come under European supervision so governments regain primacy over markets, Merkel said. The euro is at risk and Europe may be facing its greatest challenge since the founding of the EU, she said. The consequences are incalculable if leaders fail to act, Merkel said. Faster budget cuts, tougher penalties for euro-zone members that flout the rules and the orderly insolvency of euro-region states are among the measures Germany will put to EU partners on May 21, she said. "The lack of rules and limits can make behavior in financial markets driven purely by the profit motive destructive and lead to an existential threat to financial stability in Europe and even the world," Merkel told lawmakers in Berlin. "The market alone won’t correct these mistakes."
Separately, EU finance ministers gave their blessing to proposed regulations that would curtail the activities of hedge funds and private-equity firms. US Treasury Secretary Timothy F. Geithner will visit Germany and the UK next week to discuss the debt crisis in that region. EU President Herman Van Rompuy will host a meeting of finance ministers in Brussels on Friday to discuss reforms to economic governance. German Finance Minister Wolfgang Schaeuble will present a nine-point plan aimed at avoiding a repeat of the crisis touched off by Greece’s budget deficit. Germany is likely to approve its share of a US$1 trillion safety net for troubled euro-zone states and European finance ministers are meeting to discuss changes to budget rules to prevent another Greek-style debt crisis.
The European Union (EU) and the International Monetary Fund (IMF) have hammered out a nearly US$1 trillion bailout package for the debt-plagued euro-zone nations, but that has failed to assuage investor concerns so far. The ECB's announcement that it had made an initial purchase of €16.5bn (US$20.4bn) in government bonds as part of a programme to soothe markets had limited impact on markets. Sentiment across the globe took another big hit this week after Germany’s market regulator BaFin banned investors from naked short selling in 10 banks and insurers, as well as naked credit-default swaps (CDS) on euro-area government bonds. The regulator didn’t provide details on how it will enforce the ban or whether it would extend to trades outside Germany. Most CDS trading takes place in New York and London.
Germany will act alone where necessary, German Chancellor Angela Merkel said, referring to the short-selling ban by BaFin. "All of this will stay in effect until another solution has been found at the European level," she told the German parliament. The Netherlands and Finland said they have no plans to implement similar measures. France too doesn’t plan to follow Germany in banning the use of contracts to speculate on European sovereign debt, Finance Minister Christine Lagarde said. France has banned "naked short sales" on equity markets since September 2008.
Germany will lobby governments to introduce a tax on financial markets, and for ratings companies to come under European supervision so governments regain primacy over markets, Merkel said. The euro is at risk and Europe may be facing its greatest challenge since the founding of the EU, she said. The consequences are incalculable if leaders fail to act, Merkel said. Faster budget cuts, tougher penalties for euro-zone members that flout the rules and the orderly insolvency of euro-region states are among the measures Germany will put to EU partners on May 21, she said. "The lack of rules and limits can make behavior in financial markets driven purely by the profit motive destructive and lead to an existential threat to financial stability in Europe and even the world," Merkel told lawmakers in Berlin. "The market alone won’t correct these mistakes."
Separately, EU finance ministers gave their blessing to proposed regulations that would curtail the activities of hedge funds and private-equity firms. US Treasury Secretary Timothy F. Geithner will visit Germany and the UK next week to discuss the debt crisis in that region. EU President Herman Van Rompuy will host a meeting of finance ministers in Brussels on Friday to discuss reforms to economic governance. German Finance Minister Wolfgang Schaeuble will present a nine-point plan aimed at avoiding a repeat of the crisis touched off by Greece’s budget deficit. Germany is likely to approve its share of a US$1 trillion safety net for troubled euro-zone states and European finance ministers are meeting to discuss changes to budget rules to prevent another Greek-style debt crisis.
Friday, May 21, 2010
OIL AND GAS STOCKS HOG LIMELIGHT
The key benchmark indices rebounded on Thursday after heavy losses in the past two trading sessions as oil major ONGC jumped. Shares of state-run natural gas producers ONGC and Oil India spurted after the government on Wednesday more than doubled the price of natural gas produced from nomination blocks. PSU OMCs also edged higher.
Telecom stocks were mixed after the 3G spectrum auctions ended on Wednesday, 19 May 2010. The market breadth was weak in contrast to a strong breadth in early trade. The BSE 30-share Sensex rose 111.19 points or 0.68%, up close to 100 points from the day's low and off about equal points from the day's high. Banking, FMCG and metal stocks rose. European stocks and US index futures declined in volatile trade.
Intraday volatility was high as traders rolled over positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts next Thursday (27 May 2010). The market came off the higher level after a firm opening. The market recovered from lower level later. The market once again came off the higher level in mid-morning trade. The key benchmark indices regained strength in early afternoon trade.
The Sensex hit a fresh intraday high in afternoon trade as European stocks rose at the onset of the trading session. The market came sharply off the higher level later. The market once again came off the lower level in late trade.
NSE's volatility index India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, declined 3.12% to 31.04, a day after surging 20.72% on Wednesday, 19 May 2010. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
Foreign funds are offloading Indian stocks. As per provisional data, foreign institutional investors (FIIs) today, 20 May 2010, sold shares worth a net Rs 657.23 crore. Domestic funds bought stocks worth a net Rs 721.15 crore.
FIIs have sold shares worth a net Rs 8367.76 crore this month, till 20 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 3286.54 crore this month, till 20 May 2010.
Worries over fiscal problems in southern Europe triggered outflow from China and India dedicated funds during the week ended 12 May 2010. As a result, Asia funds, excluding Japan, saw only $27 million inflows, their worst week in well over a year, as per data from global fund tracker EPFR Global.
On the macro front, India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency on Thursday. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%
While the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
European shares fell Thursday afternoon, with sentiment souring through the session and turning particularly negative towards miners and automakers. The key benchmark indices in Germany, UK and France were down by 0.76% to 2.13%.
Asian stocks fell on Thursday as fiscal worries in euro zone continued to mar investors' appetite for risk. Investors remain jittery after Germany's decision late on Tuesday, 18 May 2010, to ban naked short-selling on sovereign debt and some financial stocks. The key benchmark indices in China, Indonesia, Singapore Japan, Hong Kong, South Korea and Taiwan fell by between 0.17% to 1.83%.
Japan's economy grew less than forecast in the first quarter. Gross domestic product rose 4.9% in the three months to March 2010 at an annualized rate, up from 4.2% in October to December 2009 period.
US index futures slumped after moving between positive and negative zone. Trading in US index futures indicated that the Dow could fall 69 points at the opening bell on Thursday, 20 May 2010.
US stocks fell on Wednesday as Germany's unilateral action to ban specific trades on some stocks and bonds sparked a fresh wave of uncertainty and risk aversion among anxious investors. Germany on Tuesday banned investors who don't own or haven't borrowed certain stocks, bonds and derivatives from selling them, in a move that appeared to catch its partners in the European Union off guard. The Dow Jones Industrial Average slid 66.58 points, or 0.63% to 10,444.37. The Standard & Poor's 500 Index fell 5.75 points, or 0.51% to 1,115.05. The Nasdaq Composite Index lost 18.89 points, or 0.82% to 2,298.37.
Meanwhile, the latest data showed that US Consumer Price Index fell for the first time in a year last month and the closely watched core inflation rate eked out its smallest annual gain since 1966, further supporting the Federal Reserve's vow to keep interest rates low for some time.
Back home, the fourth quarter corporate results have been decent. The combined net profit of a total of 2,150 companies rose 23.5% to Rs 55,951 crore on 24.7% rise in sales to Rs 5,65,822 crore in the quarter ended March 2010 over the quarter ended March 2009.
The latest economic data showed industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
India's exports rose an annual 36% to $16.9 billion in April 2010 as demand picked up for gems and textiles while imports rose an annual 43% to $27.3 billion buoyed by industrial recovery, stronger domestic growth and rising oil prices.
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
The BSE 30-share Sensex rose 111.19 points or 0.68% to 16,519.68. The Sensex rose 209.31 points at the day's high of 16,617.80 in afternoon trade. The index rose 10.61 points at the day's low of 16,419.10 in early trade.
The S&P CNX Nifty rose 27.95 points or 0.57% to 4,947.60. Nifty hit a high of 4,980.25.
The BSE Mid-Cap index fell 0.05%. The BSE Small-Cap index fell 0.55%. Both the indices underperformed the Sensex.
Most sectoral indices on BSE rose. BSE PSU index (up 1.87%), Oil & Gas index (up 1.79%), Healthcare index (up 1.14%), banking sector index Bankex (up 0.93%), and FMCG index (up 0.84%), outperformed the Sensex. BSE Power index (up 0.23%), Capital Goods index (up 0.19%), Metal index (up 0.08%), IT index (up 0.05%), Consumer Durables index (down 0.17%), Auto index (down 0.53%), and Realty index (down 2.04%), underperformed the Sensex.
The market breadth, indicating the overall health of the market was weak in contrast to a strong breadth in early trade. On BSE, 1,146 shares advanced as compared to 1,683 shares that declined. A total of 100 shares were unchanged.
