Indian Stock News by Experts

Sensex ends firm above 14,100

<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>The market remained buoyant on strong foreign institutional investor (FII) inflows and the index surged past the 14,200 mark in intra-day trades. Resuming on a negative note at 13,838, 12 points below its previous close of 13,850, Sensex turned positive and crossed the 14,000 mark in the afternoon. A positive close in most of the Asian indices triggered a major rally in heavyweight, fast moving consumer goods (FMCG), power, metal and banking stocks that helped Sensex surge to an intra-day high of 14,206. Sensex finally closed with gains of 254 points at 14,104, while Nifty added 81 points to close at 4,240. The market breadth was extremely positive. Of the 2,657 stocks traded on the BSE, 1,849 stocks advanced, while only 734 stocks declined; 74 stocks ended unchanged. Among the sectoral indices, BSE FMCG gained 4.35% followed by BSE Power index, which was up 4.29%. BSE Metal index was up 3.96%, BSE Bankex index gained 3.12% and BSE capital goods (CG) index gained 3.10%. BSE public sector unit (PSU) index jumped by 2.50%, BSE information technology (IT) index moved up by 1.89% and BSE consumer durables (CD) index was up 1.66%. BSE TEck index, BSE Oil & Gas index, BSE health care (HC) and BSE Realty index also ended the day in positive. However, BSE Auto index closed in the red, down 0.96%. Leading the upsurge in Sensex, Reliance Infra soared 6.83% at Rs846. BHEL advanced 6.04% at Rs1597.50, ITC rose 6% at Rs189.90, Wipro advanced 5.93% at Rs394.75, Cipla added 4.99% at Rs237.75, Reliance Communications jumped 4.83% at Rs468.15, Tata Steel gained 4.32% at Rs624.35 and ACC moved up 4.08% at Rs564.50. SBI, M&M, Hindalco, HDFC, ICICI Bank, TCS, L&T, Grasim and HUL also ended the day in positive territory with 2-3% each. However, Maruti Suzuki India dropped 9.29% at Rs587.95, JP Associates was down 4.26% at Rs159.45 while Bharti Airtel, DLF and Tata Motors also ended at lower levels. On the volume front, over 2.21 crore Reliance Natural Resources Ltd (RNRL) shares changed hands on the BSE followed by IFCI (1.23 crore shares), Reliance Petroleum Ltd (RPL; 0.95 crore shares), Ispat Industries (0.72 crore shares) and JP Associates (0.65 crore shares).</DIV>

Sensex ends firm above 14,100

The market remained buoyant on strong foreign institutional investor (FII) inflows and the index surged past the 14,200 mark in intra-day trades. Resuming on a n…

23 Jul 2008

US Market posts slight losses

<DIV> Indices register little losses after a couple of pharmaceutical companies come under scanner US market registered little losses today, Monday, 21 July, 2008 after crude prices climbed up again and Banc of America announced a substantial drop in its profits but however topping Wall Street's estimates. Two pharmaceutical companies postponing their earning report till market closes also took a bit of toll on the market sentiment. Seven out of ten sectors ended in the red today led by consumer discretionary. Energy sector was one of the top gainers. After a modest climb, The Dow Jones industrial Average ended the day with a loss of 29.23 points at 11,467.34. The Nasdaq Composite Index, finished lower by 3.25 points at 2,279.53. S&P 500 finished lower by 0.68 points at 1,260. Twenty-one out of thirty Dow stocks ended in the red today led by Merck and American Express. On the economic front, June leading indicators fell 0.1%, which was in-line with expectations. The report had a limited impact on the stock market. Bank of America reported a 43% drop in earnings per share to $0.72. However, the result easily topped Wall Street's forecast due to a lower-than-expected write-down of $1.2 billion. The stock closed higher by 4%. Merck along with Schering-Plough delayed releasing their second-quarter earnings until after the market's close as Norwegian researchers said the study found a cholesterol drug, Vytorin, marketed by the two companies to be ineffective in curtailing a cardiac condition. The healthcare sector recently took a sharp slip into negative ground after momentarily spiking upward into the green. The drop coincides with negative news related to two marquee names in the pharmaceutical industry. Barring HDFC Bank, Rediff.com and Patni Computers, all other Indian ADRs ended in the red today. Rediff.com was the largest gainer with the ADR soaring more than 4%. Crude oil prices rose for the first time in five sessions today. Price spurred up as a tropical storm, Dolly, entered the Gulf of Mexico, and Iran, the world's fourth-biggest producer, resisted demands to suspend nuclear research. Crude-oil futures for light sweet crude for August delivery closed at $131.04 /barrel (higher by $2.16/barrel or 1.7%) on the New York Mercantile Exchange. It was the first increase in five days. A hurricane watch was issued for the Texas coastline from Brownsville to Port O'Connor at morning time today by the Miami-based hurricane center. Dolly moved over the Yucatan Peninsula earlier today. Petroleos Mexicanos, Mexico's state oil company, produces about 1.07 million barrels of oil a day in the Bay of Campeche, which is south of the projected track of the storm. The northern Gulf of Mexico accounts for about 25% of U.S. oil production. Trading was relatively light, with volume on the New York Stock Exchange passing 1.2 billion, and advancing stocks outran those declining nearly 2 to 1. On the Nasdaq, more than 753 million shares traded, and advancers beat decliners 5 to 4. For tomorrow, Wachovia Bank, UPS, United Health, Caterpillar and DuPont are some of the more widely-held companies scheduled to announce their latest quarterly results Tuesday morning. There is no market moving economic data due tomorrow. Treasury Secretary Henry Paulson is scheduled to speak about the U.S. economy and markets before the opening bell.</DIV>

US Market posts slight losses

Indices register little losses after a couple of pharmaceutical companies come under scannerUS market registered little losses today, Monday, 21 July, 2008 after crude pric…

22 Jul 2008

Property prices down

<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>Housing Development Infrastructure on Monday said countries real estate sector is going to witness a 20-25 per cent price fall but the financial capital would be insulated and would see a 10-15 per cent correction. "There is still supply constraint in Mumbai. Hence, the fall will be in the range of 10-15 per cent, if there is further reduction in demand. But, the remaining part of the country is like to see a 20-25 per cent correction," HDIL's Managing Director Sarang Wadhawan told reporters on the sidelines of the company's Annual General Meeting here. Wadhawan said that since the industry is cyclic in nature, the current phase of demand recession may be there for two years and then the boom period starts to stay for another five years or vice versa. The company recorded over 56 per cent rise in net profit for the quarter ended June 30 at Rs 317.93 crore as against Rs 202.68 crore in the corresponding quarter previous fiscal. It would not be impacted much by the slowdown in realty sector as its operations is mainly confined into the Mumbai metropolitan area. "The company is confident of executing all the projects on time and continues to register positive growth in the remaining part of the fiscal," Wadhawan said. HDIL's turnover increased by 28.6 per cent during the first quarter of the current fiscal at Rs 570 crore over the same quarter last fiscal. The company, he said, is likely to develop projects on 10-12 million square feet area in the city including the Mumbai Airport Slum Rehabilitation Project (MASRP) and is set to spread it wings to Hyderabad and Kochi. Wadhawan said the first phase of the MASRP has already been kicked off and would be completed in the next one and a half year-two year time. The company has started construction on around 15 mn sq feet of area for rehabilitating around 20,000 families in the first phase. HDIL also plans to set up a multi-product SEZ at Virar in Thane district. "We have acquired 2,300 acre of land and are in the process of acquiring additional 200 acre. After that, we will approach to the Government for approval," Wadhwan said.</DIV>

Property prices down

Housing Development Infrastructure on Monday said countries real estate sector is going to witness a 20-25 per cent price fall but the financial capital would be…

