At 9:53 am (IST), Asian markets were trading lower but managed to recoup some of the losses.
Hong Kong's Hang Seng fell 6.01% or 1232.06 points at 19,258.51.
Japan's Nikkei was down 3.69% or 335.84 points at 8,761.72.
South Korea's Seoul Composite slipped 6.75% or 126.15 points at 1,743.30.
Taiwan's Taiwan Weighted shed 1.18% or 89.28 points at 7,463.52
Tuesday, August 9, 2011
Nifty back in 5k Mark
BSE benchmark Sensex continues to be under extreme pressure just as the rest of the world. Asian Indices continued their fall for the second day as sentiments post US downgrade remained fragile. But the Nifty managed to get back above the 5000-mark.
L&T Finance Holdings Limited IPO allotment status
Check L&T Finance Holdings Limited IPO allotment status Here. If you have difficulties finding the L&T Finance Holdings Limited IPO allotment status, please visit the website of the registrar.
Bloodbath on D-Street; Sensex tumbles 300 points
The Indian markets spiralled downwards, extending losses for the sixth straight session, triggered by fears that political leaders are failing to tackle debt crises in Europe and the United States. The Sensex fell over 500 points at the start, while Nifty was trading below 5000 level since 2010. The Midcap and Smallcap indices too fell over 2% in line with the Sensex.
The advance to decline ration was extremely weak, with 88% shares falling, 10% rising and 2% remained unchanged.
IT, Metal, TECk and Realty were among the major losers, declining more than 3%.
All the Sensex shares were trading down except ONGC rose by 0.88%. Wipro slipped by 4.95%, TCS down by 4.91% and Tata Steel dipped by 4.67%. Rest fell between 0.67-4.40%
At 9.35 am, the Sensex was trading at 16580, 409 points lower and the Nifty was trading at 4995, down by 122 points.
The advance to decline ration was extremely weak, with 88% shares falling, 10% rising and 2% remained unchanged.
IT, Metal, TECk and Realty were among the major losers, declining more than 3%.
All the Sensex shares were trading down except ONGC rose by 0.88%. Wipro slipped by 4.95%, TCS down by 4.91% and Tata Steel dipped by 4.67%. Rest fell between 0.67-4.40%
At 9.35 am, the Sensex was trading at 16580, 409 points lower and the Nifty was trading at 4995, down by 122 points.
Monday, August 8, 2011
Oil sinks in Asia
Crude prices fell more than two percent in Asia Monday, with sentiment hit by Standard & Poor’s decision last week to cut Washington’s top-notch credit rating for the first time, analysts said.
In morning trade, New York’s main contract light sweet crude for September delivery tumbled $2.33, or 2.68%, to $84.55 a barrel, from its closing price on Friday.
Brent North Sea crude for September delivery sank $2.91, or 2.66%, to $106.46.
“What we do feel is the re-rating of the debt in the US has knocked confidence out of the market,” said Jonathan Barratt, Sydney-based managing director with Commodity Broking Services.
“With crude where it is at the moment, that confidence will affect demand or expectations of demand in the market,” he told AFP.
The United States, the world’s largest oil consumer, saw its top-flight AAA credit rating downgraded for the first time when S&P on Friday cut it to AA+ with a negative outlook on concerns over its debt.
“The announcement was not really a surprise because the S&P had been very clear about what it wanted to see in order for the US to maintain its AAA rating, and the agreement reached last week had not met those criteria,” Barclays Capital said in a report.
“To many observers, it was really a question of when it would happen rather than whether it would, though probably few expected it to be quite so soon.”
US Treasury Secretary Timothy Geithner on Sunday fiercely criticised the agency’s move, saying the world’s largest economy remained strong and resilient.
“I think S&P has shown really terrible judgement and they’ve handled themselves poorly, and they have shown a stunning lack of knowledge about basic US fiscal budget math, and I think they came to exactly the wrong conclusion,” Geithner said in an interview with NBC News and CNBC.
“There is no risk the US would never meet its obligations. We’ve got some challenge ahead of us, but we’ll be able to work through the challenges. We’ll get through this.”
The decline in oil prices mirrored the general volatility in global financial markets shaken by the US rating downgrade.
Asian stocks tumbled in early trade on Monday before clawing back some of their losses following frantic weekend efforts to inject calm.
Financial chiefs and central bankers of the G-7 industrialised nations pledged to “take all necessary measures” in coordinated action to support stability and the European Central Bank said it would buy up eurozone debt.
Fears of a global meltdown, which some see as potentially worse than the 2008 collapse, sent leaders into a flurry of phone calls between Berlin, London, Paris and Washington to stem the tide.
In morning trade, New York’s main contract light sweet crude for September delivery tumbled $2.33, or 2.68%, to $84.55 a barrel, from its closing price on Friday.
Brent North Sea crude for September delivery sank $2.91, or 2.66%, to $106.46.
“What we do feel is the re-rating of the debt in the US has knocked confidence out of the market,” said Jonathan Barratt, Sydney-based managing director with Commodity Broking Services.
“With crude where it is at the moment, that confidence will affect demand or expectations of demand in the market,” he told AFP.
The United States, the world’s largest oil consumer, saw its top-flight AAA credit rating downgraded for the first time when S&P on Friday cut it to AA+ with a negative outlook on concerns over its debt.
“The announcement was not really a surprise because the S&P had been very clear about what it wanted to see in order for the US to maintain its AAA rating, and the agreement reached last week had not met those criteria,” Barclays Capital said in a report.
“To many observers, it was really a question of when it would happen rather than whether it would, though probably few expected it to be quite so soon.”
US Treasury Secretary Timothy Geithner on Sunday fiercely criticised the agency’s move, saying the world’s largest economy remained strong and resilient.
“I think S&P has shown really terrible judgement and they’ve handled themselves poorly, and they have shown a stunning lack of knowledge about basic US fiscal budget math, and I think they came to exactly the wrong conclusion,” Geithner said in an interview with NBC News and CNBC.
“There is no risk the US would never meet its obligations. We’ve got some challenge ahead of us, but we’ll be able to work through the challenges. We’ll get through this.”
The decline in oil prices mirrored the general volatility in global financial markets shaken by the US rating downgrade.
Asian stocks tumbled in early trade on Monday before clawing back some of their losses following frantic weekend efforts to inject calm.
Financial chiefs and central bankers of the G-7 industrialised nations pledged to “take all necessary measures” in coordinated action to support stability and the European Central Bank said it would buy up eurozone debt.
Fears of a global meltdown, which some see as potentially worse than the 2008 collapse, sent leaders into a flurry of phone calls between Berlin, London, Paris and Washington to stem the tide.
Markets extend fall to 3% on weak Asia
Markets extended their fall to 3% on Monday, tracking a selloff in Asian markets after Standard & Poor’s downgraded the US sovereign debt rating and on fears that the world’s largest economy may be sliding back into recession.
At 10:02am, the 30-share BSE index was down 3.1% at 16,771.90 points, with all of its components declining.
The 50-share NSE index fell nearly 3% to 5,056.25 points.
At 10:02am, the 30-share BSE index was down 3.1% at 16,771.90 points, with all of its components declining.
The 50-share NSE index fell nearly 3% to 5,056.25 points.
Rupee falls past 45/$ to 5-week low on outflow worry
The rupee weakened past 45 to the dollar early on Monday for first time in five weeks after a global equities rout following US rating downgrade triggered concerns about foreign fund outflows.
The partially convertible rupee was at Rs. 45.01/02, a level last seen on 28 June. It had ended 0.4% weaker at 44.735/740 on Friday
The partially convertible rupee was at Rs. 45.01/02, a level last seen on 28 June. It had ended 0.4% weaker at 44.735/740 on Friday
US debt: India faces $41 billion exposure
As one of the 15 largest foreign creditors to the US, India’s exposure to the US’ ballooning debt is estimated at $41 billion. While China is the single-largest holder of the US treasury securities with $1.15 trillion, India stands at 14th position according to the US treasury department.
The top five US treasury securities holders as of May are China ($1159.8 billion); Japan ($912.4 bn); UK ($346.5 bn); oil exporters ($229.8 bn); and Brazil ($211.4 bn
)
The top five US treasury securities holders as of May are China ($1159.8 billion); Japan ($912.4 bn); UK ($346.5 bn); oil exporters ($229.8 bn); and Brazil ($211.4 bn
)
Wednesday, August 3, 2011
SBI Rights issue when market conditions favourable
Diwakar Gupta, CFO of SBI said the bank will go for its Rs 20,000-crore rights issue when market conditions turn favourable
Gupta also said that the lending major is engaged in continuous dialogue with the government regarding the rights issue.
On the banks financials, Gupta said, he expects provisioning of Rs 2,100 crore in the first quarter of FY12.
Source: CNBC-TV18
Gupta also said that the lending major is engaged in continuous dialogue with the government regarding the rights issue.
On the banks financials, Gupta said, he expects provisioning of Rs 2,100 crore in the first quarter of FY12.
Source: CNBC-TV18
Gold futures extended gains by more than 1.5%
Gold futures extended gains by more than 1.5% on Wednesday afternoon to hit a record high following strong overseas markets, with help from a weaker rupee at home, which made the dollar-quoted yellow metal expensive, dealers said.
The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 1.70% higher at Rs. 24,211 per 10 grams, after hitting a record of Rs. 24,233. The contract had struck a peak in the previous session.
The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 1.70% higher at Rs. 24,211 per 10 grams, after hitting a record of Rs. 24,233. The contract had struck a peak in the previous session.
Bharti Airtel Q1 net profit down
Bharti Airtel, India’s top mobile phone carrier, on Wednesday reported a bigger-than-expected 28% fall in quarterly profit, hit by losses at its African operations and as costs of its new third-generation network in India weighed.
Shares in Bharti fell more than 4% after the results to their lowest level in more than a week.
India’s long-suffering telecoms sector is back on investors’ radar after companies including Bharti raised call prices recently -- the first such increase in at least two years -- after a vicious price war in the 15-player market had strained their finances.
With more than 850 million mobile connections, India is the world’s second-biggest mobile phone market after China and is adding subscribers at the fastest pace. The market, however, offers some of the world’s cheapest call rates as carriers have traditionally sacrificed profits to chase growth.
Bharti last year ventured into Africa at a time when growth on its home turf was slowing by acquiring most of the mobile African mobile operations of Kuwait’s Zain to become the world’s fifth-biggest mobile carrier by subscribers.
But high costs in Africa have kept the firm’s margins under pressure and it has yet to turn a profit there, although company officials have said the African business is improving.
The company’s overall Africa related net loss in the June quarter was at Rs302 crore.
Bharti, which spent $3.5 billion in an Indian state auction last year to buy 3G and broadband airwaves, is betting on a pick up in premium data services to boost margins in a market where voice calls account for more than 85% of the sector’s revenue.
