Monday, August 3, 2009

BSE NSE Indian Share Market Report 27 July 2009

BSE NSE Indian Share Market Report 27 July 2009

Key benchmark ended almost unchanged after gyrating either side throughout the day. Global cues were positive with Asian and European markets trading higher. The BSE 30-share Sensex slipped 3.92 points or 0.03% to 15,375.04, off 88.05 points from the day's high, but up 146.58 points from the day's low. The BSE small and mid-cap indices outperformed the Sensex

The market opened on a subdued note as index heavyweight Reliance Industries (RIL) fell on weak Q1 June 2009 results it announced after trading hours on Friday, 24 July 2009. The market firmed up soon on buying in banking and IT pivotals. The Sensex hit its highest level in 1-1/2 months. However, the rally proved short-lived. The Sensex once again slipped into the red. The Sensex dropped to intraday low in afternoon trade before cutting losses. Rally in FMCG, metal and realty shares aided further recovery on the bourses in late trade

The market may remain volatile this week as investors rollover positions from July 2009 contacts to August 2009 contracts ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009.

With some initial public offers (IP)) lined up in the next few days starting with Adani Power's IPO on Tuesday, 28 July 2009, investor focus may shift to primary market from secondary market. Close on the heels of Adani Power, state-run NHPC is ready to hit the primary market in August to raise Rs 1,680 crore. Besides, Oil India and Pipavav Shipyard collectively plan to raise over Rs 2000 crore

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 698 companies rose 15.7% to Rs 42183 crore on 2% growth in sales to Rs 321044 crore in Q1 June 2009 over Q1 June 2008.

Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on on Thursday, 23 July 2009.

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

On the flip side, India's exports declined by 29.7% in June 2009 from a year earlier, R.S. Gujaral, Director General of Foreign Trade, said Friday, 24 July 2009. The declining trend in exports is expected to continue for some more time, he said.

European markets were trading firm today, 27 July 2009, extending a 2-week rally, on gains in bank stocks. Key benchmark indices in UK, Germany and France were up by between 0.23% and 1.2%.

Asian markets were trading firm today, 27 July 2009 on upbeat corporate earnings. Key benchmark indices in Hong Kong, China, Taiwan, Singapore, South Korea and Japan rose by between 0.79% and 1.86%.

Wall Street ended on a mixed note on Friday, 24 July 2009. The Nasdaq Composite index fell, snapping a 12-day winning streak, following Microsoft Corp's disappointing quarterly results. But gains in pharmaceutical and energy shares lifted the Dow and the S&P 500 to fresh 8-month closing highs. The Dow rose 23.95 points, or 0.26%, to 9,093.24. The Standard & Poor's 500 Index rose 2.97 points, or 0.30%, to 979.26. But the Nasdaq Composite Index declined 7.64 points, or 0.39%, to 1,965.96.

Trading in US index futures showed the Dow could rise 32 points at the opening bell on Monday, 27 July 2009.

The BSE 30-share Sensex was down 3.92 points or 0.03% to 15,375.04. The Sensex opened 28.07 points lower at 15,350.89. The Sensex rose 84.13 points at the day's high of 15,463.09, its level since 12 June 2009, in early trade. The Sensex lost 150.50 points at the day's low of 15,228.46 in afternoon trade.

The S&P CNX Nifty was up 3.75 points or 0.08% to 4,572.30. Nifty July 2009 futures were at 4576.30, at a premium of 4 points as compared to the spot closing.

The Sensex is up 5727.73 points or 59.31% in calendar year 2009 as on 27 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,214.64 points or 88.41% as on 27 July 2009.

Coming back to today's trade, turnover on NSE's futures & options (F&O) segment was Rs 50,488.19 crore, sharply lower than Rs 72,581.23 crore on Friday, 24 July 2009. The BSE clocked a turnover of Rs 6036 crore, lower than Rs 6,846.64 crore on Friday, 24 July 2009

The market breadth, indicating the overall health of the market, was strong. On BSE, 1672 shares advanced as compared with 985 that declined. 87 shares remained unchanged.