22 Jul 2008

Bullion metals register gains

<DIV> Higher crude price and weak dollar puts some shine back on precious metals Higher crude prices led to higher bullion metal prices today, Monday, 21 July, 2008. Weakness in the US dollar also led to higher bullion metal prices today. Going economic concerns about the current health of the US economy had been increasing the metal's demand as a safe asset against the rising inflation in recent times. Silver prices also rose for the day. Comex Gold for August delivery rose $5.7 (0.6%) to close at $963.7 ounce on the New York Mercantile Exchange. It rose to a high of $966.5 during intra day trading. Last week, it ended marginally lower by $2.6. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then. This year, gold prices have gained 15% till date against a 5.5% drop for the dollar against the euro. Gold prices ended June, 2008 with a gain of 4.1%. The yellow metal ended second quarter with a marginal gain of 0.7%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, 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%. Today, Comex silver futures for September delivery rose 23 cents (1.2%) to $18.43 an ounce. Silver has gained 25% in 2008 till date. For the second quarter, it gained a paltry 1.4%. Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had 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. 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 currency markets on Monday, the U.S. dollar slipped after getting some support earlier on better-than-expected results from Bank of America. The banking giant reported a 41% profit fall for the second quarter but still beat Wall Street earnings estimates. The dollar index, a measure of the greenback against a trade-weighted basket of currencies, was down 0.1% at 72.069. In the crude market on Monday, crude futures rose for the first time in five sessions, rebounding from last week's biggest weekly losses. Prices rose after multilateral talks over Iran's controversial nuclear program didn't yield progress. Cruse also crept higher as Tropical Storm Dolly headed toward the western Gulf of Mexico. Crude for August delivery closed up $2.16 (1.7%) at $131.04 a barrel on the New York Mercantile Exchange. The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. 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. Gold and oil has climbed 42% and 82% since the past one year. During last week of June, Federal Reserve yesterday sharpened its focus on inflation, saying that the upside risks to inflation have increased. Fed held its target for short-term interest rates steady at 2%. Since last September, Fed has axed interest rates seven times and brought it down to 2%. On the other hand, after keeping interest rates unchanged at 4% since June, 2007, ECB hiked the same to 4.25% last month. Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. In 2006, silver had jumped 46% while gold gained 23%. At the MCX, gold prices for August delivery closed higher by Rs 95 (0.72%) at Rs 13,305 per 10 grams. Prices rose to a high of Rs 13,366 per 10 grams and fell to a low of Rs 13,227 per 10 grams during the day's trading. At the MCX, silver prices for September delivery closed Rs 266 (1.04%) higher at Rs 25,700/Kg. Prices opened at Rs 25,515/kg and rose to a high of Rs 25,826/Kg during the day's trading.</DIV>

Bullion metals register gains

Higher crude price and weak dollar puts some shine back on precious metalsHigher crude prices led to higher bullion metal prices today, Monday, 21 July, 2008. Weakness in t…

22 Jul 2008

Crude rises for first time in five sessions

<DIV> Prices rise on Iran's threats and as storm Dolly comes near the Gulf Crude oil prices rose for the first time in five sessions today, Monday, 21 July, 2008. Price spurred up as a tropical storm, Dolly, entered the Gulf of Mexico, and Iran, the world's fourth-biggest producer, resisted demands to suspend nuclear research. Last week crude had coughed up almost $16.5 in four sessions. Prices had plunged once again on economic worries surrounding the US economy. Crude-oil futures for light sweet crude for August delivery closed at $131.04 /barrel (higher by $2.16/barrel or 1.7%) on the New York Mercantile Exchange. It was the first increase in five days. Last week, prices coughed up $16.5 (11.2%). It's now 11% lower than the $147.27 record high hit last Thursday. Crude prices gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. Prices are 74% higher than a year ago. For the year, crude is up by 38.7% till date. A hurricane watch was issued for the Texas coastline from Brownsville to Port O'Connor at morning time today by the Miami-based hurricane center. Dolly moved over the Yucatan Peninsula earlier today. Petroleos Mexicanos, Mexico's state oil company, produces about 1.07 million barrels of oil a day in the Bay of Campeche, which is south of the projected track of the storm. The northern Gulf of Mexico accounts for about 25% of U.S. oil production. On the other hand, Iran snubbed Western efforts to get it to suspend nuclear enrichment at talks in Geneva on 19 July setting the stage for new sanctions if the Middle East's second-largest oil producer doesn't respond to an existing proposal within two weeks. At the currency markets on Monday, the U.S. dollar slipped after getting some support earlier on better-than-expected results from Bank of America. The banking giant reported a 41% profit fall for the second quarter but still beat Wall Street earnings estimates. The dollar index, a measure of the greenback against a trade-weighted basket of currencies, was down 0.1% at 72.069. In its monthly report issued last week, OPEC lowered its forecast for world oil-demand growth for 2008 to 1.03 million barrels a day, which represents a decline of 70,000 barrels from its previous estimate. Global oil demand this year is expected to average 86.81 million barrels a day. Earlier this month, the Energy Information Administration projected that U.S. petroleum consumption will shrink by 400,000 barrels a day in 2008, 38% more than EIA's June projection of a decline of 290,000 barrels. Natural gas in New York declined amid an outlook supplies are ample at the height of the U.S. cooling season and the path of a storm in the Gulf of Mexico will miss production areas. Natural gas for August delivery fell 6 cents (0.6%) to settle at $10.51 per million British thermal units. At the MCX, crude oil for July delivery closed at Rs 5,599/barrel, higher by Rs 67 (1.21%) against previous day's close. Natural gas for July delivery closed at Rs 453.3/mmbtu, lower by Rs 3.6/mmbtu (0.8%).</DIV>

Crude rises for first time in five sessions

Prices rise on Iran's threats and as storm Dolly comes near the GulfCrude oil prices rose for the first time in five sessions today, Monday, 21 July, 2008. Price spurred up…

22 Jul 2008

MTN - RCOM Deal off

MTN - RCOM Deal off

The much-touted deal between Anil Ambani group company Reliance Communications (RCom) and South African telecom giant MTN was called off on Friday."The two sides were unable…

21 Jul 2008

Developments on the political front to set direction

<DIV>The market will take cues from the outcome of the government's vote of confidence in parliament scheduled on 21 July 2008 and 22 July 2008. Survival of the government in the vote of confidence will boost bourses. Movement of crude oil prices also holds key. Fears of further monetary tightening by the Reserve Bank of India continue to haunt bourses. Some expectations are that the government, if able to retain power after the vote of confidence, may put economic reforms on the fast track. Over the last four years, Left parities had stalled privatisation of state-run firms, pension reforms, higher foreign limits in insurance and more liberal norms for foreign bank. The government is holding a two-day special session of parliament on 21 July 2008 and 22 July 2008 to seek vote of confidence after it was reduced to minority following withdrawal of support by Left parties on 8 July 2008. The government hopes to retain power due to backing from Samajwadi Party, a regional party in Uttar Pradesh. The Q1 results season is on. The overall earnings of the corporate sector are seen rising about 15% in Q1 June 2008 over Q1 June 2007. That would be well below the 20-25% growth seen over the past few years. Capping inflation has been a major priority for India's central bank. Inflation based on the wholesale price index rose 11.91% in 12 months to 5 July 2008, just above the previous week's annual rise of 11.89%, government data released on 17 July 2008, showed. It is the highest reading since annual numbers in the current series became available in April 1995. The prices of crude, which touched a record high, had forced the Indian government to raise the fuel prices in the first week of June, adding to already rising inflation. Reserve Bank of India on 24 June had hiked both repo rates and cash reserve ratio by 50 basis points each to tame rising inflation. There are expectations of further monetary tightening in quarterly monetary policy review of RBI scheduled on 29 July 2008. Industrial production rose 3.8% in May 2008, much lower than revised 6.2% growth in April 2008, the government data released on Friday, 11 July 2008, showed. Industrial production growth for April 2008 revised downwards to 6.2% from earlier 7%. Despite recent sharp fall, crude oil is still up about 35% in calendar 2008 so far. Being oil dependent economy importing more than 70% of oil imports any increase in oil prices worsens the balance of payment position of the country. Global rating agency Fitch Ratings, on 15 July 2008, lowered India's domestic currency rating outlook to negative from stable due to the central government's worsening fiscal position. Foreign institutional investors (FIIs) sold shares worth Rs 2,771.50 crore in the month of July 2008 so far, till 16 July 2008. FIIs sold shares worth Rs 28,236.80 crore in the calendar year 2008. Mutual funds have bought shares worth Rs 511.80 crore in the month of July 2008 so far, till 16 July 2008.</DIV>

Developments on the political front to set direction

The market will take cues from the outcome of the government's vote of confidence in parliament scheduled on 21 July 2008 and 22 July 2008. Survival of the government in the…

