European shares on Friday failed to hold early gains, closing lower on concerns over the need for fund raising by banks.
After early gains of as much as 1% in the morning, the pan-European Dow Jones Stoxx 600 index lost 0.4% to 246.29, with banks losing ground for a second straight session.
As with Thursday's move, capital concerns dragged on the financial sector.
French bank Credit Agricole dropped 7.1%. It was downgraded to neutral from buy by Bank of America Merrill Lynch, which said tougher bank capital rules, proposed on Thursday, would create challenges.
The new capital rules, issued by the Basel Committee on Banking Supervision, have a target implementation date of the end of 2012, but the committee said it is mindful of the current economic challenges and would take that into account when finalizing the rules and dates of implementation.
In addition to the proposed capital rules, the European Central Bank put the potential further write-downs on assets for the euro-area banking sector through the end of 2010 at €187 billion ($269 billion) in its financial stability review out Friday.
The Bank of England also expressed caution whether banner bank earnings in 2009 could be repeated in the coming year.
By region, the U.K. FTSE 100 index dropped 0.4% to 5,196.81 and the German DAX index slipped 0.2% to 5,831.21.
The French CAC-40 index declined 1% to 3,794.44 as the losses from Credit Agricole weighed.
On the economic front, the Ifo Institute's closely watched indicator of German business sentiment rose to 94.7 in December, slightly above economist expectations for a reading of 94.5. Last month, the reading was 93.9.
"The Ifo survey supports expectations of continued solid growth in the near term," noted economists at Societe Generale.
Gainers on Friday included Irish low-cost airline Ryanair, which climbed 5.8% after it terminated negotiations with Boeing for an order of up to 200 new aircraft and promised to return cash to shareholders. Boeing lost 2% in U.S. afternoon trading.
Iliad shares rose 3.7% after the firm was awarded the fourth 3G mobile license in France.
Shares of Cimemtos de Portugal, known as Cimpor, soared 16% to 6.34 euros in Lisbon following a takeover bid. Brazil's Co. Siderurgica Nacional said that it has bid 5.75 euros a share, or 3.86 billion euros in total, to buy the Portuguese cement firm.
Teixeira Duarte and Lafarge between them hold 40% of Cimpor and Teixeira shares jumped 15.5% in Lisbon while Lafarge fell 1.6% in Paris.
Independent News & Media shares surged 20.5%, also on takeover news. It is in exclusive - but non-binding - talks with London Evening Standard newspaper owner Alexander Lebedev to sell The Independent and Independent on Sunday newspapers.
Shares in Spyker Cars dropped 21.9% after General Motors said talks over the sale of the Saab brand to Spyker had collapsed. GM is going to wind down Saab's operations.
Friday, December 18, 2009
NYSE Liffe's Bclear has record year with over 250 million contracts registered in 2009
Amsterdam, Brussels, Lisbon, London, Paris, Wednesday 16 December – Total volume in equity derivatives futures and options registered through NYSE Liffe’s Bclear OTC wholesale service has just passed 250 million, setting a new record for the fourth consecutive year.
Bclear provides a simple and cost-effective way to register and process wholesale derivatives trades through NYSE Liffe to clearing at NYSE Liffe Clearing. This reduces the counterparty, credit, legal and operational risks often associated with OTC trades. Volumes processed through Bclear in the year-to-date are 40% higher than in the same period of 2008.
Having initially launched in October 2005 as an equity derivatives platform covering 300 underlyings from 16 different countries, Bclear today is a cross-asset class platform covering over 1,000 underlyings from 22 countries. In February NYSE Liffe further extended its offering with the launch of thirteen MSCI index futures and in March launched a range of soft commodity products.
Bclear’s success is due, in part, to the broad adoption by both the buy-side community and member firms benefiting from the broad range of underlyings and flexibility available on the service.
Ade Cordell, Director of OTC Services at NYSE Liffe said: “Our Bclear service continues to offer value and flexibility to our customers in these testing times. Our index derivative products and single stock futures franchise propelled the volume growth on Bclear this year. 2010 will bring a further broadening of underlyings and products offered on the service.”
Garry Jones, Group Executive Vice President and Head of Global Derivatives at NYSE Euronext said: “We are proud to reach this new milestone and my colleagues and I thank our customers and wish them well for the coming year.”
Bclear provides a simple and cost-effective way to register and process wholesale derivatives trades through NYSE Liffe to clearing at NYSE Liffe Clearing. This reduces the counterparty, credit, legal and operational risks often associated with OTC trades. Volumes processed through Bclear in the year-to-date are 40% higher than in the same period of 2008.
Having initially launched in October 2005 as an equity derivatives platform covering 300 underlyings from 16 different countries, Bclear today is a cross-asset class platform covering over 1,000 underlyings from 22 countries. In February NYSE Liffe further extended its offering with the launch of thirteen MSCI index futures and in March launched a range of soft commodity products.
Bclear’s success is due, in part, to the broad adoption by both the buy-side community and member firms benefiting from the broad range of underlyings and flexibility available on the service.
Ade Cordell, Director of OTC Services at NYSE Liffe said: “Our Bclear service continues to offer value and flexibility to our customers in these testing times. Our index derivative products and single stock futures franchise propelled the volume growth on Bclear this year. 2010 will bring a further broadening of underlyings and products offered on the service.”
Garry Jones, Group Executive Vice President and Head of Global Derivatives at NYSE Euronext said: “We are proud to reach this new milestone and my colleagues and I thank our customers and wish them well for the coming year.”
Monday, November 23, 2009
US STOCKS SNAPSHOT-Wall St rises on data, resource shares
NEW YORK, Nov 23 - U.S. stocks extended gains on Monday, with Nasdaq increasing 2 percent, after data showed sales of previously owned homes rose to the highest in more than 2-1/2 years, while a rally in commodities boosted resource shares.
EU Approves EUR100 Million Aid Package For German Farmers
BRUSSELS -(Dow Jones)- The European Comission Monday temporarily approved a plan by Germany to grant up to EUR15,000 for each farmer to help the sector weather the economic crisis.
The aid, amounting to EUR100 million, will be available through the end of 2010.
Falling farm prices have deprived German farmers of EUR6 billion in income, the commission said, citing data provided by the German government.
The aid, amounting to EUR100 million, will be available through the end of 2010.
Falling farm prices have deprived German farmers of EUR6 billion in income, the commission said, citing data provided by the German government.
Wednesday, October 28, 2009
European, US stocks fall after housing data drop
LONDON: European and US stocks slid Wednesday after data showed the number of new home sales in the world's largest economy unexpectedly dropped last month, stoking fears about the pace of a potential economic recovery.
Britain's FTSE 100 closed down 2.3 percent at 5,080.42, Germany's DAX shed 2.5 percent to 5,496.27 and France's CAC 40 lost 2.1 percent at 3,663.78.
In midday trading in New York, the Dow Jones industrial average index slipped 0.6 percent to 9,827 and the Standard & Poor's 500 index was 1.3 percent lower at 1,049.84.
Major Asian markets fell by about 1.5 percent or more following weakness in the US on Tuesday after a disappointing report on consumer confidence in the world's largest economy.
A US government report Wednesday showed sales of new homes dropped in September as the effects of a soon-to-expire tax credit for first-time owners started to wane. Sales fell 3.6 percent to a seasonally adjusted annual rate of 402,000 from a downwardly revised 417,000 in August. Economists had expected a pace of 440,000. It was the first decline since March.
Meanwhile, another US government report that showed durable goods orders rose in line with expectations in September had little effect on trading. Orders to factories for items that are expected to last at least three years, like autos, computers and aircraft, rose 1 percent, matching economists' expectations.
European markets were weighed down by earnings reports from companies including German business software maker SAP AG, which cut its sales forecast. SAP said third-quarter net income rose 12 percent, but a negative outlook sent its shares down 7.7 percent. The company said it expects software and related service revenues to decline by about 6 percent to 8 percent for the full year. Earlier this year, the company had suggested a drop of between 4 percent and 6 percent.
Banking shares declined, including Banco Santander, whose third-quarter profits remained flat, with increased loan losses weighing on the bottom line despite improving business in Britain. Shares in Spain's largest bank fell 3.4 percent.
ArcelorMittal SA, the world's largest steel maker, posted a $903 million profit in the third quarter, its first after three consecutive quarterly losses. The profit was still 76 percent below year-earlier levels, and its shares sank around 5 percent in Amsterdam.
``For the moment financial markets have clearly stagnated, with a realization hitting home that all the warnings of a return to growth being a long and painfully slow process are not just hot air,'' said David Jones, chief market strategist at IG Index.
Asia's losses followed a choppy session on Wall Street Tuesday, where an unexpected drop in consumer confidence gave investors few reasons to venture further into a market that's run massively higher in the last eight months.
The news was the latest evidence that US shoppers, their budgets tightened by the economic crisis and rising unemployment, aren't likely to return to their spendthrift ways anytime soon. It was all the more unsettling in Asia, coming ahead of the vital Christmas holiday season, when major export companies rely heavily on Americans to increase their spending on electronics, toys and other goods.
``The figure sparked worries that US consumer spending in the crucial Christmas season will be stagnant. Investors are now bracing for very weak retail sales in the upcoming season,'' said Masatoshi Sato, market analyst at Mizuho Investors Securities Co. Ltd. in Tokyo.
In Japan, the benchmark Nikkei 225 index lost 1.4 percent to 10,075.055. Hong Kong's main index retreated 1.8 percent to 21,761.58.
South Korea's Kospi dived 2.4 percent, leading the declines in Asia. Australia's market fell 1.4 percent, Taiwan's market lost 1.6 percent and India's Sensex benchmark fell 0.6 percent.
China's Shanghai index recouped its losses to close up 0.3 percent,
The mixed signals about the scale of recovery in the US economy weighed on oil prices, with benchmark crude for December delivery lower by $2.07 at $77.48 a barrel in European trade. The contract rose 87 cents to settle at $79.55 on Tuesday.
Britain's FTSE 100 closed down 2.3 percent at 5,080.42, Germany's DAX shed 2.5 percent to 5,496.27 and France's CAC 40 lost 2.1 percent at 3,663.78.
In midday trading in New York, the Dow Jones industrial average index slipped 0.6 percent to 9,827 and the Standard & Poor's 500 index was 1.3 percent lower at 1,049.84.
Major Asian markets fell by about 1.5 percent or more following weakness in the US on Tuesday after a disappointing report on consumer confidence in the world's largest economy.
A US government report Wednesday showed sales of new homes dropped in September as the effects of a soon-to-expire tax credit for first-time owners started to wane. Sales fell 3.6 percent to a seasonally adjusted annual rate of 402,000 from a downwardly revised 417,000 in August. Economists had expected a pace of 440,000. It was the first decline since March.
Meanwhile, another US government report that showed durable goods orders rose in line with expectations in September had little effect on trading. Orders to factories for items that are expected to last at least three years, like autos, computers and aircraft, rose 1 percent, matching economists' expectations.
European markets were weighed down by earnings reports from companies including German business software maker SAP AG, which cut its sales forecast. SAP said third-quarter net income rose 12 percent, but a negative outlook sent its shares down 7.7 percent. The company said it expects software and related service revenues to decline by about 6 percent to 8 percent for the full year. Earlier this year, the company had suggested a drop of between 4 percent and 6 percent.
Banking shares declined, including Banco Santander, whose third-quarter profits remained flat, with increased loan losses weighing on the bottom line despite improving business in Britain. Shares in Spain's largest bank fell 3.4 percent.
ArcelorMittal SA, the world's largest steel maker, posted a $903 million profit in the third quarter, its first after three consecutive quarterly losses. The profit was still 76 percent below year-earlier levels, and its shares sank around 5 percent in Amsterdam.
``For the moment financial markets have clearly stagnated, with a realization hitting home that all the warnings of a return to growth being a long and painfully slow process are not just hot air,'' said David Jones, chief market strategist at IG Index.
Asia's losses followed a choppy session on Wall Street Tuesday, where an unexpected drop in consumer confidence gave investors few reasons to venture further into a market that's run massively higher in the last eight months.
The news was the latest evidence that US shoppers, their budgets tightened by the economic crisis and rising unemployment, aren't likely to return to their spendthrift ways anytime soon. It was all the more unsettling in Asia, coming ahead of the vital Christmas holiday season, when major export companies rely heavily on Americans to increase their spending on electronics, toys and other goods.
``The figure sparked worries that US consumer spending in the crucial Christmas season will be stagnant. Investors are now bracing for very weak retail sales in the upcoming season,'' said Masatoshi Sato, market analyst at Mizuho Investors Securities Co. Ltd. in Tokyo.
In Japan, the benchmark Nikkei 225 index lost 1.4 percent to 10,075.055. Hong Kong's main index retreated 1.8 percent to 21,761.58.
South Korea's Kospi dived 2.4 percent, leading the declines in Asia. Australia's market fell 1.4 percent, Taiwan's market lost 1.6 percent and India's Sensex benchmark fell 0.6 percent.
China's Shanghai index recouped its losses to close up 0.3 percent,
The mixed signals about the scale of recovery in the US economy weighed on oil prices, with benchmark crude for December delivery lower by $2.07 at $77.48 a barrel in European trade. The contract rose 87 cents to settle at $79.55 on Tuesday.
Sensex ends in red; Maruti, Tata Steel down
MUMBAI: Market ended volatile session on a lower note as traders squared off positions ahead of October F&O series expiry.
Bombay Stock Exchange’s Sensex ended at 16282.79, down 70.61 points or 0.43 per cent. The index touched a low of 16144.17 and high of 16411.14.
National Stock Exchange’s Nifty ended at 4830.50, down 16.20 points or 0.33 per cent. The broader index hit a low of 4784.10 and high of 4867.
BSE Midcap Index was up 0.25 per cent and BSE Smallcap Index moved 0.33 per cent lower.
Amongst the sectoral indices, BSE Bankex declined 1.54 per cent, BSE Auto Index fell 1 per cent and BSE Power Index slipped 0.85 per cent.
BSE Realty Index moved 0.93 per cent higher and BSE Oil&gas Index was up 0.71 per cent.
Biggest Sensex gainers were Bharti Airtel (3.39%), Wipro (3.29%), Reliance Industries (2.44%), Tata Motors (2.42%) and Larsen &Toubro (1.99%).
Losers were Maruti Suzuki (-4.38%), Tata Steel (-3.63%), HDFC (-3.44%), ICICI Bank (-3.4%) and HDFC Bank (-2.8%).
Market breadth on BSE remained negative with 1603 declines outnumbering 1076 advances.
Bombay Stock Exchange’s Sensex ended at 16282.79, down 70.61 points or 0.43 per cent. The index touched a low of 16144.17 and high of 16411.14.
National Stock Exchange’s Nifty ended at 4830.50, down 16.20 points or 0.33 per cent. The broader index hit a low of 4784.10 and high of 4867.
BSE Midcap Index was up 0.25 per cent and BSE Smallcap Index moved 0.33 per cent lower.
Amongst the sectoral indices, BSE Bankex declined 1.54 per cent, BSE Auto Index fell 1 per cent and BSE Power Index slipped 0.85 per cent.
BSE Realty Index moved 0.93 per cent higher and BSE Oil&gas Index was up 0.71 per cent.
Biggest Sensex gainers were Bharti Airtel (3.39%), Wipro (3.29%), Reliance Industries (2.44%), Tata Motors (2.42%) and Larsen &Toubro (1.99%).
Losers were Maruti Suzuki (-4.38%), Tata Steel (-3.63%), HDFC (-3.44%), ICICI Bank (-3.4%) and HDFC Bank (-2.8%).
Market breadth on BSE remained negative with 1603 declines outnumbering 1076 advances.
Nifty holds 4800 ahead of Oct F&O expiry
MUMBAI: Markets ended lower for the third straight day on Wednesday, ahead of October F&O expiry. Banks, auto and power stocks were amongst the beaten down sectors while realty stocks bounced back sharply to end in the positive terrain.
Indices opened on a weak note taking cues from other Asian markets and drifted lower. The benchmarks slipped below psychological supports but some buying in heavyweights helped the indices pull back. Lot of action was seen in the broader markets as well. They recovered sharply to close relatively on a flat note.
Bombay Stock Exchange’s Sensex ended at 16,283.49, down 69.91 points or 0.43 per cent. The index touched a low of 16,144.17 and high of 16,411.14.
