Indian Stock News by Experts

Silly as it may sound - petrol prices may see huge hike

<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>The government is believed to be considering decontrolling petrol prices, a move that may see rates being hiked by Rs 16-17 a litre, but diesel will continue to be sold at a subsidised price. The relentless rise in international oil prices that last week touched an all-time high of 135 dollars a barrel has forced the government to mull options to save state-run firms, which expect a revenue loss of Rs 200,000 crore this fiscal on sale of petrol, diesel, domestic LPG and kerosene. "One of the options being considered is deregulating petrol prices," an official said. "The country`s preferred auto fuel diesel will, however, continue to be subsidised even though a marginal Rs 2-3 a litre hike in prices may be announced." Petrol is currently being sold at a loss of Rs 16.34 a litre and diesel at Rs 23.49 per litre. Deregulating petrol price would mean that its prices would move in tandem with international prices. He said the move is being considered after Finance Ministry declined Petroleum Ministry`s request for lowering customs duty on crude oil to zero from 5 per cent and that on petrol and diesel to 2.5 per cent from current 7.5 per cent. Oil Ministry had also asked for lowering of excise duty on the two fuels but Finance Ministry is not obliging. Petrol has negligible impact on inflation and so even if it is deregulated it would not contribute the 3-and-half year high inflation rate of over 8 per cent, he said. Diesel on the other hand is used by transport industry and replicating the same for the fuel would have cascading effect on inflation. However, deregulating petrol would lower the revenue losses by just Rs 20,000 crore. Half of the current estimates are on account of diesel rates.</DIV>

Silly as it may sound - petrol prices may see huge hike

The government is believed to be considering decontrolling petrol prices, a move that may see rates being hiked by Rs 16-17 a litre, but diesel will continue to …

27 May 2008

Crude oil surges in early trade

<DIV> Prices of crude oil on futures market on Monday surged 2.66 per cent in the early trade tracking firm Asian market. At 1015 hrs, August contract rose 2.66 per cent at Rs 5,756 per barrel on multi commodity exchange (MCX), June contract moved up 1 per cent at Rs 5,676 per barrel while July contract was marginally up by 0.96 per cent to Rs 5,668 per barrel. Tight supply of crude oil amid the US summer demand put pressure on the prices in the domestic futures market. Global crude prices are volatile due to weak dollar, speculative funds, reluctance by oil-producers to raise production and geo-political tension, oil experts said. London's Brent North Sea crude July delivery was trading 33 cents up at 131.90 dollars a barrel. It touched a record over 135 dollars per barrel last week. Oil Petroleum Exporting Countries (OPEC) secretary general Abdalla Salem el-Badri last week said that weakening dollar and speculators were responsible for surging prices.</DIV>

Crude oil surges in early trade

Prices of crude oil on futures market on Monday surged 2.66 per cent in the early trade tracking firm Asian market.At 1015 hrs, August contract rose 2.66 per cent at Rs 5,7…

27 May 2008

Food prices remain high despite higher output: FAO

<DIV>High food prices have particularly hit vulnerable populations in many countries that spend a substantial part of their income on food, according to a report released today by the UN Food and Agriculture Organization (FAO). The latest Food Outlook indicates that the food import bill of the Low Income Food Deficit Countries (LIFDCs) is expected to reach US$169bn in 2008, 40% more than in 2007. FAO calls the sustained rise in imported food expenditures for vulnerable country groups "a worrying development," and says that by the end of 2008 their annual food import basket could cost four times as much as it did in 2000. International prices of most agricultural commodities have started to decline, but they are unlikely to return to the low price levels of previous years, Food Outlook reports. The FAO food price index has remained stable since February 2008, but the average of the first four months of 2008 is still 53 percent higher when compared to the same period a year ago. Hunger likely to worsen: "Food is no longer the cheap commodity that it once was. Rising food prices are bound to worsen the already unacceptable level of food deprivation suffered by 854 million people," said FAO Assistant Director-General Hafez Ghanem . "We are facing the risk that the number of hungry will increase by many more millions of people." Despite a favourable global production outlook, the expected price decline in many basic agricultural commodities during the new 2008/2009 season is likely to be limited, because of the need to replenish stocks and an increase in utilization. Due to rising utilization, more than one good season is required to replenish stocks and reduce price volatility. Record output expected in 2008 world cereal production: FAO's latest forecast for world cereal production in 2008 points to a record output, now at nearly 2192 million tonnes, including milled rice, up 3.8 percent from 2007. Among major cereals, the tight wheat supply is likely to improve most, given the prospects for better harvests in 2008. Despite record production levels in several crops, tight markets will probably lead to continued price volatility during the season. Heads of State and Government will address the problem of high food prices and the challenges of climate change, bioenergy and food security at the upcoming June summit in Rome (3-5 June 2008). Other Commodity Highlights: Oils and oilseeds The rise in international prices of oilseeds and oilseed products has accelerated in 2007/08, with values climbing to new record levels in March 2008. World markets have tightened considerably as reduced supply growth for oils and a drop in meal supplies are coinciding with further expansion in demand. First forecasts for the 2008/09 season point towards a strong recovery in global oilseed production, and the resulting oil and meal output should be sufficient to meet global demand. Sugar: Generally favourable growing conditions led to a record world sugar production in 2007/08 and although world sugar consumption is foreseen to increase at a sustained rate, it will not be enough to absorb an expected second consecutive global supply surplus. International sugar prices are likely to remain under downward pressure. Meat: Global meat output is expected to grow in 2008 despite high feed prices. Strong economic growth is expected to sustain steadfast consumption in many developing countries. Dairy: Global milk production, which is responding to the past year's high milk product prices, is forecast to grow strongly in 2008. However, there is uncertainty as to where dairy markets will head. Global trade in milk products is anticipated to fall again in 2008 mainly because of reduced exportable supplies. Import demand seems to have faltered because of high dairy product prices due to strong increases in milk output among several importing countries. Fisheries: Food Outlook forecasts that aquaculture production growth will continue this year with the historic milestone of reaching the same level as the expected capture fisheries in 2008. Prices for wild species from capture fisheries are moving upwards strongly but the price increase for farmed species are expected to be more moderate. The potato: Worldwide potato production could expand over the next decade between 2 and 3 percent annually – with developing countries, especially those situated in Sub Saharan Africa, being the main engine of growth. In China, the world's biggest potato producer, authorities are reviewing proposals for the potato to become one of the country's major food crops, while India is considering plans to double potato output in the next five to ten years.</DIV>

Food prices remain high despite higher output: FAO

High food prices have particularly hit vulnerable populations in many countries that spend a substantial part of their income on food, according to a report released today b…

26 May 2008

Govt under pressure to hike fuel prices

<DIV>Here in India, public sector oil marketing companies unleashed a slew of measures to protect their turf given the Government's reluctance to help them limit the damage from the grim business scenario. According to reports, state-run OMCs suspended new LPG connections, curtailed fuel supplies to dealers and increased the sale of branded fuels to cut their losses. HPCL reportedly warned the Government of huge losses for the year while Numaligarh Refinery - a BPCL JV with the Assam Govt - said it will cut supply to dealers by the end of the month. The Government, however said the steps taken by OMCs did not have its stamp of approval. Petroleum Minister Murli Deora met the Prime Minister and sought his help in tiding over the crisis, while the Petroleum Secretary held a meeting with OMC's head honchos to discuss various options at their disposal. The Cabinet did meet on Friday, but didn't take any decision on fuel price hike. The Petroleum Secretary said the Cabinet will take a call on fuel prices over the nest few days. The Petroleum Ministry is seeking a Rs10 per litre increase in petrol and Rs5 a litre hike in diesel prices along with cut in customs and excise duties to curb the impact of surging crude prices. Whether its demand is met or not only time will tell. Even a small hike in fuel prices is bound to generate a lot of hue and cry. The Government is in a major bind as any increase in fuel prices will lift inflation, which crossed 8% in the week ended March 15 (revised). On the other hand, a status quo will mean more blood letting for the oil companies. The most likely scenario is that the Centre will go for a small hike fuel prices, and may also tweak duties and ask upstream companies like ONGC to share more burden of the under-recoveries.</DIV>

Govt under pressure to hike fuel prices

Here in India, public sector oil marketing companies unleashed a slew of measures to protect their turf given the Government's reluctance to help them limit the damage from …

26 May 2008

Crude oil shoots past US$135/bbl

<DIV>Oil prices blazed past the US$135 per barrel mark after a US government report showed a surprising drop in fuel inventories, escalating worries over already fragile global supply scenario. A weak dollar also continued to attract heavy fund buying. To make matters worse, OPEC once again refused to increase supply. OPEC Secretary General Abdullah al-Badri said oil prices could keep rising if factors such as the weakening dollar continue to put pressure on prices. But, he added that OPEC would only act when market fundamentals showed a need to do so. Billionaire investor T. Boone Pickens said he expects oil to hit US$150 a barrel this year. His comments came after at least five banks raised price forecasts in the past week on expectations that supply constraints will persist. Two weeks back, Goldman Sachs said crude oil could touch US$200 by 2010. The International Energy Agency (IEA) said it may cut long-term supply forecasts as fields deplete faster than expected. However, oil prices fell on the last day of the week as traders sold to benefit from a 20% increase in prices since May 1. Crude oil for July delivery rose as much as US$1.57, or 1.2%, to US$132.38 a barrel in New York. It was at US$132.08 a barrel at 10:41 a.m. in London, on Friday. Yesterday, oil fell US$2.36, or 1.8%, to settle at US$130.81 after reaching US$135.09 a barrel, the highest on record. Oil prices are up 4.3% so far this week and have doubled in the last one year. Crude prices are likely to carry on rising, futures prices showed. The December 2016 contract is up 7.9% this week</DIV>

Crude oil shoots past US$135/bbl

Oil prices blazed past the US$135 per barrel mark after a US government report showed a surprising drop in fuel inventories, escalating worries over already fragile global s…

