The stock market today managed to extend yesterday's gains as
improved April 2008 industrial production data, firm European
markets and higher US futures markets triggered rebound on domestic
bourses after an earlier steep intra-day fall. Consumer durables
stocks rose.
US futures markets were in green indicating positive start of US
markets later in the day. Dow Jones Industrial Average futures were
up 46 points and Nasdaq 100 futures were up 7.50 points.
The 30-share BSE Sensex gained 64.88 points or 0.43% at 15,250.20.
Sensex gained 85.53 points at day's high of 15,270.85 hit in late
trade. The market had slumped earlier in the day hit by Reserve
Bank of India (RBI)'s announcement of a repo rate rise, the first
hike in repo rate since March 2007, after trading hours on
Wednesday, 11 June 2008. Weak Asian markets further marred the
sentiment. At the day's low of 14,748.07, Sensex lost 437.32 points
in early trade.
The broader based S&P CNX Nifty rose 15.75 points or 0.35% at
4,539.35.
Nifty June 2008 futures were at 4500.55, at a discount of 38.80
points as compared to spot closing of 4539.35.
The BSE clocked a turnover of Rs 6209 crore today as compared to a
turnover of Rs 5,317.70 crore on 11 June 2008. NSE futures &
options (F&O) segment turnover was Rs 52,333.46 crore, which was
higher than Rs 45,775.86 crore on Wednesday, 11 June 2008.
Industrial production rose 7% in April 2008 from a year earlier,
rebounding strongly from the previous month's provisional 3% rise,
data released by the government today, 12 June 2008, afternoon
showed. Manufacturing production rose 7.5% in April 2008 from a
year earlier, compared with a provisional 2.9% growth in March
2008.
The Reserve Bank of India (RBI) on Wednesday, 11 June 2008, raised
short-term lending rate viz. the repo rate, by 25 basis points to
8% to contain inflation expectations. Banks are likely to raise
interest following a strong signal from RBI that banks' cost of
funds is headed north. Higher interest rates will raise borrowing
costs and hit bottom line of corporates.
The market breadth turned positive compared to weak breadth earlier
in the day. 1,481 shares advanced as compared to 1,109 that
declined on BSE. 84 remained unchanged. Among the 30 stocks from
Sensex pack, 18 were trading in green.
The Indian stock market which had hit its lowest level in 2008 on
Tuesday 10 June 2008, had recovered on Wednesday, 11 June 2008 with
Sensex rising 296.07 points or 1.99% at 15,185.32 as investors
resorted to bargain buying after recent steep fall in share prices,
taking cue from firm Asian markets.
Back to today's trade, the BSE Mid-Cap index rose 0.53% to 6,223.50
and BSE Small-Cap index climbed 0.78% to 7,525.90. Both these
indices outperformed Sensex.
BSE Consumer Durables index (up 1.73% to 3,913.40), BSE Oil & Gas
index (up 1.45% to 9,974.94), BSE Capital Goods (up 0.74% at
11,989.71), BSE Metal index (up 0.7% to 15,508.64), outperformed
Sensex.
BSE TecK index (up 0.42% to 3,387.15), The BSE Realty index (up
0.3% at 5,820.90), BSE PSU index (up 0.28% to 6,521.69), BSE Bankex
(up 0.28% at 7,037.89), BSE Power index (up 0.13% to 2,656.46), BSE
FMCG index (up 0.01% to 2,268.86), The BSE Auto (down 0.09% at
4,148.55), BSE HealthCare index (down 0.14% at 4,441.15), BSE IT
index (down 0.27% to 4,345.82), underperformed Sensex.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) rose 0.96% to Rs 2,281.75.
The stock recovered from intraday low of Rs 2185. RIL Chairman
Mukesh Ambani today said the company's annual general meeting that
RIL will pursue greenfield investment in polyester.
Consumer durables stocks rose in late trade. Rajesh Exports (up
13.12% to Rs 79.30), Videocon Industries (up 2.66% to Rs 302.60),
Titan Industries (up 0.81% to Rs 1,075) edged higher.
Power stocks edged higher. Reliance Power (up 2.06% to Rs 186.15),
Reliance Infrastructure (up 2.4% to Rs 1,046.50), Tata Power
Company (up 1.05% to Rs 1,316.50), Power Grid Corporation of India
(up 1% to Rs 86.15) edged higher.
Interest rate sensitive auto stocks were mixed. Mahindra & Mahindra
(up 0.24% to Rs 575.40), Tata Motors (up 0.35% to Rs 507.35),
Maruti Suzuki India (up 0.37% to Rs 736.35) edged higher. India's
largest motorbike maker by sales Hero Honda Motor declined 0.29% to
Rs 806.70.
Realty stocks were mixed. DLF (down 2.64% to Rs 497.70), Housing
Development and Infrastructure (down 1.48% to Rs 568.30) edged
lower. However Indiabulls Real Estate (up 3.69 % to Rs 394.95) and
Unitch (up 2.6% to Rs 189.15) edged higher.
Banking stocks recovered after initial sharp fall caused by RBI's
repo rate hike. India's largest private sector bank by market
capitalisation ICICI Bank rose 0.09% to Rs 742.30. The stock
recovered from session's low of Rs 702.15. State Bank of India,
India's biggest commercial bank, rose 2.31% to Rs 1,339.70. The
stock came off session's low of Rs 1252.30.
Banks are set to raise interest rates following the repo rate hike
by RBI. State Bank of India chairman O.P. Bhatt said on Thursday,
the bank will review its interest rates on Friday, 13 June 2008.
India's largest dedicated housing finance firm by operating income
HDFC declined 0.69% to Rs 2,171.95. The stock recovered from
session's low of Rs 2,001. HDFC chairman Deepak Parekh today said
HDFC will take a decision on raising interest rates on home loans
by end of this month. He said there was upward pressure on interest
rates.
Tata Steel (up 2.35% to Rs 856.85), Wipro (up 2.11% to Rs 483.10),
Jaiprakash Associates (up 1.67% to Rs 186.20), Bharti Airtel (up
1.61% to Rs 819.90), Grasim Industries (up 0.83% to Rs 2,210.35)
edged higher from the Sensex pack.
Ranbaxy Laboratories (down 3.08% to Rs 543.50), Ambuja Cements
(down 2.61% to Rs 85.90) Infosys (down 0.89% to Rs 1,877.55), Cipla
(down 0.57% to Rs 217) edged lower from Sensex pack.
IFCI clocked the highest volume of 3.15 crore shares on BSE.
Reliance Petroleum (2.12 crore shares), Reliance Natural Resources
(1.84 crore shares), Spice Communications (1.31 crore shares) and
Suzlon Energy (1.15 crore shares) were other volume toppers in that
order.
Reliance Industries clocked the highest turnover of Rs 417.14 crore
on BSE. Reliance Petroleum (Rs 372.83 crore), Suzlon Energy (Rs
292.39 crore) and DLF (Rs 218.02 crore) were other turnover toppers
in that order.
European markets were in green. Key benchmark indices in France,
Germany and UK were up by between 0.5% to 0.8 %.
US stocks sank on Wednesday, 11 June 2008, with all the three
indices viz. the Dow Jones Industrial Average, S&P 500 and Nasdaq
Composite index - losing around 2%, after oil prices shot back near
their record high, stoking fears about inflation and its toll on
consumers. More signs of trouble in the financial sector further
soured the mood on Wall Street. The Financial Times said on
Wednesday that Lehman Brothers may look to raise more capital,
hammering shares of the investment bank.
Asian stocks fell on Thursday, 12 June 2008, hit by the steep oil
price rise. Key benchmark indices in Hong Kong, Japan, South Korea,
Singapore and Taiwan were down by between 1.44% to 3.39%.
Oil futures jumped almost $7 to an intraday high above $138 a
barrel on Wednesday, and settled at $136.38 a barrel on that day.
A surge in global commodity prices led by crude oil spooked stocks
across the globe in the past few days. In India, foreign funds have
pressed heavy sales. FIIs sold shares worth a net Rs 5170 crore in
the first few days of this month, till 10 June 2008. They had
dumped stocks worth a net Rs 5011.50 crore in May 2008. Their
outflow in calendar 2008 reached Rs 20539.40 crore, till 10 June
2008. There has been heavy buying by domestic funds led by
insurance firms in the past few days, but that has failed to stop
the slide on the bourses.
A near term trigger for the market will be corporate advance tax
payments for the first installment which falls due on 15 June 2008.
The income tax law requires a company to 15% the estimated tax
liability for the year as advance tax in the first installment. The
advance tax payment by the corporate sector will give a cue on Q1
June 2008 results.
Thursday, June 12, 2008
Wednesday, June 11, 2008
Post Market Report::11/06/2008
The Indian stock market which had hit its lowest level in 2008
yesterday, 10 June 2008, recovered today as investors resorted to
bargain buying after recent steep fall in share prices, taking cue
from firm Asian markets. Falling crude prices further boosted
sentiments. Sensex had tumbled 880.47 points in the past three
trading sessions. Realty, banking, capital goods and power stocks
gained. FMCG stocks declined. The market breadth was strong.
European markets, which opened after Indian market, were mixed.
Asian stocks rebounded from a two-month low on Wednesday, 11 June
2008, with the stronger US dollar helping shares of exporters.
The 30-share BSE Sensex rose 296.07 points or 1.99% at 15,185.32.
At the day's high of 15,225.81, Sensex gained 336.56 points at the
fag end of the trading session. The barometer index rose 120.23
points at the day's low of 15,009.48 hit in early trade.
The broader based S&P CNX Nifty jumped 73.8 points or 1.66% at
4,523.60. Nifty June 2008 futures were at 4515.90, at a discount of
7.70 points as compared to spot closing of 4523.60.
The market breadth was strong on BSE with 1,830 shares advancing as
compared to 809 that declined. 77 remained unchanged. Among the 30
stocks from Sensex pack, 22 were trading in green.
The BSE clocked a turnover Rs 5296 crore today as compared toa
turnover of Rs 5321.84 crore yesterday, 10 June 2008. The NSE's
futures & options (F&O) segment turnover was Rs 45,775.86 crore,
which was lower than Rs 53,893.30 crore on Tuesday, 10 June 2008.
The BSE Mid-Cap index rose 1.42% to 6,190.72 and BSE Small-Cap
index rose 1.72% to 7,467.30.
All the sectoral indices on BSE ended with gains except the BSE
FMCG index. The BSE Realty index (up 3.07% at 5,803.66), BSE
Capital Goods (up 2.44% at 11,901.49), BSE Bankex (up 2.27% at
7,018.42) outperformed Sensex.
BSE PSU index (up 1.77% to 6,503.21), BSE Power index (up 1.76% to
2,652.92), BSE IT index (up 1.72% to 4,357.43), BSE TecK index (up
1.5% to 3,372.97), BSE Oil & Gas index (up 1.46% to 9,832.24), BSE
Metal index (up 0.88% to 15,400.80), BSE HealthCare index (up 0.8%
at 4,447.24), The BSE Auto (up 0.79% at 4,152.31), BSE Consumer
Durables index (up 0.15% to 3,846.77), BSE FMCG index (down 0.35%
to 2,268.35), underperformed Sensex.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) rose 2.76% to Rs 2,260.
Realty stocks galloped in late trade. DLF (up 6.53% to Rs 511.20),
Housing Development & Infrastructure (up 4.45% to Rs 576.85) and
Unitech (up 2.87% to Rs 184.35) edged higher. Indiabulls Real
Estate declined 2.62% to Rs 380.90.
Capital goods stocks rose ahead of the release of the April 2009
industrial production data by the government tomorrow, 12 June
2008. Bharat Heavy Electricals (up 7.19% to Rs 1,481.45), Larsen &
Toubro (up 2.45% to Rs 2,652.95) and Suzlon Energy (up 0.24% to Rs
270.05) edged higher.
Banking stocks rose after recent steep losses triggered by concerns
the Reserve Bank of India may raise interest rates to rein in
inflation. HDFC Bank (up 4.74% to Rs 1,184.55), State Bank of India
(up 2.38% to Rs 1,309.50) edged higher.
India's largest private sector bank by net profit ICICI Bank rose
1.37% to Rs 741.65. It is reportedly cutting about 1000 jobs at
different levels. While the company insists that only the poor
performers have been asked to leave, reports say the job cut is
part of the company's attempt at cutting cost, mainly in segments
such as retail, rural and agri-credit.
Power stocks gained. NTPC (up 2.38% to Rs 165.30), Tata Power
Company (up 0.91% to Rs 1,302.80) and Reliance Power (up 0.05% to
Rs 182.40) edged higher.
FMCG stocks declined. ITC (down 1.09% to Rs 199.35), Hindustan
Unilever (down 0.79% to Rs 232.55) and United Spirits (down 1.61%
to Rs 1,377.25) edged lower.
Ambuja Cements (up 7.19% to Rs 88.20), HDFC (up 4.1% to Rs
2,187.05), Bharti Airtel (up 3.78% to Rs 806.90), Cipla (up 3.41%
to Rs 218.25), Jaiprakash Associates (up 3.39% to Rs 183.15), ACC
(up 3.09% to Rs 635.45) edged higher from Sensex pack.
Reliance Communications (down 1.41% to Rs 543.05), ONGC (down 0.08%
to Rs 830.55), Maruti Suzuki India (down 1.07% to Rs 733.60) edged
lower from the Sensex pack.
India's largest drugmaker by sales Ranbaxy Laboratories was flat at
Rs 560.80. Ranbaxy founders Malvinder Singh and Shivinder Singh
today inked a deal to sell their combined 34.8% stake to Japanese
drug maker Daiichi Sankyo at Rs 737 a share, a 30% premium over
Tuesday (10 June 2008)'s closing price. Daiichi also seeks to
acquire majority of the voting capital of Ranbaxy. The total
transaction value is expected at about Rs 14740 crore to Rs 19800
crore depending on the response to a mandatory 20% open offer which
Daiichi will be making to Ranbaxy shareholders.
India's largest commercial vehicle maker by sales Tata Motors
declined 1.42% to Rs 505.60. As per reports, it plans to raise an
additional $1 billion in the international market to fund its
expansion plans, which include strategic alliances and
acquisitions.
Grasim Industries declined 1.13% to Rs 2,192.05 after the company
said on Tuesday, 10 June 2008, it has sold its sponge iron business
Vikram Ispat to Welspun Power and Steel for Rs 1030 crore.
IFCI clocked the highest volume of 2.67 crore shares on BSE.
Ranbaxy Laboratories (1.19 crore shares), Karuturi Global (1.08
crore shares), Ispat Industries (83.99 crore shares), Anu's
Laboratories (81.45 lakh shares) were the other volume toppers in
that order.
Ranbaxy Laboratories clocked the highest turnover of Rs 684.05
crore on BSE. Reliance Industries (Rs 322.83 crore), Anu's
Laboratories (Rs 251.7 crore), Reliance Capital (Rs 186.62 crore)
and IFCI (Rs 164.99 crore) were the other turnover toppers in that
order.
European markets were mixed. Key benchmark indices in France and UK
were down by between 0.12% to 0.2%. Germany's DAX rose by 0.13%.
Asian markets were mixed. Key benchmark indices in Japan, South
Korea and Singapore were up by between 0.41% to 1.16%. Key
benchmark indices in Hong Kong, China and Taiwan were down by
between 0.21% to 1.57%.
Oil fell sharply on Tuesday, 10 June 2008, after the US Federal
Reserve signaled it was taking aim at inflation, triggering a
rebound in the US dollar and a sell-off across commodities markets.
Further pressure on prices came after two of the world's biggest
energy forecasters lowered their outlook for global energy demand
as high prices bite consumers, easing the effect of lackluster
increases in world production. US crude dropped $3.04, or 2.26%, to
settle at $131.31 a barrel, well below last Friday (6 June 2008)'s
record near $140.
A surge in global commodity prices led by crude oil spooked stocks
across the globe in the past few days. Crude price is up about 40%
so far in calendar 2008. In India, foreign funds have pressed heavy
sales. FIIs sold shares worth a net Rs 4326 crore in the first few
days of this month, till 9 June 2008. They had dumped stocks worth
a net Rs 5011.50 crore in May 2008. Their outflow in calendar 2008
reached Rs 19695.40 crore, till 9 June 2008. There has been heavy
buying by domestic funds led by insurance firms in the past few
days, but that has failed to stop the slide on the bourses.
Brokerage earnings downgrades of Indian firms/stock prices amid
rising input and interest costs for India Inc, high inflation and
drying up of global liquidity due to credit crisis remain major
concern for the Indian stock market. If inflation remains high, the
Reserve Bank of India (RBI) would be forced to hike repo rate - a
move that could choke overall growth of the economy. The Indian
industry and consumer have already been reeling under high interest
rates over the past few months. A further hike in rates would raise
interest costs of corporate India and hit bottomline.
After 10 days of debate, the Union government on Wednesday, 4 June
2008 agreed to raise retail petrol and diesel prices by about 10%,
more than expected, to help curb losses at its state-owned
refiners. A sharp fall in the rupee against the dollar in the past
few days has heightened concerns about inflation. This is because
the fall in rupee will raise cost of imports which in turn will
result in further rise in inflation.
According to rating agency CRISIL, headline inflation is expected
to increase by 95 basis points on account of direct and indirect
effects of the fuel price hike. The indirect impact which will be
felt over the course of the next few months, it states in a note.
India's fiscal deficit is slated to rise in the current financial
year on account of the hefty fuel and fertilizer subsidies, a big
sixth pay commission recommended wage hike, a debt-waiver package
to farmers announced in the Union Budget 2008-09 and the recent
sharp cut in duties by the government on petroleum products to
mitigate the impact of oil price rise on consumers. A rise in
fiscal deficit means negative savings for the government. This will
result in higher government borrowings which in turn will keep
interest rates high.
A well distributed monsoon will bolster food production, helping
douse inflation. Agricultural output in India depends on good
rains. The Indian Meteorological Department (IMD)'s second monsoon
forecast for the crucial annual south-west monsoon (June-September)
due this months which may indicate spatial rainfall distribution in
the main sowing month of July 2008, will be keenly watched by
market men. The IMD has forecast the 2008 monsoon rains would be
near-normal and 99% of the average between 1941 and 1990.
A section of the market is of the view that the central bank may
only use the reserve requirement route to tame inflation, fearing
any hike in rates would further hurt growth already seen moderating
to a still strong 8%-8.5% this fiscal year from 9% in 2007/08. To
rein in inflation, in its monetary policy review for 2008-09 on 29
April 2008, the RBI raised cash reserve ratio (CRR) by 25 basis
points to 8.25% to suck out excess liquidity in the banking system.
RBI often says pass-through of high global oil prices is incomplete
in India, complicating policy making.
According to a latest monthly June 2008 strategy report by HSBC
Global Research, a possibility of Left parties withdrawing support
to the government at the centre over the fuel price hike issue,
cannot be ruled out. In such an environment with prospects of
mid-term polls, the stock market is likely to remain nervous, HSBC
says. Parliamentary elections are due in India in May 2009. HSBC's
2008 year-end (calendar year) target for Sensex is 17,500, compared
to current Sensex level of 15,066.10.
Another near term trigger for the market will be corporate advance
tax payments for the first installment which falls due on 15 June
2008. The income tax law requires a company to 15% the estimated
tax liability for the year as advance tax in the first installment.
The advance tax payment by the corporate sector will give a cue on
Q1 June 2008 results.
The market will also be keeping a watch on the industrial
production numbers for April 2008, which the government will unveil
on Thursday, 12 June 2008, which will give a cue on the extent of
slowdown in the Indian economy caused by high interest rates.
The BSE Sensex may fall to a 10-month low of around 13,000 points
by end-2008, as the Reserve Bank of India may raise interest rates
to check inflation due to record oil prices, Credit Suisse said on
Monday, 9 June 2008. "The market is still not pricing in the much
lower earnings growth being forecast by corporates and banks,"
Nilesh Jasani, head of research at the Indian unit of the Swiss
bank told reporters at a briefing on Monday, 9 June 2008.
Uncertainty ahead of national elections will also weigh on the
minds of investors, Jasani said.
yesterday, 10 June 2008, recovered today as investors resorted to
bargain buying after recent steep fall in share prices, taking cue
from firm Asian markets. Falling crude prices further boosted
sentiments. Sensex had tumbled 880.47 points in the past three
trading sessions. Realty, banking, capital goods and power stocks
gained. FMCG stocks declined. The market breadth was strong.
European markets, which opened after Indian market, were mixed.
Asian stocks rebounded from a two-month low on Wednesday, 11 June
2008, with the stronger US dollar helping shares of exporters.
The 30-share BSE Sensex rose 296.07 points or 1.99% at 15,185.32.
At the day's high of 15,225.81, Sensex gained 336.56 points at the
fag end of the trading session. The barometer index rose 120.23
points at the day's low of 15,009.48 hit in early trade.
The broader based S&P CNX Nifty jumped 73.8 points or 1.66% at
4,523.60. Nifty June 2008 futures were at 4515.90, at a discount of
7.70 points as compared to spot closing of 4523.60.
The market breadth was strong on BSE with 1,830 shares advancing as
compared to 809 that declined. 77 remained unchanged. Among the 30
stocks from Sensex pack, 22 were trading in green.
The BSE clocked a turnover Rs 5296 crore today as compared toa
turnover of Rs 5321.84 crore yesterday, 10 June 2008. The NSE's
futures & options (F&O) segment turnover was Rs 45,775.86 crore,
which was lower than Rs 53,893.30 crore on Tuesday, 10 June 2008.
The BSE Mid-Cap index rose 1.42% to 6,190.72 and BSE Small-Cap
index rose 1.72% to 7,467.30.
All the sectoral indices on BSE ended with gains except the BSE
FMCG index. The BSE Realty index (up 3.07% at 5,803.66), BSE
Capital Goods (up 2.44% at 11,901.49), BSE Bankex (up 2.27% at
7,018.42) outperformed Sensex.
BSE PSU index (up 1.77% to 6,503.21), BSE Power index (up 1.76% to
2,652.92), BSE IT index (up 1.72% to 4,357.43), BSE TecK index (up
1.5% to 3,372.97), BSE Oil & Gas index (up 1.46% to 9,832.24), BSE
Metal index (up 0.88% to 15,400.80), BSE HealthCare index (up 0.8%
at 4,447.24), The BSE Auto (up 0.79% at 4,152.31), BSE Consumer
Durables index (up 0.15% to 3,846.77), BSE FMCG index (down 0.35%
to 2,268.35), underperformed Sensex.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) rose 2.76% to Rs 2,260.
Realty stocks galloped in late trade. DLF (up 6.53% to Rs 511.20),
Housing Development & Infrastructure (up 4.45% to Rs 576.85) and
Unitech (up 2.87% to Rs 184.35) edged higher. Indiabulls Real
Estate declined 2.62% to Rs 380.90.
