• NTPC, southern region, is planning to generate additional 6,000 Mw of power by 2011 and has recorded the highest-ever generation of 32,067.76 Mw during the last fiscal.
• The Orissa government will sign a memorandum of understanding (MoU) with Essel Mining and Industries Ltd (EMIL), an Aditya Birla group company, for the development of a Rs 1500 crore captive port at Chudamani.
• GMR Infrastructure said the company-led consortium has bagged an order from National Highways Authority of India (NHAI) for a 181 kms road project in Andhra Pradesh.
• BOC India will invest Rs 1,000 crore over the next three years. The company would also set up a merchant plant at a cost of Rs 150 crore in Uttarakhand.
• Mahindra & Mahindra, the country’s largest utility vehicle and tractor maker, has posted an 89 per cent increase in net profit at Rs 418 crore for the quarter-ended March 31, 2009, compared with Rs 221 crore in the year-ago period. The rise was largely due to the additional revenue brought in by Punjab Tractors (PTL) and through the sale of shares in Swaraj Mazda by PTL.
• Larsen and Toubro (L&T), the engineering and construction giant, has posted a 3.29 per cent rise in net profit at Rs 998.52 crore during the quarter ended March 2009, weighed down by a provision of Rs 186.28 crore for its investment in Satyam Computer Services. Total income increased 23.96 per cent to Rs 10,605.16 crore.
• JSW Steel on Thursday said it will raise $1 billion (about Rs 4,775 crore) through qualified institutional placement (QIP) and issue of securities in the international markets for part-financing its capital expenditures and for meeting general corporate purposes.
• Tata Power Company, the largest private power firm in the country, has registered a 57.61 per cent rise in net profit at Rs 354.60 crore in the Marchended quarter. The rise was due to a Rs 308-crore gain from the company’s sale of its partial holdings in Tata Teleservices (TTSL).
• NTPC Limited, country’s largest power generating company having an installed capacity of 30,144 Mw, is adding 6,500 Mw in the southern region. Of this, 1,000 Mw is for the Simhadri Super Thermal Power Station at Visakhapatnam, according to NTPC regional executive director (south) Ambarish N Dave.
Friday, May 29, 2009
Pre Market Outlook
The market is likely to continue its upward movements tracking cues from global markets. However, the volatility may remain high ahead of the GDP numbers, which are going to release today. Asian stocks rose, led by mining companies, as a betterthan- expected Japanese factory output report boosted copper prices. U.S. stocks climbed more than 1 percent on Thursday as higher oil prices drove up energy shares and falling yields in the bond market eased concerns that higher borrowing costs would hinder economic recovery.
According to provisional data on NSE, foreign funds bought bought worth a net Rs. 1859.59 crore on Thursday, 28 May 2009. Domestic funds sold shares worth a net Rs. 451.25 crore on that day.
Post Market Update
Despite to negativity from the global indices, index opened on the flat note & rose steadily thereafter. It was a choppy session due to F&O expiry but overall movement was
northward biased. Market breadth remained balance with almost equal number of stocks on both sides. Technically, Midcap index is trading around resistance area & extreme
overbought zone on the daily charts with identical position in the case of small cap as well so we expect profit taking especially in both the counters in near term. We expect index to rest in the meanwhile prior to further advancing.
The BSE Sensex closed higher by 186.37 points or 1.32% at 14,296.01 and NSE Nifty ended with gains of 61.05 points or 1.43% at 4,337.10. BSE Mid Caps and Small Caps closed with gains of 38.19 and 13.95 points at 4,935.56 and 5,811.69. The BSE Sensex touched intraday
high of 14,377.23 and intraday low of 14,078.62. Among the Sensex pack 20 stocks ended in green territory and 10 in red. The market breadth indicating the overall health of the market remained firm as 1,738 stocks closed in positive while 1,020 stocks closed in negative
and 54 stocks remained unchanged in BSE.The S&P CNX Nifty was down by 61.05 points or 1.43% to 4337.10. The NSE turnover was up Rs.25664.96 from last trading session’s Rs. 20633.30 crore.
northward biased. Market breadth remained balance with almost equal number of stocks on both sides. Technically, Midcap index is trading around resistance area & extreme
overbought zone on the daily charts with identical position in the case of small cap as well so we expect profit taking especially in both the counters in near term. We expect index to rest in the meanwhile prior to further advancing.
The BSE Sensex closed higher by 186.37 points or 1.32% at 14,296.01 and NSE Nifty ended with gains of 61.05 points or 1.43% at 4,337.10. BSE Mid Caps and Small Caps closed with gains of 38.19 and 13.95 points at 4,935.56 and 5,811.69. The BSE Sensex touched intraday
high of 14,377.23 and intraday low of 14,078.62. Among the Sensex pack 20 stocks ended in green territory and 10 in red. The market breadth indicating the overall health of the market remained firm as 1,738 stocks closed in positive while 1,020 stocks closed in negative
and 54 stocks remained unchanged in BSE.The S&P CNX Nifty was down by 61.05 points or 1.43% to 4337.10. The NSE turnover was up Rs.25664.96 from last trading session’s Rs. 20633.30 crore.
Thursday, May 28, 2009
Calls for 28-May
Buy Gail with stop loss of Rs 270 for targets of Rs 312-Rs 323
Buy IDFC with stop loss of Rs 115 for a target of Rs 145
Buy JP Hydro around Rs 66.80-Rs 64.9-Rs 61. Stop Loss of Rs 60, book profit at Rs 69.60-Rs 74.40
Sell Tata Communication around Rs 535.90-Rs 557.90. Stop Loss of Rs 570, cover short at Rs 502-Rs 445
Buy Essar Oil only on declines with a stop loss of Rs 160. If it sustains above Rs 190, short term targets are Rs 203-Rs 217
Buy IDFC with stop loss of Rs 115 for a target of Rs 145
Buy JP Hydro around Rs 66.80-Rs 64.9-Rs 61. Stop Loss of Rs 60, book profit at Rs 69.60-Rs 74.40
Sell Tata Communication around Rs 535.90-Rs 557.90. Stop Loss of Rs 570, cover short at Rs 502-Rs 445
Buy Essar Oil only on declines with a stop loss of Rs 160. If it sustains above Rs 190, short term targets are Rs 203-Rs 217
News Capsules
• After D-6 in the Krishna-Godavari basin, Reliance Industries has struck big in two nearby blocks, with estimates putting the natural gas reserves at 20 trillion cubic feet (tcf).
• The country’s largest truck maker Tata Motors, which had raised Rs 4,200 crore last week through the issue of secured non-convertible debentures (NCDs), has completed the process of raising around Rs 4,800 crore ($1 billion) more through the external commercial borrowing (ECB) route.
• Grasim Industries has suspended production at its Nagda plant in Madhya Pradesh due to requisition of water from one of its reservoirs by district administration following shortage of water in the area.
• Tata Realty and Infrastructure (TRIL), a closely-held unit of Tata Sons, plans to invest Rs 20,000 crore to build special economic zones, roads, ports and other core sector projects in the next three years to take advantage of a stable political environment and revival in the economy.
• Faced with a massive cash-crunch, Maytas Infra, a company promoted by the kin of Satyam founder B Ramalinga Raju, has asked the government not to hastily withdraw projects awarded to it. Maytas Infra has written to the Corporate Affairs Ministry requesting for support from government agencies that have allotted various projects to it.
• Bharat Heavy Electricals Limited (BHEL) reported a rise of 21.35 per cent in the net profit to Rs 1,347 crore in the three months ended March 31, 2009 as against Rs 1,110 crore in the corresponding quarter in the previous year. The equipment major reported nine per cent increase in net profit for 2008-09 at Rs 3,138 crore as compared to Rs 2,859.30 crore in 2007-08. Net sales were up 35.4 per cent at Rs 26,234 crore in 2008-09 compared to Rs 19,365.50 crore in 2007-08.
• Jindal Steel and Power reported 24.27 per cent rise in its net profit to Rs 1,536 crore for the fourth quarter of 2008-09 as against Rs 1,236 crore in the corresponding quarter of last fiscal.
• Godrej Industries reported an 83 per cent dip in its net profit of Rs 18.08 crore for the year ended March 31, 2009, as against Rs 108.81 crore in FY08, mainly due to slump in chemical business.
• Britannia Industries reported a 14.61 per cent dip in consolidated net profit at Rs 151.48 crore in the financial year ended March 31, 2009. The company had a net profit of Rs 177.40 crore in the FY08.
• The country’s largest truck maker Tata Motors, which had raised Rs 4,200 crore last week through the issue of secured non-convertible debentures (NCDs), has completed the process of raising around Rs 4,800 crore ($1 billion) more through the external commercial borrowing (ECB) route.
• Grasim Industries has suspended production at its Nagda plant in Madhya Pradesh due to requisition of water from one of its reservoirs by district administration following shortage of water in the area.
• Tata Realty and Infrastructure (TRIL), a closely-held unit of Tata Sons, plans to invest Rs 20,000 crore to build special economic zones, roads, ports and other core sector projects in the next three years to take advantage of a stable political environment and revival in the economy.
• Faced with a massive cash-crunch, Maytas Infra, a company promoted by the kin of Satyam founder B Ramalinga Raju, has asked the government not to hastily withdraw projects awarded to it. Maytas Infra has written to the Corporate Affairs Ministry requesting for support from government agencies that have allotted various projects to it.
• Bharat Heavy Electricals Limited (BHEL) reported a rise of 21.35 per cent in the net profit to Rs 1,347 crore in the three months ended March 31, 2009 as against Rs 1,110 crore in the corresponding quarter in the previous year. The equipment major reported nine per cent increase in net profit for 2008-09 at Rs 3,138 crore as compared to Rs 2,859.30 crore in 2007-08. Net sales were up 35.4 per cent at Rs 26,234 crore in 2008-09 compared to Rs 19,365.50 crore in 2007-08.
• Jindal Steel and Power reported 24.27 per cent rise in its net profit to Rs 1,536 crore for the fourth quarter of 2008-09 as against Rs 1,236 crore in the corresponding quarter of last fiscal.
• Godrej Industries reported an 83 per cent dip in its net profit of Rs 18.08 crore for the year ended March 31, 2009, as against Rs 108.81 crore in FY08, mainly due to slump in chemical business.
• Britannia Industries reported a 14.61 per cent dip in consolidated net profit at Rs 151.48 crore in the financial year ended March 31, 2009. The company had a net profit of Rs 177.40 crore in the FY08.
Pre Market Outlook
The market is likely to open sideways with negative bias. However, volatility may remain high ahead of the expiry of May 2009 futures and options (F&O) contract today. Asian stocks fell, led by banks and mining companies, after Australia & New Zealand Banking Group Ltd. sold shares and metal prices declined. U.S. stocks dropped on Wednesday as rising yields on U.S. government debt fueled concern that businesses and consumers could face higher borrowing costs, which could hamper an economic recovery.
According to provisional data on NSE, foreign funds bought sold worth a net Rs. 369.80 crore on Wednesday, 27 May 2009. Domestic funds bought shares worth a net Rs. 685.64 crore on that day.
According to provisional data on NSE, foreign funds bought sold worth a net Rs. 369.80 crore on Wednesday, 27 May 2009. Domestic funds bought shares worth a net Rs. 685.64 crore on that day.
Post Market Update
Index opened on the buoyant note due to positive cues from the global markets. Choppiness among the index majors lead to range bound movement in the first half of the session but
the later half was completely devoted to northward movement. Banking & reality counter were the major gainer in today’s trade. Meanwhile, selective midcap stocks have also performed well especially in Media & textile arena with market breadth strongly on the positive side. Technically, we expect that index will continue to move with upside biased tomorrow
as well but volatility will be there due to expiry.
The BSE Sensex closed higher by 520.41 points or 3.83% at 14,109.64 and NSE Nifty ended with gains of 159.35 points at 4,276.05. BSE Mid Caps and Small Caps closed with gains of 173.28 and 189.08 points at 4,897.37 and 5,797.74. The BSE Sensex touched intraday high of 14,122.78 and intraday low of 13,780.41. Among the Sensex pack 27 stocks ended in green territory and 3 in red. The market breadth indicating the overall health of the market remained firm as 2,346
stocks closed in positive while 459 stocks closed in negative and 36 stocks remained unchanged in BSE.The S&P CNX Nifty was down by 159.35 points or 3.87% to 4276.05. The NSE turnover was down Rs.20633.30 from last trading session’s Rs. 19358.86 crore.
the later half was completely devoted to northward movement. Banking & reality counter were the major gainer in today’s trade. Meanwhile, selective midcap stocks have also performed well especially in Media & textile arena with market breadth strongly on the positive side. Technically, we expect that index will continue to move with upside biased tomorrow
as well but volatility will be there due to expiry.
The BSE Sensex closed higher by 520.41 points or 3.83% at 14,109.64 and NSE Nifty ended with gains of 159.35 points at 4,276.05. BSE Mid Caps and Small Caps closed with gains of 173.28 and 189.08 points at 4,897.37 and 5,797.74. The BSE Sensex touched intraday high of 14,122.78 and intraday low of 13,780.41. Among the Sensex pack 27 stocks ended in green territory and 3 in red. The market breadth indicating the overall health of the market remained firm as 2,346
stocks closed in positive while 459 stocks closed in negative and 36 stocks remained unchanged in BSE.The S&P CNX Nifty was down by 159.35 points or 3.87% to 4276.05. The NSE turnover was down Rs.20633.30 from last trading session’s Rs. 19358.86 crore.