“In India, the company’s efforts in the area of cost efficiencies have helped arrest the margin decline,” Bharti Airtel chairman Sunil Mittal said in a statement.
“Overall, 2011-12 promises to be an exciting year of transformation.”
New Delhi-based Bharti, nearly a third owned by Southeast Asia’s biggest phone firm, SingTel , said consolidated net profit fell to Rs1,215 crore ($274 million) for its fiscal first quarter ended June from Rs1,682 crore a year earlier, based on international accounting standards.
It was the sixth consecutive quarter of falling profits for the New Delhi-based firm that had 221.2 million mobile users at the end of June in 19 countries across Asia and Africa.
Revenue rose 39% to Rs16,975 crore. A Reuters poll of brokerages had expected net profit of Rs1,518 crore on revenue of Rs16,887 crore.
Monthly average revenue per user (ARPU), a key metric for telecom carriers, from Bharti’s Indian operations fell an annual 12% to Rs190 for the quarter. Africa ARPU saw a drop of 2% on year to $7.3.
Shares in Bharti fell more than 4% after the results to their lowest level in more than a week.
India’s long-suffering telecoms sector is back on investors’ radar after companies including Bharti raised call prices recently -- the first such increase in at least two years -- after a vicious price war in the 15-player market had strained their finances.
With more than 850 million mobile connections, India is the world’s second-biggest mobile phone market after China and is adding subscribers at the fastest pace. The market, however, offers some of the world’s cheapest call rates as carriers have traditionally sacrificed profits to chase growth.
Bharti last year ventured into Africa at a time when growth on its home turf was slowing by acquiring most of the mobile African mobile operations of Kuwait’s Zain to become the world’s fifth-biggest mobile carrier by subscribers.
But high costs in Africa have kept the firm’s margins under pressure and it has yet to turn a profit there, although company officials have said the African business is improving.
The company’s overall Africa related net loss in the June quarter was at Rs302 crore.
Bharti, which spent $3.5 billion in an Indian state auction last year to buy 3G and broadband airwaves, is betting on a pick up in premium data services to boost margins in a market where voice calls account for more than 85% of the sector’s revenue.
“In India, the company’s efforts in the area of cost efficiencies have helped arrest the margin decline,” Bharti Airtel chairman Sunil Mittal said in a statement.
“Overall, 2011-12 promises to be an exciting year of transformation.”
New Delhi-based Bharti, nearly a third owned by Southeast Asia’s biggest phone firm, SingTel , said consolidated net profit fell to Rs1,215 crore ($274 million) for its fiscal first quarter ended June from Rs1,682 crore a year earlier, based on international accounting standards.
It was the sixth consecutive quarter of falling profits for the New Delhi-based firm that had 221.2 million mobile users at the end of June in 19 countries across Asia and Africa.
Revenue rose 39% to Rs16,975 crore. A Reuters poll of brokerages had expected net profit of Rs1,518 crore on revenue of Rs16,887 crore.
Monthly average revenue per user (ARPU), a key metric for telecom carriers, from Bharti’s Indian operations fell an annual 12% to Rs190 for the quarter. Africa ARPU saw a drop of 2% on year to $7.3.
3i Infotech hits 52 Week Low
3i infotech hits 52 Week Low 37.80 today.
It started its downword journey after announcement of final dividend of 15% on July 7th.
It started its downword journey after announcement of final dividend of 15% on July 7th.
Tilaknagar Ind raises based on news update
Tilaknagar Industries Ltd has informed BSE that the Government of Maharashtra vide its letter dated D.O. No. HPC-1008/C.R.123/Ind-8 has decided to confer the status of "Mega Project" to the new manufacturing facilities which, inter-alia, includes 50 KLPD molasses based distillation plant and 100KLPD grain based distillation plant alongwith captive power plant under Package Scheme of Incentives (PSI) 2007.
This will enable the Company to enjoy following benefits:
- Subsidy to the extent of 100% of eligible investment with a period of seven year by way of set off /credit for Tax liability under Maharashtra Value Added Tax Act 2002 and Central Sales Tax Act 1956.
- Electricity duty exemption for the period of 7 years
- 100% exemption from payment of stamp duty
The aforesaid benefits shall be subject to the conditions contained in the aforesaid letter of Government of Maharashtra.
At 11:20 Tilaknagar Ind was at 46.20 (6.45% up)
This will enable the Company to enjoy following benefits:
- Subsidy to the extent of 100% of eligible investment with a period of seven year by way of set off /credit for Tax liability under Maharashtra Value Added Tax Act 2002 and Central Sales Tax Act 1956.
- Electricity duty exemption for the period of 7 years
- 100% exemption from payment of stamp duty
The aforesaid benefits shall be subject to the conditions contained in the aforesaid letter of Government of Maharashtra.
At 11:20 Tilaknagar Ind was at 46.20 (6.45% up)
Inventure Growth to list shares on August 4
Inventure Growth & Securities Ltd IPO shares will list on Thursday, August 04, 2011. Inventure raised capital through IPO of Rs. 81.90 crore from Jul 20, 2011 to Jul 22, 2011. Inventure’s IPO received good response from retail and non institutional investors and managed to oversubscribe subscribed 4.58 times. Company fixed the price for its IPO share on upper end of its price range at Rs 117 per share.
Inventure Securities IPO Listing Information:
Listing Date: Thursday, August 04, 2011
BSE Scrip Code: 533506
NSE Symbol: INVENTURE
Listing In: B Group of Securities
Sector:
ISIN: INE878H01016
Issue Price: Rs. 117.00 Per Equity Share
Face Value: Rs. 10.00 Per Equity Share
Inventure Securities IPO Listing Information:
Listing Date: Thursday, August 04, 2011
BSE Scrip Code: 533506
NSE Symbol: INVENTURE
Listing In: B Group of Securities
Sector:
ISIN: INE878H01016
Issue Price: Rs. 117.00 Per Equity Share
Face Value: Rs. 10.00 Per Equity Share
Weak global cues drag Sensex below 18K; tech, banks dip
The benchmark Sensex fell below the psychologically important 18,000-mark while the Nifty tanked below the 5400 level, which was on expected lines. The sell-off was due after heavy fall across the globe on the back of economic worries in the US despite Barack Obama signed debt deal.
The 30-share BSE Sensex was trading at 17,896, down 214 points and the 50-share NSE Nifty fell 66 points to 5390.
Heavyweights like Reliance Industries, Bharti, L&T, TCS, SBI, BHEL and ICICI Bank were down between 1% and 2%.
However, ONGC gained over 1% as it seemed that government may not go for follow-on public route due to prevailing weak market conditions.
GAIL and BPCL were other gainers.
Midcaps like SpiceJet, Jet Airways, Peninsula Land, Shriram City and Allcargo Global were up 2.5-5%. However, KGN Inds, Jubiland Food, Pantaloon Retail, IVRCL and TTK Prestige lost 4-5%.
Credits: money control
The 30-share BSE Sensex was trading at 17,896, down 214 points and the 50-share NSE Nifty fell 66 points to 5390.
Heavyweights like Reliance Industries, Bharti, L&T, TCS, SBI, BHEL and ICICI Bank were down between 1% and 2%.
However, ONGC gained over 1% as it seemed that government may not go for follow-on public route due to prevailing weak market conditions.
GAIL and BPCL were other gainers.
Midcaps like SpiceJet, Jet Airways, Peninsula Land, Shriram City and Allcargo Global were up 2.5-5%. However, KGN Inds, Jubiland Food, Pantaloon Retail, IVRCL and TTK Prestige lost 4-5%.
Credits: money control
Monday, April 11, 2011
ONGC FPO in this quarter, along with PFC and SAIL: Finmin
The issue of independent directors required on the board of oil major ONGC is likely to be resolved soon and the Government plans to offload stake in the company, along with PFC and SAIL, in this quarter itself.
“We are in the process of resolving the independent director issue in ONGC. The follow-on public offer (FPO) of the company is likely to come in the quarter ending June,” a Finance Ministry official told PTI.
ONGC does not meet market regulator Sebi’s listing norms of having equal number of functional and independent directors and the government had planned to withdraw both its nominees from the board to meet the requirement and push the FPO.
But the move would have led to ONGC losing its coveted Navaratna status, which gives the company board autonomy to approve investments of any size for projects, and enables it to invest up to Rs 1,000 crore in a joint venture.
The government plans to sell 5% stake or 427.77 million equity shares through the FPO to raise up to Rs 12,000 crore. It was to hit the market in March, but was deferred.
The official further said that PFC is likely to be the first public issue of the current fiscal, followed by SAIL.
Meanwhile, Disinvestment Secretary Sumit Bose said, “We hope to come out with the public issue of PFC, SAIL and ONGC in the first quarter of the current fiscal.”
State-run Power Finance Corporation’s Rs 6,000-crore FPO is likely to hit the market in the second week of May and the company has already filed the draft red herring prospectus (DRHP) with Sebi.
The government holds 89.78 per cent stake in the firm. It had divested 10 per cent through initial public offer (IPO) in 2007. The company will infuse 15 per cent fresh equity, while the government will dilute its 5 per cent stake.
Besides, the much-awaited Rs 8,000-crore FPO of Steel Authority of India (SAIL) is set to hit the capital market by the end of next month.
The FPO of SAIL, in which the Government holds a little over 85%, has failed to meet repeated deadlines since December due to unfavourable market conditions and problems with merchant bankers.
In SAIL, in the first phase, besides raising Rs 4,000 crore by divesting 5 per cent stake, the steel giant would raise fresh equity of the same proportion. In the second phase, it will sell another 10% through FPO.
The government has set a target of Rs 40,000 crore through disinvestment in state-owned firms this fiscal, up from over Rs 22,000 crore mopped up in 2010-11.
“We are in the process of resolving the independent director issue in ONGC. The follow-on public offer (FPO) of the company is likely to come in the quarter ending June,” a Finance Ministry official told PTI.
ONGC does not meet market regulator Sebi’s listing norms of having equal number of functional and independent directors and the government had planned to withdraw both its nominees from the board to meet the requirement and push the FPO.
But the move would have led to ONGC losing its coveted Navaratna status, which gives the company board autonomy to approve investments of any size for projects, and enables it to invest up to Rs 1,000 crore in a joint venture.
The government plans to sell 5% stake or 427.77 million equity shares through the FPO to raise up to Rs 12,000 crore. It was to hit the market in March, but was deferred.
The official further said that PFC is likely to be the first public issue of the current fiscal, followed by SAIL.
Meanwhile, Disinvestment Secretary Sumit Bose said, “We hope to come out with the public issue of PFC, SAIL and ONGC in the first quarter of the current fiscal.”