26 May 2008

Global cues, futures & options expiry to dictate trend

<DIV>The market is likely to dance to global tunes in absence of any near term major domestic trigger with Q4 March 2008 results almost over. Expiry of May 2008 futures & options series on Thursday, 29 May 2008 will keep the market volatile. As per reports, rollover of Nifty positions from May 2008 series to June 2008 series stood at 27.50%, as on 23 May 2008. Aggregate results of 1886 companies showed 18.70% rise in net profit on 22.60% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 28.10% rise in net profit on 22% rise in net sales in the year ended March 2008 over year ended March 2007. Forthcoming inflation data will be closely watched as it remains as a major worry and hindrance for the domestic growth. High inflation may compel the government to take more fiscal measures to rein in prices in addition to slew of measures taken recently. Inflation based on the whole price index rose 7.82% in the year through 10 May 2008, marginally lower than 7.83% rise in the previous week, government data released on 23 May 2008, showed. Meanwhile, inflation for the year through 15 March 2008 was revised upwards to 8.02% compared to provisional figure of 6.68%. Foreign institutional investors (FII) sold shares worth Rs 673.40 crore in this month, till 21 May 2008. They sold shares worth Rs 11,031.40 crore in calendar year 2008, till 21 May 2008. Domestic funds sold shares worth Rs 639.80 this month, till 14 May 2008. Mutual funds were net sellers of shares worth Rs 578.30 crore in this month, till 20 May 2008. Earnings downgrade amid rising input and interest costs, high inflation and drying up of global liquidity due to credit crisis remain major concern for the Indian stock market. With parliamentary elections scheduled next year (May 2009), the government may leave no stone unturned in its attempt to tame inflation. This is bad news for commodity shares from cement and steel sector. Meanwhile, as per a recent study by CLSA, large amount of foreign currency convertible bonds (FCCBs) issued by Indian companies are coming up for redemption in the next 18-24 months. After recent stock market volatility many FCCBs are at risk of not converting i.e. if the stock market remains subdued, it will stop the bond holders from opting for an equity conversion as it will be easier for them to buy the stock from the open market instead of paying the agreed premium. When the FCCBs come for redemption, some of these companies may have to take on more debt to redeem the FCCB, thereby raising interest outgo. In the event FCCBs don't get converted, companies have the option to lower the conversion price in line with the market, leading to higher equity dilution. If companies decide to issue fresh FCCBs to finance redemption of FCCBs, it will be at lower premium than earlier. With the rupee tumbling against the dollar in the last few days, the government may ease restrictions on overseas corporate borrowing when it, together with the RBI, reviews the external commercial borrowing (ECB) policy later this month, reports suggest. Last year, the government had imposed restrictions on ECBs in a bid to check in surge in rupee against the dollar. There are many Indian corporates who will eagerly seek cheap overseas funds if the RBI re-opens the ECB tap, analysts reckon. The structural growth drivers of the Indian economy remain intact – India's economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India's economy. A CLSA report says India's infrastructure development is set to accelerate, backed by greater private sector participation and improved finances of government and public sector enterprises. Rating agency Crisil in its outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver. Given the continued inflow to unit linked insurance plans (Ulips) and equity linked savings schemes (ELSS) of mutual funds, stock-specific buying will continue depending on fundamentals of individual stocks. Insurance firms are now a major player in the Indian stock market given the huge mop up in Ulips in recent years. It was buying support from domestic funds which had aided the recent recovery on the bourses. Meanwhile, as per recent reports, ELSS which offer tax benefit are catching the fancy of small savers. ELSS funds saw their collective assets jump more than nine times to about Rs 16000 crore in three years ending March 2008. In 2005 the investment limit eligible for income tax breaks was raised ten times to Rs 1,00,000 rupees for ELSS funds. Systematic investment plan (SIP) are said to be driving inflows into ELSS funds. The key benchmark indices suffered losses in the week ended Friday, 3 May 2008 following concerns that soaring global crude oil prices which struck record high of over $135 barrel and spiraling inflation will impact growth. The BSE Sensex slumped 785.30 points or 4.50% to 16,649.64 in the week ended Friday, 23 May 2008. The S&P CNX Nifty declined 211.15 points or 4.09% to 4,946.55in the week.</DIV>

Global cues, futures & options expiry to dictate trend

The market is likely to dance to global tunes in absence of any near term major domestic trigger with Q4 March 2008 results almost over. Expiry of May 2008 futures & options…

26 May 2008

Soaring crude oil, high inflation pull market lower

<DIV>The key benchmark indices suffered losses in the week ended Friday, 3 May 2008 following concerns that soaring global crude oil prices which struck record high of over $135 barrel and spiraling inflation will impact growth. The BSE Sensex slumped 785.30 points or 4.50% to 16,649.64 in the week ended Friday, 23 May 2008. The S&P CNX Nifty declined 211.15 points or 4.09% to 4,946.55in the week. The BSE Mid-Cap index fell 192.59 points or 2.77% at 6,937.11 in the week. The BSE Small-Cap index rose shed 102.83 points or 1.19% at 8,517.43. Both these indices outperformed the Sensex. Foreign institutional investors (FII) sold shares worth Rs 673.40 crore in this month, till 21 May 2008. They sold shares worth Rs 11,031.40 crore in calendar year 2008, till 21 May 2008. Domestic funds sold shares worth Rs 639.80 this month, till 14 May 2008. Mutual funds were net sellers of shares worth Rs 578.30 crore in this month, till 20 May 2008. The Indian stock market remained closed on Monday, 19 May 2008, on account of Buddha Pournima. Concerns about monetary tightening by the Reserve Bank of India following high inflation rate pulled the market lower on Tuesday, 20 May 2008. The 30-share BSE Sensex lost 204.76 points or 1.17% at 17,230.18 and the broader based S&P CNX Nifty was down 52.75 points or 1.02% at 5,104.95, on that day. However the 30-share BSE Sensex rose 12.98 points or 0.08% at 17,243.16 and the broader based S&P CNX Nifty gained 12.7 points or 0.25% at 5,117.65, on Wednesday, 21 May 2008, due to short covering at lower levels. Sharp fall in US stocks overnight and record breaking crude oil prices above $135 a barrel triggered a broad based decline in blue chips on Thursday, 22 May 2008. The 30-share BSE Sensex lost 336.05 points or 1.95% at 16,907.11 and the broader based S&P CNX Nifty was down 92.2 points or 1.8% at 5,025.45 on that day. On Friday, 23 May 2008, the 30-share BSE Sensex settled 257.47 points or 1.52% lower at 16,649.64 and the broader based S&P CNX Nifty declined 78.9 points or 1.57% at 4,946.55 as relentless selling in realty, oil & gas and metal stocks spooked sell-off in late trade, erasing early gains. India's largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 3.05% to Rs 2,554.80 in the week. It has reportedly formed a $1 billion joint venture with New York-based Vornado Realty Trust to set up a real estate fund. India's largest commercial bank State Bank of India slumped 7.67% to Rs 1,573.20 in the week. It has reportedly decided to stop giving loans for the purchase of tractors and other farm equipment. Due to mounting non-performing assets in the farm equipment loan segment, the bank has decided to temporarily put on hold all future advances for farm equipment like tractors, power tillers and combined harvesters, the reports suggested. India's largest tractor maker by sales Mahindra & Mahindra fell 1.56% to Rs 651.90 in the week. It is reportedly eyeing Italian motorcycle marque brands - Cagiva and MV Agusta. The Castiglioni family, which owns flagship MV Agusta and Cagiva motorcycle brands, has been facing financial troubles for some time and has been on the look out for a potential acquirer, the reports added. India's largest state-run oil exploration firm in terms of revenue Oil and Natural Gas Corporation (ONGC) shed 5.14% to Rs 902.05 in the week. It is reportedly planning to sell 30% to 40% each in two blocks in Vietnam to share the risks and drilling costs. ONGC owns 100% in the two deepwater exploration blocks. The buyer has not yet been finalised, the reports added. India's largest car maker by sales Maruti Suzuki India was down 3.52% to Rs 790.15 in the week. It has reportedly increased prices of cars by up to Rs 18,000 because of higher raw material costs. India's largest engineering and construction firm by sales Larsen & Toubro declined 5.06% to Rs 2,844.75 in the week. The company received electrical project orders worth Rs 640 crore in the Gulf region. HDFC Bank, India's second largest private sector bank in terms of net profit, declined 7.92% to Rs 1,383.35 in the week. The Reserve Bank of India has approved the scheme of amalgamation of Centurion Bank of Punjab with HDFC Bank. The scheme of amalgamation will come into effect from 23 May 2008. India's largest telecom services provider by market share Bharti Airtel lost 1.71% to Rs 836.80 in the week. As per reports Bharti Airtel has forged an exclusive alliance with Indian Oil Corporation (IOC) that will enable the telco to access 18,000 retail outlets and 5,500 Indane cooking gas distributors of the oil giant. India's largest IT exporter by sales Tata Consultancy Services (TCS) shed 4.35% to Rs 933.70 in the week. It has reportedly won a contract, estimated to be worth more than Rs 1000 crore, for processing Indian passport applications. Inflation based on the whole price index rose 7.82% in the year through 10 May 2008, marginally lower than 7.83% rise in the previous week, government data released on 23 May 2008, showed. Meanwhile, inflation for the year through 15 March 2008 was revised upwards to 8.02% compared to provisional figure of 6.68%. Meanwhile the Securities Exchange Board of India (Sebi) plans to keep in abeyance the imposition of upfront margins for institutional trades in the cash market. Securities & Exchange Board of India (Sebi) had earlier asked institutional investors to pay upfront margins from 16 June 2008. In the light of difficulties expressed by the market participants regarding implementation of upfront margining of institutional trades in the cash market, it has been decided to keep the same in abeyance, Sebi said in a circular issued to stock exchanges. On Wednesday, 21 May 2008, the US Federal Reserve cut its 2008 US economic growth forecast and signaled that mounting concerns over inflation would make further interest rate cuts unlikely, driving the three major US indexes down over 1.5%. Oil prices surged to a record high above $135 per barrel on Thursday, 22 May 2008, stoking fears of global inflation.</DIV>

Soaring crude oil, high inflation pull market lower

The key benchmark indices suffered losses in the week ended Friday, 3 May 2008 following concerns that soaring global crude oil prices which struck record high of over $135 …

26 May 2008

Rupee on a downslide

<DIV>The spot rupee today reached a fresh 13-month, intra-day low of 43.20 against the dollar following heavy buying of the US currency by oil companies and by banks for non-deliverable forward (NDF) market arbitrage. The rupee, however, recovered to close stronger at 42.97 following selling of dollars by the Reserve Bank of India (RBI) as a part of the indirect intervention to stem the rupee depreciation, dealers said. Since the beginning of the month, the rupee has lost almost 7.5 per cent from 40.00 to a dollar to 42.96. RBI had last sold dollars before the announcement of the annual monetary policy on April 29, 2008, to keep the rupee in the range of 39.90-40.00 to a dollar. "But for the selling of dollars by nationalised banks on behalf of the central bank to the tune of around $500-750 million, the rupee would have easily breached 43.30-43.40 to a dollar," said a dealer. Dealers added that the selling happened around 43.20 in the spot dollar market and there was not much sales in the forward market. "This is one of the reasons for the enhanced liquidity in the market, which is evident through a rise in reverse repo bids from around Rs 20,000 crore last week to Rs 36,000 crore on Thursday," said a dealer. Since crude oil prices reached a high of nearly $136 a barrel in the international markets, the rupee opened weaker at 42.98-43 after closing on Wednesday at 42.85-86 to a dollar. The outlook on the Indian economy has been benign and there are no fresh inflows, while the demand has led importers, both oil and non-oil, to buy dollars aggressively, a dealer of a private bank said. NDF is the derivatives market, where foreign investors take a position on the rupee-dollar exchange rate in the overseas market. At present, the view on the rupee is bearish, which may lead to the purchase of dollars in the local market to be invested overseas. These markets mostly operate in Singapore and Hong Kong and banks or companies with active subsidiaries or branches in these countries play in the market. Banks in India are buying dollars cheaper by 3-4 paise in the one- or two-month forward to sell it at a higher spread in the overseas market and earn profit. Following a panic buying of dollars by oil companies, which preferred to book long-term contracts rather than the short-term ones, the annualised premia for the six-month and one-year forward dollars closed higher at 1.89 per cent and 1.39 per cent against 1.71 per cent and 1.30 per cent on Wednesday.</DIV>

