Saturday, January 31, 2009

NSEL engages two depositories for warehouse receipts

The National Spot Exchange (NSEL), the spot trading arm of India’s largest commodity exchange, has appointed National Securities Depository (NSDL) and Central Depository Services (India) (CDSL) as its clearing house for settlement of trades pertaining to warehouse receipts (WR) for commodities.
The development is significant as the association of NSDL and CDSL will allow movement of WR through depositories without actual movement of goods from sellers to buyers with the exchange being the counterparty. This will allow participants even to trade WR electronically fearlessly.

“Till now, the exchange was handling daily settlement of agri and non-agri commodities through manual transfer of WR by courier or postal routes. This was not only risky but also fearful of loss of certificate in the transit. But, the electronic transfer of WR would create confidence into the system,” said Anjani Sinha, MD and CEO of NSEL. The electronic exchange of WR will attract more participants on online spot trade. It will also ease traders’ physical problems of handing warehouse receipts from broker to sub-broker and the clients thereafter, he added.

NSEL has intimated to NSDL that it would be empenalling participants for providing depository services for warehouse receipts to the clients/clearing members of the spot exchange, the depository informed its participants through a circular.

Although, a separate demat account is required for NSEL transaction, the circular clarified that independent account is not required if the participant is a member of MCX for futures trading. The existing account opened for holding electronic warehouse receipts of MCX can be used for NSEL as well.

If the participant is exclusively empanelled with NSEL, clients need to open a demat account and execute the enclosed agreement with the participant for holding electronic warehouse receipt of NSEL.

The exchange launched compulsory delivery castorseed trade on its platform for Palanpur, Gujarat, delivery. It is also working on launching wheat spot trade by the beginning of new wheat season towards the end of February.

Recently, NSEL also launched compulsory delivery based customized contract for Nafed Cotton. This necessarily means that cotton traded on NSEL would be made deliverable only when it matches the quality parameters set by Nafed. The delivery should not necessarily be from the Nafed warehouses.

Satyamgate prompts FIIs, MFs to offload stocks

Foreign and domestic fund houses turned net sellers immediately after the Satyam accounting fraud came to light on January 7.
Foreign Institutional Investors (FIIs) and domestic mutual funds (MFs) got into ‘sell’ mode starting January 7, when Satyam founder-chairman B Ramalinga Raju admitted to committing the fraud over several years. FIIs sold shares worth Rs 5,484 crore (over $1 billion), while MFs reported a record net outflow of Rs 2,232 crore between January 7 and January 28. However, domestic institutions other than mutual funds, mainly insurance companies, saved the day with a net investment of Rs 5,550 crore since then.

The last time such a big selling of equities by domestic mutual funds was recorded was in March 2008, when they sold stocks worth Rs 1,971 crore.

“Since the market outlook is biased towards a downward trend, mutual funds have been selling at higher levels and remaining in cash to grab opportunities when the market falls further…,” said Amar Ambani, research head, Indiainfoline.

Fund managers say that redemption requests coupled with the fear factor that there could be yet another major fall in share prices before the parliamentary election have driven them to sell stocks. “There is a general feeling among players that markets could be in the range of 7,500-10,000 and any further rise is possible only after the election. Therefore, the current rally, which had started in December and faced obstacles due to the Satyam episode, may fizzle out by February end as the election draws closer,” said the Chief Executive Officer (CEO) of a fund house.

The Sensex had risen 16 per cent from 8,839 on December 1, 2008 to 10,335 on January 6, 2009 before the Satyam scam came to light. The Securities and Exchange Board of India (Sebi) data also show that till January 28, out of 14 trading days, FIIs were net sellers on 12 occasions and mutual funds on 10. During this period, FIIs sold equities worth Rs 5,584 crore. On the other hand, mutual funds sold equities worth Rs 3,082 crore and bought stocks worth Rs 850 crore during the remaining four trading days.

So far in the current month up to January 28, domestic mutual funds have been net sellers to the tune of Rs 1,978 crore, nearly 51 per cent of this was done on January 7 after Raju admitted to the fraud.

Satyamgate prompts FIIs, MFs to offload stocks

Foreign and domestic fund houses turned net sellers immediately after the Satyam accounting fraud came to light on January 7.
Foreign Institutional Investors (FIIs) and domestic mutual funds (MFs) got into ‘sell’ mode starting January 7, when Satyam founder-chairman B Ramalinga Raju admitted to committing the fraud over several years. FIIs sold shares worth Rs 5,484 crore (over $1 billion), while MFs reported a record net outflow of Rs 2,232 crore between January 7 and January 28. However, domestic institutions other than mutual funds, mainly insurance companies, saved the day with a net investment of Rs 5,550 crore since then.

The last time such a big selling of equities by domestic mutual funds was recorded was in March 2008, when they sold stocks worth Rs 1,971 crore.

“Since the market outlook is biased towards a downward trend, mutual funds have been selling at higher levels and remaining in cash to grab opportunities when the market falls further…,” said Amar Ambani, research head, Indiainfoline.

Fund managers say that redemption requests coupled with the fear factor that there could be yet another major fall in share prices before the parliamentary election have driven them to sell stocks. “There is a general feeling among players that markets could be in the range of 7,500-10,000 and any further rise is possible only after the election. Therefore, the current rally, which had started in December and faced obstacles due to the Satyam episode, may fizzle out by February end as the election draws closer,” said the Chief Executive Officer (CEO) of a fund house.

The Sensex had risen 16 per cent from 8,839 on December 1, 2008 to 10,335 on January 6, 2009 before the Satyam scam came to light. The Securities and Exchange Board of India (Sebi) data also show that till January 28, out of 14 trading days, FIIs were net sellers on 12 occasions and mutual funds on 10. During this period, FIIs sold equities worth Rs 5,584 crore. On the other hand, mutual funds sold equities worth Rs 3,082 crore and bought stocks worth Rs 850 crore during the remaining four trading days.

So far in the current month up to January 28, domestic mutual funds have been net sellers to the tune of Rs 1,978 crore, nearly 51 per cent of this was done on January 7 after Raju admitted to the fraud.

Gold price zooms, sets all time high record

Gold prices on Friday zoomed past all previous records to set a new peak at Rs 14,170 per 10 gram in the bullion market here on aggressive buying by stockists sparked by a firming overseas trend.
Trading sentiment turned extremely bullish after the gold in overseas markets surged to a three-month high as holdings in the world's biggest exchange-traded fund backed by bullion expanded to a record, signalling increased demand for the metal as a haven.

The gold trading volume on London's SPDR Gold Trust expanded by 1.3 per cent to a record 843.59 metric tons. The precious metal heading for a 4.6 per cent gain in January, its third monthly increase, after adding 18.13 dollar to 926.78 dollar an ounce.