Wednesday, May 27, 2009
News Capsules 27- May
• Anil Ambani group firm Reliance Communications (RCom) said its shareholders have approved the demerger of its optic fibre division to its infrastructure division Reliance Infratel. In a filing to the Bombay Stock Exchange RCom said the equity shareholders have approved the scheme of
arrangement between the company and its infrastructure division Reliance Infratel.
• The proposed partnership deal of Bharti Airtel and South African telecom giant MTN will be the first telecom company that will test the new norms for foreign investment announced under Press Notes 2, 3 and 4 in February 2009. Since the effective foreign ownership in Bharti Airtel (including the proportionate foreign ownership through the parent company), is set to cross the threshold limit of 74 per cent after consummation of this transaction, it is expected to approach the government for approval under the new norms, said a leading investment banker on condition of anonymity.
• The Mittal-promoted Bharti group — with interests in telecom, insurance, realty and retail — has ventured into the food and beverage (F&B) segment in partnership with Singapore-based Del Monte Pacific. The joint venture, called Field Fresh Foods Pvt Ltd, plans to invest Rs 100 crore to set up a greenfield manufacturing facility in India for processed food products at Hosur in Tamil Nadu, which will be operational by 2010.
• Tata Communications posted an over five-fold rise in its net profit at Rs 302.37 crore in the fourth quarter ended March 31, 2009, over the same period last year.
• Nalco has cut prices of its products by up to Rs 5,000 a tonne, a step aimed to discourage imports from China which have got a boost after the domestic currency turned stronger against the US dollar.
• Foreign fund house Morgan Stanley has acquired 7.68 per cent stake in Indiabulls Real Estate for about Rs 570.18 crore, through qualified institutional placement (QIP) route.
• Top three steel PSUs SAIL, NMDC and RINL will infuse Rs 13,000 crore this fiscal as part of their programme to expand production capacities to about 35 million tonnes in the next two-three years.
• Just over a week after the Madras High Court granted the Chennai-based two-wheeler company TVS Motor the permission to use twin-spark plugs in its motorcycles, Bajaj Auto has decided to move the Supreme Court against the ruling.
• Bata India is looking at expediting the completion of the company’s ambitious Batanagar Township project, worth around Rs 1,300 crore.
• Foreign exchange losses of Rs 22 crore in the quarter ate into the profits of Delhi-based NIIT Technologies, which posted a profit after tax (PAT) of Rs 26.3 crore for the fourth quarter ended 31 March, 2009, down 15 per cent from Rs 31 crore in the corresponding quarter last year.
arrangement between the company and its infrastructure division Reliance Infratel.
• The proposed partnership deal of Bharti Airtel and South African telecom giant MTN will be the first telecom company that will test the new norms for foreign investment announced under Press Notes 2, 3 and 4 in February 2009. Since the effective foreign ownership in Bharti Airtel (including the proportionate foreign ownership through the parent company), is set to cross the threshold limit of 74 per cent after consummation of this transaction, it is expected to approach the government for approval under the new norms, said a leading investment banker on condition of anonymity.
• The Mittal-promoted Bharti group — with interests in telecom, insurance, realty and retail — has ventured into the food and beverage (F&B) segment in partnership with Singapore-based Del Monte Pacific. The joint venture, called Field Fresh Foods Pvt Ltd, plans to invest Rs 100 crore to set up a greenfield manufacturing facility in India for processed food products at Hosur in Tamil Nadu, which will be operational by 2010.
• Tata Communications posted an over five-fold rise in its net profit at Rs 302.37 crore in the fourth quarter ended March 31, 2009, over the same period last year.
• Nalco has cut prices of its products by up to Rs 5,000 a tonne, a step aimed to discourage imports from China which have got a boost after the domestic currency turned stronger against the US dollar.
• Foreign fund house Morgan Stanley has acquired 7.68 per cent stake in Indiabulls Real Estate for about Rs 570.18 crore, through qualified institutional placement (QIP) route.
• Top three steel PSUs SAIL, NMDC and RINL will infuse Rs 13,000 crore this fiscal as part of their programme to expand production capacities to about 35 million tonnes in the next two-three years.
• Just over a week after the Madras High Court granted the Chennai-based two-wheeler company TVS Motor the permission to use twin-spark plugs in its motorcycles, Bajaj Auto has decided to move the Supreme Court against the ruling.
• Bata India is looking at expediting the completion of the company’s ambitious Batanagar Township project, worth around Rs 1,300 crore.
• Foreign exchange losses of Rs 22 crore in the quarter ate into the profits of Delhi-based NIIT Technologies, which posted a profit after tax (PAT) of Rs 26.3 crore for the fourth quarter ended 31 March, 2009, down 15 per cent from Rs 31 crore in the corresponding quarter last year.
Pre Market Outlook
The market may open higher on positive cues from the Global markets. Volatility may remain high ahead of the expiry of May 2009 futures and options (F&O) contract on Thursday, 28 May 2009. Asian stocks rose, led by automakers and mining companies, after U.S. consumer confidence jumped the most in six years and commodity prices climbed. U.S. stocks climbed more than 2 percent on Tuesday as data showing the biggest monthly jump in consumer confidence in six years lifted hopes of an economic rebound, and a brokerage upgrade of Apple Inc drove sharp gains on the Nasdaq. Most of the Indian ADRs ended on a positive note.
According to provisional data on NSE, foreign funds stocks sold worth a net Rs. 197.02 crore on Tuesday, 26 May 2009. Domestic funds sold shares worth a net Rs. 138.19 crore on that day.
According to provisional data on NSE, foreign funds stocks sold worth a net Rs. 197.02 crore on Tuesday, 26 May 2009. Domestic funds sold shares worth a net Rs. 138.19 crore on that day.
Tuesday, May 26, 2009
News Capsules
• After a failed attempt just 12 months ago, Bharti Airtel announced that it was renewing talks with South African telecom company MTN for a complex cash and share-swap deal worth $23 billion.
• Oil and Natural Gas Corporation (ONGC) said it will lose about Rs 14,000 crore if it is forced to continue in Cairn India's prolific Rajasthan oilfields as it will have to pay for all of the government levies.
• Maruti Suzuki India Limited is testing its cars on the CNG platform before launching them commercially in the next 2-3 years. Compressed natural gas (CNG) is a more environment-friendly alternative to other fossil fuels, such as petrol or diesel.
• Bharat Heavy Electricals Limited (BHEL’s) Tiruchirappalli (Tiruchy) unit has bagged an order worth Rs 703 crore from Ideal Energy Projects Ltd (IEPL). The order is to supply a main plant package for the upcoming Bela Thermal Power Project (TPP) in Maharashtra being set up by IEPL.
• A little more than two-and-half years after Bajaj Auto acquired its first stake in Austrian power bike maker KTM Power Sports AG, the Pune-based company is readying itself to derive full benefits from the alliance.
• Suzlon Energy have sold 4 per cent of their stake in the company for about Rs 569 crore to part-finance the buy-out of the stake held in Suzlon's German subsidiary, REpower Systems AG, by Martifer SGPS of Portugal.
• Dabur is stepping up expansion in the skin care segment, on the back of its acquisition of Fem Care Pharma last year, with plans to expand range of products from the latter's stable besides launching a new brand of its own.
• Idea Cellular, one of the leading telecom operators in the country, entered Tamil Nadu, with the launch of its GSM mobile services in 130 towns across the state.
• Dishman Pharmaceuticals & Chemicals said its consolidated net profit for the year ended March 31, 2009, rose by 22.13 per cent to Rs 146.19 crore, over the same period last year.
• Oil and Natural Gas Corporation (ONGC) said it will lose about Rs 14,000 crore if it is forced to continue in Cairn India's prolific Rajasthan oilfields as it will have to pay for all of the government levies.
• Maruti Suzuki India Limited is testing its cars on the CNG platform before launching them commercially in the next 2-3 years. Compressed natural gas (CNG) is a more environment-friendly alternative to other fossil fuels, such as petrol or diesel.
• Bharat Heavy Electricals Limited (BHEL’s) Tiruchirappalli (Tiruchy) unit has bagged an order worth Rs 703 crore from Ideal Energy Projects Ltd (IEPL). The order is to supply a main plant package for the upcoming Bela Thermal Power Project (TPP) in Maharashtra being set up by IEPL.
• A little more than two-and-half years after Bajaj Auto acquired its first stake in Austrian power bike maker KTM Power Sports AG, the Pune-based company is readying itself to derive full benefits from the alliance.
• Suzlon Energy have sold 4 per cent of their stake in the company for about Rs 569 crore to part-finance the buy-out of the stake held in Suzlon's German subsidiary, REpower Systems AG, by Martifer SGPS of Portugal.
• Dabur is stepping up expansion in the skin care segment, on the back of its acquisition of Fem Care Pharma last year, with plans to expand range of products from the latter's stable besides launching a new brand of its own.
• Idea Cellular, one of the leading telecom operators in the country, entered Tamil Nadu, with the launch of its GSM mobile services in 130 towns across the state.
• Dishman Pharmaceuticals & Chemicals said its consolidated net profit for the year ended March 31, 2009, rose by 22.13 per cent to Rs 146.19 crore, over the same period last year.
Pre Market Outlook 26-May
The market is likely to open on a flat note-taking cue from weak global markets. Volatility may remain high ahead of the expiry of May 2009 futures and options (F&O) contract on Thursday, 28 May 2009. However, comments from the new Finance Minister Pranab Mukherjee that political stability will be the spring board for India’s economic recovery may support the market at lower level. Asian stocks fell, led by technology companies and banks, as concern mounted that North Korea may step up missile tests and investors speculated a report will show the U.S. housing market is still contracting. U.S. stocks fell for a fourth day on Friday on persistent worries about the U.S. budget deficit, with U.S. Treasuries and the dollar losing ground. European shares rose on Monday with Sanofi Aventis leading pharmaceuticals higher after winning a U.S. contract, and some analysts choosing to interpret a leading German economic
survey positively.
According to provisional data on NSE, foreign funds stocks bought worth a net
Rs. 427.97 crore on Monday, 25 May 2009. Domestic funds bought shares worth
a net Rs. 197.68 crore on that day.
survey positively.
According to provisional data on NSE, foreign funds stocks bought worth a net
Rs. 427.97 crore on Monday, 25 May 2009. Domestic funds bought shares worth
a net Rs. 197.68 crore on that day.
Monday, May 25, 2009
Pre Market Outlook
The market is likely to open on negative note taking cue from global markets. Asian market open on a mixed note. U.S. stocks fell for a fourth day on Friday on persistent worries about the U.S. budget deficit, with U.S. Treasuries and the dollar losing ground. European shares ended lower for the second day in a row on Friday, further cooling a rally that has added a third to stock prices in the past ten weeks, as defensives and Swiss stocks weighed.
According to provisional data on NSE, foreign funds stocks sold worth a net Rs. 761.66 crore on Friday, 22 May 2009. Domestic funds bought shares worth a net Rs. 434.53 crore on that day.
Dr Manmohan Singh took over as the twenty-first Prime Minister of India. It was announced that Pranab Mukherjee was elected as the Finance Minister, while P Chidambaram would retain his position as the Home Minister. AK Antony has been appointed as the Defence Minister and Mamata Banerjee will take over as the Railway Minister. Sharad Pawar has been given the position of the Agriculture Minister, Food and Civil Supplies. SM Krishna is the new External
Affairs Minister.
According to provisional data on NSE, foreign funds stocks sold worth a net Rs. 761.66 crore on Friday, 22 May 2009. Domestic funds bought shares worth a net Rs. 434.53 crore on that day.
Dr Manmohan Singh took over as the twenty-first Prime Minister of India. It was announced that Pranab Mukherjee was elected as the Finance Minister, while P Chidambaram would retain his position as the Home Minister. AK Antony has been appointed as the Defence Minister and Mamata Banerjee will take over as the Railway Minister. Sharad Pawar has been given the position of the Agriculture Minister, Food and Civil Supplies. SM Krishna is the new External
Affairs Minister.
Friday, May 22, 2009
News Capsules
• Reliance Power will invest over Rs 12,000 crore for executing 2,520-MW hydro power projects in Arunachal Pradesh, to be commissioned in the next Five Year Plan (2012-17). The company has signed agreement with the state government for developing four hydro power projects -- 1,200 MW Kalai-II, 420 MW Amulin, 500 MW Emini and 400 MW Mihundon.
• Oil and Natural Gas Corporation (ONGC) will pay Rs 852 crore for subsidising petrol and diesel during January-March quarter but state gas utility GAIL India has been spared from the subsidy burden.
• Better margins on non-commuter bikes through premium pricing and softening of raw material prices helped India’s second-largest bike producer Bajaj Auto to post an increase of almost 8 per cent in net profit at Rs 130 crore. This was despite a drop of 20 per cent in sales of units during the last quarter of F09. Bajaj Auto saw total sales at 440,269 for the quarter as compared to 552,588 units.
• Tata Motors, the country’s largest truck maker which raised Rs 4,200 crore on Wednesday through issue of secured non-convertible debentures (NCDs), is raising another Rs 4,750 crore ($ 1 billion) through the external commercial borrowing (ECB) route.
• Dr Reddy’s Laboratories is moving all its drug research and development assets to its wholly-owned, independent subsidiary Aurigene, effective July 1, as part of a restructuring plan to rejuvenate its drug development activities.
• Ranbaxy Laboratories has acquired the entire range of skin care and lifestyle products of Ochoa Laboratories, a small to medium sized manufacturer located onthe outskirts of New Delhi.