Rupee on a downslide

The spot rupee today reached a fresh 13-month, intra-day low of 43.20 against the dollar following heavy buying of the US currency by oil companies and by banks for non-deli…

23 May 2008

Stunner ! - IPO Rating - MCX India

<DIV>CRISIL has assigned a CRISIL IPO Grade "5/5" (pronounced "five on five") to the proposed initial public offer of Multi-Commodity Exchange of India Ltd. (MCX). This grade indicates that the fundamentals of the issue are strong relative to other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy / sell or hold the graded instrument, or a comment on the graded instrument's future market price or its suitability for a particular investor. CRISIL expects MCX to maintain its dominant market position in the commodities market, backed by product innovation and strong technological capabilities. Currently, MCX enjoys market leadership, with a share of 77 per cent in volumes traded on commodities exchanges in India. The company has consciously focused on commodities such as bullion, energy and metals, which are benchmarked to international prices. The high liquidity in these commodities and the low impact costs (comparable to other leading exchanges), along with MCX's strong technological capability - aided by its association with the promoter, FTIL, a leader in exchange related technology - are expected to help the company maintain its competitive advantage. MCX's profitability and return indicators have been strong in the past 4 years. Growth is likely to moderate in the short term due to the impact of the commodity transaction tax (CTT). However, in the medium term, MCX's strong market position and continuous focus on product innovation would act as growth drivers. In the long term, growth could be spurred by the introduction of new instruments (like options) and participation by institutional players, once the necessary regulatory changes are in place. Mr Jignesh Shah, the founder and Non-Executive Vice Chairman and Mr Joseph Massey, the MD & CEO of MCX, have been the driving force behind the company's business growth and product innovation. MCX also benefits from a strong and experienced senior management team as well as a highly capable product innovation and development team. About the company and the issue Multi-Commodity Exchange of India Pvt Ltd was incorporated on April 19, 2002. The proposed IPO is in the form of an offer for sale of 4 million shares by the promoters and a fresh issue of 6 million shares. Subsequent to the IPO, the promoters' stake in the company will reduce to 26.1 per cent. On September 26, 2003, MCX received permanent recognition from the Government of India for facilitating online trading, clearing and settlement operations for commodity futures markets across the country. MCX offers trading in 56 different commodities categorised into various market segments such as bullion, energy, ferrous and non-ferrous metals, oil and oil seeds, cereals, pulses, plantations, spices, fibre and others. The company has leadership position in bullion, energy and metals trading in India. Of the company's total turnover, bullion accounts for 53 per cent, metals for 28 per cent, energy for 16 per cent and agricultural commodities account for the rest. Globally, MCX is the largest silver exchange, second-largest natural gas exchange, third-largest gold, crude oil and copper exchange in terms of number of contracts traded in each of these commodities. MCX was the first exchange to launch futures trading in steel, crude oil and plastics in India. The company has launched weather indices such as RAINDEX - to track the progress of monsoon rains in locations such as Mumbai, Indore and Jaipur - and also trading in carbon credits on the exchange. MCX was also the first exchange to initiate evening trading sessions to coincide with trading on international exchanges such as London, New York and other international markets. The company's initiative to constantly innovate and develop new products is expected to help increase volumes. For the year ended March 31, 2007, MCX reported a net profit of Rs 930 million on a turnover of Rs 2.0 billion, as compared with a net profit of Rs 375 million and revenues of Rs 1.0 billion in the previous year.</DIV>

Stunner ! - IPO Rating - MCX India

CRISIL has assigned a CRISIL IPO Grade "5/5" (pronounced "five on five") to the proposed initial public offer of Multi-Commodity Exchange of India Ltd. (MCX). This grade ind…

23 May 2008

Rebounding dollar pushes precious metals down

<DIV> Precious metals prices drop as crude slips by more than $2 and dollar goes up After being on a roll for the last few days, precious metal prices dropped today, Thursday, 22 May, 2008 after crude oil prices eased and the dollar once again rebounded against the rivals. The dual effect took some glitter off the precious metals today. Ealier this week, crude oil's rally to a fresh record high above $133 a barrel boosted the precious metal's appeal as an inflation hedge. Oil has doubled in the past year, fueling concern inflation will accelerate. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. Comex Gold for June delivery fell $10.3 (1.1%) to close at $918.3 ounce on the New York Mercantile Exchange. During intra day trading, prices touched a high of $935.4/ounce. Last week, gold prices ended higher by $14 (1.6%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. Prices have dropped by 10.2% since then. This year, gold prices have gained 9.6% for the till date against a 7.6% drop for the dollar against the euro. For April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%. Comex Silver futures for July delivery fell 2.5 cents (0.2%) to $18.025 an ounce. Silver has gained 20.7% in 2008 till date. For April, it closed lower by 5.5%. Silver gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years. At the currency markets on Thursday, the dollar rose on speculation the Federal Reserve will raise borrowing costs by the end of the year to curb inflation. The dollar also got a lift against major rivals after better-than-expected weekly jobs data. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rose 0.4% to 72.18. Since last September, Fed has axed interest rates seven times and brought it down to 2%. The ECB has kept rates unchanged at 4% since June, 2007. Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment. Among major economic news of the day, the Labor Department reported that first-time claims for state unemployment benefits fell back in the latest week, dropping by 9,000 to 365,000 on a seasonally adjusted basis. In the crude market today, oil futures dropped as much as 2.3% to $130.07 a barrel after earlier reaching a record $135.09. Yesterday, crude-oil futures climbed past $133 a barrel to close at another record level after government data showed that crude supplies unexpectedly dropped, marking their first decline in five weeks. It touched an all-time peak of $133.35. Earlier during the week, crude oil rose after billionaire hedge-fund manager Boone Pickens said prices will reach $150 a barrel this year as demand outpaces supply. Last week, crude-oil futures rallied to a fresh record high near $128 a barrel as Goldman Sachs raised its second-half-of-the-year forecast for oil prices by 32% to $141. At the MCX, gold prices for June delivery closed lower by Rs 96 (0.7%) at Rs 12,730 per 10 grams. Prices rose to a high of Rs 12,999 per 10 grams and fell to a low of Rs 12,710 per 10 grams during the day's trading. At the MCX, silver prices for July delivery closed Rs 30 (0.1%) lower at Rs 24,897/Kg. Prices opened at Rs 24,990/kg and fell to a low of Rs 24,666/Kg during the day's trading.</DIV>

Rebounding dollar pushes precious metals down

Precious metals prices drop as crude slips by more than $2 and dollar goes upAfter being on a roll for the last few days, precious metal prices dropped today, Thursday, 22 …

23 May 2008

Crude price eases a bit

<DIV> Prices drop by more than $2 as traders resort to four day profit booking Crude-oil futures fell today, Thursday, 22 May, 2008 after the dollar rebounded and the traders resorted to profit booking after four days of massive rise in crude prices. Crude prices had been on a roll since the past few days and had crossed the $133/barrel for the first time yesterday. Crude-oil futures for light sweet crude for July delivery today closed at $130.81/barrel (lower by $2.3/barrel or 1.8%) on the New York Mercantile Exchange. Price touched a high of $135.09 earlier during the day. In the past four sessions, crude prices had gained more than 7%. Last week, crude prices closed higher by 29 cents. For the year, crude is up by 31% till date. Prices have more than doubled on a yearly basis. At the currency markets on Thursday, the dollar rose on speculation the Federal Reserve will raise borrowing costs by the end of the year to curb inflation. The dollar also got a lift against major rivals after better-than-expected weekly jobs data. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rose 0.4% to 72.18. Among major economic news of the day, the Labor Department reported that first-time claims for state unemployment benefits fell back in the latest week, dropping by 9,000 to 365,000 on a seasonally adjusted basis. Yesterday, the Energy Department reported that crude supplies fell by 5.4 million barrels to 320.4 million for the week ended 16 May. Prior to that, supplies had climbed more than 12 million barrels in the past four weeks. Market was expecting a rise of 900,000 barrels for the latest week. EIA also revealed that crude-oil imports averaged 9.2 million barrels per day last week, down 696,000 barrels per day from a week earlier. Meanwhile, refinery utilization rose to 87.9% of capacity from 86.6% a week ago. Still, motor gasoline supplies fell 800,000 barrels to 209.4 million barrels last week. Distillate stocks were up 700,000 barrels at 107.8 million barrels. Last week, prices kissed $128 for first time after Goldman Sachs raised its forecast on Friday for the average price of West Texas Intermediate oil in the second half of 2008 to $141 a barrel from $107 a barrel. As per the company's reports, long-term oil prices will need to continue to rise to bring trend oil demand growth in line with trend supply growth. Credit Suisse Group AG and Societe Generale SA raised their oil price forecasts for 2008 and 2009 citing investor flows and limited supply. U.S. natural gas inventories last week increased less than analysts forecast Brent crude oil for June settlement today fell $2.19 (1.7%) to $130.51 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled. Natural gas futures climbed after a government report showed U.S. inventories last week increased less than analysts forecast. Gas for June delivery rose 5.7 cents (0.5%) to settle at $11.697 per million British thermal units. EIA reported today that stockpiles were 3 billion cubic feet below the five-year average, compared with a 3 billion-cubic-foot surplus a week earlier. Supplies were down 302 billion cubic feet, or 16 percent, from a year earlier. Against this backdrop, July reformulated gasoline closed at $3.3297 a gallon, down 7.03 cents, while July heating oil futures rose 4.43 cents to end at $3.9543 a gallon in New York after trading at a record high of $4.02 in the electronic trading session. AAA reported today that regular retail gasoline prices jumped by 2.3 cents to a fresh record of $3.831 a gallon at USA. It's up 9.1% from a month ago. Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude's biggest yearly gain in five years. At the MCX, crude oil for May delivery closed at Rs 5,661/barrel, higher by Rs 5 (0.08%) against previous day's close. Natural gas for July delivery closed at Rs 513.1/mmbtu, higher by Rs 9.7/mmbtu (1.9%).</DIV>

Crude price eases a bit

Prices drop by more than $2 as traders resort to four day profit bookingCrude-oil futures fell today, Thursday, 22 May, 2008 after the dollar rebounded and the traders reso…

23 May 2008

Bharti Airtel, Firstsource sign in $35 million outsourcing deal.

