Wall Street posted modest losses on Monday, as traders cashed in on
recent gains ahead of some key economic reports on tap for this week,
including data on retail sales, industrial production and weekly jobless
claims. The key benchmark indices Dow Jones was down by 0.34%
and NASDAQ was down by 0.40%. The Asian bourses are trading
mixed with Nikkei marginally up by 0.20%, Hang Seng down by 0.67%
and Singapore Nifty up by 0.27%.
While most of the global markets are in the negative terrain, short
covering after the three straight days of fall is likely to keep the markets
flat for the day. Technically spot nifty may take resistance at
4465/4535/4630 levels and support at 4370/4305/4140 levels.
POST-MARKET ANALYSIS:
Concerns on below-normal rains and the speard of Swine flu, made the
Indian markets extend losses for the third straight day.The key
benchmark indices Sensex and Nifty were down by 0.99% and 0.98%
respectively.
FIIs’ were net sellers in equity and net buyers in derivatives.
ADRs: ICICI Bank(-5.91%), MTNL (-5.71%), DR Reddys labs (-3.75%)
& HDFC Bank (-3.01%).
NEWS TO USE:
POSITIVE
TATA MOTORS-owned Jaguar Land Rover (JLR) had successfully
secured a financing facility of up to £75 million (Rs 600 crore) with
Burdale Financial Ltd, a member of the Bank of Ireland Group.
July automobile sales released by the Society of Indian Automobile
Manufacturers (Siam) show a growth of 20.8% over the same month
last year, the highest such rise till now for the current financial year.
This growth comes from record sales of cars and utility vehicles, which
grew by 29.2%, and two-wheelers, whose sales surged by 20.1% last
month over the corresponding period last year.
GLENMARK PHARMACEUTICAL’S attempts to become the first
Indian company to develop a new drug may succeed by next year, as
its candidate for the anti-diarrhoea associated with HIV, named
Crofelemer, has moved into the final stage of clinical trials.
IOC and Adani Energy combine has bagged rights to retail CNG to automobiles and piped gas to industries in
Chandigarh and Allahabad by quoting a nil or zero pipeline tariff.
Daiichi Sankyo offer to acquire an additional 20% stake in ZENOTECH will not open on August 11.
India cut down heavily on the quantity of sugarcane used for producing sugar in 2008-09 season and diverted
more than 100 million tonnes (mt) of the crop for other purposes, even as the production of the sweetener
recorded a huge shortfall.
PETRONET LNG signed an agreement to import 1.5 million tons of LNG Australia.
TATA STEEL is scouting for coking coal and iron ore mines abroad, including in Brazil and Australia, to ensure
raw material security for its European operations.
Close on the heels of poor rain in June, deficient rainfall in July has pushed up tea prices further. If the current
trend of deficient rainfall continues, the year will end with a record shortfall of tea, more than what was
anticipated at the beginning of the year.
DABUR expects its health supplement brand Glucose D to clock in sales of around Rs 100 crore by the end of
this fiscal.
UNITECH Group has launched two residential projects in Chennai including Uni Homes in the affordable
segment in a southern suburb, and a Rs 4,500-crore township in North Chennai.
NEUTRAL
GMR GROUP is considering listing its global holding company on the London Stock Exchange (LSE) as a step
towards building a $10 billion global assets portfolio.
Direct to Home (DTH) operators could be asked to provide inter-operable set-top boxes to their customers with
the Competition Commission of India (CCI) seeing prima facie merit in a complaint filed by a consumer
organisation that it is in violation of competition laws.
FMCG majors like BRITANNIA, ITC and Parle Products are mulling price hikes and cost-cutting measures on
the back of a weak monsoon season, coupled with soaring sugar prices.
TATA MOTORS would deliver 3,000 Nano cars in Orissa in 2009-10 and 2010-11.
RBI is of the view that there is no case for an extension of deadline for restructuring of loans beyond August 30.
PUNJ LLOYD has raised Rs 670 crore through the issue of shares to institutional investors on a private
placement basis.
INDUSIND BANK has won the mandate from the Haj Committee of India to cater to the business of import and
distribution of Saudi Riyal currency notes for all government sponsored Haj pilgrims going to Saudi Arabia this
year.
FORTIS HEALTHCARE LTD fixed the ratio for the rights issue at two for every five equity shares held.
IDBI BANK announced the repayment of its 11.5 per cent SLR bonds, 2009 on September 26, 2009.
Tuesday, August 11, 2009
Daily Calls- 11th Aug 2009
9:42 AM 8/11 RESEARCH: MARKET OUTLOOK: As we mentioned in the weekly market outlook newsletter that, NIFTY tested the key support level of 4620 suggesting weakness may persist till 4420 levels. Yesterday, NIFTY tested the support level of 4420 and if NIFTY breaks 4380 levels on daily closing basis then short sellers would be capturing the market till 4205 levels and further suggesting that the intermediate trend would be changing from uptrend to downtrend. For the intraday trading sessions, NIFTY may open flat to positive and it can be expected to trade sideways. If Nifty trades convincingly below 4420 and 4380 levels, then it is likely to test 4342 and 4315 levels. However on the upside 4510 and 4530 levels may act as resistance levels for the day. On the sectoral front, SUGAR and TEA stocks may witne
Saturday, August 8, 2009
WEEKLY MARKET OUTLOOK :- 8-8-2009
Watch NIFTY 4420 – 4380 Levels…
Overseas equity markets like US Index DOW JONES, Japanese Index NIKKEI, and
UK Index FTSE 100 witnessed considerable profit booking in the last week.
However, technically, the intermediate global market trend is likely to remain
uptrend. On the domestic front, the key benchmark indices witnessed selling
pressure in the preceding week on account of poor monsoon as well as profit taking
by investors. Foreign funds bought Rs. 1077.09 crore more shares than they sold
Rs.657.72 crores in the futures and options market, which indicates the increase in
risk appetite among the FII fraternity. Looking to the week ahead, we may see the
markets consolidating around the current levels of 4420 – 4560.
NIFTY created new
52 week high of 4731.45 and broken the key support level of 4620 suggesting
weakness may persist till 4420 levels. The intermediate trend would remain
uptrend, but if NIFTY breaks 4380 levels on daily closing basis then short sellers
would be capturing the market. However, if Nifty trades convincingly above 4560
levels, and then it is likely to test 4591-4653 levels.
Post Market Analysis
Domestic markets concluded the week in the negative terrain on account of selling
pressure across secors. unfavorable global cues and concern over monsoon led to
the bearish sentiments .
Friday, August 7, 2009
Calls for the 7th August
9:44 AM 8/7 RESEARCH-Global Market (in %): DOW JONES (-0.27%), S&P 500 (-0.56%), NASDAQ (-1.00%), FTSE (+0.93%), DAX (+0.32%), NIKKEI(-1.28%), HANG SENG (-1.57%) & SGX NIFTY (-37 POINTS)
9:55 AM 8/7 RESEARCHOSITIONAL CALL ON NIFTY FUTURES(RECOM.ON 31st JULY):EXIT NIFTY FUTURES @ 4550
10:54 AM 8/7 RESEARCH - INTRADAY CALL ( CASH ) : SHORT SELL TCS BELOW 513 TGT 485 SL 520
(8/7/2009 12:25:25 PM): RESEARCH - INTRADAY CALL ( CASH ) : SHORT SELL ADLABS FILM BELOW 336 TGT 323 SL 341
9:55 AM 8/7 RESEARCHOSITIONAL CALL ON NIFTY FUTURES(RECOM.ON 31st JULY):EXIT NIFTY FUTURES @ 4550
10:54 AM 8/7 RESEARCH - INTRADAY CALL ( CASH ) : SHORT SELL TCS BELOW 513 TGT 485 SL 520
(8/7/2009 12:25:25 PM): RESEARCH - INTRADAY CALL ( CASH ) : SHORT SELL ADLABS FILM BELOW 336 TGT 323 SL 341
Wednesday, August 5, 2009
RIL KG basin gas gets 5 new demanders
The already heated up RIL-RNRL gas dispute is likely to have five new stakeholders in the claim. Five more power plants have joined the fray for getting natural gas from RIL's KG-D6 fields and have even demanded a minimum allocation of 4.73 million cubic meters a day.
Among these new players, two power plants each in Delhi and Andhra Pradesh and one in Gujarat have demanded gas even before commissioning in the fiscal.
With a current production of 36 mmscmd gas from KG-D6, RIL supplies 18 mmscmd of gas to power plants. The total capacity to produce stands at 60 mmscmd but is hurdled to produce less as the government has not yet identified customers for buying gas beyond the initial 40 mmscmd, allocated primarily to fertiliser and power producers on a priority basis in accordance with the Gas Utilisation Policy.
RIL is bounded by the government terms not to sell gas to these and other users including its own refineries, until allocation is approved by the Government.
Among these new players, two power plants each in Delhi and Andhra Pradesh and one in Gujarat have demanded gas even before commissioning in the fiscal.
With a current production of 36 mmscmd gas from KG-D6, RIL supplies 18 mmscmd of gas to power plants. The total capacity to produce stands at 60 mmscmd but is hurdled to produce less as the government has not yet identified customers for buying gas beyond the initial 40 mmscmd, allocated primarily to fertiliser and power producers on a priority basis in accordance with the Gas Utilisation Policy.
RIL is bounded by the government terms not to sell gas to these and other users including its own refineries, until allocation is approved by the Government.
MONEY MORNING -> 5th Aug 2009
Wall Street posted modest rise as traders took a break from the recent
heavy buying. The key benchmark indices Dow Jones was up by 0.36%
and NASDAQ was up by 0.13%. The Asian bourses are trading mixed
with Nikkei down by 0.08%, Hang Seng up by 0.76% and Singapore
Nifty up by 0.62%.
While near-term trend continues to be positive, for intraday high degree
volatility can be expected. Technically spot nifty may take resistance at
4725/4775/4860 levels and support at 4640/4595/4505 levels.
POST-MARKET ANALYSIS:
Profit booking at higher levels limited the upside for the domestic
bourses. The key benchmark indices Sensex and Nifty were down by
0.59% and 0.66% respectively.
FIIs’ were net buyers in equity and net sellers in derivatives.
ADRs: Satyam Computers (+7.41%), Tata Motors (+4.33%), Patni
Computers (-4.93%) and Sterlite Ind. (-3.21%).
NEWS TO USE:
POSITIVE
RIL gas sales from its eastern offshore fields have risen to 35 million
cubic metres a day (mmscmd), the highest since the nation's most
prolific fields started producing in April.
Ministry has approved the sale of 8.38%of government equity in NMDC
that could fetch the exchequer around Rs 12,000 crore.
SAIL and TATA STEEL have hiked prices of flat steel products by up to
Rs 1,000 a tonne on account of improving demand in the country.
HCL INFOSYSTEMS has bagged an order of Rs 40 crore from SBI and
associated banks to deploy maintain and service automated teller
machines (ATMs).
RELIANCE INFRA has been awarded the Rs 11,000-crore Mumbai
Metro-II project on a Build Operate Transfer (BOT) basis.
HCC has bagged Rs 228.79 crore contract from Vidharbh Irrigation
Development Corporation for infrastructure.
The proposed 50:50 foundry and forging joint venture between Heavy Engineering Corporation and BHEL may
be incorporated and become operational within this fiscal.
ANDHRA BANK is targeting Rs 3,400 crore business during the current financial year.
DABUR entered the Rs 1,100 crore fairness cream market to take on the likes of HUL's 'Fairly & Lovely',
launching a new range of Ayurvedic products in the skin care segment.
TATA STEEL will take its annual production capacity to 16 million tonnes per annum (MTPA) by 2014 at an
estimated investment of about Rs 40,000 crore.
WIPRO TECHNOLOGIES has bagged a five-year IT services deal with Charming Shoppes Inc, the US-based
multi-brand speciality apparel retailers primarily focussed on plus-size women’s apparel.
NEUTRAL
Govt extends NELP VIII bid date by two months to October 12, 2009.
National Highways Authority of India (NHAI) is working on a proposal to scrap the 30 to 35% premium on toll
charged on highways that bypass cities.
ABG SHIPYARD has raised the open offer price to buy out drilling firm GREAT OFFSHORE to Rs 520 a share
from the Rs 450 announced last week.
STERLITE INDUSTRIES may get the support of rival bidder Harbinger Capital Partners in its takeover plan for
the bankrupt US copper mining firm, Asarco. Harbinger has decided to withdraw from the race, informing the
bankruptcy.
RIL will pick up a 67% stake in Krishna Godavari Gas Network Ltd (KGGNL), a joint venture promoted by the
Andhra Pradesh government, for undertaking city gas distribution in the state.
A follow-on public offer of REC to raise around Rs 2,900 crore is likely to come up by the end of the current
financial year
The public spat between the government and the Anil Dhirubhai Ambani (ADA) group continued today, with
downstream petroleum regulator Directorate General of Hydrocarbons (DGH) defending the $8.8-billion capex
plan of RIL for the KG-D6 field and reiterating the importance of the production sharing contract (PSC).
The civil construction of the 15 million tonne per annum (mtpa) refinery of the IOC at Paradeep is expected to
start by Decembder this year.
AXIS BANK will issue 71.4 million fresh equity shares through Global Depository Receipts (GDRs) or qualified
institutional placement (QIP) to support growth.
TATA STEEL is exploring possibilities for supplying skin panels to the world's largest car maker Toyota's
upcoming 'strategic' small car in India, to be launched by 2011.
DIVIS LABORATORIES has allotted over 6.48 crore equity shares of Rs 2 each as bonus to the shareholders
of the company in the ratio of 1:1.
KOTAK GROUP purchased a 51% stake in the Ahmedabad Commodity Exchange (ACE) and plans to convert
the regional exchange into a national one within a year.
BHARTI AIRTEL announced the creation of a new terrestrial cable network to Bhutan. As part of this initiative,
Airtel has inked an MoU with the Royal Government of Bhutan to extend fibre connectivity to the Himalayan
Kingdom.
GUJARAT ALKALIES AND CHEMICALS LTD plans to outsource manufacturing of its new toluene-based
products.
Strategy to be followed:
Buy on every decline and sell on every rally.
However, given the current high volatility of the markets, investors are advised to take a long-term investment
perspective.
Investors are advised to book profit even when the stock reaches 60-70% of the target.
Diversify the portfolio as it reduces the risk.
BOARD MEETING:
DATE COMPANY NAME PURPOSE
08 08 2009 HANUNG TOYS AND TEXTILES LIMITED Postal Ballot
10 08 2009 SMS PHARMACEUTICALS LIMITED Audited Accounts
13 08 2009 COLGATE PALMOLIVE (INDIA) LTD Interim Dividend/Record Date
08 09 2009 SHRENUJ & CO LTD Miscellaneous
TO VIEW
heavy buying. The key benchmark indices Dow Jones was up by 0.36%
and NASDAQ was up by 0.13%. The Asian bourses are trading mixed
with Nikkei down by 0.08%, Hang Seng up by 0.76% and Singapore
Nifty up by 0.62%.
While near-term trend continues to be positive, for intraday high degree
volatility can be expected. Technically spot nifty may take resistance at
4725/4775/4860 levels and support at 4640/4595/4505 levels.
POST-MARKET ANALYSIS:
Profit booking at higher levels limited the upside for the domestic
bourses. The key benchmark indices Sensex and Nifty were down by
0.59% and 0.66% respectively.
FIIs’ were net buyers in equity and net sellers in derivatives.
ADRs: Satyam Computers (+7.41%), Tata Motors (+4.33%), Patni
Computers (-4.93%) and Sterlite Ind. (-3.21%).
NEWS TO USE:
POSITIVE
RIL gas sales from its eastern offshore fields have risen to 35 million
cubic metres a day (mmscmd), the highest since the nation's most
prolific fields started producing in April.
Ministry has approved the sale of 8.38%of government equity in NMDC
that could fetch the exchequer around Rs 12,000 crore.
SAIL and TATA STEEL have hiked prices of flat steel products by up to
Rs 1,000 a tonne on account of improving demand in the country.
HCL INFOSYSTEMS has bagged an order of Rs 40 crore from SBI and
associated banks to deploy maintain and service automated teller
machines (ATMs).
RELIANCE INFRA has been awarded the Rs 11,000-crore Mumbai
Metro-II project on a Build Operate Transfer (BOT) basis.
HCC has bagged Rs 228.79 crore contract from Vidharbh Irrigation
Development Corporation for infrastructure.
The proposed 50:50 foundry and forging joint venture between Heavy Engineering Corporation and BHEL may
be incorporated and become operational within this fiscal.
ANDHRA BANK is targeting Rs 3,400 crore business during the current financial year.
DABUR entered the Rs 1,100 crore fairness cream market to take on the likes of HUL's 'Fairly & Lovely',
launching a new range of Ayurvedic products in the skin care segment.
TATA STEEL will take its annual production capacity to 16 million tonnes per annum (MTPA) by 2014 at an
estimated investment of about Rs 40,000 crore.
WIPRO TECHNOLOGIES has bagged a five-year IT services deal with Charming Shoppes Inc, the US-based
multi-brand speciality apparel retailers primarily focussed on plus-size women’s apparel.
NEUTRAL
Govt extends NELP VIII bid date by two months to October 12, 2009.
National Highways Authority of India (NHAI) is working on a proposal to scrap the 30 to 35% premium on toll
charged on highways that bypass cities.
ABG SHIPYARD has raised the open offer price to buy out drilling firm GREAT OFFSHORE to Rs 520 a share
from the Rs 450 announced last week.
STERLITE INDUSTRIES may get the support of rival bidder Harbinger Capital Partners in its takeover plan for
the bankrupt US copper mining firm, Asarco. Harbinger has decided to withdraw from the race, informing the
bankruptcy.
RIL will pick up a 67% stake in Krishna Godavari Gas Network Ltd (KGGNL), a joint venture promoted by the
Andhra Pradesh government, for undertaking city gas distribution in the state.
A follow-on public offer of REC to raise around Rs 2,900 crore is likely to come up by the end of the current
financial year
The public spat between the government and the Anil Dhirubhai Ambani (ADA) group continued today, with
downstream petroleum regulator Directorate General of Hydrocarbons (DGH) defending the $8.8-billion capex
plan of RIL for the KG-D6 field and reiterating the importance of the production sharing contract (PSC).
The civil construction of the 15 million tonne per annum (mtpa) refinery of the IOC at Paradeep is expected to
start by Decembder this year.
AXIS BANK will issue 71.4 million fresh equity shares through Global Depository Receipts (GDRs) or qualified
institutional placement (QIP) to support growth.
TATA STEEL is exploring possibilities for supplying skin panels to the world's largest car maker Toyota's
upcoming 'strategic' small car in India, to be launched by 2011.
DIVIS LABORATORIES has allotted over 6.48 crore equity shares of Rs 2 each as bonus to the shareholders
of the company in the ratio of 1:1.
KOTAK GROUP purchased a 51% stake in the Ahmedabad Commodity Exchange (ACE) and plans to convert
the regional exchange into a national one within a year.
BHARTI AIRTEL announced the creation of a new terrestrial cable network to Bhutan. As part of this initiative,
Airtel has inked an MoU with the Royal Government of Bhutan to extend fibre connectivity to the Himalayan
Kingdom.
GUJARAT ALKALIES AND CHEMICALS LTD plans to outsource manufacturing of its new toluene-based
products.
Strategy to be followed:
Buy on every decline and sell on every rally.
However, given the current high volatility of the markets, investors are advised to take a long-term investment
perspective.
Investors are advised to book profit even when the stock reaches 60-70% of the target.
Diversify the portfolio as it reduces the risk.
