Crude oil fell for a second day in New York after declining the most since March yesterday as record prices reduced demand for gasoline and jet fuel.
U.S. fuel demand declined 0.7 percent to 20.5 million barrels a day in the four weeks ended May 23 from a year ago, the Energy Department said yesterday. The dollar headed for a second monthly advance against the euro and the yen, dimming the appeal of commodities as an inflation hedge.
Crude oil for July delivery fell as much as $1.95, or 1.5 percent, to $124.67 a barrel in electronic trading on the New York Mercantile Exchange. It traded at $125.30 at 8:48 a.m. London time.
Yesterday, the contract declined $4.41, or 3.4 percent, to settle at $126.62 a barrel, the lowest close since May 16 and the biggest drop since March 31. Futures reached a record $135.09 May 22.
Brent crude oil for July settlement fell as much as $1.89, or 1.5 percent to $125 a barrel on London's ICE Futures Europe exchange, and traded at $125.55 at 8:49 a.m. London time. The contract touched a record $135.14 on May 22.
U.S. crude oil inventories fell 8.88 million barrels to 311.6 million last week, the Energy Department reported yesterday. It was the biggest drop since Sept. 17, 2004, when Hurricane Ivan forced the closure of U.S. oil platforms in the Gulf of Mexico. The decline was caused by ``temporary delays'' in unloading tankers, the department said.
Gasoline demand last week was 1.2 percent lower than the same week last year, the U.S. Energy Department report yesterday showed. Stockpiles fell 1.6 percent to 206.2 million barrels as refiners kept processing below year-earlier rates.
Friday, May 30, 2008
Inflation at 8.1% for week ended May 17
The government's administrative and fiscal measures failed to have the desired effect on soaring prices as inflation for the week ended May 17 moved up sharply to 8.1 per cent.
Announcing the figure on Friday, Finance Minister P Chidambaram expressed confidence that the government would be able to soon rein the inflation in.
"It is worrisome, but we are confident of gaining mastery over inflation," he said.
The finance minister added that authorities may take more steps to control inflation if needed.
Inflation was pegged at 7.82 per cent for the week ended May 10, compared with 7.83 per cent and 7.61 per cent for the week ended May 3 and April 26, respectively.
Announcing the figure on Friday, Finance Minister P Chidambaram expressed confidence that the government would be able to soon rein the inflation in.
"It is worrisome, but we are confident of gaining mastery over inflation," he said.
The finance minister added that authorities may take more steps to control inflation if needed.
Inflation was pegged at 7.82 per cent for the week ended May 10, compared with 7.83 per cent and 7.61 per cent for the week ended May 3 and April 26, respectively.
Orchid Chemicals' Q4 profit down by 34.69%
Orchid Chemicals & Pharmaceuticals, one of the leading drugmakers, reported a steep drop in standalone net profit for the fourth quarter ended March 2008, due to substantial rise operating cost. During the quarter, the profit of the company declined 34.69% to Rs 158.48 million from Rs 242.67 million in the same quarter, last year.
Net sales for the quarter surged 52.90% to Rs 3,791.94 million, while total income for the quarter jumped 52.85% to Rs 3,795.29 million, when compared with the prior year period. It reported earnings of Rs 2.41 a share during the quarter, registering 34.69% decline over prior year period.
During the quarter, the operating margin of the company decreased to 18.27% compared with 30.70% in previous year period.
Annual Results
For the financial year 2008, the company announced a phenomenal rise in standalone net profit. During the year, the profit of the company surged 90.97% to Rs 1,845.36 million from Rs 966.32 million in the last year.
Net sales for the year climbed 32.62% to Rs 12,389.16 million, while total income during the year rose 32.53% to Rs 12,401.58 million, when compared with the prior year. It posted earnings of Rs 28.03 a share during the year, registering 90.68% growth over last year.
During the year, the company announced a rise in operating margin of 256.27 basis points to 33.59% on lower input cost. Interest cost decreased 17.48% to Rs 811.26 million while depreciation cost rose 18.43% to Rs 976.68 million over previous year.
Dividend
The board of directors has recommended a dividend of 30%, or Rs 3 a share on the equity share of Rs 10 each.
Shares of the company declined Rs 4.5, or 1.79%, to trade at Rs 246.35. The total volume of shares traded was 1,409,960 at the BSE. (3.31 p.m., Thursday)
Net sales for the quarter surged 52.90% to Rs 3,791.94 million, while total income for the quarter jumped 52.85% to Rs 3,795.29 million, when compared with the prior year period. It reported earnings of Rs 2.41 a share during the quarter, registering 34.69% decline over prior year period.
During the quarter, the operating margin of the company decreased to 18.27% compared with 30.70% in previous year period.
Annual Results
For the financial year 2008, the company announced a phenomenal rise in standalone net profit. During the year, the profit of the company surged 90.97% to Rs 1,845.36 million from Rs 966.32 million in the last year.
Net sales for the year climbed 32.62% to Rs 12,389.16 million, while total income during the year rose 32.53% to Rs 12,401.58 million, when compared with the prior year. It posted earnings of Rs 28.03 a share during the year, registering 90.68% growth over last year.
During the year, the company announced a rise in operating margin of 256.27 basis points to 33.59% on lower input cost. Interest cost decreased 17.48% to Rs 811.26 million while depreciation cost rose 18.43% to Rs 976.68 million over previous year.
Dividend
The board of directors has recommended a dividend of 30%, or Rs 3 a share on the equity share of Rs 10 each.
Shares of the company declined Rs 4.5, or 1.79%, to trade at Rs 246.35. The total volume of shares traded was 1,409,960 at the BSE. (3.31 p.m., Thursday)
Oil Loses More Than $4 as Fuel Demand Declines, closes at 126$ per barrel
Crude oil was little changed in New York after falling more than $4 a barrel yesterday, the biggest drop since March, on signs that record prices will prompt U.S. consumers to reduce fuel purchases.
Fuel consumption averaged 20.5 million barrels a day in the four weeks ended May 23, down 0.7 percent from a year earlier, the Energy Department said yesterday. The dollar reached a three-month high against the yen as U.S. stocks gained, brightening the economic outlook of the world's biggest energy consuming country and diminishing oil's appeal as a hedge.
Crude oil for July delivery fell 29 cents, or 0.2 percent, to $126.33 a barrel at 9 a.m. Sydney time in after-hours trading on the New York Mercantile Exchange. Yesterday, oil plunged $4.41, or 3.4 percent, to settle at $126.62 a barrel, the lowest close since May 16. It was the biggest drop since March 31. Futures reached a record $135.09 on May 22. Prices have more than doubled over the past year.
Crude oil inventories declined 8.88 million barrels to 311.6 million last week, the department reported. It was the biggest drop since Sept. 17, 2004 when Hurricane Ivan forced the closure of U.S. oil platforms in the Gulf of Mexico.
U.S. gasoline demand dropped 5.5 percent last week as prices at the pump reached records, according to MasterCard Inc., the second-biggest credit-card company.
Indonesia, Taiwan, Sri Lanka and Pakistan have decided to raise fuel prices as the cost of subsidies mounts, and Malaysia plans to announce a revision to its subsidies on May 30. India's Oil Secretary M.S. Srinivasan said higher domestic gasoline and diesel prices are inevitable because of rising global prices.
Brent crude oil for July settlement declined $4.04, or 3.1 percent yesterday, to settle at $126.89 a barrel on London's ICE Futures Europe exchange. The contract touched a record $135.14 on May 22.
The dollar's strength and the outlook for higher U.S. interest rates are putting pressure on prices.
Fuel consumption averaged 20.5 million barrels a day in the four weeks ended May 23, down 0.7 percent from a year earlier, the Energy Department said yesterday. The dollar reached a three-month high against the yen as U.S. stocks gained, brightening the economic outlook of the world's biggest energy consuming country and diminishing oil's appeal as a hedge.
Crude oil for July delivery fell 29 cents, or 0.2 percent, to $126.33 a barrel at 9 a.m. Sydney time in after-hours trading on the New York Mercantile Exchange. Yesterday, oil plunged $4.41, or 3.4 percent, to settle at $126.62 a barrel, the lowest close since May 16. It was the biggest drop since March 31. Futures reached a record $135.09 on May 22. Prices have more than doubled over the past year.
Crude oil inventories declined 8.88 million barrels to 311.6 million last week, the department reported. It was the biggest drop since Sept. 17, 2004 when Hurricane Ivan forced the closure of U.S. oil platforms in the Gulf of Mexico.
U.S. gasoline demand dropped 5.5 percent last week as prices at the pump reached records, according to MasterCard Inc., the second-biggest credit-card company.
Indonesia, Taiwan, Sri Lanka and Pakistan have decided to raise fuel prices as the cost of subsidies mounts, and Malaysia plans to announce a revision to its subsidies on May 30. India's Oil Secretary M.S. Srinivasan said higher domestic gasoline and diesel prices are inevitable because of rising global prices.
Brent crude oil for July settlement declined $4.04, or 3.1 percent yesterday, to settle at $126.89 a barrel on London's ICE Futures Europe exchange. The contract touched a record $135.14 on May 22.
The dollar's strength and the outlook for higher U.S. interest rates are putting pressure on prices.
Wednesday, May 28, 2008
Visa Steel gains on strong quarterly earnings
The small-cap company had outperformed the market over the past one month till 27 May 2008, gaining 21.75% compared to the Sensex`s decline of 4.35%. It had also outperformed the market in the past one quarter, rising 20.63% compared to Sensex`s decline of 8.70%.
The company`s current equity is Rs 110.24 crore. Face value per share is Rs 10.
The current price of Rs 60.65 discounts its Q3 December 2007 annualised EPS of Rs 4.94, by a PE multiple of 12.28.
Visa Steel`s net profit rose 110% to Rs 43.15 crore on 27% growth in total income to Rs 682.81 crore in the year ended March 2008 (FY 2008) over the year ended March 2007 (FY 2007).
The company manufactures pig iron and chrome concentrates. The group operates in two segments namely manufacturing and trading. The manufacturing facilities are in Kalinganagar and Golagoan in Orissa.
The company`s current equity is Rs 110.24 crore. Face value per share is Rs 10.
The current price of Rs 60.65 discounts its Q3 December 2007 annualised EPS of Rs 4.94, by a PE multiple of 12.28.
Visa Steel`s net profit rose 110% to Rs 43.15 crore on 27% growth in total income to Rs 682.81 crore in the year ended March 2008 (FY 2008) over the year ended March 2007 (FY 2007).
The company manufactures pig iron and chrome concentrates. The group operates in two segments namely manufacturing and trading. The manufacturing facilities are in Kalinganagar and Golagoan in Orissa.
Mahindra & Mahindra takes weak Q4 results in its stride
The large-cap scrip had outperformed the market over the past one month till 27 May 2008, rising 1.46% compared to the Sensex`s decline of 4.35%. It had also outperformed the market in the past one quarter, sliding 2.14% compared to Sensex`s decline of 8.70%.
The company`s current equity is Rs 245.74 crore. Face value per share is Rs 10.
The current price of Rs 641 discounts its Q3 December 2007 annualised EPS of Rs 67.79, by a PE multiple of 9.45.
The fall in quarterly net profit was due to rise in price of raw materials such as steel. Mahindra & Mahindra (M&M)`s total income rose 15.18% to Rs 3175.45 crore in Q4 March 2008 over Q4 March 2007.
Mahindra & Mahindra posted 1.45% rise in net profit to Rs 1103.37 crore on 14.19% increase in total income to Rs 11671.64 crore in the year ended March 2008 over the year ended March 2007. On consolidated basis, the group`s net profit after minority interest rose 4.94% to Rs 1571.12 crore on 36.80% increase in total income to Rs 24445.29 crore in the year ended March 2008 over year ended March 2007.
On 9 May 2008, Mahindra & Mahindra hiked vehicle prices in the range of 1.5% to 2.5% due to rise in input costs. The price hike came into effect from 19 May 2008.
The company is engaged in manufacturing and distributing automobiles and farm equipment.
The company`s current equity is Rs 245.74 crore. Face value per share is Rs 10.
The current price of Rs 641 discounts its Q3 December 2007 annualised EPS of Rs 67.79, by a PE multiple of 9.45.
The fall in quarterly net profit was due to rise in price of raw materials such as steel. Mahindra & Mahindra (M&M)`s total income rose 15.18% to Rs 3175.45 crore in Q4 March 2008 over Q4 March 2007.
Mahindra & Mahindra posted 1.45% rise in net profit to Rs 1103.37 crore on 14.19% increase in total income to Rs 11671.64 crore in the year ended March 2008 over the year ended March 2007. On consolidated basis, the group`s net profit after minority interest rose 4.94% to Rs 1571.12 crore on 36.80% increase in total income to Rs 24445.29 crore in the year ended March 2008 over year ended March 2007.
On 9 May 2008, Mahindra & Mahindra hiked vehicle prices in the range of 1.5% to 2.5% due to rise in input costs. The price hike came into effect from 19 May 2008.
The company is engaged in manufacturing and distributing automobiles and farm equipment.
New project generates interest in SREI Infrastructure Finance
The company made this announcement during trading hours today, 28 May 2008.
Meanwhile, the BSE Sensex was up 246.63 points, or 1.52%, to 16,522.22, after a sharp fall in crude oil prices lifted US stocks on Tuesday, 27 May 2008.
On BSE, 18,508 shares were traded in the counter. The scrip had an average daily volume of 99,196 shares in the past one quarter.
The stock hit a high of Rs 148 and a low of Rs 141 so far during the day. The stock had a 52-week high of Rs 292 on 2 January 2008 and the stock hit a 52-week low of Rs 58.05 on 28 May 2007.
The mid-cap company had outperformed the market over the past one month till 27 May 2008, gaining 0.07% compared to the Sensex`s decline of 4.35%. It had underperformed the market in the past one quarter, declining 18.21% compared to Sensex`s decline of 8.70%.
The company`s current equity is Rs 116.14 crore. Face value per share is Rs 10.
The current price of Rs 144 discounts its Q3 December 2007 annualised EPS of Rs 10.40, by a PE multiple of 13.85.
SREI Infrastructure Finance`s net profit rose 58.3% to Rs 28.36 crore on 85.6% increase in net sales to Rs 173.56 crore in Q3 December 2007 over Q3 December 2006.
The company`s principal activity is to provide finance for infrastructure, construction and mining equipment, infrastructure projects and renewable energy systems. It also provides insurance products, investment banking, capital market services, venture capital, foreign exchange services and retail financing services.
Meanwhile, the BSE Sensex was up 246.63 points, or 1.52%, to 16,522.22, after a sharp fall in crude oil prices lifted US stocks on Tuesday, 27 May 2008.
On BSE, 18,508 shares were traded in the counter. The scrip had an average daily volume of 99,196 shares in the past one quarter.
The stock hit a high of Rs 148 and a low of Rs 141 so far during the day. The stock had a 52-week high of Rs 292 on 2 January 2008 and the stock hit a 52-week low of Rs 58.05 on 28 May 2007.
The mid-cap company had outperformed the market over the past one month till 27 May 2008, gaining 0.07% compared to the Sensex`s decline of 4.35%. It had underperformed the market in the past one quarter, declining 18.21% compared to Sensex`s decline of 8.70%.
The company`s current equity is Rs 116.14 crore. Face value per share is Rs 10.
The current price of Rs 144 discounts its Q3 December 2007 annualised EPS of Rs 10.40, by a PE multiple of 13.85.
SREI Infrastructure Finance`s net profit rose 58.3% to Rs 28.36 crore on 85.6% increase in net sales to Rs 173.56 crore in Q3 December 2007 over Q3 December 2006.
The company`s principal activity is to provide finance for infrastructure, construction and mining equipment, infrastructure projects and renewable energy systems. It also provides insurance products, investment banking, capital market services, venture capital, foreign exchange services and retail financing services.
Tata Motors accelerates on rights issue plan
The results hit the market a little while ago
On BSE, 1.93 shares were traded in the counter. The scrip had an average daily volume of 1.80 lakh shares in the past one quarter.
The stock hit a high of Rs 644 and a low of Rs 612 during the day. The stock had a 52-week high of Rs 840 on 12 October 2007 and a 52-week low of Rs 535 on 22 January 2008.
The large-cap scrip had outperformed the market over the past one month till 27 May 2008, declining 1.96% compared to the Sensex`s decline of 4.35%. However it underperformed the market in the past one quarter, sliding 11.43% compared to Sensex`s decline of 8.70%.
The company`s current equity is Rs 385.55 crore. Face value per share is Rs 10.
The current price of Rs 641.55 discounts its Q3 December 2007 EPS of Rs 51.78, by a PE multiple of 12.38.
However Tata Motors` consolidated net profit slipped 0.10% to Rs 2167.70 crore on 10.47% rise in total income to Rs 35918.96 crore in full year ended March 2008 over full year ended March 2007.
Tata Motors also announced plan to raise about Rs 7,200 crore through three simultaneous but unlinked rights issues to be used for financing the Jaguar-Land Rover acquisition.
The three simultaneous rights issue equity include rights issue of upto Rs 2,200 crore; rights issue of `A` equity shares carrying differential voting rights (1 vote for every 10 `A` equity shares) upto Rs 2,000 crore and a rights issue of 5-year 0.5% convertible preference shares (CCPs) upto Rs 3000 crore, optionally convertible into `A` equity shares after 3 years but before 5 years from the date of allotment.
The company said that after the above-mentioned issues, the company`s total equity capital is estimated to increase by about 30% to 35% during the current financial year.
In March 2008, the company signed an agreement with Ford Motor Company for buying two iconic British auto brands - Jaguar and Land Rover for $2.3 billion.
Tata Motors is engaged in manufacturing and marketing heavy, medium and light commercial vehicles, utility vehicles and passenger cars.
On BSE, 1.93 shares were traded in the counter. The scrip had an average daily volume of 1.80 lakh shares in the past one quarter.
The stock hit a high of Rs 644 and a low of Rs 612 during the day. The stock had a 52-week high of Rs 840 on 12 October 2007 and a 52-week low of Rs 535 on 22 January 2008.
The large-cap scrip had outperformed the market over the past one month till 27 May 2008, declining 1.96% compared to the Sensex`s decline of 4.35%. However it underperformed the market in the past one quarter, sliding 11.43% compared to Sensex`s decline of 8.70%.
The company`s current equity is Rs 385.55 crore. Face value per share is Rs 10.
The current price of Rs 641.55 discounts its Q3 December 2007 EPS of Rs 51.78, by a PE multiple of 12.38.
However Tata Motors` consolidated net profit slipped 0.10% to Rs 2167.70 crore on 10.47% rise in total income to Rs 35918.96 crore in full year ended March 2008 over full year ended March 2007.
Tata Motors also announced plan to raise about Rs 7,200 crore through three simultaneous but unlinked rights issues to be used for financing the Jaguar-Land Rover acquisition.
The three simultaneous rights issue equity include rights issue of upto Rs 2,200 crore; rights issue of `A` equity shares carrying differential voting rights (1 vote for every 10 `A` equity shares) upto Rs 2,000 crore and a rights issue of 5-year 0.5% convertible preference shares (CCPs) upto Rs 3000 crore, optionally convertible into `A` equity shares after 3 years but before 5 years from the date of allotment.
The company said that after the above-mentioned issues, the company`s total equity capital is estimated to increase by about 30% to 35% during the current financial year.
In March 2008, the company signed an agreement with Ford Motor Company for buying two iconic British auto brands - Jaguar and Land Rover for $2.3 billion.
Tata Motors is engaged in manufacturing and marketing heavy, medium and light commercial vehicles, utility vehicles and passenger cars.
Asian Markets Slips into Red as Crude Oil Mark its Retreat
Most of the Asian indices gave up their early gains to slip into the red as a retreat in crude-oil prices hurt energy stocks in Tokyo, Sydney and in Hong Kong.
