SOURCE:BUSINESS-STANDARD
The Sensex has pared significant gains in the last few minutes, and is now up just 30 points at 10,977. Earlier in the day, the index after a positive start of over 100 points, had rallied to a high of 11,339 - up nearly 400 points.
Larsen & Toubro has surged 5.5% to Rs 876. SBI has soared over 4% to Rs 1,314, and ICICI Bank has rallied 3.7% to Rs 442.
Infosys has gained nearly 3% at Rs 1,380. Reliance Infrastructure, HDFC and Grasim have moved up around 2% each at Rs 658, Rs 1,791 and Rs 1,640, respectively.
Tata Motors and Hindalco have slumped over 5% each to Rs 231 and Rs 55, respectively.
Tata Steel and Sterlite have shed around 4.5% each at Rs 257 and Rs 383, respectively.
Sun Pharma has dropped 3% to Rs 1,200. Maruti has slipped over 2% to Rs 833, and NTPC has declined over 1% to Rs 833.
Showing posts with label news. Show all posts
Showing posts with label news. Show all posts
Friday, April 17, 2009
Tuesday, March 3, 2009
F&O Outlook: Nifty may slide down to 2,500
Futures & Options (F&O) traders have hinted that the market is in the bear grip. They built up of fresh short positions in the Nifty March futures and bought 2,500 and 2,600 put options heavily.
Key index heavyweights such as Reliance Industries (RIL), State Bank of India (SBI), ICICI Bank, Tata Steel, Reliance Infrastructure, DLF and NTPC also closed at the day’s low with each of the futures adding open interest (OI), indicating fresh short build-up.
The Nifty March futures added an open interest of 3.32 million shares during the intraday play and carried forward 1.50 million shares at the close of the day’s trade, indicating fresh short build-up and unwinding of long positions. The F&O traders added an OI of 1.18 million shares in 2,700 call options and unwound short positions at 2,700 put options, indicating that the Nifty has built up resistance at 2,700.
The 2,600 put options added an OI of 1.48 million shares and 2,500 put options added 1.83 million shares. These puts together account for 40 per cent of the total OI in put options, indicating that the F&O traders expect the Nifty to trade below 2,500 going forward.
The downtrend is likely to accelerate further and we may see the benchmark indices below the October 27 lows in the near future. The BSE Sensex may see 300 points correction from the current level of 8,600, while the Nifty could go down to 2,500 from today’s close of 2,675.
According to the technical analyst of Ambit Capital, an upside is expected at any point of time if the Nifty manages to close above 2,700.
Technical studies by JM Financials indicate that the worst of the bear market is yet to come. In the next few weeks, the market may see the benchmark indices not only testing the October 2008 lows, but also breaking them to fall further.
While the Sensex may touch a low of 7,000, the Nifty may hit 2,050, as per the JM Financials studies.
Key index heavyweights such as Reliance Industries (RIL), State Bank of India (SBI), ICICI Bank, Tata Steel, Reliance Infrastructure, DLF and NTPC also closed at the day’s low with each of the futures adding open interest (OI), indicating fresh short build-up.
The Nifty March futures added an open interest of 3.32 million shares during the intraday play and carried forward 1.50 million shares at the close of the day’s trade, indicating fresh short build-up and unwinding of long positions. The F&O traders added an OI of 1.18 million shares in 2,700 call options and unwound short positions at 2,700 put options, indicating that the Nifty has built up resistance at 2,700.
The 2,600 put options added an OI of 1.48 million shares and 2,500 put options added 1.83 million shares. These puts together account for 40 per cent of the total OI in put options, indicating that the F&O traders expect the Nifty to trade below 2,500 going forward.
The downtrend is likely to accelerate further and we may see the benchmark indices below the October 27 lows in the near future. The BSE Sensex may see 300 points correction from the current level of 8,600, while the Nifty could go down to 2,500 from today’s close of 2,675.
According to the technical analyst of Ambit Capital, an upside is expected at any point of time if the Nifty manages to close above 2,700.
Technical studies by JM Financials indicate that the worst of the bear market is yet to come. In the next few weeks, the market may see the benchmark indices not only testing the October 2008 lows, but also breaking them to fall further.
While the Sensex may touch a low of 7,000, the Nifty may hit 2,050, as per the JM Financials studies.
Sensex slips below Nov closing lows of 8451
Source : Moneycontrol.com
The benchmark indices are trading lower. Sensex below November closing lows of 8451. The market breadth is weak since morning due to downtrend in broader indices. Banking, capital goods, telecom, FMCG, technology and select power stocks, and ONGC and Reliance Industries are under pressure.
However, cement stocks and stocks like NTPC, Reliance Industries, SAIL, DLF and HCL Tech are witnessing buying interest.
The Sensex was trading at 8,444, down 162 points and the Nifty was at 2,631, down 43 points, at 3:02 hours IST. BSE Midcap and Small cap indices fell 1% each.
The F&O turnover stood at Rs 26,400 crore and Rs 34,000 crore in total. Nifty March futures was trading with 27 points discount and has added about 27 lakh shares in open interest, OI. On the options side, PCR was hovering around 1.41 level.
Technical Analyst Mitesh Thacker said unless the Nifty breaks 2,650 on a closing basis, it should remain in a range. “2,650 is a strong support. If that holds, we are in a range of 2,650–2,790. Otherwise, the market could see a retest of October lows,” Thacker said.
Market breadth is weak; about 1075 shares have advanced while 1785 shares declined. Nearly 187 shares are unchanged.
Among midcap stocks, Rolta slipped 16%. Kirloskar Oil, India Infoline, Hind Oil Exploration and Ipca Labs tanked 6-8%. However, Monnet Ispat, Asian Star, UTV Software, Redington and Aurobindo Pharma gained 5-10.5%.