BOARD MEETING:
DATE COMPANY NAME PURPOSE
08 08 2009 HANUNG TOYS AND TEXTILES LIMITED Postal Ballot
10 08 2009 SMS PHARMACEUTICALS LIMITED Audited Accounts
13 08 2009 COLGATE PALMOLIVE (INDIA) LTD Interim Dividend/Record Date
08 09 2009 SHRENUJ & CO LTD Miscellaneous
TO VIEW
Tuesday, August 4, 2009
NHPC - IPO
N H P C
Issue highlights
NHPC is the largest hydro power company in India with a
current total installed capacity of 5,175 MW. With 13
operating stations including Joint Ventures, it accounts for
14% of the Hydro power capacity in India.
NHPC plants are located in areas having good hydro
potential. This ensures ample availability of water
resources for power generation. This also results in
operational advantage.
NHPC has been awarded status of “Mini-Ratna” category-I
PSU in April 2008 in recognition of its performance.
This Issue has been graded by ICRA Limited and has been
assigned a Grade of 3/5 indicating average fundamentals.
Absence of fuel cost and attached fuel price volatility in
hydro power generation.
High operational efficiency as average capacity indices for
FY2008 & FY 2009 stood at 96.12% and 93.61% respectively,
being higher than required under CERC regulation.
Objects of the issue
Utilize the proceeds to part finance the construction and
development costs of certain of Identified Projects.
Amount utilized towards Issue Expenses
General corporate purposes.
BACKGROUND
Company and promoters
National Hydroelectric Power Corporation Limited (NHPC) was promoted by the
Government of India in November 1975.
The company has been designated as “Mini-Ratna” category-I public sector undertaking in
April 2008 in recognition of its performance. As a category-I company it has greater
autonomy to undertake new projects without government approval, subject to an
investment ceiling of Rs. 500 crore set by the government of India.
BUSINESS OVERVIEW
NHPC is a hydroelectric power generating company committed to the planning,
development and implementation of an integrated and efficient network of hydroelectric
projects in India. NHPC is involved in all the activities right from commencement to
development of hydroelectric projects.
NHPC has constructed and developed 13 hydroelectric power stations with a capacity of
5,175 MW. The current total generation capacity of the company is 5,134.2 MW, taking into
account total installed capacity of of the Loktak and Tanakpur power stations (combined
capacity of 1,520 MW) constructed and operated through its subsidiary NHDC.
The company’s power stations and hydroelectric projects are located predominantly in the
North and North East of India. IN FY09 the company and its subsidiary sold 14,587.88
MUs and 2,345.01 MUs of electricity, respectively.
Currently the company is involved in the construction of 11 hydroelectric projects, which
are expected to increase its total installed capacity by 4,622 MW. The company is also
awaiting the government approval of five projects with an anticipated capacity of 4,565
MW and for certain joint venture projects with an anticipated capacity of 2,166 MW.
The company has experience in the design, development, construction and operation of
hydroelectric projects, executing and managing all aspects of projects, from front-end
engineering design to commissioning, operation and maintenance.
NHPC has selective undertaken projects in alliance with state governments where there is
high hydro poetintial and thus tend to enjoy location and operational advantage
Strategy
Capitalizing on the power sector reforms and the Government of India’s vision of
“Power for All.”
Intend to enter into long term Long term power purchase agreements with its
customers.
Plans to invest expand its installed capacity through Joint Ventures and MoUs.
The company plans to continue to deliver advisory services to clients and
government entities in India and abroad and while taking advantage of
opportunities from changes in the Electricity Act, 2003, the Hydro Power Policy
2008, and other regulatory developments.
INDUSTRY OVERVIEW
Overview
India has emerged as one of the fastest growing economies in the world. The Government
of India has identified the power sector as a key sector of focus to promote sustained
industrial growth with a mission –“Power for All by 2012.
Indian Power Sector
Demand Supply scenario: The power industry in India has historically been
characterized by energy shortages. According to the 17th EPS, India's peak demand
will reach 152,746 MW with an energy requirement of 968 bn units (BUs) by FY 2011-
12. By the FY 2016-17, peak demand will reach 218,209 MW with an energy
requirement of 1,392 BUs.
Consumption levels: The per capita consumption of energy in India is extremely low
in comparison to most other parts of the world, in part due to unreliable supply and
inadequate distribution networks.
Installed generation capacity: According to the Ministry of Power, as on September
30 2007, India has an installed generation capacity of approximately 135,782 MW. The
power industry has not grown sufficiently to meet demand and the economy still
faces an acute shortage of power.
Installed generation capacity by sector: As of September 30, 2007, the state
government sector led installed capacity levels with 70,947 MW, or 52.3% of the total
installed capacity in India, followed by the central sector at 46,166 MW, or 34.0% of
the total installed capacity in India, and by the private sector at 18,669 MW, or 13.7%
of total installed capacity in India.
Capacity Additions: The tenth five-year plan for 2002 to 2007 targeted a capacity
addition of 41,110 MW. However, the actual capacity addition in the 10th five-year
plan was just 21,180 MW. The 11th five-year plan recommends generation planning
based on an estimated 9.5% growth in required energy each year.
Hydro Electricity
Hydropower is more economical, less polluting, less damaging to the environment and a
renewable source of energy. Developing hydropower enhances energy security and there
is no fuel cost during the life of the project. In hydroelectric power station, energy is
harnessed from water by running it from a higher height to a lower height. Hydropower
stations are capable of instantaneous starting and stopping and are able to accommodate
various loading alternatives. This helps to improve the reliability of power systems and is
ideal for meeting demand during peak times.
Hydropower Potential in India
India has enormous potential for hydroelectric generation, as per CEA the potential is
84,000 MW at 60% load factor, which translates to 148,700 MW in terms of installed
capacity.
As of May 31, 2009 the total installed capacity in the country was 149,392 MW and
hydropower accounts for 36,878 MW (24.7%). The estimated potential of all the rivers( at
60% load factor) is 84,044 MW and probable installed capacities is 147,701 MW.
Share of Hydropower
Despite the benefits of hydro power projects the share of hydropower has steadily
declined from around 37% in first five year plan to only 25% in FY2009. The hydro power
capacity addition was 7886 MW during the 10th plan which was 54.78% of the targeted
addition of 14,393.2 MW. In the 11th Plan the propsed capacity addition is 15,627 MW of
which only 3,392 MW has been commissioned and 12,235 MW is under construction.
Policy Initiatives
The government has set high priority for development of Hydropower power keeping in
mind the potential and availability of water resources.
The anticipated hydropower capacity additions in the 12th and 14th five year plans stands
at 31,000 MW and 36,494 MW respectively ,with a total hydropower capacity to reach
147,774 MW in the 14th Plan.
The GoI recently introduced a three-stage process for the development of new
hydroelectric projects in the central sector. The new stage-driven process aims to reduce
the time and cost overruns of hydroelectric projects.
Stage I: Survey and investigation of project site, and preparation of pre-feasibility report;
Stage II: Detailed investigation, preparation of a DPR and pre-construction activity
including land acquisition; and
Stage III: Execution of the project after investment decision through PIB/CCEA
Updated CERC regulations
Tariffs are determined by reference to AFC, which comprise primary energy charges and
capacity charges and are determined by return on equity, depreciation, interest on loan,
interest on working capital and operation and maintenance expenses.
Ultra Mega Power Projects
The threshold limit to obtain mega power project status is 500 MW for hydropower
projects. This threshold has been reduced to 350 MW certain states. The number of
incentives, including a 10 year income tax holiday help in generating more hydroelectricity
and the economies of scale in mega power projects help to substantially bring down power
tariffs.
Hydro Power Policy 2008
The Hydro Power Policy of 2008 lays emphasis on increasing private investment in the
development of hydroelectric projects. The policy aims at attracting private funds by
encouraging joint ventures with private developers and the use of IPP model besides
promoting power trading and speeding up the availability of statutory clearances
Future Outlook
The Ministry of Power has set a goal Mission 2012 - Power for All. Based on the 17th EPS,
the total energy requirement in India will increase to 968,659 GWh by FY 2012, and
1,392,066 GWh by FY 2017. The estimated the total investment potential of the sector is
around Rs 9,000 bn for a specified period up to fiscal year 2011. This presents a significant
opportunity for power generation companies, both in the public and the private sector.
ISSUE PROFILE
Investment positives
NHPC is one of the largest hydro power generator in India with a capacity of 5,175
MW accounting for around 14% of total hydro capacity in India
Its projects are strategically located nearing areas of high potential for generation of
hydro power. These locations also happen to be near energy deficit areas.
The company has got into long term power purchase agreements for major portion
of capacity under construction.
The company has strong operating efficiency as reflected in average capacity index
of 93.61% for 200-09.
Being a mini ratna the company can enter in to greater autonomy to undertake new
projects without GoI approval subject to investment ceiling of Rs 500 cr.
Risk factors
Long gestation period in term of project execution may depress return on equity in
the construction phase.
Potential upside is limited as the tariffs are regulated by the government. Any
change in tariff policy may adversely affect the revenues.
Particularly when projects are located in complex terrain and harsh climatic
conditions may delay and thus increase the cost of the projects.
The majority of NHPC’s revenues are derived from sales of power to the state
electricity entities, as per the directives of the GoI, and there is no assurance that
company will always be able to secure payment from state electricity entities.
Monday, August 3, 2009
Nifty closes at 14-month up ; realty,auto, metals lead: SENSEX UP 254 PTS
The Sensex and the Nifty surged smartly in the last one hour of the trade and closed at 14-month high. The Nifty closed above the 4,700 mark for the first time since June 6, 2008. The rally was led by auto, realty, metal and oil & gas stocks. Good buying was also seen in power, capital goods and pharma stocks.
Stocks like Reliance, Infosys, ICICI Bank, L&T, SBI, BHEL, Reliance Comm and ONGC were the positive contributors to the Sensex and the Nifty.
The BSE midcap and smallcap indices closed up 2.3% and 1.69% respectively.
The Sensex closed up 253.92 points or 1.62% at 15924.23, and the Nifty was up 74.95 points or 1.62% at 4711.40.
About 1801 shares advanced, 1034 shares declined, and 337 shares were unchanged.
The BSE auto index closed up 4.60% or 262.77 points at 5976.45. Stocks like Bharat Forge, Amtek Auto, Cummins, Mah and Mah and Bajaj Auto were up 6-18%.
The BSE realty index was up 4.19% or 163.73 points at 4072.49. Stocks like Phoenix Mills, Mahindra Life, Anant Raj Ind, Indiabulls Real and Peninsula Land were up 6-9%.
The BSE metal index was up 3.41% or 422.76 points at 12818.02. Stocks like Hindalco, JSW Steel, Hind Zinc, Jindal Saw and Tata Steel were up 4-8%.
The BSE power index was up 2.19% or 65.17 points at 3,035.63. Stocks like BHEL, Tata Power, Torrent Power, ABB and Lanco Infratech were up 2-5%.
The BSE oil & gas index was up 2.04% or 192.99 points at 9,673.08. Stocks like Aban Offshore, Cairn India, Reliance, Reliance Petro and ONGC were up 1-9%.
The BSE capital goods index was up 1.82% or 229.28 points 12,825.22. Stocks like Praj Industries, Usha Martin, BHEL, ABB and Alstom Projects were up 4-10%.
The BSE healthcare index was up 1.41% or 53.54 points 3,858.59. Stocks like Biocon, Aurobindo Pharma, Opto Circuits, Piramal Health and Bilcare were up 2-10%.
The BSE bankex was up 1.20% or 101.93 points at 8,567.69. Stocks like IOB, Karnataka Bank, Oriental Bank, IDBI Bank and Allahabad Bank closed up 2-3%.
The BSE IT index was up 0.99% or 39.37 points at 4,001.49. Stocks liek Mphasis, Patni Computer, Financial Tech, HCL Tech and Aptech were up 5-8%.
However, the BSE FMCG index was down 0.71% or 19.45 points at 2,718.70. Stocks like HUL, Nestle, Britannia, Marico and Colgate were down 1-2%.
Volumes were lower; total traded turnover stood at Rs 73090.81 crore. This included Rs 16687.11 crore from the NSE cash segment, Rs 50805.16 crore from the NSE F&O segment and the balance Rs 5598.54 crore from the BSE cash segment.
Nifty @ 14-month high; RIL, BHEL, Rel Comm, ONGC surge
At 15.02 hrs IST, the Nifty touched 2009 high and was trading with over 1% gains at 4695. It was trading at 14-month high. The positive contributors to the Nifty were Reliance, BHEL, Reliance Comm, ONGC and Sterlite Ind. Good buying was seen in auto, realty, metal, power, oil & gas, capital goods and pharma stocks.
The BSE midcap and smallcap indices were up 2.27% and 1.62% respectively.
The Sensex was up 164.92 points or 1.05% at 15835.23, and the Nifty was up 59.10 points or 1.27% at 4695.55.
About 1682 shares have advanced, 1133 shares declined, and 357 shares are unchanged.
Top gainers on the bourses were Hindalco up 5.74% at Rs 105.95, Mah and Mah up 5.39% at Rs 903, BHEL up 4.56% at Rs 2,329.70, Tata Steel up 4.28% at Rs 482.50, Sterlite Ind up 4.19% at Rs 672, HCL Tech up 4.98% at Rs 253. and NALCO up 4.73% at Rs 323.20.
However, top losers on the bourses were HUL down 2.56% at Rs 283.75, HDFC Bank down 1.24% Rs 1,480.95, ITC down 0.98% at Rs 247.60, Bharti Airtel down 0.66% at Rs 407.85, Wipro down 0.28% at Rs 489.30, Suzlon Energy down 4.21% at Rs 95.60, BPCL down 1.76% at Rs 465.65, GAIL down 1.14% at Rs 328.15 and Ambuja Cements down 0.88% at Rs 107.55.
Sensex gains further; auto, realty, metal surge
At 13.55 hrs IST, the Sensex gained further and was inching towards the 15800 mark. Strong buying was seen in auto, realty, metal, power, capital goods, pharma and oil & gas stocks. RIL, L&T, Bharti Airtel, SBI and ONGC were positive contributors to the Sensex.
The Sensex was up 120.66 points or 0.77% at 15790.97, and the Nifty was up 39.45 points or 0.85% at 4675.90.
The advanced- declined ratio was in favour of advances; about 1608 shares advanced, 1182 shares declined, and 381 shares were unchanged.
The selling pressure was seen in the consumer durable, bank and FMCG space.
Hindalco, Tata Power, BHEL, Mahindra and Mahindra, Maruti Suzuki and NALCO were the top gainer on the indices, with 4-6% gain. However, top losers were HUL, IDFC Bank, Reliance Infra, HDFC, ITC, Suzlon Energy, BPCL, GAIL and HDFC Bank.
The midcap and smallcap indices were trading with 1.5% gain.
Nifty holds 4650; RIL, L&T, Bharti Airtel, SBI lead
At 13.00 hrs IST, the Sensex was trading with positive bias. Stocks like Reliance, L&T, Bharti Airtel, SBI and BHEL were the positive contributors to the Sensex. However, Infosys, ICICI Bank, ITC, HDFC and HDFC Bank were the negative contributors. The BSE auto index outperformed all the other sectoral indices, it was up nearly 3%.
The Sensex was up 63.95 points or 0.41% at 15734.26, and the Nifty was up 23.35 points or 0.50% at 4659.80.
About 1530 shares advanced, 1234 shares declined, and 407 shares were unchanged.
Sanjeev Prasad, Executive Director and Co-Head, Kotak Institutional Equities, didn't see significant re-rating of companies post the Q1 FY10 earnings. "We are looking at Sensex earnings per share of about Rs 1,075 for FY11." According to him, the market was trading at 17.7 and 15 times FY10 and FY11 earnings per share respectively. "We need serious upgrades for the market to sustain,” he added.
Good buying interest was seen in realty, metal, pharma, oil & gas and capital goods stocks while FMCG and banks stocks were trading weak.
Top gainers on the Sensex were BHEL at Rs 2,310.10 up 3.68%, Sterlite Ind at Rs 668.50 up 3.65%, Maruti Suzuki at Rs 1,463.30 up 3.54%, Hindalco at Rs 103.70 up 3.49% and Reliance Comm at Rs 284.35 up 3.16%.
However, top losers on the Sensex were HUL at Rs 283.65 down 2.59%, HDFC Bank at Rs 1,473.25 down 1.76%, HDFC at Rs 2,491 down 1.58%, Reliance Infra at Rs 1,190.20 down 1.24% and ITC at Rs 247 down 1.22%.
Top gainers on the BSE Midcap - Bharat Forge, Phoenix Mills, Bajaj Holdings, United Breweries and Anant Raj Ind were up 8-10%.
Top gainers on the BSE Smallcap - Empee Distiller, Allied Digital, Elgi Equipments, Sanghi Ind and CMI FPE were up 10-20%.
Nifty volatile; RIL, Rel Comm, BHEL up
At 11.53 am, the Nifty was volatile in tarde and was hovering around the 4650 mark. Auto, realty, metal oil & gas and pharma stocks were trading with some gains. Reliance, Reliance Comm, BHEL, Maruti Suzuki and Cairn India were the positive contributors to the Nifty. However, FMCG and consumer durable stocks were trading weak.
At 11.53 am, the Sensex was up 52 points at 15722, and the Nifty was up 18 points at 4654.60.
Top gainers on the Sensex were Reliance Communication, Maruti Suzuki, Hindalco, Sterlite Industries and Tata Steel.
The first quarter earning season just went by springing some pleasant and welcome surprises. Commenting on corporate India’s performance, Raamdeo Agrawal, Director and Co Founder of Motilal Oswal said that there were many positive surprises from the Q1 results, adding that he expected 2-3% earnings upgrades for FY10 results. He said that there was some uncertainty about the FY11 numbers due to Reliance Industries, which had unfortunately disappointed the street this quarter. Agarwal further said that the auto industry would sustain 12-15% of volume growth.
Reliance Comm, Maruti Suzuki, Cairn India, Unitech and Hindalco were the top gainers on the Nifty.
However, top losers on the Nifty were Suzlon Energy, HUL, Tata Comm, BPCL and HDFC Bank.
The most active shares on NSE were Aban Offshore, Suzlon Energy, Unitech, DLF and Tata Steel.
Top percentage gainers on the NSE were Empee Distiller at Rs 117.55 up 20.01%, TVS Srichakra at Rs 118.80 up 20.00%, Tips Industries at Rs 48.90 up 18.26%, Wanbury at Rs 69.50 up 17.40% and Bharat Gears at Rs 37.05 up 15.24%.
Sensex hovers around 15700; auto, metal, oil & gas up
At 10.40 am, the Sensex was volatile and was hovering around the 15700 mark. Buying interest was seen in auto, metal, oil & gas, pharma and capital goods stocks. However, FMCG, realty and banking stocks were witnessing selling pressure. The BSE midcap and smallcap indices were trading with half a percent gain.
At 10.40 am, the Sensex was down 13 points at 15656.31, and the Nifty was down 1 point at 4635.
Jagdish Malkani, Taib India, said the market undertone continued to be positive and the Nifty could go up to 4800 levels. "But the run has been too fast & I expect bouts of volatility. Valuations look expensive at current levels," he added.
HUL, DLF, HDFC Bank, JP Associates, Reliance Infra, HDFC were the top losers on the Sensex.
However, Sterlite Industries, Hindalco, Reliance Comm, Tata Steel and M&M were the top gainers on the Sensex.
Sensex choppy in early trade; Suzlon crashes on bad nos
The Sensex opened higher and continued Friday's rally further. However, the markets were volatile in trade. Metal and oil & gas exploration and pharma were the gainers in the early trade.
At 9:58 hours IST, the Nifty rose 13 points, to 4,649 and the Sensex was up 45 points at 15,715. The CNX Midcap was up 11 points at 5,961 and the BSE Smallcap Index rose 30 points, to 6,236. About 488 shares advanced while 196 shares declined on the NSE.
