We're so busy watching out for what's just ahead of us that we don't take time to enjoy where we are,.
More exciting than the market would be today's 20-20 cricket match between Mukesh Ambani’s Mumbai Indians and Shah Rukh Khan’s Kolkata Knight Riders. The bulls seem to have been inspired by Sanath Jayasuriya’s blazing knock the other evening and stocks like RIL did manage to send many a bears to the fence.
But then it is that day of the week again, when Inflation jitters seem to make the bulls nervous. Hopefully, most of the bad news on this front has already been factored in by the market with expectations that inflation may even hit 8%. So it can’t get worse than it. Though oil prices remain at highly elevated level, the Government is not even talking about a price hike due to political compulsions. On the contrary, the Finance Minister has reportedly refused to increase the quantum of oil bonds to oil PSUs. The Centre has also forced steel and cement companies to cut prices to rein in inflation.
These three sectors are likely to bear the brunt of the Government's inflation-fighting efforts. Aviation is another sector where Government apathy has dragged the sector into deep losses. Most sectors are facing increasing number of challenges amid high interest rates, soaring inflation, currency fluctuations, slowing economic growth and uncertain market conditions. This may reflect in their performance over the next few quarters.
Coming to the market, the outlook for the day appears to be brighter after Thursday’s strong finish and firm global cues. Inflation figures may not hurt that much, and the bulls might just decide to extend their gains into a third straight day. However, one should look to reduce one's holdings at every rally as the key indices will face some resistance at higher levels. The near-term outlook continues to be one of cautious optimism.
FIIs were net buyers of Rs7.07bn (provisional) in the cash segment yesterday while local institutions poured in Rs3.63n. In the F&O segment, foreign funds were net buyers of Rs5.22bn. On Wednesday, FIIs were net buyers of Rs2.58bn while Mutual Funds too were net buyers of Rs1.33bn.
Key Results Today: Bank of India, Bongaigaon Refinery, Edelweiss Capital, Emkay Share, HT Media, NMDC, Redington, Saksoft, Shriram EPC, SAIL, Stone India and Texmaco.
Asian stocks rose for a fifth day, led by commodity producers and shipping companies, on renewed speculation that China is seeking a stake in BHP Billiton and after the price of transporting freight jumped to a record.
BHP shares climbed to a high in Sydney after the Australian newspaper reported that Chinese interests want to team up with an Australian fund to purchase a 9% stake in the mining giant. Mitsui OSK Lines, Japan's largest shipping company, rose to a six-month high.
Mizuho Financial Group rallied in Tokyo after forecasting profit will almost double this year.
The MSCI Asia Pacific Index gained 0.8% to 153.32 as of 10:55 a.m. in Tokyo, set to complete its longest winning streak since October 3. The index is headed for a 3% advance this week. About four stocks rose for every three that declined.
All Asian benchmark indexes advanced. Japan's Nikkei 225 Stock Average added 0.2% to 14,276.08. The country's economy grew faster than economists estimated last quarter as exports to Asia and emerging markets helped the nation weather the US slowdown.
US stocks rose on Thursday, with technology leading the way. The S &P 500 Index touched a four-month high, as analysts said chipmakers will benefit from rising global demand and energy shares are cheap relative to crude prices.
Intel and Nvidia led semiconductor shares to their highest level of the year on a Friedman Billings Ramsey & Co. report that orders are improving. Exxon Mobil helped push the S&P 500 Energy Index to a record after UBS said the oil industry is notably inexpensive.
Tiffany advanced to the highest level since November after the second-largest luxury-jewelry retailer boosted its dividend by 13 percent.
The S&P 500 added 14.91, or 1.1%, to 1,423.57. The Dow Jones Industrial Average increased 94.28, or 0.7%, to 12,992.66. The Nasdaq Composite Index gained 37.03, or 1.5%, to 2,533.73.
Market breadth was positive and volume was moderate. More than five stocks rose for every two that fell on the New York Stock Exchange.
US indices struggled to rise in the morning amid rising oil prices, mixed economic reports and a string of M&A news. But the tone turned positive in the late morning, despite volatile oil prices.
US stocks have been rising over the past two months as investors bet that the worst of the credit market crisis is behind them and the world's biggest economy appears to be stabilizing.
US light crude oil for June delivery fell 10 cents to settle at $124.12 a barrel in New York following a volatile session.
Meanwhile, the national average price for a gallon of regular unleaded gas rose to a record $3.776 from $3.758 the previous day, according to AAA. It was the eighth record in a row.
COMEX gold for August delivery rose $13.30 to settle at $884.10 an ounce. The dollar rose versus the euro and slipped versus the yen. Treasury prices rose, lowering the yield to 3.83% from 3.90% late on Wednesday.
Yahoo shares climbed 2.3%. Activist shareholder Carl Icahn launched a campaign to overthrow Yahoo's board as part of an effort to restart deal talk with Microsoft.
Media giant CBS said it would buy CNet Networks for a 45% premium in a move to expand its reach further onto the Web. Also on the online front, Comcast said it is buying social networking site, Plaxo, and IAC/Interactive will acquire Lexico Publishing Group.
GE has reportedly hired Goldman Sachs to seek buyers for the sale of its appliances business, which could be worth between $5- $8bn. GE shares inched lower.
JC Penney reported weaker quarterly results that beat forecasts. The retailer also said second-quarter earnings would come in just ahead of analysts' forecasts, but that full-year conditions will be difficult amid the tougher consumer spending environment. Shares gained more than 4%.
Thursday's economic news was mixed. Jobless claims rose a bit, New York-area manufacturing worsened and Philadelphia-area manufacturing weakened less than had been expected. Industrial production and capacity utilization declined more than expected in April and homebuilder confidence fell again in May.
Friday brings economic reports on housing starts, building permits and consumer sentiment.
Stocks in Europe closed higher thanks to a late-afternoon rally. The pan-European Dow Jones Stoxx 600 index, down about 10% this year, finished 0.4% higher at 328.41, with advancing stocks outpacing those declining roughly 3 to 2.
The UK's FTSE 100 ended up 0.6% at 6,251.80. The German DAX 30 finished nearly unchanged at 7,081.05 and the French CAC-40 finished virtually unmoved at 5,057.51.
Most emerging markets closed higher. The Bovespa in Brazil was up 2% at 71,492 while the IPC index in Mexico climbed 0.7% at 31,542. The RTS index in Russia gained 0.25% to 2411 while the ISE National 30 index in Turkey rose 0.4% to 52,599.
HOW MARKET FARED
--------------------------------------------------------------------------------
Can bulls maintain tempo
Bulls had a stellar session as bears were shrugged of the bourses amid firm global cues and all round buying in the scrips across the sectors. Bulls completely dominated the whole session. A sudden bout of buying in the index heavyweights like Reliance Industries, Infosys, L&T and RCom lifted the Nifty index to close above the 5,100 mark and the benchmark Sensex closed above the 17,300 mark.
The Capital Good, Realty, Oil & Gas, Banking and Power stocks were in demand. However, the FMCG stocks were slightly under pressure. Finally, the BSE benchmark Sensex ended 375 points higher to close at 17,353 and the Nifty index gained 103 points to close at 5,115.
Overall about 1,771 stocks advanced; 909 stocks declined while 74 stocks remained unchanged. Among the 50-Nifty 39 stocks ended in green and 11 stocks ended in red.
PNB surged by over 5.5% to Rs537 after the company announced its results for the quarter and year ended March 31, 2008. The Bank posted a net profit of Rs5437.6mn for the quarter ended March 31, 2008 as compared to Rs2377mn for the quarter ended March 31, 2007. Total Income increased from Rs37127.9mn for the quarter ended March 31, 2007 to Rs44170mn for the quarter ended March 31, 2008.
The Bank posted a net profit of Rs20487.6mn for the year ended March 31, 2008 as compared to Rs15400.8mn for the year ended March 31, 2007. Total Income increased from Rs129665.4mn for the year ended March 31, 2007 to Rs162625.8mn for the year ended March 31, 2008. The scrip touched an intra-day high of Rs540 and a low of Rs503 and recorded volumes of over 6,00,000 shares on NSE.
Torrent Power gained by 2% to Rs132 after the company announced its results for the quarter and year ended March 31, 2008. The company posted a net profit of Rs504.6mn for the quarter ended March 31, 2008 as compared to Rs443.2mn for the quarter ended March 31, 2007. Total Income increased from Rs7762mn for the quarter ended March 31, 2007 to Rs9483.8mn for the quarter ended March 31, 2008.
The company posted a net profit of Rs2112.4mn for the year ended March 31, 2008. Total Income is Rs37220mn for the year ended on March 31, 2008. The scrip touched an intra-day high of Rs136 and a low of Rs132 and recorded volumes of over 4,00,000 shares on NSE.
MLL rose over 14% to Rs114 after country’s fourth biggest shipping company by market value quadrupled earnings for the quarter ended March 31 to Rs740.4mn. The scrip touched an intra-day high of Rs117 and a low of Rs102 and recorded volumes of over 81,00,000 shares on NSE.
Reliance Industries gained momentum towards the fag end of the trading session. The scrip performed like the ‘Mumbai Indians’ the IPL team which won in handsome style against the ‘Chennai Super Kings’ on Wednesday. The scrip ended higher by over 3.5% to Rs2622 and touched an intra-day high of Rs2633 and a low of Rs2535 and recorded volumes of over 6,00,000 shares on NSE.
Madras Aluminium surged by over 9% to Rs894 after the company said that they would consider stock split on May 16, 2008. The scrip touched an intra-day high of Rs897 and a low of Rs790 and recorded volumes of over 71,000 shares on NSE.
Syndicate Bank gained by over 3% to Rs77. According to reports, the company repriced its bulk deposits. The company also on Wednesday announced its Q4 results with PAT rising over 21% to Rs1263mn. However, the company’s revenues for the fourth quarter fell by 6.8% to Rs5,626mn. The scrip touched an intra-day high of Rs77 and a low of Rs75 and recorded volumes of over 2,00,000 shares on NSE.
Neyveli Lignite gained by over 4.5% to Rs142 after the company announced that they would develop 1000MW coal based power plant and would spend Rs49.1bn to develop the power project. The scrip touched an intra-day high of Rs142 and a low of Rs137 and recorded volumes of over 90,00,000 shares on NSE.
Flawless Diamond gained by 3% to Rs68 after the company said that they secured Rs670mn order from Hong Kong’s M/s Jewelmax Company and Fine Jewellery. The scrip touched an intra-day high of Rs71 and a low of Rs66 and recorded volumes of over 1,00,000 shares on NSE.