Capital goods stocks rose ahead of the release of the April 2009
industrial production data by the government tomorrow, 12 June
2008. Bharat Heavy Electricals (up 7.19% to Rs 1,481.45), Larsen &
Toubro (up 2.45% to Rs 2,652.95) and Suzlon Energy (up 0.24% to Rs
270.05) edged higher.
Banking stocks rose after recent steep losses triggered by concerns
the Reserve Bank of India may raise interest rates to rein in
inflation. HDFC Bank (up 4.74% to Rs 1,184.55), State Bank of India
(up 2.38% to Rs 1,309.50) edged higher.
India's largest private sector bank by net profit ICICI Bank rose
1.37% to Rs 741.65. It is reportedly cutting about 1000 jobs at
different levels. While the company insists that only the poor
performers have been asked to leave, reports say the job cut is
part of the company's attempt at cutting cost, mainly in segments
such as retail, rural and agri-credit.
Power stocks gained. NTPC (up 2.38% to Rs 165.30), Tata Power
Company (up 0.91% to Rs 1,302.80) and Reliance Power (up 0.05% to
Rs 182.40) edged higher.
FMCG stocks declined. ITC (down 1.09% to Rs 199.35), Hindustan
Unilever (down 0.79% to Rs 232.55) and United Spirits (down 1.61%
to Rs 1,377.25) edged lower.
Ambuja Cements (up 7.19% to Rs 88.20), HDFC (up 4.1% to Rs
2,187.05), Bharti Airtel (up 3.78% to Rs 806.90), Cipla (up 3.41%
to Rs 218.25), Jaiprakash Associates (up 3.39% to Rs 183.15), ACC
(up 3.09% to Rs 635.45) edged higher from Sensex pack.
Reliance Communications (down 1.41% to Rs 543.05), ONGC (down 0.08%
to Rs 830.55), Maruti Suzuki India (down 1.07% to Rs 733.60) edged
lower from the Sensex pack.
India's largest drugmaker by sales Ranbaxy Laboratories was flat at
Rs 560.80. Ranbaxy founders Malvinder Singh and Shivinder Singh
today inked a deal to sell their combined 34.8% stake to Japanese
drug maker Daiichi Sankyo at Rs 737 a share, a 30% premium over
Tuesday (10 June 2008)'s closing price. Daiichi also seeks to
acquire majority of the voting capital of Ranbaxy. The total
transaction value is expected at about Rs 14740 crore to Rs 19800
crore depending on the response to a mandatory 20% open offer which
Daiichi will be making to Ranbaxy shareholders.
India's largest commercial vehicle maker by sales Tata Motors
declined 1.42% to Rs 505.60. As per reports, it plans to raise an
additional $1 billion in the international market to fund its
expansion plans, which include strategic alliances and
acquisitions.
Grasim Industries declined 1.13% to Rs 2,192.05 after the company
said on Tuesday, 10 June 2008, it has sold its sponge iron business
Vikram Ispat to Welspun Power and Steel for Rs 1030 crore.
IFCI clocked the highest volume of 2.67 crore shares on BSE.
Ranbaxy Laboratories (1.19 crore shares), Karuturi Global (1.08
crore shares), Ispat Industries (83.99 crore shares), Anu's
Laboratories (81.45 lakh shares) were the other volume toppers in
that order.
Ranbaxy Laboratories clocked the highest turnover of Rs 684.05
crore on BSE. Reliance Industries (Rs 322.83 crore), Anu's
Laboratories (Rs 251.7 crore), Reliance Capital (Rs 186.62 crore)
and IFCI (Rs 164.99 crore) were the other turnover toppers in that
order.
European markets were mixed. Key benchmark indices in France and UK
were down by between 0.12% to 0.2%. Germany's DAX rose by 0.13%.
Asian markets were mixed. Key benchmark indices in Japan, South
Korea and Singapore were up by between 0.41% to 1.16%. Key
benchmark indices in Hong Kong, China and Taiwan were down by
between 0.21% to 1.57%.
Oil fell sharply on Tuesday, 10 June 2008, after the US Federal
Reserve signaled it was taking aim at inflation, triggering a
rebound in the US dollar and a sell-off across commodities markets.
Further pressure on prices came after two of the world's biggest
energy forecasters lowered their outlook for global energy demand
as high prices bite consumers, easing the effect of lackluster
increases in world production. US crude dropped $3.04, or 2.26%, to
settle at $131.31 a barrel, well below last Friday (6 June 2008)'s
record near $140.
A surge in global commodity prices led by crude oil spooked stocks
across the globe in the past few days. Crude price is up about 40%
so far in calendar 2008. In India, foreign funds have pressed heavy
sales. FIIs sold shares worth a net Rs 4326 crore in the first few
days of this month, till 9 June 2008. They had dumped stocks worth
a net Rs 5011.50 crore in May 2008. Their outflow in calendar 2008
reached Rs 19695.40 crore, till 9 June 2008. There has been heavy
buying by domestic funds led by insurance firms in the past few
days, but that has failed to stop the slide on the bourses.
Brokerage earnings downgrades of Indian firms/stock prices amid
rising input and interest costs for India Inc, high inflation and
drying up of global liquidity due to credit crisis remain major
concern for the Indian stock market. If inflation remains high, the
Reserve Bank of India (RBI) would be forced to hike repo rate - a
move that could choke overall growth of the economy. The Indian
industry and consumer have already been reeling under high interest
rates over the past few months. A further hike in rates would raise
interest costs of corporate India and hit bottomline.
After 10 days of debate, the Union government on Wednesday, 4 June
2008 agreed to raise retail petrol and diesel prices by about 10%,
more than expected, to help curb losses at its state-owned
refiners. A sharp fall in the rupee against the dollar in the past
few days has heightened concerns about inflation. This is because
the fall in rupee will raise cost of imports which in turn will
result in further rise in inflation.
According to rating agency CRISIL, headline inflation is expected
to increase by 95 basis points on account of direct and indirect
effects of the fuel price hike. The indirect impact which will be
felt over the course of the next few months, it states in a note.
India's fiscal deficit is slated to rise in the current financial
year on account of the hefty fuel and fertilizer subsidies, a big
sixth pay commission recommended wage hike, a debt-waiver package
to farmers announced in the Union Budget 2008-09 and the recent
sharp cut in duties by the government on petroleum products to
mitigate the impact of oil price rise on consumers. A rise in
fiscal deficit means negative savings for the government. This will
result in higher government borrowings which in turn will keep
interest rates high.
A well distributed monsoon will bolster food production, helping
douse inflation. Agricultural output in India depends on good
rains. The Indian Meteorological Department (IMD)'s second monsoon
forecast for the crucial annual south-west monsoon (June-September)
due this months which may indicate spatial rainfall distribution in
the main sowing month of July 2008, will be keenly watched by
market men. The IMD has forecast the 2008 monsoon rains would be
near-normal and 99% of the average between 1941 and 1990.
A section of the market is of the view that the central bank may
only use the reserve requirement route to tame inflation, fearing
any hike in rates would further hurt growth already seen moderating
to a still strong 8%-8.5% this fiscal year from 9% in 2007/08. To
rein in inflation, in its monetary policy review for 2008-09 on 29
April 2008, the RBI raised cash reserve ratio (CRR) by 25 basis
points to 8.25% to suck out excess liquidity in the banking system.
RBI often says pass-through of high global oil prices is incomplete
in India, complicating policy making.
According to a latest monthly June 2008 strategy report by HSBC
Global Research, a possibility of Left parties withdrawing support
to the government at the centre over the fuel price hike issue,
cannot be ruled out. In such an environment with prospects of
mid-term polls, the stock market is likely to remain nervous, HSBC
says. Parliamentary elections are due in India in May 2009. HSBC's
2008 year-end (calendar year) target for Sensex is 17,500, compared
to current Sensex level of 15,066.10.
Another near term trigger for the market will be corporate advance
tax payments for the first installment which falls due on 15 June
2008. The income tax law requires a company to 15% the estimated
tax liability for the year as advance tax in the first installment.
The advance tax payment by the corporate sector will give a cue on
Q1 June 2008 results.
The market will also be keeping a watch on the industrial
production numbers for April 2008, which the government will unveil
on Thursday, 12 June 2008, which will give a cue on the extent of
slowdown in the Indian economy caused by high interest rates.
The BSE Sensex may fall to a 10-month low of around 13,000 points
by end-2008, as the Reserve Bank of India may raise interest rates
to check inflation due to record oil prices, Credit Suisse said on
Monday, 9 June 2008. "The market is still not pricing in the much
lower earnings growth being forecast by corporates and banks,"
Nilesh Jasani, head of research at the Indian unit of the Swiss
bank told reporters at a briefing on Monday, 9 June 2008.
Uncertainty ahead of national elections will also weigh on the
minds of investors, Jasani said.
Pre Market Report 11/06/2008
The market may edged higher as investors may resort to bargain hunting after steep losses in the past few days caused by concerns over high inflation and fears of a further rise in domestic interest rates. Asian markets were mostly in the green today. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up by between 0.14% to 1%.
Oil fell sharply on Tuesday, 10 June 2008, after the US Federal Reserve signaled it was taking aim at inflation, triggering a rebound in the US dollar and a sell-off across commodities markets. Further pressure on prices came after two of the world's biggest energy forecasters lowered their outlook for global energy demand as high prices bite consumers, easing the effect of lackluster increases in world production. US crude dropped $3.04, or 2.26%, to settle at $131.31 a barrel, well below last Friday (6 June 2008)'s record near $140.
A surge in global commodity prices led by crude oil spooked stocks across the globe in the past few days. In India, foreign funds have pressed heavy sales. FIIs sold shares worth a net Rs 4326 crore in the first few days of this month, till 9 June 2008. They had dumped stocks worth a net Rs 5011.50 crore in May 2008. Their outflow in calendar 2008 reached Rs 19695.40 crore, till 9 June 2008. There has been heavy buying by domestic funds led by insurance firms in the past few days, but that has failed to stop the slide on the bourses.
Brokerage earnings downgrades of Indian firms/stock prices amid rising input and interest costs for India Inc, high inflation and drying up of global liquidity due to credit crisis remain major concern for the Indian stock market. If inflation remains high, the Reserve Bank of India (RBI) would be forced to hike repo rate - a move that could choke overall growth of the economy. The Indian industry and consumer have already been reeling under high interest rates over the past few months. A further hike in rates would raise interest costs of corporate India and hit bottomline.
After 10 days of debate, the Union government on Wednesday, 4 June 2008 agreed to raise retail petrol and diesel prices by about 10%, more than expected, to help curb losses at its state-owned refiners. A sharp fall in the rupee against the dollar in the past few days has heightened concerns about inflation. This is because the fall in rupee will raise cost of imports which in turn will result in further rise in inflation.
According to rating agency CRISIL, headline inflation is expected to increase by 95 basis points on account of direct and indirect effects of the fuel price hike. The indirect impact which will be felt over the course of the next few months, it states in a note.
India's fiscal deficit is slated to rise in the current financial year on account of the hefty fuel and fertilizer subsidies, a big sixth pay commission recommended wage hike, a debt-waiver package to farmers announced in the Union Budget 2008-09 and the recent sharp cut in duties by the government on petroleum products to mitigate the impact of oil price rise on consumers. A rise in fiscal deficit means negative savings for the government. This will result in higher government borrowings which in turn will keep interest rates high.
A well distributed monsoon will bolster food production, helping douse inflation. Agricultural output in India depends on good rains. The Indian Meteorological Department (IMD)'s second monsoon forecast for the crucial annual south-west monsoon (June-September) due this months which may indicate spatial rainfall distribution in the main sowing month of July 2008, will be keenly watched by market men. The IMD has forecast the 2008 monsoon rains would be near-normal and 99% of the average between 1941 and 1990.
A section of the market is of the view that the central bank may only use the reserve requirement route to tame inflation, fearing any hike in rates would further hurt growth already seen moderating to a still strong 8%-8.5% this fiscal year from 9% in 2007/08. To rein in inflation, in its monetary policy review for 2008-09 on 29 April 2008, the RBI raised cash reserve ratio (CRR) by 25 basis points to 8.25% to suck out excess liquidity in the banking system. RBI often says pass-through of high global oil prices is incomplete in India, complicating policy making.
According to a latest monthly June 2008 strategy report by HSBC Global Research, a possibility of Left parties withdrawing support to the government at the centre over the fuel price hike issue, cannot be ruled out. In such an environment with prospects of mid-term polls, the stock market is likely to remain nervous, HSBC says. Parliamentary elections are due in India in May 2009. HSBC's 2008 year-end (calendar year) target for Sensex is 17,500, compared to current Sensex level of 15,066.10.
Another near term trigger for the market will be corporate advance tax payments for the first installment which falls due on 15 June 2008. The income tax law requires a company to 15% the estimated tax liability for the year as advance tax in the first installment. The advance tax payment by the corporate sector will give a cue on Q1 June 2008 results.
The market will also be keeping a watch on the industrial production numbers for April 2008, which the government will unveil on Thursday, 12 June 2008, which will give a cue on the extent of slowdown in the Indian economy caused by high interest rates.
The BSE Sensex may fall to a 10-month low of around 13,000 points by end-2008, as the Reserve Bank of India may raise interest rates to check inflation due to record oil prices, Credit Suisse said on Monday, 9 June 2008. "The market is still not pricing in the much lower earnings growth being forecast by corporates and banks," Nilesh Jasani, head of research at the Indian unit of the Swiss bank told reporters at a briefing on Monday, 9 June 2008. Uncertainty ahead of national elections will also weigh on the minds of investors, Jasani said.
Oil fell sharply on Tuesday, 10 June 2008, after the US Federal Reserve signaled it was taking aim at inflation, triggering a rebound in the US dollar and a sell-off across commodities markets. Further pressure on prices came after two of the world's biggest energy forecasters lowered their outlook for global energy demand as high prices bite consumers, easing the effect of lackluster increases in world production. US crude dropped $3.04, or 2.26%, to settle at $131.31 a barrel, well below last Friday (6 June 2008)'s record near $140.
A surge in global commodity prices led by crude oil spooked stocks across the globe in the past few days. In India, foreign funds have pressed heavy sales. FIIs sold shares worth a net Rs 4326 crore in the first few days of this month, till 9 June 2008. They had dumped stocks worth a net Rs 5011.50 crore in May 2008. Their outflow in calendar 2008 reached Rs 19695.40 crore, till 9 June 2008. There has been heavy buying by domestic funds led by insurance firms in the past few days, but that has failed to stop the slide on the bourses.
Brokerage earnings downgrades of Indian firms/stock prices amid rising input and interest costs for India Inc, high inflation and drying up of global liquidity due to credit crisis remain major concern for the Indian stock market. If inflation remains high, the Reserve Bank of India (RBI) would be forced to hike repo rate - a move that could choke overall growth of the economy. The Indian industry and consumer have already been reeling under high interest rates over the past few months. A further hike in rates would raise interest costs of corporate India and hit bottomline.
After 10 days of debate, the Union government on Wednesday, 4 June 2008 agreed to raise retail petrol and diesel prices by about 10%, more than expected, to help curb losses at its state-owned refiners. A sharp fall in the rupee against the dollar in the past few days has heightened concerns about inflation. This is because the fall in rupee will raise cost of imports which in turn will result in further rise in inflation.
According to rating agency CRISIL, headline inflation is expected to increase by 95 basis points on account of direct and indirect effects of the fuel price hike. The indirect impact which will be felt over the course of the next few months, it states in a note.
India's fiscal deficit is slated to rise in the current financial year on account of the hefty fuel and fertilizer subsidies, a big sixth pay commission recommended wage hike, a debt-waiver package to farmers announced in the Union Budget 2008-09 and the recent sharp cut in duties by the government on petroleum products to mitigate the impact of oil price rise on consumers. A rise in fiscal deficit means negative savings for the government. This will result in higher government borrowings which in turn will keep interest rates high.
A well distributed monsoon will bolster food production, helping douse inflation. Agricultural output in India depends on good rains. The Indian Meteorological Department (IMD)'s second monsoon forecast for the crucial annual south-west monsoon (June-September) due this months which may indicate spatial rainfall distribution in the main sowing month of July 2008, will be keenly watched by market men. The IMD has forecast the 2008 monsoon rains would be near-normal and 99% of the average between 1941 and 1990.
A section of the market is of the view that the central bank may only use the reserve requirement route to tame inflation, fearing any hike in rates would further hurt growth already seen moderating to a still strong 8%-8.5% this fiscal year from 9% in 2007/08. To rein in inflation, in its monetary policy review for 2008-09 on 29 April 2008, the RBI raised cash reserve ratio (CRR) by 25 basis points to 8.25% to suck out excess liquidity in the banking system. RBI often says pass-through of high global oil prices is incomplete in India, complicating policy making.
According to a latest monthly June 2008 strategy report by HSBC Global Research, a possibility of Left parties withdrawing support to the government at the centre over the fuel price hike issue, cannot be ruled out. In such an environment with prospects of mid-term polls, the stock market is likely to remain nervous, HSBC says. Parliamentary elections are due in India in May 2009. HSBC's 2008 year-end (calendar year) target for Sensex is 17,500, compared to current Sensex level of 15,066.10.
Another near term trigger for the market will be corporate advance tax payments for the first installment which falls due on 15 June 2008. The income tax law requires a company to 15% the estimated tax liability for the year as advance tax in the first installment. The advance tax payment by the corporate sector will give a cue on Q1 June 2008 results.
The market will also be keeping a watch on the industrial production numbers for April 2008, which the government will unveil on Thursday, 12 June 2008, which will give a cue on the extent of slowdown in the Indian economy caused by high interest rates.
The BSE Sensex may fall to a 10-month low of around 13,000 points by end-2008, as the Reserve Bank of India may raise interest rates to check inflation due to record oil prices, Credit Suisse said on Monday, 9 June 2008. "The market is still not pricing in the much lower earnings growth being forecast by corporates and banks," Nilesh Jasani, head of research at the Indian unit of the Swiss bank told reporters at a briefing on Monday, 9 June 2008. Uncertainty ahead of national elections will also weigh on the minds of investors, Jasani said.
Stocktips
PRAJIND BUY ABOVE 180 SL 177 Trgt 185, 191
RPL BUY 172 SL 168 Trgt 176, 180
RANBAXY BUY ABOVE 562 SL 551 trgt 577, 596
SAIL BUY ABOVE 158 SL 156 Trgt 160, 163
RPL BUY 172 SL 168 Trgt 176, 180
RANBAXY BUY ABOVE 562 SL 551 trgt 577, 596
SAIL BUY ABOVE 158 SL 156 Trgt 160, 163
Tuesday, June 10, 2008
Post Market Report::10/06/2008
The market recovered some of the lost ground in late trade after
the barometer index BSE Sensex and the S&P CNX Nifty had tumbled to
its lowest in 2008 in mid-afternoon trade. Weakness in global
markets weighed on the domestic bourses. The market breadth was
weak. Healthcare stocks and shares of public sector oil marketing
firms rose even as IT, realty and banking stocks declined.
The 30-share BSE Sensex lost 176.85 points or 1.17% at 14,889.25,
its lowest close since mid-March 2008. At the day's low of
14,645.31 the Sensex lost 420.79 points in mid-afternoon trade,
falling below its previous year 2008 low of 14,677.24 hit 18 March
2008.
Earlier, after opening on a subdued note on weak global cues, the
market had recovered to trade in green for a brief period. At the
day's high of 15,088.03 Sensex gained 21.93 points in early trade.
The broader based S&P CNX Nifty was down 41.25 points or 1.14% at
4,449.80. Nifty hit new year 2008 low of 4369.80 today. Nifty June
2008 futures were at 4453, at a premium of 3.20 points as compared
to spot closing of 4449.80.
The BSE clocked a turnover of Rs 5,265 crore today as compared to a
turnover of Rs 5,053.75 crore on Monday, 9 June 2008. NSE's futures
& options (F&O) segment turnover was Rs 53,893.30 crore, which was
lower than Rs 58,333.52 crore on Monday, 9 June 2008.
The market breadth was weak on BSE with 964 shares advancing as
compared to 1,667 that declined. 68 remained unchanged. Among the
30 stocks from Sensex pack, 21 were trading in red.
The BSE Mid-Cap index fell 1.08% to 6,103.83 and BSE Small-Cap
index fell 1.02% to 7,341.16.
All the sectoral indices on BSE ended with losses except the BSE
HealthCare index. BSE IT index (down 2.75% to 4,283.96), BSE Bankex
(down 2.43% at 6,862.33), BSE Consumer Durables index (down 2.37%
to 3,840.96), The BSE Realty index (down 2.11% at 5,630.61), BSE
TecK index (down 1.94% to 3,323.17), BSE FMCG index (down 1.58% to
2,276.59), BSE PSU index (down 1.23% to 6,390.28) underperformed
Sensex.
BSE HealthCare index (up 2.16% at 4,411.91), BSE Oil & Gas index
(up 0.15% to 9,691.22), The BSE Auto (down 0.1% at 4,119.58), BSE
Capital Goods (down 0.16% at 11,617.57), BSE Power index (down
0.47% to 2,606.96), BSE Metal index (down 0.8% to 15,265.92), BSE
FMCG index (down 1.58% to 2,276.59), outperformed the Sensex.
Bharat Heavy Electricals (up 0.54% to Rs 1,382.05), Reliance
Industries (RIL) (up 1.68% to Rs 2,199.40), Ambuja Cements (up
0.43% to Rs 82.30) and ACC (up 0.55% to Rs 616.40) edged higher
from the Sensex pack.
ONGC (down 4.74% to Rs 831.25), HDFC (down 4.79% to Rs 2,101),
Jaiprakash Associates (down 3.54% to Rs 177.15), Reliance
Infrastructure (down 2.59% to Rs 1,011.60), Tata Motors (down 0.81%
to Rs 512.90) edged lower from the Sensex pack.
Consumer durables stocks declined. Rajesh Exports (down 6.53% to Rs
70.85), Titan Industries (down 3.73% to Rs 1,088), Blue Star (down
3.26% to Rs 390) and Gitanjali Gems (down 1.13% to Rs 266) edged
lower.
Banking stocks fell extending their recent sharp losses on concerns
of further policy tightening of the monetary policy by the Reserve
Bank of India to rein in inflation which is at its highest level in
nearly four years. HDFC Bank (4.96% to Rs 1,130.95), State Bank of
India (down 1.06% to Rs 1,279.10) and ICICI Bank (down 2.47% to Rs
731.60) edged lower.
Realty stocks extended yesterday's huge losses. Indiabulls Real
Estate (down 1.82% to Rs 391.15), Unitech (down 3.03% to Rs 179.20)
and DLF (down 0.35% to Rs 479.85) edged lower.