The global trend which set prices in domestic markets here, pushed up standard gold and ornaments by Rs 320 each at an all-time high level of Rs 14,170 and Rs 14,020 per ten gram respectively. Sovereign rose by Rs 50 at Rs 11,050 per ten gram in brisk trading.

Silver joined the rally surging by Rs 300 at Rs 19,400 per kg and weekly-based delivery by Rs 420 at Rs 19,600 per kg. Silver coins surged by Rs 300 to Rs 27,800 for buying and Rs 19,600 for selling of 100 pieces.

A similar firmness was noticed in futures trading as gold shot up by 2.13 per cent to Rs 14,448 per ten gram on the Multi Commodity Exchange, a level never seen before. Silver for July month delivery rose by 4 per cent to Rs 20,310 per kg on the MCX.

In the international market, gold rallied more than 2 per cent on Friday, reversing earlier losses, as investors bought the precious metal as a haven from risk amid volatility in other assets.

Spot gold rose to a peak of $926.05 an ounce, and was quoted at $919.25 an ounce at 0854 GMT, up from $906.75 late in New York on Thursday.

Futures market
Gold prices continued to slide for the second straight session by falling 1.39 per cent in futures trading on Friday on sustained selling by traders influenced by a weakening global trend.

Market sentiment remained bearish as gold fell in London as a stronger dollar and US measures to ease the financial crisis eroded demand for the metal as an alternative investment. Gold for most-active August-month contract fell by 1.39 per cent at Rs 13,880 per 10 gm on the Multi Commodity Exchange. The contract recorded a business volume of 4 lots.

Similarly, June-month contract fell by 0.52 per cent at Rs 13,833 per ten gram with trading volume of 83 lots.

The fall in gold prices in futures market mostly attributed on sustained selling by traders in tandem with weakening global trend.

Wall St slips; ADRs end mixed

The Wall Street slipped on Friday owing to growing fears of deepening recession in the US. The Dow Jones industrial average index shed 148 226 points at 8,001. The Nasdaq declined 31 points to 1,476.
The Indian ADRs, however, ended on a mixed note. Infosys plunged 3.3% to $26.56, and Tata Motors dropped 2.7% to $4.04. Genpact, HDFC Bank and Tata Communications were down 1-2% eahc. On the other hand, Sterlite surged nearly 3% to $5.35. Patni Computers and Dr.Reddy's advanced nearly 1.5% each to $5.55 and $9.05, respectively.

Buy Tech Mahindra, target of Rs 303: Emkay Global

Emkay Global Financial Services has maintained its buy rating on Tech Mahindra with a target of Rs 303 in its January 27, 2009 research report. "Tech Mahindra reported USD revenues of USD 232 million (-14% QoQ). Net profits at Rs 2228 million (-5.4% QoQ). We have cut our FY10 estimates by 4% to Rs 58.6 (V/s Rs 60.9 earlier) while our FY09 estimates are cut by 1% only. We maintain BUY on inexpensive valuations at <5x FY10 adjusted earnings and 20% of current market cap as cash. We maintain BUY with a revised target price of Rs 303 (Rs 320 earlier), based on 5x 1 year rolling forward earnings," says Emkay Global Financial Services' research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Nifty 2800 Put adds 16.5 lakh shares in OI

Here is a transcript of Varinder Bansal’s comments on CNBC-TV18. Also watch the accompanying video.

Nifty rollover stood at 66% versus 66.5% last time and marketwide rollover was at 75% versus 76% last time. Nifty OI Put-Call ratio was up from 0.93 to 1.09. Nifty 2800 Put added 16.5 lakh shares in OI and Nifty 2900 Call added 10.2 lakh shares in OI.

NSE F&O Highlights
Start Of Series Feb (Rs) Jan (Rs)
Total F&O OI 36912 cr 33466 cr
Index Fut OI 8759 cr 9508 cr
Stock Fut OI 11748 cr 12590 cr
Nifty Options OI 15300 cr 10747 cr

Start Of Series Feb (Shrs) Jan (Shrs)
Total Fut OI 79.6 cr 80.5 cr
Stock Fut OI 76.5 cr 77.2 cr
Nifty OI 2.96 cr 3.11 cr

Satyam accounted for nearly 1.5 crore stock futures open interest (OI), which is not included in February.

DLF went down 44% during the series. Stock Futures OI was up from 92 lakh shares to 1.43 crore shares.

Suzlon Energy tumbled 24% during the series. Stock Futures OI was up from 2.9 crore shares to 3.34 crore shares.

However, NTPC gained 8% during the series. Stock Futures OI was down from 3.1 crore shares to 2.47 crore shares.

F&O HIGHLIGHTS
Nifty Rollover at 66% Vs 66.5% last time
Marketwide rollover at 75% Vs 76% last time
Nifty OI Put-Call ratio up from 0.93 to 1.09
Nifty 2800 Put adds 16.5 lakh shares in OI
Nifty 2900 Call adds 10.2 lakh shares in OI

DLF
Down 44% during the series
Stock Fut OI up from 92 lk shrs to 1.43 cr shrs

SUZLON
Down 24% during the series
Stock Fut OI up from 2.9 cr shrs to 3.34 cr shrs

NTPC
Up 8% during the series
Stock Fut OI down from 3.1 cr shrs to 2.47 cr shrs

AKRUTI
Stock ends flat at 892; made high of 949
Had gained nearly 40% during last series
Feb Futures at 718 (discount of 173 pts)

Nifty may see support at 2,811 and 2,765 levels

Alex Mathew, head, research centre - Geojit Financial Services commenting on the daily market performance of the day said, ``The markets had opened in the red zone on the back of weak to subdued cues from the global markets but recovered soon on the first day of February series and quickly climbed the ladder and closed for the day in bright green near the day`s high. The markets didn`t have good cues to cheer in the morning session but in the noon and afternoon session, the European markets which had moved up gave support to our markets to rally in a better way to end the day in good fashion raising the expectation of a good month coming ahead. The news that Spice Group is interested to take majority stake in Satyam made Spice communication and Spice mobile to remain on the buyers radar and the stock Spice Communication had risen over 100% during the day and closed with good amount of gain. Finally the markets came to a close with Sensex gaining 2.04% and Nifty gaining 1.08%.``

``On the sectorial front, the major gainers were Realty up 4.32%, Metal up 4.05%, Oil up 3.58%, FMCG up 2.04% and Bankex up 1.99% while there were none on the losers`` side for the day. On Nifty the major gainers were DLF up 8.29%, HCLTech up 6.37%, Hindalco up 6.3%, Suzlon up 5.59%, Reliance Capital up 5.42 and Sail up 5.33% while the losers were Sunpharma down 6.25%, BHEL down 2.7%, PowerGrid down 2.43%, Tata Motors down 1.58% and Hero Honda down 0.84%, he said.``

He opined, ``The market is overbought and one should be careful when Nifty trades near to resistance levels. For Nifty the resistance is seen at 2,900, 2,910 while the support is seen at 2,811 and 2,765 levels.``

Weekly wrap: Sensex gains 750 pts

After three successive weeks of losses, the market bounced back in a telling fashion during the week ended January 30, on the back of positive global cues and some reasonably good numbers from India Inc and romped home with impressive gains. Short-covering due to expiry of January series derivative contract too contributed to the upmove during the week.