National Stock Exchange’s Nifty ended at 4826.15, down 20.55 points or 0.42 per cent. The broader index hit a low of 4784.10 and high of 4867 intraday.
“The fall of Nifty from 4900 to sub-4800 levels was mainly on account of Delta hedging. Nifty is likely to close in the range of 4850-4900 tomorrow.
There are still short positions for next series and open interest has increased indicating a further correction in days to come. We are recommending traders to go short on every rise upto 5050 and expect targets of 4750 and 4350 in next two months,” said a senior derivative analyst from a local brokerage.
BSE Midcap Index, up 0.15 per cent, settled with marginal gains while BSE Smallcap Index moved 0.44 per cent lower.
Amongst the sectoral indices, BSE Bankex declined 1.5 per cent, BSE Auto Index fell 0.94 per cent and BSE Power Index slipped 0.83 per cent.
BSE Realty Index moved 0.88 per cent higher and BSE Oil&gas Index was up 0.69 per cent.
Biggest Sensex gainers were Ranbaxy Laboratories (3.77%), Jindal Steel (3.66%), Wipro (3.49%), Bharti Airtel (3.44%) and Tata Motors (2.49%).
Losers were Maruti Suzuki (-4.18%), Tata Steel (-3.63%), Suzlon Energy (-3.6%), HDFC (-3.49%), BPCL (-3.43%).
Market breadth on BSE remained negative with 1,627 declines outnumbering 1,059 advances.
European markets were in the red following sharp correction in banks and commodities. US stock futures were pointing towards a lower opening. At 5 pm IST, Dow Jones futures was down 0.51 per cent, S&P 500 moved 0.51 per cent lower and Nasdaq 100 edged 0.28 per cent lower.
Indices opened on a weak note taking cues from other Asian markets and drifted lower. The benchmarks slipped below psychological supports but some buying in heavyweights helped the indices pull back. Lot of action was seen in the broader markets as well. They recovered sharply to close relatively on a flat note.
Bombay Stock Exchange’s Sensex ended at 16,283.49, down 69.91 points or 0.43 per cent. The index touched a low of 16,144.17 and high of 16,411.14.
National Stock Exchange’s Nifty ended at 4826.15, down 20.55 points or 0.42 per cent. The broader index hit a low of 4784.10 and high of 4867 intraday.
“The fall of Nifty from 4900 to sub-4800 levels was mainly on account of Delta hedging. Nifty is likely to close in the range of 4850-4900 tomorrow.
There are still short positions for next series and open interest has increased indicating a further correction in days to come. We are recommending traders to go short on every rise upto 5050 and expect targets of 4750 and 4350 in next two months,” said a senior derivative analyst from a local brokerage.
BSE Midcap Index, up 0.15 per cent, settled with marginal gains while BSE Smallcap Index moved 0.44 per cent lower.
Amongst the sectoral indices, BSE Bankex declined 1.5 per cent, BSE Auto Index fell 0.94 per cent and BSE Power Index slipped 0.83 per cent.
BSE Realty Index moved 0.88 per cent higher and BSE Oil&gas Index was up 0.69 per cent.
Biggest Sensex gainers were Ranbaxy Laboratories (3.77%), Jindal Steel (3.66%), Wipro (3.49%), Bharti Airtel (3.44%) and Tata Motors (2.49%).
Losers were Maruti Suzuki (-4.18%), Tata Steel (-3.63%), Suzlon Energy (-3.6%), HDFC (-3.49%), BPCL (-3.43%).
Market breadth on BSE remained negative with 1,627 declines outnumbering 1,059 advances.
European markets were in the red following sharp correction in banks and commodities. US stock futures were pointing towards a lower opening. At 5 pm IST, Dow Jones futures was down 0.51 per cent, S&P 500 moved 0.51 per cent lower and Nasdaq 100 edged 0.28 per cent lower.
Sunday, October 25, 2009
Wall Street falls on weak industrials
NEW YORK: US stocks fell on Friday, with the major indexes slipping for the first week in three, as industrial companies' weak results overshadowed robust earnings from tech and retail heavy-weights
The blue-chip Dow average finished below 10,000 for the second time this week.
A stronger US dollar hit commodity prices, hurting the energy and materials sectors, while an analyst's comments on a major railroad's stock hit the transports sector.
Shares of Burlington Northern Santa Fe Corp, the second-biggest US railroad, slid over 6 percent after an RBC Capital analyst cut his price target on the stock and helped drive the Dow Jones Transportation Average down 3.5 percent. An index of S&P industrial companies lost 1.7 percent.
The US dollar rose against the pound after data showed the UK posted its sixth straight quarter of contraction in gross domestic product, the longest stretch on record, and better-than-expected U.S. housing data gave the greenback an extra boost.
The dollar's strength helped push oil and commodity prices lower, sending shares of companies in the energy and materials sectors down. The S&P materials sector fell 2.1 percent.
But shares of technology bellwether Microsoft Corp jumped 5.4 percent to $28.02 and online retailer Amazon.com Inc soared a whopping 26.8 percent to $118.49 after earlier climbing to a lifetime high of $119.65.
"In the face of a market moving down, Microsoft and Amazon are up strong. Today it is not a stock market, but a market of stocks. If companies come out with good reports, they are being rewarded," said Robert Auer, senior portfolio manager at SBAuer Funds in Indianapolis.
"For the rest of the market, it is a normal day. We're up more than 50 percent on the S&P from the March lows, and the market just has to go down sometimes."
The Dow Jones industrial average lost 109.13 points, or 1.08 percent, to 9,972.18, marking its second finish this week below the 10,000 mark. The Standard & Poor's 500 Index fell 13.31 points, or 1.22 percent, to 1,079.60. The Nasdaq Composite Index slipped 10.82 points, or 0.50 percent, to 2,154.47.
On Wednesday, the Dow industrials also finished slightly below the 10,000 mark following a late sell-off led by financial stocks. For the week, the Dow slipped 0.2 percent and the S&P 500 declined 0.7 percent, while the Nasdaq dipped 0.1 percent.
Railroads' rough day
In Friday's session, Burlington Northern's shares fell 6.5 percent, or $5.50, to $79.12 a day after the company reported a 30 percent drop in quarterly profit. The company hauls a variety of commodities such as coal, grain, lumber, construction materials, automobiles and consumer goods.
An RBC Capital analyst cut his price target on Burlington Northern's stock to $87 from $91, while keeping his "underperform" rating. Shares of Union Pacific Corp, the largest US railroad, tumbled 5.6 percent, or $3.39, to $57.73.
Oilfield services company Schlumberger Ltd dropped 5 percent to $65.20 after it warned natural gas drilling activity would remain weak until late 2010. This year, natural gas prices globally have been too low to justify much drilling of new wells, Schlumberger said.
US crude oil futures fell 69 cents, or 0.9 percent, to settle at $80.50 a barrel. The S&P energy sector index slid 2 percent.
Top decliners in the tech sector included Broadcom Corp and MEMC Electronic Materials Inc following disappointing quarterly results.
Shares of Broadcom, which makes chips for everything from cellphones to TV set-top boxes, slid 7.3 percent to $28.50 on Nasdaq. The stock of MEMC Electronic Materials, which makes silicon, the major raw material for the solar and semiconductor industries, dropped 10.1 percent to $13.87 on the New York Stock Exchange.
The semiconductor index lost 3.2 percent. Earlier in the day, September data showed sales of previously owned US homes surged to their highest level since July 2007.
Volume was moderate on the New York Stock Exchange, with 1.28 billion shares changing hands, below last year's estimated daily average of 1.49 billion. On the Nasdaq, about 2.48 billion shares traded, above last year's daily average of 2.28 billion.
Declining stocks outnumbered advancing ones on the NYSE by a ratio of about 3 to 1, while on the Nasdaq, nearly 10 stocks fell for every three that rose.
The blue-chip Dow average finished below 10,000 for the second time this week.
A stronger US dollar hit commodity prices, hurting the energy and materials sectors, while an analyst's comments on a major railroad's stock hit the transports sector.
Shares of Burlington Northern Santa Fe Corp, the second-biggest US railroad, slid over 6 percent after an RBC Capital analyst cut his price target on the stock and helped drive the Dow Jones Transportation Average down 3.5 percent. An index of S&P industrial companies lost 1.7 percent.
The US dollar rose against the pound after data showed the UK posted its sixth straight quarter of contraction in gross domestic product, the longest stretch on record, and better-than-expected U.S. housing data gave the greenback an extra boost.
The dollar's strength helped push oil and commodity prices lower, sending shares of companies in the energy and materials sectors down. The S&P materials sector fell 2.1 percent.
But shares of technology bellwether Microsoft Corp jumped 5.4 percent to $28.02 and online retailer Amazon.com Inc soared a whopping 26.8 percent to $118.49 after earlier climbing to a lifetime high of $119.65.
"In the face of a market moving down, Microsoft and Amazon are up strong. Today it is not a stock market, but a market of stocks. If companies come out with good reports, they are being rewarded," said Robert Auer, senior portfolio manager at SBAuer Funds in Indianapolis.
"For the rest of the market, it is a normal day. We're up more than 50 percent on the S&P from the March lows, and the market just has to go down sometimes."
The Dow Jones industrial average lost 109.13 points, or 1.08 percent, to 9,972.18, marking its second finish this week below the 10,000 mark. The Standard & Poor's 500 Index fell 13.31 points, or 1.22 percent, to 1,079.60. The Nasdaq Composite Index slipped 10.82 points, or 0.50 percent, to 2,154.47.
On Wednesday, the Dow industrials also finished slightly below the 10,000 mark following a late sell-off led by financial stocks. For the week, the Dow slipped 0.2 percent and the S&P 500 declined 0.7 percent, while the Nasdaq dipped 0.1 percent.
Railroads' rough day
In Friday's session, Burlington Northern's shares fell 6.5 percent, or $5.50, to $79.12 a day after the company reported a 30 percent drop in quarterly profit. The company hauls a variety of commodities such as coal, grain, lumber, construction materials, automobiles and consumer goods.
An RBC Capital analyst cut his price target on Burlington Northern's stock to $87 from $91, while keeping his "underperform" rating. Shares of Union Pacific Corp, the largest US railroad, tumbled 5.6 percent, or $3.39, to $57.73.
Oilfield services company Schlumberger Ltd dropped 5 percent to $65.20 after it warned natural gas drilling activity would remain weak until late 2010. This year, natural gas prices globally have been too low to justify much drilling of new wells, Schlumberger said.
US crude oil futures fell 69 cents, or 0.9 percent, to settle at $80.50 a barrel. The S&P energy sector index slid 2 percent.
Top decliners in the tech sector included Broadcom Corp and MEMC Electronic Materials Inc following disappointing quarterly results.
Shares of Broadcom, which makes chips for everything from cellphones to TV set-top boxes, slid 7.3 percent to $28.50 on Nasdaq. The stock of MEMC Electronic Materials, which makes silicon, the major raw material for the solar and semiconductor industries, dropped 10.1 percent to $13.87 on the New York Stock Exchange.
The semiconductor index lost 3.2 percent. Earlier in the day, September data showed sales of previously owned US homes surged to their highest level since July 2007.
Volume was moderate on the New York Stock Exchange, with 1.28 billion shares changing hands, below last year's estimated daily average of 1.49 billion. On the Nasdaq, about 2.48 billion shares traded, above last year's daily average of 2.28 billion.
Declining stocks outnumbered advancing ones on the NYSE by a ratio of about 3 to 1, while on the Nasdaq, nearly 10 stocks fell for every three that rose.
Microsoft results top expectations, shares jump
Microsoft's results are closely tied to sales of PCs, which rose in the latest quarter by about 2 per cent after two quarters of declines.
The company did not include any pre-sales of Windows 7 in its latest results, offering the hope that the current quarter will show a boost in sales from the new system.
"You are seeing some of the benefit of the improvement in PCs that we have heard about," said Brendan Barnicle at Pacific Crest Securities. "This is a trend. They've got some good momentum behind them and it's just going to get accelerated now that you have Windows 7 out in the market.
The company, which is tightening its belt in the economic slowdown, also cut its outlook for operating expenses for the full fiscal year to $26.2 billion from its previous target of $26.5 billion.
Quarterly profit fell in Microsoft's main units, producing the Windows operating system and Office suite of applications. Profit rose in its server unit and its entertainment and devices unit, which makes the Xbox console and Halo video game series.
Microsoft shares were up 7.6 per cent, or $1.99, to $28.58 in early Nasdaq trading. They have risen 92 per cent since hitting a more-than 10 year low in March.
The company did not include any pre-sales of Windows 7 in its latest results, offering the hope that the current quarter will show a boost in sales from the new system.
"You are seeing some of the benefit of the improvement in PCs that we have heard about," said Brendan Barnicle at Pacific Crest Securities. "This is a trend. They've got some good momentum behind them and it's just going to get accelerated now that you have Windows 7 out in the market.
The company, which is tightening its belt in the economic slowdown, also cut its outlook for operating expenses for the full fiscal year to $26.2 billion from its previous target of $26.5 billion.
Quarterly profit fell in Microsoft's main units, producing the Windows operating system and Office suite of applications. Profit rose in its server unit and its entertainment and devices unit, which makes the Xbox console and Halo video game series.
Microsoft shares were up 7.6 per cent, or $1.99, to $28.58 in early Nasdaq trading. They have risen 92 per cent since hitting a more-than 10 year low in March.
Amazon shares hit 10-year high after results
NEW YORK: Shares of Amazon.com hit a 10-year high on Friday, rising more than 20 percent shortly after the market open a day after the online retailer reported robust quarterly profit.
At least two brokerages upgraded the company to their top rating on Friday after the results.
Amazon was recently up 20.2 percent at $112.35 after hitting a high of $113.17.
The online retailer reported a 69 percent surge in third quarter earnings as sales surged across all product lines and its Kindle electronic book reader was a hit with customers.
The Seattle-based pioneer of web-retailing said it earned $199 million in the third quarter compared to $118 million in the year-ago quarter. Revenue rose 28 percent to $5.45 billion.
"Kindle has become the No. 1 best-selling item by both unit sales and dollars - not just in our electronics store but across all product categories on Amazon.com," Amazon founder and CEO Jeff Bezos said in the statement.
For the fourth quarter, which includes the key holiday season, Amazon expects revenue of $8 to $9 billion compared to analysts forecasts of $8.13 billion.
The company said North American sales were up 23 percent from the same quarter last year, to $2.84 billion. International sales were $2.61 billion, an increase of 23 percent from 2008.
Sales of book, movies and other media grew by 17 percent to $2.93 billion, while electronics sales jumped 44 percent to $2.36 billion.
At least two brokerages upgraded the company to their top rating on Friday after the results.
Amazon was recently up 20.2 percent at $112.35 after hitting a high of $113.17.
The online retailer reported a 69 percent surge in third quarter earnings as sales surged across all product lines and its Kindle electronic book reader was a hit with customers.
The Seattle-based pioneer of web-retailing said it earned $199 million in the third quarter compared to $118 million in the year-ago quarter. Revenue rose 28 percent to $5.45 billion.
"Kindle has become the No. 1 best-selling item by both unit sales and dollars - not just in our electronics store but across all product categories on Amazon.com," Amazon founder and CEO Jeff Bezos said in the statement.
For the fourth quarter, which includes the key holiday season, Amazon expects revenue of $8 to $9 billion compared to analysts forecasts of $8.13 billion.
The company said North American sales were up 23 percent from the same quarter last year, to $2.84 billion. International sales were $2.61 billion, an increase of 23 percent from 2008.
Sales of book, movies and other media grew by 17 percent to $2.93 billion, while electronics sales jumped 44 percent to $2.36 billion.
Infosys faces rising taxes, competition - Barron's
PHILADELPHIA: Shares of Infosys Technologies Ltd could be headed for a fall as the company approaches the expiration of some beneficial tax breaks and rising competition from its peers, according to a report by Barron's.
Infosys was an early adoptor of certain tax benefits, making it face expiration of these perks earlier than its peers, Barron's reported in its electronic edition.
Susquehanna analyst James Friedman told Barron's that the expiration of the tax benefits could push Infosys's tax rate toward or above 25 percent, up from 13 percent in fiscal 2009.
Meanwhile, competition is rising, and Infosys' profit margins could suffer if it increases wages to catch up to its peers. Also, the rise in the rupee's rise and any move by India to raise benchmark interest rates to fight inflation could hurt Infosys.
