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.
Saturday, August 1, 2009
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
Friday, July 31, 2009
WEEKLY MARKET OUTLOOK :- 31-07-2009
Still, the short term sentiment is bullish…
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. The volumes appear to have taken the south path all
through the week largely aided selling by the foreign institutions in the futures and
options segment. On the Futures & Options front, the NIFTY August futures open
interest improved against previous week coupled with positive cost of carry
suggesting bullish signal. NIFTY August futures trading at a narrowing premium of
around 2-5 points against spot market over a couple of days.
The Put-Call ratio ofopen interest slithered from 1.46 to 1.10 against preceding week as Call options
ruled the accumulation over the Put options. The implied volatility (IV) trend of Put
options indicates short build up in the beginning of the week and reversal towards
the end. The IV of Call options rose initially; however, the Nifty is restricted to move
around the 4700 mark reflected by the shorting of higher Call options. Considering
the above said factors, nothing is changed since last week, still the short-term
sentiment is bullish and if NIFTY sustains above 4693 levels we may see the rally
upto 4910 levels. The weekly key support is likely to be seen at 4530 and 4474
levels.
Post Market Analysis
Domestic market concluded the week in the positive terrain on account of sustained
buying. Favorable global cues, mainly from Asian markets contributed to the sharp
rally. The rollover of Nifty positions for July 2009 series stood at 69% versus 63%
last month while market wide rollover of positions was at 75% versus 77% last
series. 22
Lower newsprint costs boosted PAT: Deccan Chronicle
Deccan Chronicle Holdings declared its first quarter numbers for the financial year 2010. Its net sales came in at Rs 216.6 crore and its net profit stood at Rs 77 crore.
Speaking on the company’s results, PK Iyer, Managing Director of Deccan Chronicle said though the volumes were down on year-on-year basis, they were cautiously optimistic about the future. “Lower newsprint costs boosted net profit,” he added.
Speaking on the company’s results, PK Iyer, Managing Director of Deccan Chronicle said though the volumes were down on year-on-year basis, they were cautiously optimistic about the future. “Lower newsprint costs boosted net profit,” he added.
FY10 turnover seen at Rs 1000cr, PAT at Rs 50cr: Rico Auto
Rico Auto has announced its first quarter results. The company Q1 revenues were down 6.7% at Rs 180 crore versus Rs 193 crore. Its PAT was up at Rs 2.6 crore versus Rs 61 lakh. Its OPM was up at 11% versus 10.6%;
Arvind Kapur, Managing Director of Rico Auto Industries, said that he saw the FY10 turnover at Rs 1,000 crore. He added that they aimed to achieve a FY10 profit after tax (PAT) of Rs 40–50 crore and added that they were targeting an EBITDA margin of 15%. Kapur expects Rico Auto's revenues from Maruti to grow by 15–20%.
Arvind Kapur, Managing Director of Rico Auto Industries, said that he saw the FY10 turnover at Rs 1,000 crore. He added that they aimed to achieve a FY10 profit after tax (PAT) of Rs 40–50 crore and added that they were targeting an EBITDA margin of 15%. Kapur expects Rico Auto's revenues from Maruti to grow by 15–20%.
Nifty to touch 4850 if it crosses 4700: Ashwani Gujral
Ashwani Gujral, Technical Analyst, ashwanigujral.com, said if 4,620 levels could be maintained for half an hour, it could be a trending day which could finally take out 4,600-4,700 kind of zone and the Nifty can move towards 4,850. “If the gap holds for the first half hour, one can go ahead and buy,” advices Gujral.
Nifty can touch 5K in Aug series: Mangal Keshav
Nifty can touch 5K in Aug series: Mangal Keshav
Chinese mkt to see correction ahead: UBS
Polaris Q1 net down; biz volumes shifting offshore
Chinese mkt to see correction ahead: UBS
Polaris Q1 net down; biz volumes shifting offshore
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