After us closed high, asian markets trading in positive direction
Nikkei 225 14,179.62 +205.89 +1.47%
Hang Seng 22,944.53 +352.23 +1.56%
Straits Times 3,026.93 +47.37 +1.59%
Monday, June 16, 2008
US markets ended on a high node
US markets ended hign on friday
Dow 12,307.35 +165.77 +1.37%
Nasdaq 2,454.50 +50.15 +2.09%
S&P 500 1,360.03 +20.16 +1.50%
Dow 12,307.35 +165.77 +1.37%
Nasdaq 2,454.50 +50.15 +2.09%
S&P 500 1,360.03 +20.16 +1.50%
Niraj Cement Structurals IPO -IPO Allotment Status
IPO Allotment Status is now available online for Niraj Cement Structurals Ltd IPO.
Niraj Cement Structurals Ltd IPO was open on May 26, 2008 and closed on May 30, 2008. IPO was oversubscribed by 1.74 times (3.8053 times in retail).
Click here for the status of your application
Niraj Cement Structurals Ltd IPO was open on May 26, 2008 and closed on May 30, 2008. IPO was oversubscribed by 1.74 times (3.8053 times in retail).
Click here for the status of your application
Saturday, June 14, 2008
Post Market Report 13/06/2008
The market today snapped last two days' winning streak as data
showing a surge in inflation to a seven-year high and weak European
markets kept bulls in check. Sensex had gained 360.95 points in
last two trading sessions supported by strong global cues and
robust April 2008 industrial production data announced by the
Indian government during trading hours on 12 June 2008.
After holding in green for a better part of the day, banking
declined in late trade. FMCG, power, realty and metal stocks fell.
Investors took shelter in small-cap and mid-cap stocks causing
sharply rally in some of the stocks in this segment.
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.
Inflation based on the the wholesale price index rose 8.75% in the
12 months to 31 May 2008, above the previous week's annual rise of
8.24%, government data released today, 13 June 2008, afternoon
showed. The reading is highest since 10 February 2001, when it was
8.77%.
European stocks drifted lower, trimming some of the previous
session's gains as inflation worries remained high on investors'
minds ahead of US consumer price data. Key benchmark indices in
France, Germany and UK were down by between 0.41% to 0.89%.
In a relatively range bound trade, the 30-share BSE Sensex lost
60.58 points or 0.4% at 15,189.62. At the day's low of 15,135.81,
Sensex lost 114.39 points in mid-afternoon trade. At the day's high
of 15,337.10 Sensex gained 86.9 points in early trade.
The broader based S&P CNX Nifty was down 22.25 points or 0.49% at
4,517.10. Nifty June 2008 futures were at 4482.10, at a discount of
35 points as compared to spot closing of 4517.10.
The BSE clocked a turnover of Rs 5,827 crore today as compared to a
turnover of Rs 6,233.42 crore on 12 June 2008.
NSE's futures & options (F&O) segment turnover was Rs 41,003.40
crore, which was lower than Rs 52,333.46 crore on Thursday, 12 June
2008.
The market breadth was positive on BSE with 1,445 shares advancing
as compared to 1156 that declined. 77 remained unchanged. Among the
30 stocks from Sensex pack, 21 were trading in red.
The BSE Mid-Cap index rose 0.08% to 6,228.17 and BSE Small-Cap
index was up 0.74% to 7,581.72. Both these indices outperformed
Sensex.
BSE Consumer Durables index (up 1.74% to 3,981.55), BSE HealthCare
index (up 1.19% at 4,494.02), BSE Bankex (up 0.26% at 7,056.24),
BSE Capital Goods (up 0.25% at 12,019.16), BSE PSU index (up 0.11%
to 6,528.94), BSE TecK index (down 0.18% to 3,381.05), BSE IT index
(down 0.22% to 4,336.06) outperformed Sensex.
The BSE Realty index (down 2.59% at 5,670.23), BSE Metal index
(down 2.08% to 15,185.92), BSE FMCG index (down 1.2% to 2,241.53),
BSE Power index (down 1.08% to 2,627.73), The BSE Auto (down 0.45%
at 4,129.79), BSE Oil & Gas index (down 0.58% to 9,917.01)
underperformed Sensex.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries declined 0.59% to Rs 2,268.30.
Healthcare stocks rose. India's biggest drugmaker by sales Ranbaxy
Laboratories rose 4.31% to Rs 566.90. The stock rose on heavy
volume of 22.34 lakh shares on BSE. Drug maker Pfizer Inc may
reportedly make a hostile bid for the 65% stake in Ranbaxy not held
by its founders. Daiichi Sankyo Co., Japan's third-largest drug
maker, had agreed on 11 June 2008 to buy a controlling stake in
Ranbaxy for as much as $4.6 billion.
Pfizer's Indian arm surged 4.76% to Rs 620. Dr Reddy's Laboratories
(up 3.96% to Rs 728.55) and Biocon (up 1.34% to Rs 483.15) edged
higher.
Rate sensitive realty stocks fell after last two days' gains.
Indiabulls Real Estate (down 5.52% to Rs 373.15), DLF (down 3.61%
to Rs 479.75) and Unitech (down 1% to Rs 187.25) edged lower.
Metal stocks declined. Steel Authority of India (down 1.81% to Rs
159.80), Sterlite Industries (down 4.27% to Rs 770.40), Hindalco
Industries (down 1.27% to Rs 175.40) and Tata Steel (down 1.81% to
Rs 841.35) edged lower. However India's second largest aluminium
producer by sales National Aluminium Company rose 1.89% to Rs
489.40.
Power stocks edged lower. Tata Power Company (down 4.87% to Rs
1,252.45), Reliance Infrastructure (down 2.5% to Rs 1,020.30), NTPC
(down 1.23% to Rs 161.10) edged lower.
FMCG stocks declined. Hindustan Unilever (down 2.54% to Rs 226.55),
ITC (down 1.25% to Rs 197.45) and Nestle India (down 1.12% to Rs
1,700) edged lower.
Bank stocks declined after data released today afternoon showed a
surge in inflation to highest level in more than seven years.
India's largest commercial bank State Bank of India declined 0.38%
to Rs 1,334.55. The asset-liability committee of State Bank of
India (SBI), will be reviewing interest rates today following the
latest RBI move to raise repo rate.
The Reserve Bank of India on Wednesday, 11 June 2008, hiked repo
rate by 25 basis points to 8% with immediate effect in an effort to
contain rising inflation.
India's second largest private sector bank by net profit HDFC Bank
declined 3.45% to Rs 1,123.35. India's largest private sector bank
by net profit ICICI Bank rose 3.03% to Rs 764.80.
India's largest dedicated housing finance firm by operating income
HDFC declined 1.78% to Rs 2,133.30. HDFC chairman Deepak Parekh
said on Thursday, 12 June 2008, 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 Consultancy Services (up 2.16% to Rs 907.65), Tata Motors (up
1.74% to Rs 516.20), ONGC (up 1.21% to Rs 841.25), Bharat Heavy
Electricals (up 2.79% to Rs 1,561.10), and ACC (up 0.31% to Rs
634.10), edged higher from Sensex pack.
Jaiprakash Associates (down 4.03% to Rs 178.70), Cipla (down 2.63%
to Rs 211.30), Maruti Suzuki India (down 1.97% to Rs 721.85),
Grasim Industries (down 1.27% to Rs 2,182.30), ITC (down 1.25% to
Rs 197.45) edged lower from Sensex pack.
India's third largest IT exporter by sales Wipro declined 1.09% to
Rs 477.85. It is reportedly bidding for 12 contracts worth at least
$100 million each as it seeks bigger clients.
India' largest engineering and construction firm by sales Larsen &
Toubro was up 0.25% to Rs 2,710.15. Due to unfavourable market
condition, L&T has reportedly decided to delay the listing of its
software business unit L&T Infotech to 2009-10. The firm had
earlier decided to go for L&T Infotech's initial public offer in
the second half of this fiscal.
