Thursday, August 30, 2007
I will return to this blog after two weeks...
I am going to Thailand and China on a 17 day trip. I will resume updating this blog on my return.
Wednesday, August 29, 2007
Market ends higher despite weak global cues...
It was a good close for markets as they ended in green with gains after opening with a sharp cut. The rise in our markets was despite some weak cues from global peers on account of dim chances of Fed cutting rates going ahead. Sensex after breaching 15,000 mark closed near that level and nifty around 4350 mark.
BSE Midcap and Smallcap index outperformed the benchmark indices and closed up 0.6% and 0.9% each respectively.
Good buying was seen in metal and oil & gas stocks. IT, pharma and realty stocks traded weak on the bourses.
Tata Steel was the star performer up over 8% on strong consolidated Q1FY08 numbers. Its Q1FY08 sales were up at Rs 31,154.6 crore versus 5,747.7 crore.
Top gainers on the indices were Tata Steel up 8%, BHEL up 2.5%, ONGC up 2% followed by Hindalco, Gasim, SAIL, HDFC Bank and ITC.
BSE Midcap and Smallcap index outperformed the benchmark indices and closed up 0.6% and 0.9% each respectively.
Good buying was seen in metal and oil & gas stocks. IT, pharma and realty stocks traded weak on the bourses.
Tata Steel was the star performer up over 8% on strong consolidated Q1FY08 numbers. Its Q1FY08 sales were up at Rs 31,154.6 crore versus 5,747.7 crore.
Top gainers on the indices were Tata Steel up 8%, BHEL up 2.5%, ONGC up 2% followed by Hindalco, Gasim, SAIL, HDFC Bank and ITC.
Tuesday, August 28, 2007
Mkt ends with moderate gains: IT, oil & gas stocks gain...
The market ended in green with moderate gains after trading flat for major part of the day. Buying was seen in IT, oil & gas, FMCG and metal stocks. However, selling pressure was seen in banking, auto and media stocks. Metal stocks like Hindalco and SAIL surged during the final hour of trade. IT major Satyam was up over 3%. Media stocs like Zee Ent, HT Media, Sun TV ended in red along with some telecom stocks like Reliance Communication, VSNL, MTNL and Idea.
Sensex was up 76.81 points or 0.52% at 14919.19, and the Nifty up 18.10 points or 0.42% at 4320.70.
About 1715 shares have advanced, 1214 shares declined, and 86 shares are unchanged.
Top gainers on the indices were Satyam, SAIL, Hindalco, ITC and HDFC Bank.
Top losers on the indices were ICICI Bank, Tata Motors and Ranbaxy Labs.
The BSE Midcap Index ended at 6,409.64 up 49 points or 0.8%.
The BSE Smallcap Index ended at 7,808.44 up 83 points or 1%.
The BSE Capital Goods Index was up 0.3% at 13,117.22. Crompton Greave, Kirloskar Bros, Alstom Projects, Punj Lloyd, Triveni Engg, Reliance Infra closed higher.
The BSE Health Care Index was up 0.2% at 3,493.43. Nicholas Pirama, Matrix Lab, Apollo Hospital, Divis Labs, Sterling Bio, Orchid Chemical, Sun Pharma closed higher
The BSE Auto Index closed closed at 4,676.31 down 0.2%.
The BSE Metal Index closed at 10,748.27 up 1%. Shree Precoated, Sesa Goa, Hindalco, JindalStainless, SAIL advanced.
The BSE FMCG Index gained 1% at 1,930.93. Marico, Tata Tea, United Spirits, ITC, United Brewerie, HUL closed higher.
BSE Oil and Gas Index closed at 7,839.17 up 1.5%. Reliance, IOC, Reliance Natura, Essar Oil, GAIL ended in green.
The BSE IT Index gained 2% at 4,558.76. Financial Tech, I-Flex Solution, Satyam, HCL Tech, Tech Mahindra, Infosys closed higher.
The BSE Bankex was down 0.3% at 7,636.21. ICICI Bank, Andhra Bank, SBI ended lower.
The NSE cash turnover was at Rs 9188.31 crore and the NSE F&O turnover was at Rs 57340.78 crore. The BSE cash turnover was Rs 4189.43 crore. Total market wide turnover was at Rs 70718.52 crore.
Monday, August 27, 2007
Fantastic day for Indian stock markets...
It's been a fantastic day for the markets. Global cues over the weekend were positive. The rally has come on the back of strong Asian cues and the Dow ended higher on Friday. The indices began with a gap-up opening, which just got stronger as the day progressed. The Nifty closed at 4,301 up 111 points, while the Sensex shut shop at 14,844 up 419 points. The broader markets also participated in the uptrend tracking the benchmark indices giving markets an excellent breadth. The BSE Midcap index ended at 6,360.66 up 170 points, or 2.8%, while the BSE Smallcap index ended at 7,725.52, up 203 points, or 2.7%.
Banking and realty stocks were among the top gainers followed by metal, capital goods, and oil & gas stocks. ICICI Bank and SBI were the star performers up over 6%. The other top gainers on the indices were Maruti Udyog, Hindalco, Reliance Energy, and Zee Entertainment.
Friday, August 24, 2007
Market closes higher: Metal, auto, cap goods outperform...
The markets ended higher after some initial hiccups shrugging off any political concerns and uncertainities. Buying was seen in scrips across sectors. The cues from global peers supported the uptrend. Midcap and smallcap stocks also participated in the rally giving markets healthy breadth.Metal, auto, capital goods and oil & gas stocks were the outperformers. However, selling pressure is seen in select IT, realty and pharma stocks.
BHEL, Tata Motors, Reliance Energy were among the top gainers on Sensex.
JSW Steel, Arvind Mills, SEL Manufacturing, Ashok Leyland were the midcap gainers.
Top losers on the indices were Dr Reddy's, Suzlon, HCL Tech, VSNL and HDFC.
Sensex was up 260.89 points or 1.84% at 14424.87, and the Nifty up 75.20 points or 1.83% at 4190.15.
About 1704 shares have advanced, 1251 shares declined, and 56 shares are unchanged.
The BSE Midcap Index ended at 6,190.45 up 85 points or 1.4%.
The BSE Smallcap Index ended at 7,522.25 up 98 points or 1.3%.
The BSE Bankex closed at 7,315.43 up 1%. Kotak Mahindra, SBI, Union Bank, Bank of India, IOB moved upwards.
The BSE Capital Goods Index was up 2% at 12,622.23. SKF India, Punj Lloyd, BHEL, Areva T&D, Alstom Projects, BEML closed higher.
The BSE Health Care Index was up 1% at 3,424.02. Wyeth, Divis Labs, Orchid Chemical, Ranbaxy Labs, Glenmark closed higher.
The BSE Auto Index closed at 4,569.26 up 2.4%. Tata Motors, Escorts, Apollo Tyres, Cummins, TVS Motor advanced.
The BSE Metal Index closed at 10,276.60 up 3%. Hindalco, SAIL, NALCO, Sesa Goa, Sterlite Ind advanced higher.
The BSE FMCG Index gained 1% at 1,877.97. Tata Tea, Bata India, United Spirits, Nestle closed higher.
BSE Oil and Gas Index closed at 7,516.68 up 2%. Reliance Petro, ONGC, Essar Oil, Reliance, Petronet LNG
ended in green.
The BSE IT Index closed at 4,408.48 up 1%. Satyam, Patni Computer, Mphasis, Wipro closed higher.
The NSE cash turnover was at Rs 8121.82 crore and the NSE F&O turnover was at Rs 43336.32 crore. The BSE cash turnover was Rs 3614.09 crore. Total market wide turnover was at Rs 55072.23 crore.
Thursday, August 23, 2007
Effects of political gloom loom over markets - all the key BSE indices ended in red except FMCG and IT stocks...
Despite the positive news from the Bank of Japan regarding its decision not to change the interest rates and the global cues suggesting a cool down, it was a rather uncertain day for the markets today.It was an extremely volatile session for the markets on the back of political uncertainty on the Indo-US nuke deal. There was extreme political nervousness after 1:00 pm, which took markets in the red zone.
The midcaps and smallcaps took it on the chin and ended with deeper cracks. Sensex and Nifty had been swinging sharply on both the side of flat line. Sensex swung nearly 400 points and Nifty has swung over 100 points. The fall came despite some positive cues from Asia and US equity markets.
There was heavy selling pressure across the board and all the key BSE indices ended in red except FMCG and IT stocks. Banking stocks were severely hit today and the Bankex ended with over 2% cut.
Sensex was down 84.68 points or 0.59% at 14163.98, and the Nifty down 38.20 points or 0.92% at 4114.95.
Wednesday, August 22, 2007
Stock Views From Experts...
Rajesh Jain of SMC Global Securities is of the view that one can sell GMR Infrastructure at Rs. 750-760.
Research firm Motilal Oswal has maintained buy rating on ITC with target price of Rs. 203. They feel their is a buoyant macro outlook for ITC in the long term.
Rajesh Jain of SMC Global Securities is of the view that one can exit Unitech at Rs. 495-500.
Motilal Oswal Securities has recommended neutral rating on Hindalco with target price of Rs. 156. The stock is trading at P/E of 8.7x FY09E.
Technical Analyst Deepak Mohoni is of the view that one should stay away from Suzlon Energy.
Emkay Research is bullish on Amtek Auto and has maintained buy rating on the stock with a target of Rs. 510.
Morgan Stanley is underweight on India and maintains that valuations are higher compared to other Asian peers.
Sharmila Joshi of Asit C Mehta is of the view that one should stay invested in Punj Lloyd.
Technical Analyst, Deepak Mohoni is of the view that one should stay away from metal pack.
TS Harihar of Karvy Stock Broking is of the view that one can sell Patni Computer Systems at higher level.
TS Harihar of Karvy Stock Broking is of the view that one can use higher level to exit Chambal Fertilisers and Chemicals.
Goldman Sachs has recommended neutral rating on Indiabulls Financial Services and expect 12-month target price of Rs. 515, implying 10.5% total return.
Technical Analyst, Prakash Gaba is of the view that Patni Computer Systems can touch Rs. 490-500.
Technical Analyst, Prakash Gaba is of the view that one can buy Orbit Corporation at current level.
Technical Analyst, Ashwani Gujral is of the view that there is a good buying opportunity in largecap stocks. He is particularly bullish on BHEL.
Technical Analyst, Ashwani Gujral is of the view that one can buy Mahindra and Mahindra at Rs. 600.
HDFC Securities is bullish on Sun TV Network and has maintained outperformer rating on the stock and expects target price of Rs. 450.
Research firm Motilal Oswal has maintained buy rating on ITC with target price of Rs. 203. They feel their is a buoyant macro outlook for ITC in the long term.
Rajesh Jain of SMC Global Securities is of the view that one can exit Unitech at Rs. 495-500.
Motilal Oswal Securities has recommended neutral rating on Hindalco with target price of Rs. 156. The stock is trading at P/E of 8.7x FY09E.
Technical Analyst Deepak Mohoni is of the view that one should stay away from Suzlon Energy.
Emkay Research is bullish on Amtek Auto and has maintained buy rating on the stock with a target of Rs. 510.