• Opto Circuits India announced that its California-based international marketing arm, Mediaid Inc., has received Brazilian FDA agency - Agencia Nacional de Vigilancia Sanitaria (ANVISA) - approval for marketing and sale of the Mediaid brand of US FDA-approved Pulse Oximetry (SPO2) products (Patient Monitors & Sensors) in the country and surrounding geographies.
• Areva T&D, the Indian arm of French equipment maker Areva, has bagged an order from the West Bengal State Electricity Transmission Company (WBSETCL) for developing 400 KV substation at Kharagpur
• Oil and Natural Gas Corporation (ONGC) will pay Rs 852 crore for subsidising petrol and diesel during January-March quarter but state gas utility GAIL India has been spared from the subsidy burden.
• Better margins on non-commuter bikes through premium pricing and softening of raw material prices helped India’s second-largest bike producer Bajaj Auto to post an increase of almost 8 per cent in net profit at Rs 130 crore. This was despite a drop of 20 per cent in sales of units during the last quarter of F09. Bajaj Auto saw total sales at 440,269 for the quarter as compared to 552,588 units.
• Tata Motors, the country’s largest truck maker which raised Rs 4,200 crore on Wednesday through issue of secured non-convertible debentures (NCDs), is raising another Rs 4,750 crore ($ 1 billion) through the external commercial borrowing (ECB) route.
• Dr Reddy’s Laboratories is moving all its drug research and development assets to its wholly-owned, independent subsidiary Aurigene, effective July 1, as part of a restructuring plan to rejuvenate its drug development activities.
• Ranbaxy Laboratories has acquired the entire range of skin care and lifestyle products of Ochoa Laboratories, a small to medium sized manufacturer located onthe outskirts of New Delhi.
• Opto Circuits India announced that its California-based international marketing arm, Mediaid Inc., has received Brazilian FDA agency - Agencia Nacional de Vigilancia Sanitaria (ANVISA) - approval for marketing and sale of the Mediaid brand of US FDA-approved Pulse Oximetry (SPO2) products (Patient Monitors & Sensors) in the country and surrounding geographies.
• Areva T&D, the Indian arm of French equipment maker Areva, has bagged an order from the West Bengal State Electricity Transmission Company (WBSETCL) for developing 400 KV substation at Kharagpur
Morning Mantra
The market is likely to open on a flat note with a negative bias-taking cue from weak global markets. Asian Market trading on a mixed note. U.S. stocks slid in a broad sell-off on Thursday as investors, concerned about the U.S. budget deficit, exited dollar-denominated assets across the board. Indian ADRs ended mostly down. Driven by the rising prices of essential food items like cereals, tea, spices and fruit and vegetables, inflation inched up to 0.61 per cent for the week ended May 9.
According to provisional data on NSE, foreign funds stocks sold worth a net Rs. 2.14 crore on Thursday, 21 May 2009. Domestic funds sold shares worth a net Rs. 371.48 crore on that day.
According to provisional data on NSE, foreign funds stocks sold worth a net Rs. 2.14 crore on Thursday, 21 May 2009. Domestic funds sold shares worth a net Rs. 371.48 crore on that day.
Thursday, May 21, 2009
News Capsules
• Tata Motors, the country’s largest truck maker, has raised Rs.4,200 crore through the issue of secured non-convertible debentures (NCDs) to financial institutions. The money would be used for part-payment of the $3-billion (around Rs 14,313 crore) bridge loan it had availed of to finance the acquisition of Jaguar and Land Rover brands from Ford Motor Company last year.
• Maruti Suzuki India Ltd is in talks with the Haryana government to set up a research and development (R&D) centre, including a testing track, in the state. The proposed project, spread over 500 acres, is likely to be at Manesar and would attract an investment of Rs.1,800 crore.
• Leading pharmaceutical company Pfizer Inc has entered into a partnership with Ahmedabad-based Claris Lifesciences Ltd to commercialise sterile injectible drugs that are off-patent and have lost exclusivity in the United States, Canada, Australia, New Zealand and Europe.
• Reliance Industries, which recently began gas production off the east coast, has got the government go-ahead to sign agreements with firms supplying the much-needed gas to households and car owners in major cities. The government approved the allocation of gas from RIL’s Krishna- Godavari basin to half-a-dozen city gas distribution firms (CGD) in Delhi, Mumbai, Ahmedabad, Gandhinagar, Agra, Indore and Ujjain.
• Reliance Power Transmission, an Anil Ambani group company, has tied-up Rs.970 crore for its first transmission utility project in the western region of the country. The project involves setting up of 400 KV double circuit transmission lines covering about 1,500 Km in Maharashtra, Gujarat and Madhya Pradesh. It will connect the eastern region to the power deficit western region. The project is expected to be completed by 2010.
• Maruti Suzuki India Ltd is in talks with the Haryana government to set up a research and development (R&D) centre, including a testing track, in the state. The proposed project, spread over 500 acres, is likely to be at Manesar and would attract an investment of Rs.1,800 crore.
• Leading pharmaceutical company Pfizer Inc has entered into a partnership with Ahmedabad-based Claris Lifesciences Ltd to commercialise sterile injectible drugs that are off-patent and have lost exclusivity in the United States, Canada, Australia, New Zealand and Europe.
• Reliance Industries, which recently began gas production off the east coast, has got the government go-ahead to sign agreements with firms supplying the much-needed gas to households and car owners in major cities. The government approved the allocation of gas from RIL’s Krishna- Godavari basin to half-a-dozen city gas distribution firms (CGD) in Delhi, Mumbai, Ahmedabad, Gandhinagar, Agra, Indore and Ujjain.
• Reliance Power Transmission, an Anil Ambani group company, has tied-up Rs.970 crore for its first transmission utility project in the western region of the country. The project involves setting up of 400 KV double circuit transmission lines covering about 1,500 Km in Maharashtra, Gujarat and Madhya Pradesh. It will connect the eastern region to the power deficit western region. The project is expected to be completed by 2010.
Pre Market Update
Market is likely to open on a negetive note, taking cues from global market. U.S. stocks fell on Wednesday, led by financials in a late-stage sell-off, after the Federal Reserve gave a more pessimistic view on the economy, tempering hopes for a quick recovery. European shares ended higher on Wednesday in a choppy session, extending a winning streak to five days, with commodity stocks the major gainers as the price of crude oil and metals rose. Asian stocks are currently trading low, dragging the MSCI Asia Pacific Index from a seven-month high, as the stronger yen diminished earnings prospects in Japan and the U.S. Federal Reserve projected a deeper recession.
According to provisional data on NSE, foreign funds stocks sold worth a net Rs. 985.53 crore on Wednesday, 20 May 2009. Domestic funds bought shares worth a net Rs. 4.99 crore on that day.
According to provisional data on NSE, foreign funds stocks sold worth a net Rs. 985.53 crore on Wednesday, 20 May 2009. Domestic funds bought shares worth a net Rs. 4.99 crore on that day.
Sentiment Indicator
PCR of index options is at 1.21 from last trading session’s 1.21.
PCR of Stock options is at 0.35 from last trading session’s 1.23.
PCR of total F&O is at 1.17 from last trading session’s 0.42.
The advances are 1012, declines are 90 and unchanged are 9. The implied volatility has decreased to 53.72 from last trading session’s 57.95
Post Market Update
As expected, Index is now consolidating in a range after the strong spurt. Midcap & Small cap counters had a good session while the heavy weight remained choppy. Technically, index is likely to retrace in the near term prior to next major move. As per candlestick, it formed long leg doji
yesterday, which indicates selling pressure at the top, but the lower shadow is also an extended one so it may continue to trade in a range.
The BSE Sensex closed lower by 241.37 points at 14,060.66 and NSE Nifty ended down by 48.15 points at 4,270.30. BSE Mid Caps and Small Caps closed with gains of 265.95 and 424.04 points at 4,673.77 and 5,208.18 respectively. The BSE Sensex touched intraday high of 14,405.51 and intraday low of 13,976.49. Among the Sensex pack 16 stocks ended in green territory and 14 in red. The market breadth indicating the overall health of the market remained extremely
positive as 2393 stocks closed in green while 298 stocks closed in red and 44 stocks remained unchanged in BSE. The S&P CNX Nifty was down by 48.15 points or –1.11% to 4270.30.
The NSE turnover was down Rs.28398.75 from last trading session’s Rs. 40151.91crore.
yesterday, which indicates selling pressure at the top, but the lower shadow is also an extended one so it may continue to trade in a range.
The BSE Sensex closed lower by 241.37 points at 14,060.66 and NSE Nifty ended down by 48.15 points at 4,270.30. BSE Mid Caps and Small Caps closed with gains of 265.95 and 424.04 points at 4,673.77 and 5,208.18 respectively. The BSE Sensex touched intraday high of 14,405.51 and intraday low of 13,976.49. Among the Sensex pack 16 stocks ended in green territory and 14 in red. The market breadth indicating the overall health of the market remained extremely
positive as 2393 stocks closed in green while 298 stocks closed in red and 44 stocks remained unchanged in BSE. The S&P CNX Nifty was down by 48.15 points or –1.11% to 4270.30.
The NSE turnover was down Rs.28398.75 from last trading session’s Rs. 40151.91crore.
Wednesday, May 20, 2009
News Capsules
• Larsen & Toubro (L&T) has signed a memorandum of understanding (MoU) with the US-based GE Hitachi Nuclear Energy, one of the largest nuclear power plant vendors in the world, for the construction of nuclear power plants in India.
• BHEL has offered to take up the controversial Barh project of NTPC if the Russian firm that had bagged the order for it and the power major end their arbitration case and part ways.
• Grasim Industries, part of the Aditya Birla group, has posted a decline of 16.2 per cent in its consolidated net profit for the financial year ended March 31, at Rs 2,187 crore, compared with Rs 2,609 crore in the previous financial year. Net revenue for the year grew to Rs 18,603 crore from Rs 17,141 crore last year, up 8.5 per cent.
• Dr Reddy’s Laboratories (DRL), the second largest drug maker in the country, would invest about Rs 750 crore ($150 million) in setting up two special economic zones (SEZs) — one in Visakhapatnam and another in Hyderabad.
• JSW Steel said it planned to shut down its mills in the US for three months from June due to poor demand, and in the interim it will take measures to upgrade and modernise the units.
• Unitech are looking to raise their stake by about 10 per cent in the company by subscribing to warrants worth about Rs 1,000 crore over the next 18 months.
• Geodesic has acquired South America-based software firm Interactive Networks for an undisclosed sum. With this deal, Interactive Networks has become a wholly-owned subsidiary of Geodesic.
• Life Insurance Corporation (LIC) of India intends to pump in around Rs 1,05,000 crore into non-convertible debentures (NCDs) and equity in the current financial year, nearly 20 per cent more than the Rs 88,000 crore it invested in these instruments in 2008-09.
• Thermax Ltd a rise of 17.15 per cent in net profit to Rs 94.33 crore during the January-March quarter of the recently concluded financial year against Rs 80.52 crore posted over the same period a year ago. The company revenues during the quarter grew marginally to Rs 948.25 crore, up 2.83 per cent over Rs 922.11 crore on year-on-year (Y-o-Y) basis
• Essar Oil posted a net profit of Rs 660 crore for the fourth quarter ended March 31, 2009, against a net loss of Rs 8 crore during the same quarter in 2008. The company’s profit surged after its refinery at Vadinar in Jamnagar began operating at full capacity from May 2008.
• BHEL has offered to take up the controversial Barh project of NTPC if the Russian firm that had bagged the order for it and the power major end their arbitration case and part ways.
• Grasim Industries, part of the Aditya Birla group, has posted a decline of 16.2 per cent in its consolidated net profit for the financial year ended March 31, at Rs 2,187 crore, compared with Rs 2,609 crore in the previous financial year. Net revenue for the year grew to Rs 18,603 crore from Rs 17,141 crore last year, up 8.5 per cent.
• Dr Reddy’s Laboratories (DRL), the second largest drug maker in the country, would invest about Rs 750 crore ($150 million) in setting up two special economic zones (SEZs) — one in Visakhapatnam and another in Hyderabad.
• JSW Steel said it planned to shut down its mills in the US for three months from June due to poor demand, and in the interim it will take measures to upgrade and modernise the units.
• Unitech are looking to raise their stake by about 10 per cent in the company by subscribing to warrants worth about Rs 1,000 crore over the next 18 months.
• Geodesic has acquired South America-based software firm Interactive Networks for an undisclosed sum. With this deal, Interactive Networks has become a wholly-owned subsidiary of Geodesic.
• Life Insurance Corporation (LIC) of India intends to pump in around Rs 1,05,000 crore into non-convertible debentures (NCDs) and equity in the current financial year, nearly 20 per cent more than the Rs 88,000 crore it invested in these instruments in 2008-09.
• Thermax Ltd a rise of 17.15 per cent in net profit to Rs 94.33 crore during the January-March quarter of the recently concluded financial year against Rs 80.52 crore posted over the same period a year ago. The company revenues during the quarter grew marginally to Rs 948.25 crore, up 2.83 per cent over Rs 922.11 crore on year-on-year (Y-o-Y) basis
• Essar Oil posted a net profit of Rs 660 crore for the fourth quarter ended March 31, 2009, against a net loss of Rs 8 crore during the same quarter in 2008. The company’s profit surged after its refinery at Vadinar in Jamnagar began operating at full capacity from May 2008.