Chambal Fertiliser and Chemicals clocked the highest volume of 2.8
crore shares on BSE. Nagarjuna Fertiliser and Chemicals (1.78 crore
shares), Reliance Petroleum (1.37 crore shares), Reliance Natural
Resources (1.29 crore shares) and IFCI (1.26 crore shares) were
other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 269.58 crore on
BSE. Anu's Laboratories (Rs 261.64 crore), Chambal Fertiliser and
Chemicals (Rs 248.3 crore), Reliance Petroleum (Rs 246.7 crore) and
Reliance Industries (Rs 220.7 crore) were the other turnover
toppers in that order.
Asian markets were trading mixed. Key benchmark indices in Hong
Kong, China, South Korea, were down by between 0.99% to 3%. Key
benchmark indices in Japan, Singapore and Taiwan were up by between
0.46% to 0.54%.
US stocks rose on Thursday after a stronger-than-expected May 2008
retail sales report and a $46 billion takeover bid for
Anheuser-Busch from an overseas rival helped the market recover
from a string of deep losses. The Dow Jones Industrial Average
gained 57.81 points or 0.48% at 12,141.58. The tech-laden Nasdaq
Composite Index gained 10.34 points or 0.43% at 2,404.35.
Oil was trading below $137 a barrel, near record highs of $139.12
hit last Friday, 6 June 2008.
Short covering by traders following improved industrial production
data for April 2008 triggered a strong intra-day rebound on the
bourses yesterday, 12 June 2008. The barometer index BSE Sensex
gained 64.88 points or 0.43% to settle at 15,250.20, bouncing back
from an intra-day 437.33-points fall.
The market's concerns are that higher interest rates will raise
borrowing costs and hit bottom line of corporates. Banks are likely
to raise interest following a strong signal from the Reserve Bank
of India (RBI) that banks' cost of funds is headed north when the
central bank raised repo rate, a short term rate, by 25 basis
points on Wednesday, 11 June 2008. The repo rate is the rate at
which RBI lends money to banks under its liquidity adjustment
facility.
The stock market's another concern is that high interest rates may
delay expansion plans of corporates which in turn may impact future
earnings growth. A latest research report released by Lehman
Brothers pointed out that the cost of borrowing is likely to
increase further. According to Lehman inflation is unlikely to
tread below 8% in 2008. Lehman expects another 25 basis points hike
in repo rate in third quarter and a 100 basis points hike in banks'
cash reserve ratio (CRR) later this year.
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 5321.50 crore
in the first few days of this month, till 11 June 2008. They had
dumped stocks worth a net Rs 5011.50 crore in May 2008. Their
outflow in calendar 2008 reached Rs 20690.90 crore, till 11 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.
India's economic growth has slowed down as fall in consumer demand
caused by rise in interest rates. Industrial output rose 8.1% in
2007/08 (April-March) compared with 11.6% growth in 2006/07.
According to a report on the Indian economy made at the beginning
of this month by Morgan Stanley, weak consumption growth and
slowing business investment will slow India's gross domestic growth
(GDP) growth to 6.7% in the quarter ending March 2009 from 8.8%
growth in the quarter ended March 2008. It, however, states that,
on a long-term basis, an interplay of three key macro factors viz.
favourable demographics, continuation of economic reform process by
the government, and globalization, justify a gradual speeding up in
India's pace of growth.
According to a recent 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. The
Union government on Wednesday, 4 June 2008, raised retail petrol
and diesel prices by about 10%, more than expected, to help curb
losses at its state-owned refiners arising from surging global
crude oil prices.
showing a surge in inflation to a seven-year high and weak European
markets kept bulls in check. Sensex had gained 360.95 points in
last two trading sessions supported by strong global cues and
robust April 2008 industrial production data announced by the
Indian government during trading hours on 12 June 2008.
After holding in green for a better part of the day, banking
declined in late trade. FMCG, power, realty and metal stocks fell.
Investors took shelter in small-cap and mid-cap stocks causing
sharply rally in some of the stocks in this segment.
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.
Inflation based on the the wholesale price index rose 8.75% in the
12 months to 31 May 2008, above the previous week's annual rise of
8.24%, government data released today, 13 June 2008, afternoon
showed. The reading is highest since 10 February 2001, when it was
8.77%.
European stocks drifted lower, trimming some of the previous
session's gains as inflation worries remained high on investors'
minds ahead of US consumer price data. Key benchmark indices in
France, Germany and UK were down by between 0.41% to 0.89%.
In a relatively range bound trade, the 30-share BSE Sensex lost
60.58 points or 0.4% at 15,189.62. At the day's low of 15,135.81,
Sensex lost 114.39 points in mid-afternoon trade. At the day's high
of 15,337.10 Sensex gained 86.9 points in early trade.
The broader based S&P CNX Nifty was down 22.25 points or 0.49% at
4,517.10. Nifty June 2008 futures were at 4482.10, at a discount of
35 points as compared to spot closing of 4517.10.
The BSE clocked a turnover of Rs 5,827 crore today as compared to a
turnover of Rs 6,233.42 crore on 12 June 2008.
NSE's futures & options (F&O) segment turnover was Rs 41,003.40
crore, which was lower than Rs 52,333.46 crore on Thursday, 12 June
2008.
The market breadth was positive on BSE with 1,445 shares advancing
as compared to 1156 that declined. 77 remained unchanged. Among the
30 stocks from Sensex pack, 21 were trading in red.
The BSE Mid-Cap index rose 0.08% to 6,228.17 and BSE Small-Cap
index was up 0.74% to 7,581.72. Both these indices outperformed
Sensex.
BSE Consumer Durables index (up 1.74% to 3,981.55), BSE HealthCare
index (up 1.19% at 4,494.02), BSE Bankex (up 0.26% at 7,056.24),
BSE Capital Goods (up 0.25% at 12,019.16), BSE PSU index (up 0.11%
to 6,528.94), BSE TecK index (down 0.18% to 3,381.05), BSE IT index
(down 0.22% to 4,336.06) outperformed Sensex.
The BSE Realty index (down 2.59% at 5,670.23), BSE Metal index
(down 2.08% to 15,185.92), BSE FMCG index (down 1.2% to 2,241.53),
BSE Power index (down 1.08% to 2,627.73), The BSE Auto (down 0.45%
at 4,129.79), BSE Oil & Gas index (down 0.58% to 9,917.01)
underperformed Sensex.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries declined 0.59% to Rs 2,268.30.
Healthcare stocks rose. India's biggest drugmaker by sales Ranbaxy
Laboratories rose 4.31% to Rs 566.90. The stock rose on heavy
volume of 22.34 lakh shares on BSE. Drug maker Pfizer Inc may
reportedly make a hostile bid for the 65% stake in Ranbaxy not held
by its founders. Daiichi Sankyo Co., Japan's third-largest drug
maker, had agreed on 11 June 2008 to buy a controlling stake in
Ranbaxy for as much as $4.6 billion.
Pfizer's Indian arm surged 4.76% to Rs 620. Dr Reddy's Laboratories
(up 3.96% to Rs 728.55) and Biocon (up 1.34% to Rs 483.15) edged
higher.
Rate sensitive realty stocks fell after last two days' gains.
Indiabulls Real Estate (down 5.52% to Rs 373.15), DLF (down 3.61%
to Rs 479.75) and Unitech (down 1% to Rs 187.25) edged lower.
Metal stocks declined. Steel Authority of India (down 1.81% to Rs
159.80), Sterlite Industries (down 4.27% to Rs 770.40), Hindalco
Industries (down 1.27% to Rs 175.40) and Tata Steel (down 1.81% to
Rs 841.35) edged lower. However India's second largest aluminium
producer by sales National Aluminium Company rose 1.89% to Rs
489.40.
Power stocks edged lower. Tata Power Company (down 4.87% to Rs
1,252.45), Reliance Infrastructure (down 2.5% to Rs 1,020.30), NTPC
(down 1.23% to Rs 161.10) edged lower.
FMCG stocks declined. Hindustan Unilever (down 2.54% to Rs 226.55),
ITC (down 1.25% to Rs 197.45) and Nestle India (down 1.12% to Rs
1,700) edged lower.
Bank stocks declined after data released today afternoon showed a
surge in inflation to highest level in more than seven years.