Morgan Stanley is underweight on India and maintains that valuations are higher compared to other Asian peers.
Sharmila Joshi of Asit C Mehta is of the view that one should stay invested in Punj Lloyd.
Technical Analyst, Deepak Mohoni is of the view that one should stay away from metal pack.
TS Harihar of Karvy Stock Broking is of the view that one can sell Patni Computer Systems at higher level.
TS Harihar of Karvy Stock Broking is of the view that one can use higher level to exit Chambal Fertilisers and Chemicals.
Goldman Sachs has recommended neutral rating on Indiabulls Financial Services and expect 12-month target price of Rs. 515, implying 10.5% total return.
Technical Analyst, Prakash Gaba is of the view that Patni Computer Systems can touch Rs. 490-500.
Technical Analyst, Prakash Gaba is of the view that one can buy Orbit Corporation at current level.
Technical Analyst, Ashwani Gujral is of the view that there is a good buying opportunity in largecap stocks. He is particularly bullish on BHEL.
Technical Analyst, Ashwani Gujral is of the view that one can buy Mahindra and Mahindra at Rs. 600.
HDFC Securities is bullish on Sun TV Network and has maintained outperformer rating on the stock and expects target price of Rs. 450.
Tuesday, August 21, 2007
After the Tumult, Is It Buffett Time?
The bond market has seized up, stocks are in turmoil, private-equity funds are sidelined and hedge-fund managers and lenders are hosting fire sales.These are happy days for Warren Buffett.
"I can spend money faster than Imelda Marcos when things are right," he says, referring to the former Philippines first lady and renowned shopper.
For the past three years, Mr. Buffett's traditional bargain-hunting investment strategy has been partly stymied as debt-fueled private-equity funds and hedge funds drove asset prices out of his value-investing orbit.
The result: Today he's sitting on a war chest of nearly $50 billion in cash.
News in brief...
# JSW Steel buys 3 Jindal Saw US cos for $900mn
# China a matter of concern, not a threat: Nasscom
# Direct tax collections up 44% to Rs 59,210cr
# Genpact reports marginal rise in Q2 net income
# DIIs net buyers of Rs 827cr in cash mkt today
# Essar plans Rs 20,000cr power capacity uplift
# GHCL to open 100 specialty textile stores
# BCCI sacks Kapil as NCA chairman
# China a matter of concern, not a threat: Nasscom
# Direct tax collections up 44% to Rs 59,210cr
# Genpact reports marginal rise in Q2 net income
# DIIs net buyers of Rs 827cr in cash mkt today
# Essar plans Rs 20,000cr power capacity uplift
# GHCL to open 100 specialty textile stores
# BCCI sacks Kapil as NCA chairman
Mkt closes with a deep cut: BSE ends session below 14k; Bank, realty worst hit...
It was an extremely weak and disappointing session for the markets after yesterday's surge. The markets opened in red and saw a sharp fall during the last few hours of trade. Asia opened in green but came off the highs and Dow also closed flat yesterday suggesting some weak cues. Apart from global weakness there is also political unceratinity regarding the Indo-US nuclear deal. Sensex saw a fall of over 400 points breaching the 14,000 mark and the Nifty was around 4065 levels testing its 200 day moving average (DMA). Broader markets underperformed the frontline indices showing a savage cut of 3%. All the BSE sector indices closed in red and among the worst hit were bank, IT, telecom and realty stocks.
Sensex was down 438.44 points or 3.04% at 13989.11, and the Nifty down 134.15 points or 3.19% at 4074.90.
About 654 shares have advanced, 2298 shares declined, and 54 shares are unchanged.
The BSE Midcap Index ended at 6,134.23 down 3.3%.
The BSE Smallcap Index ended at 7,538.45 down 3.8%.
The BSE Bankex was down 4.4% at 7,324.30. Kotak Mahindra, Federal Bank, SBI, Andhra Bank, Canara Bank, ICICI Bank moved downwards.
The BSE Capital Goods Index was down 2.8% at 11,989.97. Punj Lloyd, Reliance Infra, Siemens, Alstom Projects, Suzlon Energy, Bharat Bijlee, Praj Industries, Areva T&D closed lower.
The BSE Health Care Index was down 3% at 3,430.42. Divis Labs, Orchid Chemical, Nicholas Pirama, Aurobindo Pharm, GlaxoSmithKline, Cipla closed lower.
The BSE Auto Index closed at 4,475.14 down 2.7%. Escorts, Bharat Forge, Ashok Leyland, Apollo Tyres, Cummins, Amtek Auto closed higher.
The BSE Metal Index closed at 9,847.15 down 3.5%. Shree Precoated, JSW Steel, Tata Steel, Hindalco closed lower.
The BSE FMCG Index closed at 1,799.05 down 2.5%. United Spirits, Bata India, Marico, ITC, Colgate, HUL closed lower.
BSE Oil and Gas Index closed at 7,755.96 down 2%. Petronet LNG, GAIL, Reliance Natura, Reliance Petro, Reliance, Essar Oil ended in red.
The BSE IT Index slipped 3.7% at 4,294.86. Wipro, Financial Tech, HCL Tech, TCS, Infosys, Satyam closed lower.
The BSE realty Index lost 4.6% at 6,844.63. Indiabulls Real, Parsvnath, HDIL, Sobha Developer, DLF closed lower.
The NSE cash turnover was at Rs 10768.25 crore and the NSE F&O turnover was at Rs 45485.53 crore. The BSE cash turnover was Rs 4849.69 crore. Total market wide turnover was at Rs 61103.47 crore.
Monday, August 20, 2007
Fed Impact: Sensex ends up 286pts today (August 20th); Banks and FMCG shine; IT lags...
Taking cues from the global markets following the surprise 50bps rate cut by the US Fed on Friday, the Sensex opened with a huge positive gap of 371 points at 14,512. The index soon soared to a high of 14,680 - up 539 points. The index, however, pared gains in noon deals, and touched an intra-day low of 14,407. The Sensex finally settled with a gain of 286 points at 14,427.
The BSE Bankex and Metal index rallied over 4% each to 7662 and 10,199, respectively. The Oil & Gas index was up 2.6% at 7621.
The market breadth was fairly positive - out of 2,766 stocks traded, 1,928 advanced, 793 declined and 45 were unchanged today.
INDEX MOVERS....
ICICI Bank and HDFC Bank zoomed over 5% each to Rs 869 and Rs 1,128, respectively.
ONGC, Tata Steel and Bharti Airtel soared around 4.5% each to Rs 818, Rs 569 and Rs 829, respectively.
Ranbaxy and BHEL surged 3.5% each to Rs 365 and Rs 1,610, respectively. Reliance Communications rallied 3% to Rs 508.
Hindustan Unilever gained 2.5% at Rs 197. Reliance, Larsen & Toubro, SBI and ITC advanced around 2% each to Rs 1,792, Rs 2,354, Rs 1,550 and Rs 156, respectively.
Tata Motors, Hindalco, Grasim, ACC and Ambuja Cements were up over 1% each at Rs 650, Rs 142, Rs 2,771, Rs 962 and Rs 128, respectively.
...AND THE LOSERS
Satyam slipped nearly 2% to Rs 433. Infosys and Wipro declined over 1% each to Rs 1,829 and Rs 470, respectively. Mahindra & Mahindra was down over 1% at Rs 642.
VALUE & VOLUME TOPPERS...
Zylog System topped the value chart with a turnover of Rs 246 crore followed by Nagarjuna Fertilisers (Rs 148.70 crore), Reliance (Rs 120.40 crore), Orbit Corporation (Rs 88.25 crore) and ICICI Bank (Rs 66.25 crore).
Nagarjuna Fertilisers led the volume chart with trades of around 4.15 crore shares followed by Ventura Textiles (2.30 crore), Chambal Fertilisers (98.50 lakh), IFCI (86.75 lakh) and IKF Technologies (85 lakh).
Saturday, August 18, 2007
US stocks rally after Fed offers cash-strapped banks and lenders lower rates for borrowing funds...
US stocks surged Friday (August 17th) after the Federal Reserve stepped toward a possible cut in its key rate, and Wall Street tried to assess just how much its move would calm financial markets roiled by the drying-up of liquidity.The Dow Jones Industrial Average jumped 233.30 to 13079.08. It snapped a six-day losing streak and is now up 4.9% on the year.
The S&P 500 rose 34.67 to 1445.94, its biggest percentage gain since April 2, 2003. It is now up 1.9% year-to-date, after having been underwater earlier in the week. The Nasdaq Composite Index was up 53.96 to 2505.03, its biggest percentage gain since last August, putting it up 3.7% since the end of last year. Despite the rally Friday, all three indexes ended the week lower.
The Fed Friday morning cut its discount rate to 5.75% from 6.25%, offering cash-strapped banks and lenders a safety valve and lending a psychological boost to nervous markets.
Perhaps more importantly, the Fed also said it was worried about the potential for economic trouble caused by credit-market turmoil, saying it was "monitoring the situation." It left the door open for a possible cut in its target for the more-important federal funds rate down the road. "Monitoring [is a] code word [meaning] we're on guard at any moment, and if we have to we'll go in between meetings to change rates," said James Glassman, senior economist at J.P. Morgan Chase. "In their world, this is a very vast move. I think you have to leave open the possibility of an inter-meeting cut, but…I think they would rather not do it," preferring to wait until a scheduled September meeting or later. A lower funds rate would make borrowing cheaper and help stocks, but it can also fuel inflation.
The market rallied on the Fed move – stock futures had been down significantly before it was announced – though a good portion of the initial spike appeared to be a result of short-covering. Shares soon retreated from their opening highs, but finished with gains of around 2% on the major indexes. On the NYSE, advancers outnumbered decliners by more than six to one; trading curbs were in effect for a large part of the day.
Volatility in individual shares may have been exacerbated because of options expirations Friday, which can exaggerate moves both on the up side and the down side. Volatility as measured by the VIX index declined slightly from Thursday, but remained high by recent standards
"The Fed move was the catalyst" for stocks' gains, said Tony Dwyer, equity-market strategist at FTN Financial Research. "But at the end of the day, the market is cheap, earnings are solid and we have good fundamentals," so it isn't surprising that shares would have rebounded.
But many experts didn't expect to see much of a lasting effect on the markets. "I think it signals somewhat of a panic move by the Fed here, and I would not have too much faith in this rally," said Joe Ranieri, co-head of trading at Canaccord Adams. "We've got a little short-covering and a panic rally. Overall, nothing has really changed."
Deutsche Bank picking up a stake in IndusInd Bank?
Market talk of Deutsche Bank picking up a stake in the mid-sized private sector IndusInd Bank has increased the trading interest and volumes in the bank's stock. Despite the sharp corrections in the stock markets for the past few days, the counter has gained 6.31 per cent over the week to close at Rs 51.35 on the BSE on Friday. The stock gained 3.15 per cent on Friday while the total traded quantity of shares stood at 5.90 lakh shares on the BSE against its two-week average volume of 2.91 lakh shares. On the NSE, 17,26,856 shares changed hands, of which 34 per cent is deliverable quantity.
