The key benchmark indices were range bound in early afternoon
trade. The BSE 30-share Sensex was up 69.69 points. The barometer
index hovered in a range of 14050 and 14150. FMCG shares were in
demand. Banking shares recouped early losses. India's largest real
estate developer by market capitalisation DLF moved higher.
At 12:20 IST, the BSE 30-share Sensex was up 69.69 points or 0.50%
to 14,112.01. The Sensex rose 178.72 points at day's high of
14,221.04, hit in early trade. The index shed 27.05 points at the
day's low of 14,015.27, hit in early trade.
The S&P CNX Nifty was up 9.60 points or 0.23% to 4254.85.
The BSE Mid-Cap index was up 0.86% at 5,273.50 and the BSE
Small-Cap index was down 0.78% at 6,264.75.
The market breadth was positive on BSE with 1404 shares advancing
as compared to 925 that declined. 77 shares remained unchanged.
India's largest real estate developer by market capitalisation DLF
rose 1.75% at 434.20. As per reports, the company is retrenching
around 300 employees across all its centres and subsidiaries as it
decides to slow down its project execution, especially in Tier II
cities, in the face of shrinking demand and expensive borrowing.
Tata Steel (up 3.11% at Rs 494.50), Housing Development Finance
Corporation (up 1.28% at Rs 2338), and Sterlite Industries (up
1.15% at Rs 474), were the prominent gainers from the Sensex pack.
Satyam Computer (down 2.46% at Rs 361.40), Ranbaxy Laboratories
(down 1.78% at Rs 350.25), Maruti Suzuki (down 1.56% at Rs 730.10),
Tata Motors (down 0.86% at Rs 419.20), and Wipro (down 0.535 at Rs
414.65), were the major losers from the Sensex pack.
India's largest state-run oil explorer Oil & Natural Gas
Corporation (ONGC) dropped 1.13% to Rs 1058. As per reports, ONGC
Videsh (OVL), the overseas investment arm of ONGC, may take a $1
billion short-term loan to partly fund the $2.8 billion acquisition
of London Stock Exchange-listed Imperial Energy.
India's largest aluminium producer Hindalco Industries fell 0.53%
at 112.25. The company's Rs 5050 crore rights share offering for
subscription today, 22 September 2008. The sale in a ratio of three
shares for every seven held at Rs 96 a share will close on 10
October 2008. The company aims to use the funds to repay a bridge
loan it had taken to buy Canada's Novelis in 2007.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) rose 1.22% at Rs 2077.15. The
company began production of crude oil from its KG-D6 block of the
Krishna Godavari basin on 17 September 2008 and the firm plans to
commercially release gas from the well by January 2009. The company
aims to supply at least 40% of the nation's requirement of oil and
gas and become one of the world's largest deep-water developers.
According to reports, the company can technically sell its
Krishna-Godavari (KG) basin gas at a price higher than the
government-discovered price of $4.20 per million British thermal
units (mBtu).
India's second largest software exporter by sales Infosys
Technologies rose 0.22% at 1627.40.
Banking stocks recovered. India's largest private sector bank by
market capitalisation ICICI Bank rose 0.43% at Rs 630.70. It came
of early low of 616.20. State Bank of India (up 0.97% at Rs
1579.85), HDFC Bank (up 0.14% at Rs 1301), Axis Bank (up 0.63% at
Rs 713.30), and Bank of India (up 3.40% at Rs 293.10), moved up.
The BSE Bankex was up 0.70% at 7,159.66. The index recovered from
early low of 7,064.58.
FMCG shares were in demand. ITC (up 2.22% at Rs 195.30), Hindustan
Unilever (up 1.37% at Rs 248.50), United Breweries (up 3.04% at Rs
149), and Godrej Consumer Products (up 2.24% at Rs 118.70), soared.
The BSE FMCG index was up 1.57% at 2,209.37.
Telecom solutions provider Tulip Telecom surged 7.61% to Rs 1,002
after the company bagged a project worth Rs 95 crore for supply and
installation of network equipment across Madhya Pradesh.
Asian stocks rose after the US government proposed a $700 billion
plan to solve the world financial crisis by rescuing banks from
billions of dollars in risky mortgage debt. Key benchmark indices
in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were
up by between 0.19% to 6.96%.
However, uncertainty about the workings of the government's $700
billion bank bailout drove US stock index futures lower, suggesting
the US market may open lower today, 22 September 2008. The S&P 500
futures were down 5.90 points, Nasdaq 100 futures were down 6.75
points and the Dow futures were down 76 points. The drop in stock
index futures came on the heels of Friday's (19 September 2008)
massive rally in stocks worldwide -- the largest ever one-day
advance as measured by market value.
According to the US administration's proposal, the federal
government would buy up as much as $700 billion of illiquid
mortgage assets at a deep discount from banks. The Treasury
Department would run the program directly, unlike the savings and
loan crisis of the 1990s when Congress created the Resolution Trust
Company to spearhead a financial bailout. The $700 billion plan,
the most sweeping intervention in the financial markets since the
Great Depression, is aimed at stemming the credit crisis roiling
Wall Street and threatening the global markets.
Back home, the current week will see expiry of September 2008
derivatives contracts. The September 2008 contracts expire on
Thursday, 25 September 2008. Roll over in Nifty futures till
Friday, 19 September 2008, was about 18% whereas Mini Nifty has
seen rollover of about 31% of positions.
Monday, September 22, 2008
Strong market breadth
Gains in metal and oil & gas pivotals took the key benchmark
indices in the positive terrain in mid-morning trade. However, the
upside was capped as auto, software and banking shares witnessed
selling pressure. Realty shares moved higher. The BSE 30-share
Sensex was up 50.54 points. India's largest state-run oil explorer
Oil & Natural Gas Corporation slipped.
Asian stocks rose after the US government proposed a $700 billion
plan to solve the world financial crisis by rescuing banks from
billions of dollars in risky mortgage debt. Key benchmark indices
in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were
up by between 0.19% to 6.96%.
However, uncertainty about the workings of the government's $700
billion bank bailout drove US stock index futures lower, suggesting
the US market may open lower today, 22 September 2008. The S&P 500
futures were down 9.10 points, the Dow futures were down 99 points
and Nasdaq 100 futures were down 13 points. The drop in stock index
futures came on the heels of Friday's (19 September 2008) massive
rally in stocks worldwide -- the largest ever one-day advance as
measured by market value.
At 11:20 IST, the BSE 30-share Sensex was up 50.54 points or 0.36%
to 14,092.86. The Sensex rose 178.72 points at day's high of
14,221.04, hit in early trade. The index shed 27.05 points at the
day's low of 14,015.27, hit in early trade.
The S&P CNX Nifty was up 13.10 points or 0.31% to 4258.35.
The BSE Mid-Cap index was up 0.95% at 5,278.56 and the BSE
Small-Cap index was down 0.88% at 6,270.63.
The market breadth was positive on BSE with 1351 shares advancing
as compared to 794 that declined. 65 shares remained unchanged.
India's largest state-run oil explorer Oil & Natural Gas
Corporation dropped 1.13% to Rs 1058
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 1.08% at Rs 2074. The
company began production of crude oil from its KG-D6 block of the
Krishna Godavari basin on 17 September 2008 and the firm plans to
commercially release gas from the well by January 2009. The company
aims to supply at least 40% of the nation's requirement of oil and
gas and become one of the world's largest deep-water developers.
According to reports, the company can technically sell its
Krishna-Godavari (KG) basin gas at a price higher than the
government-discovered price of $4.20 per million British thermal
units (mBtu).
India's largest private sector bank by market capitalisation ICICI
Bank fell 0.79% at Rs 623.15.
Auto shares slipped as oil prices advanced. Hero Honda Motors (down
1.52% at Rs 808.50), Tata Motors (down 0.67% at Rs 420), and Maruti
Suzuki India (down 1.30% at Rs 732), tumbled. The BSE Auto index
was down 0.49% at 3,938.70.
Software shares slipped. Satyam Computer (down 2.53% at Rs 360.75),
TCS (down 0.15% at Rs 764.85), Wipro (down 0.13% at Rs 416.30), and
Infosys Technologies (down 0.36% at Rs 1618), declined. The BSE IT
index was down 0.36% at 3,653.69.
Metal shares were in demand. Gujarat NRE Coke (up 11.19% at Rs
73.05), Sesa Goa (up 6.78% at Rs 116.40), Welspun Gujarat Stahl
Rohren (up 2.40% at Rs 262.30), Jindal Steel (up 1.87% at Rs 1505),
and Tata Steel (up 3.13% at Rs 494.60), advanced. The BSE Metal
index was up 1.86% at 10,220.24.
Realty shares recovered after early decline. Akruti City (up 5.32%
at Rs 957.45), Housing Development & Infrastructure (up 3.77% at Rs
232.40), Unitech (up 3.33% at Rs 130.70), and DLF (up 2.90% at Rs
439.20), rose. The BSE Realty index was up 1.33% at 4,157.14. The
index came off early lows of 4,070.85.
Fashion apparel chain operator Pantaloon Retail India gained 2.23%
to Rs 316.90 after posting 74.24% growth in net profit to Rs 32.53
crore on 33% increase in total income to Rs 1381.44 crore in Q4
June 2008 over Q4 June 2007.
Software firm NIIT Technologies gained 3.35% to Rs 97.30 after the
company said it has secured a global sourcing contract from
American Safety Insurance Services, Inc to provide migration,
configuration and customization support.
According to the US administration's proposal, the federal
government would buy up as much as $700 billion of illiquid
mortgage assets at a deep discount from banks. The Treasury
Department would run the program directly, unlike the savings and
loan crisis of the 1990s when Congress created the Resolution Trust
Company to spearhead a financial bailout. The $700 billion plan,
the most sweeping intervention in the financial markets since the
Great Depression, is aimed at stemming the credit crisis roiling
Wall Street and threatening the global markets.
Back home, the current week will see expiry of September 2008
derivatives contracts. The September 2008 contracts expire on
Thursday, 25 September 2008. Roll over in Nifty futures till
Friday, 19 September 2008, was about 18% whereas Mini Nifty has
seen rollover of about 31% of positions.
As per reports, the overall rainfall in India in the current
monsoon season has till now been the best in the past six years in
terms of distribution though the quantum of rainfall was relatively
higher in 2003, 2006 and 2007. Rains were about 2% below normal
between 1 June 2008 and 17 September 2008.
indices in the positive terrain in mid-morning trade. However, the
upside was capped as auto, software and banking shares witnessed
selling pressure. Realty shares moved higher. The BSE 30-share
Sensex was up 50.54 points. India's largest state-run oil explorer
Oil & Natural Gas Corporation slipped.
Asian stocks rose after the US government proposed a $700 billion
plan to solve the world financial crisis by rescuing banks from
billions of dollars in risky mortgage debt. Key benchmark indices
in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were
up by between 0.19% to 6.96%.
However, uncertainty about the workings of the government's $700
billion bank bailout drove US stock index futures lower, suggesting
the US market may open lower today, 22 September 2008. The S&P 500
futures were down 9.10 points, the Dow futures were down 99 points
and Nasdaq 100 futures were down 13 points. The drop in stock index
futures came on the heels of Friday's (19 September 2008) massive
rally in stocks worldwide -- the largest ever one-day advance as
measured by market value.
At 11:20 IST, the BSE 30-share Sensex was up 50.54 points or 0.36%
to 14,092.86. The Sensex rose 178.72 points at day's high of
14,221.04, hit in early trade. The index shed 27.05 points at the
day's low of 14,015.27, hit in early trade.
The S&P CNX Nifty was up 13.10 points or 0.31% to 4258.35.
The BSE Mid-Cap index was up 0.95% at 5,278.56 and the BSE
Small-Cap index was down 0.88% at 6,270.63.
The market breadth was positive on BSE with 1351 shares advancing
as compared to 794 that declined. 65 shares remained unchanged.
India's largest state-run oil explorer Oil & Natural Gas
Corporation dropped 1.13% to Rs 1058
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 1.08% at Rs 2074. The
company began production of crude oil from its KG-D6 block of the
Krishna Godavari basin on 17 September 2008 and the firm plans to
commercially release gas from the well by January 2009. The company
aims to supply at least 40% of the nation's requirement of oil and
gas and become one of the world's largest deep-water developers.
According to reports, the company can technically sell its
Krishna-Godavari (KG) basin gas at a price higher than the
government-discovered price of $4.20 per million British thermal
units (mBtu).
India's largest private sector bank by market capitalisation ICICI
Bank fell 0.79% at Rs 623.15.
Auto shares slipped as oil prices advanced. Hero Honda Motors (down
1.52% at Rs 808.50), Tata Motors (down 0.67% at Rs 420), and Maruti
Suzuki India (down 1.30% at Rs 732), tumbled. The BSE Auto index
was down 0.49% at 3,938.70.
Software shares slipped. Satyam Computer (down 2.53% at Rs 360.75),
TCS (down 0.15% at Rs 764.85), Wipro (down 0.13% at Rs 416.30), and
Infosys Technologies (down 0.36% at Rs 1618), declined. The BSE IT
index was down 0.36% at 3,653.69.
Metal shares were in demand. Gujarat NRE Coke (up 11.19% at Rs
73.05), Sesa Goa (up 6.78% at Rs 116.40), Welspun Gujarat Stahl
Rohren (up 2.40% at Rs 262.30), Jindal Steel (up 1.87% at Rs 1505),
and Tata Steel (up 3.13% at Rs 494.60), advanced. The BSE Metal
index was up 1.86% at 10,220.24.
Realty shares recovered after early decline. Akruti City (up 5.32%
at Rs 957.45), Housing Development & Infrastructure (up 3.77% at Rs
232.40), Unitech (up 3.33% at Rs 130.70), and DLF (up 2.90% at Rs
439.20), rose. The BSE Realty index was up 1.33% at 4,157.14. The
index came off early lows of 4,070.85.
Fashion apparel chain operator Pantaloon Retail India gained 2.23%
to Rs 316.90 after posting 74.24% growth in net profit to Rs 32.53
crore on 33% increase in total income to Rs 1381.44 crore in Q4
June 2008 over Q4 June 2007.
Software firm NIIT Technologies gained 3.35% to Rs 97.30 after the
company said it has secured a global sourcing contract from
American Safety Insurance Services, Inc to provide migration,
configuration and customization support.
According to the US administration's proposal, the federal
government would buy up as much as $700 billion of illiquid
mortgage assets at a deep discount from banks. The Treasury
Department would run the program directly, unlike the savings and
loan crisis of the 1990s when Congress created the Resolution Trust
Company to spearhead a financial bailout. The $700 billion plan,
the most sweeping intervention in the financial markets since the
Great Depression, is aimed at stemming the credit crisis roiling
Wall Street and threatening the global markets.
Back home, the current week will see expiry of September 2008
derivatives contracts. The September 2008 contracts expire on
Thursday, 25 September 2008. Roll over in Nifty futures till
Friday, 19 September 2008, was about 18% whereas Mini Nifty has
seen rollover of about 31% of positions.
As per reports, the overall rainfall in India in the current
monsoon season has till now been the best in the past six years in
terms of distribution though the quantum of rainfall was relatively
higher in 2003, 2006 and 2007. Rains were about 2% below normal
between 1 June 2008 and 17 September 2008.
Market slips into red after firm start; breadth positive
Extending Friday's (19 September 2008) solid surge, the key
benchmark indices opened higher. However, profit booking at higher
level pulled the indices in the red within few minutes of opening.
The market slipped as crude oil price breached $100 mark once
again, raising fears of inflationary pressures in the economy. Auto
banking and realty shares witnessed selling pressure. Shares of the
state-run oil refiners declined on high oil prices.
Stocks rose in Asia on hopes for a $700 billion bank bailout
proposed by the United States over the weekend to tackle the US
financial crisis. Key benchmark indices in Hong Kong, Japan, China,
South Korea, Singapore and Taiwan were up by between 0.24% to 6.4%.
According to the US administration's proposal, the federal
government would buy up as much as $700 billion of illiquid
mortgage assets at a deep discount from banks. The Treasury
Department would run the program directly, unlike the savings and
loan crisis of the 1990s when Congress created the Resolution Trust
Company to spearhead a financial bailout. The $700 billion plan,
the most sweeping intervention in the financial markets since the
Great Depression, is aimed at stemming the credit crisis roiling
Wall Street and threatening the global markets.
Back home, the current week will see expiry of September 2008
derivatives contracts. The September 2008 contracts expire on
Thursday, 25 September 2008. Roll over in Nifty futures till
Friday, 19 September 2008, was about 18% whereas Mini Nifty has
seen rollover of about 31% of positions.