Pre Maret Outlook 20-May
The market is likely to open on a weak note taking cues from global markets. In US, The Dow and S&P 500 slipped on Tuesday as financial shares sank and on disappointing housing data, but the Nasdaq rose as investors snapped up technology shares ahead of results from Hewlett Packard. Most Asian stocks rose as the Japanese economy shrank less than economists estimated and oil prices rose to a sixmonth high. Finance companies declined. Japan’s economy shrank at a record 15.2 percent annual pace last quarter as exports collapsed and consumers and businesses cut spending. The U.S. housing starts dropped 12.8 percent in April to an annual rate of 458,000 units. The result for March was revised to a rate of 525,000 units, a decline of 8.5 percent from the previous month.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs. 4792.56 crore on Tuesday, 19 May 2009. Domestic funds sold shares worth a net Rs. 1964.19 crore on that day.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs. 4792.56 crore on Tuesday, 19 May 2009. Domestic funds sold shares worth a net Rs. 1964.19 crore on that day.
Post Market Outlook 19-May
After the yesterday’s exceptional rise in index, it opened on the positive note but remained in a range of 4200-4500 levels in the today’s session. Due to broader range, there was
strong stock specific movement while the index majors traded mixed. Technically, we may find index facing resistance around 4600 mark on the other hand now 4000 level will act as
support. We may again see a consolidation range development prior to further move. For short-term traders, we advise to continue to book profit on every rise & wait for the market to correct for buying opportunities.
The BSE Sensex ended marginally up by 17.82 points at 14,302.03 whereas NSE Nifty closed slightly lower by 4.70 points at 4,318.45. BSE Mid Caps and Small Caps ended with gains of 153.34 and 117.40 points at 4,407.82 and 4,784.14 respectively. The BSE Sensex
touched intraday high of 14,302.03 and intraday low of 13,834.13. Among the Sensex pack 18 stocks ended in green territory and 12 in red. The market breadth indicating the overall health of the market remained positive as 1927 stocks closed in green while 739 stocks closed in red and 48 stocks remained unchanged in BSE. The S&P CNX Nifty was down by 4.70 points or –0.11% to 4318.45. The NSE turnover was up Rs.40151.91 from last trading session’s Rs. 170.32
crore.
strong stock specific movement while the index majors traded mixed. Technically, we may find index facing resistance around 4600 mark on the other hand now 4000 level will act as
support. We may again see a consolidation range development prior to further move. For short-term traders, we advise to continue to book profit on every rise & wait for the market to correct for buying opportunities.
The BSE Sensex ended marginally up by 17.82 points at 14,302.03 whereas NSE Nifty closed slightly lower by 4.70 points at 4,318.45. BSE Mid Caps and Small Caps ended with gains of 153.34 and 117.40 points at 4,407.82 and 4,784.14 respectively. The BSE Sensex
touched intraday high of 14,302.03 and intraday low of 13,834.13. Among the Sensex pack 18 stocks ended in green territory and 12 in red. The market breadth indicating the overall health of the market remained positive as 1927 stocks closed in green while 739 stocks closed in red and 48 stocks remained unchanged in BSE. The S&P CNX Nifty was down by 4.70 points or –0.11% to 4318.45. The NSE turnover was up Rs.40151.91 from last trading session’s Rs. 170.32
crore.
Monday, May 18, 2009
TRADING HALTED FOR THE DAY 18-May
Trading on both the BSE and the NSE has been halted for the day as markets hit a 20% upper circuit, after re-opening for trade. At the beginning of today's trade, 9:55 am, the markets were locked at 15% upper circuit and exchanges halted the trade for two hours.
The UPA's (United Progressive Alliance) clean sweep win has cheered the markets and helped the benchmark indices to hit 20% upper circuit.
The 30-share Sensex closed 2,110.79 points or 17.34% higher at 14,284.21 and the Nifty surged 651.50 points or 17.74%, to settle at 4,323.15. The Sensex saw the 14,000 mark and the Nifty surpassed the 4,300 level for the first time since September 22, 2008. The Nifty May futures ended with 46.85 points premium.
Shankar Sharma of First Global said the win was an amazing verdict. “My long-term prediction is that the Bhartiya Janata Party (BJP) would reduce to 40 to 60 seats long ahead in the future,” he said. “This win is the ultimate game changer for the country, comparable to what happened in ‘84-‘85 and in ’91,” he said. Sharma sees a 40% rally in the next two to three months time.
Anand Tandon, Director Equities, Brics Securities, said one should take some money off the table if 14,500 on the Sensex hits “because no matter what the fact to the matter is that at some stage there are other factors other than just liquidity and euphoria which come in play.”
A lot of hedged positions were outstanding in the market today and hedges were taken via selling Nifty Calls.
Among the benchmark indices, the BSE Midcap was up 447.41 points or 11.75%, to 4,254.48 and the Smallcap Index rose 9.05% or 387.14 points, to 4,666.74.
Total volumes traded on both exchanges were at Rs 3100 crore. This comprised of Rs 2800 crore from the NSE F&O segment, Rs Rs 300 crore from NSE & BSE cash segments. Only 207 stocks traded on the NSE and 842 stocks on the BSE.
The UPA's (United Progressive Alliance) clean sweep win has cheered the markets and helped the benchmark indices to hit 20% upper circuit.
The 30-share Sensex closed 2,110.79 points or 17.34% higher at 14,284.21 and the Nifty surged 651.50 points or 17.74%, to settle at 4,323.15. The Sensex saw the 14,000 mark and the Nifty surpassed the 4,300 level for the first time since September 22, 2008. The Nifty May futures ended with 46.85 points premium.
Shankar Sharma of First Global said the win was an amazing verdict. “My long-term prediction is that the Bhartiya Janata Party (BJP) would reduce to 40 to 60 seats long ahead in the future,” he said. “This win is the ultimate game changer for the country, comparable to what happened in ‘84-‘85 and in ’91,” he said. Sharma sees a 40% rally in the next two to three months time.
Anand Tandon, Director Equities, Brics Securities, said one should take some money off the table if 14,500 on the Sensex hits “because no matter what the fact to the matter is that at some stage there are other factors other than just liquidity and euphoria which come in play.”
A lot of hedged positions were outstanding in the market today and hedges were taken via selling Nifty Calls.
Among the benchmark indices, the BSE Midcap was up 447.41 points or 11.75%, to 4,254.48 and the Smallcap Index rose 9.05% or 387.14 points, to 4,666.74.
Total volumes traded on both exchanges were at Rs 3100 crore. This comprised of Rs 2800 crore from the NSE F&O segment, Rs Rs 300 crore from NSE & BSE cash segments. Only 207 stocks traded on the NSE and 842 stocks on the BSE.
Friday, May 15, 2009
Mkts end strong ahead of election results
The markets closed higher ahead of the election results on Saturday. Good buying interest was seen in banks, capital goods, IT, realty, metal, power, pharma, auto and oil & gas stocks.
The Sensex closed up 300.51 points or 2.53% at 12173.42. It touched an intra day high of 12,219.54 and an intra day low of 11,948.70.
The Nifty ended up 78.20 points or 2.18% at 3671.65. It touched an intra day high of 3686.25 and an intra day low of 3597.85. The market breadth was positive, about 1576 shares advanced, 1170 shares declined, and 374 shares were unchanged.
Top gainers on the Sensex were Ranbaxy Labs at Rs 199.80 up 8.59%, ICICI Bank at Rs 574.45 up 7.03%, Grasim at Rs 1,881.60 up 4.96%, Bharti Airtel at Rs 799.80 up 4.68% and L&T at Rs 988.15 up 4.32%.
However, top losers on the Sensex were ONGC at Rs 812.95 down 2.27%, NTPC at Rs 187.60 down 0.56%, ITC at Rs 186.15 down 0.51%, Hindalco at Rs 70.40 down 0.49% and HUL at Rs 224.30 down 0.09%.
The flows were mixed at FII desk with volumes relatively low in today's trade. Aban offshore was rallying on rumors of institutional buying however delivery volumes were on the lower side. The stock was up more than 20%. Sugar stocks saw some buying interest ahead of election results tomorrow.
Nirmal Jain of India Infoline said the markets can rally if National Democratic Alliance (NDA) comes to power. "However, it will consolidate and trade rangebound if United Progressive Alliance (UPA) comes to power. If that happens, the market is most likely to await budget cues." According to him, institutions are relieved that the chance of Left coming to power has decreased. Speaking on how the markets will trade on Monday post the declaration of election results on Saturday, Jain said, "We are unlikely to see a Black Monday due to reduced speculative positions".
The Sensex closed up 300.51 points or 2.53% at 12173.42. It touched an intra day high of 12,219.54 and an intra day low of 11,948.70.
The Nifty ended up 78.20 points or 2.18% at 3671.65. It touched an intra day high of 3686.25 and an intra day low of 3597.85. The market breadth was positive, about 1576 shares advanced, 1170 shares declined, and 374 shares were unchanged.
Top gainers on the Sensex were Ranbaxy Labs at Rs 199.80 up 8.59%, ICICI Bank at Rs 574.45 up 7.03%, Grasim at Rs 1,881.60 up 4.96%, Bharti Airtel at Rs 799.80 up 4.68% and L&T at Rs 988.15 up 4.32%.
However, top losers on the Sensex were ONGC at Rs 812.95 down 2.27%, NTPC at Rs 187.60 down 0.56%, ITC at Rs 186.15 down 0.51%, Hindalco at Rs 70.40 down 0.49% and HUL at Rs 224.30 down 0.09%.
The flows were mixed at FII desk with volumes relatively low in today's trade. Aban offshore was rallying on rumors of institutional buying however delivery volumes were on the lower side. The stock was up more than 20%. Sugar stocks saw some buying interest ahead of election results tomorrow.
Nirmal Jain of India Infoline said the markets can rally if National Democratic Alliance (NDA) comes to power. "However, it will consolidate and trade rangebound if United Progressive Alliance (UPA) comes to power. If that happens, the market is most likely to await budget cues." According to him, institutions are relieved that the chance of Left coming to power has decreased. Speaking on how the markets will trade on Monday post the declaration of election results on Saturday, Jain said, "We are unlikely to see a Black Monday due to reduced speculative positions".
News Capsules 15- May
• Cairn India is open to buying the 30 per cent stake that government-owned Oil and Natural Gas Corporation (ONGC) owns in its oil block in Rajasthan. Cairn India is the operator of the block, with 70 per cent ownership currently.
• Great Offshore, which saw an effective change of management control last week, stands to lose Rs 73 lakh daily revenue after missing the deadline to provide a shallow water rig to the Oil and Natural Gas Corporation (ONGC).
• With just two days to go before the general election results are declared, the six board members of Satyam Computer Services today met Prime Minister Manmohan Singh and Planning Commission Deputy Chairman Montek Singh Ahluwalia.
• More than a fortnight after its workers went on an indefinite strike, Nestle India today partially resumed production at its factory in the industrial town of Pantnagar in Uttarakhand.
• As Indian car manufacturers plan to tap the growing global market for fuel-efficient compact cars through a series of launches in Europe and the US, Maruti and Tata Motors recently went scouting to Detroit for experienced engineers.
• Singtel, which holds nearly 30 per cent stake in India's Bharti Airtel, has posted a steep drop in the fourth quarter profit to about USD 615.3 million even as the Indian entity's contribution to the bottomline rose 18 per cent during the same period.
• Great Offshore, which saw an effective change of management control last week, stands to lose Rs 73 lakh daily revenue after missing the deadline to provide a shallow water rig to the Oil and Natural Gas Corporation (ONGC).
• With just two days to go before the general election results are declared, the six board members of Satyam Computer Services today met Prime Minister Manmohan Singh and Planning Commission Deputy Chairman Montek Singh Ahluwalia.
• More than a fortnight after its workers went on an indefinite strike, Nestle India today partially resumed production at its factory in the industrial town of Pantnagar in Uttarakhand.
• As Indian car manufacturers plan to tap the growing global market for fuel-efficient compact cars through a series of launches in Europe and the US, Maruti and Tata Motors recently went scouting to Detroit for experienced engineers.
• Singtel, which holds nearly 30 per cent stake in India's Bharti Airtel, has posted a steep drop in the fourth quarter profit to about USD 615.3 million even as the Indian entity's contribution to the bottomline rose 18 per cent during the same period.
Pre Market Update 15-May
Market is likely to open on a positive note taking cues from the global markets. U.S. stocks rose on Thursday as investors returned to financial and technology shares on bets the recent rally could have more room to grow after a brief pullback. European shares rose on Thursday, snapping a three-day losing run, as gains for several banking heavyweights more than offset energy stocks dropping on weaker crude prices. Today, Asian stocks are up, paring the MSCI Asia Pacific Index’s first weekly decline in three, after Sony Corp. forecasted a smaller loss than analysts expected and bank borrowing costs plunged.
According to provisional data on NSE, foreign funds sold stocks worth a net Rs. 301.92 crore on Thrusday, 14 May 2009. Domestic funds bought shares worth a net Rs. 254.3 crore yesterday.
According to provisional data on NSE, foreign funds sold stocks worth a net Rs. 301.92 crore on Thrusday, 14 May 2009. Domestic funds bought shares worth a net Rs. 254.3 crore yesterday.
Post Market Update
Although the Indian markets ended the day on a weak note, they curbed a part of their losses during the second half of today’s trading session. The BSE-Sensex ended the day with losses of around 150 points, while the NSE-Nifty closed lower by about 40 points. On the other hand, stocks from the mid-cap and small-cap space ended the day on a firm note, higher by 0.4% and 0.7% respectively. While profit booking was witnessed in stocks from the energy and capital goods space, buying activity was witnessed in stocks from the realty and auto sectors.
All the other Asian markets ended the day on a weak note. The European indices are currently trading in the red as well. Rupee was trading at 49.82 against the US dollar at the time of writing.