The BSE Mid-Cap index gained 1.63% to 5,469.50 and BSE Small-Cap index rose 1.53% to 6,142.74. Both these indices outperformed the Sensex

The BSE Realty index (up 3.11%), the BSE Consumer Durables index (up 1.66%), BSE Capital Goods index (up 0.69%), the BSE Power index (up 2.29%), the BSE IT index (up 0.61%), the BSE TECk index (up 0.88%), the BSE FMCG index (up 3.64%), the BSE Metal index (up 1.93%), BSE PSU index (up 0.33%), the BSE Healthcare index (up 0.27%), outperformed the Sensex.

The BSE Auto index (down 0.51%), the BSE Oil & Gas index (down 3.09%), the BSE Bankex (down 0.07%), underperformed the Sensex.

Among the 30-member Sensex pack, 16 declined while the rest gained

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) lost 3.81% to Rs 1937 after the company reported disappointing Q1 June 2009 results after trading hours on Friday, 24 July 2009. But the stock came off the day's low of Rs 1908. RIL has a 14.12% weightage in the Sensex.

RIL's net profit fell 11.5% to Rs 3636 crore on a 22.9% decline in sales to Rs 32055 crore in Q1 June 2009 over Q1 June 2008. RIL saw its net profit dip for the third straight quarter, as margins from its refining business halved and the global recession reduced fuel demand. RIL's gross refining margins (GRMs) - the difference between cost of crude oil and the price of refined petroleum products - came down 52.22% to $7.5 per barrel in Q1 June 2009 compared with $15.7 per barrel in Q1 June 2008.

India's largest state-run oil explorer by market capitalisation ONGC slumped 2.99% on reports the company is delaying the development of as many as 66 small discoveries because production from the fields may not be enough to recover costs.

GAIL India slumped 3.61% after net profit fell 26.9% to Rs 655.84 crore on 5.1% rise in net sales to Rs 6021.42 crore in Q1 June 2009 over Q1 June 2008. The company declared its results on Saturday, 25 July 2009.

Shares of state run oil marketing companies slipped on rise in crude oil prices. HPCL (down 1.42%), and Indian Oil Corporation (down 0.74%), edged lower. However, BPCL rose 0.14%. Higher oil prices will results in increase underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Castrol India galloped 9.38% after net profit rose 55% to Rs 128.40 crore on a 2.56% rise in total income to Rs 646.80 crore in Q2 June 2009 over Q2 June 2008. The result was announced during trading hours today, 27 July 2009.

India's largest truck market by sales Tata Motors gained 3.76% to Rs 387.55, rebounding sharply from day's low of Rs 356.80 after net profit rose 57.54% to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008. Analysts had expected a steep fall in net profit due to lower sales volume. The result was announced at the fag end of the trading sessions today, 27 July 2009.

Tata Motors attributed the strong results to continued focus on cost efficiencies, decline in raw material prices and improvement in sales realization

But other auto stocks dropped on profit taking after a recent sharp surge. India's top small car maker by sales Maruti Suzuki India declined 0.79%. The stock had stuck a record high of Rs 1397.50 in intra-day trade on Friday, 24 July 2009 buoyed by better than expected results announced during market hours on Thursday, 23 July 2009.

India's largest bike manufacturer by sales Hero Honda Motors lost 2.81% ahead of its Q1 June 2009 results on 29 July 2009. India's biggest tractor maker by sales Mahindra & Mahindra dropped 1.92% ahead of its Q1 June 2009 results on 30 July 2009

India's largest private sector bank by net profit ICICI Bank slipped 1.75% to Rs 753.40, off day's high of Rs 784.80 on profit taking. The bank's net profit rose 20.63% to Rs 878.22 crore on a 2.2% decline in operating income to Rs 9223.32 crore in Q1 June 2009 over Q1 June 2008. The bank, which reported its earnings on Saturday, 25 July 2009, has a 7.61% weightage in Sensex.

Cost-cutting measures and treasury profits enabled the country's largest private lender, ICICI Bank, beat market estimates in Q1 June 2009. ICICI Bank recorded a treasury income of Rs 714 crore in Q1 June 2009 as against a loss of Rs 594 crore in Q1 June 2008.

