Indian Stock News by Experts

Pre Session Commentary - Aug 4 2008

<DIV>The Indian Market is expected to have negative opening due to weak global cues as US markets closed in red and Asian markets are trading lower. On Friday, the Indian market made a smart recovery from its initial losses and closed with gains on IAEA discussion on India specific safeguard agreement for use of nuclear power for civilian use. The domestic market opened on negative note and was hovering in red zone early trading. Further market gained some ground during mid session and staged a smart bounce back due to selective buying over the ground to end in green territory. NSE Nifty ended above 4,400 mark and BSE Sensex above 14,600 level. On the sectoral front, Capital goods and Power stocks were in the limelight and closed with gains of more than 3%. In addition to this, Oil & Gas and Bank stocks also closed with gains of more than 3%. Other than these, Metal, Reality and IT stocks also contributed in positive sentiment. The BSE Sensex closed higher by 300.94 points at 14,656.69 and NSE Nifty ended up by 80.60 points at 4,413.55. We expect that market may lose some ground during the trading session. The market also got a boost on Friday, after the government announcement of new guidelines for 3G spectrum. According to the Telecom minister, the government will hold a global auction for third generation mobile services for both GSM and CDMA players. Telcos who missed on the first round of 3G auctions, now they will have to pay much higher price for these radio frequencies when they are auctioned at a later stage. On Friday, the US market was closed in red due to than expected loss from general motors and rise in crude oil prices that increased to $125 a barrel. General Motors reported a $15.5 billion net loss for second quarter. The Dow Jones Industrial Average (DJIA) closed lower by 51.70 points at 11,326.32 along with NASDAQ ended down by 14.59 points at 2,310.96 and S&P 500 index closed lower by 7.07 points at 1,260.61. Indian ADRs ended up. In technology sector, Satyam ended higher by (4.55%) along with Infosys by (2.69%), Patni Computers by (2.22%) and Wipro by (1.60%). In banking sector, ICICI bank and HDFC bank gained (2.67%) and (1.91%) respectively. In telecommunication sector, MTNL and Tata Communication ended up by (3.45%) and (0.24%). Sterlite industries increased by (0.42%). Today the major stock markets in Asia are trading weak. Hang Seng index is trading down by 227.26 points at 22,635.64 along with Japan's Nikkei trading lower by 133.53 points at 12,961.06. Taiwan Weighted is trading at 6,981.52 down by 21.02 points. The FIIs on Friday stood as net buyer in equity and debt. The gross equity purchased was Rs3,828.00 Crore and the gross debt purchased was Rs155.40 Crore while the gross equity sold stood at Rs3,231.00 Crore and gross debt sold stood at Rs7.70 Crore. Therefore, the net investment of equity reported was Rs597.00 Crore and net debt was Rs147.70 Crore. Today, Nifty has support at 4,325 and resistance at 4,482 and BSE Sensex has support at 14,376 and resistance at 14,040.</DIV>

Pre Session Commentary - Aug 4 2008

The Indian Market is expected to have negative opening due to weak global cues as US markets closed in red and Asian markets are trading lo...

