Indian Stock News by Experts

Nightmare at US Markets

<DIV> The Dow falls to a new 52 week low as crude soars to a new high and Goldman Sachs adds companies to sell list US Market registered steep losses today, Thursday, 26 June, 2008 and headed for the worst June performance in almost seventy eight years. Crude prices soaring by more than $5 at one go and analyst downgrade on General Motors was the main reasons behind today's steep losses. Goldman Sachs cut its overall rating on U.S. brokerages to Neutral from Attractive thereby taking a big toll on the overall financial sector. All ten economic sectors posted a loss. The Dow Jones industrial Average ended the day with a huge loss of 358.4 points at 11,453.42. The Nasdaq Composite Index, finished lower by 79.89 points at 2,321.37. S&P 500 finished lower by 38.82 points at 1,283.15. Dow fell to a new 52 week low. All the thirty Dow stocks ended in the red headed by GM which skidded by more than 10%. Goldman Sachs added a couple of companies to its conviction sell list. This spurred a major sell-off in Wall Street today. The firm lowered its rating on the broker sector and indicated Citigroup might incur additional write-downs and may also raise more capital. It also hinted that Merrill Lynch might raise additional capital. Goldman also cut estimates for Dow Jones Industrials component General Motors. Dow component GE also came under severe pressure today on reports that the company is reportedly having difficulty finding a buyer for its credit card business. In terms of economic data, the final GDP reading for the first quarter indicated the economy grew at 1%, on par with expectations and up slightly from the previous reading. Personal consumption expenditures were revised upward to 1.1%, while the GDP price index came in at 2.7%. Also, jobless claims for the week ending 21 June exceeded expectations, totaling 384,000, though they were unchanged from the prior week. In the housing arena, existing home sales rose 2% m-o-m to a seasonally adjusted annual rate of 4.99 million, which was better than the expected increase of 1.2%. Technology sector was hammered today after Research In Motion fell more than 13% after the company disappointed investors by reporting earnings per share results that were a penny shy of the quarterly consensus estimate. Oracle, too, disappointed its investors with an underwhelming forecast. Crude futures rose by more than $5 at one shot today. A host of factors contributed to this sudden rise. First and foremost, the dollar weakened today. Then, Libya threatened to cut output and also OPEC's president said prices may reach $170 by the summer. Crude-oil futures for light sweet crude for August delivery today closed at $139.64/barrel (higher by $5.09/barrel or 3.8%) on the New York Mercantile Exchange. It traded as high as $140.06 during intra day trading. This was an all time new closing price for crude. It was reported today that Libya may curb output because of a U.S. law that allows terror victims to seize assets of foreign governments as compensation. OPEC President Chakib Khelil was also reported to have said that oil may surge as high as $170 in near months on a European interest rate rise. Volume on the New York Stock Exchange topped 1.5 billion, and declining stocks outdid those advancing more than 5 to 1. On the Nasdaq, nearly 998 million shares traded, and decliners raced beyond advancers 11 to 3. Economic data will be the area of focus tomorrow, with the release of the May personal income and spending report.</DIV>

Nightmare at US Markets

The Dow falls to a new 52 week low as crude soars to a new high and Goldman Sachs adds companies to sell list US Market registered steep ...

Pre Session Commentary - June 27 2008

<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>The Indian Market is expected to have negative opening on the back of weak global cues as US markets ended on back foot and Asian markets are trading in deep red. On Thursday, the Indian market closed in green due to short covering of the ahead of the expiry of the June derivatives contract that led the buying support in key indices. The market opened on upbeat note tracking the favoring cues from the global markets as the US Federal Reserve's decision on Wednesday to keep the interest rates unchanged at 2%, which was according to the expectation. Further, the market was not able to sustain the same momentum and lost its gains. But selective buying at the final hours led the market close in positive territory. From the sectoral front, the oil and gas and metal stocks were in limelight as most buying was witnessed from these baskets. The BSE Sensex closed higher by 201.75 points at 14,421.82 and NSE Nifty ended up by 63.2 points at 4,315.85. We expect that market may decline during the trading session and inflation number which is due out to be today will give further direction to the market. US markets closed lower on Thursday as Oil prices touched above $ 140 a barrel also contributed to the negative sentiment. Also the credit-market write downs and a slowing economy threatened to extend the longest slump in quarterly profits since 2002 adds to the sentiments. The Dow Jones Industrial Average (DJIA) closed lower by 358.41 points at 11,453.42 along with NASDAQ down by 79.86 points to close at 2,321.37 and S&P 500 dropped by 38.82 points to close at 1,283.15. Indian ADRs ended down. In technology sector, Satyam dropped by (6.05%) along with Wipro by (5.22%), Infosys by (3.86%) and Patni Computers by (2.93%). In banking sector, HDFC bank and ICICI bank decreased by (5.51%) and (5.14%) respectively. In telecommunication sector, Tata Communication advanced by (0.06%) while MTNL reduced by (1.11%). Sterlite industries declined (1.48%). Today the major stock markets in Asia are trading in red shares plunged on Wall Street and high inflation worries. Hang Seng index is trading lower by 592.71 points at 21,862.96 along with Taiwan Weighted trading down by 311.64 points at 7,500.16 and Japan's Nikkei trading at 13,515.12 dropped by 307.20 points. The FIIs on Thursday stood as net seller in equity. The gross equity purchased was Rs2,901.60 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs3,005.20 Crore and gross debt sold stood at Rs187.40 Crore. Therefore, the net investment of equity reported was (Rs103.60) Crore and net debt was 0.00 Crore. Today, Nifty has support at 4,170 and resistance at 4,384 and BSE Sensex has support at 13,979 and resistance at 14,632.</DIV>