State-run Power Finance Corporation’s Rs 6,000-crore FPO is likely to hit the market in the second week of May and the company has already filed the draft red herring prospectus (DRHP) with Sebi.
The government holds 89.78 per cent stake in the firm. It had divested 10 per cent through initial public offer (IPO) in 2007. The company will infuse 15 per cent fresh equity, while the government will dilute its 5 per cent stake.
Besides, the much-awaited Rs 8,000-crore FPO of Steel Authority of India (SAIL) is set to hit the capital market by the end of next month.
The FPO of SAIL, in which the Government holds a little over 85%, has failed to meet repeated deadlines since December due to unfavourable market conditions and problems with merchant bankers.
In SAIL, in the first phase, besides raising Rs 4,000 crore by divesting 5 per cent stake, the steel giant would raise fresh equity of the same proportion. In the second phase, it will sell another 10% through FPO.
The government has set a target of Rs 40,000 crore through disinvestment in state-owned firms this fiscal, up from over Rs 22,000 crore mopped up in 2010-11.
Infosys to complete restructuring in 3-4 months: Sources
Infosys is likely to have finalised two European firms for acquisition, reports CNBC-TV18 quoting sources. It is learnt that the IT major will be pumping in USD 280-300 for the acquisition which is slated to be completed before July.
Sources add that that Infosys has appointed three member panel with Director-HR of the company Mohandas Pai at the helm. The panel will chart out restructuring blueprint. However, Infosys may go for restructuring only after the succession plans are announced.
According to sources, Infosys is looking to restructure business into seven key verticals, wherein each vertical will be divided into different horizontals. Sources also say that three to four key vertical heads likely to be shuffled and upto 1000 senior-mid management employees may be restructured. Infosys is eyeing to complete restructuring in three-four months time.
However, Infosys has refused to comment calling it speculation.
- Money control
Sources add that that Infosys has appointed three member panel with Director-HR of the company Mohandas Pai at the helm. The panel will chart out restructuring blueprint. However, Infosys may go for restructuring only after the succession plans are announced.
According to sources, Infosys is looking to restructure business into seven key verticals, wherein each vertical will be divided into different horizontals. Sources also say that three to four key vertical heads likely to be shuffled and upto 1000 senior-mid management employees may be restructured. Infosys is eyeing to complete restructuring in three-four months time.
However, Infosys has refused to comment calling it speculation.
- Money control
BSE Holidays 2011 / NSE Holidays 2011
Wednesday 26th January, 2011 Republic Day
Wednesday 2nd March, 2011 Mahashivratri
Tuesday 12th April, 2011 Ram Navmi
Thursday 14th April, 2011 Dr. Babasaheb Ambedkar Jayanti
Friday 22nd April, 2011 Good Friday
Monday 15th August, 2011 Independence Day
Wednesday 31st August, 2011 Ramzan Id
Thursday 1st September, 2011 Shri Ganesh Chaturthi
Thursday 6th October, 2011 Dassera
Wednesday 26th October, 2011 Diwali Amavasya (Laxmi Pujan)
Thursday 27th October, 2011 Diwali Balipratipada
Monday 7th November 2011 Bakri-Id
Thursday 10th November, 2011 Gurunanak Jayanti
Tuesday 6th December 2011 Moharum
Wednesday 2nd March, 2011 Mahashivratri
Tuesday 12th April, 2011 Ram Navmi
Thursday 14th April, 2011 Dr. Babasaheb Ambedkar Jayanti
Friday 22nd April, 2011 Good Friday
Monday 15th August, 2011 Independence Day
Wednesday 31st August, 2011 Ramzan Id
Thursday 1st September, 2011 Shri Ganesh Chaturthi
Thursday 6th October, 2011 Dassera
Wednesday 26th October, 2011 Diwali Amavasya (Laxmi Pujan)
Thursday 27th October, 2011 Diwali Balipratipada
Monday 7th November 2011 Bakri-Id
Thursday 10th November, 2011 Gurunanak Jayanti
Tuesday 6th December 2011 Moharum
Thursday, October 14, 2010
Prestige Estates Rs 1,200cr IPO subscribed 1.75 times till 2pm
Realty developer Prestige Estates Projects' Rs 1,200 crore initial public offer (IPO) got over- subscribed 1.75 times, hours before the end of issue today.
The IPO, which opened on October 12, received total bids for over 10 crore shares against 5.72 crore equities on offer, as per the NSE data available till 1400 hours.
Final figures of the IPO will be available by the end of day. The Bangalore-based real estate developer has entered the capital market with its public float priced in a range of Rs 172 to Rs 183 per share.
The company has already raised Rs 215.4 crore for its IPO by roping in 23 anchor investors, including Reliance MF, DSP Blackrock and Credit Suisse.
Anchor investors, which will get shares in Prestige IPO, include Sundaram BNP, HDFC MF, Alliance Berstein India Growth Fund, Indus Capital Advisor UK, Government of Singapore, Lloyd George, HSBC MF, Mirae Asset and Axis MF.
Enam Securities, JP Morgan India , Kotak Mahindra Capital Company and UBS Securities India are the book running lead managers to the issue.
The IPO, which opened on October 12, received total bids for over 10 crore shares against 5.72 crore equities on offer, as per the NSE data available till 1400 hours.
Final figures of the IPO will be available by the end of day. The Bangalore-based real estate developer has entered the capital market with its public float priced in a range of Rs 172 to Rs 183 per share.
The company has already raised Rs 215.4 crore for its IPO by roping in 23 anchor investors, including Reliance MF, DSP Blackrock and Credit Suisse.
Anchor investors, which will get shares in Prestige IPO, include Sundaram BNP, HDFC MF, Alliance Berstein India Growth Fund, Indus Capital Advisor UK, Government of Singapore, Lloyd George, HSBC MF, Mirae Asset and Axis MF.
Enam Securities, JP Morgan India , Kotak Mahindra Capital Company and UBS Securities India are the book running lead managers to the issue.
15-minute pre-market call auctions to start on October 18
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have decided to implement ‘pre-market call auctions’ which is a special 15-minute trading window starting at 9:00 am from October 18.
Pre-market opening features:
•a very useful mechanism particularly on high volatility days. This will matter more when there are sudden major developments
•No entry, modification, cancellation executed
•Orders accumulated for specified period
•Price and quantity information is shared
•Provisions to discourage manipulation
•Limit and market orders is allowed
•IOC conditions are not allowed
•Iceberg orders are not allowed
•Limit orders prioritised over market orders
•Price banding at 20% applicable
•Circuit filter for continous sessions only
•Open market orders to move as limit orders at open price
This also means that all other segments, including derivatives and non-index stocks, will trade only at 9:15 am.
Both the exchanges have already received the go-ahead from market regulator the Securities and Exchange Board of India (Sebi) to start the ‘pre-market call auctions’.
The aim of this exercise is to enable better price discovery in the market. Sayee Srinivasan, head–product Strategy at BSE, says, “The call auction is the solution to take care of the uncertainty that is there in people’s mind about where a stock should be priced at the open.”
So how does this work? Here is the break-up of these 15 minutes. At 9:00 am, investors will be able to place their ‘buy’ and ‘sell’ orders for Nifty or Sensex stocks for a period of seven minutes. During these seven minutes, no trades will be executed.
However, the exchanges will discover an ‘indicative price’ for these stocks and the ‘indicative index levels.’ While these indicative levels will continue to change through the course of the seven minutes, they will be reflective of the general direction of the market and investors can then accordingly place their bids.
What is also interesting is that if based on these indicative prices investors wish to change or cancel their orders they will be allowed to do so. The exchanges will suddenly halt this order-taking randomly between 9:07 and 9:08 am in order to check any market manipulation.
After this stoppage, till 9:12 am orders will be matched and opening prices of the stocks and the opening levels for the indices will be discovered. It is during this time that the trades will be executed at the single discovered price for every stock. The opening price for a stock will be the price at which the maximum amount of shares can be traded.
Extreme care has also been taken to combat volatility. While during the auction period there is no provision for a circuit filter, a 20% price band will be applicable on all bid prices.
Pre-market opening features:
•a very useful mechanism particularly on high volatility days. This will matter more when there are sudden major developments
•No entry, modification, cancellation executed
•Orders accumulated for specified period
•Price and quantity information is shared
•Provisions to discourage manipulation
•Limit and market orders is allowed
•IOC conditions are not allowed
•Iceberg orders are not allowed
•Limit orders prioritised over market orders
•Price banding at 20% applicable
•Circuit filter for continous sessions only
•Open market orders to move as limit orders at open price
This also means that all other segments, including derivatives and non-index stocks, will trade only at 9:15 am.
Both the exchanges have already received the go-ahead from market regulator the Securities and Exchange Board of India (Sebi) to start the ‘pre-market call auctions’.
The aim of this exercise is to enable better price discovery in the market. Sayee Srinivasan, head–product Strategy at BSE, says, “The call auction is the solution to take care of the uncertainty that is there in people’s mind about where a stock should be priced at the open.”
So how does this work? Here is the break-up of these 15 minutes. At 9:00 am, investors will be able to place their ‘buy’ and ‘sell’ orders for Nifty or Sensex stocks for a period of seven minutes. During these seven minutes, no trades will be executed.
However, the exchanges will discover an ‘indicative price’ for these stocks and the ‘indicative index levels.’ While these indicative levels will continue to change through the course of the seven minutes, they will be reflective of the general direction of the market and investors can then accordingly place their bids.
What is also interesting is that if based on these indicative prices investors wish to change or cancel their orders they will be allowed to do so. The exchanges will suddenly halt this order-taking randomly between 9:07 and 9:08 am in order to check any market manipulation.
After this stoppage, till 9:12 am orders will be matched and opening prices of the stocks and the opening levels for the indices will be discovered. It is during this time that the trades will be executed at the single discovered price for every stock. The opening price for a stock will be the price at which the maximum amount of shares can be traded.
Extreme care has also been taken to combat volatility. While during the auction period there is no provision for a circuit filter, a 20% price band will be applicable on all bid prices.
Sensex drops 190 pts
Equity benchmarks stalled the follow-up rally by erasing more than 190 points on Sensex on the back of profit booking in major sectors like infrastructure, financial, telecom and oil & gas. The sell-off as well as consolidation was imminent because the Sensex rallied more than 650 points from Wednesday till today's spike up in initial trade.
However, Infosys maintained its uptrend ahead of results for the quarter ended September 2010; jumped 1% followed by Wipro with 1.5% rise. Sesa Goa, Tata Steel and Tata Motors were other gainers
The 50-share NSE Nifty closed at 6177, down 56 points and the 30-share BSE Sensex was at 20497, down 190 points.
