Today's major news
RBI increases repo, reverse repo rate by 25 basis points
Forex reserves up at $279.708 billion
Larsen & Toubro wins order worth Rs977 crore; the stock closes 0.22% lower
Post-market summary
Global signals
European indices fell on Monday, March 22, 2010 with banking and commodities stocks falling the most as investors concerns over further monetary tightening by the emerging markets after India’s central bank hiked the key benchmark interest rate on Friday. At the time of writing this report, FTSE 100 was down by 0.95%.
Among the major Asian indices, all the indices closed lower except Shanghai Composite that closed marginally higher. SGX Nifty closed 77 points lower.
US stock futures opened lower on Monday signaling a negative opening for the Wall Street. Pharma, healthcare and insurance companies are in spotlight after the House of Representatives gave final approval to a sweeping healthcare bill.
Indian indices
After rallying in the last week, the domestic indices loses its four day winning streak to close lower on Monday after the Reserve Bank of India unexpectedly hiked the repo and the reverse repo rate by 25 basis points. This triggered the selling in the interest rate sensitive stocks like realty, banking and auto, combined with late selling pressure in metal stocks after metal prices fell on London Metal exchange. Worry of over Greece debt crisis added the fuel.
Taking lead from the weak global markets, the Sensex opened 97 points lower at 17,481, however, it recovered some of its losses and touched the day’s high of 17,559. But continuous selling pressure in realty and late sell-off in the metal stocks dragged the Sensex to the day’s low of 17,337. At the finishing line, the Sensex closed at 17410, 168 points lower over its yesterday’s close; the Nifty closed 58 points lower at 5205.
Market sentiment
The market breadth was negative as 63% of the stocks declined while 34% of the stocks advanced. Of the 2,918 stocks traded on the BSE, 1,851 stocks declined, whereas 987 stocks advanced. Eighty stocks closed unchanged.
Sectoral & stock screening
All the 13 sector indices on the BSE closed in red except BSE Health Care index that closed marginally higher by 0.26%. RBI hiking the key benchmark interest rates dragged down the interest rate sensitive realty sector by 3.88%, while the fall in the price of metals on London Metal Exchange dragged BSE Metal down by 1.96%.
On stocks’ front, the top three gainers were Max India (up 2.60%), Chambal Fertilisers (up 2.54%) and Divis Laboratories (up 2.50%). The top three losers were Indiabulls Real Estate (down 6.68%), Housing Development & infrastructure Ltd (HDIL) (down 5.78%) and Gujarat Mineral Development Corporation (GMDC) (down 4.66%)
Viewing volumes
Ispat Industries was the most actively traded share with over 0.46 crore shares changing hands on the BSE, followed by India’s second largest realty company — Unitech (0.44 crore shares), wind turbine major — Suzlon Energy (0.28 crore shares). The top loser of A group was Indiabulls Real Estate (0.21 crore shares) and the second biggest loser of A group was Housing Development & infrastructure Ltd (HDIL; 0.20 crore shares).
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Monday, March 22, 2010
MARKET SNAPS 4 -DAY RALLY
The key benchmarks ended lower on Monday, 22 March 2010, as gains in the preceding four trading sessions prompted investors to book profits. Stocks in the rate sensitive sectors bore the major brunt after Reserve Bank of India unexpectedly hiked interest rates. Besides profit booking, weak global markets due to worries over Greece's debt crisis also weighed on investor sentiment. The BSE 30-share Sensex fell 167.66 points or 0.95%, up 73.19 points from the day's low and off 148.61 points from the day's high.
The Reserve Bank of India (RBI) late on Friday 19 March 2010, unexpectedly raised interest rates from record-low levels, citing intensifying inflationary pressures and a steady economic recovery. The market had widely expected the RBI to raise rates soon, but the timing of its 25 basis-point hike for its key lending and borrowing rates, before April policy review, caught markets by surprise.
The RBI raised the repo rate, the rate at which it lends to banks to 5% from 4.75% and reverse repo rate, the rate which it absorbs funds from the system to 3.50% from 3.25% with immediate effect. India is the second major economy after Australia to start raising interest rates with signs of global recovery emerging and local price pressures picking up. China has raised its banks' reserve requirements but has left its rates unchanged.
The market cut losses after a weak start. It further timed losses in morning trade. It extended recovery in mid-morning trade. Indices were marginally lower in early afternoon trade. It weakened once again later. The market may remain volatile in the near term as traders rollover positions in derivatives segment from the March 2010 series to the April 2010 series ahead of the expiry of the expiry of the near-month March 2010 derivatives contracts on Thursday, 25 March 2010. The market remains closed on Wednesday, 24 March 2010, on account of Ram Navmi.
The government hopes to achieve the targeted Rs 40,000 crore ($8.8 billion) from stake sales for the fiscal year 2010/11, Disinvestment Secretary Sumit Bose said on Monday. We have already done Rs 24,000 crore ($5.27 billion) in government stake sales in the financial year ending March 2010, he added.
The government hopes to raise the share of manufacturing to 22% of gross domestic product, Trade Minister Anand Sharma said on Monday.
Meanwhile, the Finance Minister Pranab Mukherjee said today, 22 March 2010, he expected the economy to expand by 7.2% the current fiscal year that ends on 31 March 2010, and by 8.5% in 2010-11.
The wholesale price index-based inflation may fall on a likely easing of food and oil prices, a Reserve Bank of India (RBI) deputy governor K.C. Chakrabarty said on Monday. The bank was right on the curve regarding Friday's unexpected rate hike action and it could act any time, he added.
The headline inflation is expected to come down in two months and the winter crop is likely to be good, the plan panel deputy Montek Singh Ahluwalia said on Monday, after the Reserve Bank of India's (RBI) surprise rate hike late on Friday. The RBI has to look at price trends, the underlying momentum (in prices) and not the annual rate of inflation and look at what else is happening and then make up its firm mind, he added.
The wholesale price index in Asia's third-largest economy accelerated to 9.89% in February, the highest since October 2008 and well above the central bank's end-March projection of 8.5% and the 8.56% January reading.
In the emergent scenario, low policy rates can complicate the inflation outlook and impair inflationary expectations, particularly given the recent escalation in the prices of non-food manufactured goods, the RBI said in a statement on Friday. While the recovery in growth has proceeded broadly along expected lines, the inflationary pressures have intensified beyond our baseline projection, the RBI said.
The central bank has been under increasing pressure to raise rates as inflation is nearing 10%. Key policymakers had said the RBI ought to carefully consider a return to normal monetary policy. The industrial output grew 16.7% in January. Between April and January, industrial growth expanded 9.6%. India is seen growing over 7.2% in the year to March 2010, and 8.5% the year after and 9% in 2011/12.
The Reserve Bank of India's (RBI) rate hike will anchor inflationary expectations but there could be another increase in April when the central bank reviews policy, Kaushik Basu, chief economic adviser in the finance ministry said on Friday.
Meanwhile, Finance ministry and Reserve Bank of India officials will meet in New Delhi on 29 March 2010 to decide on the borrowing for the first half of fiscal year 2010/11, a RBI deputy governor Shyamala Gopinath said on Monday. India is budgeted to borrow a record gross Rs 4,57,000 crore ($100 billion) in the fiscal year starting 1 April 2010.
Encouraging Q4 March 2010 advance tax figures of top Indian firms, indicating good Q4 March 2010 results, had boosted the bourses last week. The market has also witnessed a strong post-Budget rally driven by sustained buying by foreign funds since the presentation of the Union Budget 2010-2011 on 26 February 2010. The stock market has applauded the Union Budget 2010-2011 due to its thrust on infrastructure development, government's pledge to reduce fiscal deficit over the next three years, a smaller-than-expected 2% hike in excise duties, and reduction in taxes for individuals which will boost disposable income. The Finance Minister has assumed a modest GDP of about 8% and inflation of about 4.5% for 2010-2011.
Going ahead, the key triggers for the stock market are structural reforms such as decontrol of petrol and diesel prices, targeting of food subsidies, and financial sector reforms such as increase in foreign direct investment in insurance sector.
Global rating agency Standard & Poor's last week revised India's rating outlook to stable from negative. S&P affirmed long-term and short-term sovereign credit ratings on India. The revision in outlook by S&P reflects its view that India's fiscal position could now begin to recover and that its economy will remain on a strong growth path. The government budget targets a general government (including central and state governments) deficit of 8.3% in the fiscal year ending 31 March 2011, from 9.8% in the previous fiscal year, S&P said.
S&P also estimated that India's gross domestic product will grow 8% in the year ending March 31, 2011, higher than its forecast earlier, adding India's external position was resilient. Even so, India's ratings continue to be constrained by the government's high debt burden and deficit, as well as India's weak fiscal profile, the rating agency said.
European shares slipped for a third day on Monday, with drugmakers down after the House of Representatives approved an overhaul of the U.S. healthcare system, while renewed worries over Greece hurt banks. The key benchmark indices in France, Germany and UK fell by between 0.74% to 0.96%.
Asian stocks and the euro fell on Monday on renewed concerns over Greece's debt problems ahead of a euro zone summit, while India's surprise interest rate hike last week weighed on commodity currencies.. The key benchmark indices in Hong Kong, Indonesia, South Korea, Singapore and Taiwan fell by between 0.78% to 2.05%. But, China's Shanghai Composite rose 0.22%. Japanese market was closed on Monday for a national holiday.
Trading in US index futures indicated Dow could fall 59 points at the opening bell on Monday, 22 March 2010.
US stocks fell on Friday 19 March 2010, interrupting the Dow's eight-session winning streak, as the dollar's climb hurtoil prices and dragged on energy stocks. Friday marks the second day of a convergence known as quadruple witching, when four types of options and futures contracts expire, possibly triggering volatility and higher volumes. The Dow Jones industrial average dropped 52.30 points, or 0.49%, to 10,726.87. The Standard & Poor's 500 Index dropped 6.93 points, or 0.59%, to 1,158.91. The Nasdaq Composite Index dropped 19.67 points, or 0.82%, to 2,371.61. .
Advanced economies face “acute” challenges in tackling high public debt, and unwinding existing stimulus measures will not come close to bringing deficits back to prudent levels, said John Lipsky, first deputy managing director of the International Monetary Fund.
European leaders sent out conflicting signals at the weekend over aid to Greece, with Germany's Angela Merkel urging Athens to solve its debt problems alone and Italy's Silvio Berlusconi strongly backing EU support. The 16-nation euro zone is divided over whether and how best to provide financial help to Greece, whose struggles to cope with soaring debt and deficits have plunged the currency bloc into the deepest crisis of its 11-year existence.
Combined support for Greece from the IMF and the European Union would be the best way to help the over-borrowed country deal with its debt crisis, OECD Secretary General Angel Gurria said on Sunday.
The BSE 30-share Sensex was down 167.66 points or 0.95% to 17,410.57. The barometer index fell 19.05 points at the day's high of 17,559.18 in mid-morning trade. The Sensex fell 240.85 points at the day's low of 17,337.38 in early trade.
The S&P CNX Nifty was down 57.60 points or 1.09% at 5205.20.
The BSE Mid-Cap index fell 1.05% and the BSE Small-Cap index fell 0.85%.
The market breadth, indicating overall health of the market, was weak. On BSE, 988 shares advanced as compared with 1853 that declined. A total of 78 shares remained unchanged.
BSE clocked a turnover of Rs 4442 crore lower than Rs 4884.66 crore on Friday, 19 March 2010.
The BSE HealthCare index (up 0.26%), the BSE Teck index (down 0.13%), the BSE IT index (down 0.35%), the BSE FMCG index (down 0.38%), the BSE Capital Goods index (down 0.62%), and the BSE Bankex (down 0.85%), outperformed the Sensex.
The BSE PSU index (down 1.12%), the BSE Oil & Gas index (down 1.13%), he BSE Power index (down 1.14%), the BSE Auto index (down 1.73%), the BSE Consumer Durables index (down 1.74%), the BSE Metal index (down 1.96%), the BSE Realty index (down 3.88%), underperformed the Sensex.
From the 30 share Sensex pack, 22 stocks fell while the rest were trading positive.
Index heavyweight Reliance Industries (RIL) fell 1.46% on profit taking after recent rally triggered by expectations of good Q4 March 2010 results. As per the market buzz, RIL's Q4 advance tax surged to Rs 770 crore in Q4 March 2010 from Rs 365 crore a year ago. Meanwhile, Reliance Industries is reportedly seeking a joint venture with Atlas Energy to develop the US firm's Marcellus Shale gas operations.
Reliance Industries on 14 March 2010 announced a sports and entertainment joint venture with IMG Worldwide, a global leader in sports marketing and management. The equal venture, IMG Reliance, will set up modern infrastructure and coaching facilities for sports and create and operate sports and entertainment assets including celebrity management.
Rate sensitive banking stocks fell as the central bank on Friday, 19 March 2010 raised interest rates. India's largest bank by net profit and branch network State Bank of India (SBI) fell 0.85%. India's largest private sector bank by net profit ICICI Bank fell 2.03% extending Friday's 0.58% losses. The bank's Q3 advance tax payment surged to Rs 350 crore versus Rs 250 crore a year ago. Its ADR fell 3.84% on Friday. But, India's largest private sector bank by net profit HDFC Bank rose 1.11%. Its ADR fell 0.25% on Friday.