Thursday, May 15, 2008
Wednesday, May 14, 2008
Update
MARKET OPEN FLAT TO POSITIVE
NIFTY SUPPORT 4970-4918 RESISTENCE 5054-5088
NIFTY FUT SUPPORT 4981 RESISTENCE 5036-5089
BUY LT ABOVE 2850 SL 2828 TRFT 2900
BUY IFCI 60 SL 58.10 TRGT 65
TITANIUM CALL BUY RUCHI SOYA IND. SL 99 TRGT 131
HIND ZINC SL 641 ST TRGT 949
NIFTY SUPPORT 4970-4918 RESISTENCE 5054-5088
NIFTY FUT SUPPORT 4981 RESISTENCE 5036-5089
BUY LT ABOVE 2850 SL 2828 TRFT 2900
BUY IFCI 60 SL 58.10 TRGT 65
TITANIUM CALL BUY RUCHI SOYA IND. SL 99 TRGT 131
HIND ZINC SL 641 ST TRGT 949
STRATEGY INPUTS FOR THE DAY 15/05/08
With little action left in the markets, it makes sense to do just a little these days. The bulls managed to ward off the challenge from the bears on Wednesday, with the key indices ending sharply higher. Buying in IT and metals helped lift the Nifty past the 5,000 mark. Select consumer discretionary and auto shares too advanced while PSU and banking stocks ended lower. However, one should not read too much into Wednesday's pullback, as both traded volume as well as turnover fell sharply from the previous day.
For the day, we expect a better opening as most global markets are up. Intra-day gyrations are a given these days. Remain careful and selective while dabbling in fresh purchases. Pick up small quantities at lower levels to rebuild a long term portfolio.
The market breadth was only marginally positive, indicating that the bulls are still lacking in confidence. The small-cap and mid-cap indices were also subdued, meaning that strength in select large caps propped up the main indices. The market remains in a consolidation phase, and will continue to see alternate bouts of buying and selling. No clear trend is visible at this juncture, as negatives still outweigh the positives (if there are any).
Delivery volumes have taken a sharp dip, which underscores the current uncertainty and anxiety among the bulls on future direction of the market. FII inflows have slowed down considerably this year, which is proving to be a major stumbling block for the bulls. Inflation remains a formidable challenge as does the slowdown in the overall economy. India Inc's facing several headwinds on the cost front. As a result, the market is likely to remain sideways and rangebound in the near term.
Key Results Today: Chambal Fertilizers, Chennai Petroleum, Morepen Labs, Nelco, OCL India, PNB, Tamil Nadu Petroproducts, Torrent Power, Voltas, Zuari Industries and Zylog Systems.
Mercator Lines has reported strong results for Q4 and full year. The company has posted almost a 3-fold jump in net profit for FY08 at Rs3.7bn, supported by growing fleet, buoyant shipping demand and firm freight rates in dry carriers segment.
Cement stocks could be under pressure after companies pledged to cut prices, joining steelmakers in the government's efforts to curb inflation.
BASF SE, the promoter of BASF India has announced a voluntary Open Offer to purchase up to 6,289,591 shares (constituting 22.3% of the issued share capital of BASF India) at Rs274 per share for a total consideration of Rs1.72bn (assuming full acceptances are received in the Offer).
Maxwell Industries' Board will meet today to discuss the inter-se-transfer of shares among the promoters of the company. According to a financial daily, the Reddy family - a co promoter - is likely to sell its entire holding of 32% to other promoter, the Pathare family.
FIIs were net buyers of Rs851.2mn (provisional) in the cash segment yesterday while local institutions poured in Rs3.1bn. In the F&O segment, foreign funds were net sellers of Rs2.55bn. On Tuesday, FIIs were net buyers of Rs1.86bn while Mutual Funds were net sellers of Rs3.05bn.
Asian stocks rose the most in two weeks, led by technology companies, after Sony and NEC Electronics forecast higher-than-expected profit.
The MSCI Asia Pacific Index gained 1% at 151.52 as of 10:51 a.m. in Tokyo, poised for its largest advance since May 2. Almost four stocks rose for each that declined today.
Japan's Nikkei 225 Stock Average was up 1% at 14,258.45. All other Asian benchmark indexes rose, apart from New Zealand and the Philippines.
Sony shares surged the most in more than two years in Tokyo after the consumer electronics giant's Q1 results surpassed market expectations. NEC posted its steepest advance in 10 months.
Coca-Cola Amatil, Australia's biggest soft-drinks maker, jumped after saying net income will rise this year. Nippon Steel climbed the most in two months after a newspaper said Toyota agreed to pay more for the alloy.
US stocks ended higher on Wednesday, buoyed by a milder-than-expected consumer price inflation data and falling oil prices. But a late-session sell-off in technology shares checked further gains.
Financial and consumer discretionary stocks gained following the benign CPI report, while a smaller-than-expected loss posted by mortgage lender Freddie Mac helped ease credit-market jitters.
Off a triple-digit rise, the Dow Jones Industrial Average finished at 12,898.38, up 66.20 points, or 0.5% from the last close. All but five of its 30 components closed the day in positive turf, with HP and Verizon leading the blue-chip advance. Caterpillar and McDonald's lost the most ground, each down more than 1%.
The S&P 500 gained 6.52 points, or 0.4%, to end at 1,408.66. The technology-laden Nasdaq Composite climbed 1.58 points, less than 0.1%, to 2,496.7. Nine of ten industry groups in the S&P 500 rose as the Labor Department's April inflation report gave the Federal Reserve more leeway to stimulate the economy.
Macy's helped spark a rise among retailers, with the department-store operator maintaining its full-year profit forecast, while reporting a first-quarter loss. Freddie Mac, the second-largest US mortgage-finance company, rallied the most in six weeks after reporting a smaller loss than analysts estimated.
Market breadth was positive. Seven stocks advanced for every five that fell on the New York Stock Exchange.
The CPI rose 0.2% in April, versus forecasts for a rise of 0.3%. Stripping out food and auto sales, CPI rose 0.1%, versus expectations for a rise of 0.2%. Food prices played a big role in the rise in prices, posting the biggest jump in 18 years.
US light crude oil for June delivery fell $1.58 to settle at $124.22 in New York, despite a weaker-than-expected weekly inventories report. On Tuesday, crude hit a record trading high of $126.98 a barrel during the session.
The national average price for a gallon of regular unleaded gas rose to a record $3.758 from $3.732 the previous day, according to AAA. It was the seventh record in a row.
COMEX gold for August delivery fell $2.90 to $871 an ounce. The dollar firmed up a bit versus the euro and the yen. Treasury prices rose, lowering the yield to 3.90% from 3.92% late on Tuesday.
Thursday brings the weekly jobless claims report, readings on manufacturing in the New York and Philadelphia areas, and earnings from JC Penney.
M&A speculation, earnings and a better-than-expected reading on core US inflation lifted stocks in Europe. The pan-European Dow Jones Stoxx 600 index turned higher in a volatile session, to finish up 0.5% at 327.20.
The French CAC-40 climbed 1.1% to 5,055.24, while the UK's FTSE 100 closed up 0.1% at 6.216.00 and the German DAX 30 rose 0.3% to 7,083.24.
In the emerging markets, the Bovespa in Brazil was down 0.7% at 70,026 while the IPC index in Mexico climbed 1.45% to 31,336. The RTS index in Russia surged 2.8% to 2406 while the ISE National 30 index in Turkey jumped 1.9% to 52,392.
HOW MARKET FARED
--------------------------------------------------------------------------------
Bulls may be tested again
Markets started off the day with a negative bias mirroring overnight losses in the US markets. However, as the day progressed key indices gradually gained momentum on back of positive cues from the Asian markets. The momentum was further carried as the IT and Metal stocks attracted buying which saw the Nifty index close above the crucial 5k mark. Finally, the BSE benchmark Sensex ended 225 points higher to close at 16,948 and the Nifty index gained 53 points to close at 5,011.
Overall about 1,417 stocks advanced; 1,245 stocks declined while 88 stocks remained unchanged. Among the 50-Nifty 37 stocks ended in green and 13 stocks ended in red.
Strides Arcolab surged by over 3.5% to Rs182 after the company announced receipt of ANDA approval for Flumazenil Injection USP. 0.1 mg / ml multiple dose vial. The product is licensed to Akorn-Strides, LLC, which is a joint venture that was funned in 2004 by Akorn, Inc and Strides Arcolab Ltd. The scrip touched an intra-day high of Rs195 and a low of Rs175 and recorded volumes of over 95,000 shares on NSE.
Sun Pharma Advanced gained by over 2% to Rs95 after the company announced its Q4 net profit at Rs144.7mn (up 190.5%) and the revenue was at Rs245.1mn. The scrip touched an intra-day high of Rs100 and a low of Rs93 and recorded volumes of over 14,00,000 shares on NSE.
LITL rallied by over 10% to Rs513 after the company announced that it secured Rs80bn International terminal project in Kerala. The scrip touched an intra-day high of Rs526 and a low of Rs446 and recorded volumes of over 17,00,000 shares on NSE.
JSW Steel surged by over 4% to Rs996 after the company announced that it posted 14% growth in crude steel production in April' 2008 including production of Salem works for corresponding period on comparable basis. JSW Steel also registered a 12% growth in Rolled flat product (HR Coils & Plates) & 33% growth in Rolled long products segments. The scrip touched an intra-day high of Rs1044 and a low of Rs950 and recorded volumes of over 5,00,000 shares on NSE.
The IT stocks were in momentum as the Indian rupee further depreciated to Rs42.45 per dollar. IT bellwether Infosys gained by over 4.5% to Rs1826, Satyam gained by a percent to Rs501, Wipro advanced by 2% to Rs503 and i-Flex added over 4.5% to Rs1386.
Apollo Tyres ended flat to Rs42, there were reports stating that Apollo Tyres partly owned by Michelin & Cie. would spend Rs10bn this year to raise capacity. The scrip touched an intra-day high of Rs43 and a low of Rs42 and recorded volumes of over 1,00,000 shares on NSE.
SCI rallied by over 6% to Rs258 after the board of directors of the company said it will consider bonus issue proposal. The board of directors of the company would meet on May 20, 2008 to consider the proposal. The scrip touched an intra-day high of Rs264 and a low of Rs249 and recorded volumes of over 3,00,000 shares on NSE.
For the day, we expect a better opening as most global markets are up. Intra-day gyrations are a given these days. Remain careful and selective while dabbling in fresh purchases. Pick up small quantities at lower levels to rebuild a long term portfolio.