However, top officials in IndusInd Bank declined to comment on the market rumours.
Friday, August 17, 2007
Experts give investment tips for a falling market...
The markets in India are in sell-off mode in line with weak global cues. In these volatile times, what sectors or stocks should investors look at? Anil Manghnani of Modern Shares & Stock Brokers feels investors could buy Reliance on every decline. "Reliance is still a buy on every decline. This is an opportunity to get into Reliance. The immediate support is at about Rs 1,680. They are lower levels but at Rs 1,680 at least from an investment point of view you can start buying," he feels.
On Tata Steel, he is of the opinion that investors could enter between Rs 525-540 levels. "The way the stock broke yesterday was very discouraging. A huge amount of delivery base selling has taken place. May be the bounce whenever it comes may not be as sharp in that stock. If you are looking to get into the stock right now, between Rs 540 and Rs 525 is where you would start buying into this stock," he feels.
In real estate, Manghnani feels that investors could look at Unitech and DLF. "You could look for some buying opportunities in Unitech anywhere between Rs 460 and Rs 439. DLF is still strong and has not broken the listing day lows, which was around Rs 540-550. So, closer to those levels that also would be a buy," is his opinion.
Manghnani is also bullish on power stocks like Reliance Energy and Torrent Power.
"Torrent Power is showing quite a lot of strength in this market. It is trading above the Rs 85 mark and has headed towards Rs 95. I think Rs 99 is its all-time high, so still a lot of momentum left in that stock. Reliance Energy has been a front-runner in the last month towards the fag end of this rally up to 15,800. It moved quite sharply from Rs 600-800. Still a lot of strength is left and I look to buy into this stock somewhere between Rs 690 and Rs 676. In the range, I would look and buy into Reliance Energy. When the market bounces back, it should be one of the sharpest to bounce back," is his opinion.
Anand Tandon of Gryffon Investment Advisors feels that technology will outperfrom from here on. "I am looking at a scenario where the overall availability of capital is lower. Hence, I am looking for companies that have better use of capital, and IT falls into that category. The fact that the rupee has become weaker also helps. The business environment has been strong so far. I am assuming that it will continue to remain strong. If that assumption is tested we have to change our view but for the moment it looks like orders are not a problem. If margins get restored in rupee terms, then this is clearly one sector, which will outperform from here on," he feels.
Giving his opinion on the auto sector, Tandon feels, "In the near-term, the outlook doesn’t look all that bad. It has been a sector, which has somewhat underperformed. It is much less likely to get thrashed when the money goes out. Those stocks, which are over owned, fall first and we have seen that in the last few days. The near-term availability of money is likely to improve as a result of regulatory action. I wouldn’t be very surprised if the market becomes a little worse prompting the RBI to come back and cuts down CRR for instance. I think that’s a sector where one should be overweight on."
Real estate, metals least preferred sectors: CNBC TV18 poll...
CNBC-TV18 conducted a brokerage poll of 20 brokerages. The results of the poll are as follows:
75% of those polled said that the worst is not over for the market and the Sensex will bottom out at 13,000-14,000. Around 10% of those polled said that the Sensex will bottom out at 12,000-13,000.
While 35% stated that they would deploy half their total cash to buy at current levels, around 5% said they would deploy over 50% cash to buy now.
The results also indicated that 65% would recommend buying index stocks while 30% would recommend large cap non-index. The preferred sectors now are IT, telecom, banks and capital goods and the least preferred sectors now are real estate and metals.
According to brokerages, 80% feel that RIL will lead the bounceback for the market, while 31% said that ICICI Bank will lead the bounceback.
75% of those polled said that the worst is not over for the market and the Sensex will bottom out at 13,000-14,000. Around 10% of those polled said that the Sensex will bottom out at 12,000-13,000.
While 35% stated that they would deploy half their total cash to buy at current levels, around 5% said they would deploy over 50% cash to buy now.
The results also indicated that 65% would recommend buying index stocks while 30% would recommend large cap non-index. The preferred sectors now are IT, telecom, banks and capital goods and the least preferred sectors now are real estate and metals.
According to brokerages, 80% feel that RIL will lead the bounceback for the market, while 31% said that ICICI Bank will lead the bounceback.
Meltdown pushes investors to Emerging Markets: Merrill Lynch
The US subprime crisis may have spilled over to the worldwide equity markets, but all is not lost with a new survey of fund managers from across the world indicating a major shift toward emerging markets.While fund managers have turned more risk averse in light of the global market instability, they believe equities still offer value, especially relative to bonds, according to Merrill Lynch's Fund Managers Survey for August.
The survey indicated a shift away from the US with 29% respondents saying emerging markets offered the best corporate profit outlook of all regions overtaking the Eurozone, which has been the favoured region throughout 2007.
Although the survey did not specifically mention India, the country is one of the major emerging economies. The country's stock market benchmark, Sensex, however, has fallen in line with the global trend in the past few days.
Merrill Lynch said investors believed that the quality of earnings in emerging markets, while a concern, was improving although it was deteriorating in the US.
The managers said valuations were seen as more attractive and fewer respondents believed emerging market equities to be the most overvalued. "Only a net 8% hold that view, while a net 19% see the US as the most overvalued region," it said.
In the broadest snapshot of global institutional investor sentiment since the sharp rises in credit spreads and equity market volatility, 11% still regarded equities as undervalued, while 41% thought bonds are overvalued.
A total of 181 fund managers, managing a total of $599 billion, participated in the global survey from August 2 to August 9.
Smart Recovery: Sensex ends down 217points - recovering from a slide of 578 points
Mirroring weakness in the Asian markets, the Sensex opened with a negative gap of 49 points at 14,309. The index could barely manage to touch a high of 14,319 before sliding deeper into negative zone.Aggressive selling in the noon session saw the index tumble to a low of 13,780 - down 578 points from its previous close.
Renewed buying at lower levels helped the index recover most of its losses by late noon deals. Heavyweights Reliance, ICICI Bank, SBI, HDFC and Wipro rebounded and led the recovery today.
A fresh round of selling towards the fag end of the day saw the Sensex finally close with a loss of 217 points at 14,141.
The BSE Metal index shed 4.7% to 9812. The IT index tumbled 3% to 4500. The Auto and FMCG indices dropped over 2% each to 4561 and 1812, respectively.
The market breadth was fairly negative - out of 2,719 stocks traded, 1,836 declined, 852 advanced and 31 were unchagned today.
INDEX LOSERS....
Satyam slumped 5.8% to Rs 440. Infosys and TCS tumbled almost 3% each to Rs 1,855 and Rs 1,056, respectively.
Tata Steel shed 5.4% to Rs 544. ONGC plunged 4.4% to Rs 783.
Hindalco dropped 3.7% to Rs 140, and Tata Motors slipped 3.3% to Rs 641.
ITC and NTPC declined 3% each to Rs 153 and Rs 163, respectively. ACC and BHEL were down nearly 3% each at Rs 952 and Rs 1,559, respectively.
Bajaj Auto and Grasim slipped around 2.5% each to Rs 2,251 and Rs 2,725, respectively.
Ranbaxy and HDFC Bank dropped over 2% each to Rs 353 and Rs 1,069, respectively. Hindustan Unilever declined 2% to Rs 192.
...AND THE MOVERS
Wipro and HDFC moved up over 1% each to Rs 475 and Rs 1,910, respectively. Reliance added nearly 1% (Rs 14) to Rs 1,753.
VALUE & VOLUME TOPPERS
Reliance topped the value chart with a turnover of Rs 314 crore followed by debutant Zylog System (Rs 309 crore), Tata Steel (Rs 211.30 crore), Reliance Capital (Rs 205.40 crore) and SBI (Rs 191 crore).
Nagarjuna Fertilisers led the volume chart with trades of around 4.20 crore shares followed by Bellary Steel (1.97 crore), IFCI (1.92 crore), Harig Cranks (1.59 crore) and Reliance Natural (1.39 crore).
Asian Mkts: HK, S'pore recover, but end down...
The Hong Kong and Singapore markets staged a smart recovery to cut losses at close.
The Hang Seng bounced over 1,000 points from the day's low of 19,387 to end at 20,672 - down 285 points.
The Straits Times also pulled back smartly from a low of 2962 to settle at 3131 - down 21 points.
The Shanghai Composite index was down 109 points at 4657.
The Nikkei ended with a hefty loss of 875 points at 15,274.
The Hang Seng bounced over 1,000 points from the day's low of 19,387 to end at 20,672 - down 285 points.
The Straits Times also pulled back smartly from a low of 2962 to settle at 3131 - down 21 points.
The Shanghai Composite index was down 109 points at 4657.
The Nikkei ended with a hefty loss of 875 points at 15,274.
Thursday, August 16, 2007
25,000 level within 3 years?
If the Indian economy continues to perform at the present level, the 30-share sensitive index of Bombay Stock Exchange could cross the 25,000 mark in the next three years. This will prove the high networth investor Rakesh Jhunjhunwala correct who, since 2005, has been predicting that the sensex will cross the 25,000 level by 2010.
At present, the industrial sector is growing at over 13%. In April 2007, the rate of growth of the industrial sector was 13.6% at the constant price. If annual inflation of 5% is taken in to account, on the nominal term, the industry should be growing at over 18%. Normally performance of large Indian companies on the whole is better than the overall industrial growth. That means, the sensex stocks turnover should grow at higher than 18% — the nominal Industrial growth rate.
If the profit margin of the companies remained at the present level, the profitability of companies will also grow at over 18% in times to come. In fact, in the past four years, the profitability of sensex companies grew at over 20%.
If the profitability grows at 18.6% in the next three years, the sensex should be at over 25,000 level if the shares continue to quote at the present level of 22 times of the underlying earnings. That means, the sensex would also grow at the same level.
In last four financial years, the sensex has improved at an annual growth rate 44% from 3048 as on March 31, 2003 to 13,072 on the last trading day of the last financial year. In the last two years also, the sensex grew at 42% compounded annually. However, in 2006-07, the sensex improved by only 16% from 11,280. But, in the last over 3 months, the index has increased by 15%.
Going by the future demands in the Indian and global markets for goods and services produced by Indian companies, their performances are likely to continue be good.
In the last two years, Indian companies have emerged stronger and more efficient because of global competition.
China is no more a threat to Indian companies, instead its high growth has provided a huge market to Indian companies.
The future driver for growth in India would be financial markets, real estate, retail and healthcare including pharmaceuticals. Software and auto ancillaries will continue to boom. On top of this all, India has emerged as important investment destination for investors all over the world. Therefore, going by the present trend, sensex might even cross the 25,000 mark much before 2010.
Star performer stocks in today's crushed market
It was an extremely weak session for the markets as they ended in deep red tracking its global peers. The BSE Sensex tumbled 642.70 points or 4.28% at 14358.21, and the Nifty was down 191.60 points or 4.38% at 4178.60. It was the second biggest single-day point falls for Sensex. The biggest single-day point fall was on May 18, 2006.
Here is a performance analysis of the top BSE 500 stocks on this blood bath day. Despite the market crash today, some of the stocks like Emco, Bank of Rajasthan, Assam Company and Bongaigaon Refineries were the star performers, that defied the market fall.