Friedman has a price target on the stock of $37. Shares of Infosys's American depositary receipts closed on Friday at $48.58.
Infosys was an early adoptor of certain tax benefits, making it face expiration of these perks earlier than its peers, Barron's reported in its electronic edition.
Susquehanna analyst James Friedman told Barron's that the expiration of the tax benefits could push Infosys's tax rate toward or above 25 percent, up from 13 percent in fiscal 2009.
Meanwhile, competition is rising, and Infosys' profit margins could suffer if it increases wages to catch up to its peers. Also, the rise in the rupee's rise and any move by India to raise benchmark interest rates to fight inflation could hurt Infosys.
Friedman has a price target on the stock of $37. Shares of Infosys's American depositary receipts closed on Friday at $48.58.
Tuesday, October 20, 2009
Sensex closes in red; Reliance, ONGC weigh
MUMBAI: Benchmarks ended lacklustre session in the negative terrain on Tuesday as traders booked profits at higher levels.
Bombay Stock Exchange’s Sensex closed at 17,221.23, down 104.78 points or 0.60 per cent. The index touched a low of 17185.04 and high of 17457.26.
National Stock Exchange’s Nifty ended at 5112.60, down 29.20 points or 0.57 per cent. The broader index hit a high of 5181.95 and low of 5102.65.
BSE Midcap Index was up 0.08 per cent and BSE Smallcap Index gained 0.18 per cent.
Amongst the sectoral indices, BSE Oil&gas Index was down 1.83 per cent, BSE Capital Goods Index slipped 1.28 per cent and BSE Healthcare Index declined 0.85 per cent.
BSE Realty Index was up 0.69 per cent and BSE Metal Index moved 0.65 per cent higher.
Biggest Sensex losers were Mahindra & Mahindra (-3%), Reliance Communications (-2.94%), ONGC (-2.56%), Reliance Industries (-2.14%) and Grasim Industries (-1.82%).
Hindalco Industries (4.41%), Jaiprakash Associates (2.62%), Tata Consultancy Services (2.36%), Wipro (2.02%), Tata Steel (1.92%) and Maruti Suzuki (1.54%) were the gainers.
Market breadth on BSE turned negative with 1480 declines against 1306 advances.
Bombay Stock Exchange’s Sensex closed at 17,221.23, down 104.78 points or 0.60 per cent. The index touched a low of 17185.04 and high of 17457.26.
National Stock Exchange’s Nifty ended at 5112.60, down 29.20 points or 0.57 per cent. The broader index hit a high of 5181.95 and low of 5102.65.
BSE Midcap Index was up 0.08 per cent and BSE Smallcap Index gained 0.18 per cent.
Amongst the sectoral indices, BSE Oil&gas Index was down 1.83 per cent, BSE Capital Goods Index slipped 1.28 per cent and BSE Healthcare Index declined 0.85 per cent.
BSE Realty Index was up 0.69 per cent and BSE Metal Index moved 0.65 per cent higher.
Biggest Sensex losers were Mahindra & Mahindra (-3%), Reliance Communications (-2.94%), ONGC (-2.56%), Reliance Industries (-2.14%) and Grasim Industries (-1.82%).
Hindalco Industries (4.41%), Jaiprakash Associates (2.62%), Tata Consultancy Services (2.36%), Wipro (2.02%), Tata Steel (1.92%) and Maruti Suzuki (1.54%) were the gainers.
Market breadth on BSE turned negative with 1480 declines against 1306 advances.
Unitech rises 2pc after govt's nod to Telenor for stake hike
MUMBAI: Shares of Unitech, the country's second largest realty firm, rose by 2.35 per cent on the Bombay Stock Exchange in late morning trade on Tuesday, a day after the government approved Norwegian firm Telenor's proposal for hiking stake in joint venture Unitech Wireless to 74 per cent.
Unitech Wireless is a telecom joint venture between the realty firm and Telenor.
The scrip was quoted at Rs 106.70 on BSE at 1100 hrs, up 2.35 per cent over its previous close.
The shares rose by 2.49 per cent to Rs 106.90 on the National Stock Exchange. The scrip had surged by 8.24 per cent to touch a high of Rs 112.90 in the opening trade.
Over 1.29 crore shares of the company were traded on the two exchanges.
The Cabinet Committee on Economic Affairs yesterday approved Telenor's proposal for raising stake in Unitech Wireless to 74 per cent.
The company plans to start services in December under Uninor brand in eight circles.
Unitech Wireless is a telecom joint venture between the realty firm and Telenor.
The scrip was quoted at Rs 106.70 on BSE at 1100 hrs, up 2.35 per cent over its previous close.
The shares rose by 2.49 per cent to Rs 106.90 on the National Stock Exchange. The scrip had surged by 8.24 per cent to touch a high of Rs 112.90 in the opening trade.
Over 1.29 crore shares of the company were traded on the two exchanges.
The Cabinet Committee on Economic Affairs yesterday approved Telenor's proposal for raising stake in Unitech Wireless to 74 per cent.
The company plans to start services in December under Uninor brand in eight circles.
NTPC rises 4 pc after govt's nod for stake sale
MUMBAI: Shares of state-run power producer NTPC on Tuesday climbed over four per cent on the Bombay Stock Exchange in morning trade, a day after the government approved a 5 per cent stake sale in the company.
The stock surged by 4.25 per cent to touch a high of Rs 223 on BSE. On the National Stock Exchange the shares of the company rose by 3.79 per cent.
Over 10 lakh shares were traded on the bourses. Later, the scrip was quoted at Rs 219.70, up 2.71 per cent on BSE. The stock was trading at Rs 219.15, up 2.60 per cent, on NSE.
The government, yesterday, approved divestment in two state-run power utilities -- NTPC and Satluj Jal Vidyut Nigam -- as part of a conscious policy to unlock value and make the public part owners of the national assets.
The Cabinet Committee on Economic Affairs (CCEA) gave its approval to five per cent stake sale in NTPC, after which the government's holding in the power producer would come down to 84.5 per cent from the current 89.5 per cent.
The stock surged by 4.25 per cent to touch a high of Rs 223 on BSE. On the National Stock Exchange the shares of the company rose by 3.79 per cent.
Over 10 lakh shares were traded on the bourses. Later, the scrip was quoted at Rs 219.70, up 2.71 per cent on BSE. The stock was trading at Rs 219.15, up 2.60 per cent, on NSE.
The government, yesterday, approved divestment in two state-run power utilities -- NTPC and Satluj Jal Vidyut Nigam -- as part of a conscious policy to unlock value and make the public part owners of the national assets.
The Cabinet Committee on Economic Affairs (CCEA) gave its approval to five per cent stake sale in NTPC, after which the government's holding in the power producer would come down to 84.5 per cent from the current 89.5 per cent.
IOC shareholders approve 1:1 bonus issue
MUMBAI: State-run refiner Indian Oil Corporation on Tuesday said its shareholders have approved a bonus issue of one share for every share held.
In a filing to the Bombay Stock Exchange IOC said the shareholders, by way of postal ballot, has approved the issuance of bonus shares in the ratio of 1:1.
The board of the company, last month, approved the bonus issue of equity share of Rs 10 each, for every share of Rs 10 each held.
Post bonus issue the paid-up equity capital of the company would stand revised to Rs 2,427.95 crore, from the present level of Rs 1,213.98 crore.
Shares of IOC were trading at Rs 636.55, down 0.46 per cent in the afternoon trade on BSE.
In a filing to the Bombay Stock Exchange IOC said the shareholders, by way of postal ballot, has approved the issuance of bonus shares in the ratio of 1:1.
The board of the company, last month, approved the bonus issue of equity share of Rs 10 each, for every share of Rs 10 each held.
Post bonus issue the paid-up equity capital of the company would stand revised to Rs 2,427.95 crore, from the present level of Rs 1,213.98 crore.
Shares of IOC were trading at Rs 636.55, down 0.46 per cent in the afternoon trade on BSE.
Saturday, October 17, 2009
Sensex ends flat on profit booking
MUMBAI – Indian equities ended Mahurat trading, first day of trade of Samvat 2066 (first day of Hindu calendar), on a flat note. Traders booked profits after indices hit new 52-week highs. However, the second rung stocks outperformed the benchmarks.
Markets opened higher on bullish sentiments following growth of Indian economy which was reflected in second quarter earnings.
After one hour of trade, Bombay Stock Exchange’s Sensex closed at 17326.01, up 3.19 points or 0.02 per cent. The index hit a 52-wek high of 17493.17 and low of 17260.66.
National Stock Exchange’s Nifty ended at 5141.80, down 0.35 points or 0.01 per cent. It touched a 12-month high of 5176.80 and low of 5140.
BSE Midcap Index was up 0.65 per cent and BSE Smallcap Index gained 1.36 per cent.
Amongst the sectoral indices, BSE Metal Index jumped 0.65 per cent, BSE IT Index rose 0.39 per cent and BSE Auto Index moved 0.33 per cent higher.
BSE Bankex was down 0.30 per cent and BSE FMCG Index slipped 0.09 per cent.
Sterlite Industries (2.89%), Reliance Communications (1.86 %), Bharti Airtel (1.74%), TCS (1.61%) and ACC (1.36%) were the top Sensex gainers.
Losers included ICICI Bank (-1.05%), HDFC Bank (-0.93%), Hindalco Industries (-0.70%), ITC (-0.65%) and BHEL (-0.65%).
Tata Consultancy Services bettered expectations to post a 29% jump in net profits for the second quarter. The company reported net profit of Rs 1,642 crore and revenues rose 7% to Rs 7,435 crore.
Market breadth was positive on the BSE with 1930 advances and 582 declines.
Meanwhile, the US markets ended in the red. The Dow Jones Industrial Average closed 0.7 per cent lower, The S&P 500 Index slipped 0.8 per cent and the Nasdaq Composite Index declined 0.8 per cent.
Note: Indian stock market will remain shut on Monday on account of Diwali festival.
Markets opened higher on bullish sentiments following growth of Indian economy which was reflected in second quarter earnings.
After one hour of trade, Bombay Stock Exchange’s Sensex closed at 17326.01, up 3.19 points or 0.02 per cent. The index hit a 52-wek high of 17493.17 and low of 17260.66.
National Stock Exchange’s Nifty ended at 5141.80, down 0.35 points or 0.01 per cent. It touched a 12-month high of 5176.80 and low of 5140.
BSE Midcap Index was up 0.65 per cent and BSE Smallcap Index gained 1.36 per cent.
Amongst the sectoral indices, BSE Metal Index jumped 0.65 per cent, BSE IT Index rose 0.39 per cent and BSE Auto Index moved 0.33 per cent higher.
BSE Bankex was down 0.30 per cent and BSE FMCG Index slipped 0.09 per cent.
Sterlite Industries (2.89%), Reliance Communications (1.86 %), Bharti Airtel (1.74%), TCS (1.61%) and ACC (1.36%) were the top Sensex gainers.
Losers included ICICI Bank (-1.05%), HDFC Bank (-0.93%), Hindalco Industries (-0.70%), ITC (-0.65%) and BHEL (-0.65%).
Tata Consultancy Services bettered expectations to post a 29% jump in net profits for the second quarter. The company reported net profit of Rs 1,642 crore and revenues rose 7% to Rs 7,435 crore.
Market breadth was positive on the BSE with 1930 advances and 582 declines.
Meanwhile, the US markets ended in the red. The Dow Jones Industrial Average closed 0.7 per cent lower, The S&P 500 Index slipped 0.8 per cent and the Nasdaq Composite Index declined 0.8 per cent.
Note: Indian stock market will remain shut on Monday on account of Diwali festival.
TCS seen on the wrong side of currency trades
Tata Consultancy Services has given investors enough reasons to cheer up the Muhurat trading on Saturday, with a better than expected quarterly earnings. But its currency hedging strategies, rising doubtful receivables and tepid net head count growth are a concern.
Net profit for the quarter jumped 29% over a year ago to Rs 1,642 crore and revenues rose 7% to Rs 7,435 crore.
Although the management does not provide guidance, it seems to be a bit cautious about the revival of demand going by the net hiring. At the gross level, TCS added 5,530 employees while net additions were 320. It is not clear whether the difference of over 5,000 heads between gross and net adds is due to voluntary exit of employees or demand-based restructuring of workforce.
TCS, which has a new CEO in N Chandrasekaran, seems to be on the wrong side of currency trades despite a stable currency last quarter. When Infosys reported a currency gain of Rs 14 crore for the quarter, there seems to be little justification for the forex loss to rise to Rs 113 crore from Rs 84 crore a quarter ago.
The third concern is about the rising proportion of doubtful receivables. In the September quarter, its doubtful debtors relative to total sundry debtors have gone up to 4.5% from 2.5% six months ago. For Infosys, this remained below 2%.
However, TCS has improved its receivables collection to 76 days on an average, from 79 days two quarters ago.
Net profit for the quarter jumped 29% over a year ago to Rs 1,642 crore and revenues rose 7% to Rs 7,435 crore.
Although the management does not provide guidance, it seems to be a bit cautious about the revival of demand going by the net hiring. At the gross level, TCS added 5,530 employees while net additions were 320. It is not clear whether the difference of over 5,000 heads between gross and net adds is due to voluntary exit of employees or demand-based restructuring of workforce.
TCS, which has a new CEO in N Chandrasekaran, seems to be on the wrong side of currency trades despite a stable currency last quarter. When Infosys reported a currency gain of Rs 14 crore for the quarter, there seems to be little justification for the forex loss to rise to Rs 113 crore from Rs 84 crore a quarter ago.
The third concern is about the rising proportion of doubtful receivables. In the September quarter, its doubtful debtors relative to total sundry debtors have gone up to 4.5% from 2.5% six months ago. For Infosys, this remained below 2%.
However, TCS has improved its receivables collection to 76 days on an average, from 79 days two quarters ago.
Ultratech improves operating profit margins
Ultratech Cement has improved its operating profit margins which rose 890 basis points YoY to 31.3% in the second quarter of FY10, largely due to lower power & fuel costs, at a time when its realisations were under pressure on a YoY basis. Power & fuel costs declined 27.7% YoY to an estimated Rs 883.4 per tonne during the quarter.
The company’s despatches grew 10.8% YoY to 3.58 million tonne in the second quarter of FY10. But the impact of bunching of additional capacity coming on stream in the south and demand lagging behind was also visible on realisations.
As a result, UltraTech’s realisations declined an estimated 0.8% YoY to Rs 4,351.4 per tonne in the second quarter of FY10. Apart from the south, UltraTech also has a presence in western and eastern parts, where prices are still holding up, but that did not prevent a fall in realisations in the second quarter.
However, a tight check on operating costs helped UltraTech’s profit after tax (PAT) rise 52.8% YoY to Rs 250.9 crore in the second quarter of FY10. The company has a capex plan of Rs 2,000 crore over the next two years, including setting up a captive power facility at its plant at Awarpur, Maharashtra, coupled with an additional grinding unit at its Gujarat facilities. UltraTech’s net cash flow from operating activities was Rs 1,457.6 crore in FY09.
UltraTech declined 2.4% to Rs 824.75 on Friday, and it trades with a P/E of 9.1 times on a trailing basis. Earlier, group company Grasim had decided to spin off its cement business to a wholly-owned subsidiary which may ultimately be merged with UltraTech, to create India’s largest pure play cement company.
The company’s despatches grew 10.8% YoY to 3.58 million tonne in the second quarter of FY10. But the impact of bunching of additional capacity coming on stream in the south and demand lagging behind was also visible on realisations.
As a result, UltraTech’s realisations declined an estimated 0.8% YoY to Rs 4,351.4 per tonne in the second quarter of FY10. Apart from the south, UltraTech also has a presence in western and eastern parts, where prices are still holding up, but that did not prevent a fall in realisations in the second quarter.
However, a tight check on operating costs helped UltraTech’s profit after tax (PAT) rise 52.8% YoY to Rs 250.9 crore in the second quarter of FY10. The company has a capex plan of Rs 2,000 crore over the next two years, including setting up a captive power facility at its plant at Awarpur, Maharashtra, coupled with an additional grinding unit at its Gujarat facilities. UltraTech’s net cash flow from operating activities was Rs 1,457.6 crore in FY09.