The market breadth was only marginally positive, indicating that the bulls are still lacking in confidence. The small-cap and mid-cap indices were also subdued, meaning that strength in select large caps propped up the main indices. The market remains in a consolidation phase, and will continue to see alternate bouts of buying and selling. No clear trend is visible at this juncture, as negatives still outweigh the positives (if there are any).
Delivery volumes have taken a sharp dip, which underscores the current uncertainty and anxiety among the bulls on future direction of the market. FII inflows have slowed down considerably this year, which is proving to be a major stumbling block for the bulls. Inflation remains a formidable challenge as does the slowdown in the overall economy. India Inc's facing several headwinds on the cost front. As a result, the market is likely to remain sideways and rangebound in the near term.
Key Results Today: Chambal Fertilizers, Chennai Petroleum, Morepen Labs, Nelco, OCL India, PNB, Tamil Nadu Petroproducts, Torrent Power, Voltas, Zuari Industries and Zylog Systems.
Mercator Lines has reported strong results for Q4 and full year. The company has posted almost a 3-fold jump in net profit for FY08 at Rs3.7bn, supported by growing fleet, buoyant shipping demand and firm freight rates in dry carriers segment.
Cement stocks could be under pressure after companies pledged to cut prices, joining steelmakers in the government's efforts to curb inflation.
BASF SE, the promoter of BASF India has announced a voluntary Open Offer to purchase up to 6,289,591 shares (constituting 22.3% of the issued share capital of BASF India) at Rs274 per share for a total consideration of Rs1.72bn (assuming full acceptances are received in the Offer).
Maxwell Industries' Board will meet today to discuss the inter-se-transfer of shares among the promoters of the company. According to a financial daily, the Reddy family - a co promoter - is likely to sell its entire holding of 32% to other promoter, the Pathare family.
FIIs were net buyers of Rs851.2mn (provisional) in the cash segment yesterday while local institutions poured in Rs3.1bn. In the F&O segment, foreign funds were net sellers of Rs2.55bn. On Tuesday, FIIs were net buyers of Rs1.86bn while Mutual Funds were net sellers of Rs3.05bn.
Asian stocks rose the most in two weeks, led by technology companies, after Sony and NEC Electronics forecast higher-than-expected profit.
The MSCI Asia Pacific Index gained 1% at 151.52 as of 10:51 a.m. in Tokyo, poised for its largest advance since May 2. Almost four stocks rose for each that declined today.
Japan's Nikkei 225 Stock Average was up 1% at 14,258.45. All other Asian benchmark indexes rose, apart from New Zealand and the Philippines.
Sony shares surged the most in more than two years in Tokyo after the consumer electronics giant's Q1 results surpassed market expectations. NEC posted its steepest advance in 10 months.
Coca-Cola Amatil, Australia's biggest soft-drinks maker, jumped after saying net income will rise this year. Nippon Steel climbed the most in two months after a newspaper said Toyota agreed to pay more for the alloy.
US stocks ended higher on Wednesday, buoyed by a milder-than-expected consumer price inflation data and falling oil prices. But a late-session sell-off in technology shares checked further gains.
Financial and consumer discretionary stocks gained following the benign CPI report, while a smaller-than-expected loss posted by mortgage lender Freddie Mac helped ease credit-market jitters.
Off a triple-digit rise, the Dow Jones Industrial Average finished at 12,898.38, up 66.20 points, or 0.5% from the last close. All but five of its 30 components closed the day in positive turf, with HP and Verizon leading the blue-chip advance. Caterpillar and McDonald's lost the most ground, each down more than 1%.
The S&P 500 gained 6.52 points, or 0.4%, to end at 1,408.66. The technology-laden Nasdaq Composite climbed 1.58 points, less than 0.1%, to 2,496.7. Nine of ten industry groups in the S&P 500 rose as the Labor Department's April inflation report gave the Federal Reserve more leeway to stimulate the economy.
Macy's helped spark a rise among retailers, with the department-store operator maintaining its full-year profit forecast, while reporting a first-quarter loss. Freddie Mac, the second-largest US mortgage-finance company, rallied the most in six weeks after reporting a smaller loss than analysts estimated.
Market breadth was positive. Seven stocks advanced for every five that fell on the New York Stock Exchange.
The CPI rose 0.2% in April, versus forecasts for a rise of 0.3%. Stripping out food and auto sales, CPI rose 0.1%, versus expectations for a rise of 0.2%. Food prices played a big role in the rise in prices, posting the biggest jump in 18 years.
US light crude oil for June delivery fell $1.58 to settle at $124.22 in New York, despite a weaker-than-expected weekly inventories report. On Tuesday, crude hit a record trading high of $126.98 a barrel during the session.
The national average price for a gallon of regular unleaded gas rose to a record $3.758 from $3.732 the previous day, according to AAA. It was the seventh record in a row.
COMEX gold for August delivery fell $2.90 to $871 an ounce. The dollar firmed up a bit versus the euro and the yen. Treasury prices rose, lowering the yield to 3.90% from 3.92% late on Tuesday.
Thursday brings the weekly jobless claims report, readings on manufacturing in the New York and Philadelphia areas, and earnings from JC Penney.
M&A speculation, earnings and a better-than-expected reading on core US inflation lifted stocks in Europe. The pan-European Dow Jones Stoxx 600 index turned higher in a volatile session, to finish up 0.5% at 327.20.
The French CAC-40 climbed 1.1% to 5,055.24, while the UK's FTSE 100 closed up 0.1% at 6.216.00 and the German DAX 30 rose 0.3% to 7,083.24.
In the emerging markets, the Bovespa in Brazil was down 0.7% at 70,026 while the IPC index in Mexico climbed 1.45% to 31,336. The RTS index in Russia surged 2.8% to 2406 while the ISE National 30 index in Turkey jumped 1.9% to 52,392.
HOW MARKET FARED
--------------------------------------------------------------------------------
Bulls may be tested again
Markets started off the day with a negative bias mirroring overnight losses in the US markets. However, as the day progressed key indices gradually gained momentum on back of positive cues from the Asian markets. The momentum was further carried as the IT and Metal stocks attracted buying which saw the Nifty index close above the crucial 5k mark. Finally, the BSE benchmark Sensex ended 225 points higher to close at 16,948 and the Nifty index gained 53 points to close at 5,011.
Overall about 1,417 stocks advanced; 1,245 stocks declined while 88 stocks remained unchanged. Among the 50-Nifty 37 stocks ended in green and 13 stocks ended in red.
Strides Arcolab surged by over 3.5% to Rs182 after the company announced receipt of ANDA approval for Flumazenil Injection USP. 0.1 mg / ml multiple dose vial. The product is licensed to Akorn-Strides, LLC, which is a joint venture that was funned in 2004 by Akorn, Inc and Strides Arcolab Ltd. The scrip touched an intra-day high of Rs195 and a low of Rs175 and recorded volumes of over 95,000 shares on NSE.
Sun Pharma Advanced gained by over 2% to Rs95 after the company announced its Q4 net profit at Rs144.7mn (up 190.5%) and the revenue was at Rs245.1mn. The scrip touched an intra-day high of Rs100 and a low of Rs93 and recorded volumes of over 14,00,000 shares on NSE.
LITL rallied by over 10% to Rs513 after the company announced that it secured Rs80bn International terminal project in Kerala. The scrip touched an intra-day high of Rs526 and a low of Rs446 and recorded volumes of over 17,00,000 shares on NSE.
JSW Steel surged by over 4% to Rs996 after the company announced that it posted 14% growth in crude steel production in April' 2008 including production of Salem works for corresponding period on comparable basis. JSW Steel also registered a 12% growth in Rolled flat product (HR Coils & Plates) & 33% growth in Rolled long products segments. The scrip touched an intra-day high of Rs1044 and a low of Rs950 and recorded volumes of over 5,00,000 shares on NSE.
The IT stocks were in momentum as the Indian rupee further depreciated to Rs42.45 per dollar. IT bellwether Infosys gained by over 4.5% to Rs1826, Satyam gained by a percent to Rs501, Wipro advanced by 2% to Rs503 and i-Flex added over 4.5% to Rs1386.
Apollo Tyres ended flat to Rs42, there were reports stating that Apollo Tyres partly owned by Michelin & Cie. would spend Rs10bn this year to raise capacity. The scrip touched an intra-day high of Rs43 and a low of Rs42 and recorded volumes of over 1,00,000 shares on NSE.
SCI rallied by over 6% to Rs258 after the board of directors of the company said it will consider bonus issue proposal. The board of directors of the company would meet on May 20, 2008 to consider the proposal. The scrip touched an intra-day high of Rs264 and a low of Rs249 and recorded volumes of over 3,00,000 shares on NSE.
Market view on 15/5/08 Thursday
Cues for the day
Markets closed near the day’s high led by gains in Metal, IT and Telecom
stocks. Positive cues from the global markets proved to be the
sentiment driver, lifting the Nifty index to close above the crucial 5k
mark. Oil stocks suffered after the government’s move to share lower
subsidy of 50% than indicated earlier. Oil now becomes the latest
causality after steel and cement.
Today, we expect the indices to open in the green. However, strong
resistance at higher levels given the low trading turnover may result in
profit booking. In the coming week, the market will bias towards a
downward trend with no major triggers.