From the 30 share Sensex pack, 18 stocks rose and the rest fell.
BSE clocked turnover of Rs 3840 crore, lower than Rs 4694.74 on Wednesday, 19 May 2010.
State run natural gas producers surged after the government on Wednesday more than doubled the price of natural gas produced by state firms from nomination blocks. ONGC jumped 8.72% and Oil India gained 9.09%. The base price of gas supplied by state firms will rise to $4.2 per million British Thermal Units, the same as the rate approved for Reliance Industries, bringing about near-uniformity in the cost of the fuel in India.
Shares of three state-run oil marketing companies -- BPCL, HPCL and Indian Oil Corporation rose by 2.37% to 3.22% on expectations that the government may deregulate oil prices after it raised the price of natural gas produced by state firms from nomination blocks.
Index heavyweight Reliance Industries (RIL) rose 0.16% to Rs 999.90. The stock was volatile. It hit a high of Rs 1013.75 and low of Rs 993.40. The company said today in view of the threat from cyclone Laila, the company has exercised caution and suspended all drilling operations in the East coast. All production operations on the FPSO (Floating Production Storage and Offloading) vessel operating in the KG D6 block were also suspended, RIL said.
The RIL stock had surged early this month, boosted by after a favourable ruling in the Supreme Court on gas dispute with Anil Ambani controlled Reliance Natural Resources (RNRL). The Supreme Court ordered the two firms to renegotiate a deal based on government policy on gas utilization.
Earlier, the Bombay High Court, in its order dated 15 June 2009 had directed that RNRL will get assured supply of 28 mmscmd of gas from RIL's Krishna-Godavari basin for 17 years at $2.34 per million British thermal units (mBtu). The gas price was 44.28% lower than the price fixed by the government for gas sale from the RIL block in the KG basin at $4.2 mBtu.
Grasim Industries was down 2.45% to Rs 2513.50, but off the day's low of Rs 2455. Consolidated net profit rose 15% to Rs 654 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours today.
FMCG stocks rose on bargain hunting. Tata Tea, ITC, Hindustan Unilever rose by between 0.18% to 1.56%.
Bank stocks rose on bargain hunting. Private sector lender ICICI Bank rose 1.01%, reversing early fall. The stock had slumped 7.24% on Wednesday amid concerns the bank is paying a high price for its proposed deal to buy small rival bank Bank of Rajasthan.
The board of directors of ICICI Bank and Bank of Rajasthan on Tuesday gave an in-principle nod for the merger of the later with the former. The swap ratio for the merger is set at 25 shares of ICICI Bank for every 118 shares held in Bank of Rajasthan. Bank of Rajasthan shares hit 10% upper circuit today after hitting 20% upper circuit on Wednesday boosted by the favourable swap ratio for the merger.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) rose 2.19%. SBI expects its advances to grow by 22-23% in the current financial year. SBI's net profit declined 31.93% to Rs 1866.60 crore in Q4 March 2010 over Q4 March 2009. The bank announced the result on Friday, 14 May 2010.
But, India's second largest private sector bank by net profit HDFC Bank fell 0.93%, with the stock falling for the fourth straight day.
India's largest mortgage lender by total income Housing Development Finance Corporation rose 1.53%, with the stock rebounding after last four days' losses. The company's board on 3 May 2010 approved a 5-for-1 stock-split.
HDFC has reportedly extended concessional home loan scheme till 30 June 2010. Under the scheme, HDFC would offer a fixed interest rate of 8.25% up to March 2011, 9% for the next one year and a floating rate thereafter. The scheme was scheduled to end on 30 April 2010.
Auto shares extended recent fall. India's top truck maker by sales Tata Motors fell 0.34%, with the stock reversing early gains and extending last four days' losses. The company's global vehicles sales rose 53% to 77,732 units in April 2010 over April 2009. Global sales include that of Jaguar and Land Rover brands, which rose 61% to 17,909 vehicles. The figures were announced on 14 May 2010.
India's largest small car maker by sales Maruti Suzuki India fell 1.6%. Maruti's total sales rose almost 30% to 93,058 units in April 2010 over April 2009. Domestic sales rose 23.4% to 80,034 units. The data was unveiled on 1 May 2010.
India's largest tractor maker by sales Mahindra & Mahindra fell 0.88%, extending nearly 6% losses on Wednesday.
Car sales in India rose an annual 39.5% to 143,976 cars in April 2010 over April 2009, data from the Society of Indian Automobile Manufacturers (SIAM) showed. Sales of trucks and buses, a barometer of economic activity, rose 64.5 % to 49,086 units in April 2010 over April 2009, SIAM said.
But, Bajaj Auto rose 0.31%. The stock had hit a record high of Rs 2219.90 in intraday trade on Friday, 14 May 2010, boosted by strong Q4 results. Net profit surged 306% to Rs 528.65 crore in Q4 March 2010 over Q4 March 2009. The company announced result during market hours on Wednesday, 12 May 2010.
India's largest motorbike maker by sales Hero Honda Motors rose 0.49%, with the stock gaining for the second straight day.
Realty stocks fell on profit taking. DLF, Indiabulls Real Estate, Unitech, HDIL and Parsvnath Developers, Omaxe fell by between 0.11% to 4.79%.
Some metal stocks rose on bargain hunting after a recent sharp fall. Jindal Steel & Power, Sterlite Industries, Jindal Saw, Hindalco Industries, National Aluminum Company rose by between 0.16% to 2.35%.
Telecom stocks were mixed after the 3G spectrum auctions ended on Wednesday, 19 May 2010, raking in Rs 67,719 crore for the government. Bharti Airtel and Idea Cellular rose by between 0. 23% to 0.95 %. But, Reliance Communications fell 0.73%.
Bharti Airtel and Reliance Communications, each won 13 of the 22 telecom zones on offer while other major operators Vodafone Essar, Idea Cellular and Tata won a total of 9, 11 and 9 circles, respectively. The 3G auction will be followed in two days by an auction for wireless broadband spectrum, for which 11 firms are vying for two national licences for private operators, with one slot reserved for state telecoms firms.
IT stocks rose as the rupee dropped to its lowest level in three-and-a-half months against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
India's third largest software services exporter Wipro rose 0.41%. India's largest software services exporter TCS rose 1.24%, with the stock rebounding from last four days' losses triggered by reports the UK government will review outsourcing contracts, including agreements signed with TCS, in a bid to cut government spending. But, India's second largest software services exporter Infosys fell 0.1%.
India's largest thermal power producer by sales NTPC rose 1.76% after Power Minister Sushil Kumar Shinde on Thursday said power tariff is likely to go up by about 1 rupee per kilo watt hour following a hike in gas price. The stock had fallen recently after the company reported lower Q4 net profit. Net profit declined 4.52% to Rs 2017.65 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.
India's largest drug maker by sales Ranbaxy Laboratories rose 0.47% on bargain hunting after the stock lost 5.87% on Wednesday. The company said on Wednesday its European unit was recalling select batches of three products to add safety warnings under the regulations there. The company said there was no product quality concerns for the drugs, but did not name the products. Ranbaxy said the drugs were being recalled from Britain, Denmark and Ireland.
India's largest engineering and construction firm by sales Larsen & Toubro rose 0.45%, reversing initial losses. At the time of announcing Q4 March 2010 results on Monday, 17 May 2010, L&T's management gave a guidance of 20% growth in revenue and 25% growth in new orders in the current financial year.
L&T's order inflow jumped 90% to Rs 23843 crore in Q4 March 2010 over Q4 March 2009. The company's order book as at 31 March 2010 stood at Rs 1,00,239 crore, which is 2.7 times its sales of Rs 36,996 crore for the year ended March 2010. Net profit rose 44% to Rs 1438.10 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.
Among other capital goods stocks, Bharat Heavy Electricals, SKF India and Crompton Greaves rose by between 0.28% to 1.72%.
State-run hydro power generation firm SJVN settled at Rs 25.05 on BSE, 3.65% discount to the initial public offer price of Rs 26.
SJVN clocked highest volume of 7.18 crore shares on BSE. Cals Refineries (3.79 crore shares), Birla Power Solutions (2.73 crore shares), Unitech (82.14 lakh shares) and Supertex Industries (58.17 lakh shares) were the other volume toppers in that order.
SJVN clocked highest turnover of Rs 180.03 crore on BSE. Tata Steel (Rs 155.35 crore), Piramal HealthCare (Rs 146.13 crore),State Bank of India (Rs 103.75 crore) and Tata Motors (Rs 100.42 crore) were the other turnover toppers in that order.
Telecom stocks were mixed after the 3G spectrum auctions ended on Wednesday, 19 May 2010. The market breadth was weak in contrast to a strong breadth in early trade. The BSE 30-share Sensex rose 111.19 points or 0.68%, up close to 100 points from the day's low and off about equal points from the day's high. Banking, FMCG and metal stocks rose. European stocks and US index futures declined in volatile trade.