<DIV> <DIV align=justify>Bharti Airtel has signed a $35 million, three-year outsourcing agreement with BPO services provider Firstsource Solutions, which will offer both voice and backoffice services in areas such as customer accounting, VAS provisioning, fraud and credit monitoring, customer service, collections and customer retention to Airtel. While company officials declined to provide financial details, sources said the deal was valued at around $35 million. In August 2005, Bharti had announced a Rs 1,000-crore deal with BPO firms IBM Daksh, MphasiS, TeleTech and Hinduja TMT to outsource its call centre operations. The Firstsource deal is another instance of the company's strategy to focus on its core areas of product innovation, marketing, brand building. Airtel has already outsourced its IT requirements to IBM and cellular networking operations of Nokia and Ericsson. However, the contract with Firstsource is more comprehensive as it includes mobile collection, welcome calling, VAS provisioning besides other services. </DIV> <A href="http://feeds.feedburner.com/~a/simplystockmarket?a=OP6GXq"><img border="0" src="http://feeds.feedburner.com/~a/simplystockmarket?i=OP6GXq"></IMG></A></DIV>

Bharti Airtel, Firstsource sign in $35 million outsourcing deal.

Bharti Airtel has signed a $35 million, three-year outsourcing agreement with BPO services provider Firstsource Solutions, which will offer both voice and backoffice servic…

23 May 2008

OPEC head concerned about oil market volatility

<DIV>OPEC head Abdalla Salem el-Badri on Wednesday said he was worried about volatility in the oil market as prices soared through the historic 130 dollars level for the first time. "The Secretary General expressed concern about the volatility that has characterised the market in recent times," the Vienna-based cartel said in a statement from Caracas, where el-Badri met Venezuelan President Hugo Chavez as part of a weeklong working visit to OPEC members Venezuela and Ecuador. Following his meeting with Chavez, el-Badri said, "The crude oil market remains well-supplied, with (developed world) stocks increasing above their five-year average. "OPEC will continue to strive to bring stability to the oil market," the statement said, noting that el-Badri "also called on other stakeholders in the industry -- consumers, producers, investors -- to cooperate to find a lasting solution to the volatility." El-badri stressed that OPEC remained committed "to working for the stability of the international oil market, noting that the current high oil prices are not influenced by market fundamentals, as the market is well supplied. "OPEC will continue to monitor global oil markets regularly and is ready to act if and when necessary to ensure market stability and adequate supplies," the statement added. OPEC has repeatedly said that the market is well supplied and that record prices reflect speculative investment activity rather than underlying supply and demand conditions.</DIV>

OPEC head concerned about oil market volatility

OPEC head Abdalla Salem el-Badri on Wednesday said he was worried about volatility in the oil market as prices soared through the historic 130 dollars level for the first ti…

23 May 2008

US Federal Reserve sharply cuts growth forecast

<DIV>The US Federal Reserve on Wednesday sharply cut its growth forecast for 2008 but suggested it may halt a string of drastic rate cuts aimed at boosting the sagging US economy. The central bank predicted 2008 growth of 0.3 percent to 1.2 per cent, down from a January projection of 1.3 percent to 2 percent, according to the minutes of the Federal Open Market Committee's April 30 meeting. The Fed cut its benchmark interest rate by 0.25 percentage points to 2 percent at the April meeting, but the minutes indicate that inflation risks made it a difficult decision. Consumer prices were projected to increase by 3.1 to 3.4 percent in 2008, up from 2.1 to 2.4 percent inflation expected in Fed's January forecast. 'Most members viewed the decision to reduce interest rates at this meeting as a close call,' the Fed minutes said. 'Although downside risks to growth remained, members were also concerned about the upside risks to the inflation outlook.' Two of the board's 10 members voted against April's rate cut. The economy expanded by 0.6 percent in the first quarter according to initial government estimates. Some economists believe the US has entered a recession. The Fed's federal funds rate has been cut from 5.25 percent to two percent since September to combat a housing and mortgage crisis that has engulfed the world's largest economy.</DIV>

US Federal Reserve sharply cuts growth forecast

The US Federal Reserve on Wednesday sharply cut its growth forecast for 2008 but suggested it may halt a string of drastic rate cuts aimed at boosting the sagging US economy…

23 May 2008

Crude ends modestly higher

<DIV> Crude rises for fifth straight day Crude-oil futures touched a fresh record once again above $124 today, 08 May, 2008, Thursday. Weaker dollar and tensions regarding overall global supplies were the main reasons to push crude prices higher today. Prices for crude oil have been hovering around $124 against a backdrop of disruptions to oil production in Nigeria. Crude-oil futures for light sweet crude for June delivery closed at $123.69/barrel (higher by $0.16/barrel or 0.1%) on the New York Mercantile Exchange. Price touched a high of $124.5 earlier during the day. In the past five sessions, crude prices have gone up by almost $11.2 (9.9%). For the year, crude is up by 26.8% till date. On the currency markets today, the dollar was modestly lower losing ground to the euro and the pound after both the European Central Bank and the Bank of England both decided to hold policy steady. ECB President Jean-Claude Trichet cited inflation risks in his statement, further bolstering the common currency. The dollar index, which measures the greenback against a basket of six major currencies, fell 0.2% to 73.37. EIA reported yesterday that crude supplies rose 5.7 million barrels to 325.6 million for the week ended 2 May. Supplies of oil have now climbed a total of 11.9 million barrels over the past three weeks. EIA also reported that motor gasoline supplies climbed 800,000 barrels to 211.9 million barrels last week and distillate stocks were down 100,000 barrels at 105.7 million barrels. The decline in distillate supplies last week came as refinery utilization fell to 85.0% of capacity from 85.4% a week earlier June natural gas finished 7 cents lower at $11.26 per million British thermal units today. EIA reported today that natural-gas inventories rose by 65 billion cubic feet for the week ended 2 May. Total stocks now stand at 1.436 trillion cubic feet, down 284 billion cubic feet from the year-ago level and 11 billion cubic feet below the five-year average. Against this backdrop, June reformulated gasoline closed up 2 cents at $3.14 a gallon while June heating oil rose 6 cents to end at $3.51 a gallon. EIA reported earlier this week that global oil consumption will likely grow by 1.2 million barrels per day this year, but the consumption of liquid fuels and other petroleum is expected to decline by around 190,000 barrels per day because of the economic slowdown and high petroleum prices. The EIA also expects regular gasoline prices to average $3.52 per gallon this year, up 71 cents from a year ago. Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude's biggest yearly gain in five years. At the MCX, crude oil for May delivery closed at Rs 5,095/barrel, higher by Rs 7 (0.13%) against previous day's close. Natural gas for July delivery closed at Rs 467.3/mmbtu, higher by Rs 0.4/mmbtu (0.08%).</DIV>

Crude ends modestly higher

Crude rises for fifth straight dayCrude-oil futures touched a fresh record once again above $124 today, 08 May, 2008, Thursday. Weaker dollar and tensions regarding overall…

09 May 2008

Bullion metals rise again

<DIV> A weak dollar pushes up the precious metals Precious metals ended higher today, Thursday, 08 May, 2008. The weak dollar was the main reason for this. Higher crude prices also added to the reason behind the rise. Prices rose as crude touched a fresh new high at $124.5/barrel. Silver prices also rose for the day. Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment. Comex Gold for June delivery rose $10.9 (1.2%) to close at $882.1 ounce on the New York Mercantile Exchange. Yesterday, prices had dropped by more than $6. Last week, gold prices lost $32 (3.6%) against previous week's close. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. This year, gold prices have gained 5.5% for the till date against a 9.2% drop for the dollar against the euro. For April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%. Comex Silver futures for July delivery rose 17 cents (0.8%) to $16.87 an ounce. Silver has gained 13% in 2008 till date. For April, it closed lower by 5.5%. Silver gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years. On the currency markets today, the dollar was modestly lower losing ground to the euro and the pound after both the European Central Bank and the Bank of England both decided to hold policy steady. ECB President Jean-Claude Trichet cited inflation risks in his statement, further bolstering the common currency. The dollar index, which measures the greenback against a basket of six major currencies, fell 0.2% to 73.37. In the energy market today, crude-oil futures touched a fresh record above $124.5 after traders continued to remain concerned regarding global oil supplies. Earlier in the day, crude prices fell, but it soon recovered and ended higher for the day. Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. At the MCX, gold prices for June delivery closed higher by Rs 204 (1.7%) at Rs 11,832 per 10 grams. Prices rose to a high of Rs 11,888 per 10 grams and fell to a low of Rs 11,621 per 10 grams during the day's trading. At the MCX, silver prices for July delivery closed Rs 318 (1.4%) higher at Rs 22,860/Kg. Prices opened at Rs 22,453/kg and rose to a high of Rs 23,067/Kg during the day's trading.</DIV>

Bullion metals rise again

A weak dollar pushes up the precious metalsPrecious metals ended higher today, Thursday, 08 May, 2008. The weak dollar was the main reason for this. Higher crude prices als…

09 May 2008

Crude Oil Steadies at Record Level; Depress Asian Market Advance

<DIV> Sydney, Shanghai advances while others traded lower Asian shares traded mostly lower, with Tokyo's Nikkei 225 Average losing ground on weakness in export stocks, while Australia's benchmark index shrugged off a weaker start to edge into positive territory by late morning although BHP Billiton retreated after drops in commodity prices. The declines were in line with a weaker finish on Wall Street yesterday, after crude-oil prices surged above $123 a barrel, alarming investors worried about the impact upon consumers and the overall economy. On Wall Street, the Dow Jones Industrial Average fell 206.48 points to end at 12,814.35. The S&P 500 fell 25.69 points to 1,392.57. The Nasdaq Composite fell 44.82 points to 2,438.49. Crude oil prices advanced as much as 28 cents in after-hours Asian trading to a record $123.81 a barrel. The June contract recently was trading down, at $123.54 a barrel. The contract rose $1.69, or 1.4%, to settle at $123.53 a barrel Wednesday on the New York Mercantile Exchange after touching $123.75. The Nikkei closed the morning session 1.1% lower at 13,943.26. The Topix index fell 1.5% to 1,372.95 while South Korea's Kospi traded a little lower by 0.3% at 1,848. Australia's S&P ASX 200 reversed a 0.9% slide in the morning session to end a trade 1% higher at 5,723.20. Meanwhile, Australia's unemployment rate rose to seasonally adjusted 4.2% in April from 4.1% in March. The number of employed rose 25,400. The Australian Bureau of Statistics said its seasonally adjusted workforce participation rate, or the proportion of working-age persons at work or actively seeking work, rose to 65.4% in April from 65.3% in March. Hong Kong's Hang Seng Index was down 0.6% at 25,449.79. The Hong Kong China Enterprises Index, or mainland-incorporated shares listed in Hong Kong, eased 1.6% to 13,886.59. The Shanghai Composite Index reversed an early deficit to climb 2.2% to 3,656.84. Taiwan's Weighted Price Index fell 0.7% to 8,866.62. Indonesia's Jakarta Composite Index was down 0.2% to 2,376.93, Malaysia's KLSE Composite Index was down 0.5% to 1,280.35. In currencies, the U.S. dollar was quoted a 104.35-yen, compared to 104.73 yen in late New York trading Tuesday. European opened on a weaker note, with investors cautious ahead of interest rate decisions due later in the day. National indexes were also weaker, with the U.K. FTSE 100 index down 0.5% to 6,232.80, the German DAX 30 index down 0.7% to 7,027.38 and the French CAC-40 index down 0.7% to 5,041.11. Meanwhile, Germany's trade surplus was a touch below from the unrevised estimate of March, while the current account surplus beat forecasts showed Thursday. According to the data from the Federal Statistics Office Germany's trade surplus totaled EUR16.7 billion in March, down from an unrevised EUR16.9 billion in February. The current account surplus of Europe's largest economy rose to EUR17.2 billion in March, from an upwardly revised EUR16.1 billion in February. The preliminary reading for February showed a surplus of EUR15.4 billion. Exports totaled EUR84.0 billion, a 0.2% rise on the year, while imports amounted to EUR67.3 billion, a 3.3% increase from March 2007.</DIV>