Software services companies, which get more than half their revenue
from the United States, fell on signs the US economy was heading
for stagflation. BSE IT index was the top loser from the sectoral
indices on BSE. It was down 2.75% to 4,283.96. Infosys (down 2.89%
to Rs 1,849.10), Tata Consultancy Services (down 3.89% to Rs
880.05), Satyam Computer Services (down 2.76% to Rs 477.90), and
Wipro (down 1.46% to Rs 473.55) edged lower.
Healthcare stocks rose. Ranbaxy Laboratories (up 6.53% to Rs
560.75), Cipla (up 2.13% to Rs 211.05), Dr. Reddy's Laboratories
(up 0.54% to Rs 696.50) edged higher.
Shares of oil state-run oil marketing firms rose today after
witnessing heavy battering over the past few days. HPCL (up 1.86%
to Rs 196.90), BPCL (up 2.24% to Rs 284.65) and Indian Oil
Corporation (up 0.91% to Rs 366.55) edged higher.
IFCI clocked the highest volume of 1.85 crore shares on BSE.
Reliance Petroleum (1.36 crore shares), Ispat Industries (1.34
crore shares), Reliance Natural Resources (1.31 crore shares) and
Spice Communications (1 crore shares) were other volume toppers in
that order.
Reliance Industries clocked the highest turnover of Rs 281.98 crore
on BSE. Reliance Capital (Rs 261.73 crore), Reliance Petroleum (Rs
23.74 crore), Ranbaxy Laboratories ( Rs 213.44 crore) and Anu's
Laboratories (Rs 167.13 crore) were other turnover toppers in that
order.
European markets were weak. Key benchmark indices in France,
Germany and UK were down by between 0.37% to 0.59%.
Stocks dropped in Asia after US Federal Reserve Chairman Ben
Bernanke's warning on inflation on Monday, 9 June 208, fanned
expectations of higher US interest rates later this year. Key
benchmark indices in Hong Kong, Japan, China, South Korea,
Singapore and Taiwan were down by between 1.49% to 7.73%.
The Dow staged a modest rebound on Monday from Friday's nearly
400-point drop, as concerns about US consumer spending and the
troubled US housing market were eased by better-than-expected sales
figures from McDonald's Corp and a surprising gain in pending home
sales. The broader market was little changed, with a drop of more
than $4 in the price of oil helping fuel-dependent sectors such as
manufacturers, mitigating sharp losses in the financial and
technology sectors. The Dow Jones industrial average was up 70.51
points, or 0.58%, to end at 12,280.32. The Standard & Poor's 500
Index was up 1.08 points, or 0.08%, at 1,361.76. But the Nasdaq
Composite Index was down 15.10 points, or 0.61%, at 2,459.46.
A surge in global commodity prices led by crude oil spooked stocks
across the globe in the past few days. In India, foreign funds have
pressed heavy sales. FIIs sold shares worth a net Rs 2984.20 core
in the first few days of this month, till 6 June 2008. They had
dumped stocks worth a net Rs 5011.50 crore in May 2008. Their
outflow in calendar 2008 reached Rs 18660.60 crore, till 6 June
2008. There has been heavy buying by domestic funds led by
insurance firms in the past few days, but that has failed to stop
the slide on the bourses.
Brokerage earnings downgrades of Indian firms/stock prices amid
rising input and interest costs for India Inc, high inflation and
drying up of global liquidity due to credit crisis remain major
concern for the Indian stock market. If inflation remains high, the
Reserve Bank of India (RBI) would be forced to hike repo rate - a
move that could choke overall growth of the economy. The Indian
industry and consumer have already been reeling under high interest
rates over the past few months. A further hike in rates would raise
interest costs of corporate India and hit bottomline.
After 10 days of debate, the Union government on Wednesday, 4 June
2008 agreed to raise retail petrol and diesel prices by about 10%,
more than expected, to help curb losses at its state-owned
refiners. A sharp fall in the rupee against the dollar in the past
few days has heightened concerns about inflation. This is because
the fall in rupee will raise cost of imports which in turn will
result in further rise in inflation.
According to rating agency CRISIL, headline inflation is expected
to increase by 95 basis points on account of direct and indirect
effects of the fuel price hike. The indirect impact which will be
felt over the course of the next few months, it states in a note.
A well distributed monsoon will bolster food production, helping
douse inflation. Agricultural output in India depends on good
rains. The Indian Meteorological Department (IMD)'s second monsoon
forecast for the crucial annual south-west monsoon (June-September)
due this months which may indicate spatial rainfall distribution in
the main sowing month of July 2008, will be keenly watched by
market men. The IMD has forecast the 2008 monsoon rains would be
near-normal and 99% of the average between 1941 and 1990.
A section of the market is of the view that the central bank may
only use the reserve requirement route to tame inflation, fearing
any hike in rates would further hurt growth already seen moderating
to a still strong 8%-8.5% this fiscal year from 9% in 2007/08. To
rein in inflation, in its monetary policy review for 2008-09 on 29
April 2008, the RBI raised cash reserve ratio (CRR) by 25 basis
points to 8.25% to suck out excess liquidity in the banking system.
RBI often says pass-through of high global oil prices is incomplete
in India, complicating policy making.
According to a latest monthly June 2008 strategy report by HSBC
Global Research, a possibility of Left parties withdrawing support
to the government at the centre over the fuel price hike issue,
cannot be ruled out. In such an environment with prospects of
mid-term polls, the stock market is likely to remain nervous, HSBC
says. Parliamentary elections are due in India in May 2009. HSBC's
2008 year-end (calendar year) target for Sensex is 17,500, compared
to current Sensex level of 15,066.10.
Another near term trigger for the market will be corporate advance
tax payments for the first installment which falls due on 15 June
2008. The income tax law requires a company to 15% the estimated
tax liability for the year as advance tax in the first installment.
The advance tax payment by the corporate sector will give a cue on
Q1 June 2008 results.
Market may also be keeping a watch on the industrial production
numbers for April 2008, which the government will unveil on
Thursday, 12 June 2008, which will give a cue on the extent of
slowdown in the Indian economy caused by high interest rates.
The BSE Sensex may fall to a 10-month low of around 13,000 points
by end-2008, as the Reserve Bank of India may raise interest rates
to check inflation due to record oil prices, Credit Suisse said on
Monday, 9 June 2008. "The market is still not pricing in the much
lower earnings growth being forecast by corporates and banks,"
Nilesh Jasani, head of research at the Indian unit of the Swiss
bank told reporters at a briefing on Monday, 9 June 2008.
Uncertainty ahead of national elections will also weigh on the
minds of investors, Jasani said.
the barometer index BSE Sensex and the S&P CNX Nifty had tumbled to
its lowest in 2008 in mid-afternoon trade. Weakness in global
markets weighed on the domestic bourses. The market breadth was
weak. Healthcare stocks and shares of public sector oil marketing
firms rose even as IT, realty and banking stocks declined.
The 30-share BSE Sensex lost 176.85 points or 1.17% at 14,889.25,
its lowest close since mid-March 2008. At the day's low of
14,645.31 the Sensex lost 420.79 points in mid-afternoon trade,
falling below its previous year 2008 low of 14,677.24 hit 18 March
2008.
Earlier, after opening on a subdued note on weak global cues, the
market had recovered to trade in green for a brief period. At the
day's high of 15,088.03 Sensex gained 21.93 points in early trade.
The broader based S&P CNX Nifty was down 41.25 points or 1.14% at
4,449.80. Nifty hit new year 2008 low of 4369.80 today. Nifty June
2008 futures were at 4453, at a premium of 3.20 points as compared
to spot closing of 4449.80.
The BSE clocked a turnover of Rs 5,265 crore today as compared to a
turnover of Rs 5,053.75 crore on Monday, 9 June 2008. NSE's futures
& options (F&O) segment turnover was Rs 53,893.30 crore, which was
lower than Rs 58,333.52 crore on Monday, 9 June 2008.
The market breadth was weak on BSE with 964 shares advancing as
compared to 1,667 that declined. 68 remained unchanged. Among the
30 stocks from Sensex pack, 21 were trading in red.
The BSE Mid-Cap index fell 1.08% to 6,103.83 and BSE Small-Cap
index fell 1.02% to 7,341.16.
All the sectoral indices on BSE ended with losses except the BSE
HealthCare index. BSE IT index (down 2.75% to 4,283.96), BSE Bankex
(down 2.43% at 6,862.33), BSE Consumer Durables index (down 2.37%
to 3,840.96), The BSE Realty index (down 2.11% at 5,630.61), BSE
TecK index (down 1.94% to 3,323.17), BSE FMCG index (down 1.58% to
2,276.59), BSE PSU index (down 1.23% to 6,390.28) underperformed
Sensex.
BSE HealthCare index (up 2.16% at 4,411.91), BSE Oil & Gas index
(up 0.15% to 9,691.22), The BSE Auto (down 0.1% at 4,119.58), BSE
Capital Goods (down 0.16% at 11,617.57), BSE Power index (down
0.47% to 2,606.96), BSE Metal index (down 0.8% to 15,265.92), BSE
FMCG index (down 1.58% to 2,276.59), outperformed the Sensex.
Bharat Heavy Electricals (up 0.54% to Rs 1,382.05), Reliance
Industries (RIL) (up 1.68% to Rs 2,199.40), Ambuja Cements (up
0.43% to Rs 82.30) and ACC (up 0.55% to Rs 616.40) edged higher
from the Sensex pack.
ONGC (down 4.74% to Rs 831.25), HDFC (down 4.79% to Rs 2,101),
Jaiprakash Associates (down 3.54% to Rs 177.15), Reliance
Infrastructure (down 2.59% to Rs 1,011.60), Tata Motors (down 0.81%
to Rs 512.90) edged lower from the Sensex pack.
Consumer durables stocks declined. Rajesh Exports (down 6.53% to Rs
70.85), Titan Industries (down 3.73% to Rs 1,088), Blue Star (down
3.26% to Rs 390) and Gitanjali Gems (down 1.13% to Rs 266) edged
lower.
Banking stocks fell extending their recent sharp losses on concerns
of further policy tightening of the monetary policy by the Reserve
Bank of India to rein in inflation which is at its highest level in
nearly four years. HDFC Bank (4.96% to Rs 1,130.95), State Bank of
India (down 1.06% to Rs 1,279.10) and ICICI Bank (down 2.47% to Rs
731.60) edged lower.
Realty stocks extended yesterday's huge losses. Indiabulls Real
Estate (down 1.82% to Rs 391.15), Unitech (down 3.03% to Rs 179.20)
and DLF (down 0.35% to Rs 479.85) edged lower.
Software services companies, which get more than half their revenue
from the United States, fell on signs the US economy was heading
for stagflation. BSE IT index was the top loser from the sectoral
indices on BSE. It was down 2.75% to 4,283.96. Infosys (down 2.89%
to Rs 1,849.10), Tata Consultancy Services (down 3.89% to Rs
880.05), Satyam Computer Services (down 2.76% to Rs 477.90), and
Wipro (down 1.46% to Rs 473.55) edged lower.
Healthcare stocks rose. Ranbaxy Laboratories (up 6.53% to Rs
560.75), Cipla (up 2.13% to Rs 211.05), Dr. Reddy's Laboratories
(up 0.54% to Rs 696.50) edged higher.
Shares of oil state-run oil marketing firms rose today after
witnessing heavy battering over the past few days. HPCL (up 1.86%
to Rs 196.90), BPCL (up 2.24% to Rs 284.65) and Indian Oil
Corporation (up 0.91% to Rs 366.55) edged higher.
IFCI clocked the highest volume of 1.85 crore shares on BSE.
Reliance Petroleum (1.36 crore shares), Ispat Industries (1.34
crore shares), Reliance Natural Resources (1.31 crore shares) and
Spice Communications (1 crore shares) were other volume toppers in
that order.
Reliance Industries clocked the highest turnover of Rs 281.98 crore
on BSE. Reliance Capital (Rs 261.73 crore), Reliance Petroleum (Rs
23.74 crore), Ranbaxy Laboratories ( Rs 213.44 crore) and Anu's
Laboratories (Rs 167.13 crore) were other turnover toppers in that
order.
European markets were weak. Key benchmark indices in France,
Germany and UK were down by between 0.37% to 0.59%.
Stocks dropped in Asia after US Federal Reserve Chairman Ben
Bernanke's warning on inflation on Monday, 9 June 208, fanned
expectations of higher US interest rates later this year. Key
benchmark indices in Hong Kong, Japan, China, South Korea,
Singapore and Taiwan were down by between 1.49% to 7.73%.
The Dow staged a modest rebound on Monday from Friday's nearly
400-point drop, as concerns about US consumer spending and the
troubled US housing market were eased by better-than-expected sales
figures from McDonald's Corp and a surprising gain in pending home
sales. The broader market was little changed, with a drop of more
than $4 in the price of oil helping fuel-dependent sectors such as
manufacturers, mitigating sharp losses in the financial and
technology sectors. The Dow Jones industrial average was up 70.51
points, or 0.58%, to end at 12,280.32. The Standard & Poor's 500
Index was up 1.08 points, or 0.08%, at 1,361.76. But the Nasdaq
Composite Index was down 15.10 points, or 0.61%, at 2,459.46.
A surge in global commodity prices led by crude oil spooked stocks
across the globe in the past few days. In India, foreign funds have
pressed heavy sales. FIIs sold shares worth a net Rs 2984.20 core
in the first few days of this month, till 6 June 2008. They had
dumped stocks worth a net Rs 5011.50 crore in May 2008. Their
outflow in calendar 2008 reached Rs 18660.60 crore, till 6 June
2008. There has been heavy buying by domestic funds led by
insurance firms in the past few days, but that has failed to stop
the slide on the bourses.
Brokerage earnings downgrades of Indian firms/stock prices amid
rising input and interest costs for India Inc, high inflation and
drying up of global liquidity due to credit crisis remain major
concern for the Indian stock market. If inflation remains high, the
Reserve Bank of India (RBI) would be forced to hike repo rate - a
move that could choke overall growth of the economy. The Indian
industry and consumer have already been reeling under high interest
rates over the past few months. A further hike in rates would raise
interest costs of corporate India and hit bottomline.
After 10 days of debate, the Union government on Wednesday, 4 June
2008 agreed to raise retail petrol and diesel prices by about 10%,
more than expected, to help curb losses at its state-owned
refiners. A sharp fall in the rupee against the dollar in the past
few days has heightened concerns about inflation. This is because
the fall in rupee will raise cost of imports which in turn will
result in further rise in inflation.
According to rating agency CRISIL, headline inflation is expected
to increase by 95 basis points on account of direct and indirect
effects of the fuel price hike. The indirect impact which will be
felt over the course of the next few months, it states in a note.
A well distributed monsoon will bolster food production, helping
douse inflation. Agricultural output in India depends on good
rains. The Indian Meteorological Department (IMD)'s second monsoon
forecast for the crucial annual south-west monsoon (June-September)
due this months which may indicate spatial rainfall distribution in
the main sowing month of July 2008, will be keenly watched by
market men. The IMD has forecast the 2008 monsoon rains would be
near-normal and 99% of the average between 1941 and 1990.
A section of the market is of the view that the central bank may
only use the reserve requirement route to tame inflation, fearing
any hike in rates would further hurt growth already seen moderating
to a still strong 8%-8.5% this fiscal year from 9% in 2007/08. To
rein in inflation, in its monetary policy review for 2008-09 on 29
April 2008, the RBI raised cash reserve ratio (CRR) by 25 basis
points to 8.25% to suck out excess liquidity in the banking system.
RBI often says pass-through of high global oil prices is incomplete
in India, complicating policy making.
According to a latest monthly June 2008 strategy report by HSBC
Global Research, a possibility of Left parties withdrawing support
to the government at the centre over the fuel price hike issue,
cannot be ruled out. In such an environment with prospects of
mid-term polls, the stock market is likely to remain nervous, HSBC
says. Parliamentary elections are due in India in May 2009. HSBC's
2008 year-end (calendar year) target for Sensex is 17,500, compared
to current Sensex level of 15,066.10.
Another near term trigger for the market will be corporate advance
tax payments for the first installment which falls due on 15 June
2008. The income tax law requires a company to 15% the estimated
tax liability for the year as advance tax in the first installment.
The advance tax payment by the corporate sector will give a cue on
Q1 June 2008 results.
Market may also be keeping a watch on the industrial production
numbers for April 2008, which the government will unveil on
Thursday, 12 June 2008, which will give a cue on the extent of
slowdown in the Indian economy caused by high interest rates.
The BSE Sensex may fall to a 10-month low of around 13,000 points
by end-2008, as the Reserve Bank of India may raise interest rates
to check inflation due to record oil prices, Credit Suisse said on
Monday, 9 June 2008. "The market is still not pricing in the much
lower earnings growth being forecast by corporates and banks,"
Nilesh Jasani, head of research at the Indian unit of the Swiss
bank told reporters at a briefing on Monday, 9 June 2008.
Uncertainty ahead of national elections will also weigh on the
minds of investors, Jasani said.
Lotus Eye Care Hospital Limited IPO
Public Issue Open For: June 12, 2008 to June 17, 2008
Public Issue Type: 100% Book Building
Public Issue Price: Rs 38/- to Rs 42/-
Listing at: BSE, NSE
Public Issue Type: 100% Book Building
Public Issue Price: Rs 38/- to Rs 42/-
Listing at: BSE, NSE
Archidply Industries Limited IPO
Public Issue Open For: June 11, 2008 to June 17, 2008
Public Issue Type: 100% Book Building
Public Issue Price: Rs 70/- to Rs 80/-
Listing at: BSE, NSE
Public Issue Type: 100% Book Building
Public Issue Price: Rs 70/- to Rs 80/-
Listing at: BSE, NSE
Sejal Architectural Glass Ltd IPO
Public Issue Open For: June 09, 2008 to June 12, 2008
Public Issue Type: 100% Book Building
Public Issue Price: Rs 105/- to Rs 115/-
Listing at: BSE, NSE
Bidding Info: Issue subscribed 0.32 times (0.5808 times in retail) on its first day.
Public Issue Type: 100% Book Building
Public Issue Price: Rs 105/- to Rs 115/-
Listing at: BSE, NSE
Bidding Info: Issue subscribed 0.32 times (0.5808 times in retail) on its first day.
First Winner Industries Ltd IPO
Public Issue Open For: June 09, 2008 to June 12, 2008
Public Issue Type: 100% Book Building
Public Issue Price: Rs 120/- to Rs 130/-
Listing at: BSE, NSE
Bidding Info: Issue subscribed 0.02 times (0.0034 times in retail) on its first day.
Public Issue Type: 100% Book Building
Public Issue Price: Rs 120/- to Rs 130/-
Listing at: BSE, NSE
Bidding Info: Issue subscribed 0.02 times (0.0034 times in retail) on its first day.
Avon Weighing Systems Ltd IPO
Avon Weighing Systems Ltd IPO
Public Issue Open For: June 09, 2008 to June 12, 2008
Public Issue Type: Fixed Price
Public Issue Price: Rs 10/-
Listing at: BSE
Bidding Info: This is a ‘fixed price’ issue. The bidding information will not available until public issue closes for bidding.
Public Issue Open For: June 09, 2008 to June 12, 2008
Public Issue Type: Fixed Price
Public Issue Price: Rs 10/-
Listing at: BSE
Bidding Info: This is a ‘fixed price’ issue. The bidding information will not available until public issue closes for bidding.
Post Market Report::09/06/2008)
The key benchmark indices slumped today due to a sharp surge in
global crude oil price and setback in US stocks on Friday, 6 June
2008. BSE Sensex fell below 15,000 mark for the first time since 19
March 2008, in intra-day trade. The S&P CNX Nifty hit a fresh 2008
low.
Except the BSE HealthCare index, all the other sectoral indices on
BSE were in red. The market breadth was extremely weak. IT, realty,
banking and oil & gas stocks were worst hit in today's market fall.
Oil prices surged by their biggest one-day gain ever on Friday, 6
June 2008, rocketing over $10 to a new record high above $139 a
barrel, taking this year's gains to 44%. Oil prices edged lower to
$137.7 today, 9 June 2008.
The 30-share BSE Sensex lost 506.08 points or 3.25% at 15,066.10.
At the day's low of 14846.18 hit during mid-morning trade, the
Sensex lost 726 points.
The broader based S&P CNX Nifty was down 126.85 points or 2.74% at
4,500.95. It hit a low of 4411.60 today in mid-morning trade,
falling below 2008 low of 4448.50 hit on 22 January 2008.
From a all-time high of 21,206.77 hit on 10 January 2008 the Sensex
has lost 6240.67 points or 28.95% to 15066.10. The Sensex has lost
5220.89 points or 25.73% to 15066.10.
BSE clocked a turnover of Rs 5039 crore today compared to a
turnover of Rs 5245.26 crore on Friday 6 June 2008.
Nifty June 2008 futures were at 4486.90, at a discount of 14.05
points as compared to spot closing of 4500.95. NSE's futures &
options (F&O) segment turnover was Rs 58,333.52 crore, which was
higher than Rs 42,888.38 crore on Friday, 6 June 2008.
The market breadth was extremely weak on BSE with 474 shares
advancing as compared to 2170 that declined. 49 remained unchanged.
From the 30-share Sensex pack, 27 fell.
The BSE Mid Cap index declined 2.83% to 6,170.33 and BSE Small-Cap
index fell 3.63% to 7,416.54.
All the sectoral indices on BSE ended with losses except the BSE
Health Care index. BSE Health Care index (up 0.53% at 4,318.75),
BSE Metal index (down 0.81% to 15,389.61), BSE Consumer Durables
index (down 1.69% to 3,934.04), BSE FMCG index (down 2.06% to
2,313.24), The BSE Auto (down 2.45% at 4,123.64), BSE PSU index
(down 2.95% to 6,469.82), BSE Power (down 2.99% to 2,619.28), BSE
Bankex (down 3.21% at 7,033.32), BSE TecK index (down 3.12% to
3,388.89), outperformed the Sensex.
The BSE Realty index (down 7.38% at 5,752.22), BSE IT index (down
4.21% to 4,404.98), BSE Capital Goods (down 3.3% at 11,635.63), BSE
FMCG index (down 2.65% to 2,361.88), BSE Oil & Gas index (down
3.29% to 9,676.55) underperformed the Sensex.
Among pharma stocks, Lupin (up 8.05% to Rs 701.70), Ranbaxy
Laboratories (up 3.87% to Rs 526.40), Sun Pharmaceuticals
Industries (up 2.72% to Rs 1,457.35) and Piramal HealthCare (up
2.89% to Rs 375.55) edged higher. Cipla (down 0.36% to Rs 206.65)
and Dr. Reddy's Laboratories (down 0.07% to Rs 692.75) edged lower.