Among the frontliners, Cairn, Tata Power, Hindalco Industries, Reliance Power, Maruti, HCL Tech, Sterlite, Ranbaxy Labs, Reliance Communication, ONGC, Sun Pharma and Bharti Airtel were the gainers.
However, Suzlon Energy lost 7%, as the company reported loss of Rs 453 crore. Reliance Capital was down 2.25% on weak numbers.
BPCL, Tata Motors, HUL and ICICI Bank were the other losers.
Midcap space
Excel Infoways listed at Rs 86 on the NSE and Rs 93.05 on the BSE.
GMR Infra lost 3%. Hotel Leela and Indian Hotel were down 2%.
Divis Labs lost 6.7% on bad results. Maytas Infra lost 5%.
Rolta was down 1.5% ahead of numbers. However, Aban Offshore was up 3% on the back of better-than-expectations numbers.
Global Cues:
Asian markets were trading mixed. Shanghai, Hang Seng, Jakarta and Kospi were up 0.5-1.1%. However, Taiwan Weighted fell 0.4% and Straits Times down 0.25%. Nikkei was flat.
Market cues:
-FIIs net buy USD 244 million on July 30
-DIIs net sell Rs 49.2 crore July 30
-Total F&O Open Interest up by Rs 3,258 crore to Rs 59,893 crore
-FIIs net buy Rs 582 crore in Cash on July 31 (Prov)
-DIIs net buy Rs 316 crore in Cash July 31 (Prov)
-FIIs ney by Rs 660 crore in F&O July 31
F&O cues:
-Total Futures Open Int up by Rs 1372 crore and Total Options Open Int up by Rs 1886 crore
-Nifty up 1.4%, Futures Open Int up 4%
-Nifty August Futures traded at 1- pt premium
-Nifty IVs at 34-36%
-Nifty Open Int Put Call Ratio up from 0.95 to 0.98
-Nifty Puts add 18.9 lakh shares
-Nifty Calls add 10.9 lakh shares
-Nifty 4600 Puts add 6 lakh shares in Open Int
-Nifty 4800 Calls add 3.6 lakh shares in Open Int
-Nifty 4900 Calls add 3.54 lakh shares in Open Int
-Nifty 4600 Call sheds 2.9 lakh shares in Open Int
-Stock Futures add 3.3 cr shares in Open Interest
Stocks like Reliance, Infosys, ICICI Bank, L&T, SBI, BHEL, Reliance Comm and ONGC were the positive contributors to the Sensex and the Nifty.
The BSE midcap and smallcap indices closed up 2.3% and 1.69% respectively.
The Sensex closed up 253.92 points or 1.62% at 15924.23, and the Nifty was up 74.95 points or 1.62% at 4711.40.
About 1801 shares advanced, 1034 shares declined, and 337 shares were unchanged.
The BSE auto index closed up 4.60% or 262.77 points at 5976.45. Stocks like Bharat Forge, Amtek Auto, Cummins, Mah and Mah and Bajaj Auto were up 6-18%.
The BSE realty index was up 4.19% or 163.73 points at 4072.49. Stocks like Phoenix Mills, Mahindra Life, Anant Raj Ind, Indiabulls Real and Peninsula Land were up 6-9%.
The BSE metal index was up 3.41% or 422.76 points at 12818.02. Stocks like Hindalco, JSW Steel, Hind Zinc, Jindal Saw and Tata Steel were up 4-8%.
The BSE power index was up 2.19% or 65.17 points at 3,035.63. Stocks like BHEL, Tata Power, Torrent Power, ABB and Lanco Infratech were up 2-5%.
The BSE oil & gas index was up 2.04% or 192.99 points at 9,673.08. Stocks like Aban Offshore, Cairn India, Reliance, Reliance Petro and ONGC were up 1-9%.
The BSE capital goods index was up 1.82% or 229.28 points 12,825.22. Stocks like Praj Industries, Usha Martin, BHEL, ABB and Alstom Projects were up 4-10%.
The BSE healthcare index was up 1.41% or 53.54 points 3,858.59. Stocks like Biocon, Aurobindo Pharma, Opto Circuits, Piramal Health and Bilcare were up 2-10%.
The BSE bankex was up 1.20% or 101.93 points at 8,567.69. Stocks like IOB, Karnataka Bank, Oriental Bank, IDBI Bank and Allahabad Bank closed up 2-3%.
The BSE IT index was up 0.99% or 39.37 points at 4,001.49. Stocks liek Mphasis, Patni Computer, Financial Tech, HCL Tech and Aptech were up 5-8%.
However, the BSE FMCG index was down 0.71% or 19.45 points at 2,718.70. Stocks like HUL, Nestle, Britannia, Marico and Colgate were down 1-2%.
Volumes were lower; total traded turnover stood at Rs 73090.81 crore. This included Rs 16687.11 crore from the NSE cash segment, Rs 50805.16 crore from the NSE F&O segment and the balance Rs 5598.54 crore from the BSE cash segment.
Nifty @ 14-month high; RIL, BHEL, Rel Comm, ONGC surge
At 15.02 hrs IST, the Nifty touched 2009 high and was trading with over 1% gains at 4695. It was trading at 14-month high. The positive contributors to the Nifty were Reliance, BHEL, Reliance Comm, ONGC and Sterlite Ind. Good buying was seen in auto, realty, metal, power, oil & gas, capital goods and pharma stocks.
The BSE midcap and smallcap indices were up 2.27% and 1.62% respectively.
The Sensex was up 164.92 points or 1.05% at 15835.23, and the Nifty was up 59.10 points or 1.27% at 4695.55.
About 1682 shares have advanced, 1133 shares declined, and 357 shares are unchanged.
Top gainers on the bourses were Hindalco up 5.74% at Rs 105.95, Mah and Mah up 5.39% at Rs 903, BHEL up 4.56% at Rs 2,329.70, Tata Steel up 4.28% at Rs 482.50, Sterlite Ind up 4.19% at Rs 672, HCL Tech up 4.98% at Rs 253. and NALCO up 4.73% at Rs 323.20.
However, top losers on the bourses were HUL down 2.56% at Rs 283.75, HDFC Bank down 1.24% Rs 1,480.95, ITC down 0.98% at Rs 247.60, Bharti Airtel down 0.66% at Rs 407.85, Wipro down 0.28% at Rs 489.30, Suzlon Energy down 4.21% at Rs 95.60, BPCL down 1.76% at Rs 465.65, GAIL down 1.14% at Rs 328.15 and Ambuja Cements down 0.88% at Rs 107.55.
Sensex gains further; auto, realty, metal surge
At 13.55 hrs IST, the Sensex gained further and was inching towards the 15800 mark. Strong buying was seen in auto, realty, metal, power, capital goods, pharma and oil & gas stocks. RIL, L&T, Bharti Airtel, SBI and ONGC were positive contributors to the Sensex.
The Sensex was up 120.66 points or 0.77% at 15790.97, and the Nifty was up 39.45 points or 0.85% at 4675.90.
The advanced- declined ratio was in favour of advances; about 1608 shares advanced, 1182 shares declined, and 381 shares were unchanged.
The selling pressure was seen in the consumer durable, bank and FMCG space.
Hindalco, Tata Power, BHEL, Mahindra and Mahindra, Maruti Suzuki and NALCO were the top gainer on the indices, with 4-6% gain. However, top losers were HUL, IDFC Bank, Reliance Infra, HDFC, ITC, Suzlon Energy, BPCL, GAIL and HDFC Bank.
The midcap and smallcap indices were trading with 1.5% gain.
Nifty holds 4650; RIL, L&T, Bharti Airtel, SBI lead
At 13.00 hrs IST, the Sensex was trading with positive bias. Stocks like Reliance, L&T, Bharti Airtel, SBI and BHEL were the positive contributors to the Sensex. However, Infosys, ICICI Bank, ITC, HDFC and HDFC Bank were the negative contributors. The BSE auto index outperformed all the other sectoral indices, it was up nearly 3%.
The Sensex was up 63.95 points or 0.41% at 15734.26, and the Nifty was up 23.35 points or 0.50% at 4659.80.
About 1530 shares advanced, 1234 shares declined, and 407 shares were unchanged.
Sanjeev Prasad, Executive Director and Co-Head, Kotak Institutional Equities, didn't see significant re-rating of companies post the Q1 FY10 earnings. "We are looking at Sensex earnings per share of about Rs 1,075 for FY11." According to him, the market was trading at 17.7 and 15 times FY10 and FY11 earnings per share respectively. "We need serious upgrades for the market to sustain,” he added.
Good buying interest was seen in realty, metal, pharma, oil & gas and capital goods stocks while FMCG and banks stocks were trading weak.
Top gainers on the Sensex were BHEL at Rs 2,310.10 up 3.68%, Sterlite Ind at Rs 668.50 up 3.65%, Maruti Suzuki at Rs 1,463.30 up 3.54%, Hindalco at Rs 103.70 up 3.49% and Reliance Comm at Rs 284.35 up 3.16%.
However, top losers on the Sensex were HUL at Rs 283.65 down 2.59%, HDFC Bank at Rs 1,473.25 down 1.76%, HDFC at Rs 2,491 down 1.58%, Reliance Infra at Rs 1,190.20 down 1.24% and ITC at Rs 247 down 1.22%.
Top gainers on the BSE Midcap - Bharat Forge, Phoenix Mills, Bajaj Holdings, United Breweries and Anant Raj Ind were up 8-10%.
Top gainers on the BSE Smallcap - Empee Distiller, Allied Digital, Elgi Equipments, Sanghi Ind and CMI FPE were up 10-20%.
Nifty volatile; RIL, Rel Comm, BHEL up
At 11.53 am, the Nifty was volatile in tarde and was hovering around the 4650 mark. Auto, realty, metal oil & gas and pharma stocks were trading with some gains. Reliance, Reliance Comm, BHEL, Maruti Suzuki and Cairn India were the positive contributors to the Nifty. However, FMCG and consumer durable stocks were trading weak.
At 11.53 am, the Sensex was up 52 points at 15722, and the Nifty was up 18 points at 4654.60.
Top gainers on the Sensex were Reliance Communication, Maruti Suzuki, Hindalco, Sterlite Industries and Tata Steel.
The first quarter earning season just went by springing some pleasant and welcome surprises. Commenting on corporate India’s performance, Raamdeo Agrawal, Director and Co Founder of Motilal Oswal said that there were many positive surprises from the Q1 results, adding that he expected 2-3% earnings upgrades for FY10 results. He said that there was some uncertainty about the FY11 numbers due to Reliance Industries, which had unfortunately disappointed the street this quarter. Agarwal further said that the auto industry would sustain 12-15% of volume growth.
Reliance Comm, Maruti Suzuki, Cairn India, Unitech and Hindalco were the top gainers on the Nifty.
However, top losers on the Nifty were Suzlon Energy, HUL, Tata Comm, BPCL and HDFC Bank.
The most active shares on NSE were Aban Offshore, Suzlon Energy, Unitech, DLF and Tata Steel.
Top percentage gainers on the NSE were Empee Distiller at Rs 117.55 up 20.01%, TVS Srichakra at Rs 118.80 up 20.00%, Tips Industries at Rs 48.90 up 18.26%, Wanbury at Rs 69.50 up 17.40% and Bharat Gears at Rs 37.05 up 15.24%.
Sensex hovers around 15700; auto, metal, oil & gas up
At 10.40 am, the Sensex was volatile and was hovering around the 15700 mark. Buying interest was seen in auto, metal, oil & gas, pharma and capital goods stocks. However, FMCG, realty and banking stocks were witnessing selling pressure. The BSE midcap and smallcap indices were trading with half a percent gain.
At 10.40 am, the Sensex was down 13 points at 15656.31, and the Nifty was down 1 point at 4635.
Jagdish Malkani, Taib India, said the market undertone continued to be positive and the Nifty could go up to 4800 levels. "But the run has been too fast & I expect bouts of volatility. Valuations look expensive at current levels," he added.
HUL, DLF, HDFC Bank, JP Associates, Reliance Infra, HDFC were the top losers on the Sensex.
However, Sterlite Industries, Hindalco, Reliance Comm, Tata Steel and M&M were the top gainers on the Sensex.
Sensex choppy in early trade; Suzlon crashes on bad nos
The Sensex opened higher and continued Friday's rally further. However, the markets were volatile in trade. Metal and oil & gas exploration and pharma were the gainers in the early trade.
At 9:58 hours IST, the Nifty rose 13 points, to 4,649 and the Sensex was up 45 points at 15,715. The CNX Midcap was up 11 points at 5,961 and the BSE Smallcap Index rose 30 points, to 6,236. About 488 shares advanced while 196 shares declined on the NSE.
Among the frontliners, Cairn, Tata Power, Hindalco Industries, Reliance Power, Maruti, HCL Tech, Sterlite, Ranbaxy Labs, Reliance Communication, ONGC, Sun Pharma and Bharti Airtel were the gainers.
However, Suzlon Energy lost 7%, as the company reported loss of Rs 453 crore. Reliance Capital was down 2.25% on weak numbers.
BPCL, Tata Motors, HUL and ICICI Bank were the other losers.
Midcap space
Excel Infoways listed at Rs 86 on the NSE and Rs 93.05 on the BSE.
GMR Infra lost 3%. Hotel Leela and Indian Hotel were down 2%.
Divis Labs lost 6.7% on bad results. Maytas Infra lost 5%.
Rolta was down 1.5% ahead of numbers. However, Aban Offshore was up 3% on the back of better-than-expectations numbers.
Global Cues:
Asian markets were trading mixed. Shanghai, Hang Seng, Jakarta and Kospi were up 0.5-1.1%. However, Taiwan Weighted fell 0.4% and Straits Times down 0.25%. Nikkei was flat.
Market cues:
-FIIs net buy USD 244 million on July 30
-DIIs net sell Rs 49.2 crore July 30
-Total F&O Open Interest up by Rs 3,258 crore to Rs 59,893 crore
-FIIs net buy Rs 582 crore in Cash on July 31 (Prov)
-DIIs net buy Rs 316 crore in Cash July 31 (Prov)
-FIIs ney by Rs 660 crore in F&O July 31
F&O cues:
-Total Futures Open Int up by Rs 1372 crore and Total Options Open Int up by Rs 1886 crore
-Nifty up 1.4%, Futures Open Int up 4%
-Nifty August Futures traded at 1- pt premium
-Nifty IVs at 34-36%
-Nifty Open Int Put Call Ratio up from 0.95 to 0.98
-Nifty Puts add 18.9 lakh shares
-Nifty Calls add 10.9 lakh shares
-Nifty 4600 Puts add 6 lakh shares in Open Int
-Nifty 4800 Calls add 3.6 lakh shares in Open Int
-Nifty 4900 Calls add 3.54 lakh shares in Open Int
-Nifty 4600 Call sheds 2.9 lakh shares in Open Int
-Stock Futures add 3.3 cr shares in Open Interest
Result Update-Suzlon Energy Ltd
Investment Highlights
Latest quarter sales performance: Suzlon’s consolidated net sales
increased by 33% to Rs.4152.68 crore (YoY) as against Rs.3117.80
crore (YoY). The company reported growth in revenues at a
consolidated level, where as at the stand-alone basis quantity of sales
decreased.
Reported net loss in Q1FY10: The Company posted consolidated net
loss of Rs.462.55 Crs in the Q1FY10 as against net profit of Rs.54.80
crore (YoY).
Decrease in EBITDA margin: EBITDA margin of the company
decreased to 0.30% for Q1FY10 from 12.21% (YoY). The margins of the
company declined due to low volume in Suzlon’s wind energy business.
Technical Outlook
CMP R1 R2 S1 S2 Buy/Sell
94.35 97 104 87 78 Sell
Industry: Electric Equipment
Price Data
Current Price (Rs) 94.35
52 wk range (Rs) 33 - 253
Stock Data
Mkt Cap (Rs Cr) 14136
No. of shares o/s(Cr) 149.83
Free float (%) 40.18
Latest quarter sales performance: Suzlon’s consolidated net sales
increased by 33% to Rs.4152.68 crore (YoY) as against Rs.3117.80
crore (YoY). The company reported growth in revenues at a
consolidated level, where as at the stand-alone basis quantity of sales
decreased.
Reported net loss in Q1FY10: The Company posted consolidated net
loss of Rs.462.55 Crs in the Q1FY10 as against net profit of Rs.54.80
crore (YoY).
Decrease in EBITDA margin: EBITDA margin of the company
decreased to 0.30% for Q1FY10 from 12.21% (YoY). The margins of the
company declined due to low volume in Suzlon’s wind energy business.
Technical Outlook
CMP R1 R2 S1 S2 Buy/Sell
94.35 97 104 87 78 Sell
Industry: Electric Equipment
Price Data
Current Price (Rs) 94.35
52 wk range (Rs) 33 - 253
Stock Data
Mkt Cap (Rs Cr) 14136
No. of shares o/s(Cr) 149.83
Free float (%) 40.18
MONEY MORNING - 3-Aug-09
Wall Street stayed in the green for much of the day after the Q2 GDP
showed a less than expected contraction. The key benchmark indices
Dow Jones was up by 0.19% and NASDAQ was down by 0.29%. The
Asian bourses are trading positive with Nikkei up by 0.03%, Hang Seng
up by 0.88% and Singapore Nifty up by 0.13%.
Considering Global cues, the domestic bourses are likely to trade range
bound. Technically spot nifty may take resistance at 4680/4725/4820
levels and support at 4580/4525/4430 levels.
POST-MARKET ANALYSIS:
Recovery in IT, FMCG, banks and real estate stocks helped Indian
markets to show positive close yesterday. However, the key benchmark
indices pared gains in mid-afternoon trade as European stocks
declined. Sensex and Nifty were up by 1.83% and 1.42% respectively.
FIIs’ were net buyers both in equity and derivatives.
ADRs: Tata comm. (-4.68%), MTNL (-3.66%), Satyam Computers (-
2.33%) and Patni Computers (+2.35%).
NEWS TO USE:
ONGC has begun an ambitious exploration programme in the Kerala–
Konkan basin from today, engaging an ultra-deepwater drill ship. With a
Rs 400-crore investment outlay, the company has charted an
exploration programme to be completed within 100 days.
RELIANCE INFRASTRUCTURE order-book position was all set to
cross the Rs 50,000-crore mark.
JAIPRAKASH ASSOCIATES will invest Rs. 1,050 crore for setting up a
greenfield cement plant in Assam.
M&M has opened its new 3-S (sales, service and spare parts)
infrastructure facility in Hyderabad.
SAIL has registered 14% growth in production of steel to over 1 million
tonnes during July over the year-ago period.
TATA MOTORS will deliver up to 60,000 units of the Nano, which is touted as the world's cheapest car, by July
next year while remaining committed to handing over the first one lakh cars by 2010 once its mother plant in
Sanand goes on stream.
RCOM consolidated Net profit increased by 8.23% (YoY) to Rs 1636.61 crore as against Rs 1512.15 crore in
Q1FY10. Net Sales increased by 5.28% (YoY) to Rs 5505.49 crore as against Rs 5229.47 crore.
NEUTRAL
TATA STEEL has prepared a plan to produce half the iron ore and coking coal — the raw materials used to
make steel — for Corus, its European subsidiary, by 2012.
TATA MOTORS edged closer to signing a financial aid package with the British government for its struggling
UK subsidiary Jaguar Land Rover.
PFC will soon approach banks and financial institutions to raise Rs 90,000 crore as part of the National
Electricity Fund, which was set up for the development of the power sector.
BAJAJ AUTO will launch its second new motorcycle for the year.
The government may soon levy a 10% royalty on iron ore on ad valorem basis as the mines ministry has sent a
proposal in this regard to the Union Cabinet for its approval.