India's largest commercial bank State Bank of India declined 0.38%
to Rs 1,334.55. The asset-liability committee of State Bank of
India (SBI), will be reviewing interest rates today following the
latest RBI move to raise repo rate.
The Reserve Bank of India on Wednesday, 11 June 2008, hiked repo
rate by 25 basis points to 8% with immediate effect in an effort to
contain rising inflation.
India's second largest private sector bank by net profit HDFC Bank
declined 3.45% to Rs 1,123.35. India's largest private sector bank
by net profit ICICI Bank rose 3.03% to Rs 764.80.
India's largest dedicated housing finance firm by operating income
HDFC declined 1.78% to Rs 2,133.30. HDFC chairman Deepak Parekh
said on Thursday, 12 June 2008, 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 Consultancy Services (up 2.16% to Rs 907.65), Tata Motors (up
1.74% to Rs 516.20), ONGC (up 1.21% to Rs 841.25), Bharat Heavy
Electricals (up 2.79% to Rs 1,561.10), and ACC (up 0.31% to Rs
634.10), edged higher from Sensex pack.
Jaiprakash Associates (down 4.03% to Rs 178.70), Cipla (down 2.63%
to Rs 211.30), Maruti Suzuki India (down 1.97% to Rs 721.85),
Grasim Industries (down 1.27% to Rs 2,182.30), ITC (down 1.25% to
Rs 197.45) edged lower from Sensex pack.
India's third largest IT exporter by sales Wipro declined 1.09% to
Rs 477.85. It is reportedly bidding for 12 contracts worth at least
$100 million each as it seeks bigger clients.
India' largest engineering and construction firm by sales Larsen &
Toubro was up 0.25% to Rs 2,710.15. Due to unfavourable market
condition, L&T has reportedly decided to delay the listing of its
software business unit L&T Infotech to 2009-10. The firm had
earlier decided to go for L&T Infotech's initial public offer in
the second half of this fiscal.
Chambal Fertiliser and Chemicals clocked the highest volume of 2.8
crore shares on BSE. Nagarjuna Fertiliser and Chemicals (1.78 crore
shares), Reliance Petroleum (1.37 crore shares), Reliance Natural
Resources (1.29 crore shares) and IFCI (1.26 crore shares) were
other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 269.58 crore on
BSE. Anu's Laboratories (Rs 261.64 crore), Chambal Fertiliser and
Chemicals (Rs 248.3 crore), Reliance Petroleum (Rs 246.7 crore) and
Reliance Industries (Rs 220.7 crore) were the other turnover
toppers in that order.
Asian markets were trading mixed. Key benchmark indices in Hong
Kong, China, South Korea, were down by between 0.99% to 3%. Key
benchmark indices in Japan, Singapore and Taiwan were up by between
0.46% to 0.54%.
US stocks rose on Thursday after a stronger-than-expected May 2008
retail sales report and a $46 billion takeover bid for
Anheuser-Busch from an overseas rival helped the market recover
from a string of deep losses. The Dow Jones Industrial Average
gained 57.81 points or 0.48% at 12,141.58. The tech-laden Nasdaq
Composite Index gained 10.34 points or 0.43% at 2,404.35.
Oil was trading below $137 a barrel, near record highs of $139.12
hit last Friday, 6 June 2008.
Short covering by traders following improved industrial production
data for April 2008 triggered a strong intra-day rebound on the
bourses yesterday, 12 June 2008. The barometer index BSE Sensex
gained 64.88 points or 0.43% to settle at 15,250.20, bouncing back
from an intra-day 437.33-points fall.
The market's concerns are that higher interest rates will raise
borrowing costs and hit bottom line of corporates. Banks are likely
to raise interest following a strong signal from the Reserve Bank
of India (RBI) that banks' cost of funds is headed north when the
central bank raised repo rate, a short term rate, by 25 basis
points on Wednesday, 11 June 2008. The repo rate is the rate at
which RBI lends money to banks under its liquidity adjustment
facility.
The stock market's another concern is that high interest rates may
delay expansion plans of corporates which in turn may impact future
earnings growth. A latest research report released by Lehman
Brothers pointed out that the cost of borrowing is likely to
increase further. According to Lehman inflation is unlikely to
tread below 8% in 2008. Lehman expects another 25 basis points hike
in repo rate in third quarter and a 100 basis points hike in banks'
cash reserve ratio (CRR) later this year.
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 5321.50 crore
in the first few days of this month, till 11 June 2008. They had
dumped stocks worth a net Rs 5011.50 crore in May 2008. Their
outflow in calendar 2008 reached Rs 20690.90 crore, till 11 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.
India's economic growth has slowed down as fall in consumer demand
caused by rise in interest rates. Industrial output rose 8.1% in
2007/08 (April-March) compared with 11.6% growth in 2006/07.
According to a report on the Indian economy made at the beginning
of this month by Morgan Stanley, weak consumption growth and
slowing business investment will slow India's gross domestic growth
(GDP) growth to 6.7% in the quarter ending March 2009 from 8.8%
growth in the quarter ended March 2008. It, however, states that,
on a long-term basis, an interplay of three key macro factors viz.
favourable demographics, continuation of economic reform process by
the government, and globalization, justify a gradual speeding up in
India's pace of growth.
According to a recent 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. The
Union government on Wednesday, 4 June 2008, raised retail petrol
and diesel prices by about 10%, more than expected, to help curb
losses at its state-owned refiners arising from surging global
crude oil prices.
Friday, June 13, 2008
Market volatile after inflation data
The key benchmark indices were volatile after inflation data which hit the market in early afternoon trade. Banking, IT stocks rose while realty and metal stocks fell. Asian markets were trading mixed. The market breadth was strong due to buying in select mid-cap and small-cap stocks.
Inflation based on the the wholesale price index rose 8.75% in the 12 months to 31 May 2008, above the previous week's annual rise of 8.24%, government data released today, 13 June 2008, afternoon showed. The reading is highest since 10 February 2001, when it was 8.77%.
At 12:20 IST, the 30-share BSE Sensex was down 61.45 points or 0.4% at 15,190.14. At the day’s low of 15,149.98, Sensex lost 100.20 points in mid-morning trade. At the day’s high of 15,337.10 Sensex gained 86.9 points in early trade.
The broader based S&P CNX Nifty was down 33.35 points or 0.73% at 4,506.
The market breadth was positive on BSE with 1,264 shares advancing as compared to 1,026 that declined. 73 remained unchanged. Among the 30 stocks from Sensex pack, 20 were trading in red.
The BSE Mid-Cap index rose 0.03% to 6,225.55 and BSE Small-Cap index up 0.59% to 7,570.26. Both these indices outperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 0.3% to Rs 2,275.
Bank stocks shrugged off higher inflation data announced today. India’s largest commercial bank State Bank of India rose 0.32% to Rs 1,344. The asset-liability committee of State Bank of India (SBI), will be reviewing interest rates today following the latest RBI move to raise repo rate.
The Reserve Bank of India on Wednesday, 11 June 2008, hiked repo rate by 25 basis points to 8% with immediate effect in an effort to contain rising inflation.
India’s largest private sector bank by net profit ICICI Bank rose 2.13% to Rs 758.10. India’s second largest private sector bank by net profit HDFC Bank declined 2.15% to Rs 1,139.
India’s largest dedicated housing finance firm by operating income HDFC declined 1.1% to Rs 2,147.90. HDFC chairman Deepak Parekh said on Thursday, 12 June 2008, 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.
IT stocks rose. Tata Consultancy Services (up 2.43% to Rs 911), Infosys (up 0.66% to Rs 1,890) and Satyam Computer Services (up 0.32% to Rs 485.85) edged higher.
India’s third largest IT exporter by sales Wipro declined 1.36% to Rs 476.55. It is reportedly bidding for 12 contracts worth at least $100 million each as it seeks bigger clients.
Metal stocks declined. Steel Authority of India (down 2.98% to Rs 157.95), Sterlite Industries (down 2.21% to Rs 778), National Aluminium Company (down 2.35% to Rs 469), Hindalco Industries (down 0.93% to Rs 176) and Tata Steel (down 0.62% to Rs 851.80) edged lower.