UltraTech declined 2.4% to Rs 824.75 on Friday, and it trades with a P/E of 9.1 times on a trailing basis. Earlier, group company Grasim had decided to spin off its cement business to a wholly-owned subsidiary which may ultimately be merged with UltraTech, to create India’s largest pure play cement company.
Wednesday, October 14, 2009
Rupee hits 1-yr high as dollar slides, stocks rise
MUMBAI: Rupee climbed to one-year highs on Wednesday buoyed by the dollar's broad-based fall and a stronger start to the stock market that could trigger more capital inflows.
By 10:35 a.m. (0505 GMT), the partially convertible rupee was at 46.15/16 per dollar, off a high of 46.0950, its strongest since Sept. 26, 2008 and 0.8 percent above its Monday's close of 46.48/49. Financial markets were shut on Tuesday for a local holiday.
"Weaker dollar overseas is fuelling selling, it is a sell uptick story," said Ashtosh Raina, head of foreign exchange trading at HDFC Bank. The dollar slid to its weakest level in 14 months against a basket of currencies on Wednesday, under pressure from expectations of continued low U.S. interest rates and investor bets on commodity currencies. Indian shares rose 1 per cent early, tracking mostly firmer Asian markets, but gains are expected to be limited by concern the market may have moved ahead of valuations.
Foreign fund investments into local shares are key factor determining the direction for the rupee. Foreigners have bought a net $12.8 billion worth of shares this year, almost reversing net outflows of more than $13 billion in 2008. At the day's high, the rupee has gained 13.3 percent from its record low of 52.2 hit in early March and is up 5.7 percent in 2009. One-month offshore non-deliverable forward contracts were quoting at 46.03/13, stronger than the onshore spot rate, suggesting a bullish outlook for the rupee.
"The rupee is mostly likely to breach the 46/dollar mark, if the Reserve Bank of India doesn't intervene," Raina said. The central bank has previously said it buys or sells dollars in the spot market to prevent volatility in the local currency. Dealers said they would watch out for any RBI action to limit the sharp rise in the rupee. India's central bank bought a net $181 million in intervention in August, when the rupee had risen to a two-month high, its bulletin showed on Monday.
"Given the state of USD sentiment, it may just be a matter of time before targets such as 42 appear on the horizon," Sean Callow, forex strategist at Westpac, said in a Wednesday note. "The modest amounts reported for intervention from May to August indicate strongly that the range-bound price action on the rupee at a time of sizeable gains for other Asian currencies was not due to large scale central bank USD purchases. We would be surprised if the data for October aren't more eye-catching."
By 10:35 a.m. (0505 GMT), the partially convertible rupee was at 46.15/16 per dollar, off a high of 46.0950, its strongest since Sept. 26, 2008 and 0.8 percent above its Monday's close of 46.48/49. Financial markets were shut on Tuesday for a local holiday.
"Weaker dollar overseas is fuelling selling, it is a sell uptick story," said Ashtosh Raina, head of foreign exchange trading at HDFC Bank. The dollar slid to its weakest level in 14 months against a basket of currencies on Wednesday, under pressure from expectations of continued low U.S. interest rates and investor bets on commodity currencies. Indian shares rose 1 per cent early, tracking mostly firmer Asian markets, but gains are expected to be limited by concern the market may have moved ahead of valuations.
Foreign fund investments into local shares are key factor determining the direction for the rupee. Foreigners have bought a net $12.8 billion worth of shares this year, almost reversing net outflows of more than $13 billion in 2008. At the day's high, the rupee has gained 13.3 percent from its record low of 52.2 hit in early March and is up 5.7 percent in 2009. One-month offshore non-deliverable forward contracts were quoting at 46.03/13, stronger than the onshore spot rate, suggesting a bullish outlook for the rupee.
"The rupee is mostly likely to breach the 46/dollar mark, if the Reserve Bank of India doesn't intervene," Raina said. The central bank has previously said it buys or sells dollars in the spot market to prevent volatility in the local currency. Dealers said they would watch out for any RBI action to limit the sharp rise in the rupee. India's central bank bought a net $181 million in intervention in August, when the rupee had risen to a two-month high, its bulletin showed on Monday.
"Given the state of USD sentiment, it may just be a matter of time before targets such as 42 appear on the horizon," Sean Callow, forex strategist at Westpac, said in a Wednesday note. "The modest amounts reported for intervention from May to August indicate strongly that the range-bound price action on the rupee at a time of sizeable gains for other Asian currencies was not due to large scale central bank USD purchases. We would be surprised if the data for October aren't more eye-catching."
Wednesday, October 7, 2009
Asia shares up, confidence in recovery grows
HONG KONG: Asian shares pushed higher for a second day on Wednesday, with Taiwan's benchmark index nearing a 16-month high, as growing confidence in a strengthening global recovery boosted resource and financial companies. Gold hit a record high on the spot and futures markets in Europe, with dollar weakness continuing to support sentiment by attracting fresh investment in the precious metal.
Spot gold prices scaled a new peak of 1,048.20 an ounce, while gold for December delivery on the U.S. COMEX futures market jumped to a shade below 1,050 before retreating a bit. U.S. crude oil prices rose about half a percent to above $71 levels, adding to gains scored the previous day as commodities surged on hopes that global demand was picking up. Australian miners and Japanese trading houses were among the big winners, with shares of Rio Tinto and Mitsubishi Corp both jumping more than 5 percent.
Some investors also took heart from Australia's central bank lifting interest rates the previous day, the first of any Group of 20 nation to do so in a sign that the emergency measures put in place to stem the financial crisis are gradually being unwound. The Australian dollar hit a 14-month high above $0.892 as investors bet on more rate rises later this year after the surprise quarter-point hike to 3.25 percent.
The rate increase was seen as a sign the global economy was on the mend and fueled gains of more than 1 percent on Wall Street, and a 2.3 percent jump in Australian shares. "The RBA set the cat amongst the pigeons by becoming the first G20 central bank to hike rates. The move likely accelerated the issue of yield re-emerging as a key currency driver the coming months," said analysts at Calyon in a note to clients. "The hike is unlikely, however, to be quickly followed by the U.S., Japan or Europe."
Some economists noted that Australia is a special case because its economy and banking system were mostly sheltered from the global crisis and has benefitted from China's aggressive efforts to stockpile resources and kick start growth. Many major central banks are unlikely to raise rates for some time, trying to ensure there is no dip back into recession. Federal Reserve officials remain cautious about unwinding emergency measures. Kansas City Fed President Thomas Hoenig said late on Tuesday that the U.S. economy is clearly recovering but that it is too soon for the Fed to withdraw its massive support.
The MSCI index of Asia-Pacific shares outside Japan rose about 1.4 percent, with the material sector the biggest gainer on the day. Japan's Nikkei average gained 1.2 percent, with financials getting a boost from a rise in U.S. counterparts the previous day after Goldman Sachs upgraded the sector. The banking sector rose 3.6 percent. Hong Kong stocks rose 2.1 percent to a two-week high, as higher commodity prices spurred resources shares, while banks rose on prospects that China may lift interest rates sooner than expected.
Spot gold prices scaled a new peak of 1,048.20 an ounce, while gold for December delivery on the U.S. COMEX futures market jumped to a shade below 1,050 before retreating a bit. U.S. crude oil prices rose about half a percent to above $71 levels, adding to gains scored the previous day as commodities surged on hopes that global demand was picking up. Australian miners and Japanese trading houses were among the big winners, with shares of Rio Tinto and Mitsubishi Corp both jumping more than 5 percent.
Some investors also took heart from Australia's central bank lifting interest rates the previous day, the first of any Group of 20 nation to do so in a sign that the emergency measures put in place to stem the financial crisis are gradually being unwound. The Australian dollar hit a 14-month high above $0.892 as investors bet on more rate rises later this year after the surprise quarter-point hike to 3.25 percent.
The rate increase was seen as a sign the global economy was on the mend and fueled gains of more than 1 percent on Wall Street, and a 2.3 percent jump in Australian shares. "The RBA set the cat amongst the pigeons by becoming the first G20 central bank to hike rates. The move likely accelerated the issue of yield re-emerging as a key currency driver the coming months," said analysts at Calyon in a note to clients. "The hike is unlikely, however, to be quickly followed by the U.S., Japan or Europe."
Some economists noted that Australia is a special case because its economy and banking system were mostly sheltered from the global crisis and has benefitted from China's aggressive efforts to stockpile resources and kick start growth. Many major central banks are unlikely to raise rates for some time, trying to ensure there is no dip back into recession. Federal Reserve officials remain cautious about unwinding emergency measures. Kansas City Fed President Thomas Hoenig said late on Tuesday that the U.S. economy is clearly recovering but that it is too soon for the Fed to withdraw its massive support.
The MSCI index of Asia-Pacific shares outside Japan rose about 1.4 percent, with the material sector the biggest gainer on the day. Japan's Nikkei average gained 1.2 percent, with financials getting a boost from a rise in U.S. counterparts the previous day after Goldman Sachs upgraded the sector. The banking sector rose 3.6 percent. Hong Kong stocks rose 2.1 percent to a two-week high, as higher commodity prices spurred resources shares, while banks rose on prospects that China may lift interest rates sooner than expected.
European markets rise before US earnings
LONDON: Europe's main stock markets rose for a third day running on Wednesday, awaiting the start of the latest US earnings season and after gains in Tokyo and overnight on Wall Street.
The FTSE 100 index climbed 0.14 percent to 5,145.15 points in late morning London trade.
Frankfurt's DAX 30 gained 0.26 percent to 5,672.33 points and in Paris the CAC 40 advanced 0.28 percent to 3,780.61 points near the half-way stage.
The DJ Euro Stoxx 50 index of top eurozone shares won 0.16 percent to 2,869.29.
"The forthcoming earnings season, which starts today with aluminium powerhouse Alcoa, will be seen as pivotal for the direction the markets will take over the last few months of 2009," said Tom Salmon, a trader at financial betting firm Spreadex.
US aluminum producer Alcoa kicks off the third-quarter US corporate earnings reporting on Wednesday.
Ahead of the report, Japanese share prices rose for a second straight day, led by commodity shares which climbed on growing hopes that a global economic recovery is taking root, traders said.
Tokyo's benchmark Nikkei-225 index added 1.11 percent to close at 9,799.60 points on Wednesday.
Positive sentiment towards the world economy was supported after Australia on Tuesday became the first major economy to raise interest rates since the financial crisis began two years ago -- reflecting improving economic conditions.
The central bank announced a rise of 25 basis points to 3.25 percent, lifting rates off a 49-year low.
But the European Central Bank and Bank of England are expected to keep their key lending rates at record low levels of 1.0 and 0.5 percent respectively in decisions due Thursday.
And although the United States is unlikely to raise rates in the near future as it still undergoes the painful transition of emerging from recession, investors saw the move by Australia as a key indication of global recovery.
The rate rise is being interpreted as "another confirmation that the world is back from the brink of economic disaster," said Briefing.com analyst Patrick O'Hare.
Economic recovery has meanwhile prodded investors to pump their investments into riskier assets such as stocks and move away from the safe-haven dollar.
The dollar traded mixed Wednesday after falling a day earlier when Britain's Independent newspaper reported that Gulf countries had held secret meetings with officials outside the region to discuss dropping the US currency for oil trade.
The countries would instead use a basket of currencies, including the yen, the paper said, citing Gulf Arab and Chinese banking sources in Hong Kong.
The report increased recent negative sentiment toward the dollar despite a series of denials, the latest by France.
The FTSE 100 index climbed 0.14 percent to 5,145.15 points in late morning London trade.
Frankfurt's DAX 30 gained 0.26 percent to 5,672.33 points and in Paris the CAC 40 advanced 0.28 percent to 3,780.61 points near the half-way stage.
The DJ Euro Stoxx 50 index of top eurozone shares won 0.16 percent to 2,869.29.
"The forthcoming earnings season, which starts today with aluminium powerhouse Alcoa, will be seen as pivotal for the direction the markets will take over the last few months of 2009," said Tom Salmon, a trader at financial betting firm Spreadex.
US aluminum producer Alcoa kicks off the third-quarter US corporate earnings reporting on Wednesday.
Ahead of the report, Japanese share prices rose for a second straight day, led by commodity shares which climbed on growing hopes that a global economic recovery is taking root, traders said.
Tokyo's benchmark Nikkei-225 index added 1.11 percent to close at 9,799.60 points on Wednesday.
Positive sentiment towards the world economy was supported after Australia on Tuesday became the first major economy to raise interest rates since the financial crisis began two years ago -- reflecting improving economic conditions.
The central bank announced a rise of 25 basis points to 3.25 percent, lifting rates off a 49-year low.
But the European Central Bank and Bank of England are expected to keep their key lending rates at record low levels of 1.0 and 0.5 percent respectively in decisions due Thursday.
And although the United States is unlikely to raise rates in the near future as it still undergoes the painful transition of emerging from recession, investors saw the move by Australia as a key indication of global recovery.
The rate rise is being interpreted as "another confirmation that the world is back from the brink of economic disaster," said Briefing.com analyst Patrick O'Hare.
Economic recovery has meanwhile prodded investors to pump their investments into riskier assets such as stocks and move away from the safe-haven dollar.
The dollar traded mixed Wednesday after falling a day earlier when Britain's Independent newspaper reported that Gulf countries had held secret meetings with officials outside the region to discuss dropping the US currency for oil trade.
The countries would instead use a basket of currencies, including the yen, the paper said, citing Gulf Arab and Chinese banking sources in Hong Kong.
The report increased recent negative sentiment toward the dollar despite a series of denials, the latest by France.
Sensex closes below 17000; IT, Reliance weigh
MUMBAI: Indian equities ended a volatile session sharply lower Wednesday ahead of second quarter results. The correction was led by IT stocks and index heavyweight Reliance Industries.
Indices opened higher taking cues from positive global markets but could not breach earlier highs. Later, the indices turned choppy and slipped as the session progressed. A sharp fall in the last half hour took the indices below psychological levels.
“Some caution seems to have crept in ahead of earnings season. Bulls and bears are slugging it out around 5000 level. We have a stoploss of 4920 on Nifty (cash). Unless this level is broken decisively we remain bullish on the market,” said Shankar Char, vice president, Centrum Capital.
National Stock Exchange’s Nifty ended below the 5,000 mark. The index settled at 4,985.75, down 0.83 per cent or 41.65 points from the previous close. Nifty swayed between a high of 5,077.00 and low of 4,972.95.
Bombay Stock Exchange’s Sensex closed at 16,806.66, lower by 151.88 points or 0.9 per cent. The index slipped to a low of 16,764.07 after touching a high of 17,120.56 during the day.
The BSE Midcap Index closed 1.41 per cent higher and BSE Smallcap Index edged up 0.46 per cent.
Sectorwise, the BSE IT Index lost 2.74 per cent, BSE Oil & Gas Index shed 1.06 per cent and BSE Auto Index declined 1.03 per cent.
IT stocks were hit badly as traders resorted to booking profits following the decline in US dollar against the rupee. At 4:40 pm, the rupee was at 46.63 per dollar, after hitting an year-high of 46.49 against previous close of 46.89.
Index heavyweight Reliance Industries also kept the indices under pressure ahead of its second quarter results. However, brokerage Motilal Oswal in its results preview note has put a ‘Buy’ call on the stock. “RPL’s merger with RIL has been approved by the high court, with the appointed date being 1 April 2009. Hence, we have built RPL numbers in our quarterly estimates for FY10. For 2QFY10, we expect RIL to report net profit of Rs 38 billion (v/s Rs41.2b in 2QFY09 and Rs37.4b in 1QFY10).
Indices opened higher taking cues from positive global markets but could not breach earlier highs. Later, the indices turned choppy and slipped as the session progressed. A sharp fall in the last half hour took the indices below psychological levels.
“Some caution seems to have crept in ahead of earnings season. Bulls and bears are slugging it out around 5000 level. We have a stoploss of 4920 on Nifty (cash). Unless this level is broken decisively we remain bullish on the market,” said Shankar Char, vice president, Centrum Capital.
National Stock Exchange’s Nifty ended below the 5,000 mark. The index settled at 4,985.75, down 0.83 per cent or 41.65 points from the previous close. Nifty swayed between a high of 5,077.00 and low of 4,972.95.
Bombay Stock Exchange’s Sensex closed at 16,806.66, lower by 151.88 points or 0.9 per cent. The index slipped to a low of 16,764.07 after touching a high of 17,120.56 during the day.