Sensex intra-day Sensex price volume
16,600
16,700
16,800
16,900
17,000
17,100
9:55 11:19 12:43 2:07 3:31
0
20
40
60
80
100
120
Sep-06 Mar-07 Sep-07 Mar-08
Volume
(Rs bn)
11,000
13,000
15,000
17,000
19,000
21,000 Sensex
Source: Bloomberg
Index movements
% change
Last
close 1 day 1 mth 3 mth
Sensex 16,978 1.3 5.1 (6.3)
Nifty 5,012 1.1 2.7 (5.5)
BSE S. Cap 6,798 0.4 4.9 (5.8)
BSE Bankex 8,597 (0.1) 7.4 (21.0)
BSE IT 4,427 3.8 14.6 14.1
BSE Metal 16,435 4.4 17.2 1.7
BSE Oil 10,917 0.1 (3.7) (3.1)
BSE Realty 7,778 0.4 6.0 (25.9)
BSE Auto 4,719 1.0 5.7 (1.0)
Dow Jones 12,898 0.5 4.3 4.5
Nasdaq 2,497 0.1 9.2 7.5
Support/Resistance levels
Close Support Resistance
Nifty 5,012 4,970 5,075
Sensex 16,978 16,500 17,600
Institutional activity
(Rs cr) Cash F&O MTD YTD
FIIs 186.3 (254.9) 9.6 (11,231.5)
MFs (305.4) 7,702.5 15.5
FIIs Prov. 85.1
MFs Prov. 310.4
Daily trade value
(Rs cr) %chg
Cash NSE 12,732 (10.8)
Cash BSE 6,417 (3.1)
Derivatives 32,920 (13.6)
Stock movement
(Nos) Adv Dec Unch
A 140 63 1
B 905 790 59
S 211 222 19
Total 1,102 1,593 51
FII open interest
(Rs cr) %chg
Index futures 18,722 0.1
Index options 18,530 4.4
Stock futures 19,801 1.0
Stock options 949 0.4
Commodity, Currency & Debt
% change
1 day 1 mth 3 mth
Crude ($/Bbl) 123.7 (0.5) 8.7 29.6
Gold ($/OZ) 863.8 (0.3) (6.9) (4.3)
Silver ($/OZ) 16.5 (0.0) (7.4) (3.2)
Re/US$ 42.5 0.0 (5.7) (6.6)
Yen/US$ 105.1 0.0 (3.1) 2.6
10yr G. Bond 7.8 0.0 - -
News snippets
~ Secondary steel makers to cut prices by Rs4,000 per tonne. (BS)
~ Cement firms agree to cut prices ranging between Rs3.5-7 per
bag. (BS)
~ Tata group plans to up stakes in globally active subsidiaries by 3-
4% this year. (BS)
~ Bharti and MTN in talks for 50:50 cash-share deal. (BS)
~ Lafarge buys L&T’s concrete business for Rs1,480cr. (BS)
~ Consortium led by Lanco Infratech wins Rs8,000cr Kerala port
project. (Mint)
~ Kotak Mahindra Bank to raise US$1.2bn. (Mint)
~ Punj Lloyd plans to offer onshore oil rigs to Libya’s National Oil
Corporation. (Mint)
~ Supreme Court stays order against Tata-BEST power pact. (Mint)
~ Satyam loses appeal barring its moves to block the online mobile
payment company Upaid’s fraud and forgery claims against it in
Texas. (Mint)
~ GHCL eyes US furnishing firm Linens ’N Thing. (ET)
Markets closed near the day’s high led by gains in Metal, IT and Telecom
stocks. Positive cues from the global markets proved to be the
sentiment driver, lifting the Nifty index to close above the crucial 5k
mark. Oil stocks suffered after the government’s move to share lower
subsidy of 50% than indicated earlier. Oil now becomes the latest
causality after steel and cement.
Today, we expect the indices to open in the green. However, strong
resistance at higher levels given the low trading turnover may result in
profit booking. In the coming week, the market will bias towards a
downward trend with no major triggers.
Sensex intra-day Sensex price volume
16,600
16,700
16,800
16,900
17,000
17,100
9:55 11:19 12:43 2:07 3:31
0
20
40
60
80
100
120
Sep-06 Mar-07 Sep-07 Mar-08
Volume
(Rs bn)
11,000
13,000
15,000
17,000
19,000
21,000 Sensex
Source: Bloomberg
Index movements
% change
Last
close 1 day 1 mth 3 mth
Sensex 16,978 1.3 5.1 (6.3)
Nifty 5,012 1.1 2.7 (5.5)
BSE S. Cap 6,798 0.4 4.9 (5.8)
BSE Bankex 8,597 (0.1) 7.4 (21.0)
BSE IT 4,427 3.8 14.6 14.1
BSE Metal 16,435 4.4 17.2 1.7
BSE Oil 10,917 0.1 (3.7) (3.1)
BSE Realty 7,778 0.4 6.0 (25.9)
BSE Auto 4,719 1.0 5.7 (1.0)
Dow Jones 12,898 0.5 4.3 4.5
Nasdaq 2,497 0.1 9.2 7.5
Support/Resistance levels
Close Support Resistance
Nifty 5,012 4,970 5,075
Sensex 16,978 16,500 17,600
Institutional activity
(Rs cr) Cash F&O MTD YTD
FIIs 186.3 (254.9) 9.6 (11,231.5)
MFs (305.4) 7,702.5 15.5
FIIs Prov. 85.1
MFs Prov. 310.4
Daily trade value
(Rs cr) %chg
Cash NSE 12,732 (10.8)
Cash BSE 6,417 (3.1)
Derivatives 32,920 (13.6)
Stock movement
(Nos) Adv Dec Unch
A 140 63 1
B 905 790 59
S 211 222 19
Total 1,102 1,593 51
FII open interest
(Rs cr) %chg
Index futures 18,722 0.1
Index options 18,530 4.4
Stock futures 19,801 1.0
Stock options 949 0.4
Commodity, Currency & Debt
% change
1 day 1 mth 3 mth
Crude ($/Bbl) 123.7 (0.5) 8.7 29.6
Gold ($/OZ) 863.8 (0.3) (6.9) (4.3)
Silver ($/OZ) 16.5 (0.0) (7.4) (3.2)
Re/US$ 42.5 0.0 (5.7) (6.6)
Yen/US$ 105.1 0.0 (3.1) 2.6
10yr G. Bond 7.8 0.0 - -
News snippets
~ Secondary steel makers to cut prices by Rs4,000 per tonne. (BS)
~ Cement firms agree to cut prices ranging between Rs3.5-7 per
bag. (BS)
~ Tata group plans to up stakes in globally active subsidiaries by 3-
4% this year. (BS)
~ Bharti and MTN in talks for 50:50 cash-share deal. (BS)
~ Lafarge buys L&T’s concrete business for Rs1,480cr. (BS)
~ Consortium led by Lanco Infratech wins Rs8,000cr Kerala port
project. (Mint)
~ Kotak Mahindra Bank to raise US$1.2bn. (Mint)
~ Punj Lloyd plans to offer onshore oil rigs to Libya’s National Oil
Corporation. (Mint)
~ Supreme Court stays order against Tata-BEST power pact. (Mint)
~ Satyam loses appeal barring its moves to block the online mobile
payment company Upaid’s fraud and forgery claims against it in
Texas. (Mint)
~ GHCL eyes US furnishing firm Linens ’N Thing. (ET)
Tuesday, May 13, 2008
Nifty support and resistance
NIFTY STRONG SUPPORT 4940-4918 RESISTENCE 5033-5054
VERY VERY STRONG SUPPORT 4777-4620
VERY VERY STRONG SUPPORT 4777-4620
Sensex support and resistance
the SENSEX may face resistance around 16900, 17000, 17080, 17140. While falling, the SENSEX may take support around 16690, 16600, 16550, 16450
Bulls hold on to strong gains
At 12:44 pm (IST), the BSE 30-share Sensex was up 196 points at 17,058 and NSE Nifty was up 42 points at 5,055.
Markets continue to hold on to their early gains following a positive start in the equity markets across Europe. The CAC index in France was up 0.75% and the DAX index was up by half a percent. Constant buying in scrips across the sectors have held the markets around its days high.
At 12:44 pm (IST), the BSE 30-share Sensex was up 196 points at 17,058 and NSE Nifty was up 42 points at 5,055.
Aishwarya Telecom has surged by over 6.5% to Rs105 after 11.5% of its equity changed hands in two trades. ~5,14,570 shares were traded at Rs103 per share. The scrip has touched an intra-day high of Rs106 and a low of Rs96 and has recorded volumes of over 31,00,000 shares on NSE.
Bharti Airtel is trading lower by half a percent to Rs833. According to reports the company is expected to submit revised bid to acquire South Africa’s MTN as Dubai based Emirates Telecommunications (Etisalat) joins the race. The scrip has touched an intra-day high of Rs845 and a low of Rs825 and has recorded volumes of over 11,00,000 shares on NSE.
Bajaj Holdings has gained by 1.5% to Rs693 as the company on Monday announced that it would sign a formal agreement with Renault and Nissan in June 2008 for making their proposed small car in India, scheduled to be launched by 2011. The scrip has touched an intra-day high of Rs697 and a low of Rs686 and has recorded volumes of over 18,000 shares on NSE.
Videocon Industries has surged by over 3% to Rs365 following reports that the company is planning to enter into hospitality and hydropower businesses. The company is in talks with the Uttarakhand government for various projects. The scrip has touched an intra-day high of Rs371 and a low of Rs355 and has recorded volumes of over 99,000 shares on NSE.
Jindal Stainless has advanced by 2.5% to Rs144 after reports stated that the company signed a joint venture agreement with the Indonesia-based PT Antam Tbk to develop a nickel smelting and stainless steel facility in North Konawe, South East Sulawesi at an investment of about Rs29bn. Antam will hold 55% stake in the project. The scrip has touched an intra-day high of Rs145 and a low of Rs143 and has recorded volumes of over 40,000 shares on NSE
Markets may remain under pressure
Markets may remain under pressure in the coming days as the Nifty index continues to stay under the 200 DMA. So it would be advisable to stay in the sidelines and be cautious.
Markets slipped into the red in the last hour of the trading session as selling in Oil & Gas and select IT and Telecom stocks dragged the Nifty index below the 5k mark again. The sentiments were further dampened as European markets also were trading lower. However, the metal, FMCG, banking and realty stocks attracted buying interest.
Finally, the BSE benchmark Sensex ended 108 points lower to close at 16,752 and the Nifty index gained 54 points to close at 4,957.
Overall about 1,410 stocks advanced; 1,305 stocks declined while 69 stocks remained unchanged. Among the 50-Nifty 32 stocks ended in red and 18 stocks ended in green.
Mphasis rallied by over 10% to Rs242 after Hewlett-Packard (H-P) and Electronic Data Systems (EDS) confirmed that they were in advanced discussions to strike a deal whereby H-P could acquire the technology services giant. The deal could be wroth up to US$13bn, the Wall Street Journal reports citing unnamed sources close to the matter.
H-P said it would have no further comment regarding a possible business combination involving the two companies, until either a deal is reached or talks are broken off. The acquisition would be HP's biggest since its $19bn acquisition of Compaq in 2002. Shares of EDS rose nearly 28%, taking its market value to about US$12bn. HP shares fell nearly 5% amid some skepticism that slow-growing EDS, still considered in turnaround mode, would provide more than a one-time boost, and might not be worth a premium of as much as 37%.
SBI gained by a half a percent to Rs1668 after the company said that they would expand into general insurance biz. The bank tied up with Insurance Australia where, SBI would hold 74% and Insurance Australia would hold 26% in the venture. The scrip touched an intra-day high of Rs1690 and a low of Rs1651 and recorded volumes of over 3,00,000 shares on BSE.
Jindal Stainless advanced by 0.5% to Rs142 after reports stated that the company signed a joint venture agreement with the Indonesia-based PT Antam Tbk to develop a nickel smelting and stainless steel facility in North Konawe, South East Sulawesi at an investment of about Rs29bn. Antam will hold 55% stake in the project. The scrip touched an intra-day high of Rs145 and a low of Rs142 and recorded volumes of over 26,000 shares on BSE.