Inflation (as measured by the WPI) has decreased to 0.48% for the week ended May 2. This is lower than the previous week figure of 0.7%. It may be noted that the decline in the inflation figure is in spite of the rise in prices of foods such as pulses, cereals and vegetables. The number for the same week last year stood at 8.7%.
As per a leading business daily, Maharashtra Seamless (MSL) has delayed its plan to set up two steel plants by almost two years on account of the dull economic conditions. It may be noted that the company had planned to set up two steel plants of 500,000 tonne capacity each in Maharashtra and Jharkhand with an investment of around Rs 30 bn. However, with the current economic scenario wherein the prices of key raw material like steel have fallen significantly, the company has deferred its plans of backward integration. However, the management has stated that it is open to acquiring smaller steel plants and is looking for a right offer. Further, it stated that the expansion plans of company’s seamless pipe making capacity are going as per schedule. The company is increasing its capacity from 350,000 tonnes to 500,000 tonnes over next three years. The stock of MSL ended the day on a firm note along with its peer, Welspun Gujarat Stahl.
Power stocks ended the day on a weak note led by Neyveli Lignite, Reliance Power and Tata Power. In a move to attain the set target of the eleventh five-year plan, the Central Electricity Authority (CEA) has rescheduled a bulk of its targets to the last two years of the plan (FY11 and FY12). It may be noted that as per the original targets of adding nearly 16,335 MW and 6,782 MW in FY08 and FY09 respectively, India added only 9,263 MW and 3,454 MW respectively. This translates to an underperformance of 43% and 50% respectively. As per the revised targets set by the CEA, about 84% of the power generation capacity that is to be added during the 11th Plan will be commissioned during the last three years of the plan - FY10, FY11, and FY12. As per the original target, the same figure stood at 70%. In addition, the capacity addition target for the 11th plan has been revised to 80,010 MW from 78,577 MW earlier (an increase of 2%). It may be noted that in the last three five-year plans, the actual additions in the country have been only half of what was envisaged. In addition, a handful of experts, including members of the Planning Commission team have mentioned that the country will not be able to manage a capacity addition of more than 65,000 MW during the period. The reason behind this is lack of resources.
All the other Asian markets ended the day on a weak note. The European indices are currently trading in the red as well. Rupee was trading at 49.82 against the US dollar at the time of writing.
Inflation (as measured by the WPI) has decreased to 0.48% for the week ended May 2. This is lower than the previous week figure of 0.7%. It may be noted that the decline in the inflation figure is in spite of the rise in prices of foods such as pulses, cereals and vegetables. The number for the same week last year stood at 8.7%.
As per a leading business daily, Maharashtra Seamless (MSL) has delayed its plan to set up two steel plants by almost two years on account of the dull economic conditions. It may be noted that the company had planned to set up two steel plants of 500,000 tonne capacity each in Maharashtra and Jharkhand with an investment of around Rs 30 bn. However, with the current economic scenario wherein the prices of key raw material like steel have fallen significantly, the company has deferred its plans of backward integration. However, the management has stated that it is open to acquiring smaller steel plants and is looking for a right offer. Further, it stated that the expansion plans of company’s seamless pipe making capacity are going as per schedule. The company is increasing its capacity from 350,000 tonnes to 500,000 tonnes over next three years. The stock of MSL ended the day on a firm note along with its peer, Welspun Gujarat Stahl.
Power stocks ended the day on a weak note led by Neyveli Lignite, Reliance Power and Tata Power. In a move to attain the set target of the eleventh five-year plan, the Central Electricity Authority (CEA) has rescheduled a bulk of its targets to the last two years of the plan (FY11 and FY12). It may be noted that as per the original targets of adding nearly 16,335 MW and 6,782 MW in FY08 and FY09 respectively, India added only 9,263 MW and 3,454 MW respectively. This translates to an underperformance of 43% and 50% respectively. As per the revised targets set by the CEA, about 84% of the power generation capacity that is to be added during the 11th Plan will be commissioned during the last three years of the plan - FY10, FY11, and FY12. As per the original target, the same figure stood at 70%. In addition, the capacity addition target for the 11th plan has been revised to 80,010 MW from 78,577 MW earlier (an increase of 2%). It may be noted that in the last three five-year plans, the actual additions in the country have been only half of what was envisaged. In addition, a handful of experts, including members of the Planning Commission team have mentioned that the country will not be able to manage a capacity addition of more than 65,000 MW during the period. The reason behind this is lack of resources.
Thursday, May 14, 2009
Calls for 14-May
Sell IVRCL Infra with stop loss of Rs 165 for a target of Rs 135
Sell Reliance Capital with stop loss of Rs 595 for a target of Rs 510
Buy Kalpataru Power around Rs 510-Rs 466. Stop Loss of Rs 461, book profit at Rs 559-Rs 653. Use rules indicated for application of the levels
Sell Glenmark Pharma around Rs 170-Rs 173.40. Stop Loss of Rs 177, cover short at Rs 164.80-Rs 156.20
Sell Reliance Capital with stop loss of Rs 595 for a target of Rs 510
Buy Kalpataru Power around Rs 510-Rs 466. Stop Loss of Rs 461, book profit at Rs 559-Rs 653. Use rules indicated for application of the levels
Sell Glenmark Pharma around Rs 170-Rs 173.40. Stop Loss of Rs 177, cover short at Rs 164.80-Rs 156.20
Buy IDFC above Rs 96. Stop loss of Rs 92.70, target of Rs 100.20-Rs 101.30-Rs 104.60.(Intra-day/Positional Call)
Global Markets
Today the markets are likely to open negative. The sentiments are negative and all of the other major Asian markets are trading negative. The coming session is likely to witness a range of 3520 on declines and 3680 on advances.
WORLD MARKET COMMENTARY
The Dow Jones Industrial Average (DJIA) closed lower by 184.22 points at 8284.89, NASDAQ index down by 51.73 points at 1664.19 and the S&P 500 (SPX) also closed lower by 24.43 points at 883.92. Today major stock markets in Asia are trading positive. The Shanghai Composite is trading down by 44.23 points at 2619.53 Hang Seng is trading down by 570.07 points at 16489.55. However Japan’s Nikkei is trading lower by 237.90 points at 9102.59. South Korea’s Seoul Composite is down by 26.54 points at 1387.98 and Singapore’s Straits Times is down by 47.00 points at 2138.29.
Singapore Nifty is trading down by 81 points at 3558.00
WORLD MARKET COMMENTARY
The Dow Jones Industrial Average (DJIA) closed lower by 184.22 points at 8284.89, NASDAQ index down by 51.73 points at 1664.19 and the S&P 500 (SPX) also closed lower by 24.43 points at 883.92. Today major stock markets in Asia are trading positive. The Shanghai Composite is trading down by 44.23 points at 2619.53 Hang Seng is trading down by 570.07 points at 16489.55. However Japan’s Nikkei is trading lower by 237.90 points at 9102.59. South Korea’s Seoul Composite is down by 26.54 points at 1387.98 and Singapore’s Straits Times is down by 47.00 points at 2138.29.
Singapore Nifty is trading down by 81 points at 3558.00
News Capsules
• After infusing Rs 3,860 crore into DLF Assets Ltd (DAL) by selling a 9.9 per cent stake in realty major DLF to institutional investors, promoters K P Singh and family plan to list the real estate investment trust in the next 18 to 24 months.
• Mahindra & Mahindra is set to challenge domination of Ashok Leyland and Tata Motors (both with a market share of over 90 per cent) by offering trucks with capacities ranging from 16 tonnes to 44 tonnes by the end of this year. These large CVs will be manufactured by its joint venture company, Mahindra Navistar Automotive Ltd (MNAL), which was set up in 2005. Mahindra holds 51 in the JV. Navistar International Corporation is one of North America’s largest CV makers.
• With full-service carriers (FSCs) Jet Airways and Kingfisher Airlines shifting over 78 daily flights onto their low-cost platforms this week, low-cost carriers (LCCs) say they will see fares going down by at least 10 per cent on specific routes.
• Kishore Biyani-promoted Pantaloon Retail’s same-store sales in April grew the most in six months because of strong consumer demand. Same-store sales in the value retailing segment grew 7.02 per cent, the most since Novemeber, to Rs 308.19 crore. Sales in the lifestyle segment grew 6.03 per cent to Rs 119.53 crore. Sales in the home retailing segment fell 28.21 per cent to Rs 34.57 crore. Total sales for April rose 20.03 per cent to Rs 595.81 crore.
• Drug major Lupin will soon increase its stake in Generic Health Pty Ltd, a major generics drug supplier in Australia, to over 50 per cent in order to corner a major share of the growing Australian market.
• Real estate major DLF has finally exited the troubled Rs 33,000 crore public-private partnership (PPP) township project at Dankuni in Hooghly district of West Bengal.
• UltraTech Cement, the second-largest manufacturer after Holcim’s ACC in terms of sales and capacity, does not intend to rein in expansion plans even though the domestic market is likely to see overcapacity in the next few quarters.
• BPCL Kochi Refinery is all set to receive the mega main reactor for its new vacuum gas oil hydro desulphurisation unit. The new unit is coming up as part of the capacity expansion and modernisation project that is slated for completion in December 2009.
• Mahindra & Mahindra is set to challenge domination of Ashok Leyland and Tata Motors (both with a market share of over 90 per cent) by offering trucks with capacities ranging from 16 tonnes to 44 tonnes by the end of this year. These large CVs will be manufactured by its joint venture company, Mahindra Navistar Automotive Ltd (MNAL), which was set up in 2005. Mahindra holds 51 in the JV. Navistar International Corporation is one of North America’s largest CV makers.
• With full-service carriers (FSCs) Jet Airways and Kingfisher Airlines shifting over 78 daily flights onto their low-cost platforms this week, low-cost carriers (LCCs) say they will see fares going down by at least 10 per cent on specific routes.
• Kishore Biyani-promoted Pantaloon Retail’s same-store sales in April grew the most in six months because of strong consumer demand. Same-store sales in the value retailing segment grew 7.02 per cent, the most since Novemeber, to Rs 308.19 crore. Sales in the lifestyle segment grew 6.03 per cent to Rs 119.53 crore. Sales in the home retailing segment fell 28.21 per cent to Rs 34.57 crore. Total sales for April rose 20.03 per cent to Rs 595.81 crore.
• Drug major Lupin will soon increase its stake in Generic Health Pty Ltd, a major generics drug supplier in Australia, to over 50 per cent in order to corner a major share of the growing Australian market.
• Real estate major DLF has finally exited the troubled Rs 33,000 crore public-private partnership (PPP) township project at Dankuni in Hooghly district of West Bengal.
• UltraTech Cement, the second-largest manufacturer after Holcim’s ACC in terms of sales and capacity, does not intend to rein in expansion plans even though the domestic market is likely to see overcapacity in the next few quarters.
• BPCL Kochi Refinery is all set to receive the mega main reactor for its new vacuum gas oil hydro desulphurisation unit. The new unit is coming up as part of the capacity expansion and modernisation project that is slated for completion in December 2009.
Pre Market Outlook 14-May
Market is likely to see a gap down opening taking cues from the global markets. U.S. stocks tumbled on Wednesday as a gloomy retail sales report revived recent anxiety about the economy's struggle and caused a broad sell-off that accelerated late in the session. European shares fell for the third straight session on Wednesday, pulled down mainly by financials and miners while defensive sectors such as food and pharma eked out gains. Asian stocks fell as an unexpected drop in U.S. retail sales and a decline in commodity prices dimmed the earnings outlook for electronics and metals producers. Infaltion is to be announced today.
Accroding to the Reuters Poll, Inflation Rate is expected at 0.3% for the week ended May 02 ‘09
According to provisional data on NSE, foreign funds bought stocks worth a net Rs. 4106.96 crore on Wednesday , 13 May 2009. Domestic funds bought shares worth a net Rs. 105.73 crore yesterday.
Post Market Update
Selling in the index heavyweights continued steadily till the closing bell, thus ensuring a negative close for the markets. The Sensex closed lower by around 150 points, while the Nifty closed lower by 50 points. Stocks from the metal and software sectors led the pack of losers, while select stocks from the cement and banking sectors garnered inventors’ interest.
Other Asian markets ended the day on a mixed note. The European indices are also witnessing mixed trend currently. Rupee was trading at 49.49 against the US dollar at the time of writing.
As per a leading business daily, government is likely to issue oil bonds worth Rs 103 bn to oil marketing companies (OMCs) IOC, BPCL and HPCL this week to compensate for the losses they have incurred on fuel sales in last fiscal. It may be noted that the government controls retail prices of petrol, diesel, kerosene and cooking gas. The OMCs have lost about Rs 1 trillion in FY09 due to selling fuel below input cost. So far, the government has issued oil bonds worth nearly Rs 610 bn to these companies. Moreover, state-owned upstream companies - ONGC, Oil India and Gail have offered discounts worth Rs 320 bn to make up some of the losses. The proposed bond issue is expected to make good the losses of the OMCs and help them report better financials. Stocks from the energy sector closed mixed.
The stock of Shriram Transport ended the day trade firm, mainly on account of its splendid results reported for 4QFY09 and FY09. The company’s operating income recorded a growth of 30% YoY and 50% YoY during 4QFY09 and FY09 respectively. However, the proportionate interest expenses recorded a higher growth of around 52.5% YoY in FY09 that resulted in the fall of net interest margins. The operating expenses grew by 39% YoY in FY09. Net profits recorded a proportionally higher growth of 37% YoY and 57% YoY. The company has proposed a final dividend of Rs 4 per share along with interim dividend of Re 1 per share for the fiscal. This translates into dividend yield of Rs 1.9% at current prices.