Rate sensitive auto stocks too fell after central bank raised the interest rates. India's largest bike maker by sales Hero Honda Motors fell 1.13%. Hero Honda has short-listed Karnataka as one of the states for setting up its fourth manufacturing plant. Hero Honda Motors has reportedly proposed an investment of Rs 2,000 crore for the upcoming plant.
Bajaj Auto fell 0.76%. As per recent report a joint venture between Nissan Motor, Renault S.A. and Bajaj Auto is working to make a car that will match the price of Tata Motors' Nano.
India's largest car maker by sales Maruti Suzuki India fell 2.22% extending recent fall triggered by fears increase in competition may dent sales. Recently, Ford India entered the small car market with 'Figo'.
Maruti Suzuki India, recently said that Japanese auto giant Nissan has placed orders for 35,000 units of its small car A- Star for 2010-11 to sell it in the European market. Nissan sources the A-Star from Maruti's Manesar facility and sells it in the European market as 'Pixo'.
India's largest commercial vehicle maker by sales Tata Motors fell 3.02%. Tata group's global sales rose 59% in February from a year earlier, the company said in a statement last week.
India's largest tractor maker by sales Mahindra & Mahindra (M&M) fell 2.28%, falling for the straight fourth day. The company paid Rs 235 crore in advance tax in Q4 March 2010 versus nil payment a year earlier.
Increase in raw material prices coupled with costs associated with new emission norms could force auto makers to increase prices further, which may hit volumes. The government raised excise duties on large cars and sport utility vehicles by 2%, which was immediately passed on by vehicles makers, including top carmaker Maruti Suzuki and utility vehicle makers Mahindra & Mahindra and Tata Motors. From 1 April 2010, all vehicles will have to comply with Euro IV emission norms across 13 major cities, adding to costs and setting the stage for another round of price hikes.
Rate sensitive realty shares also fell after the central bank's interest rate hike. Indiabulls Real Estate, HDIL, DLF, Omaxe, Orbit Corporation, Unitech, Mahindra Life Space Developers, Peninsula Land, Parsvnath Developers, Ackruti City and Phoenix Mills fell by 2.61% to 6.68%.
The Union budget last month proposed to impose service tax on the realty sector both on commercial rentals as well as on sale of under-construction housing units. The service tax would come to be about 3.5% of the cost of the apartment that includes the value of the land and also the cost of construction, realty body Credai said recently.
Metal stocks fell after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 0.93% on Friday, 19 March 2010. NMDC, Hindalco Industries, Steel Authority of India, Gujarat NRE Coke, Welspun Gujarat Stahl Rohren, Ispat Industries, Jindal Saw, Jindal Steel & Power and JSW Steel fell by between 0.99% to 3.69%.
India's largest steel maker by sales Tata Steel fell 2.16% on profit taking after the recent strong gains. Its Q4 advance tax payment rose to Rs 513 crore from Rs 406 crore a year earlier.
India's largest copper maker by sales Sterlite Industries fell 1.57% on reports a legal fight seems likely between Sterlite Industries and US copper miner Asarco LLC. The American company has filed a lawsuit against Sterlite for going back on a two-year old deal to acquire Asarco. This prompted Sterlite to also file a lawsuit against Asarco to claim recovery of about $50 million (about Rs 230 crore) that was deposited earlier.
National Aluminium Company lost 0.73% after the Union Minister for Mines ruled out any possibility of disinvestment in the state-run aluminium firm.
Punj Lloyd rose 1.55%, extending gains for the second day, after the company secured an overseas order worth $40 million from Abu Dhabi Gas Industries, UAE for an engineering, procurement and construction project.
ARSS Infrastructure Projects reported a highest turnover of Rs 370.28 crore on the BSE. Man Infraconstruction (Rs 228.53 crore), Jubilant FoodWorks (Rs 153.37 crore), Reliance Industries (Rs 100.21 crore) and Sesa Goa (Rs 88.72 crore), were the other turnover toppers on the BSE.
Cals Refineries clocked a highest volume of 2.19 crore shares on the BSE. Birla Power Solutions (1.20 crore shares), Alok Industries (1.08 crore shares), S Kumars Nationwide (95.18 lakh shares) and Pipavav Shipyard (84.37 lakh shares were the other volume toppers on the BSE.
The Reserve Bank of India (RBI) late on Friday 19 March 2010, unexpectedly raised interest rates from record-low levels, citing intensifying inflationary pressures and a steady economic recovery. The market had widely expected the RBI to raise rates soon, but the timing of its 25 basis-point hike for its key lending and borrowing rates, before April policy review, caught markets by surprise.
The RBI raised the repo rate, the rate at which it lends to banks to 5% from 4.75% and reverse repo rate, the rate which it absorbs funds from the system to 3.50% from 3.25% with immediate effect. India is the second major economy after Australia to start raising interest rates with signs of global recovery emerging and local price pressures picking up. China has raised its banks' reserve requirements but has left its rates unchanged.
The market cut losses after a weak start. It further timed losses in morning trade. It extended recovery in mid-morning trade. Indices were marginally lower in early afternoon trade. It weakened once again later. The market may remain volatile in the near term as traders rollover positions in derivatives segment from the March 2010 series to the April 2010 series ahead of the expiry of the expiry of the near-month March 2010 derivatives contracts on Thursday, 25 March 2010. The market remains closed on Wednesday, 24 March 2010, on account of Ram Navmi.
The government hopes to achieve the targeted Rs 40,000 crore ($8.8 billion) from stake sales for the fiscal year 2010/11, Disinvestment Secretary Sumit Bose said on Monday. We have already done Rs 24,000 crore ($5.27 billion) in government stake sales in the financial year ending March 2010, he added.
The government hopes to raise the share of manufacturing to 22% of gross domestic product, Trade Minister Anand Sharma said on Monday.
Meanwhile, the Finance Minister Pranab Mukherjee said today, 22 March 2010, he expected the economy to expand by 7.2% the current fiscal year that ends on 31 March 2010, and by 8.5% in 2010-11.
The wholesale price index-based inflation may fall on a likely easing of food and oil prices, a Reserve Bank of India (RBI) deputy governor K.C. Chakrabarty said on Monday. The bank was right on the curve regarding Friday's unexpected rate hike action and it could act any time, he added.
The headline inflation is expected to come down in two months and the winter crop is likely to be good, the plan panel deputy Montek Singh Ahluwalia said on Monday, after the Reserve Bank of India's (RBI) surprise rate hike late on Friday. The RBI has to look at price trends, the underlying momentum (in prices) and not the annual rate of inflation and look at what else is happening and then make up its firm mind, he added.
The wholesale price index in Asia's third-largest economy accelerated to 9.89% in February, the highest since October 2008 and well above the central bank's end-March projection of 8.5% and the 8.56% January reading.
In the emergent scenario, low policy rates can complicate the inflation outlook and impair inflationary expectations, particularly given the recent escalation in the prices of non-food manufactured goods, the RBI said in a statement on Friday. While the recovery in growth has proceeded broadly along expected lines, the inflationary pressures have intensified beyond our baseline projection, the RBI said.
The central bank has been under increasing pressure to raise rates as inflation is nearing 10%. Key policymakers had said the RBI ought to carefully consider a return to normal monetary policy. The industrial output grew 16.7% in January. Between April and January, industrial growth expanded 9.6%. India is seen growing over 7.2% in the year to March 2010, and 8.5% the year after and 9% in 2011/12.
The Reserve Bank of India's (RBI) rate hike will anchor inflationary expectations but there could be another increase in April when the central bank reviews policy, Kaushik Basu, chief economic adviser in the finance ministry said on Friday.
Meanwhile, Finance ministry and Reserve Bank of India officials will meet in New Delhi on 29 March 2010 to decide on the borrowing for the first half of fiscal year 2010/11, a RBI deputy governor Shyamala Gopinath said on Monday. India is budgeted to borrow a record gross Rs 4,57,000 crore ($100 billion) in the fiscal year starting 1 April 2010.
Encouraging Q4 March 2010 advance tax figures of top Indian firms, indicating good Q4 March 2010 results, had boosted the bourses last week. The market has also witnessed a strong post-Budget rally driven by sustained buying by foreign funds since the presentation of the Union Budget 2010-2011 on 26 February 2010. The stock market has applauded the Union Budget 2010-2011 due to its thrust on infrastructure development, government's pledge to reduce fiscal deficit over the next three years, a smaller-than-expected 2% hike in excise duties, and reduction in taxes for individuals which will boost disposable income. The Finance Minister has assumed a modest GDP of about 8% and inflation of about 4.5% for 2010-2011.
Going ahead, the key triggers for the stock market are structural reforms such as decontrol of petrol and diesel prices, targeting of food subsidies, and financial sector reforms such as increase in foreign direct investment in insurance sector.
Global rating agency Standard & Poor's last week revised India's rating outlook to stable from negative. S&P affirmed long-term and short-term sovereign credit ratings on India. The revision in outlook by S&P reflects its view that India's fiscal position could now begin to recover and that its economy will remain on a strong growth path. The government budget targets a general government (including central and state governments) deficit of 8.3% in the fiscal year ending 31 March 2011, from 9.8% in the previous fiscal year, S&P said.
S&P also estimated that India's gross domestic product will grow 8% in the year ending March 31, 2011, higher than its forecast earlier, adding India's external position was resilient. Even so, India's ratings continue to be constrained by the government's high debt burden and deficit, as well as India's weak fiscal profile, the rating agency said.
European shares slipped for a third day on Monday, with drugmakers down after the House of Representatives approved an overhaul of the U.S. healthcare system, while renewed worries over Greece hurt banks. The key benchmark indices in France, Germany and UK fell by between 0.74% to 0.96%.
Asian stocks and the euro fell on Monday on renewed concerns over Greece's debt problems ahead of a euro zone summit, while India's surprise interest rate hike last week weighed on commodity currencies.. The key benchmark indices in Hong Kong, Indonesia, South Korea, Singapore and Taiwan fell by between 0.78% to 2.05%. But, China's Shanghai Composite rose 0.22%. Japanese market was closed on Monday for a national holiday.
Trading in US index futures indicated Dow could fall 59 points at the opening bell on Monday, 22 March 2010.
US stocks fell on Friday 19 March 2010, interrupting the Dow's eight-session winning streak, as the dollar's climb hurtoil prices and dragged on energy stocks. Friday marks the second day of a convergence known as quadruple witching, when four types of options and futures contracts expire, possibly triggering volatility and higher volumes. The Dow Jones industrial average dropped 52.30 points, or 0.49%, to 10,726.87. The Standard & Poor's 500 Index dropped 6.93 points, or 0.59%, to 1,158.91. The Nasdaq Composite Index dropped 19.67 points, or 0.82%, to 2,371.61. .
Advanced economies face “acute” challenges in tackling high public debt, and unwinding existing stimulus measures will not come close to bringing deficits back to prudent levels, said John Lipsky, first deputy managing director of the International Monetary Fund.
European leaders sent out conflicting signals at the weekend over aid to Greece, with Germany's Angela Merkel urging Athens to solve its debt problems alone and Italy's Silvio Berlusconi strongly backing EU support. The 16-nation euro zone is divided over whether and how best to provide financial help to Greece, whose struggles to cope with soaring debt and deficits have plunged the currency bloc into the deepest crisis of its 11-year existence.
Combined support for Greece from the IMF and the European Union would be the best way to help the over-borrowed country deal with its debt crisis, OECD Secretary General Angel Gurria said on Sunday.
The BSE 30-share Sensex was down 167.66 points or 0.95% to 17,410.57. The barometer index fell 19.05 points at the day's high of 17,559.18 in mid-morning trade. The Sensex fell 240.85 points at the day's low of 17,337.38 in early trade.
The S&P CNX Nifty was down 57.60 points or 1.09% at 5205.20.
The BSE Mid-Cap index fell 1.05% and the BSE Small-Cap index fell 0.85%.
The market breadth, indicating overall health of the market, was weak. On BSE, 988 shares advanced as compared with 1853 that declined. A total of 78 shares remained unchanged.
BSE clocked a turnover of Rs 4442 crore lower than Rs 4884.66 crore on Friday, 19 March 2010.
The BSE HealthCare index (up 0.26%), the BSE Teck index (down 0.13%), the BSE IT index (down 0.35%), the BSE FMCG index (down 0.38%), the BSE Capital Goods index (down 0.62%), and the BSE Bankex (down 0.85%), outperformed the Sensex.
The BSE PSU index (down 1.12%), the BSE Oil & Gas index (down 1.13%), he BSE Power index (down 1.14%), the BSE Auto index (down 1.73%), the BSE Consumer Durables index (down 1.74%), the BSE Metal index (down 1.96%), the BSE Realty index (down 3.88%), underperformed the Sensex.
From the 30 share Sensex pack, 22 stocks fell while the rest were trading positive.