BHARTI AIRTEL and South Africa's MTN are likely to announce the status this week of the proposed merger to
create a $23-billion entity as period for exclusive talks between them expired on July 31.
KOTAK MAHINDRA BANK has decided to reduce its unsecured loans in the months ahead but has ruled out
the possibility of winding up the portfolio completely.
ALLAHABAD BANK has raised Rs 450-crore worth tier-II capital with a view to fund its growth needs and
shore up its capital adequacy ratio.
TCS and WIPRO, apart from several others, are in pursuit of up to Rs 2,500-crore outsourcing contract at
Indian Railways.
JK TYRE could soon join the bandwagon of radial tyre companies setting up shops near Chennai.
GAMMON INDIA standalone Net profit decreased by 52.20% (YoY) to Rs 25.06 crore as against Rs 52.43
crore in Q1FY10. Net Sales increased by 45.32% (YoY) to Rs 850.45 crore as against Rs 585.24 crore.
NEGATIVE
ORCHID CHEM reported standalone Net loss of Rs 29.76 crore as against Net loss of Rs 31.65 crore in
Q1FY10. Net Sales increased by 6.31% (YoY) to Rs 305.82 crore as against Rs 287.66 crore.
PURAVANKARA PROJECT consolidated Net profit decreased by 83.45% (YoY) to Rs 10.24 crore as against
Rs 61.89 crore in Q1FY10. Net Sales decreased by 64.48% (YoY) to Rs 55.97 crore as against Rs 157.58
crore.
ADLABSFILM reported standalone Net loss of Rs 63.70 (YoY) crore as against Rs 2.32 crore in Q1FY10. Net
Sales decreased by 54.84% (YoY) to Rs 103.41 crore as against Rs 228.97 crore.
showed a less than expected contraction. The key benchmark indices
Dow Jones was up by 0.19% and NASDAQ was down by 0.29%. The
Asian bourses are trading positive with Nikkei up by 0.03%, Hang Seng
up by 0.88% and Singapore Nifty up by 0.13%.
Considering Global cues, the domestic bourses are likely to trade range
bound. Technically spot nifty may take resistance at 4680/4725/4820
levels and support at 4580/4525/4430 levels.
POST-MARKET ANALYSIS:
Recovery in IT, FMCG, banks and real estate stocks helped Indian
markets to show positive close yesterday. However, the key benchmark
indices pared gains in mid-afternoon trade as European stocks
declined. Sensex and Nifty were up by 1.83% and 1.42% respectively.
FIIs’ were net buyers both in equity and derivatives.
ADRs: Tata comm. (-4.68%), MTNL (-3.66%), Satyam Computers (-
2.33%) and Patni Computers (+2.35%).
NEWS TO USE:
ONGC has begun an ambitious exploration programme in the Kerala–
Konkan basin from today, engaging an ultra-deepwater drill ship. With a
Rs 400-crore investment outlay, the company has charted an
exploration programme to be completed within 100 days.
RELIANCE INFRASTRUCTURE order-book position was all set to
cross the Rs 50,000-crore mark.
JAIPRAKASH ASSOCIATES will invest Rs. 1,050 crore for setting up a
greenfield cement plant in Assam.
M&M has opened its new 3-S (sales, service and spare parts)
infrastructure facility in Hyderabad.
SAIL has registered 14% growth in production of steel to over 1 million
tonnes during July over the year-ago period.
TATA MOTORS will deliver up to 60,000 units of the Nano, which is touted as the world's cheapest car, by July
next year while remaining committed to handing over the first one lakh cars by 2010 once its mother plant in
Sanand goes on stream.
RCOM consolidated Net profit increased by 8.23% (YoY) to Rs 1636.61 crore as against Rs 1512.15 crore in
Q1FY10. Net Sales increased by 5.28% (YoY) to Rs 5505.49 crore as against Rs 5229.47 crore.
NEUTRAL
TATA STEEL has prepared a plan to produce half the iron ore and coking coal — the raw materials used to
make steel — for Corus, its European subsidiary, by 2012.
TATA MOTORS edged closer to signing a financial aid package with the British government for its struggling
UK subsidiary Jaguar Land Rover.
PFC will soon approach banks and financial institutions to raise Rs 90,000 crore as part of the National
Electricity Fund, which was set up for the development of the power sector.
BAJAJ AUTO will launch its second new motorcycle for the year.
The government may soon levy a 10% royalty on iron ore on ad valorem basis as the mines ministry has sent a
proposal in this regard to the Union Cabinet for its approval.
BHARTI AIRTEL and South Africa's MTN are likely to announce the status this week of the proposed merger to
create a $23-billion entity as period for exclusive talks between them expired on July 31.
KOTAK MAHINDRA BANK has decided to reduce its unsecured loans in the months ahead but has ruled out
the possibility of winding up the portfolio completely.
ALLAHABAD BANK has raised Rs 450-crore worth tier-II capital with a view to fund its growth needs and
shore up its capital adequacy ratio.
TCS and WIPRO, apart from several others, are in pursuit of up to Rs 2,500-crore outsourcing contract at
Indian Railways.
JK TYRE could soon join the bandwagon of radial tyre companies setting up shops near Chennai.
GAMMON INDIA standalone Net profit decreased by 52.20% (YoY) to Rs 25.06 crore as against Rs 52.43
crore in Q1FY10. Net Sales increased by 45.32% (YoY) to Rs 850.45 crore as against Rs 585.24 crore.
NEGATIVE
ORCHID CHEM reported standalone Net loss of Rs 29.76 crore as against Net loss of Rs 31.65 crore in
Q1FY10. Net Sales increased by 6.31% (YoY) to Rs 305.82 crore as against Rs 287.66 crore.
PURAVANKARA PROJECT consolidated Net profit decreased by 83.45% (YoY) to Rs 10.24 crore as against
Rs 61.89 crore in Q1FY10. Net Sales decreased by 64.48% (YoY) to Rs 55.97 crore as against Rs 157.58
crore.
ADLABSFILM reported standalone Net loss of Rs 63.70 (YoY) crore as against Rs 2.32 crore in Q1FY10. Net
Sales decreased by 54.84% (YoY) to Rs 103.41 crore as against Rs 228.97 crore.
Calls for the 3rd August
RESEARCH: MARKET OUTLOOK: With the help of Firm trend in global markets, short covering in F&O segment and better than expected quarterly earnings, NIFTY extended gains of 1.76 percent in the preceding week. Q1 earning announcement for most of the heavy weight index stocks are almost over. Technically, the short-term sentiment would remain bullish and if NIFTY sustains above 4693 levels we may see the rally upto 4910 levels. The intraday key support is likely to be seen at 4573 and 4513 levels.
11:26 AM 8/3 RESEARCH - INTRADAY CALL ( CASH ) : SHORT SELL WIPRO BELOW 488 TGT 473 SL 495
(8/3/2009 12:41:47 PM): RESEARCH: EUROPEAN MARKET UPDATE : FTSE(-0.7%), DAX (-0.2%), CAC (-0.3%)
(8/3/2009 12:55:28 PM): RESEARCH - INTRADAY CALL ( CASH ) : BUY ZEEL ABOVE 190 TGT 197 SL 187
2:17 PM 8/3 RESEARCH : INTRADAY CALL (CASH) : BOOK PROFITS IN TATASTEEL
3:16 PM 8/3 RESEARCH:MONEY MORNING FUNDAMENTAL CALL:GITANJALI GEMS ACHIEVED TARGET
11:26 AM 8/3 RESEARCH - INTRADAY CALL ( CASH ) : SHORT SELL WIPRO BELOW 488 TGT 473 SL 495
(8/3/2009 12:41:47 PM): RESEARCH: EUROPEAN MARKET UPDATE : FTSE(-0.7%), DAX (-0.2%), CAC (-0.3%)
(8/3/2009 12:55:28 PM): RESEARCH - INTRADAY CALL ( CASH ) : BUY ZEEL ABOVE 190 TGT 197 SL 187
2:17 PM 8/3 RESEARCH : INTRADAY CALL (CASH) : BOOK PROFITS IN TATASTEEL
3:16 PM 8/3 RESEARCH:MONEY MORNING FUNDAMENTAL CALL:GITANJALI GEMS ACHIEVED TARGET
Saturday, August 1, 2009
Q1 RESULTS- Tata power, TVS motors,Nalco,ABB
Q1 RESULTS
DLF Q1 NET PLUNGES 79%, REVENUE SLIPS BY 57%
DLF Q1 net slumped to Rs 396 crore (Rs 1,863.97 crore) due to sharp decline in demand for its housing and commercial properties. Revenue fell to Rs 1,649.86 crore (Rs 3,810.62 crore).
TATA POWER NET UP 144%, REVENUES DOWN 1%
Tata Power's net profit was up at Rs 396 crore (Rs 162 crore). Net revenues fell to Rs 1,975 crore (Rs 1,989 crore).
TVS MOTOR'S NET ZOOMS 157%, SALES UP 7%
TVS Motor's profit zoomed to Rs 18.1 cr (Rs 7 cr) due to sharp fall in raw material prices and an appropriate product mix.
NALCO NET DOWN 76%, SALES FALL 36%
National Aluminum Company's net profit was down at Rs 127 crore (Rs 525 crore). Sales were at Rs 920 crore (Rs 1460 crore).
ABB Q2 NET DOWN 36.5%, SALES SLIP 7%
ABB Q2 net profit stood at Rs 84 crore (Rs 132 crore). Total income dropped to Rs 1,525 crore (Rs 1,637 crore).
DLF Q1 NET PLUNGES 79%, REVENUE SLIPS BY 57%
DLF Q1 net slumped to Rs 396 crore (Rs 1,863.97 crore) due to sharp decline in demand for its housing and commercial properties. Revenue fell to Rs 1,649.86 crore (Rs 3,810.62 crore).
TATA POWER NET UP 144%, REVENUES DOWN 1%
Tata Power's net profit was up at Rs 396 crore (Rs 162 crore). Net revenues fell to Rs 1,975 crore (Rs 1,989 crore).
TVS MOTOR'S NET ZOOMS 157%, SALES UP 7%
TVS Motor's profit zoomed to Rs 18.1 cr (Rs 7 cr) due to sharp fall in raw material prices and an appropriate product mix.
NALCO NET DOWN 76%, SALES FALL 36%
National Aluminum Company's net profit was down at Rs 127 crore (Rs 525 crore). Sales were at Rs 920 crore (Rs 1460 crore).
ABB Q2 NET DOWN 36.5%, SALES SLIP 7%
ABB Q2 net profit stood at Rs 84 crore (Rs 132 crore). Total income dropped to Rs 1,525 crore (Rs 1,637 crore).
J&K CM Omar Abdullah resumes office
Jammu and Kashmir Chief Minister Omar Abdullah resumed office today, a day after Governor N N Vohra rejected his resignation which he had tendered over allegations by a senior PDP leader of his being involved in the 2006 sex scandal case.
Dressed in Pathani suit, Omar was greeted by dozens of his staff who had lined up at the secretariat since morning.
The 39-year-old Chief Minister interacted with his staff and began his work by signing on some files.
He also held his usual morning meeting with his cabinet colleagues and later chaired a cabinet meeting.
Speaking to the media, he said, "I had to take a difficult decision in order to clear not only my own name but also to establish some respectability for politics and politicians in the state of Jammu and Kashmir."
He stressed that he had left the Assembly incident behind him as "I am not the one to dwell on the past. I look towards the future. I have never conducted myself or my politics with a view to extracting revenge and therefore what is done is done."
He said, "We have come to fulfill the aspirations of the people of the state rather than fight among ourselves. I believe in the highest political ethics, upright character and moral principles and my conviction is that only a person with unblemished character has the moral right to hold such positions from where he can serve people with full devotion and sincerity."
Dressed in Pathani suit, Omar was greeted by dozens of his staff who had lined up at the secretariat since morning.
The 39-year-old Chief Minister interacted with his staff and began his work by signing on some files.
He also held his usual morning meeting with his cabinet colleagues and later chaired a cabinet meeting.
Speaking to the media, he said, "I had to take a difficult decision in order to clear not only my own name but also to establish some respectability for politics and politicians in the state of Jammu and Kashmir."
He stressed that he had left the Assembly incident behind him as "I am not the one to dwell on the past. I look towards the future. I have never conducted myself or my politics with a view to extracting revenge and therefore what is done is done."
He said, "We have come to fulfill the aspirations of the people of the state rather than fight among ourselves. I believe in the highest political ethics, upright character and moral principles and my conviction is that only a person with unblemished character has the moral right to hold such positions from where he can serve people with full devotion and sincerity."
Japan's jobless rate at 6-year high
Japan’s unemployment rate rose to a six-year high in June and consumer prices fell at a record pace, adding to evidence the domestic economy is struggling to recover even as exports start to improve.
The jobless rate advanced to 5.4 percent from 5.2 percent in May, the statistics bureau said today in Tokyo, higher than the 5.3 percent median forecast of economists surveyed. Consumer prices excluding fresh food, the central bank’s preferred gauge, fell a record 1.7 percent in June, a separate report showed.
Economists expect the jobless rate to rise to a record 5.8 percent as companies cut costs. Deflation may erode profits even as factory output rebounds, further hampering Japan’s recovery from its deepest postwar recession.
“Worsening job prospects will continue to weigh on Japan’s recovery,” said Yasuhiro Onakado, chief economist in Tokyo at Daiwa SB Investments Ltd. in Tokyo. “The export recovery is helping production but capacity utilization is still low and companies are still saddled with excess capacity and employment.”
The yen traded at 95.30 per dollar at 12:04 p.m. in Tokyo from 95.46 before the report was published. The Nikkei 225 Stock Average rose 1.4 percent to 10,304.90, heading for its highest close since Oct 6, after Sony Corp. posted a smaller than expected quarterly loss.
Given Japan’s current production levels, companies have 6 million extra workers, the highest ever, the Cabinet Office said last week. A report yesterday showed that while output increased 2.4 percent in June from the previous month, it fell 23.4 percent from a year ago.
Record Low
The number of positions available to each job applicant rose stood at 0.43, a record low, the Labor Ministry said. Economists regard the ratio as a leading indicator for the unemployment rate.
Consumers have received temporary relief from the downturn from Prime Minister Taro Aso’s 25 trillion yen ($262 billion) in stimulus spending that included measures ranging from cash handouts to tax breaks on fuel-efficient vehicles. The packages helped bolster consumer confidence to an 18-month high in June.
Household spending rose 0.2 percent, a second monthly gain, a separate report showed today. Economists expected outlays to increase 0.5 percent. Retail sales fell 3 percent in June, the government said earlier this week.
“Consumer spending will clearly start weaken once the impact of the stimulus packages fades,” said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.
Nintendo Co. and Sony, the largest makers of game consoles, are facing mounting pressure to cut prices after reports yesterday showed sales of the motion-sensing Wii fell for the first time and PlayStation 3 shipments tumbled to a two-year low.
The U.S. unemployment rate rose to a quarter-century high of 9.5 percent in June and in the euro zone it reached a decade high of 9.5 percent in May.
Saving More
At home, consumers are starting to save more, prompting retailers to offer cheaper products to lure consumers. Department store operator Millenium Retailing Inc. will start selling cheaper, generic products in September, according to Nagatoshi Nii, spokesman at the retailer. Aeon Co., Japan’s second-largest retailer, started selling house-brand beer that’s 20 percent cheaper than equivalent products at major breweries.
The drop in consumer prices will probably accelerate through the third quarter and exceed 2 percent in reaction to last year’s record increases in oil, Bank of Japan board member Tadao Noda said yesterday. Declines will moderate after that as the economy improves, he added.
Summer bonuses at Japan’s largest companies will slide a record 18.3 percent this year, according to a survey published last month by the Keidanren, the country’s biggest business lobby. The average budget for this summer vacation for each individual dropped 18 percent to 88,000 yen ($925) from last year, the lowest in four years, Dentsu Research Inc. reported this week.
The jobless rate advanced to 5.4 percent from 5.2 percent in May, the statistics bureau said today in Tokyo, higher than the 5.3 percent median forecast of economists surveyed. Consumer prices excluding fresh food, the central bank’s preferred gauge, fell a record 1.7 percent in June, a separate report showed.
Economists expect the jobless rate to rise to a record 5.8 percent as companies cut costs. Deflation may erode profits even as factory output rebounds, further hampering Japan’s recovery from its deepest postwar recession.
“Worsening job prospects will continue to weigh on Japan’s recovery,” said Yasuhiro Onakado, chief economist in Tokyo at Daiwa SB Investments Ltd. in Tokyo. “The export recovery is helping production but capacity utilization is still low and companies are still saddled with excess capacity and employment.”
The yen traded at 95.30 per dollar at 12:04 p.m. in Tokyo from 95.46 before the report was published. The Nikkei 225 Stock Average rose 1.4 percent to 10,304.90, heading for its highest close since Oct 6, after Sony Corp. posted a smaller than expected quarterly loss.
Given Japan’s current production levels, companies have 6 million extra workers, the highest ever, the Cabinet Office said last week. A report yesterday showed that while output increased 2.4 percent in June from the previous month, it fell 23.4 percent from a year ago.
Record Low
The number of positions available to each job applicant rose stood at 0.43, a record low, the Labor Ministry said. Economists regard the ratio as a leading indicator for the unemployment rate.
Consumers have received temporary relief from the downturn from Prime Minister Taro Aso’s 25 trillion yen ($262 billion) in stimulus spending that included measures ranging from cash handouts to tax breaks on fuel-efficient vehicles. The packages helped bolster consumer confidence to an 18-month high in June.
Household spending rose 0.2 percent, a second monthly gain, a separate report showed today. Economists expected outlays to increase 0.5 percent. Retail sales fell 3 percent in June, the government said earlier this week.
“Consumer spending will clearly start weaken once the impact of the stimulus packages fades,” said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.
Nintendo Co. and Sony, the largest makers of game consoles, are facing mounting pressure to cut prices after reports yesterday showed sales of the motion-sensing Wii fell for the first time and PlayStation 3 shipments tumbled to a two-year low.
The U.S. unemployment rate rose to a quarter-century high of 9.5 percent in June and in the euro zone it reached a decade high of 9.5 percent in May.
Saving More
At home, consumers are starting to save more, prompting retailers to offer cheaper products to lure consumers. Department store operator Millenium Retailing Inc. will start selling cheaper, generic products in September, according to Nagatoshi Nii, spokesman at the retailer. Aeon Co., Japan’s second-largest retailer, started selling house-brand beer that’s 20 percent cheaper than equivalent products at major breweries.
The drop in consumer prices will probably accelerate through the third quarter and exceed 2 percent in reaction to last year’s record increases in oil, Bank of Japan board member Tadao Noda said yesterday. Declines will moderate after that as the economy improves, he added.
Summer bonuses at Japan’s largest companies will slide a record 18.3 percent this year, according to a survey published last month by the Keidanren, the country’s biggest business lobby. The average budget for this summer vacation for each individual dropped 18 percent to 88,000 yen ($925) from last year, the lowest in four years, Dentsu Research Inc. reported this week.
US GDP contracts 1.5% (5.4%) in April-June qtr
The U.S. economy probably shrank at a slower pace in the second quarter, a sign the worst recession in half a century is winding down, economists said before a report today.
Gross domestic product contracted at a 1.5 percent annual rate from April to June after dropping 5.5 percent the prior quarter, according to the median forecast of 78 economists surveyed by Bloomberg News. The report will also include benchmark revisions for prior quarters.
Profits at companies from Caterpillar Inc. to Dow Chemical Co. show the slump is easing as government efforts to revive lending and President Barack Obama’s stimulus take hold. Consumer spending, which accounts for 70 percent of the economy, may take time to recover as job losses mount, eroding the growth analysts anticipate will start this quarter.