Global car manufactures are eyeing the Indian market not only as a growth driver but also as a way to cut costs. World’s largest carmaker Toyota, Europe’s largest car maker Volkswagen, Japan’s Honda and America’s Ford Motor are planning to follow Maruti Suzuki’s strategy of launching hatchback and sedan variants for new launches. The move to use the same technology to make both big and small car models for their future projects in India is likely to reduce costs.
Other Asian markets ended the day on a mixed note. The European indices are also witnessing mixed trend currently. Rupee was trading at 49.49 against the US dollar at the time of writing.
As per a leading business daily, government is likely to issue oil bonds worth Rs 103 bn to oil marketing companies (OMCs) IOC, BPCL and HPCL this week to compensate for the losses they have incurred on fuel sales in last fiscal. It may be noted that the government controls retail prices of petrol, diesel, kerosene and cooking gas. The OMCs have lost about Rs 1 trillion in FY09 due to selling fuel below input cost. So far, the government has issued oil bonds worth nearly Rs 610 bn to these companies. Moreover, state-owned upstream companies - ONGC, Oil India and Gail have offered discounts worth Rs 320 bn to make up some of the losses. The proposed bond issue is expected to make good the losses of the OMCs and help them report better financials. Stocks from the energy sector closed mixed.
The stock of Shriram Transport ended the day trade firm, mainly on account of its splendid results reported for 4QFY09 and FY09. The company’s operating income recorded a growth of 30% YoY and 50% YoY during 4QFY09 and FY09 respectively. However, the proportionate interest expenses recorded a higher growth of around 52.5% YoY in FY09 that resulted in the fall of net interest margins. The operating expenses grew by 39% YoY in FY09. Net profits recorded a proportionally higher growth of 37% YoY and 57% YoY. The company has proposed a final dividend of Rs 4 per share along with interim dividend of Re 1 per share for the fiscal. This translates into dividend yield of Rs 1.9% at current prices.
Global car manufactures are eyeing the Indian market not only as a growth driver but also as a way to cut costs. World’s largest carmaker Toyota, Europe’s largest car maker Volkswagen, Japan’s Honda and America’s Ford Motor are planning to follow Maruti Suzuki’s strategy of launching hatchback and sedan variants for new launches. The move to use the same technology to make both big and small car models for their future projects in India is likely to reduce costs.
Wednesday, May 13, 2009
Calls for May 13
Buy Punjab National Bank with stop loss of Rs 515 for targets of Rs 600-Rs 650
Buy HDIL with stop loss of Rs 160 for targets of Rs 200-Rs 240
Buy Suzlon Energy around Rs 78.10-Rs 73.90. Stop Loss of Rs 71, book profit at Rs 85-Rs 96.20
Sell IVRCL Infra around Rs 158.90-Rs 167.50. Stop Loss of Rs 169, cover short at Rs 148.80-Rs 130.10
Buy Orchid Chemicals & Pharmaceuticals with a stop loss of Rs 99 for a short term target of Rs 134
Buy HDIL with stop loss of Rs 160 for targets of Rs 200-Rs 240
Buy Suzlon Energy around Rs 78.10-Rs 73.90. Stop Loss of Rs 71, book profit at Rs 85-Rs 96.20
Sell IVRCL Infra around Rs 158.90-Rs 167.50. Stop Loss of Rs 169, cover short at Rs 148.80-Rs 130.10
Buy Orchid Chemicals & Pharmaceuticals with a stop loss of Rs 99 for a short term target of Rs 134
News Capsules
• Reliance Industries Ltd (RIL) is planning to use its surplus cash to repay about Rs 15,000 crore or about 21 per cent of its debt during the current financial year. The combined debt of RIL and its subsidiary RPL will be brought down to around Rs.57,000 cr from Rs 72,000 cr at present.
• Ratnagiri Gas & Power Pvt., the operator of India’s biggest gas-fired power plant, may shortlist customers to lease its 1 million tonne-a-year liquefied natural gas import terminal by July. The company will choose “one or more than one” of the six initial bids sent by companies, including Reliance Industries Ltd, India’s biggest by value, and state-run Indian Oil Corp.
• Delhi-based hospital chain, Fortis Healthcare, forayed into healthcare market in Bangalore with the opening of its maiden hospital at Seshadripuram in city centre. This is also its second venture in South India, where it is trying to get a major foothold. The hospital is a brownfield project with 100 beds and is developed as a super-speciality hospital, focusing more on preventive healthcare.
• Tata Steel plans to prepay over £200 million (about Rs 1,500 crore at current exchange rates) of the non-recourse debt that it took to acquire Anglo-Dutch steel major Corus in 2007. The plan to prepay the debt is part of the Jamshedpur-based steel company’s efforts to derisk its European operations in the face of tough conditions in the steel market.
• Essar Telecom Infrastructure, the country’s second-largest mobile tower company not attached to any cellphone operator, has approached American Tower Corporation (ATC) for a possible merger or even a complete sellout according to person familiar with the development.
• Aditya Birla Nuvo has decided to create a holding company for its financial services business comprising asset management, insurance, stock broking and distribution. The move is aimed at separating the fledgling financial services business of the company from its manufacturing business.
• Ratnagiri Gas & Power Pvt., the operator of India’s biggest gas-fired power plant, may shortlist customers to lease its 1 million tonne-a-year liquefied natural gas import terminal by July. The company will choose “one or more than one” of the six initial bids sent by companies, including Reliance Industries Ltd, India’s biggest by value, and state-run Indian Oil Corp.
• Delhi-based hospital chain, Fortis Healthcare, forayed into healthcare market in Bangalore with the opening of its maiden hospital at Seshadripuram in city centre. This is also its second venture in South India, where it is trying to get a major foothold. The hospital is a brownfield project with 100 beds and is developed as a super-speciality hospital, focusing more on preventive healthcare.
• Tata Steel plans to prepay over £200 million (about Rs 1,500 crore at current exchange rates) of the non-recourse debt that it took to acquire Anglo-Dutch steel major Corus in 2007. The plan to prepay the debt is part of the Jamshedpur-based steel company’s efforts to derisk its European operations in the face of tough conditions in the steel market.
• Essar Telecom Infrastructure, the country’s second-largest mobile tower company not attached to any cellphone operator, has approached American Tower Corporation (ATC) for a possible merger or even a complete sellout according to person familiar with the development.
• Aditya Birla Nuvo has decided to create a holding company for its financial services business comprising asset management, insurance, stock broking and distribution. The move is aimed at separating the fledgling financial services business of the company from its manufacturing business.
DLF Promotor Stake Dilution
Promoters of realty major DLF plan to sell 16.8 crore shares — about 9.9% of the equity — via a market sale, raising nearly Rs 3,800 crore, sources said. The stake sale may take place via overnight bookbuilding issue and Deutsche Bank is the appointed book runner along with JPMorgan, sources added. Private investment companies controlled by Rajiv Singh and family will sell the stake, which would be executed within the next two trading sessions.
Promoters of realty major DLF are looking to offload their stake in the company and are looking to raise USD 400-700 million from the stake sale, reports CNBC-TV18 quoting sources. Proceeds from the stake sale will be ploughed into DLF Assets Limited (DAL), sources said. DLF honcho Kushal Pal Singh, along with his family, holds nearly 89% in DLF. The proceeds into DAL could be used to buy DE Shaw’s stake in DAL — which had earlier invested USD 450 million in the company and wants to exit — or pay off DAL’s dues to DLF, sources further added. DAL’s outstanding dues to DLF stand at Rs 4,930 crore.
Deutsche Bank has been appointed banker for the promoter stake sale. The deal, which was supposed to close today, however has not closed yet. DLF promoters and management, it is learnt, have not directly spoken to investors about the stake sale.
When contacted, DLF said it did not comment on market speculation. Analysts are of the view that the stake sale is a good move as it does not dilute shareholders’ stake.
Promoters of realty major DLF are looking to offload their stake in the company and are looking to raise USD 400-700 million from the stake sale, reports CNBC-TV18 quoting sources. Proceeds from the stake sale will be ploughed into DLF Assets Limited (DAL), sources said. DLF honcho Kushal Pal Singh, along with his family, holds nearly 89% in DLF. The proceeds into DAL could be used to buy DE Shaw’s stake in DAL — which had earlier invested USD 450 million in the company and wants to exit — or pay off DAL’s dues to DLF, sources further added. DAL’s outstanding dues to DLF stand at Rs 4,930 crore.
Deutsche Bank has been appointed banker for the promoter stake sale. The deal, which was supposed to close today, however has not closed yet. DLF promoters and management, it is learnt, have not directly spoken to investors about the stake sale.
When contacted, DLF said it did not comment on market speculation. Analysts are of the view that the stake sale is a good move as it does not dilute shareholders’ stake.
IIP fails to dampen buoyant mood
The Indian indices began the day's proceedings below the dotted line. However, markets bounced back in the afternoon session on account of intensified buying activity witnessed at lower levels. The gains in the Indian markets continued until the final hour of the day's trading session. The markets closed on a strong note with gains across the sectors. The BSE-Sensex and NSE-Nifty ended the day with gains of around 490 points and 125 points respectively. Stocks from the mid-cap and small-cap space ended with gains of 0.9% and 1.3% respectively.
Other Asian markets ended the day on a mixed note. The European indices are currently trading firm. Rupee was trading at 49.32 against the US dollar at the time of writing.
The index of industrial production, which is the most widely followed gauge of industrial performance, declined by 2.3% in March as compared to a rise of 5.5% during the corresponding month in 2008. The drop has come mainly on account of poor performance by the manufacturing sector, which contracted by 3.3% during the same period under consideration. While the mining sector reported a dismal growth of 0.4%, electricity output was higher by a decent 6.3%. In FY09, industrial output reported a meager growth of 2.4% as compared to 8.5% reported in FY08.
As per a leading business daily, telecom operators are expected to issue multi-year BPO contracts during the next few months. The operators are expected to consolidate their outsourcing contracts to fewer vendors in order to insure greater quality control. Firms like Tata Teleservices and Idea Cellular have already invited new bids from the BPO firms, which will be around Rs 1.5 bn each. Besides existing players expanding their services into new circles or launching new services, IT outsourcing demands will also come from the new operators that are being lined up to start their operations. It is expected that outsourcing services from the telecom sectors are expected to grow to Rs 28 bn by FY12 from Rs 7 bn in FY08. Stocks from the telecom sector closed mixed.
As per a leading business daily, NIIT India Ltd's premier IT training company has bagged a contract worth Rs 844 m from the Gujarat education department to provide computer-aided learning in 1,870 high and higher secondary government schools within the state. The contract will cover 900,000 students in classes 9-12. NIIT had earlier won contract from the state governments of Rajasthan, Maharashtra, Andhra Pradesh and Bihar to provide training in schools. The education contract with the Andhra Pradesh government was one of the largest turn-key IT education contracts in the school segment. The school learning solutions business segment accounts for 13% of total revenues. Of the total revenues of this business segment, nearly 70% comes from government schools. The management has indicated that this segment is expected to grow at 40% going forward. The stock ended the day's session on a firm note.
Other Asian markets ended the day on a mixed note. The European indices are currently trading firm. Rupee was trading at 49.32 against the US dollar at the time of writing.
The index of industrial production, which is the most widely followed gauge of industrial performance, declined by 2.3% in March as compared to a rise of 5.5% during the corresponding month in 2008. The drop has come mainly on account of poor performance by the manufacturing sector, which contracted by 3.3% during the same period under consideration. While the mining sector reported a dismal growth of 0.4%, electricity output was higher by a decent 6.3%. In FY09, industrial output reported a meager growth of 2.4% as compared to 8.5% reported in FY08.
As per a leading business daily, telecom operators are expected to issue multi-year BPO contracts during the next few months. The operators are expected to consolidate their outsourcing contracts to fewer vendors in order to insure greater quality control. Firms like Tata Teleservices and Idea Cellular have already invited new bids from the BPO firms, which will be around Rs 1.5 bn each. Besides existing players expanding their services into new circles or launching new services, IT outsourcing demands will also come from the new operators that are being lined up to start their operations. It is expected that outsourcing services from the telecom sectors are expected to grow to Rs 28 bn by FY12 from Rs 7 bn in FY08. Stocks from the telecom sector closed mixed.
As per a leading business daily, NIIT India Ltd's premier IT training company has bagged a contract worth Rs 844 m from the Gujarat education department to provide computer-aided learning in 1,870 high and higher secondary government schools within the state. The contract will cover 900,000 students in classes 9-12. NIIT had earlier won contract from the state governments of Rajasthan, Maharashtra, Andhra Pradesh and Bihar to provide training in schools. The education contract with the Andhra Pradesh government was one of the largest turn-key IT education contracts in the school segment. The school learning solutions business segment accounts for 13% of total revenues. Of the total revenues of this business segment, nearly 70% comes from government schools. The management has indicated that this segment is expected to grow at 40% going forward. The stock ended the day's session on a firm note.
Tuesday, May 12, 2009
Industry Exposure - CMF - April '09
Given below is a snapshot of TOP 10 industry exposures which constitute about 85% of the CMF Book as at 30th April ’09.