Emco closed at Rs 1,020.00, up Rs 73.60, or 7.78%. Bank of Rajasthan ended at Rs 99.75, up Rs 4.71, or 4.96%. The former gained over 86% and later has gained over 261% in the last one year.
Assam Company shut at Rs 23.85, up Rs 1.10, or 4.84%. There were pending buy orders of 193,965 shares, with no sellers available.
Bongaigaon Refineries closed at Rs 57.50, up Rs 2.30, or 4.17%. It is trading with volumes of 3,777,660 shares, compared to its 5-day average of 276,657 shares, an increase of 1,265.47%.
However, the stocks that slipped maximum during today's market fall are IVRCL Infras, Tata Steel, Union Bank, India Infoline etc.
Savage correction - how to trade this market?
The markets had recovered over 100 points from morning lows but have gone down again in deep red on account of huge sell off. Earlier in the day the Sensex lost 600 points, trading at 14,000.
The pattern of trade over the last couple of days has been playing out in phases. Markets paused until the next panic wave hit - the latest bout of panic selling has arrived.
The possibility of another big cut was anticipated. The cut has come in and savagely, but there is no element of surprise there. There is still talk of another 4-5% of correction in the market, which may pan out over the next few days.
The crisis is no more sub-prime; it has spread to commercial paper. As long as there are players in India, who have exposure to other markets irrespective of how strong the Indian fundamentals are, markets will take a hit in the short run.
Some experts have suggested that investors should stay in a bit of cash and when there are substantial sell offs like today, buy a little bit hoping to average the next time it falls some more. That would be the best way to approach this market.
The pattern of trade over the last couple of days has been playing out in phases. Markets paused until the next panic wave hit - the latest bout of panic selling has arrived.
The possibility of another big cut was anticipated. The cut has come in and savagely, but there is no element of surprise there. There is still talk of another 4-5% of correction in the market, which may pan out over the next few days.
The crisis is no more sub-prime; it has spread to commercial paper. As long as there are players in India, who have exposure to other markets irrespective of how strong the Indian fundamentals are, markets will take a hit in the short run.
Some experts have suggested that investors should stay in a bit of cash and when there are substantial sell offs like today, buy a little bit hoping to average the next time it falls some more. That would be the best way to approach this market.
Asian markets
Taking cues from the overnight fall in US markets, and continuing yesterday's downward slide, Asian indices slid again this morning as investors concerned over the health of global credit markets continued to sell stocks across the board. Hong Kong's Hang Seng tumbled 3% or 640.40 points at 20,735.32, Japan's Nikkei plunged 2.60% or 428.15 points at 16,047.46, Taiwan's Taiwan Weighted slipped 3.59% or 308.75 points at 8,284.29, Singapore's Straits Times fell 3.96% or 129.66 points at 3,143.59 and South Korea's Seoul Composite declined 6.24% or 113.24 points at 1,704.48.
US markets
The Dow fell 167.45 points, or 1.29%, to 12,861.47, on August 15th, closing below 13,000 for the first time since April 24 and continuing a weeks-long pattern of triple-digit moves. Broader stock indicators also fell. The S&P 500 index dropped 19.84 points, or 1.39%, to 1,406.70. The Nasdaq composite index lost 40.29 points, or 1.61%, to 2,458.83.
Wednesday, August 15, 2007
FII-TO-FII TRADES: PNB traded at 20% premium
Trades between FIIs generated a volume of Rs 179 crore on the BSE on August 14 - a decrease of 55.43% from Rs 402 crore clocked on August 13. As many as 14 stocks witnessed trades of 66 lakh shares on August 14.
Punjab National Bank was traded at highest premium of 19.51% on BSE with 2 lakh shares changing hands at Rs 601.90 as against the spot price of Rs 503.65.
Pantaloon Retail was traded second highest premium of 19.18% on the BSE with 25,000 shares changing hands at Rs 595 as against the spot price of Rs 499.25.
Punjab National Bank was traded at highest premium of 19.51% on BSE with 2 lakh shares changing hands at Rs 601.90 as against the spot price of Rs 503.65.
Pantaloon Retail was traded second highest premium of 19.18% on the BSE with 25,000 shares changing hands at Rs 595 as against the spot price of Rs 499.25.
Tuesday, August 14, 2007
Sensex down 16pts; NTPC up 3%; ACC, HDFC and Grasim down around 2%...
The Sensex opened with a positive gap of 50 points at 15,067. After touching a high of 15,070, the index slipped marginally and displayed lacklustre movement for the major part of the trading session today.The index dropped to a low of 14,965 - down 105 points from the day's high. The index, however, pulled back and ended with a marginal loss of 16 points at 15,001.
The BSE Realty index was up over 1% at 7391.
The market breadth was fairly positive - out of 2,764 stocks traded, 1,573 advanced, 1,104 declined and 87 were unchanged today.
INDEX MOVERS...
NTPC surged 3% to Rs 173.
ONGC and HDFC Bank gained over 1% each at Rs 854 and Rs 1,150, respectively. Hindalco also advanced 1% to Rs 154.
...AND THE LAGGARDS
ACC, HDFC and Grasim dropped around 2% each to Rs 990, Rs 1,941 and Rs 2,879, respectively.
Hindustan Unilever and Mahindra & Mahindra declined around 1.7% each to Rs 200 and Rs 679, respectively.
BHEL slipped over 1% to Rs 1,687. Maruti, Reliance Communications and Larsen & Toubro were the other prominent losers today.
VALUE & VOLUME TOPPERS...
Everonn Systems topped the value chart with a turnover of Rs 381 crore followed by debutant Omnitech (150.50 crore), Orbit Corporation (Rs 138.80 crore), SBI (Rs 97.90 crore) and IDBI (Rs 96.90 crore).
Nagarjuna Fertilisers led the volume chart with trades of around 1.93 crore shares followed by IKF Technologies (1.57 crore), IFCI (1.25 crore), Reliance Natural (1.03 crore) and Omnitech (90 lakh).
FIIs net sellers of Rs 332 crores in cash mkt today
Foreign institutional investors (FIIs) were net sellers of Rs 331.52 crore (provisional) today, according to data released by BSE.While FIIs made gross purchases of Rs 1,464.92 crore, gross sales totalled Rs 1,796.44 crore.
FIIs were net sellers of Rs 520.20 crore on Monday, August 13, according to data released by Sebi today. While FIIs made gross purchases of Rs 1,669.80 crore, gross sales totalled Rs 2,190 crore.
Mutual funds (MFs) were net buyers of Rs 22.80 crore on Monday. MFs made purchases of Rs 300.10 crore and sales of Rs 277.20 crore.
Monday, August 13, 2007
India's five richest lose over $10 bn in market swing
The stock market rout has caused the country’s five richest, led by Reliance Industries Chairman Mukesh Ambani, to lose more than $10 billion in just about a fortnight. Besides Ambani, those who saw billions of dollars being wiped off include younger brother Anil, realty giant DLF’s Kushal Pal Singh, Bharti group chairman Sunil Mittal and Wipro Chairman Azim Premji.
India’s five richest individuals, based on the value of their stock holdings, have seen their cumulative wealth plummeting by $10.05 billion since July 27, the day the bourses began their slide on concerns over the US sub-prime lending market, which has since spread across the world.
Since July 27, the richest five, who account for more than one-tenth of the total wealth invested in stock market, have shared nearly one-fifth the total market capitalisation loss of $52 billion. Their combined wealth has gone down to $116.75 billion (about Rs 4,72,256 crore), from a high of $126.8 billion on July 26.
Mukesh Ambani, the richest of all, saw the biggest fall with his net worth plummeting by $2.6 billion from $40.5 billion (Rs 1,63,000 crore) on July 26 to $37.9 billion (Rs 1,53,200 crore) on August 10.
Sensex rises 1% to close above 15,000; HUL zooms 4%, Cipla soars 3%, IT stocks drag...
The Sensex opened with a huge positive gap of 98 points at 14,966. Profit-taking in intra-day deals saw the index pare gains and touch a low of 14,869 - just a point short of negative territory. The index bounced in noon deals on the back of steady buying in select heavyweights like Hindustan Unilever, HDFC, NTPC and Tata Steel. Auto stocks, too, posted smart gains today. The index rallied to a high of 15,045, and finally ended with a gain of 149 points at 15,017.
The BSE Auto index rallied nearly 2% to 4826. The FMCG and Metal indices were up around 1.5% each at 1932 and 11,009, respectively.
The market breadth was fairly positive - out of 2,759 stocks traded, 1,912 advanced, 798 declined and 49 were unchanged today.
INDEX MOVERS...
Hindustan Unilever (HUL) zoomed 4% to Rs 204. Cipla soared over 3% to Rs 191.
Tata Motors rallied 3.5% to Rs 693. Maruti and Mahindra & Mahindra surged 2.8% each to Rs 833 and Rs 690, respectively. Bajaj Auto gained 2.6% at Rs 2,380.
HDFC advanced nearly 2% to Rs 1,984. Grasim and NTPC added 1.8% each to Rs 2,937 and Rs 168, respectively.
Ranbaxy and Bharti Airtel moved up 1.7% each to Rs 374 and Rs 852, respectively.
Reliance Communications, Tata Steel, ACC, ICICI Bank and Reliance were up over 1% each.
...AND THE LAGGARDS
TCS was down nearly 1% at Rs 1,135. Satyam was down marginally at Rs 477.
VALUE & VOLUME TOPPERS...
Everonn Systems topped the value chart with a turnover of Rs 399.80 crore followed by Orbit Corp (Rs 209 crore), IFCI (Rs 139.50 crore), IDBI (Rs 113.30 crore) and Reliance (Rs 88.20 crore).
IFCI led the volume chart with trades of around 2.09 crore shares followed by Nagarjuna Fertilisers (1.18 crore), Reliance Natural (1.18 crore), Mangalore Chemicals (1.03 crore) and Silverline (1 crore).
Nifty could test March low of 3700 in next 2 qtrs: CLSA
Mark Stevenson, Technical Analyst of CLSA, has said that the Nifty could test March low of 3700 in the next 2 quarters. He added that India’s price-momentum diversion is a warning sign. Stevenson said that they are set for more correction on Dow Jones Industrial Average to 13065 levels. He said that the CBOE VIX is likely to see rallies and the S&P 500 would move lower. He added that we still have a few weeks of turbulence to work through.
According to him the conviction at CLSA is pretty high that the markets around the world are now in a corrective mode. How quick and how steep it will be, is always difficult to say. But generally sell-offs tend to be very sharp and nasty. He said, in an interview to CNBC-TV18: "I think we are due for a correction and that would certainly be a good place to start looking for bargains in the markets".
Sensex can touch 25K by 2012: Jhunjhunwala
Ace investor and partner of Rare Enterprises, Rakesh Jhunjhunwala, also called "The Warren Buffet of India" is still bullish on the Indian markets and sees Sensex touching 25,000 level by 2012.He is, however, of the opinion that world equity markets are bound to get shaken in the wake of ongoing subprime mortgage issue and the next few months will be tough for them.