In the small cap space, Prime Focus, Gayatri Project, Solar Explosive, HBL Power and IOL Chemicals fell 6-7.5%. However, Kalindee Rail, Hercules Hoists, Swaraj Mazda, Timken and Minda Ind jumped 10-13%.
The recently listed Edserv Softsystems locked at 20% lower circuit, after seeing 130% gain on Monday.
However, European markets have bounced back, after sharp cut seen on Monday. FTSE went up 33 points, to 3,659. CAC was down 26 points, to 2,607 and DAX fell 24 points, to 3,734.
The benchmark indices are trading lower. Sensex below November closing lows of 8451. The market breadth is weak since morning due to downtrend in broader indices. Banking, capital goods, telecom, FMCG, technology and select power stocks, and ONGC and Reliance Industries are under pressure.
However, cement stocks and stocks like NTPC, Reliance Industries, SAIL, DLF and HCL Tech are witnessing buying interest.
The Sensex was trading at 8,444, down 162 points and the Nifty was at 2,631, down 43 points, at 3:02 hours IST. BSE Midcap and Small cap indices fell 1% each.
The F&O turnover stood at Rs 26,400 crore and Rs 34,000 crore in total. Nifty March futures was trading with 27 points discount and has added about 27 lakh shares in open interest, OI. On the options side, PCR was hovering around 1.41 level.
Technical Analyst Mitesh Thacker said unless the Nifty breaks 2,650 on a closing basis, it should remain in a range. “2,650 is a strong support. If that holds, we are in a range of 2,650–2,790. Otherwise, the market could see a retest of October lows,” Thacker said.
Market breadth is weak; about 1075 shares have advanced while 1785 shares declined. Nearly 187 shares are unchanged.
Among midcap stocks, Rolta slipped 16%. Kirloskar Oil, India Infoline, Hind Oil Exploration and Ipca Labs tanked 6-8%. However, Monnet Ispat, Asian Star, UTV Software, Redington and Aurobindo Pharma gained 5-10.5%.
In the small cap space, Prime Focus, Gayatri Project, Solar Explosive, HBL Power and IOL Chemicals fell 6-7.5%. However, Kalindee Rail, Hercules Hoists, Swaraj Mazda, Timken and Minda Ind jumped 10-13%.
The recently listed Edserv Softsystems locked at 20% lower circuit, after seeing 130% gain on Monday.
However, European markets have bounced back, after sharp cut seen on Monday. FTSE went up 33 points, to 3,659. CAC was down 26 points, to 2,607 and DAX fell 24 points, to 3,734.
Sensex pares losses, banks recover
The key benchmark indices recovered in afternoon deals even as trading remained volatile. Banking stocks cut losses as bond prices rose.
Index heavyweight Reliance Industries was firm. Auto and cement stocks gained on decent- to-strong growth in sales/dispatches in the month just gone by. Realty stocks edged higher.
The market opened weak but soon jumped into the green before plunging into the red shortly tracking weak world markets. A strong rebound took place again in morning trade on higher US index futures. Sensex moved to green from red. It, however, soon slipped into the red shortly as heavy selling by foreign funds in the past few days weighed on the investor sentiment. The market cut losses again in early afternoon trade.
There has been heavy selling by foreign funds this year. FII outflow in February 2009 totaled Rs 2707 crore. FII outflow in calendar year 2009 totaled Rs 6940.90 crore (till 27 February 2009).
Expectations of a rate cut by the Reserve Bank of India (RBI) remain with the latest foreign trade data providing further proof that the Indian economy is slowing down. Exports fell 16% in January 2009, falling for the fourth month in a row, data released by the government during trading hours on Monday, 2 March 2009, showed.
Asian markets moved between positive and negative zone, cutting intraday losses as US index futures rose. Key benchmark indices in Japan, Singapore, China and Hong Kong were down by between 0.79% to 2.15%. Key benchmark indices in Taiwan and South Korea were up by between 0.21% to 0.66%.
Trading in US index futures showed the Dow could rise 62 points at the opening bell on Tuesday, 3 March 2009.
US markets ended at 12-year low on Monday, as another bailout of insurance giant AIG stirred fears about the stability of the financial system. It was the first time the Dow has closed below 7,000 since May 1997.
Closer home, the outcome of the forthcoming parliamentary elections will be a key drive of the domestic bourses going ahead. The market may recover if a coalition led either by Congress or BJP comes to power. But the recovery will be subject to BJP or Congress led coalition coming to power without a support from the Left front which is against key economic reforms. The market will then look for whether the new government which comes to power undertakes second generation reforms that could bring India back on a strong growth path witnessed in five years between 2003 and 2008.
It is highly unlikely that either Congress or BJP comes to power on its own i.e. without the support of other smaller/regional parties. The chief Election Commission on Monday announced a month long schedule of the parliamentary elections. The elections will he held between mid-April 2009 to mid-May 2009.
The BSE 30-share Sensex was down 20.71 points, or 0.25%, to 8,586.06.
The market breadth, indicating the overall health of the market was weak on BSE with 880 shares advancing as compared with 1,266 that declined. A total of 91 shares remained unchanged.
From the 30 share Sensex pack, 17 stocks rose while rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 1.29% to Rs 1,241, off the day's low of Rs 1,211.35, on bargain hunting. The stock had lost 3% in the previous trading session after the company set the swap ratio for merger of Reliance Petroluem which was slightly in favour of Reliance Petroleum.
Reliance Industries said on Monday 2 February 2009 its board approved the absorption of its unit Reliance Petroleum (RPL) and set a share swap ratio giving it direct control of the world's largest refinery complex. Reliance Industries said it would issue one share for every 16 held in RPL, which runs a refinery. Reliance Petroleum rose 1.06%.