At 10:20 IST, the BSE 30-share Sensex was down 15.92 points or
1.11% to 14,026.40. The index shed 27.05 points at the day's low of
14,015.27, hit in early trade. The Sensex rose 178.72 points at
day's high of 14,221.04, hit in early trade.
The S&P CNX Nifty was down 3.80 points or 0.09% to 4241.45.
The BSE Mid-Cap index was up 0.56% at 5,258.30 and the BSE
Small-Cap index was down 0.49% at 6,246.68.
The market breadth was positive on BSE with 982 shares advancing as
compared to 616 that declined. 52 shares remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 1.28% at Rs 2078.10. The
company began production of crude oil from its KG-D6 block of the
Krishna Godavari basin on 17 September 2008 and the firm plans to
commercially release gas from the well by January 2009. The company
aims to supply at least 40% of the nation's requirement of oil and
gas and become one of the world's largest deep-water developers.
According to reports, the company can technically sell its
Krishna-Godavari (KG) basin gas at a price higher than the
government-discovered price of $4.20 per million British thermal
units (mBtu).
India's second largest software exporter by sales Infosys
Technologies rose 0.13% at Rs 1626.
India's largest private sector bank by market capitalisation ICICI
Bank fell 0.60% at Rs 624.30.
Reliance Infrastructure (up 1.74% at Rs 906), ACC (up 1.31% at Rs
612.95), Tata Steel (up 1.19% at Rs 485.30), HDFC Bank (up 0.82% at
Rs 1309.85), Tata Power Company (up 0.85% at Rs 1036), Housing
Development Finance Corporation (up 0.77% at Rs 2325.60), edged
higher from the Sensex pack.
ONGC (down 2.15% at Rs 1049), Ranbaxy Laboratories (down 1.64% at
Rs 350), Maruti Suzuki (down 1.64% at Rs 351), Mahindra & Mahindra
(down 1.24% at Rs 547.10), Wipro (down 0.44% at Rs 415), Grasim
Induatries (down 0.49% at Rs 1908), edged lower from the Sensex
pack.
Shares of the state-run oil refiners declined on rise in oil
prices. BPCL (down 2.89% at Rs 336.05), HPCL (down 2.43% at Rs
229.05) and Indian Oil Corporation (down 1.59% at Rs 390.35),
slipped. Private sector oil explorer Cairn India rose 1.99% at Rs
225.70, and private sector oil refiner Reliance Petroleum rose
3.05% at Rs 155.50.
At 10:21 IST, the crude oil for October 2008 delivery was at $
104.73 a barrel
As per provisional data released by the stock exchanges, foreign
funds bought shares worth a net Rs 1016.18 crore on Friday, 19
September 2008. Domestic funds bought shares worth a net Rs 43.91
crore. The BSE 30-share Sensex jumped 726.72 points or 5.46% to
14,042.32 on Friday, 19 September 2008.
Foreign funds pressed sales worth a net Rs 7594.40 crore this month
(till 18 September 2008). Their cumulative outflow in calendar 2008
reached Rs 36108.20 crore.
benchmark indices opened higher. However, profit booking at higher
level pulled the indices in the red within few minutes of opening.
The market slipped as crude oil price breached $100 mark once
again, raising fears of inflationary pressures in the economy. Auto
banking and realty shares witnessed selling pressure. Shares of the
state-run oil refiners declined on high oil prices.
Stocks rose in Asia on hopes for a $700 billion bank bailout
proposed by the United States over the weekend to tackle the US
financial crisis. Key benchmark indices in Hong Kong, Japan, China,
South Korea, Singapore and Taiwan were up by between 0.24% to 6.4%.
According to the US administration's proposal, the federal
government would buy up as much as $700 billion of illiquid
mortgage assets at a deep discount from banks. The Treasury
Department would run the program directly, unlike the savings and
loan crisis of the 1990s when Congress created the Resolution Trust
Company to spearhead a financial bailout. The $700 billion plan,
the most sweeping intervention in the financial markets since the
Great Depression, is aimed at stemming the credit crisis roiling
Wall Street and threatening the global markets.
Back home, the current week will see expiry of September 2008
derivatives contracts. The September 2008 contracts expire on
Thursday, 25 September 2008. Roll over in Nifty futures till
Friday, 19 September 2008, was about 18% whereas Mini Nifty has
seen rollover of about 31% of positions.
At 10:20 IST, the BSE 30-share Sensex was down 15.92 points or
1.11% to 14,026.40. The index shed 27.05 points at the day's low of
14,015.27, hit in early trade. The Sensex rose 178.72 points at
day's high of 14,221.04, hit in early trade.
The S&P CNX Nifty was down 3.80 points or 0.09% to 4241.45.
The BSE Mid-Cap index was up 0.56% at 5,258.30 and the BSE
Small-Cap index was down 0.49% at 6,246.68.
The market breadth was positive on BSE with 982 shares advancing as
compared to 616 that declined. 52 shares remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 1.28% at Rs 2078.10. The
company began production of crude oil from its KG-D6 block of the
Krishna Godavari basin on 17 September 2008 and the firm plans to
commercially release gas from the well by January 2009. The company
aims to supply at least 40% of the nation's requirement of oil and
gas and become one of the world's largest deep-water developers.
According to reports, the company can technically sell its
Krishna-Godavari (KG) basin gas at a price higher than the
government-discovered price of $4.20 per million British thermal
units (mBtu).
India's second largest software exporter by sales Infosys
Technologies rose 0.13% at Rs 1626.
India's largest private sector bank by market capitalisation ICICI
Bank fell 0.60% at Rs 624.30.
Reliance Infrastructure (up 1.74% at Rs 906), ACC (up 1.31% at Rs
612.95), Tata Steel (up 1.19% at Rs 485.30), HDFC Bank (up 0.82% at
Rs 1309.85), Tata Power Company (up 0.85% at Rs 1036), Housing
Development Finance Corporation (up 0.77% at Rs 2325.60), edged
higher from the Sensex pack.
ONGC (down 2.15% at Rs 1049), Ranbaxy Laboratories (down 1.64% at
Rs 350), Maruti Suzuki (down 1.64% at Rs 351), Mahindra & Mahindra
(down 1.24% at Rs 547.10), Wipro (down 0.44% at Rs 415), Grasim
Induatries (down 0.49% at Rs 1908), edged lower from the Sensex
pack.
Shares of the state-run oil refiners declined on rise in oil
prices. BPCL (down 2.89% at Rs 336.05), HPCL (down 2.43% at Rs
229.05) and Indian Oil Corporation (down 1.59% at Rs 390.35),
slipped. Private sector oil explorer Cairn India rose 1.99% at Rs
225.70, and private sector oil refiner Reliance Petroleum rose
3.05% at Rs 155.50.
At 10:21 IST, the crude oil for October 2008 delivery was at $
104.73 a barrel
As per provisional data released by the stock exchanges, foreign
funds bought shares worth a net Rs 1016.18 crore on Friday, 19
September 2008. Domestic funds bought shares worth a net Rs 43.91
crore. The BSE 30-share Sensex jumped 726.72 points or 5.46% to
14,042.32 on Friday, 19 September 2008.
Foreign funds pressed sales worth a net Rs 7594.40 crore this month
(till 18 September 2008). Their cumulative outflow in calendar 2008
reached Rs 36108.20 crore.
Pre Market Report 22/09/2008
The market may edge higher extending Friday's (19 September 2008) solid surge on hopes for the $700 billion bank bailout proposed by the United States over the weekend to tackle the US financial crisis. Stocks rose in Asia today, 22 September 2008, boosted by the US package. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were up by between 0.24% to 6.4%.
According to the US administration's proposal, the federal government would buy up as much as $700 billion of illiquid mortgage assets at a deep discount from banks. The Treasury Department would run the program directly, unlike the savings and loan crisis of the 1990s when Congress created the Resolution Trust Company to spearhead a financial bailout. The $700 billion plan, the most sweeping intervention in the financial markets since the Great Depression, is aimed at stemming the credit crisis roiling Wall Street and threatening the global markets.
Stocks across the global had risen sharply late last week after regulators and central banks across the globe came to the rescue of the battered markets. On Thursday, 28 September 2008, major central banks around the world announced a series of measures to improve dollar liquidity in money markets. UK on Friday, 19 September 2008, announced a four-month ban on short-selling of financial stocks. In US, the Securities and Exchange Commission announced a temporary ban on short selling of 799 financial stocks effective Friday, 19 September 2008.
A deep financial crisis engulfed the global markets last week when the US investment banking giant Lehman Brothers filed for bankruptcy, Merrill Lynch was bought over by Bank of America in a distress sale and the world's largest insurer AIG had to seek US government help to thwart an imminent collapse.
As per provisional data released by the stock exchanges, foreign funds bought shares worth a net Rs 1016.18 crore on Friday, 19 September 2008. Domestic funds bought shares worth a net Rs 43.91 crore. The BSE 30-share Sensex jumped 726.72 points or 5.46% to 14,042.32 on Friday, 19 September 2008.
Foreign funds pressed sales worth a net Rs 7594.40 crore this month (till 18 September 2008). Their cumulative outflow in calendar 2008 reached Rs 36108.20 crore.
In the near term, the domestic bourses will also eye developments on the Indo-US nuclear deal front. US Undersecretary of State William Burns on Thursday, 18 September 2008, urged members of the US Congress to approve a US-India nuclear cooperation agreement before the House and Senate adjourn ahead of November 2008 elections. However, some US lawmakers have strong concerns about the pact, chiefly that the extra fuel the accord provides could boost India's nuclear arsenal by freeing up its domestic uranium for weapons.
According to the US administration's proposal, the federal government would buy up as much as $700 billion of illiquid mortgage assets at a deep discount from banks. The Treasury Department would run the program directly, unlike the savings and loan crisis of the 1990s when Congress created the Resolution Trust Company to spearhead a financial bailout. The $700 billion plan, the most sweeping intervention in the financial markets since the Great Depression, is aimed at stemming the credit crisis roiling Wall Street and threatening the global markets.
Stocks across the global had risen sharply late last week after regulators and central banks across the globe came to the rescue of the battered markets. On Thursday, 28 September 2008, major central banks around the world announced a series of measures to improve dollar liquidity in money markets. UK on Friday, 19 September 2008, announced a four-month ban on short-selling of financial stocks. In US, the Securities and Exchange Commission announced a temporary ban on short selling of 799 financial stocks effective Friday, 19 September 2008.
A deep financial crisis engulfed the global markets last week when the US investment banking giant Lehman Brothers filed for bankruptcy, Merrill Lynch was bought over by Bank of America in a distress sale and the world's largest insurer AIG had to seek US government help to thwart an imminent collapse.
As per provisional data released by the stock exchanges, foreign funds bought shares worth a net Rs 1016.18 crore on Friday, 19 September 2008. Domestic funds bought shares worth a net Rs 43.91 crore. The BSE 30-share Sensex jumped 726.72 points or 5.46% to 14,042.32 on Friday, 19 September 2008.
Foreign funds pressed sales worth a net Rs 7594.40 crore this month (till 18 September 2008). Their cumulative outflow in calendar 2008 reached Rs 36108.20 crore.
In the near term, the domestic bourses will also eye developments on the Indo-US nuclear deal front. US Undersecretary of State William Burns on Thursday, 18 September 2008, urged members of the US Congress to approve a US-India nuclear cooperation agreement before the House and Senate adjourn ahead of November 2008 elections. However, some US lawmakers have strong concerns about the pact, chiefly that the extra fuel the accord provides could boost India's nuclear arsenal by freeing up its domestic uranium for weapons.
Tips for 22nd Sep 2008
On Mobile buy 464.20 stoploss 424.00 target 535 566
CHI Investment buy 33.00 stoploss 29.00 target 38 43
Ganesh Forging buy 23.05 stoploss 20.00 target 28 33
Infosys buy 1624.55 stoploss 1612 1600 target 1667 1704
SesaGoa buy 109.90 stoploss 106 103 target 119 127
Escorts buy 71.95 stoploss 68 65 target 78 85
Century Text buy 396.15 stoploss 388 380 target 428 458
BUY PUNJLLOYD ABOVE 315 TGT 321>329 STOPLOSS 308
IFCI buy 40.60 stoploss 39 37 target 44 49
BUY HDFC ABOVE 2332 TGT 2401>2471 STOPLOSS 2289
CHI Investment buy 33.00 stoploss 29.00 target 38 43
Ganesh Forging buy 23.05 stoploss 20.00 target 28 33
Infosys buy 1624.55 stoploss 1612 1600 target 1667 1704
SesaGoa buy 109.90 stoploss 106 103 target 119 127
Escorts buy 71.95 stoploss 68 65 target 78 85
Century Text buy 396.15 stoploss 388 380 target 428 458
BUY PUNJLLOYD ABOVE 315 TGT 321>329 STOPLOSS 308
IFCI buy 40.60 stoploss 39 37 target 44 49
BUY HDFC ABOVE 2332 TGT 2401>2471 STOPLOSS 2289
Sunday, September 21, 2008
Suzlon Energy Annual Report
Suzlon Energy’s (Suzlon) ROAE (adjusted) before exceptional items was at 20.2%,despite return on net operating assets (RNOA) before exceptional items being at 14.2%(ROE analyser analyses the difference).Declining RNOA, from 36% in FY06 to 14% in FY08, has led to ROAE dipping from 42%in FY06 to 20% in FY08. Cost of goods sold (as a percentage of sales) increased from 60% of sales in FY07 to65% in FY08, due to change in geographical mix in which it operates, undertaking ofwind turbine generator (WTG) erection, installation and commissioning of project activities, and changes in product mix. Unhedged foreign currency exposure (net liabilities) as at March 31, 2008, was INR 7.2bn. The company has recognised foreign exchange gain of INR 258 mn in FY08 (loss ofINR 333 mn in FY07) out of which INR 195 mn is unrealised gain. With INRdepreciating 13% against USD since March 2008, future profits will be impacted. During the year, Suzlon reported exceptional expenses of INR 1.5 bn (net of tax). Itincludes a provision of INR 1.2 bn made to resolve the blade crack issue in some of itsS88 turbines in the US and Portugal
NAAZARE For Week 22.09.08 To 26.09.08
Last week was very very bad and superb also for all world markets. In the early stage of las week, News of Lehman Brothers and Merrill Lynch has came out ….then the news of AIG……. Bank Of America had bought Merril Lynch.....more bad news had came out till thurday morning…..all world market was on blood bath….Even India too…….. We had lost almost 1500 pts…..and index had touched the low of 12558 and nifty future had touched the low of 3812 on Thursday morning in the opening trade. Then after the news of all central banks had agreed to come together boost all world markets and our FM had given the good statement about our all banks and AIG’s stake in TATA AIG act as boost to our market also. From lower level of 12558 it has touched a high of 14097 and nifty future from a low of 3812 ,touched a high of 4285.50.
We will advise you all to take profits of 25-30% whenever u r getting and stay well in cash. Buy at dips only and take profits at rise. If FII’s, HNI’s and Mutual Funds were keeping cash on hands, buying at dips and taking profits at higher levels then why we can’t ??? …… We advise all our dear investors like u that please be choosy with your hard earned money and be choosy to invest at right levels in right stocks……….. Wishing u all the best wishes to get good and profitable returns on your investments. May god gives u all the wealthy returns……..
If Index Crosses 14325 then It may touch 14663,14945…13674 May Act as Strong Support….
If Nifty Fut Crosses 4346,then 4418,4490,4526…4142 May Act As Strong Support…..
We will advise you all to take profits of 25-30% whenever u r getting and stay well in cash. Buy at dips only and take profits at rise. If FII’s, HNI’s and Mutual Funds were keeping cash on hands, buying at dips and taking profits at higher levels then why we can’t ??? …… We advise all our dear investors like u that please be choosy with your hard earned money and be choosy to invest at right levels in right stocks……….. Wishing u all the best wishes to get good and profitable returns on your investments. May god gives u all the wealthy returns……..
If Index Crosses 14325 then It may touch 14663,14945…13674 May Act as Strong Support….
If Nifty Fut Crosses 4346,then 4418,4490,4526…4142 May Act As Strong Support…..
McAfee shares surge as software concerns ease
SAN FRANCISCO (AP) -- McAfee Inc. shares surged more than 6 percent Friday, recovering some of the losses that piled up in recent weeks as investors fretted about businesses curtailing their spending on software products amid the U.S. economy's deepening woes.
But those concerns eased late Thursday after Oracle Corp., the world's second-largest software maker, released quarterly earnings that topped analyst estimates.
McAfee, a leading maker of computer security software, is currently in the tail end of its third quarter and won't report the results until next month. But investors are now betting the Santa Clara, Calif.-based company's sales will hold up better than they thought.