Oil continued to fall following Tuesday`s sell-off as investors took profits after last week`s record highs and amid fears over slowing crude demand from the world`s biggest energy consumer, the U.S.
The high prices at the pump may curb U.S. consumers` demand for gasoline going into the usually peak-demand summer driving season. Figures released Tuesday show U.S. consumer confidence has dipped to its lowest level since 1992.
Signs are also emerging that high prices are starting to affect demand in Europe and key emerging Asian economies.
The crude oil prices, which touched a record high of $135.09 a barrel last week, dropped in electronic trading after profit-taking dragged the front-month July contract $3.34 down to $128.85 a barrel in a regular session overnight on the New York Mercantile Exchange. At 9:41 a.m., New York-traded West Texas Intermediate crude for July delivery was down $1.74 at $127.13 a barrel. In London, Brent crude for July delivery was down $1.41 at $126.90 a barrel, having hit a record high of $135.14 last week.
The Asian markets, the Nikkei 225 Average dropped 1.3% to 13,709.44 and the broader Topix index fell 1.4% to 1,348.69, unable to sustain early gains.
In Sydney, the S&P/ASX 200 shed 1.2% to 5,648.10. On the economic front, the Westpac-Melbourne Institute leading index of economic activity growth rate, which indicates the likely pace of Australian economic activity three to nine months into the future, fell to an annualized rate of 3.3% in March from 3.6 % in February.
In March the index`s growth rate was at the lowest level since March 2004 and was well below the trend growth rate of 4.4 %.
The coincident index, which measures current activity, recorded an annualized growth rate of 3.4 % in March, down from 3.8 % in February and below the annualized trend growth rate of 3.8%.
Westpac expects domestic spending growth to fall from 5.7% in 2007 to 2.7 % in 2008 and only 2.1% in 2009.
In Hong Kong, the benchmark Hang Seng Index recently slipped 0.1% to 24,249.51, after rising as high as 24,321.89 earlier in the day, while the Hang Seng China Enterprises Index was up by 0.3% at 13,374.74.
China`s Shanghai Composite gained further shooting up by 2.5% to 3,459.03 while the Shenzhen Composite added 2.5% reaching 1,056.54 levels.
Elsewhere, New Zealand`s NZX 50 index was little changed at 3,547.01 and South Korea`s Kospi gave up early advances to drop 1.1% to 1,805.64.
Singapore`s Straits Times Index inched up 0.6% to 3,133.30 and Taiwan`s weighted index lost 1.3% to 8,665.73. Malaysia`s KLSE Composite fell by 1.1% to 1,260.58 while the Thailand`s SET tumbled by 2.5%.
In the afternoon trading India`s Sensitive Index, or Sensex, was up by 1.2% to 16,462.60 and the broader S&P/CNX Nifty inch upward by 1% to 4,906.35.
In currencies, the yen was changing hands at 104.01 against the U.S. dollar, compared to 104.24 in late New York.
On Wall Street the markets resume on a positive note after the extended holiday. The Dow Jones Industrial Average climbed 68.72 points to 12,548.35 and the Nasdaq Composite added 36.57 points to 2,481.24, while the S&P 500 index gained 9.42 points to 1,385.35.
European shares edged higher today morning as the crude oil continued its retreat touching $127 level. Of the national indices, the U.K. FTSE 100 index rose 0.4% to 6,085.20, the German DAX 30 index climbed 0.3% to 6,978.61 and the French CAC-40 index advanced 0.4% to 4,927.25
On the economic front, the current account for Euro Zone has posted a EUR15.3 billion deficit in March, from a EUR7.5 billion surplus in February.
February`s surplus has been revised up from the 4.3 billion surplus initially estimated. Net direct investment in the Euro Area was -EUR18.8B, from -20.0 billion in February. Net portfolio plunged to EUR1.3B in March from EUR19.4B in February
German April import prices rose 0.9 percent from March and were up 5.7 percent compared with April last year, driven by higher fuel costs. In another data release a composite indicator of French consumer confidence fell to -41 in May from -38 in April
Oil continued to fall following Tuesday`s sell-off as investors took profits after last week`s record highs and amid fears over slowing crude demand from the world`s biggest energy consumer, the U.S.
The high prices at the pump may curb U.S. consumers` demand for gasoline going into the usually peak-demand summer driving season. Figures released Tuesday show U.S. consumer confidence has dipped to its lowest level since 1992.
Signs are also emerging that high prices are starting to affect demand in Europe and key emerging Asian economies.
The crude oil prices, which touched a record high of $135.09 a barrel last week, dropped in electronic trading after profit-taking dragged the front-month July contract $3.34 down to $128.85 a barrel in a regular session overnight on the New York Mercantile Exchange. At 9:41 a.m., New York-traded West Texas Intermediate crude for July delivery was down $1.74 at $127.13 a barrel. In London, Brent crude for July delivery was down $1.41 at $126.90 a barrel, having hit a record high of $135.14 last week.
The Asian markets, the Nikkei 225 Average dropped 1.3% to 13,709.44 and the broader Topix index fell 1.4% to 1,348.69, unable to sustain early gains.
In Sydney, the S&P/ASX 200 shed 1.2% to 5,648.10. On the economic front, the Westpac-Melbourne Institute leading index of economic activity growth rate, which indicates the likely pace of Australian economic activity three to nine months into the future, fell to an annualized rate of 3.3% in March from 3.6 % in February.
In March the index`s growth rate was at the lowest level since March 2004 and was well below the trend growth rate of 4.4 %.
The coincident index, which measures current activity, recorded an annualized growth rate of 3.4 % in March, down from 3.8 % in February and below the annualized trend growth rate of 3.8%.
Westpac expects domestic spending growth to fall from 5.7% in 2007 to 2.7 % in 2008 and only 2.1% in 2009.
In Hong Kong, the benchmark Hang Seng Index recently slipped 0.1% to 24,249.51, after rising as high as 24,321.89 earlier in the day, while the Hang Seng China Enterprises Index was up by 0.3% at 13,374.74.
China`s Shanghai Composite gained further shooting up by 2.5% to 3,459.03 while the Shenzhen Composite added 2.5% reaching 1,056.54 levels.
Elsewhere, New Zealand`s NZX 50 index was little changed at 3,547.01 and South Korea`s Kospi gave up early advances to drop 1.1% to 1,805.64.
Singapore`s Straits Times Index inched up 0.6% to 3,133.30 and Taiwan`s weighted index lost 1.3% to 8,665.73. Malaysia`s KLSE Composite fell by 1.1% to 1,260.58 while the Thailand`s SET tumbled by 2.5%.
In the afternoon trading India`s Sensitive Index, or Sensex, was up by 1.2% to 16,462.60 and the broader S&P/CNX Nifty inch upward by 1% to 4,906.35.
In currencies, the yen was changing hands at 104.01 against the U.S. dollar, compared to 104.24 in late New York.
On Wall Street the markets resume on a positive note after the extended holiday. The Dow Jones Industrial Average climbed 68.72 points to 12,548.35 and the Nasdaq Composite added 36.57 points to 2,481.24, while the S&P 500 index gained 9.42 points to 1,385.35.
European shares edged higher today morning as the crude oil continued its retreat touching $127 level. Of the national indices, the U.K. FTSE 100 index rose 0.4% to 6,085.20, the German DAX 30 index climbed 0.3% to 6,978.61 and the French CAC-40 index advanced 0.4% to 4,927.25
On the economic front, the current account for Euro Zone has posted a EUR15.3 billion deficit in March, from a EUR7.5 billion surplus in February.
February`s surplus has been revised up from the 4.3 billion surplus initially estimated. Net direct investment in the Euro Area was -EUR18.8B, from -20.0 billion in February. Net portfolio plunged to EUR1.3B in March from EUR19.4B in February
German April import prices rose 0.9 percent from March and were up 5.7 percent compared with April last year, driven by higher fuel costs. In another data release a composite indicator of French consumer confidence fell to -41 in May from -38 in April
Sensex garners 250 points as oil price declines sharply
The market, which moved between positive and negative zone in early trade, surged in the second half of the trading session led by rally in information technology and cement stocks. A sharp fall in crude oil prices and firm European markets also added to positive sentiments. However, capital goods stocks witnessed selling pressure.
The rally on the bourses gathered steam after the Finance Ministry said in afternoon trade, some media reports about new tax proposals to help ease mounting losses at state oil firms due to soaring crude prices were totally baseless. Media reports on Tuesday, 27 May 2008, had suggested that the government may levy a cess or surcharge on income tax and corporate tax to compensate it for losses due to any duty reduction on crude oil and motor fuels. The reports had weighed on the stock market that day.
The 30-share BSE Sensex rose 249.78 points or 1.53% at 16,525.37. The index climbed 287.71 points at day`s high of 16,563.30, hit at the fag end of trading session. The Sensex lost 57.81 points at the day`s low of 16,217.78, hit in early trade
The broader based S&P CNX Nifty was up 58.55 points or 1.20% at 4918.35. Nifty May 2008 futures were at 4934, a premium of 15.65 points against the spot closing.
The NSE`s futures & options (F&O) segment turnover was at Rs 56333.67 crore, higher than Rs 49968.5 crore on Monday, 26 May 2008. BSE clocked a turnover of Rs 5390 crore in the cash segment as against Rs 5,108.54 crore on Tuesday, 27 May 2008.
Oil prices dropped below $127 a barrel today, 28 May 2008, in Asia, extending a decline of more than $3 in the previous session on a growing sense that soaring prices have cut demand for gasoline and other fuel. Oil has been falling steadily every since it hit a record high $135.09 last week.
Expiry of May 2008 futures & options series on Thursday, 29 May 2008 kept the market volatile. As per reports, rollover of Nifty positions from May 2008 series to June 2008 series stood at 45.63% as on 27 May 2008. Rollover of individual stock futures has been lacklustre so far.
Asian markets were mixed today, 28 May 2008. Key indices in Hong Kong, Japan, South Korea and Taiwan were down by 0.13% to 1.32%. However, China`s Shanghai Composite (up 2.48%), and Singapore`s Straits Times (up 0.56%), rose.
European markets, which opened after Indian market, were trading higher. Key indices in France, Germany and UK were up by 0.43% to 1.51%. US markets advanced yesterday, 28 May 2008, led by technology companies and further drop in crude oil prices. The Dow Jones industrial average advanced 68.72 points, or 0.55%, to 12,548.35. The S&P 500 index gained 9.42 points, or 0.68%, to 1,385.35, and the Nasdaq Composite index surged 36.57 points, or 1.50%, to 2,481.24.
Back home, the market breadth was even on BSE with 1312 shares advancing as compared to 1358 stocks that declined. 86 stocks remained unchanged.
The BSE Mid-Cap index rose 1.12% to 6,753.53 and BSE Small-Cap index rose 0.33% to 8,237.09. Both the indices underperformed the Sensex.
India`s biggest cigarette maker by sales ITC rose 6.19% at Rs 222.05. Foreign brokerage firm Credit Suisse raised its target price on ITC to Rs 264, saying on Tuesday, 27 May 2008, the firm was well positioned to grow in a general slowdown.
Cement stocks were in demand after the Union government partially lifted a ban on cement exports. Ambuja Cements (up 6.66% at Rs 104.10), Ultratech Cements (up 3.04% at Rs 655.20), ACC (up 2% at Rs 668.65), India Cements (up 3.67% at Rs 162.55) and Grasim Industries (up 1.74% at Rs 2237.70), jumped.
India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 1.15% to Rs 2521.80.
India`s biggest commercial vehicles maker by sales Tata Motors advanced 1.30% to Rs 634.75 after the company reported 6.03% rise in net profit to Rs 2028.92 crore on 5.40% rise in total income to Rs 29214 crore in the year ended March 2008 over the year ended March 2007.
The BSE IT index outperformed the Sensex, rising 2.61% at 4,566.42. Mphasis (up 10.02% at Rs 250.85), TCS (up 4.46% at Rs 1,009.70), Satyam Computer (up 3.09% at Rs 514.40), Wipro (up 2.96% at Rs 506.15) and Infosys Technologies (up 1.82% at Rs 1,912.65), soared.
The BSE Bankex outperformed the Sensex, rising 2.31% at 7,933.50. Axis Bank (up 9.51% at Rs 810.80), Kotak Mahindra Bank (up 5.94% at Rs 705.65), State Bank of India (up 3.12% at Rs 1,519.30), and HDFC Bank (up 1.52% at Rs 1,351.60), spurted.
India`s largest private sector bank by assets ICICI Bank rose 0.94% at Rs 820.20.
The BSE Capital Goods index underperformed the Sensex, falling 1.66% to 12,571.91. Bharat Heavy Electricals (down 2.78% at Rs 1,612.15), Bharat Electronics (down 2.05% at Rs 1,134.50), Siemens (down 1.13% at Rs 575.75), and Thermax (down 0.84% at Rs 434.60), slipped.
India`s largest engineering and construction firm by revenue Larsen & Toubro fell 1.25% at Rs 2,709.10. The will declare its March 2008 ended quarter results on Thursday, 29 May 2008.
Among the side counters, Crompton Greaves (down 6.07% at Rs 229.65), Sun TV Network (down 4.03% at Rs 312.20), Cairn India (down 3.54% at Rs 287.80), and Nagarjuna Construction Company (down 3.12% at Rs 186.35), declined.
Chambal Fertilisers & Chemicals clocked the highest turnover of Rs 291.49 crore on BSE. Bajaj Finserve (Rs 235.93 crore), Reliance Industries (Rs 190.18 crore), Reliance Capital (Rs 165.28 crore) and Reliance Power (Rs 131.39 crore), were the other turnover toppers on BSE in that order.
Chambal Fertilisers & Chemicals reported highest volume of 3.48 crore shares on BSE. Nagarjuna Fertilizers and Chemicals (1.86 crore shares), Ispat Industries (1.35 crore shares), IFCI (1.23 crore shares) and Spice Communications (1.14 crore shares), were the other volume toppers on BSE in that order.
State-run power utility Neyveli Lignite Corporation jumped 5.07% to Rs 146 after reporting 1357.10% surge in net profit to Rs 384.68 crore on 128.9% jump in net sales to Rs 801.74 crore in Q4 March 2008 over Q4 March 2007.
Auto component maker Minda Industries jumped 5% at Rs 309.75 after the firm said it bagged orders worth Rs 50 crore from Volkswagen to supply headlamps and rear combination lamps for its upcoming models.
Software developer Compucom Software rose 4.87% tos 32.30 on bagging an order worth Rs 142 crore from the secondary education department, Government of Rajasthan for executing ICT project in 2292 government schools in the state.
Cargo handler Gati advanced 2.36% to Rs 99.95 after foreign brokerage Goldman Sachs initiated coverage on the stock with a ‘buy` recommendation with price target of Rs 149.
Visa Steel gained 1.86% to Rs 60.15 on reporting 3129% surge in net profit to Rs 20.99 crore on 78% increase in total income to Rs 259.66 crore in Q4 March 2008 over Q4 March 2007.
The rally on the bourses gathered steam after the Finance Ministry said in afternoon trade, some media reports about new tax proposals to help ease mounting losses at state oil firms due to soaring crude prices were totally baseless. Media reports on Tuesday, 27 May 2008, had suggested that the government may levy a cess or surcharge on income tax and corporate tax to compensate it for losses due to any duty reduction on crude oil and motor fuels. The reports had weighed on the stock market that day.
The 30-share BSE Sensex rose 249.78 points or 1.53% at 16,525.37. The index climbed 287.71 points at day`s high of 16,563.30, hit at the fag end of trading session. The Sensex lost 57.81 points at the day`s low of 16,217.78, hit in early trade
The broader based S&P CNX Nifty was up 58.55 points or 1.20% at 4918.35. Nifty May 2008 futures were at 4934, a premium of 15.65 points against the spot closing.
The NSE`s futures & options (F&O) segment turnover was at Rs 56333.67 crore, higher than Rs 49968.5 crore on Monday, 26 May 2008. BSE clocked a turnover of Rs 5390 crore in the cash segment as against Rs 5,108.54 crore on Tuesday, 27 May 2008.
Oil prices dropped below $127 a barrel today, 28 May 2008, in Asia, extending a decline of more than $3 in the previous session on a growing sense that soaring prices have cut demand for gasoline and other fuel. Oil has been falling steadily every since it hit a record high $135.09 last week.
Expiry of May 2008 futures & options series on Thursday, 29 May 2008 kept the market volatile. As per reports, rollover of Nifty positions from May 2008 series to June 2008 series stood at 45.63% as on 27 May 2008. Rollover of individual stock futures has been lacklustre so far.
Asian markets were mixed today, 28 May 2008. Key indices in Hong Kong, Japan, South Korea and Taiwan were down by 0.13% to 1.32%. However, China`s Shanghai Composite (up 2.48%), and Singapore`s Straits Times (up 0.56%), rose.
European markets, which opened after Indian market, were trading higher. Key indices in France, Germany and UK were up by 0.43% to 1.51%. US markets advanced yesterday, 28 May 2008, led by technology companies and further drop in crude oil prices. The Dow Jones industrial average advanced 68.72 points, or 0.55%, to 12,548.35. The S&P 500 index gained 9.42 points, or 0.68%, to 1,385.35, and the Nasdaq Composite index surged 36.57 points, or 1.50%, to 2,481.24.
Back home, the market breadth was even on BSE with 1312 shares advancing as compared to 1358 stocks that declined. 86 stocks remained unchanged.
The BSE Mid-Cap index rose 1.12% to 6,753.53 and BSE Small-Cap index rose 0.33% to 8,237.09. Both the indices underperformed the Sensex.
India`s biggest cigarette maker by sales ITC rose 6.19% at Rs 222.05. Foreign brokerage firm Credit Suisse raised its target price on ITC to Rs 264, saying on Tuesday, 27 May 2008, the firm was well positioned to grow in a general slowdown.
Cement stocks were in demand after the Union government partially lifted a ban on cement exports. Ambuja Cements (up 6.66% at Rs 104.10), Ultratech Cements (up 3.04% at Rs 655.20), ACC (up 2% at Rs 668.65), India Cements (up 3.67% at Rs 162.55) and Grasim Industries (up 1.74% at Rs 2237.70), jumped.
India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 1.15% to Rs 2521.80.
India`s biggest commercial vehicles maker by sales Tata Motors advanced 1.30% to Rs 634.75 after the company reported 6.03% rise in net profit to Rs 2028.92 crore on 5.40% rise in total income to Rs 29214 crore in the year ended March 2008 over the year ended March 2007.
The BSE IT index outperformed the Sensex, rising 2.61% at 4,566.42. Mphasis (up 10.02% at Rs 250.85), TCS (up 4.46% at Rs 1,009.70), Satyam Computer (up 3.09% at Rs 514.40), Wipro (up 2.96% at Rs 506.15) and Infosys Technologies (up 1.82% at Rs 1,912.65), soared.
The BSE Bankex outperformed the Sensex, rising 2.31% at 7,933.50. Axis Bank (up 9.51% at Rs 810.80), Kotak Mahindra Bank (up 5.94% at Rs 705.65), State Bank of India (up 3.12% at Rs 1,519.30), and HDFC Bank (up 1.52% at Rs 1,351.60), spurted.
India`s largest private sector bank by assets ICICI Bank rose 0.94% at Rs 820.20.
The BSE Capital Goods index underperformed the Sensex, falling 1.66% to 12,571.91. Bharat Heavy Electricals (down 2.78% at Rs 1,612.15), Bharat Electronics (down 2.05% at Rs 1,134.50), Siemens (down 1.13% at Rs 575.75), and Thermax (down 0.84% at Rs 434.60), slipped.
India`s largest engineering and construction firm by revenue Larsen & Toubro fell 1.25% at Rs 2,709.10. The will declare its March 2008 ended quarter results on Thursday, 29 May 2008.