Addressing Finance Continuum, 2007 at SJMSOM, IIT Mumbai, he said that crisis gives best buying opportunities. Subprime issue has hit the global markets severely and there has been a negative sentiment for past two weeks across the globe.
Rakesh Jhunjhunwala also feels that Indian markets will be less affected than the global markets including Asian markets.
Jhunjhunwala further added that fundamentals are still strong and Indian markets have all the ingredients to sustain the growth.
Talking on house-hold savings and its importance on equity markets, he predicts that by 2012, over USD 57 billion from house-hold savings will be invested in the Indian equity market. If his prediction comes true then Indian markets will no more face liquidity crunch issues. Currently, house-hold savings investment in equity market is around USD 12 bn.
Sunday, August 12, 2007
FIIs take a fancy to Indian real estate stocks
The booming real estate market has caught the fancy of foreign investors as they have raised their stake in a majority of realty firms listed on the bourses although some analysts believe these stocks are among the most expensive in the world.
An analysis of holding pattern of Foreign Institutional Investors (FIIs) in 22 major realty firms shows a majority of them raised stake in the April-June quarter as compared to the previous three-month period.
The FIIs increased their stake in 15 firms, including Unitech, Ansal Housing, D S Kulkarni and Indiabulls Real Estate. However, they decreased their holding in seven firms -- DLF, Atlanta, Era Construction, Lok Housing, Mahindra Gesco, Madhucon Projects and Unity Infrastructure.
Real estate sector in India has witnessed a boom in recent times led by an increase in purchasing power of people, relaxed lending norms by banks and housing finance companies and the growth in retail and IT sectors.
The share buying by FIIs in these companies comes at a time when a few analysts believe the country's realty stocks are among the costliest in the world.
Global investment services firm Standard & Poor's has said real estate stocks in India are the most expensive and give lower returns than most emerging and developed markets such as China, Singapore, Hong Kong and Australia.
A comparison of price to earnings (P/E) ratio of stocks from various countries showed that valuation of property stocks from the US and UK moved lower, while those from emerging markets such as India continued to grow.
The P/E ratio is considered as valuation benchmark of a stock, where a higher ratio indicates an expensive stock while lower P/E ratio signifies a cheaper stock.
An analysis of holding pattern of Foreign Institutional Investors (FIIs) in 22 major realty firms shows a majority of them raised stake in the April-June quarter as compared to the previous three-month period.
The FIIs increased their stake in 15 firms, including Unitech, Ansal Housing, D S Kulkarni and Indiabulls Real Estate. However, they decreased their holding in seven firms -- DLF, Atlanta, Era Construction, Lok Housing, Mahindra Gesco, Madhucon Projects and Unity Infrastructure.
Real estate sector in India has witnessed a boom in recent times led by an increase in purchasing power of people, relaxed lending norms by banks and housing finance companies and the growth in retail and IT sectors.
The share buying by FIIs in these companies comes at a time when a few analysts believe the country's realty stocks are among the costliest in the world.
Global investment services firm Standard & Poor's has said real estate stocks in India are the most expensive and give lower returns than most emerging and developed markets such as China, Singapore, Hong Kong and Australia.
A comparison of price to earnings (P/E) ratio of stocks from various countries showed that valuation of property stocks from the US and UK moved lower, while those from emerging markets such as India continued to grow.
The P/E ratio is considered as valuation benchmark of a stock, where a higher ratio indicates an expensive stock while lower P/E ratio signifies a cheaper stock.
Saturday, August 11, 2007
Dow back from triple-digit losses as Fed moves in...
Stocks crawled back from earlier steep losses yesterday after the Federal Reserve and other major central banks intervened in an attempt to jump-start stalled credit markets, with the Dow ending up 58 points, or 0.4% higher, for the week."It's helping that central banks are doing their job," said Art Hogan, chief market strategist at Jefferies & Co. "There is a crisis in the credit market and it's an important assurance that they'll be there."
After erasing triple-digit losses, The Dow Jones Industrial Average closed 31 points lower at 13,239, with 18 of its 30 components still in the red.
The S&P 500 index ended up 0.5 points at 1,453, while the Nasdaq Composite closed 11 points lower at 2,544.
For the week, the Dow finished up 0.4%, the S&P gained 1.4% and the Nasdaq rose 1.3%.
At the New York Stock Exchange, 2.5 billion shares were exchanged, and declining issues outpaced advancers 5 to 3. At the Nasdaq, 3.2 billion shares traded, with decliners outpacing advancing stocks 3 to 2.
US Fed infuses $19bn, ECB 61bn euros to keep money flowing through the arteries of finance and steady credit markets panicking from sub-prime worries
The US Federal Reserve yesterday added $19 billion of temporary reserves to the banking system through 3-day repurchase agreements to calm markets unnerved by widening fallout from losses in the subprime mortgage sector, according to a report by Reuters.
The European Central Bank (ECB) yesterday injected 61.1 billion euros ($83.7 billion) in three-day money into the market. The day before, central bank, had injected 94.8 billion euros ($130.6 billion) at 4%.
While Bank of Japan offered to supply one trillion yen ($8.45 billion), the Reserve Bank of Australia injected A$4.95 billion ($4.19 billion) yesterday.
The European Central Bank (ECB) yesterday injected 61.1 billion euros ($83.7 billion) in three-day money into the market. The day before, central bank, had injected 94.8 billion euros ($130.6 billion) at 4%.
While Bank of Japan offered to supply one trillion yen ($8.45 billion), the Reserve Bank of Australia injected A$4.95 billion ($4.19 billion) yesterday.
Friday, August 10, 2007
Sensex ends down 232pts; Satyam gains 3%, Bharti drops 3.5%...
The Sensex, tracking the Wall Street decline and the Asian market blues, opened with a huge negative gap of 425 points at 14,675. And immediately dropped to a low of 14,571 in morning deals - a massive drop of 529 points from the previous close.Buying at lower levels, specially in tech scrips and heavyweights like Reliance, saw the index marginally shrug-off the US subprime woes and close with a loss of 232 points (1.5%) at 14,868.
The BSE Bankex, Metal and Realty indices dropped over 2% each to 7774, 10,864 and 7263, respectively. The BSE IT index bucked the trend, and was up nearly 1% at 4774.
The market breadth was marginally negative at close after being extremely bearish in morning trades. Out of 2,660 scrips traded today, 1,591 declined and 1,023 logged gains.
INDEX LOSERS...
Bharti dropped 3.5% to Rs 839. Reliance Communications slipped nearly 3% to Rs 521.
HDFC declined over 3% to Rs 1,947. Hindalco also slipped 3% to Rs 151.
ICICI Bank and SBI were down over 2% each at Rs 866 and Rs 1,607, respectively. NTPC, ONGC, HUL and Tata Steel also slipped over 2% each today.
Reliance closed with a loss of 1.7% (Rs 31) at Rs 1,811.
... AND GAINERS
Satyam gained over 2.6% to close at Rs 479. Infosys added nearly 1% at Rs 1,952.
Bajaj moved up over 1% to Rs 2,319, and Tata Motors was up 1% at Rs 669.
MOST ACTIVE COUNTERS...
Orbit Corporation was the most active counter with a turnover of Rs 317 crore followed by IFCI (Rs 232 crore), DLF (Rs 171 crore), Reliance (Rs 165 crore) and Omaxe (Rs 138 crore).
News snapshot...
Praj commissions mfg unit at Kandla SEZ.
Nikkei ends down 400pts, Asian mkts weak.
European markets, on an average, open 2% down.
Raymond to double retail stores.
Reliance to get $100mn loan from Canada.
FIIs net buyers of Rs 1463cr in F&O.
Dow drops 387pts, Indian ADRs tumble.
Nikkei ends down 400pts, Asian mkts weak.
European markets, on an average, open 2% down.
Raymond to double retail stores.
Reliance to get $100mn loan from Canada.
FIIs net buyers of Rs 1463cr in F&O.
Dow drops 387pts, Indian ADRs tumble.
From Moneycontrol - India to outperform rest of Asia: IL&FS Investsmart...
Deepak Chhabria, CEO, IL&FS Investsmart Asia Pacific, feels the global situation is a cause for concern in the near-to-medium-term. However, he added that the Indian market is based on strong fundamentals and backed by local events.
"The central bank has been proactive to events happening in the market and has been trying to insulate the Indian market from the rest of the world," he added.
According to Chhabria, the Indian market is more inward looking in terms of investors. The Indian-concentric investors are bullish on the long-term, he said, adding, "India will outperform the rest of the region."
"The central bank has been proactive to events happening in the market and has been trying to insulate the Indian market from the rest of the world," he added.
According to Chhabria, the Indian market is more inward looking in terms of investors. The Indian-concentric investors are bullish on the long-term, he said, adding, "India will outperform the rest of the region."
Global fall rubs off on Indian equities; indices down 3% at 9.58 am...
Stocks opened sharply down this morning, tracking the fall in the Asian markets today, and the fall in US and European markets overnight. Key indices lost about 3% as metal, realty and banking stocks led the declines. ITC and ICICI bank were the biggest laggards.
US sub-prime crisis and credit-related worries on reports of hedge funds liquidating in Europe has triggered a sell-off in Asia.
The benchmark Sensex of the Bombay Stock Exchange was down 512.07 points or 3.39% at 14,588.08. The index touched a low of 14,570.89.
ITC (down 4.39%), ICICI Bank (3.99%), Bharti Airtel (3.84%), Wipro (3.77%), NTPC (3.57%), Maruti Udypg (3.29%) and Hindalco (3.21%) were the biggest Sensex losers.
None of the 30 shares on the Sensex were able to make it to the positive terrain.
National Stock Exchange’s 50-share Nifty was at 4276.65, down 126.55 points or 2.87% from Thursday’s close. The index sank to a low of 4239.20.
The market will look for cues arising from the opening of European stock markets around mid-day, Indian standard time.
US sub-prime crisis and credit-related worries on reports of hedge funds liquidating in Europe has triggered a sell-off in Asia.
The benchmark Sensex of the Bombay Stock Exchange was down 512.07 points or 3.39% at 14,588.08. The index touched a low of 14,570.89.
ITC (down 4.39%), ICICI Bank (3.99%), Bharti Airtel (3.84%), Wipro (3.77%), NTPC (3.57%), Maruti Udypg (3.29%) and Hindalco (3.21%) were the biggest Sensex losers.
None of the 30 shares on the Sensex were able to make it to the positive terrain.
National Stock Exchange’s 50-share Nifty was at 4276.65, down 126.55 points or 2.87% from Thursday’s close. The index sank to a low of 4239.20.
The market will look for cues arising from the opening of European stock markets around mid-day, Indian standard time.
Thursday, August 9, 2007
US subprime woes continue to haunt markets around the world...
Today's fall in the Indian stock markets was in line with the Europe meltdown on news that BNP Paribas has frozen the accounts of three asset backed funds on US subprime losses.
BNP Paribas SA, France's biggest bank, halted withdrawals from three investment funds because it can't "fairly" value their holdings, as concerns over U.S. subprime mortgage losses recoils on credit markets.