“We’ve definitely turned the corner but it’s going to be a slow, agonizing recovery,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “We’re just not going to get the job growth that politicians promised and people expect. The consumer doesn’t want to spend a lot.”
The Commerce Department’s report on GDP, the sum of all goods and services produced, is due at 8:30 a.m. in Washington. Survey estimates ranged from a 0.7 percent gain to a decline of 2.9 percent.
A drop would be the fourth in a row, the longest losing streak since quarterly records began in 1947. The contraction so far has been the deepest since 1957-58.
Less Spending
The report may show consumer spending dropped at a 0.5 percent pace, the third decline in the last four quarters, the survey showed.
The economy has lost 6.5 million jobs since the recession began in December 2007, and economists surveyed by Bloomberg this month forecast the jobless rate will exceed 10 percent by early 2010.
“The United States economy has found bottom but will be slow in recovering as unemployment continues to be a drag on consumer spending,” Andrew Liveris, chief executive officer of Midland, Michigan-based Dow, said in a statement yesterday.
Second-quarter profit at Dow and at Peoria, Illinois-based Caterpillar, topped analysts’ estimates. Caterpillar, the world’s largest maker of construction equipment, said last week that stimulus programs in countries such as China were helping stabilize sales.
Slumps Easing
Recent reports showed the housing slump, which helped trigger the financial crisis last year, and the decline in manufacturing have eased. Housing starts rose in June as construction of single-family dwellings jumped by the most since 2004, Commerce reported earlier this month. Industrial production shrank in June at the slowest pace in eight months, according to figures from the Federal Reserve.
Most of the Fed’s 12 regional banks reported a slower pace of economic decline in June and July, the central bank’s regional survey of activity showed this week. Fed Chairman Ben S. Bernanke told Congress last week that there were “tentative signs of stabilization.”
Companies probably cut stockpiles further last quarter, setting the stage for recovery in production.
“With inventory levels in an ultra-lean state, businesses should start adding inventories in the second half of the year as the economy begins to show signs of life,” said Ellen Zentner, senior economist at Bank of Tokyo-Mitsubishi UFJ Ltd.
Automakers
General Motors Co. and Chrysler Group LLC, both out of bankruptcy, are among firms set to ramp up production as government efforts lift demand.
The “cash-for-clunkers” trade-in program begun this month has spurred 16,351 new-vehicle sales so far, the Transportation Department said this week. The plan has given out $68.9 million in subsidies out of the $1 billion set aside.
Economists project the economy will grow at an average 1.5 percent pace from July to December, according to a Bloomberg survey taken in early July. David Weidman, chief executive officer of Dallas-based chemical maker Celanese Corp., is among those seeing an improvement.
“We exited the quarter with increasing optimism,” as rising demand offered “clear signs of economic recovery,” Weidman said in an interview this week.
The Standard & Poor’s 500 Index and Dow Jones Industrial Average are up 12 percent since July 10 on better-than- anticipated earnings at companies from Motorola Inc. to 3M Co.
The country “may be seeing the beginning of the end of the recession,” Obama said this week. Even so, “we know the tough times aren’t over.”
U.S. Economy Probably Shrank at Slower Pace in Second Quarter
Gross domestic product contracted at a 1.5 percent annual rate from April to June after dropping 5.5 percent the prior quarter, according to the median forecast of 78 economists surveyed by Bloomberg News. The report will also include benchmark revisions for prior quarters.
Profits at companies from Caterpillar Inc. to Dow Chemical Co. show the slump is easing as government efforts to revive lending and President Barack Obama’s stimulus take hold. Consumer spending, which accounts for 70 percent of the economy, may take time to recover as job losses mount, eroding the growth analysts anticipate will start this quarter.
“We’ve definitely turned the corner but it’s going to be a slow, agonizing recovery,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “We’re just not going to get the job growth that politicians promised and people expect. The consumer doesn’t want to spend a lot.”
The Commerce Department’s report on GDP, the sum of all goods and services produced, is due at 8:30 a.m. in Washington. Survey estimates ranged from a 0.7 percent gain to a decline of 2.9 percent.
A drop would be the fourth in a row, the longest losing streak since quarterly records began in 1947. The contraction so far has been the deepest since 1957-58.
Less Spending
The report may show consumer spending dropped at a 0.5 percent pace, the third decline in the last four quarters, the survey showed.
The economy has lost 6.5 million jobs since the recession began in December 2007, and economists surveyed by Bloomberg this month forecast the jobless rate will exceed 10 percent by early 2010.
“The United States economy has found bottom but will be slow in recovering as unemployment continues to be a drag on consumer spending,” Andrew Liveris, chief executive officer of Midland, Michigan-based Dow, said in a statement yesterday.
Second-quarter profit at Dow and at Peoria, Illinois-based Caterpillar, topped analysts’ estimates. Caterpillar, the world’s largest maker of construction equipment, said last week that stimulus programs in countries such as China were helping stabilize sales.
Slumps Easing
Recent reports showed the housing slump, which helped trigger the financial crisis last year, and the decline in manufacturing have eased. Housing starts rose in June as construction of single-family dwellings jumped by the most since 2004, Commerce reported earlier this month. Industrial production shrank in June at the slowest pace in eight months, according to figures from the Federal Reserve.
Most of the Fed’s 12 regional banks reported a slower pace of economic decline in June and July, the central bank’s regional survey of activity showed this week. Fed Chairman Ben S. Bernanke told Congress last week that there were “tentative signs of stabilization.”
Companies probably cut stockpiles further last quarter, setting the stage for recovery in production.
“With inventory levels in an ultra-lean state, businesses should start adding inventories in the second half of the year as the economy begins to show signs of life,” said Ellen Zentner, senior economist at Bank of Tokyo-Mitsubishi UFJ Ltd.
Automakers
General Motors Co. and Chrysler Group LLC, both out of bankruptcy, are among firms set to ramp up production as government efforts lift demand.
The “cash-for-clunkers” trade-in program begun this month has spurred 16,351 new-vehicle sales so far, the Transportation Department said this week. The plan has given out $68.9 million in subsidies out of the $1 billion set aside.
Economists project the economy will grow at an average 1.5 percent pace from July to December, according to a Bloomberg survey taken in early July. David Weidman, chief executive officer of Dallas-based chemical maker Celanese Corp., is among those seeing an improvement.
“We exited the quarter with increasing optimism,” as rising demand offered “clear signs of economic recovery,” Weidman said in an interview this week.
The Standard & Poor’s 500 Index and Dow Jones Industrial Average are up 12 percent since July 10 on better-than- anticipated earnings at companies from Motorola Inc. to 3M Co.
The country “may be seeing the beginning of the end of the recession,” Obama said this week. Even so, “we know the tough times aren’t over.”
U.S. Economy Probably Shrank at Slower Pace in Second Quarter
2004-05 to be the new base year for inflation index: FM
Finance Minister Pranab Mukherjee today said the wholesale price index (WPI) series, used to calculate inflation in the country, will have 2004-05 as the base year.
"The WPI series is being upgraded with base year 2004-05 in lieu of the existing one with base year 1993-94," Mukherjee told the Lok Sabha, replying to a queation on price indices.
With the advancement of the base year and probably a revision of commodities in the index and their weights, it is expected that the index would provide a better picture of the current scenario of prices.
"The WPI will now become more representative of today's reality. I believe it will come along with the revision in commodities and weights," rating agency Crisil Principal Economist DK Joshi said.
Though Joshi said the WPI will become a better measure, he doubted if the government would include services in the index and said people will have to continue depending on other indices like the consumer price index.
"The WPI price data collection completely excludes the services sector," Mukherjee said, replying to whether the current system of collecting data for monitoring prices is faulty.
"The WPI series is being upgraded with base year 2004-05 in lieu of the existing one with base year 1993-94," Mukherjee told the Lok Sabha, replying to a queation on price indices.
With the advancement of the base year and probably a revision of commodities in the index and their weights, it is expected that the index would provide a better picture of the current scenario of prices.
"The WPI will now become more representative of today's reality. I believe it will come along with the revision in commodities and weights," rating agency Crisil Principal Economist DK Joshi said.
Though Joshi said the WPI will become a better measure, he doubted if the government would include services in the index and said people will have to continue depending on other indices like the consumer price index.
"The WPI price data collection completely excludes the services sector," Mukherjee said, replying to whether the current system of collecting data for monitoring prices is faulty.
71% of urban India students use PC: Survey
A striking 71% of students in Indian metropolitan areas say they use personal computers, according to a new survey by information technology giant Tata Consultancy Services Ltd.
And 66 % of students in the southern city of Bangalore said they were active on blogging and social networking sites, compared with 39% nationally, the same survey found.
The survey of nearly 14,000 kids studying in English-language schools in 12 major cities in India shows schoolchildren here have embraced technology and the Internet, with Google and Wikipedia overtaking the library as the most trusted source of information.
The survey "confirms that today's students are shifting their academic and social life online and embracing the digital world as true digital natives," said S. Ramadorai, chief executive officer and managing director of Tata Consultancy.
Conducted in 2008 and 2009, the survey is the outgrowth of a quiz show that Tata Consultancy launched a decade ago in English schools across India to create an interest in technology. Through the survey, Tata Consultancy hopes to connect with potential employees by gaining a better understanding of how young people use technology to work, play and think, company officials said.
Rising incomes among India's middle class have meant that more families are likely to own a personal computer.
Among the many significant findings of the survey was the fact that the highest percentage of users of personal computers were in Bangalore and Delhi -- at 77%.
Some 63% of children surveyed said they spent more than an hour each day on the Internet; 41% of school children surveyed chose Google as a source of information, while 46% said they use online sources to access news.
Far fewer children reported using the library. Cochin in Kerala ranked the highest in library usage, at 14%.
Blogging and social networking also appear to be gaining ground. Higher education abroad remains a common goal among students. The U.S. remains the most popular study destination with nearly 40% preferring to study there, the survey found. However, when it comes to their careers, 49% said they would like to stay in India.
Laptops and Ipod players do not appear to have reached many homes, according the survey. Mumbai had the highest laptop penetration, at 38%, compared to the national average of 19%. Tata Consultancy is one of India's largest information technology players, with 48,000 employees in India, 95% of whom are 25 years old or younger.
And 66 % of students in the southern city of Bangalore said they were active on blogging and social networking sites, compared with 39% nationally, the same survey found.
The survey of nearly 14,000 kids studying in English-language schools in 12 major cities in India shows schoolchildren here have embraced technology and the Internet, with Google and Wikipedia overtaking the library as the most trusted source of information.
The survey "confirms that today's students are shifting their academic and social life online and embracing the digital world as true digital natives," said S. Ramadorai, chief executive officer and managing director of Tata Consultancy.
Conducted in 2008 and 2009, the survey is the outgrowth of a quiz show that Tata Consultancy launched a decade ago in English schools across India to create an interest in technology. Through the survey, Tata Consultancy hopes to connect with potential employees by gaining a better understanding of how young people use technology to work, play and think, company officials said.
Rising incomes among India's middle class have meant that more families are likely to own a personal computer.
Among the many significant findings of the survey was the fact that the highest percentage of users of personal computers were in Bangalore and Delhi -- at 77%.
Some 63% of children surveyed said they spent more than an hour each day on the Internet; 41% of school children surveyed chose Google as a source of information, while 46% said they use online sources to access news.
Far fewer children reported using the library. Cochin in Kerala ranked the highest in library usage, at 14%.
Blogging and social networking also appear to be gaining ground. Higher education abroad remains a common goal among students. The U.S. remains the most popular study destination with nearly 40% preferring to study there, the survey found. However, when it comes to their careers, 49% said they would like to stay in India.
Laptops and Ipod players do not appear to have reached many homes, according the survey. Mumbai had the highest laptop penetration, at 38%, compared to the national average of 19%. Tata Consultancy is one of India's largest information technology players, with 48,000 employees in India, 95% of whom are 25 years old or younger.
No scrutiny by SEBI in shares trading of Jai Corp: Govt
The government today said that market regulator Securities and Exchange Board of India (Sebi) has not launched any investigation in the trading of scrips of Jai Corp, which is engaged in the business of developing SEZ, infrastructure and real estate.
"...During the period of last two years, no formal investigation has been initiated by Sebi into the dealing in the shares of Jai Corp as preliminary analysis did not reveal any adverse observations that required further examination," Minister of State for Finance Namo Narain Meena informed the Lower House.
He further said Sebi and the exchanges have put in place surveillance systems to monitor trading activity of listed companies.
During the year 2007-08 and 2008-09, Sebi had completed investigations in 169 and 116 cases, respectively, for various types of irregularities that include market manipulation, price rigging, insider trading and others.
"Sebi remains vigilant at all times to detect any malpractices in the market and wherever warranted, takes actions against the entities violating the provision of Sebi Act, Rules and Regulations," he added.
No scrutiny by Sebi in shares trading of Jai Corp: Govt
"...During the period of last two years, no formal investigation has been initiated by Sebi into the dealing in the shares of Jai Corp as preliminary analysis did not reveal any adverse observations that required further examination," Minister of State for Finance Namo Narain Meena informed the Lower House.
He further said Sebi and the exchanges have put in place surveillance systems to monitor trading activity of listed companies.
During the year 2007-08 and 2008-09, Sebi had completed investigations in 169 and 116 cases, respectively, for various types of irregularities that include market manipulation, price rigging, insider trading and others.
"Sebi remains vigilant at all times to detect any malpractices in the market and wherever warranted, takes actions against the entities violating the provision of Sebi Act, Rules and Regulations," he added.
No scrutiny by Sebi in shares trading of Jai Corp: Govt
Bankers hail addl authentication for card purchases
The Reserve Bank's move to make additional authentication mandatory for credit/debit card online purchases from tomorrow is expected to effectively check card-related frauds, bankers said today.
“This will definitely help in preventing many cash frauds while using credit or debit cards for online purchases. Enhancing the security level is much needed in the face of rising usage of cards for online transactions,” IDBI Bank's Executive Director Sushil Muhnot told PTI here.
As per the RBI guidelines, customers will have to register their cards from tomorrow with the respective merchants- Visa or Master Card and create a security password.
When making online purchases, the cardholder will have to use this second verification in addition to the Card Verification Value Number (CVV), which is the main safety
parameter used currently.
A senior State Bank of India (SBI) official said, although, the implementation of the new method may create some technology challenges to banks, the move will enhance customer confidence to go for online purchases.
“There may be some challenges in the initial stage to implement the new method as banks have to be ready with the software required to identify the second authentication or password while making transactions," the official said.(MORE)
However, the Reserve Bank's decision to step up security for card shopping will significantly help to reduce the misuse of cards, he said.
“At present, the CVV number, date of birth and the expiry date on the cards are used to ensure secured purchases. This is not sufficient in the present context where fraudsters
find new ways to misuse the cards,” a senior official with a leading private sector bank said.
The apex bank decided to introduce a second level of security for online transactions using credit/debit cards in the backdrop of escalating number of credit card frauds across the country.
“This will definitely help in preventing many cash frauds while using credit or debit cards for online purchases. Enhancing the security level is much needed in the face of rising usage of cards for online transactions,” IDBI Bank's Executive Director Sushil Muhnot told PTI here.
As per the RBI guidelines, customers will have to register their cards from tomorrow with the respective merchants- Visa or Master Card and create a security password.
When making online purchases, the cardholder will have to use this second verification in addition to the Card Verification Value Number (CVV), which is the main safety
parameter used currently.
A senior State Bank of India (SBI) official said, although, the implementation of the new method may create some technology challenges to banks, the move will enhance customer confidence to go for online purchases.
“There may be some challenges in the initial stage to implement the new method as banks have to be ready with the software required to identify the second authentication or password while making transactions," the official said.(MORE)
However, the Reserve Bank's decision to step up security for card shopping will significantly help to reduce the misuse of cards, he said.
“At present, the CVV number, date of birth and the expiry date on the cards are used to ensure secured purchases. This is not sufficient in the present context where fraudsters
find new ways to misuse the cards,” a senior official with a leading private sector bank said.
The apex bank decided to introduce a second level of security for online transactions using credit/debit cards in the backdrop of escalating number of credit card frauds across the country.
Parsvnath to raise up to Rs 750 cr via QIP
Realty major Parsvnath Developers plans to raise Rs 500-750 crore through private placements of shares within two weeks for reducing its debt and completion of the ongoing projects.
In the first phase, the company is likely to raise $100-150 million (Rs 500-750 crore) through qualified institutional placements (QIPs), sources said, adding that the QIP is likely to be launched in the next two weeks.
"The company is planning to issue fresh shares for the QIP. Post-issue, the promoters stake will come down by 15-20 per cent," a source said.
Earlier, the Parsvnath board of directors had approved raising of up to Rs 2,500 crore through various instruments, including issue of further securities to persons other than the existing equity shareholders of the company and also by way of QIP to qualified institutional buyers.
When contacted, Parsvnath Chairman Pradeep Jain said: "We are planning to raise 100-150 million dollars in the coming days depending on the market conditions."
About 65 per cent of the funds raised would be utilised to cut the company's debt, which currently stands at about Rs 1,600 crore, and rest for completing the existing projects, sources said.
Parsvnath is aiming at reducing its debt to about Rs 600-700 crore by the end of this fiscal.
The company has a land bank of about 193 million sq ft, of which 80 million sq ft is under construction.
Parsvnath, which has presence across 50 cities and 17 states, is operating in all the verticals of real estate that includes housing, retail, offices, SEZs, hotels, IT Parks and integrated townships.
In the last few months, many real estate firms, which are facing a huge slowdown in demand for their properties since the last one year, have raised funds through QIPs.
In the first phase, the company is likely to raise $100-150 million (Rs 500-750 crore) through qualified institutional placements (QIPs), sources said, adding that the QIP is likely to be launched in the next two weeks.
"The company is planning to issue fresh shares for the QIP. Post-issue, the promoters stake will come down by 15-20 per cent," a source said.
Earlier, the Parsvnath board of directors had approved raising of up to Rs 2,500 crore through various instruments, including issue of further securities to persons other than the existing equity shareholders of the company and also by way of QIP to qualified institutional buyers.
When contacted, Parsvnath Chairman Pradeep Jain said: "We are planning to raise 100-150 million dollars in the coming days depending on the market conditions."
About 65 per cent of the funds raised would be utilised to cut the company's debt, which currently stands at about Rs 1,600 crore, and rest for completing the existing projects, sources said.
Parsvnath is aiming at reducing its debt to about Rs 600-700 crore by the end of this fiscal.
The company has a land bank of about 193 million sq ft, of which 80 million sq ft is under construction.
Parsvnath, which has presence across 50 cities and 17 states, is operating in all the verticals of real estate that includes housing, retail, offices, SEZs, hotels, IT Parks and integrated townships.
In the last few months, many real estate firms, which are facing a huge slowdown in demand for their properties since the last one year, have raised funds through QIPs.
Software sector targets $54 bn exports in FY10
Slowdown hit, India's software exporters are exploring new markets in the middle east and Africa to increase IT exports by 10 per cent and touch $54 billion in the current fiscal.
IT software exports were valued at $49.5 billion in 2008-09, which was about 14 per cent more than that in 2007-08.
"We are not expecting much growth in exports in 2009-10 due to the global slowdown," Electronics and Computer Software Export Promotion Council (ESC) Executive Director D K Sareen said. The ESC, however, has set a higher target for growth in electronics hardware exports, he added.
The council has set a target to earn $4.5 billion from electronics hardware export in the current fiscal which is about 15 per cent more than the shipments of $3.9 billion in 2008-09.
With most of the country's main markets like the US and EU reeling under the impact of demand slowdown, the ESC is encouraging the industry to explore Middle East, Latin America, South African region and Japan to increase exports.