Intraday volatility was high as traders rolled over positions in the derivatives segment from May 2010 series to June 2010 series ahead of the expiry of the near-month May 2010 contracts next Thursday (27 May 2010). The market came off the higher level after a firm opening. The market recovered from lower level later. The market once again came off the higher level in mid-morning trade. The key benchmark indices regained strength in early afternoon trade.
The Sensex hit a fresh intraday high in afternoon trade as European stocks rose at the onset of the trading session. The market came sharply off the higher level later. The market once again came off the lower level in late trade.
NSE's volatility index India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, declined 3.12% to 31.04, a day after surging 20.72% on Wednesday, 19 May 2010. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
Foreign funds are offloading Indian stocks. As per provisional data, foreign institutional investors (FIIs) today, 20 May 2010, sold shares worth a net Rs 657.23 crore. Domestic funds bought stocks worth a net Rs 721.15 crore.
FIIs have sold shares worth a net Rs 8367.76 crore this month, till 20 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 3286.54 crore this month, till 20 May 2010.
Worries over fiscal problems in southern Europe triggered outflow from China and India dedicated funds during the week ended 12 May 2010. As a result, Asia funds, excluding Japan, saw only $27 million inflows, their worst week in well over a year, as per data from global fund tracker EPFR Global.
On the macro front, India's monsoon rains are on track to hit the country's southern coast on 30 May 2010, and the Laila cyclone in the Bay of Bengal would not derail the vital June-September rainfall, a weather office spokesman told a news agency on Thursday. The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The latest data showed the food price inflation picked up for the second consecutive week in early May 2010. The food price index rose 16.49% in the year to 8 May 2010, a tad higher than the prior week's annual reading of 16.44% as fruit and vegetables prices climbed on the back of a heat wave. The fuel price index was steady at 12.33%, while the primary articles index was up 16.19% versus 16.76%
While the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
European shares fell Thursday afternoon, with sentiment souring through the session and turning particularly negative towards miners and automakers. The key benchmark indices in Germany, UK and France were down by 0.76% to 2.13%.
Asian stocks fell on Thursday as fiscal worries in euro zone continued to mar investors' appetite for risk. Investors remain jittery after Germany's decision late on Tuesday, 18 May 2010, to ban naked short-selling on sovereign debt and some financial stocks. The key benchmark indices in China, Indonesia, Singapore Japan, Hong Kong, South Korea and Taiwan fell by between 0.17% to 1.83%.
Japan's economy grew less than forecast in the first quarter. Gross domestic product rose 4.9% in the three months to March 2010 at an annualized rate, up from 4.2% in October to December 2009 period.
US index futures slumped after moving between positive and negative zone. Trading in US index futures indicated that the Dow could fall 69 points at the opening bell on Thursday, 20 May 2010.
US stocks fell on Wednesday as Germany's unilateral action to ban specific trades on some stocks and bonds sparked a fresh wave of uncertainty and risk aversion among anxious investors. Germany on Tuesday banned investors who don't own or haven't borrowed certain stocks, bonds and derivatives from selling them, in a move that appeared to catch its partners in the European Union off guard. The Dow Jones Industrial Average slid 66.58 points, or 0.63% to 10,444.37. The Standard & Poor's 500 Index fell 5.75 points, or 0.51% to 1,115.05. The Nasdaq Composite Index lost 18.89 points, or 0.82% to 2,298.37.
Meanwhile, the latest data showed that US Consumer Price Index fell for the first time in a year last month and the closely watched core inflation rate eked out its smallest annual gain since 1966, further supporting the Federal Reserve's vow to keep interest rates low for some time.
Back home, the fourth quarter corporate results have been decent. The combined net profit of a total of 2,150 companies rose 23.5% to Rs 55,951 crore on 24.7% rise in sales to Rs 5,65,822 crore in the quarter ended March 2010 over the quarter ended March 2009.
The latest economic data showed industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
India's exports rose an annual 36% to $16.9 billion in April 2010 as demand picked up for gems and textiles while imports rose an annual 43% to $27.3 billion buoyed by industrial recovery, stronger domestic growth and rising oil prices.
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 2010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
The BSE 30-share Sensex rose 111.19 points or 0.68% to 16,519.68. The Sensex rose 209.31 points at the day's high of 16,617.80 in afternoon trade. The index rose 10.61 points at the day's low of 16,419.10 in early trade.
The S&P CNX Nifty rose 27.95 points or 0.57% to 4,947.60. Nifty hit a high of 4,980.25.
The BSE Mid-Cap index fell 0.05%. The BSE Small-Cap index fell 0.55%. Both the indices underperformed the Sensex.
Most sectoral indices on BSE rose. BSE PSU index (up 1.87%), Oil & Gas index (up 1.79%), Healthcare index (up 1.14%), banking sector index Bankex (up 0.93%), and FMCG index (up 0.84%), outperformed the Sensex. BSE Power index (up 0.23%), Capital Goods index (up 0.19%), Metal index (up 0.08%), IT index (up 0.05%), Consumer Durables index (down 0.17%), Auto index (down 0.53%), and Realty index (down 2.04%), underperformed the Sensex.
The market breadth, indicating the overall health of the market was weak in contrast to a strong breadth in early trade. On BSE, 1,146 shares advanced as compared to 1,683 shares that declined. A total of 100 shares were unchanged.
From the 30 share Sensex pack, 18 stocks rose and the rest fell.
BSE clocked turnover of Rs 3840 crore, lower than Rs 4694.74 on Wednesday, 19 May 2010.
State run natural gas producers surged after the government on Wednesday more than doubled the price of natural gas produced by state firms from nomination blocks. ONGC jumped 8.72% and Oil India gained 9.09%. The base price of gas supplied by state firms will rise to $4.2 per million British Thermal Units, the same as the rate approved for Reliance Industries, bringing about near-uniformity in the cost of the fuel in India.
Shares of three state-run oil marketing companies -- BPCL, HPCL and Indian Oil Corporation rose by 2.37% to 3.22% on expectations that the government may deregulate oil prices after it raised the price of natural gas produced by state firms from nomination blocks.
Index heavyweight Reliance Industries (RIL) rose 0.16% to Rs 999.90. The stock was volatile. It hit a high of Rs 1013.75 and low of Rs 993.40. The company said today in view of the threat from cyclone Laila, the company has exercised caution and suspended all drilling operations in the East coast. All production operations on the FPSO (Floating Production Storage and Offloading) vessel operating in the KG D6 block were also suspended, RIL said.
The RIL stock had surged early this month, boosted by after a favourable ruling in the Supreme Court on gas dispute with Anil Ambani controlled Reliance Natural Resources (RNRL). The Supreme Court ordered the two firms to renegotiate a deal based on government policy on gas utilization.
Earlier, the Bombay High Court, in its order dated 15 June 2009 had directed that RNRL will get assured supply of 28 mmscmd of gas from RIL's Krishna-Godavari basin for 17 years at $2.34 per million British thermal units (mBtu). The gas price was 44.28% lower than the price fixed by the government for gas sale from the RIL block in the KG basin at $4.2 mBtu.
Grasim Industries was down 2.45% to Rs 2513.50, but off the day's low of Rs 2455. Consolidated net profit rose 15% to Rs 654 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours today.
FMCG stocks rose on bargain hunting. Tata Tea, ITC, Hindustan Unilever rose by between 0.18% to 1.56%.
Bank stocks rose on bargain hunting. Private sector lender ICICI Bank rose 1.01%, reversing early fall. The stock had slumped 7.24% on Wednesday amid concerns the bank is paying a high price for its proposed deal to buy small rival bank Bank of Rajasthan.
The board of directors of ICICI Bank and Bank of Rajasthan on Tuesday gave an in-principle nod for the merger of the later with the former. The swap ratio for the merger is set at 25 shares of ICICI Bank for every 118 shares held in Bank of Rajasthan. Bank of Rajasthan shares hit 10% upper circuit today after hitting 20% upper circuit on Wednesday boosted by the favourable swap ratio for the merger.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) rose 2.19%. SBI expects its advances to grow by 22-23% in the current financial year. SBI's net profit declined 31.93% to Rs 1866.60 crore in Q4 March 2010 over Q4 March 2009. The bank announced the result on Friday, 14 May 2010.
But, India's second largest private sector bank by net profit HDFC Bank fell 0.93%, with the stock falling for the fourth straight day.
India's largest mortgage lender by total income Housing Development Finance Corporation rose 1.53%, with the stock rebounding after last four days' losses. The company's board on 3 May 2010 approved a 5-for-1 stock-split.
HDFC has reportedly extended concessional home loan scheme till 30 June 2010. Under the scheme, HDFC would offer a fixed interest rate of 8.25% up to March 2011, 9% for the next one year and a floating rate thereafter. The scheme was scheduled to end on 30 April 2010.
Auto shares extended recent fall. India's top truck maker by sales Tata Motors fell 0.34%, with the stock reversing early gains and extending last four days' losses. The company's global vehicles sales rose 53% to 77,732 units in April 2010 over April 2009. Global sales include that of Jaguar and Land Rover brands, which rose 61% to 17,909 vehicles. The figures were announced on 14 May 2010.