Realty stocks which had seen some buying in last two days fell today. Indiabulls Real Estate (down 4.48% to Rs 377.30), DLF (down 1.95% to Rs 488) and Unitech (down 1.98% to Rs 185.40) edged lower.
India’s biggest drugmaker by sales Ranbaxy Laboratories rose 4.32% to Rs 566.50. Drug maker Pfizer Inc may reportedly make a hostile bid for the 65% stake in Ranbaxy not held by its founders. Daiichi Sankyo Co., Japan's third-largest drug maker, had agreed on 11 June 2008 to buy a controlling stake in Ranbaxy for as much as $4.6 billion. Pfizer's Indian arm surged 5.99% to Rs 627.30.
Ambuja Cements (up 0.81% to Rs 86.65), Bharat Heavy Electricals (up 0.54% to Rs 1,527.95), and ACC (up 0.47% to Rs 635.25) edged higher from Sensex pack.
Hindustan Unilever (down 2.34% to Rs 227), Maruti Suzuki India (down 2.29% to Rs 719.50), NTPC (down 1.84% to Rs 160.20), Cipla (down 2.05% to Rs 212.55), ITC (down 1.75% to Rs 196), Reliance Infrastrucutre (down 1.77% to Rs 1,029), and Jaiprakash Associates (down 1.91% to Rs 182.65) edged lower from Sensex pack.
India’ largest engineering and construction firm by sales Larsen & Toubro was down 0.09% to Rs 2,704. Due to unfavourable market condition, L&T has reportedly decided to delay the listing of its software business unit L&T Infotech to 2009-10. The firm had earlier decided to go for L&T Infotech's initial public offer in the second half of this fiscal.
PSL rose 2.53% to Rs 349.95 after it won a contract worth Rs 123 crore from BPCL.
Inflation based on the the wholesale price index rose 8.75% in the 12 months to 31 May 2008, above the previous week's annual rise of 8.24%, government data released today, 13 June 2008, afternoon showed. The reading is highest since 10 February 2001, when it was 8.77%.
At 12:20 IST, the 30-share BSE Sensex was down 61.45 points or 0.4% at 15,190.14. At the day’s low of 15,149.98, Sensex lost 100.20 points in mid-morning trade. At the day’s high of 15,337.10 Sensex gained 86.9 points in early trade.
The broader based S&P CNX Nifty was down 33.35 points or 0.73% at 4,506.
The market breadth was positive on BSE with 1,264 shares advancing as compared to 1,026 that declined. 73 remained unchanged. Among the 30 stocks from Sensex pack, 20 were trading in red.
The BSE Mid-Cap index rose 0.03% to 6,225.55 and BSE Small-Cap index up 0.59% to 7,570.26. Both these indices outperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 0.3% to Rs 2,275.
Bank stocks shrugged off higher inflation data announced today. India’s largest commercial bank State Bank of India rose 0.32% to Rs 1,344. The asset-liability committee of State Bank of India (SBI), will be reviewing interest rates today following the latest RBI move to raise repo rate.
The Reserve Bank of India on Wednesday, 11 June 2008, hiked repo rate by 25 basis points to 8% with immediate effect in an effort to contain rising inflation.
India’s largest private sector bank by net profit ICICI Bank rose 2.13% to Rs 758.10. India’s second largest private sector bank by net profit HDFC Bank declined 2.15% to Rs 1,139.
India’s largest dedicated housing finance firm by operating income HDFC declined 1.1% to Rs 2,147.90. HDFC chairman Deepak Parekh said on Thursday, 12 June 2008, 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.
IT stocks rose. Tata Consultancy Services (up 2.43% to Rs 911), Infosys (up 0.66% to Rs 1,890) and Satyam Computer Services (up 0.32% to Rs 485.85) edged higher.
India’s third largest IT exporter by sales Wipro declined 1.36% to Rs 476.55. It is reportedly bidding for 12 contracts worth at least $100 million each as it seeks bigger clients.
Metal stocks declined. Steel Authority of India (down 2.98% to Rs 157.95), Sterlite Industries (down 2.21% to Rs 778), National Aluminium Company (down 2.35% to Rs 469), Hindalco Industries (down 0.93% to Rs 176) and Tata Steel (down 0.62% to Rs 851.80) edged lower.
Realty stocks which had seen some buying in last two days fell today. Indiabulls Real Estate (down 4.48% to Rs 377.30), DLF (down 1.95% to Rs 488) and Unitech (down 1.98% to Rs 185.40) edged lower.
India’s biggest drugmaker by sales Ranbaxy Laboratories rose 4.32% to Rs 566.50. Drug maker Pfizer Inc may reportedly make a hostile bid for the 65% stake in Ranbaxy not held by its founders. Daiichi Sankyo Co., Japan's third-largest drug maker, had agreed on 11 June 2008 to buy a controlling stake in Ranbaxy for as much as $4.6 billion. Pfizer's Indian arm surged 5.99% to Rs 627.30.
Ambuja Cements (up 0.81% to Rs 86.65), Bharat Heavy Electricals (up 0.54% to Rs 1,527.95), and ACC (up 0.47% to Rs 635.25) edged higher from Sensex pack.
Hindustan Unilever (down 2.34% to Rs 227), Maruti Suzuki India (down 2.29% to Rs 719.50), NTPC (down 1.84% to Rs 160.20), Cipla (down 2.05% to Rs 212.55), ITC (down 1.75% to Rs 196), Reliance Infrastrucutre (down 1.77% to Rs 1,029), and Jaiprakash Associates (down 1.91% to Rs 182.65) edged lower from Sensex pack.
India’ largest engineering and construction firm by sales Larsen & Toubro was down 0.09% to Rs 2,704. Due to unfavourable market condition, L&T has reportedly decided to delay the listing of its software business unit L&T Infotech to 2009-10. The firm had earlier decided to go for L&T Infotech's initial public offer in the second half of this fiscal.
PSL rose 2.53% to Rs 349.95 after it won a contract worth Rs 123 crore from BPCL.
Subdued trend prevails ahead of inflation data
The key benchmark indices were trading lower in the mid-morning trade. Market had seen a bout of volatility in early trade. The market is awaiting weekly inflation data which will be announced by the government at about 12:00 IST today. Banking and healthcare stocks rose while realty and metal stocks fell. Asian markets were trading mixed. The market breadth was strong due to buying in select mid-cap and small-cap stocks.
At 11:23 IST, the 30-share BSE Sensex was down 53.04 points or 0.35% at 15,194.56. At the day’s low of 15,162.48, Sensex lost 87.72 points in mid-morning trade. At the day’s high of 15,337.10 Sensex gained 86.9 points in early trade.
The broader based S&P CNX Nifty was down 27.5 points or 0.61% at 4,511.85.
The market breadth was strong on BSE with 1,221 shares advancing as compared to 886 that declined. 63 remained unchanged. Among the 30 stocks from Sensex pack, 22 were trading in red.
The BSE Mid-Cap index rose 0.32% to 6,243.18 and BSE Small-Cap index up 0.72% to 7,580.44. Both these indices outperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 0.31% to Rs 2,274.90.
Metal stocks declined. Steel Authority of India (down 2.58% to Rs 158.60), Sterlite Industries (down 2.38% to Rs 786), National Aluminium Company (down 1.96% to Rs 470.90), Hindalco Industries (down 1.21% to Rs 175.50) and Tata Steel (down 1.17% to Rs 846.80) edged lower.
Realty stocks which had seen some buying in last two days fell today. Indiabulls Real Estate (down 4.05% to Rs 378.95), DLF (down 2.39% to Rs 485.80) and Unitech (down 1.56% to Rs 186.05) edged lower.
Healthcare stocks rose. India’s biggest drugmaker by sales Ranbaxy Laboratories rose 3.05% to Rs 560.05. Drug maker Pfizer Inc may reportedly make a hostile bid for the 65% stake in Ranbaxy not held by its founders. Daiichi Sankyo Co., Japan's third-largest drug maker, had agreed on 11 June 2008 to buy a controlling stake in Ranbaxy for as much as $4.6 billion.