Sita Shree Food slipped 2.6% to Rs46. The company announced that it received export orders worth Rs100mn from Vietnam, Pakistan, UAE, KSA and turkey. Moreover the company executed export orders worth Rs83mn during april- may'08. The scrip touched an intra-day high of Rs49 and a low of Rs45 and recorded volumes of over 13,00,000 shares on BSE.
Philips Carbon fell by 2.3% to Rs184. There were reports stating that, the company doubled investment commitment to Rs3bn from Rs1.5bn in its Vietnam joint venture, as the capacity for the plant has been raised to 1 lakh tons from 50,000 tons planned earlier. The scrip touched an intra-day high of Rs194 and a low of Rs181 and recorded volumes of over 12,000 shares on BSE.
RCom slipped by a percent to Rs545. According to reports the French-US equipment firm Alcatel-Lucent has formed a joint venture with RCom to offer managed-net-work services to domestic as well as international telecom operators. The scrip touched an intra-day high of Rs559 and a low of Rs541 and recorded volumes of over 11,00,000 shares on BSE.
GAIL India slipped by 2% to Rs408. The company announced its Q4 results with net profit at Rs7.22bn (up 6%) and net sales at Rs49.35bn (up 27%). The company also said that they plan to invest Rs34.13bn this fiscal year, they would also invest Rs25.65bn on pipelines and Rs5bn in exploration and production. The scrip touched an intra-day high of Rs422 and a low of Rs405 and recorded volumes of over 3,00,000 shares on BSE.
Markets slipped into the red in the last hour of the trading session as selling in Oil & Gas and select IT and Telecom stocks dragged the Nifty index below the 5k mark again. The sentiments were further dampened as European markets also were trading lower. However, the metal, FMCG, banking and realty stocks attracted buying interest.
Finally, the BSE benchmark Sensex ended 108 points lower to close at 16,752 and the Nifty index gained 54 points to close at 4,957.
Overall about 1,410 stocks advanced; 1,305 stocks declined while 69 stocks remained unchanged. Among the 50-Nifty 32 stocks ended in red and 18 stocks ended in green.
Mphasis rallied by over 10% to Rs242 after Hewlett-Packard (H-P) and Electronic Data Systems (EDS) confirmed that they were in advanced discussions to strike a deal whereby H-P could acquire the technology services giant. The deal could be wroth up to US$13bn, the Wall Street Journal reports citing unnamed sources close to the matter.
H-P said it would have no further comment regarding a possible business combination involving the two companies, until either a deal is reached or talks are broken off. The acquisition would be HP's biggest since its $19bn acquisition of Compaq in 2002. Shares of EDS rose nearly 28%, taking its market value to about US$12bn. HP shares fell nearly 5% amid some skepticism that slow-growing EDS, still considered in turnaround mode, would provide more than a one-time boost, and might not be worth a premium of as much as 37%.
SBI gained by a half a percent to Rs1668 after the company said that they would expand into general insurance biz. The bank tied up with Insurance Australia where, SBI would hold 74% and Insurance Australia would hold 26% in the venture. The scrip touched an intra-day high of Rs1690 and a low of Rs1651 and recorded volumes of over 3,00,000 shares on BSE.
Jindal Stainless advanced by 0.5% to Rs142 after reports stated that the company signed a joint venture agreement with the Indonesia-based PT Antam Tbk to develop a nickel smelting and stainless steel facility in North Konawe, South East Sulawesi at an investment of about Rs29bn. Antam will hold 55% stake in the project. The scrip touched an intra-day high of Rs145 and a low of Rs142 and recorded volumes of over 26,000 shares on BSE.
Sita Shree Food slipped 2.6% to Rs46. The company announced that it received export orders worth Rs100mn from Vietnam, Pakistan, UAE, KSA and turkey. Moreover the company executed export orders worth Rs83mn during april- may'08. The scrip touched an intra-day high of Rs49 and a low of Rs45 and recorded volumes of over 13,00,000 shares on BSE.
Philips Carbon fell by 2.3% to Rs184. There were reports stating that, the company doubled investment commitment to Rs3bn from Rs1.5bn in its Vietnam joint venture, as the capacity for the plant has been raised to 1 lakh tons from 50,000 tons planned earlier. The scrip touched an intra-day high of Rs194 and a low of Rs181 and recorded volumes of over 12,000 shares on BSE.
RCom slipped by a percent to Rs545. According to reports the French-US equipment firm Alcatel-Lucent has formed a joint venture with RCom to offer managed-net-work services to domestic as well as international telecom operators. The scrip touched an intra-day high of Rs559 and a low of Rs541 and recorded volumes of over 11,00,000 shares on BSE.
GAIL India slipped by 2% to Rs408. The company announced its Q4 results with net profit at Rs7.22bn (up 6%) and net sales at Rs49.35bn (up 27%). The company also said that they plan to invest Rs34.13bn this fiscal year, they would also invest Rs25.65bn on pipelines and Rs5bn in exploration and production. The scrip touched an intra-day high of Rs422 and a low of Rs405 and recorded volumes of over 3,00,000 shares on BSE.
Monday, May 12, 2008
MARKET TIPS
mkt to open up niftu future sup at 4997 concentrate on midcaps.
BUY RANBAXY 490 SL 483 TRGT 502
BUY MHASIS 220 SL 216.40 TRGT 222
TITANIUM CALL RADHA MADHAV 66 SL 63 TRGT 121
BUY INDIA INFO 999 SL
BUY HINDALCOM 180 SL 178 TGT 187980 TRGT 1100 ST
BUY RANBAXY 490 SL 483 TRGT 502
BUY MHASIS 220 SL 216.40 TRGT 222
TITANIUM CALL RADHA MADHAV 66 SL 63 TRGT 121
BUY INDIA INFO 999 SL
BUY HINDALCOM 180 SL 178 TGT 187980 TRGT 1100 ST
Today stock market opened down at 0.57pct
India's main stock index started 0.57 pct lower on today, weighed downward by uncertainty more than the health of the U.S. economy and rising and falling oil and commodity prices.
The 30-share BSE index was down 0.26 pct, or 42.90 points, at 16,694.17, with 25 components declining at 9:57a.m. The 50-share NSE index was downward 0.24 pct at 4,970.70.
The 30-share BSE index was down 0.26 pct, or 42.90 points, at 16,694.17, with 25 components declining at 9:57a.m. The 50-share NSE index was downward 0.24 pct at 4,970.70.
News snippets
~ Industrial production fell to a six-year low of 3% in March 2008
against 14.8% in the same month last year. Annual industrial
growth in 2007-08 was at a three-year low of 8.13% over 11.6%
in 2006-07. (BS)
~ Bharti Airtel is expected to submit revised bid to acquire South
Africa’s MTN as Dubai based Emirates Telecommunications
(Etisalat) joins the race. (ET)
~ The spot rupee touched a one-year low of 42.11 against the US
Dollar today due to a heavy demand for dollars from oil and nonoil
importing companies and a lack of supply of the currency. (BS)
~ The Indian steel industry will take a decision on revising its prices
after the government reviews the export duty on the alloy. (BS)
~ Ranbaxy Laboratories has signed a strategic product
development agreement with German pharma major Merck for
anti-infective drugs. (ET)
~ ONGC launched India's first pilot plant to extract helium from
natural gas at Kuthalam in Nagapattinam district. (BS)
~ Reliance, ITC queue up for railways’ land of 4,800 hectares, to be
leased out to retailers and logistic companies. (ET)
~ Arvind Mills plans to invest ~Rs400cr in expanding its retail
presence. (ET)
against 14.8% in the same month last year. Annual industrial
growth in 2007-08 was at a three-year low of 8.13% over 11.6%
in 2006-07. (BS)
~ Bharti Airtel is expected to submit revised bid to acquire South
Africa’s MTN as Dubai based Emirates Telecommunications
(Etisalat) joins the race. (ET)
~ The spot rupee touched a one-year low of 42.11 against the US
Dollar today due to a heavy demand for dollars from oil and nonoil
importing companies and a lack of supply of the currency. (BS)
~ The Indian steel industry will take a decision on revising its prices
after the government reviews the export duty on the alloy. (BS)
~ Ranbaxy Laboratories has signed a strategic product
development agreement with German pharma major Merck for
anti-infective drugs. (ET)
~ ONGC launched India's first pilot plant to extract helium from
natural gas at Kuthalam in Nagapattinam district. (BS)
~ Reliance, ITC queue up for railways’ land of 4,800 hectares, to be
leased out to retailers and logistic companies. (ET)
~ Arvind Mills plans to invest ~Rs400cr in expanding its retail
presence. (ET)
Saturday, May 10, 2008
NTPC eyes overseas coal blocks to overcome fuel shortfall
The National Thermal Power Corporation (NTPC) is contemplating to obtain coal blocks in Indonesia, Mozambique and South Africa to replenish the fuel supply shortfall from domestic sources, reports Business Line.
The company has ambitious capacity addition targets and securing fule supply is a priority, according to NTPC`s new Chairman and Managing Director, Ram Sharan Sharma.
Out of the total requirement of 110 million tons to fuel its thermal power plants, the company currently imports about 2 million tons of coal, and is looking at coal mines abroad that can give upto 20 million tons of coal per annum.
The company needs about 5 million tons of coal for projects already planned and the balance would meet the fuel requirement of future projects. It has already floated a joint venture firm Coal Ventures International , with Steel Authority of India , Rashtriya Ispat Nigam , Coal India and National Mineral Development Corp to secure coal mines abroad.
Revealing the expansion plans, Ram Sharan Sharma said, the company plans to add 22,430 MW of new electricity generation units during the 11th Five Year Plan (2007-12), about 28.6 % over the 78,000 MW generation capacity government plans to add during the period with the objective of providing ``Power to all by the year 2012``
Shares of the company declined Rs 0.9, or 0.47%, to trade at Rs 191.8. The total volume of shares traded was 768,546 at the BSE
(Friday).
The company has ambitious capacity addition targets and securing fule supply is a priority, according to NTPC`s new Chairman and Managing Director, Ram Sharan Sharma.
Out of the total requirement of 110 million tons to fuel its thermal power plants, the company currently imports about 2 million tons of coal, and is looking at coal mines abroad that can give upto 20 million tons of coal per annum.
The company needs about 5 million tons of coal for projects already planned and the balance would meet the fuel requirement of future projects. It has already floated a joint venture firm Coal Ventures International , with Steel Authority of India , Rashtriya Ispat Nigam , Coal India and National Mineral Development Corp to secure coal mines abroad.