Crude Oil Steadies at Record Level; Depress Asian Market Advance

Sydney, Shanghai advances while others traded lowerAsian shares traded mostly lower, with Tokyo's Nikkei 225 Average losing ground on weakness in export stocks, while Austr…

08 May 2008

Banking, IT shares lead 259 points Sensex fall

<DIV>The market succumbed to selling pressure today as weak global equities and soaring crude oil prices worried investors. All the sectoral indices on BSE, barring the BSE Metal index, were in the red. Software and banking shares were worst hit in today's fall. European markets, which opened after Indian markets, were trading lower. Key indices in UK, France and Germany were down by 0.36% to 0.52%. Asian markets, which opened before Indian market, were trading mostly in red today, 8 May 2008. Key indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were down by 0.32% to 1.13%. However, China's Shanghai Composite was up 2.17%. US markets suffered sharp losses on Wednesday, 7 May 2008, on worries about inflation and higher interest rates as oil jumped to a record. Financials stocks took a beating on concerns that new disclosure requirements for investment banks will limit their profits. The Dow Jones industrial average slumped 206.48 points, or 1.59%, to 12,814.35. The Nasdaq Composite index fell 44.82 points, or 1.80%, to 2,438.49. The S&P 500 shed 26 points at 1,393. Oil prices for June 2008 delivery fell 6 cents to $123.47 a barrel in electronic trading on the New York Mercantile Exchange today, 8 May 2008, in Asia after jumping to a record of $123.93 a barrel yesterday, 7 May 2008. The 30-share BSE Sensex fell 258.66 points or 1.49% at 17,080.65. The index lost 301.28 points at day's low of 17,038.03, hit in the early afternoon trade. Sensex lost 126.7 points at day's high of 17,212.61 hit in early trade. The broader based S&P CNX Nifty fell 53.8 points or 1.05% at 5081.70. Nifty May 2008 futures were at 5093, a premium of 11.3 points as compared to spot closing. The market breadth was weak on BSE with 1102 shares advancing as compared to 1593 stocks that declined. 51 stocks remained unchanged. The BSE Mid-Cap index was down 0.67% at 7,153.43 and the BSE Small-Cap index was down 0.44% at 8,689.04. Both the indices outperformed the Sensex. BSE clocked a turnover of Rs 5904 crore as against Rs 6,622.02 crore on Wednesday, 7 May 2008. The NSE's futures & options (F&O) segment turnover was Rs 28,943.79 crore, which was lower than Rs 33,563.9 crore on Wednesday, 7 May 2008. India's biggest private sector firm by market capitalisation and oil refiner Reliance Industries fell 0.79% to Rs 2661.05. India's biggest cigarette maker by revenue ITC slumped 5.24% to Rs 215.05. The BSE IT index underperformed the Sensex, falling 2.69% to 4,294.46. Mphasis (down 3.96% at Rs 219.65), Satyam Computer (down 3.72% at Rs 471.10), TCS (up 2.33% at Rs 943.70), HCL Technologies (down 1.82% at Rs 288.05) and Wipro (down 0.40% at Rs 0.40% at Rs 497.15), slipped. India's second largest software exporter by sales Infosys Technologies fell 3.44% at Rs 1,779.80. The BSE Bankex index underperformed the Sensex, falling 2.90% to 8,755.48. Kotak Mahindra bank (down 6.41% at Rs 782.40), Bank of Baroda (down 5.51% at Rs 300.05), Axis Bank (down 4.83% at Rs 863.35), HDFC Bank (down 2.24% at Rs 1,508.40), and State Bank of India (down 2.17% at Rs 1,729.80), tumbled. India's biggest private sector lender by assets ICICI Bank fell 3% to Rs 891.30. The BSE Metal index outperformed the Sensex, gaining 0.19% to 15,843.27. Tata Steel (up 2.51% at Rs 845.65), Welspun Gujarat Stahl Rohren (up 1.89% at Rs 409.60), Bhushan Steel (up 0.93% at Rs 790), Sesa Goa (up 0.89% at Rs 4,028.20), and Hindalco Industries (up 0.17% at Rs 180.05), moved higher. Among the side counter, Moser Baer (up 8.08% at Rs 191.30), United Phosphorus (up 5.19% at Rs 349.35), Aban Offshore (up 5.03% at Rs 3,811.10), Great Offshore (up 5.03% at Rs 708.65) and IFCI (up 3.57% at Rs 60.85), soared. Stocks from the side counters that declined were, Sintex Industries (down 6% at Rs 435), Indiabulls Financial Services (down 5.98% at Rs 491), Reliance Industrial Infrastructure (down 5% at Rs 1,465.90), and Lanco Infratech (down 5% at Rs 506.15). Tata Communications rose 3.07% to Rs 502.50 on reports the government is planning to divest its residual 26.12% stake in the company. India's third largest listed cellular services provider by sales Idea Cellular rose 2.41% to Rs 106.40. The firm slashed its long-distance call rates and roaming charges. Mid-day Multimedia, which publishes a tabloid, gained 2.10% to Rs 34. The firm reported net profit of Rs 0.23 crore in the Q4 March 2008 as compared to net loss of Rs 2.88 crore in Q4 March 2007. Sales declined 2.19% to Rs 27.24 crore in Q4 March 2008 over Q4 March 2007. Aishwarya Telecom clocked the highest turnover of Rs 722.21 crore on BSE. Reliance Power (Rs 250.45 crore), Reliance Capital (Rs 171.71 crore), Tata Steel (Rs 160.78 crore) and Cairn India (Rs 155.39 crore), were the other turnover toppers on BSE in that order. Aishwarya Telecom reported the highest volume of 7.71 crore shares on BSE. IFCI (1.42 crore shares), Ispat Industries (1.14 crore shares), Kashyap Technologies (87.10 lakh shares) and Reliance Natural Resources (83.40 lakh shares), were the other volume toppers on BSE in that order.</DIV>

Banking, IT shares lead 259 points Sensex fall

The market succumbed to selling pressure today as weak global equities and soaring crude oil prices worried investors. All the sectoral indices on BSE, barring the BSE Metal…

08 May 2008

US Market manages a turnaround

<DIV> Indices register good gains even after opening in the red post Fannie Mae's losses In spite of making a slow start, US Market ended higher today, Tuesday, 06 May, 2008. It was mainly the financial and the energy sector that helped the market end in the green. Crude prices closing a little shy of $122/barrel and good results from the homebuilding sector helped market rally. Nine of the ten economic sectors ended in the green. Telecom was the sole loser. The Dow was down by almost 85 points earlier in the day. At the end, going into close, The Dow Jones industrial Average ended the day with a gain of 51.2 points at 13,020.6. The Nasdaq Composite Index, finished higher by 19.19 points at 2,483.31. S&P 500 finished higher by 10.7 points at 1,418.4. Seventeen out of thirty Dow components ended in the green today. Alcoa was one of the main Dow winners while GM is one of the main Dow laggards. In the morning, the indices were in the red after Fannie Mae fuelled the selling interest after reporting a larger than expected loss, cutting its dividend by 30% and announcing it is raising $6 billion in capital. The housing market turmoil continued to take its toll on Fannie Mae. Its shares opened more than 7% lower, but quickly rebounded to finish the day with an advance of 9%. A warning from Federal Reserve Chairman Ben Bernanke weighed on sentiment earlier in the session, after he said late Monday that increasing home foreclosures could further harm the economy. In the post lunch hours, market turned around. There was not clear catalyst for the gains, but financials stocks witnessed the most buying interest. The tech sector was also having the most influential role on the turnaround. Microsoft and Yahoo! were leading the way. Indian ADRs ended mixed today. Infosys and VSNL were the two top winners gaining 3.5% and 2.8% respectively. Crude prices rose by almost $2 once again today. Price rose due to supply problems continuing at Nigeria. The weak dollar also pushed up the crude price today. It touched a new high of $122.9/barrel today during the after hours electronic trading. Dollar weakness tends to benefit dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. Crude-oil futures for light sweet crude for June delivery closed at $121.84/barrel (higher by $1.9/barrel or 1.6%) on the New York Mercantile Exchange. In the past three sessions, crude prices have gone up by almost $9.3 (8.3%). For the year, crude is up by 25.3% till date. On the currency markets today, dollar continued to decline pushing crude prices further up. A weak dollar makes oil more attractive as an investment alternative. The dollar index, which measures the greenback against a basket of six major currencies, was at 73.007, down from 73.190 in late Monday. For tomorrow, there are a number of economic reports on the dock. The first quarter productivity report is due tomorrow morning. Higher productivity helps offset inflationary forces, making the report a focal point tomorrow. Also due tomorrow is the March pending home sales index from the National Association of followed by the weekly oil inventory report. Lastly, the consumer credit report for March is due in the afternoon</DIV>

US Market manages a turnaround

Indices register good gains even after opening in the red post Fannie Mae's lossesIn spite of making a slow start, US Market ended higher today, Tuesday, 06 May, 2008. It w…