Pfizer's Indian arm surged 7.88% to Rs 638.50. Wockhardt (up 2.85% to Rs 251) and Dr Reddy’s Laboratories (up 0.34% to Rs 703.20) edged higher.
Banking stocks rose. India’s largest commercial bank State Bank of India rose 0.73% to Rs 1,349.45. The asset-liability committee of State Bank of India (SBI), will be reviewing interest rates today following the latest RBI move to raise repo rate.
The Reserve Bank of India on Wednesday, 11 June 2008, hiked repo rate by 25 basis points to 8% with immediate effect in an effort to contain rising inflation.
India’s largest private sector bank by net profit ICICI Bank rose 1.63% to Rs 754.40.
India’s largest dedicated housing finance firm by operating income HDFC declined 0.64% to Rs 2,160. HDFC chairman Deepak Parekh said on Thursday, 12 June 2008, 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 Motors (up 0.85% to Rs 511.65), Tata Consultancy Services (up 0.73% to Rs 895), Bharat Heavy Electricals (up 0.41% to Rs 1,525), Infosys (up 0.29% to Rs 1,883) and ACC (up 0.28% to Rs 634.45) edged higher from Sensex pack.
Hindustan Unilever (down 2.17% to Rs 227.40), Maruti Suzuki India (down 1.99% to Rs 721.70), NTPC (down 1.81% to Rs 160.20), Reliance Infrastrucutre (down 1.67% to Rs 1,029), and Jaiprakash Associates (down 1.53% to Rs 183.35) edged lower from Sensex pack.
India’s third largest IT exporter by sales Wipro declined 1.74% to Rs 474.70. It is reportedly bidding for 12 contracts worth at least $100 million each as it seeks bigger clients.
India’ largest engineering and construction firm by sales Larsen & Toubro was down 0.16% to Rs 2,701. Due to unfavourable market condition, L&T has reportedly decided to delay the listing of its software business unit L&T Infotech to 2009-10. The firm had earlier decided to go for L&T Infotech's initial public offer in the second half of this fiscal.
PSL rose 2.53% to Rs 349.95 after it won a contract worth Rs 123 crore from BPCL.
Jammu & Kashmir Bank rose 1.26% to Rs 621.85 after it raised its prime lending rate (PLR) by 100 basis points to 14%, with effect from 12 June 2008.
Financial Technologies rose 0.26% to Rs 1,529. The company’s net profit declined 7.7% to Rs 24.85 on 27.3% rise in sales to Rs 39.28 crore in Q4 March 2008 over Q4 March 2007.The company announced result after market hours on 12 June 2008.
IFCI declined 1.77% to Rs 58.30. The board has approved the initiation of the legal process for aligning the stake of LIC to 8.39% as requested by LIC from its current stake of 11.35% in the company.
At 11:23 IST, the 30-share BSE Sensex was down 53.04 points or 0.35% at 15,194.56. At the day’s low of 15,162.48, Sensex lost 87.72 points in mid-morning trade. At the day’s high of 15,337.10 Sensex gained 86.9 points in early trade.
The broader based S&P CNX Nifty was down 27.5 points or 0.61% at 4,511.85.
The market breadth was strong on BSE with 1,221 shares advancing as compared to 886 that declined. 63 remained unchanged. Among the 30 stocks from Sensex pack, 22 were trading in red.
The BSE Mid-Cap index rose 0.32% to 6,243.18 and BSE Small-Cap index up 0.72% to 7,580.44. Both these indices outperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 0.31% to Rs 2,274.90.
Metal stocks declined. Steel Authority of India (down 2.58% to Rs 158.60), Sterlite Industries (down 2.38% to Rs 786), National Aluminium Company (down 1.96% to Rs 470.90), Hindalco Industries (down 1.21% to Rs 175.50) and Tata Steel (down 1.17% to Rs 846.80) edged lower.
Realty stocks which had seen some buying in last two days fell today. Indiabulls Real Estate (down 4.05% to Rs 378.95), DLF (down 2.39% to Rs 485.80) and Unitech (down 1.56% to Rs 186.05) edged lower.
Healthcare stocks rose. India’s biggest drugmaker by sales Ranbaxy Laboratories rose 3.05% to Rs 560.05. Drug maker Pfizer Inc may reportedly make a hostile bid for the 65% stake in Ranbaxy not held by its founders. Daiichi Sankyo Co., Japan's third-largest drug maker, had agreed on 11 June 2008 to buy a controlling stake in Ranbaxy for as much as $4.6 billion.
Pfizer's Indian arm surged 7.88% to Rs 638.50. Wockhardt (up 2.85% to Rs 251) and Dr Reddy’s Laboratories (up 0.34% to Rs 703.20) edged higher.
Banking stocks rose. India’s largest commercial bank State Bank of India rose 0.73% to Rs 1,349.45. The asset-liability committee of State Bank of India (SBI), will be reviewing interest rates today following the latest RBI move to raise repo rate.
The Reserve Bank of India on Wednesday, 11 June 2008, hiked repo rate by 25 basis points to 8% with immediate effect in an effort to contain rising inflation.
India’s largest private sector bank by net profit ICICI Bank rose 1.63% to Rs 754.40.
India’s largest dedicated housing finance firm by operating income HDFC declined 0.64% to Rs 2,160. HDFC chairman Deepak Parekh said on Thursday, 12 June 2008, 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 Motors (up 0.85% to Rs 511.65), Tata Consultancy Services (up 0.73% to Rs 895), Bharat Heavy Electricals (up 0.41% to Rs 1,525), Infosys (up 0.29% to Rs 1,883) and ACC (up 0.28% to Rs 634.45) edged higher from Sensex pack.
Hindustan Unilever (down 2.17% to Rs 227.40), Maruti Suzuki India (down 1.99% to Rs 721.70), NTPC (down 1.81% to Rs 160.20), Reliance Infrastrucutre (down 1.67% to Rs 1,029), and Jaiprakash Associates (down 1.53% to Rs 183.35) edged lower from Sensex pack.
India’s third largest IT exporter by sales Wipro declined 1.74% to Rs 474.70. It is reportedly bidding for 12 contracts worth at least $100 million each as it seeks bigger clients.
India’ largest engineering and construction firm by sales Larsen & Toubro was down 0.16% to Rs 2,701. Due to unfavourable market condition, L&T has reportedly decided to delay the listing of its software business unit L&T Infotech to 2009-10. The firm had earlier decided to go for L&T Infotech's initial public offer in the second half of this fiscal.
PSL rose 2.53% to Rs 349.95 after it won a contract worth Rs 123 crore from BPCL.
Jammu & Kashmir Bank rose 1.26% to Rs 621.85 after it raised its prime lending rate (PLR) by 100 basis points to 14%, with effect from 12 June 2008.
Financial Technologies rose 0.26% to Rs 1,529. The company’s net profit declined 7.7% to Rs 24.85 on 27.3% rise in sales to Rs 39.28 crore in Q4 March 2008 over Q4 March 2007.The company announced result after market hours on 12 June 2008.
IFCI declined 1.77% to Rs 58.30. The board has approved the initiation of the legal process for aligning the stake of LIC to 8.39% as requested by LIC from its current stake of 11.35% in the company.
Market drifts lower amid volatility
The key benchmark indices opened positive but soon slipped in red in amid volatility ahead of inflation data to be announced by the government at about 12:00 IST today. Banking stocks rose while realty stocks fell. Asian markets were trading mixed. The market breadth was strong due to buying in select mid-cap and small-cap stocks.
At 10:30 IST, the 30-share BSE Sensex was down 43.62 points or 0.29% at 15,206.79. At the day’s low of 15,201.21, Sensex lost 48.99 points in early trade. At the day’s high of 15,337.10 Sensex gained 86.9 points in early trade.
The broader based S&P CNX Nifty was down 23 points or 0.51% at 4,516.35.
The market breadth was strong on BSE with 1,011 shares advancing as compared to 694 that declined. 52 remained unchanged. Among the 30 stocks from Sensex pack, 22 were trading in red.