Recording strong gains on three of the four trading sessions (the market was closed on Monday, on account of Republic Day), the Sensex ended the week with a handsome gain of 749.89 points or 8.64% at 9424.24. The Nifty index of the National Stock Exchange gained 196.25 points or 7.33% to 2874.80.

Stockometer

It was a nice start for the market last week with the firm trend on the Asian bourses, higher US index futures and short-covering after some hefty losses in the past few weeks triggering frenzied buying across the board on Tuesday. A few good numbers from India Inc also aided the sentiment to a notable extent.

Top gainers | Worst losers

The Sensex raced past 9000 and settled at 9004.08 for the day with a handsome gain of 329.73 points or 3.8%. The Nifty closed at 2771.35 with a gain of 92.80 points or 3.46% at 2771.35. The Nifty touched a high of 2777.30 today.

The decision of the Apex bank to leave key rates unchanged did trigger a round of selling but the market rebounded swiftly after a sharp correction and kept gaining ground quite consistently till the end of the session that day. The central bank, as it made its policy statement, lowered the GDP growth projection to 7% from 7.5% - 8% earlier. The Apex bank also stated that it expects inflation to be lower than the projected 7% by March 2009.

Scrip Scan | Experts' Talk

After moving in a tight range for more than a couple of hours, the market rallied sharply during the final hour of trade on Wednesday on some frenzied buying in heavyweight stocks, presumably on short-covering. The late recovery on the Asian bourses and a firm trend in European markets too contributed to the rally. The Sensex gained over 250 points in that session while the Nifty moved up by around 78 points.

Global meltdown and stock market

On Thursday, the market turned easy as investors stayed wary of holding positions at higher levels and chose to book profits after two successive days of gains. There were some strong spells for a few stocks due to short-covering ahead of expiry of F&O contracts, but the negative start on the European bourses and lower US index futures rendered the market subdued in afternoon trade that day. Inflation rose marginally, but that did not trigger any significant sell-off. The Sensex and Nifty eased by around 21 points and 25 points respectively.

The market shrugged off a weak start and rallied higher on the back of some good numbers from India Inc, especially from Larsen & Toubro, and signed off on a firm note on Friday. FMCG, oil, realty, metal, auto, bank and capital goods stocks recorded impressive gains. The Sensex notched up 188 points, while the Nifty climbed up by over 50 points in that session.

Sun Pharmaceuticals (down 0.2%) was the only Sensex stock to end on a negative note last week. The stock suffered a sharp loss on the final session after its associate firm in US reported a sharp fall in earnings. From the Nifty pack, Suzlon Energy (down 3.3%), GAIL India (down 2.1%) and Punjab National Bank (down 1.5%) closed on a negative note.

Jaiprakash Associates, which moved up by nearly 24%, was the biggest gainer in the Sensex. Reliance Infrastructure shot up by close to 20%. Sterlite Industries, Ranbaxy Laboratories, Reliance Industries, ICICI Bank, Mahindra & Mahindra, Hindalco, Tata Steel, Maruti Suzuki, Tata Motors, HDFC, State Bank of India and DLF gained 10% - 15.5%.

Infosys Technologies surged 8.4%. Wipro advanced by a little over 8%. Larsen & Toubro, Tata Power, ACC, Reliance Communications, HDFC Bank, Hindustan Unilever, NTPC, ITC, Tata Consultancy Services and Grasim Industries moved up by 5% - 7.5%. Bharti Airtel and ONGC gained 3% and 1.9% respectively while BHEL ended flat.

Zee Entertainment vaulted 20.5%. Unitech zoomed 19.3%. SAIL notched up a hefty gain of 15.7%. Reliance Petroleum posted a gain of 12.6%. Reliance Capital, Siemens, Idea Cellular, ABB, Reliance Power, HCL Technologies, Cairn India, Nalco, Ambuja Cements, Tata Communications, Hero Honda, Cipla and Power Grid Corporation also closed on a firm note last week.

Among the sectoral indices, BSE Metal shot up by 15.21% last week. The Realty and Oil & Gas indices surged 10.2% and 10.11% respectively. The Bankex, IT and Teck barometers moved up by 9.26%, 8.09% and 6.45% respectively. BSE Auto, CD, CG, FMCG, Power and PSU gained 3% - 5.5%. BSE Healthcare, the only loser last week, ended with a slender loss. The Midcap index ended 3.2% up while the Smallcap barometer firmed up by 2.57%.

Week ahead: Sell on rally

Arun Kejriwal runs his own advisory firm, M/s Kejriwal Research and Investment Services Pvt Ltd. He advises HNIs, corporates and brokers on managing portfolios and investment opportunities.

He helps new promoters to tap the capital markets and also those who are keen to learn the nuances of the market. Equipped with a commerce and law degree, he has rich experience of over two decades in dealing with the markets.

Last week's trading reflected short covering and the effect it can have on the markets. The indices went up on three of the four trading days. World markets were also mixed and followed the American markets, which had a very strong rally for the initial part of the week, but sharp selling and renewed slowdown and recession worries brought down the American markets to finally end almost flat - but in negative territory.

Results continue to be mixed, but the positive ones are few and far between. Almost all companies have suffered on account of forex, whether it is on the foreign exchange loans taken or the FCCBs issued or the imports or exports of the company. Margins are under pressure and the sales have been affected because of a slowdown.

The US markets were marginally down with the Dow Jones losing 76.7 points or 0.95%, while Nasdaq lost under a point, a mere 0.87 point or 0.06% to close at 1476.42 points. Asian markets performed much better and rose substantially with the Hang Seng gaining 699.61 points or 5.56 % to close at 13278.21 points. Nikkei gained less with the benchmark index gaining 248.8 points or 3.21 % to close at 7994.05 points.

The BSE Sensex gained 749.89 points or 8.64% to close at 9424.24 points. With this gain, the BSE Sensex has not only recovered the entire loss of the previous week, but has gained some more. The Nifty gained 196.25 points or 7.33% to close at 2874.80 points.

The markets gained handsomely this week on short covering alone as FIIs continued to be sellers and domestic institutions being net buyers. Petrol, diesel and LPG prices were reduced and the UPA government is now in election mode, which is likely to be held in April - May 2009.

All the sectoral indices gained ground with the exception of the BSE Healthcare, which ended almost flat losing a mere 2.5 points or 0.09 % to end at 2713.84 points. The top performing indices were the BSE Metal, which gained 673.14 points or 15.21 % to close at 5100.14 points and BSE Realty, which gained 154.45 points or 10.20% to close at 1668.08 points.