PSU OMCs rose on sharp fall in crude oil prices. Hindustan Petroleum Corporation, Indian Oil Corporation and Bharat Petroleum Corporation rose by between 1.61% to 2.73%. The fall in crude oil prices will reduce the under-recoveries for the PSU OMCs on sale of fuel at controlled prices. PSU OMCs are currently making profit on sale of petrol and diesel. But they continue to make losses on the sale of kerosene and liquefied petroleum gas.
Capital goods stocks fell on worries a slowing economy will crimp orders. Crompton Greaves, Praj Industries, Bharat Heavy Electricals, Thermax fell by between 0.71% to 0.9%. But India's largest engineering and construction firm by sales Larsen & Toubro bucked the trend, gaining 0.15%.
Some healthcare stocks edged higher on defensive buying. Ranbaxy Laboratories, Dr Reddy's Laboratories, Cipla, Piramal HealthCare rose by between 0.01% to 0.78%.
Auto Stocks rose on improved sales in February 2009. India's largest motorcycle maker by sales Hero Honda Motors rose 1.56%. Hero Honda's sales rose 24% to 3,29,055 units in February 2009 over February 2008. But India's largest car maker by sales Maruti Suzuki India fell 0.38% to Rs 673 off the day's high of Rs 688.50. Maruti during trading hours on Monday reported 24.1% rise in sales to 79190 units in February 2009 over February 2008.
TVS Motor Company rose 5.54% after its two wheeler sales rose 13% to 1,07,301 units in February 2009 over February 2008.
India's largest tractor maker by sales Mahindra & Mahindra rose 0.69%. M&M recorded 10.8% growth in total volumes to 29,017 units in February 2009 over February 2008
India's largest commercial vehicle maker by sales Tata Motors rose 1% after the company reported improved sales. Tata Motors' total domestic sales for the month of February 2009 at 42,493 units, were the highest in the last 4 months. Domestic commercial vehicle sales at 23,454 units were the highest since September 2008 and domestic passenger vehicle sale at 19,039 units were was the highest since May 2008. The total domestic sales, however, declined 15% in February 2009 over February 2008.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF, Indiabulls Real Estate and Unitech rose by between 0.01% to 0.67%. Most of the realty deals including sale of commercial property and housing sales are driven by finance.
India's largest private sector bank by net profit ICICI Bank rose 0.71% to Rs 307 off the day's low of Rs 294.50. Its American Depository Receipts (ADR) slipped 11.72% on Monday, 2 February 2009. Recently, Life Insurance Corporation of India hiked its stake in ICICI Bank by 2.04% to 9.38%. India's second largest private sector bank by operating income HDFC Bank fell 1.44% as its ADR fell 7.1% overnight.
India's largest bank in terms of assets and branch network State Bank of India rose 0.41% to Rs 1000 off the day's low of Rs 985 after the bank reduced deposit rates by 40 to 50 basis points across maturities. The new rates would be effective from 9 March 2009.
PSU bank stocks, Union Bank of India, Bank of Baroda, Bank of India fell by between 0.07% to 1.57%.
Despite a steep cut in policy rates by Reserve Bank of India (RBI) since October 2008, there has not been a commensurate reduction in lending rates by banks as fears of rising bad loans have made them cautious in increasing advances/lending. One reason why banks have not fully passed on the central bank rate cuts to customers is because higher bond yields are pushing up their funding costs. Bond yields and bond prices are inversely related.
After a recent steep rise, the yields have started easing since late last week buoyed by hopes the central bank will purchase more bonds at the buyback auction. Recovery in bond prices could boost the valuations of banks' bond portfolio. The central bank is scheduled to buy back Rs 6000-crore of federal debt, with an option to buy an additional Rs 3000 crore on Thursday, 5 March 2009, ahead of a Rs 12000 crore government bond auction on Friday, 6 March 2009.
Index heavyweight Reliance Industries was firm. Auto and cement stocks gained on decent- to-strong growth in sales/dispatches in the month just gone by. Realty stocks edged higher.
The market opened weak but soon jumped into the green before plunging into the red shortly tracking weak world markets. A strong rebound took place again in morning trade on higher US index futures. Sensex moved to green from red. It, however, soon slipped into the red shortly as heavy selling by foreign funds in the past few days weighed on the investor sentiment. The market cut losses again in early afternoon trade.
There has been heavy selling by foreign funds this year. FII outflow in February 2009 totaled Rs 2707 crore. FII outflow in calendar year 2009 totaled Rs 6940.90 crore (till 27 February 2009).
Expectations of a rate cut by the Reserve Bank of India (RBI) remain with the latest foreign trade data providing further proof that the Indian economy is slowing down. Exports fell 16% in January 2009, falling for the fourth month in a row, data released by the government during trading hours on Monday, 2 March 2009, showed.
Asian markets moved between positive and negative zone, cutting intraday losses as US index futures rose. Key benchmark indices in Japan, Singapore, China and Hong Kong were down by between 0.79% to 2.15%. Key benchmark indices in Taiwan and South Korea were up by between 0.21% to 0.66%.
Trading in US index futures showed the Dow could rise 62 points at the opening bell on Tuesday, 3 March 2009.
US markets ended at 12-year low on Monday, as another bailout of insurance giant AIG stirred fears about the stability of the financial system. It was the first time the Dow has closed below 7,000 since May 1997.
Closer home, the outcome of the forthcoming parliamentary elections will be a key drive of the domestic bourses going ahead. The market may recover if a coalition led either by Congress or BJP comes to power. But the recovery will be subject to BJP or Congress led coalition coming to power without a support from the Left front which is against key economic reforms. The market will then look for whether the new government which comes to power undertakes second generation reforms that could bring India back on a strong growth path witnessed in five years between 2003 and 2008.
It is highly unlikely that either Congress or BJP comes to power on its own i.e. without the support of other smaller/regional parties. The chief Election Commission on Monday announced a month long schedule of the parliamentary elections. The elections will he held between mid-April 2009 to mid-May 2009.