Revealing the expansion plans, Ram Sharan Sharma said, the company plans to add 22,430 MW of new electricity generation units during the 11th Five Year Plan (2007-12), about 28.6 % over the 78,000 MW generation capacity government plans to add during the period with the objective of providing ``Power to all by the year 2012``
Shares of the company declined Rs 0.9, or 0.47%, to trade at Rs 191.8. The total volume of shares traded was 768,546 at the BSE
(Friday).
Friday, May 9, 2008
Soya oil futures ban will not impact inflation
Soyabean Processor Association of India (SOPA) on Thursday came out against government’s decision to ban futures trading of soya oil saying that it would not impact inflation. A senior official with SOPA said that the price of soya oil is decided by the demand and supply scenario as the country imports more than 50% of 11 million tonne domestic edible oil consumption.
INFLATION RISES TO 7.61 PERCENT
India's wholesale price index rose 7.61 per cent in the 12 months to April 26, marginally higher than previous week's annual rise of 7.57 percent, government data showed on Friday.
The rate matched a median forecast of 7.61 per cent in a poll of analysts. It was the highest since an annual reading of 7.68 percent on Nov 13, 2004. Annual inflation for the week ended March 1 was revised to 6.21 per cent from 5.11 per cent.
The annual inflation rate was 6.01 per cent during the corresponding week of the previous year. The wholesale price index stood at 227.7 points in the week ended April 26.
"The fiscal and trade measures taken by the government should start having an impact in the coming weeks. Particularly the cut in steel prices announced by the steel producers should reflect in the index.
"However, with oil prices still firm, we expect the WPI index to remain above 7 percent in the coming weeks. We expect the RBI to keep policy rates unchanged in 2008, but hike the CRR by at least 50 basis points to manage liquidity."
The yield on the 10-year federal bond was unchanged at 7.86 per cent, steady from before the data. The partially convertible rupee was at 41.38/39 per dollar, unchanged from beforehand.
India suspended futures trading in four commodities this week for a period of four months after criticism from government allies that futures had contributed to rising inflation.
The RBI said last week it was raising the cash reserve ratio by 25 basis points to 8.25 percent, its highest level in seven years, to control inflation-stoking cash in the system.
The rise will take effect from May 24. The unexpected increase in the CRR, the amount of funds banks have to keep on deposit with the central bank, followed a two-stage rise announced earlier in April to 8.0 per cent.
The rate matched a median forecast of 7.61 per cent in a poll of analysts. It was the highest since an annual reading of 7.68 percent on Nov 13, 2004. Annual inflation for the week ended March 1 was revised to 6.21 per cent from 5.11 per cent.
The annual inflation rate was 6.01 per cent during the corresponding week of the previous year. The wholesale price index stood at 227.7 points in the week ended April 26.
"The fiscal and trade measures taken by the government should start having an impact in the coming weeks. Particularly the cut in steel prices announced by the steel producers should reflect in the index.
"However, with oil prices still firm, we expect the WPI index to remain above 7 percent in the coming weeks. We expect the RBI to keep policy rates unchanged in 2008, but hike the CRR by at least 50 basis points to manage liquidity."
The yield on the 10-year federal bond was unchanged at 7.86 per cent, steady from before the data. The partially convertible rupee was at 41.38/39 per dollar, unchanged from beforehand.
India suspended futures trading in four commodities this week for a period of four months after criticism from government allies that futures had contributed to rising inflation.
The RBI said last week it was raising the cash reserve ratio by 25 basis points to 8.25 percent, its highest level in seven years, to control inflation-stoking cash in the system.
The rise will take effect from May 24. The unexpected increase in the CRR, the amount of funds banks have to keep on deposit with the central bank, followed a two-stage rise announced earlier in April to 8.0 per cent.
HOW MARKET FARED
Outlook remains cloudy
Losing streak for the bulls extends to fourth trading session on back of weak global cues and all round selling pressure. After starting off with a negative gap down, bulls were unable to stage a comeback led by fall in the Banking, IT and the capital Good stocks. The IT stocks after being in the upward trend in the past trading sessions also were under pressure after U.S. based Cognizant Technology Solutions Corp. forecast second-quarter profit and sales that missed analysts' estimates.
Finally, the BSE benchmark Sensex ended 258 points lower to close at 17,080 and the Nifty index lost 53 points to close at 5,081.
Overall about 1,106 stocks advanced; 1,589 stocks declined while 51 stocks remained unchanged. Among the 50-Nifty 35 stocks ended in red and 15 stocks ended in green.
Among the BSE Sectoral indices, BSE Bankex index (down 3%), BSE IT index (down 3%) and BSE FMCG index (down 2.7%). The BSE Metal index was the only gainer (up 0.5%).
TCS declined by 2.2% to Rs943. The company announced that it has renewed its managed services contract with one of the world’s leading long haul airlines Virgin Atlantic. By entrusting the management of its IT infrastructure and applications management to TCS, Virgin Atlantic is in a position to focus on core business activities and flex with the future challenges of the international airline industry. The scrip touched an intra-day high of Rs971 and a low of Rs919 and recorded volumes of over 2,00,000 shares on BSE.
Uttam Galve steels dropped by over 3% to Rs38 after the company said that it cut galvanized steel prices. The scrip touched an intra-day high of Rs40 and a low of Rs38.45 and recorded volumes of over 76,000 shares on BSE.
Ashok Leyland declined by over 3% to Rs40. The company announced that its Q4 net profit was at Rs1.81bn (up 5.2%) revenues were at Rs25.7bn (up 11.2%). The scrip touched an intra-day high of Rs41 and a low of Rs40 and recorded volumes of over 31,00,000 shares on BSE.
Patni Computer was down by a 2% to Rs271. The company on Thursday announced that it has partnered with Schindler, a leading global mobility company, for the development, enhancement and testing services for Schindler's double-deck elevator. The scrip touched an intra-day high of Rs283 and a low of Rs267 and recorded volumes of 1,00,000 over shares on BSE.
IFCI was down by 3.5% to Rs60 after LIC seeks to dilute its holding in the company and is awaiting cues from the government on its future strategy, reports stated. The insurance major has approached the IFCI management to reduce its holding from 11.39% to 8.39%, the level it was at prior to conversion of debt into equity earlier this year, according to reports. The scrip touched an intra-day high of Rs61 and a low of Rs57 and recorded volumes of over 14,00,000 shares on BSE.
Videocon Industries was up by 3% to Rs366 after reports stated that the company would be setting up a multi-product industrial park and a 1,320 MW thermal power plant in the West Godavari District of Andhra Pradesh. The scrip touched an intra-day high of Rs372 and a low of Rs345 and recorded volumes of over 6,00,000 shares on BSE.
Indiabulls Real Estate dropped by over 1.5% to Rs547. The company announced that it acquires Dev Property development. The scrip touched an intra-day high of Rs554 and a low of Rs520 and recorded volumes of over 5,00,000 shares on BSE.
HCL Technologies declined by over 2% to Rs288. The company has announced a significantly expanded partnership with Serena Software, Inc. Further strengthening a seven relationship between the two companies, HCL will now provide end-to-end product development, sustenance engineering and release managemønt for Serena PVCS Professional and Serena Dimensions RM, and will open a dedicated offshore development center for Serena. The scrip touched an intra-day high of Rs295 and a low of Rs283 and recorded volumes of over 39,000 shares on BSE.
MRPL was down by over 5% to Rs97. During the Q4 ended 31st March 2008, MRPL recorded tunover of Rs1081.2mn and earned net profit of Rs22.5mn after providing the interest Rs3.6mn, Depreciation Rs9.5mn and Tax Provision Rs8.4mn. During the Financial year ended 31st March 2008, company has earned net profit of Rs127.2mn as compared to Rs52.5mn in the previous year, after providing interest and finance charges of Rs14.8mn, depreciation of Rs37.8mn and tax liability of Rs46.1mn.The exports during the year were Rs1123.2mn. The scrip touched an intra-day high of Rs102 and a low of Rs96 and recorded volumes of over 25,00,000 shares on BSE.
Tata Investment gained by 2.5% to Rs542 after the company announced that the Board of Directors of the Company would meet on May 16, 2008 to consider raising of additional long term funds. The scrip touched an intra-day high of Rs550 and a low of Rs530 and recorded volumes of over 5,000 shares on BSE.
Losing streak for the bulls extends to fourth trading session on back of weak global cues and all round selling pressure. After starting off with a negative gap down, bulls were unable to stage a comeback led by fall in the Banking, IT and the capital Good stocks. The IT stocks after being in the upward trend in the past trading sessions also were under pressure after U.S. based Cognizant Technology Solutions Corp. forecast second-quarter profit and sales that missed analysts' estimates.
Finally, the BSE benchmark Sensex ended 258 points lower to close at 17,080 and the Nifty index lost 53 points to close at 5,081.
Overall about 1,106 stocks advanced; 1,589 stocks declined while 51 stocks remained unchanged. Among the 50-Nifty 35 stocks ended in red and 15 stocks ended in green.
Among the BSE Sectoral indices, BSE Bankex index (down 3%), BSE IT index (down 3%) and BSE FMCG index (down 2.7%). The BSE Metal index was the only gainer (up 0.5%).
TCS declined by 2.2% to Rs943. The company announced that it has renewed its managed services contract with one of the world’s leading long haul airlines Virgin Atlantic. By entrusting the management of its IT infrastructure and applications management to TCS, Virgin Atlantic is in a position to focus on core business activities and flex with the future challenges of the international airline industry. The scrip touched an intra-day high of Rs971 and a low of Rs919 and recorded volumes of over 2,00,000 shares on BSE.
Uttam Galve steels dropped by over 3% to Rs38 after the company said that it cut galvanized steel prices. The scrip touched an intra-day high of Rs40 and a low of Rs38.45 and recorded volumes of over 76,000 shares on BSE.
Ashok Leyland declined by over 3% to Rs40. The company announced that its Q4 net profit was at Rs1.81bn (up 5.2%) revenues were at Rs25.7bn (up 11.2%). The scrip touched an intra-day high of Rs41 and a low of Rs40 and recorded volumes of over 31,00,000 shares on BSE.
Patni Computer was down by a 2% to Rs271. The company on Thursday announced that it has partnered with Schindler, a leading global mobility company, for the development, enhancement and testing services for Schindler's double-deck elevator. The scrip touched an intra-day high of Rs283 and a low of Rs267 and recorded volumes of 1,00,000 over shares on BSE.