21 Jul 2008

Sensex up 1060 points in two trading sessions

<DIV>Frenzied buying in index pivotals led by Reliance Industries, ICICI Bank and Bharti Airtel coupled with short covering triggered a solid rally on the bourses. A sharp fall in crude oil prices for the third day in a row on Thursday, 17 July 2008, boosted the sentiments. The rally was spread across sectors barring IT and metal. The market breadth was strong. As per provisional data, foreign funds bought shares worth a net Rs 408.21 crore and domestic institutional investors sold shares worth a net Rs 70.47 crore today, 18 July 2008. On the New York Mercantile Exchange, August 2008 crude settled $5.31 lower at $129.29 a barrel yesterday, 17 July 2008. European markets, which opened after Indian market, were in the red. Asian markets, which opened before Indian market, were mixed. The wholesale price index (WPI)-based annual rate of inflation rose to 11.91% in the week ended 5 July 2008, marginally higher than the 11.89% rise in the previous week. Inflation for the week ended 10 May 2008 was revised upwards to 8.57% from 7.82% reported earlier. The data was released after market hours yesterday, 17 July 2008. The 30-share BSE Sensex surged 523.55 points or 3.99% to 13,635.40. It hit a high of 13,684.27 in late trade. At the day's high, the Sensex surged 572.42 points. The Sensex lost 18.51 points at day's low of 13,093.34 hit in mid-morning trade. The broader based S&P CNX Nifty advanced 145.05 points or 3.67% to 4,092.25. Nifty July 2008 futures were at 4056.70, at a discount of 35.55 points as compared to spot closing. Sensex has risen 1059.60 points or 8.42% in last two trading days from its close of 12575.80 on 16 July 2008. Prior to this the BSE Sensex plunged 1350.44 points or 9.67% in four trading sessions from 13964.26 on 9 July 2008 to 12575.80 on 16 July 2008. Sensex is down 6651.59 points or 32.78% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7571.37 points or 35.70% away from its all-time high of 21,206.77 struck on 10 January 2008. Back to today's trade, the market breadth was strong on BSE with 1614 shares advancing as compared to 990 that declined. 83 remained unchanged. The BSE Mid-Cap index was 1.48% to 5,231.42 and the BSE Small-Cap index rose 1.05% to 6,454.03, as per provisional closing. Both these indices underperformed the Sensex. Political uncertainty will continue to weigh on the market early next week. The government is holding a two-day special session of parliament on 21 July 2008 and 22 July 2008 to seek vote of confidence after it was reduced to minority following withdrawal of support by Left parties on 8 July 2008. The government hopes to retain power due to backing from Samajwadi Party, a regional party in Uttar Pradesh. The total turnover on BSE amounted to Rs 5312 crore as compared to Rs 4,865.47 crore on Thursday, 17 July 2008. NSE's futures & options (F&O) segment turnover was Rs 52,794.98 crore, which was higher than Rs 46,300.96 crore on Thursday, 17 July 2008. Among the 30-member Sensex pack, 22 advanced while the rest slipped. Shares from banking and financial services providers rallied after the latest data showed inflation rose at a slower pace than expected in the year through 5 July 2008. India's largest private sector bank in terms of net profit ICICI Bank vaulted 13.02% to Rs 622.95 on 30.74 lakh shares after the bank's American depository receipt (ADR) rallied 9.4% to $29.02 on the New York Stock Exchange (NYSE) yesterday, 17 July 2008. It was the top gainer from Sensex pack. HDFC Bank (up 7.54% to Rs 1030.35), and State Bank of India (up 5.37% to Rs 1293), surged. India's largest dedicated housing finance company in terms of operating income HDFC soared 10.13% to Rs 2080. The stock rallied 9.91% yesterday, 17 July 2008 after the company's chairman Deepak Parekh denied rumors that Citigroup may sell its 11.74% stake in firm. India's largest private sector firm by market capitalization and oil refiner Reliance Industries advanced 4.69% at Rs 2110 on 14.12 lakh shares. The stock moved in a range of Rs 2125 and Rs 1995.05 in the day. Reliance Communications, the country's second largest cellular services provider in terms of market capitalisation was up 3.61% to Rs 433. Mukesh Ambani-owned Reliance Industries (RIL) on Thursday, 17 July 2008 said it has started arbitration proceedings against younger brother Anil Ambani's Reliance Communications (RCOM) to thwart the latter's merger with Africa's largest telco MTN. According to reports, RCom has dismissed the RIL move and said the arbitration can only happen when both parties refer the dispute to a person outside the court. RCom's talks with MTN, which have been extended once, are scheduled to end on 21 July 2008. Two oil exploration heavyweights saw edged higher. Oil & Natural Gas Corporation (ONGC) gained 3.68% to Rs 937 while Cairn India rose 0.72% to Rs 218 Bharti Airtel (up 7.50% to Rs 805), and Jaiprakash Associates (up 8.86% to Rs 162.25), gained from the Sensex pack. DLF (up 6.65% at Rs 455.55), Unitech (up 3.72% to Rs 147.90), Ansal Infrastructures (up 8.27% to Rs 93.95), Parsvnath Developers (up 1.70% to Rs 110), and Indiabulls Real Estate (up 6.54% to Rs 287.35), surged from the real estate space. Most IT pivotals declined after India's third largest software services exporter Wipro said it was cautious in the near term, echoing its larger rivals TCS and Infosys. Wipro slumped 4.23% to Rs 363.75. The company posted 3.16% rise in consolidated net profit to Rs 907.8 crore on 5.18% rise in total income to Rs 6087.1 crore in Q1 June 2008 over Q4 March 2007. The company announced the results before trading hours today, 18 July 2008. India's fourth largest software services exporter Satyam Computer Services plunged 7.53% to Rs 383 on 45.77 lakh shares. It was the top loser from Sensex pack. The company reported 17.32% rise in consolidated net profit to Rs 547.70 crore on 8.47% increase in consolidated sales to Rs 2620.83 crore in Q1 June 2008 over Q4 March 2008. The company declared the results before market hours today, 18 July 2008. India's second largest software services exporter Infosys was down 1.76% to Rs 1555. However India's largest software services exporter TCS staged a strong recovery from day's low of Rs 748.60. It rose 1.54% to Rs 791.20 Ranbaxy (down 3.72% to Rs 435.40), and ACC (down 1.06% to Rs 533.10), edged lower from Sensex pack. Metal stocks slipped on selling pressure. Tata Steel (down 3.38% to Rs 586.90), Sterlite Industries (down 3.02% to Rs 590), JSW Steel (down 2.23% to Rs 725), Sesa Goa (down 1.74% to Rs 2708.85), and Hindustan Zinc (down 1.02% to Rs 526), declined from metal sector. Reliance Capital topped the turnover chart on BSE with a turnover of Rs 323.70 crore followed by Reliance Industries (Rs 291.50 crore), Reliance Petroleum (Rs 193 crore), ICICI Bank (Rs 185 crore) and Satyam Computer Services (Rs 177.70 crore). Reliance Natural Resources led the volume chart with volumes of 1.67 crore shares followed by IFCI (1.45 crore shares), Reliance Petroleum (1.28 crore shares), IDFC (1.05 crore shares) and Chambal Fertilisers (90.25 lakh shares). Fertiliser shares rallied. Coramandel Fertilisers (up 4.41% to Rs 119.65), Nagarjuna Fertilizers & Chemicals (up 2.68% at Rs 30.60), Gujarat State Fertilizers & Chemicals (up 1.18% at Rs 145.80), Chambal Fertilisers & Chemicals (up 4.98% at Rs 60.05), Rashtriya Chemicals and Fertilizers (up 1.76% at Rs 49.05), soared State run oil-marketing companies extended gains for the third straight day today, 18 July 2008, tracking sharp fall in crude oil prices for the third straight day yesterday, 17 July 2008. Hindustan Petroleum Corporation (up 4.36% to Rs 218), Bharat Petroleum Corporation (up 3.11% to Rs 283.25), and Indian Oil Corporation (up 5.06% to Rs 382), surged. Kirloskar Brothers slumped 10.42% to Rs 166 on reporting a net loss of Rs 4.48 crore in Q1 June 2008 as against net profit of Rs 25.71 crore in Q1 June 2007. The company announced the results during trading hours today, 18 July 2008. Ballarpur Industries soared 6.35% to Rs 31 on reports cigarette maker ITC bought over 23 lakh shares or 0.5% of the equity of the company for Rs 5.60 crore in the last couple of months. The move has created a stir in corporate circles as ITC has major interests in paper through ITC Bhadrachalam Paperboard. Gujarat NRE Coke jumped 8.79% to Rs 113.30 after posting 120.46% surge in net profit to Rs 94.4 crore on 150.77% increase in total income to Rs 382.12 crore in Q1 June 2008 over Q1 June 2007. At the time announcing Q1 June 2008 results today, 18 July 2008, he company's board has also announced issue of bonus shares in the ratio of 2:5. Infrastructure Development Finance Company soared 14.58% to Rs 108 after the company reported 22% jump in net profit to Rs 204.73 crore on a 45.42% rise in revenue to Rs 809.71 crore in Q1 June 2008 over Q1 June 2007. Finance Ministry P Chidambaram yesterday, 17 July 2008 said more measures might be taken to tame prices even as the steps taken by the Reserve Bank of India (RBI) take effect. Inflation is hovering at a 13-year high and is well above the RBI's tolerance level of 5.5% set for the current fiscal. The RBI is scheduled to review monetary policy on 29 July 2008 and analysts opine that the central bank may tighten monetary policy again. Last month, the RBI increased its key lending rate by 75 basis points and hiked the banks' reserve requirements by 50 basis points to combat inflation. European markets, which opened after Indian markets were in the red. Key benchmark indices in UK, Germany and France were down by between 0.22% and 0.90%. Asian markets which opened before Indian markets were trading mixed today, 18 July 2008. Key benchmark in Taiwan, South Korea, Singapore and Japan, and were down by between 0.65% and 2.28%. However indices from China and Hong Kong gained 3.49% and 0.64% respectively. US stocks rallied building on optimism spurred by several unexpectedly strong earnings reports, including JPMorgan Chase. The Dow Jones Industrial Average surged 207.38 points, or 1.85%, to 11,446.66. The Standard & Poor's 500 index rose 14.96 points, or 1.20%, to 1,260.32, and the Nasdaq Composite index gained 27.45 points, or 1.20%, to 2,312.30.</DIV>