The renewed optimism helped lift McAfee shares $2.18, or 6.2 percent, to $37.31 Friday. The stock price had fallen by 12 percent this month before rallying in the last two sessions.
Friedman, Billings, Ramsey & Co. analyst Daniel Ives gave McAfee a vote of confidence in a Friday note that reported the company had closed several sales with corporate customers in recent weeks. Ives also upgraded his rating on McAfee's stock to "Market Perform" from "Underperform."
Although McAfee seems to be faring reasonably well, Ives remains worried about a spending slowdown on information technology later this year.
"We continue to be cautious" about McAfee's stock, Ives stressed.
But those concerns eased late Thursday after Oracle Corp., the world's second-largest software maker, released quarterly earnings that topped analyst estimates.
McAfee, a leading maker of computer security software, is currently in the tail end of its third quarter and won't report the results until next month. But investors are now betting the Santa Clara, Calif.-based company's sales will hold up better than they thought.
The renewed optimism helped lift McAfee shares $2.18, or 6.2 percent, to $37.31 Friday. The stock price had fallen by 12 percent this month before rallying in the last two sessions.
Friedman, Billings, Ramsey & Co. analyst Daniel Ives gave McAfee a vote of confidence in a Friday note that reported the company had closed several sales with corporate customers in recent weeks. Ives also upgraded his rating on McAfee's stock to "Market Perform" from "Underperform."
Although McAfee seems to be faring reasonably well, Ives remains worried about a spending slowdown on information technology later this year.
"We continue to be cautious" about McAfee's stock, Ives stressed.
$700B rescue plan may not save some troubled banks
NEW YORK (AP) -- A sweeping government plan to buy up to $700 billion in bad mortgages may not be enough to save some banks, which experts say may be forced to absorb big losses if they sell their troubled assets.
The proposal for the government to soak up the mortgage-backed securities would be the biggest bailout plan since the Great Depression, but experts say a critical issue will be how much it actually pays for the troubled assets.
How the government might acquire banks' toxic debt is still being ironed out, but one approach suggested by Treasury Secretary Henry Paulson involves a process under which financial institutions would propose a price for their mortgage-backed securities and the government would choose the lowest bids.
If banks sell at the proposed price -- say 50 cents on the dollar -- accounting rules would require firms to take the losses on their balance sheets before getting the damaged assets off their books. For weaker banks buffeted by the deepening credit crisis, the losses may hinder their ability to go out raise capital, make loans and ultimately stay afloat, according to industry experts.
"There is a risk that there will be bank failures to come," said Vincent R. Reinhart, former director of the Federal Reserve's monetary affairs division.
While the reverse auctions could help banks set a clearing price for mortgage-related assets, Reinhart said, that "price doesn't mean that every financial firm will be solvent" after those assets are sold.
Another risk is that if the auctions set too low a price for mortgage-related assets, other institutions with bad debt may be forced to take the distressed valuation onto their books under mark-to-market accounting rules, Reinhart said. Mark-to-market rules involve adjusting the price of an asset to reflect its current market value.
"If the auctions don't go well, it will drag down everybody's balance sheet who marks to market," Reinhart said.
The financial system has been battered by $500 billion in losses from the mortgage mess, and the International Monetary Fund has estimated the price tag could ultimately top $1 trillion.
The crisis has forced 11 federally insured banks and thrifts into failure this year. Another 117 banks and thrifts were considered to be in trouble in the second quarter -- the highest level since 2003 -- with the total assets of troubled banks tripling to $78 billion, according to the Federal Deposit Insurance Corp. The agency does not disclose which institutions are on its list, but on average, 13 percent of banks that make the list fail.
Christopher Whalen, senior vice president and managing director of Institutional Risk Analytics, has predicted that 110 banks with assets worth $850 billion are in danger of failing by next summer. He said the Treasury Department's rescue plan hasn't given him reason to be more optimistic.
"If the government comes in and buys these assets at a discount and you're a strong bank, you don't care because you're getting cash and you go off and do business. If you're a weak bank and you take a big hit, you may not have that option," Whalen said.
He said the government may decide that the only option to save some banks is to pay full price for the assets in exchange for equity, which could be sold later.
But that could be risky because if the government pays too high a price, it will be difficult if not impossible to go out and sell the assets for a profit in the future, meaning any losses incurred would be absorbed by taxpayers. But paying too little also is problematic because banks will be forced to take steeper losses that they may not be able to recover from.
"The government should be able to arrange to pick a price that helps the banks but also that allow the government to turn around and make a profit down the line," said Marvin Goodfriend, professor of economics at Carnegie Mellon University.
The proposal for the government to soak up the mortgage-backed securities would be the biggest bailout plan since the Great Depression, but experts say a critical issue will be how much it actually pays for the troubled assets.
How the government might acquire banks' toxic debt is still being ironed out, but one approach suggested by Treasury Secretary Henry Paulson involves a process under which financial institutions would propose a price for their mortgage-backed securities and the government would choose the lowest bids.
If banks sell at the proposed price -- say 50 cents on the dollar -- accounting rules would require firms to take the losses on their balance sheets before getting the damaged assets off their books. For weaker banks buffeted by the deepening credit crisis, the losses may hinder their ability to go out raise capital, make loans and ultimately stay afloat, according to industry experts.
"There is a risk that there will be bank failures to come," said Vincent R. Reinhart, former director of the Federal Reserve's monetary affairs division.
While the reverse auctions could help banks set a clearing price for mortgage-related assets, Reinhart said, that "price doesn't mean that every financial firm will be solvent" after those assets are sold.
Another risk is that if the auctions set too low a price for mortgage-related assets, other institutions with bad debt may be forced to take the distressed valuation onto their books under mark-to-market accounting rules, Reinhart said. Mark-to-market rules involve adjusting the price of an asset to reflect its current market value.
"If the auctions don't go well, it will drag down everybody's balance sheet who marks to market," Reinhart said.
The financial system has been battered by $500 billion in losses from the mortgage mess, and the International Monetary Fund has estimated the price tag could ultimately top $1 trillion.
The crisis has forced 11 federally insured banks and thrifts into failure this year. Another 117 banks and thrifts were considered to be in trouble in the second quarter -- the highest level since 2003 -- with the total assets of troubled banks tripling to $78 billion, according to the Federal Deposit Insurance Corp. The agency does not disclose which institutions are on its list, but on average, 13 percent of banks that make the list fail.
Christopher Whalen, senior vice president and managing director of Institutional Risk Analytics, has predicted that 110 banks with assets worth $850 billion are in danger of failing by next summer. He said the Treasury Department's rescue plan hasn't given him reason to be more optimistic.
"If the government comes in and buys these assets at a discount and you're a strong bank, you don't care because you're getting cash and you go off and do business. If you're a weak bank and you take a big hit, you may not have that option," Whalen said.
He said the government may decide that the only option to save some banks is to pay full price for the assets in exchange for equity, which could be sold later.
But that could be risky because if the government pays too high a price, it will be difficult if not impossible to go out and sell the assets for a profit in the future, meaning any losses incurred would be absorbed by taxpayers. But paying too little also is problematic because banks will be forced to take steeper losses that they may not be able to recover from.
"The government should be able to arrange to pick a price that helps the banks but also that allow the government to turn around and make a profit down the line," said Marvin Goodfriend, professor of economics at Carnegie Mellon University.
Economists see financial bailout as necessary
WASHINGTON (AP) -- The economy could suffer a massive hangover from the government's efforts to rescue the financial system in the form of a soaring debt burden. But the alternatives look infinitely worse.
The $700 billion the administration is seeking from Congress as the upper bounds of what it will need to take a mountain of bad loans off the books of financial firms is certainly an eye-popping figure.
To get the funds to buy up the bad mortgage loans that have threatened to bring the financial system to its knees, the government will have to borrow. And that borrowing will come at a time when the federal budget deficit is already soaring.
The deficit for this budget year, which ends on Sept. 30, is expected to rise to $407 billion, a figure that is more than double the $161.5 billion imbalance for 2007, reflecting what the economic slowdown and this year's $168 billion economic stimulus program are already doing to the government's books.
The Bush administration is estimating that the deficit for the budget year that begins Oct. 1, which will cover the new president's first year in office, will hit $482 billion, a record in dollar terms.
And that forecast doesn't include the $200 billion the administration committed to spending two weeks ago when it took over the nation's two biggest mortgage companies, Fannie Mae and Freddie Mac.
And it doesn't have any of the $700 billion the administration is seeking to soak up the bad mortgage-backed securities that have been at the heart of the severe credit crisis the country has been struggling with since August 2007.
The legislation Congress passed this summer that gave the authority to rescue Fannie and Freddie boosted the limit on the national debt by $800 billion to $10.6 trillion.
The legislation the administration is now seeking to authorize the financial system bailout, according to a draft obtained by The Associated Press, would boost that debt limit to $11.3 trillion, up another $700 billion.
It is the rapidly rising debt that is cause for concern. The government is already spending more than $400 billion a year just to pay interest on the national debt. The higher that debt goes, the higher the government's borrowing costs and the less it has to spend on other programs.
Republican John McCain and Democrat Barack Obama are both running for president, making campaign promises about what new programs they will implement once in office, promises that could be severely constrained by the costs of a financial bailout.
The escalating borrowing also means that the government is competing with the private sector for loans, driving up interest rates. And then there is the matter of the country's large trade imbalances which mean the United States has to borrow $2 billion a day from foreigners.
Will foreigners still want to lend as much to the United States if there are concerns that all the borrowing could weaken the dollar's value against other currencies.
But even with all these threats, economists said the government has to take decisive action because the alternative of letting the financial system slide into even deeper problems which could jeopardize the routine loans that businesses and consumers need was simply not an option.
"It was critical to arrest the downward slide in financial markets," said Sung Won Sohn, an economist at California State University, Channel Islands.
The dire situation was dramatically demonstrated this past week when the Federal Reserve, working with the central banks of other nations, poured billions of dollars into the financial system without any significant impact because of the fear keeping banks from lending.
The financial system has already been staggered with $500 billion in losses from the mortgage mess and the International Monetary Fund has estimated the ultimate price could be $1 trillion.
What the administration's plan would do is at least establish a price for the mortgage-backed securities, which at the moment no one wants to own.
Officials who have briefed Congress on Treasury Secretary Henry Paulson's plan have suggested that one approach would be for the government to buy the toxic debt through a reverse auction process in which companies wanting to unload their mortgage-backed securities would propose a price to the government -- say 50 cents on the dollar -- and those offering the lowest price would win the bid.
By establishing a price for assets no one currently wants to buy, it could allow a market to develop and allow financial firms to get on with the effort of taking their losses and getting the damaged assets off their books.
"This could go a long way toward solving these problems," said Mark Zandi, chief economist at Moody's Economy.com, who has written a book on the mortgage meltdown.
And the final cost to the government?
No one knows for sure, but Zandi said if the experience with cleaning up all the assets left over from the savings and loan mess is any guide, it should be less than the $700 billion that the administration is seeking.
In the S&L crisis, the government was able to recoup about two-thirds of its initial costs when it sold the assets it had obtained from the failed S&Ls.
"Obviously there is a big upfront cost to taxpayers," Zandi said, "but the ultimate cost may be measurably lower."
The $700 billion the administration is seeking from Congress as the upper bounds of what it will need to take a mountain of bad loans off the books of financial firms is certainly an eye-popping figure.
To get the funds to buy up the bad mortgage loans that have threatened to bring the financial system to its knees, the government will have to borrow. And that borrowing will come at a time when the federal budget deficit is already soaring.
The deficit for this budget year, which ends on Sept. 30, is expected to rise to $407 billion, a figure that is more than double the $161.5 billion imbalance for 2007, reflecting what the economic slowdown and this year's $168 billion economic stimulus program are already doing to the government's books.
The Bush administration is estimating that the deficit for the budget year that begins Oct. 1, which will cover the new president's first year in office, will hit $482 billion, a record in dollar terms.
And that forecast doesn't include the $200 billion the administration committed to spending two weeks ago when it took over the nation's two biggest mortgage companies, Fannie Mae and Freddie Mac.
And it doesn't have any of the $700 billion the administration is seeking to soak up the bad mortgage-backed securities that have been at the heart of the severe credit crisis the country has been struggling with since August 2007.
The legislation Congress passed this summer that gave the authority to rescue Fannie and Freddie boosted the limit on the national debt by $800 billion to $10.6 trillion.
The legislation the administration is now seeking to authorize the financial system bailout, according to a draft obtained by The Associated Press, would boost that debt limit to $11.3 trillion, up another $700 billion.
It is the rapidly rising debt that is cause for concern. The government is already spending more than $400 billion a year just to pay interest on the national debt. The higher that debt goes, the higher the government's borrowing costs and the less it has to spend on other programs.
Republican John McCain and Democrat Barack Obama are both running for president, making campaign promises about what new programs they will implement once in office, promises that could be severely constrained by the costs of a financial bailout.
The escalating borrowing also means that the government is competing with the private sector for loans, driving up interest rates. And then there is the matter of the country's large trade imbalances which mean the United States has to borrow $2 billion a day from foreigners.
Will foreigners still want to lend as much to the United States if there are concerns that all the borrowing could weaken the dollar's value against other currencies.
But even with all these threats, economists said the government has to take decisive action because the alternative of letting the financial system slide into even deeper problems which could jeopardize the routine loans that businesses and consumers need was simply not an option.
"It was critical to arrest the downward slide in financial markets," said Sung Won Sohn, an economist at California State University, Channel Islands.
The dire situation was dramatically demonstrated this past week when the Federal Reserve, working with the central banks of other nations, poured billions of dollars into the financial system without any significant impact because of the fear keeping banks from lending.
The financial system has already been staggered with $500 billion in losses from the mortgage mess and the International Monetary Fund has estimated the ultimate price could be $1 trillion.
What the administration's plan would do is at least establish a price for the mortgage-backed securities, which at the moment no one wants to own.
Officials who have briefed Congress on Treasury Secretary Henry Paulson's plan have suggested that one approach would be for the government to buy the toxic debt through a reverse auction process in which companies wanting to unload their mortgage-backed securities would propose a price to the government -- say 50 cents on the dollar -- and those offering the lowest price would win the bid.
By establishing a price for assets no one currently wants to buy, it could allow a market to develop and allow financial firms to get on with the effort of taking their losses and getting the damaged assets off their books.
"This could go a long way toward solving these problems," said Mark Zandi, chief economist at Moody's Economy.com, who has written a book on the mortgage meltdown.
And the final cost to the government?
No one knows for sure, but Zandi said if the experience with cleaning up all the assets left over from the savings and loan mess is any guide, it should be less than the $700 billion that the administration is seeking.
In the S&L crisis, the government was able to recoup about two-thirds of its initial costs when it sold the assets it had obtained from the failed S&Ls.
"Obviously there is a big upfront cost to taxpayers," Zandi said, "but the ultimate cost may be measurably lower."
Friday, September 19, 2008
Videocon-BPCL JV Completes Acquisition of EnCana Brasil Petroleo
The acquisition will cost Videocon-BPCL $165 million. The deal was signed in September last year.
Videocon Industries' 50:50 JV with BPCL-- VB (Brasil) Petroleo Private Ltd, has completed the transaction to acquire 100% stake of EnCana Brasil Petroleo Limitada , for $165 million. The JV firm has also paid an amount of $ 118 million as reimbursement of all the expenses of the Brazilian firm since January 01, 2007.
The unit was the Brazilian arm of Canadian gas producer EnCana and the Indian firms had entered into an agreement to acquire the stake in September last year with the effective date of the transaction agreed to be January 01, 2007. It marked EnCana's exit from Brazil as part of its refocus on natural gas and oil assets in North America.
EnCana Brasil's assets include ten deep water offshore petroleum exploration blocks in four basins in Brazil. Petrobras, the national oil Company of Brazil, operates three of these four basins whereas US-based Anadarko Corp is the operator in fourth basin. Out of the total 10 blocks Petrobras are operators in seven.
Videocon has been partnering public sector oil and gas firms in both India and overseas to expand its energy business. Besides its venture with BPCL, it also has domestic JV with ONGC among others in the Ravva oil and gas fields.
Most recently, it had partnered with BPCL in picking 10% stake each in an offshore oil exploration block in Mozambique. The capital outlay for the transaction was estimated at $75 million for Videocon
Videocon Industries' 50:50 JV with BPCL-- VB (Brasil) Petroleo Private Ltd, has completed the transaction to acquire 100% stake of EnCana Brasil Petroleo Limitada , for $165 million. The JV firm has also paid an amount of $ 118 million as reimbursement of all the expenses of the Brazilian firm since January 01, 2007.