07 May 2008

US Market ends modestly lower

<DIV> Crude prices hitting $120 once again sends a negative vibe in the market US Market ended today, Monday, 05 May, 2008 with modest losses. Crude prices closing a little shy of $120/barrel and Microsoft's drop of bid for Yahoo were perhaps the main reasons for the negative momentum in the market. Eight of the ten economic sectors retreated with energy and material sector being the sole winners. The Dow Jones industrial Average ended the day with a loss of 88.6 points at 12,969.4. The Nasdaq Composite Index, finished lower by 12.8 points at 2,464. S&P 500 finished lower by 6.4 points at 1,407.4. Twenty-six out of thirty Dow components ended in the red today. General Motors, AIG and Bank of America were the main Dow winners. Alcoa was one of the four Dow winners. Microsoft decided last Friday to not pursue the takeover of Yahoo after its raised offer of $33 per share (up $2) was once again rejected by Yahoo. Microsoft shares closed lower by 2% today while Yahoo shares dropped by a huge 15%. The Institute of Supply management (ISM) nonmanufacturing index rose to 52% from 49.6% in March. The increase was unexpected. It topped the consensus estimate of 49.1. Since the number is above 50 it reflects the services sector expanded in April, albeit at a slow pace. Among some merger related news, shares of Sprint Nextel went up following a Wall Street Journal report that indicated Deutsche Telekom is pondering an offer to acquire Sprint. All Indian ADRs ended in the red today. VSNL and Patni Computers were the main laggards dropping 5% and 4.5% respectively. Crude prices rose by more than $3 once again today. Price rose due to supply problems once again emerging at Nigeria. The weak dollar also pushed up the crude price today. Crude-oil futures for light sweet crude for June delivery closed at $119.97/barrel (higher by $3.65/barrel or 3.1%) on the New York Mercantile Exchange. In the past two sessions, crude prices have gone up by almost $7. Nigeria's rebel group Movement for the Emancipation of the Niger Delta, MEND, attacked a Shell oil flow station in the south of the country last weekend. Shell is a unit of Royal Dutch Shell. In recent months, MEND has claimed responsibility for a series of attacks on oil facilities in the Niger Delta. On the currency markets today, the U.S. dollar weakened even after a report from the Institute for Supply Management showed that nonmanufacturing sectors of the U.S. economy expanded during April after three months of contraction. The dollar index, which tracks the performance of the greenback against a basket of currencies, was down 0.4% to 73.19. On the New York Stock Exchange, more than 3.3 billion shares changed hands, and declining stocks topped those advancing about 9 to 7. On the Nasdaq, nearly 2.1 billion issues were traded, and declining stocks surpassed those on the rise by 5 to 4. For tomorrow, there are no major economic reports scheduled for release. DR Horton and Fannie Mae are among a few companies scheduled to report prior to tomorrow's open.</DIV>

US Market ends modestly lower

Crude prices hitting $120 once again sends a negative vibe in the marketUS Market ended today, Monday, 05 May, 2008 with modest losses. Crude prices closing a little shy of…

07 May 2008

Food crisis looming

<DIV>The head of the Asian Development Bank on Monday called for an "immediate response" to soaring food prices which he said placed more than a billion Asians at risk of malnutrition. ADB president Haruhiko Kuroda also warned that the food problem could cut into decades of economic gains in the Asia-Pacific region. "These are troubling times for the world economy. On the heels of turmoil in the financial markets and economic slowdown in the US and elsewhere, soaring food prices are hitting the poor very hard," he said. "This price surge has a stark human dimension and has greatly affected over a billion people in Asia and the Pacific alone. Their purchasing power has been eroded, placing them at a greater risk of hunger and malnutrition." He said stocks of food grains were at the lowest levels for decades. Reduced supplies and increased demand, along with the sharp depreciation of the US dollar and trade restrictions by some countries have combined to cause the price spike in recent months, Kuroda said. "The focus must now be on the soaring prices and our immediate response," he said. He called for "prudent macroeconomic management" along with targeted income support to protect food entitlements and livelihoods of the most vulnerable. "The absence of such measures could seriously undermine the global fight against poverty and erode the gains of the past decades," he said. "The ADB is prepared to respond with immediate financial assistance to relieve fiscal pressure on affected countries," Kuroda said.</DIV>

Food crisis looming

The head of the Asian Development Bank on Monday called for an "immediate response" to soaring food prices which he said placed more than a billion Asians at risk of malnutr…

07 May 2008

Bullion metals continue to glitter

<DIV> Another all time high crude price pulls up precious metals further A new all time high crude price once again pulled up bullion metals today, Tuesday, 06 May, 2008. With today, bullion metals went up for three straight days. On the other hand, dollar continued to weaken. Silver prices also rose for the day. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment. Comex Gold for June delivery rose $3.6 (0.4%) to close at $877.7 ounce on the New York Mercantile ExchangeLast week, gold prices lost $32 (3.6%) against previous week's close. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. This year, gold prices have gained 5% for the till date against a 9.3% drop for the dollar against the euro. For April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%. Comex Silver futures for July delivery rose 3 cents (0.02%) to $16.86 an ounce. Silver has gained 13% in 2008 till date. For April, it closed lower by 5.5%. Silver gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years. On the currency markets today, dollar continued to decline pushing crude prices further up. A weak dollar makes oil more attractive as an investment alternative. The dollar index, which measures the greenback against a basket of six major currencies, was at 73.007, down from 73.190 in late Monday. In the energy market today, crude prices ended near about $121.8/barrel due to supply disruptions at Nigeria. Prices closed higher by $1.9 (1.6%). Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. At the MCX, gold prices for June delivery closed higher by Rs 136 (1.2%) at Rs 11,600 per 10 grams. Prices rose to a high of Rs 11,649 per 10 grams and fell to a low of Rs 11,462 per 10 grams during the day's trading. At the MCX, silver prices for May delivery closed Rs 172 (0.8%) higher at Rs 22,592/Kg. Prices opened at Rs 22,478/kg and went to a high of Rs 22,792/Kg during the day's trading.</DIV>

Bullion metals continue to glitter

Another all time high crude price pulls up precious metals furtherA new all time high crude price once again pulled up bullion metals today, Tuesday, 06 May, 2008. With tod…

07 May 2008

Crude rises for third straight day

<DIV> Prices add more than $9 in the last three sessions Crude prices rose by almost $2 once again on Tuesday, 06 May, 2008. Price rose due to supply problems continuing at Nigeria. The weak dollar also pushed up the crude price today. It touched a new high of $122.9/barrel today during the after hours electronic trading. Dollar weakness tends to benefit dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. Crude-oil futures for light sweet crude for June delivery closed at $121.84/barrel (higher by $1.9/barrel or 1.6%) on the New York Mercantile Exchange. In the past three sessions, crude prices have gone up by almost $9.3 (8.3%). For the year, crude is up by 25.3% till date. On the currency markets today, dollar continued to decline pushing crude prices further up. A weak dollar makes oil more attractive as an investment alternative. The dollar index, which measures the greenback against a basket of six major currencies, was at 73.007, down from 73.190 in late Monday. Nigeria's rebel group Movement for the Emancipation of the Niger Delta, MEND, attacked a Shell oil flow station in the south of the country last weekend. Shell is a unit of Royal Dutch Shell. In recent months, MEND has claimed responsibility for a series of attacks on oil facilities in the Niger Delta. June natural gas fell 3 cents to $11.15 per million British thermal units. Against this backdrop, June reformulated gasoline was up 5 cents at $3.11 a gallon and June heating oil fell rose 4 cents to $3.35 a gallon. EIA reported today that global oil consumption will likely grow by 1.2 million barrels per day this year, but the consumption of liquid fuels and other petroleum is expected to decline by around 190,000 barrels per day because of the economic slowdown and high petroleum prices. The EIA also expects regular gasoline prices to average $3.52 per gallon this year, up 71 cents from a year ago. Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude's biggest yearly gain in five years. At the MCX, crude oil for May delivery closed at Rs 4,999/barrel, higher by Rs 120 (2.5%) against previous day's close. Natural gas for July delivery closed at Rs 464.5/mmbtu, higher by Rs 6.6/mmbtu (1.5%).</DIV>

Crude rises for third straight day

Prices add more than $9 in the last three sessionsCrude prices rose by almost $2 once again on Tuesday, 06 May, 2008. Price rose due to supply problems continuing at Nigeri…

07 May 2008

Bullions glitter on crude rise

<DIV> All time high crude price pulls up precious metals A new all time high crude price pulled up bullion metals today, Monday, 05 May, 2008. With today, bullion metals went up for two straight days. On the other hand, dollar also weakened despite a strong non-manufacturing Institute if Supply Management's report. Silver prices also rose for the day. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment. Comex Gold for June delivery rose $16.1 (1.9%) to close at $874.1 ounce on the New York Mercantile Exchange. During intra day trading, prices touched a high of $874.8. Last week, gold prices lost $32 (3.6%) against previous week's close. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. This year, gold prices have gained 4.5% for the till date against a 9% drop for the dollar against the euro. For April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%. Comex Silver futures for July delivery rose 36 cents (2%) to $16.83 an ounce. Silver has gained 13% in 2008 till date. For April, it closed lower by 5.5%. Silver gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years. On the currency markets today, the U.S. dollar weakened even after a report from the Institute for Supply Management showed that nonmanufacturing sectors of the U.S. economy expanded during April after three months of contraction. The dollar index, which tracks the performance of the greenback against a basket of currencies, was down 0.4% to 73.19. The ISM nonmanufacturing index rose to 52.0% from 49.6% in March. The increase was unexpected. In the energy market today, crude prices ended near about $120/barrel due to supply disruptions at Nigeria. Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. At the MCX, gold prices for June delivery closed higher by Rs 157 (1.4%) at Rs 11,464 per 10 grams. Prices rose to a high of Rs 11,473 per 10 grams and fell to a low of Rs 11,320 per 10 grams during the day's trading. At the MCX, silver prices for May delivery closed Rs 303 (1.4%) higher at Rs 22,2029/Kg. Prices opened at Rs 22,210/kg and went to a high of Rs 22,501/Kg during the day's trading.</DIV>

Bullions glitter on crude rise

All time high crude price pulls up precious metalsA new all time high crude price pulled up bullion metals today, Monday, 05 May, 2008. With today, bullion metals went up f…

06 May 2008

All time high for Crude

<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>In the past two sessions, crude prices go up by almost $7 Crude prices rose by more than $3 once again on Monday, 05 May, 2008. Price rose due to supply problems once again emerging at Nigeria. The weak dollar also pushed up the crude price today. It touched a new high of $119.97/barrel today during intra day trading and closed a little short of $120/barrel for the day. Crude-oil futures for light sweet crude for June delivery closed at $119.97/barrel (higher by $3.65/barrel or 3.1%) on the New York Mercantile Exchange. In the past two sessions, crude prices have gone up by almost $7. Before today, last Monday, 28 April, 2008, prices touched a historic high of $119.9/barrel. For the year, crude is up by 23.7% till date. On the currency markets today, the U.S. dollar weakened even after a report from the Institute for Supply Management showed that nonmanufacturing sectors of the U.S. economy expanded during April after three months of contraction. The dollar index, which tracks the performance of the greenback against a basket of currencies, was down 0.4% to 73.19. The ISM nonmanufacturing index rose to 52.0% from 49.6% in March. The increase was unexpected. Nigeria's rebel group Movement for the Emancipation of the Niger Delta, MEND, attacked a Shell oil flow station in the south of the country last weekend. Shell is a unit of Royal Dutch Shell. In recent months, MEND has claimed responsibility for a series of attacks on oil facilities in the Niger Delta. June natural gas climbed 40 cents to end at $11.18 per million British thermal units. Against this backdrop, June reformulated gasoline gained 8.65 cents to end at $3.0529 a gallon, while June heating oil rose 8.78 cents to finish at $3.3065 a gallon. Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude's biggest yearly gain in five years. At the MCX, crude oil for May delivery closed at Rs 4,857/barrel, higher by Rs 127 (2.7%) against previous day's close. Natural gas for July delivery closed at Rs 454/mmbtu, higher by Rs 15.1/mmbtu (3.4%).</DIV>