BSE Realty index was down 7.38% to 5,752.22. It was the top loser
from the sectoral indices on BSE. Unitech (down 9.3% to Rs 184.80),
Indiabulls Real Estate (down 6.06% to Rs 398.40) and DLF (down
7.39% to Rs 481.55) edged lower from the realty pack.
IT stocks declined. Wipro (down 4.85% to Rs 480.50), Infosys (down
4.46% to Rs 1,904.05), Tata Consultancy Services (down 4.56% to Rs
915.65) and Satyam Computer Services (down 3.42% to Rs 491.45)
edged lower.
Banking stocks declined. HDFC Bank (down 4.34% to Rs 1,183.70),
State Bank of India (down 3.17% to Rs 1292.80) and ICICI Bank (down
2.69%t o Rs 75.10) edged lower.
Oil & gas stocks fell after global crude oil prices hit the roof.
PSU oil marketing companies which had found little solace after
government had hiked domestic retail fuel prices were battered
today. HPCL (down 9.21% to Rs 193.30), BPCL (down 7.09% to Rs
278.40), and Indian Oil Corporation (down 3.9% to Rs 363.25) edged
lower. Reliance Industries (down 3.41% to Rs 2163.10) and ONGC
(down 7.02% to Rs 872.60) also edged lower.
India's second largest telecom services provider by sales Reliance
Communication rose 1.34% to Rs 554.10. The stock recovered from
session's low of Rs 507.90. Reliance Communication (RCom) and the
South African telco MTN will reportedly decide the share swap ratio
at which Anil Ambani will transfer his stake in RCom to get stake
in MTN. Both the companies have reportedly agreed for the deal,
which will result in RCom promoter viz. the Anil Dhirubhai Group
(ADAG) emerging as the single-largest shareholder in MTN and the
foreign company becoming the holding firm of RCom.
Jaiprakash Associates (down 8.65% to Rs 183.65), HDFC (down 5.99%
to Rs 2206.65), Reliance Infrastructure (down 5.65% to Rs
1,038.85), Tata Motors (down 4.25% to Rs 517.10), Ambuja Cements
(down 4.1% to Rs 81.95), Bharat Heavy Electricals (down 3.29% to Rs
1,374.65), edged lower from the Sensex pack.
IFCI clocked the highest volume of 1.92 crore shares on BSE.
Reliance Petroleum (1.51 crore shares), Reliance Natural Resources
(1.14 crore shares), Ispat Industries (1.05 crore shares) and Cairn
India (74.54 lakh shares) were the other volume toppers in that
order.
Reliance Industries clocked the highest turnover of Rs 372.06 crore
on BSE. Reliance Petroleum (Rs 252.55 crore), Cairn India (Rs
222.75 crore), Reliance Communications (Rs 214.36 crore) and
Reliance Capital (Rs 211.24 crore) were the other turnover toppers
in that order.
US stocks plunged on Friday, 6 June 2008, marking the Dow's worst
day in 15 months, after the US government said the May 2008
unemployment rate jumped the most in 22 years and oil prices shot
to another record, renewing fears that the US economy faces
1970s-style stagflation. The Dow Jones industrial average tanked
394.64 points, or 3.13% to end at 12,209.81, its biggest drop since
February 2007. The S&P 500 slid 43.37 points, or 3.09%, to finish
the day at 1,360.68. The Nasdaq Composite Index lost 75.38 points,
or 2.96 percent, to close at 2,474.56.
European markets were trading mixed today. Key benchmark indices in
France and Germany were down by between 0.08% to 0.09%. The UK"S
FTSE 100 however rose by 0.18%.
In Asia, key benchmark indices in Japan, South Korea, Singapore and
Taiwan were down by between 1.27% to 2.13% today. Markets in China,
Hong Kong and the Philippines were closed for public holidays.
Surging global crude oil prices, a hike in domestic fuel prices and
rising inflation have spooked the domestic bourses in the past few
days. Foreign institutional investors (FIIs) pressed heavy sales in
the backdrop of a weakening rupee against the dollar, accentuating
fall in share prices.
Brokerage earnings downgrades of Indian firms/stock prices amid
rising input and interest costs for India Inc, high inflation and
drying up of global liquidity due to credit crisis remain major
concern for the Indian stock market. If inflation remains high, the
Reserve Bank of India (RBI) would be forced to hike repo rate - a
move that could choke overall growth of the economy. The Indian
industry and consumer have already been reeling under high interest
rates over the past few months. A further hike in rates would raise
interest costs of corporate India and hit bottomline.
After 10 days of debate, the Union government on Wednesday, 4 June
2008 agreed to raise retail petrol and diesel prices by about 10%,
more than expected, to help curb losses at its state-owned
refiners. A sharp fall in the rupee against the dollar in the past
few days has heightened concerns about inflation. This is because
the fall in rupee will raise cost of imports which in turn will
result in further rise in inflation.
According to rating agency CRISIL, headline inflation is expected
to increase by 95 basis points on account of direct and indirect
effects of the fuel price hike. The indirect impact which will be
felt over the course of the next few months, it states in a note.
A well distributed monsoon will bolster food production, helping
douse inflation. Agricultural output in India depends on good
rains. The Indian Meteorological Department (IMD)'s second monsoon
forecast for the crucial annual south-west monsoon (June-September)
due this months which may indicate spatial rainfall distribution in
the main sowing month of July 2008, will be keenly watched by
market men. The IMD has forecast the 2008 monsoon rains would be
near-normal and 99% of the average between 1941 and 1990.
A section of the market is of the view that the central bank may
only use the reserve requirement route to tame inflation, fearing
any hike in rates would further hurt growth already seen moderating
to a still strong 8%-8.5% this fiscal year from 9% in 2007/08. To
rein in inflation, in its monetary policy review for 2008-09 on 29
April 2008, the RBI raised cash reserve ratio (CRR) by 25 basis
points to 8.25% to suck out excess liquidity in the banking system.
RBI often says pass-through of high global oil prices is incomplete
in India, complicating policy making.
Another near term trigger for the market will be corporate advance
tax payments for the first installment which falls due on 15 June
2008. The income tax law requires a company to 15% the estimated
tax liability for the year as advance tax in the first installment.
The advance tax payment by the corporate sector will give a cue on
Q1 June 2008 results.
Market may will also be keeping a watch on the industrial
production numbers for April 2008, which the government will unveil
on Thursday, 12 June 2008, which will give a cue on the extent of
slowdown in the Indian economy caused by high interest rates.
global crude oil price and setback in US stocks on Friday, 6 June
2008. BSE Sensex fell below 15,000 mark for the first time since 19
March 2008, in intra-day trade. The S&P CNX Nifty hit a fresh 2008
low.
Except the BSE HealthCare index, all the other sectoral indices on
BSE were in red. The market breadth was extremely weak. IT, realty,
banking and oil & gas stocks were worst hit in today's market fall.
Oil prices surged by their biggest one-day gain ever on Friday, 6
June 2008, rocketing over $10 to a new record high above $139 a
barrel, taking this year's gains to 44%. Oil prices edged lower to
$137.7 today, 9 June 2008.
The 30-share BSE Sensex lost 506.08 points or 3.25% at 15,066.10.
At the day's low of 14846.18 hit during mid-morning trade, the
Sensex lost 726 points.
The broader based S&P CNX Nifty was down 126.85 points or 2.74% at
4,500.95. It hit a low of 4411.60 today in mid-morning trade,
falling below 2008 low of 4448.50 hit on 22 January 2008.
From a all-time high of 21,206.77 hit on 10 January 2008 the Sensex
has lost 6240.67 points or 28.95% to 15066.10. The Sensex has lost
5220.89 points or 25.73% to 15066.10.
BSE clocked a turnover of Rs 5039 crore today compared to a
turnover of Rs 5245.26 crore on Friday 6 June 2008.
Nifty June 2008 futures were at 4486.90, at a discount of 14.05
points as compared to spot closing of 4500.95. NSE's futures &
options (F&O) segment turnover was Rs 58,333.52 crore, which was
higher than Rs 42,888.38 crore on Friday, 6 June 2008.
The market breadth was extremely weak on BSE with 474 shares
advancing as compared to 2170 that declined. 49 remained unchanged.
From the 30-share Sensex pack, 27 fell.
The BSE Mid Cap index declined 2.83% to 6,170.33 and BSE Small-Cap
index fell 3.63% to 7,416.54.
All the sectoral indices on BSE ended with losses except the BSE
Health Care index. BSE Health Care index (up 0.53% at 4,318.75),
BSE Metal index (down 0.81% to 15,389.61), BSE Consumer Durables
index (down 1.69% to 3,934.04), BSE FMCG index (down 2.06% to
2,313.24), The BSE Auto (down 2.45% at 4,123.64), BSE PSU index
(down 2.95% to 6,469.82), BSE Power (down 2.99% to 2,619.28), BSE
Bankex (down 3.21% at 7,033.32), BSE TecK index (down 3.12% to
3,388.89), outperformed the Sensex.
The BSE Realty index (down 7.38% at 5,752.22), BSE IT index (down
4.21% to 4,404.98), BSE Capital Goods (down 3.3% at 11,635.63), BSE
FMCG index (down 2.65% to 2,361.88), BSE Oil & Gas index (down
3.29% to 9,676.55) underperformed the Sensex.
Among pharma stocks, Lupin (up 8.05% to Rs 701.70), Ranbaxy
Laboratories (up 3.87% to Rs 526.40), Sun Pharmaceuticals
Industries (up 2.72% to Rs 1,457.35) and Piramal HealthCare (up
2.89% to Rs 375.55) edged higher. Cipla (down 0.36% to Rs 206.65)
and Dr. Reddy's Laboratories (down 0.07% to Rs 692.75) edged lower.
BSE Realty index was down 7.38% to 5,752.22. It was the top loser
from the sectoral indices on BSE. Unitech (down 9.3% to Rs 184.80),
Indiabulls Real Estate (down 6.06% to Rs 398.40) and DLF (down
7.39% to Rs 481.55) edged lower from the realty pack.
IT stocks declined. Wipro (down 4.85% to Rs 480.50), Infosys (down
4.46% to Rs 1,904.05), Tata Consultancy Services (down 4.56% to Rs
915.65) and Satyam Computer Services (down 3.42% to Rs 491.45)
edged lower.
Banking stocks declined. HDFC Bank (down 4.34% to Rs 1,183.70),
State Bank of India (down 3.17% to Rs 1292.80) and ICICI Bank (down
2.69%t o Rs 75.10) edged lower.
Oil & gas stocks fell after global crude oil prices hit the roof.
PSU oil marketing companies which had found little solace after
government had hiked domestic retail fuel prices were battered
today. HPCL (down 9.21% to Rs 193.30), BPCL (down 7.09% to Rs
278.40), and Indian Oil Corporation (down 3.9% to Rs 363.25) edged
lower. Reliance Industries (down 3.41% to Rs 2163.10) and ONGC
(down 7.02% to Rs 872.60) also edged lower.
India's second largest telecom services provider by sales Reliance
Communication rose 1.34% to Rs 554.10. The stock recovered from
session's low of Rs 507.90. Reliance Communication (RCom) and the
South African telco MTN will reportedly decide the share swap ratio
at which Anil Ambani will transfer his stake in RCom to get stake
in MTN. Both the companies have reportedly agreed for the deal,
which will result in RCom promoter viz. the Anil Dhirubhai Group
(ADAG) emerging as the single-largest shareholder in MTN and the
foreign company becoming the holding firm of RCom.
Jaiprakash Associates (down 8.65% to Rs 183.65), HDFC (down 5.99%
to Rs 2206.65), Reliance Infrastructure (down 5.65% to Rs
1,038.85), Tata Motors (down 4.25% to Rs 517.10), Ambuja Cements
(down 4.1% to Rs 81.95), Bharat Heavy Electricals (down 3.29% to Rs
1,374.65), edged lower from the Sensex pack.
IFCI clocked the highest volume of 1.92 crore shares on BSE.
Reliance Petroleum (1.51 crore shares), Reliance Natural Resources
(1.14 crore shares), Ispat Industries (1.05 crore shares) and Cairn
India (74.54 lakh shares) were the other volume toppers in that
order.
Reliance Industries clocked the highest turnover of Rs 372.06 crore
on BSE. Reliance Petroleum (Rs 252.55 crore), Cairn India (Rs
222.75 crore), Reliance Communications (Rs 214.36 crore) and
Reliance Capital (Rs 211.24 crore) were the other turnover toppers
in that order.
US stocks plunged on Friday, 6 June 2008, marking the Dow's worst
day in 15 months, after the US government said the May 2008
unemployment rate jumped the most in 22 years and oil prices shot
to another record, renewing fears that the US economy faces
1970s-style stagflation. The Dow Jones industrial average tanked
394.64 points, or 3.13% to end at 12,209.81, its biggest drop since
February 2007. The S&P 500 slid 43.37 points, or 3.09%, to finish
the day at 1,360.68. The Nasdaq Composite Index lost 75.38 points,
or 2.96 percent, to close at 2,474.56.
European markets were trading mixed today. Key benchmark indices in
France and Germany were down by between 0.08% to 0.09%. The UK"S
FTSE 100 however rose by 0.18%.
In Asia, key benchmark indices in Japan, South Korea, Singapore and
Taiwan were down by between 1.27% to 2.13% today. Markets in China,
Hong Kong and the Philippines were closed for public holidays.
Surging global crude oil prices, a hike in domestic fuel prices and
rising inflation have spooked the domestic bourses in the past few
days. Foreign institutional investors (FIIs) pressed heavy sales in
the backdrop of a weakening rupee against the dollar, accentuating
fall in share prices.
Brokerage earnings downgrades of Indian firms/stock prices amid
rising input and interest costs for India Inc, high inflation and
drying up of global liquidity due to credit crisis remain major
concern for the Indian stock market. If inflation remains high, the
Reserve Bank of India (RBI) would be forced to hike repo rate - a
move that could choke overall growth of the economy. The Indian
industry and consumer have already been reeling under high interest
rates over the past few months. A further hike in rates would raise
interest costs of corporate India and hit bottomline.
After 10 days of debate, the Union government on Wednesday, 4 June
2008 agreed to raise retail petrol and diesel prices by about 10%,
more than expected, to help curb losses at its state-owned
refiners. A sharp fall in the rupee against the dollar in the past
few days has heightened concerns about inflation. This is because
the fall in rupee will raise cost of imports which in turn will
result in further rise in inflation.
According to rating agency CRISIL, headline inflation is expected
to increase by 95 basis points on account of direct and indirect
effects of the fuel price hike. The indirect impact which will be
felt over the course of the next few months, it states in a note.
A well distributed monsoon will bolster food production, helping
douse inflation. Agricultural output in India depends on good
rains. The Indian Meteorological Department (IMD)'s second monsoon
forecast for the crucial annual south-west monsoon (June-September)
due this months which may indicate spatial rainfall distribution in
the main sowing month of July 2008, will be keenly watched by
market men. The IMD has forecast the 2008 monsoon rains would be
near-normal and 99% of the average between 1941 and 1990.
A section of the market is of the view that the central bank may
only use the reserve requirement route to tame inflation, fearing
any hike in rates would further hurt growth already seen moderating
to a still strong 8%-8.5% this fiscal year from 9% in 2007/08. To
rein in inflation, in its monetary policy review for 2008-09 on 29
April 2008, the RBI raised cash reserve ratio (CRR) by 25 basis
points to 8.25% to suck out excess liquidity in the banking system.
RBI often says pass-through of high global oil prices is incomplete
in India, complicating policy making.
Another near term trigger for the market will be corporate advance
tax payments for the first installment which falls due on 15 June
2008. The income tax law requires a company to 15% the estimated
tax liability for the year as advance tax in the first installment.
The advance tax payment by the corporate sector will give a cue on
Q1 June 2008 results.
Market may will also be keeping a watch on the industrial
production numbers for April 2008, which the government will unveil
on Thursday, 12 June 2008, which will give a cue on the extent of
slowdown in the Indian economy caused by high interest rates.
Monday, June 9, 2008
Pre Market Report 09/06/2008
A sharp surge in oil price on Friday, 6 June 2008, and a setback in global equity markets, are set to send share prices on the domestic bourses reeling today. US stocks plunged on Friday, 6 June 2008, marking the Dow's worst day in 15 months, after the US government said the May 2008 unemployment rate jumped the most in 22 years and oil prices shot to another record, renewing fears that the US economy faces 1970s-style stagflation. Oil prices surged by their biggest real one-day gain ever on Friday, 6 June 2008, rocketing over $10 to a new record high above $139 a barrel, taking this year's gains to 44%. Oil prices edged lower to $137.7 today, 9 June 2008.
Surging global crude oil prices, a hike in domestic fuel prices and rising inflation have spooked the domestic bourses in the past few days. Foreign institutional investors (FIIs) pressed heavy sales in the backdrop of a weakening rupee against the dollar, accentuating fall in share prices. From a recent high of 17,434.94 on 16 May 2008, the barometer index, BSE Sensex tanked 1,862.76 points or 10.68% in a short span to 15,572.18 on 6 June 2008.
FIIs sold shares worth a net Rs 3291.20 core in the first few days of this month, till 5 June 2008. They had dumped stocks worth a net Rs 5011.50 crore in May 2008. Their outflow in calendar 2008 reached Rs 18660.60 crore, till 5 June 2008. There has been heavy buying by domestic funds led by insurance firms in the past few days, but that has failed to stop the slide on the bourses.
Brokerage earnings downgrades of Indian firms/stock prices amid rising input and interest costs for India Inc, high inflation and drying up of global liquidity due to credit crisis remain major concern for the Indian stock market. If inflation remains high, the Reserve Bank of India (RBI) would be forced to hike repo rate - a move that could choke overall growth of the economy. The Indian industry and consumer have already been reeling under high interest rates over the past few months. A further hike in rates would raise interest costs of corporate India and hit bottomline.
After 10 days of debate, the Union government on Wednesday, 4 June 2008 agreed to raise retail petrol and diesel prices by about 10%, more than expected, to help curb losses at its state-owned refiners. A sharp fall in the rupee against the dollar in the past few days has heightened concerns about inflation. This is because the fall in rupee will raise cost of imports which in turn will result in further rise in inflation.
According to rating agency CRISIL, headline inflation is expected to increase by 95 basis points on account of direct and indirect effects of the fuel price hike. The indirect impact which will be felt over the course of the next few months, it states in a note.
A well distributed monsoon will bolster food production, helping douse inflation. Agricultural output in India depends on good rains. The Indian Meteorological Department (IMD)'s second monsoon forecast for the crucial annual south-west monsoon (June-September) due this months which may indicate spatial rainfall distribution in the main sowing month of July 2008, will be keenly watched by market men. The IMD has forecast the 2008 monsoon rains would be near-normal and 99% of the average between 1941 and 1990.
A section of the market is of the view that the central bank may only use the reserve requirement route to tame inflation, fearing any hike in rates would further hurt growth already seen moderating to a still strong 8%-8.5% this fiscal year from 9% in 2007/08. To rein in inflation, in its monetary policy review for 2008-09 on 29 April 2008, the RBI raised cash reserve ratio (CRR) by 25 basis points to 8.25% to suck out excess liquidity in the banking system. RBI often says pass-through of high global oil prices is incomplete in India, complicating policy making.
Another near term trigger for the market will be corporate advance tax payments for the first installment which falls due on 15 June 2008. The income tax law requires a company to 15% the estimated tax liability for the year as advance tax in the first installment. The advance tax payment by the corporate sector will give a cue on Q1 June 2008 results.
Surging global crude oil prices, a hike in domestic fuel prices and rising inflation have spooked the domestic bourses in the past few days. Foreign institutional investors (FIIs) pressed heavy sales in the backdrop of a weakening rupee against the dollar, accentuating fall in share prices. From a recent high of 17,434.94 on 16 May 2008, the barometer index, BSE Sensex tanked 1,862.76 points or 10.68% in a short span to 15,572.18 on 6 June 2008.
FIIs sold shares worth a net Rs 3291.20 core in the first few days of this month, till 5 June 2008. They had dumped stocks worth a net Rs 5011.50 crore in May 2008. Their outflow in calendar 2008 reached Rs 18660.60 crore, till 5 June 2008. There has been heavy buying by domestic funds led by insurance firms in the past few days, but that has failed to stop the slide on the bourses.
Brokerage earnings downgrades of Indian firms/stock prices amid rising input and interest costs for India Inc, high inflation and drying up of global liquidity due to credit crisis remain major concern for the Indian stock market. If inflation remains high, the Reserve Bank of India (RBI) would be forced to hike repo rate - a move that could choke overall growth of the economy. The Indian industry and consumer have already been reeling under high interest rates over the past few months. A further hike in rates would raise interest costs of corporate India and hit bottomline.
After 10 days of debate, the Union government on Wednesday, 4 June 2008 agreed to raise retail petrol and diesel prices by about 10%, more than expected, to help curb losses at its state-owned refiners. A sharp fall in the rupee against the dollar in the past few days has heightened concerns about inflation. This is because the fall in rupee will raise cost of imports which in turn will result in further rise in inflation.
According to rating agency CRISIL, headline inflation is expected to increase by 95 basis points on account of direct and indirect effects of the fuel price hike. The indirect impact which will be felt over the course of the next few months, it states in a note.
A well distributed monsoon will bolster food production, helping douse inflation. Agricultural output in India depends on good rains. The Indian Meteorological Department (IMD)'s second monsoon forecast for the crucial annual south-west monsoon (June-September) due this months which may indicate spatial rainfall distribution in the main sowing month of July 2008, will be keenly watched by market men. The IMD has forecast the 2008 monsoon rains would be near-normal and 99% of the average between 1941 and 1990.
A section of the market is of the view that the central bank may only use the reserve requirement route to tame inflation, fearing any hike in rates would further hurt growth already seen moderating to a still strong 8%-8.5% this fiscal year from 9% in 2007/08. To rein in inflation, in its monetary policy review for 2008-09 on 29 April 2008, the RBI raised cash reserve ratio (CRR) by 25 basis points to 8.25% to suck out excess liquidity in the banking system. RBI often says pass-through of high global oil prices is incomplete in India, complicating policy making.
Another near term trigger for the market will be corporate advance tax payments for the first installment which falls due on 15 June 2008. The income tax law requires a company to 15% the estimated tax liability for the year as advance tax in the first installment. The advance tax payment by the corporate sector will give a cue on Q1 June 2008 results.
Friday, June 6, 2008
Post Market Report:: 05/06/2008
Frenzied buying coupled with short covering after three straight
day's of fall triggered a solid rally in late trade. Reports of
Prime Minister's resignation had spooked a sell-off in mid-morning
trade. Despite the rally, the market breadth remained negative. The
market witnessed choppy swings throughtout the day. Global cues
were mixed.