Index heavyweight Reliance Industries (RIL) fell 1.46% on profit taking after recent rally triggered by expectations of good Q4 March 2010 results. As per the market buzz, RIL's Q4 advance tax surged to Rs 770 crore in Q4 March 2010 from Rs 365 crore a year ago. Meanwhile, Reliance Industries is reportedly seeking a joint venture with Atlas Energy to develop the US firm's Marcellus Shale gas operations.
Reliance Industries on 14 March 2010 announced a sports and entertainment joint venture with IMG Worldwide, a global leader in sports marketing and management. The equal venture, IMG Reliance, will set up modern infrastructure and coaching facilities for sports and create and operate sports and entertainment assets including celebrity management.
Rate sensitive banking stocks fell as the central bank on Friday, 19 March 2010 raised interest rates. India's largest bank by net profit and branch network State Bank of India (SBI) fell 0.85%. India's largest private sector bank by net profit ICICI Bank fell 2.03% extending Friday's 0.58% losses. The bank's Q3 advance tax payment surged to Rs 350 crore versus Rs 250 crore a year ago. Its ADR fell 3.84% on Friday. But, India's largest private sector bank by net profit HDFC Bank rose 1.11%. Its ADR fell 0.25% on Friday.
Rate sensitive auto stocks too fell after central bank raised the interest rates. India's largest bike maker by sales Hero Honda Motors fell 1.13%. Hero Honda has short-listed Karnataka as one of the states for setting up its fourth manufacturing plant. Hero Honda Motors has reportedly proposed an investment of Rs 2,000 crore for the upcoming plant.
Bajaj Auto fell 0.76%. As per recent report a joint venture between Nissan Motor, Renault S.A. and Bajaj Auto is working to make a car that will match the price of Tata Motors' Nano.
India's largest car maker by sales Maruti Suzuki India fell 2.22% extending recent fall triggered by fears increase in competition may dent sales. Recently, Ford India entered the small car market with 'Figo'.
Maruti Suzuki India, recently said that Japanese auto giant Nissan has placed orders for 35,000 units of its small car A- Star for 2010-11 to sell it in the European market. Nissan sources the A-Star from Maruti's Manesar facility and sells it in the European market as 'Pixo'.
India's largest commercial vehicle maker by sales Tata Motors fell 3.02%. Tata group's global sales rose 59% in February from a year earlier, the company said in a statement last week.
India's largest tractor maker by sales Mahindra & Mahindra (M&M) fell 2.28%, falling for the straight fourth day. The company paid Rs 235 crore in advance tax in Q4 March 2010 versus nil payment a year earlier.
Increase in raw material prices coupled with costs associated with new emission norms could force auto makers to increase prices further, which may hit volumes. The government raised excise duties on large cars and sport utility vehicles by 2%, which was immediately passed on by vehicles makers, including top carmaker Maruti Suzuki and utility vehicle makers Mahindra & Mahindra and Tata Motors. From 1 April 2010, all vehicles will have to comply with Euro IV emission norms across 13 major cities, adding to costs and setting the stage for another round of price hikes.
Rate sensitive realty shares also fell after the central bank's interest rate hike. Indiabulls Real Estate, HDIL, DLF, Omaxe, Orbit Corporation, Unitech, Mahindra Life Space Developers, Peninsula Land, Parsvnath Developers, Ackruti City and Phoenix Mills fell by 2.61% to 6.68%.
The Union budget last month proposed to impose service tax on the realty sector both on commercial rentals as well as on sale of under-construction housing units. The service tax would come to be about 3.5% of the cost of the apartment that includes the value of the land and also the cost of construction, realty body Credai said recently.
Metal stocks fell after LMEX, a gauge of six metals traded on the London Metal Exchange, fell 0.93% on Friday, 19 March 2010. NMDC, Hindalco Industries, Steel Authority of India, Gujarat NRE Coke, Welspun Gujarat Stahl Rohren, Ispat Industries, Jindal Saw, Jindal Steel & Power and JSW Steel fell by between 0.99% to 3.69%.
India's largest steel maker by sales Tata Steel fell 2.16% on profit taking after the recent strong gains. Its Q4 advance tax payment rose to Rs 513 crore from Rs 406 crore a year earlier.
India's largest copper maker by sales Sterlite Industries fell 1.57% on reports a legal fight seems likely between Sterlite Industries and US copper miner Asarco LLC. The American company has filed a lawsuit against Sterlite for going back on a two-year old deal to acquire Asarco. This prompted Sterlite to also file a lawsuit against Asarco to claim recovery of about $50 million (about Rs 230 crore) that was deposited earlier.
National Aluminium Company lost 0.73% after the Union Minister for Mines ruled out any possibility of disinvestment in the state-run aluminium firm.
Punj Lloyd rose 1.55%, extending gains for the second day, after the company secured an overseas order worth $40 million from Abu Dhabi Gas Industries, UAE for an engineering, procurement and construction project.
ARSS Infrastructure Projects reported a highest turnover of Rs 370.28 crore on the BSE. Man Infraconstruction (Rs 228.53 crore), Jubilant FoodWorks (Rs 153.37 crore), Reliance Industries (Rs 100.21 crore) and Sesa Goa (Rs 88.72 crore), were the other turnover toppers on the BSE.
Cals Refineries clocked a highest volume of 2.19 crore shares on the BSE. Birla Power Solutions (1.20 crore shares), Alok Industries (1.08 crore shares), S Kumars Nationwide (95.18 lakh shares) and Pipavav Shipyard (84.37 lakh shares were the other volume toppers on the BSE.
Saturday, March 20, 2010
GOENKA DIAMOND AND JEWELS SET RS 135-145 PER SHARE IPO PRICE BAND.
Issue opens on 23 March 2010
Goenka Diamond and Jewels has fixed a price band of Rs 135-145 per share for its initial public offering (IPO) of 1 crore equity shares.
The issue will open for subscriptions on 23 March 2010 and close on 26 March 2010. The IPO will constitute 30.93% of the fully diluted post issue paid up capital of the company.
Promoters' holding will be reduced to 69.07% from 100%. Nand Lal Goenka, Navneet Goenka and Nitin Goenka are main promoters of this company. They will dilute their stake to 55.27% from 80.01% via this issue.
Goenka Diamond and Jewels is engaged in the business of cutting and polishing of diamonds and manufacturing and retailing of diamond jewellery.
The company aims to utilise the issue proceeds for meeting the expenses of establishing retail diamond jewellery stores, to meet working capital requirements of the jewellery business, to establish a jewellery manufacturing facility and a diamond processing facility in Mumbai.
Goenka Diamond and Jewels has fixed a price band of Rs 135-145 per share for its initial public offering (IPO) of 1 crore equity shares.
The issue will open for subscriptions on 23 March 2010 and close on 26 March 2010. The IPO will constitute 30.93% of the fully diluted post issue paid up capital of the company.
Promoters' holding will be reduced to 69.07% from 100%. Nand Lal Goenka, Navneet Goenka and Nitin Goenka are main promoters of this company. They will dilute their stake to 55.27% from 80.01% via this issue.
Goenka Diamond and Jewels is engaged in the business of cutting and polishing of diamonds and manufacturing and retailing of diamond jewellery.
The company aims to utilise the issue proceeds for meeting the expenses of establishing retail diamond jewellery stores, to meet working capital requirements of the jewellery business, to establish a jewellery manufacturing facility and a diamond processing facility in Mumbai.
INTRASOFT IPO AT RS 137-145 PER SHARE PRICE BAND.
Issue opens on 23 March 2010
IntraSoft Technologies, which owns 123greetings.com, has priced its initial public offer of 37 lakh equity shares of face value Rs 10 each in the Rs 137 to Rs 145 per share price band. The issue will open on 23 March 2010, and will close on 26 March 2010.
The company will raise Rs 50.69 crores at the lower end of the price band and mop up Rs 53.65 crores at the upper end. The issue constitutes 25.12% of the post issue paid up capital.
At least 50% of the book build issue will be reserved for qualified institutional buyers (QIBs); not less than 15% reserved for non-institutional bidders and 35% reserved for retail individual bidders.
IntraSoft plans to fund the company's requirements for branding & promotion, purchasing a corporate office in Kolkata, and investment in technology infrastructure from the issue proceeds.
CARE has assigned IPO Grade 3 to the IPO, indicating average fundamentals.
IntraSoft Technologies, which owns 123greetings.com, has priced its initial public offer of 37 lakh equity shares of face value Rs 10 each in the Rs 137 to Rs 145 per share price band. The issue will open on 23 March 2010, and will close on 26 March 2010.
The company will raise Rs 50.69 crores at the lower end of the price band and mop up Rs 53.65 crores at the upper end. The issue constitutes 25.12% of the post issue paid up capital.
At least 50% of the book build issue will be reserved for qualified institutional buyers (QIBs); not less than 15% reserved for non-institutional bidders and 35% reserved for retail individual bidders.
IntraSoft plans to fund the company's requirements for branding & promotion, purchasing a corporate office in Kolkata, and investment in technology infrastructure from the issue proceeds.
CARE has assigned IPO Grade 3 to the IPO, indicating average fundamentals.
Friday, March 19, 2010
ASIAN EQUITIES EKE OUT TINY GAINS
Some gains emerge on positive overnight US cues despite continued concerns about debt worries in Greece
Asian equities ended mixed today, as an attempt by the bulls to reinvigorate the sentiments in their favor on positive overnight US cues were encountered by continued concerns about debt worries in Greece. The US dollar also stayed higher throughout the Asian trades, be weighing on the markets as commodities slipped and weekend profit booking also kept advances under check for most of the Asian equities.
The Australian market ended with modest gains. Volumes were relatively lower as traders preferred to adopt a wait-and-watch approach awaiting more clues on global economy. The benchmark S&P/ASX200 Index added 9.10 points, or 0.19% to close at 4,872, while the All-Ordinaries Index ended at 4,890, representing a gain of 12.40 points, or 0.25%.
The stock market in Japan closed in positive territory on Friday, the last day of the trading week, on optimism about the US economy where the latest weekly jobless claims, despite rising marginally than forecast, confirmed that the employment situation is improving. The benchmark Nikkei 225 Index advanced 80.69 points, or 0.75%, to 10,824, while the broader Topix index of all First Section issues gained 8.14 points, or 0.87%, to 949.
On the economic front, a report released by the Ministry of Trade, Economy and Industry revealed that all industry activity in the country climbed 3.8% in January from December. The report further noted that year-on-year, all industry activity was up 2.9% in January, rebounding from 1.5% fall in December.
Shares in China eked out small gains in a cautious session on Friday, with wary investors expecting Beijing to further tighten liquidity by lifting bank reserve ratios. The Shanghai Composite Index closed up 0.71 at 3,067 points, its highest close since March 9.
In Mumbai, volatility was witnessed in the latter part of trading session as the key benchmarks pared gains after surging to two month highs. IT and realty stocks fell. But, PSU banks, auto and consumer durables stocks rose. The BSE 30-share Sensex was provisionally up 37.22 points or 0.21%, up close to 50 points from the day's low and off close to 45 points from the day's high.
In the U.S., stocks ended Thursday's trading mixed, as the markets digested a series of economic reports that showed only small steps forward for the ailing economy. The Dow and the Nasdaq rose by modest margins, while the S&P 500 closed just below the unchanged mark. The S&P 500 slipped by 0.39 points or less than a tenth of a percent to 1,166, while the Dow advanced by 45.50 points or 0.4% to 10,779 and the Nasdaq edged up by 2.19 points or 0.1% to 2,391.
US dollar stayed upbeat throughout the day, hitting a 10 session high of 1.3506 against the Euro. European Central Bank President Jean-Claude Trichet stated that strengthening longer-term confidence is crucial for the post-crisis economy and robust policy frameworks will be needed against future challenges. Light sweet crude oil futures for April delivery slipped to a low of $81.51 a barrel in electronic trading. The commodity currently trades at $81.63, down 57 cents per barrel from previous close.
Asian equities ended mixed today, as an attempt by the bulls to reinvigorate the sentiments in their favor on positive overnight US cues were encountered by continued concerns about debt worries in Greece. The US dollar also stayed higher throughout the Asian trades, be weighing on the markets as commodities slipped and weekend profit booking also kept advances under check for most of the Asian equities.
The Australian market ended with modest gains. Volumes were relatively lower as traders preferred to adopt a wait-and-watch approach awaiting more clues on global economy. The benchmark S&P/ASX200 Index added 9.10 points, or 0.19% to close at 4,872, while the All-Ordinaries Index ended at 4,890, representing a gain of 12.40 points, or 0.25%.
The stock market in Japan closed in positive territory on Friday, the last day of the trading week, on optimism about the US economy where the latest weekly jobless claims, despite rising marginally than forecast, confirmed that the employment situation is improving. The benchmark Nikkei 225 Index advanced 80.69 points, or 0.75%, to 10,824, while the broader Topix index of all First Section issues gained 8.14 points, or 0.87%, to 949.
On the economic front, a report released by the Ministry of Trade, Economy and Industry revealed that all industry activity in the country climbed 3.8% in January from December. The report further noted that year-on-year, all industry activity was up 2.9% in January, rebounding from 1.5% fall in December.