Among the side counters, Crompton Greaves (down 6.07% at Rs 229.65), Sun TV Network (down 4.03% at Rs 312.20), Cairn India (down 3.54% at Rs 287.80), and Nagarjuna Construction Company (down 3.12% at Rs 186.35), declined.
Chambal Fertilisers & Chemicals clocked the highest turnover of Rs 291.49 crore on BSE. Bajaj Finserve (Rs 235.93 crore), Reliance Industries (Rs 190.18 crore), Reliance Capital (Rs 165.28 crore) and Reliance Power (Rs 131.39 crore), were the other turnover toppers on BSE in that order.
Chambal Fertilisers & Chemicals reported highest volume of 3.48 crore shares on BSE. Nagarjuna Fertilizers and Chemicals (1.86 crore shares), Ispat Industries (1.35 crore shares), IFCI (1.23 crore shares) and Spice Communications (1.14 crore shares), were the other volume toppers on BSE in that order.
State-run power utility Neyveli Lignite Corporation jumped 5.07% to Rs 146 after reporting 1357.10% surge in net profit to Rs 384.68 crore on 128.9% jump in net sales to Rs 801.74 crore in Q4 March 2008 over Q4 March 2007.
Auto component maker Minda Industries jumped 5% at Rs 309.75 after the firm said it bagged orders worth Rs 50 crore from Volkswagen to supply headlamps and rear combination lamps for its upcoming models.
Software developer Compucom Software rose 4.87% tos 32.30 on bagging an order worth Rs 142 crore from the secondary education department, Government of Rajasthan for executing ICT project in 2292 government schools in the state.
Cargo handler Gati advanced 2.36% to Rs 99.95 after foreign brokerage Goldman Sachs initiated coverage on the stock with a ‘buy` recommendation with price target of Rs 149.
Visa Steel gained 1.86% to Rs 60.15 on reporting 3129% surge in net profit to Rs 20.99 crore on 78% increase in total income to Rs 259.66 crore in Q4 March 2008 over Q4 March 2007.
Asian markets marginally down, Indian to witness a range bound to positive movement
Asian markets declined led by commodity companies after prices of oil, gold and copper witnessed a drop.
Japan`s top oil explorer Inpex Holdings declined after oil fell from a record. Crude for June delivery declined USD 3.34 to settle at USD 128.85 a barrel on the New York Mercantile Exchange (NYMEX).
Japan`s index Nikkei 225 fell 56.78 points, or 0.41%, to trade at 13,836.53.
Hong Kong`s index Hang Seng dipped 7.09 points, or 0.03%, to trade at 24,274.95.
China`s Shanghai Composite rose 0.63 points, or 0.02%, to trade at 3,376.04.
Taiwan`s Taiex index fell 24.96 points, or 0.28%, to trade at 8,753.43.
South Korea`s KOSPI declined 2.59 points, or 0.14%, to trade 1,822.64.
Singapore`s Straits Times added 18.01 points or 0.58%, to trade at 3,133.36. (8.20 a.m. IST)
According to IMF`s statistics, the annualized inflation is running at the rate of 3.4% which may help the banking and realty stocks in Indian Markets to recover, which is in the oversold region.
Nifty has support at 4807 and 4800, if breaks still a cause of concern. On the other hand resistance is at 4910 and 4920. Expect a range bound to positive movements tomorrow (May 28).
Japan`s top oil explorer Inpex Holdings declined after oil fell from a record. Crude for June delivery declined USD 3.34 to settle at USD 128.85 a barrel on the New York Mercantile Exchange (NYMEX).
Japan`s index Nikkei 225 fell 56.78 points, or 0.41%, to trade at 13,836.53.
Hong Kong`s index Hang Seng dipped 7.09 points, or 0.03%, to trade at 24,274.95.
China`s Shanghai Composite rose 0.63 points, or 0.02%, to trade at 3,376.04.
Taiwan`s Taiex index fell 24.96 points, or 0.28%, to trade at 8,753.43.
South Korea`s KOSPI declined 2.59 points, or 0.14%, to trade 1,822.64.
Singapore`s Straits Times added 18.01 points or 0.58%, to trade at 3,133.36. (8.20 a.m. IST)
According to IMF`s statistics, the annualized inflation is running at the rate of 3.4% which may help the banking and realty stocks in Indian Markets to recover, which is in the oversold region.
Nifty has support at 4807 and 4800, if breaks still a cause of concern. On the other hand resistance is at 4910 and 4920. Expect a range bound to positive movements tomorrow (May 28).
Tuesday, May 27, 2008
Market drifts lower after firm start
Weakness in the second half of the trading session dragged the market lower today. Banking stocks were the worst sufferers. State Bank of India slumped. FMCG and information technology stocks held firm.
Asian markets edged higher today, 27 May 2008, as bargain hunters scoured the market after five days of losses. Key indices in China, Japan, Hong Kong, Taiwan, South Korea and Singapore were up by 0.39% to 1.48%.
But European markets, which opened after Indian market, were mostly in the red. Key indices in France and Germany were down 0.42% to 0.53%. UK`s FTSE 100 was up 0.11%. US markets were closed on Monday, 26 May 2008, for Memorial Day holiday.
As per provisional closing, the 30-share BSE Sensex was down 83.71 points or 0.51% at 16,264.79. The Sensex lost 110.58 at the day`s low of 16,237.92, hit in the mid-afternoon trade. The market opened on an upbeat note tracking firm Asian stocks. Sensex climbed 157.85 points at day`s high of 16,506.35, hit in early trade
The broader based S&P CNX Nifty was down 15.2 points or 0.31% at 4859.85.
The market breadth, which was firmly positive earlier, turned negative later, with 946 shares advancing on BSE as compared to 1734 stocks that declined. 78 stocks remained unchanged.
The BSE Mid-Cap index fell 1.19% to 6,680.14 and BSE Small-Cap index lost 1.35% to 8,205.84.
BSE clocked a turnover of Rs 5074 crore as against Rs 4,426.96 on Monday, 26 May 2008
The top Sensex losers were, Housing Development Finance Corporation (down 2.26% at Rs 2515.05), ONGC (down 1.31% at Rs 884.70), Tata Steel (down 1.08% at Rs 865.50), and HDFC Bank (down 0.93% at Rs 1334.95).
India`s largest commercial bank State Bank of India slumped 4.21% at Rs 1473.
India`s largest private sector firm by market capitalization & oil refiner Reliance Industries fell 1.10% at Rs 2497.20.
India`s largest private sector bank by assets ICICI Bank declined 1.78% at Rs 812.
The top Sensex gainers were, Satyam Computer (up 3.44% at Rs 499.70), Cipla (up 3.12% at Rs 205.20), Wipro (up 2.77% at Rs 491.90), ITC (up 2.04% at Rs 209.90) and Reliance Infrastructure (up 1.29% at Rs 1264.70).
India`s second largest listed telecom services provider by sales Reliance Communication (RCom) rose 1.80% at Rs 553 on reports the proposed deal between Reliance Communications and South Africa`s MTN Group may involve an open offer by the South African telecom firm to the shareholders of Reliance Communications. The deal may result in a transfer of Anil Ambani`s two-third equity stake in Reliance Communications to MTN shareholders, the reports added.
The RCom stock had tumbled 5.08% to Rs 543.20 on Monday, 26 May 2008, after the company said it was in merger talks with MTN.
Cooking appliances maker Hawkins Cookers jumped 9.47% to Rs 185 after the company`s board of directors recommended a liberal dividend of Rs 10 per share in a board meeting held on Monday, 26 May 2008.
Sandur Manganese and Iron Ores was locked at upper limit of 5% at Rs 1185.65 on sustained buying after the company`s management guided a whopping 10-fold jump in net profit for the year ending March 2009, on 13 May 2008.
Automobile batteries maker Amara Raja Batteries jumped 0.90% at Rs 191 on reports the founders of the company have decided to form a holding corporation that will take under its wing five group companies and the newly formed Amara Raja Infra.
IT firm HTMT Global Solutions soared 1.50% to Rs 365 on reports the firm is planning to acquire a mortgage-specific company in the UK. The business process outsourcing (BPO) and IT services provider may invest more than $150 million for the buyout. HTMT has internal accruals of $110 million which will be used for the acquisition, the reports added.
Engineering firm Kirloskar Electric Company spurted 2.37% at Rs 188.05 on reports the firm has mounted a bid to acquire Germany`s Lloyd Dynamowerke based on an estimated enterprise valuation of about $100 million.
Food products supplier Sita Shree Food Products advanced 2.13% to Rs 43.20 after the company said it had received orders from Reliance Fresh for 400 metric tonnes of wheat flour and pulses, higher from its previous order for 160 metric tonnes.
Industrial equipment maker Thermax jumped 1.42% to Rs 436.15 after the company said its boiler & heater business unit has received an export order worth 14.2 million euro for supply of heat recovery steam generator to an oil company in Europe.
Bhuwalka Steel Industries, which manufactures steel billets, gained 2.22% to Rs 83 after the company said it expects revenue of Rs 125 crore and rental income of Rs 12 crore a year, from redevelopment of a mill property in Bangalore.
Asian markets edged higher today, 27 May 2008, as bargain hunters scoured the market after five days of losses. Key indices in China, Japan, Hong Kong, Taiwan, South Korea and Singapore were up by 0.39% to 1.48%.
But European markets, which opened after Indian market, were mostly in the red. Key indices in France and Germany were down 0.42% to 0.53%. UK`s FTSE 100 was up 0.11%. US markets were closed on Monday, 26 May 2008, for Memorial Day holiday.
As per provisional closing, the 30-share BSE Sensex was down 83.71 points or 0.51% at 16,264.79. The Sensex lost 110.58 at the day`s low of 16,237.92, hit in the mid-afternoon trade. The market opened on an upbeat note tracking firm Asian stocks. Sensex climbed 157.85 points at day`s high of 16,506.35, hit in early trade
The broader based S&P CNX Nifty was down 15.2 points or 0.31% at 4859.85.
The market breadth, which was firmly positive earlier, turned negative later, with 946 shares advancing on BSE as compared to 1734 stocks that declined. 78 stocks remained unchanged.
The BSE Mid-Cap index fell 1.19% to 6,680.14 and BSE Small-Cap index lost 1.35% to 8,205.84.
BSE clocked a turnover of Rs 5074 crore as against Rs 4,426.96 on Monday, 26 May 2008
The top Sensex losers were, Housing Development Finance Corporation (down 2.26% at Rs 2515.05), ONGC (down 1.31% at Rs 884.70), Tata Steel (down 1.08% at Rs 865.50), and HDFC Bank (down 0.93% at Rs 1334.95).
India`s largest commercial bank State Bank of India slumped 4.21% at Rs 1473.
India`s largest private sector firm by market capitalization & oil refiner Reliance Industries fell 1.10% at Rs 2497.20.
India`s largest private sector bank by assets ICICI Bank declined 1.78% at Rs 812.
The top Sensex gainers were, Satyam Computer (up 3.44% at Rs 499.70), Cipla (up 3.12% at Rs 205.20), Wipro (up 2.77% at Rs 491.90), ITC (up 2.04% at Rs 209.90) and Reliance Infrastructure (up 1.29% at Rs 1264.70).
India`s second largest listed telecom services provider by sales Reliance Communication (RCom) rose 1.80% at Rs 553 on reports the proposed deal between Reliance Communications and South Africa`s MTN Group may involve an open offer by the South African telecom firm to the shareholders of Reliance Communications. The deal may result in a transfer of Anil Ambani`s two-third equity stake in Reliance Communications to MTN shareholders, the reports added.
The RCom stock had tumbled 5.08% to Rs 543.20 on Monday, 26 May 2008, after the company said it was in merger talks with MTN.
Cooking appliances maker Hawkins Cookers jumped 9.47% to Rs 185 after the company`s board of directors recommended a liberal dividend of Rs 10 per share in a board meeting held on Monday, 26 May 2008.
Sandur Manganese and Iron Ores was locked at upper limit of 5% at Rs 1185.65 on sustained buying after the company`s management guided a whopping 10-fold jump in net profit for the year ending March 2009, on 13 May 2008.
Automobile batteries maker Amara Raja Batteries jumped 0.90% at Rs 191 on reports the founders of the company have decided to form a holding corporation that will take under its wing five group companies and the newly formed Amara Raja Infra.
IT firm HTMT Global Solutions soared 1.50% to Rs 365 on reports the firm is planning to acquire a mortgage-specific company in the UK. The business process outsourcing (BPO) and IT services provider may invest more than $150 million for the buyout. HTMT has internal accruals of $110 million which will be used for the acquisition, the reports added.
Engineering firm Kirloskar Electric Company spurted 2.37% at Rs 188.05 on reports the firm has mounted a bid to acquire Germany`s Lloyd Dynamowerke based on an estimated enterprise valuation of about $100 million.
Food products supplier Sita Shree Food Products advanced 2.13% to Rs 43.20 after the company said it had received orders from Reliance Fresh for 400 metric tonnes of wheat flour and pulses, higher from its previous order for 160 metric tonnes.
Industrial equipment maker Thermax jumped 1.42% to Rs 436.15 after the company said its boiler & heater business unit has received an export order worth 14.2 million euro for supply of heat recovery steam generator to an oil company in Europe.
Bhuwalka Steel Industries, which manufactures steel billets, gained 2.22% to Rs 83 after the company said it expects revenue of Rs 125 crore and rental income of Rs 12 crore a year, from redevelopment of a mill property in Bangalore.
America is broke says Peter Schiff
Peter Schiff, president of money manager Euro Pacific Capital, warns that after years of profligate spending, the "chickens are finally coming home to roost".
"Our whole phony standard of living is imploding," he said. "We have borrowed and spent ourselves into oblivion."
"It's amazing that people can't figure out that America is broke."
Americans are feeling a lot more economic pain than the government's official statistics would lead you to believe, according to a growing number of experts.
They argue that figures for unemployment and inflation are being understated by the government.
Home prices have posted another record decline, as most of the nation's largest markets suffered double-digit drops over last year, a survey released Tuesday shows.
The S&P Case/Shiller Home Price Index, which tracks 20 of the largest housing markets, showed prices plummeting by 12.7% in the 12 months ending February. That's the biggest fall since the index began tracking prices in 2000.
Of those 20 metro areas, 17 posted their largest year-over-year declines ever. Ten of the 20 cities posted double-digit dips.
The 10-city Case/Shiller index is down 13.6% year-over-year, the biggest drop since its launch in 1987.
"There is no sign of a bottom in the numbers," S&P spokesman David M. Blitzer, said in a prepared statement. "Prices of single family homes continue to drop across the nation."
"This is huge," said Dean Baker, co-director of the Center for Economic and Policy Research. "Back a couple of years ago, people were saying, 'Housing prices are not like stocks; they change slowly,'" he said.
Sky-high oil prices are causing pain at the pump, but bills for air conditioning this summer and heating next winter -- combined with rising food costs -- promise to squeeze U.S. consumers even more.
With gas at $4.00 a gallon, households already have less to spend on a new grill at Home Depot; a vacation at Walt Disney's Disney World; a new TV from Best Buy; or a new "hog" from Harley-Davidson.
And there are no signs things will get better soon for the consumer, long the driving force of U.S. economic growth.
"For the areas of the economy that rely on heating oil, high fuel prices are going to be another blow to the consumer this winter," said Jack Kyser, chief economist at the LA County Economic Development Corp.
"The hotter states will feel the pinch during the summer months but in the mid-America states where you get hot summers and cold winters, it's going to be very uncomfortable," he said.
"This is going to eat into the disposable income of American consumers -- supposing they have any left."
Oil prices, now $130 a barrel, have risen six-fold since 2002. On Wednesday, heating oil reached a record high above $3.90 a gallon and the price is expected to stay high.
Heating oil, which cost $3.29 a gallon in January, will likely cost $3.83 in December, according to the government's Energy Information Administration.
Those costs come at a time of rising food prices, forcing people to spend more on basics as wages fail to keep up. The effects on the economy could be profound.
Diane Swonk, chief economist of Mesirow Financial, says one of her biggest concerns for the short term is that the Bush administration's tax rebates, which were designed to stimulate the economy, will be used by consumers to fill their tanks and use air conditioning as usual rather than cutting back.
Many retailers, like Wal-Mart and Sears and supermarkets Kroger and Supervalu, have offered customers incentives to spend their rebate checks with them.
President George W. Bush signed into law a $152 billion fiscal stimulus package earlier this year to provide tax rebates to 130 million Americans. Some $107 billion of the total was allocated for households.
"Our whole phony standard of living is imploding," he said. "We have borrowed and spent ourselves into oblivion."
"It's amazing that people can't figure out that America is broke."
Americans are feeling a lot more economic pain than the government's official statistics would lead you to believe, according to a growing number of experts.
They argue that figures for unemployment and inflation are being understated by the government.
Home prices have posted another record decline, as most of the nation's largest markets suffered double-digit drops over last year, a survey released Tuesday shows.
The S&P Case/Shiller Home Price Index, which tracks 20 of the largest housing markets, showed prices plummeting by 12.7% in the 12 months ending February. That's the biggest fall since the index began tracking prices in 2000.
Of those 20 metro areas, 17 posted their largest year-over-year declines ever. Ten of the 20 cities posted double-digit dips.
The 10-city Case/Shiller index is down 13.6% year-over-year, the biggest drop since its launch in 1987.
"There is no sign of a bottom in the numbers," S&P spokesman David M. Blitzer, said in a prepared statement. "Prices of single family homes continue to drop across the nation."
"This is huge," said Dean Baker, co-director of the Center for Economic and Policy Research. "Back a couple of years ago, people were saying, 'Housing prices are not like stocks; they change slowly,'" he said.
Sky-high oil prices are causing pain at the pump, but bills for air conditioning this summer and heating next winter -- combined with rising food costs -- promise to squeeze U.S. consumers even more.
With gas at $4.00 a gallon, households already have less to spend on a new grill at Home Depot; a vacation at Walt Disney's Disney World; a new TV from Best Buy; or a new "hog" from Harley-Davidson.
And there are no signs things will get better soon for the consumer, long the driving force of U.S. economic growth.
"For the areas of the economy that rely on heating oil, high fuel prices are going to be another blow to the consumer this winter," said Jack Kyser, chief economist at the LA County Economic Development Corp.
"The hotter states will feel the pinch during the summer months but in the mid-America states where you get hot summers and cold winters, it's going to be very uncomfortable," he said.
"This is going to eat into the disposable income of American consumers -- supposing they have any left."
Oil prices, now $130 a barrel, have risen six-fold since 2002. On Wednesday, heating oil reached a record high above $3.90 a gallon and the price is expected to stay high.
Heating oil, which cost $3.29 a gallon in January, will likely cost $3.83 in December, according to the government's Energy Information Administration.
Those costs come at a time of rising food prices, forcing people to spend more on basics as wages fail to keep up. The effects on the economy could be profound.
Diane Swonk, chief economist of Mesirow Financial, says one of her biggest concerns for the short term is that the Bush administration's tax rebates, which were designed to stimulate the economy, will be used by consumers to fill their tanks and use air conditioning as usual rather than cutting back.
Many retailers, like Wal-Mart and Sears and supermarkets Kroger and Supervalu, have offered customers incentives to spend their rebate checks with them.
President George W. Bush signed into law a $152 billion fiscal stimulus package earlier this year to provide tax rebates to 130 million Americans. Some $107 billion of the total was allocated for households.
Shriram Transport Q4 earnings rises 2.31 times
Shriram Transport Finance announced a phenomenal rise in standalone net profit for the quarter ended March 2008. During the quarter, the profit of the company zoomed 2.31 times to Rs 1,118.50 million from Rs 483.60 million in the same quarter previous year.
Net sales for the quarter surged 77.60% to Rs 7,497.30 million, while total income for the quarter jumped 78.98% to Rs 7,645.10 million, when compared with the prior year period. It reported earnings of Rs 5.51 a share during the quarter, registering 99.64% growth over prior year period.