Amongst individual gainers, Madras Aluminum gained the maximum 5% each day to gain Rs 19.65 or 28.7% to close at Rs 83.10. This share has been on an uptrend ever since the promoters at its Board meeting announced their intention to acquire the outstanding shares and delist the company.

Steel Authority gained Rs 11.25 or 15.72% to close at Rs 82.80 and Unitech gained Rs 5.20 or 19.29% to close at Rs 82.80. A big gainer for the week was Reliance Industries, which gained Rs 172 or 14.9% to close at Rs 1,325. This gain helped the BSE Sensex, the Nifty, the BSE 100, the BSE 200, BSE 500 and the BSE Oil and Gas to post sharp gains. Decent gains from ICICI Bank and State Bank of India also helped the indices.

Coming to the next week, the Asian markets will be open after the Chinese New Year holidays and in all probability the selling from the foreign institutional investors will commence once again. Overseas cues and FII behavior will determine the course the markets will take.

I am of the firm belief that though the short term charts indicate bullishness based on the sharp rally during the week, this week is likely to see another reversal at higher levels with maybe an initial rally in the first two days, if at all.

Traders are advised caution and buying at higher levels should be avoided or monitored carefully. The discount in stock futures which I talked about disappeared last week and one would see the same again appearing as we move forward.

The Sensex has support at the 9195-9200 levels and then at 8995 levels. The next support is at 8844 and then at 8675-8700 levels. In the unlikely event of this breaking the next support exists at 8350 level. The Sensex has resistance at 9545, then at 9645 and then at 9896-9900 levels. If this is crossed, there is strong resistance at the 10300 levels.

The Nifty has support at 2805, then at 2745 levels, then at 2698 and finally at 2600 levels. It has resistance at 2912, then at 2942, then at 3019 and multiple resistances between 3137 and 3147. If this figure is crossed, the final resistance is at 3200 levels.

In conclusion, this week is likely to see the market attempting to break upwards and reach the physiological levels of 10K and 3K on the Sensex and Nifty respectively. There would be selling pressure and profit booking at higher levels and extreme caution is advised at higher levels.

SEBI disclaimer: I have no investments in any of the stocks referred above.

Friday, January 30, 2009

Thursday, January 29, 2009

Wednesday, January 28, 2009

Tuesday, January 27, 2009

Friday, January 23, 2009

Thursday, January 22, 2009

Wednesday, January 21, 2009

Tuesday, January 20, 2009

Sensex recovers partially; Hindustan Unilever, ONGC move up

he Sensex opened with a negative gap of 200 points at 8,901, and soon touched a low of 8,887. The index since then has recovered partially and is now down 83 points at 9,018.
ICICI Bank has slumped 4.5% to Rs 379, and Wipro has shed 3.5% at Rs 220.

Bharti Airtel has dropped 2.6% at Rs 599. HDFC has tumbled over 2% to Rs 1,452.

Reliance Infrastructure and ACC have plunged nearly 2% each to Rs 542 and Rs 476, respectively.

HDFC Bank, Mahindra & Mahindra and Maruti have slipped 1.7% each to Rs 896, Rs 295 and Rs 550, respectively.

Ranbaxy has moved up 1.7% to Rs 218. Hindustan Unilever and ONGC have gained 1.3% each at Rs 250 and Rs 671, respectively.

Indian seafood exporters may get a major lift

In an important move that can be termed as positive to the Indian seafood export industry, the US Customs and Border Protection [CBP], under the Department of Homeland Security has initiated action to abandon the enhanced bonding requirement [EBR] on shrimp imported to that country
CBP has recently invited comments from the public on the proposal to end EBR, especially from importers and domestic producers of shrimp. The US move is in response to a decision of the Dispute Settlement Body [DSB] of World Trade Organisation [WTO] to abandon EBR immediately as it is inconsistent with the WTO obligations. The WTO decision was in the wake of a complaint filed by India and Thailand in April, 2006.

As termed by the exporters and experts this move is crucial and important to the domestic export industry since India’s business with the US had dropped terribly during last 4-5 years.

The number of exporters to the US had dropped from 254 in 2005 to 52 last year obviously due to the heavy burden of EBR in addition to the anti dumping duty on warm water shrimp. India’s export basket to USA had dropped to 36,612 tonne valued at Rs 1,017 crore in 2007-08 from 43,758 tonne valued at Rs 1,347 crore in 2006-07 .

The US import had dipped by 24.55 per cent in value and 16.33 per cent in volume. The US share in the export basket had dropped to 13.3 per cent making the country to the fourth spot after EU, Japan and China.

At the request of India and Thailand WTO had established two panels to study the issue in October and November, 2006. Both the countries argued that the US action breached several provisions of GATT 1994, the WTO agreement on implementation of Article V1 of GATT, and the agreement on subsidies and countervailing measures. The panels uphold the views of India and Thailand.

The US cross appealed against the panel’s findings in April, 2008 at the Dispute Settlement Body [DSB], but it adopted reports of the panels and appellate body in last August.

In a consultation meeting with the US, India and Thailand on 5 September,2008 Washington indicated that it intended to comply with the recommendations and rulings of the DSB, but sought more time to implement.

Washington had sought time till March of this year. In its notification dated 7 January, 2009 CBP has called for public comments on the issue and the last date for submitting them is 11th February, 09. Final notice regarding EBR will be announced after a scrutiny of such comments, the notification said.

Nifty has support at 2816-2793: India Capital Markets

According to India Capital Markets' Technical Outlook, Nifty has a support at 2816 & 2793 and faces resistance at 2861 & 2888.

India Capital Markets' Technical Outlook:

Nifty has a support at 2816 & 2793 and faces resistance at 2861 & 2888. Nifty above 2876 will set a target of 2897, 2911, 2932 & 2959. Nifty below 2801 will set a target of 2779, 2761, 2747 & 2721.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Market continues to languish

Markets continue to remain under pressure in the afternoon trades as selling pressure prolongs. Selling is witnessed almost all over the bourses, with the metals’, banking and auto stocks among the major losers.

Cues from the Asian markets are also not that encouraging, Nikkei index in Japan was down by 2.3% and the Hang Seng index in Hong Kong was down by 1.6%.

Among the 30-components of the Sensex 28 stocks are in the red and only 2 stocks i.e. TCS and Reliance Infrastructure were among the major gainers. Reliance Industries, HDFC, ICICI Bank, SBI and Bharti were among the major laggards.

At 2:39 pm (IST), Sensex was down 209 points at 9,120 and the Nifty was down 56 at 2,789.

Shares of Rolta India have advanced by 1.2% to Rs88.7. The company announced its results and posted a net profit after tax, minority interest and exceptional items of Rs605.60mn for the quarter ended December 31, 2008 as compared to Rs602.20mn for the quarter ended December 31, 2007.