Sensex up 1060 points in two trading sessions

Frenzied buying in index pivotals led by Reliance Industries, ICICI Bank and Bharti Airtel coupled with short covering triggered a solid rally on the bourses. A sharp fall i…

21 Jul 2008

Market zooms 536 points

<DIV>Overcoming sustained selling pressure of the past five sessions, the Bombay Stock Exchange benchmark Sensex surged on Thursday by over 530 points to regain the 13k level with buying activity picking up on strong global cues and easing of crude oil prices. The 30-share BSE barometer, which has lost nearly 1,350 points in past five trading sessions, gained 536.05 points at 13,111.85 points today. It touched the day's high of 13,150.35 and a low of 12,843.79 points. Market breadth was impressive with 28 stocks out of 30-scrip Sensex ending in green while two stocks -- Ranbaxy Labs and Tata Steel-- closing in red. National Stock Exchange index Nifty also shot up by 130.50 points at 3,947.20, after hitting a high of 3,968.75 and a low of 3,823.15 points. Marketmen said buying activity picked up following reports of crude oil falling from record high levels and global stock markets surging. With crude oil prices easing, most of refinery stocks, led by Reliance Industries, recorded fresh gains. Crude for August delivery fell three per cent in New York after the US Energy Department showed an unexpected gain in supplies as fuel demand slowed. Asian markets rallied mirroring the gain in US stocks. Hong Kong, Tokyo, South Korea and Singapore exchanges closed with handsome gains. Capital goods sector index gained the most by 601.48 points at 10,762.01, followed by banking index by 327.36 points at 5,727.60. Oil and Gas index rose by 263.69 points at 8,852.08, realty index by 208.90 points at 4,428.02, auto index by 141.29 points at 3535.78, IT index by 108.22 points at 3675.20, power index by 92.89 points at 2302.77, PSU index by 113.97 points at 5866.67, FMCG index by 44.48 points at 1941.94, tech index by 80.30 points at 2864.80 and consumer durable index by 49.37 points at 3440.60. Healthcare gained 4.87 points at 3976.28 as most of the gains in the sector were pulled down after the segment leader Ranbaxy Laboratories fell Rs 18.50, 3.93 per cent to Rs 452.20 on some negative reports. Midcap index gained 67.06 points at 5155.34 and smallcap index by 62.67 points at 6387.12. However, Metal index fell by 238.62 points at 11697.30 as the segment majors Jindal Steel, Sterlite and Tata Steel fell sharply on profit selling.</DIV>

Market zooms 536 points

Overcoming sustained selling pressure of the past five sessions, the Bombay Stock Exchange benchmark Sensex surged on Thursday by over 530 points to regain the 13k level wit…

17 Jul 2008

Asian Markets Rallied As Crude Oil Continues Its Retreat

<DIV> Also Follows The Positive Sentiments Generated By Wall Street The Asian stock markets rallied on bargain hunting following positive sentiments generated by Wall Street's biggest one-day gains since 1 April overnight and a steep fall in oil prices for a second day. Financial stocks rebounded as credit worries eased, following surprisingly strong results from the U.S. bank Wells Fargo. But the resources sector was lower following weaker commodity prices. On the Wall Street, the Dow jumped 2.52% to 11,239.28, the broader S&P 500 gained 2.51% to 1,245.36 and the Nasdaq surged 3.12% to 2,284.85. Crude oil prices fell $4.14 to settle at $134.60 a barrel on the New York Mercantile Exchange after data released by the U.S. Energy Department showed that domestic inventories of crude oil and gasoline rose last week, rather than declining as analysts had expected. Crude oil is currently down 41 cents at $134.19 a barrel in Asian trade Thursday. On the currency front, the U.S. dollar recovered to lower 105-yen range in early Tokyo deals from lower 104-yen levels late Wednesday. In Asian currency trading, the U.S. dollar bought 104.82 yen recently, compared with 105.03 yen late in New York. In South Korea, the U.S. dollar opened lower at 1,007.5 won compared to previous day's close of 1,009.3 won. The Australian dollar has opened weaker at US$0.9746-0.9749 and the kiwi held on to its overnight gains and was buying US$0.7715 in early local trade. The Japanese market closed higher after a mixed performance on yesterday. Wall Street's rally overnight following a sharp decline in oil prices boosted market sentiment. However, concerns over the dollar's weakness against the yen. The banking sector rallied after the U.S. bank Wells Fargo reported better-than-expected quarterly numbers, but oil-related stocks lost ground. The benchmark Nikkei 225 index gained 1.0% to finish at 12,887.95. The broader Topix index gained 1.15% at 1,263.65. On the economic front, the Finance ministry said that foreign residents were net sellers of Japanese stocks last week. The dumped shares in favor of bonds. Foreigners were net sellers of 242.4 billion yen worth of Japanese stocks for the week ended July 12, the third week of net stock selling. Meanwhile, foreigners were net purchasers of 528.2 billion yen in Japan bonds and notes during the week, the second straight week of net acquisition. Meanwhile, a final report from the Japanese Cabinet Office showed that the leading index stood at 92.9 in May, up from an initial estimate of 92.6 and 92.8 recorded in April. The coincident index also showed an improvement from its initial estimate. The index recorded a reading of 103.3, an increase from 103 reported earlier. It was also up from 101.7 registered in April. However, the lagging index decreased to 103.4 from 103.7 seen in April. China's Shanghai Composite Index posted modest losses, lagging a sharp regional advance, after data showed wholesale inflation and factory investment remain elevated, likely leaving policy makers few options on a tightening bias. The benchmark Shanghai Composite Index closed down 0.8% at 2,684.78 extending yesterday's fall of 2.7%. According to the data released by the National Bureau of Statistics Bureau showed producer prices rose a faster-than-expected 8.8% in June, up from 8.2% in May. The pace of gains in consumer prices eased somewhat, with the CPI rising 7.1% in June on year, down from a 7.7% in May and 8.5% in April. First-half gross domestic product climbed 10.4% from a year earlier, easing from an 11.9% expansion in 2007. The consumer price index rose 7.1% in June from a year earlier, easing from a 7.7% rise in May and 8.5% in April. In Hong Kong, the Hang Seng Index increased 2.4% to 21,734.72, while the Hang Seng China Enterprises Index zoomed up 2.9% to 12,056.56. The Australian stock market closed higher. The market started off on a firm note and extended its gains for the second straight session after Wall Street rallied overnight following a steep fall in crude oil prices for a second day. The resources stocks fell on weak commodity prices. The benchmark S&P/ASX 200 index closed up 0.6% at 4,901.0 and the broader All Ordinaries index also gained 0.6% to finish at 4,991.4. On the economic front, Australia's international merchandise imports totaled A$17.527 billion in June, down from a revised A$18.191 billion in May, according to the Australian Bureau of Statistics. The bureau also said preliminary analysis showed that goods imports on a balance of payments basis fell by 2% in seasonally adjusted terms between May and June. The data, included in the Reserve Bank of Australia monthly bulletin, showed that the central bank sold a net A$875 million in the spot foreign exchange market in June. The central bank also bought a net A$993 million from the government during the month. The Reserve Bank's spot foreign exchange market transactions in May amounted to net sales of A$336 million. The South Korean market closed higher, ending a three-day losing streak. However, the market came of the day's highs amid caution ahead of the release of quarterly earnings by major U.S. investment banks later in the day. The benchmark Korea Composite Stock Price Index closed up 1.2% at 1,525.56, off a day's high of 1,546.84. The key index rebounded following a nearly 4% decline over the previous three days On the economic front, Korea Automobile Importers and Dealers Association said that sales of imported cars in South Korea jumped 31.2% from a year earlier in the first half of this year, despite weaker consumer sentiment. The New Zealand market closed higher extending yesterday's gains. The market started off on a firm note as Wall Street's rally overnight, following a sharp decline in oil prices for a second consecutive session, encouraged investors to look for bargain buys. The benchmark NZX 50 index closed up 1.04% at 3,091.38, after adding 0.6% on Wednesday. The Indian market is trading firm after opening sharply higher in the morning. A sharp plunge in the price of oil for a second day and positive global cues triggered buying interest, but traders are expressing caution ahead of the release of inflation data today. After opening sharply higher at 12,909, the BSE Sensex rose to an intra-day high of 13,099 within a few minutes. The Sensex pared its gains closing at 13,111.85, up 536 points or 4.26% over the previous day's close. Meanwhile, the S&P CNX Nifty is up 130 points or 3.42%. Elsewhere, Taiwan's weighted index spiked 3.9% to 6,974.51, while Singapore's Straits Times Index added 1% to 2,864.10. Turning toward European markets, jumped higher with investors taking heart from a continued retreat in oil prices and moving back into recently battered sectors such as the banks. In the opening trade, the U.K. FTSE 100 index climbed 1.7% to 5,238.90, the German DAX 30 index rose 1.5% to 6,245.20, and the French CAC-40 index advanced 1.6% to 4,178.23. On the economic front the day is scheduled to release construction output for the Eurozone, which will be followed by ZEW economic survey for the Switzerland. From US we have building permits, which will be followed by the continuous and initial jobless claims. In the evening we have housing starts accompanied by Philadelphia Fed's manufacturing survey. From Canada the Bank of Canada will release its monetary policy report, which will be preceded by the data on the foreign investment in Canadian securities.</DIV>