Earlier today, the market saw firm start despite weak global cues,
but slipped in red shortly on fresh selling. The market breadth was
weak. Shares from oil, realty, declined while those from IT, FMCG
and power rallied.
The 30-share BSE Sensex ended up 254.93 points or 1.64% at
15,769.72. Sensex gained 300.01 points at its high of 15814.80
touched during late trade. It lost 200.72 points at day's low of
15,314.02, touched in mid-morning trade.
The BSE Sensex had eroded 900.78 points or 5.48% from 16,415.57 in
past three trading days to 15,514.79 on 4 June 2008. Fears of early
election, uncertainity over fuel price hike and weak global markets
played the spoilsport.
The broader based S&P CNX Nifty was up 91.35 points or 1.99% to
4,676.95. Nifty June 2008 futures were at 4671, at a discount of
5.95 points as compared to spot closing.
The market breadth was negative on BSE with 1240 shares advancing
as compared to 1397 that declined. 77 remained unchanged.
The BSE Mid-Cap index rose 0.05% to 6400.29 and BSE Small-Cap index
rose 0.2% to 7,735.5961. Both these indices underperformed the
Sensex.
BSE clocked a turnover of Rs 5578 crore today as compared to a
turnover of Rs 6461.80 crore on 4 June 2008.
The NSE futures & options (F&O) segment turnover was Rs 51017.9
crore, which was higher than Rs 48,378.31 crore on Wednesday, 4
June 2008.
Among the sectoral indices on BSE, the BSE Consumer Durables index
(down 1.42% to 4,031.72), BSE Realty index (down 0.99% at
6,326.05), BSE Auto (down 0.08% at 4,222.01), The BSE Oil & Gas
index (up 0.02% to 10,061.83), BSE Capital Goods index (down 0.03%
at 12,111.63), underperformed Sensex.
However the BSE IT index (up 5.01% to 4,617.44), BSE TecK index (up
3.45% to 3,525.65), BSE Power (up 2.89% to 2,708.49), BSE FMCG
index (up 2.48% to 2,426.16), BSE Bankex (up 1.92% at 7,348.58),
BSE Health Care index (up 1.9% at 4,345.89), BSE Metal index (up
1.89% to 15,714.59), BSE PSU index (up 1.84% to 6,719.54),
outperformed the Sensex.
Among the 30-member Sensex pack, 22 advanced while the rest
slipped.
IT stocks were the stars of the day's trading session, boosted by
firm US dollar against Indian rupee. Wipro (up 6.25% to Rs 528.40),
Satyam Computer Services (up 5.47% to Rs 512.20) and TCS (up 2.57%
to Rs 982.75) edged higher.
India's second largest software services exporter Infosys jumped
5.86% to Rs 1979.70 on reports the firm is eyeing acquisitions in
Europe to reaccelerate its growth. However the target company's
name and size was not disclosed in the report.
Sahara Housing Finance Corporation was locked at 5% lower circuit
filter at Rs 178 after the Reserve Bank of India banned a group
financial firm Sahara India Financial Corporation from accepting
public deposits after it was found guilty in violating various
regulatory norms.
Mercator Lines soared 12.70% to Rs 118.50 after its Singapore-based
unit bagged a renewed 4-year contract from Tata Power worth $320
million.
National Aluminium Company advanced 4.90% at Rs 501.75 on BSE on
reports the firms plans massive investment of around Rs 40,000
crore in next five years in its various expansion projects.
Shares of upstream companies rallied after the subsidy burden that
they have to bear became clear post fuel price hike announced
yesterday, 4 June 2008, which had remained uncertain until now.
Oil and Natural Gas Corporation soared 7.46% to Rs 953.20 and Gail
India jumped 7.39% to Rs 398.30.
Upstream oil companies ONGC and GAIL India absorb most of subsidy
burden arising in the form of under-recoveries of oil marketing
companies. The duo will now have to bear Rs 45,000 crore in subsidy
burden, which is at historically high levels.
However the public sector oil-marketing companies extended losses
today after yesterday's fuel price hike. HPCL (down 6.26% to Rs
226.30), Indian Oil Corporation (down 6.29% to Rs 391.90) and BPCL
(down 7.01% to Rs 301.35) edged lower.
Power stocks advanced on fresh buying. Tata Power Company (up 7.79%
to Rs 1256.65), NTPC (up 5.57% to Rs 166.65), Reliance
Infrastructure (up 5.68% to Rs 1130.85) edged higher.
FMCG stocks rose. Tata Tea (up 5.02% to Rs 816.30), Hindustan
Unilever (up 3.23% to Rs 237.85), ITC (up 2.89% to Rs 222.35) edged
higher.
Jaiprakash Associates (up 3.68% to Rs 205.60), Grasim Industries
(up 3.19% to Rs 2,246.30), Tata Steel (up 3.1% to Rs 840.90), ICICI
Bank (up 3.09% to Rs 781.25), HDFC Bank (up 2.22% to Rs 1,243),
were the top gainers from Sensex pack.
Tata Motors (down 1.82% to Rs 532.60), Larsen & Toubro (down 1.6%
to Rs 2,721.20), Ambuja Cements (down 1.89% to Rs 85.85), Reliance
Industries (down 2.58% to Rs 2247.65), were the top losers from
Sensex pack.
Interest rate sensitive realty sector declined on fears of hike in
interest rates or CRR after inflation may rally to double-digit
post fuel price hike announced yesterday, 4 June 2008.
Indiabulls Real Estate (down 1.6% to Rs 405.45), Phoenix Mills
(down 3.99% to Rs 319) and DLF (down 3 % to Rs 538.45) edged lower
from realty pack.
India's largest maker of utility vehicles, Mahindra and Mahindra
(M&M) declined 0.92% to Rs 562.75. It announced signing an
agreement to acquire 100% stake in Italy based Engines Engineering.
Engines Engineering is in the business of two wheels design and
developing of motorcycle prototype.
India's second largest telecom services provider Reliance
Communications rose 1.3% to Rs 547.15. As per reports Reliance
Communications and South Africa's MTN have begun due diligence as
they inch closer to creating a global top-10 telecoms firm.
Reliance Communications has also engaged Deutsche Bank for the
possibility of roping in private equity firms for part of the deal,
the source said. Blackstone Group Carlyle Group and Apax were
interested to put in $4 billion to $5 billion, reports added.
India's largest cement maker by sales ACC rose 1.09% to Rs 639.70.
Its cement shipments in May 2008 fell to 1.8 million tonnes from
1.82 million tonnes a year earlier. Production fell to 1.79 million
tonnes from 1.82 million tonnes during the similar period.
IFCI clocked the highest volume of 1.9 crore shares on BSE. Anu's
Laboratories (1.25 crore shares), Ispat Industries (1.21 crore
shares), Chambal Fertilisers and Chemicals (1.14 crore shares) and
Reliance Natural Resources (1.14 crore shares) are among other
gainers in that order.
Reliance Industries clocked the highest turnover of Rs 418.91 crore
on BSE. Anu's Laboratories (Rs 353.59 crore), Reliance Capital (Rs
266.36 crore), Gokul Refoils and Solvent (Rs 210.66 crore) and
ONGC(Rs 204.36 crore) are among other turnover toppers in that
order.
India's largest wind turbine maker Suzlon Energy soared 8.66% to Rs
268.60. The stock moved up on reports that REpower Systems, in
which Suzlon holds 33.6% stake, has bagged an order to supply 100
wind turbines to US-based enXco.
Tech Mahindra rose 7.52% to 847.85. The stock galloped after the
firm said it signed a multi-million dollar deal with Botswana
Telecommunications. The company sees revenues of upto $10 million
over the next 3-5 years from the deal.
In a crucial development, government yesterday, 4 June 2008 agreed
to raise its petrol and diesel prices by about 10% in an attempt to
curb mounting losses of state-owned refiners thereby stoking
inflation and risking a political backlash. After 10 days of debate
over the price increase, the Cabinet also agreed to cut the import
duty on crude oil to support state run refining and retailing
firms. Customs duty on crude was also reduced to nil from 5%. The
duty cuts would amount to Rs 22,660 crore in revenue loss, the
Revenue Secretary said.
Meanwhile, the ruling Left Front in West Bengal has called a
12-hour general strike today, 5 June 2008 in protest against the
'anti-people' decision of the Centre to raise the prices of petrol,
diesel and cooking gas.
Analysts opine that higher inflationary expectations immediately
gave rise to fears of a cash reserve ratio (CRR) or interest rate
hike, which is a negative for markets.
European markets were trading mixed. Key benchmark indices from
France, and Germany were up between 0.08% to 0.11%. While UK's FTSE
100down 0.26%.
Asian markets were mixed today, 5 June 2008. Japan's Nikkei
Singapore's Straits Times, South Korea's Seoul Composite, and
China's Shanghai Composite, were down by between 0.08% to 0.65%.
Hong Kong's Hang Seng and Taiwan's Taiwan Weighted were up between
0.55% to 1.28%.
US markets ended mixed in volatile session yesterday, 4 June 2008.
Banks fell to their lowest level in eight years on Fed Chairman Ben
Bernanke's warning that inflation is still a concern. Financials
tumbled on rumors that Moody's May Put bond insurers AMBAC and MBIA
on review for a possible credit rating downgrade.
The Dow Jones industrial average slipped 12.37 points, or 0.10%, to
12,390.48. The Standard & Poor's 500 index was down 0.45 points, or
0.03%, to 1,377.20, while the Nasdaq advanced 22.66 points, or
0.91%, to 2,503.14.
day's of fall triggered a solid rally in late trade. Reports of
Prime Minister's resignation had spooked a sell-off in mid-morning
trade. Despite the rally, the market breadth remained negative. The
market witnessed choppy swings throughtout the day. Global cues
were mixed.
Earlier today, the market saw firm start despite weak global cues,
but slipped in red shortly on fresh selling. The market breadth was
weak. Shares from oil, realty, declined while those from IT, FMCG
and power rallied.
The 30-share BSE Sensex ended up 254.93 points or 1.64% at
15,769.72. Sensex gained 300.01 points at its high of 15814.80
touched during late trade. It lost 200.72 points at day's low of
15,314.02, touched in mid-morning trade.
The BSE Sensex had eroded 900.78 points or 5.48% from 16,415.57 in
past three trading days to 15,514.79 on 4 June 2008. Fears of early
election, uncertainity over fuel price hike and weak global markets
played the spoilsport.
The broader based S&P CNX Nifty was up 91.35 points or 1.99% to
4,676.95. Nifty June 2008 futures were at 4671, at a discount of
5.95 points as compared to spot closing.
The market breadth was negative on BSE with 1240 shares advancing
as compared to 1397 that declined. 77 remained unchanged.
The BSE Mid-Cap index rose 0.05% to 6400.29 and BSE Small-Cap index
rose 0.2% to 7,735.5961. Both these indices underperformed the
Sensex.
BSE clocked a turnover of Rs 5578 crore today as compared to a
turnover of Rs 6461.80 crore on 4 June 2008.
The NSE futures & options (F&O) segment turnover was Rs 51017.9
crore, which was higher than Rs 48,378.31 crore on Wednesday, 4
June 2008.
Among the sectoral indices on BSE, the BSE Consumer Durables index
(down 1.42% to 4,031.72), BSE Realty index (down 0.99% at
6,326.05), BSE Auto (down 0.08% at 4,222.01), The BSE Oil & Gas
index (up 0.02% to 10,061.83), BSE Capital Goods index (down 0.03%
at 12,111.63), underperformed Sensex.
However the BSE IT index (up 5.01% to 4,617.44), BSE TecK index (up
3.45% to 3,525.65), BSE Power (up 2.89% to 2,708.49), BSE FMCG
index (up 2.48% to 2,426.16), BSE Bankex (up 1.92% at 7,348.58),
BSE Health Care index (up 1.9% at 4,345.89), BSE Metal index (up
1.89% to 15,714.59), BSE PSU index (up 1.84% to 6,719.54),
outperformed the Sensex.
Among the 30-member Sensex pack, 22 advanced while the rest
slipped.
IT stocks were the stars of the day's trading session, boosted by
firm US dollar against Indian rupee. Wipro (up 6.25% to Rs 528.40),
Satyam Computer Services (up 5.47% to Rs 512.20) and TCS (up 2.57%
to Rs 982.75) edged higher.
India's second largest software services exporter Infosys jumped
5.86% to Rs 1979.70 on reports the firm is eyeing acquisitions in
Europe to reaccelerate its growth. However the target company's
name and size was not disclosed in the report.
Sahara Housing Finance Corporation was locked at 5% lower circuit
filter at Rs 178 after the Reserve Bank of India banned a group
financial firm Sahara India Financial Corporation from accepting
public deposits after it was found guilty in violating various
regulatory norms.
Mercator Lines soared 12.70% to Rs 118.50 after its Singapore-based
unit bagged a renewed 4-year contract from Tata Power worth $320
million.
National Aluminium Company advanced 4.90% at Rs 501.75 on BSE on
reports the firms plans massive investment of around Rs 40,000
crore in next five years in its various expansion projects.
Shares of upstream companies rallied after the subsidy burden that
they have to bear became clear post fuel price hike announced
yesterday, 4 June 2008, which had remained uncertain until now.
Oil and Natural Gas Corporation soared 7.46% to Rs 953.20 and Gail
India jumped 7.39% to Rs 398.30.
Upstream oil companies ONGC and GAIL India absorb most of subsidy
burden arising in the form of under-recoveries of oil marketing
companies. The duo will now have to bear Rs 45,000 crore in subsidy
burden, which is at historically high levels.
However the public sector oil-marketing companies extended losses
today after yesterday's fuel price hike. HPCL (down 6.26% to Rs
226.30), Indian Oil Corporation (down 6.29% to Rs 391.90) and BPCL
(down 7.01% to Rs 301.35) edged lower.
Power stocks advanced on fresh buying. Tata Power Company (up 7.79%
to Rs 1256.65), NTPC (up 5.57% to Rs 166.65), Reliance
Infrastructure (up 5.68% to Rs 1130.85) edged higher.
FMCG stocks rose. Tata Tea (up 5.02% to Rs 816.30), Hindustan
Unilever (up 3.23% to Rs 237.85), ITC (up 2.89% to Rs 222.35) edged
higher.
Jaiprakash Associates (up 3.68% to Rs 205.60), Grasim Industries
(up 3.19% to Rs 2,246.30), Tata Steel (up 3.1% to Rs 840.90), ICICI
Bank (up 3.09% to Rs 781.25), HDFC Bank (up 2.22% to Rs 1,243),
were the top gainers from Sensex pack.
Tata Motors (down 1.82% to Rs 532.60), Larsen & Toubro (down 1.6%
to Rs 2,721.20), Ambuja Cements (down 1.89% to Rs 85.85), Reliance
Industries (down 2.58% to Rs 2247.65), were the top losers from
Sensex pack.
Interest rate sensitive realty sector declined on fears of hike in
interest rates or CRR after inflation may rally to double-digit
post fuel price hike announced yesterday, 4 June 2008.
Indiabulls Real Estate (down 1.6% to Rs 405.45), Phoenix Mills
(down 3.99% to Rs 319) and DLF (down 3 % to Rs 538.45) edged lower
from realty pack.
India's largest maker of utility vehicles, Mahindra and Mahindra
(M&M) declined 0.92% to Rs 562.75. It announced signing an
agreement to acquire 100% stake in Italy based Engines Engineering.
Engines Engineering is in the business of two wheels design and
developing of motorcycle prototype.
India's second largest telecom services provider Reliance
Communications rose 1.3% to Rs 547.15. As per reports Reliance
Communications and South Africa's MTN have begun due diligence as
they inch closer to creating a global top-10 telecoms firm.
Reliance Communications has also engaged Deutsche Bank for the
possibility of roping in private equity firms for part of the deal,
the source said. Blackstone Group Carlyle Group and Apax were
interested to put in $4 billion to $5 billion, reports added.
India's largest cement maker by sales ACC rose 1.09% to Rs 639.70.
Its cement shipments in May 2008 fell to 1.8 million tonnes from
1.82 million tonnes a year earlier. Production fell to 1.79 million
tonnes from 1.82 million tonnes during the similar period.
IFCI clocked the highest volume of 1.9 crore shares on BSE. Anu's
Laboratories (1.25 crore shares), Ispat Industries (1.21 crore
shares), Chambal Fertilisers and Chemicals (1.14 crore shares) and
Reliance Natural Resources (1.14 crore shares) are among other
gainers in that order.
Reliance Industries clocked the highest turnover of Rs 418.91 crore
on BSE. Anu's Laboratories (Rs 353.59 crore), Reliance Capital (Rs
266.36 crore), Gokul Refoils and Solvent (Rs 210.66 crore) and
ONGC(Rs 204.36 crore) are among other turnover toppers in that
order.
India's largest wind turbine maker Suzlon Energy soared 8.66% to Rs
268.60. The stock moved up on reports that REpower Systems, in
which Suzlon holds 33.6% stake, has bagged an order to supply 100
wind turbines to US-based enXco.
Tech Mahindra rose 7.52% to 847.85. The stock galloped after the
firm said it signed a multi-million dollar deal with Botswana
Telecommunications. The company sees revenues of upto $10 million
over the next 3-5 years from the deal.
In a crucial development, government yesterday, 4 June 2008 agreed
to raise its petrol and diesel prices by about 10% in an attempt to
curb mounting losses of state-owned refiners thereby stoking
inflation and risking a political backlash. After 10 days of debate
over the price increase, the Cabinet also agreed to cut the import
duty on crude oil to support state run refining and retailing
firms. Customs duty on crude was also reduced to nil from 5%. The
duty cuts would amount to Rs 22,660 crore in revenue loss, the
Revenue Secretary said.
Meanwhile, the ruling Left Front in West Bengal has called a
12-hour general strike today, 5 June 2008 in protest against the
'anti-people' decision of the Centre to raise the prices of petrol,
diesel and cooking gas.
Analysts opine that higher inflationary expectations immediately
gave rise to fears of a cash reserve ratio (CRR) or interest rate
hike, which is a negative for markets.
European markets were trading mixed. Key benchmark indices from
France, and Germany were up between 0.08% to 0.11%. While UK's FTSE
100down 0.26%.
Asian markets were mixed today, 5 June 2008. Japan's Nikkei
Singapore's Straits Times, South Korea's Seoul Composite, and
China's Shanghai Composite, were down by between 0.08% to 0.65%.
Hong Kong's Hang Seng and Taiwan's Taiwan Weighted were up between
0.55% to 1.28%.
US markets ended mixed in volatile session yesterday, 4 June 2008.
Banks fell to their lowest level in eight years on Fed Chairman Ben
Bernanke's warning that inflation is still a concern. Financials
tumbled on rumors that Moody's May Put bond insurers AMBAC and MBIA
on review for a possible credit rating downgrade.
The Dow Jones industrial average slipped 12.37 points, or 0.10%, to
12,390.48. The Standard & Poor's 500 index was down 0.45 points, or
0.03%, to 1,377.20, while the Nasdaq advanced 22.66 points, or
0.91%, to 2,503.14.
Wednesday, June 4, 2008
Post Market Report 04.06.2008
Local benchmarks stayed under pressure for third straight day today
marred by fears of further spike in inflation to a multiyear high
post fuel price hike announced during the day. Weak global markets
also played the spoilsport. The market witnessed choppy swings
throughout the day. Stocks across the board were hammered brutally
with all sectoral indices on BSE suffering losses.
The market had witnessed a short lived recovery in early afternoon
trade soon after the Cabinet Committee on Political Affairs (CCPA)
approved the long awaited hike in fuel prices.
The 30-share BSE Sensex tumbled 447.77 points or 2.81% at
15,514.79. The barometer index swung wildly in a range of 550.56
points between the day's high and low of 15,992.90 and 15,442.34
respectively.
The BSE Sensex has now eroded 900.78 points or 5.48% from 16,415.57
in just three trading days.
The Sensex has now slumped 5691.98 points or 26.84% from its all
time high of 21,206.77, struck on 10 January 2008. However it is
still up 705.3 points or 4.76% from its recent low of 14,809.49
touched on 17 March 2008.
The broader based S&P CNX Nifty was down 130.3 points or 2.76% at
4,585.60. Nifty June 2008 futures were at 4580.50, a discount of
5.10 points as compared to spot closing.
The BSE Mid-Cap index down 2.29% to 6397.37 and BSE Small-Cap index
down 2.06% to 7,720.26. Both these indices outperformed Sensex.
The market breadth was weak on BSE with 676 shares advancing as
compared to 1967 that declined. 76 remained unchanged.
The BSE clocked the turnover of Rs 5,551 crore today as compared to
Rs 5,252.69 crore on 3 Jun 2008.
The NSE futures & options (F&O) segment turnover was Rs 48,378.31
crore, which was higher than Rs 40,448.71 crore on Tuesday, 3 June
2008.
Among the sectoral indices on BSE, the BSE Realty index (down 5.01%
at 6,389.20), BSE Metal index (down 4.98% to 15,423.15), BSE Power
(down 4.42% to 2,632.37), The BSE Oil & Gas index (down 3.39% to
10,059.51), BSE Auto (down 3.31% at 4,225.59), BSE Capital Goods
index (down 3.24% at 12,115.82), BSE Consumer Durables index (down
3.14% to 4,089.71) underperformed Sensex.
However the BSE FMCG index (down 1.5% to 2,367.45), BSE PSU index
(down 1.93% to 6,598.43), BSE Health Care index (down 2.19% at
4,264.93), BSE Bankex (down 2.53% at 7,210.37), BSE IT ndex (down
2.54% to 4,397.35), BSE TecK index (down 2.67% to 3,407.94),
outperformed the Sensex.
In a crucial development, government today agreed to raise its
petrol and diesel prices by about 10% in an attempt to curb
mounting losses of state-owned refiners thereby stoking inflation
and risking a political backlash. After 10 days of debate over the
price increase, the Cabinet also agreed to cut the import duty on
crude oil to support state run refining and retailing firms.
Customs duty on crude was also reduced to nil from 5%. The duty
cuts would amount to Rs 22,660 crore in revenue loss, the Revenue
Secretary said.
Among the 30-member Sensex pack, 29 declined while India's largest
oil exploration company in terms of market capitalisation ONGC was
the lone gainer. The stock surged 5.31% to Rs 887.05 on speculation
that it may have to absorb lower subsidy burden after today's fuel
price hike.
India's largest private sector company in terms of market
capitalisation and oil refiner Reliance Industries (RIL) sumped
4.14% to Rs 2296.70.
India's largest real estate developer in terms of market
capitalisation DLF shed 4.7% to Rs 555.10. The company's net profit
rose 536.6% to Rs 2590.28 crore on 388.1% rise in sales to Rs
5532.88 crore in FY 2008 over FY 2007.