India will be showcasing its strength in IT hardware, software and services and telecom sectors at GITEX, an IT exhibition in Dubai. India had exported electronics hardware and software worth $980 million to Middle East countries in 2007-08.
IT software exports were valued at $49.5 billion in 2008-09, which was about 14 per cent more than that in 2007-08.
"We are not expecting much growth in exports in 2009-10 due to the global slowdown," Electronics and Computer Software Export Promotion Council (ESC) Executive Director D K Sareen said. The ESC, however, has set a higher target for growth in electronics hardware exports, he added.
The council has set a target to earn $4.5 billion from electronics hardware export in the current fiscal which is about 15 per cent more than the shipments of $3.9 billion in 2008-09.
With most of the country's main markets like the US and EU reeling under the impact of demand slowdown, the ESC is encouraging the industry to explore Middle East, Latin America, South African region and Japan to increase exports.
India will be showcasing its strength in IT hardware, software and services and telecom sectors at GITEX, an IT exhibition in Dubai. India had exported electronics hardware and software worth $980 million to Middle East countries in 2007-08.
Hindalco Q1 net falls 31% at Rs 480 cr, beats estimates
Hindalco Industries Ltd (HALC.BO), India's top aluminium maker, on Friday reported a smaller-than expected 31 percent fall in quarterly standalone net profit, helped by weakening raw material prices and better product mix.
Hindalco, which bought Canada's Novelis in 2007, reported net profit of 4.81 billion rupees ($100 million) in the April-June quarter, compared with 6.97 billion rupees a year earlier.
Net sales fell to 38.99 billion rupees from 46.48 billion.
A Reuters poll of nine brokerages forecast net profit of 3.09 billion rupees for the quarter, on net sales of 38.52 billion.
Last year, aluminium prices fell as the global economic slowdown hit demand for raw materials such as aluminium, used in automotive and construction industry. ($1=48.3 rupees)
Hindalco, which bought Canada's Novelis in 2007, reported net profit of 4.81 billion rupees ($100 million) in the April-June quarter, compared with 6.97 billion rupees a year earlier.
Net sales fell to 38.99 billion rupees from 46.48 billion.
A Reuters poll of nine brokerages forecast net profit of 3.09 billion rupees for the quarter, on net sales of 38.52 billion.
Last year, aluminium prices fell as the global economic slowdown hit demand for raw materials such as aluminium, used in automotive and construction industry. ($1=48.3 rupees)
R-Comm Q1 net up 12.5% to Rs 1,636.61 cr
Reliance Communications has announced its Q1FY10 numbers. Its net profit increased 12.54% to Rs 1,636.61 crore from Rs 1,454.31 crore (QoQ).
Key Takeaways from Reliance Communications' concall:
Reliance Communications Q1 net profit increased 12.54% to Rs 1,636.61 crore from Rs 1,454.31 crore (QoQ).
Rel Comm adds 18.3 mn subscribers in last 6 months
Key Takeaways from Reliance Communications' concall:
Reliance Communications Q1 net profit increased 12.54% to Rs 1,636.61 crore from Rs 1,454.31 crore (QoQ).
Rel Comm adds 18.3 mn subscribers in last 6 months
Adani Power IPO oversubscribed 21.5 times
Adani Power IPO subscription at 21.51 times
The Initial Public Offering (IPO) of Adani Power Limited which hit the primary markets on July 28, 2009 has received overwhelming response from investors. The issue has received subscription of 21.51 times till 5:00 PM on July 31, 2009. The issue has received bids for 5351653580 equity shares against the offer of 248794681 equity shares. The issue has received bids for 213067075 equity shares at cut-off price.
The issue has received subscription of 15.02 times in NSE with bids for 3737896890 equity shares against the offer of 248794681 equity shares. The issue has received subscription of 156456950 shares at cut-off price.
In BSE, the issue has received subscription of 656.91% with bids for 1634351940 equity shares against the offer of 248794681 equity shares.
The company has come out with IPO of 301,652,031 EQUITY SHARES [including 52,857,366 Equity Shares Anchor investor portion] of Rs 10 each for cash at a price band of Rs. 90 To Rs. 100 through 100% book-building process.
The IPO closed Yesterday- July 31, 2009.
The rating agency ICRA Limited has assigned IPO Grade 3 for the issue.
The Initial Public Offering (IPO) of Adani Power Limited which hit the primary markets on July 28, 2009 has received overwhelming response from investors. The issue has received subscription of 21.51 times till 5:00 PM on July 31, 2009. The issue has received bids for 5351653580 equity shares against the offer of 248794681 equity shares. The issue has received bids for 213067075 equity shares at cut-off price.
The issue has received subscription of 15.02 times in NSE with bids for 3737896890 equity shares against the offer of 248794681 equity shares. The issue has received subscription of 156456950 shares at cut-off price.
In BSE, the issue has received subscription of 656.91% with bids for 1634351940 equity shares against the offer of 248794681 equity shares.
The company has come out with IPO of 301,652,031 EQUITY SHARES [including 52,857,366 Equity Shares Anchor investor portion] of Rs 10 each for cash at a price band of Rs. 90 To Rs. 100 through 100% book-building process.
The IPO closed Yesterday- July 31, 2009.
The rating agency ICRA Limited has assigned IPO Grade 3 for the issue.
We will be a 9,500mw company by 2013: NHPC
NHPC IPO: $1.2bn proceeds to fund 11 projects
It will be the first public sector enterprise to tap the capital markets this year. National Hydroelectric Power Corporation (NHPC) has kicked off its road shows, as it looks to raise up to Rs 6,000 crore. Katya Naidu and Vidhi Godiawala report.
For the first time in its 34-year history, NHPC has 11 projects under construction. At the same time, it is looking at a USD 1.2 billion IPO to fund it. The company wants to double its capacity over four years.
SK Garg, CMD, NHPC, said, "By 2012, we will be commissioning almost 2,300 MW. Two projects will come in the first year of the 12th Plan, which will add another 2,000 MW. By 2013, our company will be something like 9,500 MW company."
The IPO is expected to raise Rs 6,000 crore at the higher end of the price band. Of this Rs 6,000 crore, around Rs 4,000 crore will accrue to the company, Rs 2,000 crore will go to the government for its 5% stake it is divesting.
At Rs 30-36 per share, the IPO is aggressively priced. Bankers hope the uptick in market sentiment and the government's credibility will make it a good bargain.
Vallabh Bhansali, Chairman, Enam Securities, said, "It is a unique company. It is in hydro power, it is a large company, financially very good, and not leveraged like other power companies. A lot of factors have gone into valuing this company."
Falguni Nayar, MD - Institutional Equities, Kotak Mahindra Bank, said, "We are hoping for a positive response because market is improving and investor appetite is improving."
S Vishwanathan, MD, SBICAPS, said, "This issue will be a forerunner for many more issues to come."
NHPC hopes its IPO will see the same strong subscription rush seen by Adani Power's IPO earlier this week, when it was subscribed 4 times on the very first day. Experts point out that NHPC's expansion is not the only thing that hangs in the balance. This IPO could well set the pace for future divestments as well.
It will be the first public sector enterprise to tap the capital markets this year. National Hydroelectric Power Corporation (NHPC) has kicked off its road shows, as it looks to raise up to Rs 6,000 crore. Katya Naidu and Vidhi Godiawala report.
For the first time in its 34-year history, NHPC has 11 projects under construction. At the same time, it is looking at a USD 1.2 billion IPO to fund it. The company wants to double its capacity over four years.
SK Garg, CMD, NHPC, said, "By 2012, we will be commissioning almost 2,300 MW. Two projects will come in the first year of the 12th Plan, which will add another 2,000 MW. By 2013, our company will be something like 9,500 MW company."
The IPO is expected to raise Rs 6,000 crore at the higher end of the price band. Of this Rs 6,000 crore, around Rs 4,000 crore will accrue to the company, Rs 2,000 crore will go to the government for its 5% stake it is divesting.
At Rs 30-36 per share, the IPO is aggressively priced. Bankers hope the uptick in market sentiment and the government's credibility will make it a good bargain.
Vallabh Bhansali, Chairman, Enam Securities, said, "It is a unique company. It is in hydro power, it is a large company, financially very good, and not leveraged like other power companies. A lot of factors have gone into valuing this company."
Falguni Nayar, MD - Institutional Equities, Kotak Mahindra Bank, said, "We are hoping for a positive response because market is improving and investor appetite is improving."
S Vishwanathan, MD, SBICAPS, said, "This issue will be a forerunner for many more issues to come."
NHPC hopes its IPO will see the same strong subscription rush seen by Adani Power's IPO earlier this week, when it was subscribed 4 times on the very first day. Experts point out that NHPC's expansion is not the only thing that hangs in the balance. This IPO could well set the pace for future divestments as well.
Telenor stake hike in Unitech's arm awaits govt's nod
Govt awaits interior min nod to clear Telenor deal
India's finance ministry is waiting for comments from the home ministry before deciding whether to approve an increased investment by Norway's Telenor in local telecom carrier Unitech Wireless, a minister said on Friday.
Telenor has a 49 percent stake in Unitech Wireless, the telecoms arm of Unitech Ltd, and has an agreement to lift that to 67.25 percent, which would bring its total investment to 61.2 billion rupees ($1.3 billion).
Under India's foreign investment rules, telecoms firms can sell up to a 49 percent stake to foreigners under an "automatic" route but need clearance from the Foreign Investment Promotion Board (FIPB), an arm of the finance ministry, to go above that level.
Foreign ownership in telecoms firms is capped at 74 percent.
Earlier, the FIPB had deferred its decision on Unitech Wireless' proposal to increase foreign holdings in the company to up to 74 percent, without giving any reason.
"The proposal was deferred for want of comments from ministry of home affairs," Junior Finance Minister Namo Narain Meena said on Friday in a written reply to a question in the Parliament, without elaborating.
A spokesman for Unitech Wireless declined comment when asked why the company was seeking approval to increase foreign holdings to up to 74 percent, but said there was no change in Telenor's proposed stake buy of a total 67.25 percent.
The Economic Times reported on Thursday that the government was set to give security clearance to Telenor on condition that none of the staff who have worked in the company's Pakistan operations are employed in India.
Indian media reports have cited Telenor's operations in Pakistan as raising security concerns for Indian authorities.
(US$=48.17 rupees)
India's finance ministry is waiting for comments from the home ministry before deciding whether to approve an increased investment by Norway's Telenor in local telecom carrier Unitech Wireless, a minister said on Friday.
Telenor has a 49 percent stake in Unitech Wireless, the telecoms arm of Unitech Ltd, and has an agreement to lift that to 67.25 percent, which would bring its total investment to 61.2 billion rupees ($1.3 billion).
Under India's foreign investment rules, telecoms firms can sell up to a 49 percent stake to foreigners under an "automatic" route but need clearance from the Foreign Investment Promotion Board (FIPB), an arm of the finance ministry, to go above that level.
Foreign ownership in telecoms firms is capped at 74 percent.
Earlier, the FIPB had deferred its decision on Unitech Wireless' proposal to increase foreign holdings in the company to up to 74 percent, without giving any reason.
"The proposal was deferred for want of comments from ministry of home affairs," Junior Finance Minister Namo Narain Meena said on Friday in a written reply to a question in the Parliament, without elaborating.
A spokesman for Unitech Wireless declined comment when asked why the company was seeking approval to increase foreign holdings to up to 74 percent, but said there was no change in Telenor's proposed stake buy of a total 67.25 percent.
The Economic Times reported on Thursday that the government was set to give security clearance to Telenor on condition that none of the staff who have worked in the company's Pakistan operations are employed in India.
Indian media reports have cited Telenor's operations in Pakistan as raising security concerns for Indian authorities.
(US$=48.17 rupees)
Govt moves bill to up LIC's equity, dividend payout
The federal government on Friday moved a bill in parliament to raise the capital base of state-run Life Insurance Corp and enable it to pay up to 10 percent dividend to the government.
The LIC (amendment) Bill, introduced by Finance Minister Pranab Mukherjee in the lower house of parliament, proposes to raise the paid-up capital of the insurer to 1 billion rupees or more from the present 50 million rupees.
The bill also said the insurer could get sovereign guarantee for its products to the extent needed.
LIC can allocate 90 percent or more of its surplus to policy holders or keep it in a separate account, it said, adding the remaining could be paid to the government as dividend.
Earlier, junior finance minister Namo Narain Meena said the total premium income of market leader LIC grew 4.45 percent to 1.56 trillion rupees in FY09, lower than the 17.19 percent expansion seen in 2007/08.
The overall premium income of all the life insurers stood at 2.24 trillion rupees at the end of FY09, compared with 2.01 trillion rupees in the previous year, he added.
The LIC (amendment) Bill, introduced by Finance Minister Pranab Mukherjee in the lower house of parliament, proposes to raise the paid-up capital of the insurer to 1 billion rupees or more from the present 50 million rupees.
The bill also said the insurer could get sovereign guarantee for its products to the extent needed.
LIC can allocate 90 percent or more of its surplus to policy holders or keep it in a separate account, it said, adding the remaining could be paid to the government as dividend.
Earlier, junior finance minister Namo Narain Meena said the total premium income of market leader LIC grew 4.45 percent to 1.56 trillion rupees in FY09, lower than the 17.19 percent expansion seen in 2007/08.
The overall premium income of all the life insurers stood at 2.24 trillion rupees at the end of FY09, compared with 2.01 trillion rupees in the previous year, he added.
ABG Shipyard confirms 8% stake in Great Offshore
Open offer price for Great Offshore may go to Rs 500/sh
ABG Shipyard increased its stake in Great Offshore to 8% and revised open offer price to Rs 450 per share. However Bharati Shipyard had an upper hand, as it held 20% stake in Great Offshore. The price revision could be as high as Rs 500 per share from Bharati Shipyard to counter the current open offer price.
ABG Shipyard increased its stake in Great Offshore to 8% and revised open offer price to Rs 450 per share. However Bharati Shipyard had an upper hand, as it held 20% stake in Great Offshore. The price revision could be as high as Rs 500 per share from Bharati Shipyard to counter the current open offer price.
Subhiksha CDR misses July 31 deadline
Subhiksha Corporate Debt Restructuring (CDR) misses July 31 deadline. The reason being the report is not ready yet.
Banks provide for most of Rs 850 cr loans this quarter. Banks are likely to extend CDR by another month. Banks have asked Subhiksha promoters to bring Rs 250 cr.
ICICI Bank, HDFC Bank, BOB are BOI are some of these bankers.
Subhiksha owes Rs 181.50 crore to ICICI Bank, Rs 149.89 crore to HDFC Bank, Rs 75 crore to Bank of Baroda, Rs 50 crore to Bank of India, Rs 50 crore to Federal Bank and another Rs 50 crore to Yes Bank.
Banks provide for most of Rs 850 cr loans this quarter. Banks are likely to extend CDR by another month. Banks have asked Subhiksha promoters to bring Rs 250 cr.
ICICI Bank, HDFC Bank, BOB are BOI are some of these bankers.
Subhiksha owes Rs 181.50 crore to ICICI Bank, Rs 149.89 crore to HDFC Bank, Rs 75 crore to Bank of Baroda, Rs 50 crore to Bank of India, Rs 50 crore to Federal Bank and another Rs 50 crore to Yes Bank.
Essar Oil picks 50% stake in Kenya-based refinery
Ruias-owned Essar Oil today announced acquisition of 50 per cent stake in a 4 million tonnes oil refinery in Kenya.
The company acquired 50 per cent stake of western energy majors Shell BP and Chevron in Kenya Petroleum Refineries Ltd, Essar said in a press release.
The company, however, did not give the acquisition price.
The acquisition was done through Essar Energy Overseas Ltd. The Government of Kenya holds the remaining 50 per cent stake in the company.
KPRL is a 4 million metric tonne (MMTPA) per annum refinery in Mombasa, Kenya.
"This acquisition marks Essars foray in overseas refining market and is a step towards realising its vision of a global refining capacity of 1 million barrels per day," the release said.
Essar Oil operates a 2,80,000 bpd refinery at Vadinar in Gujarat.
The company acquired 50 per cent stake of western energy majors Shell BP and Chevron in Kenya Petroleum Refineries Ltd, Essar said in a press release.
The company, however, did not give the acquisition price.
The acquisition was done through Essar Energy Overseas Ltd. The Government of Kenya holds the remaining 50 per cent stake in the company.
KPRL is a 4 million metric tonne (MMTPA) per annum refinery in Mombasa, Kenya.
"This acquisition marks Essars foray in overseas refining market and is a step towards realising its vision of a global refining capacity of 1 million barrels per day," the release said.
Essar Oil operates a 2,80,000 bpd refinery at Vadinar in Gujarat.
Off-Budget expenditure doubles at Rs 97,019 cr
The off-budget expenditure incurred by the government has almost doubled since 2006-07 to Rs 97,019 crore in 2008-09, Parliament was informed today.
Off-budget expenditure, which includes subsidies on oil, fertiliser and food, stood at 1.79 per cent of GDP in the last fiscal, Minister of State for Finance Namo Narain Meena told the Lok Sabha in a written reply.
Meena said the off-budget expenditure was Rs 40,361 crore in 2006-07, 0.98 per cent of GDP, and subsequently increased to Rs 97,019 crore the last fiscal.
To another query, Meena said the Indian economy will grow around 7 per cent this fiscal.
For maintaining the growth momentum, the government has taken a slew of measures like providing fiscal stimulus packages and stimulating investment in infrastructure, Meena said.
The government has also increased the budgetary allocation for 2009-10 plan and non-plan expenditure by 34 per cent and 37 per cent, respectively, over the Budget estimates of last fiscal.
Off-budget expenditure, which includes subsidies on oil, fertiliser and food, stood at 1.79 per cent of GDP in the last fiscal, Minister of State for Finance Namo Narain Meena told the Lok Sabha in a written reply.
Meena said the off-budget expenditure was Rs 40,361 crore in 2006-07, 0.98 per cent of GDP, and subsequently increased to Rs 97,019 crore the last fiscal.
To another query, Meena said the Indian economy will grow around 7 per cent this fiscal.
For maintaining the growth momentum, the government has taken a slew of measures like providing fiscal stimulus packages and stimulating investment in infrastructure, Meena said.
The government has also increased the budgetary allocation for 2009-10 plan and non-plan expenditure by 34 per cent and 37 per cent, respectively, over the Budget estimates of last fiscal.
ATF prices up by Rs 620/kl w.e.f. midnight
State-run oil firms today increased jet fuel prices marginally by 1.6 per cent on the back of rising international oil rates.
Aviation turbine fuel rates in Delhi were increased by Rs 585 per kilolitre to Rs 36,923 per kl, effective midnight tonight, an official of Indian Oil Corporation (IOC) said.
The increase follows a sharp 5.7 per cent cut in jet fuel prices two weeks ago.
Indian Oil, Bharat Petroleum and Hindustan Petroleum had in the past two months raised ATF rates four times on firming international oil prices. Jet fuel rates were Rs 31,614.51 per kl on May 1 and in four turns they were raised to Rs 38,557.56 per kl by July 1.
The rate was lowered to Rs 36,338 per kl on July 16.
In Mumbai, home to the nation's busiest airport, the rate will be increased to Rs 38,098 per kl from Rs 37,475 per kl.
The increase in ATF price, which constitutes 40 per cent of airlines' operating cost, will add to the margin pressures of the cash-strapped domestic carriers.
Jet fuel in Kolkata will be dearer by Rs 649 per kl at Rs 45,060, while in Chennai the price has been increased to Rs 40,789 per kl from Rs 40,164 per kl.
Aviation turbine fuel rates in Delhi were increased by Rs 585 per kilolitre to Rs 36,923 per kl, effective midnight tonight, an official of Indian Oil Corporation (IOC) said.