However, Infosys maintained its uptrend ahead of results for the quarter ended September 2010; jumped 1% followed by Wipro with 1.5% rise. Sesa Goa, Tata Steel and Tata Motors were other gainers
The 50-share NSE Nifty closed at 6177, down 56 points and the 30-share BSE Sensex was at 20497, down 190 points.
Sea TV Network lists with 20% premium
Shares of Sea TV Network, an Agra-based company engaged in providing services of a Multi System Operator (MSO) to various Local Cable TV operators of Agra city, listed at Rs 120, a premium of 20% over an issue price of Rs 100 a share.
At 9:10 hours IST, a share was trading at Rs 118, with volume of more than 30 lakh shares, after hitting a high of Rs 126.15 and low of Rs 116.10 on BSE.
Sea TV Network raised Rs 50.2 crore via offering of 50.2 lakh equity shares. Part of the net proceeds of the Issue is proposed to be utilized for expansion plan which include setting up of complete Digital Headend and network for implementation of Conditional Access System (CAS) to convert from the present Analog system to distribution to a Digital System, setting up network for complete IPTV solution, setting up of own cable distribution (underground optical fiber) network capable of digital transmission throughout Agra City and adjoining areas and also setting up own 20 branch-offices in the city including in the adjoining areas with required infrastructure for receiving digital signals and re-transmitting the same without much value addition through co-axial cables to individual customers/subscribers.
The issue was opened for subscription during September 27-29, 2010, which had subscribed 9.58 times. A price band was at Rs 90-100 a share.
Sea TV proposes to adopt latest technology i.e. IPTV for providing TV channels to its viewers. It already has a network of about 150 franchisees throughout Agra city.
At 9:10 hours IST, a share was trading at Rs 118, with volume of more than 30 lakh shares, after hitting a high of Rs 126.15 and low of Rs 116.10 on BSE.
Sea TV Network raised Rs 50.2 crore via offering of 50.2 lakh equity shares. Part of the net proceeds of the Issue is proposed to be utilized for expansion plan which include setting up of complete Digital Headend and network for implementation of Conditional Access System (CAS) to convert from the present Analog system to distribution to a Digital System, setting up network for complete IPTV solution, setting up of own cable distribution (underground optical fiber) network capable of digital transmission throughout Agra City and adjoining areas and also setting up own 20 branch-offices in the city including in the adjoining areas with required infrastructure for receiving digital signals and re-transmitting the same without much value addition through co-axial cables to individual customers/subscribers.
The issue was opened for subscription during September 27-29, 2010, which had subscribed 9.58 times. A price band was at Rs 90-100 a share.
Sea TV proposes to adopt latest technology i.e. IPTV for providing TV channels to its viewers. It already has a network of about 150 franchisees throughout Agra city.
Ashoka Buildcon lists at Rs 342 Vs IPO price of Rs 324/sh
Shares of Ashoka Buildcon, a company engaged in building and operating roads and bridges on a BOT basis, have listed at Rs 342 a share on NSE as against issue price of Rs 324.
At 9:17 hours IST, a share was trading at Rs 327, with volume of 24 lakh shares, after hitting a high of Rs 344.95 and low of Rs 313.10 in early trade.
Ashoka raised Rs 225 crore through IPO, which was opened during September 24-28 and was subscribed 15.53 times. A price band was at Rs 297-324 a share.
Issue proceeds will be used for investment in capital equipment; working capital requirements; prepayment/ repayment of project loans of the company and funding certain subsidiaries for prepayment/ repayment of their loans.
At 9:17 hours IST, a share was trading at Rs 327, with volume of 24 lakh shares, after hitting a high of Rs 344.95 and low of Rs 313.10 in early trade.
Ashoka raised Rs 225 crore through IPO, which was opened during September 24-28 and was subscribed 15.53 times. A price band was at Rs 297-324 a share.
Issue proceeds will be used for investment in capital equipment; working capital requirements; prepayment/ repayment of project loans of the company and funding certain subsidiaries for prepayment/ repayment of their loans.
Govt sets Coal India IPO price band at Rs 225-245/sh
The price band for the eagerly awaited initial public offer (IPO) of India's largest coal producing company, Coal India (CIL) has been fixed at Rs 225-245 a share, Coal Minister, Sriprakash Jaiswal said. "Employees and retail investors will get 5% discount to the issue price," he added.
The government expects to raise over Rs 15,000 crore through the IPO, which will be largest ever amount raised by an Indian company via offering. And, Jaiswal said, we would not rope in anchor investors in the IPO.
The issue will attract retail and QIB investors, said CIL chairman Partha Bhattacharya. He also said that the company will be listed on November 4, 2010.
The company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder (GoI), whose stake will be 89.99% post the issue. The IPO is set to open for subscription on October 18 and will close on October 21, 2010.
The company is offering 63.16 crore equity shares through the issue, which was an offer for sale by the President of India, acting through the ministry of coal, Government of India.
The offer shall constitute 10% of the post offer paid-up equity share capital of company. The issue will close on October 21.
As per draft prospectus, CIL is the largest coal producing company in the world (Source: CRISIL Research), based on raw coal production of 431.26 million tons in fiscal 2010. It is also the largest coal reserve holder in the world (Source: CRISIL Research) based on reserve base as of April 1, 2010
The government expects to raise over Rs 15,000 crore through the IPO, which will be largest ever amount raised by an Indian company via offering. And, Jaiswal said, we would not rope in anchor investors in the IPO.
The issue will attract retail and QIB investors, said CIL chairman Partha Bhattacharya. He also said that the company will be listed on November 4, 2010.
The company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder (GoI), whose stake will be 89.99% post the issue. The IPO is set to open for subscription on October 18 and will close on October 21, 2010.
The company is offering 63.16 crore equity shares through the issue, which was an offer for sale by the President of India, acting through the ministry of coal, Government of India.
The offer shall constitute 10% of the post offer paid-up equity share capital of company. The issue will close on October 21.
As per draft prospectus, CIL is the largest coal producing company in the world (Source: CRISIL Research), based on raw coal production of 431.26 million tons in fiscal 2010. It is also the largest coal reserve holder in the world (Source: CRISIL Research) based on reserve base as of April 1, 2010
Wednesday, August 11, 2010
Prakash Steelage IPO finally subscribed 4.53 times
Details as below
Qualified Institutional Buyers (QIBs): 1.2700
Non Institutional Investors : 10.9100
Retail Individual Investors (RIIs) : 6.6200
Employee Reservations : 1.0200
Total : 4.5300
Qualified Institutional Buyers (QIBs): 1.2700
Non Institutional Investors : 10.9100
Retail Individual Investors (RIIs) : 6.6200
Employee Reservations : 1.0200
Total : 4.5300
Tuesday, August 10, 2010
Wednesday, September 30, 2009
Bulls in command
Bulls were in command as key benchmark indices continued their
upward journey in mid-afternoon trade. Optimism about Q2 September
2009 which will start trickling in from the second week of October
2009, gains in European stocks and higher US index futures,
bolstered sentiment. The BSE 30-share Sensex was up 238.37 points
or 1.41%. The barometer index was trading above the psychological
17,000 level after crossing that level in morning trade. The BSE
Sensex and the S&P CNX Nifty today hit their highest level in more
than 16 months.
After a modest start, the market surged in mid-morning trade. The
market extended gains later. The market hit a fresh intraday high
in afternoon trade. A small correction pulled the market lower
later. The market surged in mid-afternoon trade with the Sensex
hitting a fresh intraday high on higher US index futures.
Metal, banking and IT stocks led the rally. Oil India was currently
trading at a premium of 9.25% over the IPO price of Rs 1,050.
Traders may refrain from building large positions this week because
this is a truncated trading week as the market remains closed on
Friday, 2 October 2009, on account of Gandhi Jayanti. Further,
shares bought in the cash segment on Tuesday, 29 September 2009,
cannot be sold today, 30 September 2009, due to settlement related
issues because commercial banks are closed today for half-yearly
closing of accounts.
There is optimism about Q2 September 2009 results after advance tax
collections registered a positive growth in the second quarter
after witnessing a negative growth in the first quarter. Corporate
advance tax and advance personal income-tax were up by 14.7% and
1.7%, respectively in the September 2009 quarter. Infosys
kickstarts the reporting season on 9 October 2009.
Latest economic data has been strong. The index of six core
industries having a combined weight of 26.7% in the index of
industrial production (IIP) registered a growth of 7.1% in August
2009 compared to a growth of 2.1% in August 2008. During
April-August 2009-10, six core industries registered a growth of
4.8% as against 3.3% during the corresponding period of the
previous year. Coal and cement sector boosted overall growth in the
six infrastructure industries in August 2009.
Meanwhile, the Reserve Bank of India (RBI) deputy governor K C
Chakrabarty has said that rising inflationary pressures could limit
the scope for a sustained growth supported monetary policy stance.
The central bank has aggressively cut policy rates and pumped huge
liquidity in the system in the aftermath of the global financial
crisis last year. It may be recalled Finance Minister Pranab
Mukherjee recently spoke of the need for the fiscal stimulus to
continue for a few more quarters until the economy is back on
track.
Coming back to equities, a section of the market is, however,
concerned that a glut in share sales may suck liquidity from the
secondary market. The corporate sector has raised large sums of
money through equity and equity related instruments in the past six
months or so to either to retire high cost debt or to fund
expansion. The supply of paper by Indian firms appear limitless,
raising concerns that additional share sales will suck liquidity
from the secondary market.
As per one report, companies plan to raise at least Rs 40,000 crore
through initial public offers (IPOs)/follow on public offers (FPOs)
in the second half of the current financial year. Power companies
such as GMR Energy, Indiabulls Power and JSW Energy and state-run
Bharat Heavy Electricals and NTPC are likely to tap the primary
market. Reliance Infratel also announced on Tuesday, 22 September
2009, its intention to raise Rs 5,000 crore from the primary
market. A number of companies are also in the fray to raise funds
by way of qualified institutional placement (QIP), reports suggest.
S. Pradhan, the joint secretary of the department of disinvestment,
Government of India, today said the government plans to sell stakes
in at least five state-run firms by the end of the fiscal year in
March 2010 following successful IPOs of two firms that raised $1.8
billion. His statement comes close on the heels of media reports
that the government is planning to announce a blueprint for selling
its stake in state-owned firms in the first week of October 2009.
The policy is expected to suggest how the government will
eventually bring down its stake in public sector companies to 75%
over a period of time.
European shares rose on Wednesday powered by gains in energy and
mining stocks, as commodity prices firmed on the final day of the
quarter, offsetting weakness in banks. The key benchmark indices in
France, Germany and UK were up by between 0.24% to 0.5%.
Asian stocks were mixed after a surprise fall in US consumer
confidence. Key benchmark indices in Japan, South Korea Hong Kong
and Singapore were down by between 0.39% to 1%. Key benchmark
indices in China, Japan and Taiwan were up by between 0.33% to
1.07%.