The unit was the Brazilian arm of Canadian gas producer EnCana and the Indian firms had entered into an agreement to acquire the stake in September last year with the effective date of the transaction agreed to be January 01, 2007. It marked EnCana's exit from Brazil as part of its refocus on natural gas and oil assets in North America.
EnCana Brasil's assets include ten deep water offshore petroleum exploration blocks in four basins in Brazil. Petrobras, the national oil Company of Brazil, operates three of these four basins whereas US-based Anadarko Corp is the operator in fourth basin. Out of the total 10 blocks Petrobras are operators in seven.
Videocon has been partnering public sector oil and gas firms in both India and overseas to expand its energy business. Besides its venture with BPCL, it also has domestic JV with ONGC among others in the Ravva oil and gas fields.
Most recently, it had partnered with BPCL in picking 10% stake each in an offshore oil exploration block in Mozambique. The capital outlay for the transaction was estimated at $75 million for Videocon
Europe's Stoxx 600, FTSE 100 Surge Most on Record; Banks Gain
Sept. 19 (Bloomberg) -- European stocks surged, sending the Dow Jones Stoxx 600 Index and the FTSE 100 to their biggest gains on record, after the U.S. government announced plans to halt the credit-market seizure and regulators cracked down on short sellers.
UBS AG, the European bank hardest hit by the subprime crisis, climbed 32 percent after U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed removing troubled assets from the balance sheets of financial companies. Barclays Plc advanced 29 percent as the U.K.'s Financial Services Authority banned speculators from betting against financial shares until Jan. 16.
The Stoxx 600 rose the most since data for the index began in 1987, adding 8.3 percent to 278 at 4:37 p.m. in London, led by a rally in banks, insurers and basic resource companies. The FTSE 100 posted a record advance of 9.3 percent, while Russia's RTS Index jumped 22 percent after a two-day suspension and President Dmitry Medvedev's pledge of $20 billion to prop up the market.
``At the start of the week, equity investors weren't just facing a loss but an absolute loss,'' said Gary Dugan, London- based chief investment officer for Europe at Merrill Lynch Global Wealth Management, which oversees $2 trillion. ``Now what they are saying is every financial institution is virtually underwritten by this proposal to drop those assets into a life boat.''
Lehman, AIG
The Stoxx 600 still lost 0.9 percent this week after Lehman Brothers Holdings Inc. filed for bankruptcy, the U.S. government seized control of American International Group Inc. and Merrill Lynch & Co. was forced to sell itself to Bank of America Corp. More than $500 billion in credit losses and writedowns at banks have pushed the global economy toward a recession.
U.S. Treasuries and European government bonds fell today on speculation Paulson and Bernanke's plan will increase demand for stocks over bonds. The Treasury also announced a $50 billion program to insure the holdings of money-market mutual funds for a year.
The dollar rose the most in more than five months against the yen, while the cost of default protection on corporate bonds dropped by the most since the bailout of Bear Stearns Cos. in March.
National benchmark indexes climbed in all 18 western European markets. Germany's DAX jumped 5.6 percent while France's CAC 40 rose 9.3 percent, the most on record.
`Arms Around'
``This resolution will get its arms around the entire financial sector and allow them to no longer be an anchor on the rest of the economy,'' said Neil Dwane, chief investment officer for Europe at Allianz Global Investors' RCM unit, where he helps oversee $65 billion. ``For sentiment the worst could be over for financials.''
UBS added 32 percent to 21 francs. Deutsche Bank AG, Germany's largest bank, jumped 14 percent to 57.50 euros, while Credit Suisse Group, Switzerland's second-biggest bank, climbed 19 percent to 56 francs.
HBOS Plc gained 29 percent to 222.5 pence, trimming its weekly decline to 21 percent. Barclays rose 29 percent to 389 pence, leaving it with a 11 percent gain for the week. Lloyd's TSB Group Plc, the U.K.'s biggest provider of checking accounts, advanced 20 percent to 285.75 pence.
The U.K. Financial Services Authority said today its ban on short selling of financial shares will apply to 29 companies including HBOS and Barclays.
Irish Shorts
Ireland's financial regulator also banned short selling of the country's banking stocks to ``ensure the orderly conduct of the market,'' following the move by its U.K. counterpart. Bank of Ireland Plc gained 39 percent to 5.27 euros amid speculation Spain's Banco Santander SA may bid for the country's second biggest bank.
The Irish lender said today it has not received an approach or entered into discussions with Banco Santander or any other party.
Volkswagen AG was one of just 27 stocks in the Stoxx 600 to fall today. Europe's largest carmaker dropped 14 percent to 262 euros as investors decided recent gains were overdone following a 47 percent surge in the past three days.
Christian Aust, an analyst with Munich-based Unicredit, said the ``irrational levels'' that Volkswagen stock reached this week, amid a rally that included short-sellers unwinding positions in the wake of the bankruptcy of Lehman Brothers, couldn't be sustained
UBS AG, the European bank hardest hit by the subprime crisis, climbed 32 percent after U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed removing troubled assets from the balance sheets of financial companies. Barclays Plc advanced 29 percent as the U.K.'s Financial Services Authority banned speculators from betting against financial shares until Jan. 16.
The Stoxx 600 rose the most since data for the index began in 1987, adding 8.3 percent to 278 at 4:37 p.m. in London, led by a rally in banks, insurers and basic resource companies. The FTSE 100 posted a record advance of 9.3 percent, while Russia's RTS Index jumped 22 percent after a two-day suspension and President Dmitry Medvedev's pledge of $20 billion to prop up the market.
``At the start of the week, equity investors weren't just facing a loss but an absolute loss,'' said Gary Dugan, London- based chief investment officer for Europe at Merrill Lynch Global Wealth Management, which oversees $2 trillion. ``Now what they are saying is every financial institution is virtually underwritten by this proposal to drop those assets into a life boat.''
Lehman, AIG
The Stoxx 600 still lost 0.9 percent this week after Lehman Brothers Holdings Inc. filed for bankruptcy, the U.S. government seized control of American International Group Inc. and Merrill Lynch & Co. was forced to sell itself to Bank of America Corp. More than $500 billion in credit losses and writedowns at banks have pushed the global economy toward a recession.
U.S. Treasuries and European government bonds fell today on speculation Paulson and Bernanke's plan will increase demand for stocks over bonds. The Treasury also announced a $50 billion program to insure the holdings of money-market mutual funds for a year.
The dollar rose the most in more than five months against the yen, while the cost of default protection on corporate bonds dropped by the most since the bailout of Bear Stearns Cos. in March.
National benchmark indexes climbed in all 18 western European markets. Germany's DAX jumped 5.6 percent while France's CAC 40 rose 9.3 percent, the most on record.
`Arms Around'
``This resolution will get its arms around the entire financial sector and allow them to no longer be an anchor on the rest of the economy,'' said Neil Dwane, chief investment officer for Europe at Allianz Global Investors' RCM unit, where he helps oversee $65 billion. ``For sentiment the worst could be over for financials.''
UBS added 32 percent to 21 francs. Deutsche Bank AG, Germany's largest bank, jumped 14 percent to 57.50 euros, while Credit Suisse Group, Switzerland's second-biggest bank, climbed 19 percent to 56 francs.
HBOS Plc gained 29 percent to 222.5 pence, trimming its weekly decline to 21 percent. Barclays rose 29 percent to 389 pence, leaving it with a 11 percent gain for the week. Lloyd's TSB Group Plc, the U.K.'s biggest provider of checking accounts, advanced 20 percent to 285.75 pence.
The U.K. Financial Services Authority said today its ban on short selling of financial shares will apply to 29 companies including HBOS and Barclays.
Irish Shorts
Ireland's financial regulator also banned short selling of the country's banking stocks to ``ensure the orderly conduct of the market,'' following the move by its U.K. counterpart. Bank of Ireland Plc gained 39 percent to 5.27 euros amid speculation Spain's Banco Santander SA may bid for the country's second biggest bank.
The Irish lender said today it has not received an approach or entered into discussions with Banco Santander or any other party.
Volkswagen AG was one of just 27 stocks in the Stoxx 600 to fall today. Europe's largest carmaker dropped 14 percent to 262 euros as investors decided recent gains were overdone following a 47 percent surge in the past three days.
Christian Aust, an analyst with Munich-based Unicredit, said the ``irrational levels'' that Volkswagen stock reached this week, amid a rally that included short-sellers unwinding positions in the wake of the bankruptcy of Lehman Brothers, couldn't be sustained
Medical Equipment Firm Opto Circuits To Acquire European Co For $100M
Healthcare equipment maker Opto Circuits has acquired an unnamed European company for over $100 million. This would be Opto's biggest overseas acquisition. Informing the BSE about its acquisition Opto said that the privately held company is involved in manufacturing medical equipments. It also said that it has signed a non binding letter of Intent (LOI) for the proposed purchase with the target company. Opto is also plannning to raise up to Rs 1,000 crore ($250 million) to fund its acquisitions and retire its debt. The company will seek shareholders approval regarding this at the AGM on September 30.
For FY08, Opto reported net profits of Rs 132.39 crore, up by 80% over revenues of Rs 468 crore. The company has several overeas acquisitions under its belt. Earlier this year it acquired US-based Criticare Systems, a non-invasive medical devices manufacturer, for $70 million. It raised a debt of $52 million for this acquisition. Opto also acquired EuroCOR GmbH of Germany, a company that designs and manufactures various kinds of stents, for around $15 million in 2005. It had also acquired patient monitoring division of Palco Labs, USA in 2003 and renamed the same as MediAid Inc.
Opto has a manufacturing & R&D facility at Electronics City, Bangalore. Opto's shares are currently trading at Rs 295, nearly half of its 52-week low of Rs 580, and has a market capitalisation of Rs 290 crore.
For FY08, Opto reported net profits of Rs 132.39 crore, up by 80% over revenues of Rs 468 crore. The company has several overeas acquisitions under its belt. Earlier this year it acquired US-based Criticare Systems, a non-invasive medical devices manufacturer, for $70 million. It raised a debt of $52 million for this acquisition. Opto also acquired EuroCOR GmbH of Germany, a company that designs and manufactures various kinds of stents, for around $15 million in 2005. It had also acquired patient monitoring division of Palco Labs, USA in 2003 and renamed the same as MediAid Inc.
Opto has a manufacturing & R&D facility at Electronics City, Bangalore. Opto's shares are currently trading at Rs 295, nearly half of its 52-week low of Rs 580, and has a market capitalisation of Rs 290 crore.
US Stocks Skyrocket on Government Rescue Plan, Ban on Short-Selling of Financials-
NEW YORK (AP) -- Wall Street extended a huge rally Friday as investors stormed back into the market, relieved that the government plans to rescue banks from billions of dollars in bad debt. The Dow Jones industrials rose more than 400 points, giving them a massive gain of more than 800 points over two days.
A new ban on short selling, or placing bets that a stock will fall, was likely adding to the market's gains. And Friday was a quarterly "quadruple witching" day, which marks the simultaneous expiration of options contracts, an event that often adds to volatility.
Treasury Secretary Henry Paulson will be speaking at 10 a.m. Eastern time about the rescue plan, which is expected to help alleviate the year-old credit crisis by removing soured real estate debt from financial institutions' books.
If a plan is put in place to help the banking industry, it could help alleviate the uncertainty that has been sending the markets into tumult over the past week. Lending has grinded to a virtual standstill in the wake of the bankruptcy of Lehman Brothers Holdings Inc. and the bailout of teetering insurer American International Group Inc.
The Federal Reserve said Friday it will expand its emergency lending and let commercial banks finance purchases of asset-backed paper from money market funds. The Fed will also buy short-term debt obligations issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
And to help calm investors' anxieties, the Treasury Department has decided to use a Depression-era fund to provide guarantees for U.S. money market mutual funds. Money market mutual funds are typically considered safe, but many investors have been fleeing them due to worries about the funds' exposure to the embattled financial industry.
To help limit the freefall in financial stocks, the Securities and Exchange Commission announced it is temporarily banning the short-selling of nearly 800 financial stocks. Short-selling is the common practice of betting against company stocks by borrowing its shares, selling them, and pocketing the difference when they fall.
"The federal government has been petitioned by Wall Street to take evasive action in the money markets, the stock and bond markets, to avoid a complete meltdown of the credit system," said Joe Battipaglia, market strategist at Stifel, Nicolaus & Co. "Once the credit system melts down, the economy falls. We can hand-ring about if this is the proper thing for the government to do, or if Wall Street pulled the panic button too soon, but that's something for the historians to sort out."
In the first minutes of trading, the Dow Jones industrial average rose 412.31, or 3.74 percent, to 11,432.00.
Broader stock indicators also surged. The Standard & Poor's 500 index rose 50.02, or 4.15 percent, to 1,256.53, and the Nasdaq composite index rose 85.82, or 3.90 percent, to 2,284.92.
A new ban on short selling, or placing bets that a stock will fall, was likely adding to the market's gains. And Friday was a quarterly "quadruple witching" day, which marks the simultaneous expiration of options contracts, an event that often adds to volatility.
Treasury Secretary Henry Paulson will be speaking at 10 a.m. Eastern time about the rescue plan, which is expected to help alleviate the year-old credit crisis by removing soured real estate debt from financial institutions' books.
If a plan is put in place to help the banking industry, it could help alleviate the uncertainty that has been sending the markets into tumult over the past week. Lending has grinded to a virtual standstill in the wake of the bankruptcy of Lehman Brothers Holdings Inc. and the bailout of teetering insurer American International Group Inc.
The Federal Reserve said Friday it will expand its emergency lending and let commercial banks finance purchases of asset-backed paper from money market funds. The Fed will also buy short-term debt obligations issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
And to help calm investors' anxieties, the Treasury Department has decided to use a Depression-era fund to provide guarantees for U.S. money market mutual funds. Money market mutual funds are typically considered safe, but many investors have been fleeing them due to worries about the funds' exposure to the embattled financial industry.
To help limit the freefall in financial stocks, the Securities and Exchange Commission announced it is temporarily banning the short-selling of nearly 800 financial stocks. Short-selling is the common practice of betting against company stocks by borrowing its shares, selling them, and pocketing the difference when they fall.
"The federal government has been petitioned by Wall Street to take evasive action in the money markets, the stock and bond markets, to avoid a complete meltdown of the credit system," said Joe Battipaglia, market strategist at Stifel, Nicolaus & Co. "Once the credit system melts down, the economy falls. We can hand-ring about if this is the proper thing for the government to do, or if Wall Street pulled the panic button too soon, but that's something for the historians to sort out."
In the first minutes of trading, the Dow Jones industrial average rose 412.31, or 3.74 percent, to 11,432.00.
Broader stock indicators also surged. The Standard & Poor's 500 index rose 50.02, or 4.15 percent, to 1,256.53, and the Nasdaq composite index rose 85.82, or 3.90 percent, to 2,284.92.
Sensex shuts shop above 14,000 mark, spurts over 700 point
Frenzied buying in battered index pivotals along with short
covering triggered a solid rally in the key benchmark indices
today, 19 September 2008. Markets across the globe rallied on hopes
of a more comprehensive US government approach in taming the global
credit crisis.
Strong US futures after the US market regulator securities &
exchange commission reportedly halted short-selling of financial
stocks in the US, boosted the domestic bourses in late trade.
Realty, banking and IT stocks were at the forefront of the rally.
Index heavyweight Reliance Industries (RIL) surged over 6%. The
market breadth was strong. 29 from the 30-member Sensex pack logged
gains. Satyam Computer Services and ICICI Bank spurted over 10%
each. Turnover on BSE was above Rs 6,000 crore.
The BSE 30-share Sensex jumped 726.72 points or 5.46% to 14,042.32.
The Sensex opened with a huge 448.23-point upward gap at 13,763.83.
At the day's high of 14,097.44 hit in late trade, the Sensex gained
781.84 points. At the day's low of 13,674.96, the Sensex rose
359.36 points in early trade.
The S&P CNX Nifty advanced 207.1 points or 5.13%, to settle at
4245.25. Nifty September 2008 futures were at 4283.10, at a premium
of 37.85 points as compared to spot closing.
The barometer index is down 6224.67 points or 30.78% in the
calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 7164.45 points or 33.78% below its all-time
high of 21,206.77 struck on 10 January 2008.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
Markets across the globe rallied after major central bank's infused
funds in a bid to rescue ailing financial giants. The Bank of Japan
said today it had injected two trillion yen ($19 billion) into
money markets amid continuing concerns over turmoil in financial
markets. The Japanese central bank has made emergency injections
daily for the past four days. The latest brings the total to 10
trillion yen since Tuesday, 16 September 2008. The US Federal
Reserve agreed to inject $180 billion as part of a global total of
$300 billion.