Shares in China eked out small gains in a cautious session on Friday, with wary investors expecting Beijing to further tighten liquidity by lifting bank reserve ratios. The Shanghai Composite Index closed up 0.71 at 3,067 points, its highest close since March 9.
In Mumbai, volatility was witnessed in the latter part of trading session as the key benchmarks pared gains after surging to two month highs. IT and realty stocks fell. But, PSU banks, auto and consumer durables stocks rose. The BSE 30-share Sensex was provisionally up 37.22 points or 0.21%, up close to 50 points from the day's low and off close to 45 points from the day's high.
In the U.S., stocks ended Thursday's trading mixed, as the markets digested a series of economic reports that showed only small steps forward for the ailing economy. The Dow and the Nasdaq rose by modest margins, while the S&P 500 closed just below the unchanged mark. The S&P 500 slipped by 0.39 points or less than a tenth of a percent to 1,166, while the Dow advanced by 45.50 points or 0.4% to 10,779 and the Nasdaq edged up by 2.19 points or 0.1% to 2,391.
US dollar stayed upbeat throughout the day, hitting a 10 session high of 1.3506 against the Euro. European Central Bank President Jean-Claude Trichet stated that strengthening longer-term confidence is crucial for the post-crisis economy and robust policy frameworks will be needed against future challenges. Light sweet crude oil futures for April delivery slipped to a low of $81.51 a barrel in electronic trading. The commodity currently trades at $81.63, down 57 cents per barrel from previous close.
S & P RATING HELPS BULLS CAUSE :--
Today's major news
S Kumars touches 52-week high; the stock surges 19.61%
Punj Lloyd bags Rs1281 crore contracts; the stock is up by 0.96%
Dalmia Cement demeger plan gets board nod; the stock slides 0.31%
Click here for more stories
Post-market summary
Global signals
The European stocks rose in early trade on Friday, March 19, 2010, hitting a 17-month high, with banking shares trading higher. At the time of writing this report, FTSE 100 was trading 0.78% higher.
Asian indices across the spectrum — Nikkie to Straits Times to Kospi — closed higher. The SGX Nifty closed at 5268, up 13 points.
The US stock futures pointed to a mixed opening on the Wall Street on Friday.
Indian indices
Higher Dow Jones yesternight and strong Asian indices this morning helped Indian indices open a marginal 12 points up at 17531. Leveraging on previous two days’ gains, the market traded with a positive bias all through the day. Upgradation of India’s debt-rating outlook from “negative” to “stable” by Standard & Poor’s (S&P) rating services helped the cause. However, as aforesaid in the morning report, it languished within a tight band of 17502-17600 due to lack of triggers.
Buying in the Sensex components such as Reliance Industries and Bharti Airtel propelled the index to 17600 levels. The Sensex, which had gained nearly 380 points in the last three sessions, added 59 points to its kitty to close at 17,578 points. The Nifty closed 17 points up at 5263.
Market sentiment
The choppy session saw declining shares slightly outnumbering the advancing shares. Of 2,950 stocks traded on the BSE, 1,381 stocks (46.81%) advanced, whereas 1,459 (49.46%) stocks declined. Hundred and ten stocks remained unchanged.
Sectoral & stock screening
Despite trading in the narrow range, all the sectoral indices closed higher, except realty and IT. The BSE realty slid the most, by 0.95%, followed by BSE IT that down by 0.45%. The BSE Consumer Durables (CD) surged the most and topped the sectoral list by 1.09%, followed by BSE Oil & Gas that rose by 0.78%. Other sectors closed positive in the range of 0.16% - 0.57%.
The top-3 gainers were — Bharat Electronics that surged by 5.71%, Chambal Fertilisers that rose by 4% and Bharti Airtel that was up by 3.95%.
The top-3 losers were — Indiabulls Real Estate that slid by 3.06%, CESC that was down by 2.51% and IVRCL Infrastructure and Projects that declined by 2.43%.
Viewing volumes
The stocks that drew investors interest were — India’s second largest realty company, Unitech, was the most traded share with over 0.43 crore shares changing hands on the BSE, followed by Exide Industries (0.38 crore shares), wind power major — Suzlon Energy (0.33 crore shares), sugar manufacturer — Shree Renuka Sugars (0.24 crore shares) and natural resources company — Reliance Natural Resources (0.20 crore shares).
S Kumars touches 52-week high; the stock surges 19.61%
Punj Lloyd bags Rs1281 crore contracts; the stock is up by 0.96%
Dalmia Cement demeger plan gets board nod; the stock slides 0.31%
Click here for more stories
Post-market summary
Global signals
The European stocks rose in early trade on Friday, March 19, 2010, hitting a 17-month high, with banking shares trading higher. At the time of writing this report, FTSE 100 was trading 0.78% higher.
Asian indices across the spectrum — Nikkie to Straits Times to Kospi — closed higher. The SGX Nifty closed at 5268, up 13 points.
The US stock futures pointed to a mixed opening on the Wall Street on Friday.
Indian indices
Higher Dow Jones yesternight and strong Asian indices this morning helped Indian indices open a marginal 12 points up at 17531. Leveraging on previous two days’ gains, the market traded with a positive bias all through the day. Upgradation of India’s debt-rating outlook from “negative” to “stable” by Standard & Poor’s (S&P) rating services helped the cause. However, as aforesaid in the morning report, it languished within a tight band of 17502-17600 due to lack of triggers.
Buying in the Sensex components such as Reliance Industries and Bharti Airtel propelled the index to 17600 levels. The Sensex, which had gained nearly 380 points in the last three sessions, added 59 points to its kitty to close at 17,578 points. The Nifty closed 17 points up at 5263.
Market sentiment
The choppy session saw declining shares slightly outnumbering the advancing shares. Of 2,950 stocks traded on the BSE, 1,381 stocks (46.81%) advanced, whereas 1,459 (49.46%) stocks declined. Hundred and ten stocks remained unchanged.
Sectoral & stock screening
Despite trading in the narrow range, all the sectoral indices closed higher, except realty and IT. The BSE realty slid the most, by 0.95%, followed by BSE IT that down by 0.45%. The BSE Consumer Durables (CD) surged the most and topped the sectoral list by 1.09%, followed by BSE Oil & Gas that rose by 0.78%. Other sectors closed positive in the range of 0.16% - 0.57%.
The top-3 gainers were — Bharat Electronics that surged by 5.71%, Chambal Fertilisers that rose by 4% and Bharti Airtel that was up by 3.95%.
The top-3 losers were — Indiabulls Real Estate that slid by 3.06%, CESC that was down by 2.51% and IVRCL Infrastructure and Projects that declined by 2.43%.
Viewing volumes
The stocks that drew investors interest were — India’s second largest realty company, Unitech, was the most traded share with over 0.43 crore shares changing hands on the BSE, followed by Exide Industries (0.38 crore shares), wind power major — Suzlon Energy (0.33 crore shares), sugar manufacturer — Shree Renuka Sugars (0.24 crore shares) and natural resources company — Reliance Natural Resources (0.20 crore shares).
Thursday, March 18, 2010
UNITED BANK OF INDIA LOGS TEPID GAINS ON DEBUT:-
Settles at Rs 68.80 on BSE, a 3.93% premium over the IPO price
Shares of the state-run United Bank of India (UBI) settled at Rs 68.80 on BSE, a 3.93% premium over the initial public offer price of Rs 66.
The stock debuted at Rs 77, a 16.66% premium over its initial public offer price of Rs 66 per share. The stock hit a high of Rs 77 and low of Rs 68.10
The counter clocked volume of 2.82 crore shares on the BSE.
The state-run lender had priced initial public offer (IPO) at Rs 66 per share, at the upper end of the Rs 60-66 per share price band, raising Rs 324.98 crore. The bank offered the shares to retail investors and employees at 5% discount to the issue price.
The bank's IPO was subscribed 33.38 times and garnered bids for 166.88 crore shares as against 5 crore shares on offer. The bank's IPO remained open for bidding between 23 and 25 February 2010.
The UBI IPO saw high demand from institutional investors. The portion reserved for qualified institutional buyers (QIB) category was subscribed 47.08 times while that of non-institutional investors was subscribed 39.15 times. Retail investor portion was bid 9.80 times. However, employees quota remained undersubscribed and got bids for 13.25 lakh shares as against 25 lakh shares reserved for them
UBI has its presence predominantly in the north and north-east India. Following the IPO, the government's stake in the Kolkata-headquartered bank has declined to 84.20%, from 100%.
The bank would be utilising the IPO proceeds to expand its balance sheet and augment capital base
Shares of the state-run United Bank of India (UBI) settled at Rs 68.80 on BSE, a 3.93% premium over the initial public offer price of Rs 66.
The stock debuted at Rs 77, a 16.66% premium over its initial public offer price of Rs 66 per share. The stock hit a high of Rs 77 and low of Rs 68.10
The counter clocked volume of 2.82 crore shares on the BSE.
The state-run lender had priced initial public offer (IPO) at Rs 66 per share, at the upper end of the Rs 60-66 per share price band, raising Rs 324.98 crore. The bank offered the shares to retail investors and employees at 5% discount to the issue price.
The bank's IPO was subscribed 33.38 times and garnered bids for 166.88 crore shares as against 5 crore shares on offer. The bank's IPO remained open for bidding between 23 and 25 February 2010.
The UBI IPO saw high demand from institutional investors. The portion reserved for qualified institutional buyers (QIB) category was subscribed 47.08 times while that of non-institutional investors was subscribed 39.15 times. Retail investor portion was bid 9.80 times. However, employees quota remained undersubscribed and got bids for 13.25 lakh shares as against 25 lakh shares reserved for them
UBI has its presence predominantly in the north and north-east India. Following the IPO, the government's stake in the Kolkata-headquartered bank has declined to 84.20%, from 100%.
The bank would be utilising the IPO proceeds to expand its balance sheet and augment capital base
RISK AVERSION GLIDES ASIA LOWER:-
Continued worries on Greece, stronger dollar hurt sentiments
Risk aversion came back in action as the markets waited for more clarity on the Greece bailout talks. The country may turn for financial help from the International Monetary Fund and the Asian benchmarks slipped today on the continued worries that a sovereign default by Greece may rattle the other European economies as well. Commodities were under pressure and US dollar rallied; prompting investors to lock in some of gains after the US stocks hit two months highs yesterday. The economic data is doing little in the current scenario and even though most of the market participants think that Greece can muddle through this year, it is unlikely to manage to do so in the next year without the support of the EU. The conditionality of such a support is a different thing and right now, the most critical thing for the markets is clarity.
The DOW had ended in green yesterday but it failed to enthuse the Asian stocks. Japanese markets slipped as the exporters were dragged lower. A decline in business confidence also contributed to the weakness. The benchmark Nikkei 225 index declined 1% by the close.
Chinese stocks had a volatile outing. About four stocks rose for every three that dropped on the Shanghai Composite Index, which fell 4.39, or 0.1 percent, to 3,046.09 at the close. The Shanghai index has lost 7.1 percent this year as the government twice increased the proportion of deposits banks need to set aside as reserves and re-imposed a tax on home sales.
In other markets, New Zealand's NZX 50 rose 0.6% and Philippine stocks ended up 0.45.
However, the Australian stocks closed marginally higher on late buying. Defensive stocks such as telecommunications, utilities and consumer staples fared best although mining stocks capped their gains despite higher commodity prices. The benchmark S&P/ASX200 index was up 9.9 points, or 0.2 per cent, to 4863.1 points, while the broader All Ordinaries index added 10.8 points, or 0.22 per cent, to 4,877.7 points.
In Mumbai, the key benchmark indices surged to the day's highs at the fag end of the trade after global rating agency Standard & Poor's revised India's rating outlook to stable from negative. S&P affirmed the 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. Banking and metal stocks rose. The BSE 30-share Sensex was up provisionally up 44.46 points or 0.25%, up close to 115 points from the day's low. But the market breadth was negative.
On Wall Street, stocks saw moderate strength on Wednesday amid fairly encouraging economic reports. The major averages ended the day firmly in positive territory, reaching their best closing levels in over a year. The Dow advanced by 47.7 points or 0.5% to 10,733.7, the Nasdaq closed up 11.1 points or 0.5% at 2,389.1 and the S&P 500 ended up 6.8 points or 0.6% at 1,166.2.
The US dollar hovered under 1.3700 mark against the Euro though the currency gave some of the yesterday's gains away, backtracking from a high of 1.3647. Crude oil slipped under $82 for a while and rebounded. The commodity was last seen quoting at $82.39, down 54 cents from the previous close.
Risk aversion came back in action as the markets waited for more clarity on the Greece bailout talks. The country may turn for financial help from the International Monetary Fund and the Asian benchmarks slipped today on the continued worries that a sovereign default by Greece may rattle the other European economies as well. Commodities were under pressure and US dollar rallied; prompting investors to lock in some of gains after the US stocks hit two months highs yesterday. The economic data is doing little in the current scenario and even though most of the market participants think that Greece can muddle through this year, it is unlikely to manage to do so in the next year without the support of the EU. The conditionality of such a support is a different thing and right now, the most critical thing for the markets is clarity.