The BSE Mid-Cap index rose 0.26% to 6,239.89 and BSE Small-Cap index up 0.69% to 7,577.98. Both these indices outperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries was flat at Rs 2,284.50.
Banking stocks rose. India’s largest commercial bank State Bank of India was flat at Rs 1,339.50. The asset-liability committee of State Bank of India (SBI), will be reviewing interest rates today following the latest RBI move to raise repo rate.
The Reserve Bank of India on Wednesday, 11 June 2008, hiked repo rate by 25 basis points to 8% with immediate effect in an effort to contain rising inflation.
HDFC Bank (up 0.12% to Rs 1164.85) and ICICI Bank (up 1.95% to Rs 756.80) edged higher.
India’s largest dedicated housing finance firm by operating income HDFC declined 0.69% to Rs 2,160. HDFC chairman Deepak Parekh said on Thursday, 12 June 2008, 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.
Realty sector which had seen some buying in last two days fell today. Indiabulls Real Estate (down 2.77% to Rs 384), DLF (down 1.1% to Rs 492.25) and Unitech (down 0.98% to Rs 186.95) edged lower.
Bharat Heavy Electricals (up 0.74% to Rs 1,530), Infosys (up 0.66% to Rs 1,890), Tata Consultancy Services (up 0.56% to Rs 893.50), Tata Motors (up 0.68% to Rs 510.80) and Larsen & Toubro (up 0.24% to Rs 2,708) edged higher from Sensex pack.
Maruti Suzuki India (down 1.61% to Rs 724.50), Reliance Infrastrucutre (down 1.53% to Rs 1,030.50), NTPC (down 1.29% to Rs 161), Hindustan Unilever (down 1.4% to Rs 229.20) and Tata Steel (down 0.86% to Rs 849.50) edged lower from Sensex pack.
India’s biggest drugmaker by sales Ranbaxy Laboratories rose 2.75% to Rs 558.40. Drug maker Pfizer Inc may reportedly make a hostile bid for the 65% stake in Ranbaxy not held by its founders. Daiichi Sankyo Co., Japan's third-largest drug maker, had agreed on 11 June 2008 to buy a controlling stake in Ranbaxy for as much as $4.6 billion.
India’s third largest IT exporte by sales Wipro rose 0.4% to Rs 485.05. It is reportedly bidding for 12 contracts worth at least $100 million each as it seeks bigger clients.
India’ largest engineering and construction firm by sales Larsen & Toubro rose 1.21% to Rs 2,736. Due to unfavourable market condition, L&T has reportedly decided to delay the listing of its software business unit L&T Infotech to 2009-10. The firm had earlier decided to go for L&T Infotech's initial public offer in the second half of this fiscal.
Sun Pharmaceutical Industries declined 0.8% to Rs 1,465. Sanofi-Aventis SA, France's largest drugmaker, has reportedly sued Sun Pharmaceutical Industries, alleging infringement of a US patent for Uroxatral, used to treat an enlarged prostate gland.
Jet Airways rose 1.26% to Rs 550. It has reportedly decided to pull out of negotiations to buy a strategic stake in Delhi-based low-cost carrier SpiceJet from its key shareholders owing to differences over valuation. SpiceJet has a market capitalisation of around Rs 801.36 crore (as on 12 June 2008). However, the key shareholders of Spicejet have valued the company at Rs 1,200 crore to Rs 1,320 crore and are not ready to sell it below this price, the reports added.
Essar Steel Holdings was flat at Rs 51.80. US-based steel firm Esmark Inc has reportedly rejected a $1.24 billion takeover offer by Russia's Severstal. The decision came a day after Essar Steel Holdings said it intends to increase its own offer for Esmark to $19 per share -- $2 per share more than Severstal's offer.
Asian markets were trading mixed. Key benchmark indices in Hong Kong, South Korea, were down by between 0.47% to 0.76%. Key benchmark indices in Japan, Singapore and Taiwan were up by between 0.32% to 1.13%.
US stocks rose on Thursday after a stronger-than-expected May 2008 retail sales report and a $46 billion takeover bid for Anheuser-Busch from an overseas rival helped the market recover from a string of deep losses. The Dow Jones Industrial Average gained 57.81 points or 0.48% at 12,141.58. The tech-laden Nasdaq Composite Index gained 10.34 points or 0.43% at 2,404.35.
Oil was trading below $137 a barrel, near record highs of $139.12 hit last Friday, 6 June 2008.
At 10:30 IST, the 30-share BSE Sensex was down 43.62 points or 0.29% at 15,206.79. At the day’s low of 15,201.21, Sensex lost 48.99 points in early trade. At the day’s high of 15,337.10 Sensex gained 86.9 points in early trade.
The broader based S&P CNX Nifty was down 23 points or 0.51% at 4,516.35.
The market breadth was strong on BSE with 1,011 shares advancing as compared to 694 that declined. 52 remained unchanged. Among the 30 stocks from Sensex pack, 22 were trading in red.
The BSE Mid-Cap index rose 0.26% to 6,239.89 and BSE Small-Cap index up 0.69% to 7,577.98. Both these indices outperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries was flat at Rs 2,284.50.
Banking stocks rose. India’s largest commercial bank State Bank of India was flat at Rs 1,339.50. The asset-liability committee of State Bank of India (SBI), will be reviewing interest rates today following the latest RBI move to raise repo rate.
The Reserve Bank of India on Wednesday, 11 June 2008, hiked repo rate by 25 basis points to 8% with immediate effect in an effort to contain rising inflation.
HDFC Bank (up 0.12% to Rs 1164.85) and ICICI Bank (up 1.95% to Rs 756.80) edged higher.
India’s largest dedicated housing finance firm by operating income HDFC declined 0.69% to Rs 2,160. HDFC chairman Deepak Parekh said on Thursday, 12 June 2008, 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.
Realty sector which had seen some buying in last two days fell today. Indiabulls Real Estate (down 2.77% to Rs 384), DLF (down 1.1% to Rs 492.25) and Unitech (down 0.98% to Rs 186.95) edged lower.
Bharat Heavy Electricals (up 0.74% to Rs 1,530), Infosys (up 0.66% to Rs 1,890), Tata Consultancy Services (up 0.56% to Rs 893.50), Tata Motors (up 0.68% to Rs 510.80) and Larsen & Toubro (up 0.24% to Rs 2,708) edged higher from Sensex pack.
Maruti Suzuki India (down 1.61% to Rs 724.50), Reliance Infrastrucutre (down 1.53% to Rs 1,030.50), NTPC (down 1.29% to Rs 161), Hindustan Unilever (down 1.4% to Rs 229.20) and Tata Steel (down 0.86% to Rs 849.50) edged lower from Sensex pack.
India’s biggest drugmaker by sales Ranbaxy Laboratories rose 2.75% to Rs 558.40. Drug maker Pfizer Inc may reportedly make a hostile bid for the 65% stake in Ranbaxy not held by its founders. Daiichi Sankyo Co., Japan's third-largest drug maker, had agreed on 11 June 2008 to buy a controlling stake in Ranbaxy for as much as $4.6 billion.
India’s third largest IT exporte by sales Wipro rose 0.4% to Rs 485.05. It is reportedly bidding for 12 contracts worth at least $100 million each as it seeks bigger clients.
India’ largest engineering and construction firm by sales Larsen & Toubro rose 1.21% to Rs 2,736. Due to unfavourable market condition, L&T has reportedly decided to delay the listing of its software business unit L&T Infotech to 2009-10. The firm had earlier decided to go for L&T Infotech's initial public offer in the second half of this fiscal.
Sun Pharmaceutical Industries declined 0.8% to Rs 1,465. Sanofi-Aventis SA, France's largest drugmaker, has reportedly sued Sun Pharmaceutical Industries, alleging infringement of a US patent for Uroxatral, used to treat an enlarged prostate gland.
Jet Airways rose 1.26% to Rs 550. It has reportedly decided to pull out of negotiations to buy a strategic stake in Delhi-based low-cost carrier SpiceJet from its key shareholders owing to differences over valuation. SpiceJet has a market capitalisation of around Rs 801.36 crore (as on 12 June 2008). However, the key shareholders of Spicejet have valued the company at Rs 1,200 crore to Rs 1,320 crore and are not ready to sell it below this price, the reports added.