Dividend
The board of directors has recommended a final dividend of 40% or Rs 4 a share for the year ended March 31, 2008. This is in addition to the interim dividend of 10% or Re 1 a share already paid.
Shares of the company gained Rs 5.55, or 1.66%, to settle at Rs 338.9. The total volume of shares traded was 10,876 at the BSE.
Net sales for the quarter surged 77.60% to Rs 7,497.30 million, while total income for the quarter jumped 78.98% to Rs 7,645.10 million, when compared with the prior year period. It reported earnings of Rs 5.51 a share during the quarter, registering 99.64% growth over prior year period.
Dividend
The board of directors has recommended a final dividend of 40% or Rs 4 a share for the year ended March 31, 2008. This is in addition to the interim dividend of 10% or Re 1 a share already paid.
Shares of the company gained Rs 5.55, or 1.66%, to settle at Rs 338.9. The total volume of shares traded was 10,876 at the BSE.
India's inflation rate may be revised to 10%: reports the Economist
India's inflation rate may be revised to 10 per cent from the latest estimate of 7.82 per cent as data for prices of different commodities is updated, London-based publication The Economist has said.
"Delays in data collection in India can mean big revisions to inflation... The latest wholesale price rate inflation rate might therefore be pushed up to 9-10 per cent," noted The Economist in its cover story on global inflation.
India faces the challenge of high inflation in the coming months, especially due to rising international crude oil and food prices.
"Prices are also rising partly because loose monetary conditions in emerging economies have boosted domestic demand," the prestigious journal said.
India revised inflation figures for the week ended March 15 to 8.02 per cent from the earlier estimate of 6.68 per cent.
Referring to ban on futures trading in agricultural commodities, it said, "In the short run such measures may help cap inflation and avoid social unrest, but in the long run they do more harm than good."
Preventing rising prices reduces the incentive for farmers to increase supply and for consumers to curb demand, thus prolonging the very imbalance that has stoked prices.
It further said if measured correctly, five of the ten biggest emerging economies could have inflation rates of 10 per cent or more by mid-summer.
"Two-thirds of the world's population may then be struggling with double-digit inflation."
"Delays in data collection in India can mean big revisions to inflation... The latest wholesale price rate inflation rate might therefore be pushed up to 9-10 per cent," noted The Economist in its cover story on global inflation.
India faces the challenge of high inflation in the coming months, especially due to rising international crude oil and food prices.
"Prices are also rising partly because loose monetary conditions in emerging economies have boosted domestic demand," the prestigious journal said.
India revised inflation figures for the week ended March 15 to 8.02 per cent from the earlier estimate of 6.68 per cent.
Referring to ban on futures trading in agricultural commodities, it said, "In the short run such measures may help cap inflation and avoid social unrest, but in the long run they do more harm than good."
Preventing rising prices reduces the incentive for farmers to increase supply and for consumers to curb demand, thus prolonging the very imbalance that has stoked prices.
It further said if measured correctly, five of the ten biggest emerging economies could have inflation rates of 10 per cent or more by mid-summer.
"Two-thirds of the world's population may then be struggling with double-digit inflation."
Monday, May 26, 2008
News brief
Oil Minister Murli Deora today, 23 May 2008, said the issue of oil price revision was not on the agenda for today`s cabinet meeting. He, however, said it was necessary to take immediate steps to save oil companies. Deora said he had discussed the issue with the prime minister last night. Earlier today, Petroleum Secretary M.S. Srinivasan said an increase in domestic fuel prices was inevitable and the government would work out the size of the rise by today evening.
Prime Minister Manmohan Singh had on Thursday, 22 May 2008, denied reports that the government planned to raise retail fuel prices in the wake of a surge in global crude oil prices.
The government has not allowed oil firms to raise retail fuel prices despite a surge in crude oil prices in the past few weeks.
Petroleum Secretary M.S. Srinivasan today said a rise in domestic fuel prices is inevitable and the government is expected to work out the extent of rise by today, 23 May 2008, evening. He said the oil ministry was seeking a scrapping of import duty on crude oil and a reduction in customs duty on petrol and diesel to 2.5% from 7.5%.
Srinivasan`s comments come a day after Prime Minister Manmohan Singh on Thursday, 22 May 2008, denying reports that the government planned to raise retail fuel prices in the wake of a surge in global crude oil prices.
The government has not allowed oil firms to raise retail fuel prices despite a surge in crude oil prices in the past few weeks.
Inflation based on the whole price index rose 7.82% in the year through 10 May 2008, marginally lower than 7.83% rise in the previous week, government data released today, 23 May 2008, showed. Meanwhile, inflation for the year through 15 March 2008 was revised upwards to 8.02% compared to provisional figure of 6.68%.
Prime Minister Manmohan Singh had on Thursday, 22 May 2008, denied reports that the government planned to raise retail fuel prices in the wake of a surge in global crude oil prices.
The government has not allowed oil firms to raise retail fuel prices despite a surge in crude oil prices in the past few weeks.
Petroleum Secretary M.S. Srinivasan today said a rise in domestic fuel prices is inevitable and the government is expected to work out the extent of rise by today, 23 May 2008, evening. He said the oil ministry was seeking a scrapping of import duty on crude oil and a reduction in customs duty on petrol and diesel to 2.5% from 7.5%.
Srinivasan`s comments come a day after Prime Minister Manmohan Singh on Thursday, 22 May 2008, denying reports that the government planned to raise retail fuel prices in the wake of a surge in global crude oil prices.
The government has not allowed oil firms to raise retail fuel prices despite a surge in crude oil prices in the past few weeks.
Inflation based on the whole price index rose 7.82% in the year through 10 May 2008, marginally lower than 7.83% rise in the previous week, government data released today, 23 May 2008, showed. Meanwhile, inflation for the year through 15 March 2008 was revised upwards to 8.02% compared to provisional figure of 6.68%.
Sensex sheds 301 points on weak global cues
The market today extended last week`s steep losses on weak cues from Asian markets. Banking, and capital goods stocks suffered the most in today`s slide. Information technology stocks were star performers of the session.
As per provisional data, foreign funds sold shares worth a net Rs 1337.33 crore today. Domestic funds bought shares worth a net Rs 842.05 crore.
Asian stocks fell on Monday, 26 May 2008, as investors feared rising inflation and sluggish US economic growth would seriously dent consumer demand in the region`s biggest export market. Key indices in China, Japan, Hong Kong, Taiwan, Singapore and South Korea were down by 0.60% to 3.13%.
But European markets, which opened after the Indian markets, were positive. Key indices in France and Germany were up by 0.08% to 0.25%. UK market is closed today on account of Spring Bank holiday.
On Friday, 23 May 2008, the US markets declined on concerns about a worsening housing recession and rising crude oil prices. The Dow Jones industrial average plunged 145.99 points, or 1.16%, to 12,479.63. The S&P 500 index declined 18.42 points, or 1.32%, to 1,375.93, and the Nasdaq Composite index fell 19.91 points, or 0.81%, to 2,444.67.
The 30-share BSE Sensex was down 301.14 points or 1.81% at 16,348.50. The index lost 348.76 points at day`s low of 16,300.88, hit at the fag end of the session.
The broader based S&P CNX Nifty was down 71.5 points or 1.45% at 4875.05. Nifty futures were at 4878.35, a premium of 3.3 points against the spot closing.
The NSE`s futures & options (F&O) segment turnover was at Rs 44103.52 crore, higher than Rs 41317.97 crore on Friday, 23 May 2008. BSE clocked a turnover of Rs 4134 crore in the cash segment as against Rs 5,389.63 on Friday, 23 May 2008.
The market breadth was poor on BSE with 667 shares advancing as compared to 2043 stocks that declined. 48 stocks remained unchanged.
The BSE Mid-Cap index fell 2.54% to 6,760.77 and BSE Small-Cap index fell 2.34% to 8,318.20. Both the indices underperformed the Sensex.
India`s biggest listed cellular services provider by market share Bharti Airtel advanced 3.15% at Rs 863.15 after the company decided to disengage from the ongoing talks with the South African telecom major, MTN, to explore the possibility of a merger between the two emerging markets telecom giants
India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 1.17% at Rs 2524.85. The stock recovered from the day`s low of Rs 2490.
India`s second largest listed telecom services provider by sales Reliance Communication shed 5.08% to Rs 543.20 after the company entered into negotiations with South Africa`s MTN Group for a possible merger after MTN`s merger deal with Bharti Airtel collapsed.
Other major Sensex losers were, Jaiprakash Associates (down 5.58% at Rs 224.40), Ambuja Cements (down 5.38% and Maruti Suzuki (down 3.83% at Rs 759.85).
The BSE Bankex underperformed the Sensex, falling 3.56% to 7,939.25. Federal Bank (down 6.09% at Rs 221.95), Kotak Mahindra Bank (down 6% at Rs 658.05), Indian Overseas Bank (down 4.75% at Rs 130.20), Axis Bank (down 4.61% at Rs 762.95), HDFC Bank (down 2.60% at Rs 1,347.45) and State Bank of India (down 2.26% at Rs 1,537.70), slipped.
India`s largest private sector bank by assets ICICI Bank fell 4.29% at Rs 826.70.
The BSE Capital Goods index underperformed the Sensex, falling 2.72% at 12,833.68. Bharat Heavy Electricals (down 5.21% at Rs 1,656.10), Punj Lloyd (down 3.81% at Rs 320.90) and Larsen & Toubro (down 3.34% at Rs 2,749.65), tumbled.
Information technology (IT) stocks rose after the Indian rupee had fellen 0.14% to 42.755 against the dollar in morning deals. However, the domestic curency recovered to trade at 42.55 per dollar in afternoon trade. The BSE IT index outperformed the Sensex, gaining 1.77% at 4,418. Infosys Technologies (up 3.29% at Rs 1,886.40), TCS (up 2.69% at Rs 958.80), HCL Technologies (up 1.28% at Rs 295.85) and Satyam Computer (up 0.25% at Rs 483.10), rose.
However, India`s third largest software exporter by sales Wipro fell 0.43% at Rs 478.65.
Cairn India clocked the highest turover of Rs 180.52 crore on BSE. Reliance Industries (Rs 148.18 crore), Reliance Capital (Rs 145.46 crore), Bajaj Auto (Rs 144.40 crore) and Reliance Power (Rs 142.14 crore), were the other turnover toppers on BSE in that order.
Ispat Industries registered a highest volume of 1.69 crore shares on BSE. IFCI (1.11 crore shares), Aishwarya Telecom (86.54 lakh shares), Spice Communication (80.18 lakh shares) and Reliance Natural Resources (65.51 lakh shares), were the other volume toppers on BSE in that order.
Commercial vehicles maker Eicher Motors rose 20% to Rs 384.30 on reports truck maker Volvo had inked a final agreement to set up a new truck and bus joint venture with the company. Some other reports suggested that Eicher Goodearth, part of the promoter group, was considering buying back 13.12% of the company`s shares at Rs 691.68 each.
Private sector lender Bank of Rajasthan surged 13.77% to Rs 116.05 after it scheduled a board meet on 31 May 2008 to consider issue of bonus shares.
Engineering firm Crompton Greaves gained 2.31% to Rs 237.35 after posting 47.4% surge in net profit to Rs 103.07 crore on 17.1% increase in net sales to Rs 1159.53 crore in Q4 March 2008 over Q4 March 2007.
Auto parts maker Federal-Mogul Goetze (India) rose 1.76% at Rs 75.35 after it said its board will meet on 3 June 2008 to consider a rights issue.
Relentless selling in realty, oil & gas and metal stocks spooked sell-off in late trade on Friday, 23 May 2008. The 30-share BSE Sensex settled 257.47 points or 1.52% lower at 16,649.64 and the broader based S&P CNX Nifty was down 78.9 points or 1.57% at 4,946.55, on that day.
The key benchmark indices suffered losses in the week ended Friday, 3 May 2008 with the BSE Sensex plunging 785.30 points or 4.50% to 16,649.64 and the S&P CNX Nifty sliding 211.15 points or 4.09% to 4,946.55 .
Inflation based on the whole price index rose 7.82% in the year through 10 May 2008, marginally lower than 7.83% rise in the previous week, government data released on Friday, 23 May 2008, showed. Meanwhile, inflation for the year through 15 March 2008 was revised upwards to 8.02% compared to provisional figure of 6.68%.
As per provisional data, foreign funds sold shares worth a net Rs 1337.33 crore today. Domestic funds bought shares worth a net Rs 842.05 crore.
Asian stocks fell on Monday, 26 May 2008, as investors feared rising inflation and sluggish US economic growth would seriously dent consumer demand in the region`s biggest export market. Key indices in China, Japan, Hong Kong, Taiwan, Singapore and South Korea were down by 0.60% to 3.13%.
But European markets, which opened after the Indian markets, were positive. Key indices in France and Germany were up by 0.08% to 0.25%. UK market is closed today on account of Spring Bank holiday.
On Friday, 23 May 2008, the US markets declined on concerns about a worsening housing recession and rising crude oil prices. The Dow Jones industrial average plunged 145.99 points, or 1.16%, to 12,479.63. The S&P 500 index declined 18.42 points, or 1.32%, to 1,375.93, and the Nasdaq Composite index fell 19.91 points, or 0.81%, to 2,444.67.
The 30-share BSE Sensex was down 301.14 points or 1.81% at 16,348.50. The index lost 348.76 points at day`s low of 16,300.88, hit at the fag end of the session.
The broader based S&P CNX Nifty was down 71.5 points or 1.45% at 4875.05. Nifty futures were at 4878.35, a premium of 3.3 points against the spot closing.
The NSE`s futures & options (F&O) segment turnover was at Rs 44103.52 crore, higher than Rs 41317.97 crore on Friday, 23 May 2008. BSE clocked a turnover of Rs 4134 crore in the cash segment as against Rs 5,389.63 on Friday, 23 May 2008.
The market breadth was poor on BSE with 667 shares advancing as compared to 2043 stocks that declined. 48 stocks remained unchanged.
The BSE Mid-Cap index fell 2.54% to 6,760.77 and BSE Small-Cap index fell 2.34% to 8,318.20. Both the indices underperformed the Sensex.
India`s biggest listed cellular services provider by market share Bharti Airtel advanced 3.15% at Rs 863.15 after the company decided to disengage from the ongoing talks with the South African telecom major, MTN, to explore the possibility of a merger between the two emerging markets telecom giants
India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 1.17% at Rs 2524.85. The stock recovered from the day`s low of Rs 2490.
India`s second largest listed telecom services provider by sales Reliance Communication shed 5.08% to Rs 543.20 after the company entered into negotiations with South Africa`s MTN Group for a possible merger after MTN`s merger deal with Bharti Airtel collapsed.
Other major Sensex losers were, Jaiprakash Associates (down 5.58% at Rs 224.40), Ambuja Cements (down 5.38% and Maruti Suzuki (down 3.83% at Rs 759.85).
The BSE Bankex underperformed the Sensex, falling 3.56% to 7,939.25. Federal Bank (down 6.09% at Rs 221.95), Kotak Mahindra Bank (down 6% at Rs 658.05), Indian Overseas Bank (down 4.75% at Rs 130.20), Axis Bank (down 4.61% at Rs 762.95), HDFC Bank (down 2.60% at Rs 1,347.45) and State Bank of India (down 2.26% at Rs 1,537.70), slipped.
India`s largest private sector bank by assets ICICI Bank fell 4.29% at Rs 826.70.
The BSE Capital Goods index underperformed the Sensex, falling 2.72% at 12,833.68. Bharat Heavy Electricals (down 5.21% at Rs 1,656.10), Punj Lloyd (down 3.81% at Rs 320.90) and Larsen & Toubro (down 3.34% at Rs 2,749.65), tumbled.
Information technology (IT) stocks rose after the Indian rupee had fellen 0.14% to 42.755 against the dollar in morning deals. However, the domestic curency recovered to trade at 42.55 per dollar in afternoon trade. The BSE IT index outperformed the Sensex, gaining 1.77% at 4,418. Infosys Technologies (up 3.29% at Rs 1,886.40), TCS (up 2.69% at Rs 958.80), HCL Technologies (up 1.28% at Rs 295.85) and Satyam Computer (up 0.25% at Rs 483.10), rose.
However, India`s third largest software exporter by sales Wipro fell 0.43% at Rs 478.65.
Cairn India clocked the highest turover of Rs 180.52 crore on BSE. Reliance Industries (Rs 148.18 crore), Reliance Capital (Rs 145.46 crore), Bajaj Auto (Rs 144.40 crore) and Reliance Power (Rs 142.14 crore), were the other turnover toppers on BSE in that order.
Ispat Industries registered a highest volume of 1.69 crore shares on BSE. IFCI (1.11 crore shares), Aishwarya Telecom (86.54 lakh shares), Spice Communication (80.18 lakh shares) and Reliance Natural Resources (65.51 lakh shares), were the other volume toppers on BSE in that order.
Commercial vehicles maker Eicher Motors rose 20% to Rs 384.30 on reports truck maker Volvo had inked a final agreement to set up a new truck and bus joint venture with the company. Some other reports suggested that Eicher Goodearth, part of the promoter group, was considering buying back 13.12% of the company`s shares at Rs 691.68 each.
Private sector lender Bank of Rajasthan surged 13.77% to Rs 116.05 after it scheduled a board meet on 31 May 2008 to consider issue of bonus shares.
Engineering firm Crompton Greaves gained 2.31% to Rs 237.35 after posting 47.4% surge in net profit to Rs 103.07 crore on 17.1% increase in net sales to Rs 1159.53 crore in Q4 March 2008 over Q4 March 2007.
Auto parts maker Federal-Mogul Goetze (India) rose 1.76% at Rs 75.35 after it said its board will meet on 3 June 2008 to consider a rights issue.
Relentless selling in realty, oil & gas and metal stocks spooked sell-off in late trade on Friday, 23 May 2008. The 30-share BSE Sensex settled 257.47 points or 1.52% lower at 16,649.64 and the broader based S&P CNX Nifty was down 78.9 points or 1.57% at 4,946.55, on that day.
The key benchmark indices suffered losses in the week ended Friday, 3 May 2008 with the BSE Sensex plunging 785.30 points or 4.50% to 16,649.64 and the S&P CNX Nifty sliding 211.15 points or 4.09% to 4,946.55 .
Inflation based on the whole price index rose 7.82% in the year through 10 May 2008, marginally lower than 7.83% rise in the previous week, government data released on Friday, 23 May 2008, showed. Meanwhile, inflation for the year through 15 March 2008 was revised upwards to 8.02% compared to provisional figure of 6.68%.
Spice Communications leads gainers in `A` group
Spice Communications soared 8.94% to Rs 48.75. It was the top gainer from BSE`s A group shares. As per recent reports, UAE`s Emirates Telecommunications (Etisalat) is in talks with Spice Communications for a possible investment in the firm.
GTL Infrastructure advanced 5.51% to Rs 52.70. It was the second biggest gainer in A group. As per reports earlier this month, GTL Infrastructure acquired Essar Group`s tower company Essar Telecom Infrastructure (ETIPL) for an estimated $1.5 billion (Rs 6,000 crore).
Glaxosmithkline Pharma jumped 5.27% to Rs 1130.35. It was the third biggest gainer in A group. On 14 May 2008, the company signed a co-promotion agreement with Daiichi Sankyo India Pharma (DSIN), the Indian subsidiary of Japanese pharmaceuticals major Daiichi Sankyo Company, to market an anti-hypertension drug and its combination products in India.
Sun Pharmaceuticals galloped 3.92% to Rs 1379. It was the fourth biggest gainer in A group.
Infosys Technologies rose 3.29% to Rs 1886.40. It was the fifth biggest gainer in A group.