Asian Markets Rallied As Crude Oil Continues Its Retreat

Also Follows The Positive Sentiments Generated By Wall StreetThe Asian stock markets rallied on bargain hunting following positive sentiments generated by Wall Street's big…

17 Jul 2008

Market rebounds after four-day steep slide; Sensex vaults 536 points

<DIV>Frenzied buying in battered pivotals along with short covering after four straight days of catastrophic fall triggered a solid rally on the bourses today. Strong global markets and a savage cut in crude oil for the second straight day yesterday, 16 July 2008 triggered the rally. The market breadth was strong. Except metal stocks, shares from other sectors rose As per provisional data, foreign funds today, 17 July 2008, bought shares worth a net Rs 310.45 crore. Domestic funds bought shares worth a net Rs 168.02 crore. Asian and European stocks rallied today, propelled by the biggest surge in US bank shares in 16 years and a sharp drop in oil prices, easing the worst fears about the global credit crisis spiralling out of control. Political uncertainty will continue to weight on the market in the near term. The government is holding a two-day special session of parliament on 21 July 2008 and 22 July 2008 to seek vote of confidence after it was reduced to minority following withdrawal of support by Left parties on 8 July 2008. The government hopes to retain power due to backing from Samajwadi Party, a regional party in Uttar Pradesh. The 30-share BSE Sensex surged 536.05 points or 4.26% at 13,111.85. The Sensex opened with a sharp 333.77 point upward gap at 12,909.57 and advanced further to touch a high of 13,150.35 in late trade. At the day's high, the Sensex surged 574.55 points. At the day�s low of 12,843.79 touched in mid-morning trade, the Sensex gained 267.99 points. The broader based S&P CNX Nifty advanced 130.50 points or 3.42% at 3,947.20. Nifty July 2008 futures were at 3930.25, at a discount of 16.95 points as compared to spot closing. The BSE Sensex shed 1350.44 points or 9.67% in four trading sessions to 12575.80 on 16 July 2008 from 13964.26 on 9 July 2008. The BSE Sensex is down 7175.14 points or 35.36% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 8094.92 points or 38.17% away from its all-time high of 21,206.77 struck on 10 January 2008. The market breadth was strong on BSE with 1529 shares advancing as compared to 1092 that declined. 70 remained unchanged. The BSE Mid-Cap index was up 1.32% to 5,155.34 and the BSE Small-Cap index rose 0.99% to 6,387.12. Both these indices underperformed the Sensex. The total turnover on BSE amounted to Rs 4847 crore as compared to Rs 4,611.44 crore on Wednesday, 16 July 2008. NSE's futures & options (F&O) segment turnover was Rs 46,300.96 crore, which was higher than Rs 45,738.28 crore on Wednesday, 16 July 2008. Among the 30-member Sensex pack, 27 advanced while the rest declined India�s largest real estate developer in terms of market capitalisation DLF galloped 10.93% to Rs 437 on 20.58 lakh shares. It was the top gainer from the Sensex pack. Auto shares advanced on fresh buying. India�s top small car maker in terms of sales Maruti Suzki India surged 9.52% to Rs 600. Mahindra & Mahindra (up 4.31% to Rs 514.95), Hero Honda Motors (up 2.89% to Rs 657.20), and Tata Motors (up 3.44% to Rs 409), rose India�s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 4.15% at Rs 2026.15 on 11.07 lakh shares. The stock moved in a range of Rs 2030 and Rs 1965 so far during the day. Capital goods heavyweights advanced. India�s largest engineering & construction company in terms of order book position Larsen & Toubro jumped 8.11% to Rs 2454.50. The stock is trading 1:1 cum bonus. India�s largest power equipment maker in terms of sales Bharat Heavy Electricals advanced 5.75% to Rs 1460.50. India's largest dedicated housing finance company in terms of operating income HDFC vaulted 9.38% to Rs 1881.8. The company reported 25.56% rise in net profit to Rs 468.11 crore on a 26.67% increase in total income to Rs 2318.62 crore in Q1 June 2008 over Q1 June 2007. The results were announced during trading hours yesterday, 16 July 2008. HDFC chairman Deepak Parekh yesterday denied rumors that Citigroup may sell its 11.74% stake in HDFC to Oman Investment Corporation. Banking shares witnessed across-the-board rally ahead of the inflation data to be released after market hours today. HDFC Bank (up 5.57% to Rs 955.50), State Bank of India (up 9.33% to Rs 1245), and ICICI Bank (up 6.92% to Rs 555.55), also gained. Mid-cap banks, Kotak Mahindra Bank (up 4.26% to Rs 465), Axis Bank (up 10.02% to Rs 643), Union Bank of India (up 7.89% to Rs 108), Bank of India (up 7.31% to Rs 243.65), also joined the rally. Starting this week the government will inflation data every Thursday at 17:00 IST instead of mid-day every Friday. India�s largest cellular services provider in terms of market capitalisation Bharati Airtel advanced 1.87% to Rs 744, Reliance Communications, the country�s second largest cellular services provider in terms of market capitalisation rose 4.66% to Rs 417.90. Two oil exploration heavyweights saw divergent trend. Oil & Natural Gas Corporation (ONGC) soared 4.22% to Rs 902.90 while Cairn India lost 3.77% to Rs 215.90 India�s largest cigarette manufacturer in terms of sales ITC gained 3.51% to Rs 168. As per recent reports Amar Singh, whose Samajwadi Party is the key to the survival of the ruling Congress-led UPA Government wants the Unit Trust of India (UTI) and other public financial institutions to divest their stake in ITC in favour of British American Tobacco (BAT). Public financial institutions have a combined 37.62% (as at end March 2008) holding in ITC, which includes 11.90% of UTI and 13.65% of Life Insurance Corporation of India. IT pivotals rallied. TCS surged 6.83% to Rs 773 after the company reported 8.58% rise in net profit to Rs 1204.01 crore on a 5.99% increase in total income to Rs 5321.88 crore in Q1 June 2008 over Q4 March 2007. The results were declared after market hours yesterday, 16 July 2008. Infosys Technologies (up 2.25% to Rs 1581), Satyam Computer Services (up 5.26% to Rs 415.25), and Wipro (up 2.36% to Rs 380), edged higher from IT pack. Reliance Infrastructure (up 4.67% to Rs 801.25), Jaiprakash Associates (up 9.34% to Rs 149.25), were the other gainers from Sensex pack. India�s largest pharma company in terms of sales Ranbaxy Laboratories was the top loser from the Sensex pack. The stock slumped 3.89% to Rs 452.40 on profit booking after surging 15.03% to Rs 470.70 yesterday, 16 July 2008. The counter saw high volumes of 69.68 lakh shares. The stock surged wildly in a range of Rs 494.40 and Rs 431 today. The stock galloped after the company's chief executive Malvinder Singh yesterday, 16 July 2008 said in a televised conference that the deal with Japan's Daiichi Sankyo remains on track. He also said that the firm would provide all information required for a probe by the US authorities within the next month. Steel stocks extended early losses on reports the government may consider setting up a price band for steel products to control inflation. Tata Steel (down 2.91% to Rs 607.50), Sail (down 6.29% to Rs 119.20), and Kalyani Steel (down 1.05% to Rs 146), declined from steel sector. Besides metal stocks like Sterlite Industries (down 5.69% to Rs 608), National Aluminium Company (down 4.78% to Rs 336.50), and Hinstan Zinc (down 0.02% to Rs 527.80) were not spared either. Ranbaxy Laboratories was the top traded counter on BSE with turnover of Rs 316.39 crore followed by Reliance Petroleum (Rs 288.68 crore), Reliance Capital (Rs 243.26 crore), Reliance Industries (Rs 221.65 crore), and Larsen & Toubro (Rs 176.10 crore), in that order. Reliance Petroleum led the volumes chart notching volumes of 1.92 crore shares followed by Reliance Natural Resources (1.56 crore shares), IFCI (1.45 crore shares), Ispat Industries (1.05 crore shares) and Chambal Fertilisers (89.55 lakh shares), in that order. State run oil-marketing companies extended yesterday gains after sharp fall in crude oil prices for the second straight day yesterday, 16 July 2008. Hindustan Petroleum Corporation (up 5.10% to Rs 207.95), Bharat Petroleum Corporation (up 7.74% to Rs 272.10), and Indian Oil Corporation (up 6.16% to Rs 363.90), surged. HCL Technologies was down 1.21% to Rs 212.75 after the company said on Wednesday, 16 July 2008, it has acquired UK based business process outsourcing provider Liberata Financial Services. The company made this announcement after trading hours on Wednesday, 16 July 2008. Biocon fell 6.96% to Rs 350 after posting 71.66% fall in consolidated net profit to Rs 15.02 crore in Q1 June 2008 over Q1 June 2007. The company announced the results during trading hours today, 17 July 2008. BGR Energy Systems spurted 20% to Rs 297.35 after the company said during trading hours on Wednesday, 16 July 2008, it has secured a contract worth Rs 4900 crore for engineering, procurement and construction of a thermal power project in Rajasthan. The stock surged 13.41% to Rs 247.80 on Wednesday, 16 July 2008 Chambal Fertilisers & Chemicals declined 0.20% to Rs 57.10 on reporting 61.44% fall in net profit to Rs 23.80 crore on 31.90% rise in total income to Rs 843.78 crore in Q1 June 2008 over Q1 June 2007. The company announced the results after trading hours yesterday, 16 July 2008. Polaris Software Lab spurted 17.30% to Rs 80 after posting 40.27% surge in net profit to Rs 19 crore on 11.59% growth in net sales to Rs 267.12 crore in Q1 June 2008 over Q4 March 2008. The company announced the results during trading hours today, 17 July 2008. Unichem Laboratories gained 7.89% to Rs 176 on reporting 48.34% surge in net profit to Rs 33.38 crore on 18.27% increase in net sales to Rs 181.54 crore in Q1 June 2008 over Q1 June 2007. The company made this announcement during trading hours today, 17 July 2008. Among the side counters, ORG Information (up 20% to Rs 22.80), First Winner Industries (up 15.75% to Rs 119.50), IVRCL Infrastructures (up 14.55% to Rs 296), Eimco Elecon (up 12.40% to Rs 285), Hitachi Home & Life Solutions (up 13.77% to Rs 128.50), Astral Polytecnik (up 12.68% to Rs 160), Siemens (up 9.68% to Rs 473.20), Essar Shipping (up 10% to Rs 96.05), Balaji Telefilms (up 9.27% to Rs 162), Gokul Refoils (up 8.32% to Rs 191.40), surged. Ace Software (down 13.23% to Rs 11.15), Nahar Industrial (down 9.55% to Rs 38.35), and Deltron Cables (down 9.41% to Rs 90), slipped. Crude oil was up 26 cents at $134.86 today, 17 July 2008. On the New York Mercantile Exchange, August crude plunged $4.14 to $134.60 a barrel yesterday, 16 July 2008. The Reserve Bank of India (RBI) may reportedly opt for further tightening of money supply as there is no likelihood of inflation coming down to single digit figure in the next six months based on indications given by the central bank Governor to a parliamentary panel. European markets, which opened after Indian markets edged higher trade. Key benchmark indices in UK, Germany and France were up by between 1.78% and 2.21%. Most Asian markets, which opened before Indian markets, were trading higher today, 17 July 2008. Key benchmark indices in Japan, Hong Kong, Taiwan, Singapore and South Korea were up by between 1% and 3.93%. However China's Shanghai Composite fell 0.78%. US markets surged yesterday, 16 July 2008 led by financial stocks, after unexpectedly strong results from Wells Fargo & Co, the fifth-largest US bank and mortgage lender, eased worries about the on-going credit crisis. A drop in oil prices also aided the upmove. The Dow Jones industrial average soared 276.74 points, or 2.52%, to 11,239.28. The S&P 500 index rose 30.45 points, or 2.51%, to 1,245.36, and the Nasdaq Composite index advanced 69.14 points, or 3.12%, to 2,284.85.</DIV>