The BSE 30-share Sensex was down 20.71 points, or 0.25%, to 8,586.06.
The market breadth, indicating the overall health of the market was weak on BSE with 880 shares advancing as compared with 1,266 that declined. A total of 91 shares remained unchanged.
From the 30 share Sensex pack, 17 stocks rose while rest fell.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 1.29% to Rs 1,241, off the day's low of Rs 1,211.35, on bargain hunting. The stock had lost 3% in the previous trading session after the company set the swap ratio for merger of Reliance Petroluem which was slightly in favour of Reliance Petroleum.
Reliance Industries said on Monday 2 February 2009 its board approved the absorption of its unit Reliance Petroleum (RPL) and set a share swap ratio giving it direct control of the world's largest refinery complex. Reliance Industries said it would issue one share for every 16 held in RPL, which runs a refinery. Reliance Petroleum rose 1.06%.
PSU OMCs rose on sharp fall in crude oil prices. Hindustan Petroleum Corporation, Indian Oil Corporation and Bharat Petroleum Corporation rose by between 1.61% to 2.73%. The fall in crude oil prices will reduce the under-recoveries for the PSU OMCs on sale of fuel at controlled prices. PSU OMCs are currently making profit on sale of petrol and diesel. But they continue to make losses on the sale of kerosene and liquefied petroleum gas.
Capital goods stocks fell on worries a slowing economy will crimp orders. Crompton Greaves, Praj Industries, Bharat Heavy Electricals, Thermax fell by between 0.71% to 0.9%. But India's largest engineering and construction firm by sales Larsen & Toubro bucked the trend, gaining 0.15%.
Some healthcare stocks edged higher on defensive buying. Ranbaxy Laboratories, Dr Reddy's Laboratories, Cipla, Piramal HealthCare rose by between 0.01% to 0.78%.
Auto Stocks rose on improved sales in February 2009. India's largest motorcycle maker by sales Hero Honda Motors rose 1.56%. Hero Honda's sales rose 24% to 3,29,055 units in February 2009 over February 2008. But India's largest car maker by sales Maruti Suzuki India fell 0.38% to Rs 673 off the day's high of Rs 688.50. Maruti during trading hours on Monday reported 24.1% rise in sales to 79190 units in February 2009 over February 2008.
TVS Motor Company rose 5.54% after its two wheeler sales rose 13% to 1,07,301 units in February 2009 over February 2008.
India's largest tractor maker by sales Mahindra & Mahindra rose 0.69%. M&M recorded 10.8% growth in total volumes to 29,017 units in February 2009 over February 2008
India's largest commercial vehicle maker by sales Tata Motors rose 1% after the company reported improved sales. Tata Motors' total domestic sales for the month of February 2009 at 42,493 units, were the highest in the last 4 months. Domestic commercial vehicle sales at 23,454 units were the highest since September 2008 and domestic passenger vehicle sale at 19,039 units were was the highest since May 2008. The total domestic sales, however, declined 15% in February 2009 over February 2008.
Rate sensitive real estate shares rose on hopes lower rates will spur housing demand. DLF, Indiabulls Real Estate and Unitech rose by between 0.01% to 0.67%. Most of the realty deals including sale of commercial property and housing sales are driven by finance.
India's largest private sector bank by net profit ICICI Bank rose 0.71% to Rs 307 off the day's low of Rs 294.50. Its American Depository Receipts (ADR) slipped 11.72% on Monday, 2 February 2009. Recently, Life Insurance Corporation of India hiked its stake in ICICI Bank by 2.04% to 9.38%. India's second largest private sector bank by operating income HDFC Bank fell 1.44% as its ADR fell 7.1% overnight.
India's largest bank in terms of assets and branch network State Bank of India rose 0.41% to Rs 1000 off the day's low of Rs 985 after the bank reduced deposit rates by 40 to 50 basis points across maturities. The new rates would be effective from 9 March 2009.
PSU bank stocks, Union Bank of India, Bank of Baroda, Bank of India fell by between 0.07% to 1.57%.
Despite a steep cut in policy rates by Reserve Bank of India (RBI) since October 2008, there has not been a commensurate reduction in lending rates by banks as fears of rising bad loans have made them cautious in increasing advances/lending. One reason why banks have not fully passed on the central bank rate cuts to customers is because higher bond yields are pushing up their funding costs. Bond yields and bond prices are inversely related.
After a recent steep rise, the yields have started easing since late last week buoyed by hopes the central bank will purchase more bonds at the buyback auction. Recovery in bond prices could boost the valuations of banks' bond portfolio. The central bank is scheduled to buy back Rs 6000-crore of federal debt, with an option to buy an additional Rs 3000 crore on Thursday, 5 March 2009, ahead of a Rs 12000 crore government bond auction on Friday, 6 March 2009.
Hold Tata Steel, target of Rs 143: Emkay Global
Source : moneycontrol.com
Emkay Global Financial Services has upgraded its rating on Tata Steel from reduce to hold with target price of Rs 143 in its March 3, 2009 research report.
"Tata Steel reported 3QFY09 cosolidated results, which were significantly ahead of our estimates. Net sales stood at Rs 331.9 billion (yoy up 4.1%, qoq down 4.9%) driven by better than expected average realization for Corus which stood at USD 1,250/t as against our estimates of USD 820/t. The higher realizations lead to better operating performance with EBITDA at Rs 28.6 billion (yoy down 27.5%, qoq down 65.4%) and adjusted PAT at Rs 9.5 billion (yoy down 26.3%, qoq down 81.2%). Tata Steel reported adjusted FDEPS of Rs 10.9. We are upgrading the stock from REDUCE to HOLD with target price of Rs 143 (0.5x FY10E book value)," says Emkay Global Financial Services' research report.