BNP Paribas SA, France's biggest bank, halted withdrawals from three investment funds because it can't "fairly" value their holdings, as concerns over U.S. subprime mortgage losses recoils on credit markets.
Performance of the indices today - a snapshot...
Sensex was down 207.83 points or 1.36% at 15100.15, and the Nifty down 58.90 points or 1.32% at 4403.20.
The BSE Midcap Index ended at 6,559.58 down 1.6%.
The BSE Smallcap Index ended at 7,964.12 down 1%.
The BSE Bankex was down 1.3% at 7,975.48. Bank of Baroda, Union Bank, Allahabad Bank, Federal Bank, SBI moved downwards.
The BSE Capital Goods Index was down 1% at 12,883.72. Crompton Greave, AIA Engineering, Alstom Projects, Gammon India, Punj Lloyd, Jyoti Structure, Reliance Infra, Praj Industries closed lower.
The BSE Health Care Index was down 0.6% at 3,651.28. Apollo Hospital, Cadila Health, Ranbaxy Labs, Glenmark, Aurobindo Pharm closed lower.
The BSE Auto Index closed at 4,769.15 down 1%. Exide Industrie, MICO, Amtek Auto, Tube Investment, Cummins closed higher.
The BSE Metal Index closed at 11,118.87 down 1%. Shree Precoated, Hindalco, Jindal Steel, JSW Steel, Mah Seamless, Jindal Saw closed lower.
The BSE FMCG Index closed at 1,920.03 down 2%. Marico, United Spirits, GlaxoSmith Con, United Breweries, Colgate, ITC closed lower.
BSE Oil and Gas Index closed at 7,891.15 down 2%. Reliance Natura, Essar Oil, GAIL, ONGC ended in red.
The BSE IT Index lost 1.6% at 4,733.85.Mphasis, Financial Tech, I-Flex Solution, Satyam, Infosys closed lower.
The NSE cash turnover was at Rs 11846.62 crore and the NSE F&O turnover was at Rs 55930.24 crore. The BSE cash turnover was Rs 5478.43 crore. Total market wide turnover was at Rs 73255.29 crore.
The BSE Midcap Index ended at 6,559.58 down 1.6%.
The BSE Smallcap Index ended at 7,964.12 down 1%.
The BSE Bankex was down 1.3% at 7,975.48. Bank of Baroda, Union Bank, Allahabad Bank, Federal Bank, SBI moved downwards.
The BSE Capital Goods Index was down 1% at 12,883.72. Crompton Greave, AIA Engineering, Alstom Projects, Gammon India, Punj Lloyd, Jyoti Structure, Reliance Infra, Praj Industries closed lower.
The BSE Health Care Index was down 0.6% at 3,651.28. Apollo Hospital, Cadila Health, Ranbaxy Labs, Glenmark, Aurobindo Pharm closed lower.
The BSE Auto Index closed at 4,769.15 down 1%. Exide Industrie, MICO, Amtek Auto, Tube Investment, Cummins closed higher.
The BSE Metal Index closed at 11,118.87 down 1%. Shree Precoated, Hindalco, Jindal Steel, JSW Steel, Mah Seamless, Jindal Saw closed lower.
The BSE FMCG Index closed at 1,920.03 down 2%. Marico, United Spirits, GlaxoSmith Con, United Breweries, Colgate, ITC closed lower.
BSE Oil and Gas Index closed at 7,891.15 down 2%. Reliance Natura, Essar Oil, GAIL, ONGC ended in red.
The BSE IT Index lost 1.6% at 4,733.85.Mphasis, Financial Tech, I-Flex Solution, Satyam, Infosys closed lower.
The NSE cash turnover was at Rs 11846.62 crore and the NSE F&O turnover was at Rs 55930.24 crore. The BSE cash turnover was Rs 5478.43 crore. Total market wide turnover was at Rs 73255.29 crore.
Sensex ends down 208 points, SBI and Reliance Energy drop 3%, ACC and ITC shed 2%...
The Sensex opened with a bang at 15,452 - up 144 points from its previous close on the back of positive cues from the global markets. Fresh buying in morning trades saw the index rally to a high of 15,542.Profit-taking at higher levels saw the index pare gains as the day progressed. Negative signals from the overseas markets, i.e weak opening for the European markets coupled with a steep fall in Dow futures, led to some nervousness in the markets.
The selling pressure intensified in noon deals, and the Sensex tumbled to a low of 15,062 - down 480 points from the day's high. The Sensex finally ended with a loss of 208 points at 15,100.
The BSE Oil & Gas index dropped 2% to 7891. The FMCG and IT index slipped over 1.5% each to 1920 and 4734, respectively. The Bankex and the Realty index were down over 1% each.
The market breadth, which was extremely bullish till noon, changed to fairly negative at the closing bell. Out of 2,670 stocks traded, 1,611 declined, 1,011 advanced and 48 were unchanged today.
INDEX LAGGARDS...
Hindalco shed 3.6% to Rs 156. SBI and Reliance Energy plunged over 3% each to Rs 1,650 and Rs 758, respectively.
Ranbaxy, Satyam, Grasim and ONGC dropped around 2.5% each to Rs 372, Rs 467, Rs 2,912 and Rs 866, respectively.
ACC, HDFC and ITC tumbled over 2% each to Rs 1,001, Rs 2,020 and Rs 164, respectively.
Bharti Airtel and Reliance slipped 1.8% each to Rs 869 and Rs 1,842, respectively. Larsen & Toubro was down 1.7% to Rs 2,450.
Infosys, Ambuja Cements and Reliance Communications declined around 1.5% each to Rs 1,936, Rs 128 and Rs 537, respectively.
TCS, Maruti and HDFC Bank were down around 1% each at Rs 1,141, Rs 829 and Rs 1,160, respectively.
...AND THE MOVERS
BHEL and Dr Reddy's advanced 1.3% each to Rs 1,734 and Rs 638, respectively. Cipla moved up nearly 1% to Rs 188.
MOST ACTIVE COUNTERS...
Debutant Omaxe topped the value chart with a turnover of Rs 443 crore followed by Orbit Corporation (Rs 341.60 crore), Reliance (Rs 198.20 crore), SBI (Rs 98.70 crore) and ICICI Bank (Rs 93 crore).
IKF Technologies led the volume chart with trades of around 1.54 crore shares followed by IFCI (1.32 crore), Reliance Natural (1.24 crore), Omaxe (1.21 crore) and Nagarjuna Fert (1.08 crore).
Car sales up 11% in July, bike sales down 17%
Domestic passenger car sales increased 11.18% in July to 89,548 units from 80,543 units in the same month a year ago.According to figures released by Society of Indian Automobile Manufacturers (SIAM), domestic motorcycle sales during the month was at 3,75,004 units as against 4,53,152 units in July 2006 - a decline of 17.25%.
Total two-wheelers sold July stood at 5,03,356 units, a dip of 9.95% when compared with 5,58,982 units sold in the same period a year.
Domestic sales of commercial vehicles during the month was up 2.53% at 33,496 units as against 32,670 units in the corresponding month a year ago.
At 2 pm the Sensex has erased all its gains and now slipped into red to 15,305 - down three points...
The Sensex has erased all its gains and now slipped into red to 15,305 - down three points.BHEL has soared 2.3% to Rs 1,752. Tata Steel and ICICI Bank have surged around 2% each to Rs 664 and Rs 900, respectively.
Cipla has moved up 1.6% to Rs 189. Wipro has spurted over 1% to Rs 482.
Ambuja Cements, SBI, Hindustan Unilever and Hindalco have slipped around 1% each to Rs 128, Rs 1,686, Rs 200 and Rs 160, respectively.
Out of 2,609 stocks traded so far, 1,419 have advanced, 1,130 have declined and 60 are unchanged.
Wednesday, August 8, 2007
Performance of the indices today - a snapshot...
Sensex was up 375.21 points or 2.51% at 15307.98, and the Nifty up 105.75 points or 2.43% at 4462.10.
The BSE Midcap Index ended at 6,665.67 up 91 points or 1.4%.
The BSE Smallcap Index ended at 8,051.22 up 136 points or 1.7%.
The BSE Bankex closed at 8,076.32 up 2%. Union Bank, Canara Bank, Centurion Bank, Bank of Baroda, PNB, Allahabad Bank moved upwards.
The BSE Capital Goods Index was up 1.8% at 13,032.66. Reliance Infra, Crompton Greave, Praj Industries, Gammon India, AIA Engineering, BHEL closed higher.
The BSE Health Care Index was up 1.2% at 3,671.59. Matrix Lab, Orchid Chemical, Ranbaxy Labs, Sun Pharma, Lupin closed higher.
The BSE Auto Index closed at 4,810.74 up 1.4%. Hero Honda, Cummins, Amtek Auto, TVS Motor, Exide Industrie, Escorts, Mah and Mah advanced.
The BSE Metal Index closed at 11,222.02 up 1.5%. Hindalco, SAIL, NALCO, Sesa Goa, Sterlite Ind advanced higher.
The BSE FMCG Index gained 1% at 1,953.80. Marico, Godrej Consumer, Nestle, GlaxoSmith Con, Dabur India closed higher.
BSE Oil and Gas Index closed at 8,048.75 up 3%. Essar Oil, Reliance, Petronet LNG, ONGC ended in green.
The BSE IT Index closed at 4,808.43 up 4%. HCL Tech, Mphasis, Infosys, TCS closed higher.
The NSE cash turnover was at Rs 10130.55 crore and the NSE F&O turnover was at Rs 42084.83 crore. The BSE cash turnover was Rs 4711.34 crore. Total market wide turnover was at Rs 56926.72 crore.
The BSE Midcap Index ended at 6,665.67 up 91 points or 1.4%.
The BSE Smallcap Index ended at 8,051.22 up 136 points or 1.7%.
The BSE Bankex closed at 8,076.32 up 2%. Union Bank, Canara Bank, Centurion Bank, Bank of Baroda, PNB, Allahabad Bank moved upwards.
The BSE Capital Goods Index was up 1.8% at 13,032.66. Reliance Infra, Crompton Greave, Praj Industries, Gammon India, AIA Engineering, BHEL closed higher.
The BSE Health Care Index was up 1.2% at 3,671.59. Matrix Lab, Orchid Chemical, Ranbaxy Labs, Sun Pharma, Lupin closed higher.
The BSE Auto Index closed at 4,810.74 up 1.4%. Hero Honda, Cummins, Amtek Auto, TVS Motor, Exide Industrie, Escorts, Mah and Mah advanced.
The BSE Metal Index closed at 11,222.02 up 1.5%. Hindalco, SAIL, NALCO, Sesa Goa, Sterlite Ind advanced higher.
The BSE FMCG Index gained 1% at 1,953.80. Marico, Godrej Consumer, Nestle, GlaxoSmith Con, Dabur India closed higher.
BSE Oil and Gas Index closed at 8,048.75 up 3%. Essar Oil, Reliance, Petronet LNG, ONGC ended in green.
The BSE IT Index closed at 4,808.43 up 4%. HCL Tech, Mphasis, Infosys, TCS closed higher.
The NSE cash turnover was at Rs 10130.55 crore and the NSE F&O turnover was at Rs 42084.83 crore. The BSE cash turnover was Rs 4711.34 crore. Total market wide turnover was at Rs 56926.72 crore.