Total Income increased from Rs2519.40mn for the quarter ended December 31, 2007 to Rs3714.50mn for the quarter ended December 31, 2008.The scrip has touched an intra-day high of Rs90.8 and a low of Rs84 and has recorded volumes of over 29,00,000 shares on NSE.

Tata Steel (Thailand) Pcl which is controlled by Tata Steel Ltd, reported a loss of 2.27 billion baht in the three months to Dec. 31 compared with a profit of 617 million baht a year earlier. The company posted its biggest quarterly loss since 2003. The stock declined the most in over a month in Bangkok and was down by 7.6% to 1.09 baht.

Shares of Tata Steel in India were also down by 6% to Rs196. It hit an intra-day high of Rs204 and a low of Rs195 and has recorded volumes of over 31,00,000 shares on NSE.

Shares of MindTree have plunged by over 7% to Rs221 after the company announced its results. Group profit in the three months ended Dec. 31 dropped 56% to Rs87.2mn. The scrip has touched an intra-day high of Rs222 and a low of Rs202 and has recorded volumes of over 42,000 shares on NSE.

Shares of TCS have rebounded sharply from its low and have gained by 1.2% to Rs505 after the company announced that it has signed a multiyear, multimillion pact with Ducati. The scrip has touched an intra-day high of Rs507 and a low of Rs490 and has recorded volumes of over 3,00,000 shares on NSE.

Mkts southbound; power charges up

The benchmark indices have shown some recovery from the lows of the day but are still witnessing selling pressure. Power stocks have turned into green, after CERC has raised Return on Equity for power units to 15.5% versus 14%; 15.5% RoE will be applicable from 2009-2014.

CERC also said return on equity for projects completed on schedule stood at 16%. NTPC, Power Grid, Tata Power, Reliance Infrastructure and Reliance Power gained 1.5-12%. BSE Power Index rose 1.5%.

Metal, banking, auto, telecom, realty, oil & gas, capital goods and technology stocks are still under pressure. Midcap and small cap indices also recovered from lows of the day.

The Sensex went down 209 points to 9,119 and the Nifty lost 44 points to 2,802, at 2:58 hours IST. BSE Midcap and Small cap indices slipped marginally.

Market breadth is in favour declines; about 1107 shares have advanced while 1437 shares declined. Nearly 400 shares are unchanged.

BSE Metal, Bankex, Auto, TECK, Realty, Oil & Gas and Capital Goods indices lost 2-3%.

Markets @ 2:03 pm ; Mkts reel under pressure; Bharti, RIL, banking drag

The markets are trading sharply lower, as selling continues in banking, metal, realty, auto, telecom, oil & gas exploration, capital goods and power stocks followed by midcap and small cap stocks. There is a bit of recovery in the benchmark indices due to ONGC, though it lost 1%.

The Sensex is hovering around 9100 level, went down 232 points to 9,096 and the Nifty lost 66 points to 2,780, at 2:03 hours IST. BSE Midcap and Small Cap indices felll 0.4-0.9%.

Bharti Airtel, Reliance Industries, HDFC, ICICI Bank, SBI, BHEl, SAIL, NTPC, Reliance Communication, ONGC, HDFC Bank, DLF and L&T are dragging the markets lower.

20 Jan Nifty

Nifty seen lower, support at 2750-2775

A gap-down opening for the Indian stocks is likely on Tuesday given the weak Asian markets and the Singapore Nifty trading lower by 57
points. Foreign players selling in futures and spot market is also a matter of concern. Analysts are advising investors to stay light with strict stop losses.

After a volatile session of trade Monday, National Stock Exchange's 50-share Nifty ended 0.63 per cent up at 2846 levels while January futures settled at a stagnant discount of 13 points to spot. Nifty January futures were trading in the range of 17-21 points discount to spot throughout the session and closed the day at 2,833, a 13-point discount to spot.

The open interest in January futures declined by 469,650 shares due to unwinding of long positions at higher levels. The Nifty February futures closed at 2,836 and added 14.3 lakh shares indicating rollover of long positions.

The Nifty moved in a narrow range of a mere 48 points Monday. The range contraction tells us that the market participants are confused. They are not sure of the direction in which the index is likely to move in the next few days. Now, this indecision has to end sooner or later. Therefore, a range contraction is an indication of a big move to come.

The narrow range also gives a trading opportunity. The high and low of the range act as resistance (high) and support (low). If the Nifty moves above the high of 2869, there is a buying opportunity, below the low of 2819, there is a selling opportunity.

Options build up sketches a hazy picture. Significant amount of call writing was seen at 2900 and 2800 call while, call buying was observed at 3000 strike suggesting a hedge against any abrupt upside. On the downside, unwinding of short calls was observed at 2900 strike. However, huge build up was seen at 2800 and 2700 put.

The options data gives a resistance for Nifty at 2900 while support at 2700-2750 zone for intraday trading. The mid-long term support is intact at 2600-2500 levels.

Foreign players net sold Rs 212 crore in futures and options to the tune of Rs 250 crore. The F&O turnover of Rs 26000 crore on Monday was the second lowest in the month of January.

Meanwhile, stocks slumped in Asia led by commodity producers and banks, after Royal Bank of Scotland forecast of the biggest loss in UK corporate history which heightened concern the global recession is deepening.

Market continues to languish

Markets continue to remain under pressure in the afternoon trades as selling pressure prolongs. Selling is witnessed almost all over the bourses, with the metals’, banking and auto stocks among the major losers.

Cues from the Asian markets are also not that encouraging, Nikkei index in Japan was down by 2.3% and the Hang Seng index in Hong Kong was down by 1.6%.

Among the 30-components of the Sensex 28 stocks are in the red and only 2 stocks i.e. TCS and Reliance Infrastructure were among the major gainers. Reliance Industries, HDFC, ICICI Bank, SBI and Bharti were among the major laggards.

At 2:39 pm (IST), Sensex was down 209 points at 9,120 and the Nifty was down 56 at 2,789.

Shares of Rolta India have advanced by 1.2% to Rs88.7. The company announced its results and posted a net profit after tax, minority interest and exceptional items of Rs605.60mn for the quarter ended December 31, 2008 as compared to Rs602.20mn for the quarter ended December 31, 2007.

Total Income increased from Rs2519.40mn for the quarter ended December 31, 2007 to Rs3714.50mn for the quarter ended December 31, 2008.The scrip has touched an intra-day high of Rs90.8 and a low of Rs84 and has recorded volumes of over 29,00,000 shares on NSE.

Tata Steel (Thailand) Pcl which is controlled by Tata Steel Ltd, reported a loss of 2.27 billion baht in the three months to Dec. 31 compared with a profit of 617 million baht a year earlier. The company posted its biggest quarterly loss since 2003. The stock declined the most in over a month in Bangkok and was down by 7.6% to 1.09 baht.

Shares of Tata Steel in India were also down by 6% to Rs196. It hit an intra-day high of Rs204 and a low of Rs195 and has recorded volumes of over 31,00,000 shares on NSE.