India's largest small car maker by sales Maruti Suzuki India fell 1.6%. Maruti's total sales rose almost 30% to 93,058 units in April 2010 over April 2009. Domestic sales rose 23.4% to 80,034 units. The data was unveiled on 1 May 2010.
India's largest tractor maker by sales Mahindra & Mahindra fell 0.88%, extending nearly 6% losses on Wednesday.
Car sales in India rose an annual 39.5% to 143,976 cars in April 2010 over April 2009, data from the Society of Indian Automobile Manufacturers (SIAM) showed. Sales of trucks and buses, a barometer of economic activity, rose 64.5 % to 49,086 units in April 2010 over April 2009, SIAM said.
But, Bajaj Auto rose 0.31%. The stock had hit a record high of Rs 2219.90 in intraday trade on Friday, 14 May 2010, boosted by strong Q4 results. Net profit surged 306% to Rs 528.65 crore in Q4 March 2010 over Q4 March 2009. The company announced result during market hours on Wednesday, 12 May 2010.
India's largest motorbike maker by sales Hero Honda Motors rose 0.49%, with the stock gaining for the second straight day.
Realty stocks fell on profit taking. DLF, Indiabulls Real Estate, Unitech, HDIL and Parsvnath Developers, Omaxe fell by between 0.11% to 4.79%.
Some metal stocks rose on bargain hunting after a recent sharp fall. Jindal Steel & Power, Sterlite Industries, Jindal Saw, Hindalco Industries, National Aluminum Company rose by between 0.16% to 2.35%.
Telecom stocks were mixed after the 3G spectrum auctions ended on Wednesday, 19 May 2010, raking in Rs 67,719 crore for the government. Bharti Airtel and Idea Cellular rose by between 0. 23% to 0.95 %. But, Reliance Communications fell 0.73%.
Bharti Airtel and Reliance Communications, each won 13 of the 22 telecom zones on offer while other major operators Vodafone Essar, Idea Cellular and Tata won a total of 9, 11 and 9 circles, respectively. The 3G auction will be followed in two days by an auction for wireless broadband spectrum, for which 11 firms are vying for two national licences for private operators, with one slot reserved for state telecoms firms.
IT stocks rose as the rupee dropped to its lowest level in three-and-a-half months against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
India's third largest software services exporter Wipro rose 0.41%. India's largest software services exporter TCS rose 1.24%, with the stock rebounding from last four days' losses triggered by reports the UK government will review outsourcing contracts, including agreements signed with TCS, in a bid to cut government spending. But, India's second largest software services exporter Infosys fell 0.1%.
India's largest thermal power producer by sales NTPC rose 1.76% after Power Minister Sushil Kumar Shinde on Thursday said power tariff is likely to go up by about 1 rupee per kilo watt hour following a hike in gas price. The stock had fallen recently after the company reported lower Q4 net profit. Net profit declined 4.52% to Rs 2017.65 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.
India's largest drug maker by sales Ranbaxy Laboratories rose 0.47% on bargain hunting after the stock lost 5.87% on Wednesday. The company said on Wednesday its European unit was recalling select batches of three products to add safety warnings under the regulations there. The company said there was no product quality concerns for the drugs, but did not name the products. Ranbaxy said the drugs were being recalled from Britain, Denmark and Ireland.
India's largest engineering and construction firm by sales Larsen & Toubro rose 0.45%, reversing initial losses. At the time of announcing Q4 March 2010 results on Monday, 17 May 2010, L&T's management gave a guidance of 20% growth in revenue and 25% growth in new orders in the current financial year.
L&T's order inflow jumped 90% to Rs 23843 crore in Q4 March 2010 over Q4 March 2009. The company's order book as at 31 March 2010 stood at Rs 1,00,239 crore, which is 2.7 times its sales of Rs 36,996 crore for the year ended March 2010. Net profit rose 44% to Rs 1438.10 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.
Among other capital goods stocks, Bharat Heavy Electricals, SKF India and Crompton Greaves rose by between 0.28% to 1.72%.
State-run hydro power generation firm SJVN settled at Rs 25.05 on BSE, 3.65% discount to the initial public offer price of Rs 26.
SJVN clocked highest volume of 7.18 crore shares on BSE. Cals Refineries (3.79 crore shares), Birla Power Solutions (2.73 crore shares), Unitech (82.14 lakh shares) and Supertex Industries (58.17 lakh shares) were the other volume toppers in that order.
SJVN clocked highest turnover of Rs 180.03 crore on BSE. Tata Steel (Rs 155.35 crore), Piramal HealthCare (Rs 146.13 crore),State Bank of India (Rs 103.75 crore) and Tata Motors (Rs 100.42 crore) were the other turnover toppers in that order.
Thursday, May 20, 2010
3G AUCTION CLOSES;PAN-INDIA LICENCE BID TOUCHES RS 168.28 bn
Auction for 3G licence ended on Wednesday, with bids for pan-India licence touching Rs 168.28 billion that ensures the government a revenue of Rs 700 billion -- double the amount it expected to collect.
According to sources, Bharti, Idea and Vodafone Essar have won in some of the circles in the auction that lasted 34 days.
Details of who have secured all-India licence are awaited.
As per the latest figures, the pan-India licence bid touched Rs 168.28 billion compared to the reserve price of Rs 35 billion.
With the close of auction for 3G telephony spectrum, the government would commence the auction for Broadband Wireless Access (BWA) spectrum in two days.
Nine leading mobile operators, including Bharti Airtel, Vodafone, RCom and the Tatas, had entered the auction to grab spectrum for 3G services, which would allow users to access high-speed data downloads on mobile phones.
Slots were only available for three operators in most states, while four were available in Punjab, Bihar, Orissa, Jammu and Kashmir and Himachal Pradesh.
According to sources, Bharti, Idea and Vodafone Essar have won in some of the circles in the auction that lasted 34 days.
Details of who have secured all-India licence are awaited.
As per the latest figures, the pan-India licence bid touched Rs 168.28 billion compared to the reserve price of Rs 35 billion.
With the close of auction for 3G telephony spectrum, the government would commence the auction for Broadband Wireless Access (BWA) spectrum in two days.
Nine leading mobile operators, including Bharti Airtel, Vodafone, RCom and the Tatas, had entered the auction to grab spectrum for 3G services, which would allow users to access high-speed data downloads on mobile phones.
Slots were only available for three operators in most states, while four were available in Punjab, Bihar, Orissa, Jammu and Kashmir and Himachal Pradesh.
ASIA SPOOKED BY GERMAN SHORT SELLING MOVES
Dollar hits fresh four-year highs under 1.2200 as investors continue to be worried on Euro zone debt counts
The Asian stock market pared yesterday's modest advances and tumbled today as weak global cues and constant strength in the US dollar hurt the Asian equities. The benchmark indexes in major Asian markets dipped around 2% as fears about the Eurozone debt contagion refused to abate easily. The sentiments in risky assets were even more hurt yesterday on reports of Germany's decision to ban naked short selling in certain financial instruments, including select company shares and Euro government bonds. This took Euro to a fresh four-year low against the dollar, while crude oil slumped under $68 and hit a low of in early Asian trades, reflecting a tremendous drop in the risk appetite.
The Japanese stock market ended in negative territory though some intraday bounce back emerged in the stocks. Sharply lower closing on Wall Street, having given up considerable gains in early session, also pushed the buyers aside though bargain hunting in select stocks turned out to be a primary feature of the days in the second half of trading. The benchmark Nikkei 225 Index dropped 55.80 points, or 0.54%, to 10,187, while the broader Topix index of all First Section issues was down 3.27 points, or 0.36%, to 911.
On the economic front, a final report released by the Ministry of Economy, Trade and Industry revealed that industrial production in the country grew 1.2% in March compared to the previous month, revised upwards sharply from the preliminary report of a nominal 0.3% growth. On an annual basis, industrial production surged up 31.8%. The report further noted that shipments recorded a monthly increase of 2%, up from the initial estimate of 1.6%. At the same time, the decline in inventory was confirmed at 1.6%. On an annual basis, shipments climbed 29.9%, while inventory dropped 6%. Inventory ratio slipped 5.5% in March.
Further, the Bank of Japan revealed that output prices in manufacturing industry increased 1.2% in April compared with the same month last year. The report noted that, on a month-over-month basis, manufacturing output prices increased 1.2% in April, faster than the 0.2% rise in the prior month.
In Australia, stocks closed sharply lower following the rout in the regional indices. The market tanked to 9-month low as metal stocks were hurt badly. The benchmark S&P/ASX200 Index was down 83.60 points, or 1.87% to close at 4,387, while the All-Ordinaries Index ended at 4,414, representing a loss of 85.70 points, or 1.90%.