Market rebounds after four-day steep slide; Sensex vaults 536 points

Frenzied buying in battered pivotals along with short covering after four straight days of catastrophic fall triggered a solid rally on the bourses today. Strong global mark…

17 Jul 2008

Equities seen range-bound on mixed cues

<DIV>Local shares are likely to be witness range-bound activity today, 14 July 2008, tracking mixed cues from global shores. However crude oil hovering near record highs may dampen the sentiment. Global investment banker Barclays Capital projecting inflation to surge to 17% by September 2008 on back of another round of hike in fuel prices in the same month may also play the spoilsport. The investment banker believes that wholesale price index inflation will remain in double-digit territory until May 2009. Inflation based on the wholesale price index surged to a fresh 13-year high 11.89% in 12 months to 28 June 2008, above the previous week's annual rise of 11.63%, government data released on 11 July 2008 showed. This is much higher than the Reserve Bank's tolerance limit of 5.5% set for the current fiscal. Crude oil for August delivery fell as much $1.01 to $144.07 a barrel in after-hours trading on the New York Mercantile Exchange on Friday, 11 July 2008. Asian markets were trading firm today, 14 July 2008, led by advances in banking stocks after the US government unveiled measures to help the troubled home financing providers. Shanghai Composite rose 0.36% or 10.36 points at 2,866.99, Japan's Nikkei gained 1.12% or 146.21 points at 13,185.90, Hong Kong's Hang Seng advanced 0.51% or 113.57 points at 22,298.12, South Korea's Seoul Composite added 0.54% or 8.51 points at 1,576.02, Taiwan Weighted was down 0.21% or 14.91 points at 7,229.85 and Straits Times fell 0.53% or 15.52 points at 2,911.32 US markets ended volatile session on Friday, 11 July 2008, with the Dow Jones falling below the 11,000 level for the first time since August 2006. Growing concern about the health of Fannie Mae and Freddie Mac send bank shares to an 11-year low. The Dow Jones Industrial Average slumped 128.48 points to 11100.54 and the Nasdaq Composite shed 18.77 points at 2239.08. The Standard & Poor's 500 index dropped 13.90 points to 1,239.49. Back home, the market slumped on Friday, 11 July 2008 as spiraling crude oil prices and weak economic data dampened investor sentiments. The 30-share BSE Sensex lost 456.39 points or 3.28% at 13,469.85 and the broader based S&P CNX Nifty was down 113.20 points or 2.72% at 4049, on that day. The BSE Sensex rose 15.85 points or 0.12% to 13,469.86 in the week ended Friday, 11 July 2008. The S&P CNX Nifty edged up 33 points or 0.82% to 4,049 in the week. From a record high of 21,206.77 hit on 10 January 2008, Sensex has lost 7736.92 points or 36.48%. It is down 6817.14 points or 33.60% in calendar year 2008 so far. As per provisional data, foreign funds sold shares worth a net Rs 467.67 crore while domestic funds bought shares worth a net Rs 214.74 crore, on 11 July 2008. Foreign institutional investors (FIIs) were net buyers of Rs 511.43 crore in the futures & options segment on 11 July 2008. They were net buyers of index futures to the tune of Rs 715.44 crore and sold index options worth Rs 221.49 crore. They were net sellers of stock futures to the tune of Rs 20.84 crore and purchased stock options worth Rs 38.31 crore. Industrial production rose 3.8% in May 2008, much lower than revised 6.2% growth in April 2008, the government data released on 11 July 2008 showed. Industrial production growth for April 2008 revised downwards to 6.2% from earlier 7%. Caution may prevail on the bourses in the near term due to political uncertainty as to whether the government will be able to win confidence vote in the parliament. Prime Minister Manmohan Singh is likely to seek a vote of confidence in parliament shortly following the Left's withdrawal of support to the government over the India-US civil nuclear agreement. There is speculation that the government may choose a date around 22 July 2008 to call a special Lok Sabha session for the vote.</DIV>

Equities seen range-bound on mixed cues

Local shares are likely to be witness range-bound activity today, 14 July 2008, tracking mixed cues from global shores. However crude oil hovering near record highs may damp…

14 Jul 2008

Be afraid ! Inflation may rise to 17%

<DIV>Global investment banker Barclays Capital has projected that inflation may surge to 17 percent by September on back of another round of hike in fuel prices in the same month. "We believe WPI inflation will remain in double-digit territory until May 2009. We expect WPI inflation of 17 percent by September 2008," the report said. For the week-ended June 28, wholesale prices-based inflation touched a new 13-year high of 11.89 percent much higher than the Reserve Bank's tolerance limit of 5.5 percent for the current fiscal. According to the report, the government is likely to hike fuel prices between 10 and 20 percent again as early as September to limit fiscal risks. Rise in the price of the Indian crude oil basket to USD 145-150 per barrel from the current USD 132 per barrel could be the trigger for another round of increase in fuel prices, it said. The government last revised retail petroleum prices with effect from June 5, when petrol prices was increased by Rs 5 a litre, diesel by Rs 3 per litre and cooking gas by Rs 50 per cylinder. This resulted in inflation touching a double-digit figure of 11.05 percent for the week ended June 7. Last week, even Finance Minister P Chidambaram's adviser Shubhashis Gangopadhyay predicted that double digit inflation will continue throughout the year 2008 and could impact the economic growth negatively.</DIV>