A gauge of China's manufacturing activity released Wednesday
indicated expansion for the sixth straight month in September,
although conditions cooled slightly from August, suggesting the
rebound in industrial activity remains intact but is beginning to
level off.
Japanese manufacturers increased production for a sixth month in
August, capping the longest stretch of gains in 12 years, as
emergency spending by governments worldwide rekindled global trade.
Factory output rose 1.8% last month after climbing 2.1% in July,
the Trade Ministry said today in Tokyo.
The International Monetary Fund (IMF) will reportedly raise its
2010 growth forecast for the world economy to 3.1% from 2.5% to
reflect improving economic conditions. The IMF is due to update its
forecasts in its World Economic Outlook to be released in Istanbul
on Thursday, 1 October 2009. The IMF is likely to revise its global
forecast for this year to a 1.1% contraction from a negative 1.4%
predicted earlier.
Trading in US index futures indicated the Dow could gain 31 points
at the bell on Wednesday, 30 September 2009.
US markets ended lower on Tuesday, 29 September 2009 as a drop in
consumer confidence dragged on the market. The Dow Jones Industrial
Average fell 47.16 points, or 0.5%, to 9,742.20. The S&P 500 index
dropped 2.38 points, or 0.2%, to 1,060.60, and the Nasdaq Composite
index shed 6.70 points, or 0.3%, to 2,124.04.
The US consumer-confidence index dropped to 53.1 in September from
54.5 in August. Economists had expected the gauge to rise to 57.
Meanwhile, the S&P/case-shiller home price report for July was
better-than-expected. The report showed a 13.3% year-over-year
decline, which was better than the 14.2% decline expected. Home
prices continued to rebound, up for a third straight month in July,
after a three-year slide.
At 14:20 IST, the BSE 30-share Sensex was up 238.37 points or 1.41%
to 17091.28. The Sensex rose 253.89 points at the day's high of
17,106.80 in mid-afternoon trade, its highest since 21 May 2008.
The barometer index rose 15.55 points at the day's low of 16,868.46
in early trade.
The S&P CNX Nifty was up 65.75 points or 1.31 % to 5,072.60. It hit
a high of 5,076.35 so far in the day, its highest level since 22
May 2008.
The market breadth, indicating the overall health of the market was
strong. On BSE, 1,535 shares rose as compared with 1,126 that
declined. A total of 86 shares remained unchanged.
Among the 30-member Sensex pack, 25 rose and rest fell.
The BSE Mid-Cap index rose 0.66% and the BSE Small-Cap index rose
1.02%.
Index heavyweight Reliance Industries (RIL) rose 1.8% to Rs
2204.90. In the face of opposition from the Power Ministry and Anil
Ambani group firm Reliance Infrastructure on the marketing margins
charged, Reliance Industries (RIL) has justified the levy saying it
was essential to cover risks and costs incurred in marketing of
gas.
Terming as illegal the market margin, Reliance Infra had refused to
pay the levy prompting RIL to issue a notice for suspension of fuel
supply for "default". NTPC has sought to know whether the margins
levied by RIL had government's approval.
RIL had said on 24 September 2009 it has signed gas supply
agreement with state-run utility NTPC to supply gas for some of its
power plants for five years. Reliance will supply 0.61 million
standard cubic metres a day (mscmd) to NTPC, and expects to start
supplies within a week.
Meanwhile, recent report suggest the outlook for Asian oil
refiners, previously hit by a sharp fall in margins, is now
improving on a likely ramp-up in demand and slowing capacity
expansion.
Oil exploration stocks were mixed on a decent debut of Oil India.
India's biggest state-run oil exploration firm by revenue Oil &
Natural Gas Corporation (ONGC) fell 1.36% to Rs 1170, off the day's
high of Rs 1213. ONGC on 23 September 2009 said it will invest over
Rs 5000 crore in the next two years in bringing new oil and gas
finds into production. Cairn India rose 0.42%.
India's second biggest oil and gas exploration firm by revenue Oil
India was trading at Rs 1,146.85, a premium of 9.22% over the IPO
price of Rs 1050. The stock debuted on the BSE at Rs 1019, a
discount of 2.95% over the IPO price of Rs 1050.
Metal stocks rose as LMEX, a gauge of six metals traded on the
London Metal Exchange gained 0.25% on Tuesday, 29 September 2009.
Tata Steel, Steel Authority of India, National Aluminum Company,
Hindustan Zinc, Hindalco Industries, JSW Steel rose by between
0.02% to 1.43%.
India's largest copper maker by sales Sterlite Industries rose
2.94%. A US bankruptcy judge on 24 September 2009 rejected attempts
by India's Sterlite Industries to sweeten its offer for U.S. copper
miner Asarco LLC, and recommended for the second time that rival
bidder Grupo Mexico SAB de CV regain control of the company.
Sterlite, however, maintained it was still in the race to acquire
the copper miner.
Sterlite said on 21 September 2009 said that it would release Grupo
Mexico from a potential legal liability of nearly $8 billion if the
Indian miner can win control of bankrupt US copper miner Asarco
LLC.
In a court document filed on Monday, Sterlite said that if a
federal court approves its plan to acquire Asarco over rival bidder
Grupo Mexico's offer, it would not hold Grupo Mexico liable for
more than about $900 million of liability related to the 2003
transfer of a Peruvian mine. Sterlite, a unit of India-focused
mining company Vedanta Resources, has been facing off with Mexican
miner Grupo Mexico for acquiring control Asarco, which has been
under bankruptcy protection since 2005.
Banking stocks rose after Finance secretary Ashok Chawla on Tuesday
said there is a need to look at consolidation of banks and that
government is not discouraging Indian banks from making
acquisitions abroad. Bank stocks also got support on higher advance
tax payment by some top banks in the second installment this
fiscal.
India's largest bank by net profit and branch network State Bank of
India rose 4%. Chairman O.P. Bhatt on 8 September 2009 said the
bank's earnings are likely to grow 30-35% in Q2 September 2009 over
Q2 September 2008.
India's largest private sector bank by net profit ICICI Bank rose
3.12%. Its ADR rose 0.28% on Tuesday. India's second largest
private sector bank by net profit HDFC Bank rose 1.49% even as its
ADR fell 0.26% on Tuesday.
IT stocks rose for the second straight day as an increase in the
mergers & acquisitions in the United States suggested that
companies are more optimistic about the business outlook. US is the
biggest market for Indian IT firms. India's third largest software
services exporter by sales Wipro rose 3.11% as its American
depository receipt (ADR) rose 1.45% on Tuesday.
India's second largest software services exporter by sales Infosys
rose 1.28% as its ADR rose 0.42% on Tuesday.
India's largest IT exporter by sales Tata Consultancy Services rose
1.45% after the company said before market hours today it had
signed a multi-million dollar deal with a Singapore state
organisation to provide annual application management services for
two years.
A news agency recently quoted TCS chief executive S. Ramadorai as
saying that the company expects a recovery in the global banking
sector to boost its revenues this year. Ramadorai said the company
was seeing some signs of a recovery in the demand for outsourcing,
especially from the banking, financial services and insurance
sectors that account for 43% of its business.
India's largest engineering and construction firm by sales Larsen &
Toubro rose 1.92% on reports company is close to launching a $600
million share sale to institutional investors. Citigroup, Morgan
Stanley and Bank of America Merrill Lynch are the arrangers to the
offer.
Meanwhile, Larsen & Toubro is reportedly eyeing big bucks from the
nuclear power business with annual revenue projections of Rs
7,000-8,000 crore. The company, has already entered into agreement
with four major global vendors of nuclear power equipment.
India's largest power equipment maker by sales Bharat Heavy
Electricals rose 2.29% after the company said on Wednesday it had
won a Rs 270 crore ($56 million) contract in Belarus to build a 120
megawatts power plant.
Dr Reddys Laboratories fell 2.08% after the company voluntarily
recalled four products from its key US market as they had been
observed to contain some oversized tablets.
upward journey in mid-afternoon trade. Optimism about Q2 September
2009 which will start trickling in from the second week of October
2009, gains in European stocks and higher US index futures,
bolstered sentiment. The BSE 30-share Sensex was up 238.37 points
or 1.41%. The barometer index was trading above the psychological
17,000 level after crossing that level in morning trade. The BSE
Sensex and the S&P CNX Nifty today hit their highest level in more
than 16 months.
After a modest start, the market surged in mid-morning trade. The
market extended gains later. The market hit a fresh intraday high
in afternoon trade. A small correction pulled the market lower
later. The market surged in mid-afternoon trade with the Sensex
hitting a fresh intraday high on higher US index futures.
Metal, banking and IT stocks led the rally. Oil India was currently
trading at a premium of 9.25% over the IPO price of Rs 1,050.
Traders may refrain from building large positions this week because
this is a truncated trading week as the market remains closed on
Friday, 2 October 2009, on account of Gandhi Jayanti. Further,
shares bought in the cash segment on Tuesday, 29 September 2009,
cannot be sold today, 30 September 2009, due to settlement related
issues because commercial banks are closed today for half-yearly
closing of accounts.
There is optimism about Q2 September 2009 results after advance tax
collections registered a positive growth in the second quarter
after witnessing a negative growth in the first quarter. Corporate
advance tax and advance personal income-tax were up by 14.7% and
1.7%, respectively in the September 2009 quarter. Infosys
kickstarts the reporting season on 9 October 2009.
Latest economic data has been strong. The index of six core
industries having a combined weight of 26.7% in the index of
industrial production (IIP) registered a growth of 7.1% in August
2009 compared to a growth of 2.1% in August 2008. During
April-August 2009-10, six core industries registered a growth of
4.8% as against 3.3% during the corresponding period of the
previous year. Coal and cement sector boosted overall growth in the
six infrastructure industries in August 2009.
Meanwhile, the Reserve Bank of India (RBI) deputy governor K C
Chakrabarty has said that rising inflationary pressures could limit
the scope for a sustained growth supported monetary policy stance.
The central bank has aggressively cut policy rates and pumped huge
liquidity in the system in the aftermath of the global financial
crisis last year. It may be recalled Finance Minister Pranab
Mukherjee recently spoke of the need for the fiscal stimulus to
continue for a few more quarters until the economy is back on
track.
Coming back to equities, a section of the market is, however,
concerned that a glut in share sales may suck liquidity from the
secondary market. The corporate sector has raised large sums of
money through equity and equity related instruments in the past six
months or so to either to retire high cost debt or to fund
expansion. The supply of paper by Indian firms appear limitless,
raising concerns that additional share sales will suck liquidity
from the secondary market.