On the economic side, wages in the country rose at the fastest pace in more than a year in the first three months of 2010. Data released by the Australian Bureau of Statistics revealed that wages grew a seasonally adjusted 0.9% between January and March compared to the preceding three months. That is slightly above analyst forecasts for a 0.8% increase and follows a 0.6% increase in the December quarter. It also marks the fastest rate of wage growth since the December quarter of 2008, when wages increased 1.2%.
The minerals exploration expenditure in Australia is estimated to show a decrease of 11%, indicating that output of metals and minerals might be slowing in one of world's largest commodity producing nations, according to a latest report from the Australian Bureau of Agricultural and Resource Economics (ABARE). In its Minerals and energy Major development projects – April 2010 listings report, the ABARE stated that in 2009-10, mineral exploration expenditure in Australia is estimated to be $5.5 billion, a decrease of 11 per cent on expenditure in 2008-09.
In China, sellers returned with vengeance after an impressive 1% jump in the market yesterday. Chinese stocks were hurt by an utterly bearish undertone in the property and financial shares. The benchmark Shanghai Composite Index lost 0.27 percent to close at 2,587.81 points. The Shenzhen Component Index fell 0.12 percent to 9,991.4 at the close. Property stocks failed to continue Tuesday's strong performance with the sector losing 1.56 percent on continuing concerns over further tightening measures to cool the market.
In Mumbai, the BSE 30-share Sensex hit its lowest level in 2-1/2 months. The barometer index was provisionally down 460.03 points or 2.73%, up close to 40 points from the day's low and off close to 385 points from the day's high. The S&P CNX Nifty fell below the psychological 5,000 level. Banks were hammered with India's largest private sector bank by net profit ICICI Bank slumping close to 7% after an in-principle approval for the merger of Bank of Rajasthan with ICICI Bank.
In other markets, Hang Seng ended down 1.83%, Straits Times shed 2.40% while the TSEC lost out a relatively modest 0.34%.
The U.S. stock futures are showing that the DOW may slide by around 63 points at the open. The futures have been hit persistently during the day. The US dollar struck fresh four year high of 1.2142 and are currently consolidating just under 1.2200 threshold. Light sweet crude oil futures for June delivery dipped under $68 per barrel in electronic trading and currently trade at $68.38, down more than 1 dollar right now
The Asian stock market pared yesterday's modest advances and tumbled today as weak global cues and constant strength in the US dollar hurt the Asian equities. The benchmark indexes in major Asian markets dipped around 2% as fears about the Eurozone debt contagion refused to abate easily. The sentiments in risky assets were even more hurt yesterday on reports of Germany's decision to ban naked short selling in certain financial instruments, including select company shares and Euro government bonds. This took Euro to a fresh four-year low against the dollar, while crude oil slumped under $68 and hit a low of in early Asian trades, reflecting a tremendous drop in the risk appetite.
The Japanese stock market ended in negative territory though some intraday bounce back emerged in the stocks. Sharply lower closing on Wall Street, having given up considerable gains in early session, also pushed the buyers aside though bargain hunting in select stocks turned out to be a primary feature of the days in the second half of trading. The benchmark Nikkei 225 Index dropped 55.80 points, or 0.54%, to 10,187, while the broader Topix index of all First Section issues was down 3.27 points, or 0.36%, to 911.
On the economic front, a final report released by the Ministry of Economy, Trade and Industry revealed that industrial production in the country grew 1.2% in March compared to the previous month, revised upwards sharply from the preliminary report of a nominal 0.3% growth. On an annual basis, industrial production surged up 31.8%. The report further noted that shipments recorded a monthly increase of 2%, up from the initial estimate of 1.6%. At the same time, the decline in inventory was confirmed at 1.6%. On an annual basis, shipments climbed 29.9%, while inventory dropped 6%. Inventory ratio slipped 5.5% in March.
Further, the Bank of Japan revealed that output prices in manufacturing industry increased 1.2% in April compared with the same month last year. The report noted that, on a month-over-month basis, manufacturing output prices increased 1.2% in April, faster than the 0.2% rise in the prior month.
In Australia, stocks closed sharply lower following the rout in the regional indices. The market tanked to 9-month low as metal stocks were hurt badly. The benchmark S&P/ASX200 Index was down 83.60 points, or 1.87% to close at 4,387, while the All-Ordinaries Index ended at 4,414, representing a loss of 85.70 points, or 1.90%.
On the economic side, wages in the country rose at the fastest pace in more than a year in the first three months of 2010. Data released by the Australian Bureau of Statistics revealed that wages grew a seasonally adjusted 0.9% between January and March compared to the preceding three months. That is slightly above analyst forecasts for a 0.8% increase and follows a 0.6% increase in the December quarter. It also marks the fastest rate of wage growth since the December quarter of 2008, when wages increased 1.2%.
The minerals exploration expenditure in Australia is estimated to show a decrease of 11%, indicating that output of metals and minerals might be slowing in one of world's largest commodity producing nations, according to a latest report from the Australian Bureau of Agricultural and Resource Economics (ABARE). In its Minerals and energy Major development projects – April 2010 listings report, the ABARE stated that in 2009-10, mineral exploration expenditure in Australia is estimated to be $5.5 billion, a decrease of 11 per cent on expenditure in 2008-09.
In China, sellers returned with vengeance after an impressive 1% jump in the market yesterday. Chinese stocks were hurt by an utterly bearish undertone in the property and financial shares. The benchmark Shanghai Composite Index lost 0.27 percent to close at 2,587.81 points. The Shenzhen Component Index fell 0.12 percent to 9,991.4 at the close. Property stocks failed to continue Tuesday's strong performance with the sector losing 1.56 percent on continuing concerns over further tightening measures to cool the market.
In Mumbai, the BSE 30-share Sensex hit its lowest level in 2-1/2 months. The barometer index was provisionally down 460.03 points or 2.73%, up close to 40 points from the day's low and off close to 385 points from the day's high. The S&P CNX Nifty fell below the psychological 5,000 level. Banks were hammered with India's largest private sector bank by net profit ICICI Bank slumping close to 7% after an in-principle approval for the merger of Bank of Rajasthan with ICICI Bank.
In other markets, Hang Seng ended down 1.83%, Straits Times shed 2.40% while the TSEC lost out a relatively modest 0.34%.
The U.S. stock futures are showing that the DOW may slide by around 63 points at the open. The futures have been hit persistently during the day. The US dollar struck fresh four year high of 1.2142 and are currently consolidating just under 1.2200 threshold. Light sweet crude oil futures for June delivery dipped under $68 per barrel in electronic trading and currently trade at $68.38, down more than 1 dollar right now
BEARS TIGHTEN THEIR GRIP
Germany's move to ban naked shorting of certain financial instruments, including shares of ten German financial companies rattled world stocks, with the domestic bourses following suit. Banking, IT, metal, FMCG, consumer durables and realty stocks declined. Index heavyweight Reliance Industries extended recent sharp losses. The market breadth was weak. All the sectoral indices on BSE were in the red.
The BSE 30-share Sensex hit its lowest level in 2-1/2 months. The Sensex fell 467.27 points or 2.77%, up close to 45 points from the day's low and off close to 395 points from the day's high. The S&P CNX Nifty fell below the psychological 5,000 level.
India's largest private sector bank by net profit ICICI Bank slumped close to 7% after an in-principle approval for the merger of Bank of Rajasthan with ICICI Bank. Shares of Bank of Rajasthan hit 20% upper circuit on a favourable swap ratio for the merger.
The Sensex has lost 1,561.53 points or 8.68% from a recent peak of 17,970.02 on 7 April 2010. It is down 6% in calendar 2010 so far, after climbing 81% in calendar 2009.
Back to today's trade and intraday volatility was high. The market recovered from lower after an initial slide triggered by weak Asian stocks. The market weakened again later. The market once again recovered from lower level in morning trade. The intraday recovery proved short lived. The Sensex hit a fresh intraday low in early afternoon trade. Bargain hunting in some pivotals helped key benchmark indices recover from lower level in choppy afternoon trade. A sell-off gripped the bourses in mid-afternoon trade as European stocks slumped after Germany sharpened financial regulation. The Sensex hit 2-1/2 month low later.
NSE's volatility index India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, jumped 20.72% to 32.04. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
Foreign funds are offloading Indian stocks. As per the provisional data from the stock exchanges, foreign institutional investors (FIIs) sold shares worth Rs 439.70 crore and domestic funds bought shares worth Rs 326.61 crore on Tuesday, 18 May 2010. FIIs have sold shares worth a net Rs 6326.62 crore this month, till 18 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 2509.05 crore so far this month, till 18 May 2010.
Worries over fiscal problems in southern Europe triggered outflow from China and India dedicated funds during the week ended 12 May 2010. As a result, Asia funds, excluding Japan, saw only $27 million inflows, their worst week in well over a year, as per data from global fund tracker EPFR Global.
European stocks slumped after Germany's move to ban some naked shorting and German Chancellor Angela Merkel said the euro was in danger. Key indices in UK, France and Germany fell by 2.13% to 2.5%.
Germany's financial-markets regulator on Tuesday banned naked short selling of certain euro-zone debt and other securities to curb excessive price movements it said could destabilize the financial system.