The DOW had ended in green yesterday but it failed to enthuse the Asian stocks. Japanese markets slipped as the exporters were dragged lower. A decline in business confidence also contributed to the weakness. The benchmark Nikkei 225 index declined 1% by the close.
Chinese stocks had a volatile outing. About four stocks rose for every three that dropped on the Shanghai Composite Index, which fell 4.39, or 0.1 percent, to 3,046.09 at the close. The Shanghai index has lost 7.1 percent this year as the government twice increased the proportion of deposits banks need to set aside as reserves and re-imposed a tax on home sales.
In other markets, New Zealand's NZX 50 rose 0.6% and Philippine stocks ended up 0.45.
However, the Australian stocks closed marginally higher on late buying. Defensive stocks such as telecommunications, utilities and consumer staples fared best although mining stocks capped their gains despite higher commodity prices. The benchmark S&P/ASX200 index was up 9.9 points, or 0.2 per cent, to 4863.1 points, while the broader All Ordinaries index added 10.8 points, or 0.22 per cent, to 4,877.7 points.
In Mumbai, the key benchmark indices surged to the day's highs at the fag end of the trade after global rating agency Standard & Poor's revised India's rating outlook to stable from negative. S&P affirmed the 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. Banking and metal stocks rose. The BSE 30-share Sensex was up provisionally up 44.46 points or 0.25%, up close to 115 points from the day's low. But the market breadth was negative.
On Wall Street, stocks saw moderate strength on Wednesday amid fairly encouraging economic reports. The major averages ended the day firmly in positive territory, reaching their best closing levels in over a year. The Dow advanced by 47.7 points or 0.5% to 10,733.7, the Nasdaq closed up 11.1 points or 0.5% at 2,389.1 and the S&P 500 ended up 6.8 points or 0.6% at 1,166.2.
The US dollar hovered under 1.3700 mark against the Euro though the currency gave some of the yesterday's gains away, backtracking from a high of 1.3647. Crude oil slipped under $82 for a while and rebounded. The commodity was last seen quoting at $82.39, down 54 cents from the previous close.
Wednesday, March 17, 2010
FED'S LOW - RATE PLEDGE BUOYS MARKET:-
Today's major news
Hindustan Unilever plans legal action against strikers at Haldia; the stock slides 1.28%
Reliance Industries eyes JV with Atlas Energy for Marcellus Shale; the stock is down by 0.02%
L&T gets Rs1013 crore order from ONGC; the stock surges 1.62%
Click here for more stories
Post-market summary
Global signals
The European markets were higher in the early trades on Wednesday, March 17, 2010, with banks benefiting from the US Federal Reserve's (Fed) move to keep the interest rates near zero for an extended period. At the time of writing this report, FTSE 100 was trading 0.60% higher.
All the Asian indices closed higher on Fed’s move. SGX Nifty closed 36 points higher.
US stock futures opened higher on Wednesday indicating a higher opening on the Wall Street.
Indian indices
Stocks continued to move up on the Fed’s and Japan’s decision to keep interest rates unchanged. On strong global cues, the benchmark indices extended their gains. The Indian indices opened almost flat at 17389, up by 6 points and did not see those levels again. In today’s session, BSE PSU, BSE HC and BSE Metal witnessed heavy buying.
In the mid session, the Sensex stood by near 1% to the two-month high at 17,550 levels and touched the day’s high at 17576, while the broad-based NSE index Nifty advanced by near 1.1% to 5,250. At the closing, the market erased some of its earlier gains, as the Sensex components like Maruti Suzuki, HUL and Tata Power under performed. The Sensex closed the session at 17490, 107 points or 0.61% higher, while Nifty finished the day at 5231, 34 points or 0.65% higher.
Market sentiment
The equities were witnessing a tremendous buying activity after the US and Japan decided to keep interest rates unchanged. Of the 2,928 shares traded on the BSE, 1250 (42%) shares advanced whereas 1586 (54%) shares declined, while ninety-two shares remained unchanged.
Sectoral & stock screening
All the 13 sectoral indices closed higher, except realty, auto, FMCG and consumer durables that fell for the day. PSU index topped the gainers list that was energised by ONGC, one of the 30-share index of Sensex that lifted the index by 2.04%, followed by Health Care index that rose by 1.66%.
The top 3 gainers included Hindustan Copper that rose by 18.71%, followed by NMDC that surged by 8.87% and MMTC that was up by 4.61%.
The top 3 losers included Shree Renuka Sugars that slid the most by 3.61%, followed by Jet Air India that was down by 3.30% and United Spirits that declined by 3.29%.
Viewing volumes
India’s second largest realty company, Unitech, was the most traded share with over 0.52 crore shares changing hands on the BSE, followed by steel maker — Ispat Industries (0.48 crore shares), wind power major — Suzlon Energy (0.44 crore shares), natural resources company — Reliance Natural Resources (0.34 crore shares) and copper maker — Hindustan Copper (0.31 crore shares).
Hindustan Unilever plans legal action against strikers at Haldia; the stock slides 1.28%
Reliance Industries eyes JV with Atlas Energy for Marcellus Shale; the stock is down by 0.02%
L&T gets Rs1013 crore order from ONGC; the stock surges 1.62%
Click here for more stories
Post-market summary
Global signals
The European markets were higher in the early trades on Wednesday, March 17, 2010, with banks benefiting from the US Federal Reserve's (Fed) move to keep the interest rates near zero for an extended period. At the time of writing this report, FTSE 100 was trading 0.60% higher.
All the Asian indices closed higher on Fed’s move. SGX Nifty closed 36 points higher.
US stock futures opened higher on Wednesday indicating a higher opening on the Wall Street.
Indian indices
Stocks continued to move up on the Fed’s and Japan’s decision to keep interest rates unchanged. On strong global cues, the benchmark indices extended their gains. The Indian indices opened almost flat at 17389, up by 6 points and did not see those levels again. In today’s session, BSE PSU, BSE HC and BSE Metal witnessed heavy buying.
In the mid session, the Sensex stood by near 1% to the two-month high at 17,550 levels and touched the day’s high at 17576, while the broad-based NSE index Nifty advanced by near 1.1% to 5,250. At the closing, the market erased some of its earlier gains, as the Sensex components like Maruti Suzuki, HUL and Tata Power under performed. The Sensex closed the session at 17490, 107 points or 0.61% higher, while Nifty finished the day at 5231, 34 points or 0.65% higher.
Market sentiment
The equities were witnessing a tremendous buying activity after the US and Japan decided to keep interest rates unchanged. Of the 2,928 shares traded on the BSE, 1250 (42%) shares advanced whereas 1586 (54%) shares declined, while ninety-two shares remained unchanged.
Sectoral & stock screening
All the 13 sectoral indices closed higher, except realty, auto, FMCG and consumer durables that fell for the day. PSU index topped the gainers list that was energised by ONGC, one of the 30-share index of Sensex that lifted the index by 2.04%, followed by Health Care index that rose by 1.66%.
The top 3 gainers included Hindustan Copper that rose by 18.71%, followed by NMDC that surged by 8.87% and MMTC that was up by 4.61%.
The top 3 losers included Shree Renuka Sugars that slid the most by 3.61%, followed by Jet Air India that was down by 3.30% and United Spirits that declined by 3.29%.
Viewing volumes
India’s second largest realty company, Unitech, was the most traded share with over 0.52 crore shares changing hands on the BSE, followed by steel maker — Ispat Industries (0.48 crore shares), wind power major — Suzlon Energy (0.44 crore shares), natural resources company — Reliance Natural Resources (0.34 crore shares) and copper maker — Hindustan Copper (0.31 crore shares).
Tuesday, March 16, 2010
NIFTY MOVES PAST 5,200.
The key benchmark indices hit their highest level in nearly two months in a late surge as encouraging advance tax figures of top Indian firms for Q4 March 2010 indicated better fourth quarter results. Higher European stocks aided the rally on the domestic bourses. Metal, capital goods, auto and consumer durables stocks rose. Two index heavyweights Reliance Industries and L&T surged. The market breadth was strong. The BSE 30-share Sensex was provisionally up 231.91 points or 1.35%, up close to 245 points from the day's low and off close to 20 points from the day's high.
After an initial rise the market pared gains in morning trade as some Asian markets reversed early gains. The market moved between positive and negative terrain near the flat line in mid-morning trade. The market nudged higher again in early afternoon trade. Stocks extended gains in afternoon trade. The market hit its highest level in nearly two months in mid-afternoon trade. It extended gains in late trade.
The stock exchanges have revised the settlement schedule due to a bank holiday today, 16 March 2010 on account of Gudi Padwa, the first day of the Marathi New Year. As a result, investors were not allowed to sell shares today which they had bought in the cash market on Monday, 15 March 2010.
The Q4 March 2010 advance tax payment numbers of top Indian firms were encouraging. Reliance Industries has paid Rs 770 crore as advance tax for the March quarter compared with Rs 365 crore a year ago. Infosys' tax outgo has doubled to Rs 250 crore from Rs 125 crore. Tata Consultancy Services paid Rs 178 crore, compared from Rs 53 crore earlier. State-run Union Bank of India paid Rs 185 crore compared with Rs 253 crore a year ago. ICICI Bank's Q3 advance tax stood at Rs 350 crore versus Rs 250 crore a year ago. Asian Paints paid Rs 60 crore, versus Rs 43 crore year earlier.
State Bank of India has paid Rs 1857 crore verses Rs 1810. HDFC paid Rs 280 crore, unchanged from a year earlier. Tata Motors paid Rs 115 crore versus Nil a year ago. Bank of Baroda paid Rs 300 crore verses Rs 280. Zee Entertainment Enterprises paid Rs 97 crore versus Rs 109. Tata Steel paid Rs 513 crore versus Rs 406 crore. L&T paid Rs 270 crore versus Rs 275 crore. Bajaj Auto paid Rs 177 crore versus Rs 60 crore. M&M paid Rs 235 crore versus nil a year earlier.
Cement maker ACC paid Rs 330 crore compared to Rs 340 crore a year ago. Ambuja Cement paid Rs 120 crore, compared with Rs 125 crore a year ago. Aditya Birla Group firm Grasim Industries paid Rs 216 crore as advance tax in the period under review, as compared to Rs 65 crore a year ago. Life Insurance Corp of India (LIC) has paid Rs 864 crore as advance tax for the March quarter, compared with Rs 810 crore year ago.
On the macro front, the headline inflation topped expectations and came within touching distance of double digits in February 2010, making a rate increase by the Reserve Bank all but inevitable at its scheduled April 2010 policy review. Annual wholesale price inflation accelerated to 9.89% in February, the highest since October 2008 and well above the Reserve Bank of India's end-March projection of 8.5% and the 8.56% January reading.
The inflation data comes on the heels of a 16.7% annual jump in industrial output in January, with the unexpectedly strong economic pickup also backing the case for the central bank to raise policy rates by at least 25 basis points. The December inflation figure was revised upwards to 8.1% from 7.3%. Rising inflation and the government's plan to borrow a record $100 billion in the fiscal year that starts 1 April 2010, most of which is expected in the first half, have weighed on bond prices.
The borrowing plan complicates the central bank's job as raising rates aggressively would also push up borrowing costs of the government.
India would be only the second Group of 20 country, after Australia, to raise interest rates as the global economy recovers from the financial crisis.
The high inflation was mainly due to the continued rise in food prices, which climbed 17.8% from a year earlier in February and central bank deputy governor Shyamala Gopinath said price growth should moderate over time. Inflation in manufacturing accelerated to 7.42% in February from 6.55% in January, indicating that inflation has now spilt over to the broader economy.
Coming back to stocks, equities have witnessed a good post-Budget rally driven by sustained buying by foreign funds since the presentation of the Union Budget 2010-2011 on 26 February 2010. As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 8847.36 crore this month, till 15 March 2010.
The stock market has applauded the Union Budget 2010-2011 due to its thrust on infrastructure development, government's pledge to reduce fiscal deficit over the next three years, a smaller-than-expected 2% hike in excise duties, and reduction in taxes for individuals which will boost disposable income. The Finance Minister has assumed a modest GDP of about 8% and inflation of about 4.5% for 2010-2011.
Going ahead, the key triggers for the stock market are structural reforms such as decontrol of petrol and diesel prices, targeting of food subsidies, and financial sector reforms such as increase in foreign direct investment in insurance sector.
Europe stocks rose on Tuesday with markets awaiting euro zone inflation and the German ZEW survey of investor confidence, along with a decision on interest rates from the Federal Reserve later. The key benchmark indices in France, Germany and UK rose by between 0.75% to 0.89%.
Asian shares turned mixed after a firm start on Tuesday ahead of a Federal Reserve policy meeting later in the global day and the Bank of Japan (BoJ) policy decision on Wednesday, 17 March 2010. The key benchmark indices in Japan, Hong Kong and South Korea fell by between 0.09% to 0.28%. But, the key benchmark indices in China, Singapore and Taiwan rose by between 0.12% to 0.80%.