Emkay Global Financial Services has upgraded its rating on Tata Steel from reduce to hold with target price of Rs 143 in its March 3, 2009 research report.
"Tata Steel reported 3QFY09 cosolidated results, which were significantly ahead of our estimates. Net sales stood at Rs 331.9 billion (yoy up 4.1%, qoq down 4.9%) driven by better than expected average realization for Corus which stood at USD 1,250/t as against our estimates of USD 820/t. The higher realizations lead to better operating performance with EBITDA at Rs 28.6 billion (yoy down 27.5%, qoq down 65.4%) and adjusted PAT at Rs 9.5 billion (yoy down 26.3%, qoq down 81.2%). Tata Steel reported adjusted FDEPS of Rs 10.9. We are upgrading the stock from REDUCE to HOLD with target price of Rs 143 (0.5x FY10E book value)," says Emkay Global Financial Services' research report.
Thursday, February 19, 2009
Sensex range-bound; realty, metals gain
SOURCE:ECONOMICTIMES
Indian equities were moving in a narrow range after a positive opening on Thursday. Lack of cues from domestic markets and nervousness in
the international markets kept the traders away from taking any fresh positions. Realty and metal stocks looked strong while FMCG and pharma stocks declined.
India's inflation for the week ended February 7 is expected to have fallen to 4 per cent against 4.39 per cent previous week. Any further fall from the expectations may provide some room for traders to spike up the market.
"Nifty will continue to see 2740~2750 and then 2705 levels as intraday support. On higher side any move above 2800 may continue to see profit booking with 2820 as most important hurdle as of now. Market players may await inflation data before taking any directive action. Low inflation may trigger a positive rally however as mentioned earlier volumes will continue to remain a major cause of concern. Strict stop losses are absolute must for all short term positions," said Reliance Money report.
At 10:30 am, Bombay Stock Exchange's Sensex was at 9058.92, up 43.74 points or 0.49 per cent. The index touched an intra-day high of 9111.95 and low of 9034.90.
National Stock Exchange's Nifty was at 2787.90, 11.75 points or 0.42 per cent higher. The broader index touched a high of 2802.15 and low of 2773.75 in trade so far.
"Our market has corrected significantly after the interim budget as expectations were unfulfilled. The situation in the US remains grim and the recession will continue to deepen. Today, we expect the market to open flat but some profit booking in the later part of the day is not ruled out," said Religare report.
Amongst the sectoral indices, BSE Realty Index was up 1.66 per cent, BSE Metal Index moved up 1.17 per cent, BSE Capital Goods Index gained 1.03 per cent. BSE FMCG Index was down 0.24 per cent and BSE Healthcare Index slipped 0.14 per cent.
Mahindra & Mahindra (3.32%), HDFC (1.96%), Grasim Industries (1.84%), Maruti Suzuki (1.73%) and DLF (1.73%) were the top Sensex gainers.
Hindustan Unilever (-1.28%), Bharti Airtel (-0.48%), Infosys Technologies (-0.14%), Sun Pharmaceuticals (-0.12%) and ONGC (-0.03%) were the only losers.
Market breadth was positive on the BSE with 918 advances and 570 declines.
Meanwhile, equities across the Asia-Pacific too painted a mixed picture as investors remained wary due to deepening recession worries in the United States and Japan. The Nikkei was up 0.84 per cent, Hang Seng slipped 0.41 per cent, Straits Times fell 0.91 per cent and Kospi was up 0.41 per cent.
Indian equities were moving in a narrow range after a positive opening on Thursday. Lack of cues from domestic markets and nervousness in
the international markets kept the traders away from taking any fresh positions. Realty and metal stocks looked strong while FMCG and pharma stocks declined.
India's inflation for the week ended February 7 is expected to have fallen to 4 per cent against 4.39 per cent previous week. Any further fall from the expectations may provide some room for traders to spike up the market.
"Nifty will continue to see 2740~2750 and then 2705 levels as intraday support. On higher side any move above 2800 may continue to see profit booking with 2820 as most important hurdle as of now. Market players may await inflation data before taking any directive action. Low inflation may trigger a positive rally however as mentioned earlier volumes will continue to remain a major cause of concern. Strict stop losses are absolute must for all short term positions," said Reliance Money report.
At 10:30 am, Bombay Stock Exchange's Sensex was at 9058.92, up 43.74 points or 0.49 per cent. The index touched an intra-day high of 9111.95 and low of 9034.90.
National Stock Exchange's Nifty was at 2787.90, 11.75 points or 0.42 per cent higher. The broader index touched a high of 2802.15 and low of 2773.75 in trade so far.
"Our market has corrected significantly after the interim budget as expectations were unfulfilled. The situation in the US remains grim and the recession will continue to deepen. Today, we expect the market to open flat but some profit booking in the later part of the day is not ruled out," said Religare report.
Amongst the sectoral indices, BSE Realty Index was up 1.66 per cent, BSE Metal Index moved up 1.17 per cent, BSE Capital Goods Index gained 1.03 per cent. BSE FMCG Index was down 0.24 per cent and BSE Healthcare Index slipped 0.14 per cent.
Mahindra & Mahindra (3.32%), HDFC (1.96%), Grasim Industries (1.84%), Maruti Suzuki (1.73%) and DLF (1.73%) were the top Sensex gainers.
Hindustan Unilever (-1.28%), Bharti Airtel (-0.48%), Infosys Technologies (-0.14%), Sun Pharmaceuticals (-0.12%) and ONGC (-0.03%) were the only losers.
Market breadth was positive on the BSE with 918 advances and 570 declines.
Meanwhile, equities across the Asia-Pacific too painted a mixed picture as investors remained wary due to deepening recession worries in the United States and Japan. The Nikkei was up 0.84 per cent, Hang Seng slipped 0.41 per cent, Straits Times fell 0.91 per cent and Kospi was up 0.41 per cent.