As per one report, companies plan to raise at least Rs 40,000 crore
through initial public offers (IPOs)/follow on public offers (FPOs)
in the second half of the current financial year. Power companies
such as GMR Energy, Indiabulls Power and JSW Energy and state-run
Bharat Heavy Electricals and NTPC are likely to tap the primary
market. Reliance Infratel also announced on Tuesday, 22 September
2009, its intention to raise Rs 5,000 crore from the primary
market. A number of companies are also in the fray to raise funds
by way of qualified institutional placement (QIP), reports suggest.
S. Pradhan, the joint secretary of the department of disinvestment,
Government of India, today said the government plans to sell stakes
in at least five state-run firms by the end of the fiscal year in
March 2010 following successful IPOs of two firms that raised $1.8
billion. His statement comes close on the heels of media reports
that the government is planning to announce a blueprint for selling
its stake in state-owned firms in the first week of October 2009.
The policy is expected to suggest how the government will
eventually bring down its stake in public sector companies to 75%
over a period of time.
European shares rose on Wednesday powered by gains in energy and
mining stocks, as commodity prices firmed on the final day of the
quarter, offsetting weakness in banks. The key benchmark indices in
France, Germany and UK were up by between 0.24% to 0.5%.
Asian stocks were mixed after a surprise fall in US consumer
confidence. Key benchmark indices in Japan, South Korea Hong Kong
and Singapore were down by between 0.39% to 1%. Key benchmark
indices in China, Japan and Taiwan were up by between 0.33% to
1.07%.
A gauge of China's manufacturing activity released Wednesday
indicated expansion for the sixth straight month in September,
although conditions cooled slightly from August, suggesting the
rebound in industrial activity remains intact but is beginning to
level off.
Japanese manufacturers increased production for a sixth month in
August, capping the longest stretch of gains in 12 years, as
emergency spending by governments worldwide rekindled global trade.
Factory output rose 1.8% last month after climbing 2.1% in July,
the Trade Ministry said today in Tokyo.
The International Monetary Fund (IMF) will reportedly raise its
2010 growth forecast for the world economy to 3.1% from 2.5% to
reflect improving economic conditions. The IMF is due to update its
forecasts in its World Economic Outlook to be released in Istanbul
on Thursday, 1 October 2009. The IMF is likely to revise its global
forecast for this year to a 1.1% contraction from a negative 1.4%
predicted earlier.
Trading in US index futures indicated the Dow could gain 31 points
at the bell on Wednesday, 30 September 2009.
US markets ended lower on Tuesday, 29 September 2009 as a drop in
consumer confidence dragged on the market. The Dow Jones Industrial
Average fell 47.16 points, or 0.5%, to 9,742.20. The S&P 500 index
dropped 2.38 points, or 0.2%, to 1,060.60, and the Nasdaq Composite
index shed 6.70 points, or 0.3%, to 2,124.04.
The US consumer-confidence index dropped to 53.1 in September from
54.5 in August. Economists had expected the gauge to rise to 57.
Meanwhile, the S&P/case-shiller home price report for July was
better-than-expected. The report showed a 13.3% year-over-year
decline, which was better than the 14.2% decline expected. Home
prices continued to rebound, up for a third straight month in July,
after a three-year slide.
At 14:20 IST, the BSE 30-share Sensex was up 238.37 points or 1.41%
to 17091.28. The Sensex rose 253.89 points at the day's high of
17,106.80 in mid-afternoon trade, its highest since 21 May 2008.
The barometer index rose 15.55 points at the day's low of 16,868.46
in early trade.
The S&P CNX Nifty was up 65.75 points or 1.31 % to 5,072.60. It hit
a high of 5,076.35 so far in the day, its highest level since 22
May 2008.
The market breadth, indicating the overall health of the market was
strong. On BSE, 1,535 shares rose as compared with 1,126 that
declined. A total of 86 shares remained unchanged.
Among the 30-member Sensex pack, 25 rose and rest fell.
The BSE Mid-Cap index rose 0.66% and the BSE Small-Cap index rose
1.02%.
Index heavyweight Reliance Industries (RIL) rose 1.8% to Rs
2204.90. In the face of opposition from the Power Ministry and Anil
Ambani group firm Reliance Infrastructure on the marketing margins
charged, Reliance Industries (RIL) has justified the levy saying it
was essential to cover risks and costs incurred in marketing of
gas.
Terming as illegal the market margin, Reliance Infra had refused to
pay the levy prompting RIL to issue a notice for suspension of fuel
supply for "default". NTPC has sought to know whether the margins
levied by RIL had government's approval.
RIL had said on 24 September 2009 it has signed gas supply
agreement with state-run utility NTPC to supply gas for some of its
power plants for five years. Reliance will supply 0.61 million
standard cubic metres a day (mscmd) to NTPC, and expects to start
supplies within a week.
Meanwhile, recent report suggest the outlook for Asian oil
refiners, previously hit by a sharp fall in margins, is now
improving on a likely ramp-up in demand and slowing capacity
expansion.
Oil exploration stocks were mixed on a decent debut of Oil India.
India's biggest state-run oil exploration firm by revenue Oil &
Natural Gas Corporation (ONGC) fell 1.36% to Rs 1170, off the day's
high of Rs 1213. ONGC on 23 September 2009 said it will invest over
Rs 5000 crore in the next two years in bringing new oil and gas
finds into production. Cairn India rose 0.42%.
India's second biggest oil and gas exploration firm by revenue Oil
India was trading at Rs 1,146.85, a premium of 9.22% over the IPO
price of Rs 1050. The stock debuted on the BSE at Rs 1019, a
discount of 2.95% over the IPO price of Rs 1050.
Metal stocks rose as LMEX, a gauge of six metals traded on the
London Metal Exchange gained 0.25% on Tuesday, 29 September 2009.
Tata Steel, Steel Authority of India, National Aluminum Company,
Hindustan Zinc, Hindalco Industries, JSW Steel rose by between
0.02% to 1.43%.
India's largest copper maker by sales Sterlite Industries rose
2.94%. A US bankruptcy judge on 24 September 2009 rejected attempts
by India's Sterlite Industries to sweeten its offer for U.S. copper
miner Asarco LLC, and recommended for the second time that rival
bidder Grupo Mexico SAB de CV regain control of the company.
Sterlite, however, maintained it was still in the race to acquire
the copper miner.
Sterlite said on 21 September 2009 said that it would release Grupo
Mexico from a potential legal liability of nearly $8 billion if the
Indian miner can win control of bankrupt US copper miner Asarco
LLC.
In a court document filed on Monday, Sterlite said that if a
federal court approves its plan to acquire Asarco over rival bidder
Grupo Mexico's offer, it would not hold Grupo Mexico liable for
more than about $900 million of liability related to the 2003
transfer of a Peruvian mine. Sterlite, a unit of India-focused
mining company Vedanta Resources, has been facing off with Mexican
miner Grupo Mexico for acquiring control Asarco, which has been
under bankruptcy protection since 2005.
Banking stocks rose after Finance secretary Ashok Chawla on Tuesday
said there is a need to look at consolidation of banks and that
government is not discouraging Indian banks from making
acquisitions abroad. Bank stocks also got support on higher advance
tax payment by some top banks in the second installment this
fiscal.
India's largest bank by net profit and branch network State Bank of
India rose 4%. Chairman O.P. Bhatt on 8 September 2009 said the
bank's earnings are likely to grow 30-35% in Q2 September 2009 over
Q2 September 2008.
India's largest private sector bank by net profit ICICI Bank rose
3.12%. Its ADR rose 0.28% on Tuesday. India's second largest
private sector bank by net profit HDFC Bank rose 1.49% even as its
ADR fell 0.26% on Tuesday.
IT stocks rose for the second straight day as an increase in the
mergers & acquisitions in the United States suggested that
companies are more optimistic about the business outlook. US is the
biggest market for Indian IT firms. India's third largest software
services exporter by sales Wipro rose 3.11% as its American
depository receipt (ADR) rose 1.45% on Tuesday.
India's second largest software services exporter by sales Infosys
rose 1.28% as its ADR rose 0.42% on Tuesday.
India's largest IT exporter by sales Tata Consultancy Services rose
1.45% after the company said before market hours today it had
signed a multi-million dollar deal with a Singapore state
organisation to provide annual application management services for
two years.
A news agency recently quoted TCS chief executive S. Ramadorai as
saying that the company expects a recovery in the global banking
sector to boost its revenues this year. Ramadorai said the company
was seeing some signs of a recovery in the demand for outsourcing,
especially from the banking, financial services and insurance
sectors that account for 43% of its business.
India's largest engineering and construction firm by sales Larsen &
Toubro rose 1.92% on reports company is close to launching a $600
million share sale to institutional investors. Citigroup, Morgan
Stanley and Bank of America Merrill Lynch are the arrangers to the
offer.
Meanwhile, Larsen & Toubro is reportedly eyeing big bucks from the
nuclear power business with annual revenue projections of Rs
7,000-8,000 crore. The company, has already entered into agreement
with four major global vendors of nuclear power equipment.
India's largest power equipment maker by sales Bharat Heavy
Electricals rose 2.29% after the company said on Wednesday it had
won a Rs 270 crore ($56 million) contract in Belarus to build a 120
megawatts power plant.
Dr Reddys Laboratories fell 2.08% after the company voluntarily
recalled four products from its key US market as they had been
observed to contain some oversized tablets.
Sensex crosses 17,000 mark
The key benchmark indices extended gains in mid-morning trade. The
BSE 30-share Sensex was up 172.84 points or 1.03%. The BSE Sensex
crossed psychological 17,000 mark. The BSE Sensex and S&P CNX Nifty
hit their highest level in more than 16 months. IT, auto and
banking stocks rose. Oil exploration stocks also in demand after a
decent debut from state-run Oil India. The stock was currently
trading at a premium of 7.87% over the IPO price of Rs 1,050. The
market breadth was strong.
Overall volumes on the bourses may remain low as traders may
refrain from building large positions this week because this is a
truncated trading week as the market remains closed on Friday, 2
October 2009, on account of Gandhi Jayanti. Further, shares bought
in the cash segment on Tuesday, 29 September 2009, cannot be sold
today, 30 September 2009, due to settlement related issues because
commercial banks are closed today for half-yearly closing of
accounts
Meanwhile government disinvestment official said sees at least 5
stake sales in state firms by March 2010. Meanwhile, the government
is reportedly planning to announce a blueprint for selling its
stake in state-owned firms in the first week of October 2009. The
policy is expected to suggest how the government will eventually
bring down its stake in public sector companies to 75% over a
period of time.
The next trigger for the stock market is Q2 September 2009 results
of India Inc next month. There is optimism about Q2 September 2009
results after advance tax collections registered a positive growth
in the second quarter after witnessing a negative growth in the
first quarter. Corporate advance tax and advance personal
income-tax were up by 14.7% and 1.7%, respectively in the September
2009 quarter. Infosys kickstarts the reporting season on 9 October
2009.