The BoJ has maintained its benchmark unsecured overnight call loan rate at 0.1% since December 2008 -- the same month Fed policy makers cut their federal-funds rate target to a range of 0% to 0.25%. Japanese central bankers are expected to discuss additional liquidity-boosting steps at their two-day policy board meeting, which started Tuesday. They will likely focus on a proposal to double the scale of a lending facility introduced in December, according to recent media reports.
It is widely expected that the US Federal Reserve will keep the fed funds rate, its key lending rate, at a historic low near zero when it meets on Tuesday, 16 March 2010. That means investors and analysts will again pore over the economic assessment statement the Fed releases. They will be looking for changes to the Fed's wording and its members' voting patterns to get a sense of when rates might go up.
It could take several months of solid, significant economic growth before the Fed starts to tinker with the language of its statement or interest rates. Consistent job growth is probably the single biggest factor the Fed will look at when determining when to considering raising rates.
Trading in US index futures indicated that the Dow could rise 18 points at the opening bell on Tuesday, 16 March 2010.
After being down all day, the Dow Jones and S&P eked out some gains on Monday, 15 March 2010 led by Wal-Mart after Citigroup upgraded the stock to buy & raised the price target. Stocks had struggled throughout the session as the dollar gained after a warning from Moody's on US and other nations with triple A debt ratings. Moody's said its ratings remain intact but warned that credit risks have grown. There were also worries about tightening in China. The Dow Jones industrial average rose 17.46 points, or 0.16% to end at 10,642.15. The Standard & Poor's 500 Index edged up 0.52 point, or 0.05% to end at 1,150.51. The Nasdaq Composite Index lost 5.45 points, or 0.23% at 2,362.21.
Global economic recovery will be stronger than previously estimated this year, helped by robust growth in China and India, the OECD's Secretary General said on Monday.
Close home, the BSE 30-share Sensex was up 231.91 points or 1.35% to 17,396.90 as per provisional figures. The barometer index rose 251.56 points at the high of 17,416.55 in late trade, its highest since 21 January 2010. The Sensex fell 14.93 points at the day's low of 17,150.06 in morning trade.
The S&P CNX Nifty was up 73.15 points or 1.43% at 5202.05 as per provisional figures. It hit the day's high of 5209.25 in late trade, its highest since 21 January 2010.
The BSE Mid-Cap index rose 1.08% and the BSE Small-Cap index rose 1.27%.
BSE clocked a turnover of Rs 3729 crore, higher than Rs 3408.08 crore on Monday, 15 March 2010.
The market breadth indicating the overall health of the market was strong. On BSE, 1777 shares advanced as compared with 1057 that declined. A total of 75 shares remained unchanged.
Among the 30-member Sensex pack, 23 rose while the rest fell.
Index heavyweight Reliance Industries (RIL) rose 3.68%, extending Monday's 0.64% gains. As per the market buzz, RIL's Q4 advance tax surged to Rs 770 crore in Q4 March 2010 from Rs Rs 365 crore a year ago.
Reliance Industries on Sunday announced a sports and entertainment joint venture with IMG Worldwide, a global leader in sports marketing and management. The equal venture, IMG Reliance, will set up modern infrastructure and coaching facilities for sports and create and operate sports and entertainment assets including celebrity management.
Consumer durables stocks rose on hopes rise in disposable income following widening of tax slabs in the Union Budget 2010-11 may boost sales. Titan Industries, Videocon Industries, Blue Star, Lloyd Electric, Rajesh Exports rose by between 0.26% to 3.01%.
Most auto stocks rose on higher advance tax payment in the fourth installment. India's largest tractor maker by sales Mahindra & Mahindra (M&M) rose 3.13%. The company paid Rs 235 crore in advance tax in Q4 March 2010 versus nil payment a year earlier.
India's largest commercial vehicle maker by sales Tata Motors' rose 2.26%, extending Monday's 0.91% gains after group global sales rose 59% in February from a year earlier, the company said in a statement on Monday.
India's largest car maker by sales Maruti Suzuki India rose 1.03% on bargain hunting after falling in the last four days on fears increase in competition may dent sales. Last week Ford India entered the small car market with 'Figo'. Maruti Suzuki India, last week said that Japanese auto giant Nissan has placed orders for 35,000 units of its small car A- Star for 2010-11 to sell it in the European market. Nissan sources the A-Star from Maruti's Manesar facility and sells it in the European market as 'Pixo'.
India's largest bike maker by sales Hero Honda Motors was flat. Hero Honda has shortlisted Karnataka as one of the states for setting up its fourth manufacturing plant. Hero Honda Motors has reportedly proposed an investment of Rs 2,000 crore for the upcoming plant.
A rise in raw material prices coupled with costs associated with new emission norms could force them to increase prices further, which may hit volumes. The government raised excise duties on large cars and sport utility vehicles by 2%, which was immediately passed on by vehicles makers, including top carmaker Maruti Suzuki and utility vehicle makers Mahindra & Mahindra and Tata Motors. From 1 April 2010, all vehicles will have to comply with Euro IV emission norms across 13 major cities, adding to costs and setting the stage for another round of price hikes.
ndia's largest engineering & construction firm by sales Larsen & Toubro (L&T) rose 3.52%. The company on Monday said that it won orders worth Rs 2000 crore. L&T's advance tax payment fell marginally to Rs 270 crore in Q4 March 2010 from Rs 275 crore a year earlier.
Among other capital goods stocks, ABB, Bharat Heavy Electricals, BEML, SKF India and Crompton Greaves rose by between 0.28% to 1.85%.
Metal stocks rose on strong domestic demand. Steel Authority of India, Sterlite Industries, JSW Steel, Hindalco Industries rose by between 0.1% to 2.69%.
India's largest steel maker by sales Tata Steel rose 3.35%, extending Monday's 0.42% gains. Its Q4 advance tax payment rose to Rs 513 crore from Rs 406 crore a year earlier.
Gujarat NRE Coke gained 1.08%, after one of the promoter group companies revoked a substantial portion of the pledged shares
IVRCL Infrastructures & Projects advanced 3.40%, as investors scrambled to accumulate the stock ahead of the record date for a liberal 1:1 bonus issue.
NIIT Technologies rose 1.06%, after the company said it will implement a cargo ground handling solution for PT JAS in Indonesia.
Nucleus Software Exports gained 1.84%, after the company secured an export order for one its software products for an undisclosed sum..
After an initial rise the market pared gains in morning trade as some Asian markets reversed early gains. The market moved between positive and negative terrain near the flat line in mid-morning trade. The market nudged higher again in early afternoon trade. Stocks extended gains in afternoon trade. The market hit its highest level in nearly two months in mid-afternoon trade. It extended gains in late trade.
The stock exchanges have revised the settlement schedule due to a bank holiday today, 16 March 2010 on account of Gudi Padwa, the first day of the Marathi New Year. As a result, investors were not allowed to sell shares today which they had bought in the cash market on Monday, 15 March 2010.
The Q4 March 2010 advance tax payment numbers of top Indian firms were encouraging. Reliance Industries has paid Rs 770 crore as advance tax for the March quarter compared with Rs 365 crore a year ago. Infosys' tax outgo has doubled to Rs 250 crore from Rs 125 crore. Tata Consultancy Services paid Rs 178 crore, compared from Rs 53 crore earlier. State-run Union Bank of India paid Rs 185 crore compared with Rs 253 crore a year ago. ICICI Bank's Q3 advance tax stood at Rs 350 crore versus Rs 250 crore a year ago. Asian Paints paid Rs 60 crore, versus Rs 43 crore year earlier.
State Bank of India has paid Rs 1857 crore verses Rs 1810. HDFC paid Rs 280 crore, unchanged from a year earlier. Tata Motors paid Rs 115 crore versus Nil a year ago. Bank of Baroda paid Rs 300 crore verses Rs 280. Zee Entertainment Enterprises paid Rs 97 crore versus Rs 109. Tata Steel paid Rs 513 crore versus Rs 406 crore. L&T paid Rs 270 crore versus Rs 275 crore. Bajaj Auto paid Rs 177 crore versus Rs 60 crore. M&M paid Rs 235 crore versus nil a year earlier.
Cement maker ACC paid Rs 330 crore compared to Rs 340 crore a year ago. Ambuja Cement paid Rs 120 crore, compared with Rs 125 crore a year ago. Aditya Birla Group firm Grasim Industries paid Rs 216 crore as advance tax in the period under review, as compared to Rs 65 crore a year ago. Life Insurance Corp of India (LIC) has paid Rs 864 crore as advance tax for the March quarter, compared with Rs 810 crore year ago.
On the macro front, the headline inflation topped expectations and came within touching distance of double digits in February 2010, making a rate increase by the Reserve Bank all but inevitable at its scheduled April 2010 policy review. Annual wholesale price inflation accelerated to 9.89% in February, the highest since October 2008 and well above the Reserve Bank of India's end-March projection of 8.5% and the 8.56% January reading.
The inflation data comes on the heels of a 16.7% annual jump in industrial output in January, with the unexpectedly strong economic pickup also backing the case for the central bank to raise policy rates by at least 25 basis points. The December inflation figure was revised upwards to 8.1% from 7.3%. Rising inflation and the government's plan to borrow a record $100 billion in the fiscal year that starts 1 April 2010, most of which is expected in the first half, have weighed on bond prices.
The borrowing plan complicates the central bank's job as raising rates aggressively would also push up borrowing costs of the government.
India would be only the second Group of 20 country, after Australia, to raise interest rates as the global economy recovers from the financial crisis.
The high inflation was mainly due to the continued rise in food prices, which climbed 17.8% from a year earlier in February and central bank deputy governor Shyamala Gopinath said price growth should moderate over time. Inflation in manufacturing accelerated to 7.42% in February from 6.55% in January, indicating that inflation has now spilt over to the broader economy.
Coming back to stocks, equities have witnessed a good post-Budget rally driven by sustained buying by foreign funds since the presentation of the Union Budget 2010-2011 on 26 February 2010. As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 8847.36 crore this month, till 15 March 2010.
The stock market has applauded the Union Budget 2010-2011 due to its thrust on infrastructure development, government's pledge to reduce fiscal deficit over the next three years, a smaller-than-expected 2% hike in excise duties, and reduction in taxes for individuals which will boost disposable income. The Finance Minister has assumed a modest GDP of about 8% and inflation of about 4.5% for 2010-2011.
Going ahead, the key triggers for the stock market are structural reforms such as decontrol of petrol and diesel prices, targeting of food subsidies, and financial sector reforms such as increase in foreign direct investment in insurance sector.
Europe stocks rose on Tuesday with markets awaiting euro zone inflation and the German ZEW survey of investor confidence, along with a decision on interest rates from the Federal Reserve later. The key benchmark indices in France, Germany and UK rose by between 0.75% to 0.89%.
Asian shares turned mixed after a firm start on Tuesday ahead of a Federal Reserve policy meeting later in the global day and the Bank of Japan (BoJ) policy decision on Wednesday, 17 March 2010. The key benchmark indices in Japan, Hong Kong and South Korea fell by between 0.09% to 0.28%. But, the key benchmark indices in China, Singapore and Taiwan rose by between 0.12% to 0.80%.
The BoJ has maintained its benchmark unsecured overnight call loan rate at 0.1% since December 2008 -- the same month Fed policy makers cut their federal-funds rate target to a range of 0% to 0.25%. Japanese central bankers are expected to discuss additional liquidity-boosting steps at their two-day policy board meeting, which started Tuesday. They will likely focus on a proposal to double the scale of a lending facility introduced in December, according to recent media reports.
It is widely expected that the US Federal Reserve will keep the fed funds rate, its key lending rate, at a historic low near zero when it meets on Tuesday, 16 March 2010. That means investors and analysts will again pore over the economic assessment statement the Fed releases. They will be looking for changes to the Fed's wording and its members' voting patterns to get a sense of when rates might go up.
It could take several months of solid, significant economic growth before the Fed starts to tinker with the language of its statement or interest rates. Consistent job growth is probably the single biggest factor the Fed will look at when determining when to considering raising rates.
Trading in US index futures indicated that the Dow could rise 18 points at the opening bell on Tuesday, 16 March 2010.
After being down all day, the Dow Jones and S&P eked out some gains on Monday, 15 March 2010 led by Wal-Mart after Citigroup upgraded the stock to buy & raised the price target. Stocks had struggled throughout the session as the dollar gained after a warning from Moody's on US and other nations with triple A debt ratings. Moody's said its ratings remain intact but warned that credit risks have grown. There were also worries about tightening in China. The Dow Jones industrial average rose 17.46 points, or 0.16% to end at 10,642.15. The Standard & Poor's 500 Index edged up 0.52 point, or 0.05% to end at 1,150.51. The Nasdaq Composite Index lost 5.45 points, or 0.23% at 2,362.21.
Global economic recovery will be stronger than previously estimated this year, helped by robust growth in China and India, the OECD's Secretary General said on Monday.
Close home, the BSE 30-share Sensex was up 231.91 points or 1.35% to 17,396.90 as per provisional figures. The barometer index rose 251.56 points at the high of 17,416.55 in late trade, its highest since 21 January 2010. The Sensex fell 14.93 points at the day's low of 17,150.06 in morning trade.