US Market ends flat for the week

<DIV> Economic data and earning reports help market remain steady US Market ended the week on Friday, 01 August almost flat with little losses for the Dow Jones Industrial Average. Mixed economic data, mostly better-than-expected earnings reports, and volatile crude prices prompted the market's ups and downs during the week. Financial sector had some positives and also had some negatives during the week. The negatives came during the start of the week. But it was then taken over by spate of economic data during the course of the week. The Dow Jones Industrial Average lost 44 points for the week to end at 11,326.6. Tech - heavy Nasdaq gained 0.43 points at 2,310.96. S&P 500 gained 2.55 points to end at 1,260.31. The financial sector came under severe pressure during the start of the week. On Monday, 28 July, there was news that the FDIC seized two regional banks - First National Bank of Nevada and First Heritage Bank, marking the sixth and seventh failures this year. The banks' deposits were taken over by Mutual of Omaha. Then, on Tuesday, 29 July, main news came from Merrill Lynch who tried to reduce its risk exposure and shore up its balance sheet. Merrill Lynch announced selling $30.6 billion worth of U.S. CDOs for only $0.22 on the dollar, or $6.7 billion. The assets were valued at $11.1 billion at the end of the second quarter implying that the sale will result in a $4.4 billion pretax write-down. Merrill has taken $51.8 billion in write-downs and credit losses since the credit market turmoil began last year and is only second to Citigroup in terms of writedowns. But then, the financial sector enjoyed several other positive developments, including the Fed extending the length of its Term Securities Lending Facility program through 30 January and is introducing longer terms to maturity for its Term Auction Facility. The facilities were implemented to improve liquidity during the recent credit market turmoil. But outside the financial sector, it was economic reports which dominated the week. Second quarter GDP rose 1.9%, aided by the fiscal stimulus, although the result was lower than the expected 2.3% gain. The government's jobs report for July was mixed, as payrolls slipped by a smaller-than-expected amount, while the unemployment rate rose by a larger-than-expected amount. Specifically, nonfarm payrolls fell by 51,000, which was better than the expected decline of 75,000. Meanwhile, the unemployment rate rose to 5.7% from 5.5%. The ISM Index, a national manufacturing survey, posted a decent reading in July given the current economic conditions. The index was roughly unchanged at 50.0, which represents flat manufacturing growth. On the earnings front, Exxon Mobil posted a 14% increase in net income to $11.68 billion, marking the largest quarterly profit in U.S. history. But the results were still below expectation. Among others, while Corning, Garmin and MetLife disappointed traders, ArcelorMittal and Comcast met expectations. Other than that, Altria, Disney, MasterCard, Visa and Tyco - all reported upside earnings results. Auto manufacturers were affected during the week after General Motors swung to a massive $15.5 billion second quarter net loss, as consumer preferences shift away from large trucks and SUVs in the face of record gasoline prices. Crude prices ended higher on Friday, 01 August, 2008 as the dollar fluctuated and as Middle East tensions cropped up due to a possible Israeli strike on Iran. For the week also, it managed to end higher for this rise on the last day. Crude-oil futures for light sweet crude for September delivery closed at $125.1/barrel (higher by 1.02 or 0.8%) on the New York Mercantile Exchange. Futures earlier fell to an intraday low of $123.5 a barrel. But it also rose to a high of $128.6 during intra day trading and cut most of their gains by afternoon. For the week, crude prices ended higher by 1.5%.</DIV>

US Market ends flat for the week

Economic data and earning reports help market remain steady US Market ended the week on Friday, 01 August almost flat with little losses f...

EMI Nightmare ?

<DIV> <BLOCKQUOTE> This is a fairly unrealistic scenario because interest rates are cyclical - however, will give you a idea why you should pre-pay if you have got the bucks </BLOCKQUOTE> If the current interest rates stay, you might end up shelling out more than Rs1 crore to pay off a Rs25 lakh home loan. How? Read on. Six months is a long time, especially if you happened to take a home loan back then. Banks were charging a floating interest rate of 11% on their home loans. The equated monthly instalment (EMI) on a 20-year loan (or 240 months) of Rs25 lakh would have worked out to Rs25,805 a month. Around one-month back, banks raised the interest rate on floating rate home loans to 11.5% and have now raised it by another 0.75% to 12.25%. Last time, hike in interest rates were not accompanied by an increase in EMI. Banks did the smarter thing and increased the tenure of the loan. The remaining tenure of the loan went up from 240 to 269 months. If banks were to follow the same strategy now and increase the tenure of the loan, instead of increasing the EMI, the remaining tenure of the loan would go up to 394 months. Add to this the six months of EMI you have already paid, and you are looking at a total tenure of 400 months. If you keep paying an EMI of Rs25,805 for a period of 400 months, you would have paid Rs1.03 crore (Rs25,805 x 400 months) by the end of it. However, the bigger question is will banks allow tenures to shoot up to 400 months? crore How it will hurt you Principal Rs 25 lakh Initial rate 11% Tenure 240 months Initial EMI Rs 25,804 Principal repaid Rs 14,707 in first 5 months Principal left Rs 24.85 lakh Rate after 5 months 11.5% Remaining tenure if 269 months EMI remains same Increase in tenure 35 months at the same EMI Principal repaid in Rs 4,027 the 6th month Principal repaid in Rs 1,8734 first six months Principal left Rs 24.81 lakh Rate after 6 months 12.25% Remaining tenure if 393.5 months EMI remains same Increase in tenure 159 months Extra money paid to Rs41 lakh service the loan (Rs 25,804 x 159) Total EMI to Rs1.01 crore be paid via DNA Money</DIV>

EMI Nightmare ?

This is a fairly unrealistic scenario because interest rates are cyclical - however, will give you a idea why you should pre-pay if you ...