Meanwhile, European finance ministers on Tuesday approved new regulations aimed at reining in hedge funds, the latest sign of toughened oversight of powerful players in global financial markets. The European Union also plans to limit the amount of debt, or leverage, that foreign-based funds can use to amplify their trades and profits.
Asia shares dropped in volatile trade as investors nervously eyed the euro's plunge to a fresh multi-year low against the US dollar and assessed moves by German financial regulators to ban some types of short selling of euro-zone securities. The key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Singapore and Taiwan fell by between 0.27% to 3.69%.
Japan's industrial output rose 1.2% in March, revised data showed on Wednesday, confirming output remains on an uptrend on the back of solid exports to Asia.
US index futures slumped in volatile trade. Trading in US index futures indicated that the Dow could fall 68 points at the opening bell on Wednesday, 19 May 2010.
US stocks sank on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed bank stocks, adding to worries about the sustainability of the global economic recovery. The Dow Jones Industrial Average fell 114.88 points or 1.08% to 10,510.95. The Standard & Poor's 500 Index lost 16.14 points, or 1.42% to 1,120.80. The Nasdaq Composite Index shed 36.97 points, or 1.57% to 2,317.26.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 2,114 companies rose 24.6% to Rs 55,330 crore on 25.3% rise in sales to Rs 5,57,645 crore in the quarter ended March 2010 over the quarter ended March 2009.
On the macro front, while the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
The latest economic data showed industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
A cyclone in Bay of Bengal is unlikely to impact the progress of India's monsoon rains, Ajit Tyagi, director general of the India Meteorological Department told a news agency on Tuesday. Cyclone Laila is moving across the Bay of Bengal towards east coast and is forecast to reach hurricane strength before making landfall in Andhra Pradesh on Thursday.
The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 1010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
The BSE 30-share Sensex fell 467.27 points or 2.77% to 16,408.49, its lowest closing since 25 February 2010. The Sensex fell 73.37 points at the day's high of 16802.39 in early trade. The index fell 502.44 points at the day's low of 16,373.32 in late trade.
The S&P CNX Nifty declined 146.55 points or 2.89% to 4,919.65 its lowest closing since 25 February 2010. The index hit a low of 4,908.15.
The BSE Mid-Cap index fell 2.55%. The BSE Small-Cap index fell 2.54%. Both the indices outperformed the Sensex.
All the sectoral indices on BSE declined. BSE Metal index (down 4.19%), Realty index (down 3.95%), banking sector index Bankex (down 3.85%), Auto index (down 3.44%), and FMCG index (down 2.79%), underperformed the Sensex. BSE IT index (down 1.53%), Capital Goods index (down 1.83%), PSU index (down 1.84%), Power index (down 1.94%), Consumer Durables index (down 1.98%), Healthcare index (down 2.01%), and Oil & Gas index (down 2.09%), outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 2203 shares declined as compared to 650 shares that advanced. A total of 70 shares were unchanged.
From the 30 share Sensex pack, 27 stocks declined and the rest rose.
BSE clocked turnover of Rs 4532 crore, higher than Rs 4421.91 crore on Tuesday, 18 May 2010.
Index heavyweight Reliance Industries (RIL) fell 2.19%, extending recent losses. RIL has agreed with Russia's Sibur to set up a joint venture in India to make butyl rubber amid rising demand from the auto industry. As per the agreement, butyl rubber will be produced at RIL's integrated petrochemical site in Jamnagar.
The RIL stock had surged early this month, boosted by after a favourable ruling in the Supreme Court on gas dispute with Anil Ambani controlled Reliance Natural Resources (RNRL). The Supreme Court ordered the two firms to renegotiate a deal based on government policy on gas utilization.
Earlier, the Bombay High Court, in its order dated 15 June 2009 had directed that RNRL will get assured supply of 28 mmscmd of gas from RIL's Krishna-Godavari basin for 17 years at $2.34 per million British thermal units (mBtu). The gas price was 44.28% lower than the price fixed by the government for gas sale from the RIL block in the KG basin at $4.2 mBtu.
India's largest drug maker by sales Ranbaxy Laboratories fell 5.87% after company said on Wednesday its European unit was recalling select batches of three products to add safety warnings under the regulations there. The company said there was no product quality concerns for the drugs, but did not name the products. Ranbaxy said the drugs were being recalled from Britain, Denmark and Ireland.
Auto shares fell on profit taking. India's top truck maker by sales Tata Motors fell 7.19%, with the stock falling for the fourth straight day. The company's global vehicles sales rose 53% to 77,732 units in April 2010 over April 2009. Global sales include that of Jaguar and Land Rover brands, which rose 61% to 17,909 vehicles. The figures were announced on 14 May 2010.
India's largest small car maker by sales Maruti Suzuki India declined 0.98%. Maruti's total sales rose almost 30% to 93,058 units in April 2010 over April 2009. Domestic sales rose 23.4% to 80,034 units. The data was unveiled on 1 May 2010. India's largest tractor maker by sales Mahindra & Mahindra fell 5.92%.
Car sales in India rose an annual 39.5% to 143,976 cars in April 2010 over April 2009, data from the Society of Indian Automobile Manufacturers (SIAM) showed. Sales of trucks and buses, a barometer of economic activity, rose 64.5 % to 49,086 units in April 2010 over April 2009, SIAM said.
Bajaj Auto fell 2.15%. The stock had hit a record high of Rs 2219.90 in intraday trade on Friday, 14 May 2010, boosted by strong Q4 results. Net profit surged 306% to Rs 528.65 crore in Q4 March 2010 over Q4 March 2009. The company announced result during market hours on Wednesday, 12 May 2010.
But, India's largest motorbike maker by sales Hero Honda Motors rose 0.59%, reversing early losses.
Interest rate sensitive banking shares declined tracking weak financial shares worldwide. India's second largest private sector bank by net profit HDFC Bank fell 1.67%, with the stock falling for the fifth straight day.
Private sector lender ICICI Bank tumbled 7.24% amid concerns the bank is paying a high price for its proposed deal to buy small rival bank Bank of Rajasthan. ICICI shares extended fall for the forth straight day.
The board of directors of ICICI Bank and Bank of Rajasthan have given an in-principle nod for the merger of the later with the former. The swap ratio for the merger is set at 25 shares of ICICI Bank for every 118 shares held in Bank of Rajasthan. Bank of Rajasthan shares hit 20% upper circuit at Rs 119.40, boosted by the favourable swap ratio for the merger.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) fell 2.69%. SBI expects its advances to grow by 22-23% in the current financial year. SBI's net profit declined 31.93% to Rs 1866.60 crore in Q4 March 2010 over Q4 March 2009. The bank announced the result during market hours on Friday, 14 May 2010.
India's largest mortgage lender by total income Housing Development Finance Corporation fell 2.54% with the stock falling for the fourth straight day. The company's board on 3 May 2010 approved a 5-for-1 stock-split.
HDFC has reportedly extended concessional home loan scheme till 30 June 2010. Under the scheme, HDFC would offer a fixed interest rate of 8.25% up to March 2011, 9% for the next one year and a floating rate thereafter. The scheme was scheduled to end on 30 April 2010.
Metal and mining stocks fell as copper prices dropped in Asian trading on Wednesday. Hindustan Zinc, Jindal Steel & Power, Sterlite Industries, Tata Steel, Jindal Saw, Hindalco Industries, Steel Authority of India, Sesa Goa, National Aluminum Company fell by between 2.83% to 7.33%.
Consumer durables stocks fell on profit taking. Rajesh Exports, Blue Star, Titan Industries, Videocon Industries and Gitanjali Gems fell by between 0.21% to 3.76%.
FMCG stocks fell on profit taking. United Spirits, ITC, Hindustan Unilever and Marico fell by between 0.91% to 3.48%.
Oil exploration stocks fell as crude oil futures prices declined. Fall in crude oil prices would result in lower realizations from crude sales. Light, sweet crude oil futures for June delivery on the New York Mercantile Exchange settled 67 cents lower at $69.41 a barrel on Tuesday. Cairn India fell 3.86%. India's largest oil & gas exploration firm by sales ONGC fell 2.02%. India's second largest oil & gas exploration firm by sales Oil India declined 1.4%.
India's largest cellular services provider by sales Bharti Airtel fell 3.08% extending recent sharp fall triggered by telecom regulator Telecom Regulatory Authority of India (Trai)'s recommendation that telecom firms pay a one-time fee for holding radio-spectrum beyond 6.2 mega hertz (MHz) based on 3G prices.
Bharti Airtel said the telecoms regulator's proposals on allocation of second-generation (2G) spectrum are shocking, arbitrary and retrograde and are against all existing global norms for spectrum allocation. The company said it was confident that the Department of Telecommunications (DoT) and that the government will take a rational approach and summarily reject these arbitrary, impractical and perverse recommendations.