S.No. | Industry | Exposure (Rs. Lakhs) | % Contribution to Total CMF Book | Major Scrips |
1 | TEXTILES | 4956 | 15.11% | Raymond, Alok Ind., SRF |
2 | HOSPITAL | 4500 | 13.73% | Apollo Hospitals |
3 | ENTERTAINMENT | 4150 | 12.66% | Zee Entertainment, TV Eighteen |
4 | DIVERSIFIED | 3005 | 9.16% | Max India, ITC |
5 | PHARMACEUTICALS | 2888 | 8.81% | Aurobindo Pharma, IPCA Labs |
6 | AUTOMOBILES | 2506 | 7.64% | Mahindra & Mahindra |
7 | GLASS | 1578 | 4.81% | Asahi India Glass |
8 | TELECOM | 1529 | 4.66% | Tulip Telecom |
9 | INFORMATION TECHNOLOGY | 1499 | 4.57% | Megasoft, HCL Tech, ICSA India, Cranes Software |
10 | HOTEL | 1396 | 4.26% | EIH, Viceroy Hotels |
Others | 4779 | 14.58% | ||
TOTAL | 32,787 | 100.00% |
News Capsules
• Indian telecom giant Bharti Airtel has now become the country's biggest music company, overtaking the industry leader Saregama, on the back of its music-related value-added mobile services.
• The US buyout specialist Kohlberg Kravis Roberts (KKR) has joined the race to acquire a minority stake in Vijay Mallya-promoted United Spirits Ltd.
• Indian Oil Corp may cuts its stake in the massive Farsi gas and oil field in Iran as it faces financing pressure due to continuing losses on fuel sales.
• Production at tyre giant MRF’s factories at Arakkonam and at Puducherry, has been hit following a sit-in strike by around 3,000 workers.
• Barely four months after Mahindra & Mahindra (M&M) rolled out the Xylo, a multi-seater utility vehicle that got a good market reception, the model has ran into a production hurdle. The company’s Nashik plant, where the Xylo is made, has been paralysed for the past five working days due to an intense labour strike.
• The country's largest carmaker, Maruti Suzuki India, will be increasing headcount in its R&D division to 1,000 by the end of March 2010, as the firm gears up to meet parent Suzuki Motor Corp's aim of making the Indian subsidiary global hub for small car development.
• Lupin, a generic drug maker, has settled all patent litigation with US drug maker Wyeth for Effexor XR capsules, the US firm’s branded anti-depressant.
• The success story of Hamara Bajaj scooter campaign may have ended after Bajaj Auto decided to stop production of its two key models — Chetak and Super.
• Wipro Consumer Care & Lighting Business, the FMCG, furniture and lighting arm of $5 billion software major Wipro Limited has dragged Featherlite Office Systems, a Bangalore-based office furniture maker, to court for infringement of their registered design.
• Maruti Suzuki is now looking to be an aggressive player in the diesel segment, a category which is dominated by Tata Motors. After the success of the Swift hatchback and the Dzire sedan in the diesel variant, the company is hoping to replicate this success in its upcoming model Ritz.
• The US buyout specialist Kohlberg Kravis Roberts (KKR) has joined the race to acquire a minority stake in Vijay Mallya-promoted United Spirits Ltd.
• Indian Oil Corp may cuts its stake in the massive Farsi gas and oil field in Iran as it faces financing pressure due to continuing losses on fuel sales.
• Production at tyre giant MRF’s factories at Arakkonam and at Puducherry, has been hit following a sit-in strike by around 3,000 workers.
• Barely four months after Mahindra & Mahindra (M&M) rolled out the Xylo, a multi-seater utility vehicle that got a good market reception, the model has ran into a production hurdle. The company’s Nashik plant, where the Xylo is made, has been paralysed for the past five working days due to an intense labour strike.
• The country's largest carmaker, Maruti Suzuki India, will be increasing headcount in its R&D division to 1,000 by the end of March 2010, as the firm gears up to meet parent Suzuki Motor Corp's aim of making the Indian subsidiary global hub for small car development.
• Lupin, a generic drug maker, has settled all patent litigation with US drug maker Wyeth for Effexor XR capsules, the US firm’s branded anti-depressant.
• The success story of Hamara Bajaj scooter campaign may have ended after Bajaj Auto decided to stop production of its two key models — Chetak and Super.
• Wipro Consumer Care & Lighting Business, the FMCG, furniture and lighting arm of $5 billion software major Wipro Limited has dragged Featherlite Office Systems, a Bangalore-based office furniture maker, to court for infringement of their registered design.
• Maruti Suzuki is now looking to be an aggressive player in the diesel segment, a category which is dominated by Tata Motors. After the success of the Swift hatchback and the Dzire sedan in the diesel variant, the company is hoping to replicate this success in its upcoming model Ritz.
Pre Market Outlook 12-May
The markets are likely to open on a negative note taking cues from the global markets.
The U.S. stocks fell on Monday as investors booked profits in financials after a twomonth
run-up and news of several banks' share offerings heightened worries about their dilutive impact on current shareholders. The European and Asian stocks also fell on Monday as investors booked gains on last week's rally and turned cautious about claims that the global economy is past the worst and ready to recover.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs. 79.88 crore on Monday, 11 May 2009. Domestic funds sold shares worth a net Rs. 17.31 crore yesterday.
The U.S. stocks fell on Monday as investors booked profits in financials after a twomonth
run-up and news of several banks' share offerings heightened worries about their dilutive impact on current shareholders. The European and Asian stocks also fell on Monday as investors booked gains on last week's rally and turned cautious about claims that the global economy is past the worst and ready to recover.
According to provisional data on NSE, foreign funds bought stocks worth a net Rs. 79.88 crore on Monday, 11 May 2009. Domestic funds sold shares worth a net Rs. 17.31 crore yesterday.
Monday, May 11, 2009
News Capsules
• Indian Oil Corporation (IOC) has decided to shut down five out of its eight depots in Orissa including the one in Berhampur. The public sector oil company aims to rationalize its operations across the country and has decided to close the very old and small depots on grounds of safety.
• Faced with the tight prospect of meeting a $2-billion (about Rs 10,000-crore) bridge loan repayment by June, Tata Motors is currently exploring options, including an overseas bond issue, to partly repay the loan obligation, as there is a reduced appetite for a local bond issue.
• The JSW group-promoted JSW Energy is planning to invest Rs 8,000 crore to build two thermal power projects of a combined capacity of over 2,000 megawatts in Chhattisgarh and Orissa in the current fiscal year.
• Ruias-promoted Essar Steel will expand its global chain of retail brand — Steel Hypermarts — in Indonesia, Middle East, and other South Asian nations in the next three years. Essar already has two retail outlets in Indonesia. The company plans to invest Rs.300 crore to scale up its overseas presence to 40 outlets.
• Hindustan Unilever Ltd (HUL), India’s largest fast-moving consumer goods company, posted a 20.4 per cent increase in profit in the March quarter, before a one-time charge for retirement benefits and restructuring. Net profit after the one-time provision of Rs.86 crore was, however, up 3.7 percent at Rs.395 crore in the three months ended March 31, from Rs.381 crore a year earlier.
• The country's largest steel producer, SAIL, has entered into an agreement with engineering major Siemens for upgrading technical skills of its human resource and for bringing down the maintenance cost.
• India's top mobile company Bharti Airtel has entered into a multi-million dollar deal with Manchester United, under which its 100 million subscribers would get exclusive access to the mobile content related to one of the world's richest football clubs.
• Faced with the tight prospect of meeting a $2-billion (about Rs 10,000-crore) bridge loan repayment by June, Tata Motors is currently exploring options, including an overseas bond issue, to partly repay the loan obligation, as there is a reduced appetite for a local bond issue.
• The JSW group-promoted JSW Energy is planning to invest Rs 8,000 crore to build two thermal power projects of a combined capacity of over 2,000 megawatts in Chhattisgarh and Orissa in the current fiscal year.
• Ruias-promoted Essar Steel will expand its global chain of retail brand — Steel Hypermarts — in Indonesia, Middle East, and other South Asian nations in the next three years. Essar already has two retail outlets in Indonesia. The company plans to invest Rs.300 crore to scale up its overseas presence to 40 outlets.
• Hindustan Unilever Ltd (HUL), India’s largest fast-moving consumer goods company, posted a 20.4 per cent increase in profit in the March quarter, before a one-time charge for retirement benefits and restructuring. Net profit after the one-time provision of Rs.86 crore was, however, up 3.7 percent at Rs.395 crore in the three months ended March 31, from Rs.381 crore a year earlier.
• The country's largest steel producer, SAIL, has entered into an agreement with engineering major Siemens for upgrading technical skills of its human resource and for bringing down the maintenance cost.
• India's top mobile company Bharti Airtel has entered into a multi-million dollar deal with Manchester United, under which its 100 million subscribers would get exclusive access to the mobile content related to one of the world's richest football clubs.
Market Outlook 11-May
Markets are likely to open on a positive note, taking ques from global markets. U.S. stocks rose on Friday, and the Nasdaq capped its longest stretch of weekly gains in a decade as stress test results, which fueled hopes that the worst is over for the financial sector and reassuring jobs data, which suggested the economic slump is moderating. European shares also ended at their highest closing level in four months on Friday as financials gained ground after stress tests on U.S. banks revealed no nasty surprises and energy stocks tracked stronger crude prices. A recent surge in Asian shares lost steam ahead of US monthly jobs data later on Friday that might signal whether the global economy has indeed hit bottom, after stress tests on US banks offered no real surprises.
According to provisional data on NSE, foreign funds sold stocks worth a net Rs.
100.89 crore on Friday, 08 May 2009. Domestic funds bought shares worth a net Rs.
89.39 crore yesterday.
According to provisional data on NSE, foreign funds sold stocks worth a net Rs.
100.89 crore on Friday, 08 May 2009. Domestic funds bought shares worth a net Rs.
89.39 crore yesterday.
Thursday, May 7, 2009
Sentiment Indicator
PCR of index options is at 0.79 from last trading session’s0. 78.
PCR of Stock options is at 0.34 from last trading session’s 0.32.
PCR of total F&O is at 0.77 from last trading session’s 0.76.
The advances are 825, declines are 242 and unchanged are 47.
The implied volatility has decreased to 47.80 from last trading session’s 51.08
PCR of Stock options is at 0.34 from last trading session’s 0.32.
PCR of total F&O is at 0.77 from last trading session’s 0.76.
The advances are 825, declines are 242 and unchanged are 47.
The implied volatility has decreased to 47.80 from last trading session’s 51.08
News Update
Godrej Industries said it plans to buy back a maximum 57 lakh shares, or 9.9% equity at a ceiling price of Rs 275 a share.
JSW Steel said it is targeting 78% growth in saleable steel production to 6.1 million tonnes in the current financial year.
GIC Housing Finance net profit rose 38.80% to Rs 17.09 crore in Q4 March 2009 over Q4 March 2008.
Reliance Industries has that hopes the company's growth may get boosted by selling gas from its deep-sea field off the east coast that started last month.
JSW Steel said it is targeting 78% growth in saleable steel production to 6.1 million tonnes in the current financial year.
GIC Housing Finance net profit rose 38.80% to Rs 17.09 crore in Q4 March 2009 over Q4 March 2008.
Reliance Industries has that hopes the company's growth may get boosted by selling gas from its deep-sea field off the east coast that started last month.
Post Market Review
Index has its fourth consecutive session of volatility & choppiness but more over it remained northward biased. Metal counter outperformed in today’s session while the Midcap stocks also participated well. Despite to range bound move, market breadth was persuade towards advancing side. Keeping in mind all the global cues & technical patterns, we expect that stock specific will be there in the near term with less emphasis on overall index movement. Global markets are also in line with our markets which is indeed positive signal for the near term.
Support –3630-3580 Resistance – 3710-3760
The 30-share BSE Sensex closed 164.19 points or 1.37% higher at 12,116.94 and the 50-share NSE Nifty shut shop at 3683.90, up 1.62% or 58.85 points over previous close. But broader indices outperformed the benchmark indices - the BSE Midcap Index was up 101.10 points or 2.75%, to settle at 3,776.94 and the Smallcap Index rose 2.66% or 110.59 points, to 4,263.60. Market breadth was positive due to gains in broader indices. About 1921 shares advanced while
1053 shares declined. Nearly 138 shares remained unchanged The S&P CNX Nifty was down by 58.85 points or 1.62% to 3683.90. The NSE turnover was down Rs.14874.22 from last trading session’s Rs. 18634.44 crore.
Nifty Futures Outlook
Today the markets are likely to open positive. The sentiments are positive and all of the other major Asian markets are trading positive. The coming session is likely to witness a range of 3600 on declines and 3750 on advances
Pre Market Outlook
Markets are likely to open on a positive note, taking ques from global markets. U.S. stocks rose on Wednesday after a private sector reading on the labor market signaled unemployment may be receding and leaked bank stress test results suggested most banks are healthier than thought. Asian stocks jumped on better-than- estimated U.S. and Australian jobs reports and an assurance from U.S. Treasury Secretary Timothy Geithner that none of the country’s biggest banks are insolvent. According to provisional data on NSE, foreign funds bought stocks worth a net Rs. 530.92 crore on Wednesday, 06 May 2009. Domestic funds sold shares worth a net Rs. 28.26 crore yesterday.
Wednesday, May 6, 2009
Sensex ends below 12k; realty, banks, metal, FMCG, IT drag
The benchmark indices witnessed selling pressure in the second half, after seeing consolidation for one and half sessions and ended lower. There was a news that large hedge fund offloaded exposure in major stocks, after 2 pm.
The Sensex closed below the 12,000 mark while the Nifty slipped below the 3700 level. The Nifty tested the 3700 mark today, for the first time since October 7, 2008. Shares of financials, technology, auto, capital goods, FMCG, metal, oil marketing and realty companies saw selling pressure.