The increase follows a sharp 5.7 per cent cut in jet fuel prices two weeks ago.
Indian Oil, Bharat Petroleum and Hindustan Petroleum had in the past two months raised ATF rates four times on firming international oil prices. Jet fuel rates were Rs 31,614.51 per kl on May 1 and in four turns they were raised to Rs 38,557.56 per kl by July 1.
The rate was lowered to Rs 36,338 per kl on July 16.
In Mumbai, home to the nation's busiest airport, the rate will be increased to Rs 38,098 per kl from Rs 37,475 per kl.
The increase in ATF price, which constitutes 40 per cent of airlines' operating cost, will add to the margin pressures of the cash-strapped domestic carriers.
Jet fuel in Kolkata will be dearer by Rs 649 per kl at Rs 45,060, while in Chennai the price has been increased to Rs 40,789 per kl from Rs 40,164 per kl.
RBI MAY REVIEW EASY MONEY POLICY
RBI for rollback of monetary expansion to check inflation
The RBI governor, D Subbarao, today made a strong case for a rollback of the expansionary monetary policy being pursued to combat the impact of the global financial meltdown, saying it could result in another bout of inflationary pressure.
"Creation of high power money in the face of large fiscal
deficit...is not costless; it can sow the seeds of the next
inflationary cycle," Subbaro said, delivering the JRD Tata
Memorial lecture organised by the industry body Assocham here.
RBI had made available a potential liquidity of Rs
5.60 lakh crore, nearly 9 per cent of Gross Domestic Product
(GDP), to help the country tide over the liquidity crisis
following the global financial meltdown triggered by the
collapse of America's iconic investment banker Lehman Brothers in mid-September.
Noting that RBI would continue to pursue an accommodative monetary policy until the economic conditions improve, he said, "reversing the expansionary policies is definitely on the agenda (of the central bank).
"The current monetary and fiscal stance is, however,
not the steady state. The Reserve Bank needs to roll back the special monetary accommodation", he stressed
The RBI, Subbarao said, will roll back the easy monetary
policy after the government shows credible commitment to
fiscal responsibility and the economy manifests more definite signs of recovery.
The challenge for the central bank is to simultaneously
maintain a comfortable liquidity situation and anchor
inflationary expectations, he said.
Inflation, which has been in the negative zone since
June, fell to (-)1.54 per cent for the week ended July 18 even as prices of essential food items like cereals, pulses, fruit and vegetables rose.
The Governor said the RBI's objective is to
simultaneously maintain price stability, financial stability
and growth but it cannot do much to tame a supply driven
inflation except as a line of defence in extreme situation.
Noting that the government borrowing programme has
increased substantially, the Governor said it militates
against the low interest regime.
"Government borrowing had resulted in firming up of
yields, notwithstanding the substantial excess liquidty,
militating against the low interest rate regime that we want," Subbaro said.
The RBI governor, D Subbarao, today made a strong case for a rollback of the expansionary monetary policy being pursued to combat the impact of the global financial meltdown, saying it could result in another bout of inflationary pressure.
"Creation of high power money in the face of large fiscal
deficit...is not costless; it can sow the seeds of the next
inflationary cycle," Subbaro said, delivering the JRD Tata
Memorial lecture organised by the industry body Assocham here.
RBI had made available a potential liquidity of Rs
5.60 lakh crore, nearly 9 per cent of Gross Domestic Product
(GDP), to help the country tide over the liquidity crisis
following the global financial meltdown triggered by the
collapse of America's iconic investment banker Lehman Brothers in mid-September.
Noting that RBI would continue to pursue an accommodative monetary policy until the economic conditions improve, he said, "reversing the expansionary policies is definitely on the agenda (of the central bank).
"The current monetary and fiscal stance is, however,
not the steady state. The Reserve Bank needs to roll back the special monetary accommodation", he stressed
The RBI, Subbarao said, will roll back the easy monetary
policy after the government shows credible commitment to
fiscal responsibility and the economy manifests more definite signs of recovery.
The challenge for the central bank is to simultaneously
maintain a comfortable liquidity situation and anchor
inflationary expectations, he said.
Inflation, which has been in the negative zone since
June, fell to (-)1.54 per cent for the week ended July 18 even as prices of essential food items like cereals, pulses, fruit and vegetables rose.
The Governor said the RBI's objective is to
simultaneously maintain price stability, financial stability
and growth but it cannot do much to tame a supply driven
inflation except as a line of defence in extreme situation.
Noting that the government borrowing programme has
increased substantially, the Governor said it militates
against the low interest regime.
"Government borrowing had resulted in firming up of
yields, notwithstanding the substantial excess liquidty,
militating against the low interest rate regime that we want," Subbaro said.
SENSEX CLOSES AT 2009 HIGH; UP 282 POINTS
Buoyed by good corporate results, Sensex touched its 2009 high, closing 1.8% up at 15670. Nifty closed at 4636, up 65 months.
The Sensex witnessed huge buying interest on the first day of the August series and closed July month on a strong note, up 8% during the month. It closed at 13-month high on the back of strong earnings and global cues. The Nifty closed above the 4600 level. The upsurge in shares of oil & gas exploration, banking, FMCG, capital goods, metal and select pharma companies supported the markets throughout the session.
The indices saw some blip around 14:15 hours IST due to realty stocks, Bharti Airtel, TCS, Reliance Communication, Hero Honda, SAIL, BPCL and Unitech. But in the last one hour of the trade, they gained more strength again. The 30-share BSE Sensex surged 282.35 points or 1.83%, to settle at 15,670.31, after seeing an intraday high of 15,732.81. Its previous closing high in the last 13 months was at 15,503.92
The 50-share NSE Nifty shut shop at 4636.45, up 1.42% or 65 points over previous close, after seeing a day's high of 4669.75.
Both the indices gained 8% each for the month and up 1.5-1.9% for the week. The BSE Auto, Realty, FMCG and IT were the strong sectors this month, their indices were up 25%, 22%, 21% and 20%, respectively. The Nifty August futures closed with 17 points premium (provisional figures).
ONGC and SBI were the star performers of the day, both surged 5-6% on the back of institutional buying. Deven Choksey of KR Choksey Securities said the market looked little bit promising and some of the heavyweights started taking up the positions in the market and that included Oil & Natural Gas Corporation (ONGC). "Some of the long only foreign institutional investors (FII) funds, who have started acting into the market, have started allotting funds to some of these large size market companies where the growth is now looking little bit more certain. That is where we are seeing the kind of buying also emerging from that side," he said.
SBI Q1 numbers were good on Thursday posted 42% jump in net profit. He added, "We are expecting that the market having gone up to 4,660 on the Nifty, probably may make some small correction. But thereafter probably it would go up because of higher allocation of funds and largely towards some of the heavyweight counters including those of banks like State Bank of India. So from that perspective, we are seeing the kind of buying continuing in coming days. Maybe we should be having some kind of profit booking in the beginning of the next week but thereafter one should see an upside continuing in the market."
Hindalco Industries surged 6.65% as the company's bottomline numbers were above the estimates though it was down 31% at Rs 480 crore versus Rs 696.8 crore, YoY. The markets expected around Rs 226 crore.
Adani Power initial public offering (IPO) witnessed huge investors' interest and was subscribed 21.59 times. The issue received bids for more than 537 crore shares as against the issue size of 30,16,52,031 shares. Its founder company, Adani Enterprises was up 0.33%.
The BSE FMCG Index outperformed other indices, surged 3%, as Nestle, United Spirits, HUL, Tata Tea, Britannia (Q1 net was up 17% and sales up 5%), ITC, Godrej Consumer and Ruchi Soya were up 2.5-6.4%.
The Oil & Gas Index went up 2.65% led by exploration companies. ONGC shot up 5.91% Aban Offshore, Essar Oil, Reliance Industries and Reliance Petroleum were up 2.5-4.5%. Cairn India was up 1.33%. Crude was up over 5% on Thursday. However, BPCL, HPCL, IOC and GAIL fell 1-3%.
Bankex was up 1.9% led by SBI, which rose over 5%. Kotak Mahindra, HDFC Bank, Bank of Baroda and Canara Bank were up 2-4%. ICICI Bank was up 0.5%.
In the technology space, Patni Computer surged another 10%, after seeing over 10% rally on Thursday (the company posted strong numbers for the quarter). Infosys rose 2.66% and Wipro up 0.43%. However, HCL Tech went down 1.7% and TCS fell 0.68%.
Metal stocks like Hindalco surged 6.65%. Sesa Goa, Sterlite Industries, Jindal Saw, Hindustan Zinc, Tata Steel and JSW Steel were up 1-3.8%. However, Jindal Steel fell 2.72%.
In the auto space, Bharat Forge jumped 10.27% and Tata Motors was up 6.61%. Maruti Suzuki, Apollo Tyres, M&M and Bajaj Auto went up 0.5-1%. However, Hero Honda was up 2.08%.
In the capital goods space, ABB, Punj Lloyd, Siemens, BHEL and L&T went up 1-1.7%.
Telecom stocks like Idea Cellular surged 4.23%. However, Bharti Airtel lost 3.06%. Today was the last day for Bharti-MTN talks and sources said that they could extend date for talks further. Reliance Communication slipped 2.11%.
In the power pack, Neyveli Lignite was up 5% and Reliance Infrastructure rose 1.69%. Tata Power, Torrent Power and Suzlon Energy gained 0.5% each. However, Lanco Infratech lost 2.84%. GVK Power, GMR Infra, NTPC, Power Grid Corp and Reliance Power slipped 0.5-1%.
Pharma stocks like Ranbaxy Labs, Sun Pharma, Biocon, Apollo Hospital and Glenmark went up 1-2.5%. However, Wockhardt lost 4.42%. Cipla, Dr Reddys Labs and Matrix Lab were down 0.5-1.3%.
However, realty stocks lost the ground today. Omaxe, Ackruti City, Unitech, Orbit Corporation, DLF and Indiabulls Real declined 1.4-3.5%.
Volumes were lower; total traded turnover stood at Rs 83,315.90 crore. This included Rs 19,894.54 crore from the NSE cash segment, Rs 57,151.46 crore from the NSE F&O segment and the balance Rs 6,269.90 crore from the BSE cash segment.
Among the broader indices, the BSE Midcap Index was up 1% and Smallcap Index was flat. About 1,452 shares advanced while 1,356 shares declined on the BSE. Nearly 363 shares remained unchanged.
Global cues:
At the time of closing of Indian equities, European markets and US futures were flat in trade.
Asian markets ended higher. Shanghai surged 2.7%. Hang Seng, Nikkei and Kospi were up 1.5-1.9%. Straits Times and Taiwan Weighted rose 0.7-0.9%.
Nifty holds 4600; oil exploration, banks, FMCG gain
At 15:07 hours IST - the Nifty gave up 1/2 of gains and was still holding above 4600 level. Heavyweights ONGC and SBI were up over 5%. Leading counters like Reliance Industries, HUL, Infosys, ITC, HDFC, HDFC Bank, Sterlite, BHEL, Tata Motors, Nalco, Idea, Tata Steel, Ambuja Cements, Hindalco and Maruti were trading higher.
However, heavyweight Bharti Airtel plunged over 4%; today is the last day of Bharti-MTN talks and sources believe that the company may extend further. Shares of power, realty and oil marketing companies were also under pressure.
The Nifty rose 48 points, to 4,620 and the Sensex gained 212 points at 15,600. About 1430 shares advanced while 1376 shares declined on the BSE. Nearly 365 shares were unchanged.
Sensex trades strong despite selling at higher levels
At 14:23 hours IST - the Sensex continued its uptrend on the back of buying in heavyweights, despite selling pressure at higher levels. Shares of oil & gas exploration, banking, FMCG, capital goods and select metal stocks were witnessing buying interest. Infosys, Tata Motors, HDFC, Idea Cellular, Reliance Capital, Sun Pharma, Reliance Infrastructure, Ambuja Cements, Maruti, Ranbaxy and Suzlon Energy were other gainers.
Hindalco and Nalco surged 2.5% and 4.8%, respectively, ahead of their Q1FY10 numbers.
However, on the losing side, heavyweight Bharti Airtel tumbled over 3.5%. Jindal Steel tanked 4%. TCS, Hero Honda, DLF, Reliance Communication, PNB, HCL Tech, BPCL and Unitech were down 1-1.8%. SAIL was down 0.5%.
The Nifty rose 41 points, to 4,612 and the Sensex went up 180 points, to 15,568. About 1432 shares advanced while 1370 shares declined on the BSE. Nearly 369 shares were unchanged.
Reliance Industries, Infosys, ICICI Bank, L&T, ITC, ONGC, SBI and HUL were leading counters.
In the midcap space, Godfrey Phillip, Sunteck Realty, Patni Computer, Max India and 3M India were up 6-14%. However, REI Six Ten, Simplex Infra, Atlas Copco, Dish TV India and Wockhardt were down 4-5.6%.
In the smallcap space, Sonata Software, Fresenius Kabi, Kirloskar Ferro, Kothari Product and Automotive Axle went up 10-12%. However, Vishal Info, Tanla Solutions, Vikas WSP, Arshiya International and Ganesh Housing fell 5-13%.
Nifty hovering around 4650; Nalco, ONGC, SBI up
At 13.05 hrs IST, the Nifty was trading with good gains. It was hovering around the 4650 mark. Buying interest was seen across all the sectors. The BSE FMCG index outperformed the other sectoral indices. Strong buying interest was seen in banks, oil & gas, capital goods, metal, IT, auto and power stocks. Reliance, Infosys, ICICI Bank, L&T and ITC were major contributors to the Sensex.
The Sensex was up 328.64 points or 2.14% at 15716.60, and the Nifty was up 85.30 points or 1.87% at 4656.75.
About 1657 shares advanced, 1117 shares declined, and 397 shares were unchanged.
Sandeepa Arora, of IIFL, India Infoline, said that the Nifty could hit 5,000 if it crossed 4,650–4,700. She said, in an interview to CNBC-TV18, “Earlier, we were between 4,000 and 4,500. I think you will see that moving upwards between 4,400 to maybe 4,800 or 5,000 even.
Top gainers on the Sensex were ONGC at Rs 1,166.35 up 6.08%, Tata Motors at Rs 416.00 up 5.21%, SBI at Rs 1,811.90 up 5.17%, Sterlite Ind at Rs 648.40 up 3.46% and ITC at Rs 251 up 3.38%.
Top gainers on the Nifty were NALCO at Rs 310.45 up 6.41%, ONGC at Rs 1,167.15 up 6.00%, SBI at Rs 1,812.15 up 5.19%, Tata Motors at Rs 415.95 up 5.18% and Idea Cellular at Rs 79.30 up 4.27%.
ABG Shipyard said it has increased stake in Great Offshore to 8% and revised open offer to Rs 450/share. The stock rose 2.5%. Great Offshore went up 2% and Bharati Shipyard rose over 1%.
Sensex trades strong; oil exploration, banks, FMCG lead
At 12:15 hours IST, the Nifty was trading strong and was holding the 4600 level, despite seeing profit booking at higher levels. Shares of oil & gas exploration, banking, FMCG, telecom (barring Bharti Airtel), capital goods and select metal stocks were witnessing buying interest.
However, selling in Bharti Airtel, Jindal Steel, Power Grid, NTPC, BPCL, ACC, PNB and Hero Honda was putting some pressure on the markets.
The Sensex rose 271 points, to 15,658 and the Nifty went up 71 points, to 4,643. The market breadth was positive; about 1714 shares advanced while 1046 shares declined on the BSE. Nearly 411 shares were unchanged. The broader indices have come off from highs and were up 1-1.4%.
In the oil & gas space, ONGC surged nearly 6%. Reliance Industries, Cairn India and Reliance Petroleum were up 1.5-2%. GAIL and IOC went up 0.5-0.6%.
Banking stocks like SBI shot up 4.80% as yesterday the company reported strong numbers for Q1FY10. Kotak Mahindra, HDFC Bank, ICICI Bank, Bank of Baroda and Axis Bank moved up 1.5-4.5%. Federal Bank was up 3.22% on good Q1FY10 numbers.
FMCG stocks like Nestle, United Spirits, United Breweries, Ruchi Soya, Tata Tea, Britannia, ITC, HUL and Godrej Consumer were up 2-7.8%.
In the capital goods space, Siemens, Suzlon Energy, L&T, Punj Lloyd, BHEL and ABB gained 1-2.5%.
Metal stocks like Gujarat NRE Coke rose 5.09%. Sterlite Industries, Hindustan Zinc, Sesa Goa, JSW Steel, Tata Steel, Ispat Industries, Jindal Saw and Hindalco (ahead of numbers) were up 1.5-3.7%. NMDC and SAIL went up 0.6-0.9%.
Sensex gains strength; all sectoral indices in green
At 10:56 hours IST, the Sensex gained more strength on the first day of August series. It touched the 15,700 level on the back of huge buying in across the sectors, especially banking, auto, metal, oil & gas and capital goods stocks. The Nifty was trading above the 4650 level.
The broader indices were in line with the benchmark indices, gained 1.7-2.3%. The market breadth was strong; about 1901 shares advanced while 821 shares declined on the BSE. Nearly 449 shares were unchanged.
The Sensex surged 325 points, to 15,713 and the Nifty rose 92 points, to 4663. The Nifty August future was trading with 7 points premium.
On the sectoral front, the BSE Metal Index shot up 3%. Bank, Oil & Gas, Auto, Capital Goods, Realty and IT indices went up 2-2.7%. FMCG, TECk, Power and Healthcare indices gained 1-1.7%.
Reliance Industries, Infosys, ICICI Bank, L&T, ITC, ONGC and SBI were the leading counters.
Tata Motors, SBI, Sterlite, ONGC, Hindalco and NALCO were top gainers and surged over 4% each. However, Bharti and BPCL were the only losers.
In the midcap space, Sunteck Realty surged 16%. Godfrey Phillip, Patni Computer, India Infoline and Monnet Ispat moved up 7.7-10.7%.
In the smallcap space, Fresenius Kabi, Hinduja Venture, Marathon Nextgen, Kothari Product and Supreme Petro went up 8.5-13.5%.
Nifty trades above 4600; Sensex at 2009 highs
The markets opened strong following positive global cues and the Sensex was trading at 2009 highs. Heavyweights were witnessing huge buying interest. Shares of oil & gas exploration, auto, realty, metal and infrastructure stocks were supporting the markets.
At 9:56 am, the Nifty rose 76 points, to 4,647 and the Sensex gained 264 points at 15,652. The CNX Midcap surged 83 points, to 5,963 and the BSE Smallcap Index went up 82 points, to 6,286. About 660 shares advanced while 64 shares declined on the NSE.
Among the frontliners, Cairn (4% as crude surged 5%), Sterlite Industries, Suzlon (ahead of numbers), DLF, M&M, Tata Motors, Reliance Capital, SBI (on good numbers), L&T, ONGC, Tata Steel, Reliance Industries, Ranbaxy Labs, Hero Honda and HDFC were the gainers.
Midcap Space:
Lanco Infratech was up 0.4%, after doing successful QIP.
Deccan Chronicle was up 4.5% and PTC surged 5% on good numbers.
WWIL was up 2.5% and SEAMAC up 5% on good numbers.
Indiabulls Real, Parsvnath, HDIL, Sesa Goa and Gujarat NRE Coke were up 1-3%.
Adlabs lost 3%.
Global cues:
Asian markets were strong. Hang Seng rose 2%. Shanghai, Nikkei and Kospi were up 1.2-1.8%. Jakarta, Straits Times and Taiwan Weighted gained 0.4-0.8%.
The US markets hit 9-month high amid strong earnings and lower jobless claims, although slipped from the day's high. The Nasdaq hit 2,000 level in the intraday trade for the first time since October, 2008.