European markets, which opened after Indian markets, also joined
the global rally, boosted by a four-month ban by UK on
short-selling of financial stocks. Key benchmark indices in UK,
Germany and France were up by between 4.33% to 8.29%.
Asian markets advanced today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 4.55% and 9.61%. Battered Chinese stocks
soared 9.46% in response to an unprecedented package of government
measures to support the market.
Back home, the market breadth was strong on BSE with 1873 shares
advancing as compared to 777 that declined. 68 remained unchanged.
The BSE Mid-Cap index rose 2.95% to 5,228.78 and the BSE Small-Cap
index gained 2.31% to 6,215.99.
The total turnover on BSE amounted to Rs 6202 crore as compared to
Rs 7,376.23 crore on Thursday, 18 September 2008. NSE's futures &
options (F&O) segment turnover was Rs 73,792.36 crore, which was
lower than Rs 74,094.75 crore on Thursday, 18 September 2008.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 6.38%
to Rs 2056.25 on 16.60 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. India's fourth largest software services
exporter Satyam Computer Services galloped 10.97% to Rs 371.75 on
13.39 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Infosys (up 6.52% to Rs 1622.90), Wipro (up
5.09% to Rs 417.30), and TCS (up 6.94% to Rs 770.10), edged higher.
Indian IT firms count US financial services firms among their top
clients.
Battered realty stocks made a strong comeback today. India's
largest real estate developer by market capitalisation DLF galloped
7.70% to Rs 426.60 on high volumes of 31.29 lakh shares.
Ansal Infrastructure (up 18.49% to Rs 90.10), Akruti City (up
11.52% at Rs 908.20), Indiabulls Real Estate (up 17.65% to Rs
225.30), Unitech (up 3.15% to Rs 125.90), and Housing Development &
Infrastructure (up 8.08% to Rs 224.05), advanced.
The BSE Realty index surged 7.59% to 4,102.64 and was the top
gainer among the BSE sectoral indices today, after striking a
52-week low of 3,598.36 on Thursday, 18 September 2008.
India's largest private sector bank in terms of net profit ICICI
Bank surged 10.17% to Rs 634.40, after its chief executive officer
K V Kamath said the bank is an extremely healthy institution and
has ample capital. The bank had on Wednesday, 17 September 2008,
denied rumours of top management selling shares following a
sell-off in the counter.
Other banking shares HDFC Bank (up 6.22% to Rs 1298), and State
Bank of India (up 0.30% to Rs 1566), edged higher.
India's top tractor maker by sales Mahindra & Mahindra was the lone
loser from Sensex pack. The stock lost 0.10% to Rs 550.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
Telecom pivotals surged in late trade. India's top cellular
services provider by market capitalisation Bharti Airtel jumped
6.54% to Rs 810.10. In late trade, 12.23 lakh shares, or 0.06% of
company's equity changed hands in a block deal at Rs 798.50 on BSE.
India's second largest cellular services provider by market
capitalisation Reliance Communcations rose 5.63% to Rs 375.50.
Capital goods heavyweights advanced. India's largest power
equipment maker by sales Bharat Heavy Electricals surged 6.57% to
Rs 1715. Larsen & Toubro, the country's largest engineering &
construction company by sales, advanced 4.27% to Rs 2650.
India's largest oil exploration company by market capitalisation
Oil & Natural Gas Corporation soared 7.27% to Rs 1071.80 on reports
the company would invest Rs 19,338 crore in oil and gas hunt during
the current fiscal year, 10% higher than last year.
India's largest private sector aluminium maker by sales Hindalco
Industries rose 0.31% to Rs 112.80. The company's rights issue will
open on Monday, 22 September 2008.
HDFC (up 8.86% to Rs 2320), Tata Power (up 8.69% to Rs 1031), and
Jaiprakash Associates (up 6.08% to Rs 135.15) edged higher from
Sensex pack.
Reliance Capital was the top traded counter on BSE with turnover of
Rs 441 crore followed by Reliance Industries (Rs 336.25 crore),
Bharti Airtel (Rs 266 crore), ICICI Bank (Rs 229.35 crore) and
State Bank of India (Rs 197 crore), in that order.
Jaiprakash Associates topped volumes chart on BSE with volumes of
1.48 crore shares followed by Reliance Natural Resources (1.34
crore shares), IFCI (1.27 crore shares), Sesa Goa (1.13 crore
shares) and Kohinoor Broadcasting (75.66 lakh shares) in that
order. Among side counters, Reliance Capital (up 14.27% to Rs
1284), Engineers India (up 14.31% to Rs 620), and Educomp Solutions
(up 14.65% to Rs 3800), surged.
HCL Technologies spurted 8.28% to Rs 213.25 on reports the company
would go for a large $1-2 billion acquisition in the US or Europe
before 2011.
Patel Engineering jumped 3.02% to Rs 363 after the company bagged
an order worth Rs 695.57 crore from the Andhra Pradesh state
government. The company made this announcement during trading hours
today, 19 September 2008.
Phoenix Mills spurted 2.06% to Rs 146 after 20.45 lakh shares, or
1.41% the company's equity, changed hands in a block deal at Rs
151.50 each on BSE at 10:07 IST.
Videocon Industries surged 6.26% to Rs 230.95 after the company
said its overseas unit VB (Brasil) Petroleo has acquired 100% stake
in EnCana Brasil Petroleo of Brazil for consideration of $165
million. The company made this announcement during trading hours
today, 19 September 2008.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
covering triggered a solid rally in the key benchmark indices
today, 19 September 2008. Markets across the globe rallied on hopes
of a more comprehensive US government approach in taming the global
credit crisis.
Strong US futures after the US market regulator securities &
exchange commission reportedly halted short-selling of financial
stocks in the US, boosted the domestic bourses in late trade.
Realty, banking and IT stocks were at the forefront of the rally.
Index heavyweight Reliance Industries (RIL) surged over 6%. The
market breadth was strong. 29 from the 30-member Sensex pack logged
gains. Satyam Computer Services and ICICI Bank spurted over 10%
each. Turnover on BSE was above Rs 6,000 crore.
The BSE 30-share Sensex jumped 726.72 points or 5.46% to 14,042.32.
The Sensex opened with a huge 448.23-point upward gap at 13,763.83.
At the day's high of 14,097.44 hit in late trade, the Sensex gained
781.84 points. At the day's low of 13,674.96, the Sensex rose
359.36 points in early trade.
The S&P CNX Nifty advanced 207.1 points or 5.13%, to settle at
4245.25. Nifty September 2008 futures were at 4283.10, at a premium
of 37.85 points as compared to spot closing.
The barometer index is down 6224.67 points or 30.78% in the
calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 7164.45 points or 33.78% below its all-time
high of 21,206.77 struck on 10 January 2008.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
Markets across the globe rallied after major central bank's infused
funds in a bid to rescue ailing financial giants. The Bank of Japan
said today it had injected two trillion yen ($19 billion) into
money markets amid continuing concerns over turmoil in financial
markets. The Japanese central bank has made emergency injections
daily for the past four days. The latest brings the total to 10
trillion yen since Tuesday, 16 September 2008. The US Federal
Reserve agreed to inject $180 billion as part of a global total of
$300 billion.
European markets, which opened after Indian markets, also joined
the global rally, boosted by a four-month ban by UK on
short-selling of financial stocks. Key benchmark indices in UK,
Germany and France were up by between 4.33% to 8.29%.
Asian markets advanced today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 4.55% and 9.61%. Battered Chinese stocks
soared 9.46% in response to an unprecedented package of government
measures to support the market.
Back home, the market breadth was strong on BSE with 1873 shares
advancing as compared to 777 that declined. 68 remained unchanged.
The BSE Mid-Cap index rose 2.95% to 5,228.78 and the BSE Small-Cap
index gained 2.31% to 6,215.99.
The total turnover on BSE amounted to Rs 6202 crore as compared to
Rs 7,376.23 crore on Thursday, 18 September 2008. NSE's futures &
options (F&O) segment turnover was Rs 73,792.36 crore, which was
lower than Rs 74,094.75 crore on Thursday, 18 September 2008.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 6.38%
to Rs 2056.25 on 16.60 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. India's fourth largest software services
exporter Satyam Computer Services galloped 10.97% to Rs 371.75 on
13.39 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Infosys (up 6.52% to Rs 1622.90), Wipro (up
5.09% to Rs 417.30), and TCS (up 6.94% to Rs 770.10), edged higher.
Indian IT firms count US financial services firms among their top
clients.
Battered realty stocks made a strong comeback today. India's
largest real estate developer by market capitalisation DLF galloped
7.70% to Rs 426.60 on high volumes of 31.29 lakh shares.
Ansal Infrastructure (up 18.49% to Rs 90.10), Akruti City (up
11.52% at Rs 908.20), Indiabulls Real Estate (up 17.65% to Rs
225.30), Unitech (up 3.15% to Rs 125.90), and Housing Development &
Infrastructure (up 8.08% to Rs 224.05), advanced.
The BSE Realty index surged 7.59% to 4,102.64 and was the top
gainer among the BSE sectoral indices today, after striking a
52-week low of 3,598.36 on Thursday, 18 September 2008.
India's largest private sector bank in terms of net profit ICICI
Bank surged 10.17% to Rs 634.40, after its chief executive officer
K V Kamath said the bank is an extremely healthy institution and
has ample capital. The bank had on Wednesday, 17 September 2008,
denied rumours of top management selling shares following a
sell-off in the counter.
Other banking shares HDFC Bank (up 6.22% to Rs 1298), and State
Bank of India (up 0.30% to Rs 1566), edged higher.
India's top tractor maker by sales Mahindra & Mahindra was the lone
loser from Sensex pack. The stock lost 0.10% to Rs 550.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
Telecom pivotals surged in late trade. India's top cellular
services provider by market capitalisation Bharti Airtel jumped
6.54% to Rs 810.10. In late trade, 12.23 lakh shares, or 0.06% of
company's equity changed hands in a block deal at Rs 798.50 on BSE.
India's second largest cellular services provider by market
capitalisation Reliance Communcations rose 5.63% to Rs 375.50.
Capital goods heavyweights advanced. India's largest power
equipment maker by sales Bharat Heavy Electricals surged 6.57% to
Rs 1715. Larsen & Toubro, the country's largest engineering &
construction company by sales, advanced 4.27% to Rs 2650.
India's largest oil exploration company by market capitalisation
Oil & Natural Gas Corporation soared 7.27% to Rs 1071.80 on reports
the company would invest Rs 19,338 crore in oil and gas hunt during
the current fiscal year, 10% higher than last year.
India's largest private sector aluminium maker by sales Hindalco
Industries rose 0.31% to Rs 112.80. The company's rights issue will
open on Monday, 22 September 2008.
HDFC (up 8.86% to Rs 2320), Tata Power (up 8.69% to Rs 1031), and
Jaiprakash Associates (up 6.08% to Rs 135.15) edged higher from
Sensex pack.
Reliance Capital was the top traded counter on BSE with turnover of
Rs 441 crore followed by Reliance Industries (Rs 336.25 crore),
Bharti Airtel (Rs 266 crore), ICICI Bank (Rs 229.35 crore) and
State Bank of India (Rs 197 crore), in that order.
Jaiprakash Associates topped volumes chart on BSE with volumes of
1.48 crore shares followed by Reliance Natural Resources (1.34
crore shares), IFCI (1.27 crore shares), Sesa Goa (1.13 crore
shares) and Kohinoor Broadcasting (75.66 lakh shares) in that
order. Among side counters, Reliance Capital (up 14.27% to Rs
1284), Engineers India (up 14.31% to Rs 620), and Educomp Solutions
(up 14.65% to Rs 3800), surged.
HCL Technologies spurted 8.28% to Rs 213.25 on reports the company
would go for a large $1-2 billion acquisition in the US or Europe
before 2011.
Patel Engineering jumped 3.02% to Rs 363 after the company bagged
an order worth Rs 695.57 crore from the Andhra Pradesh state
government. The company made this announcement during trading hours
today, 19 September 2008.
Phoenix Mills spurted 2.06% to Rs 146 after 20.45 lakh shares, or
1.41% the company's equity, changed hands in a block deal at Rs
151.50 each on BSE at 10:07 IST.
Videocon Industries surged 6.26% to Rs 230.95 after the company
said its overseas unit VB (Brasil) Petroleo has acquired 100% stake
in EnCana Brasil Petroleo of Brazil for consideration of $165
million. The company made this announcement during trading hours
today, 19 September 2008.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Post Market 19 Sep 2008 Sensex gallops above 14,000 mark in global rally
Frenzied buying in battered index pivotals along with short
covering triggered a solid rally in the key benchmark indices
today, 19 September 2008. The BSE 30-share Sensex was up 764.28
points, as per provisional closing. Markets across the globe
rallied on hopes of a more comprehensive US government approach in
taming the global credit crisis.
Strong US futures markets further boosted the domestic bourses in
late trade. Realty, banking and IT stocks were at the forefront of
the rally. Index heavyweight Reliance Industries (RIL) surged over
6%. The market breadth was strong. 29 from the 30-member Sensex
pack logged gains. Satyam Computer Services and ICICI Bank spurted
over 10% each. Turnover on BSE was above Rs 6,000 crore.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
European markets, which opened after Indian markets, also joined
the global rally, boosted by a four-month ban by UK on
short-selling of financial stocks. Key benchmark indices in UK,
Germany and France were up by between 4.33% to 8.29%.
Asian markets advanced today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 4.55% and 9.61%. Battered Chinese stocks
soared 9.46% in response to an unprecedented package of government
measures to support the market.
The BSE 30-share Sensex was up 764.28 points or 5.75% to 14,079.88,
as per provisional closing. The Sensex opened with a huge
448.23-point upward gap at 13,763.83. At the day's high of
14,097.44 hit in late trade, the Sensex gained 781.84 points. At
the day's low of 13,674.96, the Sensex rose 359.36 points in early
trade.
The S&P CNX Nifty advanced 213.45 points or 5.29% to 4,251.60 as
per provisional closing
The market breadth was strong on BSE with 1873 shares advancing as
compared to 777 that declined. 68 remained unchanged.
The total turnover on BSE amounted to Rs 6202 crore as compared to
Rs 4335 crore by 14:30 IST.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 6.38%
to Rs 2056.25 on 16.60 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. India's fourth largest software services
exporter Satyam Computer Services galloped 10.97% to Rs 371.75 on
13.39 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Infosys (up 6.52% to Rs 1622.90), Wipro (up
5.09% to Rs 417.30), and TCS (up 6.94% to Rs 770.10), edged higher.
Indian IT firms count US financial services firms among their top
clients.
Battered realty stocks made a strong comeback today. India's
largest real estate developer by market capitalisation DLF galloped
7.70% to Rs 426.60 on high volumes of 31.29 lakh shares.
India's largest private sector bank in terms of net profit ICICI
Bank surged 10.17% to Rs 634.40, after its chief executive officer
K V Kamath said the bank is an extremely healthy institution and
has ample capital. The bank had on Wednesday, 17 September 2008,
denied rumours of top management selling shares following a
sell-off in the counter.
Other banking shares HDFC Bank (up 6.22% to Rs 1298), and State
Bank of India (up 0.30% to Rs 1566), edged higher.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
Telecom pivotals surged in late trade. India's top cellular
services provider by market capitalisation Bharti Airtel jumped
6.54% to Rs 810.10. In late trade, 12.23 lakh shares, or 0.06% of
company's equity changed hands in a block deal at Rs 798.50 on BSE.
India's second largest cellular services provider by market
capitalisation Reliance Communcations rose 5.63% to Rs 375.50.
Capital goods heavyweights advanced. India's largest power
equipment maker by sales Bharat Heavy Electricals surged 6.57% to
Rs 1715. Larsen & Toubro, the country's largest engineering &
construction company by sales, advanced 4.27% to Rs 2650.
India's largest oil exploration company by market capitalisation
Oil & Natural Gas Corporation soared 7.27% to Rs 1071.80 on reports
the company would invest Rs 19,338 crore in oil and gas hunt during
the current fiscal year, 10% higher than last year.
HDFC (up 8.86% to Rs 2320), Tata Power (up 8.69% to Rs 1031), and
Jaiprakash Associates (up 6.08% to Rs 135.15) edged higher from
Sensex pack.