Shares of MindTree have plunged by over 7% to Rs221 after the company announced its results. Group profit in the three months ended Dec. 31 dropped 56% to Rs87.2mn. The scrip has touched an intra-day high of Rs222 and a low of Rs202 and has recorded volumes of over 42,000 shares on NSE.

Shares of TCS have rebounded sharply from its low and have gained by 1.2% to Rs505 after the company announced that it has signed a multiyear, multimillion pact with Ducati. The scrip has touched an intra-day high of Rs507 and a low of Rs490 and has recorded volumes of over 3,00,000 shares on NSE.

Nifty has support at 2816-2793: India Capital Markets

According to India Capital Markets' Technical Outlook, Nifty has a support at 2816 & 2793 and faces resistance at 2861 & 2888.

India Capital Markets' Technical Outlook:

Nifty has a support at 2816 & 2793 and faces resistance at 2861 & 2888. Nifty above 2876 will set a target of 2897, 2911, 2932 & 2959. Nifty below 2801 will set a target of 2779, 2761, 2747 & 2721.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Mkts southbound; Nifty back above 2800, power charges up

The benchmark indices have shown some recovery from the lows of the day but are still witnessing selling pressure. Power stocks have turned into green, after CERC has raised Return on Equity for power units to 15.5% versus 14%; 15.5% RoE will be applicable from 2009-2014.

CERC also said return on equity for projects completed on schedule stood at 16%. NTPC, Power Grid, Tata Power, Reliance Infrastructure and Reliance Power gained 1.5-12%. BSE Power Index rose 1.5%.

Metal, banking, auto, telecom, realty, oil & gas, capital goods and technology stocks are still under pressure. Midcap and small cap indices also recovered from lows of the day.

The Sensex went down 209 points to 9,119 and the Nifty lost 44 points to 2,802, at 2:58 hours IST. BSE Midcap and Small cap indices slipped marginally.

Market breadth is in favour declines; about 1107 shares have advanced while 1437 shares declined. Nearly 400 shares are unchanged.

BSE Metal, Bankex, Auto, TECK, Realty, Oil & Gas and Capital Goods indices lost 2-3%.

Markets @ 2:03 pm ; Mkts reel under pressure; Bharti, RIL, banking drag

The markets are trading sharply lower, as selling continues in banking, metal, realty, auto, telecom, oil & gas exploration, capital goods and power stocks followed by midcap and small cap stocks. There is a bit of recovery in the benchmark indices due to ONGC, though it lost 1%.

The Sensex is hovering around 9100 level, went down 232 points to 9,096 and the Nifty lost 66 points to 2,780, at 2:03 hours IST. BSE Midcap and Small Cap indices felll 0.4-0.9%.

Bharti Airtel, Reliance Industries, HDFC, ICICI Bank, SBI, BHEl, SAIL, NTPC, Reliance Communication, ONGC, HDFC Bank, DLF and L&T are dragging the markets lower.

Market breadth is weak; about 1011 shares have advanced while 1503 shares declined. Nearly 428 shares are unchanged.

Polaris Software Lab surged 26%, after its good set of numbers in Q3. The company's Q3 net profit was up at Rs 37.2 crore versus Rs 34.4 crore and revenues were up at Rs 372.5 crore versus Rs 351.1 crore, QoQ.

Mangalore Refinery and Petrochemicals (MRPL) plunged over 7%, as the company posted net loss of Rs 285.4 crore in Q3 versus net profit of Rs 346.6 crore. Its inventory loss was of Rs 1062 crore and its Q3 GRM was negative at USD 2.77 per barrel.

On the global front, Asian markets ended on a weak note. Hang Seng and Taiwan plunged 2.8%. Nikkei and Kospi fell over 2%. Straits Times and Jakarta lost 1.6-1.8%. However, Shanghai gained 0.37%.

European markets are flat. FTSE went up 17 points to 4,126. CAC and DAX gained 10 points each at 2,999 and 4,326, respectively.

Markets @ 12:52 pm : Mkts sell-off; metal, banking, telecom, CG, RIL, ONGC dip

The benchmark indices are reeling under selling pressure following negative cues from Asian markets. Metal, banking, realty, auto, telecom, oil & gas exploration, capital goods, and power are leading this fall. Midcap and smallcap stocks are also showing a similar trend.

The Sensex tumbled 266 points to 9,063 and the Nifty fell 78 points to 2,768, at 12:52 hours IST. BSE Midcap Index slipped 1% and Small Cap index lost 0.6%.

Market breadth is in favour of declines; about 1015 shares have advanced while 1477 shares declined. Nearly 450 shares are unchanged.

Reliance Industries, ICICI Bank, Infosys, ITC, Bharti Airtel, ONGC, NTPC and HDFC are draggers. However, oil marketing companies like BPCL, HPCL and IOC gained 1-2.5%.

Tata Steel Thailand unit reported loss of USD 65 million. The stock went down 5.4%.

Among the midcap stocks, MindTree, Educomp Solutions, Tanla Solutions, Usha Martin, Pantaloon Retail fell 5.6-7.7% while United Breweries, TV 18, Fortis Health, Bilcare and Bajaj Finserv gained 4-4.7%.

In the small cap space, Surana Ind, Empire Ind, AP Paper Mills, Everonn Systems and Piramal Glass plunged 6.5-10% while Suashish Diamon, Jolly Boards, Kiri Dyes Chem, Sanwaria Agro and Sahara One surged 7-10.7%.

Asian markets have recovered a bit from their lows; Hang Seng, Kospi, Taiwan, Nikkei and Straits Times markets fell 1.8-2.8%. However, Shanghai rose 0.3%.

Markets @ 11:41 am : Mkts plunge; HDFC, Bharti, R-Comm, Sterlite top losers

Continuous sell-off in banking, metal, realty, oil & gas, telecom, auto, power and capital goods, is putting pressure on the benchmark indices. Hang Seng, Nikkei, Taiwan, Kospi, Straits Times and Jakarta markets fell 2-3.3%. Shanghai lost just 0.4%.

Globally, Amitabh Chakraborty of Religare Securities feels the rally that started in December, where money was flowing into equities is gradually fizzling out. He feels markets are awaiting the results of the actions, such as bailout, stimulus packages, etc., taken globally

Monday, January 19, 2009

Sunday, January 18, 2009

Nifty futures under downward pressure

The ‘snakes and ladders’ game continued in the bourses last week as well, with the Nifty future recovering a good part of its early losses. After dipping to a low of 2697 points during the week, Nifty futures closed the week on a better note at about 2815, though still 1.66 per cent short of its previous week’s close.
Outlook

Nifty future failed to scale above 3250 in the recent rally, which suggests that the days ahead for it can be painful.

Though it briefly broke the 2750 support, it managed to recover on Friday, to close above that level quite comfortably.