Pre Session Commentary - June 27 2008

The Indian Market is expected to have negative opening on the back of weak global cues as US markets ended on back foot and As...

A bright day for bullion metals

<DIV> Gold registers highest one day gain in two years Bullion metals ended considerably higher today, Thursday, 26 June, 2008. Prices declined as the dollar weakened against its rivals. Prices soared as the energy costs also increased considerably today. The increase in energy costs increase demand for the precious metal as a hedge against inflation. Silver prices also rose the most in two weeks. 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 $32.8 (3.7%) to close at $915.1 ounce on the New York Mercantile Exchange. It was the biggest percentage gain for a most-active contract since June, 2006. Last week, gold prices ended higher by $30.6 (3.5%). Last month, in May, it ended with a gain of higher by $22.5 (2.5%). 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 9.7% till date against a 7% drop for the dollar against the euro. 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 Thursday, Comex silver futures for July delivery rose 61.3 cents (3.7%) to $17.22 an ounce. Last week, silver has gained 5%. Silver has gained 15.5% in 2008 till date. 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 Thursday, the dollar continued to decline, a day after the Federal Reserve left interest rates unchanged and voiced concerns about surging commodity prices, but failed to signal urgency to raise rates to curb inflation. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, was at 72.55, compared with 72.90. The 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, the ECB has kept rates unchanged at 4% since June, 2007. Gold gained 39% from 17 Sept as the Fed slashed rates from 5.25%. In the crude market on Thursday, crude oil jumped above $140 a barrel to a record as Libya threatened to cut output, OPEC's president said prices may reach $170 by the summer and the dollar weakened. Crude oil for August delivery rose $5.09 (3.8%) to $139.64 a barrel. 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 377 (3.1%) at Rs 12,601 per 10 grams. Prices rose to a high of Rs 12,639 per 10 grams and fell to a low of Rs 12,238 per 10 grams during the day's trading. At the MCX, silver prices for July delivery closed Rs 743 (3.2%) higher at Rs 24,130/Kg. Prices opened at Rs 23,465/kg and rose to a high of Rs 24,374/Kg during the day's trading.</DIV>

A bright day for bullion metals

Gold registers highest one day gain in two years Bullion metals ended considerably higher today, Thursday, 26 June, 2008. Prices declined ...