Asian Markets Fall Sharply On The First Day Of The Week
Asian stocks fell stridently on the first day of the week, with automotive shares leading declines in Tokyo after the yen firmed against the dollar, while shares of telecom companies fell in Hong Kong, sending the Hang Seng index lower, amid uncertainty of who will win in the looming telecom-industry reforms.
In Tokyo the markets tumbled down after the yen firmed against the U.S. dollar. The Nikkei 225 declined 2.3% to 13,690.19, while the Topix index fell 2.4% to 1,344.18.
China`s Shanghai Composite Index eased 3.1% to 3,364.54 and the Shenzhen Composite Index was off 2.9% to 1,021.57. Australia`s S&P ASX/200 was down 1.1% to 5,707 and South Korea`s Composite Index gave up 1.5% to 1,800.58.
Hong Kong`s Hang Seng Index ended the morning session 2.4% lower, shedding 587 points to 24,127.31. The Hang Seng China Enterprises Index, Hong Kong`s benchmark for China stocks, was down 3% to 13,221.28.
Taiwan`s Weighed Price Index fell 1.4% to 8,707 while Singapore`s Straits Times index was down 0.9% to3,093.01; and Malaysia`s nudged 0.3% lower at 1,270.97. Thailand`s SET Index was down 2.4% and New Zealand`s NZX-50 fell 0.4%.
In the afternoon trading India`s Sensitive Index, or Sensex, was down by 2.4% to 16,414.81 and the broader S&P/CNX Nifty fell 1.5% to 4,872.95.
Meanwhile the crude oil rose for a second day in New York, after reaching a record last week, as militant attacks in Nigeria and declining output in Mexico increased the potential for supply disruptions.
The Movement for the Emancipation of the Niger Delta, Nigeria`s main militant group, said it attacked a crude-oil pumping station operated by Royal Dutch Shell Plc. Oil output in Mexico, the third-largest supplier to the U.S., for April fell the most in more than 12 years as flows from its largest field declined.
Crude oil for July delivery rose as much as $1.08, or 0.8 percent, to $133.27 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $133.11 at 9:44 a.m. in London.
The July contract closed up $1.38, or 1.1%, to $132.19 on the New York Mercantile Exchange Friday.
In currencies, the yen was quoted at 103.30 against the U.S. dollar, up from 103.35 yen in late New York Friday and 104.04 late Thursday.
The downbeat tone in Asia follows a negative session for U.S. indexes Friday, with shares pressured by a report showing inventories of unsold U.S. homes surged to a 23-year high in April. Market activity remained subdued ahead of the three-day Memorial Day weekend.
The Dow Jones Industrial Average fell 145 points, The S&P 500 index fell 18 points, and the Nasdaq Composite fell 19 points.
European stocks edged lower in thin trade on Monday with markets in the U.K. and the U.S. shut for a holiday. In the morning trade the indices in Germany, France and Switzerland lost about 0.1% each in the morning trade. However at 9.12 GMT the German DAX 30 gained 0.2% to 6,957.02 while the French CAC 40 dropped 0.2% to 4,944.01.
On the economic front there is no significant release scheduled for the day.
In Tokyo the markets tumbled down after the yen firmed against the U.S. dollar. The Nikkei 225 declined 2.3% to 13,690.19, while the Topix index fell 2.4% to 1,344.18.
China`s Shanghai Composite Index eased 3.1% to 3,364.54 and the Shenzhen Composite Index was off 2.9% to 1,021.57. Australia`s S&P ASX/200 was down 1.1% to 5,707 and South Korea`s Composite Index gave up 1.5% to 1,800.58.
Hong Kong`s Hang Seng Index ended the morning session 2.4% lower, shedding 587 points to 24,127.31. The Hang Seng China Enterprises Index, Hong Kong`s benchmark for China stocks, was down 3% to 13,221.28.
Taiwan`s Weighed Price Index fell 1.4% to 8,707 while Singapore`s Straits Times index was down 0.9% to3,093.01; and Malaysia`s nudged 0.3% lower at 1,270.97. Thailand`s SET Index was down 2.4% and New Zealand`s NZX-50 fell 0.4%.
In the afternoon trading India`s Sensitive Index, or Sensex, was down by 2.4% to 16,414.81 and the broader S&P/CNX Nifty fell 1.5% to 4,872.95.
Meanwhile the crude oil rose for a second day in New York, after reaching a record last week, as militant attacks in Nigeria and declining output in Mexico increased the potential for supply disruptions.
The Movement for the Emancipation of the Niger Delta, Nigeria`s main militant group, said it attacked a crude-oil pumping station operated by Royal Dutch Shell Plc. Oil output in Mexico, the third-largest supplier to the U.S., for April fell the most in more than 12 years as flows from its largest field declined.
Crude oil for July delivery rose as much as $1.08, or 0.8 percent, to $133.27 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $133.11 at 9:44 a.m. in London.
The July contract closed up $1.38, or 1.1%, to $132.19 on the New York Mercantile Exchange Friday.
In currencies, the yen was quoted at 103.30 against the U.S. dollar, up from 103.35 yen in late New York Friday and 104.04 late Thursday.
The downbeat tone in Asia follows a negative session for U.S. indexes Friday, with shares pressured by a report showing inventories of unsold U.S. homes surged to a 23-year high in April. Market activity remained subdued ahead of the three-day Memorial Day weekend.
The Dow Jones Industrial Average fell 145 points, The S&P 500 index fell 18 points, and the Nasdaq Composite fell 19 points.
European stocks edged lower in thin trade on Monday with markets in the U.K. and the U.S. shut for a holiday. In the morning trade the indices in Germany, France and Switzerland lost about 0.1% each in the morning trade. However at 9.12 GMT the German DAX 30 gained 0.2% to 6,957.02 while the French CAC 40 dropped 0.2% to 4,944.01.
On the economic front there is no significant release scheduled for the day.
Market extends losses
The market today extended last week`s steep looses on weak cues from Asian markets. Banking, metal and capital goods stocks suffered the most in today`s slide. Information technology and healthcare stocks were star performers of the session.
Asian stocks fell on Monday, 26 May 2008, as investors feared rising inflation and sluggish US economic growth would seriously dent consumer demand in the region`s biggest export market. Key indices in China, Japan, Hong Kong, Taiwan, Singapore and South Korea were down by 0.60% to 3.13%.
But European markets, which opened after the Indian markets, were positive. Key indices in France and Germany were up by 0.01% to 0.26%. UK market is closed today on account of Spring Bank holiday.
On Friday, 23 May 2008, the US markets declined on concerns about a worsening housing recession and rising crude oil prices. The Dow Jones industrial average plunged 145.99 points, or 1.16%, to 12,479.63. The S&P 500 index declined 18.42 points, or 1.32%, to 1,375.93, and the Nasdaq Composite index fell 19.91 points, or 0.81%, to 2,444.67.
As per provisional closing, the 30-share BSE Sensex was down 246.30 points or 1.48% at 16,403.34. The index lost 348.76 points at day`s low of 16,300.88, hit at the fag end of the session.
The broader based S&P CNX Nifty was down 60.6 points or 1.23% at 4885.95.
The market breadth was poor on BSE with 669 shares advancing as compared to 2038 stocks that declined. 50 stocks remained unchanged.
The BSE Mid-Cap index fell 2.43% to 6,768.82 and BSE Small-Cap index fell 2.29% to 8,322.80.
BSE clocked a turnover of Rs 4134 crore as against Rs 5,389.63 on Friday, 23 May 2008.
India`s biggest listed cellular services provider by market share Bharti Airtel advanced 3.18% at Rs 863.40 after the company decided to disengage from the ongoing talks with the South African telecom major, MTN, to explore the possibility of a merger between the two emerging markets telecom giants
India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 0.83% at Rs 2533.70. The stock recovered from the day`s low of Rs 2490.
India`s largest private sector bank by assets ICICI Bank fell 3.79% at Rs 831.05.
Top Sensex losers were, Jaiprakash Associates (down 5.70% at Rs 224.10), Reliance Communication (down 5.08% at Rs 543), Bharat Heavy Electricals (down 4.88% at Rs 1662), Ambuja Cements (down 3.57% at Rs 98.50), and Grasim Industries (down 3.45% at Rs 2210).
Top Sensex gainers were, Infosys Technologies (up 3.48% at Rs 1890), TCS (up 3.14% at Rs 963), and Satyam Computer (up 0.85% at Rs 486).
Commercial vehicles maker Eicher Motors rose 20% to Rs 384.30 on reports truck maker Volvo had inked a final agreement to set up a new truck and bus joint venture with the company. Some other reports suggested that Eicher Goodearth, part of the promoter group, was considering buying back 13.12% of the company`s shares at Rs 691.68 each.
Private sector lender Bank of Rajasthan surged 13.53% to Rs 115.80 after it scheduled a board meet on 31 May 2008 to consider issue of bonus shares.
Engineering firm Crompton Greaves gained 2.28% to Rs 237.30 after posting 47.4% surge in net profit to Rs 103.07 crore on 17.1% increase in net sales to Rs 1159.53 crore in Q4 March 2008 over Q4 March 2007.
Auto parts maker Federal-Mogul Goetze (India) rose 1.49% at Rs 75.15 after it said its board will meet on 3 June 2008 to consider a rights issue.
As per provisional data, foreign funds sold shares worth a net Rs 654.31 crore on Friday, 23 May 2008. Domestic funds bought shares worth a net Rs 750.03 crore on that day.
Foreign institutional investors (FIIs) were net sellers of Rs 1118.77 crore in the futures & options segment on Friday, 23 May 2008. They were net sellers of index futures to the tune of Rs 1006.88 crore and sold index options worth Rs 59.74 crore. They were net sellers of stock futures to the tune of Rs 62.53 crore and bought stock options worth Rs 10.38 crore.
Inflation based on the whole price index rose 7.82% in the year through 10 May 2008, marginally lower than 7.83% rise in the previous week, government data released on Friday, 23 May 2008, showed. Meanwhile, inflation for the year through 15 March 2008 was revised upwards to 8.02% compared to provisional figure of 6.68%.
Relentless selling in realty, oil & gas and metal stocks spooked sell-off in late trade on Friday, 23 May 2008. The 30-share BSE Sensex settled 257.47 points or 1.52% lower at 16,649.64 and the broader based S&P CNX Nifty was down 78.9 points or 1.57% at 4,946.55, on that day.
The key benchmark indices suffered losses in the week ended Friday, 3 May 2008 with the BSE Sensex plunging 785.30 points or 4.50% to 16,649.64 and the S&P CNX Nifty sliding 211.15 points or 4.09% to 4,946.55 .
Geojit to shut down commodity broking
Equity and commodity brokerage firm Geojit Financial Services
is likely to start a separate commodity broking company in the coming
months to translocate over 17,000 commodity clients, sources said.
The Kochi-based broking firm announced on Friday that it would shut
down its commodity business, and has accordingly informed the
commodity exchanges. French Bank, BNP Paribas, that holds a 27% stake
in the brokerage would pay Rs 40 crore in compensation for shutting
down the commodity subsidiary.
CJ George, MD of Geojit Financial said, "We are shutting down the
commodity business but we have not reached a decision on what we will
do with our existing clients."
Commodity exchanges declined to comment on the development. Commodity
markets regulator Forward Markets Commission (FMC), indicated that
this has not been brought to the FMC's notice as yet. "In such a
case, the brokerage should duly inform exchanges and the regulator
would not step in unless required," officials said.
The move would enable BNP Paribas to raise its stake in Geojit
Financial Services. As per existing guidelines, banks are not yet
permitted to enter commodity trading. Therefore, RBI had refused to
clear the proposal of the bank since the brokerage also ran a
commodity trading business. In case BNP Paribas did not obtain
regulatory approval, it would have to reduce its stake to 15% and
thereby avoid the mandatory open offer.
The turnover of commodity broking of Geojit has declined to Rs 13
crore for the year ending March 2008, compared with Rs 17 crore last
financial year. The decline is attributed to the dwindling volumes in
commodities due to various clamp-downs on agri-commodity futures by
the government. Geojit Commodities, a subsidiary of the Kochi-based
broking firm, conducts majority trading in agricultural commodities.
Geojit Financial Services announced that its net profits for the
January-March 2008 quarter had doubled to Rs 11.8 crore, from Rs 5.7
crore. The total revenues for the period rose to Rs 64.3 crore
compared with 36.1 crore in the comparable quarter last year. Geojit
Financial shares ended Friday 5.7% lower at Rs 57.35 on the BSE,
while the benchmark sensex closed 1.52% down at 16,649.64.
is likely to start a separate commodity broking company in the coming
months to translocate over 17,000 commodity clients, sources said.
The Kochi-based broking firm announced on Friday that it would shut
down its commodity business, and has accordingly informed the
commodity exchanges. French Bank, BNP Paribas, that holds a 27% stake
in the brokerage would pay Rs 40 crore in compensation for shutting
down the commodity subsidiary.
CJ George, MD of Geojit Financial said, "We are shutting down the
commodity business but we have not reached a decision on what we will
do with our existing clients."
Commodity exchanges declined to comment on the development. Commodity
markets regulator Forward Markets Commission (FMC), indicated that
this has not been brought to the FMC's notice as yet. "In such a
case, the brokerage should duly inform exchanges and the regulator
would not step in unless required," officials said.
The move would enable BNP Paribas to raise its stake in Geojit
Financial Services. As per existing guidelines, banks are not yet
permitted to enter commodity trading. Therefore, RBI had refused to
clear the proposal of the bank since the brokerage also ran a
commodity trading business. In case BNP Paribas did not obtain
regulatory approval, it would have to reduce its stake to 15% and
thereby avoid the mandatory open offer.
The turnover of commodity broking of Geojit has declined to Rs 13
crore for the year ending March 2008, compared with Rs 17 crore last
financial year. The decline is attributed to the dwindling volumes in
commodities due to various clamp-downs on agri-commodity futures by
the government. Geojit Commodities, a subsidiary of the Kochi-based
broking firm, conducts majority trading in agricultural commodities.
Geojit Financial Services announced that its net profits for the
January-March 2008 quarter had doubled to Rs 11.8 crore, from Rs 5.7
crore. The total revenues for the period rose to Rs 64.3 crore
compared with 36.1 crore in the comparable quarter last year. Geojit
Financial shares ended Friday 5.7% lower at Rs 57.35 on the BSE,
while the benchmark sensex closed 1.52% down at 16,649.64.
Thursday, May 22, 2008
Havells India net profit rises 32.91% in the March 2008 quarter
Net profit of Havells India rose 32.91% to Rs 39.13 crore in the quarter ended March 2008 as against Rs 29.44 crore during the previous quarter ended March 2007. Sales rose 24.48% to Rs 548.10 crore in the quarter ended March 2008 as against Rs 440.32 crore during the previous quarter ended March 2007.
For the full year, net profit rose 40.59% to Rs 143.54 crore in the yearended March 2008 as against Rs 102.10 crore during the previous year ended March 2007. Sales rose 32.81% to Rs 2054.86 crore in the year ended March 2008 as against Rs 1547.20 crore during the previous year ended March 2007.
For the full year, net profit rose 40.59% to Rs 143.54 crore in the yearended March 2008 as against Rs 102.10 crore during the previous year ended March 2007. Sales rose 32.81% to Rs 2054.86 crore in the year ended March 2008 as against Rs 1547.20 crore during the previous year ended March 2007.
Lakshmi Mills Company reports net loss of Rs 0.08 crore in the March 2008 quarter
Lakshmi Mills Company reported net loss of Rs 0.08 crore in the quarter ended March 2008 as against net profit of Rs 2.86 crore during the previous quarter ended March 2007. Sales declined 26.63% to Rs 23.25 crore in the quarter ended March 2008 as against Rs 31.69 crore during the previous quarter ended March 2007.
For the full year, net loss reported to Rs 4.99 crore in the year ended March 2008 as against net profit of Rs 5.58 crore during the previous year ended March 2007. Sales declined 28.85% to Rs 100.77 crore in the year ended March 2008 as against Rs 141.64 crore during the previous year ended March 2007.
For the full year, net loss reported to Rs 4.99 crore in the year ended March 2008 as against net profit of Rs 5.58 crore during the previous year ended March 2007. Sales declined 28.85% to Rs 100.77 crore in the year ended March 2008 as against Rs 141.64 crore during the previous year ended March 2007.
Balaji Telefilms net profit rises 12.08% in the March 2008 quarter
Net profit of Balaji Telefilms rose 12.08% to Rs 23.85 crore in the quarter ended March 2008 as against Rs 21.28 crore during the previous quarter ended March 2007. Sales rose 24.71% to Rs 96.51 crore in the quarter ended March 2008 as against Rs 77.39 crore during the previous quarter ended March 2007.
For the full year, net profit rose 9.62% to Rs 87.39 crore in the year ended March 2008 as against Rs 79.72 crore during the previous year ended March 2007. Sales rose 3.62% to Rs 328.97 crore in the year ended March 2008 as against Rs 317.47 crore during the previous year ended March 2007.
For the full year, net profit rose 9.62% to Rs 87.39 crore in the year ended March 2008 as against Rs 79.72 crore during the previous year ended March 2007. Sales rose 3.62% to Rs 328.97 crore in the year ended March 2008 as against Rs 317.47 crore during the previous year ended March 2007.
Dalmia Cement (Bharat) net profit rises 13.25% in the March 2008 quarter
Net profit of Dalmia Cement (Bharat) rose 13.25% to Rs 70.00 crore in the quarter ended March 2008 as against Rs 61.81 crore during the previous quarter ended March 2007. Sales rose 39.08% to Rs 414.53 crore in the quarter ended March 2008 as against Rs 298.06 crore during the previous quarter ended March 2007.
For the full year,net profit rose 51.64% to Rs 347.15 crore in the year ended March 2008 as against Rs 228.93 crore during the previous year ended March 2007. Sales rose 50.10% to Rs 1480.67 crore in the year ended March 2008 as against Rs 986.47 crore during the previous year ended March 2007.
For the full year,net profit rose 51.64% to Rs 347.15 crore in the year ended March 2008 as against Rs 228.93 crore during the previous year ended March 2007. Sales rose 50.10% to Rs 1480.67 crore in the year ended March 2008 as against Rs 986.47 crore during the previous year ended March 2007.
Dishman Pharmaceuticals and Chemicals net profit declines 34.08% in the March 2008 quarter
Net profit of Dishman Pharmaceuticals and Chemicals declined 34.08% to Rs 9.36 crore in the quarter ended March 2008 as against Rs 14.20 crore during the previous quarter ended March 2007. Sales rose 30.62% to Rs 103.05 crore in the quarter ended March 2008 as against Rs 78.89 crore during the previous quarter ended March 2007.
For the full year,net profit declined 2.15% to Rs 59.56 crore in the yearended March 2008 as against Rs 60.87 crore during the previous year ended March 2007. Sales rose 30.50% to Rs 359.20 crore in the year ended March 2008 as against Rs 275.24 crore during the previous year ended March 2007.
For the full year,net profit declined 2.15% to Rs 59.56 crore in the yearended March 2008 as against Rs 60.87 crore during the previous year ended March 2007. Sales rose 30.50% to Rs 359.20 crore in the year ended March 2008 as against Rs 275.24 crore during the previous year ended March 2007.
Sebi puts off plan to levy upfront margins for institutional investorsMarket regulator Securities & Exchange Board of India (Sebi) has put off its dec
Market regulator Securities & Exchange Board of India (Sebi) has put off its decision to levy upfront margins for institutional investors in the cash market. Sebi had earlier said that institutional investors will be required to pay upfront margins from 16 June 2008.
In the light of difficulties expressed by the market participants regarding implementation of upfront margining of institutional trades in the cash market, it has been decided to keep the same in abeyance, Sebi said in a circular issued to stock exchanges today, 22 May 2008. Accordingly, institutional trades in the cash market would continue to be margined on T+1 (transaction plus one) basis till further directions, it said.