Latest economic data has been strong. The index of six core
industries having a combined weight of 26.7% in the index of
industrial production (IIP) registered a growth of 7.1% in August
2009 compared to a growth of 2.1% in August 2008. During
April-August 2009-10, six core industries registered a growth of
4.8% as against 3.3% during the corresponding period of the
previous year. Coal and cement sector boosted overall growth in the
six infrastructure industries in August 2009.
Meanwhile, the Reserve Bank of India (RBI) deputy governor KC
Chakrabarty has said that rising inflationary pressures could limit
the scope for a sustained growth supported monetary policy stance.
The central bank has aggressively cut policy rates and pumped huge
liquidity in the system in the aftermath of the global financial
crisis last year. It may be recalled Finance Minister Pranab
Mukherjee recently spoke of the need for the fiscal stimulus to
continue for a few more quarters until the economy is back on
track.
Coming back to equities, a section of the market is concerned that
a glut in share sales may suck liquidity from the secondary market.
The corporate sector has raised large sums of money through equity
and equity related instruments in the past six months or so to
either to retire high cost debt or to fund expansion. The supply of
paper by Indian firms appear limitless, raising concerns that
additional share sales will suck liquidity from the secondary
market.
As per one report, companies plan to raise at least Rs 40,000 crore
through initial public offers (IPOs)/follow on public offers (FPOs)
in the second half of the current financial year. Power companies
such as GMR Energy, Indiabulls Power and JSW Energy and state-run
Bharat Heavy Electricals and NTPC are likely to tap the primary
market. Reliance Infratel also announced on Tuesday, 22 September
2009, its intention to raise Rs 5,000 crore from the primary
market. A number of companies are also in the fray to raise funds
by way of qualified institutional placement (QIP), reports suggest.
Most Asian stocks were mixed in volatile trade after a surprise
fall in U.S. consumer confidence. The key benchmark indices in
Japan, South Korea Hong Kong and Singapore fell by between 0.51% to
0.93%. Key benchmark indices in China, Japan and Taiwan were up by
between 0.01% to 1.46%.
Trading in US index futures indicated Dow could open flat today, 30
September 2009.
US markets ended lower on Tuesday, 29 September 2009 as a drop in
consumer confidence dragged on the market. The Dow Jones Industrial
Average fell 47.16 points, or 0.5%, to 9,742.20. The S&P 500 index
dropped 2.38 points, or 0.2%, to 1,060.60, and the Nasdaq Composite
index shed 6.70 points, or 0.3%, to 2,124.04.
The US consumer-confidence index dropped to 53.1 in September from
54.5 in August. Economists had expected the gauge to rise to 57.
Meanwhile, the S&P/case-shiller home price report for July was
better-than-expected. The report showed a 13.3% year-over-year
decline, which was better than the 14.2% decline expected. Home
prices continued to rebound, up for a third straight month in July,
after a three-year slide.
At 11:20 IST, the BSE 30-share Sensex was up 172.84 points or 1.03%
to 17025.75. The Sensex rose 175.88 points at the day's high of
17,028.79 in morning trade, its highest since 23 May 2008. The
barometer index rose 15.55 points at the day's low of 16,868.46 in
early trade.
The S&P CNX Nifty was up 40.85 points or 0.82 % to 5,047.70. It hit
a high of 5,051.40 its highest level since 23 May 2008.
The market breadth, indicating the overall health of the market was
strong. On BSE, 1355 shares rose as compared with 806 that
declined. A total of 65 shares remained unchanged.
Among the 30-member Sensex pack, 25 rose and rest fell.
The BSE Mid-Cap index rose 0.59% and the BSE Small-Cap index rose
0.8%.
BSE 30-share Sensex was up 172.84 points or 1.03%. The BSE Sensex
crossed psychological 17,000 mark. The BSE Sensex and S&P CNX Nifty
hit their highest level in more than 16 months. IT, auto and
banking stocks rose. Oil exploration stocks also in demand after a
decent debut from state-run Oil India. The stock was currently
trading at a premium of 7.87% over the IPO price of Rs 1,050. The
market breadth was strong.
Overall volumes on the bourses may remain low as traders may
refrain from building large positions this week because this is a
truncated trading week as the market remains closed on Friday, 2
October 2009, on account of Gandhi Jayanti. Further, shares bought
in the cash segment on Tuesday, 29 September 2009, cannot be sold
today, 30 September 2009, due to settlement related issues because
commercial banks are closed today for half-yearly closing of
accounts
Meanwhile government disinvestment official said sees at least 5
stake sales in state firms by March 2010. Meanwhile, the government
is reportedly planning to announce a blueprint for selling its
stake in state-owned firms in the first week of October 2009. The
policy is expected to suggest how the government will eventually
bring down its stake in public sector companies to 75% over a
period of time.
The next trigger for the stock market is Q2 September 2009 results
of India Inc next month. There is optimism about Q2 September 2009
results after advance tax collections registered a positive growth
in the second quarter after witnessing a negative growth in the
first quarter. Corporate advance tax and advance personal
income-tax were up by 14.7% and 1.7%, respectively in the September
2009 quarter. Infosys kickstarts the reporting season on 9 October
2009.
Latest economic data has been strong. The index of six core
industries having a combined weight of 26.7% in the index of
industrial production (IIP) registered a growth of 7.1% in August
2009 compared to a growth of 2.1% in August 2008. During
April-August 2009-10, six core industries registered a growth of
4.8% as against 3.3% during the corresponding period of the
previous year. Coal and cement sector boosted overall growth in the
six infrastructure industries in August 2009.
Meanwhile, the Reserve Bank of India (RBI) deputy governor KC
Chakrabarty has said that rising inflationary pressures could limit
the scope for a sustained growth supported monetary policy stance.
The central bank has aggressively cut policy rates and pumped huge
liquidity in the system in the aftermath of the global financial
crisis last year. It may be recalled Finance Minister Pranab
Mukherjee recently spoke of the need for the fiscal stimulus to
continue for a few more quarters until the economy is back on
track.
Coming back to equities, a section of the market is concerned that
a glut in share sales may suck liquidity from the secondary market.
The corporate sector has raised large sums of money through equity
and equity related instruments in the past six months or so to
either to retire high cost debt or to fund expansion. The supply of
paper by Indian firms appear limitless, raising concerns that
additional share sales will suck liquidity from the secondary
market.
As per one report, companies plan to raise at least Rs 40,000 crore
through initial public offers (IPOs)/follow on public offers (FPOs)
in the second half of the current financial year. Power companies
such as GMR Energy, Indiabulls Power and JSW Energy and state-run
Bharat Heavy Electricals and NTPC are likely to tap the primary
market. Reliance Infratel also announced on Tuesday, 22 September
2009, its intention to raise Rs 5,000 crore from the primary
market. A number of companies are also in the fray to raise funds
by way of qualified institutional placement (QIP), reports suggest.
Most Asian stocks were mixed in volatile trade after a surprise
fall in U.S. consumer confidence. The key benchmark indices in
Japan, South Korea Hong Kong and Singapore fell by between 0.51% to
0.93%. Key benchmark indices in China, Japan and Taiwan were up by
between 0.01% to 1.46%.
Trading in US index futures indicated Dow could open flat today, 30
September 2009.
US markets ended lower on Tuesday, 29 September 2009 as a drop in
consumer confidence dragged on the market. The Dow Jones Industrial
Average fell 47.16 points, or 0.5%, to 9,742.20. The S&P 500 index
dropped 2.38 points, or 0.2%, to 1,060.60, and the Nasdaq Composite
index shed 6.70 points, or 0.3%, to 2,124.04.
The US consumer-confidence index dropped to 53.1 in September from
54.5 in August. Economists had expected the gauge to rise to 57.
Meanwhile, the S&P/case-shiller home price report for July was
better-than-expected. The report showed a 13.3% year-over-year
decline, which was better than the 14.2% decline expected. Home
prices continued to rebound, up for a third straight month in July,
after a three-year slide.
At 11:20 IST, the BSE 30-share Sensex was up 172.84 points or 1.03%
to 17025.75. The Sensex rose 175.88 points at the day's high of
17,028.79 in morning trade, its highest since 23 May 2008. The
barometer index rose 15.55 points at the day's low of 16,868.46 in
early trade.
The S&P CNX Nifty was up 40.85 points or 0.82 % to 5,047.70. It hit
a high of 5,051.40 its highest level since 23 May 2008.
The market breadth, indicating the overall health of the market was
strong. On BSE, 1355 shares rose as compared with 806 that
declined. A total of 65 shares remained unchanged.
Among the 30-member Sensex pack, 25 rose and rest fell.
The BSE Mid-Cap index rose 0.59% and the BSE Small-Cap index rose
0.8%.
Tuesday, May 19, 2009
Sensex off 775 points from the day's high
The key benchmark indices slipped into the red on profit taking
after a sharp surge at the onset of the trading session. The BSE
30-share Sensex was down 294.38 points or 2.06%, off close to 775
points from the day's high and up close to 150 points from the
day's low. Banking and IT stocks fell.
The wild swings in early trade followed a historic rally on Monday,
18 May 2009, when the key indices viz. the BSE Sensex and the S&P
CNX Nifty surged more than 17% each on hopes a new stable
government will be able to push reforms. Strong global cues may
further aid the rally.
A clear mandate for the Congress-led United Progressive Alliance
(UPA) has boosted hopes a strong coalition would be able to push
through economic reforms that would boost foreign investment.
Prime Minister Manmohan Singh's coalition defied predictions of a
tight election and was only about 11 seats short of an majority
from the 543 seats at stake. Congress' alliance took 261 seats,
sweeping aside its nearest rival, the bloc led by the
Hindu-nationalist Bharatiya Janata Party (BJP), which won only 159
combined. Congress, which alone won 205 seats, needs a handful of
partners to reach the 272 seats needed to take power, and is
expected to seek the support of more smaller parties or
independents.
Meanwhile, Dr Manmohan Singh met President Pratibha Patil on Monday
and submitted the resignations of his Council of Ministers.
Manmohan Singh formally stepped down as the Prime Minister.
President Pratibha Patil on Monday dissolved the 14th Lok Sabha
with immediate effect and asked the Prime Minister and his Council
of Ministers to continue in office till the new government is
formed. The President is expected to today, 19 May 2009, invite Dr.
Singh to form the next government.
Armed with a decisive mandate, Manmohan Singh will meet the
President to show the UPA alliance has the numbers, and formally
stake claim to form a new government at the Centre.