Noon: Markets shed gains, show volatile trend
SOURCE:LIVEMINT
At 12:34pm, 30-share BSE Sensex was at 8,998.01 down by 17.17 points and the NSE Nifty was at 2,772.02 down by 4.10 points
Markets gave up its early gains and slipped to negative in the afternoon session on Wednesday despite the better than expected inflation data. The benchmark indices are now indicative of another volatile session after yesterday.
Inflation for the week ended 7 February fell to 3.92% against 4.39% of the previous week. Auto, power, realty and metal stocks are still trading higher but significant selling pressure is witnessed among the FMCG, oil and gas, capital goods and banking stocks.
Weak Asian markets also added to the sentiments today. The BSE Sensex opened the 0.2% up as banking stocks snapped from their three-day downfall on hopes of rate cuts. At 12:34pm, 30-share BSE Sensex was at 8,998.01 down by 17.17 points and the NSE Nifty was at 2,772.02 down by 4.10 points.
Wipro, Grasim Industries, Housing Development and Finance Corp., Mahindra and Mahindra, Maruti Suzuki and NTPC Ltd are leading the rally.
But there are some declining like Hindustan Unilever Ltd, Larsen and Toubro, ICICI Bank Ltd, Hindalco and Bhel.
Meanwhile, Asian markets are trading mixed with Nikkei up by 0.72% and but the Hang Seng is down by 0.67%.
At 12:34pm, 30-share BSE Sensex was at 8,998.01 down by 17.17 points and the NSE Nifty was at 2,772.02 down by 4.10 points
Markets gave up its early gains and slipped to negative in the afternoon session on Wednesday despite the better than expected inflation data. The benchmark indices are now indicative of another volatile session after yesterday.
Inflation for the week ended 7 February fell to 3.92% against 4.39% of the previous week. Auto, power, realty and metal stocks are still trading higher but significant selling pressure is witnessed among the FMCG, oil and gas, capital goods and banking stocks.
Weak Asian markets also added to the sentiments today. The BSE Sensex opened the 0.2% up as banking stocks snapped from their three-day downfall on hopes of rate cuts. At 12:34pm, 30-share BSE Sensex was at 8,998.01 down by 17.17 points and the NSE Nifty was at 2,772.02 down by 4.10 points.
Wipro, Grasim Industries, Housing Development and Finance Corp., Mahindra and Mahindra, Maruti Suzuki and NTPC Ltd are leading the rally.
But there are some declining like Hindustan Unilever Ltd, Larsen and Toubro, ICICI Bank Ltd, Hindalco and Bhel.
Meanwhile, Asian markets are trading mixed with Nikkei up by 0.72% and but the Hang Seng is down by 0.67%.
Indian market bounces back on rate cut hopes
SOURCE:RTT NEWS
Thursday, the Indian market is trading firm following a recovery in some Asian markets this morning. Realty and banking stocks are receiving good support after the Reserve Bank of India governor Subbarao indicated on Wednesday that there is more room left for interest rate cuts. Select metal and capital goods stocks are also showing notable gains. Traders await inflation data scheduled to be released this afternoon.
The BSE Sensex opened higher at 9,035 and rose further on widespread buying. However, the index has pared some of its gains since then and is now trading at 9,046, up 41 points or 0.46%. Meanwhile, the S&P CNX Nifty is trading at 2,788, up 0.44%.
On the BSE, the market breadth is positive, with 903 gainers compared to 486 stocks that are declining. The small-cap, the mid-cap and the broad-based BSE 500 indexes are outperforming the benchmarks.
Realty stocks are leading the bounce back amid reports that the commerce and industry ministry could relax end-use restrictions on surplus foreign direct investment funds
Unitech is rising 1.20% even as reports said that the company has dropped plans to develop two of its six information technology parks, as these have not attracted any leasing commitment from potential clients.
Among banking stocks, ICICI Bank is moving up 0.92% and HDFC Bank is rising 1.32% despite a sharp fall in their ADRs overnight.
Dena Bank and Oriental Bank of Commerce are adding more than 2% each on reports that the government would infuse capital into these public sector banks for maintaining their capital adequacy ratio at about 12%.
Reliance Industries is moving up 0.90% after oil minister Murli Deora said that the company will start selling natural gas from its eastern offshore KG-D6 fields by April to ease fuel deficit at power and fertilizer units. On the hand, Nagarjuna Fertilizers, which is expected to receive the first consignment of natural gas, is also gaining 0.31%.
Suzlon Energy is surging up 4.56% after REpower Systems AG, a unit of Suzlon, bagged a new order worth nearly 2 billion euro from RWE Innogy GmbH for supplying 250 offshore wind turbines.
MMTC is advancing 1.19% despite reports that the company has scrapped a tender to import 35,000 tonnes of raw sugar.
by RTT Staff Writer
For comments and feedback: contact editorial@rttnews.com
Thursday, the Indian market is trading firm following a recovery in some Asian markets this morning. Realty and banking stocks are receiving good support after the Reserve Bank of India governor Subbarao indicated on Wednesday that there is more room left for interest rate cuts. Select metal and capital goods stocks are also showing notable gains. Traders await inflation data scheduled to be released this afternoon.
The BSE Sensex opened higher at 9,035 and rose further on widespread buying. However, the index has pared some of its gains since then and is now trading at 9,046, up 41 points or 0.46%. Meanwhile, the S&P CNX Nifty is trading at 2,788, up 0.44%.
On the BSE, the market breadth is positive, with 903 gainers compared to 486 stocks that are declining. The small-cap, the mid-cap and the broad-based BSE 500 indexes are outperforming the benchmarks.