News at a glance...
Sensex ends up 375pts; tech scrips lead rally
No PAN data, 25 lakh demat a/cs still frozen
Apollo Group, DKV launch health insurance firm
Dadasaheb Phalke award for Shyam Benegal
George Soros takes stake in RCom tower biz
Vishal Retail to invest Rs 200cr, open 40 stores
RIL Maha Mumbai SEZ gets 1-yr extension
Infosys gets nod for 2 SEZs in AP
FM favours single telecom levy
Suryachakra plans 1,200 MW project in Orissa
FM to exporters: Get used to strong rupee
No PAN data, 25 lakh demat a/cs still frozen
Apollo Group, DKV launch health insurance firm
Dadasaheb Phalke award for Shyam Benegal
George Soros takes stake in RCom tower biz
Vishal Retail to invest Rs 200cr, open 40 stores
RIL Maha Mumbai SEZ gets 1-yr extension
Infosys gets nod for 2 SEZs in AP
FM favours single telecom levy
Suryachakra plans 1,200 MW project in Orissa
FM to exporters: Get used to strong rupee
Sensex ends up 375pts; tech scrips lead rally
The Sensex opened with a huge positive gap of 155 points at 15,088, thanks mainly to the smart rally in technology stocks following the government's move to restrict foreign inflows.The index continued to add gains as buying spread to other sectors. The Sensex touched a high of 15,340 before settling with a significant gain of 375 points at 15,308.
The BSE IT index zoomed over 4% to 4808. The Oil & Gas index soared over 3% to 8049.
The market breadth was extremely bullish - out of 2,722 stocks traded, 1,977 advanced, 694 declined and 51 were unchanged today.
TECHIES LEAD...
Infosys surged 4.7% to Rs 1,968. TCS soared over 4% to Rs 1,154. Wipro gained 3.7% to Rs 476, and Satyam added 3.5% to Rs 479.
HDFC rallied 4.7% to Rs 2,066. ACC and Reliance surged 4% each to Rs 1,025 and Rs 1,876, respectively.
Ranbaxy gained 3.5% at Rs 382. Hindalco advanced over 3% to Rs 162.
NTPC, HDFC Bank, BHEL and Reliance Energy moved up around 2.5% each to Rs 171, Rs 1,172, Rs 1,712 and Rs 783, respectively.
Grasim, ONGC and Reliance Communications added 2.3% each to Rs 2,988, Rs 888 and Rs 544, respectively.
HCL Technologies and Mphasis zoomed over 6% each to Rs 317 and Rs 303, respectively. Patni Computers, Financial Technologies and Tech Mahindra were up 1-3% each.
MOST ACTIVE COUNTERS
Reliance topped the value chart with a turnover of Rs 265 crore followed by Everonn Systems (Rs 145.80 crore), Infosys (Rs 127.30 crore), IFCI (Rs 116 crore) and ICICI (Rs 111.30 crore).
IFCI led the volume chart with trades of around 1.77 crore shares followed by Reliance Natural (1.51 crore), Suryachakra (1.45 crore), Nagarjuna Fert (1.06 crore) and J P Hydro (1.01 crore).
Punj Lloyd plans $200 mn QIP
Infrastructure major Punj Lloyd is raising $200 million (over Rs 800 crore) through a qualified institutional placement (QIP).
The money will be used to part-fund its recent acquisition of 25% stake in Pipavav Shipyard (PSL) as well as for its planned capacity expansion. Citibank and Kotak have been appointed advisors for the placement.
The company will raise this amount by August 10, by issuing up to 1.75 crore shares at a floor price of Rs 270 per share. Following the equity placement, Punj Lloyd chairman Atul Punj’s personal holding in the company will come down to 35.5% from 38%. As a whole, the Punj family holds 53.4% in the company.
Proceeds from the QIP will also be used to part-finance capex plans. Punj Lloyd had recently announced acquisition of a 25.1% in PSL for about Rs 400 crore.
Punj Lloyd has aggressive expansion plans in high-margin businesses like upstream engineering (offshore platforms), petrochem (hydrocracker, LDPE plant), process engineering (bio-ethanol, sulphuric acid plant), power plants (coal, gas and nuclear) and civil infrastructure (SEZ/township development, metro-transportation, highway).
The money will be used to part-fund its recent acquisition of 25% stake in Pipavav Shipyard (PSL) as well as for its planned capacity expansion. Citibank and Kotak have been appointed advisors for the placement.
The company will raise this amount by August 10, by issuing up to 1.75 crore shares at a floor price of Rs 270 per share. Following the equity placement, Punj Lloyd chairman Atul Punj’s personal holding in the company will come down to 35.5% from 38%. As a whole, the Punj family holds 53.4% in the company.
Proceeds from the QIP will also be used to part-finance capex plans. Punj Lloyd had recently announced acquisition of a 25.1% in PSL for about Rs 400 crore.
Punj Lloyd has aggressive expansion plans in high-margin businesses like upstream engineering (offshore platforms), petrochem (hydrocracker, LDPE plant), process engineering (bio-ethanol, sulphuric acid plant), power plants (coal, gas and nuclear) and civil infrastructure (SEZ/township development, metro-transportation, highway).
Omaxe to list on Thursday, August 9
Omaxe Ltd is to list on the stock exchanges tomorrow. The issue price has been fixed at Rs 310 per equity share.
The company had come out with 100% book built offering of 17,796,520 equity shares of Rs 10 each. The issue had a green shoe option of an additional 1,750,000 shares.
The issue was subscribed 68 times. The QIB portion was subscribed around 95 times, the portion allocated to non-institutional investors was subscribed 80 times and retail portion subscribed around 13 times.
The issue constituted 11.20% of the fully diluted post-issue paid up capital (assuming the green shoe option is exercised) and will constitute 10.30% of the fully diluted post-issue paid up capital (assuming the green shoe option is not exercised).
Proceeds of the issue would be utilised for payments related to land, repayment of loan and to fund the development and construction costs of some of the company's projects.
New Delhi-based Omaxe has a land bank of over 3,000 acre and at present 47 projects are under development.
The company had come out with 100% book built offering of 17,796,520 equity shares of Rs 10 each. The issue had a green shoe option of an additional 1,750,000 shares.
The issue was subscribed 68 times. The QIB portion was subscribed around 95 times, the portion allocated to non-institutional investors was subscribed 80 times and retail portion subscribed around 13 times.
The issue constituted 11.20% of the fully diluted post-issue paid up capital (assuming the green shoe option is exercised) and will constitute 10.30% of the fully diluted post-issue paid up capital (assuming the green shoe option is not exercised).
Proceeds of the issue would be utilised for payments related to land, repayment of loan and to fund the development and construction costs of some of the company's projects.
New Delhi-based Omaxe has a land bank of over 3,000 acre and at present 47 projects are under development.
Puravankara Projects IPO fully subscribed
The initial public offering of Puravankara Projects Ltd has got fully subscribed. The issue closes today.
The issue size of 2,14,67,610 shares received 2,14,84,690 bids. Around 31,94,440 bids were made at cut-off price.
Due to poor response to the issue, the period was extended to August 8 from the earlier deadline of August 3.
Also, the price band of the 100% book built issue of face value Rs 5 each issue was revised to Rs 400 to Rs 450 per share from Rs 500 to 525 per share.
At the lower price-band the company would raise Rs 858 crore and at the upper price band it would collect Rs 966 crore. The company had intended to raise between Rs 1073-1127 crore earlier.
The issue constitutes 10.05% of the fully diluted post-issue paid up capital.
The company will be using Rs 733.4 crore from the proceeds for land acquisition and Rs 289.9 crore for repayment of loans.
Puravankara Projects has projects in Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore, Colombo and the United Arab Emirates.
The issue size of 2,14,67,610 shares received 2,14,84,690 bids. Around 31,94,440 bids were made at cut-off price.
Due to poor response to the issue, the period was extended to August 8 from the earlier deadline of August 3.
Also, the price band of the 100% book built issue of face value Rs 5 each issue was revised to Rs 400 to Rs 450 per share from Rs 500 to 525 per share.
At the lower price-band the company would raise Rs 858 crore and at the upper price band it would collect Rs 966 crore. The company had intended to raise between Rs 1073-1127 crore earlier.
The issue constitutes 10.05% of the fully diluted post-issue paid up capital.
The company will be using Rs 733.4 crore from the proceeds for land acquisition and Rs 289.9 crore for repayment of loans.
Puravankara Projects has projects in Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore, Colombo and the United Arab Emirates.
UTI mutual in JV with Japan's Shinsei Bank
UTI mutual's subsidiary UTI International Ltd has entered into a joint venture with Japan's Shinsei Bank Ltd to offer investment and distribution services in South East Asia. The JV would be called UTI International (Singapore) Pte Ltd, India's third largest asset manager has said in a statement. A K Sridhar, chief investment officer of UTI mutual will be the chief executive officer of the JV.
Tuesday, August 7, 2007
Sensex ends up 30pts; ITC drops 3%, Reliance Energy soars 3%, IFCI leads volume charts
The Sensex, taking cues from the US markets, opened with a huge positive gap of 135 points at 15,038, and zoomed to a high of 15,142 - up 239 ponits from the previous close.Lack of buying support at higher levels saw the index pare gains and display lacklustre movement for the major part of the day. Weakness in heavyweights like ITC and ICICI Bank towards the end saw the index erase all gains and slip to a low of 14,902. The Sensex finally ended with a marginal gain of 30 points at 14,933.
While the BSE Oil & Gas index spurted over 1% to 7805, the FMCG index slipped 1.4% to 1937.
The market breadth was extremely positive - out of 2,702 stocks traded, 1,686 advanced, 960 declined and 56 were unchanged today.
INDEX MOVERS...
Reliance Energy soared 3% to Rs 765. NTPC surged 2% to Rs 167.
Bharti Airtel and HDFC rallied 1.7% each to Rs 876 and Rs 1,974, respectively.
Cipla and Dr.Reddy's gained around 1.5% each at Rs 187 and Rs 635, respectively.
Reliance moved up over 1% to Rs 1,806, and Tata Motors was up over 1% at Rs 657.
...AND THE LAGGARDS
ITC plunged over 3% to Rs 167. ICICI Bank tumbled almost 2% to Rs 871.
Bajaj Auto slipped 1.4% to Rs 2,275. Tata Steel was down over 1% at Rs 643.
VALUE & VOLUME TOPPERS
Everonn Systems topped the value chart with a turnover of Rs 311.60 crore followed by IFCI (Rs 153 crore), HDIL (Rs 130 crore), SBI (Rs 128.30 crore) and Reliance (Rs 115.50 crore).
IFCI led the volume chart with trades of around 2.30 crore shares followed by Reliance Natural Resources (2.25 crore), Dolat Investment (1.20 crore), Suryachakra Power (1.16 crore) and IKF Technologies (80.70 lakh).
Monday, August 6, 2007
Wal-Mart, Bharti announce India joint venture
Wal-Mart Stores Inc, the world's largest retailer, and Bharti Enterprises have finalised plans for a cash-and-carry joint venture in India.