Metal stocks declined. Sterlite Industries (down 6.71% to Rs
841.40), Sesa Goa (down 8.83% to Rs 3568.70), National Aluminium
Company (down 1.71% to Rs 478.30), Tata Steel (down 5.36% to Rs
815.60), Hindalco Industries (down 3.09% to Rs 178.60), Steel
Authority of India (down 1.69% to Rs 153.75), edged lower.
Power stocks declined. Reliance Power (down 7.31% to Rs 202.80),
Tata Power Company (down 7.06% to Rs 1,165.85), Reliance
Infrstructure (down 4.89% to Rs 1070.10), Powergrid Corporation of
India (down 2.97% to Rs 88.30) edged lower.
Realty stocks slumped. Lanco Infratech (down 12.27% to Rs 416.50),
Indiabulls Real Estate (down 7.29% to Rs 412.05) and Unitech (down
5.52% to Rs 207.20) edged lower.
State run oil & gas stocks erased early gains to post losses
despite fuel price hike. BPCL (down 7.84% to Rs 324.05, off day's
high of Rs 371.60), Indian Oil Corporation (down 3.61% to Rs
418.20, off day's high of Rs 452.90), HPCL (down 2.9% to Rs 241.40,
off day's high of Rs 259.90) edged lower.
The OMCs have so far reported losses of over Rs 2.25-lakh crore due
to the high crude prices and in the absence of revision in the
domestic retail prices. They have said they will run out of cash to
import crude if the government fails to bail them out.
Auto stocks were subdued post oil price hike announcement. Hero
Honda Motors (down 4.26% to Rs 764), Mahindra & Mahindra (down 3.2%
to Rs 571.50), Tata Motors (down 4.87% to Rs 542.50), Maruti Suzuki
India (down 5.07% to Rs 746.55), and Bajaj Auto (down 4.91% to Rs
551.60) edged lower.
Ambuja Cements (down 5.46% to Rs 87.50), HDFC Bank (down 5.19% to
Rs 1,215.95), Bharat Heavy Electricals (down 4.99% to Rs 1471.25),
DLF (down 3.85% to Rs 560), edged lower from Sensex pack.
IFCI clocked the highest volume of 1.78 crore shares on BSE.
Reliance Petroleum (1.56 crore shares), Ispat Industries (1.38
crore shares), Reliance Natural Resources (95.34 lakh shares) and
Essar Oil (91.05 lakh shares) are among other volume toppers in
that order.
ONGC clocked the highest turnover of Rs 313.48 crore on BSE.
Reliance Industries (Rs 308.80 crore), Reliance Petroleum (Rs
268.68 crore), Essar Oil (Rs 220.61 crore) and Reliance Capital (Rs
216.73 crore) are among other turnover toppers in that order.
Anu's Laboratories settled at a premium of 27.64% at Rs 268.05 on
its debut on BSE. It had fixed the offer price of Rs 210.
Gokul Refoils and Solvent settled at a discount of 7.15% to Rs
181.05 on its debut on BSE. It had fixed the offer price of Rs 195.
European markets which opened after Indian markets were weak. Key
benchmark indices in France, Germany and UK were down by between
1.42% to 2.16%.
Asian markets were trading mixed today, 4 June 2008. Key Asian
indices - Nikkei 225 index, Taiwan's Taiwan Weighted, South Korea's
Seoul Composite rose between 0.56% to 1.59%.
However, Singapore's Straits Times, Hang Seng and China's Shanghai
Composite were down by between 0.83% to 1.93%.
US markets declined in volatile session yesterday, 3 June 2008 led
by growing speculation that Lehman Brothers will be forced to raise
more capital and a drop in oil prices pushed down energy companies.
The Dow Jones industrial average declined 100.97 points, or 0.81%,
to 12,402.85. The S&P 500 index slipped 8.02 points, or 0.58%, to
1,377.65, while the Nasdaq Composite index was down 11.05 points,
or 0.44%, to 2,480.48.
US light crude for July delivery fell 34 cents to $123.97 a barrel
today, 4 June 2008, triggered by a rallying dollar as traders
awaited U.S. data expected to show rising oil stocks. London Brent
crude for July delivery fell 38 cents to $124.20 a barrel.
Meanwhile, mutual funds have reportedly managed to increase their
assets under management (AUM) by 5.36% in May 2008, helped by fresh
investments in fixed income funds. The collective AUM rose by
30,576.72 crore in May 2008, according to the data released by the
Associations of Mutual Fund in India (AMFI).
marred by fears of further spike in inflation to a multiyear high
post fuel price hike announced during the day. Weak global markets
also played the spoilsport. The market witnessed choppy swings
throughout the day. Stocks across the board were hammered brutally
with all sectoral indices on BSE suffering losses.
The market had witnessed a short lived recovery in early afternoon
trade soon after the Cabinet Committee on Political Affairs (CCPA)
approved the long awaited hike in fuel prices.
The 30-share BSE Sensex tumbled 447.77 points or 2.81% at
15,514.79. The barometer index swung wildly in a range of 550.56
points between the day's high and low of 15,992.90 and 15,442.34
respectively.
The BSE Sensex has now eroded 900.78 points or 5.48% from 16,415.57
in just three trading days.
The Sensex has now slumped 5691.98 points or 26.84% from its all
time high of 21,206.77, struck on 10 January 2008. However it is
still up 705.3 points or 4.76% from its recent low of 14,809.49
touched on 17 March 2008.
The broader based S&P CNX Nifty was down 130.3 points or 2.76% at
4,585.60. Nifty June 2008 futures were at 4580.50, a discount of
5.10 points as compared to spot closing.
The BSE Mid-Cap index down 2.29% to 6397.37 and BSE Small-Cap index
down 2.06% to 7,720.26. Both these indices outperformed Sensex.
The market breadth was weak on BSE with 676 shares advancing as
compared to 1967 that declined. 76 remained unchanged.
The BSE clocked the turnover of Rs 5,551 crore today as compared to
Rs 5,252.69 crore on 3 Jun 2008.
The NSE futures & options (F&O) segment turnover was Rs 48,378.31
crore, which was higher than Rs 40,448.71 crore on Tuesday, 3 June
2008.
Among the sectoral indices on BSE, the BSE Realty index (down 5.01%
at 6,389.20), BSE Metal index (down 4.98% to 15,423.15), BSE Power
(down 4.42% to 2,632.37), The BSE Oil & Gas index (down 3.39% to
10,059.51), BSE Auto (down 3.31% at 4,225.59), BSE Capital Goods
index (down 3.24% at 12,115.82), BSE Consumer Durables index (down
3.14% to 4,089.71) underperformed Sensex.
However the BSE FMCG index (down 1.5% to 2,367.45), BSE PSU index
(down 1.93% to 6,598.43), BSE Health Care index (down 2.19% at
4,264.93), BSE Bankex (down 2.53% at 7,210.37), BSE IT ndex (down
2.54% to 4,397.35), BSE TecK index (down 2.67% to 3,407.94),
outperformed the Sensex.
In a crucial development, government today agreed to raise its
petrol and diesel prices by about 10% in an attempt to curb
mounting losses of state-owned refiners thereby stoking inflation
and risking a political backlash. After 10 days of debate over the
price increase, the Cabinet also agreed to cut the import duty on
crude oil to support state run refining and retailing firms.
Customs duty on crude was also reduced to nil from 5%. The duty
cuts would amount to Rs 22,660 crore in revenue loss, the Revenue
Secretary said.
Among the 30-member Sensex pack, 29 declined while India's largest
oil exploration company in terms of market capitalisation ONGC was
the lone gainer. The stock surged 5.31% to Rs 887.05 on speculation
that it may have to absorb lower subsidy burden after today's fuel
price hike.
India's largest private sector company in terms of market
capitalisation and oil refiner Reliance Industries (RIL) sumped
4.14% to Rs 2296.70.
India's largest real estate developer in terms of market
capitalisation DLF shed 4.7% to Rs 555.10. The company's net profit
rose 536.6% to Rs 2590.28 crore on 388.1% rise in sales to Rs
5532.88 crore in FY 2008 over FY 2007.
Metal stocks declined. Sterlite Industries (down 6.71% to Rs
841.40), Sesa Goa (down 8.83% to Rs 3568.70), National Aluminium
Company (down 1.71% to Rs 478.30), Tata Steel (down 5.36% to Rs
815.60), Hindalco Industries (down 3.09% to Rs 178.60), Steel
Authority of India (down 1.69% to Rs 153.75), edged lower.
Power stocks declined. Reliance Power (down 7.31% to Rs 202.80),
Tata Power Company (down 7.06% to Rs 1,165.85), Reliance
Infrstructure (down 4.89% to Rs 1070.10), Powergrid Corporation of
India (down 2.97% to Rs 88.30) edged lower.
Realty stocks slumped. Lanco Infratech (down 12.27% to Rs 416.50),
Indiabulls Real Estate (down 7.29% to Rs 412.05) and Unitech (down
5.52% to Rs 207.20) edged lower.
State run oil & gas stocks erased early gains to post losses
despite fuel price hike. BPCL (down 7.84% to Rs 324.05, off day's
high of Rs 371.60), Indian Oil Corporation (down 3.61% to Rs
418.20, off day's high of Rs 452.90), HPCL (down 2.9% to Rs 241.40,
off day's high of Rs 259.90) edged lower.
The OMCs have so far reported losses of over Rs 2.25-lakh crore due
to the high crude prices and in the absence of revision in the
domestic retail prices. They have said they will run out of cash to
import crude if the government fails to bail them out.
Auto stocks were subdued post oil price hike announcement. Hero
Honda Motors (down 4.26% to Rs 764), Mahindra & Mahindra (down 3.2%
to Rs 571.50), Tata Motors (down 4.87% to Rs 542.50), Maruti Suzuki
India (down 5.07% to Rs 746.55), and Bajaj Auto (down 4.91% to Rs
551.60) edged lower.
Ambuja Cements (down 5.46% to Rs 87.50), HDFC Bank (down 5.19% to
Rs 1,215.95), Bharat Heavy Electricals (down 4.99% to Rs 1471.25),
DLF (down 3.85% to Rs 560), edged lower from Sensex pack.
IFCI clocked the highest volume of 1.78 crore shares on BSE.
Reliance Petroleum (1.56 crore shares), Ispat Industries (1.38
crore shares), Reliance Natural Resources (95.34 lakh shares) and
Essar Oil (91.05 lakh shares) are among other volume toppers in
that order.
ONGC clocked the highest turnover of Rs 313.48 crore on BSE.
Reliance Industries (Rs 308.80 crore), Reliance Petroleum (Rs
268.68 crore), Essar Oil (Rs 220.61 crore) and Reliance Capital (Rs
216.73 crore) are among other turnover toppers in that order.
Anu's Laboratories settled at a premium of 27.64% at Rs 268.05 on
its debut on BSE. It had fixed the offer price of Rs 210.
Gokul Refoils and Solvent settled at a discount of 7.15% to Rs
181.05 on its debut on BSE. It had fixed the offer price of Rs 195.
European markets which opened after Indian markets were weak. Key
benchmark indices in France, Germany and UK were down by between
1.42% to 2.16%.
Asian markets were trading mixed today, 4 June 2008. Key Asian
indices - Nikkei 225 index, Taiwan's Taiwan Weighted, South Korea's
Seoul Composite rose between 0.56% to 1.59%.
However, Singapore's Straits Times, Hang Seng and China's Shanghai
Composite were down by between 0.83% to 1.93%.
US markets declined in volatile session yesterday, 3 June 2008 led
by growing speculation that Lehman Brothers will be forced to raise
more capital and a drop in oil prices pushed down energy companies.
The Dow Jones industrial average declined 100.97 points, or 0.81%,
to 12,402.85. The S&P 500 index slipped 8.02 points, or 0.58%, to
1,377.65, while the Nasdaq Composite index was down 11.05 points,
or 0.44%, to 2,480.48.
US light crude for July delivery fell 34 cents to $123.97 a barrel
today, 4 June 2008, triggered by a rallying dollar as traders
awaited U.S. data expected to show rising oil stocks. London Brent
crude for July delivery fell 38 cents to $124.20 a barrel.
Meanwhile, mutual funds have reportedly managed to increase their
assets under management (AUM) by 5.36% in May 2008, helped by fresh
investments in fixed income funds. The collective AUM rose by
30,576.72 crore in May 2008, according to the data released by the
Associations of Mutual Fund in India (AMFI).
Post Market Report 03.06.2008
The market staged a smart intra-day rebound in second half of the
day's trading session led by recovery in Reliance Industries (RIL).
Panic selling in early trade by wary investors kept market
depressed in the first half. Fears in the market were that Left
parties might withdraw support to the government, which may lead to
early election. The market witnessed choppy swings throughout the
day. Cement sector was the start sector of the day.
European markets, which opened before Indian market, were mixed.
Asian markets which opened before Indian market recovered from
early lows.
The Revolutionary Socialist Party (RSP), a part of the Left front,
is reportedly pulling out of the United Progressive Alliance
(UPA)-Left coordination committee. RSP has been seeking withdrawal
of support to the UPA government since the last three years. The
party is now planning to to step up pressure on the other Left
parties to withdraw their support to the Manmohan Singh government,
reports suggest
The 30-share BSE Sensex settled 100.62 points or 0.63% lower at
15,962.56, after opening 211.46 points lower at 15,851.72. Sensex
shed 77.78 points at day's high of 15,985.40 hit in mid-afternoon
trade. The barometer index plunged 353.67 points at day's low of
15,709.51 hit mid-afternoon trade.
The broader based S&P CNX Nifty fell 23.70 points or 0.5% at
4,715.90. Nifty swung wildly in a range of 4634 and 4739.30 during
the day. Nifty June 2008 futures were at 4706, a discount of 9.9
points as compared to spot closing
The market breadth was weak on BSE with 1810 shares declining as
compared to 860 that advanced. 55 remained unchanged.
The BSE Mid-Cap index declined 0.56% to 6,547.30 and the BSE
Small-Cap index shed 0.97% to 7,882.29
The total turnover on BSE amounted to Rs 5229 crore as compared to
Rs 4,809.14 crore yesterday, 2 June 2008. Turnover in NSE's futures
& options segment amounted to Rs 40448.71 crore as compared to Rs
35257.77 crore yesterday, 2 June 2008.
Sectoral indices on BSE displayed mixed trend. The BSE Oil & Gas
index (up 2.02% to 10,412.49), BSE FMCG index (down 0.33% to
2,403.54), BSE Auto (up 0.27% at 4,370.05), BSE Health Care index
(up 0.23% at 4,360.26), BSE Realty index (down 0.02% at 6,726.25),
BSE Metal index (down 0.39% to 16,232.08), and BSE Consumer
Durables index (up 0.68% to 4,222.18), outperformed the Sensex.
The BSE Power (down 2.64% to 2,754.20), BSE Bankex (down 0.77% at
7,397.25), BSE Capital Goods index (down 2.24% at 12,521.25), BSE
TecK index (down 1.69% to 3,501.40), BSE PSU index (down 1.17% to
6,728.19), underperformed the Sensex.
Among the 30-member Sensex pack, 18 declined while the rest gained.
India's largest cellular services provider Bharti Airtel slumped
4.23% to Rs 840.55 on 4.15 lakh shares. The stock had hit an
intra-day high of Rs 868.65 in opening trade. It was the top loser
from Sensex pack.
Select Sensex stocks staged a smart recovery from early lows.
Reliance Infrastructure (down 3.72% to Rs 1126.90, off day's low of
Rs 1085), HDFC (down 2.87% to Rs 2458, off day's low of Rs 2432),
Bharat Heavy Electricals (down 2.86% to Rs 1550, off day's low of
Rs 1501.15) and Jaiprakash Associates (down 2.31% to Rs 207, off
day's low of Rs 200.20) recovered.
India's largest private sector company in terms of market
capitalisation and oil refiner Reliance Industries (RIL) advanced
2.31% to Rs 2410 on 11.65 lakh shares. As per reports, the Punjab
Infrastructure Development Board (PIDB) has received proposals from
Reliance Industries and Omaxe to set up an expressway from
Pathankot to Ajmer and a ring road around Amritsar respectively.
India's fourth largest software services exporter Satyam Computer
Services shed 3.31% to Rs 501.50 after Upaid Systems said it has
filed fresh claims as part of court proceedings against Satyam in a
US court, which could raise possible damages beyond the earlier
stated $1 billion.
In 2005, a patent infringement court case was initiated in Texas
against third parties which revealed the use of forged signatures
by Satyam employees on critical documents provided to Upaid by
Satyam.
India's largest private sector engineering company in terms of
order book Larsen & Toubro declined 2.44% to Rs 2845. The company
said on Monday, 2 June 2008, it is seeking shareholders' approval
to transfer its medical equipment and systems business to a
subsidiary or to sell it.
Private sector banking shares declined tracking fall in their
American Depository Receipt (ADRs) on the New York Stock Exchange
yesterday, 2 June 2008. ICICI Bank lost 0.90% to Rs 757.95 after
its ADR slumped 6% and HDFC Bank shed 0.40% to Rs 1306 after its
ADR fell 5.5%.
India's largest bank in terms of market capitalisation State Bank
of India (SBI) slipped 0.94% to Rs 1381
India's second largest software services exporter Infosys
Technologies was down 1.38% to Rs 1924, off day's low of Rs 1882.
The company received two patents from US Patent and Trademark
Office in the areas of holography and mobile communications. The
company made this announcement during trading hours today, 3 June
2008.
India's largest pharma company in terms of sales Ranbaxy
laboratories surged 3.67% to Rs 532.90 on 4.34 lakh shares. It was
the top gainer from Sensex pack
Cement shares advanced on fresh buying. India's largest cement
company in terms of sales ACC advanced 3.50% to Rs 648. The company
has reportedly short listed some companies for acquisition. ACC has
cash reserves of Rs 1000 crore which it would use for expansion and
acquisition, reports suggest.
India's second largest cement company in terms of sales Ambuja
Cements rose 0.16% to Rs 92.40 even on company said its cement
shipments fell 1% to 1.51 million tonnes in May 2008 over May 2007.
Ambuja Cements' production fell 1% to 1.49 million tonnes in May
2008 over May 2007.
UltraTech Cement Company (up 1.28% to Rs 650), Prism Cement (up
2.44% to Rs 37.80), India Cements (up 4.38% to Rs 165.85), and
Mysore Cements (up 6.42% to Rs 35.65) advanced.
As per reports, the government has done a flip flop on tax refunds
for cement exports today, by withdrawing the benefit that was
allowed only yesterday. The Directorate General of Foreign Trade
revoked yesterday's notification which had restored the duty
entitlement pass book scheme refund of local taxes on cement
exports.
India's largest truck maker by sales Tata Motors rose 1.43% to Rs
571 after the company said on Monday it had completed the $2.3
billion acquisition of British luxury brands Jaguar and Land Rover.
Wipro (up 2.57% to Rs 508), ONGC (up 1.49% to Rs 845.55), DLF (up
2.53% to Rs 582), and Cipla (up 1.49% to Rs 210.85), edged higher
from Sensex pack.
Reliance Industries was the top traded counter on BSE with turnover
of Rs 278.70 crore followed by Reliance Capital (Rs 211.62 crore),
Essar Oil (Rs 165.49 crore), Reliance Petroleum (Rs 155.16 crore),
and IFCI (Rs 128.35 crore), in that order.
IFCI topped the volumes chart clocking volumes of 2.14 crore shares
followed by Ispat Industries (1.45 crore shares), Aishwarya Telecom
(1.12 crore shares), Chambal Fertilisers (98 lakh shares) and
Reliance Natural Resources (96 lakh shares), in that order.
Shares of air carriers slipped after they raised fuel surcharge in
line with rising jet fuel prices. Deccan Aviation (down 6.15% to Rs
104.50), SpiceJet (down 2.56% to Rs 30.50) and Jet Airways (down
0.33% to Rs 539.55) edged lower.
Punj Lloyd slipped 1.80% to Rs 281.95 after tumbling 10.53%
yesterday, 2 June 2008. The sell-off was triggered after the
company's auditors commented that no provision has been made for
expected losses of Rs 305 crore arising out of one of the
contracts.
Kirloskar Brothers declined 1.77% to Rs 222.50 even as the company
said it is reorganising its business into nine divisions to achieve
a revenue target of $1 billion by 2011.
Adhunik Metaliks rose 2.85% to Rs 179.50 after its board approved
initial public offer of the company's 100% subsidiary viz. Orissa
Manganese & Minerals. The company announced this after market hours
on Monday, 2 June 2008.
Mahanagar Telephone Nigam rose 2.50% to Rs 96.35 after its American
Depository Receipt surged 13.8% to $4.61 on the New York Stock
Exchange on Monday, 2 June 2008.
ABB declined 2.60% to Rs 999 despite winning an order worth Rs 295
crore to provide power solutions to JSW Energy for its upcoming
1200 megawatt thermal power plant in Ratnagiri, Maharashtra.
National Aluminium Company fell 4.26% to Rs 485 after the company
reportedly lowered price of flat-rolled products by as much as Rs
3,500 a tonne to Rs 159,400 a tonne
Prime Minister Manmohan Singh yesterday, 2 June 2008, indicated
that the government is left with no option but to hike the fuel
prices in the wake of soaring global crude oil prices. However
government's move to hike fuel price will face challenge from Left,
and may propel inflation above 10%.
On the other hand, if government does not hike prices, oil
marketing companies will go bankrupt, spoiling its report card.
European markets, which opened before Indian market, were mixed in
opening session. Key benchmark indices in United Kingdom (up 0.03%
to 6,009.40), and France (up 0.06% to 4,938.15), rose. However
Germany's DAX index slipped 0.46% to 6,976.87
Asian markets, which opened before Indian market, rebounded from
early lows, but were still in the red. Shanghai Composite (down
0.65% at 3,436.80), Japan's Nikkei (down 1.60% at 14,209.17), Hong
Kong's Hang Seng (down 1.83% at 24,375.76), Taiwan's Taiwan
Weighted (down 1.64% at 8,581.35), Straits Times (down 1.13% at
3,151.98) and South Korea's Seoul Composite (down 1.44% at 1,821),
edged lower.
US markets declined yesterday, 2 June 2008, on renewed fears that
the credit crunch is yet to run its course after S&P downgraded
debt ratings of three big securities companies. In the economic
news, the May Institute of Supply Management (ISM) index, rose
2.1%, suggesting a slight contraction in United States
manufacturing activity.
The Dow Jones industrial average plunged 134.50, or 1.06%, to
12,503.82. The S&P 500 index slipped 14.71 points, or 1.05%, to
1,385.67. The Nasdaq Composite index was down 31.13 points, or
1.23%, to 2,491.53.
US light crude for July delivery fell 50 cents a barrel to $127.26
today, 3 June 2008, as the start of the hurricane season stirred
concerns that oil and natural gas output could be disrupted in the
Gulf of Mexico. London Brent crude fell 80 cents to $127.22 a
barrel today
day's trading session led by recovery in Reliance Industries (RIL).