Realty stocks are leading the bounce back amid reports that the commerce and industry ministry could relax end-use restrictions on surplus foreign direct investment funds
Unitech is rising 1.20% even as reports said that the company has dropped plans to develop two of its six information technology parks, as these have not attracted any leasing commitment from potential clients.
Among banking stocks, ICICI Bank is moving up 0.92% and HDFC Bank is rising 1.32% despite a sharp fall in their ADRs overnight.
Dena Bank and Oriental Bank of Commerce are adding more than 2% each on reports that the government would infuse capital into these public sector banks for maintaining their capital adequacy ratio at about 12%.
Reliance Industries is moving up 0.90% after oil minister Murli Deora said that the company will start selling natural gas from its eastern offshore KG-D6 fields by April to ease fuel deficit at power and fertilizer units. On the hand, Nagarjuna Fertilizers, which is expected to receive the first consignment of natural gas, is also gaining 0.31%.
Suzlon Energy is surging up 4.56% after REpower Systems AG, a unit of Suzlon, bagged a new order worth nearly 2 billion euro from RWE Innogy GmbH for supplying 250 offshore wind turbines.
MMTC is advancing 1.19% despite reports that the company has scrapped a tender to import 35,000 tonnes of raw sugar.
by RTT Staff Writer
For comments and feedback: contact editorial@rttnews.com
Pranab: No plans to bail out Satyam
SOURCE:NDTV PROFIT
Acting finance minister Pranab Mukherjee said in Parliament today that the government has no plans to bail out Satyam.
Satyam, Mukherjee said, had adequate un-incumbered assets which can help the company run professionally and the Government's intervention was to ensure just that. "Government interest (in Satyam) is that it is an important company in this particular sector. It has large number of international clients... it has good number of professionals," he said.
He said it was wrong to blame an institution like ICAI for the wrongdoing of some individual auditors.
Capital market regulator Securities Exchange Board of India (SEBI) last month ordered investigation into the dealings in the shares of Satyam Computer Services Ltd to ascertain if provisions of SEBI Act and rules and regulations made there had been violated, he said.
SEBI, he said, has also asked market participants to undertake peer review of the working papers (relating to financial statements of listed entities) of auditors in respect of companies constituting the NSE-Nifty 50, the BSE Sensex and some listed companies outside the Sensex and Nifty chosen on a random basis.
The peer review will be undertaken by a SEBI prepared panel of auditors, he said.
Acting finance minister Pranab Mukherjee said in Parliament today that the government has no plans to bail out Satyam.
Satyam, Mukherjee said, had adequate un-incumbered assets which can help the company run professionally and the Government's intervention was to ensure just that. "Government interest (in Satyam) is that it is an important company in this particular sector. It has large number of international clients... it has good number of professionals," he said.
He said it was wrong to blame an institution like ICAI for the wrongdoing of some individual auditors.
Capital market regulator Securities Exchange Board of India (SEBI) last month ordered investigation into the dealings in the shares of Satyam Computer Services Ltd to ascertain if provisions of SEBI Act and rules and regulations made there had been violated, he said.
SEBI, he said, has also asked market participants to undertake peer review of the working papers (relating to financial statements of listed entities) of auditors in respect of companies constituting the NSE-Nifty 50, the BSE Sensex and some listed companies outside the Sensex and Nifty chosen on a random basis.
The peer review will be undertaken by a SEBI prepared panel of auditors, he said.
Nifty seen in 2800-2950 range, put writing at 2800-2700
SOURCE:ECONOMICTIMES
Despite weak cues from the global markets, Indian stocks managed to trim most of their early losses in a choppy trade Wednesday. National
Stock Exchange's 50-share Nifty closed the day 0.20 per cent higher at 2776.15 while BSE Sensex slipped 0.22 per cent to close at 9015.18.
Intraday, Nifty touched a high of 2806.50 and low of 2736.65, a band of around 70 points. The Sensex moved in a narrow band of 191 points. It touched a high of 9113.92 and low of 8922.31.
Nifty February futures provisionally settled at a discount of 15 points to the spot. The contract price gained 0.28 per cent and open interest added 24.56 lakh shares. However, the cost of carry and higher sell quantity suggests modest build up of shorts in the contract.
Call buying was observed at 2800 strike while unwinding of longs was observed in 2900 level and moderate call writing was seen in 3000 and 3100 strikes indicating Nifty to stay below 2900-2950 levels in near term. On the other hand, huge put writing was seen from 2800 to 2600 levels indicating a strong support zone.
"The markets are likely to trade volatile in a narrow range. Given the options build up, I expect Nifty to remain in 2800-2920 zone before moving either side. At this point of time I will advise players to play safe forming straddle at 2800 levels. Oil marketing companies can be a good bet from short term point of time," said Narendra Joshi, analyst at Apex Wealth Management.
In stocks futures, Reliance Industries February jumped 1.83 per cent on short covering. State Bank of India contract fell 2.53 per cent while open interest added 3 lakh shares indicating short build up. ICICI Bank near month dropped 4.23 per cent and shed 7.73 lakh shares in open interest.
DLF futures soared 9.86 per cent as traders covered their short positions in the contract. Reliance Infra February futures skid 3.33 per cent and Reliance Petroleum February contract slipped 1 per cent and shed 4.47 lakh shares.
Despite weak cues from the global markets, Indian stocks managed to trim most of their early losses in a choppy trade Wednesday. National
Stock Exchange's 50-share Nifty closed the day 0.20 per cent higher at 2776.15 while BSE Sensex slipped 0.22 per cent to close at 9015.18.
Intraday, Nifty touched a high of 2806.50 and low of 2736.65, a band of around 70 points. The Sensex moved in a narrow band of 191 points. It touched a high of 9113.92 and low of 8922.31.
Nifty February futures provisionally settled at a discount of 15 points to the spot. The contract price gained 0.28 per cent and open interest added 24.56 lakh shares. However, the cost of carry and higher sell quantity suggests modest build up of shorts in the contract.