Essar Steel Holdings was flat at Rs 51.80. US-based steel firm Esmark Inc has reportedly rejected a $1.24 billion takeover offer by Russia's Severstal. The decision came a day after Essar Steel Holdings said it intends to increase its own offer for Esmark to $19 per share -- $2 per share more than Severstal's offer.
Asian markets were trading mixed. Key benchmark indices in Hong Kong, South Korea, were down by between 0.47% to 0.76%. Key benchmark indices in Japan, Singapore and Taiwan were up by between 0.32% to 1.13%.
US stocks rose on Thursday after a stronger-than-expected May 2008 retail sales report and a $46 billion takeover bid for Anheuser-Busch from an overseas rival helped the market recover from a string of deep losses. The Dow Jones Industrial Average gained 57.81 points or 0.48% at 12,141.58. The tech-laden Nasdaq Composite Index gained 10.34 points or 0.43% at 2,404.35.
Oil was trading below $137 a barrel, near record highs of $139.12 hit last Friday, 6 June 2008.
Market drifts lower amid volatility
The key benchmark indices opened positive but soon slipped in red in amid volatility ahead of inflation data to be announced by the government at about 12:00 IST today. Banking stocks rose while realty stocks fell. Asian markets were trading mixed. The market breadth was strong due to buying in select mid-cap and small-cap stocks.
At 10:30 IST, the 30-share BSE Sensex was down 43.62 points or 0.29% at 15,206.79. At the day’s low of 15,201.21, Sensex lost 48.99 points in early trade. At the day’s high of 15,337.10 Sensex gained 86.9 points in early trade.
The broader based S&P CNX Nifty was down 23 points or 0.51% at 4,516.35.
The market breadth was strong on BSE with 1,011 shares advancing as compared to 694 that declined. 52 remained unchanged. Among the 30 stocks from Sensex pack, 22 were trading in red.
The BSE Mid-Cap index rose 0.26% to 6,239.89 and BSE Small-Cap index up 0.69% to 7,577.98. Both these indices outperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries was flat at Rs 2,284.50.
Banking stocks rose. India’s largest commercial bank State Bank of India was flat at Rs 1,339.50. The asset-liability committee of State Bank of India (SBI), will be reviewing interest rates today following the latest RBI move to raise repo rate.
The Reserve Bank of India on Wednesday, 11 June 2008, hiked repo rate by 25 basis points to 8% with immediate effect in an effort to contain rising inflation.
HDFC Bank (up 0.12% to Rs 1164.85) and ICICI Bank (up 1.95% to Rs 756.80) edged higher.
India’s largest dedicated housing finance firm by operating income HDFC declined 0.69% to Rs 2,160. HDFC chairman Deepak Parekh said on Thursday, 12 June 2008, 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.
Realty sector which had seen some buying in last two days fell today. Indiabulls Real Estate (down 2.77% to Rs 384), DLF (down 1.1% to Rs 492.25) and Unitech (down 0.98% to Rs 186.95) edged lower.
Bharat Heavy Electricals (up 0.74% to Rs 1,530), Infosys (up 0.66% to Rs 1,890), Tata Consultancy Services (up 0.56% to Rs 893.50), Tata Motors (up 0.68% to Rs 510.80) and Larsen & Toubro (up 0.24% to Rs 2,708) edged higher from Sensex pack.
Maruti Suzuki India (down 1.61% to Rs 724.50), Reliance Infrastrucutre (down 1.53% to Rs 1,030.50), NTPC (down 1.29% to Rs 161), Hindustan Unilever (down 1.4% to Rs 229.20) and Tata Steel (down 0.86% to Rs 849.50) edged lower from Sensex pack.
India’s biggest drugmaker by sales Ranbaxy Laboratories rose 2.75% to Rs 558.40. Drug maker Pfizer Inc may reportedly make a hostile bid for the 65% stake in Ranbaxy not held by its founders. Daiichi Sankyo Co., Japan's third-largest drug maker, had agreed on 11 June 2008 to buy a controlling stake in Ranbaxy for as much as $4.6 billion.
India’s third largest IT exporte by sales Wipro rose 0.4% to Rs 485.05. It is reportedly bidding for 12 contracts worth at least $100 million each as it seeks bigger clients.
India’ largest engineering and construction firm by sales Larsen & Toubro rose 1.21% to Rs 2,736. Due to unfavourable market condition, L&T has reportedly decided to delay the listing of its software business unit L&T Infotech to 2009-10. The firm had earlier decided to go for L&T Infotech's initial public offer in the second half of this fiscal.
Sun Pharmaceutical Industries declined 0.8% to Rs 1,465. Sanofi-Aventis SA, France's largest drugmaker, has reportedly sued Sun Pharmaceutical Industries, alleging infringement of a US patent for Uroxatral, used to treat an enlarged prostate gland.
Jet Airways rose 1.26% to Rs 550. It has reportedly decided to pull out of negotiations to buy a strategic stake in Delhi-based low-cost carrier SpiceJet from its key shareholders owing to differences over valuation. SpiceJet has a market capitalisation of around Rs 801.36 crore (as on 12 June 2008). However, the key shareholders of Spicejet have valued the company at Rs 1,200 crore to Rs 1,320 crore and are not ready to sell it below this price, the reports added.
Essar Steel Holdings was flat at Rs 51.80. US-based steel firm Esmark Inc has reportedly rejected a $1.24 billion takeover offer by Russia's Severstal. The decision came a day after Essar Steel Holdings said it intends to increase its own offer for Esmark to $19 per share -- $2 per share more than Severstal's offer.
Asian markets were trading mixed. Key benchmark indices in Hong Kong, South Korea, were down by between 0.47% to 0.76%. Key benchmark indices in Japan, Singapore and Taiwan were up by between 0.32% to 1.13%.
US stocks rose on Thursday after a stronger-than-expected May 2008 retail sales report and a $46 billion takeover bid for Anheuser-Busch from an overseas rival helped the market recover from a string of deep losses. The Dow Jones Industrial Average gained 57.81 points or 0.48% at 12,141.58. The tech-laden Nasdaq Composite Index gained 10.34 points or 0.43% at 2,404.35.
Oil was trading below $137 a barrel, near record highs of $139.12 hit last Friday, 6 June 2008.
At 10:30 IST, the 30-share BSE Sensex was down 43.62 points or 0.29% at 15,206.79. At the day’s low of 15,201.21, Sensex lost 48.99 points in early trade. At the day’s high of 15,337.10 Sensex gained 86.9 points in early trade.
The broader based S&P CNX Nifty was down 23 points or 0.51% at 4,516.35.
The market breadth was strong on BSE with 1,011 shares advancing as compared to 694 that declined. 52 remained unchanged. Among the 30 stocks from Sensex pack, 22 were trading in red.
The BSE Mid-Cap index rose 0.26% to 6,239.89 and BSE Small-Cap index up 0.69% to 7,577.98. Both these indices outperformed Sensex.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries was flat at Rs 2,284.50.
Banking stocks rose. India’s largest commercial bank State Bank of India was flat at Rs 1,339.50. The asset-liability committee of State Bank of India (SBI), will be reviewing interest rates today following the latest RBI move to raise repo rate.
The Reserve Bank of India on Wednesday, 11 June 2008, hiked repo rate by 25 basis points to 8% with immediate effect in an effort to contain rising inflation.
HDFC Bank (up 0.12% to Rs 1164.85) and ICICI Bank (up 1.95% to Rs 756.80) edged higher.
India’s largest dedicated housing finance firm by operating income HDFC declined 0.69% to Rs 2,160. HDFC chairman Deepak Parekh said on Thursday, 12 June 2008, 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.
Realty sector which had seen some buying in last two days fell today. Indiabulls Real Estate (down 2.77% to Rs 384), DLF (down 1.1% to Rs 492.25) and Unitech (down 0.98% to Rs 186.95) edged lower.