The BSE Midcap Index closed 1.41 per cent higher and BSE Smallcap Index edged up 0.46 per cent.
Sectorwise, the BSE IT Index lost 2.74 per cent, BSE Oil & Gas Index shed 1.06 per cent and BSE Auto Index declined 1.03 per cent.
IT stocks were hit badly as traders resorted to booking profits following the decline in US dollar against the rupee. At 4:40 pm, the rupee was at 46.63 per dollar, after hitting an year-high of 46.49 against previous close of 46.89.
Index heavyweight Reliance Industries also kept the indices under pressure ahead of its second quarter results. However, brokerage Motilal Oswal in its results preview note has put a ‘Buy’ call on the stock. “RPL’s merger with RIL has been approved by the high court, with the appointed date being 1 April 2009. Hence, we have built RPL numbers in our quarterly estimates for FY10. For 2QFY10, we expect RIL to report net profit of Rs 38 billion (v/s Rs41.2b in 2QFY09 and Rs37.4b in 1QFY10).
RIL board approves 1:1 bonus issue
MUMBAI: Mukesh Ambani group firm Reliance Industries today said it will issue one bonus share for every share held in the company.
The board of directors of the company at its meeting held today, recommended issuance of bonus shares in the ratio of one equity share of Rs 10 each for each share held, RIL said in a filing to the Bombay Stock Exchange.
The issue of bonus shares is subject to the shareholders' approval, it added.
The board has also declared a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders, the company said.
The board of directors of the company at its meeting held today, recommended issuance of bonus shares in the ratio of one equity share of Rs 10 each for each share held, RIL said in a filing to the Bombay Stock Exchange.
The issue of bonus shares is subject to the shareholders' approval, it added.
The board has also declared a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders, the company said.
RIL to make 1-for-1 bonus issue
MUMBAI: Indian energy major Reliance Industries Ltd said on Wednesday its board has recommended issuing one bonus share for every share held. The board also recommended a dividend of 13 rupees per share held.
The company will announce its full-year consolidated results for 2008/09, including those of merged unit Reliance Petroleum, later in the day.
The company will announce its full-year consolidated results for 2008/09, including those of merged unit Reliance Petroleum, later in the day.
Tuesday, October 6, 2009
CRISIL grades Indiabulls Power IPO 3/5
MUMBAI: CRISIL has assigned IPO Grade "3/5" to the proposed initial public offer of Indiabulls Power Ltd, which indicates that the fundamentals of the issue are average relative to other listed equity securities.
The grading reflects CRISIL Research’s view that the current power deficit scenario together with the outlook for sustained domestic economic growth presents a positive outlook for the power sector. This will benefit companies like Indiabulls Power who are setting up large generation capacities. The grading also reflects the group’s good financial flexibility, strong fund raising ability, and the group management’s successful track record in other businesses.
The grading is however tempered by the risks inherent in completing and commissioning the relatively large projects under execution, and the fact that this is a completely new sector of exposure for the group. The grading also reflects the fact that power generation companies in India will significantly depend on State Electricity Boards (SEBs) for the off take over the long term, and will have to manage the related credit risks. Constrained capacity of the transmission facility for power evacuation is another risk factor. Given these risks and in the context of competitive bidding based project awards for private players, the returns to generation companies may not be substantially high.
Indiabulls Power, a subsidiary of Indiabulls Real Estate Ltd, has been established with the objective to develop, construct and operate power projects. The company is currently executing five coal based power projects totalling 6,615 MW generation capacities. The company proposes to set up power plants in Maharashtra (Amravati and Nashik) and Chhattisgarh (Bhaiyathan). The management has indicated that the first power plant would be commissioned at Nashik in 2011-12.
The proceeds of the proposed IPO will part finance the construction and development of the 1,320 MW Amravati Power Project Phase I, fund equity contribution in the company’s wholly owned subsidiary to part finance the construction and development of 1,335 MW Nashik Power Project, apart from general corporate purposes.
The grading reflects CRISIL Research’s view that the current power deficit scenario together with the outlook for sustained domestic economic growth presents a positive outlook for the power sector. This will benefit companies like Indiabulls Power who are setting up large generation capacities. The grading also reflects the group’s good financial flexibility, strong fund raising ability, and the group management’s successful track record in other businesses.
The grading is however tempered by the risks inherent in completing and commissioning the relatively large projects under execution, and the fact that this is a completely new sector of exposure for the group. The grading also reflects the fact that power generation companies in India will significantly depend on State Electricity Boards (SEBs) for the off take over the long term, and will have to manage the related credit risks. Constrained capacity of the transmission facility for power evacuation is another risk factor. Given these risks and in the context of competitive bidding based project awards for private players, the returns to generation companies may not be substantially high.
Indiabulls Power, a subsidiary of Indiabulls Real Estate Ltd, has been established with the objective to develop, construct and operate power projects. The company is currently executing five coal based power projects totalling 6,615 MW generation capacities. The company proposes to set up power plants in Maharashtra (Amravati and Nashik) and Chhattisgarh (Bhaiyathan). The management has indicated that the first power plant would be commissioned at Nashik in 2011-12.
The proceeds of the proposed IPO will part finance the construction and development of the 1,320 MW Amravati Power Project Phase I, fund equity contribution in the company’s wholly owned subsidiary to part finance the construction and development of 1,335 MW Nashik Power Project, apart from general corporate purposes.
US stocks jump on service industry, bank reports
NEW YORK: The first growth in the service industry in a year and upbeat comments about big banks pulled investors into the stock market after two losing weeks.
The Dow Jones industrial average rose 112 points as all major stock indicators gained 1 percent.
The Institute for Supply Management said its service index rose to 50.9 in September from 48.4 in August. Analysts polled by Thomson Reuters had expected a reading of 50, the dividing line between growth and contraction. The index hadn't grown since August of last year.
Financial and energy stocks led the gains after Goldman Sachs raised its rating on large banks and the price of oil jumped.
The advance follows the market's first back-to-back weekly drops since July, which came as reports on manufacturing and consumer sentiment fell short of expectations.
Stocks had fallen for seven of eight days, which likely brought buying interest from investors seeking bargains. The Dow lost 332 points, or 3.4 percent, in the past two weeks. Monday's advance also came in light trading volume, which can skew price moves. Bigger tests of the market will arrive in the coming weeks when companies begin turning in earnings reports for the July-September quarter.
Thomas J. Lee, chief U.S. equity strategist at J.P. Morgan, said the improvement in the service index is encouraging because it could help boost confidence in the economy, a key element of a sustainable recovery.
"We really have to see the animal spirits kick in in the next six months, which is confidence in both businesses and consumers," he said.
The Dow rose 112.08, or 1.2 percent, to 9,599.75, its first gain in four days. The broader Standard & Poor's 500 index rose 15.25, or 1.5 percent, to 1,040.46, and the Nasdaq composite index rose 20.04, or 1 percent, to 2,068.15.
Lee said the market's two-week drop is a healthy sign of investor caution after stocks rose for seven months off of 12-year lows in March. He also said the mixed economic readings aren't surprising and don't mean the rally is over.
"We should be kind of looking for data to come in a little choppy because no recovery is going to be linear and smooth," he said.
The Dow Jones industrial average rose 112 points as all major stock indicators gained 1 percent.
The Institute for Supply Management said its service index rose to 50.9 in September from 48.4 in August. Analysts polled by Thomson Reuters had expected a reading of 50, the dividing line between growth and contraction. The index hadn't grown since August of last year.
Financial and energy stocks led the gains after Goldman Sachs raised its rating on large banks and the price of oil jumped.
The advance follows the market's first back-to-back weekly drops since July, which came as reports on manufacturing and consumer sentiment fell short of expectations.
Stocks had fallen for seven of eight days, which likely brought buying interest from investors seeking bargains. The Dow lost 332 points, or 3.4 percent, in the past two weeks. Monday's advance also came in light trading volume, which can skew price moves. Bigger tests of the market will arrive in the coming weeks when companies begin turning in earnings reports for the July-September quarter.
Thomas J. Lee, chief U.S. equity strategist at J.P. Morgan, said the improvement in the service index is encouraging because it could help boost confidence in the economy, a key element of a sustainable recovery.
"We really have to see the animal spirits kick in in the next six months, which is confidence in both businesses and consumers," he said.
The Dow rose 112.08, or 1.2 percent, to 9,599.75, its first gain in four days. The broader Standard & Poor's 500 index rose 15.25, or 1.5 percent, to 1,040.46, and the Nasdaq composite index rose 20.04, or 1 percent, to 2,068.15.
Lee said the market's two-week drop is a healthy sign of investor caution after stocks rose for seven months off of 12-year lows in March. He also said the mixed economic readings aren't surprising and don't mean the rally is over.
"We should be kind of looking for data to come in a little choppy because no recovery is going to be linear and smooth," he said.
Asia markets gain after data boosts Wall Street
BANGKOK: Asian stock markets mostly rose Tuesday after the U.S. services industry, a mainstay of the world's No. 1 economy, showed its first growth in a year and Australia's central bank raised interest rates.
Gains in Japan were tempered as the dollar weakened against the yen, weighing on exporter stocks. Oil prices inched higher, taking a cue from stronger stock markets.
Australia's benchmark index stayed in the green after the country's central bank unexpectedly raised its key interest rate _ the first major economy to increase the cost of borrowing amid signs its recovery from the global slump is gathering momentum.
Wall Street broke out of a two week funk Monday after the Institute of Supply Management said its services index rose to 50.9 in September from 48.4 in August. A reading above 50 shows activity is expanding. The index hadn't signaled growth since August of last year.
U.S. stocks were also boosted by a Goldman Sachs report that talked up the prospects of banks as investors scrounged for any positive news after being jolted by last week's dire report on climbing unemployment.
In Japan, the Nikkei 225 stock average rose 8.52, or 0.1 percent, to 9,683.01 and Hong Kong's Hang Seng gained 139.70, or 0.7 percent, to 20,568.77. South Korea's Kospi was down 0.7 percent at 1,596.62.
Elsewhere, Singapore's market jumped 1.3 percent and Taiwan's index advanced 1.5 percent. China's markets are closed for a weeklong holiday and reopen Friday.
Australia's market was up 0.5 percent despite the central bank's quarter point rate hike making returns on cash and bonds more attractive.
The central bank's governor Glenn Stevens said it was ``prudent'' to begin gradually reducing the stimulus provided by low interest rates. He said the risk of ``serious economic contraction'' in Australia had passed.
In the U.S. Monday, the Dow rose 112.08, or 1.2 percent, to 9,599.75, its first gain in four days. The broader Standard & Poor's 500 index rose 15.25, or 1.5 percent, to 1,040.46, and the Nasdaq composite index rose 20.04, or 1 percent, to 2,068.15.
Oil prices floated above $70 a barrel Tuesday in Asia as the jump in global stock markets boosted investor confidence.
Benchmark crude for November delivery was up 15 cents at $70.56 in electronic trading on the New York Mercantile Exchange. The contract gained 46 cents to settle at $70.41 Monday.
In currencies, the dollar fell to 89.14 from 89.53. The euro rose to $1.4714 from $1.4647.
Gains in Japan were tempered as the dollar weakened against the yen, weighing on exporter stocks. Oil prices inched higher, taking a cue from stronger stock markets.
Australia's benchmark index stayed in the green after the country's central bank unexpectedly raised its key interest rate _ the first major economy to increase the cost of borrowing amid signs its recovery from the global slump is gathering momentum.
Wall Street broke out of a two week funk Monday after the Institute of Supply Management said its services index rose to 50.9 in September from 48.4 in August. A reading above 50 shows activity is expanding. The index hadn't signaled growth since August of last year.
U.S. stocks were also boosted by a Goldman Sachs report that talked up the prospects of banks as investors scrounged for any positive news after being jolted by last week's dire report on climbing unemployment.
In Japan, the Nikkei 225 stock average rose 8.52, or 0.1 percent, to 9,683.01 and Hong Kong's Hang Seng gained 139.70, or 0.7 percent, to 20,568.77. South Korea's Kospi was down 0.7 percent at 1,596.62.
Elsewhere, Singapore's market jumped 1.3 percent and Taiwan's index advanced 1.5 percent. China's markets are closed for a weeklong holiday and reopen Friday.
Australia's market was up 0.5 percent despite the central bank's quarter point rate hike making returns on cash and bonds more attractive.
The central bank's governor Glenn Stevens said it was ``prudent'' to begin gradually reducing the stimulus provided by low interest rates. He said the risk of ``serious economic contraction'' in Australia had passed.
In the U.S. Monday, the Dow rose 112.08, or 1.2 percent, to 9,599.75, its first gain in four days. The broader Standard & Poor's 500 index rose 15.25, or 1.5 percent, to 1,040.46, and the Nasdaq composite index rose 20.04, or 1 percent, to 2,068.15.
Oil prices floated above $70 a barrel Tuesday in Asia as the jump in global stock markets boosted investor confidence.
Benchmark crude for November delivery was up 15 cents at $70.56 in electronic trading on the New York Mercantile Exchange. The contract gained 46 cents to settle at $70.41 Monday.
In currencies, the dollar fell to 89.14 from 89.53. The euro rose to $1.4714 from $1.4647.
World markets gain after data boosts Wall Street
BANGKOK: World stock markets rose Tuesday after the U.S. service sector, a mainstay of the world's No. 1 economy, showed growth for the first time in a year and Australia raised interest rates as its recovery strengthens.
Gains in Japan were tempered as the dollar weakened against the yen, weighing on exporters and offsetting strength in financial shares. Oil prices rose above $71, taking a cue from stronger stock markets.
Australia's benchmark index stayed in the green after the country's central bank unexpectedly raised its key interest rate _ the first major economy to increase the cost of borrowing amid signs its recovery from the global slump is gathering momentum.
Wall Street broke out of a two week funk Monday after the Institute of Supply Management said its services index rose to 50.9 in September from 48.4 in August. A reading above 50 shows activity is expanding.
The index, which tracks more than 80 percent of the country's economic activity, including hospitals, retailers, financial services companies and truckers, hadn't signaled growth since August 2008.
U.S. stocks were also boosted by a Goldman Sachs report that talked up the prospects of banks as investors scrounged for any positive news after being jolted by last week's dire report on climbing unemployment.
Early in European trading, Britain's FTSE 100 rose 0.9 percent, Germany's DAX gained 0.7 percent and France's CAC 40 advanced 0.6 percent. Stock futures pointed to modest gains Tuesday on Wall Street. Dow futures were up 24, or 0.3 percent, to 9,570.
In Japan, the Nikkei 225 stock average rose 17.31, or 0.2 percent, to 9,691.80 and Hong Kong's Hang Seng gained 382.46, or 1.9 percent, to 20,811.53. South Korea's Kospi was down 0.5 percent at 1,598.44.
Elsewhere, Singapore's market jumped 1.3 percent and Indonesia's index was up 2 percent. China's markets are closed for a weeklong holiday and reopen Friday.
Gains in Japan were tempered as the dollar weakened against the yen, weighing on exporters and offsetting strength in financial shares. Oil prices rose above $71, taking a cue from stronger stock markets.
Australia's benchmark index stayed in the green after the country's central bank unexpectedly raised its key interest rate _ the first major economy to increase the cost of borrowing amid signs its recovery from the global slump is gathering momentum.
Wall Street broke out of a two week funk Monday after the Institute of Supply Management said its services index rose to 50.9 in September from 48.4 in August. A reading above 50 shows activity is expanding.
The index, which tracks more than 80 percent of the country's economic activity, including hospitals, retailers, financial services companies and truckers, hadn't signaled growth since August 2008.
U.S. stocks were also boosted by a Goldman Sachs report that talked up the prospects of banks as investors scrounged for any positive news after being jolted by last week's dire report on climbing unemployment.
Early in European trading, Britain's FTSE 100 rose 0.9 percent, Germany's DAX gained 0.7 percent and France's CAC 40 advanced 0.6 percent. Stock futures pointed to modest gains Tuesday on Wall Street. Dow futures were up 24, or 0.3 percent, to 9,570.
In Japan, the Nikkei 225 stock average rose 17.31, or 0.2 percent, to 9,691.80 and Hong Kong's Hang Seng gained 382.46, or 1.9 percent, to 20,811.53. South Korea's Kospi was down 0.5 percent at 1,598.44.