India's second largest listed cellular services provider by sales Reliance Communications (RCom) fell 5.66%. The stock hit a 52 week low of Rs 136 today. Consolidated net profit declined 22.99% to Rs 4655 crore in the year ended March 2010 over the year ended March 2009. The company announced the result on Saturday, 15 May 2010.
At the time of announcing the results, chairman Anil Ambani said RCom will be able to sustain profitable growth in the coming quarters despite a highly competitive environment.
India's largest thermal power producer by sales NTPC fell 1.69% extending recent losses as net profit declined 4.52% to Rs 2017.65 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.
India's largest engineering and construction firm by sales Larsen & Toubro fell 1.3% on profit taking after last two days' post-result rally triggered by strong guidance for the current financial year. At the time of announcing Q4 March 2010 results on Monday, 17 May 2010, L&T's management gave a guidance of 20% growth in revenue and 25% growth in new orders in the current financial year.
L&T's order inflow jumped 90% to Rs 23843 crore in Q4 March 2010 over Q4 March 2009. The company's order book as at 31 March 2010 stood at Rs 1,00,239 crore, which is 2.7 times its sales of Rs 36,996 crore for the year ended March 2010. Net profit rose 44% to Rs 1438.10 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.
Among other capital goods stocks, Siemens, Bharat Heavy Electricals, BEML, ABB, Thermax and Punj Lloyd fell by between 1.26% to 5.47%.
It stocks fell on profit taking. India's second largest software services exporter Infosys fell 0.76%, reversing initial gains. India's third largest software services exporter Wipro fell 1.54%. India's largest software services exporter TCS fell 2.26% with the stock falling for the fourth straight day on reports the UK government will review outsourcing contracts, including agreements signed with TCS, in a bid to cut government spending.
Mandhana Industries settled at Rs 133.65 on BSE, a 2.81% premium over the initial public offer price of Rs 130. The stock debuted at Rs 132.70, a 2.10% premium over initial public offer (IPO) price.
Cals Refineries clocked the highest volume of 3.15 crore shares on BSE. Reliance Natural Resources (1.25 crore shares), Birla Power Solutions (1.24 crore shares), Mandhana Industries (1.08 crore shares) and Tarapur Transformers (91.62 lakh shares) were the other volume toppers in that order.
ICICI Bank clocked the highest turnover of Rs 197.98 crore on BSE. Piramal HealthCare (Rs 183.36 crore), Tata Steel (Rs 169.31 crore), Mandhana Industries (Rs 145.45 crore) and State Bank of India (Rs 125.57 crore) were the other turnover toppers in that order.
The BSE 30-share Sensex hit its lowest level in 2-1/2 months. The Sensex fell 467.27 points or 2.77%, up close to 45 points from the day's low and off close to 395 points from the day's high. The S&P CNX Nifty fell below the psychological 5,000 level.
India's largest private sector bank by net profit ICICI Bank slumped close to 7% after an in-principle approval for the merger of Bank of Rajasthan with ICICI Bank. Shares of Bank of Rajasthan hit 20% upper circuit on a favourable swap ratio for the merger.
The Sensex has lost 1,561.53 points or 8.68% from a recent peak of 17,970.02 on 7 April 2010. It is down 6% in calendar 2010 so far, after climbing 81% in calendar 2009.
Back to today's trade and intraday volatility was high. The market recovered from lower after an initial slide triggered by weak Asian stocks. The market weakened again later. The market once again recovered from lower level in morning trade. The intraday recovery proved short lived. The Sensex hit a fresh intraday low in early afternoon trade. Bargain hunting in some pivotals helped key benchmark indices recover from lower level in choppy afternoon trade. A sell-off gripped the bourses in mid-afternoon trade as European stocks slumped after Germany sharpened financial regulation. The Sensex hit 2-1/2 month low later.
NSE's volatility index India VIX, a gauge of traders' perception of near-term risks in the market based on options prices, jumped 20.72% to 32.04. India VIX is calculated based on the S&P CNX Nifty options prices. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.
Foreign funds are offloading Indian stocks. As per the provisional data from the stock exchanges, foreign institutional investors (FIIs) sold shares worth Rs 439.70 crore and domestic funds bought shares worth Rs 326.61 crore on Tuesday, 18 May 2010. FIIs have sold shares worth a net Rs 6326.62 crore this month, till 18 May 2010, according to data from the stock exchanges. They had bought stocks worth a net Rs 2667.35 crore last month. Domestic funds have bought stocks worth a net Rs 2509.05 crore so far this month, till 18 May 2010.
Worries over fiscal problems in southern Europe triggered outflow from China and India dedicated funds during the week ended 12 May 2010. As a result, Asia funds, excluding Japan, saw only $27 million inflows, their worst week in well over a year, as per data from global fund tracker EPFR Global.
European stocks slumped after Germany's move to ban some naked shorting and German Chancellor Angela Merkel said the euro was in danger. Key indices in UK, France and Germany fell by 2.13% to 2.5%.
Germany's financial-markets regulator on Tuesday banned naked short selling of certain euro-zone debt and other securities to curb excessive price movements it said could destabilize the financial system.
Meanwhile, European finance ministers on Tuesday approved new regulations aimed at reining in hedge funds, the latest sign of toughened oversight of powerful players in global financial markets. The European Union also plans to limit the amount of debt, or leverage, that foreign-based funds can use to amplify their trades and profits.
Asia shares dropped in volatile trade as investors nervously eyed the euro's plunge to a fresh multi-year low against the US dollar and assessed moves by German financial regulators to ban some types of short selling of euro-zone securities. The key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Singapore and Taiwan fell by between 0.27% to 3.69%.
Japan's industrial output rose 1.2% in March, revised data showed on Wednesday, confirming output remains on an uptrend on the back of solid exports to Asia.
US index futures slumped in volatile trade. Trading in US index futures indicated that the Dow could fall 68 points at the opening bell on Wednesday, 19 May 2010.
US stocks sank on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed bank stocks, adding to worries about the sustainability of the global economic recovery. The Dow Jones Industrial Average fell 114.88 points or 1.08% to 10,510.95. The Standard & Poor's 500 Index lost 16.14 points, or 1.42% to 1,120.80. The Nasdaq Composite Index shed 36.97 points, or 1.57% to 2,317.26.
Back home, the fourth quarter corporate results announced so far have been fairly encouraging. The combined net profit of a total of 2,114 companies rose 24.6% to Rs 55,330 crore on 25.3% rise in sales to Rs 5,57,645 crore in the quarter ended March 2010 over the quarter ended March 2009.
On the macro front, while the headline inflation declined to 9.59% in April 2010 from 9.9% rise in March 2010, the data for February 2010 was revised upwards to 10.06% from provisional figure of 9.89%, the latest government data showed. The RBI has forecast the headline inflation to ease to 5.5% at end-March 2011 on expectations of a normal monsoon.
The latest economic data showed industrial output rose lower than expected 13.5% in March 2010. The growth was also slower than February's 15.1% expansion. Manufacturing sector output rose 14.3% in March 2010. Industrial output rose 10.4% in the 2009/10 fiscal year, faster than the 2.6% growth clocked in the previous fiscal year.
A cyclone in Bay of Bengal is unlikely to impact the progress of India's monsoon rains, Ajit Tyagi, director general of the India Meteorological Department told a news agency on Tuesday. Cyclone Laila is moving across the Bay of Bengal towards east coast and is forecast to reach hurricane strength before making landfall in Andhra Pradesh on Thursday.
The India Meteorological Department (IMD) in late April 2010 said rainfall is likely to be 98% of the long-term average. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The quantum of rainfall in the crucial sowing month of July and distribution of rainfall during the monsoon season also holds key.
The RBI expects India's economy to expand 8% in the year ending March 2011 (FY 2011) with an upward bias, assuming a normal monsoon this year and sustenance of good performance of the industrial and services sectors on the back of rising domestic and external demand. The RBI at its annual policy review on 20 April 2010 said it will continue to monitor macroeconomic conditions, particularly the price situation closely and take further action as warranted.
In its World Economic Outlook in April 1010, the International Monetary Fund (IMF) pegged India's GDP growth forecast at 8.75% in calendar 2010 and 8.5% in calendar 2011. IMF's optimism was based on expectations of strengthening of domestic demand as the labour market improves. Expectations of increase in investment on the back of strong corporate profitability, rising business confidence and favourable financing conditions, were other factors cited by IMF for its prediction of strong growth in India's economy.
The BSE 30-share Sensex fell 467.27 points or 2.77% to 16,408.49, its lowest closing since 25 February 2010. The Sensex fell 73.37 points at the day's high of 16802.39 in early trade. The index fell 502.44 points at the day's low of 16,373.32 in late trade.
The S&P CNX Nifty declined 146.55 points or 2.89% to 4,919.65 its lowest closing since 25 February 2010. The index hit a low of 4,908.15.
The BSE Mid-Cap index fell 2.55%. The BSE Small-Cap index fell 2.54%. Both the indices outperformed the Sensex.