Panic selling in early trade by wary investors kept market
depressed in the first half. Fears in the market were that Left
parties might withdraw support to the government, which may lead to
early election. The market witnessed choppy swings throughout the
day. Cement sector was the start sector of the day.
European markets, which opened before Indian market, were mixed.
Asian markets which opened before Indian market recovered from
early lows.
The Revolutionary Socialist Party (RSP), a part of the Left front,
is reportedly pulling out of the United Progressive Alliance
(UPA)-Left coordination committee. RSP has been seeking withdrawal
of support to the UPA government since the last three years. The
party is now planning to to step up pressure on the other Left
parties to withdraw their support to the Manmohan Singh government,
reports suggest
The 30-share BSE Sensex settled 100.62 points or 0.63% lower at
15,962.56, after opening 211.46 points lower at 15,851.72. Sensex
shed 77.78 points at day's high of 15,985.40 hit in mid-afternoon
trade. The barometer index plunged 353.67 points at day's low of
15,709.51 hit mid-afternoon trade.
The broader based S&P CNX Nifty fell 23.70 points or 0.5% at
4,715.90. Nifty swung wildly in a range of 4634 and 4739.30 during
the day. Nifty June 2008 futures were at 4706, a discount of 9.9
points as compared to spot closing
The market breadth was weak on BSE with 1810 shares declining as
compared to 860 that advanced. 55 remained unchanged.
The BSE Mid-Cap index declined 0.56% to 6,547.30 and the BSE
Small-Cap index shed 0.97% to 7,882.29
The total turnover on BSE amounted to Rs 5229 crore as compared to
Rs 4,809.14 crore yesterday, 2 June 2008. Turnover in NSE's futures
& options segment amounted to Rs 40448.71 crore as compared to Rs
35257.77 crore yesterday, 2 June 2008.
Sectoral indices on BSE displayed mixed trend. The BSE Oil & Gas
index (up 2.02% to 10,412.49), BSE FMCG index (down 0.33% to
2,403.54), BSE Auto (up 0.27% at 4,370.05), BSE Health Care index
(up 0.23% at 4,360.26), BSE Realty index (down 0.02% at 6,726.25),
BSE Metal index (down 0.39% to 16,232.08), and BSE Consumer
Durables index (up 0.68% to 4,222.18), outperformed the Sensex.
The BSE Power (down 2.64% to 2,754.20), BSE Bankex (down 0.77% at
7,397.25), BSE Capital Goods index (down 2.24% at 12,521.25), BSE
TecK index (down 1.69% to 3,501.40), BSE PSU index (down 1.17% to
6,728.19), underperformed the Sensex.
Among the 30-member Sensex pack, 18 declined while the rest gained.
India's largest cellular services provider Bharti Airtel slumped
4.23% to Rs 840.55 on 4.15 lakh shares. The stock had hit an
intra-day high of Rs 868.65 in opening trade. It was the top loser
from Sensex pack.
Select Sensex stocks staged a smart recovery from early lows.
Reliance Infrastructure (down 3.72% to Rs 1126.90, off day's low of
Rs 1085), HDFC (down 2.87% to Rs 2458, off day's low of Rs 2432),
Bharat Heavy Electricals (down 2.86% to Rs 1550, off day's low of
Rs 1501.15) and Jaiprakash Associates (down 2.31% to Rs 207, off
day's low of Rs 200.20) recovered.
India's largest private sector company in terms of market
capitalisation and oil refiner Reliance Industries (RIL) advanced
2.31% to Rs 2410 on 11.65 lakh shares. As per reports, the Punjab
Infrastructure Development Board (PIDB) has received proposals from
Reliance Industries and Omaxe to set up an expressway from
Pathankot to Ajmer and a ring road around Amritsar respectively.
India's fourth largest software services exporter Satyam Computer
Services shed 3.31% to Rs 501.50 after Upaid Systems said it has
filed fresh claims as part of court proceedings against Satyam in a
US court, which could raise possible damages beyond the earlier
stated $1 billion.
In 2005, a patent infringement court case was initiated in Texas
against third parties which revealed the use of forged signatures
by Satyam employees on critical documents provided to Upaid by
Satyam.
India's largest private sector engineering company in terms of
order book Larsen & Toubro declined 2.44% to Rs 2845. The company
said on Monday, 2 June 2008, it is seeking shareholders' approval
to transfer its medical equipment and systems business to a
subsidiary or to sell it.
Private sector banking shares declined tracking fall in their
American Depository Receipt (ADRs) on the New York Stock Exchange
yesterday, 2 June 2008. ICICI Bank lost 0.90% to Rs 757.95 after
its ADR slumped 6% and HDFC Bank shed 0.40% to Rs 1306 after its
ADR fell 5.5%.
India's largest bank in terms of market capitalisation State Bank
of India (SBI) slipped 0.94% to Rs 1381
India's second largest software services exporter Infosys
Technologies was down 1.38% to Rs 1924, off day's low of Rs 1882.
The company received two patents from US Patent and Trademark
Office in the areas of holography and mobile communications. The
company made this announcement during trading hours today, 3 June
2008.
India's largest pharma company in terms of sales Ranbaxy
laboratories surged 3.67% to Rs 532.90 on 4.34 lakh shares. It was
the top gainer from Sensex pack
Cement shares advanced on fresh buying. India's largest cement
company in terms of sales ACC advanced 3.50% to Rs 648. The company
has reportedly short listed some companies for acquisition. ACC has
cash reserves of Rs 1000 crore which it would use for expansion and
acquisition, reports suggest.
India's second largest cement company in terms of sales Ambuja
Cements rose 0.16% to Rs 92.40 even on company said its cement
shipments fell 1% to 1.51 million tonnes in May 2008 over May 2007.
Ambuja Cements' production fell 1% to 1.49 million tonnes in May
2008 over May 2007.
UltraTech Cement Company (up 1.28% to Rs 650), Prism Cement (up
2.44% to Rs 37.80), India Cements (up 4.38% to Rs 165.85), and
Mysore Cements (up 6.42% to Rs 35.65) advanced.
As per reports, the government has done a flip flop on tax refunds
for cement exports today, by withdrawing the benefit that was
allowed only yesterday. The Directorate General of Foreign Trade
revoked yesterday's notification which had restored the duty
entitlement pass book scheme refund of local taxes on cement
exports.
India's largest truck maker by sales Tata Motors rose 1.43% to Rs
571 after the company said on Monday it had completed the $2.3
billion acquisition of British luxury brands Jaguar and Land Rover.
Wipro (up 2.57% to Rs 508), ONGC (up 1.49% to Rs 845.55), DLF (up
2.53% to Rs 582), and Cipla (up 1.49% to Rs 210.85), edged higher
from Sensex pack.
Reliance Industries was the top traded counter on BSE with turnover
of Rs 278.70 crore followed by Reliance Capital (Rs 211.62 crore),
Essar Oil (Rs 165.49 crore), Reliance Petroleum (Rs 155.16 crore),
and IFCI (Rs 128.35 crore), in that order.
IFCI topped the volumes chart clocking volumes of 2.14 crore shares
followed by Ispat Industries (1.45 crore shares), Aishwarya Telecom
(1.12 crore shares), Chambal Fertilisers (98 lakh shares) and
Reliance Natural Resources (96 lakh shares), in that order.
Shares of air carriers slipped after they raised fuel surcharge in
line with rising jet fuel prices. Deccan Aviation (down 6.15% to Rs
104.50), SpiceJet (down 2.56% to Rs 30.50) and Jet Airways (down
0.33% to Rs 539.55) edged lower.
Punj Lloyd slipped 1.80% to Rs 281.95 after tumbling 10.53%
yesterday, 2 June 2008. The sell-off was triggered after the
company's auditors commented that no provision has been made for
expected losses of Rs 305 crore arising out of one of the
contracts.
Kirloskar Brothers declined 1.77% to Rs 222.50 even as the company
said it is reorganising its business into nine divisions to achieve
a revenue target of $1 billion by 2011.
Adhunik Metaliks rose 2.85% to Rs 179.50 after its board approved
initial public offer of the company's 100% subsidiary viz. Orissa
Manganese & Minerals. The company announced this after market hours
on Monday, 2 June 2008.
Mahanagar Telephone Nigam rose 2.50% to Rs 96.35 after its American
Depository Receipt surged 13.8% to $4.61 on the New York Stock
Exchange on Monday, 2 June 2008.
ABB declined 2.60% to Rs 999 despite winning an order worth Rs 295
crore to provide power solutions to JSW Energy for its upcoming
1200 megawatt thermal power plant in Ratnagiri, Maharashtra.
National Aluminium Company fell 4.26% to Rs 485 after the company
reportedly lowered price of flat-rolled products by as much as Rs
3,500 a tonne to Rs 159,400 a tonne
Prime Minister Manmohan Singh yesterday, 2 June 2008, indicated
that the government is left with no option but to hike the fuel
prices in the wake of soaring global crude oil prices. However
government's move to hike fuel price will face challenge from Left,
and may propel inflation above 10%.
On the other hand, if government does not hike prices, oil
marketing companies will go bankrupt, spoiling its report card.
European markets, which opened before Indian market, were mixed in
opening session. Key benchmark indices in United Kingdom (up 0.03%
to 6,009.40), and France (up 0.06% to 4,938.15), rose. However
Germany's DAX index slipped 0.46% to 6,976.87
Asian markets, which opened before Indian market, rebounded from
early lows, but were still in the red. Shanghai Composite (down
0.65% at 3,436.80), Japan's Nikkei (down 1.60% at 14,209.17), Hong
Kong's Hang Seng (down 1.83% at 24,375.76), Taiwan's Taiwan
Weighted (down 1.64% at 8,581.35), Straits Times (down 1.13% at
3,151.98) and South Korea's Seoul Composite (down 1.44% at 1,821),
edged lower.
US markets declined yesterday, 2 June 2008, on renewed fears that
the credit crunch is yet to run its course after S&P downgraded
debt ratings of three big securities companies. In the economic
news, the May Institute of Supply Management (ISM) index, rose
2.1%, suggesting a slight contraction in United States
manufacturing activity.
The Dow Jones industrial average plunged 134.50, or 1.06%, to
12,503.82. The S&P 500 index slipped 14.71 points, or 1.05%, to
1,385.67. The Nasdaq Composite index was down 31.13 points, or
1.23%, to 2,491.53.
US light crude for July delivery fell 50 cents a barrel to $127.26
today, 3 June 2008, as the start of the hurricane season stirred
concerns that oil and natural gas output could be disrupted in the
Gulf of Mexico. London Brent crude fell 80 cents to $127.22 a
barrel today
Tuesday, June 3, 2008
Market plunges in opening trade
Wary investors pressed sales for second straight day over uncertainty that Left parties may withdraw support to the government leading to early election. It experienced bout of volatility in early trade. The BSE Sensex cracked below the 16,000 mark in opening trade. Market breadth was weak. Weak global cues also dampened sentiment in early trade.
At 10:25 IST, the 30-share BSE Sensex was down 214.32 points or 1.33% at 15,848.36. It opened 211.46 points lower at 15,851.72 and slipped further to touch a low of 15,786.73 in early trade. At the day’s low, the Sensex lost 276.45 points. At the day’s high of 15,906.77, Sensex lost 156.41 points.
The broader based S&P CNX Nifty was down 60.70 points or 1.28% at 4,678.60
The market breadth was weak on BSE with 1475 shares declining as compared to 285 that advanced. 25 remained unchanged.
The total turnover on BSE amounted to Rs 843 crore
Among the 30-member Sensex pack, 23 advanced while the rest slipped.
India’s largest private sector power utility company in terms of sales, Reliance Infrastructure slumped 4.73% to Rs 1113 on 82,365 shares. It was the top loser from Sensex pack.
Satyam Computer Services (down 4.46% to Rs 495.50), Bharat Heavy Electricals (down 3.17% to Rs 1545), and Hindalco Industries (down 2.80% to Rs 177.15), edged lower from Sensex pack.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) was up 0.86% to Rs 2376 on 1.32 lakh shares. It was the top gainer from Sensex pack. The stock moved in a range of Rs 2318.60 and Rs 2378.45 so far during the day.
ONGC (up 0.59% to Rs 838), Tata Motors (down 0.74% to Rs 567.10), and Grasim Industries (up 0.82% to Rs 2229.50), edged higher from Sensex pack
At 10:25 IST, the 30-share BSE Sensex was down 214.32 points or 1.33% at 15,848.36. It opened 211.46 points lower at 15,851.72 and slipped further to touch a low of 15,786.73 in early trade. At the day’s low, the Sensex lost 276.45 points. At the day’s high of 15,906.77, Sensex lost 156.41 points.
The broader based S&P CNX Nifty was down 60.70 points or 1.28% at 4,678.60
The market breadth was weak on BSE with 1475 shares declining as compared to 285 that advanced. 25 remained unchanged.
The total turnover on BSE amounted to Rs 843 crore
Among the 30-member Sensex pack, 23 advanced while the rest slipped.
India’s largest private sector power utility company in terms of sales, Reliance Infrastructure slumped 4.73% to Rs 1113 on 82,365 shares. It was the top loser from Sensex pack.
Satyam Computer Services (down 4.46% to Rs 495.50), Bharat Heavy Electricals (down 3.17% to Rs 1545), and Hindalco Industries (down 2.80% to Rs 177.15), edged lower from Sensex pack.
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) was up 0.86% to Rs 2376 on 1.32 lakh shares. It was the top gainer from Sensex pack. The stock moved in a range of Rs 2318.60 and Rs 2378.45 so far during the day.
ONGC (up 0.59% to Rs 838), Tata Motors (down 0.74% to Rs 567.10), and Grasim Industries (up 0.82% to Rs 2229.50), edged higher from Sensex pack
Pre Market Report 03/06/2008
Local equities are braced for lower start tracking weakness in global markets. However local factors like fears of early election would play a bigger role in influencing the near term market trend. Wary investors had pressed heavy sales yesterday, 2 June 2008 over uncertainty that Left parties may withdraw support to the government.
Prime Minister Manmohan Singh reportedly said that the government is left with no option but to hike the fuel prices in the wake of soaring global crude oil prices. However government's move to hike fuel price will face challenge from Left, and may propel inflation above 10%.
On the other hand, if government does not hike prices, oil marketing companies will go bankrupt, spoiling its report card.
In coming weeks, markemen would be eyeing two things. One would be progress of monsoon and second would be the advance tax figures.
Asian markets were trading weak today, 3 June 2008. Shanghai Composite (down 0.46% at 3,443.10), Japan's Nikkei (down 1.51% at 14,221.79), Hong Kong's Hang Seng (down 1.49% at 24,461.11), Taiwan's Taiwan Weighted (down 0.84% at 8,651.14), Straits Times (down 0.96% at 3,157.45) and South Korea's Seoul Composite (down 1.17% at 1,825.89), edged lower.
US markets declined yesterday, 2 June 2008, on renewed fears that the credit crunch is yet to run its course after S&P downgraded debt ratings of three big securities companies. In the economic news, the May ISM index, rose 2.1%, suggesting a slight contraction in United States manufacturing activity.
The Dow Jones industrial average plunged 134.50, or 1.06%, to 12,503.82. The S&P 500 index slipped 14.71 points, or 1.05%, to 1,385.67. The Nasdaq Composite index was down 31.13 points, or 1.23%, to 2,491.53.
Back home, mounting political concern rattled bourses since second half of day's trading session, wiping-off steady early gains, yesterday, 2 June 2008. The 30-share BSE Sensex eroded a sharp 352.39 points or 2.15% to 16,063.18 and the broader based S&P CNX Nifty declined 130.5 points or 2.68% to shut shop at 4,739.60, on that day.
As per provisional data, foreign funds sold shares worth a net Rs 349.84 crore yesterday, 2 June 2008. Domestic funds bought shares worth a net Rs 9.81 crore on that day.
Foreign institutional investors (FIIs) were net buyers of Rs 242.85 crore in the futures & options segment yesterday, 2 June 2008. They were net sellers of index futures to the tune of Rs 923.24 crore and bought index options worth Rs 759.95 crore. They were net buyers of stock futures to the tune of Rs 390.03 crore and bought stock options worth Rs 16.11 crore.
Prime Minister Manmohan Singh reportedly said that the government is left with no option but to hike the fuel prices in the wake of soaring global crude oil prices. However government's move to hike fuel price will face challenge from Left, and may propel inflation above 10%.
On the other hand, if government does not hike prices, oil marketing companies will go bankrupt, spoiling its report card.
In coming weeks, markemen would be eyeing two things. One would be progress of monsoon and second would be the advance tax figures.
Asian markets were trading weak today, 3 June 2008. Shanghai Composite (down 0.46% at 3,443.10), Japan's Nikkei (down 1.51% at 14,221.79), Hong Kong's Hang Seng (down 1.49% at 24,461.11), Taiwan's Taiwan Weighted (down 0.84% at 8,651.14), Straits Times (down 0.96% at 3,157.45) and South Korea's Seoul Composite (down 1.17% at 1,825.89), edged lower.
US markets declined yesterday, 2 June 2008, on renewed fears that the credit crunch is yet to run its course after S&P downgraded debt ratings of three big securities companies. In the economic news, the May ISM index, rose 2.1%, suggesting a slight contraction in United States manufacturing activity.
The Dow Jones industrial average plunged 134.50, or 1.06%, to 12,503.82. The S&P 500 index slipped 14.71 points, or 1.05%, to 1,385.67. The Nasdaq Composite index was down 31.13 points, or 1.23%, to 2,491.53.
Back home, mounting political concern rattled bourses since second half of day's trading session, wiping-off steady early gains, yesterday, 2 June 2008. The 30-share BSE Sensex eroded a sharp 352.39 points or 2.15% to 16,063.18 and the broader based S&P CNX Nifty declined 130.5 points or 2.68% to shut shop at 4,739.60, on that day.
As per provisional data, foreign funds sold shares worth a net Rs 349.84 crore yesterday, 2 June 2008. Domestic funds bought shares worth a net Rs 9.81 crore on that day.
Foreign institutional investors (FIIs) were net buyers of Rs 242.85 crore in the futures & options segment yesterday, 2 June 2008. They were net sellers of index futures to the tune of Rs 923.24 crore and bought index options worth Rs 759.95 crore. They were net buyers of stock futures to the tune of Rs 390.03 crore and bought stock options worth Rs 16.11 crore.
Post Market Report 02.06.2008
Mounting political concern was the key culprit that haunted bourses
since second half of day's trading session, wiping-off steady early
gains. A late sell-off resulted in the benchmark index BSE Sensex
cracking below the physcological 16,000 mark, only to close
slightly above that level. However the S&P CNX Nifty shut shop
below 4,750 level. The market breadth was weak. Asian markets,
which opened before Indian markets were firm.
The market which was firm till early afternoon trade, witnessed a
sharp sell-off thereafter triggered by reports that the
Revolutionary Socialist Party (RSP), a member of the Left Front led
by the Communist Party of India-Marxist (CPM) was pulling out of
the United Progressive Alliance (UPA)-Left coordination committee.
Wary investors pressed sales over uncertainty that Left parties may
withdraw support to the government.
Weak European markets, slower manufacturing growth and widening
trade deficit, were the other demons that haunted the markets.
Shares from realty, metal and banking were axed brutally. However
auto stocks held firm throughout the day.
The 30-share BSE Sensex eroded a sharp 352.39 points or 2.15% to
16,063.18. The index climbed 217.15 points at day's high of
16,632.72, hit at the onset of trading session. Sensex lost 424.36
points at day's low of 15991.21.
The broader based S&P CNX Nifty declined 130.5 points or 2.68% to
shut shop at 4,739.60. Nifty has struck an intra-day high of
4,908.80 in opening trade. Nifty June 2008 futures were at 4696, a
sharp discount of 43.60 points as compared to spot closing of
4739.60.
The market breadth was weak on BSE with 600 shares advancing as
compared to 2066 stocks that declined. 50 stocks remained
unchanged.
The BSE Mid-Cap index declined 2.61% to 6,584.19 and BSE Small-Cap
index down 2.13% to 7,959.51.
Among the sectoral indices on BSE, the BSE Realty index (down 4% at
6,728.13), BSE PSU index (down 3.84% to 6,087.83), BSE Metal index
(down 3.66% to 16,295.26), BSE Power (down 3.66% to 2,828.74), BSE
Bankex (down 3.37% at 7,454.33), BSE Consumer Durables index (up
2.94% to 4,193.75), underperformed Sensex.
However the BSE Auto index (up 0.06% at 4,358.21), BSE FMCG index
(down 0.67% at 2,411.48), BSE Health Care index (down 1.04% at
4,350.42), BSE IT index (down 1.37% to 4,580.35), BSE TecK index
(down 1.48% to 3,561.57), BSE Oil & Gas index (down 1.83% to
10,206.71) BSE Capital Goods index (down 2.6% at 12,808.75)
outperformed Sensex.
BSE clocked a turnover of Rs 4,779 crore today compared to a
turnover of Rs 5514.14 crore on 30 May 2008.
The NSE futures & options (F&O) segment turnover was Rs 35,257.77
crore, which was slightly lower than Rs 35,883.79 crore on Friday,
30 May 2008.
Prime Minister Manmohan Singh reportedly said that the government
is left with no option but to hike the fuel prices in the wake of
soaring global crude oil prices. However government's move to hike
fuel price will face challenge from Left, and may propel inflation
above 10%.
On the other hand, if government does not hike prices, oil
marketing companies will go bankrupt, spoiling its report card.
As per petroleum minister's proposal, a hike of Rs 10 a litre in
petrol prices, Rs 5 per litre in diesel and Rs 50 per cylinder in
cooking fuel is to be considered to cut losses being incurred by
the state-run firms. But the Left parties had said they would
oppose any move to hike prices of transport and cooking fuels since
the average citizen was already burdened by high inflation.
Indian manufacturing activity slowed a fraction in May 2008 to its
lowest in 10 months, although output and new export orders rose,
but input and factory gate prices increased, a survey showed. The
ABN AMRO Bank purchasing managers' index (PMI) was a seasonally
adjusted 57.4 in May 2008 after 57.5 in April 2008, significantly
below its December 2007 reading of 61.9 which was the highest in
the survey's three-year history.
Meanwhile, trade deficit widened to $9.87 billion in April 2008 as
against $6.81 billion in April 2007. Exports grew to $14.4 billion
in April 2008-09, against $10.95 billion a year ago.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries declined 1.91% to Rs 2,355.70. It
came off from its high of Rs 2437.
Interest rate sensitives, realty and banking sectors suffered sharp
cut in today's trade. Indiabulls real Estate (down 1.86% to Rs
472.20), Unitech (down 6.47% to Rs 217.45) and DLF (down 3.37% to
Rs 567.65) edged lower from real estate sector.