The S&P CNX Nifty was up 73.15 points or 1.43% at 5202.05 as per provisional figures. It hit the day's high of 5209.25 in late trade, its highest since 21 January 2010.
The BSE Mid-Cap index rose 1.08% and the BSE Small-Cap index rose 1.27%.
BSE clocked a turnover of Rs 3729 crore, higher than Rs 3408.08 crore on Monday, 15 March 2010.
The market breadth indicating the overall health of the market was strong. On BSE, 1777 shares advanced as compared with 1057 that declined. A total of 75 shares remained unchanged.
Among the 30-member Sensex pack, 23 rose while the rest fell.
Index heavyweight Reliance Industries (RIL) rose 3.68%, extending Monday's 0.64% gains. As per the market buzz, RIL's Q4 advance tax surged to Rs 770 crore in Q4 March 2010 from Rs Rs 365 crore a year ago.
Reliance Industries on Sunday announced a sports and entertainment joint venture with IMG Worldwide, a global leader in sports marketing and management. The equal venture, IMG Reliance, will set up modern infrastructure and coaching facilities for sports and create and operate sports and entertainment assets including celebrity management.
Consumer durables stocks rose on hopes rise in disposable income following widening of tax slabs in the Union Budget 2010-11 may boost sales. Titan Industries, Videocon Industries, Blue Star, Lloyd Electric, Rajesh Exports rose by between 0.26% to 3.01%.
Most auto stocks rose on higher advance tax payment in the fourth installment. India's largest tractor maker by sales Mahindra & Mahindra (M&M) rose 3.13%. The company paid Rs 235 crore in advance tax in Q4 March 2010 versus nil payment a year earlier.
India's largest commercial vehicle maker by sales Tata Motors' rose 2.26%, extending Monday's 0.91% gains after group global sales rose 59% in February from a year earlier, the company said in a statement on Monday.
India's largest car maker by sales Maruti Suzuki India rose 1.03% on bargain hunting after falling in the last four days on fears increase in competition may dent sales. Last week Ford India entered the small car market with 'Figo'. Maruti Suzuki India, last week said that Japanese auto giant Nissan has placed orders for 35,000 units of its small car A- Star for 2010-11 to sell it in the European market. Nissan sources the A-Star from Maruti's Manesar facility and sells it in the European market as 'Pixo'.
India's largest bike maker by sales Hero Honda Motors was flat. Hero Honda has shortlisted Karnataka as one of the states for setting up its fourth manufacturing plant. Hero Honda Motors has reportedly proposed an investment of Rs 2,000 crore for the upcoming plant.
A rise in raw material prices coupled with costs associated with new emission norms could force them to increase prices further, which may hit volumes. The government raised excise duties on large cars and sport utility vehicles by 2%, which was immediately passed on by vehicles makers, including top carmaker Maruti Suzuki and utility vehicle makers Mahindra & Mahindra and Tata Motors. From 1 April 2010, all vehicles will have to comply with Euro IV emission norms across 13 major cities, adding to costs and setting the stage for another round of price hikes.
ndia's largest engineering & construction firm by sales Larsen & Toubro (L&T) rose 3.52%. The company on Monday said that it won orders worth Rs 2000 crore. L&T's advance tax payment fell marginally to Rs 270 crore in Q4 March 2010 from Rs 275 crore a year earlier.
Among other capital goods stocks, ABB, Bharat Heavy Electricals, BEML, SKF India and Crompton Greaves rose by between 0.28% to 1.85%.
Metal stocks rose on strong domestic demand. Steel Authority of India, Sterlite Industries, JSW Steel, Hindalco Industries rose by between 0.1% to 2.69%.
India's largest steel maker by sales Tata Steel rose 3.35%, extending Monday's 0.42% gains. Its Q4 advance tax payment rose to Rs 513 crore from Rs 406 crore a year earlier.
Gujarat NRE Coke gained 1.08%, after one of the promoter group companies revoked a substantial portion of the pledged shares
IVRCL Infrastructures & Projects advanced 3.40%, as investors scrambled to accumulate the stock ahead of the record date for a liberal 1:1 bonus issue.
NIIT Technologies rose 1.06%, after the company said it will implement a cargo ground handling solution for PT JAS in Indonesia.
Nucleus Software Exports gained 1.84%, after the company secured an export order for one its software products for an undisclosed sum..
PERSISTENT SYSTEMS (INDIA)IPO ANALYSIS.
Focused on outsourced software product development services
The company has good track record, except for the past few quarters, and holds good growth potential
Persistent Systems (India), promoted by technocrat, Dr Anand Deshpande, is one of the leading players in outsourced software product development services. The company designs, develops and maintains software systems and solutions, creates new applications and enhance the functionality of its customers' existing software products. Currently, the company is present in the telecom & wireless, life sciences & healthcare and infrastructure & systems space. It has been working on new technologies like cloud computing, analytics, enterprise mobility and enterprise collaboration. Along with services, the company has been acquiring intellectual property (IP) from its customers, sharing revenue with the clients. Currently, this stream contributes to about 7% of the revenue.
As of December 31, 2009, the company had added 251 new customers (net) since April 1, 2007, excluding one-time customers for license sales with a number of active clients at 270 clients. Top client contributed 9.98% and top 10 clients contributed 41.27% of the revenue for the nine months ended December 2009. The repeat business for the company is in and around the 90% levels.
The company had 4,639 employees as of January 2010. It added 430 employees (net) in FY 2010 till January 2010. The company is operating at high offshore levels. The offshore share of revenue is at 89.63% for the quarter ended December 2009 and was at 85.79% for the year ended March 2009. Time & material (T&M) contracts contribute 76% of the revenue, fixed price contributed 17.1%, and licensing products 7% for the nine months ended December 2009. For the year ended March 2009, T&M contracts contributed 80.5% of the revenue, fixed price 14.3%, and licensing products 5.2%.
Geographically, for the nine months ended December 2009, US & Canada contributed 84% of the revenue of the company, Europe contributed 9%, and Asia Pacific (APAC) contributed 7% of revenue. For the year ended March 2009, US & Canada accounted for 87% of the revenue of the company, Europe contributed 9%, and Asia Pacific (APAC) contributed 4%.
As far as industry verticals are concerned, a major portion of the revenue accrues from independent software vendors (ISVs), which contributed 47% of the revenue, telecom contributed 24%, and practices, enterprise & solutions contributed 29% for the nine months ended December 2009.
The issue includes offer for sale of about 12.81 lakh shares by former employees of the company. Of the net proceeds of the issue, about Rs 76.02 crore would be used towards expansion of existing facilities at Nagpur and Hinjewadi, Pune, taking the total capacity at the two locations to 4,200 seats; about Rs 2.96 crore would be used towards fit-outs at the premises leased in SEZ at Hyderabad; and Rs 20.45 crore towards hardware at facilities. Post commissioning, the company would have a seat capacity of about 7,500 seats. It has facilities at Nagpur, Pune, Goa and Hyderabad.
Strengths
* International Data Corporation (IDC), a market research and analysis firm specializing in information technology, telecommunications and consumer technology markets, forecasts a five-year compound annual growth rate (CAGR) of 14% for research & development/ product engineering (R&D/PE) services, reaching an estimated US$ 65.7 billion by 2013. IDC defines R&D/PE services as the taking over of the R&D of a product in the company's value chain (in part or full) by a third-party services organization.
* Revenues have grown at a fast clip except in the nine months ended December 2009. Revenues reported a compounded annual growth rate (CAGR) of 40% in rupee terms and 38% in US dollar terms for the period FY2006 – 2009. Impacted by the slowdown, the revenues for the nine months period ended December 2009 were down 8.5% in US dollar terms and 3.4% in rupee terms.
* Along with services, the company, with expertise in developing products, is looking at growing its IP. It has been acquiring IP from its clientele and investing in them and selling on a revenue share basis. The share of revenue from IP licensing increased from 1.5% in FY2007 to 7% for the nine months ended December 2009. The margins from this segment are higher than services margins.
Weaknesses
* With the sunset clause expiring on March 31, 2011, the tax rate applicable for the company would increase to 20%– 25%, up from the current 6.5%. It would be at 9% for FY2010 and FY2011, and would move up to 20-25% post expiry of the sunset clause in FY2012. The capital expenditure that the company has undertaken is not in SEZ, except for about Rs 2.96 crore at the Hyderabad facility, currently a 200-seater expandable to 1,000 seats. This would still be only about 20% of the business.
* The outsourced product development (OPD) market is very competitive. Competition comes from OPD centric players, divisions of large IT companies (Indian & multinational), offshore providers in other low cost countries. Of the various IT services, the OPD services are highly prone to reduction in spend as companies cut down on launch of new products in times of economic slowdown.
Valuation
For the nine months ended December 2009, the company reported a dip in revenues of 8.5% in US dollar terms to US$ 89.98 million and 3.4% in rupee terms to Rs 429.41 crore mainly due to slowdown in the global economy. As per the management, the second half of FY2009 and the first half of FY2010 saw the impact of global economic slowdown and cut in billing rates. However, for the quarter ended December 2009, the company reported very good numbers, with sales of Rs 158.36 crore, operating profit margin of 24.7%, and net profit of Rs 37.01 crore (46% of the nine months net profit).
For FY2009, the company reported forex loss of Rs 87.40 crore, which included MTM losses on hedges of Rs 16.27 crore, forex loss on cancellation of forward contracts of Rs 25.87 crore, and forex loss from lower realisation of Rs 45.26 crore. The company has changed its hedging policy and is now taking hedges of about 40-60% of the net receivables for 12 months forward. It has hedges of US$ 77.75 million at Rs 48.5/US$.
At the price band of Rs 290 – Rs 310 and consolidated TTM EPS of Rs 24.7, PE works out to 11.7 – 12.6 times. Excluding MTM losses and forex loss on cancellation of forward contracts of Rs 18.87 crore, the consolidated TTM EPS moves up to Rs 29.4 and PE works out to 9.9 – 10.5 times. There is no direct comparable company. But Mindtree, which has 45% of revenue contribution from product engineering services, is trading at TTM PE of 12.2 times. Geometric, which has 37% of its revenue accruing from OPD, is trading at a consolidated TTM PE of 24 times. On nine-month annualized basis, it is trading at 8.4 times.
The company has good track record, except for the past few quarters, and holds good growth potential
Persistent Systems (India), promoted by technocrat, Dr Anand Deshpande, is one of the leading players in outsourced software product development services. The company designs, develops and maintains software systems and solutions, creates new applications and enhance the functionality of its customers' existing software products. Currently, the company is present in the telecom & wireless, life sciences & healthcare and infrastructure & systems space. It has been working on new technologies like cloud computing, analytics, enterprise mobility and enterprise collaboration. Along with services, the company has been acquiring intellectual property (IP) from its customers, sharing revenue with the clients. Currently, this stream contributes to about 7% of the revenue.
As of December 31, 2009, the company had added 251 new customers (net) since April 1, 2007, excluding one-time customers for license sales with a number of active clients at 270 clients. Top client contributed 9.98% and top 10 clients contributed 41.27% of the revenue for the nine months ended December 2009. The repeat business for the company is in and around the 90% levels.
The company had 4,639 employees as of January 2010. It added 430 employees (net) in FY 2010 till January 2010. The company is operating at high offshore levels. The offshore share of revenue is at 89.63% for the quarter ended December 2009 and was at 85.79% for the year ended March 2009. Time & material (T&M) contracts contribute 76% of the revenue, fixed price contributed 17.1%, and licensing products 7% for the nine months ended December 2009. For the year ended March 2009, T&M contracts contributed 80.5% of the revenue, fixed price 14.3%, and licensing products 5.2%.
Geographically, for the nine months ended December 2009, US & Canada contributed 84% of the revenue of the company, Europe contributed 9%, and Asia Pacific (APAC) contributed 7% of revenue. For the year ended March 2009, US & Canada accounted for 87% of the revenue of the company, Europe contributed 9%, and Asia Pacific (APAC) contributed 4%.
As far as industry verticals are concerned, a major portion of the revenue accrues from independent software vendors (ISVs), which contributed 47% of the revenue, telecom contributed 24%, and practices, enterprise & solutions contributed 29% for the nine months ended December 2009.
The issue includes offer for sale of about 12.81 lakh shares by former employees of the company. Of the net proceeds of the issue, about Rs 76.02 crore would be used towards expansion of existing facilities at Nagpur and Hinjewadi, Pune, taking the total capacity at the two locations to 4,200 seats; about Rs 2.96 crore would be used towards fit-outs at the premises leased in SEZ at Hyderabad; and Rs 20.45 crore towards hardware at facilities. Post commissioning, the company would have a seat capacity of about 7,500 seats. It has facilities at Nagpur, Pune, Goa and Hyderabad.
Strengths
* International Data Corporation (IDC), a market research and analysis firm specializing in information technology, telecommunications and consumer technology markets, forecasts a five-year compound annual growth rate (CAGR) of 14% for research & development/ product engineering (R&D/PE) services, reaching an estimated US$ 65.7 billion by 2013. IDC defines R&D/PE services as the taking over of the R&D of a product in the company's value chain (in part or full) by a third-party services organization.