Be afraid ! Inflation may rise to 17%

Global investment banker Barclays Capital has projected that inflation may surge to 17 percent by September on back of another round of hike in fuel prices in the same month…

14 Jul 2008

Gold rises as crude rises

<DIV> Missile tests by Iran and surging crude price makes gold a bet for safe haven The weak US dollar and the rising oil price pushed bullion metals higher on Friday, 11 July, 2008. Prices rose as tension once again mounted at Middle East and the also rose on reports of more missile tests by Iran. Gold is typically seen as a safe-haven investment and its appeal increases during times of heightened geopolitical tensions. The increase in energy costs also generally increase demand for the precious metal as a hedge against inflation. Silver prices gained 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. Comex Gold for August delivery rose $18.6 (1.97%) to close at $960.6 ounce on the New York Mercantile Exchange. Prices climbed to a high of $967 during intra day trading. For the week, it ended higher by $27 (2.8%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then. It was reported on Friday that Iran test fired more missiles on Thursday, after testing missiles the day before that could reach Israel. Iran is the world's fourth-largest exporter of crude oil. At the currency markets on Friday, the dollar lost ground against other major currencies on rising geopolitical risk and renewed credit worries. The dollar index which tracks the greenback against a basket of major currencies, fell 0.6% to stand lately at 72.03. In the crude market on Friday, prices fell initially amid a rising dollar but leaped right back on speculation that Israel may be nearer to launching an attack on Iran and on worries that supplies in Nigeria and Brazil may be disrupted. Crude for August delivery closed up $3.43 or 2.4%, at $145.08 a barrel on the New York Mercantile Exchange. The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. 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. Gold prices ended June, 2008 with a gain of 4.1%. The yellow metal ended second quarter with a marginal gain of 0.7%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, for April, prices closed lower by 6.3%. This year, gold prices have gained 13.5% till date against a 5.6% drop for the dollar against the euro. 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%. On Friday, Comex silver futures for September delivery gained 50 cents (2.7%) to $18.82 an ounce. Silver has gained 25% in 2008 till date. For the second quarter, it gained a paltry 1.4%. Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had 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.</DIV>

Gold rises as crude rises

Missile tests by Iran and surging crude price makes gold a bet for safe havenThe weak US dollar and the rising oil price pushed bullion metals higher on Friday, 11 July, 20…

14 Jul 2008

Crude rises on middle east concerns

<DIV> CRUDE OIL Middle East tension pushes crude higher Prices end marginally higher for the week Geo political tensions in Iran and Nigeria and a lower dollar pushed up crude prices on Friday, Friday, 11 July, 2008. Israel launching an attack on Iran and worries that supplies in Nigeria and Brazil may be disrupted, sent crude prices soaring. Traders also continued to worry about slowing demand and continued selling despite a sharp drop in U.S. inventories. Prices nevertheless ended the volatile week with marginal gains. Crude-oil futures for light sweet crude for August delivery today closed at $145.08/barrel (higher by $3.43/barrel or 2.4%) on the New York Mercantile Exchange. For the week, prices gained $0.21 (0.2%). A day earlier, on Thursday, 10 July, crude rose by almost $6 at one shot today in the final hour of trading after trading around $2 higher in the previous hours. Crude prices gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. It ended June 2008 higher by 9.9%. Prices are 105% higher than a year ago. For the year, crude is up by 44% till date. It was reported on Friday that Iran test fired more missiles on Thursday, after testing missiles the day before that could reach Israel. Iran is the world's fourth-largest exporter of crude oil. At the currency markets on Friday, the dollar lost ground against other major currencies on rising geopolitical risk and renewed credit worries. The dollar index which tracks the greenback against a basket of major currencies, fell 0.6% to stand lately at 72.03. EIA reported earlier during the week that crude inventories fell 5.9 million barrels in the week ended 4 July to stand at 293.9 million barrels. Daily crude imports averaged 9.5 million barrels last week, down 621,000 barrels from the previous week. U.S. refineries operated at 89.2% of their operable capacity last week, unchanged from the previous week. EIA also reported that U.S. gasoline supplies rose by 900,000 barrels in the latest week, while distillates rose by 1.8 million barrels. Against this backdrop, August reformulated gasoline rose 5.23 cents, or 1.5%, to $3.56 a gallon and August heating oil added 3.92 cents, or 1%, to $4.08 a gallon. Natural gas for August delivery, however, reversed earlier gains and fell 40 cents, or 3.3%, to $11.90 per million British thermal units. Executive Summary Crude prices showed immense volatility during the week that ended on Friday, 11 July, 2008. Prices gave up more than $9 during the first two days of the week. But then, it touched a all time high price of $147/barrel. It also gained $9.03 during the last two days of the week. For the week, it ended higher by a marginal 21 cents. Prices fell during the first part of the week due to the strong dollar. But then, it gained back all of its losses after Middle East tensions cropped up between Iran and Israel and also on weekly inventory report from the Energy department. The Paris based International Energy Agency (IEA) said during the week that it expects 2009 global energy demand to rise 1% from 2008 levels. Robust growth in developing economies will more than offset demand contractions in developed countries. The IEA also said that the bunching of new projects and Saudi Arabia's pledge for 250,000 barrels a day in additional production should lead to an increase in spare capacity for crude oil next year. But it said current high prices are not just about tight crude supplies, pointing to refinery capacity as another major contributor.</DIV>

Crude rises on middle east concerns

CRUDE OILMiddle East tension pushes crude higherPrices end marginally higher for the weekGeo political tensions in Iran and Nigeria and a lower dollar pushed up crude price…

14 Jul 2008

US Markets end with modest losses

<DIV> Dow sinks below the 11,000 level for the first time in two years US Market ended the week on Friday, 11 July with moderate losses. But it was the financial sector and the rising crude price that played the role of major villains for the indices registering losses. Upbeat announcement from a major retailer and encouraging economic data were the major reasons as to why the losses were restricted to modest levels. The Dow Jones Industrial Average lost 188 points for the week to end at 11,100. Tech - heavy Nasdaq lost 6.3 points at 2,239. S&P 500 shed 23.4 points to end at 1,239. In percentage terms, Dow, S&P 500 and Nasdaq lost 1.7%, 1.9% and 0.3% respectively. The Dow fell below the 11,000 level for the first time in two years. The financial sector came under severe pressure after Fannie Mae and Freddie Mac were two notable laggards in the sector. The two stocks encountered selling pressure throughout the week on news that accounting changes could force the companies to bring off-balance sheet assets on to their books, thus requiring large capital raises. In fact things worsened on reports that the executive branch has been discussing a plan for the government to take over either one or both of them if conditions worsened. It was only during the end of the week when a Reuters source indicated the two lenders would have access to the Fed's discount window did the stocks rally into the green. Crude prices showed immense volatility during the week. Prices gave up more than $9 during the first two days of the week. But then, it touched an all time high price of $147/barrel. It also gained $9.03 during the last two days of the week. For the week, it ended higher by a marginal 21 cents and ended around $145/barrel. Crude prices fell during the first part of the week due to the strong dollar. But then, it gained back all of its losses after Middle East tensions cropped up between Iran and Israel and also on weekly inventory report from the Energy department. Dow component Alcoa marked the start of second quarter earnings season. The aluminum company reported a drop in earnings due to high energy costs, but the results met Wall Street's forecast. GE also reported earnings in line with expectations. Wal-Mart reported during the week that June same-store sales were up 5.8% thanks to bargain-hunting consumers. In turn, Wal-Mart raised its second quarter earnings outlook also. This gave the bulls a good reason to come to the forefront during the middle of the week. In other economic news, the National Association of Realtors reported that May pending home sales fell 4.7%, which is slightly more than the expected decline of 2.8%. However, April was revised higher to a gain of 7.1% from a rise of 6.3%. The data indicated that that the home sales market is still weak, but is not deteriorating at the same rate as in 2007. Separately, weekly initial claims dropped 58K to 346K, well below the consensus estimate of 395K. The two-week average of 375K put claims at a level that was witnessed in mid-March, so it can be said the claims level is fairly stable. Cisco Systems weighed heavily on the technology sector during the week after the stock fell to a new 52 week low after UBS said that Cisco faces challenges due to slowing sales in the U.S. and Europe. Among interesting corporate news, Microsoft is reported to be willing to enter discussions with Yahoo! if Yahoo replaces its board of directors. Next, General Electric's NBC Universal is joining Blackstone Group and Bain Capital to purchase The Weather Channel for $3.5 billion. Also, Merrill Lynch might be planning to sell its stakes in holdings like Bloomberg and BlackRock soon which would generate cash to help offset potential write-downs and adjustments. In the M&A arena, Dow Chemical announced its intent to acquire Rohm & Haas for $78 per share in cash. That price marked a 74% premium for ROH shareholders based on the stock's closing price the day before the deal was announced. Executive Summary For the week, indices registered modest losses. In percentage terms, Dow and Nasdaq lost 1.7% and 0.3% respectively. S&P 500 lost 1.9%. It was the battered financial sector and the rising crude price that played the pranks with the market. Government sponsored Freddie Mac and Fannie Mae were reported to be in distressed condition and this worried the investors. On Friday, 11 July, the Dow sank below the 11,000 level during intra day trading for the first time in two years. For the year, Dow, Nasdaq and S&P 500 are down by 16.3%, 15.6% and 15.6% respectively. The coming week as a host of important reports both on economic and earnings front. The earnings reporting will kick up several notches with reports from a number of major financial and technology companies. The minutes from the 25 June Federal Open Market Committee (FOMC) meeting will be released and Fed Chairman Bernanke is slated to present his semi-annual testimony before Senate and House committees. Also, on the dock are key inflation reports in the form of the PPI and CPI Indexes, as well as the latest data on retail sales, housing starts and industrial production.</DIV>