India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.44% after the state-run bank reduced interest rates on deposits by 25-50 basis points (a basis point equals one-hundredth of a percentage point) with effect from today, 27 July 2009.

Bank of Baroda lost 3.53% despite reporting a 84.80% rise in net profit to Rs 685.38 crore on 24.4% rise in total income to Rs 3806.37 crore Rs 4735.15 crore in Q1 June 2009 over Q1 June 2008.

Andhra Bank rose 1.29% after net profit jumped 230.10% to Rs 256.22 crore on 37.9% rise in total income rose to Rs 1,745.92 crore in Q1 June 2009 over Q1 June 2008. The bank declared results on Saturday, 25 July 2009.

Bank of India (BOI) lost 4.21% after the bank's net non-performing assets jumped 96.41% to Rs 1234.43 crore in Q1 June 2009 over Q1 June 2008. BoI's net profit rose 3.98% to Rs 584.32 crore on 22.09% rise in total income to Rs 5,023.61 crore in Q1 June 2009 over Q1 June 2008. The state-run declared its results during trading hours today, 27 July 2009.

Analysts expect the Reserve Bank of India (RBI) to maintain a status-quo on key policy rates in its quarterly policy meet on Tuesday, 28 July 2009 following surplus liquidity in the banking system and low demand for credit. The central bank is also likely to lay out a more clear roadmap to conduct the government borrowing programme in a smooth manner and may hike the GDP and inflation forecast for the year ending March 2010 (FY 2010).

Earlier, the Reserve Bank of India (RBI) had cut the repo rate, or its key short-term lending rate, by 425 basis points to 4.75% in six steps since October 2008 as it tried to guard a slowing economy against the global financial crisis. The central bank also slashed the reverse-repo rate by 275 basis points since early December 2008 and brought down the cash reserve requirement by 400 basis points to 5% since early October 2008 to keep credit flowing.

India's largest FMCG company by sales Hindustan Unilever surged 6.70% to Rs 301 after striking a 52-week high of Rs 305.40 on BSE in intra-day trade today, 27 July 2009. The stock advanced ahead of its Q1 June 2009 results on Tuesday, 28 July 2009. It was the top gainer from the Sensex pack.

Other FMCG stocks also logged gains on fresh buying after revival in monsoon. Nestle India (up 3.98%), Marico (up 2.62%), Britannia Industries (up 1.72%), Tata Tea (up 3.35%) and Dabur India (up 2.46%), gained. FMCG companies derive substantial revenue from rural sales.

Godrej Consumer Products surged 9.57% to Rs 227.30 after net profit jumped 75.9% to Rs 60.29 crore in Q1 June 2009 over Q1 June 2008. The stock hit a record high of Rs 235 today, 27 July 2009.

Asian Paints jumped 2.96% after net profit rose 67.8% to Rs 164.45 crore on a 17% rise in sales to Rs 1164.82 crore in Q1 June 2009 over Q1 June 2008.

India's second largest private sector power generation company by sales Tata Power Company surged 5.82%. The company during trading hours on 22 July 2009, said strong response for its global depository receipt (GDR) issue helped it raise $335 million as compared with an earlier announced plan to raise $250 million. The company will use the funds for its ongoing capital expenditure plans. Tata Power issued 14.8-million GDRs priced at $22.58 a piece, with each GDR representing one equity share, Tata Power said.

India's largest power generation firm by sales NTPC gained 1.33%. The company reported 27.05% rise in net profit to Rs 2193.62 crore on 24.59% rise in total income to Rs 12778.96 crore in Q1 June 2009 over Q1 June 2008. The results were declared by the company after market hours today, 27 July 2009

Realty stocks gained on the government's thrust on the housing sector in the Union Budget 2009-10. DLF (up 4.64%), Unitech (up 0.80%), Housing Development & Infrastructure (up 4.50%), Parsvnath Developers (up 5.72%), Omaxe (up 13.66%), and Indiabulls Real Estate (up 2.15%), advanced.

Telecom pivotals held firm of the first meet of group of ministers (GoM) to decide on the base price for 3G spectrum on 31 July 2009.

India's second largest cellular services provider by sales Reliance Communications rose 2.32%. India's largest listed cellular services provider by sales Bharti Airtel advanced 1.93%.