Among side counters, Ansal Infrastructure (up 18.49% to Rs 90.10),
Indiabulls Real Estate (up 17.65% to Rs 225.30), Reliance Capital
(up 14.27% to Rs 1284), Engineers India (up 14.31% to Rs 620), and
Educomp Solutions (up 14.65% to Rs 3800), surged.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Short covering in index heavyweights towards the fag end of the
session had helped key benchmark indices post small gains on
Thursday, 18 September 2008 after a dismal start. The BSE 30-share
Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P
CNX Nifty rose 29.90 points or 0.75% at 4038.15.
covering triggered a solid rally in the key benchmark indices
today, 19 September 2008. The BSE 30-share Sensex was up 764.28
points, as per provisional closing. Markets across the globe
rallied on hopes of a more comprehensive US government approach in
taming the global credit crisis.
Strong US futures markets further boosted the domestic bourses in
late trade. Realty, banking and IT stocks were at the forefront of
the rally. Index heavyweight Reliance Industries (RIL) surged over
6%. The market breadth was strong. 29 from the 30-member Sensex
pack logged gains. Satyam Computer Services and ICICI Bank spurted
over 10% each. Turnover on BSE was above Rs 6,000 crore.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
European markets, which opened after Indian markets, also joined
the global rally, boosted by a four-month ban by UK on
short-selling of financial stocks. Key benchmark indices in UK,
Germany and France were up by between 4.33% to 8.29%.
Asian markets advanced today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 4.55% and 9.61%. Battered Chinese stocks
soared 9.46% in response to an unprecedented package of government
measures to support the market.
The BSE 30-share Sensex was up 764.28 points or 5.75% to 14,079.88,
as per provisional closing. The Sensex opened with a huge
448.23-point upward gap at 13,763.83. At the day's high of
14,097.44 hit in late trade, the Sensex gained 781.84 points. At
the day's low of 13,674.96, the Sensex rose 359.36 points in early
trade.
The S&P CNX Nifty advanced 213.45 points or 5.29% to 4,251.60 as
per provisional closing
The market breadth was strong on BSE with 1873 shares advancing as
compared to 777 that declined. 68 remained unchanged.
The total turnover on BSE amounted to Rs 6202 crore as compared to
Rs 4335 crore by 14:30 IST.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 6.38%
to Rs 2056.25 on 16.60 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. India's fourth largest software services
exporter Satyam Computer Services galloped 10.97% to Rs 371.75 on
13.39 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Infosys (up 6.52% to Rs 1622.90), Wipro (up
5.09% to Rs 417.30), and TCS (up 6.94% to Rs 770.10), edged higher.
Indian IT firms count US financial services firms among their top
clients.
Battered realty stocks made a strong comeback today. India's
largest real estate developer by market capitalisation DLF galloped
7.70% to Rs 426.60 on high volumes of 31.29 lakh shares.
India's largest private sector bank in terms of net profit ICICI
Bank surged 10.17% to Rs 634.40, after its chief executive officer
K V Kamath said the bank is an extremely healthy institution and
has ample capital. The bank had on Wednesday, 17 September 2008,
denied rumours of top management selling shares following a
sell-off in the counter.
Other banking shares HDFC Bank (up 6.22% to Rs 1298), and State
Bank of India (up 0.30% to Rs 1566), edged higher.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
Telecom pivotals surged in late trade. India's top cellular
services provider by market capitalisation Bharti Airtel jumped
6.54% to Rs 810.10. In late trade, 12.23 lakh shares, or 0.06% of
company's equity changed hands in a block deal at Rs 798.50 on BSE.
India's second largest cellular services provider by market
capitalisation Reliance Communcations rose 5.63% to Rs 375.50.
Capital goods heavyweights advanced. India's largest power
equipment maker by sales Bharat Heavy Electricals surged 6.57% to
Rs 1715. Larsen & Toubro, the country's largest engineering &
construction company by sales, advanced 4.27% to Rs 2650.
India's largest oil exploration company by market capitalisation
Oil & Natural Gas Corporation soared 7.27% to Rs 1071.80 on reports
the company would invest Rs 19,338 crore in oil and gas hunt during
the current fiscal year, 10% higher than last year.
HDFC (up 8.86% to Rs 2320), Tata Power (up 8.69% to Rs 1031), and
Jaiprakash Associates (up 6.08% to Rs 135.15) edged higher from
Sensex pack.
Among side counters, Ansal Infrastructure (up 18.49% to Rs 90.10),
Indiabulls Real Estate (up 17.65% to Rs 225.30), Reliance Capital
(up 14.27% to Rs 1284), Engineers India (up 14.31% to Rs 620), and
Educomp Solutions (up 14.65% to Rs 3800), surged.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Short covering in index heavyweights towards the fag end of the
session had helped key benchmark indices post small gains on
Thursday, 18 September 2008 after a dismal start. The BSE 30-share
Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P
CNX Nifty rose 29.90 points or 0.75% at 4038.15.
RIL breaches Rs 2000 level
Key benchmark indices surged to day's high in early afternoon trade
led by Index heavyweight Reliance Industries (RIL) which moved past
Rs 2,000 level. The BSE 30-share Sensex was up 556.66 points.
Realty shares made a comeback after recent slide. The market
breadth was strong. All the 30-members from Sensex pack were in
green. Markets across the globe rallied on hopes of a more
comprehensive US government approach in taming the global credit
crisis.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
At 12:25 IST, the BSE 30-share Sensex was up 556.66 points or 4.13%
to 13,865.95. The Sensex opened with a huge 448.23-point upward gap
at 13,763.83. At the day's high of 13,877.85 hit in early afternoon
trade, the Sensex gained 562.25 points. At the day's low of
13,674.96, the Sensex rose 359.36 points in early trade.
The S&P CNX Nifty advanced 155.60 points or 3.85% to 4,193.75
Asian markets rallied today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 3.76 and 9.46%.
Back home, the market breadth was strong on BSE with 1721 shares
advancing as compared to 635 that declined. 65 remained unchanged.
The BSE Mid-Cap index rose 2.49% to 5,205.46 and BSE Small-Cap
index gained 2.06% to 6,200.63.
The total turnover on BSE amounted to Rs 2353 crore by 12:30 IST as
compared to Rs 1535 crore by 11:30 IST.
All the 30-members from Sensex pack were in green.
Recently battered realty stocks made a strong comeback with the BSE
Realty index surging 5.30% to 4,015.35. It was the top gainer among
the sectoral indices on BSE. The BSE Realty index had struck a
52-week low of 3,598.36 on Thursday, 18 September 2008.
DLF (up 5.34% to Rs 417.25), Unitech (up 3.36% to Rs 126.15), Anant
Raj Industries (up 2.20% to Rs 110), Indiabulls Real Estate (up
12.01% to Rs 214.50), and Housing Development & Infrastructure (up
5.35% to Rs 218.40), advanced.
Banking and financial shares vaulted despite latest data showing
rise in inflation. India's largest dedicated housing finance
company by total revenue Housing Development Finance Corporation
surged 7.84% to Rs 2298.25 on 2.08 shares. It was the top gainer
from Sensex pack.
India's largest private sector bank in terms of net profit ICICI
Bank rose 4.81% to Rs 603.55. The bank on Wednesday, 17 September
2008 denied rumours of top management selling shares over the last
few days.
Other banking shares HDFC Bank (up 5.44% to Rs 1288.50), and State
Bank of India (up 1.45% to Rs 1584.05), edged higher.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. Infosys (up 5.46% to Rs 1606.70), Wipro (up
4.76% to Rs 416), Satyam Computer Services (up 6.57% to Rs 357),
and TCS (up 4.92% to Rs 755.50), edged higher. Indian IT firms
count the US financial services firms among their top clients
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 3.75%
to Rs 2006.55 on 6.70 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
Reliance Infrastructure (up 4.43% to Rs 887.25), Bharti Airtel (up
5.64% to Rs 803.20), and Reliance Communications (up 4.44% to Rs
371.10), edged higher from Sensex pack.
Phoenix Mills spurted 8.70% to Rs 155.50 after 20.45 lakh shares,
or 1.41% the company's equity, changed hands in a block deal at Rs
151.50 each on BSE at 10:07 IST.
Natco Pharma gained 2.36% to Rs 71.45 after the company said it has
launched its nano technology drug Albupax, which is used for the
treatment of breast cancer. The company made this announcement
during trading hours today, 19 September 2008.
Videocon Industries surged 4.90% to Rs 228 after the company said
its overseas unit VB (Brasil) Petroleo has acquired 100% stake in
EnCana Brasil Petroleo of Brazil for consideration of $165 million.
The company made this announcement during trading hours today, 19
September 2008.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Short covering in index heavyweights towards the fag end of the
session had helped key benchmark indices post small gains on
Thursday, 18 September 2008 after a dismal start. The BSE 30-share
Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P
CNX Nifty rose 29.90 points or 0.75% at 4038.15.
led by Index heavyweight Reliance Industries (RIL) which moved past
Rs 2,000 level. The BSE 30-share Sensex was up 556.66 points.
Realty shares made a comeback after recent slide. The market
breadth was strong. All the 30-members from Sensex pack were in
green. Markets across the globe rallied on hopes of a more
comprehensive US government approach in taming the global credit
crisis.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
At 12:25 IST, the BSE 30-share Sensex was up 556.66 points or 4.13%
to 13,865.95. The Sensex opened with a huge 448.23-point upward gap
at 13,763.83. At the day's high of 13,877.85 hit in early afternoon
trade, the Sensex gained 562.25 points. At the day's low of
13,674.96, the Sensex rose 359.36 points in early trade.
The S&P CNX Nifty advanced 155.60 points or 3.85% to 4,193.75
Asian markets rallied today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 3.76 and 9.46%.
Back home, the market breadth was strong on BSE with 1721 shares
advancing as compared to 635 that declined. 65 remained unchanged.
The BSE Mid-Cap index rose 2.49% to 5,205.46 and BSE Small-Cap
index gained 2.06% to 6,200.63.
The total turnover on BSE amounted to Rs 2353 crore by 12:30 IST as
compared to Rs 1535 crore by 11:30 IST.
All the 30-members from Sensex pack were in green.
Recently battered realty stocks made a strong comeback with the BSE
Realty index surging 5.30% to 4,015.35. It was the top gainer among
the sectoral indices on BSE. The BSE Realty index had struck a
52-week low of 3,598.36 on Thursday, 18 September 2008.
DLF (up 5.34% to Rs 417.25), Unitech (up 3.36% to Rs 126.15), Anant
Raj Industries (up 2.20% to Rs 110), Indiabulls Real Estate (up
12.01% to Rs 214.50), and Housing Development & Infrastructure (up
5.35% to Rs 218.40), advanced.
Banking and financial shares vaulted despite latest data showing
rise in inflation. India's largest dedicated housing finance
company by total revenue Housing Development Finance Corporation
surged 7.84% to Rs 2298.25 on 2.08 shares. It was the top gainer
from Sensex pack.
India's largest private sector bank in terms of net profit ICICI
Bank rose 4.81% to Rs 603.55. The bank on Wednesday, 17 September
2008 denied rumours of top management selling shares over the last
few days.
Other banking shares HDFC Bank (up 5.44% to Rs 1288.50), and State
Bank of India (up 1.45% to Rs 1584.05), edged higher.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. Infosys (up 5.46% to Rs 1606.70), Wipro (up
4.76% to Rs 416), Satyam Computer Services (up 6.57% to Rs 357),
and TCS (up 4.92% to Rs 755.50), edged higher. Indian IT firms
count the US financial services firms among their top clients
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 3.75%
to Rs 2006.55 on 6.70 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
Reliance Infrastructure (up 4.43% to Rs 887.25), Bharti Airtel (up
5.64% to Rs 803.20), and Reliance Communications (up 4.44% to Rs
371.10), edged higher from Sensex pack.
Phoenix Mills spurted 8.70% to Rs 155.50 after 20.45 lakh shares,
or 1.41% the company's equity, changed hands in a block deal at Rs
151.50 each on BSE at 10:07 IST.
Natco Pharma gained 2.36% to Rs 71.45 after the company said it has
launched its nano technology drug Albupax, which is used for the
treatment of breast cancer. The company made this announcement
during trading hours today, 19 September 2008.
Videocon Industries surged 4.90% to Rs 228 after the company said
its overseas unit VB (Brasil) Petroleo has acquired 100% stake in
EnCana Brasil Petroleo of Brazil for consideration of $165 million.
The company made this announcement during trading hours today, 19
September 2008.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Short covering in index heavyweights towards the fag end of the
session had helped key benchmark indices post small gains on
Thursday, 18 September 2008 after a dismal start. The BSE 30-share
Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P
CNX Nifty rose 29.90 points or 0.75% at 4038.15.
Pre Market Report 19/09/2008
A rally across the globe on hopes for a more comprehensive US government approach in taming the global credit crisis is likely to propel key benchmark indices today, 19 September 2008. However latest data showing rise in inflation may dampen the sentiment.
The wholesale price index rose 12.14% in the 12 months to 6 September 2008, marginally above the previous week's rise of 12.10%, data released after market hours on Thursday, 18 September 2008 showed.
Light, sweet crude for October 2008 delivery added 72 cents to settle at $97.88 a barrel on Thursday, 18 September 2008 on the New York Mercantile Exchange.
Meanwhile, speaking on the financial crisis, the US President George W Bush defended the government's actions over the last few days and said that the market may take a while to normalize. George W Bush added that in recent weeks the Federal Government has taken extraordinary measures to address the challenges confronting financial markets.
Asian markets rallied today, 19 September 2008. China's Shanghai Composite gained 9.40% or 178.14 points at 2,073.97, Hong Kong's Hang Seng was up 6.13% or 1081.39 points at 18,713.85, Japan's Nikkei rose 3.30% or 378.90 points at 11,868.20, Singapore's Straits Times advanced 4.01% or 97.10 points at 2,516.31, South Korea's Seoul Composite surged 4.60% or 63.99 points at 1,456.41, and Taiwan's Taiwan Weighted added 5.40% or 304.58 points at 5,946.53.
US markets recorded biggest one-day percentage gain since October 2002 after the US Treasury Secretary Henry Paulson proposed to congressional lawmakers that would create an entity to deal with the billions of dollars of bad debt still choking the financial system. The Dow Jones industrial average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500 index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq Composite index surged 100.25 points, or 4.78%, to 2,199.10.
Back home, short covering in index heavyweights towards the fag end of the session helped key benchmark indices post small gains on Thursday, 18 September 2008 after a dismal start. The BSE 30-share Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P CNX Nifty rose 29.90 points or 0.75% at 4038.15.
The BSE Sensex had lost 1682.07 points or 11.25% in seven consecutive trading sessions from a recent high of 14,944.97 on 8 September 2008 to 13,262.90 on Wednesday, 17 September 2008.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 1201.64 crore while mutual funds bought shares worth Rs 1192.20 crore on Thursday, 18 September 2008, according to provisional data on NSE.
FIIs were net buyers of Rs 995.58 crore in the futures & options segment on Thursday, 18 September 2008. They were net buyers of index futures to the tune of Rs 511.58 crore and bought index options worth Rs 461.71 crore. They were net buyers of stock futures to the tune of Rs 44.20 crore and sold stock options worth Rs 21.91 crore.
The wholesale price index rose 12.14% in the 12 months to 6 September 2008, marginally above the previous week's rise of 12.10%, data released after market hours on Thursday, 18 September 2008 showed.
Light, sweet crude for October 2008 delivery added 72 cents to settle at $97.88 a barrel on Thursday, 18 September 2008 on the New York Mercantile Exchange.
Meanwhile, speaking on the financial crisis, the US President George W Bush defended the government's actions over the last few days and said that the market may take a while to normalize. George W Bush added that in recent weeks the Federal Government has taken extraordinary measures to address the challenges confronting financial markets.
Asian markets rallied today, 19 September 2008. China's Shanghai Composite gained 9.40% or 178.14 points at 2,073.97, Hong Kong's Hang Seng was up 6.13% or 1081.39 points at 18,713.85, Japan's Nikkei rose 3.30% or 378.90 points at 11,868.20, Singapore's Straits Times advanced 4.01% or 97.10 points at 2,516.31, South Korea's Seoul Composite surged 4.60% or 63.99 points at 1,456.41, and Taiwan's Taiwan Weighted added 5.40% or 304.58 points at 5,946.53.
US markets recorded biggest one-day percentage gain since October 2002 after the US Treasury Secretary Henry Paulson proposed to congressional lawmakers that would create an entity to deal with the billions of dollars of bad debt still choking the financial system. The Dow Jones industrial average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500 index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq Composite index surged 100.25 points, or 4.78%, to 2,199.10.
Back home, short covering in index heavyweights towards the fag end of the session helped key benchmark indices post small gains on Thursday, 18 September 2008 after a dismal start. The BSE 30-share Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P CNX Nifty rose 29.90 points or 0.75% at 4038.15.