All the sectoral indices on BSE declined. BSE Metal index (down 4.19%), Realty index (down 3.95%), banking sector index Bankex (down 3.85%), Auto index (down 3.44%), and FMCG index (down 2.79%), underperformed the Sensex. BSE IT index (down 1.53%), Capital Goods index (down 1.83%), PSU index (down 1.84%), Power index (down 1.94%), Consumer Durables index (down 1.98%), Healthcare index (down 2.01%), and Oil & Gas index (down 2.09%), outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 2203 shares declined as compared to 650 shares that advanced. A total of 70 shares were unchanged.
From the 30 share Sensex pack, 27 stocks declined and the rest rose.
BSE clocked turnover of Rs 4532 crore, higher than Rs 4421.91 crore on Tuesday, 18 May 2010.
Index heavyweight Reliance Industries (RIL) fell 2.19%, extending recent losses. RIL has agreed with Russia's Sibur to set up a joint venture in India to make butyl rubber amid rising demand from the auto industry. As per the agreement, butyl rubber will be produced at RIL's integrated petrochemical site in Jamnagar.
The RIL stock had surged early this month, boosted by after a favourable ruling in the Supreme Court on gas dispute with Anil Ambani controlled Reliance Natural Resources (RNRL). The Supreme Court ordered the two firms to renegotiate a deal based on government policy on gas utilization.
Earlier, the Bombay High Court, in its order dated 15 June 2009 had directed that RNRL will get assured supply of 28 mmscmd of gas from RIL's Krishna-Godavari basin for 17 years at $2.34 per million British thermal units (mBtu). The gas price was 44.28% lower than the price fixed by the government for gas sale from the RIL block in the KG basin at $4.2 mBtu.
India's largest drug maker by sales Ranbaxy Laboratories fell 5.87% after company said on Wednesday its European unit was recalling select batches of three products to add safety warnings under the regulations there. The company said there was no product quality concerns for the drugs, but did not name the products. Ranbaxy said the drugs were being recalled from Britain, Denmark and Ireland.
Auto shares fell on profit taking. India's top truck maker by sales Tata Motors fell 7.19%, with the stock falling for the fourth straight day. The company's global vehicles sales rose 53% to 77,732 units in April 2010 over April 2009. Global sales include that of Jaguar and Land Rover brands, which rose 61% to 17,909 vehicles. The figures were announced on 14 May 2010.
India's largest small car maker by sales Maruti Suzuki India declined 0.98%. Maruti's total sales rose almost 30% to 93,058 units in April 2010 over April 2009. Domestic sales rose 23.4% to 80,034 units. The data was unveiled on 1 May 2010. India's largest tractor maker by sales Mahindra & Mahindra fell 5.92%.
Car sales in India rose an annual 39.5% to 143,976 cars in April 2010 over April 2009, data from the Society of Indian Automobile Manufacturers (SIAM) showed. Sales of trucks and buses, a barometer of economic activity, rose 64.5 % to 49,086 units in April 2010 over April 2009, SIAM said.
Bajaj Auto fell 2.15%. The stock had hit a record high of Rs 2219.90 in intraday trade on Friday, 14 May 2010, boosted by strong Q4 results. Net profit surged 306% to Rs 528.65 crore in Q4 March 2010 over Q4 March 2009. The company announced result during market hours on Wednesday, 12 May 2010.
But, India's largest motorbike maker by sales Hero Honda Motors rose 0.59%, reversing early losses.
Interest rate sensitive banking shares declined tracking weak financial shares worldwide. India's second largest private sector bank by net profit HDFC Bank fell 1.67%, with the stock falling for the fifth straight day.
Private sector lender ICICI Bank tumbled 7.24% amid concerns the bank is paying a high price for its proposed deal to buy small rival bank Bank of Rajasthan. ICICI shares extended fall for the forth straight day.
The board of directors of ICICI Bank and Bank of Rajasthan have given an in-principle nod for the merger of the later with the former. The swap ratio for the merger is set at 25 shares of ICICI Bank for every 118 shares held in Bank of Rajasthan. Bank of Rajasthan shares hit 20% upper circuit at Rs 119.40, boosted by the favourable swap ratio for the merger.
India's biggest commercial bank in terms of branch network State Bank of India (SBI) fell 2.69%. SBI expects its advances to grow by 22-23% in the current financial year. SBI's net profit declined 31.93% to Rs 1866.60 crore in Q4 March 2010 over Q4 March 2009. The bank announced the result during market hours on Friday, 14 May 2010.
India's largest mortgage lender by total income Housing Development Finance Corporation fell 2.54% with the stock falling for the fourth straight day. The company's board on 3 May 2010 approved a 5-for-1 stock-split.
HDFC has reportedly extended concessional home loan scheme till 30 June 2010. Under the scheme, HDFC would offer a fixed interest rate of 8.25% up to March 2011, 9% for the next one year and a floating rate thereafter. The scheme was scheduled to end on 30 April 2010.
Metal and mining stocks fell as copper prices dropped in Asian trading on Wednesday. Hindustan Zinc, Jindal Steel & Power, Sterlite Industries, Tata Steel, Jindal Saw, Hindalco Industries, Steel Authority of India, Sesa Goa, National Aluminum Company fell by between 2.83% to 7.33%.
Consumer durables stocks fell on profit taking. Rajesh Exports, Blue Star, Titan Industries, Videocon Industries and Gitanjali Gems fell by between 0.21% to 3.76%.
FMCG stocks fell on profit taking. United Spirits, ITC, Hindustan Unilever and Marico fell by between 0.91% to 3.48%.
Oil exploration stocks fell as crude oil futures prices declined. Fall in crude oil prices would result in lower realizations from crude sales. Light, sweet crude oil futures for June delivery on the New York Mercantile Exchange settled 67 cents lower at $69.41 a barrel on Tuesday. Cairn India fell 3.86%. India's largest oil & gas exploration firm by sales ONGC fell 2.02%. India's second largest oil & gas exploration firm by sales Oil India declined 1.4%.
India's largest cellular services provider by sales Bharti Airtel fell 3.08% extending recent sharp fall triggered by telecom regulator Telecom Regulatory Authority of India (Trai)'s recommendation that telecom firms pay a one-time fee for holding radio-spectrum beyond 6.2 mega hertz (MHz) based on 3G prices.
Bharti Airtel said the telecoms regulator's proposals on allocation of second-generation (2G) spectrum are shocking, arbitrary and retrograde and are against all existing global norms for spectrum allocation. The company said it was confident that the Department of Telecommunications (DoT) and that the government will take a rational approach and summarily reject these arbitrary, impractical and perverse recommendations.
India's second largest listed cellular services provider by sales Reliance Communications (RCom) fell 5.66%. The stock hit a 52 week low of Rs 136 today. Consolidated net profit declined 22.99% to Rs 4655 crore in the year ended March 2010 over the year ended March 2009. The company announced the result on Saturday, 15 May 2010.
At the time of announcing the results, chairman Anil Ambani said RCom will be able to sustain profitable growth in the coming quarters despite a highly competitive environment.
India's largest thermal power producer by sales NTPC fell 1.69% extending recent losses as net profit declined 4.52% to Rs 2017.65 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.
India's largest engineering and construction firm by sales Larsen & Toubro fell 1.3% on profit taking after last two days' post-result rally triggered by strong guidance for the current financial year. At the time of announcing Q4 March 2010 results on Monday, 17 May 2010, L&T's management gave a guidance of 20% growth in revenue and 25% growth in new orders in the current financial year.
L&T's order inflow jumped 90% to Rs 23843 crore in Q4 March 2010 over Q4 March 2009. The company's order book as at 31 March 2010 stood at Rs 1,00,239 crore, which is 2.7 times its sales of Rs 36,996 crore for the year ended March 2010. Net profit rose 44% to Rs 1438.10 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Monday, 17 May 2010.
Among other capital goods stocks, Siemens, Bharat Heavy Electricals, BEML, ABB, Thermax and Punj Lloyd fell by between 1.26% to 5.47%.
It stocks fell on profit taking. India's second largest software services exporter Infosys fell 0.76%, reversing initial gains. India's third largest software services exporter Wipro fell 1.54%. India's largest software services exporter TCS fell 2.26% with the stock falling for the fourth straight day on reports the UK government will review outsourcing contracts, including agreements signed with TCS, in a bid to cut government spending.
Mandhana Industries settled at Rs 133.65 on BSE, a 2.81% premium over the initial public offer price of Rs 130. The stock debuted at Rs 132.70, a 2.10% premium over initial public offer (IPO) price.
Cals Refineries clocked the highest volume of 3.15 crore shares on BSE. Reliance Natural Resources (1.25 crore shares), Birla Power Solutions (1.24 crore shares), Mandhana Industries (1.08 crore shares) and Tarapur Transformers (91.62 lakh shares) were the other volume toppers in that order.
ICICI Bank clocked the highest turnover of Rs 197.98 crore on BSE. Piramal HealthCare (Rs 183.36 crore), Tata Steel (Rs 169.31 crore), Mandhana Industries (Rs 145.45 crore) and State Bank of India (Rs 125.57 crore) were the other turnover toppers in that order.
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