In the light of difficulties expressed by the market participants regarding implementation of upfront margining of institutional trades in the cash market, it has been decided to keep the same in abeyance, Sebi said in a circular issued to stock exchanges today, 22 May 2008. Accordingly, institutional trades in the cash market would continue to be margined on T+1 (transaction plus one) basis till further directions, it said.
Crude Oil Steadies at Record Depress Asian Market Advance
Asian shares traded mostly lower, with Japanese and Australian shares reversed earlier losses to end higher, shrugging off a slump in global equity markets.
The declines were in line with a weaker finish on Wall Street yesterday, after crude-oil prices surged above $133 a barrel, alarming investors worried about the impact upon consumers and the overall economy. On Wall Street, the Dow Jones Industrial Average fell 227 points to end at 12,601 with all it 30 components falling. The S&P 500 fell 22.69 points to 1,390. The Nasdaq Composite fell 43.9 points to 2,448.
Front-month crude oil futures rocketed to $135.04 a barrel in electronic trading, before easing to $134.75 at midday in Tokyo, up $1.59. Wednesday, the July contract closed at $133.17 a barrel on the New York Mercantile Exchange, up $4.19, or 3.3%.
The Nikkei closed 0.4% higher at 13,978.46, reversing losses that had seen the benchmark 1.2% lower at midday. The Topix index ended 0.7% higher at 1,379.67.
Australia`s S&P ASX 200 was up by 0.1% at 5,826.90. South Korea`s Kospi traded a little lower by 0.7% at 1,835.42.
Hong Kong`s Hang Seng Index was down 1.6% at 25,0.43.12. The Hong Kong China Enterprises Index, or mainland-incorporated shares listed in Hong Kong, eased 2.2% to 13,820.84.
The Shanghai Composite Index tumbled by 1.7% to 3,485.63. Meanwhile, China`s crude oil imports for the January to April period climbed 10% from a year earlier to 448.3 million barrels. Imports for the month of April fell 4% to 106.80 million barrels, the bureau said.
In other regional action, Taiwan`s Weighted Price Index fell 0.1% to 9,008.03 while Singapore`s Straits Times Index was down 1.1%. Indonesia`s Jakarta Composite Index was up by 0.4% to 2,503.95, Malaysia`s KLSE Composite Index was down 0.3% to 1,277.57.
In currencies, the U.S. dollar was quoted a 104.35-yen, compared to 104.73 yen in late New York trading Tuesday.
European opened on a weaker note, with autos and airlines under pressure again as light sweet crude showed no sign of breaking its record-breaking run.
Nationally, the U.K. FTSE 100 index fell 0.5% to 6,168.40, the German DAX 30 index declined 0.8% to 6,983.15 - falling through the 7,000 mark for the first time since 9 May 9 and the French CAC-40 index also broke through a key level. The French index fell 1% to trade below 5,000 at 4.979.63
Meanwhile, U.K`s retail sales volumes fell 0.2% on the month in April, but were up 4.2% on the year. The annual growth in retail spending was the lowest since December 2007.
March`s data was revised up to show a monthly decline of 0.2%, compared with the 0.4% fall originally reported. The annual growth rate was revised up to 4.7% in March from 4.6%.
In April, food store sales fell 1.0% on the month, the biggest drop since August 2006. Meanwhile sales in non-food stores increased 0.2% on the month. Within that sector, sales in non-specialized stores were up 2.5% on the month.
The slowdown in annual retail sales growth in April was led by a drop in textile, clothing and footwear stores, in which sales declined 1.5% - the biggest drop since October 1998. However, it was partly explained by the fact that this year saw the coldest April since 2001.
The declines were in line with a weaker finish on Wall Street yesterday, after crude-oil prices surged above $133 a barrel, alarming investors worried about the impact upon consumers and the overall economy. On Wall Street, the Dow Jones Industrial Average fell 227 points to end at 12,601 with all it 30 components falling. The S&P 500 fell 22.69 points to 1,390. The Nasdaq Composite fell 43.9 points to 2,448.
Front-month crude oil futures rocketed to $135.04 a barrel in electronic trading, before easing to $134.75 at midday in Tokyo, up $1.59. Wednesday, the July contract closed at $133.17 a barrel on the New York Mercantile Exchange, up $4.19, or 3.3%.
The Nikkei closed 0.4% higher at 13,978.46, reversing losses that had seen the benchmark 1.2% lower at midday. The Topix index ended 0.7% higher at 1,379.67.
Australia`s S&P ASX 200 was up by 0.1% at 5,826.90. South Korea`s Kospi traded a little lower by 0.7% at 1,835.42.
Hong Kong`s Hang Seng Index was down 1.6% at 25,0.43.12. The Hong Kong China Enterprises Index, or mainland-incorporated shares listed in Hong Kong, eased 2.2% to 13,820.84.
The Shanghai Composite Index tumbled by 1.7% to 3,485.63. Meanwhile, China`s crude oil imports for the January to April period climbed 10% from a year earlier to 448.3 million barrels. Imports for the month of April fell 4% to 106.80 million barrels, the bureau said.
In other regional action, Taiwan`s Weighted Price Index fell 0.1% to 9,008.03 while Singapore`s Straits Times Index was down 1.1%. Indonesia`s Jakarta Composite Index was up by 0.4% to 2,503.95, Malaysia`s KLSE Composite Index was down 0.3% to 1,277.57.
In currencies, the U.S. dollar was quoted a 104.35-yen, compared to 104.73 yen in late New York trading Tuesday.
European opened on a weaker note, with autos and airlines under pressure again as light sweet crude showed no sign of breaking its record-breaking run.
Nationally, the U.K. FTSE 100 index fell 0.5% to 6,168.40, the German DAX 30 index declined 0.8% to 6,983.15 - falling through the 7,000 mark for the first time since 9 May 9 and the French CAC-40 index also broke through a key level. The French index fell 1% to trade below 5,000 at 4.979.63
Meanwhile, U.K`s retail sales volumes fell 0.2% on the month in April, but were up 4.2% on the year. The annual growth in retail spending was the lowest since December 2007.
March`s data was revised up to show a monthly decline of 0.2%, compared with the 0.4% fall originally reported. The annual growth rate was revised up to 4.7% in March from 4.6%.
In April, food store sales fell 1.0% on the month, the biggest drop since August 2006. Meanwhile sales in non-food stores increased 0.2% on the month. Within that sector, sales in non-specialized stores were up 2.5% on the month.
The slowdown in annual retail sales growth in April was led by a drop in textile, clothing and footwear stores, in which sales declined 1.5% - the biggest drop since October 1998. However, it was partly explained by the fact that this year saw the coldest April since 2001.
Sensex settles below 17,000
Sharp fall in US stocks overnight and surging crude oil prices weighed on the market sentiment today, triggering a broad based decline in blue chips. Asian markets which opened before Indian markets were weak. European markets which opened after Indian market were mixed.
Banking, capital goods, realty and auto stocks fell. All the sectoral indices on BSE were in red. The market breadth was weak.
On Wednesday, 21 May 2008, the US Federal Reserve cut its 2008 US economic growth forecast and signaled that mounting concerns over inflation would make further interest rate cuts unlikely, driving the three major US indexes down over 1.5%. Oil prices surged to a record high above $135 per barrel on Thursday, 22 May 2008, stoking fears of global inflation.
The 30-share BSE Sensex provisionally ended down 326.14 points or 1.89% at 16,917.02. Sensex lost 379.78 points at day`s low of 16,863.38 touched in late trade.
The broader based S&P CNX Nifty was down 89.9 points or 1.76% at 5,027.75 as per provisional figures.
The BSE clocked a turnover of Rs 5,742 crore, lower than a turnover of Rs 7,126.12 crore on Wednesday, 21 May 2008.
The market breadth was weak on BSE with 1,042 shares advancing as compared to 1,678 that declined. 67 remained unchanged.
Among the 30-member Sensex pack, 29 declined while 1 stock remained unchanged.
The BSE Mid-Cap index declined 105.49 points or 1.48% to 7,042.56 and BSE Small-Cap index declined 134.79 points or 1.53% to 8,654.19.
Banking stocks declined. ICICI Bank (down 3.43% to Rs 880), HDFC Bank (down 2.1% to Rs 1,379.90) and State Bank of India (down 3.28% to Rs 1,607) edged lower.
Realty stocks fell. Indiabulls Real Estate (down 3.9% to Rs 510), Unitech (down 3.1% to Rs 273.85) and DLF (down 2.17% to Rs 620.70) edged lower.
Capital goods stocks declined. Larsen & Toubro (down 2.57% to Rs 2,916.80), Bharat Heavy Electricals (down 1.33% to Rs 1,748.05) and Suzlon Energy (down 5.62% to Rs 291.60) edged lower.
Auto stocks declined. Tata Motors (down 3.98% to Rs 661.45), Maruti Suzuki India (down 1.79% to Rs 800.50), Hero Honda Motors (down 0.03% to Rs 788.50) edged lower.
India`s largest tractor maker by sales Mahindra & Mahindra (M&M) declined 2.2% to Rs 652.35. It has reportedly signed a term sheet with Kinetic Motors to acquire a majority stake in the company. According to reports, M&M is looking to acquire 76% stake in Kinetic Motors valued at about Rs 120 crore. A deal could fructify in the next two months if the due diligence proceeds smoothly, the reports added.
India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 1.89% to Rs 2,617.35.
India`s largest state-run oil exploration firm in terms of revenue Oil and Natural Gas Corporation (ONGC) declined 1.53% to Rs 924.35. It is reportedly planning to sell 30% to 40% each in two blocks in Vietnam to share the risks and drilling costs. ONGC owns 100% in the two deepwater exploration blocks. The buyer has not yet been finalised, the reports added.
India`s largest drug maker by sales Ranbaxy Laboratories declined 1.14% to Rs 498.25. It has reportedly struck two deals with group companies. Ranbaxy has sold some land and building for Rs 90 crore to a group company. It has also picked up 24.91% stake in Shimal Laboratories, another promoter family company, for Rs 93.4 crore, the reports added.
Reliance Infrastructure (down 3.97% to Rs 1,322.95), Reliance Communications (down 3.16% to Rs 584.65), Ambuja Cements (down 2.61% to Rs 104.30), Jaiprakash Associates (down 2.65% to Rs 246.10), ITC (down 2.36% to Rs 223.05), HDFC (down 2.29% to Rs 2,626.70) edged lower from the Sensex pack.
India`s largest aluminium maker by sales Hindalco Industries rose 0.2% to Rs 197.65.
Basant Agro Tech India rose rose 0.49% to Rs 61. The Company has acquired a single super phosphate fertilizer (SSP) plant in Madhya Pradesh, having installed capacity of 75,000 tonnes per annum (TPA) of SSP fertilizers and 50,000 TPA of NPK Mixture fertilisers. With this the total installed capacity of the company has gone up to 1,95,000 TPA of SSP fertilisers.
Omaxe declined 3.28% to Rs 220. It has appointed Leather Sport, a company promoted by Indian tennis star Leander Paes, as a consultant to provide the concept and designs for the fitness facilities for its projects
Praj Industries declined 2.87% to Rs 211.55. The company has received a contract for supply of key equipment to Vivergo Fuels, UK for yet another bioethanol plant in Europe through its subsidiary, BioCnergy Europa B. V. (a joint venture with Aker Solutions, Netherlands).
In Asia, key benchmark indices in Hong Kong, China, South Korea, Singapore and Taiwan were down by between 0.08% to 1.89%. However Japan`s Nikkei was up 0.37%.
European markets were mixed. Key benchmark indices in Frnace andd Germany were down between 0.33% to 0.52%. UK`s FTSE 100 was up 0.22%.
Earnings downgrade amid rising input and interest costs, high inflation and drying up of global liquidity due to credit crisis remain major concern for the Indian stock market. Inflation based on the wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week`s annual rise of 7.61%, government data released on 16 May 2008, showed. It was the highest since an annual reading of 7.93% on 6 November 2004.
Further, a steep increase in upward revision in inflation rate for the week ended 8 March 2008, to 7.78% from the provisional 5.92%, came as a rude shock to marketmen. According to retail brokerage Sharekhan, the steep upward revision in inflation rate is a cause for concern, as prices of many commodities have not been updated for varied periods. Moreover, a sharp fall in the rupee against the dollar in the past few days has heightened concerns about inflation. This is because the fall in rupee will raise cost of imports which in turn will result in further rise in inflation.
In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review.
With parliamentary elections scheduled next year (May 2009), the government may leave no stone unturned in its attempt to tame inflation. This is bad news for commodity scris such as cement and steel. Cement maker ACC said earlier this months that its margins will be hurt by a decision to hold its prices for 2 to 3 months that was taken after the government asked cement firms to help contain price pressures. The government recently imposed export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. The government had earlier banned export of cement and non-basmati rice. On 7 May 2008, the government ordered suspension in futures trading in channa, refined soyoil, potato and rubber for four months.
Meanwhile, as per a recent study by CLSA, large amount of foreign currency convertible bonds (FCCBs) issued by Indian companies are coming up for redemption in the next 18-24 months. After recent stock market volatility many FCCBs are at risk of not converting i.e. if the stock market remains subdued, it will stop the bond holders from opting for an equity conversion as it will be easier for them to buy the stock from the open market instead of paying the agreed premium.
When the FCCBs come for redemption, some of these companies may have to take on more debt to redeem the FCCB, thereby raising interest outgo. In the event FCCBs don`t get converted, companies have the option to lower the conversion price in line with the market, leading to higher equity dilution. If companies decide to issue fresh FCCBs to finance redemption of FCCBs, it will be at lower premium than earlier.
The structural growth drivers of the Indian economy remain intact – India`s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India`s economy. A CLSA report says India`s infrastructure development is set to accelerate, backed by greater private sector participation and improved finances of government and public sector enterprises. Rating agency Crisil in its outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.
Given the continued inflow to unit linked insurance plans (Ulips) and equity linked savings schemes (ELSS) of mutual funds, stock-specific buying will continue depending on fundamentals of individual stocks. Insurance firms are now a major player in the Indian stock market given the huge mop up in Ulips in recent years. It was buying support from domestic funds which had aided the recent recovery on the bourses.
Meanwhile, as per recent reports, ELSS which offer tax benefit are catching the fancy of small savers. ELSS funds saw their collective assets jump more than nine times to about Rs 16000 crore in three years ending March 2008. In 2005 the investment limit eligible for income tax breaks was raised ten times to Rs 1,00,000 rupees for ELSS funds. Systematic investment plan (SIP) are said to be driving inflows into ELSS funds.
Banking, capital goods, realty and auto stocks fell. All the sectoral indices on BSE were in red. The market breadth was weak.
On Wednesday, 21 May 2008, the US Federal Reserve cut its 2008 US economic growth forecast and signaled that mounting concerns over inflation would make further interest rate cuts unlikely, driving the three major US indexes down over 1.5%. Oil prices surged to a record high above $135 per barrel on Thursday, 22 May 2008, stoking fears of global inflation.
The 30-share BSE Sensex provisionally ended down 326.14 points or 1.89% at 16,917.02. Sensex lost 379.78 points at day`s low of 16,863.38 touched in late trade.
The broader based S&P CNX Nifty was down 89.9 points or 1.76% at 5,027.75 as per provisional figures.
The BSE clocked a turnover of Rs 5,742 crore, lower than a turnover of Rs 7,126.12 crore on Wednesday, 21 May 2008.
The market breadth was weak on BSE with 1,042 shares advancing as compared to 1,678 that declined. 67 remained unchanged.
Among the 30-member Sensex pack, 29 declined while 1 stock remained unchanged.
The BSE Mid-Cap index declined 105.49 points or 1.48% to 7,042.56 and BSE Small-Cap index declined 134.79 points or 1.53% to 8,654.19.
Banking stocks declined. ICICI Bank (down 3.43% to Rs 880), HDFC Bank (down 2.1% to Rs 1,379.90) and State Bank of India (down 3.28% to Rs 1,607) edged lower.
Realty stocks fell. Indiabulls Real Estate (down 3.9% to Rs 510), Unitech (down 3.1% to Rs 273.85) and DLF (down 2.17% to Rs 620.70) edged lower.
Capital goods stocks declined. Larsen & Toubro (down 2.57% to Rs 2,916.80), Bharat Heavy Electricals (down 1.33% to Rs 1,748.05) and Suzlon Energy (down 5.62% to Rs 291.60) edged lower.
Auto stocks declined. Tata Motors (down 3.98% to Rs 661.45), Maruti Suzuki India (down 1.79% to Rs 800.50), Hero Honda Motors (down 0.03% to Rs 788.50) edged lower.
India`s largest tractor maker by sales Mahindra & Mahindra (M&M) declined 2.2% to Rs 652.35. It has reportedly signed a term sheet with Kinetic Motors to acquire a majority stake in the company. According to reports, M&M is looking to acquire 76% stake in Kinetic Motors valued at about Rs 120 crore. A deal could fructify in the next two months if the due diligence proceeds smoothly, the reports added.
India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 1.89% to Rs 2,617.35.
India`s largest state-run oil exploration firm in terms of revenue Oil and Natural Gas Corporation (ONGC) declined 1.53% to Rs 924.35. It is reportedly planning to sell 30% to 40% each in two blocks in Vietnam to share the risks and drilling costs. ONGC owns 100% in the two deepwater exploration blocks. The buyer has not yet been finalised, the reports added.
India`s largest drug maker by sales Ranbaxy Laboratories declined 1.14% to Rs 498.25. It has reportedly struck two deals with group companies. Ranbaxy has sold some land and building for Rs 90 crore to a group company. It has also picked up 24.91% stake in Shimal Laboratories, another promoter family company, for Rs 93.4 crore, the reports added.
Reliance Infrastructure (down 3.97% to Rs 1,322.95), Reliance Communications (down 3.16% to Rs 584.65), Ambuja Cements (down 2.61% to Rs 104.30), Jaiprakash Associates (down 2.65% to Rs 246.10), ITC (down 2.36% to Rs 223.05), HDFC (down 2.29% to Rs 2,626.70) edged lower from the Sensex pack.
India`s largest aluminium maker by sales Hindalco Industries rose 0.2% to Rs 197.65.
Basant Agro Tech India rose rose 0.49% to Rs 61. The Company has acquired a single super phosphate fertilizer (SSP) plant in Madhya Pradesh, having installed capacity of 75,000 tonnes per annum (TPA) of SSP fertilizers and 50,000 TPA of NPK Mixture fertilisers. With this the total installed capacity of the company has gone up to 1,95,000 TPA of SSP fertilisers.
Omaxe declined 3.28% to Rs 220. It has appointed Leather Sport, a company promoted by Indian tennis star Leander Paes, as a consultant to provide the concept and designs for the fitness facilities for its projects
Praj Industries declined 2.87% to Rs 211.55. The company has received a contract for supply of key equipment to Vivergo Fuels, UK for yet another bioethanol plant in Europe through its subsidiary, BioCnergy Europa B. V. (a joint venture with Aker Solutions, Netherlands).
In Asia, key benchmark indices in Hong Kong, China, South Korea, Singapore and Taiwan were down by between 0.08% to 1.89%. However Japan`s Nikkei was up 0.37%.
European markets were mixed. Key benchmark indices in Frnace andd Germany were down between 0.33% to 0.52%. UK`s FTSE 100 was up 0.22%.
Earnings downgrade amid rising input and interest costs, high inflation and drying up of global liquidity due to credit crisis remain major concern for the Indian stock market. Inflation based on the wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week`s annual rise of 7.61%, government data released on 16 May 2008, showed. It was the highest since an annual reading of 7.93% on 6 November 2004.
Further, a steep increase in upward revision in inflation rate for the week ended 8 March 2008, to 7.78% from the provisional 5.92%, came as a rude shock to marketmen. According to retail brokerage Sharekhan, the steep upward revision in inflation rate is a cause for concern, as prices of many commodities have not been updated for varied periods. Moreover, a sharp fall in the rupee against the dollar in the past few days has heightened concerns about inflation. This is because the fall in rupee will raise cost of imports which in turn will result in further rise in inflation.