But despite the pullback, we remain doubtful of its ability to break past 3250.

While a move past 3250 can take it to 3550, a fall below 2750 can take it to 2250, though it may face a minor support at 2550.

Friday’s rally however may have been driven mainly by short covering.

The pruning of the discount between Nifty’s future and spot prices validates that.

There was also an accumulation of open interest positions of calls at strikes 2800 and 2900, while puts at strikes 2700 and 2800 saw the emergence of writers.

This suggests that Nifty futures may have a strong support around these levels.

Heightened trading activity in 2500 and 2600 puts also highlights the confused mindsets of traders.

Nifty 2700 put adds 16.2 lakh shares in OI

Here is a transcript of Head-Markets Research, Anuj Singhal’s comments on CNBC-TV18. Also watch the accompanying video.

FIIs were net buyers to the tune of Rs 645.9 crore in Index Futures and its open interest (OI) was up by 570 contracts. FIIs net bought Rs 303.3 crore in Index Options and OI was up by 51233 contracts. Nifty Futures ended at discount of 15 points versus 25 points discount a day ago.

Nifty Open Interest PCR went upto 0.93 from 0.89. Nifty 2700 put added 16.2 lakh shares in OI and Nifty 2900 call added 9.2 lakh shares in OI.

Short covering rally was seen in Bharti Airtel. The stock went up 5% and its cost of carry, CoC was up. Futures Open Interest went down 10%.

F&O HIGHLIGHTS
FIIs net buy Rs 645.9 cr in Index Futures; OI up by 570 contracts
FIIs net buy Rs 303.3 cr in Index Options; OI up by 51233 contracts
Nifty Fut discount at 15 pts vs 25-pts discount a day ago
Nifty Open Int PCR up to 0.93 from 0.89
Nifty 2700 put add 16.2 lakh shares in OI
Nifty 2900 call add 9.2 lakh shares in OI

BHARTI
Stock up 5%; CoC up
Futures Open Int down 10%
Short covering rally seen

JP ASSOCIATES
Stock up 1.9%; CoC up
Futures Open Int up 6%
Fresh long positions seen

SAIL
Stock up 7.8%; CoC up
Futures Open Int up 5%
Fresh long positions seen

SATYAM
Stock up 20%; CoC up
Futures Open Int up 12%
Speculative long positions seen

HCC
Stock down 11%; CoC down
Futures Open Int up 7%
Fresh short positions seen

Markets flat in choppy trade

The key benchmark indices are flat in early trade amid mixed cues from Asian markets. Both the Sensex and the Nifty are trading 0.3 per cent higher.
“The markets are likely to remain positive in the short term. Liquidity from FIIs and LIC may prop up investor sentiments. The Nifty may remain range bound between 2620-2930 levels,” said Deven Choksey, MD, KR Choksey Securities.

Buying interest is seen in metal, consumer durables, healthcare and capital goods stocks. The BSE capital goods index is up 0.8 per cent and the metal index has gained 0.6 per cent. Selling pressure has emerged in IT, oil & gas, realty and banking stocks.
Among the Sensex scrips, JP Associates, is the biggest gainer. It has advanced 3.5 per cent. Sterlite Industries, Hindalco and ITC are the other main gainers in the pack. Major losers in the group are ICICI Bank, M&M and Infosys, down more than 1.3 per cent each.
“The Nifty finds good support at 2810 levels and has resistance at 2870. If 2870 breaks then the index may even touch 2950,” said Salil Sharma, Partner, Kapur Sharma & Co.
Key Asian indices are trading mixed today. South Korea’s Kospi and China’s Shanghai Composite are up more than 1 per cent each. Japan’s Nikkei is trading flat whereas Hong Kong’s Hang Seng has shed 0.5 per cent.

Saturday, January 17, 2009

Bank bailout lifts mood across markets

Renewed efforts by the US to control its economy from slipping further into recession sent a ‘positive’ signal globally, with most equity
benchmark indices, including those in India, registering significant gains. Local index heavyweights helped the benchmark Sensex and the broader Nifty gain more than 3% each. However, market breadth was not very convincing, and neither was traded turnover.

The Sensex opened the day with a positive gap and traded in the green throughout the session. The index ended with a gain of 276.85 points at 9,323.59. The Nifty rose 91.75 points to close at 2,828.45. Elsewhere in Asia, Japan’s Nikkei gained 207 points while Hong Kong’s Hang Seng and China’s Shanghai Composite ended with a gain of around 1% each.

Earlier in the day, much before Indian bourses opened for trading, news was already out that the US government would invest $20 bn in bank of America — the largest US bank by assets — and guarantee $118 billion of assets to help it absorb Merrill Lynch. The bank posted its first loss since 1991. Citi announced a $8.29-billion loss after market hours. According to Bloomberg, the bank would be split into two to rebuild a capital base decimated by the credit crisis.

“The news about BankAm bailout convinced investors that the US government would go to any length to stem the economic crisis,” said a dealer. “Sentiment was strengthened also because of the fact that the European Central Bank announced another rate cut (50 bps) on Thursday,” he added. However, most market participants say not all investors are ready to bet on the market at the current juncture.

Lack of investor interest was clearly evident from Friday’s low turnover. Total volume was pegged at Rs 42,929 crore, much lower than Thursday’s Rs 51,000-plus crore. The breadth was almost equally divided among gainers and losers.

Among Sensex constituents, NTPC, RIL, Tata Power, Bharti Airtel and ONGC gained in the range of 3-8% each. Bajaj Auto, Essar Shipping, SAIL and Suzlon Energy were among top gainers in BSE’s ‘A‘ group.

Meanwhile, provisional figures revealed foreign investors net-sold Indian shares worth Rs 585 crore. Domestic investors, on the other hand, were buyers of shares worth Rs 400 crore.

Expect more upside in Nifty for the short term

The Nifty opened on a positive note and closed above 2,800 at 2,828 on the US government’s bailout package for Bank of America and early gains in Europe. Technical indicators, according to Ashish Shroff of Ambit Capital, are trading in oversold and, therefore, one can expect some more upside in the Nifty for the short term.
Derivative traders expect the Nifty to take strong support at 2,800 and also continue its rally, targeting 2,900 first and then 2,950. The implied volatility (IV) of Nifty put options declined to 45 per cent from 48.92 per cent, while the IV of Nifty call options were down to 41 per cent from 45 per cent, indicating near-term stability for the index.

Open interest (OI) in 2,800, 2,900 and 3,000 calls is 12.55 million shares, which is 40 per cent of the total call OI in Nifty options. These options have seen a strong OI build-up of over 2 million shares in two days mostly through buy trades, indicating a near-term upside for the index. The 2,700 put added OI of 1.61 million shares, while the 2,800 put added OI of 608,800 shares, hinting that 2,800 will now act as the support level for the short term.