The Dow Jones Industrial Average was up 84 points at 9,154 and was off nearly 90 points from day's high of 9,247.
The S&P 500 Index rose 11.6 points at 987, after slipping 10 points from day's high of 997. The Nasdaq Composite gained 16.5 points to 1,984, after slipping 25 points from day's high of 2,010.
Commodities:
The Reuter CRB was up 3.98%, biggest gain since March 19.
Crude went up 5.5% at $67/bbl after dropping nearly 6% in the previous session.
Base metal recovered. Copper rose 4% to 10-month highs.
Lead went up 3%, Zinc gained 4% and Nickel up 5% to 10-month highs.
Gold was up 0.8% to $935/ounce and Silver rose 1.7% to $13.48/ounce.
Raw sugar made fresh 3-year high at 18.75cents/pound.
Market cues:
-FIIs net buy USD 28.7 million in equities on July 29
-MFs net sell Rs 292 crore in equities on July 29
-NSE F&O Aug series begins with Open Int of Rs 56,635 crore versus Rs 48,993 crore in July (16% higher)
-Value terms higher because Nifty has rallied 8% this series
-FIIs net buy Rs 367 crore in cash markets on July 30 (prov)
-DIIs net sell Rs 287 crore in cash markets on July 30 (prov)
-FIIs net sell Rs 339 crore in F&O on July 30
F&O cues:
-Initial Open Int July June
-Nifty Futures Open Int by Rs 10,552 crore versus Rs 9,069 crore
-Stock Futures Open Int Rs 22,135 crore versus Rs 19,861 crore
-Total Options Open Int Rs 23169 crore versus Rs 19,502 crore
-Market-wide rollover at 75% versus 77% last series
-Nifty Rollover at 69% versus 63% last series
-Nifty August futures trading at 1-point premium
-Strong Rollovers: Textiles (88%), Cement (85%), Power (85%)
-Weak Rollovers: Metals (71%), Sugar (72%), FMCG (75%)
-Nifty Open Int PCR starts at 0.95 (Same as last series beginning)
-Nifty Puts add 23.8 lakh, Calls add 21.9 lakh shares in Open Int
-Nifty Aug 4700 Call adds 7.3 lakh shares in Open Int
-Nifty Aug 4500 Put adds 5.3 lakh shares in Open Int
-Nifty Aug 4600 Call adds 5.2 lakh shares in Open Int
-Nifty Aug 5000 Call adds 3.7 lakh shares in Open Int
The Sensex witnessed huge buying interest on the first day of the August series and closed July month on a strong note, up 8% during the month. It closed at 13-month high on the back of strong earnings and global cues. The Nifty closed above the 4600 level. The upsurge in shares of oil & gas exploration, banking, FMCG, capital goods, metal and select pharma companies supported the markets throughout the session.
The indices saw some blip around 14:15 hours IST due to realty stocks, Bharti Airtel, TCS, Reliance Communication, Hero Honda, SAIL, BPCL and Unitech. But in the last one hour of the trade, they gained more strength again. The 30-share BSE Sensex surged 282.35 points or 1.83%, to settle at 15,670.31, after seeing an intraday high of 15,732.81. Its previous closing high in the last 13 months was at 15,503.92
The 50-share NSE Nifty shut shop at 4636.45, up 1.42% or 65 points over previous close, after seeing a day's high of 4669.75.
Both the indices gained 8% each for the month and up 1.5-1.9% for the week. The BSE Auto, Realty, FMCG and IT were the strong sectors this month, their indices were up 25%, 22%, 21% and 20%, respectively. The Nifty August futures closed with 17 points premium (provisional figures).
ONGC and SBI were the star performers of the day, both surged 5-6% on the back of institutional buying. Deven Choksey of KR Choksey Securities said the market looked little bit promising and some of the heavyweights started taking up the positions in the market and that included Oil & Natural Gas Corporation (ONGC). "Some of the long only foreign institutional investors (FII) funds, who have started acting into the market, have started allotting funds to some of these large size market companies where the growth is now looking little bit more certain. That is where we are seeing the kind of buying also emerging from that side," he said.
SBI Q1 numbers were good on Thursday posted 42% jump in net profit. He added, "We are expecting that the market having gone up to 4,660 on the Nifty, probably may make some small correction. But thereafter probably it would go up because of higher allocation of funds and largely towards some of the heavyweight counters including those of banks like State Bank of India. So from that perspective, we are seeing the kind of buying continuing in coming days. Maybe we should be having some kind of profit booking in the beginning of the next week but thereafter one should see an upside continuing in the market."
Hindalco Industries surged 6.65% as the company's bottomline numbers were above the estimates though it was down 31% at Rs 480 crore versus Rs 696.8 crore, YoY. The markets expected around Rs 226 crore.
Adani Power initial public offering (IPO) witnessed huge investors' interest and was subscribed 21.59 times. The issue received bids for more than 537 crore shares as against the issue size of 30,16,52,031 shares. Its founder company, Adani Enterprises was up 0.33%.
The BSE FMCG Index outperformed other indices, surged 3%, as Nestle, United Spirits, HUL, Tata Tea, Britannia (Q1 net was up 17% and sales up 5%), ITC, Godrej Consumer and Ruchi Soya were up 2.5-6.4%.
The Oil & Gas Index went up 2.65% led by exploration companies. ONGC shot up 5.91% Aban Offshore, Essar Oil, Reliance Industries and Reliance Petroleum were up 2.5-4.5%. Cairn India was up 1.33%. Crude was up over 5% on Thursday. However, BPCL, HPCL, IOC and GAIL fell 1-3%.
Bankex was up 1.9% led by SBI, which rose over 5%. Kotak Mahindra, HDFC Bank, Bank of Baroda and Canara Bank were up 2-4%. ICICI Bank was up 0.5%.
In the technology space, Patni Computer surged another 10%, after seeing over 10% rally on Thursday (the company posted strong numbers for the quarter). Infosys rose 2.66% and Wipro up 0.43%. However, HCL Tech went down 1.7% and TCS fell 0.68%.
Metal stocks like Hindalco surged 6.65%. Sesa Goa, Sterlite Industries, Jindal Saw, Hindustan Zinc, Tata Steel and JSW Steel were up 1-3.8%. However, Jindal Steel fell 2.72%.
In the auto space, Bharat Forge jumped 10.27% and Tata Motors was up 6.61%. Maruti Suzuki, Apollo Tyres, M&M and Bajaj Auto went up 0.5-1%. However, Hero Honda was up 2.08%.
In the capital goods space, ABB, Punj Lloyd, Siemens, BHEL and L&T went up 1-1.7%.
Telecom stocks like Idea Cellular surged 4.23%. However, Bharti Airtel lost 3.06%. Today was the last day for Bharti-MTN talks and sources said that they could extend date for talks further. Reliance Communication slipped 2.11%.
In the power pack, Neyveli Lignite was up 5% and Reliance Infrastructure rose 1.69%. Tata Power, Torrent Power and Suzlon Energy gained 0.5% each. However, Lanco Infratech lost 2.84%. GVK Power, GMR Infra, NTPC, Power Grid Corp and Reliance Power slipped 0.5-1%.
Pharma stocks like Ranbaxy Labs, Sun Pharma, Biocon, Apollo Hospital and Glenmark went up 1-2.5%. However, Wockhardt lost 4.42%. Cipla, Dr Reddys Labs and Matrix Lab were down 0.5-1.3%.
However, realty stocks lost the ground today. Omaxe, Ackruti City, Unitech, Orbit Corporation, DLF and Indiabulls Real declined 1.4-3.5%.
Volumes were lower; total traded turnover stood at Rs 83,315.90 crore. This included Rs 19,894.54 crore from the NSE cash segment, Rs 57,151.46 crore from the NSE F&O segment and the balance Rs 6,269.90 crore from the BSE cash segment.
Among the broader indices, the BSE Midcap Index was up 1% and Smallcap Index was flat. About 1,452 shares advanced while 1,356 shares declined on the BSE. Nearly 363 shares remained unchanged.
Global cues:
At the time of closing of Indian equities, European markets and US futures were flat in trade.
Asian markets ended higher. Shanghai surged 2.7%. Hang Seng, Nikkei and Kospi were up 1.5-1.9%. Straits Times and Taiwan Weighted rose 0.7-0.9%.
Nifty holds 4600; oil exploration, banks, FMCG gain
At 15:07 hours IST - the Nifty gave up 1/2 of gains and was still holding above 4600 level. Heavyweights ONGC and SBI were up over 5%. Leading counters like Reliance Industries, HUL, Infosys, ITC, HDFC, HDFC Bank, Sterlite, BHEL, Tata Motors, Nalco, Idea, Tata Steel, Ambuja Cements, Hindalco and Maruti were trading higher.
However, heavyweight Bharti Airtel plunged over 4%; today is the last day of Bharti-MTN talks and sources believe that the company may extend further. Shares of power, realty and oil marketing companies were also under pressure.
The Nifty rose 48 points, to 4,620 and the Sensex gained 212 points at 15,600. About 1430 shares advanced while 1376 shares declined on the BSE. Nearly 365 shares were unchanged.
Sensex trades strong despite selling at higher levels
At 14:23 hours IST - the Sensex continued its uptrend on the back of buying in heavyweights, despite selling pressure at higher levels. Shares of oil & gas exploration, banking, FMCG, capital goods and select metal stocks were witnessing buying interest. Infosys, Tata Motors, HDFC, Idea Cellular, Reliance Capital, Sun Pharma, Reliance Infrastructure, Ambuja Cements, Maruti, Ranbaxy and Suzlon Energy were other gainers.
Hindalco and Nalco surged 2.5% and 4.8%, respectively, ahead of their Q1FY10 numbers.
However, on the losing side, heavyweight Bharti Airtel tumbled over 3.5%. Jindal Steel tanked 4%. TCS, Hero Honda, DLF, Reliance Communication, PNB, HCL Tech, BPCL and Unitech were down 1-1.8%. SAIL was down 0.5%.
The Nifty rose 41 points, to 4,612 and the Sensex went up 180 points, to 15,568. About 1432 shares advanced while 1370 shares declined on the BSE. Nearly 369 shares were unchanged.
Reliance Industries, Infosys, ICICI Bank, L&T, ITC, ONGC, SBI and HUL were leading counters.
In the midcap space, Godfrey Phillip, Sunteck Realty, Patni Computer, Max India and 3M India were up 6-14%. However, REI Six Ten, Simplex Infra, Atlas Copco, Dish TV India and Wockhardt were down 4-5.6%.
In the smallcap space, Sonata Software, Fresenius Kabi, Kirloskar Ferro, Kothari Product and Automotive Axle went up 10-12%. However, Vishal Info, Tanla Solutions, Vikas WSP, Arshiya International and Ganesh Housing fell 5-13%.
Nifty hovering around 4650; Nalco, ONGC, SBI up
At 13.05 hrs IST, the Nifty was trading with good gains. It was hovering around the 4650 mark. Buying interest was seen across all the sectors. The BSE FMCG index outperformed the other sectoral indices. Strong buying interest was seen in banks, oil & gas, capital goods, metal, IT, auto and power stocks. Reliance, Infosys, ICICI Bank, L&T and ITC were major contributors to the Sensex.
The Sensex was up 328.64 points or 2.14% at 15716.60, and the Nifty was up 85.30 points or 1.87% at 4656.75.
About 1657 shares advanced, 1117 shares declined, and 397 shares were unchanged.
Sandeepa Arora, of IIFL, India Infoline, said that the Nifty could hit 5,000 if it crossed 4,650–4,700. She said, in an interview to CNBC-TV18, “Earlier, we were between 4,000 and 4,500. I think you will see that moving upwards between 4,400 to maybe 4,800 or 5,000 even.
Top gainers on the Sensex were ONGC at Rs 1,166.35 up 6.08%, Tata Motors at Rs 416.00 up 5.21%, SBI at Rs 1,811.90 up 5.17%, Sterlite Ind at Rs 648.40 up 3.46% and ITC at Rs 251 up 3.38%.
Top gainers on the Nifty were NALCO at Rs 310.45 up 6.41%, ONGC at Rs 1,167.15 up 6.00%, SBI at Rs 1,812.15 up 5.19%, Tata Motors at Rs 415.95 up 5.18% and Idea Cellular at Rs 79.30 up 4.27%.
ABG Shipyard said it has increased stake in Great Offshore to 8% and revised open offer to Rs 450/share. The stock rose 2.5%. Great Offshore went up 2% and Bharati Shipyard rose over 1%.
Sensex trades strong; oil exploration, banks, FMCG lead
At 12:15 hours IST, the Nifty was trading strong and was holding the 4600 level, despite seeing profit booking at higher levels. Shares of oil & gas exploration, banking, FMCG, telecom (barring Bharti Airtel), capital goods and select metal stocks were witnessing buying interest.
However, selling in Bharti Airtel, Jindal Steel, Power Grid, NTPC, BPCL, ACC, PNB and Hero Honda was putting some pressure on the markets.
The Sensex rose 271 points, to 15,658 and the Nifty went up 71 points, to 4,643. The market breadth was positive; about 1714 shares advanced while 1046 shares declined on the BSE. Nearly 411 shares were unchanged. The broader indices have come off from highs and were up 1-1.4%.
In the oil & gas space, ONGC surged nearly 6%. Reliance Industries, Cairn India and Reliance Petroleum were up 1.5-2%. GAIL and IOC went up 0.5-0.6%.
Banking stocks like SBI shot up 4.80% as yesterday the company reported strong numbers for Q1FY10. Kotak Mahindra, HDFC Bank, ICICI Bank, Bank of Baroda and Axis Bank moved up 1.5-4.5%. Federal Bank was up 3.22% on good Q1FY10 numbers.
FMCG stocks like Nestle, United Spirits, United Breweries, Ruchi Soya, Tata Tea, Britannia, ITC, HUL and Godrej Consumer were up 2-7.8%.
In the capital goods space, Siemens, Suzlon Energy, L&T, Punj Lloyd, BHEL and ABB gained 1-2.5%.
Metal stocks like Gujarat NRE Coke rose 5.09%. Sterlite Industries, Hindustan Zinc, Sesa Goa, JSW Steel, Tata Steel, Ispat Industries, Jindal Saw and Hindalco (ahead of numbers) were up 1.5-3.7%. NMDC and SAIL went up 0.6-0.9%.
Sensex gains strength; all sectoral indices in green
At 10:56 hours IST, the Sensex gained more strength on the first day of August series. It touched the 15,700 level on the back of huge buying in across the sectors, especially banking, auto, metal, oil & gas and capital goods stocks. The Nifty was trading above the 4650 level.
The broader indices were in line with the benchmark indices, gained 1.7-2.3%. The market breadth was strong; about 1901 shares advanced while 821 shares declined on the BSE. Nearly 449 shares were unchanged.
The Sensex surged 325 points, to 15,713 and the Nifty rose 92 points, to 4663. The Nifty August future was trading with 7 points premium.
On the sectoral front, the BSE Metal Index shot up 3%. Bank, Oil & Gas, Auto, Capital Goods, Realty and IT indices went up 2-2.7%. FMCG, TECk, Power and Healthcare indices gained 1-1.7%.
Reliance Industries, Infosys, ICICI Bank, L&T, ITC, ONGC and SBI were the leading counters.
Tata Motors, SBI, Sterlite, ONGC, Hindalco and NALCO were top gainers and surged over 4% each. However, Bharti and BPCL were the only losers.
In the midcap space, Sunteck Realty surged 16%. Godfrey Phillip, Patni Computer, India Infoline and Monnet Ispat moved up 7.7-10.7%.
In the smallcap space, Fresenius Kabi, Hinduja Venture, Marathon Nextgen, Kothari Product and Supreme Petro went up 8.5-13.5%.
Nifty trades above 4600; Sensex at 2009 highs
The markets opened strong following positive global cues and the Sensex was trading at 2009 highs. Heavyweights were witnessing huge buying interest. Shares of oil & gas exploration, auto, realty, metal and infrastructure stocks were supporting the markets.
At 9:56 am, the Nifty rose 76 points, to 4,647 and the Sensex gained 264 points at 15,652. The CNX Midcap surged 83 points, to 5,963 and the BSE Smallcap Index went up 82 points, to 6,286. About 660 shares advanced while 64 shares declined on the NSE.
Among the frontliners, Cairn (4% as crude surged 5%), Sterlite Industries, Suzlon (ahead of numbers), DLF, M&M, Tata Motors, Reliance Capital, SBI (on good numbers), L&T, ONGC, Tata Steel, Reliance Industries, Ranbaxy Labs, Hero Honda and HDFC were the gainers.
Midcap Space:
Lanco Infratech was up 0.4%, after doing successful QIP.
Deccan Chronicle was up 4.5% and PTC surged 5% on good numbers.
WWIL was up 2.5% and SEAMAC up 5% on good numbers.
Indiabulls Real, Parsvnath, HDIL, Sesa Goa and Gujarat NRE Coke were up 1-3%.
Adlabs lost 3%.
Global cues:
Asian markets were strong. Hang Seng rose 2%. Shanghai, Nikkei and Kospi were up 1.2-1.8%. Jakarta, Straits Times and Taiwan Weighted gained 0.4-0.8%.
The US markets hit 9-month high amid strong earnings and lower jobless claims, although slipped from the day's high. The Nasdaq hit 2,000 level in the intraday trade for the first time since October, 2008.
The Dow Jones Industrial Average was up 84 points at 9,154 and was off nearly 90 points from day's high of 9,247.
The S&P 500 Index rose 11.6 points at 987, after slipping 10 points from day's high of 997. The Nasdaq Composite gained 16.5 points to 1,984, after slipping 25 points from day's high of 2,010.
Commodities:
The Reuter CRB was up 3.98%, biggest gain since March 19.
Crude went up 5.5% at $67/bbl after dropping nearly 6% in the previous session.
Base metal recovered. Copper rose 4% to 10-month highs.
Lead went up 3%, Zinc gained 4% and Nickel up 5% to 10-month highs.
Gold was up 0.8% to $935/ounce and Silver rose 1.7% to $13.48/ounce.
Raw sugar made fresh 3-year high at 18.75cents/pound.
Market cues:
-FIIs net buy USD 28.7 million in equities on July 29
-MFs net sell Rs 292 crore in equities on July 29
-NSE F&O Aug series begins with Open Int of Rs 56,635 crore versus Rs 48,993 crore in July (16% higher)
-Value terms higher because Nifty has rallied 8% this series
-FIIs net buy Rs 367 crore in cash markets on July 30 (prov)
-DIIs net sell Rs 287 crore in cash markets on July 30 (prov)
-FIIs net sell Rs 339 crore in F&O on July 30
F&O cues:
-Initial Open Int July June
-Nifty Futures Open Int by Rs 10,552 crore versus Rs 9,069 crore
-Stock Futures Open Int Rs 22,135 crore versus Rs 19,861 crore
-Total Options Open Int Rs 23169 crore versus Rs 19,502 crore
-Market-wide rollover at 75% versus 77% last series
-Nifty Rollover at 69% versus 63% last series
-Nifty August futures trading at 1-point premium
-Strong Rollovers: Textiles (88%), Cement (85%), Power (85%)
-Weak Rollovers: Metals (71%), Sugar (72%), FMCG (75%)
-Nifty Open Int PCR starts at 0.95 (Same as last series beginning)
-Nifty Puts add 23.8 lakh, Calls add 21.9 lakh shares in Open Int
-Nifty Aug 4700 Call adds 7.3 lakh shares in Open Int
-Nifty Aug 4500 Put adds 5.3 lakh shares in Open Int
-Nifty Aug 4600 Call adds 5.2 lakh shares in Open Int
-Nifty Aug 5000 Call adds 3.7 lakh shares in Open Int
Subscribe to:
Posts (Atom)