In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review.
With parliamentary elections scheduled next year (May 2009), the government may leave no stone unturned in its attempt to tame inflation. This is bad news for commodity scris such as cement and steel. Cement maker ACC said earlier this months that its margins will be hurt by a decision to hold its prices for 2 to 3 months that was taken after the government asked cement firms to help contain price pressures. The government recently imposed export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. The government had earlier banned export of cement and non-basmati rice. On 7 May 2008, the government ordered suspension in futures trading in channa, refined soyoil, potato and rubber for four months.
Meanwhile, as per a recent study by CLSA, large amount of foreign currency convertible bonds (FCCBs) issued by Indian companies are coming up for redemption in the next 18-24 months. After recent stock market volatility many FCCBs are at risk of not converting i.e. if the stock market remains subdued, it will stop the bond holders from opting for an equity conversion as it will be easier for them to buy the stock from the open market instead of paying the agreed premium.
When the FCCBs come for redemption, some of these companies may have to take on more debt to redeem the FCCB, thereby raising interest outgo. In the event FCCBs don`t get converted, companies have the option to lower the conversion price in line with the market, leading to higher equity dilution. If companies decide to issue fresh FCCBs to finance redemption of FCCBs, it will be at lower premium than earlier.
The structural growth drivers of the Indian economy remain intact – India`s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India`s economy. A CLSA report says India`s infrastructure development is set to accelerate, backed by greater private sector participation and improved finances of government and public sector enterprises. Rating agency Crisil in its outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.
Given the continued inflow to unit linked insurance plans (Ulips) and equity linked savings schemes (ELSS) of mutual funds, stock-specific buying will continue depending on fundamentals of individual stocks. Insurance firms are now a major player in the Indian stock market given the huge mop up in Ulips in recent years. It was buying support from domestic funds which had aided the recent recovery on the bourses.
Meanwhile, as per recent reports, ELSS which offer tax benefit are catching the fancy of small savers. ELSS funds saw their collective assets jump more than nine times to about Rs 16000 crore in three years ending March 2008. In 2005 the investment limit eligible for income tax breaks was raised ten times to Rs 1,00,000 rupees for ELSS funds. Systematic investment plan (SIP) are said to be driving inflows into ELSS funds.
Wednesday, May 21, 2008
FII buying slows down
Foreign institutional investors (FIIs) bought shares worth net Rs 57.10 crore on Friday, 16 May 2008, compared to their buying of Rs 729.90 crore on Thursday, 15 May 2008.
FII inflow of Rs 57.10 crore on 16 May 2008 was a result of gross purchases Rs 2882.70 crore and gross sales Rs 2825.60 crore. Sensex rose 81.40 points or 0.47% at 17,434.94 on that day.
FII inflow in May 2008 totaled Rs 257.80 crore (till 16 May 2008). FII outflow in calendar year 2008 totaled Rs 10,100.20 crore (till 16 May 2008).
There are a total of 1,354 FIIs registered with the Securities & Exchange Board of India (Sebi).
FII inflow of Rs 57.10 crore on 16 May 2008 was a result of gross purchases Rs 2882.70 crore and gross sales Rs 2825.60 crore. Sensex rose 81.40 points or 0.47% at 17,434.94 on that day.
FII inflow in May 2008 totaled Rs 257.80 crore (till 16 May 2008). FII outflow in calendar year 2008 totaled Rs 10,100.20 crore (till 16 May 2008).
There are a total of 1,354 FIIs registered with the Securities & Exchange Board of India (Sebi).
GMR Infrastructure inches ahead after strong quarterly results
On BSE, 23.12 lakh shares were traded in the counter. The scrip had an average daily volume of 19.79 lakh shares in the past one quarter.
The stock hit a high of Rs 152.80 and a low of Rs 145.15 so far during the day. The stock had a 52-week high of Rs 268.70 on 6 December 2007 and the stock hit a 52-week low of Rs 94.10 on 24 May 2007.
The large-cap scrip had underperformed the market over the past one month till 20 May 2008, declining 2.42% compared to the Sensex`s return of 2.93%. It had also underperformed the market in the past one quarter, declining 12.64% compared to Sensex`s decline of 2.20%.
The company`s current equity is Rs 364.13 crore. Face value per share is Rs 2.
The current price of Rs 151.20 discounts its Q3 December 2007 annualised EPS of Rs 0.34, by a PE multiple of 444.71.
GMR Infrastructure`s net sales rose 42.89% to Rs 885.29 crore in Q4 March 2008 over Q4 March 2007, on a consolidated basis.
In April 2008, GMR Energy, a 100% subsidiary of GMR Infrastructure acquired 5% stake in Homeland Mining and Energy SA, South Africa for an undisclosed amount.
In February 2008, a consortium of the company bagged a contract from the government of Nepal to build a 300-megawatt hydroelectric project in Nepal
GMR Infrastructure generates, transmits and distributes electrical power. It also develops, maintains and operates airports and roads.
The stock hit a high of Rs 152.80 and a low of Rs 145.15 so far during the day. The stock had a 52-week high of Rs 268.70 on 6 December 2007 and the stock hit a 52-week low of Rs 94.10 on 24 May 2007.
The large-cap scrip had underperformed the market over the past one month till 20 May 2008, declining 2.42% compared to the Sensex`s return of 2.93%. It had also underperformed the market in the past one quarter, declining 12.64% compared to Sensex`s decline of 2.20%.
The company`s current equity is Rs 364.13 crore. Face value per share is Rs 2.
The current price of Rs 151.20 discounts its Q3 December 2007 annualised EPS of Rs 0.34, by a PE multiple of 444.71.
GMR Infrastructure`s net sales rose 42.89% to Rs 885.29 crore in Q4 March 2008 over Q4 March 2007, on a consolidated basis.
In April 2008, GMR Energy, a 100% subsidiary of GMR Infrastructure acquired 5% stake in Homeland Mining and Energy SA, South Africa for an undisclosed amount.
In February 2008, a consortium of the company bagged a contract from the government of Nepal to build a 300-megawatt hydroelectric project in Nepal
GMR Infrastructure generates, transmits and distributes electrical power. It also develops, maintains and operates airports and roads.
Market in green
The market bounced back in the green trading with small gains in mid-afternoon trade. Recovery in stocks in China and Hong Kong from an early slide had triggered recovery on the domestic bourses in afternoon trade. European markets which opened after Indian market were in green.
Oil & gas stocks rose, boosted by record crude oil prices. Capital goods stocks rose. Banking and auto stocks declined. Metal stocks were mixed.
Oil prices continued their steady rise and surged to a record high near $130 a barrel on Tuesday, 20 May 2008, stoking fears of global inflation.
At 14:20 IST, the 30-share BSE Sensex was up 36.39 points or 0.21% at 17,266.57. Sensex gained 48.28 points at day`s high of 17,278.46, hit in mid-afternoon trade. The market had dropped in early trade tracking weak global markets and record high oil prices. Sensex lost 188.55 points at day`s low of 17,041.63 touched in early trade.
The broader based S&P CNX Nifty was up 18.05 points or 0.35% at 5,123.
The market breadth was strong on BSE with 1,591 shares advancing as compared to 1,026 that declined. 84 remained unchanged.
Among the 30-member Sensex pack, 16 declined while the rest gained.
Metal stocks were mixed. National Aluminium Company (up 2.67% to Rs 528.60), Tata Steel (up 1.69% to Rs 909.80) edged higher. Sterlite Industries (down 0.53% to Rs 934.90), Hindalco Industries (down 0.68% to Rs 197.70), Steel Authority of India (down 0.95% to Rs 182.10) edged lower.
Capital goods stocks rose. Larsen & Toubro (up 1.39% to Rs 3,012.85) and Bharat Heavy Electricals (up 2.22% to Rs 1,776.70) edged higher. Suzlon Energy declined 2.37% to Rs 310.90.
Oil & Gas stocks rose as crude rose to a record high near $130 a barrel on Tuesday, 20 May 2008. BPCL (up 2.22% to Rs 357), Indian Oil Corporation (up 1.07% to Rs 409.90), and Cairn India (up 1.43% to Rs 332.90) and ONGC (up 0.81% to Rs 943.90) edged higher.
India`s largest private sectors firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 2.73% to Rs 2,673. Reportedly, the government has confiscated the company`s five blocks in the Kerala-Konkan (KK) basin after it failed to meet the minimum work programme.
Banking stocks declined. India`s largest private sector bank in terms of net profit ICICI Bank declined 1.74% to Rs 911.50.
HDFC Bank, India`s second largest private sector bank in terms of net profit, declined 3.72% to Rs 1,410.10. The Reserve Bank of India has approved the Scheme of Amalgamation of Centurion Bank of Punjab with HDFC Bank. The Scheme of Amalgamation will come into effect from 23 May 2008.
India`s largest commercial bank State Bank of India (SBI) rose 0.64% to Rs 1,666. The bank today said it would resume tractor and farm equipment loans with immediate effect, having earlier suspended new loans because of rising defaults.
Tata Motors (up 1.94% to Rs 691.50), Mahindra & Mahindra (up 1.89% to Rs 665), Grasim Industries (up 1.87% to Rs 2,330), Tata Steel (up 1.67% to Rs 909.20), ITC (up 1.59% to Rs 229.50), ACC (up 1.18% to Rs 690.35) edged higher from the Sensex pack.
HDFC (down 3.06% to Rs 2,690), NTPC (down 2.15% to Rs 182), Hindustan Unilever (down 2.09% to Rs 236.70), Cipla (down 1.39% to Rs 205.50), Reliance Infrastructure (down 1.32% to Rs 1,375) Ambuja Cements (down 1.15% to Rs 107.60) edged lower from Sensex pack.
India`s largest telecom services provider by market share Bharti Airtel declined 0.57% to Rs 824. As per reports Bharti Airtel has forged an exclusive alliance with Indian Oil Corporation (IOC) that will enable the telco to access 18,000 retail outlets and 5,500 Indane cooking gas distributors of the oil giant. The deal also envisages that Airtel can use IOC outlets to sell its products, collect bills, set up PCO facilities and even open Bharti retail outlets on an exclusive basis.
Housing Development and Infrastructure declined 1.34% to Rs 831.15. It posted a net profit of Rs 708.25 crore on total income of Rs 989.49 crore in Q4 March 2008. The company`s board today recommended issue of 2 bonus shares for every 7 shares held.
Rohit Ferro Tech rose 2.95% to Rs 151.95. The company has entered into an memorandum of understanding with PSP Group (PT Pacific Samudra Perkasa) to acquire 60% economic interest in two coal mining companies in Indonesia through its newly incorporated wholly owned subsidiary in Singapore named SKP Overseas (SKP).
Dabur Pharma rose 0.14% to Rs 73.10. The company has got final approval from US Food and Drug Administration (USFDA) to market its generic version of EMD Serono`s Novantrone (Mitoxantrone Hydrochloride) injection 20 milligram (mg), 25 mg and 30 mg.
European markets were in green. Key benchmark indices in France, Germany and UK were up by between 0.2% to 0.82%.
Asian shares were mixed. Key benchmark indices in Japan, South Korea, Singapore and Taiwan were down by between 0.26% to 1.65%. Indices in Hong Kong and China rose between 1.16% to 2.93%.
Sensex shed 204.76 points or 1.17% at 17,230.18 on Tuesday, 20 May 2008, on concerns the Reserve Bank of India (RBI) may further tighten policy to fight high inflation after RBI governor Y V Reddy said inflation rate was totally unacceptable and the official data underestimates the actual rise. The wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week`s annual rise of 7.61%, government data released on 16 May 2008, showed. It was the highest since an annual reading of 7.93% n 6 November 2004.
Further, a steep increase in upward revision in inflation rate for the week ended 8 March 2008, to 7.78% from the provisional 5.92%, came as a rude shock to marketmen. According to retail brokerage Sharekhan, the steep upward revision in inflation rate is a cause for concern, as prices of many commodities have not been updated for varied periods. Moreover, a sharp fall in the rupee against the dollar in the past few days has heightened concerns about inflation. This is because the fall in rupee will raise cost of imports which in turn will result in further rise in inflation.
In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review.
With parliamentary elections scheduled next year (May 2009, the government may leave no stone unturned in its attempt to tame inflation. This is bad news for commodity scrips such as cement and steel. Cement maker ACC said had said earlier this months that its margins will be hurt by a decision to hold its prices for 2 to 3 months that was taken after the government asked cement firms to help contain price pressures.
The government recently imposed export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. The government had earlier banned export of cement and non-basmati rice. On 7 May 2008, the government ordered suspension in futures trading in channa, refined soyoil, potato and rubber for four months.
Earnings downgrade amid rising input and interest costs and drying up of global liquidity due to credit crisis, remain major concern for the Indian stock market.
Nonetheless, the structural growth drivers of the Indian economy remain intact – India`s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India`s economy. A recent CLSA report says India`s infrastructure development is set to accelerate, backed by greater private sector participation and improved finances of government and public sector enterprises. Rating agency Crisil in its outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.
Given the continued inflow to unit linked insurance plans (Ulips) and equity linked savings schemes (ELSS) of mutual funds, stock-specific buying will continue depending on fundamentals of individual stocks. Insurance firms are now a major player in the Indian stock market given the huge mop up in Ulips in recent years. It was buying support from domestic funds which had aided the recent recovery on the bourses.
Meanwhile, as per recent reports, ELSS which offer tax benefit are catching the fancy of small savers. ELSS funds saw their collective assets jump more than nine times to about Rs 16000 crore in three years ending March 2008. In 2005 the investment limit eligible for income tax breaks was raised ten times to Rs 1,00,000 rupees for ELSS funds. Systematic investment plan (SIP) are said to be driving inflows into ELSS funds.
Oil & gas stocks rose, boosted by record crude oil prices. Capital goods stocks rose. Banking and auto stocks declined. Metal stocks were mixed.
Oil prices continued their steady rise and surged to a record high near $130 a barrel on Tuesday, 20 May 2008, stoking fears of global inflation.
At 14:20 IST, the 30-share BSE Sensex was up 36.39 points or 0.21% at 17,266.57. Sensex gained 48.28 points at day`s high of 17,278.46, hit in mid-afternoon trade. The market had dropped in early trade tracking weak global markets and record high oil prices. Sensex lost 188.55 points at day`s low of 17,041.63 touched in early trade.
The broader based S&P CNX Nifty was up 18.05 points or 0.35% at 5,123.
The market breadth was strong on BSE with 1,591 shares advancing as compared to 1,026 that declined. 84 remained unchanged.
Among the 30-member Sensex pack, 16 declined while the rest gained.
Metal stocks were mixed. National Aluminium Company (up 2.67% to Rs 528.60), Tata Steel (up 1.69% to Rs 909.80) edged higher. Sterlite Industries (down 0.53% to Rs 934.90), Hindalco Industries (down 0.68% to Rs 197.70), Steel Authority of India (down 0.95% to Rs 182.10) edged lower.
Capital goods stocks rose. Larsen & Toubro (up 1.39% to Rs 3,012.85) and Bharat Heavy Electricals (up 2.22% to Rs 1,776.70) edged higher. Suzlon Energy declined 2.37% to Rs 310.90.
Oil & Gas stocks rose as crude rose to a record high near $130 a barrel on Tuesday, 20 May 2008. BPCL (up 2.22% to Rs 357), Indian Oil Corporation (up 1.07% to Rs 409.90), and Cairn India (up 1.43% to Rs 332.90) and ONGC (up 0.81% to Rs 943.90) edged higher.
India`s largest private sectors firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 2.73% to Rs 2,673. Reportedly, the government has confiscated the company`s five blocks in the Kerala-Konkan (KK) basin after it failed to meet the minimum work programme.
Banking stocks declined. India`s largest private sector bank in terms of net profit ICICI Bank declined 1.74% to Rs 911.50.
HDFC Bank, India`s second largest private sector bank in terms of net profit, declined 3.72% to Rs 1,410.10. The Reserve Bank of India has approved the Scheme of Amalgamation of Centurion Bank of Punjab with HDFC Bank. The Scheme of Amalgamation will come into effect from 23 May 2008.
India`s largest commercial bank State Bank of India (SBI) rose 0.64% to Rs 1,666. The bank today said it would resume tractor and farm equipment loans with immediate effect, having earlier suspended new loans because of rising defaults.
Tata Motors (up 1.94% to Rs 691.50), Mahindra & Mahindra (up 1.89% to Rs 665), Grasim Industries (up 1.87% to Rs 2,330), Tata Steel (up 1.67% to Rs 909.20), ITC (up 1.59% to Rs 229.50), ACC (up 1.18% to Rs 690.35) edged higher from the Sensex pack.
HDFC (down 3.06% to Rs 2,690), NTPC (down 2.15% to Rs 182), Hindustan Unilever (down 2.09% to Rs 236.70), Cipla (down 1.39% to Rs 205.50), Reliance Infrastructure (down 1.32% to Rs 1,375) Ambuja Cements (down 1.15% to Rs 107.60) edged lower from Sensex pack.
India`s largest telecom services provider by market share Bharti Airtel declined 0.57% to Rs 824. As per reports Bharti Airtel has forged an exclusive alliance with Indian Oil Corporation (IOC) that will enable the telco to access 18,000 retail outlets and 5,500 Indane cooking gas distributors of the oil giant. The deal also envisages that Airtel can use IOC outlets to sell its products, collect bills, set up PCO facilities and even open Bharti retail outlets on an exclusive basis.
Housing Development and Infrastructure declined 1.34% to Rs 831.15. It posted a net profit of Rs 708.25 crore on total income of Rs 989.49 crore in Q4 March 2008. The company`s board today recommended issue of 2 bonus shares for every 7 shares held.
Rohit Ferro Tech rose 2.95% to Rs 151.95. The company has entered into an memorandum of understanding with PSP Group (PT Pacific Samudra Perkasa) to acquire 60% economic interest in two coal mining companies in Indonesia through its newly incorporated wholly owned subsidiary in Singapore named SKP Overseas (SKP).
Dabur Pharma rose 0.14% to Rs 73.10. The company has got final approval from US Food and Drug Administration (USFDA) to market its generic version of EMD Serono`s Novantrone (Mitoxantrone Hydrochloride) injection 20 milligram (mg), 25 mg and 30 mg.
European markets were in green. Key benchmark indices in France, Germany and UK were up by between 0.2% to 0.82%.
Asian shares were mixed. Key benchmark indices in Japan, South Korea, Singapore and Taiwan were down by between 0.26% to 1.65%. Indices in Hong Kong and China rose between 1.16% to 2.93%.
Sensex shed 204.76 points or 1.17% at 17,230.18 on Tuesday, 20 May 2008, on concerns the Reserve Bank of India (RBI) may further tighten policy to fight high inflation after RBI governor Y V Reddy said inflation rate was totally unacceptable and the official data underestimates the actual rise. The wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week`s annual rise of 7.61%, government data released on 16 May 2008, showed. It was the highest since an annual reading of 7.93% n 6 November 2004.
Further, a steep increase in upward revision in inflation rate for the week ended 8 March 2008, to 7.78% from the provisional 5.92%, came as a rude shock to marketmen. According to retail brokerage Sharekhan, the steep upward revision in inflation rate is a cause for concern, as prices of many commodities have not been updated for varied periods. Moreover, a sharp fall in the rupee against the dollar in the past few days has heightened concerns about inflation. This is because the fall in rupee will raise cost of imports which in turn will result in further rise in inflation.
In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review.
With parliamentary elections scheduled next year (May 2009, the government may leave no stone unturned in its attempt to tame inflation. This is bad news for commodity scrips such as cement and steel. Cement maker ACC said had said earlier this months that its margins will be hurt by a decision to hold its prices for 2 to 3 months that was taken after the government asked cement firms to help contain price pressures.