Banking stocks declined on fears of further surge in inflation post
fuel price hike. HDFC Bank (down 3.78% to Rs 1,306.55), ICICI Bank
(down 2.97% to Rs 764.85) and State Bank of India (down 3.41% to Rs
1,394.10) edged lower.
Metal stocks declined after the Centre withdrew duty drawback
benefits on all iron & steel shipments. The move was aimed at
discouraging exports in the face of domestic inflationary
pressures. Tata Steel (down 3.86% to Rs 868.05), National Aluminium
Company (down 5.11% to Rs 506.60) and Hindalco Industries (down
5.05% to Rs 182.25), Steel Authority of India (down 3.54% to Rs
154) edged lower.
Power stocks declined on profit booing. Reliance Infrastructure
(down 4.9% to Rs 1,170.40), NTPC (down 6.39% to Rs 161.25), Power
Grid Corporation of India (down 4.11% to Rs 94.45), Reliance Power
(down 3.07% to Rs 228.60) and Tata Power Company (down 4.77% to Rs
1,292) declined.
However auto stocks held gains after posting rise in May 2008
monthly sales. Bajaj Auto rose 0.27% to Rs 576 after posting 7.57%
rise in motorcycle sales to 179,649 units in May 2008 over May
2007.The sale of total two wheelers rose 6.86% to 180,935 units, in
May 2008 over May 2007. The total two and three wheeler sale rose
by 4.17% to 201,511 units in May 2008 over May 2007.
India's largest motorcycle maker by sales Hero Honda Motors rose
5.6% to Rs 788.55. It reported a 9.54 % rise in its motorcycle
sales in May 2008 at 3,12,317 units as compared with 2,85,109 units
in May 2007.
India's largest car maker by sales Maruti Suzuki India rose 2.94%
to Rs 787. The company's total vehilcle sales rose 16% to 69,001
units in May 2008 over May 2007. Mahindra & Mahindra (up 0.76% to
Rs 597.05) edged higher. However Tata Motors declined 0.85% to Rs
572.
ITC (up 1.01% to Rs 219.85) and Bharti Airtel (up 0.14% to Rs
877.70) edged higher.
ACC (down 5.23% to Rs 626.10), Bharat Heavy Electricals (down4% to
Rs 1595.65), Reliance Communications (down 3.78% to Rs 555.35),
Ambuja Cements (down 3.1% to Rs 92.25), Ranbaxy Laboratories (down
2.76% to Rs 514.05), Wipro (down 2.51% to Rs 495.25 edged lower.
IFCI clocked the highest volume of 1.84 crore shares on BSE. Ispat
Industries (1.6 crore shares), Spice Communications (1.17 crore
shares), Chambal Fertilizers and Chemicals (1.14 crore shares) and
Reliance Natural Resources (94.69 lakh shares) are other volume
toppers in that order.
Essar Oil clocked the highest turnover of Rs 183.42 crore on BSE.
Reliance Capital (Rs 180.98 crore), Reliance Industries (Rs 173.06
crore), GSS America Infotech (Rs 142.8 crore) and Reliance
Petroleum (Rs 142.36 crore) are among other turnover toppers in
that order.
Among the side counters, private sector oil refiner Essar Oil
soared 5.61% to Rs 236.20. The company is reportedly mulling upto
$5 billion fresh debt to fund its $6 billion refinery capacity
expansion programme at Vadinar, Gujarat and for acquisition of oil
and gas blocks.
India's largest drug maker by market capitalisation Sun
Pharmaceuticals jumped 3.13% to Rs 1,446.80. The company reported
59.2% surge in net profit to Rs 247.89 crore on 32.1% rise in net
sales to Rs 780.74 crore in Q4 March 2008 over Q4 March 2007. The
company announced the results after trading hours on Friday, 30 May
2008.
Monsanto India plunged 14.12% to Rs 1653.10 after the company's
shares started trading at Rs 180 per share ex-dividend from today,
2 June 2008.
Sesa Goa slumped 7.94% to Rs 3,946.25 after reports that the
government has imposed 15% export duty on iron ore.
Zandu Pharmaceuticals Works galloped 19.54% to Rs 9,714.90 after
Emami raised its stake in the company to 27.51% for an undisclosed
amount.
Punj Lloyd plunged 10.53% to Rs 287.05 despite reporting 459.6%
surge in net profit to Rs 129.71 crore on 87.8% rise in net sales
to Rs 1499.40 crore in Q4 March 2008 over Q4 March 2007.
Sterlite Industries India declined 1.95% to Rs 916.70 after the
company agreed to buy assets of USA's third largest copper producer
Asarco for $2.6 billion in cash.
European markets, which opened after Indian market, were trading
weak. Key benchmark indices in France, Germany and UK were down by
between 1.1% to 1.36%.
Most of the Asian markets settled higher today, 2 June 2008. Hong
Kong's Hang Seng, Taiwan Weighted, Singapore's Straits Times and
Japan's Nikkei, China's Shanghai Composite were up by between 0.34%
to 1.22%.
However South Korea's Seoul Composite declined 0.24% at 1,847.99.
US markets closed mixed on Friday, 30 May 2008. Dell earnings were
better than expectations and rebound in oil price led technology
and energy shares higher. The Dow Jones industrial average fell 7.9
points to 12,638.32. However the technology-led Nasdaq Composite
index gained 14.34 points to 2, 522.66.
U.S. light, sweet crude oil futures dipped 14 cents to $127.21 a
barrel today, 2 June 2008 as traders took profits tracking the
dollar for direction.
India's GDP grew a strong 8.8% in Q4 March 2008 from a year
earlier, led by strong expansion in the services sector, data
released by the government on Friday, 30 May 2008 showed. The Q4
annual GDP growth matched an upwardly revised 8.8% growth in Q3
December 2007. The GDP growth was 9% in FY 2008 (year ended March
2008). The government had earlier estimated annual growth of 8.7%
in FY 2008.
India's inflation based on the wholesale price index rose 8.1% in
12 months to 17 May 2008, the highest reading in more than 3-½
years and above the previous week's annual rise of 7.82%,
government data released on Friday, 30 May 2008, showed. Inflation
for the week ended 22 March 2008 was revised upwards to 7.85% from
7%.
Liberalisation of imports, banning exports and a cut in excise and
customs duties are some of the many steps initiated by the United
Progressive Alliance (UPA) government to control inflation in the
country, Finance Minister P Chidambaram said on 1 June 2008.
since second half of day's trading session, wiping-off steady early
gains. A late sell-off resulted in the benchmark index BSE Sensex
cracking below the physcological 16,000 mark, only to close
slightly above that level. However the S&P CNX Nifty shut shop
below 4,750 level. The market breadth was weak. Asian markets,
which opened before Indian markets were firm.
The market which was firm till early afternoon trade, witnessed a
sharp sell-off thereafter triggered by reports that the
Revolutionary Socialist Party (RSP), a member of the Left Front led
by the Communist Party of India-Marxist (CPM) was pulling out of
the United Progressive Alliance (UPA)-Left coordination committee.
Wary investors pressed sales over uncertainty that Left parties may
withdraw support to the government.
Weak European markets, slower manufacturing growth and widening
trade deficit, were the other demons that haunted the markets.
Shares from realty, metal and banking were axed brutally. However
auto stocks held firm throughout the day.
The 30-share BSE Sensex eroded a sharp 352.39 points or 2.15% to
16,063.18. The index climbed 217.15 points at day's high of
16,632.72, hit at the onset of trading session. Sensex lost 424.36
points at day's low of 15991.21.
The broader based S&P CNX Nifty declined 130.5 points or 2.68% to
shut shop at 4,739.60. Nifty has struck an intra-day high of
4,908.80 in opening trade. Nifty June 2008 futures were at 4696, a
sharp discount of 43.60 points as compared to spot closing of
4739.60.
The market breadth was weak on BSE with 600 shares advancing as
compared to 2066 stocks that declined. 50 stocks remained
unchanged.
The BSE Mid-Cap index declined 2.61% to 6,584.19 and BSE Small-Cap
index down 2.13% to 7,959.51.
Among the sectoral indices on BSE, the BSE Realty index (down 4% at
6,728.13), BSE PSU index (down 3.84% to 6,087.83), BSE Metal index
(down 3.66% to 16,295.26), BSE Power (down 3.66% to 2,828.74), BSE
Bankex (down 3.37% at 7,454.33), BSE Consumer Durables index (up
2.94% to 4,193.75), underperformed Sensex.
However the BSE Auto index (up 0.06% at 4,358.21), BSE FMCG index
(down 0.67% at 2,411.48), BSE Health Care index (down 1.04% at
4,350.42), BSE IT index (down 1.37% to 4,580.35), BSE TecK index
(down 1.48% to 3,561.57), BSE Oil & Gas index (down 1.83% to
10,206.71) BSE Capital Goods index (down 2.6% at 12,808.75)
outperformed Sensex.
BSE clocked a turnover of Rs 4,779 crore today compared to a
turnover of Rs 5514.14 crore on 30 May 2008.
The NSE futures & options (F&O) segment turnover was Rs 35,257.77
crore, which was slightly lower than Rs 35,883.79 crore on Friday,
30 May 2008.
Prime Minister Manmohan Singh reportedly said that the government
is left with no option but to hike the fuel prices in the wake of
soaring global crude oil prices. However government's move to hike
fuel price will face challenge from Left, and may propel inflation
above 10%.
On the other hand, if government does not hike prices, oil
marketing companies will go bankrupt, spoiling its report card.
As per petroleum minister's proposal, a hike of Rs 10 a litre in
petrol prices, Rs 5 per litre in diesel and Rs 50 per cylinder in
cooking fuel is to be considered to cut losses being incurred by
the state-run firms. But the Left parties had said they would
oppose any move to hike prices of transport and cooking fuels since
the average citizen was already burdened by high inflation.
Indian manufacturing activity slowed a fraction in May 2008 to its
lowest in 10 months, although output and new export orders rose,
but input and factory gate prices increased, a survey showed. The
ABN AMRO Bank purchasing managers' index (PMI) was a seasonally
adjusted 57.4 in May 2008 after 57.5 in April 2008, significantly
below its December 2007 reading of 61.9 which was the highest in
the survey's three-year history.
Meanwhile, trade deficit widened to $9.87 billion in April 2008 as
against $6.81 billion in April 2007. Exports grew to $14.4 billion
in April 2008-09, against $10.95 billion a year ago.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries declined 1.91% to Rs 2,355.70. It
came off from its high of Rs 2437.
Interest rate sensitives, realty and banking sectors suffered sharp
cut in today's trade. Indiabulls real Estate (down 1.86% to Rs
472.20), Unitech (down 6.47% to Rs 217.45) and DLF (down 3.37% to
Rs 567.65) edged lower from real estate sector.
Banking stocks declined on fears of further surge in inflation post
fuel price hike. HDFC Bank (down 3.78% to Rs 1,306.55), ICICI Bank
(down 2.97% to Rs 764.85) and State Bank of India (down 3.41% to Rs
1,394.10) edged lower.
Metal stocks declined after the Centre withdrew duty drawback
benefits on all iron & steel shipments. The move was aimed at
discouraging exports in the face of domestic inflationary
pressures. Tata Steel (down 3.86% to Rs 868.05), National Aluminium
Company (down 5.11% to Rs 506.60) and Hindalco Industries (down
5.05% to Rs 182.25), Steel Authority of India (down 3.54% to Rs
154) edged lower.
Power stocks declined on profit booing. Reliance Infrastructure
(down 4.9% to Rs 1,170.40), NTPC (down 6.39% to Rs 161.25), Power
Grid Corporation of India (down 4.11% to Rs 94.45), Reliance Power
(down 3.07% to Rs 228.60) and Tata Power Company (down 4.77% to Rs
1,292) declined.
However auto stocks held gains after posting rise in May 2008
monthly sales. Bajaj Auto rose 0.27% to Rs 576 after posting 7.57%
rise in motorcycle sales to 179,649 units in May 2008 over May
2007.The sale of total two wheelers rose 6.86% to 180,935 units, in
May 2008 over May 2007. The total two and three wheeler sale rose
by 4.17% to 201,511 units in May 2008 over May 2007.
India's largest motorcycle maker by sales Hero Honda Motors rose
5.6% to Rs 788.55. It reported a 9.54 % rise in its motorcycle
sales in May 2008 at 3,12,317 units as compared with 2,85,109 units
in May 2007.
India's largest car maker by sales Maruti Suzuki India rose 2.94%
to Rs 787. The company's total vehilcle sales rose 16% to 69,001
units in May 2008 over May 2007. Mahindra & Mahindra (up 0.76% to
Rs 597.05) edged higher. However Tata Motors declined 0.85% to Rs
572.
ITC (up 1.01% to Rs 219.85) and Bharti Airtel (up 0.14% to Rs
877.70) edged higher.
ACC (down 5.23% to Rs 626.10), Bharat Heavy Electricals (down4% to
Rs 1595.65), Reliance Communications (down 3.78% to Rs 555.35),
Ambuja Cements (down 3.1% to Rs 92.25), Ranbaxy Laboratories (down
2.76% to Rs 514.05), Wipro (down 2.51% to Rs 495.25 edged lower.
IFCI clocked the highest volume of 1.84 crore shares on BSE. Ispat
Industries (1.6 crore shares), Spice Communications (1.17 crore
shares), Chambal Fertilizers and Chemicals (1.14 crore shares) and
Reliance Natural Resources (94.69 lakh shares) are other volume
toppers in that order.
Essar Oil clocked the highest turnover of Rs 183.42 crore on BSE.
Reliance Capital (Rs 180.98 crore), Reliance Industries (Rs 173.06
crore), GSS America Infotech (Rs 142.8 crore) and Reliance
Petroleum (Rs 142.36 crore) are among other turnover toppers in
that order.
Among the side counters, private sector oil refiner Essar Oil
soared 5.61% to Rs 236.20. The company is reportedly mulling upto
$5 billion fresh debt to fund its $6 billion refinery capacity
expansion programme at Vadinar, Gujarat and for acquisition of oil
and gas blocks.
India's largest drug maker by market capitalisation Sun
Pharmaceuticals jumped 3.13% to Rs 1,446.80. The company reported
59.2% surge in net profit to Rs 247.89 crore on 32.1% rise in net
sales to Rs 780.74 crore in Q4 March 2008 over Q4 March 2007. The
company announced the results after trading hours on Friday, 30 May
2008.
Monsanto India plunged 14.12% to Rs 1653.10 after the company's
shares started trading at Rs 180 per share ex-dividend from today,
2 June 2008.
Sesa Goa slumped 7.94% to Rs 3,946.25 after reports that the
government has imposed 15% export duty on iron ore.
Zandu Pharmaceuticals Works galloped 19.54% to Rs 9,714.90 after
Emami raised its stake in the company to 27.51% for an undisclosed
amount.
Punj Lloyd plunged 10.53% to Rs 287.05 despite reporting 459.6%
surge in net profit to Rs 129.71 crore on 87.8% rise in net sales
to Rs 1499.40 crore in Q4 March 2008 over Q4 March 2007.
Sterlite Industries India declined 1.95% to Rs 916.70 after the
company agreed to buy assets of USA's third largest copper producer
Asarco for $2.6 billion in cash.
European markets, which opened after Indian market, were trading
weak. Key benchmark indices in France, Germany and UK were down by
between 1.1% to 1.36%.
Most of the Asian markets settled higher today, 2 June 2008. Hong
Kong's Hang Seng, Taiwan Weighted, Singapore's Straits Times and
Japan's Nikkei, China's Shanghai Composite were up by between 0.34%
to 1.22%.
However South Korea's Seoul Composite declined 0.24% at 1,847.99.
US markets closed mixed on Friday, 30 May 2008. Dell earnings were
better than expectations and rebound in oil price led technology
and energy shares higher. The Dow Jones industrial average fell 7.9
points to 12,638.32. However the technology-led Nasdaq Composite
index gained 14.34 points to 2, 522.66.
U.S. light, sweet crude oil futures dipped 14 cents to $127.21 a
barrel today, 2 June 2008 as traders took profits tracking the
dollar for direction.
India's GDP grew a strong 8.8% in Q4 March 2008 from a year
earlier, led by strong expansion in the services sector, data
released by the government on Friday, 30 May 2008 showed. The Q4
annual GDP growth matched an upwardly revised 8.8% growth in Q3
December 2007. The GDP growth was 9% in FY 2008 (year ended March
2008). The government had earlier estimated annual growth of 8.7%
in FY 2008.
India's inflation based on the wholesale price index rose 8.1% in
12 months to 17 May 2008, the highest reading in more than 3-½
years and above the previous week's annual rise of 7.82%,
government data released on Friday, 30 May 2008, showed. Inflation
for the week ended 22 March 2008 was revised upwards to 7.85% from
7%.
Liberalisation of imports, banning exports and a cut in excise and
customs duties are some of the many steps initiated by the United
Progressive Alliance (UPA) government to control inflation in the
country, Finance Minister P Chidambaram said on 1 June 2008.
Monday, June 2, 2008
Pre Market Report 02/06/2008
The market is likely to stay range-bound amidst flat global cues. In absence of any near term major domestic trigger with Q4 March 2008 results almost over, market is likely to dance in line with global cues.
However in coming weeks, markemen would be eyeing two things. One would be progress of monsoon and second would be the advance tax figures.
Sentiment may stay cautious ahead of the impending decision on fuel prices.
Asian markets were trading mixed today, 2 June 2008. Hong Kong's Hang Seng (up 0.24% at 24,592.62), Taiwan Weighted (up 0.72% at 8,681.30), Singapore's Straits Times (up 0.03% at 3,193.55) and Japan's Nikkei (up 0.21% at 14,349.15) advanced.
However China's Shanghai Composite (down 0.21% at 3,426.27), Seoul Composite (down 0.27% at 1,847.0), declined
US markets closed mixed on Friday, 30 May 2008. Dell earnings were better than expectations and rebound in oil price led technology and energy shares higher. The Dow Jones industrial average fell 7.9 points to 12,638.32. However the technology-led Nasdaq Composite index gained 14.34 points to 2, 522.66.
Back home, the market posted decent gains on Friday, 30 May 2008, led by fall in global crude oil prices and strong Q4 GDP data. The 30-share BSE Sensex rose 99.31 points or 0.61% to 16,415.57 and the broader based S&P CNX Nifty rose 34.8 points or 0.72% at 4870.10, on that day.
The BSE Sensex declined 234.07 points or 1.41% to 16,415.57 in the week ended Friday, 30 May 2008. S&P CNX Nifty lost 76.45 points or 1.54% to 4,870.10 in the week.
As per provisional data, foreign funds purchased shares worth a net Rs 106.37 crore on Friday, 30 May 2008. Domestic funds bought shares worth a net Rs 729.93 crore on that day.
Foreign institutional investors (FIIs) were net buyers of Rs 333.22 crore in the futures & options segment on Friday, 30 May 2008. They were net buyers of index futures to the tune of Rs 31.71 crore and bought index options worth Rs 577.10 crore. They were net sellers of stock futures to the tune of Rs 364.21 crore and bought stock options worth Rs 88.62 crore.
U.S. light, sweet crude oil futures dipped 14 cents to $127.21 a barrel today, 2 June 2008 as traders took profits tracking the dollar for direction.
India's GDP grew a strong 8.8% in Q4 March 2008 from a year earlier, led by strong expansion in the services sector, data released by the government on Friday, 30 May 2008 showed. The Q4 annual GDP growth matched an upwardly revised 8.8% growth in Q3 December 2007. The GDP growth was 9% in FY 2008 (year ended March 2008). The government had earlier estimated annual growth of 8.7% in FY 2008.
India's inflation based on the wholesale price index rose 8.1% in 12 months to 17 May 2008, the highest reading in more than 3-½ years and above the previous week's annual rise of 7.82%, government data released on Friday, 30 May 2008, showed. Inflation for the week ended 22 March 2008 was revised upwards to 7.85% from 7%.
However in coming weeks, markemen would be eyeing two things. One would be progress of monsoon and second would be the advance tax figures.
Sentiment may stay cautious ahead of the impending decision on fuel prices.
Asian markets were trading mixed today, 2 June 2008. Hong Kong's Hang Seng (up 0.24% at 24,592.62), Taiwan Weighted (up 0.72% at 8,681.30), Singapore's Straits Times (up 0.03% at 3,193.55) and Japan's Nikkei (up 0.21% at 14,349.15) advanced.
However China's Shanghai Composite (down 0.21% at 3,426.27), Seoul Composite (down 0.27% at 1,847.0), declined
US markets closed mixed on Friday, 30 May 2008. Dell earnings were better than expectations and rebound in oil price led technology and energy shares higher. The Dow Jones industrial average fell 7.9 points to 12,638.32. However the technology-led Nasdaq Composite index gained 14.34 points to 2, 522.66.
Back home, the market posted decent gains on Friday, 30 May 2008, led by fall in global crude oil prices and strong Q4 GDP data. The 30-share BSE Sensex rose 99.31 points or 0.61% to 16,415.57 and the broader based S&P CNX Nifty rose 34.8 points or 0.72% at 4870.10, on that day.
The BSE Sensex declined 234.07 points or 1.41% to 16,415.57 in the week ended Friday, 30 May 2008. S&P CNX Nifty lost 76.45 points or 1.54% to 4,870.10 in the week.
As per provisional data, foreign funds purchased shares worth a net Rs 106.37 crore on Friday, 30 May 2008. Domestic funds bought shares worth a net Rs 729.93 crore on that day.
Foreign institutional investors (FIIs) were net buyers of Rs 333.22 crore in the futures & options segment on Friday, 30 May 2008. They were net buyers of index futures to the tune of Rs 31.71 crore and bought index options worth Rs 577.10 crore. They were net sellers of stock futures to the tune of Rs 364.21 crore and bought stock options worth Rs 88.62 crore.
U.S. light, sweet crude oil futures dipped 14 cents to $127.21 a barrel today, 2 June 2008 as traders took profits tracking the dollar for direction.
India's GDP grew a strong 8.8% in Q4 March 2008 from a year earlier, led by strong expansion in the services sector, data released by the government on Friday, 30 May 2008 showed. The Q4 annual GDP growth matched an upwardly revised 8.8% growth in Q3 December 2007. The GDP growth was 9% in FY 2008 (year ended March 2008). The government had earlier estimated annual growth of 8.7% in FY 2008.
India's inflation based on the wholesale price index rose 8.1% in 12 months to 17 May 2008, the highest reading in more than 3-½ years and above the previous week's annual rise of 7.82%, government data released on Friday, 30 May 2008, showed. Inflation for the week ended 22 March 2008 was revised upwards to 7.85% from 7%.
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