Elsewhere, Singapore's market jumped 1.3 percent and Indonesia's index was up 2 percent. China's markets are closed for a weeklong holiday and reopen Friday.
LIVE FROM BSE/NSE
3:30 pm: The Nifty bounced back from the day's low to end in the positive at provisional 5024.75, up 21.55 points or 0.43% from the previous close. The NSE benchmark had slipped to a low of 4921.05 from an early high of 5034.70. The bounce back was led by Hindalco, Reliance Infrastructure, Hindustan Unilever, ITC, BHEL, Tata Steel, Axis Bank, ICICI Bank, Sterlite Industries, and SAIL. The losers comprised Bharti Airtel, Reliance Communications, Idea Cellular, HCL Tech, Ambuja Cements, ACC, Wipro, BPCL, Sun Pharma, and Unitech.
3:15 pm: Sonata Software Ltd has announced the opening of a second offsite facility for Microsoft at its new Global Village in Bangalore. The first offsite facility in Sonata's Hyderabad office has been operational since 2006. The new development centre has been designed keeping in mind flexible, scalable and independent operations. The facility will provide design, development, testing, production and maintenance of Microsoft's products.
Sonata Soft shares were down 2.20% at Rs 35.60 on NSE, after rising to Rs 37.40 earlier in the day.
2:35 pm: Hindustan Dorr Oliver Ltd has bagged an order from BALCO (a Vedanta Group company) worth Rs. 130 crores for design, engineering, procurement, manufacturing, supply, civil works, erection/ construction, testing & commissioning of fume treatment plant for their Smelter Expansion Project at Korba. Fives Solios, France a world class expert in this field, is the technology partner for this project. The total order value along with Fives Solios, France is worth Rs. 276 crores. Execution of the project shall be completed within a period of 20 months. The company has already successfully completed similar project with Vedanta group for its existing smelter project at Jharsuguda, Orissa.
Hindustan Dorr Oliver shares were higher by 4.85% at Rs 137.40 on BSE.
2:15 pm: Tata Consultancy Services Ltd has informed that N. Chandrasekaran has taken charge as Chief Executive Officer, taking over from S Ramadorai and who will now take the position of non-executive vice chairman. Shares of the IT major were up 0.67% at Rs 619.45 on NSE.
1:42 pm: Pyramid Saimira Group has announced its strategic partnership with RDB Group for the group’s production company venture PSPIL. With this strategic alliance and with combined expertise, PSPIL plans 1,785 hours of TV content for the fiscal year 2010-2011.
Pyramid Saimira shares were higher by 5.16% at Rs 26.50 on NSE, on the back of this announcement.
1:25 pm: Mphasis Ltd has informed that the legal and statutory requirements for the purchase of 100% shares of AIG Systems Solutions Pvt. Ltd. have been completed on September 30, 2009. The company's share was down 2.01% at Rs 664 on NSE.
1:22 pm: Four Soft Netherlands BV, a subsidiary of Four Soft Ltd, India, has signed a new contract with Smart Logistics to automate its freight forwarding operations by implementing 4S eTrans SME at its multiple locations. Smart Logistics is a Netherlands based freight forwarding company which provides full integrated freight forwarding services and total logistics solutions to its customers. 4S eTrans SME Is a complete, freight forwarding system, designed to automate, streamline and support the multi-modal International freight forwarding operations. It provides the logistics industry with a flexible and complete software solution to manage business efficiently, increase productivity and improve the overall service to their customers.
Four Soft shares were up 1.32% at Rs 23.10 on NSE, on the back of this announcement.
1:11 pm: Suzlon Energy Ltd has signed a repeat order for 57 MW with Ayen Enerji of Turkey. The order will be supplied with 27 units of Suzlon S88-2.1 MW turbine, to be installed at the Seferihisar and Mordogan projects in east Turkey.
However, the company's share was down 2.41% at Rs 85 on NSE.
12:45 pm: Kushagra Software Ltd has procured $3.5 million order for power project works. The company has to implement these works over a period of next 12 months. Shares of the company were trading flat at Rs 8.34 on BSE.
12:38 pm: Larsen & Toubro Ltd's Construction Division has bagged new orders aggregating Rs 1,513 crore during the second quarter of the year 2009-10 for the construction of high rise tower, luxury hotel, hospital and factory building projects. The company has secured a Rs 621 crore contract from DB Hospitality for the construction of India Tower in Mumbai. It has further secured an order from ITC Group for construction of ITC Sonar Hotel at Kolkata amounting Rs 238 crore and secured orders worth Rs 367 crore from NBCC for construction of hospital building at Coimbatore and for upgradation of six hospitals at Haryana.
Shares of the company were down 1.22% at Rs 1634.25 on NSE, despite this news.
12:20 pm: Prism Cement Ltd has posted standalone net profit of Rs. 34.97 crore for the quarter ended September 30, 2009 against Rs. 74.25 crore for the quarter ended June 30, 2009. Net sales for the September quarter was Rs. 228.40 crore against Rs. 271.31 crore in June.
Shares of the company were down 9.81% at Rs 49.20 on NSE.
11:45 am: Nirmal Bang has advised traders to buy Reliance Industries on dips with strict stoploss of Rs 2110. “Buy Reliance Industries on dips with strict stoploss of Rs 2110. If this level breaks then the next level could be Rs 2080‐2040. But if the stock holds firmly above Rs 2150‐2160 then see a target of Rs 2190‐2215,” said the technical report.
11:38 am: Gammon Infrastructure Projects Ltd has concluded the purchase of 2,28,77,500 equity shares of Rs.10 each of Vizag Seaport Pvt. Ltd. from International Port Services Pvt Ltd, the investment arm of Portia Management Services Services of UK. The shareholding of Gammon Infra in VSPL stand increased to 73.76%, making VSPL a subsidiary of the company with effect from October 1, 2009. VSPL owns two berths handling bulk cargo at the Visakhapatnam Port and presently handles more than 5 million tonnes of cargo on annualized basis. The concession of the project is for a period of thirty years till end November 2031 Gammon Infra has two other port assets viz. (i) the Indira Container Terminal Private Limited, where the company has 50% equity stake, which is setting up two offshore container berths at the Mumbai Port besides managing the existing Ballard Pier Station Container Terminal: and (ii) the Blue Water Iron Ore Terminal Pvt Ltd, where the company has 31% equity stake, which is setting up a dedicated iron ore berth at the Paradip Port in Orissa.
Despite this news, Gammon Infra shares were down 2.09% at Rs 95.85 on NSE in line with the weak market.
11:20 am: Nirmal Bang has advised traders to buy and hold shares of Adhunik Metaliks. The stock has the potential of hitting Rs 135 in the short term, it says.
“Buy and hold Adhunik Metals as huge delivery based action is being seen. The stock has support at Rs 95-92. If the stock maintains above Rs 110 in the near term then expect a short-term target of Rs 135,” the brokerage said.
11:00 am: Emkay Global Financial Services is of the view that though the daily charts have given a sell signal, short term upside target on Nifty is seen at 5160 and then 5298. “On the daily chart Stochastic oscillator had given sell signal and Nifty had already retraced 50% of the recent rally from 4904 to 5110, thus now Nifty has support at 4982 which is 61.80% of the above mentioned rally. However as mentioned earlier that Nifty is continuously forming Higher tops and Higher bottom and still trading above the short term averages, thus we maintain our short term upside targets 5160 and above that 5298, and we believe that any downside correction will be good buying opportunity. Downside in short term level of 4900 will play as an important support,” the report said.
10:50 am: JIK Industries Ltd informs that the company has paid off its last secured creditor and is totally debt free with respect to secured creditors. The company embarked on a restructuring process after facing difficulty in the year 2004. The company’s total secured debt was to the tune of around Rs. 73 crore in 2005 and in just within 4 years has managed to settle all its secured debts. The company had arrived at settlement of dues with banks and Financial Institutions like Stressed Asset Stabilization Fund, Bank of India, Canara Bank, Life Insurance Corporation of India, Arcil . The company implemented Scheme of Arrangement sanctioned by the Bombay High Court for the value Rs.29.68 crores. The company is now looking to focus on its product line of Crystal Glassware and allied products which fall within the luxury goods industry, where it sees maximum product potential.
However in line with the market weakness, JIK Industries shares were down 0.41% at Rs 24.15 on NSE.
10:40 am: Lupin Ltd has granted Salix Pharmaceuticals Ltd the exclusive rights for the US to its bioadhesive drug delivery technology for us with Rifaximin. Lupin and Salix have entered into an agreement under which the two companies will collaborate in the development and commercialisation of an extended release product incorporating Refaximin and utilising Lupin's proprietary bioadhesive technology. Salix has made a $5 million up-front payment and will make additional regulatory milestone payments to Lupin. In addition, Salix will pay royalties on net sales of the bioadhesive Rifaximin product to Lupin.
This news saw Lupin shares rise by 3.81% at Rs 1,218.05 on NSE. The stock touched a high of Rs 1,232 in trade so far.
10:20 am: Indiabulls Real Estate Ltd's subsidiary, Indiabulls Power Ltd filed a Red Herring Prospectus with the office of the Registrar of Companies, Delhi & Haryana, on October 1 for an Initial Public Offering of equity shares.
This announcement, however, did not move the Indiabulls Real Estate stock much, which was up 0.23% at Rs 264.60 on NSE.
10:05 am: The biggest losers were from the telecom sector following TRAI's ruling that service providers charge users per second instead of the per minute billing system followed now. These included Reliance Communications (-9.07%), Bharti Airtel (-7.91%), Idea Cellular (-7.24%), Tata Communications (-0.64%). The other big losers were BPCL, HDFC Bank, Ambuja Cements, Tata Motors.
10:04 am: Top gainers among the Nifty constituents were Hindalco Industries (3.39%), ITC (2.64%), Sterlite Industries (2.15%), Ranbaxy Laboratories, SAIL, Tata Consultancy Services, Mahindra & Mahindra, ICICI Bank, Hindustan Unilever, Wipro.
9:58 am: The Sensex was trading at 16,956.72, up 90.31 points or 0.54% from Monday. The BSE sensitive index had opened for trade at 16,879.38 versus the previous close of 16,866.41. The 30-share index saw a high of 16,965.53 and low of 16,879.38 in the early minutes.
9:58 am: Indian stock market bounced back on Tuesday, tracking gains on Wall Street and its positive effect on other Asian markets. The Nifty opened flattish at 5003.65 against the previous close of 5003.20 and moved up to 5033.90. The NSE benchmark index traded at 5028.65, up 25.45 points or 0.51%.
3:15 pm: Sonata Software Ltd has announced the opening of a second offsite facility for Microsoft at its new Global Village in Bangalore. The first offsite facility in Sonata's Hyderabad office has been operational since 2006. The new development centre has been designed keeping in mind flexible, scalable and independent operations. The facility will provide design, development, testing, production and maintenance of Microsoft's products.
Sonata Soft shares were down 2.20% at Rs 35.60 on NSE, after rising to Rs 37.40 earlier in the day.
2:35 pm: Hindustan Dorr Oliver Ltd has bagged an order from BALCO (a Vedanta Group company) worth Rs. 130 crores for design, engineering, procurement, manufacturing, supply, civil works, erection/ construction, testing & commissioning of fume treatment plant for their Smelter Expansion Project at Korba. Fives Solios, France a world class expert in this field, is the technology partner for this project. The total order value along with Fives Solios, France is worth Rs. 276 crores. Execution of the project shall be completed within a period of 20 months. The company has already successfully completed similar project with Vedanta group for its existing smelter project at Jharsuguda, Orissa.
Hindustan Dorr Oliver shares were higher by 4.85% at Rs 137.40 on BSE.
2:15 pm: Tata Consultancy Services Ltd has informed that N. Chandrasekaran has taken charge as Chief Executive Officer, taking over from S Ramadorai and who will now take the position of non-executive vice chairman. Shares of the IT major were up 0.67% at Rs 619.45 on NSE.
1:42 pm: Pyramid Saimira Group has announced its strategic partnership with RDB Group for the group’s production company venture PSPIL. With this strategic alliance and with combined expertise, PSPIL plans 1,785 hours of TV content for the fiscal year 2010-2011.
Pyramid Saimira shares were higher by 5.16% at Rs 26.50 on NSE, on the back of this announcement.
1:25 pm: Mphasis Ltd has informed that the legal and statutory requirements for the purchase of 100% shares of AIG Systems Solutions Pvt. Ltd. have been completed on September 30, 2009. The company's share was down 2.01% at Rs 664 on NSE.
1:22 pm: Four Soft Netherlands BV, a subsidiary of Four Soft Ltd, India, has signed a new contract with Smart Logistics to automate its freight forwarding operations by implementing 4S eTrans SME at its multiple locations. Smart Logistics is a Netherlands based freight forwarding company which provides full integrated freight forwarding services and total logistics solutions to its customers. 4S eTrans SME Is a complete, freight forwarding system, designed to automate, streamline and support the multi-modal International freight forwarding operations. It provides the logistics industry with a flexible and complete software solution to manage business efficiently, increase productivity and improve the overall service to their customers.
Four Soft shares were up 1.32% at Rs 23.10 on NSE, on the back of this announcement.
1:11 pm: Suzlon Energy Ltd has signed a repeat order for 57 MW with Ayen Enerji of Turkey. The order will be supplied with 27 units of Suzlon S88-2.1 MW turbine, to be installed at the Seferihisar and Mordogan projects in east Turkey.
However, the company's share was down 2.41% at Rs 85 on NSE.
12:45 pm: Kushagra Software Ltd has procured $3.5 million order for power project works. The company has to implement these works over a period of next 12 months. Shares of the company were trading flat at Rs 8.34 on BSE.
12:38 pm: Larsen & Toubro Ltd's Construction Division has bagged new orders aggregating Rs 1,513 crore during the second quarter of the year 2009-10 for the construction of high rise tower, luxury hotel, hospital and factory building projects. The company has secured a Rs 621 crore contract from DB Hospitality for the construction of India Tower in Mumbai. It has further secured an order from ITC Group for construction of ITC Sonar Hotel at Kolkata amounting Rs 238 crore and secured orders worth Rs 367 crore from NBCC for construction of hospital building at Coimbatore and for upgradation of six hospitals at Haryana.
Shares of the company were down 1.22% at Rs 1634.25 on NSE, despite this news.
12:20 pm: Prism Cement Ltd has posted standalone net profit of Rs. 34.97 crore for the quarter ended September 30, 2009 against Rs. 74.25 crore for the quarter ended June 30, 2009. Net sales for the September quarter was Rs. 228.40 crore against Rs. 271.31 crore in June.
Shares of the company were down 9.81% at Rs 49.20 on NSE.
11:45 am: Nirmal Bang has advised traders to buy Reliance Industries on dips with strict stoploss of Rs 2110. “Buy Reliance Industries on dips with strict stoploss of Rs 2110. If this level breaks then the next level could be Rs 2080‐2040. But if the stock holds firmly above Rs 2150‐2160 then see a target of Rs 2190‐2215,” said the technical report.
11:38 am: Gammon Infrastructure Projects Ltd has concluded the purchase of 2,28,77,500 equity shares of Rs.10 each of Vizag Seaport Pvt. Ltd. from International Port Services Pvt Ltd, the investment arm of Portia Management Services Services of UK. The shareholding of Gammon Infra in VSPL stand increased to 73.76%, making VSPL a subsidiary of the company with effect from October 1, 2009. VSPL owns two berths handling bulk cargo at the Visakhapatnam Port and presently handles more than 5 million tonnes of cargo on annualized basis. The concession of the project is for a period of thirty years till end November 2031 Gammon Infra has two other port assets viz. (i) the Indira Container Terminal Private Limited, where the company has 50% equity stake, which is setting up two offshore container berths at the Mumbai Port besides managing the existing Ballard Pier Station Container Terminal: and (ii) the Blue Water Iron Ore Terminal Pvt Ltd, where the company has 31% equity stake, which is setting up a dedicated iron ore berth at the Paradip Port in Orissa.
Despite this news, Gammon Infra shares were down 2.09% at Rs 95.85 on NSE in line with the weak market.
11:20 am: Nirmal Bang has advised traders to buy and hold shares of Adhunik Metaliks. The stock has the potential of hitting Rs 135 in the short term, it says.
“Buy and hold Adhunik Metals as huge delivery based action is being seen. The stock has support at Rs 95-92. If the stock maintains above Rs 110 in the near term then expect a short-term target of Rs 135,” the brokerage said.