Call buying was observed at 2800 strike while unwinding of longs was observed in 2900 level and moderate call writing was seen in 3000 and 3100 strikes indicating Nifty to stay below 2900-2950 levels in near term. On the other hand, huge put writing was seen from 2800 to 2600 levels indicating a strong support zone.
"The markets are likely to trade volatile in a narrow range. Given the options build up, I expect Nifty to remain in 2800-2920 zone before moving either side. At this point of time I will advise players to play safe forming straddle at 2800 levels. Oil marketing companies can be a good bet from short term point of time," said Narendra Joshi, analyst at Apex Wealth Management.
In stocks futures, Reliance Industries February jumped 1.83 per cent on short covering. State Bank of India contract fell 2.53 per cent while open interest added 3 lakh shares indicating short build up. ICICI Bank near month dropped 4.23 per cent and shed 7.73 lakh shares in open interest.
DLF futures soared 9.86 per cent as traders covered their short positions in the contract. Reliance Infra February futures skid 3.33 per cent and Reliance Petroleum February contract slipped 1 per cent and shed 4.47 lakh shares.
F&O Outlook: Nifty rally hinges on a close above 2, 800
SOURCE:BUSINESS-STANDARD
The Nifty bounced back from the day’s low on short-covering but faced resistance above 2,800 and closed with a marginal gain of five points.
Nifty futures witnessed selling pressure at higher levels and the Bloomberg data suggested that 22 per cent volume, mostly from the sell side, changed hands in the last 60 minutes of trade. This indicated that the market sentiment remained weak and that the index might face strong resistance above 2,800. According to Ashish Shroff, technical analyst of Ambit Capital, the Nifty could see a bounce-back to 2,820-2,840 levels as technical indicators were still trading in the oversold zone. However, the index needed to close above 2,800 for any further rally. Shroff expects the Nifty to remain at 2,720 levels for the short term and for the medium term it may go down if it closes below 2,700.
The Nifty February futures shed an open interest (OI) of 2.58 million shares, while the Nifty March futures added an OI of 2.53 million shares. Both the series are trading at a discount, indicating that traders are unwinding long positions of the current month series and building short positions in the March series. Therefore, the Nifty may see high volatility in the March series.
F&O traders today continued to unwind short positions in most of the put options, mainly in 2,800 and 2,900 puts. Put writing was seen in 2,500-2,750 puts, indicating that the index has support at around 2,750 and may not retrace to the October low of 2,500. The 2,800 call witnessed change of hands as it added an OI of 9,650 shares despite a trading volume of 11.50 million shares. This indicated that 2,800 remained to be a high resistance point for bull operators.
Reliance Industries (RIL) snapped a three-day losing streak and closed in the green on short-covering. The stock recovered from the intraday low of Rs 1,253 and closed at Rs 1,292 in its February futures. Traders were seen buying Rs 1,290 strike calls and writing Rs 1,350 strike calls, indicating limited upside.
The Nifty bounced back from the day’s low on short-covering but faced resistance above 2,800 and closed with a marginal gain of five points.
Nifty futures witnessed selling pressure at higher levels and the Bloomberg data suggested that 22 per cent volume, mostly from the sell side, changed hands in the last 60 minutes of trade. This indicated that the market sentiment remained weak and that the index might face strong resistance above 2,800. According to Ashish Shroff, technical analyst of Ambit Capital, the Nifty could see a bounce-back to 2,820-2,840 levels as technical indicators were still trading in the oversold zone. However, the index needed to close above 2,800 for any further rally. Shroff expects the Nifty to remain at 2,720 levels for the short term and for the medium term it may go down if it closes below 2,700.
The Nifty February futures shed an open interest (OI) of 2.58 million shares, while the Nifty March futures added an OI of 2.53 million shares. Both the series are trading at a discount, indicating that traders are unwinding long positions of the current month series and building short positions in the March series. Therefore, the Nifty may see high volatility in the March series.
F&O traders today continued to unwind short positions in most of the put options, mainly in 2,800 and 2,900 puts. Put writing was seen in 2,500-2,750 puts, indicating that the index has support at around 2,750 and may not retrace to the October low of 2,500. The 2,800 call witnessed change of hands as it added an OI of 9,650 shares despite a trading volume of 11.50 million shares. This indicated that 2,800 remained to be a high resistance point for bull operators.
Reliance Industries (RIL) snapped a three-day losing streak and closed in the green on short-covering. The stock recovered from the intraday low of Rs 1,253 and closed at Rs 1,292 in its February futures. Traders were seen buying Rs 1,290 strike calls and writing Rs 1,350 strike calls, indicating limited upside.
Nifty likely to consolidate between 2740-2840: FinQuest Sec
SOURCE:MONEYCONTROL
According to FinQuest Securities' report, on intraday hourly charts, momentum indicator is oversold and thus Nifty seems likely to consolidate between 2740-2840.
FinQuest Securities' report:
Nifty took perfect support at trend line drawn through prior lows of 2503 and 2661 to close flat for the day.
On intraday hourly charts, momentum indicator is oversold and thus Nifty seems likely to consolidate between 2740-2840.
21 day EMA at 2844 will also serve as strong resistance on any up move.
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.
According to FinQuest Securities' report, on intraday hourly charts, momentum indicator is oversold and thus Nifty seems likely to consolidate between 2740-2840.
FinQuest Securities' report:
Nifty took perfect support at trend line drawn through prior lows of 2503 and 2661 to close flat for the day.
On intraday hourly charts, momentum indicator is oversold and thus Nifty seems likely to consolidate between 2740-2840.
21 day EMA at 2844 will also serve as strong resistance on any up move.
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.
Monday, February 9, 2009
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.
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.
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.
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.
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.
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.
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 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)
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