NDTV Profit television quoted Bharti Enterprises chief Sunil Mittal as saying that eight stores had been finalised, with the first store formats to be cash-and-carry.
India's highly fragmented retail industry, valued at nearly USD 350 billion, is dominated by small family-run stores. It is forecast to more than double in size by 2015, attracting the interest of foreign retailers.
NDTV Profit television quoted Bharti Enterprises chief Sunil Mittal as saying that eight stores had been finalised, with the first store formats to be cash-and-carry.
India's highly fragmented retail industry, valued at nearly USD 350 billion, is dominated by small family-run stores. It is forecast to more than double in size by 2015, attracting the interest of foreign retailers.
Will Bank of Japan rate hike hit yen-carry-trade?
In March, there was a huge depreciation in the yen. Around the same time, interest rates in India were also on an uptrend. This prompted companies in India to raise at least USD 5 billion via the external commercial borrowing, or ECB, route.
Reliance Ports, Reliance Utilities and some other group companies raised USD 1.2 billion in March alone. While ADAG entities like Reliance Energy, Reliance Telecom, and Reliance Communications raised USD 640 million. Bharti raised around USD 3 million, JP Associates around USD 250 million, Rural Electrification Corporation USD 200 million, IRFC USD 125 million, among others.
All these companies had one thing in common they tied up loans when the yen was depreciating, which was to be settled in dollars. Now, the tide is set to turn. Rising interest rates of the yen may push costs of yen-carry-trade, which is a swap cost for borrowing in the yen and converting into the dollars to invest and take advantage of low interest rates on the Japanese currency. The Bank of Japan, or BoJ, may raise interest rates in its August 23 meeting. Could this move hit the yen-carry-trade?
Tohru Sasaki, Chief Forex Strategist, JP Morgan Chase Bank, expects a 25 bps rate hike by BoJ. He feels that the move may not hurt the yen-carry-trade much. “We expect BoJ to hike interest rate on August 23. A 25 bps hike by BoJ will not change the yen-carry-trade as there is still a huge interest rate differential between US and Japan. So, even if BoJ hikes 25 bps this month, I think the yen-carry-trade will continue,” he added.
Speaking on whether the sub-prime mortgage problems in the US are resulting in any unwinding of yen-carry-trades, he said, “In the past few weeks, the risk aversion sentiment was heightened because of the sub-prime mortgage loan problem and the short-term impact has been the buying back of yen short positions. That’s why the yen has been appreciating against major currencies. Although it is still to early to say but it seems that the equity market seems to be stabilized.”
Reliance Ports, Reliance Utilities and some other group companies raised USD 1.2 billion in March alone. While ADAG entities like Reliance Energy, Reliance Telecom, and Reliance Communications raised USD 640 million. Bharti raised around USD 3 million, JP Associates around USD 250 million, Rural Electrification Corporation USD 200 million, IRFC USD 125 million, among others.
All these companies had one thing in common they tied up loans when the yen was depreciating, which was to be settled in dollars. Now, the tide is set to turn. Rising interest rates of the yen may push costs of yen-carry-trade, which is a swap cost for borrowing in the yen and converting into the dollars to invest and take advantage of low interest rates on the Japanese currency. The Bank of Japan, or BoJ, may raise interest rates in its August 23 meeting. Could this move hit the yen-carry-trade?
Tohru Sasaki, Chief Forex Strategist, JP Morgan Chase Bank, expects a 25 bps rate hike by BoJ. He feels that the move may not hurt the yen-carry-trade much. “We expect BoJ to hike interest rate on August 23. A 25 bps hike by BoJ will not change the yen-carry-trade as there is still a huge interest rate differential between US and Japan. So, even if BoJ hikes 25 bps this month, I think the yen-carry-trade will continue,” he added.
Speaking on whether the sub-prime mortgage problems in the US are resulting in any unwinding of yen-carry-trades, he said, “In the past few weeks, the risk aversion sentiment was heightened because of the sub-prime mortgage loan problem and the short-term impact has been the buying back of yen short positions. That’s why the yen has been appreciating against major currencies. Although it is still to early to say but it seems that the equity market seems to be stabilized.”
Results snapshot...
• IFCI Q1 net profit at Rs 246.68 cr
• Bajaj Hindusthan Q1 net loss at Rs 60.47 cr
• Gammon Q1 net profit up at Rs 28.53 cr
• Escorts Q1 net loss at Rs 6.24 cr
• Bajaj Hindusthan Q1 net loss at Rs 60.47 cr
• Gammon Q1 net profit up at Rs 28.53 cr
• Escorts Q1 net loss at Rs 6.24 cr
Sensex ends down 235pts; SBI zooms 3%, ITC surges 1.8%
The Sensex opened with a huge negative gap of 245 points at 14,893 on the back of weak cues from the global markets. The index soon tumbled to a low of 14,706 - down 432 points from its last close.The index witnessed a minor pull back of 100-odd points in noon deals. A fresh round of buying towards the end of the day saw the index recover some more lost ground before settling at 14,903 - down 235 points.
The BSE Realty index plunged over 3% to 7377, and the IT index tumbled over 2% to 4598. The Metal index shed 1.6% to 11,139. The Auto index and Bankex were down 1% each to 4746 and 7963, respectively.
The market breadth was fairly negative - out of 2,669 stocks traded, 1,497 declined, 1,103 advanced and 69 were unchanged today.
INDEX LAGGARDS...
Hindalco, ICICI Bank, Maruti, Reliance Communications and Larsen & Toubro tumbled around 3% each to Rs 157, Rs 888, Rs 825, Rs 532 and Rs 2,449, respectively.
Infosys and Wipro plunged 2.7% each to Rs 1,867 and Rs 458, respectively.
ACC and HDFC dropped nearly 2.5% each to Rs 979 and Rs 1,942, respectively.
Hindustan Unilever, Satyam, Grasim, BHEL and Ambuja Cements slipped over 2% each to Rs 200, Rs 462, Rs 2,897, Rs 1,684 and Rs 126, respectively.
ONGC, HDFC Bank, NTPC, Cipla, Reliance, Bharti Airtel and Reliance Energy also declined today.
...AND THE MOVERS
SBI soared nearly 3% to Rs 1,682. ITC surged 1.8% to Rs 172. Ranbaxy was up 1% at Rs 370.
VALUE & VOLUME TOPPERS
IFCI led the value chart with a turnover of Rs 227.80 crore followed by SBI (Rs 219.40 crore), Orbit Corporation (Rs 157.20 crore), Reliance (Rs 146.60 crore) and GMR Infrastructure (Rs 125 crore).
IFCI also led the volume chart with trades of around 3.70 crore shares followed by debutant Alpa Labs (90.65 lakh), Reliance Natural Resources (81 lakh), Nagarjuna Fertilisers (53 lakh) and Managalore Chemicals (50.60 lakh).
Sunday, August 5, 2007
US MARKET SNAPSHOT
Analysts predict that U.S. stocks will fall further, in the trading week beginning tomorrow, on credit woes - this is bad news for Asian markets.Friday sell-off leaves investors hoping Fed will come to market's rescue
U.S. stocks are expected to fall in the trading weekbeginning tomorrow, continuing a broad sell-off seen on Friday, as investors stay on high-alert for more bad news linked to dodgy home loans, credit woes, and their potential impact on the broad economy, US analysts have said.
"My expectations are that equities are in for another volatile week," said Mike Malone, trading analyst at Cowen & Co. "It's going to be difficult for equities to sustain any gains until the concerns in the credit markets begin to wane."
Investors will also anxiously await the meeting of the Federal Reserve on Tuesday to see whether central bankers signal growing concerns about credit markets.
Friday sell-off:
Stocks again sold off on Friday, and finished the week sharply lower, after a weak July jobs report and news that Standard & Poor's downgraded Bear Stearns' credit outlook to negative, citing the impact of bad home loans on some of its funds.
The Dow Jones Industrial Average plunged 281 points, or 2%, to finish Friday at 13,181. The move left the blue-chip average down 0.7% on the week.
But most of the pain was seen in the broad market, which is heavily influenced by financial shares. The S&P 500 index plunged 39 points, or 2.7%, to 1,433 on Friday, for weekly loss of 1.8%. The Nasdaq Composite slid 64 points, or 2.5%, Friday to finish the week 1.9% lower.
This was the second week in a row that markets posted steep losses, as investors have become engulfed by fear about the availability of credit.
Bad U.S. home loans have turned into hefty losses for a number of hedge funds and banks around the world, while it has become much harder to raise money to finance leveraged buy-outs and share buybacks.
"We can expect ongoing tape bombs from various companies having various credit market problems," said Mike Englund, chief economist at Action Economics.
Besides Bear Stearns, which dipped 6.3% on Friday, brokers such as Goldman Sachs, Lehman Brothers and Merrill Lynch, along with many mortgage lenders and banks, have fallen steeply and are expected to continue to weigh heavily on the market.
In addition, "there's still a lot of questions about who's still trying to raise debt to boost dividends and finance share buybacks," said Paul Nolte, director of investments at Hinsdale Associates. "Home Depot is still having problems placing its debt [for its share buyback]."
Fed to the rescue?
The Fed is widely expected to leave interest rates unchanged on Tuesday but its statement will be studied carefully for any clues that central bankers are either edging closer to cutting interest rates, or would consider some type of intervention to prevent a credit crunch.
"Investors will certainly be looking to see what they have to say about the conditions in the credit markets," Cowen's Malone said. "But it's not certain what effect that will have on markets, even in the event that they do address those concerns."
In several speeches recently, Fed officials have indicated that they would not intervene to calm credit markets.
Ever since the Fed organized the 1998 bail-out of Long-Term Capital Management (LTCM), a hedge fund that failed after making the wrong bets before the Russian debt crisis, investors have come to rely on the U.S. central bank's willingness to intervene in times of crises. This reliance on the Fed has been dubbed the "Greenspan put", a reference to then-Fed-Chief Alan Greenspan.
But new Fed Chairman Ben Bernanke still has to earn his inflation-fighting credentials, "and might hold off longer before either signaling any rate cuts or some kind of intervention," said Ben Pace, chief investment officer at Deutsche Bank Private Wealth Management.
Saturday, August 4, 2007
Inflation dips to 4.36% despite steeper prices
Riding on a higher base effect, the wholesale price index based inflation declined to 4.36% for the week ended July 21, 2007 from 4.41% in the previous week, even though price indices of all major categories increased.
The indices of primary articles and manufactured products rose 0.1% each.
The index for fuels remained unchanged as against the previous week.Prices of food articles like eggs, mutton, fish-marine declined whereas prices of fruits and vegetables, coffee moved up.
Prices of sunflower, groundnut seeds and mustard seeds increased and so did those of coffee powder, coconut oil, imported edible oil.
The indices of primary articles and manufactured products rose 0.1% each.
The index for fuels remained unchanged as against the previous week.Prices of food articles like eggs, mutton, fish-marine declined whereas prices of fruits and vegetables, coffee moved up.
Prices of sunflower, groundnut seeds and mustard seeds increased and so did those of coffee powder, coconut oil, imported edible oil.
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