11:00 am: Emkay Global Financial Services is of the view that though the daily charts have given a sell signal, short term upside target on Nifty is seen at 5160 and then 5298. “On the daily chart Stochastic oscillator had given sell signal and Nifty had already retraced 50% of the recent rally from 4904 to 5110, thus now Nifty has support at 4982 which is 61.80% of the above mentioned rally. However as mentioned earlier that Nifty is continuously forming Higher tops and Higher bottom and still trading above the short term averages, thus we maintain our short term upside targets 5160 and above that 5298, and we believe that any downside correction will be good buying opportunity. Downside in short term level of 4900 will play as an important support,” the report said.
10:50 am: JIK Industries Ltd informs that the company has paid off its last secured creditor and is totally debt free with respect to secured creditors. The company embarked on a restructuring process after facing difficulty in the year 2004. The company’s total secured debt was to the tune of around Rs. 73 crore in 2005 and in just within 4 years has managed to settle all its secured debts. The company had arrived at settlement of dues with banks and Financial Institutions like Stressed Asset Stabilization Fund, Bank of India, Canara Bank, Life Insurance Corporation of India, Arcil . The company implemented Scheme of Arrangement sanctioned by the Bombay High Court for the value Rs.29.68 crores. The company is now looking to focus on its product line of Crystal Glassware and allied products which fall within the luxury goods industry, where it sees maximum product potential.
However in line with the market weakness, JIK Industries shares were down 0.41% at Rs 24.15 on NSE.
10:40 am: Lupin Ltd has granted Salix Pharmaceuticals Ltd the exclusive rights for the US to its bioadhesive drug delivery technology for us with Rifaximin. Lupin and Salix have entered into an agreement under which the two companies will collaborate in the development and commercialisation of an extended release product incorporating Refaximin and utilising Lupin's proprietary bioadhesive technology. Salix has made a $5 million up-front payment and will make additional regulatory milestone payments to Lupin. In addition, Salix will pay royalties on net sales of the bioadhesive Rifaximin product to Lupin.
This news saw Lupin shares rise by 3.81% at Rs 1,218.05 on NSE. The stock touched a high of Rs 1,232 in trade so far.
10:20 am: Indiabulls Real Estate Ltd's subsidiary, Indiabulls Power Ltd filed a Red Herring Prospectus with the office of the Registrar of Companies, Delhi & Haryana, on October 1 for an Initial Public Offering of equity shares.
This announcement, however, did not move the Indiabulls Real Estate stock much, which was up 0.23% at Rs 264.60 on NSE.
10:05 am: The biggest losers were from the telecom sector following TRAI's ruling that service providers charge users per second instead of the per minute billing system followed now. These included Reliance Communications (-9.07%), Bharti Airtel (-7.91%), Idea Cellular (-7.24%), Tata Communications (-0.64%). The other big losers were BPCL, HDFC Bank, Ambuja Cements, Tata Motors.
10:04 am: Top gainers among the Nifty constituents were Hindalco Industries (3.39%), ITC (2.64%), Sterlite Industries (2.15%), Ranbaxy Laboratories, SAIL, Tata Consultancy Services, Mahindra & Mahindra, ICICI Bank, Hindustan Unilever, Wipro.
9:58 am: The Sensex was trading at 16,956.72, up 90.31 points or 0.54% from Monday. The BSE sensitive index had opened for trade at 16,879.38 versus the previous close of 16,866.41. The 30-share index saw a high of 16,965.53 and low of 16,879.38 in the early minutes.
9:58 am: Indian stock market bounced back on Tuesday, tracking gains on Wall Street and its positive effect on other Asian markets. The Nifty opened flattish at 5003.65 against the previous close of 5003.20 and moved up to 5033.90. The NSE benchmark index traded at 5028.65, up 25.45 points or 0.51%.
Nifty closes above 5000; Hindalco, Reliance Infra up
MUMBAI: Equities pulled back from support levels and ended on a higher note Tuesday. The bounce back was led by FMCG, metals and banks while telecom and realty stocks ended in the red.
National Stock Exchange’s Nifty ended at 5024.75, up 21.55 points or 0.40 per cent. The index touched an intra-day high of 5034.70 and low of 4921.05.
Bombay Stock Exchange’s Sensex was at 16949.31, up 41.35 points or 0.24 per cent. The index touched a high of 16979.06 and low of 16622.05.
BSE Midcap Index was up 0.25 per cent and BSE Smallcap Index slipped 0.8 per cent.
Amongst the sectoral indices, BSE FMCG Index jumped 3.11 per cent, BSE Metal Index gained 2.33 per cent and BSE Bankex moved 1.90 per cent higher.
BSE IT Index declined 1.04 per cent and BSE Realty Index slipped 0.92 per cent.
Shares of telecom companies were under pressure after on reports that the telecom regular TRAI was planning to ask companies to offer ‘pay per second’ billing to customers. This move is likely to intensify price war in telecom companies eventually impacting margins.
Reliance Communications on Monday unveiled its new 50 paise tariff plan called ‘Simply Reliance’ in an attempt to increase its market share in India’s hyper-competitive telecom market. This move comes after Tata DoCoMo’s one-second billing plan and rival Bharti Airtel’s announcement that it will charge 50 paise a minute for local and national long-distance calls within its own network.
Biggest Nifty gainers were Hindalco (6.53%), Reliance Infrastructure (5.17%), Hindustan Unilever (4.77%), ITC (4.02%) and BHEL (3.62%).
Telecom stocks led declines on the Nifty. Bharti Airtel dropped (10.76%), Reliance Communication lost 10.61 per cent and Idea Cellular shed 8.02 per cent. Other losers in the Nifty pack were HCL Technologies (-5.34%), Ambuja Cements (-3.03%) and ACC (-2.8%).
Market breadth was negative on the BSE with 1709 declines and 1012 advances.
National Stock Exchange’s Nifty ended at 5024.75, up 21.55 points or 0.40 per cent. The index touched an intra-day high of 5034.70 and low of 4921.05.
Bombay Stock Exchange’s Sensex was at 16949.31, up 41.35 points or 0.24 per cent. The index touched a high of 16979.06 and low of 16622.05.
BSE Midcap Index was up 0.25 per cent and BSE Smallcap Index slipped 0.8 per cent.
Amongst the sectoral indices, BSE FMCG Index jumped 3.11 per cent, BSE Metal Index gained 2.33 per cent and BSE Bankex moved 1.90 per cent higher.
BSE IT Index declined 1.04 per cent and BSE Realty Index slipped 0.92 per cent.
Shares of telecom companies were under pressure after on reports that the telecom regular TRAI was planning to ask companies to offer ‘pay per second’ billing to customers. This move is likely to intensify price war in telecom companies eventually impacting margins.
Reliance Communications on Monday unveiled its new 50 paise tariff plan called ‘Simply Reliance’ in an attempt to increase its market share in India’s hyper-competitive telecom market. This move comes after Tata DoCoMo’s one-second billing plan and rival Bharti Airtel’s announcement that it will charge 50 paise a minute for local and national long-distance calls within its own network.
Biggest Nifty gainers were Hindalco (6.53%), Reliance Infrastructure (5.17%), Hindustan Unilever (4.77%), ITC (4.02%) and BHEL (3.62%).
Telecom stocks led declines on the Nifty. Bharti Airtel dropped (10.76%), Reliance Communication lost 10.61 per cent and Idea Cellular shed 8.02 per cent. Other losers in the Nifty pack were HCL Technologies (-5.34%), Ambuja Cements (-3.03%) and ACC (-2.8%).
Market breadth was negative on the BSE with 1709 declines and 1012 advances.
FMCG, metals lead rebound; telecom pay the price
MUMBAI: Indian equities pared intraday losses and ended on a positive note Tuesday. Losses in telecom, realty and IT stocks were offset by gains in FMCG, metals and banks.
Market began trade on a positive note but the upmove was shortlived as the indices began to lose ground on sell-off in bluechip telecom companies. Later, sentiments turned bullish as the European markets opened higher and as traders covered shorts neared crucial support levels.
National Stock Exchange’s Nifty ended at 5027.40, up 24.20 points or 0.48 per cent. The index touched an intra-day high of 5034.70 and low of 4921.05.
Bombay Stock Exchange’s Sensex closed at 16,958.54, up 92.13 points or 0.55 per cent. The index touched a high of 16,988.56 and low of 16622.05.
“Market was in oversold zone and may see a bounce back. Nifty is likely to touch 5140 levels in next few days. Majors like Bharti Airtel and Reliance Communications were under pressure and weighed on the indices. We may see some buying emerge in Bharti, midcaps and smallcaps stocks which lagged behind,” said Dharmesh Desai, vice president, Networth Stock Broking.
Reports that telecom regular TRAI is planning to ask companies to introduce ‘pay per second’ billing to customers led to the sharp correction in telecom stocks. If the regulation is passed, it is likely to intensify the price war between telecos eventually impacting their margins.
A few telecom companies have already entered the fray. Reliance Communications on Monday unveiled its new 50 paise tariff plan called ‘Simply Reliance’ in an attempt to increase its market share. This move comes after Tata DoCoMo’s one-second billing plan and rival Bharti Airtel’s announcement that it will charge 50 paise a minute for local and national long-distance calls within its own network.
The BSE Midcap Index, up 0.19 per cent, ended with marginal gains while BSE Smallcap Index fell 0.72 per cent.
Amongst the sectoral indices, BSE FMCG Index jumped 3.27 per cent, BSE Metal Index gained 2.23 per cent and BSE Bankex moved 1.88 per cent higher. BSE IT Index declined 0.62 per cent and BSE Realty Index slipped 0.85 per cent.
Biggest Sensex gainers were Hindalco (6.05%), Hindustan Unilever (5.55%), Reliance Infrastructure (5.17%), ITC (3.52%) and BHEL (3.33%).
Among telecom stocks, Reliance Communication fell 10.64 per cent and Bharti Airtel lost 10.22 per cent. Other losers in the Sensex pack were ACC (-2.07%), Wipro (-1.61%) and Sun Pharmaceuticals (-1.52%).
Market breadth on BSE remained negative with 1,685 declines outnumbering 1,039 advances.
European markets opened higher on hopes of global economic recovery. FTSE 100 was up 0.78 per cent, CAC 40 gained 0.66 per cent and DAX moved 0.78 per cent higher.
US markets are also seen opening higher. At 5 pm IST, Dow Jones futures was up 0.74 per cent, S&P 500 gained 0.92 per cent and Nasdaq 100 moved 0.78 per cent higher.
Market began trade on a positive note but the upmove was shortlived as the indices began to lose ground on sell-off in bluechip telecom companies. Later, sentiments turned bullish as the European markets opened higher and as traders covered shorts neared crucial support levels.
National Stock Exchange’s Nifty ended at 5027.40, up 24.20 points or 0.48 per cent. The index touched an intra-day high of 5034.70 and low of 4921.05.
Bombay Stock Exchange’s Sensex closed at 16,958.54, up 92.13 points or 0.55 per cent. The index touched a high of 16,988.56 and low of 16622.05.
“Market was in oversold zone and may see a bounce back. Nifty is likely to touch 5140 levels in next few days. Majors like Bharti Airtel and Reliance Communications were under pressure and weighed on the indices. We may see some buying emerge in Bharti, midcaps and smallcaps stocks which lagged behind,” said Dharmesh Desai, vice president, Networth Stock Broking.
Reports that telecom regular TRAI is planning to ask companies to introduce ‘pay per second’ billing to customers led to the sharp correction in telecom stocks. If the regulation is passed, it is likely to intensify the price war between telecos eventually impacting their margins.
A few telecom companies have already entered the fray. Reliance Communications on Monday unveiled its new 50 paise tariff plan called ‘Simply Reliance’ in an attempt to increase its market share. This move comes after Tata DoCoMo’s one-second billing plan and rival Bharti Airtel’s announcement that it will charge 50 paise a minute for local and national long-distance calls within its own network.
The BSE Midcap Index, up 0.19 per cent, ended with marginal gains while BSE Smallcap Index fell 0.72 per cent.
Amongst the sectoral indices, BSE FMCG Index jumped 3.27 per cent, BSE Metal Index gained 2.23 per cent and BSE Bankex moved 1.88 per cent higher. BSE IT Index declined 0.62 per cent and BSE Realty Index slipped 0.85 per cent.
Biggest Sensex gainers were Hindalco (6.05%), Hindustan Unilever (5.55%), Reliance Infrastructure (5.17%), ITC (3.52%) and BHEL (3.33%).
Among telecom stocks, Reliance Communication fell 10.64 per cent and Bharti Airtel lost 10.22 per cent. Other losers in the Sensex pack were ACC (-2.07%), Wipro (-1.61%) and Sun Pharmaceuticals (-1.52%).
Market breadth on BSE remained negative with 1,685 declines outnumbering 1,039 advances.
European markets opened higher on hopes of global economic recovery. FTSE 100 was up 0.78 per cent, CAC 40 gained 0.66 per cent and DAX moved 0.78 per cent higher.
US markets are also seen opening higher. At 5 pm IST, Dow Jones futures was up 0.74 per cent, S&P 500 gained 0.92 per cent and Nasdaq 100 moved 0.78 per cent higher.
Monday, October 5, 2009
Indiabulls Power IPO to open Oct 12: Co official
MUMBAI: Indiabulls Power Ltd, a unit of Indiabulls Real Estate, plans to open its initial public offering (IPO) from October 12 to 15, a company official said on Monday.
A senior group official had told Reuters in June the firm was targeting raising 15 billion rupees ($315 million) in equity, and markets have strengthened since then.
According to its draft prospectus released in July, the company plans to issue a maximum of 390.7 million equity shares, including a greenshoe option, constituting 19 percent of its post-issue equity.
Indiabulls Power is currently developing three power plants in western and central India with total capacity of 6,600 megawatts and will use the issue proceeds to fund two of these, said the company official, who has knowledge of the plans but declined to be named.
Indiabulls Real Estate currently holds 71.4 percent in the company. UK-based billionaire L.N. Mittal's LNM India Internet Ventures holds a 10.7 percent stake, while private equity firm FIM Ltd holds the remaining 17.9 percent.
In the past two months, state-run utility NHPC has raised $1.25 billion and private utility Adani Power raised $630 million through IPOs.
Indian firms have raised about $15 billion through share sales in the past six months, encouraged by a share market that has risen 75 percent so far in 2009. India's benchmark index hit a 16-month high last week.
A senior group official had told Reuters in June the firm was targeting raising 15 billion rupees ($315 million) in equity, and markets have strengthened since then.
According to its draft prospectus released in July, the company plans to issue a maximum of 390.7 million equity shares, including a greenshoe option, constituting 19 percent of its post-issue equity.
Indiabulls Power is currently developing three power plants in western and central India with total capacity of 6,600 megawatts and will use the issue proceeds to fund two of these, said the company official, who has knowledge of the plans but declined to be named.
Indiabulls Real Estate currently holds 71.4 percent in the company. UK-based billionaire L.N. Mittal's LNM India Internet Ventures holds a 10.7 percent stake, while private equity firm FIM Ltd holds the remaining 17.9 percent.
In the past two months, state-run utility NHPC has raised $1.25 billion and private utility Adani Power raised $630 million through IPOs.
Indian firms have raised about $15 billion through share sales in the past six months, encouraged by a share market that has risen 75 percent so far in 2009. India's benchmark index hit a 16-month high last week.
Mandhana Industries files papers for IPO with SEBI
NEW DELHI: Textile and garment maker Mandhana Industries has filed draft prospectus with market regulator SEBI for its proposed initial public offer. The company plans to raise funds through public offer to meet its expansion projects and has filed draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI), a company statement said. Mandhana Industries plans to issue 83 lakh equity shares of face value Rs 10 each at a price to be decided later. "The company has placed 6.56 per cent of post-issue fully diluted equity with Axis Bank on a preferential basis to raise Rs 250 crore," it said. Edelweiss Capital and Axis Bank are the lead book managers of the issue that would be through a 100 per cent book building process. Mandhana has textile and garment manufacturing facilities located at Mumbai and Bangalore, respectively. The company plans to raise funds to set up a new garment manufacturing facility and expand its existing yarn dyeing and weaving facility at an estimated capex of Rs 206 crore, it said. |
Eros International plans IPO for its Indian unit
LONDON: AIM-listed integrated studio operator Eros International plc is planning to list its wholly-owned Indian subsidiary on the Bombay Stock Exchange in the current financial year.