Financial sector reforms are likely to get a push in the coming
days, which were relegated to the back seat due to persistent
opposition from the Left parties, with the Congress-led UPA set to
form the next government.
A near term trigger for the market will be allocation of portfolios
in the new government. It remains to be seen who gets the key
ministries viz. power, transport and education sectors. Analysts
say growth in these three sectors are key for India to achieve
strong economic growth. If those seen as strong performers are
given charge of these three ministries, the market may extend
gains.
As per reports, Congress's strong showing in election means
reformers will almost certainly be named to key ministerial
portfolios, including finance, trade, defence and foreign affairs.
The ministers should be named this week. Fresh reformist faces may
also join the cabinet for the first time, including Rahul Gandhi,
heir to the powerful Gandhi dynasty and seen as pushing a new
generation of leaders into the Congress.
As per market talks, P Chidambaram could retain his home portfolio.
Among the contenders for the finance ministry are C Rangarajan, an
economic adviser to the prime minister, Montek Singh Ahluwalia,
deputy chairman of the Planning Commission, Trade Minister Kamal
Nath, and External Affairs Minister Pranab Mukherjee.
According to analysts the new government should give priority to
reforming the subsidy mechanism which is aimed at improving
delivery mechanism while at the same time reducing costs. Restoring
fiscal health is also required. In this regard, disinvestment is an
immediate channel for raising funds
Foreign funds have bought aggressively in Indian stocks in the
recent past. FII inflow in May 2009 totaled Rs 10,270.60 crore in
May 2009 (till 15 May 2009) while their inflow in calendar year
2009 totaled Rs 10,627.20 crore.
Asian stocks rose today as higher confidence among US homebuilders,
a surge in oil prices and a drop in bank borrowing costs stoked
optimism the global economy is recovering. Key benchmark indices in
China, Hong Kong, Japan, South Korea, Singapore and Taiwan, rose by
between 0.91% to 3.34%.
US markets on Monday, 18 May 2009 closed at the session's high
helped by banks and financial services stocks. The Dow gained
235.44 points, or 2.9%, to 8,504.08. The S&P 500 index gained 26.83
points, or 3%, to 909.71. The Nasdaq composite index added 52.22
points, or 3.1%, to 1,732.36. A reading showed home builder
sentiment rose for the second month in a row and at the highest
level since September 2008.
At 10:07 IST, The BSE 30-share Sensex was down 294.38 points or
2.06% to 13,989.83. The Sensex rose 473.61 points at the day's high
of 14.757.82 in early trade. At the day's low of 13,834.13, the
Sensex fell 450.08 points in early trade.
The S&P CNX Nifty was down 123.55 points or 2.86% to 4,199.60.
The market breadth, indicating the overall health of the market,
was positive. On BSE, 851 shares rose as compared with 654 that
fell. A total of 83 shares remained unchanged.
From the 30 share Sensex pack, 20 stocks fell while rest gained.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 2.68% to Rs 2290 on
profit taking after a recent sharp surge. Analysts expect strong
growth in bottom line in coming quarters from sale of gas which it
started pumping last month from its deep-sea field off the east
coast.
Banking stocks fell on profit taking after a recent sharp surge.
India's largest private sector bank by net profit ICICI Bank fell
1.37% even as its American depository receipt (ADR) rose 25.22% on
Monday, 18 May 2009.
India's second largest private sector bank by operating income HDFC
Bank was down 3.91% even as its ADR rose 21.29% overnight.
But India's biggest bank in terms of branch network State Bank of
India was up 2.55%. State Bank of India has cut interest rates on
deposits by up to 50 basis points effective Monday, 18 May 2009.
India's biggest dedicated housing finance firm by operating income
HDFC was down 0.5%. As per recent reports, HDFC is likely to cut
deposit rates and follow it with a cut in lending rates
Outsourcing focussed IT stocks fell on a stronger rupee. India's
second largest software services exporter by sales Infosys fell
9.03% even after its American depository receipt (ADR) rose 8.99%
overnight.
India's largest software services exporter by sales TCS fell 4.89%.
TCS last week it has been selected for a five-year IT services
contract for auto maker Volkswagen group's operations in the United
Kingdom.
India's third largest software services exporter by sales Wipro
rose fell 7.45% even after its ADR rose 7.48% overnight.
The rupee rose to five-month high on Tuesday, extending a 3.2%
rally in the previous session, after a win for the ruling coalition
in elections boosted hopes for reforms and foreign investment. The
partially convertible rupee was at 47.36/37 against the dollar, 1.1
% above Monday's close of 47.88/90. A stronger rupee affects
operating margins of IT firms negatively as they derive maximum
revenue from US.
after a sharp surge at the onset of the trading session. The BSE
30-share Sensex was down 294.38 points or 2.06%, off close to 775
points from the day's high and up close to 150 points from the
day's low. Banking and IT stocks fell.
The wild swings in early trade followed a historic rally on Monday,
18 May 2009, when the key indices viz. the BSE Sensex and the S&P
CNX Nifty surged more than 17% each on hopes a new stable
government will be able to push reforms. Strong global cues may
further aid the rally.
A clear mandate for the Congress-led United Progressive Alliance
(UPA) has boosted hopes a strong coalition would be able to push
through economic reforms that would boost foreign investment.
Prime Minister Manmohan Singh's coalition defied predictions of a
tight election and was only about 11 seats short of an majority
from the 543 seats at stake. Congress' alliance took 261 seats,
sweeping aside its nearest rival, the bloc led by the
Hindu-nationalist Bharatiya Janata Party (BJP), which won only 159
combined. Congress, which alone won 205 seats, needs a handful of
partners to reach the 272 seats needed to take power, and is
expected to seek the support of more smaller parties or
independents.
Meanwhile, Dr Manmohan Singh met President Pratibha Patil on Monday
and submitted the resignations of his Council of Ministers.
Manmohan Singh formally stepped down as the Prime Minister.
President Pratibha Patil on Monday dissolved the 14th Lok Sabha
with immediate effect and asked the Prime Minister and his Council
of Ministers to continue in office till the new government is
formed. The President is expected to today, 19 May 2009, invite Dr.
Singh to form the next government.
Armed with a decisive mandate, Manmohan Singh will meet the
President to show the UPA alliance has the numbers, and formally
stake claim to form a new government at the Centre.
Financial sector reforms are likely to get a push in the coming
days, which were relegated to the back seat due to persistent
opposition from the Left parties, with the Congress-led UPA set to
form the next government.
A near term trigger for the market will be allocation of portfolios
in the new government. It remains to be seen who gets the key
ministries viz. power, transport and education sectors. Analysts
say growth in these three sectors are key for India to achieve
strong economic growth. If those seen as strong performers are
given charge of these three ministries, the market may extend
gains.
As per reports, Congress's strong showing in election means
reformers will almost certainly be named to key ministerial
portfolios, including finance, trade, defence and foreign affairs.
The ministers should be named this week. Fresh reformist faces may
also join the cabinet for the first time, including Rahul Gandhi,
heir to the powerful Gandhi dynasty and seen as pushing a new
generation of leaders into the Congress.
As per market talks, P Chidambaram could retain his home portfolio.
Among the contenders for the finance ministry are C Rangarajan, an
economic adviser to the prime minister, Montek Singh Ahluwalia,
deputy chairman of the Planning Commission, Trade Minister Kamal
Nath, and External Affairs Minister Pranab Mukherjee.
According to analysts the new government should give priority to
reforming the subsidy mechanism which is aimed at improving
delivery mechanism while at the same time reducing costs. Restoring
fiscal health is also required. In this regard, disinvestment is an
immediate channel for raising funds
Foreign funds have bought aggressively in Indian stocks in the
recent past. FII inflow in May 2009 totaled Rs 10,270.60 crore in
May 2009 (till 15 May 2009) while their inflow in calendar year
2009 totaled Rs 10,627.20 crore.
Asian stocks rose today as higher confidence among US homebuilders,
a surge in oil prices and a drop in bank borrowing costs stoked
optimism the global economy is recovering. Key benchmark indices in
China, Hong Kong, Japan, South Korea, Singapore and Taiwan, rose by
between 0.91% to 3.34%.
US markets on Monday, 18 May 2009 closed at the session's high
helped by banks and financial services stocks. The Dow gained
235.44 points, or 2.9%, to 8,504.08. The S&P 500 index gained 26.83
points, or 3%, to 909.71. The Nasdaq composite index added 52.22
points, or 3.1%, to 1,732.36. A reading showed home builder
sentiment rose for the second month in a row and at the highest
level since September 2008.
At 10:07 IST, The BSE 30-share Sensex was down 294.38 points or
2.06% to 13,989.83. The Sensex rose 473.61 points at the day's high
of 14.757.82 in early trade. At the day's low of 13,834.13, the
Sensex fell 450.08 points in early trade.
The S&P CNX Nifty was down 123.55 points or 2.86% to 4,199.60.
The market breadth, indicating the overall health of the market,
was positive. On BSE, 851 shares rose as compared with 654 that
fell. A total of 83 shares remained unchanged.
From the 30 share Sensex pack, 20 stocks fell while rest gained.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 2.68% to Rs 2290 on
profit taking after a recent sharp surge. Analysts expect strong
growth in bottom line in coming quarters from sale of gas which it
started pumping last month from its deep-sea field off the east
coast.
Banking stocks fell on profit taking after a recent sharp surge.
India's largest private sector bank by net profit ICICI Bank fell
1.37% even as its American depository receipt (ADR) rose 25.22% on
Monday, 18 May 2009.
India's second largest private sector bank by operating income HDFC
Bank was down 3.91% even as its ADR rose 21.29% overnight.
But India's biggest bank in terms of branch network State Bank of
India was up 2.55%. State Bank of India has cut interest rates on
deposits by up to 50 basis points effective Monday, 18 May 2009.
India's biggest dedicated housing finance firm by operating income
HDFC was down 0.5%. As per recent reports, HDFC is likely to cut
deposit rates and follow it with a cut in lending rates
Outsourcing focussed IT stocks fell on a stronger rupee. India's
second largest software services exporter by sales Infosys fell
9.03% even after its American depository receipt (ADR) rose 8.99%
overnight.
India's largest software services exporter by sales TCS fell 4.89%.
TCS last week it has been selected for a five-year IT services
contract for auto maker Volkswagen group's operations in the United
Kingdom.
India's third largest software services exporter by sales Wipro
rose fell 7.45% even after its ADR rose 7.48% overnight.
The rupee rose to five-month high on Tuesday, extending a 3.2%
rally in the previous session, after a win for the ruling coalition
in elections boosted hopes for reforms and foreign investment. The
partially convertible rupee was at 47.36/37 against the dollar, 1.1
% above Monday's close of 47.88/90. A stronger rupee affects
operating margins of IT firms negatively as they derive maximum
revenue from US.
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