IFCI was down by 3.5% to Rs60 after LIC seeks to dilute its holding in the company and is awaiting cues from the government on its future strategy, reports stated. The insurance major has approached the IFCI management to reduce its holding from 11.39% to 8.39%, the level it was at prior to conversion of debt into equity earlier this year, according to reports. The scrip touched an intra-day high of Rs61 and a low of Rs57 and recorded volumes of over 14,00,000 shares on BSE.
Videocon Industries was up by 3% to Rs366 after reports stated that the company would be setting up a multi-product industrial park and a 1,320 MW thermal power plant in the West Godavari District of Andhra Pradesh. The scrip touched an intra-day high of Rs372 and a low of Rs345 and recorded volumes of over 6,00,000 shares on BSE.
Indiabulls Real Estate dropped by over 1.5% to Rs547. The company announced that it acquires Dev Property development. The scrip touched an intra-day high of Rs554 and a low of Rs520 and recorded volumes of over 5,00,000 shares on BSE.
HCL Technologies declined by over 2% to Rs288. The company has announced a significantly expanded partnership with Serena Software, Inc. Further strengthening a seven relationship between the two companies, HCL will now provide end-to-end product development, sustenance engineering and release managemønt for Serena PVCS Professional and Serena Dimensions RM, and will open a dedicated offshore development center for Serena. The scrip touched an intra-day high of Rs295 and a low of Rs283 and recorded volumes of over 39,000 shares on BSE.
MRPL was down by over 5% to Rs97. During the Q4 ended 31st March 2008, MRPL recorded tunover of Rs1081.2mn and earned net profit of Rs22.5mn after providing the interest Rs3.6mn, Depreciation Rs9.5mn and Tax Provision Rs8.4mn. During the Financial year ended 31st March 2008, company has earned net profit of Rs127.2mn as compared to Rs52.5mn in the previous year, after providing interest and finance charges of Rs14.8mn, depreciation of Rs37.8mn and tax liability of Rs46.1mn.The exports during the year were Rs1123.2mn. The scrip touched an intra-day high of Rs102 and a low of Rs96 and recorded volumes of over 25,00,000 shares on BSE.
Tata Investment gained by 2.5% to Rs542 after the company announced that the Board of Directors of the Company would meet on May 16, 2008 to consider raising of additional long term funds. The scrip touched an intra-day high of Rs550 and a low of Rs530 and recorded volumes of over 5,000 shares on BSE.
Global softening, inflation in focus
Success is the ability to go from one failure to another with no loss of enthusiasm.
The bulls certainly lack enthusiasm at the moment, and conviction as well to build on last month's rally. Losses mounted for the bulls yesterday even as crude oil repeatedly touched new all-time highs, stoking fresh concerns over inflation, which is already at a 3 1/2 year peak. The Government will announce its latest data on inflation at noon today, and the same is likely to increase further from 7.57%. However, it has been observed that the market at times have completely brushed aside rising inflation and has charted its own course. Last Friday was a case in point when the Sensex rallied by over 300 points despite inflation touching a 42-month high. The same trend may play out today as well, especially because the Sensex has lost more than 500 points this week. Having said that one should not fooled by any spurt, as the market is most likely to witness profit booking on every rally. Any fresh purchases should be restricted to high-quality stocks (preferably large caps) with clear visibility in terms of earnings growth. That too should be done in smaller chunks.
One should not get carried away by momentum in any scrip, as the trend could reverse rapidly. The market is still facing several headwinds, both local as well global. We are unlikely to see a one-way movement this year unless the factors that are hurting the market sentiment turn around. This may take a while. The market doesn't like uncertainty. And, with no immediate triggers for a big-bang rally, the market is expected to swing in a range of a few thousand points (Sensex: 16k-18k) with alternate bouts of buying and selling. Today, we expect yet another cautious to lower opening for the market. Asian markets have turned sharply lower after a flat opening. The Hang Seng was last seen down over 400 points, while The Nikkei was down by more than 100 points at mid-day break. The trend will remain dull till inflation numbers are out. Thereafter, its anybody's guess, though the bulls would be hoping for a better end to what has been a bad week.
FIIs were net sellers of Rs7.24bn (provisional) in the cash segment yesterday while local institutions poured in Rs6.1bn. In the F&O segment, foreign funds were net sellers of Rs13.69bn yesterday. On Wednesday, FIIs were net buyers of Rs3.25bn. Mutual Funds were net sellers of Rs231mn.
Key Results Today: Apollo Tyres, Asian Paints, Bharat Bijli, Kotak Mahindra Bank, Novartis India, Shalimar Paints and Su-Raj Diamond.
Meanwhile, the rupee fell to the lowest level in almost 13 months as crude oil traded near an all-time high, boosting demand for dollars from oil refiners. Crude oil is up 10% in the past week. " The rupee's fall reflects the uncertainties in global financial markets," said RBI Governor YV Reddy. Apparently, there were no dollar sales by either RBI or exporters. A weak stock market also hurt sentiment on the rupee.
The rupee declined 0.9% yesterday to 41.7375 per dollar, the lowest close since April 20, 2007. It is down 2.7% this week, the most in a five-day period since November 1997. The local currency may fall to 42 in the coming days, according to currency experts.
Asian stocks were mostly down for a third day, led by automakers and technology companies, after Toyota and Olympus forecast lower profits on rising raw material costs.
Toyota shares slumped after saying higher gasoline prices and a US economic slowdown will erode profit. Olympus tumbled the most in three months. BHP Billiton and Japan's Inpex Holdings gained after oil futures traded above $124 a barrel.
The MSCI Asia Pacific Index was down 0.5% at 149.90 as of 11:02 a.m. in Tokyo, after earlier advancing as much as 0.1%. The benchmark is poised for a five-day, 1.3% fall, its worst weekly performance in two months and snapping a two-week rally.
Japan's Nikkei 225 Stock Average was down 0.9% at 13,815.68. Australia's S&P/ASX 200 index climbed 1.2%, the biggest gain in the region, after National Australia Bank announced a 26% increase in its profit. Most other Asian markets declined.
US stocks rose marginally on Thursday, as investors welcomed some better-than-expected April retail sales. But, gains were capped by record-high oil prices and weakness in the financial sector.
Wal-Mart rose as the retail giant reported better than expected sales. News Corp. jumped on revenue that was lifted by advertisements for American Idol and the Super Bowl.
Freeport-McMoRan Copper & Gold and Chevron helped send raw-material and energy companies to the biggest gains in the S &P 500 Index. Alcoa climbed to a six-month high after naming a new CEO.
The S&P 500 added 5.11 points, or 0.4%, to 1,397.68. The Dow Jones Industrial Average gained 52.43 points, or 0.4%, to 12,866.78. The Nasdaq Composite Index rose 12.75 points, or 0.5%, to 2,451.24. About six stocks gained for every five that fell on the New York Stock Exchange.
Seven of 10 industry groups in the S&P 500 advanced as the market was also boosted by a government report that showed that initial jobless claims dropped last week more than economists had forecast.
With most of the quarterly earnings reports already having been released, the focus over the next few weeks will be on the economic news and the direction of commodity prices.
AIG shares dropped 2.1% after a S&P equity analyst slashed her forecasts for the insurance major ahead of it's first-quarter results. After the close, AIG reported a steeper-than-expected quarterly loss of $7.8bn and said it will look to raise $12.5bn in capital.
The national average price for a gallon of regular unleaded gas rose to a record $3.645 from $3.618 the previous day, according to AAA.
US light crude oil for June delivery rose 16 cents to settle at a record $123.69 a barrel on the New York Mercantile Exchange Thursday. Oil hit a record $124.49 in after-hours electronic trading.
COMEX gold for June delivery rose $11.10 to $882.30 an ounce. The dollar was little changed versus the euro and fell against the yen. Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.78% from 3.84% late on Wednesday.
The number of Americans filing new claims for unemployment fell by 18,000 last week to 365,000. Economists thought claims would post a narrower drop to 375,000 new claims.
Another economic report showed that wholesale inventories fell 0.1% in March, missing forecasts for growth of 0.5%. February's reading was revised down to growth of 0.9% from an initial reading of 1.1%.
Banking major Citigroup is holding an investor conference on Friday. It is likely to announce its strategy to deal with the ongoing crisis.
Most European stock benchmarks ended lower, as the European Central Bank and the Bank of England kept interest rates on hold, flagging inflation concerns. The pan-European Dow Jones Stoxx 600 index closed nearly unchanged at 329.28, with banks leading the decline.
ECB President Jean-Claude Trichet emphasized that inflation risks remain to the upside. After the comments from Trichet, the euro firmed and stocks moved further into the red.
The German DAX 30 ended 0.1% lower at 7,071.90, while the French CAC-40 slipped 0.4% to 5,055.58 and the Italian S&P/MIB index closed 1.3% lower at 34,082.00. The UK's FTSE 100, however, gained 0.2% to 6,270.80.
In the emerging markets the trend was mixed. The Bovespa in Brazil was up 1% at 69,722 while the IPC index in Mexico finished flat at 30,751. The RTS index in Russia surged by 3.75% to 2283 and the ISE National 30 index in Turkey slid 2.9% to 52,071.
The bulls certainly lack enthusiasm at the moment, and conviction as well to build on last month's rally. Losses mounted for the bulls yesterday even as crude oil repeatedly touched new all-time highs, stoking fresh concerns over inflation, which is already at a 3 1/2 year peak. The Government will announce its latest data on inflation at noon today, and the same is likely to increase further from 7.57%. However, it has been observed that the market at times have completely brushed aside rising inflation and has charted its own course. Last Friday was a case in point when the Sensex rallied by over 300 points despite inflation touching a 42-month high. The same trend may play out today as well, especially because the Sensex has lost more than 500 points this week. Having said that one should not fooled by any spurt, as the market is most likely to witness profit booking on every rally. Any fresh purchases should be restricted to high-quality stocks (preferably large caps) with clear visibility in terms of earnings growth. That too should be done in smaller chunks.
One should not get carried away by momentum in any scrip, as the trend could reverse rapidly. The market is still facing several headwinds, both local as well global. We are unlikely to see a one-way movement this year unless the factors that are hurting the market sentiment turn around. This may take a while. The market doesn't like uncertainty. And, with no immediate triggers for a big-bang rally, the market is expected to swing in a range of a few thousand points (Sensex: 16k-18k) with alternate bouts of buying and selling. Today, we expect yet another cautious to lower opening for the market. Asian markets have turned sharply lower after a flat opening. The Hang Seng was last seen down over 400 points, while The Nikkei was down by more than 100 points at mid-day break. The trend will remain dull till inflation numbers are out. Thereafter, its anybody's guess, though the bulls would be hoping for a better end to what has been a bad week.