Bharat Heavy Electricals (up 0.74% to Rs 1,530), Infosys (up 0.66% to Rs 1,890), Tata Consultancy Services (up 0.56% to Rs 893.50), Tata Motors (up 0.68% to Rs 510.80) and Larsen & Toubro (up 0.24% to Rs 2,708) edged higher from Sensex pack.
Maruti Suzuki India (down 1.61% to Rs 724.50), Reliance Infrastrucutre (down 1.53% to Rs 1,030.50), NTPC (down 1.29% to Rs 161), Hindustan Unilever (down 1.4% to Rs 229.20) and Tata Steel (down 0.86% to Rs 849.50) edged lower from Sensex pack.
India’s biggest drugmaker by sales Ranbaxy Laboratories rose 2.75% to Rs 558.40. Drug maker Pfizer Inc may reportedly make a hostile bid for the 65% stake in Ranbaxy not held by its founders. Daiichi Sankyo Co., Japan's third-largest drug maker, had agreed on 11 June 2008 to buy a controlling stake in Ranbaxy for as much as $4.6 billion.
India’s third largest IT exporte by sales Wipro rose 0.4% to Rs 485.05. It is reportedly bidding for 12 contracts worth at least $100 million each as it seeks bigger clients.
India’ largest engineering and construction firm by sales Larsen & Toubro rose 1.21% to Rs 2,736. Due to unfavourable market condition, L&T has reportedly decided to delay the listing of its software business unit L&T Infotech to 2009-10. The firm had earlier decided to go for L&T Infotech's initial public offer in the second half of this fiscal.
Sun Pharmaceutical Industries declined 0.8% to Rs 1,465. Sanofi-Aventis SA, France's largest drugmaker, has reportedly sued Sun Pharmaceutical Industries, alleging infringement of a US patent for Uroxatral, used to treat an enlarged prostate gland.
Jet Airways rose 1.26% to Rs 550. It has reportedly decided to pull out of negotiations to buy a strategic stake in Delhi-based low-cost carrier SpiceJet from its key shareholders owing to differences over valuation. SpiceJet has a market capitalisation of around Rs 801.36 crore (as on 12 June 2008). However, the key shareholders of Spicejet have valued the company at Rs 1,200 crore to Rs 1,320 crore and are not ready to sell it below this price, the reports added.
Essar Steel Holdings was flat at Rs 51.80. US-based steel firm Esmark Inc has reportedly rejected a $1.24 billion takeover offer by Russia's Severstal. The decision came a day after Essar Steel Holdings said it intends to increase its own offer for Esmark to $19 per share -- $2 per share more than Severstal's offer.
Asian markets were trading mixed. Key benchmark indices in Hong Kong, South Korea, were down by between 0.47% to 0.76%. Key benchmark indices in Japan, Singapore and Taiwan were up by between 0.32% to 1.13%.
US stocks rose on Thursday after a stronger-than-expected May 2008 retail sales report and a $46 billion takeover bid for Anheuser-Busch from an overseas rival helped the market recover from a string of deep losses. The Dow Jones Industrial Average gained 57.81 points or 0.48% at 12,141.58. The tech-laden Nasdaq Composite Index gained 10.34 points or 0.43% at 2,404.35.
Oil was trading below $137 a barrel, near record highs of $139.12 hit last Friday, 6 June 2008.
Pre Market Report 13/06/2008
The market may remain range bound with negative bias tracking subdued trend in Asian stocks. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and China were down by between 0.02% to 1.28%.
Short covering by traders following improved industrial production data for April 2008 triggered a strong intra-day rebound on the bourses yesterday, 12 June 2008. The barometer index BSE Sensex gained 64.88 points or 0.43% to settle at 15,250.20, bouncing back from an intra-day 437.33-points fall.
The market's concerns are that higher interest rates will raise borrowing costs and hit bottom line of corporates. Banks are likely to raise interest following a strong signal from the Reserve Bank of India (RBI) that banks' cost of funds is headed north when the central bank raised repo rate, a short term rate, by 25 basis points on Wednesday, 11 June 2008. The repo rate is the rate at which RBI lends money to banks under its liquidity adjustment facility.
The stock market's another concern is that high interest rates may delay expansion plans of corporates which in turn may impact future earnings growth. The market will now be guessing RBI's next move. The next quarterly monetary policy review of RBI is scheduled on 29 July 2008.
The asset-liability committee of State Bank of India (SBI), India's largest commercial, will be reviewing interest rates today following the latest RBI move. HDFC chairman Deepak Parekh said on Thursday, 12 June 2008, 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
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 5321.50 crore in the first few days of this month, till 11 June 2008. They had dumped stocks worth a net Rs 5011.50 crore in May 2008. Their outflow in calendar 2008 reached Rs 20690.90 crore, till 11 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.
India's economic growth has slowed down as fall in consumer demand caused by rise in interest rates. Industrial output rose 8.1% in 2007/08 (April-March) compared with 11.6% growth in 2006/07.
According to a report on the Indian economy made at the beginning of this month by Morgan Stanley, weak consumption growth and slowing business investment will slow India's gross domestic growth (GDP) growth to 6.7% in the quarter ending March 2009 from 8.8% growth in the quarter ended March 2008. It, however, states that, on a long-term basis, an interplay of three key macro factors viz. favourable demographics, continuation of economic reform process by the government, and globalization, justify a gradual speeding up in India's pace of growth.
According to a recent 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. The Union government on Wednesday, 4 June 2008, raised retail petrol and diesel prices by about 10%, more than expected, to help curb losses at its state-owned refiners arising from surging global crude oil prices.
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.
The government will today unveil inflation data for the year through 31 May 2008. Inflation based on the whole price index had climbed to 8.24% in year through 24 May 2008, the highest reading in nearly four years.
Short covering by traders following improved industrial production data for April 2008 triggered a strong intra-day rebound on the bourses yesterday, 12 June 2008. The barometer index BSE Sensex gained 64.88 points or 0.43% to settle at 15,250.20, bouncing back from an intra-day 437.33-points fall.
The market's concerns are that higher interest rates will raise borrowing costs and hit bottom line of corporates. Banks are likely to raise interest following a strong signal from the Reserve Bank of India (RBI) that banks' cost of funds is headed north when the central bank raised repo rate, a short term rate, by 25 basis points on Wednesday, 11 June 2008. The repo rate is the rate at which RBI lends money to banks under its liquidity adjustment facility.
The stock market's another concern is that high interest rates may delay expansion plans of corporates which in turn may impact future earnings growth. The market will now be guessing RBI's next move. The next quarterly monetary policy review of RBI is scheduled on 29 July 2008.
The asset-liability committee of State Bank of India (SBI), India's largest commercial, will be reviewing interest rates today following the latest RBI move. HDFC chairman Deepak Parekh said on Thursday, 12 June 2008, 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
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 5321.50 crore in the first few days of this month, till 11 June 2008. They had dumped stocks worth a net Rs 5011.50 crore in May 2008. Their outflow in calendar 2008 reached Rs 20690.90 crore, till 11 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.
India's economic growth has slowed down as fall in consumer demand caused by rise in interest rates. Industrial output rose 8.1% in 2007/08 (April-March) compared with 11.6% growth in 2006/07.
According to a report on the Indian economy made at the beginning of this month by Morgan Stanley, weak consumption growth and slowing business investment will slow India's gross domestic growth (GDP) growth to 6.7% in the quarter ending March 2009 from 8.8% growth in the quarter ended March 2008. It, however, states that, on a long-term basis, an interplay of three key macro factors viz. favourable demographics, continuation of economic reform process by the government, and globalization, justify a gradual speeding up in India's pace of growth.
According to a recent 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. The Union government on Wednesday, 4 June 2008, raised retail petrol and diesel prices by about 10%, more than expected, to help curb losses at its state-owned refiners arising from surging global crude oil prices.
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.
The government will today unveil inflation data for the year through 31 May 2008. Inflation based on the whole price index had climbed to 8.24% in year through 24 May 2008, the highest reading in nearly four years.
Thursday, June 12, 2008
Post Market Report::12/06/2008
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.
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.
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.
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