The GoM is set up to look into matters relating to pricing of spectrum and number of operators to be allowed in each telecom circle. The finance ministry had proposed a base price of Rs 4,040 crore for 3G spectrum, whereas the Department of Telecom (DoT) suggested a price of Rs 3,540 crore. While presenting the Union Budget, the finance minister, Mr Pranab Mukherjee, said Rs 35,000 crore was expected to be raised from the auction.

Metal stocks extended recent gains on firm base metal prices. LMEX, a gauge of six metals traded on the London Metal Exchange rose 0.43% on Friday, 24 July 2009. National Aluminium Company (up 0.62%), JSW Steel (up 6.21%), Tata Steel (up 3.93%), rose. India's largest private sector copper marker by sales Sterlite Industries India ended unchanged at Rs 652.80

Copper and aluminum jumped to the highest in nine months in Shanghai after China reiterated its commitment to sustain economic growth in the world's largest consumer of industrial metals. Zinc climbed to a 10-month high.

Infrastructure stocks rose on the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Bharat Heavy Electricals (up 2.48%), Lanco Infratech (up 5.46%), GMR Infrastructure (up 3.99%), IVRCL Infrastructure (up 0.74%), GVK Power Infrastructure (up 6.40%), rose. However India's largest engineering & construction company by sales Larsen & Toubro was down 0.33%

India's largest dam builder by sales Jaiprakash Associates slipped 0.58% to Rs 240.10 on profit booking. The stock surged to day's high of Rs 254 after reporting 292.28% spurt in net profit to Rs 491.18 crore on a 77.19% spurt in total income to Rs 2116.86 crore in Q1 June 2009 over Q1 June 2008. The results were announced on Saturday, 25 July 2009.

IT stocks ended mixed on recent reports that the third largest global energy company British Petroleum is likely to award outsourcing contracts worth up to $1 billion in August 2009. India's second largest IT firm by sales Infosys rose 0.92%. However, India's largest IT exporter by sales TCS fell 0.72%. On 17 July 2009, TCS announced Q1 results that beat market expectations. India's third largest IT exporter by sales Wipro slipped 0.10%. On 22 July 2009, Wipro announced better-than-expected Q1 results.

Reliance Industries was the top traded counter on BSE with turnover of Rs 330.04 crore followed by DLF (Rs 280.43 crore), HDIL (Rs 222.42 crore), ICICI Bank (Rs 188.96 crore) and Jaiprakash Associates (Rs 188.20 crore).

Ispat Industries was the top traded counter on BSE with volume of 1.90 crore shares followed by Suzlon Energy (1.76 crore shares), Mahindra Satyam (1.70 crore shares), IFCI (1.59 crore shares) and Cals (1.50 crore shares).

Tyre shares gained on fresh buying following robust earnings reported by Apollo Tyres and JK Tyre. MRF (up 16.85%), Goodyear India (up 9.10%), and Apollo Tyres (up 4.56%), gained.

MRF today reported a 294% jump in net profit to Rs 125.70 crore on 12.4% rise in net sales to Rs 1433.55 crore in Q3 June 2009 over Q3 June 2008. JK Tyre reported a two fold spurt in net profit, while Apollo Tyres posted a 95% jump in net profit in Q1 June 2009 over Q1 June 2008.

Bharat Electronics surged 4.58% after net profit galloped 2785.3% to Rs 72.71 crore on 134.7% spurt in net sales to Rs 900.98 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after market hours on Friday, 24 July 2009.

Gujarat NRE Coke spurted 9.11%. The company had on 20 July 2009, forfeited 4.55 crore convertible warrants and application money totaling Rs 39 crore held by promoter group consequent to expiry period of these warrants. The forfeiture of convertible warrants has eased concerns of equity dilution.

Godrej Industries soared 10% ahead of its Q1 June 2009 results on Wednesday, 29 July 2009.

Fortis Healthcare rose 8.82%. The company, during market hours on Friday, 24 July 2009, had reported 8.3% fall in net profit to Rs 1.56 crore on a 26.5% increase in sales to Rs 48.59 crore in Q1 June 2009 over Q1 June 2008.