Bullion metals soften

<DIV> Gold and silver prices register losses for the week Bullion metal prices registered losses on Friday, 01 August, 2008 after the US dollar strengthened. It also incurred losses for the week. Silver prices also fell 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 fell $5.2 (0.56%) to close at $917.5 ounce on the New York Mercantile Exchange. For the week, it ended lower by 2.1%. Gold ended July, 2008 lower by $11 (1.1%). 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 9.4% till date against a 8.8% drop for the dollar against the euro. The yellow metal ended second quarter with a marginal gain of 0.7%. Gold prices ended June, 2008 with a gain of 4.1%. 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%. On Friday, Comex silver futures for September delivery fell 27 cents (1.6%) to $17.52 an ounce. Silver has gained 19% in 2008 till date. It ended July 2008 with a gain of 3%. For the second quarter, it had 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. At the currency markets on Friday, the dollar index which tracks the performance of the dollar against other major currencies, was at 73.43, compared with 73.196 in previous closing. According to the latest economic data, the Labor Department reported that nonfarm payrolls fell by 51,000 in July compared with a decline of 70,000 expected by the market. The unemployment rate jumped to 5.7%, a four-year high. After gaining earlier on the slightly better than expected nonfarm payrolls, the dollar gave up a small bit of ground after data showed flat U.S. manufacturing activity and a drop in spending on U.S. construction projects. The Commerce Department said construction spending fell by 0.4% in June, more than the 0.3% expected. The Institute for Supply Management's manufacturing index was 50% in July, indicating an equal number of firms said business was growing or slowing. At the crude market on Friday, crude-oil futures finished higher with a gain of 1.5% for the week, as fresh concerns over a possible Israeli strike on Iran and weakness in the U.S. stock market prompted investors to lift oil prices to close above $125 per barrel. Crude oil for September delivery closed at $125.10 a barrel on the New York Mercantile Exchange. It climbed $1.02 for the session and ended 1.5% higher for the week. Earlier Friday, oil futures had fallen to an intraday low of $123.50 a barrel on Nymex. 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 34% and 60% since the past one year.</DIV>

Bullion metals soften

Gold and silver prices register losses for the week Bullion metal prices registered losses on Friday, 01 August, 2008 after the US dollar ...

Crude gains for the week

<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>Prices gain on the last day of the week as Middle East tensions crop up Crude prices ended higher on Friday, 01 August, 2008 as the dollar fluctuated and as Middle East tensions cropped up due to a possible Israeli strike on Iran. For the week also, it managed to end higher for this rise on the last day. Crude-oil futures for light sweet crude for September delivery closed at $125.1/barrel (higher by 1.02 or 0.8%) on the New York Mercantile Exchange. Futures earlier fell to an intraday low of $123.5 a barrel. But it also rose to a high of $128.6 during intra day trading and cut most of their gains by afternoon. For the week, crude prices ended higher by 1.5%. Crude lost $15.92 (11%) in July, 2008, the biggest ever in dollars. It's now 15% lower than the $147.27 record high hit last on 10 July, 2008. Iran nearing a breakthrough in its nuclear program re-energized concerns that Israel or the U.S. may attack Iran's nuclear facilities. In Wall Street, according to the latest economic data, the Labor Department reported that nonfarm payrolls fell by 51,000 in July compared with a decline of 70,000 expected by the market. The unemployment rate jumped to 5.7%, a four-year high. After gaining earlier on the slightly better than expected nonfarm payrolls, the dollar gave up a small bit of ground after data showed flat U.S. manufacturing activity and a drop in spending on U.S. construction projects. The Commerce Department said construction spending fell by 0.4% in June, more than the 0.3% expected. The Institute for Supply Management's manufacturing index was 50% in July, indicating an equal number of firms said business was growing or slowing. At the currency markets on Friday, the dollar index which tracks the performance of the dollar against other major currencies, was at 73.43, compared with 73.196 in previous closing. Earlier this week, EIA reported today that crude supplies fell by 100,000 barrels to 295.2 million barrels for the week ended 25 July. EIA also reported that as for the oil products, motor gasoline supplies dropped by 3.5 million barrels to 213.6 million last week following a total climb of more than 8 million barrels between the weeks ended 27 June and 18 July. Distillate inventories, which include heating oil, were up 2.4 million at 130.5 million. The increase in gasoline supplies came even as demand for motor gasoline stood at an average of about 9.4 million barrels per day over the past four weeks, down 2.4% from the same time a year ago. 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 61% higher than a year ago. For the year, crude is up by 31% till date.</DIV>

Crude gains for the week

Prices gain on the last day of the week as Middle East tensions crop up Crude prices ended higher on Friday, 01 August, 2008 a...