The government recently imposed export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. The government had earlier banned export of cement and non-basmati rice. On 7 May 2008, the government ordered suspension in futures trading in channa, refined soyoil, potato and rubber for four months.
Earnings downgrade amid rising input and interest costs and drying up of global liquidity due to credit crisis, remain major concern for the Indian stock market.
Nonetheless, the structural growth drivers of the Indian economy remain intact – India`s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India`s economy. A recent CLSA report says India`s infrastructure development is set to accelerate, backed by greater private sector participation and improved finances of government and public sector enterprises. Rating agency Crisil in its outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver.
Given the continued inflow to unit linked insurance plans (Ulips) and equity linked savings schemes (ELSS) of mutual funds, stock-specific buying will continue depending on fundamentals of individual stocks. Insurance firms are now a major player in the Indian stock market given the huge mop up in Ulips in recent years. It was buying support from domestic funds which had aided the recent recovery on the bourses.
Meanwhile, as per recent reports, ELSS which offer tax benefit are catching the fancy of small savers. ELSS funds saw their collective assets jump more than nine times to about Rs 16000 crore in three years ending March 2008. In 2005 the investment limit eligible for income tax breaks was raised ten times to Rs 1,00,000 rupees for ELSS funds. Systematic investment plan (SIP) are said to be driving inflows into ELSS funds.
Wednesday Morning brief
Asian markets decline in initial session
Asian markets declined in the initial session of trade on Wednesday (May. 21), on concern that rising credit market losses will reduce banks` earning and declining growth in demand from China will affect raw-materials producers.
Mitsubishi UFJ Financial Group declined after forecasting profit will remain flat this year. BHP Billiton lost the most among mining stocks.
Japan`s index Nikkei 225 fell 279.21points, or 1.97%, to trade at 13,880.88.
Hong Kong`s index Hang Seng declined 243.74 points, or 0.97%, to trade at 24,925.72.
China`s Shanghai Composite lost 36.47 points, or 1.06%, to trade at 3,406.70.
Taiwan`s Taiex index lost 71.77 points, or 0.79%, to trade at 8,997.12.
South Korea`s KOSPI pared 22.72 points, or 1.21%, to trade at 1,850.43.
Singapore`s Straits Times declined 41.09 points or 1.28%, to trade at 3,158.79. (8.24 a.m. IST)
Indian ADRs decline as US markets retreat
US stocks tumbled on Tuesday (May 20) amid rising energy costs and inflation worries.
The Dow Jones fell 199.48 points, or 1.53%, to 12,828.68. The NASDAQ composite dropped 23.83 points, or 0.95%, to 2,492.26.
The yield on the benchmark 10-year Treasury note, which moves opposite its yield, fell to 3.78% from 3.83% late Monday.
Indian ADRs ended on a negative note on Tuesday, following their US counterparts.
Oil jumps to record high at USD 129.07 a barrel
Oil prices surged on Tuesday (May 20) on growing concerns that increased production by Saudi Arabia won`t be enough to meet demand.
Light sweet crude for June delivery rose USD 2.02, to settle at record close of USD 129.07 a barrel on the New York Mercantile Exchange (NYMEX).
Gasoline futures added 6.78 cents to settle at USD 3.3044 a gallon. The retail gas prices stood at USD 3.80 a gallon.
Heating oil futures rose to settle at USD 3.775 a gallon at the NYMEX.
In London, Brent crude for July delivery jumped USD 2.78 to settle at USD 127.84 on the ICE Futures Exchange.
Natural gas futures surged 41.1 cents to settle at USD 11.365 per 1,000 cubic feet.
Asian markets declined in the initial session of trade on Wednesday (May. 21), on concern that rising credit market losses will reduce banks` earning and declining growth in demand from China will affect raw-materials producers.
Mitsubishi UFJ Financial Group declined after forecasting profit will remain flat this year. BHP Billiton lost the most among mining stocks.
Japan`s index Nikkei 225 fell 279.21points, or 1.97%, to trade at 13,880.88.
Hong Kong`s index Hang Seng declined 243.74 points, or 0.97%, to trade at 24,925.72.
China`s Shanghai Composite lost 36.47 points, or 1.06%, to trade at 3,406.70.
Taiwan`s Taiex index lost 71.77 points, or 0.79%, to trade at 8,997.12.
South Korea`s KOSPI pared 22.72 points, or 1.21%, to trade at 1,850.43.
Singapore`s Straits Times declined 41.09 points or 1.28%, to trade at 3,158.79. (8.24 a.m. IST)
Indian ADRs decline as US markets retreat
US stocks tumbled on Tuesday (May 20) amid rising energy costs and inflation worries.
The Dow Jones fell 199.48 points, or 1.53%, to 12,828.68. The NASDAQ composite dropped 23.83 points, or 0.95%, to 2,492.26.
The yield on the benchmark 10-year Treasury note, which moves opposite its yield, fell to 3.78% from 3.83% late Monday.
Indian ADRs ended on a negative note on Tuesday, following their US counterparts.
| Indian ADRs | USD($) | % Gain/(Loss) |
| Sterlite Industries (India) | 22.30 | (0.58) |
| Tata Motors | 15.82 | (0.88) |
| Wipro | 13.26 | (1.19) |
| Mahanagar Telephone Nigam | 5.01 | (1.38) |
| Satyam Computer Services | 25.97 | (1.4) |
| Tata Communications | 23.75 | (1.86) |
| Dr Reddy`S Laboratories | 14.86 | (2.24) |
| Infosys Technologies | 44.32 | (2.61) |
| I C I C I Bank | 43.05 | (3.24) |
| Patni Computer Systems | 12.89 | (3.88) |
| H D F C Bank | 104.19 | (4.64) |
Oil jumps to record high at USD 129.07 a barrel
Oil prices surged on Tuesday (May 20) on growing concerns that increased production by Saudi Arabia won`t be enough to meet demand.
Light sweet crude for June delivery rose USD 2.02, to settle at record close of USD 129.07 a barrel on the New York Mercantile Exchange (NYMEX).
Gasoline futures added 6.78 cents to settle at USD 3.3044 a gallon. The retail gas prices stood at USD 3.80 a gallon.
Heating oil futures rose to settle at USD 3.775 a gallon at the NYMEX.
In London, Brent crude for July delivery jumped USD 2.78 to settle at USD 127.84 on the ICE Futures Exchange.
Natural gas futures surged 41.1 cents to settle at USD 11.365 per 1,000 cubic feet.
Soros expects US, UK slump
Billionaire investor George Soros said the "acute phase" of the global credit crisis is over, and the fallout will lead to recessions in the United Kingdom and the United States.
"Financial institutions have been severely damaged and we are currently in a situation that will probably, I think almost inevitably, result in a recession certainly in the United States and most likely in England also," he said in an interview with BBC Radio yesterday.
Policymakers in the US and the UK have cut interest rates to protect their economies from falling house prices, and banking losses from the subprime mortgage collapse that now total $379 billion.
The Bank of England said last month that the credit crisis may abate, and Governor Mervyn King says the economy may face "an odd quarter or two" of contraction.
"We've had a pretty serious crunch, but the acute phase is behind us," Soros said.
"Now we have to feel the effects. In the case of the UK, you've had a housing bubble that in terms of price increases has been greater than in the US."
UK house prices had their first annual decline since 1996 in April after tripling in the past decade, reports by HBOS Plc and Nationwide Building Society have showed.
Home prices in 20 US metropolitan areas fell in February by the most on record. The S&P/Case-Shiller home-price index dropped 12.7 percent from a year earlier, the most since the figures were first published in 2001. The gauge has fallen every month since January 2007.
Soaring interbank borrowing costs led to the collapse of Bear Stearns & Cos. earlier this year and sparked a run on Newcastle, England-based mortgage lender Northern Rock Plc in September.
European Central Bank President Jean-Claude Trichet refrained from saying that the worst of the credit crisis is over, in an interview with the BBC Radio, broadcast on Monday.
He said the world faces "an ongoing, very serious market correction".
"We're entering a period of much greater instability because we've got the threat of recession and at the same time the threat of inflation," Soros said.
"Financial institutions have been severely damaged and we are currently in a situation that will probably, I think almost inevitably, result in a recession certainly in the United States and most likely in England also," he said in an interview with BBC Radio yesterday.
Policymakers in the US and the UK have cut interest rates to protect their economies from falling house prices, and banking losses from the subprime mortgage collapse that now total $379 billion.
The Bank of England said last month that the credit crisis may abate, and Governor Mervyn King says the economy may face "an odd quarter or two" of contraction.
"We've had a pretty serious crunch, but the acute phase is behind us," Soros said.
"Now we have to feel the effects. In the case of the UK, you've had a housing bubble that in terms of price increases has been greater than in the US."
UK house prices had their first annual decline since 1996 in April after tripling in the past decade, reports by HBOS Plc and Nationwide Building Society have showed.
Home prices in 20 US metropolitan areas fell in February by the most on record. The S&P/Case-Shiller home-price index dropped 12.7 percent from a year earlier, the most since the figures were first published in 2001. The gauge has fallen every month since January 2007.
Soaring interbank borrowing costs led to the collapse of Bear Stearns & Cos. earlier this year and sparked a run on Newcastle, England-based mortgage lender Northern Rock Plc in September.
European Central Bank President Jean-Claude Trichet refrained from saying that the worst of the credit crisis is over, in an interview with the BBC Radio, broadcast on Monday.
He said the world faces "an ongoing, very serious market correction".
"We're entering a period of much greater instability because we've got the threat of recession and at the same time the threat of inflation," Soros said.
Tuesday, May 20, 2008
Record high oil price hits market as stocks fall in Asia and Europe
Weak global markets and record high oil prices weighed on the market sentiment today. However, the market breadth was positive. Consumer durables stocks were mixed. Banking, healthcare and realty stocks declined.
Crude-oil futures had marked their first close above $127 a barrel Monday 19 May 2008, with the market extending last week`s strength on growing concerns about energy supply and demand from China.
The 30-share BSE Sensex provisionally ended down 212.79 points or 1.22% at 17,222.15. Sensex lost 298.68 points at day`s low of 17,136.26 touched in late trade.
The broader based S&P CNX Nifty was down 53.05 points or 1.03% at 5,104.65 as per provisional figures.
European markets were in the red. Indices in France, Germany and UK were down by between 0.84% to 1.17%.
Asian markets were trading lower today, 20 May 2008. Key benchmark indices in China, Hong Kong, Japan, Singapore South Korean and Taiwan were down by between 0.21% to 4.48%.
The market breadth was positive on BSE with 1,441 shares advancing as compared to 1,279 that declined. 69 remained unchanged.
Among the 30-member Sensex pack, 23 declined while the rest gained.
India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 1.58% to Rs 2,593.55. It has reportedly formed a $1 billion joint venture with New York-based Vornado Realty Trust to set up a real estate fund.
Consumer durables stocks were mixed. Titan Industries (down 4.82% to Rs 1,212), Gitanjali Gems (down 3.64% to Rs 294.85) edged lower. However, Videocon Industries (up 16.60% to Rs 409.15) and Asian Star Company (up 0.08% to Rs 1,266) edged higher.
Banking stocks declined. ICICI Bank (down 1.4% to Rs 928) and HDFC Bank (down 2.35% to Rs 1,467) edged lower.
India`s largest commercial bank State Bank of India declined 2.28% to Rs 1,665.10. It has reportedly decided to stop giving loans for the purchase of tractors and other farm equipment. Due to mounting non-performing assets in the farm equipment loan segment, the bank has decided to temporarily put on hold all future advances for farm equipment like tractors, power tillers and combined harvesters, the reports suggested.
Realty stocks declined. Indiabulls Real Estate (down 2.28% to Rs 525), DLF (down 2.03% to Rs 636) and Unitech (down 2.67% to Rs 279.05) edged lower.
HealthCare stocks declined. Sun Pharmaceuticals Industries (down 2.41% to Rs 1,351) and Cipla (down 2.02% to Rs 208.20) edged lower.
Dr Reddys Laboratories declined 1.75% to Rs 638.85. The company`s net profit fell 39.65% to Rs 162.26 crore on 9.78% slide in total income to Rs 1038.47 crore in Q4 March 2008 over Q4 March 2007. The company announced the result during market hours today
India`s largest tractor maker by sales Mahindra & Mahindra declined 1.31% to Rs 653.50. It is reportedly eyeing Italian motorcycle marque brands — Cagiva and MV Agusta. The Castiglioni family, which owns flagship MV Agusta and Cagiva motorcycle brands, has been facing financial troubles for some time and has been on the look out for a potential acquirer, the reports added.
India`s largest car maker by sales Maruti Suzuki India was down 1.06% to Rs 810.25. It has reportedly increased prices of cars by up to Rs 18,000 because of higher raw material costs.
India`s largest engineering and construction firm by sales Larsen & Toubro declined 0.83% to Rs 2,971.50. The company announced today it had received electrical project orders worth Rs 640 crore in the Gulf region.
Satyam Computer Services (up 1.32% to Rs 494.60), Tata Motors (up 1.28% to Rs 678.35), Infosys (up 0.86% to Rs 1,887.20), Tata Steel (up 0.42% to Rs 894.65), ACC (up 0.35% to Rs 682.45), Ranbaxy Laboratories (up 0.04% to Rs 510.90), edged higher from the Sensex pack.
Jaiprakash Associates (down 5,22% to Rs 256), Reliance Infrastructure (down 4.53% to Rs 1,394.40), Bharat Heavy Electricals (down 3.28% to Rs 1,736.50), Bharti Airtel (down 2.65% to Rs 828.75), NTPC (down 2.64% to Rs 186), Tata Consultancy Services (down 2.4% to Rs 952.75) edged lower from Sensex pack.
State Bank of Bikaner & Jaipur rose 3.6% to Rs 5,180 after the bank said its board will meet on 22 May 2008, to recommend 10 for 1 stock split.
Take solutions rose 1.94% to Rs 728.25 after company said on 16 May 2008 its board will meet on 25 May 2008 to consider stock split.
US markets ended mixed on Monday 19 May 2008 after a late-day sell-off. Weakness in techs, retail and housing prompted traders to lock in some profits. The Dow gained 41.36 points, or 0.32%, to 13,028.16. The S&P 500 rose 1.28 points, or 0.09%, to 1,426.63. The Nasdaq composite index was down 12.76 points, or 0.50%, to 2,516.09.
Back home on Friday 16 May 2008, the 30-share BSE Sensex rose 81.40 points or 0.47% at 17,434.94. The broader based S&P CNX Nifty advanced 42.45 points or 0.83% at 5,157.70.
The BSE Sensex had risen 697.87 points or 4.17% to 17,434.94 in the week ended Friday, 16 May 2008. The S&P CNX Nifty rose 175.10 points or 3.51% to 5157.70 in the week.
Crude-oil futures had marked their first close above $127 a barrel Monday 19 May 2008, with the market extending last week`s strength on growing concerns about energy supply and demand from China.
The 30-share BSE Sensex provisionally ended down 212.79 points or 1.22% at 17,222.15. Sensex lost 298.68 points at day`s low of 17,136.26 touched in late trade.
The broader based S&P CNX Nifty was down 53.05 points or 1.03% at 5,104.65 as per provisional figures.
European markets were in the red. Indices in France, Germany and UK were down by between 0.84% to 1.17%.
Asian markets were trading lower today, 20 May 2008. Key benchmark indices in China, Hong Kong, Japan, Singapore South Korean and Taiwan were down by between 0.21% to 4.48%.
The market breadth was positive on BSE with 1,441 shares advancing as compared to 1,279 that declined. 69 remained unchanged.
Among the 30-member Sensex pack, 23 declined while the rest gained.
India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 1.58% to Rs 2,593.55. It has reportedly formed a $1 billion joint venture with New York-based Vornado Realty Trust to set up a real estate fund.
Consumer durables stocks were mixed. Titan Industries (down 4.82% to Rs 1,212), Gitanjali Gems (down 3.64% to Rs 294.85) edged lower. However, Videocon Industries (up 16.60% to Rs 409.15) and Asian Star Company (up 0.08% to Rs 1,266) edged higher.
Banking stocks declined. ICICI Bank (down 1.4% to Rs 928) and HDFC Bank (down 2.35% to Rs 1,467) edged lower.
India`s largest commercial bank State Bank of India declined 2.28% to Rs 1,665.10. It has reportedly decided to stop giving loans for the purchase of tractors and other farm equipment. Due to mounting non-performing assets in the farm equipment loan segment, the bank has decided to temporarily put on hold all future advances for farm equipment like tractors, power tillers and combined harvesters, the reports suggested.
Realty stocks declined. Indiabulls Real Estate (down 2.28% to Rs 525), DLF (down 2.03% to Rs 636) and Unitech (down 2.67% to Rs 279.05) edged lower.
HealthCare stocks declined. Sun Pharmaceuticals Industries (down 2.41% to Rs 1,351) and Cipla (down 2.02% to Rs 208.20) edged lower.
Dr Reddys Laboratories declined 1.75% to Rs 638.85. The company`s net profit fell 39.65% to Rs 162.26 crore on 9.78% slide in total income to Rs 1038.47 crore in Q4 March 2008 over Q4 March 2007. The company announced the result during market hours today
India`s largest tractor maker by sales Mahindra & Mahindra declined 1.31% to Rs 653.50. It is reportedly eyeing Italian motorcycle marque brands — Cagiva and MV Agusta. The Castiglioni family, which owns flagship MV Agusta and Cagiva motorcycle brands, has been facing financial troubles for some time and has been on the look out for a potential acquirer, the reports added.
India`s largest car maker by sales Maruti Suzuki India was down 1.06% to Rs 810.25. It has reportedly increased prices of cars by up to Rs 18,000 because of higher raw material costs.
India`s largest engineering and construction firm by sales Larsen & Toubro declined 0.83% to Rs 2,971.50. The company announced today it had received electrical project orders worth Rs 640 crore in the Gulf region.
Satyam Computer Services (up 1.32% to Rs 494.60), Tata Motors (up 1.28% to Rs 678.35), Infosys (up 0.86% to Rs 1,887.20), Tata Steel (up 0.42% to Rs 894.65), ACC (up 0.35% to Rs 682.45), Ranbaxy Laboratories (up 0.04% to Rs 510.90), edged higher from the Sensex pack.
Jaiprakash Associates (down 5,22% to Rs 256), Reliance Infrastructure (down 4.53% to Rs 1,394.40), Bharat Heavy Electricals (down 3.28% to Rs 1,736.50), Bharti Airtel (down 2.65% to Rs 828.75), NTPC (down 2.64% to Rs 186), Tata Consultancy Services (down 2.4% to Rs 952.75) edged lower from Sensex pack.
State Bank of Bikaner & Jaipur rose 3.6% to Rs 5,180 after the bank said its board will meet on 22 May 2008, to recommend 10 for 1 stock split.
Take solutions rose 1.94% to Rs 728.25 after company said on 16 May 2008 its board will meet on 25 May 2008 to consider stock split.
US markets ended mixed on Monday 19 May 2008 after a late-day sell-off. Weakness in techs, retail and housing prompted traders to lock in some profits. The Dow gained 41.36 points, or 0.32%, to 13,028.16. The S&P 500 rose 1.28 points, or 0.09%, to 1,426.63. The Nasdaq composite index was down 12.76 points, or 0.50%, to 2,516.09.
Back home on Friday 16 May 2008, the 30-share BSE Sensex rose 81.40 points or 0.47% at 17,434.94. The broader based S&P CNX Nifty advanced 42.45 points or 0.83% at 5,157.70.
The BSE Sensex had risen 697.87 points or 4.17% to 17,434.94 in the week ended Friday, 16 May 2008. The S&P CNX Nifty rose 175.10 points or 3.51% to 5157.70 in the week.
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