The BSE Sensex had lost 1682.07 points or 11.25% in seven consecutive trading sessions from a recent high of 14,944.97 on 8 September 2008 to 13,262.90 on Wednesday, 17 September 2008.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 1201.64 crore while mutual funds bought shares worth Rs 1192.20 crore on Thursday, 18 September 2008, according to provisional data on NSE.
FIIs were net buyers of Rs 995.58 crore in the futures & options segment on Thursday, 18 September 2008. They were net buyers of index futures to the tune of Rs 511.58 crore and bought index options worth Rs 461.71 crore. They were net buyers of stock futures to the tune of Rs 44.20 crore and sold stock options worth Rs 21.91 crore.
Thursday, September 18, 2008
Post-Market Report September 18, 2008
An across-the-board rally saw the market bounce back sharply from its early losses of more than 700 points to end 52 points higher.
Today the market saw a smart rally despite weakness in global markets. Despite slipping over 700 points in early trades, the Sensex witnessed a relief rally led by across-the-spectrum buying.
The index recovered from its lows and closed posstive, as value buying emerged at lower levels. The Sensex received major support from banking, oil & gas and power stocks. The market gathered steam towards the close and the Sensex crossed the mark of 13,300 and touched the day's high of 13,347 before closing at 13,263, up 53 points. The Nifty too bounced back sharply and advanced 30 points to close at 4,038.
Movers & Shakers
Pratibha Industries lost despite receiving orders worth Rs156 crore from Delhi Jal Board.
The breadth of the market was extremely negative, as of the 2,690 stocks traded on the BSE, where only 676 stocks advanced, 1,944 stocks declines. 70 stocks ended unchanged. Most of the sectoral indices closed with significant gains. The BSE Bankex was the major gainer and soared 2.68% followed by the BSE Oil & Gas index (up 2.36%) and the BSE CG index (up 0.95%). However, the BSE Realty and BSE CD index slipped over 4% each. The BSE IT index, BSE Teck index, BSE HC index and the BSE Metal index closed with marginal losses.
Attracting strong buying support, Sterlite Industries surged by 3.43% at Rs454.50, HDFC Bank shot up by 3.17% at Rs1,222, Reliance Industries jumped by 3.16% at Rs1,932.85, NTPC advanced by 3.05% at Rs174, ICICI Bank scaled up 2.78% at Rs575.85, Maruti Suzuki India zoomed 2.70% at Rs718.45, Mahindra & Mahindra added 2.46% at Rs550.55, Reliance Infrastructure vaulted by 2.43% at Rs849.60, ONGC firmed up by 2.14% at Rs999.15 and ACC climbed 2.02% at Rs601.35. Among the laggards, Ranbaxy Laboratories slipped 10.06% at Rs340.95, Jaiprakash Associates shed 6.73% at Rs127.40, Satyam Computer Services declined by 4.16% at Rs335, while Infosys Technologies, Tata Steel, DLF, Tata Power and HDFC fell 1-4% each.
Banking stocks witnessed sustained buying support. Indian Overseas Bank soared 7.49% at Rs110.45, Bank of Baroda added 5.80% at Rs327.35, Kotak Bank scaled up by 4.72% at Rs579.45 and Punjab National Bank gained 4.38% at Rs517.
Over 1.97 crore shares of Reliance Natural Resources changed hands on the BSE followed by IFCI (1.34 crore shares), S Kumars (1.33 crore shares), KS Oils (1.20 crore shares) and Jaiprakash Associates (1.10 crore shares).
Today the market saw a smart rally despite weakness in global markets. Despite slipping over 700 points in early trades, the Sensex witnessed a relief rally led by across-the-spectrum buying.
The index recovered from its lows and closed posstive, as value buying emerged at lower levels. The Sensex received major support from banking, oil & gas and power stocks. The market gathered steam towards the close and the Sensex crossed the mark of 13,300 and touched the day's high of 13,347 before closing at 13,263, up 53 points. The Nifty too bounced back sharply and advanced 30 points to close at 4,038.
Movers & Shakers
Pratibha Industries lost despite receiving orders worth Rs156 crore from Delhi Jal Board.
The breadth of the market was extremely negative, as of the 2,690 stocks traded on the BSE, where only 676 stocks advanced, 1,944 stocks declines. 70 stocks ended unchanged. Most of the sectoral indices closed with significant gains. The BSE Bankex was the major gainer and soared 2.68% followed by the BSE Oil & Gas index (up 2.36%) and the BSE CG index (up 0.95%). However, the BSE Realty and BSE CD index slipped over 4% each. The BSE IT index, BSE Teck index, BSE HC index and the BSE Metal index closed with marginal losses.
Attracting strong buying support, Sterlite Industries surged by 3.43% at Rs454.50, HDFC Bank shot up by 3.17% at Rs1,222, Reliance Industries jumped by 3.16% at Rs1,932.85, NTPC advanced by 3.05% at Rs174, ICICI Bank scaled up 2.78% at Rs575.85, Maruti Suzuki India zoomed 2.70% at Rs718.45, Mahindra & Mahindra added 2.46% at Rs550.55, Reliance Infrastructure vaulted by 2.43% at Rs849.60, ONGC firmed up by 2.14% at Rs999.15 and ACC climbed 2.02% at Rs601.35. Among the laggards, Ranbaxy Laboratories slipped 10.06% at Rs340.95, Jaiprakash Associates shed 6.73% at Rs127.40, Satyam Computer Services declined by 4.16% at Rs335, while Infosys Technologies, Tata Steel, DLF, Tata Power and HDFC fell 1-4% each.
Banking stocks witnessed sustained buying support. Indian Overseas Bank soared 7.49% at Rs110.45, Bank of Baroda added 5.80% at Rs327.35, Kotak Bank scaled up by 4.72% at Rs579.45 and Punjab National Bank gained 4.38% at Rs517.
Over 1.97 crore shares of Reliance Natural Resources changed hands on the BSE followed by IFCI (1.34 crore shares), S Kumars (1.33 crore shares), KS Oils (1.20 crore shares) and Jaiprakash Associates (1.10 crore shares).
US Market still in negetive @ 10PM IST
Dow 10,596.39 -13.27 -0.13%
Nasdaq 2,088.76 -10.09 -0.48%
S&P 500 1,150.24 -6.15 -0.53%
Nasdaq 2,088.76 -10.09 -0.48%
S&P 500 1,150.24 -6.15 -0.53%
Financial strains ease but Street remains cautious
NEW YORK (AP) -- Financial markets appeared less strained Thursday, but investors were still nervous, seeking safe investments like gold and Treasury bills and showing some reluctance to return to stocks.
The modest moves in stocks were a welcome sign, though the advances the Dow Jones industrial average showed at times did little to offset the 800-point decline the blue chips had logged over the first three sessions this week.
Investors appeared somewhat relieved after the Federal Reserve and other major central banks around the world on Thursday acted in concert to inject as much as $180 billion into global money markets, an attempt to keep the credit crisis from worsening. The Fed added another $55 billion in overnight loans Thursday.
Market participants still appear to be treading carefully to determine how to proceed in what is looking to be the most troubling period for the world's financial system in most investors' memory.
Grinding gears in the world's credit markets have driven up the cost of borrowing for businesses, while investors are also contending with fears that more big-name financial companies could falter. The fear in the markets had led to speculation about the future of such major players as thrift bank Washington Mutual Inc. and investment bank Morgan Stanley. Media reports have been saying that Wells Fargo & Co. and Citigroup Inc. are interested in a possible takeover of Washington Mutual; and a person familiar with the negotiations said Morgan Stanley and Wachovia Corp. are in talks about a possible combination. He spoke on condition of anonmyity because the talks are ongoing.
"We are in uncharted territory," said Linda Duessel, the equity market strategist at Federated Investors. "The seriousness and the size of this fallout has been underestimated from the beginning. It's most disconcerting what's going on in the credit market."
In late morning trading, the Dow Jones industrial average rose 21.01, or 0.20 percent, to 10,630.67.
Broader stock indicators were mixed. The Standard & Poor's 500 index rose 1.03, or 0.09 percent, to 1,155.36, and the Nasdaq composite index slipped 5.01, or 0.24 percent, to 2,093.84.
Monday's 504-point loss in the Dow was its biggest drop since the drop following the September 2001 terror attacks. The blue-chip index is now about 24 percent below its Oct. 9, 2007, record close of 14,164.53.
On Wednesday, the 3-month Treasury bill -- considered one of the safest short-duration assets -- saw demand surge so high that its yield briefly dipped into negative territory for the first time since 1940. Investors are so focused on parking their money in safe assets that they're willing to take very little return on such investments.
The prices for short-duration Treasurys fell from Wednesday's levels. But the yield on the 3-month T-bill was still extremely low at 0.19 percent -- up from 0.2 percent late Wednesday, but well below its yield of 1.60 percent just a week ago.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.44 percent in early Thursday trading from 3.42 percent late Wednesday.
Gold, another safe haven, rose further on Thursday, after posting their largest one-day price jump ever on Wednesday.
Oil is not considered as safe as gold but it, too, has been drawing investors who deem it safer than stocks. Light, sweet crude on the New York Mercantile Exchange rose 55 cents to $97.71 a barrel, after jumping more than $6 a barrel Wednesday.
The dollar fell against most other major currencies.
In economic data, the Labor Department reported that initial claims for unemployment benefits rose by 10,000 last week to 455,000, due primarily to Louisiana's job losses from Hurricane Gustav.
The Philadelphia Fed said its regional manufacturing report improved to a 3.8 in September from a negative 12.7 in August. It marks the first positive reading since November.
In earnings news, FedEx Inc. posted a 22 percent decline in quarterly earnings, as the package delivery company cut costs to offset slowing global growth. The fiscal first-quarter results came in as expected. The stock fell $1.19 to $86.88.
Overseas, Japan's Nikkei stock average dropped 2.22 percent to its lowest closing level in over three years. Hong Kong's Hang Seng index lost 0.03 percent.
In afternoon trading, Britain's FTSE 100 rose 0.81 percent, Germany's DAX index rose 1.13 percent, and France's CAC-40 fell 0.64 percent.
The modest moves in stocks were a welcome sign, though the advances the Dow Jones industrial average showed at times did little to offset the 800-point decline the blue chips had logged over the first three sessions this week.
Investors appeared somewhat relieved after the Federal Reserve and other major central banks around the world on Thursday acted in concert to inject as much as $180 billion into global money markets, an attempt to keep the credit crisis from worsening. The Fed added another $55 billion in overnight loans Thursday.
Market participants still appear to be treading carefully to determine how to proceed in what is looking to be the most troubling period for the world's financial system in most investors' memory.
Grinding gears in the world's credit markets have driven up the cost of borrowing for businesses, while investors are also contending with fears that more big-name financial companies could falter. The fear in the markets had led to speculation about the future of such major players as thrift bank Washington Mutual Inc. and investment bank Morgan Stanley. Media reports have been saying that Wells Fargo & Co. and Citigroup Inc. are interested in a possible takeover of Washington Mutual; and a person familiar with the negotiations said Morgan Stanley and Wachovia Corp. are in talks about a possible combination. He spoke on condition of anonmyity because the talks are ongoing.
"We are in uncharted territory," said Linda Duessel, the equity market strategist at Federated Investors. "The seriousness and the size of this fallout has been underestimated from the beginning. It's most disconcerting what's going on in the credit market."
In late morning trading, the Dow Jones industrial average rose 21.01, or 0.20 percent, to 10,630.67.
Broader stock indicators were mixed. The Standard & Poor's 500 index rose 1.03, or 0.09 percent, to 1,155.36, and the Nasdaq composite index slipped 5.01, or 0.24 percent, to 2,093.84.
Monday's 504-point loss in the Dow was its biggest drop since the drop following the September 2001 terror attacks. The blue-chip index is now about 24 percent below its Oct. 9, 2007, record close of 14,164.53.
On Wednesday, the 3-month Treasury bill -- considered one of the safest short-duration assets -- saw demand surge so high that its yield briefly dipped into negative territory for the first time since 1940. Investors are so focused on parking their money in safe assets that they're willing to take very little return on such investments.
The prices for short-duration Treasurys fell from Wednesday's levels. But the yield on the 3-month T-bill was still extremely low at 0.19 percent -- up from 0.2 percent late Wednesday, but well below its yield of 1.60 percent just a week ago.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.44 percent in early Thursday trading from 3.42 percent late Wednesday.
Gold, another safe haven, rose further on Thursday, after posting their largest one-day price jump ever on Wednesday.
Oil is not considered as safe as gold but it, too, has been drawing investors who deem it safer than stocks. Light, sweet crude on the New York Mercantile Exchange rose 55 cents to $97.71 a barrel, after jumping more than $6 a barrel Wednesday.
The dollar fell against most other major currencies.
In economic data, the Labor Department reported that initial claims for unemployment benefits rose by 10,000 last week to 455,000, due primarily to Louisiana's job losses from Hurricane Gustav.
The Philadelphia Fed said its regional manufacturing report improved to a 3.8 in September from a negative 12.7 in August. It marks the first positive reading since November.
In earnings news, FedEx Inc. posted a 22 percent decline in quarterly earnings, as the package delivery company cut costs to offset slowing global growth. The fiscal first-quarter results came in as expected. The stock fell $1.19 to $86.88.
Overseas, Japan's Nikkei stock average dropped 2.22 percent to its lowest closing level in over three years. Hong Kong's Hang Seng index lost 0.03 percent.
In afternoon trading, Britain's FTSE 100 rose 0.81 percent, Germany's DAX index rose 1.13 percent, and France's CAC-40 fell 0.64 percent.
Morgan Stanley seeks deal with Wachovia
NEW YORK (AP) -- Morgan Stanley's stock price plunged again Thursday as the investment bank scrambled to strike a major deal or raise more cash that will assuage investors and prevent more damage to its free-falling shares.
John Mack, the No. 2 U.S. investment bank's chief executive, has reached out to China's Citic Group overnight about a possible investment, according to a person familiar with the talks. Morgan Stanley is also considering a combination with retail bank Wachovia Corp. and an investment from Singapore Investment Corp., one of the world's biggest sovereign wealth funds, said the person, who spoke on the condition of anonymity because the discussions were still ongoing,
Morgan Stanley shares have fallen 38 percent in the past week amid unprecedented turmoil in the global banking system. Investors remain anxious after Lehman Brothers filed for bankruptcy protection, Merrill Lynch & Co. was forced into a sale to Bank of America Corp. and the federal government bailed out insurer American International Group.
Mack made telephone calls late Wednesday to Wachovia executives and also to Citigroup Inc. CEO Vikram Pandit, exploring all options to help restore confidence in the investment house, the person said. Citigroup was not interested in a tie-up, but talks remain ongoing with Wachovia, he said.
Wachovia declined to comment about a potential deal, while Citigroup confirmed that Mack and Pandit spoke.
Spokesmen for GIC and Citic could not immediately be reached for comment.
Mack isn't the only CEO looking to strike some kind of a deal or capital infusion. Washington Mutual Inc., which has lost billions and seen its shares plummet due to subprime mortgage exposure, is selling itself or looking for a deep-pocketed investor.
And overnight in London, Britain's Lloyds TSB Lloyds TSB announced a $21.85-billion deal to take over struggling HBOS PLC, Britain's biggest mortgage lender.
The U.S. government, which helped organize an $85 billion bailout of insurer AIG on Tuesday, also sought to break the grip of worsening global credit crisis by pumping billions into financial markets in a concerted action with central banks of other countries. The Federal Reserve Bank of New York, in two operations, injected $55 billion into temporary reserves in the United States, a move aimed to help ease a strained financial system in danger of freezing up.
The move helped steady Wall Street after the previous session's massive rout. However, market participants still moved into safe assets such as gold and Treasury bills, a sign that they remain skittish during the most troubling period for the world's financial system in most investors' memory.
AP Economics Writer Jeannine Aversa in Washington and AP Business Writer Tim Paradis in New York contributed to this report.
John Mack, the No. 2 U.S. investment bank's chief executive, has reached out to China's Citic Group overnight about a possible investment, according to a person familiar with the talks. Morgan Stanley is also considering a combination with retail bank Wachovia Corp. and an investment from Singapore Investment Corp., one of the world's biggest sovereign wealth funds, said the person, who spoke on the condition of anonymity because the discussions were still ongoing,
Morgan Stanley shares have fallen 38 percent in the past week amid unprecedented turmoil in the global banking system. Investors remain anxious after Lehman Brothers filed for bankruptcy protection, Merrill Lynch & Co. was forced into a sale to Bank of America Corp. and the federal government bailed out insurer American International Group.