All time high for Crude

In the past two sessions, crude prices go up by almost $7Crude prices rose by more than $3 once again on Monday, 05 May, 2008. Price rose due to supply problems …

06 May 2008

Unitech, DLF May 2008 futures at premium

Unitech, DLF May 2008 futures at premium

Turnover in F&O segment declinesNifty May 2008 futures were at 5205.10, at a premium of 12.85 points as compared to spot closing of 5192.25.The NSE's futures & options (F&O…

06 May 2008

Small-cap, mid-cap indices buck slide in Sensex

<DIV>After trading within a narrow range earlier in the day, the market declined in late trading as US stock futures indicated lower opening on the Wall Street on Monday, 5 May 2008. Dow futures were down 105 points and S&P 500 futures were down 6.80 points. Realty and healthcare stocks outperformed the market. Consumer durables and IT stocks dropped. Small-cap and mid-cap counters were active throughout the session with their barometer indices outperforming the Sensex. European markets, which opened after Indian market, were mixed. France's CAC 40 was down 0.29% whereas Germany's DAX was up 0.02%. The stock market in UK was closed for a holiday. Asian markets, which opened before Indian market, were mostly in green. Key indices in China, and Singapore were up 0.37% to 1.84%. However, Taiwan's Taiwan Weighted Index was down 1.41% and Hong Kong's Hang Seng was down 0.22%. Markets in Japan, and South Korea were closed for holiday. The 30-share BSE Sensex fell 109.22 points or 0.62% at 17,490.90. Sensex gained 135.58 points at day's high of 17,735.70, hit in the early afternoon trade. The index lost 142.85 points at day's low of 17,457.27, hit in the late trade. The broader based S&P CNX Nifty was down 35.95 points or 0.69% at 5192.25. Nifty May 2008 futures were at 5205.10, at a premium of 12.85 points as compared to spot closing. As per provisional data, foreign funds sold shares worth a net Rs 236.81 crore today. Domestic funds bought shares worth a net Rs 457.16 crore. The market breadth was strong on BSE with 1613 shares advancing as compared to 1118 stocks that declined. 45 stocks remained unchanged. The BSE Mid-Cap index rose 0.85% to 7,299.26 and BSE Small-Cap index rose 0.27% to 8,845.35. Both these indices outperformed the Sensex. BSE clocked a turnover of Rs 6350 crore as against Rs 6,606.18 on Friday, 2 May 2008. The NSE's futures & options (F&O) segment turnover was Rs 32972.85 crore, which was lower than Rs 36304.41 crore on Wednesday, 30 April 2008. India's largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 0.34% to Rs 2,665.70. India's largest engineering and construction firm by revenue Larsen & Toubro fell 0.25% to Rs 3133.10. The stock had earlier touched a high of Rs 3262. The firm is reportedly set to revamp its corporate structure to create a dozen operating companies under the direction of a separate board of directors. Effective 1 July 2008, the move will lead to L&T becoming the umbrella organisation with a board to administer the performance of all businesses and ownership of the brand, pegged at around $2 billion. The BSE Bankex outperformed the Sensex, sliding 0.13% to 9,130.61. Kotak Mahindra Bank (up 5.81% at Rs 869.45), Federal Bank (up 2.78% at Rs 260.60), Union Bank of India (up 2.77% at Rs 168.75) and Yes Bank (up 2.49% at Rs 178.85), spurted. Public sector lender Allahabad Bank rose 6.78% at Rs 92.95. Net profit of Allahabad Bank rose 34.8% to Rs 169.51 crore on 30.3% increase in operating income to Rs 1980.17 crore in Q4 March 2008 over Q4 March 2007. India's largest private sector bank by assets ICICI Bank fell 0.25% at Rs 933.15. India's largest commercial bank State Bank of India declined 2.36% to Rs 1781.90. The bank reported 26.1% rise in net profit to Rs 1883.25 crore on 26.7% growth in operating income to Rs 16393.93 crore in Q4 March 2008 over Q4 March 2007. The BSE Realty index outperformed the Sensex, gaining 0.26% to 8,741.39. Unitech (up 4.01% at Rs 330.90), Penland (up 3.37% at Rs 108.95), Mahindra Lifespace Developers (up 2.14% at Rs 560.95), and Purvankara Projects (up 1.66% at Rs 300.45), edged higher. However, India's largest real estate developer by market capitalisation DLF fell 2.10% to Rs 705.05. The BSE IT index underperformed the Sensex, falling 0.95% to 4,317.34. i-Flex Solutions (down 5.36% at Rs 1,345.25), HCL Technologies (down 2.70% at Rs 288.10), Wipro (down 2.41% at Rs 490.10), TCS (down 1.72% at Rs 924.55), Satyam Computer (down 1.34% at Rs 487.50) and Infosys Technologies (up 0.12% at Rs 1,787.35), slipped. The BSE Auto index underperformed the Sensex, slipping 1.01% to 4,812.13. Hero Honda Motor (down 3.48% at Rs 818.15), TVS Motor (down 2.08% at Rs 44.65), and Maruti Suzuki (down 0.46% at Rs 784.40), declined. India's largest commercial vehicles maker by sales Tata Motors slipped 0.71% at Rs 685.55. Tata Motors on Friday, 2 May 2008, reported a decline of 5.8% in automobile sales, including exports, at 38,149 units for April 2008 compared with 40,486 units in the same month last year, largely on account of dip in passenger car segment and exports. Passenger vehicle sales saw a decline of 12%, with total sales of 14,843 units in the domestic market in April 2008 India's leading tractor maker by sales Mahindra & Mahindra slipped 1.86% at Rs 677.50. Goldman Sachs will invest Rs 700 crore in Mahindra & Mahindra (M&M) by picking up convertible debentures which will give it a 3.68% stake in the auto major. Drug maker Suven Life Sciences surged 2.12% to Rs 36.05 after the company said it has received European product patent from European Patent Office for its clinical candidate SUVN-502. Jewellery maker Surana Corporation was locked at upper limit of 4.97% to Rs 47.55 on reporting 371.03% surge in net profit to Rs 6.11 crore on 37.44% growth in total income to Rs 619.33 crore in Q4 March 2008 over Q4 March 2007. Real estate developer Housing Development and Infrastructure (HDIL) fell 1.54% to Rs 832.95. The company has reportedly received Maharashtra state government's approval for the Mumbai airport slum rehabilitation programme. Telecom service provider Spice Communications surged 5.90% to Rs 42.20 on reports Telekom Malaysia is looking at increasing its stake in the company to at least 51% through a combination of open offer and acquisition of shares the co-promoters. Titagarh Wagons clocked the highest turnover of Rs 225.07 crore on BSE. Housing Development and Infrastructure (HDIL) (Rs 198.60 crore), Reliance Industries (Rs 197.27 crore), Unitech (Rs 166.97 crore) and Jaiprakash Associates (Rs 154.87 crore), were the other turnover toppers on BSE in that order. Tata Teleservices (Maharastra) reported the highest volume of 1.86 crore shares on BSE. Kashyap Technologies (1.47 crore shares), Ispat Industries (1.40 crore shares), IFCI (1.22 crore shares) and Reliance Natural Resources (1.09 crore shares), were the other volume toppers on BSE in that order. US market ended with modest gains on Friday, 2 May 2008 after the latest non-farm payroll data showed 20,000 jobs were lost in April 2008, a far better result than an expected loss of 75,000 jobs. Dow Jones Industrial Average gained 48.2 points or 0.4% at 13,058.20, the Nasdaq Composite index fell 3.72 or 0.2%, to 2,476.99 and the S&P 500 ended up 4.56 points to 1,413.90. High inflation remains the biggest concern for the Indian stock market. The measures taken by the Union government to control inflation have also added to uncertainty on corporate profit. Finance Minister P Chidambaram on Tuesday, 29 April 2008, said government will impose export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. He said the measures were being taken to improve domestic supplies and to moderate prices. The government has already banned export of cement and non-basmati rice. Given that parliamentary elections are scheduled next year (in May 2009), the government may leave no stone unturned in its attempt to rein in inflation. This is bad news for commodity scrips like cement, steel etc. In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review. While the central bank has mentioned price stability as its key priority, the overall undertone of the policy is not as hawkish as market had feared. The RBI governor Y V Reddy expects inflation to moderate in the next 2-3 months. Good Q4 results March 2008 results and firm global markets, triggered a solid rebound in the Indian market over the past few days. Buying by domestic institutions has supported the market. From a recent low of 14,809.49 on 17 March 2008, the Sensex climbed 2,790.63 points or 18.84% to 17,600.12 on 2 May 2008. The structural growth drivers of the Indian economy remain intact – India's economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India's economy. Rating agency CRISIL in its latest outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver. Another pointer to the fact that the long term India growth story remains intact is the outcome of the latest 2008 US-India Business Council (USIBC) survey, according to which, India is, and will continue to be, a premier destination for investment by US firms, with a large number of respondents rating future economic growth in India as highly sustainable.</DIV>

Small-cap, mid-cap indices buck slide in Sensex

After trading within a narrow range earlier in the day, the market declined in late trading as US stock futures indicated lower opening on the Wall Street on Monday, 5 May 2…