Eros International plc, has firmed up its plans to list Eros International Media Ltd, its wholly-owned subsidiary company in India, on the BSE, the company said in a regulatory filing to the London Stock Exchange.
"It is expected that the transaction would conclude within the current financial year ended March 2010," the filing added.
Enam, Kotak and RBS (Royal Bank of Scotland) has been appointed to act on the Indian IPO.
"It is currently intended that any new funds raised by Eros India in the Indian IPO will not result in a dilution of the company's ownership in excess of 25 per cent," the company said.
The company has also made a few changes in its management and has appointed A P Parigi as Group CEO for the Indian operations and Naresh Chandra as the Non-Executive Chairman of the Indian Board.
"It is expected that the intended IPO and the recent appointments, would drive the group's growth and consolidation within India," the company said.
Eros International plc, has firmed up its plans to list Eros International Media Ltd, its wholly-owned subsidiary company in India, on the BSE, the company said in a regulatory filing to the London Stock Exchange.
"It is expected that the transaction would conclude within the current financial year ended March 2010," the filing added.
Enam, Kotak and RBS (Royal Bank of Scotland) has been appointed to act on the Indian IPO.
"It is currently intended that any new funds raised by Eros India in the Indian IPO will not result in a dilution of the company's ownership in excess of 25 per cent," the company said.
The company has also made a few changes in its management and has appointed A P Parigi as Group CEO for the Indian operations and Naresh Chandra as the Non-Executive Chairman of the Indian Board.
"It is expected that the intended IPO and the recent appointments, would drive the group's growth and consolidation within India," the company said.
SEBI norms may foil promoters' stake sale tricks
MUMBAI: The tricky issue of promoter control will resurface in Corporate India for firms which are listed on overseas stock exchanges.
Recently, the capital market regulator, SEBI, tweaked the rules to bring ADR/GDRs — securities or foreign depository receipts issued to overseas investors against stocks issued by Indian companies — under the takeover code. The rule, however, applies to ADR/GDRs where the holders of the securities are entitled to exercise voting rights on the shares underlying the receipts.
What this simply means is that any foreign investor holding ADRs/GDRs with voting rights will have to make an open offer to public shareholders, if the holding touches the 15% limit — just as it applies to any local investor buying shares in the local market.
Recently, the capital market regulator, SEBI, tweaked the rules to bring ADR/GDRs — securities or foreign depository receipts issued to overseas investors against stocks issued by Indian companies — under the takeover code. The rule, however, applies to ADR/GDRs where the holders of the securities are entitled to exercise voting rights on the shares underlying the receipts.
What this simply means is that any foreign investor holding ADRs/GDRs with voting rights will have to make an open offer to public shareholders, if the holding touches the 15% limit — just as it applies to any local investor buying shares in the local market.
Investors may play it safe as Q2 results near
MUMBAI: Even though local stocks escaped a US market-led selloff on Friday, thanks to a holiday, investors have turned more cautious about the near-term outlook of Indian equities, ahead of the September quarter earnings starting this week. With the wider consensus terming current stock prices as “not cheap”, there are concerns that the impact of disappointments in the July-September results on the broader market.
“Stock valuations are neither cheap nor very expensive, based on the next year’s Sensex EPS (earnings per share) of Rs 1,200,” said Bharti AXA Investment Managers equity-head Prateek Agrawal. “Even if there is a correction, it should not be more than 6-7%,” he added. Shares of UltraTech Cement are expected to rise further on Monday, but gains could be limited by the fact that Grasim Industries will not be transferring its cement business to UltraTech immediately. The stock had closed at Rs 848.90 on Thursday, up 6% over the previous close amid heavy volumes.
Software exporter Infosys Technologies will flag off the results season for this quarter among large companies this Friday. Shares of software exporters, which outperformed benchmark indices last week, may rise further this week on hopes that Infosys, which is known for a conservative approach in guiding the market on its future prospects, would surprise the Street on the quarter’s earnings, revenue guidance and business outlook. Last week, NSE’s IT index rose 5.5%, while the Nifty gained 2.5%.
In the same period, US indices shed close to 2%, after weaker-than-expected readings on jobless claims there on Thursday sparked worries about whether the economic recovery is real or not, even as the International Monetary Fund (IMF) painted a more optimistic outlook on the global economy.
Back home, institutional desks are abuzz with talks about a possible selloff by hedge funds in emerging market equities, including India, over the next couple of weeks. Market participants said the likely hedge fund-selling would be to meet redemptions from clients, as the one-year freeze on redemptions is lifted later this month. Many hedge funds had suspended redemptions in October last year, following the market slump triggered by Lehman Brothers’ failure.
“Many hedge funds had put a one-year moratorium on withdrawals in October last year to prevent further damage to their asset value then,” said Religare Securities president-equities Amitabh Chakraborty. “Now, that every thing is stable and most of them have recovered their money, there could be some redemptions in the fourth week of October,” he added.
Some brokers rule out the possibility of a concentrated hedge fund-selling, led by redemptions, as clients have withdrawn money from them consistently over many months. “While some hedge funds had placed a one-year freeze, there have been many, which inserted clauses of fixed-term withdrawals or six-nine months freeze,” said a senior official with a leading institutional brokerage.
“Stock valuations are neither cheap nor very expensive, based on the next year’s Sensex EPS (earnings per share) of Rs 1,200,” said Bharti AXA Investment Managers equity-head Prateek Agrawal. “Even if there is a correction, it should not be more than 6-7%,” he added. Shares of UltraTech Cement are expected to rise further on Monday, but gains could be limited by the fact that Grasim Industries will not be transferring its cement business to UltraTech immediately. The stock had closed at Rs 848.90 on Thursday, up 6% over the previous close amid heavy volumes.
Software exporter Infosys Technologies will flag off the results season for this quarter among large companies this Friday. Shares of software exporters, which outperformed benchmark indices last week, may rise further this week on hopes that Infosys, which is known for a conservative approach in guiding the market on its future prospects, would surprise the Street on the quarter’s earnings, revenue guidance and business outlook. Last week, NSE’s IT index rose 5.5%, while the Nifty gained 2.5%.
In the same period, US indices shed close to 2%, after weaker-than-expected readings on jobless claims there on Thursday sparked worries about whether the economic recovery is real or not, even as the International Monetary Fund (IMF) painted a more optimistic outlook on the global economy.
Back home, institutional desks are abuzz with talks about a possible selloff by hedge funds in emerging market equities, including India, over the next couple of weeks. Market participants said the likely hedge fund-selling would be to meet redemptions from clients, as the one-year freeze on redemptions is lifted later this month. Many hedge funds had suspended redemptions in October last year, following the market slump triggered by Lehman Brothers’ failure.
“Many hedge funds had put a one-year moratorium on withdrawals in October last year to prevent further damage to their asset value then,” said Religare Securities president-equities Amitabh Chakraborty. “Now, that every thing is stable and most of them have recovered their money, there could be some redemptions in the fourth week of October,” he added.
Some brokers rule out the possibility of a concentrated hedge fund-selling, led by redemptions, as clients have withdrawn money from them consistently over many months. “While some hedge funds had placed a one-year freeze, there have been many, which inserted clauses of fixed-term withdrawals or six-nine months freeze,” said a senior official with a leading institutional brokerage.
In October, Sensex down 11 times in 18 years
COIMBATORE: After a spectacular September, which saw Sensex clocking more than 9% returns, will the markets usher in a crackling festival bonanza? While there has been much talk about "valuations getting stretched" and a "correction", October hasn't really been an exciting month for Sensex in the past.
The Sensex has given negative returns in nearly two out of three occasions since 1991 when the economy opened up. The benchmark index has declined in 11 out of 18 years in October, data with BSE and domestic brokerage firm Anand Rathi financial services shows.
"October would be (a) volatile (month). But even if there is a correction it will not be big," reckons Ajay Parmar, head, research, Emkay Global financial services. "Markets have fallen most of the times either before or after Diwali in the past 15 years," says D D Sharma, senior vice-president , research, Anand Rathi.
The onset of the festival season and the announcement of corporate results act as a trigger for booking profits, he explains. "Barring some pockets of undervaluations, most of the large cap segment is fully valued discounting (2010-11) earnings expectations." Investors get into the exit mode when the results start trickling in and make a re-entry once the earnings get fully reflected ,” say market observers.
Though observers expect the quarter-ending September to be strong as advance tax payments have been buoyant, some believe earnings might lose steam after the festival season gets over.
The Sensex has given negative returns in nearly two out of three occasions since 1991 when the economy opened up. The benchmark index has declined in 11 out of 18 years in October, data with BSE and domestic brokerage firm Anand Rathi financial services shows.
"October would be (a) volatile (month). But even if there is a correction it will not be big," reckons Ajay Parmar, head, research, Emkay Global financial services. "Markets have fallen most of the times either before or after Diwali in the past 15 years," says D D Sharma, senior vice-president , research, Anand Rathi.
The onset of the festival season and the announcement of corporate results act as a trigger for booking profits, he explains. "Barring some pockets of undervaluations, most of the large cap segment is fully valued discounting (2010-11) earnings expectations." Investors get into the exit mode when the results start trickling in and make a re-entry once the earnings get fully reflected ,” say market observers.
Though observers expect the quarter-ending September to be strong as advance tax payments have been buoyant, some believe earnings might lose steam after the festival season gets over.
Ultra Tech climbs 4.39 pc on BSE
MUMBAI: Cement manufacturer Ultra Tech on Monday climbed 4.39 per cent on the Bombay Stock Exchange after Aditya Birla group said it would consolidate its cement businesses by merging Grasim cement with Ultra Tech.
Shares of Ultra Tech Cement surged 4.39 per cent to Rs 886.25 on BSE. The scrip climbed 5.54 per cent to Rs 896 on the National Stock Exchange.
The group, which had acquired Ultra Tech from engineering giant L&T in 2004, said, on Saturday, it would hive-off Grasim cement into Samruddhi, a wholly-owned subsidiary. The demerged entity would be listed and then merged with UltraTech.
Meanwhile, Grasim Industries declined by 7.73 per cent to Rs 2,492 on BSE.
On the NSE the scrip fell by 7.49 per cent to Rs 2,490.
Shares of Ultra Tech Cement surged 4.39 per cent to Rs 886.25 on BSE. The scrip climbed 5.54 per cent to Rs 896 on the National Stock Exchange.
The group, which had acquired Ultra Tech from engineering giant L&T in 2004, said, on Saturday, it would hive-off Grasim cement into Samruddhi, a wholly-owned subsidiary. The demerged entity would be listed and then merged with UltraTech.
Meanwhile, Grasim Industries declined by 7.73 per cent to Rs 2,492 on BSE.
On the NSE the scrip fell by 7.49 per cent to Rs 2,490.
City Union Bank to raise Rs 300 cr via QIP route
| MUMBAI: City Union Bank will raise Rs 300 crore by way of private placement of shares with qualified institutional buyers. Shareholders of the bank in August had approved a proposal to raise Rs 300 crore by allotting shares to potential buyers, City Union Bank said in a filing to the Bombay Stock Exchange today. The proposed private placement would be completed within 12 months from the date of the resolution passed, the filing added. Shares of City Union Bank were trading at Rs 29.65 on the BSE, down 1.50 per cent from previous close. |
Sunday, October 4, 2009
BSE India Report for the next trading day after 01 October 2009
BSE India Report for the next trading day after 01 October 2009
Forthcoming Week Key Events which will Drive Indian Market
Forthcoming Week Key Events which will Drive Indian Market
As we write this report the stocks have taken a dip worldwide as September jobs report has disappointed as US government reported that more jobs were lost in September than had been expected. The Labor Department reported that employers cut 263,000 jobs last month, up from 201,000 in August and worse than the 180,000 losses economists were expecting.The unemployment rate rose to 9.8 percent, in line with forecasts.
However as a strategy in stock market people are buying in the dips and will be selling in any kind of rallies.
Key events for the forthcoming week
Key events for the forthcoming week Date Time Indian Standard Time (IST)
US employment report 02 Oct 6 PM (Report Released)
Bank of England interest rate decision 08 Oct 4:30 PM
ECB interest rate decision 08 Oct 7:30 PM
Jobless Data
Jobless Americans climb to 551,000 in September 2009
Jobless rate in Europe touches 10 years high
Thus it makes sense to track these data as it affects the performance of Indian market and we will be seeing action at NSE and BSE after a full 3 days break and thus it will make sense to watch the market for first 5 minutes to identify the trend of the market. RSI for Nifty is near 70.34 and as a strategy one can short when the Nifty RSI falls below 70 level and this is applicable for an uptrending market.
As we write this report the stocks have taken a dip worldwide as September jobs report has disappointed as US government reported that more jobs were lost in September than had been expected. The Labor Department reported that employers cut 263,000 jobs last month, up from 201,000 in August and worse than the 180,000 losses economists were expecting.The unemployment rate rose to 9.8 percent, in line with forecasts.
However as a strategy in stock market people are buying in the dips and will be selling in any kind of rallies.
Key events for the forthcoming week
Key events for the forthcoming week Date Time Indian Standard Time (IST)
US employment report 02 Oct 6 PM (Report Released)
Bank of England interest rate decision 08 Oct 4:30 PM
ECB interest rate decision 08 Oct 7:30 PM
Jobless Data
Jobless Americans climb to 551,000 in September 2009
Jobless rate in Europe touches 10 years high
Thus it makes sense to track these data as it affects the performance of Indian market and we will be seeing action at NSE and BSE after a full 3 days break and thus it will make sense to watch the market for first 5 minutes to identify the trend of the market. RSI for Nifty is near 70.34 and as a strategy one can short when the Nifty RSI falls below 70 level and this is applicable for an uptrending market.
Thursday, July 16, 2009
how to trade shares?
Every transaction in the stock exchange is carried out through licensed members called brokers.
To trade in shares, you have to approach a broker However, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders.
The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it .
To trade in shares, you have to approach a broker However, since most stock exchange brokers deal in very high volumes, they generally do not entertain small investors. These brokers have a network of sub-brokers who provide them with orders.
The general investors should identify a sub-broker for regular trading in shares and palce his order for purchase and sale through the sub-broker. The sub/broker will transmit the order to his broker who will then execute it .
What is share?
Share is a document issued by a company, which entitles(Right) its holder to be one of the owners of the company.It can also called as stock.A share is issued by a company or can be purchased from the stock market.
What is the Stock Market?
The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace (virtual or real). The exchanges provide real-time trading information on the listed securities, facilitating price discovery.
Exchange place or a market that facilitates the trading of stocks. People participating in the stock markets range from some casual traders and investors who trade as a hobby, to large fund traders.
In India the most famous exchanges or markets are the Bombay Stock Exchange(BSE) and the National Stock Exchange (NSE). Globally there are many markets including the famous New York Stock (NYSE), NASDAQ, London Stock Exchange, Hong Kong Stock Exchange etc..
Any market can be thought of with two functionalities:
Primary Market: Here the companies and industries raise long term funds for their operations by issuing shares. Companies come up with an initial price, mostly with premium for the face value of the shares, which will be distributed to the investors. This is called the Initial Public Offer or the IPO.
Secondary Market : After a Company has finished its IPO, it is listed in the markets. After getting listed and issued shares to investors, the shares can then be sold to other investors in the stockmarket. Here the people can buy the shares at a current price as determined by other investors in the market.
Exchange place or a market that facilitates the trading of stocks. People participating in the stock markets range from some casual traders and investors who trade as a hobby, to large fund traders.
In India the most famous exchanges or markets are the Bombay Stock Exchange(BSE) and the National Stock Exchange (NSE). Globally there are many markets including the famous New York Stock (NYSE), NASDAQ, London Stock Exchange, Hong Kong Stock Exchange etc..
Any market can be thought of with two functionalities:
Primary Market: Here the companies and industries raise long term funds for their operations by issuing shares. Companies come up with an initial price, mostly with premium for the face value of the shares, which will be distributed to the investors. This is called the Initial Public Offer or the IPO.
Secondary Market : After a Company has finished its IPO, it is listed in the markets. After getting listed and issued shares to investors, the shares can then be sold to other investors in the stockmarket. Here the people can buy the shares at a current price as determined by other investors in the market.
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