Mack made telephone calls late Wednesday to Wachovia executives and also to Citigroup Inc. CEO Vikram Pandit, exploring all options to help restore confidence in the investment house, the person said. Citigroup was not interested in a tie-up, but talks remain ongoing with Wachovia, he said.
Wachovia declined to comment about a potential deal, while Citigroup confirmed that Mack and Pandit spoke.
Spokesmen for GIC and Citic could not immediately be reached for comment.
Mack isn't the only CEO looking to strike some kind of a deal or capital infusion. Washington Mutual Inc., which has lost billions and seen its shares plummet due to subprime mortgage exposure, is selling itself or looking for a deep-pocketed investor.
And overnight in London, Britain's Lloyds TSB Lloyds TSB announced a $21.85-billion deal to take over struggling HBOS PLC, Britain's biggest mortgage lender.
The U.S. government, which helped organize an $85 billion bailout of insurer AIG on Tuesday, also sought to break the grip of worsening global credit crisis by pumping billions into financial markets in a concerted action with central banks of other countries. The Federal Reserve Bank of New York, in two operations, injected $55 billion into temporary reserves in the United States, a move aimed to help ease a strained financial system in danger of freezing up.
The move helped steady Wall Street after the previous session's massive rout. However, market participants still moved into safe assets such as gold and Treasury bills, a sign that they remain skittish during the most troubling period for the world's financial system in most investors' memory.
AP Economics Writer Jeannine Aversa in Washington and AP Business Writer Tim Paradis in New York contributed to this report.
Sensex plunges 600 points in global rout in equities
Key benchmark indices tumbled in opening trade today, 18 September
2008, as fears that the global credit crisis could worsen further
rattled investors confidence across the globe. The BSE 30-share
Sensex was down 620.08 points. Reports that the number two US
investment bank Morgan Stanley was likely to the next victim of the
credit crisis and spurt in crude oil prices dampened the sentiment.
The market breadth was extremely weak. All the 30-members from the
Sensex pack were in red. Reliance Industries hit 52-week low below
Rs 1800. Bharti Airtel plunged a little under 8%.
At 10:21 IST, the BSE 30-share Sensex was down 620.08 points or
4.68% to 12,647.26. The Sensex opened with a huge downward gap of
550.08 points at 12,712.82, which is also its day's high so far. At
the day's low of 12,558.14 hit in early trade, the Sensex lost
704.76 points.
The S&P CNX Nifty lost 169.55 points or 4.23% to 3,838.70
Asian markets tumbled today, 18 September 2008, tracking declines
on Wall Street as investors feared more companies could succumb to
the global financial crisis that forced the US to bail out troubled
insurer American International Group Inc. Key benchmark indices in
China, Hong Kong, Singapore, Japan, Taiwan, and South Korea were
down by between 3.50% and 7.38%.
Wall Street tumbled to a three-year low on Wednesday, 17 September
2008 as the Federal Reserve's rescue of insurer AIG failed to calm
a crisis of confidence in global markets. The Dow Jones industrial
average plunged 449.36 points, or 4.06%, to 10,609.66. The S&P 500
index slipped 57.21 points, or 4.71%, to 1,156.39, while the Nasdaq
Composite index declined 109.05 points, or 4.94%, to 2,098.85.
US crude oil prices jumped $6.01, the largest one-day percentage
gain in three months, to $97.16 a barrel, on Wednesday, 17
September 2008 as a US government report showed nationwide energy
inventories fell in the aftermath of the Gulf Coast hurricanes and
as the greenback slid against the euro.
The market breadth was extremely weak on BSE with 1478 shares
declining as compared to just 142 that rose. 18 remained unchanged.
The total turnover on BSE amounted to Rs 661 crore by 10:30 IST
All the 30-members from the Sensex pack were in red.
India's largest cellular services provider by market capitalisation
Bharti Airtel plunged 7.79% to Rs 710.05 and was the top loser from
Sensex pack.
Banking shares were weak ahead of the weekly inflation data due
after market hours today, 18 September 2008. India's largest
private sector bank in terms of net profit ICICI Bank plunged 5.67%
to Rs 528.90. The bank on Wednesday, 17 September 2008 denied
rumours of top management selling shares over the last few days.
Other banking shares HDFC Bank (down 5.33% to Rs 1121.40), and
State Bank of India (down 3.31% to Rs 1478.05), edged lower.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 4.20% to Rs
1794.90 on 2.45 lakh shares. The stock had hit a 52-week low of Rs
1764 in opening trade.
Ranbaxy Laboratories, India's top drug maker by sales slumped 6.34%
to Rs 355.05. The US government has banned more than 30 generic
drugs made by the company citing poor quality in two of its Indian
factories.
Jaiprakash Associates (down 7.16% to Rs 126.20), DLF (down 7.22% to
Rs 379.20), and Reliance Communications (down 7.49% to Rs 331.50),
edged lower from Sensex pack.
Among side counters, Indisbulls Financial Services (down 14.70% to
Rs 161.90), Gujarat NRE Coke (down 13.66% to Rs 57.50), Orient
Abrasives (down 12.96% to Rs 22.50), Indiabulls Real Estate (down
13.29% to Rs 182.10), and Bank of Rajasthan (down 12.38% to Rs
66.55), plunged
2008, as fears that the global credit crisis could worsen further
rattled investors confidence across the globe. The BSE 30-share
Sensex was down 620.08 points. Reports that the number two US
investment bank Morgan Stanley was likely to the next victim of the
credit crisis and spurt in crude oil prices dampened the sentiment.
The market breadth was extremely weak. All the 30-members from the
Sensex pack were in red. Reliance Industries hit 52-week low below
Rs 1800. Bharti Airtel plunged a little under 8%.
At 10:21 IST, the BSE 30-share Sensex was down 620.08 points or
4.68% to 12,647.26. The Sensex opened with a huge downward gap of
550.08 points at 12,712.82, which is also its day's high so far. At
the day's low of 12,558.14 hit in early trade, the Sensex lost
704.76 points.
The S&P CNX Nifty lost 169.55 points or 4.23% to 3,838.70
Asian markets tumbled today, 18 September 2008, tracking declines
on Wall Street as investors feared more companies could succumb to
the global financial crisis that forced the US to bail out troubled
insurer American International Group Inc. Key benchmark indices in
China, Hong Kong, Singapore, Japan, Taiwan, and South Korea were
down by between 3.50% and 7.38%.
Wall Street tumbled to a three-year low on Wednesday, 17 September
2008 as the Federal Reserve's rescue of insurer AIG failed to calm
a crisis of confidence in global markets. The Dow Jones industrial
average plunged 449.36 points, or 4.06%, to 10,609.66. The S&P 500
index slipped 57.21 points, or 4.71%, to 1,156.39, while the Nasdaq
Composite index declined 109.05 points, or 4.94%, to 2,098.85.
US crude oil prices jumped $6.01, the largest one-day percentage
gain in three months, to $97.16 a barrel, on Wednesday, 17
September 2008 as a US government report showed nationwide energy
inventories fell in the aftermath of the Gulf Coast hurricanes and
as the greenback slid against the euro.
The market breadth was extremely weak on BSE with 1478 shares
declining as compared to just 142 that rose. 18 remained unchanged.
The total turnover on BSE amounted to Rs 661 crore by 10:30 IST
All the 30-members from the Sensex pack were in red.
India's largest cellular services provider by market capitalisation
Bharti Airtel plunged 7.79% to Rs 710.05 and was the top loser from
Sensex pack.
Banking shares were weak ahead of the weekly inflation data due
after market hours today, 18 September 2008. India's largest
private sector bank in terms of net profit ICICI Bank plunged 5.67%
to Rs 528.90. The bank on Wednesday, 17 September 2008 denied
rumours of top management selling shares over the last few days.
Other banking shares HDFC Bank (down 5.33% to Rs 1121.40), and
State Bank of India (down 3.31% to Rs 1478.05), edged lower.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 4.20% to Rs
1794.90 on 2.45 lakh shares. The stock had hit a 52-week low of Rs
1764 in opening trade.
Ranbaxy Laboratories, India's top drug maker by sales slumped 6.34%
to Rs 355.05. The US government has banned more than 30 generic
drugs made by the company citing poor quality in two of its Indian
factories.
Jaiprakash Associates (down 7.16% to Rs 126.20), DLF (down 7.22% to
Rs 379.20), and Reliance Communications (down 7.49% to Rs 331.50),
edged lower from Sensex pack.
Among side counters, Indisbulls Financial Services (down 14.70% to
Rs 161.90), Gujarat NRE Coke (down 13.66% to Rs 57.50), Orient
Abrasives (down 12.96% to Rs 22.50), Indiabulls Real Estate (down
13.29% to Rs 182.10), and Bank of Rajasthan (down 12.38% to Rs
66.55), plunged
Pre Market Report 18/09/2008
Key benchmark indices are likely to witness a gap down opening today, 18 September 2008 as fears that the global credit crisis could worsen further rattled investor confidence across the globe. Reports of Morgan Stanley being the next victim of credit crunch and spurt in crude oil may dampen the sentiment further. Volatility will be high ahead of the inflation data, which will be announced after market hours today, 18 September 2008.
The wholesale price index figure in the 12 months to 6 September 2008 will be watched closely. The wholesale price index-based inflation rose 12.10% in the week ended 30 August 2008, below the previous week's annual rise of 12.34%, Government data released after market hours on Thursday, 11 September 2008 showed. The annual inflation rate was 3.72% during the corresponding week of the previous year.
US crude oil prices jumped $6.01, the largest one-day percentage gain in three months, to $97.16 a barrel, on Wednesday, 17 September 2008 as a US government report showed nationwide energy inventories fell in the aftermath of the Gulf Coast hurricanes and as the greenback slid against the euro.
Asian markets tumbled today, 18 September 2008, tracking declines on Wall Street as investors feared more companies could succumb to the global financial crisis that forced the US to bail out troubled insurer American International Group Inc.
China's Shanghai Composite plunged 5.12% or 98.80 points at 1,830.24, Hong Kong's Hang Seng slipped 5.19% or 914.66 points at 16,722.53, Japan's Nikkei tumbled 3.18% or 374.22 points at 11,375.57, Singapore's Straits Times was down 3.72% or 89.98 points at 2,329.31, South Korea's Seoul Composite declined 3.57% or 50.88 points at 1,374.38 and Taiwan's Taiwan Weighted fell 3.50% or 202.83 points at 5,598.04.
Wall Street tumbled to a three-year low on Wednesday, 17 September 2008 as the Federal Reserve's rescue of insurer AIG failed to calm a crisis of confidence in global markets. The Dow Jones industrial average plunged 449.36 points, or 4.06%, to 10,609.66. The S&P 500 index slipped 57.21 points, or 4.71%, to 1,156.39, while the Nasdaq Composite index declined 109.05 points, or 4.94%, to 2,098.85.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 1064.17 crore while mutual funds bought shares worth Rs 948.93 crore on Wednesday, 17 September 2008, according to provisional data on NSE.
FIIs were net buyers of Rs 382.80 crore in the futures & options segment on Wednesday, 17 September 2008. They were net buyers of index futures to the tune of Rs 267.58 crore and sold index options worth Rs 72.33 crore. They were net buyers of stock futures to the tune of Rs 196.31 crore and sold stock options worth Rs 8.87 crore
The wholesale price index figure in the 12 months to 6 September 2008 will be watched closely. The wholesale price index-based inflation rose 12.10% in the week ended 30 August 2008, below the previous week's annual rise of 12.34%, Government data released after market hours on Thursday, 11 September 2008 showed. The annual inflation rate was 3.72% during the corresponding week of the previous year.
US crude oil prices jumped $6.01, the largest one-day percentage gain in three months, to $97.16 a barrel, on Wednesday, 17 September 2008 as a US government report showed nationwide energy inventories fell in the aftermath of the Gulf Coast hurricanes and as the greenback slid against the euro.
Asian markets tumbled today, 18 September 2008, tracking declines on Wall Street as investors feared more companies could succumb to the global financial crisis that forced the US to bail out troubled insurer American International Group Inc.
China's Shanghai Composite plunged 5.12% or 98.80 points at 1,830.24, Hong Kong's Hang Seng slipped 5.19% or 914.66 points at 16,722.53, Japan's Nikkei tumbled 3.18% or 374.22 points at 11,375.57, Singapore's Straits Times was down 3.72% or 89.98 points at 2,329.31, South Korea's Seoul Composite declined 3.57% or 50.88 points at 1,374.38 and Taiwan's Taiwan Weighted fell 3.50% or 202.83 points at 5,598.04.
Wall Street tumbled to a three-year low on Wednesday, 17 September 2008 as the Federal Reserve's rescue of insurer AIG failed to calm a crisis of confidence in global markets. The Dow Jones industrial average plunged 449.36 points, or 4.06%, to 10,609.66. The S&P 500 index slipped 57.21 points, or 4.71%, to 1,156.39, while the Nasdaq Composite index declined 109.05 points, or 4.94%, to 2,098.85.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 1064.17 crore while mutual funds bought shares worth Rs 948.93 crore on Wednesday, 17 September 2008, according to provisional data on NSE.
FIIs were net buyers of Rs 382.80 crore in the futures & options segment on Wednesday, 17 September 2008. They were net buyers of index futures to the tune of Rs 267.58 crore and sold index options worth Rs 72.33 crore. They were net buyers of stock futures to the tune of Rs 196.31 crore and sold stock options worth Rs 8.87 crore
Stock tips for 18th sep 2008
AUSTRAL ( Austral Coke & Projects Limited )
S.SELL BELOW 258 Stoploss 263 target 250 235
ACC ( ACC Limited )
S.SELL BELOW 586 Stoploss 591 target 577 560
KSK ( KSK Energy Ventures Limited )
S.SELL BELOW 204 Stoploss 209 target 197 184
PATNI ( PATNI COMPUTER SYST LTD)
BUY ABOVE 199.47 Stoploss 198.47 target 204.29 208.82
S.SELL BELOW 258 Stoploss 263 target 250 235
ACC ( ACC Limited )
S.SELL BELOW 586 Stoploss 591 target 577 560
KSK ( KSK Energy Ventures Limited )
S.SELL BELOW 204 Stoploss 209 target 197 184
PATNI ( PATNI COMPUTER SYST LTD)
BUY ABOVE 199.47 Stoploss 198.47 target 204.29 208.82
NMDC to buy SIIL for Rs 800 cr
National Minerals Development Corporation (NMDC), India's largest iron ore producer and exporter, will acquire the Hyderabad-based Sponge Iron India (SIIL) for a maximum of Rs 800 crore. The acquisition proposal is yet to be approved by SIIL.
NMDC has formed a draft proposal to merge with SIIL by acquiring the Hyderabad company's shares. It will also have to pay Rs 80 crore to the Government of India as purchase consideration and buy Andhra Pradesh Government's 1.23% stake in SIIL.
A company official said, "We want to diversify our portfolio and add value to our products and in the process we realised that we have no assets in Andhra Pradesh. So, we decided to buy SIIL."
The acquisition of SIIL is of strategic importance to NMDC, as it expands its iron ore production. The official said that NMDC plans to leverage SIIL's production capabilities. SIIL produces 60,000 tonnes sponge iron, 1,40,000 tonnes iron ore and 70,000 tonnes coal annually.
With an investment of Rs 23,000 crore, NMDC hopes to increase its turnover six-fold to Rs 35,000 crore by 2014. By FY15, the company plans to take its overall production capacity to 50 million tonne per year.
The company is setting up a Rs 14,000-crore integrated steel plant in Chhattisgarh and a Rs 1,400-crore pig iron plant. It is also expanding capacity at three of its mines at a cost of Rs 4,500 crore.
Source: Sify
NMDC has formed a draft proposal to merge with SIIL by acquiring the Hyderabad company's shares. It will also have to pay Rs 80 crore to the Government of India as purchase consideration and buy Andhra Pradesh Government's 1.23% stake in SIIL.
A company official said, "We want to diversify our portfolio and add value to our products and in the process we realised that we have no assets in Andhra Pradesh. So, we decided to buy SIIL."
The acquisition of SIIL is of strategic importance to NMDC, as it expands its iron ore production. The official said that NMDC plans to leverage SIIL's production capabilities. SIIL produces 60,000 tonnes sponge iron, 1,40,000 tonnes iron ore and 70,000 tonnes coal annually.
With an investment of Rs 23,000 crore, NMDC hopes to increase its turnover six-fold to Rs 35,000 crore by 2014. By FY15, the company plans to take its overall production capacity to 50 million tonne per year.
The company is setting up a Rs 14,000-crore integrated steel plant in Chhattisgarh and a Rs 1,400-crore pig iron plant. It is also expanding capacity at three of its mines at a cost of Rs 4,500 crore.
Source: Sify
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