FIIs were net sellers of Rs7.24bn (provisional) in the cash segment yesterday while local institutions poured in Rs6.1bn. In the F&O segment, foreign funds were net sellers of Rs13.69bn yesterday. On Wednesday, FIIs were net buyers of Rs3.25bn. Mutual Funds were net sellers of Rs231mn.
Key Results Today: Apollo Tyres, Asian Paints, Bharat Bijli, Kotak Mahindra Bank, Novartis India, Shalimar Paints and Su-Raj Diamond.
Meanwhile, the rupee fell to the lowest level in almost 13 months as crude oil traded near an all-time high, boosting demand for dollars from oil refiners. Crude oil is up 10% in the past week. " The rupee's fall reflects the uncertainties in global financial markets," said RBI Governor YV Reddy. Apparently, there were no dollar sales by either RBI or exporters. A weak stock market also hurt sentiment on the rupee.
The rupee declined 0.9% yesterday to 41.7375 per dollar, the lowest close since April 20, 2007. It is down 2.7% this week, the most in a five-day period since November 1997. The local currency may fall to 42 in the coming days, according to currency experts.
Asian stocks were mostly down for a third day, led by automakers and technology companies, after Toyota and Olympus forecast lower profits on rising raw material costs.
Toyota shares slumped after saying higher gasoline prices and a US economic slowdown will erode profit. Olympus tumbled the most in three months. BHP Billiton and Japan's Inpex Holdings gained after oil futures traded above $124 a barrel.
The MSCI Asia Pacific Index was down 0.5% at 149.90 as of 11:02 a.m. in Tokyo, after earlier advancing as much as 0.1%. The benchmark is poised for a five-day, 1.3% fall, its worst weekly performance in two months and snapping a two-week rally.
Japan's Nikkei 225 Stock Average was down 0.9% at 13,815.68. Australia's S&P/ASX 200 index climbed 1.2%, the biggest gain in the region, after National Australia Bank announced a 26% increase in its profit. Most other Asian markets declined.
US stocks rose marginally on Thursday, as investors welcomed some better-than-expected April retail sales. But, gains were capped by record-high oil prices and weakness in the financial sector.
Wal-Mart rose as the retail giant reported better than expected sales. News Corp. jumped on revenue that was lifted by advertisements for American Idol and the Super Bowl.
Freeport-McMoRan Copper & Gold and Chevron helped send raw-material and energy companies to the biggest gains in the S &P 500 Index. Alcoa climbed to a six-month high after naming a new CEO.
The S&P 500 added 5.11 points, or 0.4%, to 1,397.68. The Dow Jones Industrial Average gained 52.43 points, or 0.4%, to 12,866.78. The Nasdaq Composite Index rose 12.75 points, or 0.5%, to 2,451.24. About six stocks gained for every five that fell on the New York Stock Exchange.
Seven of 10 industry groups in the S&P 500 advanced as the market was also boosted by a government report that showed that initial jobless claims dropped last week more than economists had forecast.
With most of the quarterly earnings reports already having been released, the focus over the next few weeks will be on the economic news and the direction of commodity prices.
AIG shares dropped 2.1% after a S&P equity analyst slashed her forecasts for the insurance major ahead of it's first-quarter results. After the close, AIG reported a steeper-than-expected quarterly loss of $7.8bn and said it will look to raise $12.5bn in capital.
The national average price for a gallon of regular unleaded gas rose to a record $3.645 from $3.618 the previous day, according to AAA.
US light crude oil for June delivery rose 16 cents to settle at a record $123.69 a barrel on the New York Mercantile Exchange Thursday. Oil hit a record $124.49 in after-hours electronic trading.
COMEX gold for June delivery rose $11.10 to $882.30 an ounce. The dollar was little changed versus the euro and fell against the yen. Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.78% from 3.84% late on Wednesday.
The number of Americans filing new claims for unemployment fell by 18,000 last week to 365,000. Economists thought claims would post a narrower drop to 375,000 new claims.
Another economic report showed that wholesale inventories fell 0.1% in March, missing forecasts for growth of 0.5%. February's reading was revised down to growth of 0.9% from an initial reading of 1.1%.
Banking major Citigroup is holding an investor conference on Friday. It is likely to announce its strategy to deal with the ongoing crisis.
Most European stock benchmarks ended lower, as the European Central Bank and the Bank of England kept interest rates on hold, flagging inflation concerns. The pan-European Dow Jones Stoxx 600 index closed nearly unchanged at 329.28, with banks leading the decline.
ECB President Jean-Claude Trichet emphasized that inflation risks remain to the upside. After the comments from Trichet, the euro firmed and stocks moved further into the red.
The German DAX 30 ended 0.1% lower at 7,071.90, while the French CAC-40 slipped 0.4% to 5,055.58 and the Italian S&P/MIB index closed 1.3% lower at 34,082.00. The UK's FTSE 100, however, gained 0.2% to 6,270.80.
In the emerging markets the trend was mixed. The Bovespa in Brazil was up 1% at 69,722 while the IPC index in Mexico finished flat at 30,751. The RTS index in Russia surged by 3.75% to 2283 and the ISE National 30 index in Turkey slid 2.9% to 52,071.
Thursday, May 8, 2008
What's Your Exit Strategy?
What do the Iraq War and 90 percent of investor’s have in common? There’s simply no exit strategy in mind. So if an exit strategy is so important, why don’t most investors plan for one?
The first reason is because they simply don’t know that it’s part of investing successfully. Learning about stop-losses and risk management simply isn’t as sexy as learning about how to make triple-digit gains. So the subject is often avoided.
Second, it’s a matter of emotions. You see no one in the world – not me, not you, or anybody else – enjoys selling stocks at a loss. It’s a pain that nobody wants to inflict on themselves. So as long as they don’t sell at a loss, they never end up ‘inflicting’ the pain.
Then there’s the prospect of selling at a loss and then looking at the stock a few weeks later, only to find that you could’ve sold it for a gain. Now, the investor might feel embarrassed or foolish. Nobody wants that. So emotionally, it makes sense why a lot of investors don’t follow through with an exit strategy. But logically, an exit strategy is IMPERATIVE to making money in the stock market.
If people didn’t take their losses, then they’d never free up capital to pursue better opportunities. Heck, if people didn’t take their losses they’d eventually have no capital at all.
This is a situation you don’t want to put yourself into. So before you get into a trade, MAKE SURE to have an exit strategy planned. And you should do this for every single trade.
If that means selling your position once you lose ten or fifteen percent, then follow through with it! If your exit strategy is simply to sell if the fundamentals of your buy change, then make sure to follow through with it!
Either way, just remember to ALWAYS have an exit strategy before you invest. And more importantly, FOLLOW THROUGH WITH IT!
The first reason is because they simply don’t know that it’s part of investing successfully. Learning about stop-losses and risk management simply isn’t as sexy as learning about how to make triple-digit gains. So the subject is often avoided.
Second, it’s a matter of emotions. You see no one in the world – not me, not you, or anybody else – enjoys selling stocks at a loss. It’s a pain that nobody wants to inflict on themselves. So as long as they don’t sell at a loss, they never end up ‘inflicting’ the pain.
Then there’s the prospect of selling at a loss and then looking at the stock a few weeks later, only to find that you could’ve sold it for a gain. Now, the investor might feel embarrassed or foolish. Nobody wants that. So emotionally, it makes sense why a lot of investors don’t follow through with an exit strategy. But logically, an exit strategy is IMPERATIVE to making money in the stock market.
If people didn’t take their losses, then they’d never free up capital to pursue better opportunities. Heck, if people didn’t take their losses they’d eventually have no capital at all.
This is a situation you don’t want to put yourself into. So before you get into a trade, MAKE SURE to have an exit strategy planned. And you should do this for every single trade.
If that means selling your position once you lose ten or fifteen percent, then follow through with it! If your exit strategy is simply to sell if the fundamentals of your buy change, then make sure to follow through with it!
Either way, just remember to ALWAYS have an exit strategy before you invest. And more importantly, FOLLOW THROUGH WITH IT!
Inflate or Die!
The Federal Reserve has been on the US scenes since 1913. Not even Biblical plagues lasted 95 years. The ultimate effects aren’t much different. The Fed may or may not make it to a centennial commiseration. They are on the ropes.
It is beyond comical to watch all the various pundits applaud the Fed’s action as they piece together bailouts and desperately cheap money. Those who cheer them are nothing more than apologists for a crooked and predatory monetary system. Maybe it would be wise to look deeply and understand that this “ultimate private franchise” is the root cause of the problems they are getting credit for patching up??
The elitist international bankers who own the Fed are inflators by charter. They are licensed by Congress to supply what we use as money. Here’s their historic report card:
One of the Fed’s mandates is “stable prices”. A shrinking and shrinking dollar won’t get that job done. That looks like an F from this angle, even if you grade on the curve.
Pretty clever of them for sure. How exactly did they accomplish such an extraordinary feat?
Yep, they issued unfathomable debt. This pleases the politicians. Well connected cronies are thrilled. Individual recipients of the funny money are certainly pleased. Too bad our future generations have to pay these debts. Or do they?
Both of these above charts are from “Your US Dollar Ain’t Worth a plug Nickel”. I’m not quite old enough to know what a ‘plug nickel’ is but the illustration gives a strong hint.
The more debt (money) these central planners issue the more they cream off the top. Debt is to the non-Federal non-Reserve as chicken is to KFC. One franchise is just an order of magnitude, more elite than the other.
It is beyond comical to watch all the various pundits applaud the Fed’s action as they piece together bailouts and desperately cheap money. Those who cheer them are nothing more than apologists for a crooked and predatory monetary system. Maybe it would be wise to look deeply and understand that this “ultimate private franchise” is the root cause of the problems they are getting credit for patching up??
The elitist international bankers who own the Fed are inflators by charter. They are licensed by Congress to supply what we use as money. Here’s their historic report card:
One of the Fed’s mandates is “stable prices”. A shrinking and shrinking dollar won’t get that job done. That looks like an F from this angle, even if you grade on the curve.
Pretty clever of them for sure. How exactly did they accomplish such an extraordinary feat?
Yep, they issued unfathomable debt. This pleases the politicians. Well connected cronies are thrilled. Individual recipients of the funny money are certainly pleased. Too bad our future generations have to pay these debts. Or do they?
Both of these above charts are from “Your US Dollar Ain’t Worth a plug Nickel”. I’m not quite old enough to know what a ‘plug nickel’ is but the illustration gives a strong hint.
The more debt (money) these central planners issue the more they cream off the top. Debt is to the non-Federal non-Reserve as chicken is to KFC. One franchise is just an order of magnitude, more elite than the other.
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