Crude prices shoot up by $5

<DIV>rices close at a new all time high aided by a host of factors Crude futures rose by more than $5 at one shot today, Thursday, 26 June, 2008. A host of factors contributed to this sudden rise. First and foremost, the dollar weakened today. Then, Libya threatened to cut output and also OPEC's president said prices may reach $170 by the summer. Crude-oil futures for light sweet crude for August delivery today closed at $139.64/barrel (higher by $5.09/barrel or 3.8%) on the New York Mercantile Exchange. It traded as high as $140.06 during intra day trading. This was an all time new closing price for crude. Last week, crude prices closed lower by 0.2%. Prices are 98% higher than a year ago. For the year, crude is up by 42% till date. It was reported today that Libya may curb output because of a U.S. law that allows terror victims to seize assets of foreign governments as compensation. OPEC President Chakib Khelil was also reported to have said that oil may surge as high as $170 in near months on a European interest rate rise. Yesterday, the EIA reported that U.S. crude supplies climbed by 800,000 barrels to 301.8 million for the week ended 20 June. It was the first reported rise since early May. Supplies had fallen a total of nearly 25 million in five weeks. EIA also reported that motor gasoline supplies fell 100,000 barrels to 208.8 million barrels. Distillate stocks were up 2.8 million barrels at 119.4 million barrels. Saudi Arabia pledged last weekend that it will pump an extra 200,000 barrels a day next month to calm the oil market. Brent crude oil for June settlement today rose $5.5 (4.1%) to $139.83 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled. Natural gas in New York advanced after a U.S. government report showed supplies last week gained less than forecast and as crude oil rose to a record. Natural gas for July delivery rose 35.2 cents (2.8%) to settle at $13.105 per million British thermal units. Futures have gained 75% this year. The July contract expired today. EIA reported today that inventories advanced 90 billion cubic feet in the week ended 20 June to 2.033 trillion cubic feet. Against this backdrop, July reformulated gasoline rose 11.7 cents to close at $3.5113 a gallon and July heating oil gained 13.4 cents to end at $3.8834 a gallon. At the currency markets on Thursday, the dollar continued to decline, a day after the Federal Reserve left interest rates unchanged and voiced concerns about surging commodity prices, but failed to signal urgency to raise rates to curb inflation. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, was at 72.55, compared with 72.90. The 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%. At the MCX, crude oil for July delivery closed at Rs 5,901/barrel, higher by Rs 175 (3.1%) against previous day's close. Natural gas for July delivery closed at Rs 557.5/mmbtu, higher by Rs 6.3/mmbtu (1.1%).</DIV>

Crude prices shoot up by $5

rices close at a new all time high aided by a host of factors Crude futures rose by more than $5 at one shot today, Thursday, 26 June, 2008...

US Markets cautious

<DIV> Market becomes extremely cautious a day ahead of Federal Reserve's monetary policy decision US Market ended the day with modest losses today, Tuesday, 24 June, 2008. A rebound in financial sector helped market partially offset some disappointment over weak consumer sentiment spurred by an earnings warning from UPS. It was very clear that market turned cautious a day ahead of Federal Reserve's crucial meeting on monetary policy decision. The Fed kicked off its two-day Federal Open Market Committee meeting today. The market expects the fed funds rate will remain unchanged. The Dow Jones industrial Average traded in red for the entire first half today. It then slipped in the green in the post lunch hours but once again slipped in the red before the closing bell. Going into close, the index ended the day with a loss of 34.9 points at 11,807.43. The Nasdaq Composite Index, finished lower by 17.4 points at 2,368.28. S&P 500 finished lower by 3.7 points at 1,314.29. Fifteen out of thirty Dow stocks ended in the red today. Caterpillar was one of the Dow laggards while Merck was one of the top Dow winners. Among one of the major news hitting market sentiment today, UPS lowered its second quarter earnings guidance, citing the increase in fuel costs and the sluggish U.S. economy. In terms of economic data, consumer confidence in June slipped 13% to its lowest level since 1992, after consumers were bombarded with reports of spiking food and energy costs and rising unemployment. Also, the housing industry continued to remmain sluggish, although the rate of home price declines is slowing. The S&P/Case Shiller index showed that house prices in 20 major metro areas fell 1.6% compared to last month - the smallest drop since September. Home prices are now down 15.2% on a y-o-y basis, the largest drop in the composite's eight year history. Crude futures remained almost unchanged today. Prices rose marginally after Royal Dutch Shell Plc said that it resumed production at its Nigerian Bonga field that was attacked last week. But prices had peaked $139 as traders digested production news from Nigeria and Saudi Arabia. Crude-oil futures for light sweet crude for August delivery today closed at $137/barrel (higher by $0.26/barrel or 0.2%) on the New York Mercantile Exchange. It traded as high as $138.85 during intra day trading. Shell shut Bonga output on 19 June after militants attacked a production vessel at the field 75 miles off the coast of Nigeria. Nigeria was overtaken by Angola in April as Africa's biggest oil producer because attacks cut the country's output. At the currency markets on Tuesday, the dollar fell against the euro before the Fed's meeting on interest rates today and tomorrow. The dollar index which measures the greenback against a basket of trading partners was at 73.257, compared with 73.470 late Monday. Trading volume was relatively light, with 1.3 billion shares exchanged on the New York Stock Exchange, where declining stocks outran those advancing by more than 2 to 1. On the Nasdaq, 914 million shares traded, and decliners outpaced advancing Durable goods orders data for May are due before tomorrow's open. The report offers market participants a look at the orders placed with domestic manufacturers during a given month. New home sales figures for the month of May and the weekly crude oil inventory report are due shortly after that. But the day's primary focus will be the Federal Open Market Committee's monetary policy decision and its accompanying directive.</DIV>

US Markets cautious

Market becomes extremely cautious a day ahead of Federal Reserve's monetary policy decision US Market ended the day with modest losses...