US Markets end with modest losses

Dow sinks below the 11,000 level for the first time in two yearsUS Market ended the week on Friday, 11 July with moderate losses. But it was the financial sector and the ri…

14 Jul 2008

Technicals - Infosys Technologies

Technicals - Infosys Technologies

This stock recorded a sharp reversal on Friday forming a bearish engulfing candle in the daily chart. This move has also made the stock close below both the 200 and 50-day m…

14 Jul 2008

PE firms invest US$2.8bn in Q2 CY08

<DIV>Private equity firms have invested about US$2.8bn in 77 Indian companies during the quarter ended June, according to a study by Venture Intelligence, a research service focused on private equity and venture capital. The amount invested during the quarter was higher than that during the same period last year, when 74 deals totaling US$1.9bn had taken place. But, this was significantly lower compared to the immediate previous quarter (which witnessed 115 deals worth US$3.6bn). The latest numbers take the total investments by private equity firms in the first six months of 2008 to over US$6.3bn as against the US$5.4bn invested during the corresponding period in 2007, Venture Intelligence said. The largest investment reported during Q2 CY08 was US$640mn raised by Aditya Birla Telecom (ABTL), a subsidiary of listed mobile telephone services provider Idea Cellular, from Providence Equity Partners. "The steep fall in the public markets has resulted in a marked decline in the number of PIPE, Pre-IPO and Late Stage investments during the latest quarter," said Arun Natarajan, Founder & CEO of Venture Intelligence. "There has been a significant drying up of investments in the BFSI and Engineering & Construction sectors compared to last year. While Power and Telecom companies continue to attract large ticket investments, the positive surprise this year has been the re-emergence of Healthcare and Life Sciences on the radar screens of PE investors," he added. The April-June quarter also saw more than US$2bn being raised for PE investments in India, with a substantial portion accounted for by infrastructure-focused offerings from 3i and Axis Bank, Venture Intelligence said.</DIV>

PE firms invest US$2.8bn in Q2 CY08

Private equity firms have invested about US$2.8bn in 77 Indian companies during the quarter ended June, according to a study by Venture Intelligence, a research service focu…

14 Jul 2008

Industrial output shrinks in May

<DIV>Things are getting out of control on the macro-economic front, even as the Congress-led Government at the Centre is busy preparing for the 'Trust Vote' in parliament over the controversial Indo-US nuclear deal. While inflation is slowly inching towards the 12% mark, the industrial activity in the country is getting hit badly by six-year high interest rates, soaring raw material costs and a slowdown in overall demand. Government data released on Friday showed that the country's industrial production tumbled in May, growing by just 3.8% as against 10.6% in the same month last year. The figure was way off the mark, as average forecast was for a 6-7% expansion. What's even worse is that April's growth was trimmed to 6.2% from 7%. In the first two months of the current fiscal year, industrial output growth more than halved to 5% from 10.9% in the corresponding period of last year. Manufacturing sector growth slumped to 3.9% from 11.3% in May 2007. Electricity sector's expansion slowed to just 2% compared to 9.4% in the same month a year earlier. Mining, however turned in an improved performance with a growth of 5.2% as against 3.8% in May last year. Growth in Capital Goods plunged to 2.5% in May from 22.4% in the same month a year earlier. Consumer Goods sector managed to hold its own with an expansion of 7.2% versus 8.7% in May last year. Consumer Durables too did quite well, with a growth of 4.4% as against contraction of 0.7% in the year-ago period. Growth in Consumer Non-durables slid to 8.1% from 12.1% in the corresponding month last year.</DIV>

Industrial output shrinks in May

Things are getting out of control on the macro-economic front, even as the Congress-led Government at the Centre is busy preparing for the 'Trust Vote' in parliament over th…

14 Jul 2008

Growth to fall below 8%

<DIV>India's economic growth is expected to fall below 8 percent amid likelihood of further tightening of monetary policy by RBI in the wake of inflation inching to 12 percent, said investment banker Goldman Sachs and global rating agency Moody's investor services. While Moody's expects economic growth to slow down to just under 8 percent in 2008, Goldman Sachs sees it moderate to 7.8 percent this fiscal from 9 percent in FY 2008. Moody's said even under 8 percent growth would be a cause of envy for most countries. "India's GDP growth will moderate this year amid slowing exports and softening domestic demand. The retreat of the rupee in the March quarter helped enhance the appeal of Indian products in the global market, keeping export performance healthy," Moody's said. Meanwhile, on the inflation levels in the country, it said that the wholesale prices jumped 11.9 per cent in the week ended June 28, showing no signs of cooling despite the reserve bank of India's aggressive monetary tightening during the month. "The higher interest rates and reserve requirements will take time to slow demand-driven inflation. However, if wholesale price growth the key inflation measure in India, continues to accelerate in the next couple of weeks, RBI looks set to further curb lending, which has been a major source of inflation," Moody's added.</DIV>

Growth to fall below 8%

India's economic growth is expected to fall below 8 percent amid likelihood of further tightening of monetary policy by RBI in the wake of inflation inching to 12 percent, s…

14 Jul 2008

Market may remain weak

<DIV>The market might extend Friday (11 July 2008)'s sharp fall on gloomy domestic and global scene. Higher crude oil prices, rising inflation, weak industrial production numbers, fears of further rise in interest rates, fluid domestic political situation and tension in Middle East will weight on the investor sentiment. Infosys kickstarted the Q1 June result season on 11 July 2008 on a positive note. Infosys has revised upwards earnings and revenue guidance for the year ending March 2009 (FY 2009). Infosys has forecast 24.4% to 26.6% growth in earnings per share as per Indian GAAP at between Rs 98.79 to Rs 100.51 in FY 2009 over the year ended March 2008 (FY 2008). It has forecast a between 27.5% to 29.5% growth in revenue at between Rs 21278 crore and Rs. 21622 crore in FY 2009 over FY 2008. The overall earnings of the corporate sector are seen rising about 15% in Q1 June 2008 over Q1 June 2007. That would be well below the 20-25% growth seen over the past few years. Political uncertainty will continue to haunt the bourses. Prime Minister Manmohan Singh is likely to seek a vote of confidence in parliament shortly following Left's withdrawal of support to the government over the India-US civil nuclear agreement. There was speculation that the government may choose a date around 22 July 2008 to call a special Lok Sabha session for the vote. With Left parties withdrawing support to the United Progressive Alliance (UPA) government, India Inc. hopes the slow-moving economic reforms program will now be put on the fast track. Over the last four years, Left parities had stalled privatisation of state-run firms, pension reforms, higher foreign limits in insurance and more liberal norms for foreign bank. Capping inflation has been a major priority for India's central bank. Inflation based on the wholesale price index rose 11.89% in 12 months to 28 June 2008, above the previous week's annual rise of 11.63%, government data released on 11 July 2008, afternoon showed. It was at highest level in more than 13 years. Reserve Bank of India on 24 June had hiked both repo rates and cash reserve ratio by 50 basis points each to tame rising inflation. There are expectations of further monetary tightening in quarterly monetary policy review of RBI scheduled on 29 July 2008 as inflation is showing no signs of abatement. Industrial production rose 3.8% in May 2008, much lower than revised 6.2% growth in April 2008, the government data released on Friday, 11 July 2008, showed. Industrial production growth for April 2008 revised downwards to 6.2% from earlier 7%. Crude oil has created a major havoc on global bourses. Crude oil for August delivery rose as much as $1.54, or 1.5%, to $143.19 a barrel on Friday 11 July 2008 on the New York Mercantile Exchange as Brazilian oil workers threatened a strike and on concern that Middle East and Nigerian supplies may be disrupted. In the light of above worries, foreign institutional investors (FIIs) sold shares worth Rs 1,012.20 crore in the month of July 2008 so far, till 9 July 2008. FIIs sold shares worth Rs 26,477.50 crore in the calendar year 2008. Mutual funds have bought shares worth Rs 712.30 crore in the month of July so far.</DIV>

Market may remain weak

The market might extend Friday (11 July 2008)'s sharp fall on gloomy domestic and global scene. Higher crude oil prices, rising inflation, weak industrial production numbers…

14 Jul 2008

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