06 May 2008

US Market holds on to gains

<DIV> Federal Reserve's rate cut and better than expected employment report boost market The last week that ended on Friday, 02 May, 2008 was quite eventful at US Market. It started with a couple of important news in the merger front. Thereafter market got swayed by Federal Reserve's next slot of interest rate cuts. Market did react in a bit whimsical fashion to the interest rate cut. The week finally ended with the employment report which came as better thane expected. The Dow Jones Industrial Average gained 166 points for the week. Tech - heavy Nasdaq gained 54 points. S&P 500 gained 16 points. In percentage terms the three indices gained 0.3%, 0.8% and 0.5% respectively. After remaining a bit subdued in the earlier part of the week, market picked up momentum in the later part. Infact it can be said that it ended up being a three-day work week. That's because things didn't get really interesting for market participants until Wednesday, 30 April, 2008. On Wednesday, The Federal Open Market Committee announced today that it cut the fed funds and discount rates by 25 basis points. This left the fed funds rate at 2% and the discount rate at 2.25%. The Fed said economic activity remains weak, while inflation expectations are picking up. The stock market was in rally-mode ahead of the Fed decision and got an added boost shortly after the headlines hit the wires. In striking fashion, it sold off sharply late in the day and ended Wednesday in negative territory. The knee-jerk explanation was that there was disappointment in the directive and the idea that the Fed didn't sound more hawkish on inflation. On Thursday, 1 May, the indices soared. Huge gains in the financial and technology sectors powered the advance, as did a noticeable drop in commodity prices that were impacted by a strengthening dollar. On Friday, 2 May, 2008 the Fed announced intentions to increase its Term Auction Facility to $150 billion from $100 billion, and also allow AAA asset-backed securities to be pledged as collateral. Continuing to act on proactive lines, the Fed increased swap lines with the Swiss National Bank to $12 billion from $6 billion and increased swap lines with the European Central Bank to $50 billion from $20 billion in a multilateral effort to address persistent liquidity pressures. Also, on Friday, the job report was out where unemployment rate for April fell to 5% from 5.1% in March. April's unemployment rate was less than the consensus estimate of 5.2%. Nonfarm payrolls for April slipped by 20,000, which is less than the revised decline of 81,000 experienced in March and also less than the 75,000 decline economists expected. Importantly, these figures do not reflect the kind of weakness often associated with a recession. The stock market made a nice move in the wake of the jobs report, but succumbed to some week-end selling interest that pared its gains considerably. Among major earning reports for the week, Colgate-Palmolive, General Motors and Procter & Gamble - all topped expectations. Humana and Sysco topped expectations, while Verizon reported in-line earnings. Credit card processors Visa and MasterCard both reported their quarterly earnings. Visa topped its estimate by 17%, while MasterCard beat by 30%. Among major deal news during the week, privately held snack food company, Mars is going to acquire Chicago-based Wrigley for roughly $23 billion, or $80 per share in cash, representing a 28% premium over Friday's closing level. Warren Buffet said that Berkshire Hathaway will provide $6.5 billion in financing. On the economic report front, advance first quarter GDP rose by 0.6%, topping the consensus estimate of 0.5%. Also the Conference Board said April consumer confidence fell to 62.3 from 65.9, marking the lowest consumer confidence in roughly five years. The number, however, is better than expected market projected the reading to slip to 61. Executive Summary For the week, indices registered modest gains. DJIx and S&P 500, each closed up by 1.3% and 1.1% respectively. Nasdaq closed up by 2.2%. Federal Reserve's rate cut decision, earning and economic reports dominated the week. The Federal Open Market Committee announced today that it cut the fed funds and discount rates by 25 basis points. This left the fed funds rate at 2% and the discount rate at 2.25%. Advance first quarter GDP rose by 0.6%, topping the consensus estimate of 0.5%. For the year, Dow, Nasdaq and S&P 500 are down by 1.6%, 6.6% and 3.7% respectively</DIV>

US Market holds on to gains

Federal Reserve's rate cut and better than expected employment report boost marketThe last week that ended on Friday, 02 May, 2008 was quite eventful at US Market. It start…

05 May 2008

Crude bounces back

<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>Prices rise almost $4 due to problems resurfacing in Middle East Crude prices rose by more than $3 on Friday, 02 May, 2008. Price rose after reports that Turkish planes bombed bases of separatist Kurds in northern Iraq. But for the week, price closed lower by almost 2%. During the week, crude price began to slip as the dollar strengthened against its rivals. The same reduced the commodities' appeal as a hedge against inflation. Prices also continued to slip for the third straight day after weekly inventory report by the Energy Department showed that crude supplies rose more than forecast. Crude-oil futures for light sweet crude for June delivery closed at $116.3/barrel (higher by $3.8/barrel or 3.4%) on the New York Mercantile Exchange. Last Monday, 28 April, 2008, prices touched a historic high of $119.9/barrel. For the year, crude is up by 20.6% till date. EIA reported earlier this week that U.S. crude oil imports averaged 10.2 million barrels per day last week, up 174,000 barrels per day from the previous week. Traders had anticipated that U.S. crude-oil supplies advanced 950,000 barrels in the week ended 25 April. Crude inventories were boosted by increasing imports. U.S. refineries operated at 85.4% of their operable capacity last week, down 0.2% from the last week. On the currency markets on Friday, U.S. dollar rallied against most other major currencies. The dollar index, which tracks the performance of the greenback against a basket of currencies, was up 0.4% to 73.53. On Friday, the job report was out where unemployment rate for April fell to 5% from 5.1% in March. April's unemployment rate was less than the consensus estimate of 5.2%. Nonfarm payrolls for April slipped by 20,000, which is less than the revised decline of 81,000 experienced in March and also less than the 75,000 decline economists expected. Importantly, these figures do not reflect the kind of weakness often associated with a recession. Against this backdrop, June reformulated gasoline gained 8.82 cents at $2.9664 a gallon and June heating oil rose 10.1 cents at $3.2187 a gallon. June natural gas futures rose 20.4 cents to $10.765 per million British thermal units. Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude's biggest yearly gain in five years.</DIV>

Crude bounces back

Prices rise almost $4 due to problems resurfacing in Middle EastCrude prices rose by more than $3 on Friday, 02 May, 2008. Price rose after reports that Turkish …

05 May 2008

Sensex ends firm at 17,600

<DIV>The Market remained buoyant on strong FII inflows and lifted the Sensex past the 17,600 mark. Resuming on a positive note at 11,384, 273 points above its previous close of 17,287, the Sensex advanced further and surged past the 17,600 mark in the afternoon. A positive close in most of the Asian indices with gains of over 2% each triggered a major rally in heavyweight, bankex, auto and realty stocks that helped the index surge to an intra-day high of 17,621. The Sensex finally closed with gains of 313 points at 17,600, while the Nifty added 62 points to close at 5,228. The breadth of the market was positive. Of the 2,767 stocks traded on the BSE, 1,396 stocks advanced, 1,300 stocks declined and 71 stocks ended unchanged. Among the sectoral indices, the BSE Bankex index gained 3.66% followed by BSE Auto index, which was up 2.86%, BSE Realty index was up by 2.51%, BSE IT index rose up by 2.27% and BSE CG index surged up by 2.25%. BSE Power jumped by 1.92%, BSE Oil & Gas index moved up by 1.82%, BSE PSU moved up 1.13% and BSE Teck index was up by 1.00%. BSE CD index, BSE FMCG index and BSE HC index also ended the day in positive territory. However BSE Metal index ended the day in red and was down by 1.56%. Leading the upsurge in the Sensex, Reliance Energy soared by 6.85% at Rs1,523.30. ICICI Bank advanced 6.38% at Rs935.50, Maruti rose 6.21% at Rs788, Jaiprakash advanced 5.77% at Rs286.95, L&T added 4.58% at Rs3,141.05, Tata Motors jumped 4.27% at Rs690.45 and Mahindra & Mahindra gained 2.98% at Rs690.35. Wipro advanced 2.78% at Rs502.20, State Bank of India rose 2.58% at Rs1,822.15, Satyam Computer Services advanced 2.47% at Rs494.10, TCS added 2.31% at Rs940.75, RIL jumped 2.29% at Rs2,674.85, DLF gained 2.11 % at Rs720.12, Infosys scaled up 2.04% at Rs1,789.50, NTPC moved up by 2.01% at Rs200.70 and HDFC Bank was up 1.59% at Rs1,538.95. However, Hindalco dropped 4% at Rs185.85, Reliance Communications was down by 3.20% at Rs561.20, while Tata Steel, Grasim, HDFC, Ambuja Cement, ACC, Cipla, Bharti Airtel and HUL also ended at lower levels. Banks stocks rallied sharply. Federal Bank was among the major gainers and was up by 5.54% at Rs253.55, Bank of India surged 5.27% at Rs360.70, Kotak Bank soared 4.10% at Rs821.70, Karnataka Bank advanced 3.91% at Rs209.90, Indian Overseas jumped 3.14% at Rs152.85 and Allahabad Bank closed stronger by 3.08% at Rs87.05, SBI, Yes Bank, Union Bank, Centurion Bank of Punjab, Canara Bank, HDFC Bank, Bank of Baroda and Andhara Bank were up by 1% each. However Punjab National Bank ended the day in red and was down by 1.74% at Rs541.30. On the volume front, over 2.66 crore IFCI shares changed hands on the BSE followed by ISPAT Industries (1.24 crore shares), RNRL (1.13 crore shares), Kashyap (0.73 lakh shares) and Idea Cellular (0.69 lakh shares).</DIV>

Sensex ends firm at 17,600

The Market remained buoyant on strong FII inflows and lifted the Sensex past the 17,600 mark. Resuming on a positive note at 11,384, 273 points above its previous close of 1…

04 May 2008

Global cues to dictate near term trend

<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>Local market are expected to take cue from the global markets in the near term as earnings season has almost come to an end with majority of frontline companies having already declared their results. Corporate results have been good. Aggregate results of 988 companies showed 17.10% rise in net profit on 21.60% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 27.30% rise in net profit on 23.40% rise in net sales in the year ended March 2008 over year ended March 2007. i-flex Solutions, Century Textiles, JSW Steel, Union Bank of India and Ashok Leyland among others are the key results to watched out for during the forthcoming week Markets across the globe have managed to stage a sharp pullback from lows hit in mid January 2008 on hopes the global credit-market turmoil will ease. The benchmark index BSE Sensex has risen 2,790.63 points or 18.84% from its low of 14,809.49 touched on 17 March 2008. However, it is still 3,606.65 points or 17% away from its all time high of 21,206.77 hit on 10 January 2008. The market extended gains for the fourth straight week in the week ended Friday, 2 May 2008, tracking firm global markets. The 30-share BSE Sensex gained 474.14 points or 2.76% to 17,600.12, in the week ended. The S&P CNX Nifty rose 116.50 points or 2.27% to 5228.20, in the week. Inflation remains the biggest concern for the Indian stock market. The measures taken by the Union government to control inflation have also added to uncertainty on corporate profit. Finance Minister P Chidambaram on Tuesday, 29 April 2008, said government will impose export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. He said the measures were being taken to improve domestic supplies and to moderate prices. The government has already banned export of cement and non-basmati rice. Given that parliamentary elections are scheduled next year (in May 2009), the government may leave no stone unturned in its attempt to rein in inflation. The structural growth drivers of the Indian economy remain intact – India's economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India's economy. Rating agency CRISIL in its latest outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.</DIV>

Global cues to dictate near term trend

Local market are expected to take cue from the global markets in the near term as earnings season has almost come to an end with majority of frontline companies …

04 May 2008

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