Nifty January futures were trading in a range of 25-28 points discount to the spot throughout the session, but ended with 12 points discount on short covering by bears. The settlement data also showed short covering as OI in January had declined by 400,050 shares at close as against the intraday build-up of 2.68 million shares. The Bloomberg data show 46 per cent of the day’s trade changed hands at 2,800 through buy orders, which suggests fresh upside for the Nifty in the near future.

Reliance Industries closed above Rs 1,200 at Rs 1,219 on short covering and fresh long build-up. The January futures of RIL added OI of 284,025 shares, while Rs 1,200 put added OI of 90,375 shares, indicating that the stock has strong support at Rs 1200 level.

Weekly warp: Sensex ends lower

The market had a couple of good sessions during the week ended January 16, first on Wednesday when index heavyweights, shares of Anil and Mukesh Ambani group companies in particular, flared up on frenzied buying, and then on Friday as firm global sentiment triggered some strong buying across the board.

The Sensex gained around 300 points and 90 points respectively on those two sessions, but it still ended the week on the negative side at 9323.59, lower by around 0.88% or 82.88 points than its previous week's closing mark.

Stockometer

The Nifty ended the week at 2828.45 with a loss of 44.55 points or 1.55%. Mirroring weakness exhibited by stocks in midcap and smallcap segments, the BSE Midcap and Smallcap indices lost around 3% and 4% respectively.

Among the major factors that weighed down the sentiment was the sharp fall in earnings of some US financial majors. US and Asian markets were seen struggling during the earlier part of the week. Concerns over corporate governance issues following the startling disclosure of some accounting irregularities in Satyam Computer Services and the subsequent developments in the company played a role in directing price movements last week.

Infosys Technologies reported better-than-expected numbers for the October - December 2008 quarter, even as it lowered its guidance for the full financial year. TCS fell short. Among other index majors, HDFC Bank's results were strong but the bank's NPA rose sharply.

Top gainers | Worst losers

On the economic front, inflation fell again. Inflation for the year through January 3, 2009, fell to 5.24% from 5.91% in the previous week. India's industrial output for the month of November showed a marked rise.

It was a bad start for the market last week with weak global markets and concerns over corporate governance issues hit the sentiment on Monday. As blue chips, led by heavyweight stocks, tumbled on selling pressure, the Sensex went down by nearly 300 points that day. The Nifty lost almost 100 points.

The market opened well on Tuesday, thanks to quarterly numbers from Infosys, but lost its way as the session progressed. After a highly choppy ride, the Sensex closed with a loss of around 39 points and the Nifty eased by 28 points on that session.

Scrip Scan | Experts' Talk

Though Infosys Technologies romped home with an impressive gain, sharp losses posted by Reliance Industries and banking sector heavyweights dragged the Sensex down.

On Wednesday, rumours of a patch up between the warring Ambani brothers Mukesh and Anil triggered hectic buying in shares of the companies owned by them.

The sharp rally in Reliance group stocks had a positive impact on the overall mood and the market recorded a spectacular surge in the closing minutes of trade that day. The BSE 30-share Sensex surged 299.13 points or 3.30% at 9370.49. The S&P CNX Nifty gained 90.35 points or 3.29% at 2835.30.

Global meltdown and stock market

The market went crashing down on Thursday on weak global cues. While the Sensex tumbled by nearly 325 points, the Nifty lost close to 100 points in that session.

Amid hopes that the US government would speed up the process of rescuing the ailing US financial sector, the bulls stormed back to the ring and lapped up front line stocks on Friday. Trading firm right through the session, the Sensex moved up by over 275 points that day and the Nifty ended stronger by around 92 points.

From the Sensex pack, only 9 stocks ended the week on the positive side. IT bellwether Infosys Technologies moved up by over 6% to Rs 1268.25. Reliance Industries surged 5.9%. Reliance Infrastructure and Mahindra & Mahindra gained 4.8% and 4.2% respectively. Tata Power gained 3.3%.

Sun Pharmaceuticals, which replaced Satyam Computer Services in the Sensex, ended the week with a modest gain of 1.6%. ITC also moved up by 1.6%. NTPC and Maruti Suzuki closed with marginal gains.

HCL Technologies (10.4%), Hero Honda (5.3%) and GAIL India (2.5%) were the prominent gainers in the Nifty. BPCL edged up by around 1.2%.

Among the losers from the Sensex, realty major DLF suffered the most as it went down by 10.3% to Rs 195.20. HDFC Bank and ICICI Bank, the private sector heavyweights, lost 7.5% and 6.8% respectively. Tata Consultancy Services lost a little over 6%. Tata Motors eased by 6%. Grasim Industries and Wipro ended lower by 5.9% and 5.1% respectively.

HDFC, Hindalco, Tata Steel, Sterlite Industries and Hindustan Unilever lost nearly 5% last week. State Bank of India declined 4.1%. Jaiprakash Associates, ONGC and Reliance Communications lost 3.6%, 3.3% and 2.2% respectively. BHEL and Bharti Airtel finished with moderate losses while Ranbaxy Laboratories, Larsen & Toubro and ACC ended marginally lower.

Unitech lost over 18%. Siemens ended with a big loss of 10.7%. Cairn India, ABB, Zee Entertainment, Punjab National Bank, Reliance Power, Idea Cellular and Tata Communications weakened by 5% - 7%. Suzlon Energy, Power Grid Corporation, Ambuja Cements and Reliance Petroleum also ended weak.

Rolta India went tumbling down by over 23% on rumours of a heavy sell-off by a financial institution with whom the management has pledged its shares. Sintex Industries lost around 23%. India Bulls Financial Services drifted down by 22.5%. Pantaloon Retail lost 20.9%.

GE Shipping, Jai Corp, Gammon India, Aban Offshore, Bank of Baroda, India Bulls Securities, Reliance Capital, Voltas, Hindustan Construction Company, Bharat Forge, Bank of India, Divi's Laboratories, Hindustan Zinc, Axis Bank, Gujarat Minerals, Kotak Bank, MMTC and India Cements were among the other prominent losers last week.

Among the sectoral indices, BSE IT (2.49%), Oil & Gas (2.7%), Auto (1.13%), CD (0.59%) and Teck (0.48%) ended higher. The Realty index lost 7.53%. The Bankex fell 6.38%. BSE Metal and Capital Goods indices slipped by 4.01% and 2.44% respectively. BSE PSU lost 1.9% while the FMCG, Healthcare and Power barometers drifted down by 0.65% - 0.75%.

Friday, January 16, 2009

Thursday, January 15, 2009

Wednesday, January 14, 2009

Tuesday, January 13, 2009

Monday, January 12, 2009

Friday, January 9, 2009

Wednesday, January 7, 2009

Tuesday, January 6, 2009

Friday, January 2, 2009

Thursday, January 1, 2009

1 Jan

Hello my dear all viewers today yahoo server of finance is not updating stock charts then I can't upload today's chart of nifty...thanks....!!!
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