The 50-share NSE Nifty shut shop at 3625.05, down 1.01% or 36.85 points, after shedding 92 points from day's high of 3717.05. The 30-share BSE Sensex closed 178.33 points or 1.47% lower at 11,952.75, after losing 319.35 points from day's high of 12,272.10.
Rajat K Bose of rajatkbose.com said, "Unless the Nifty falls below 3,590 it would be a bit too premature to take a negative call on the market. I would advice keeping positions light and do not be too adventurous to actually buy on this dip immediately as number of stocks have actually reached their major resistance levels but don’t be gung-ho on the short side either."
Deven Choksey of KR Choksey Securities said, "At every level, the market is witnessing the profit booking which is good fundamentally. Maybe after the stress test results are out for the banks in the US tomorrow, you could see the resumption of the trend once again on Friday and we can continue with that particular uptrend till the middle of the next week when one can probably expect the Nifty to go at around 3,760 and 3,820 thereafter. At that level you should see major amount of profit booking coming in and that is also going to be a time synchronizing well with the election result in that week. So maybe we are going to see that kind of a trend emerging hereafter."
Among the frontliners, Jaiprakash Associates, HDFC, DLF, Tata Steel, ICICI Bank, Sterlite Industries and Unitech were down 4.7-6.4%. On the sectoral front, the BSE Realty Index slipped 3.74%. Bank, Metal and FMCG indices were down 2-3%. Capital Goods, IT and Auto indices fell 0.8-1.5%.
The broader indices also witnessed selling pressure - the BSE Midcap Index declined 43.03 points or 1.16%, to 3,675.84 and the Smallcap Index fell 9.57 points or 0.23%, to settle at 4,153.01.
The Sensex closed below the 12,000 mark while the Nifty slipped below the 3700 level. The Nifty tested the 3700 mark today, for the first time since October 7, 2008. Shares of financials, technology, auto, capital goods, FMCG, metal, oil marketing and realty companies saw selling pressure.
The 50-share NSE Nifty shut shop at 3625.05, down 1.01% or 36.85 points, after shedding 92 points from day's high of 3717.05. The 30-share BSE Sensex closed 178.33 points or 1.47% lower at 11,952.75, after losing 319.35 points from day's high of 12,272.10.
Rajat K Bose of rajatkbose.com said, "Unless the Nifty falls below 3,590 it would be a bit too premature to take a negative call on the market. I would advice keeping positions light and do not be too adventurous to actually buy on this dip immediately as number of stocks have actually reached their major resistance levels but don’t be gung-ho on the short side either."
Deven Choksey of KR Choksey Securities said, "At every level, the market is witnessing the profit booking which is good fundamentally. Maybe after the stress test results are out for the banks in the US tomorrow, you could see the resumption of the trend once again on Friday and we can continue with that particular uptrend till the middle of the next week when one can probably expect the Nifty to go at around 3,760 and 3,820 thereafter. At that level you should see major amount of profit booking coming in and that is also going to be a time synchronizing well with the election result in that week. So maybe we are going to see that kind of a trend emerging hereafter."
Among the frontliners, Jaiprakash Associates, HDFC, DLF, Tata Steel, ICICI Bank, Sterlite Industries and Unitech were down 4.7-6.4%. On the sectoral front, the BSE Realty Index slipped 3.74%. Bank, Metal and FMCG indices were down 2-3%. Capital Goods, IT and Auto indices fell 0.8-1.5%.
The broader indices also witnessed selling pressure - the BSE Midcap Index declined 43.03 points or 1.16%, to 3,675.84 and the Smallcap Index fell 9.57 points or 0.23%, to settle at 4,153.01.
Realty takes the punch
Profit booking at higher levels led the indices to lose further ground during the final hour of trade. The BSE-Sensex ended the day with losses of around 180 points, while the NSE-Nifty closed lower by about 35 points. Stocks from the mid-cap and small-cap space ended the day on a weak note, lower by 1% and 0.2% respectively. Selling activity was witnessed in stocks across sectors, led by realty and banking. Power stocks, however, ended the day marginally in the green.
Most of the other Asian markets ended the day on a firm note. The European indices are currently trading firm as well. Rupee was trading at 50.6 against the US dollar at the time of writing.
As per a leading business daily, L&T plans to set up three more operating companies in the defense, aerospace and nuclear power businesses. The company plans to create these companies over the next three to four years. As of now, these businesses fall under the company’s heavy engineering division, which focuses on manufacturing and supplying the critical equipment and systems to core sector industries. This move will help the company focus on each business segment separately. For instance, L&T has already made a plan to invest Rs 2 bn in defense and related business alone over the next three years. It may be noted that the company is looking to emerge as a major player in each of these areas and intends to do this by enhancing its expertise either by itself or by joint ventures and collaborations with other companies. The stock of L&T, along with its peers Punj Lloyd and BHEL, ended the day on a weak note.
Auto stocks ended the day on a weak note led by Ashok Leyland, Maruti Suzuki and Tata Motors. As per a leading business daily, M&M has increased its market share in the SUV (sports utility vehicle) segment to nearly 65% (during April) from 47% a year ago. This is on the back of models like Xylo, Bolero and Scorpio, recording strong sales and subsequently taking the top three positions in the SUV segment. As per the management, the demand for vehicles has perked up since October last year and the trend is expected to continue in the coming few months. During the month of April, M&M saw a 16% increase in sales (including joint ventures). In addition, the company’s newly launched SUV, Xylo has also helped boost sales. As per the company, the company has delivered over 10,000 Xylos till date.
The International Monetary Fund (IMF) has downgraded its growth outlook for Asia, predicting a long and severe recession for the region's wealthier but export-reliant economies. It expects growth to slow down to 1.3% this year as compared to initial forecast of 2.7%. For emerging nations in Asia, which excludes Japan, the IMF lowered its growth forecast to 3.3% from 4.4%. It expects China to grow at the rate of 6.5% in 2009 as aggressive policy response is expected to boost domestic demand, while India is forecasted to grow at the rate of 4.5%. According to the agency, the Indian economic growth will slow down as global credit conditions and inadequate investments are likely to arrest the growth of the economy.
Most of the other Asian markets ended the day on a firm note. The European indices are currently trading firm as well. Rupee was trading at 50.6 against the US dollar at the time of writing.
As per a leading business daily, L&T plans to set up three more operating companies in the defense, aerospace and nuclear power businesses. The company plans to create these companies over the next three to four years. As of now, these businesses fall under the company’s heavy engineering division, which focuses on manufacturing and supplying the critical equipment and systems to core sector industries. This move will help the company focus on each business segment separately. For instance, L&T has already made a plan to invest Rs 2 bn in defense and related business alone over the next three years. It may be noted that the company is looking to emerge as a major player in each of these areas and intends to do this by enhancing its expertise either by itself or by joint ventures and collaborations with other companies. The stock of L&T, along with its peers Punj Lloyd and BHEL, ended the day on a weak note.
Auto stocks ended the day on a weak note led by Ashok Leyland, Maruti Suzuki and Tata Motors. As per a leading business daily, M&M has increased its market share in the SUV (sports utility vehicle) segment to nearly 65% (during April) from 47% a year ago. This is on the back of models like Xylo, Bolero and Scorpio, recording strong sales and subsequently taking the top three positions in the SUV segment. As per the management, the demand for vehicles has perked up since October last year and the trend is expected to continue in the coming few months. During the month of April, M&M saw a 16% increase in sales (including joint ventures). In addition, the company’s newly launched SUV, Xylo has also helped boost sales. As per the company, the company has delivered over 10,000 Xylos till date.
The International Monetary Fund (IMF) has downgraded its growth outlook for Asia, predicting a long and severe recession for the region's wealthier but export-reliant economies. It expects growth to slow down to 1.3% this year as compared to initial forecast of 2.7%. For emerging nations in Asia, which excludes Japan, the IMF lowered its growth forecast to 3.3% from 4.4%. It expects China to grow at the rate of 6.5% in 2009 as aggressive policy response is expected to boost domestic demand, while India is forecasted to grow at the rate of 4.5%. According to the agency, the Indian economic growth will slow down as global credit conditions and inadequate investments are likely to arrest the growth of the economy.
Calls for 6-May
Buy Shree Renuka Sugar with stop loss of Rs 105 for a target of Rs 140
Buy Aptech with stop loss of Rs 94 for a target of Rs 123
Buy Tata Chemicals around Rs 188.40-Rs 184.30. Stop Loss of Rs 182, book profit at Rs 194.30-Rs 204.20
Sell BPCL around Rs 376.40-Rs 382.80. Stop Loss of Rs 387, cover short at Rs 365.80-Rs 348.90
Buy Aptech with stop loss of Rs 94 for a target of Rs 123
Buy Tata Chemicals around Rs 188.40-Rs 184.30. Stop Loss of Rs 182, book profit at Rs 194.30-Rs 204.20
Sell BPCL around Rs 376.40-Rs 382.80. Stop Loss of Rs 387, cover short at Rs 365.80-Rs 348.90
Tuesday, May 5, 2009
Mkts end flat amid choppy trade; midcaps outperform
It was a lacklustre day for the markets, after Monday's sharp rally. Both the equity benchmarks saw some consolidation today. The markets were volatile throughout the day. However, the broader indices outperformed the benchmark indices on the back of huge buying in sugar stocks. Buying was seen in capital goods, realty, private power companies' shares, and in individual stocks like ICICI Bank, Tata Steel, Reliance Communication, Wipro, Tata Motors, Ranbaxy Labs and Hindalco. However, oil & gas, FMCG, select financials and technology stocks remained under pressure.
The Sensex closed at 12,092, down 41 points and the Nifty fell just 4 points, to 3,649 (provisional figures).
The Sensex closed at 12,092, down 41 points and the Nifty fell just 4 points, to 3,649 (provisional figures).
IT falls on Obama speak
Alternate bouts of buying and selling led the indices to move around in a volatile manner during the final hour of trade. However, at the closing bell, the BSE-Sensex ended lower by around 4 points while the NSE-Nifty ended higher by around 8 points. On the other hand, stocks from the mid-cap and small-cap space ended the day on a firm note, higher by 1.9% and 2% respectively. While selling activity was witnessed in stocks from the IT, FMCG and energy spaces, realty and metals led the pack of gainers today.
Other Asian markets ended the day on a firm note. The European indices are currently trading firm as well. Rupee was trading at 49.45 against the US dollar at the time of writing.
Software stocks ended the day’s session on a weak note. This was on the back of the US President Obama’s reiteration that US firms need to cut back on offshoring in order to bring the ailing economy back on track. This time around, the US government, in its tax policy reform, has threatened to stop tax incentives to US companies which create job opportunities outside the US. Instead, it will continue the benefits for those companies that operate within the US.
Retail stocks ended the day on a firm note led by Pantaloon, Shopper’s Stop and Trent. As per a leading business daily, Shopper’s Stop is planning to go ahead with its expansion plans by opening twelve new stores in the next three years. This expansion is likely to be funded with a mix of internal accruals, debt and equity. In addition, the company is also planning to close unviable stores. As per the company, the rationale behind this expansion is the fall in rentals and a reversal of service tax. It also believes that the Indian economy is on its revival path. It is believed that the company will require a capex of Rs 910 m for the store openings and Rs 325 m for the inventory for these stores. It may be noted that the company recently closed down a handful of stores/ shops including its catalogue retailing venture, food business, book stores, and airport retail stores.
As per a leading business daily, investment bank Goldman Sachs believes that the Indian economy will recover in the second half of FY10. The rationale behind this is the strong domestic market. In addition it believes that the improving financial sector along with the excess liquidity in the system, easing financial conditions, declines in some key interest rate spreads and the removal of election uncertainty are factors that will help in picking up the economy. However, the chief economist of the bank stated that the key risk is “the formation of an unstable coalition and the ratcheting up of long bond yields due to greater borrowing by the government to finance the post-election budget”.
Other Asian markets ended the day on a firm note. The European indices are currently trading firm as well. Rupee was trading at 49.45 against the US dollar at the time of writing.
Software stocks ended the day’s session on a weak note. This was on the back of the US President Obama’s reiteration that US firms need to cut back on offshoring in order to bring the ailing economy back on track. This time around, the US government, in its tax policy reform, has threatened to stop tax incentives to US companies which create job opportunities outside the US. Instead, it will continue the benefits for those companies that operate within the US.
Retail stocks ended the day on a firm note led by Pantaloon, Shopper’s Stop and Trent. As per a leading business daily, Shopper’s Stop is planning to go ahead with its expansion plans by opening twelve new stores in the next three years. This expansion is likely to be funded with a mix of internal accruals, debt and equity. In addition, the company is also planning to close unviable stores. As per the company, the rationale behind this expansion is the fall in rentals and a reversal of service tax. It also believes that the Indian economy is on its revival path. It is believed that the company will require a capex of Rs 910 m for the store openings and Rs 325 m for the inventory for these stores. It may be noted that the company recently closed down a handful of stores/ shops including its catalogue retailing venture, food business, book stores, and airport retail stores.
As per a leading business daily, investment bank Goldman Sachs believes that the Indian economy will recover in the second half of FY10. The rationale behind this is the strong domestic market. In addition it believes that the improving financial sector along with the excess liquidity in the system, easing financial conditions, declines in some key interest rate spreads and the removal of election uncertainty are factors that will help in picking up the economy. However, the chief economist of the bank stated that the key risk is “the formation of an unstable coalition and the ratcheting up of long bond yields due to greater borrowing by the government to finance the post-election budget”.
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