* Revenues have grown at a fast clip except in the nine months ended December 2009. Revenues reported a compounded annual growth rate (CAGR) of 40% in rupee terms and 38% in US dollar terms for the period FY2006 – 2009. Impacted by the slowdown, the revenues for the nine months period ended December 2009 were down 8.5% in US dollar terms and 3.4% in rupee terms.
* Along with services, the company, with expertise in developing products, is looking at growing its IP. It has been acquiring IP from its clientele and investing in them and selling on a revenue share basis. The share of revenue from IP licensing increased from 1.5% in FY2007 to 7% for the nine months ended December 2009. The margins from this segment are higher than services margins.
Weaknesses
* With the sunset clause expiring on March 31, 2011, the tax rate applicable for the company would increase to 20%– 25%, up from the current 6.5%. It would be at 9% for FY2010 and FY2011, and would move up to 20-25% post expiry of the sunset clause in FY2012. The capital expenditure that the company has undertaken is not in SEZ, except for about Rs 2.96 crore at the Hyderabad facility, currently a 200-seater expandable to 1,000 seats. This would still be only about 20% of the business.
* The outsourced product development (OPD) market is very competitive. Competition comes from OPD centric players, divisions of large IT companies (Indian & multinational), offshore providers in other low cost countries. Of the various IT services, the OPD services are highly prone to reduction in spend as companies cut down on launch of new products in times of economic slowdown.
Valuation
For the nine months ended December 2009, the company reported a dip in revenues of 8.5% in US dollar terms to US$ 89.98 million and 3.4% in rupee terms to Rs 429.41 crore mainly due to slowdown in the global economy. As per the management, the second half of FY2009 and the first half of FY2010 saw the impact of global economic slowdown and cut in billing rates. However, for the quarter ended December 2009, the company reported very good numbers, with sales of Rs 158.36 crore, operating profit margin of 24.7%, and net profit of Rs 37.01 crore (46% of the nine months net profit).
For FY2009, the company reported forex loss of Rs 87.40 crore, which included MTM losses on hedges of Rs 16.27 crore, forex loss on cancellation of forward contracts of Rs 25.87 crore, and forex loss from lower realisation of Rs 45.26 crore. The company has changed its hedging policy and is now taking hedges of about 40-60% of the net receivables for 12 months forward. It has hedges of US$ 77.75 million at Rs 48.5/US$.
At the price band of Rs 290 – Rs 310 and consolidated TTM EPS of Rs 24.7, PE works out to 11.7 – 12.6 times. Excluding MTM losses and forex loss on cancellation of forward contracts of Rs 18.87 crore, the consolidated TTM EPS moves up to Rs 29.4 and PE works out to 9.9 – 10.5 times. There is no direct comparable company. But Mindtree, which has 45% of revenue contribution from product engineering services, is trading at TTM PE of 12.2 times. Geometric, which has 37% of its revenue accruing from OPD, is trading at a consolidated TTM PE of 24 times. On nine-month annualized basis, it is trading at 8.4 times.
Monday, March 15, 2010
SENSEX ENDS FLAT WITH NEGETIVE BIAS :-
Indian markets continued to fall for the second day on Monday. The benchmark index Sensex ended the volatile session on a flat note with negative bias as sell-off was seen in PSU, capital goods and banking stocks, while IT and teck gained marginally. Broader markets also traded flat. It opened in the red zone amid negative Asian shares and continued to trade lower on profit booking seen in frontliners. In the second half, index recovered by moving into the positive terrain on select buying amid volatility. Finally, it closed on a quite note after touching a high of 17,195.49 and low of 17,061.14.
At the close, the 30-share benchmark index, BSE Sensex ended flat with a decline of 1.63 points or 0.01% at 17,164.99, 14 components registering drop. Meanwhile, the broad based NSE Nifty went down by 8.10 or 0.16% at 5,128.90 with 30 components registering drop.
On global front, European stocks dropped and US index futures fell on concern China will take more steps to cool its economy and as Moody`s Investors Service said the US and UK are closer to losing their AAA credit ratings. Whereas, Asian stocks fell for the first time in three days, led by energy and commodity producers, on concern China will boost measures to cool economic growth that has been driving a global recovery.
Meanwhile, Wholesale price based inflation rose to 9.89% in February from 8.56% in the previous month due to increase in prices of certain food items such as sugar and the hike in excise duty on fuel announced last month.
Sensex Movers
ICICI Bank contributed fall of 19.84 points in the Sensex. It was followed by Housing Development Finance Corporation (13.48 points), State Bank Of India (11.15 points), Mahindra & Mahindra (8.99 points) and Oil & Natural Gas Corporation (8.54 points).
However, Infosys Technologies contributed rise of 18.39 points in the Sensex. It was followed by Reliance Industries (14.02 points), Tata Consultancy Services (13.96 points), Hindustan Unilever (8.27 points) and Wipro (7.44 points).
Biggest gainers in the 30-share index were Wipro (2.71%), Hindustan Unilever (2.62%), Jaiprakash Associates (2.38%), Tata Consultancy Services (2.27%), Infosys Technologies (1.07%), and Tata Motors (0.91%).
On the other hand, MAahindra & Mahindra (2.77%), Reliance Infrastructure (2.33%), Sun Pharmaceutical Industries (1.77%), ACC (1.61%), Housing Development Finance Corporation (1.46%), and State Bank Of India (1.45%) were the major losers in the Sensex.
Mid & Small-cap Space
The BSE Midcap index was at 6651.26 down by 49.59 points or by 0.74%. The major losers were Reliance MediaWorks (2.32%), Aban Offshore (1.93%), A I A Engineering (1.39%), Alfa-Laval (India) (1.02%) and Core Projects and Technologies (0.15%).
The BSE Smallcap index was at 8362.2 down by 70.29 points or by 0.83%. The major losers were Abhishek Industries (2.57%), Aarti Industries (1.95%), A B G Shipyard (1.22%), Action Construction Equipment (1%) and A B G Infralogistics (0.27%).
Sectors in Limelight
The Capital Goods index was at 13,634.19, down by 149.84 points or by 1.09%. The major losers were A B B (2.43%), BEML (1.92%), A I A Engineering (1.39%), Bharat Electronics (1.31%) and Bharat Bijlee (1.11%).
The Bankex index was at 10,235.13, down by 106.07 points or by 1.03%. The major losers were Federal Bank (2.78%), Canara Bank (1.98%), Bank Of India (1.77%), Allahabad Bank (1.1%) and Bank Of Baroda (0.9%).
The Realty index was at 3,361.10, down by 26.82 points or by 0.79%. The major losers were Indiabulls Real Estate (2.84%), Mahindra Lifespace Developers (1.36%), Anant Raj Industries (1.13%), Ansal Properties and Infrastructure (1.11%) and D L F (0.58%).
On the other hand, the IT index was at 5,411.69, up by 73.34 points or by 1.37%. The major gainers were H C L Technologies (2.7%), Tata Consultancy Services (2.27%), Oracle Financial Services Software (1.15%), Infosys Technologies (1.07%) and Patni Computer Systems (0.78%).
Market Breadth
Market breadth was negative with 989 advances against 1,860 declines.
Value and Volume Toppers
Man Infraconstruction topped the value chart on the BSE with a turnover of Rs. 1,266.77 million. It was followed by Texmo Pipes and Products (Rs. 1,008.24 million), Aban Offshore (Rs. 967.96 million) and Shree Renuka Sugars (Rs. 768.86 million).
The volume chart was led by Cals Refineries with trades of over 27.54 million shares. It was followed by Shree Renuka Sugars (10.05 million), Tamboli Capital (8.55 million) and Texmo Pipes and Products (6.60 million).
At the close, the 30-share benchmark index, BSE Sensex ended flat with a decline of 1.63 points or 0.01% at 17,164.99, 14 components registering drop. Meanwhile, the broad based NSE Nifty went down by 8.10 or 0.16% at 5,128.90 with 30 components registering drop.
On global front, European stocks dropped and US index futures fell on concern China will take more steps to cool its economy and as Moody`s Investors Service said the US and UK are closer to losing their AAA credit ratings. Whereas, Asian stocks fell for the first time in three days, led by energy and commodity producers, on concern China will boost measures to cool economic growth that has been driving a global recovery.
Meanwhile, Wholesale price based inflation rose to 9.89% in February from 8.56% in the previous month due to increase in prices of certain food items such as sugar and the hike in excise duty on fuel announced last month.
Sensex Movers
ICICI Bank contributed fall of 19.84 points in the Sensex. It was followed by Housing Development Finance Corporation (13.48 points), State Bank Of India (11.15 points), Mahindra & Mahindra (8.99 points) and Oil & Natural Gas Corporation (8.54 points).
However, Infosys Technologies contributed rise of 18.39 points in the Sensex. It was followed by Reliance Industries (14.02 points), Tata Consultancy Services (13.96 points), Hindustan Unilever (8.27 points) and Wipro (7.44 points).
Biggest gainers in the 30-share index were Wipro (2.71%), Hindustan Unilever (2.62%), Jaiprakash Associates (2.38%), Tata Consultancy Services (2.27%), Infosys Technologies (1.07%), and Tata Motors (0.91%).
On the other hand, MAahindra & Mahindra (2.77%), Reliance Infrastructure (2.33%), Sun Pharmaceutical Industries (1.77%), ACC (1.61%), Housing Development Finance Corporation (1.46%), and State Bank Of India (1.45%) were the major losers in the Sensex.
Mid & Small-cap Space
The BSE Midcap index was at 6651.26 down by 49.59 points or by 0.74%. The major losers were Reliance MediaWorks (2.32%), Aban Offshore (1.93%), A I A Engineering (1.39%), Alfa-Laval (India) (1.02%) and Core Projects and Technologies (0.15%).
The BSE Smallcap index was at 8362.2 down by 70.29 points or by 0.83%. The major losers were Abhishek Industries (2.57%), Aarti Industries (1.95%), A B G Shipyard (1.22%), Action Construction Equipment (1%) and A B G Infralogistics (0.27%).
Sectors in Limelight
The Capital Goods index was at 13,634.19, down by 149.84 points or by 1.09%. The major losers were A B B (2.43%), BEML (1.92%), A I A Engineering (1.39%), Bharat Electronics (1.31%) and Bharat Bijlee (1.11%).
The Bankex index was at 10,235.13, down by 106.07 points or by 1.03%. The major losers were Federal Bank (2.78%), Canara Bank (1.98%), Bank Of India (1.77%), Allahabad Bank (1.1%) and Bank Of Baroda (0.9%).
The Realty index was at 3,361.10, down by 26.82 points or by 0.79%. The major losers were Indiabulls Real Estate (2.84%), Mahindra Lifespace Developers (1.36%), Anant Raj Industries (1.13%), Ansal Properties and Infrastructure (1.11%) and D L F (0.58%).
On the other hand, the IT index was at 5,411.69, up by 73.34 points or by 1.37%. The major gainers were H C L Technologies (2.7%), Tata Consultancy Services (2.27%), Oracle Financial Services Software (1.15%), Infosys Technologies (1.07%) and Patni Computer Systems (0.78%).
Market Breadth
Market breadth was negative with 989 advances against 1,860 declines.
Value and Volume Toppers
Man Infraconstruction topped the value chart on the BSE with a turnover of Rs. 1,266.77 million. It was followed by Texmo Pipes and Products (Rs. 1,008.24 million), Aban Offshore (Rs. 967.96 million) and Shree Renuka Sugars (Rs. 768.86 million).
The volume chart was led by Cals Refineries with trades of over 27.54 million shares. It was followed by Shree Renuka Sugars (10.05 million), Tamboli Capital (8.55 million) and Texmo Pipes and Products (6.60 million).
Friday, March 5, 2010
PERFORMANCE OF THE MONTH OF FEBRUARY,2010
I. DALMIA CEMENT BOUGHT @180.00 ON 5.02.2010.....
DALMIA CEMENT MADE HIGH OF 222.50 AS ON 28.02.2010...........
II. TISCO BOUGH @530.00 ON 10.02.2010....
TISCO MADE HIGH OF 603.00 AS ON 28.02.2010.........
III. BARTRONICS BOUGHT @156.00 ON 13.02.2010........
BARTRONICS MADE HIGH OF 178.00 AS ON 28.02.2010......
KINDLY NOTE: IN FUTURE SEGMENT ROLTA INDIA & INDIAN HOTELS SHORT CALL
HAS GIVEN AND DID OUR TARGET SUCCESFULLY.......
Thursday, February 4, 2010
PERFORMANCE OF THE MONTH OF JANUARY,2010
KINDLY NOTE:- THIS MONTH ONLY TWO CALLS GIVEN IN
CASH SEGMENT AND OPEN STILL NOW DUE
TO BAD MARKET CONDITION..
IN FUTURE SEGMENT WE RECOMENDED
TO SHORT BAJAJ HIND & EKC .THE TARGET
REACHED SUCCESSFULLY.....
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