Monday, August 3, 2009

BSE / NSE Market Report 23 July 2009

Market Report 23 July 2009

Key benchmark indices rallied, snapping losses in the preceding two trading sessions, on stellar Q1 June 2009 earnings from some Sensex stocks and positive economic data. Maruti Suzuki, ITC and ACC unveiled forecast beating earnings today, 23 July 2009. The BSE 30-share Sensex jumped 387.92 points or 2.61% to 15,231.04. The barometer index today regained the psychological 15,000 mark and the 50 unit S&P CNX Nifty surged past 4,500 level.

Shares of Sun Pharma gained 1.62% in highly volatile trade after plunging as much as 7.70% in early trade. Maruti Suzuki, ITC and ACC logged smart gains on strong Q1 June 2009. However Bharti Airtel faltered as average revenue per user dipped.

Today's market rally was accompanied by higher volume. BSE's cash market turnover amounted to Rs 8030 crore as compared with Rs 6672 crore on Wednesday, 22 July 2009. Apart from upbeat Q1 results, positive infrastructure data and strong Asian stocks also bolstered bulls. All the sectoral indices on BSE logged gains.

After a firm opening triggered by higher Asian stocks, the market soon came off the higher level. A bout of volatility was witnessed later. The Sensex climbed to a fresh intraday high in mid-afternoon trade.

The market recovered today after last two days' slide. The BSE Sensex had lost 347.89 points or 2.29% in the previous two trading sessions.

In a move that my boost sentiment, foreign institutional investors (FIIs) and the non-resident Indians (NRIs) have been allowed to invest in Indian Depository Receipts (IDR), according to the operational guidelines issued by the Reserve Bank of India on Wednesday, 22 July 2009. FIIs, including the Securities & Exchange Board of India (Sebi) approved sub-accounts of the FIIs registered with Sebi and NRIs may invest, purchase, hold and transfer IDRs of eligible companies resident outside India and issued in the Indian capital market, subject to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000.

The six infrastructure industries -- crude oil, refining, coal, electricity, cement and steel -- together grew at an annual rate of 6.5% in June 2009, faster than the previous month's rise of 2.8%, data showed on Thursday, 23 July 2009. The data indicated improving economic activity. The infrastructure sector accounts for 26.7% of India's industrial output.

Inflation measured by the wholesale price index (WPI) declined 1.17% in the 12 months to 11 July 2009, as compared with previous week's annual decline of 1.21%, government data showed today, 23 July 2009.

Meanwhile, annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. The cumulative seasonal rainfall for the country as a whole during this year's monsoon has so far been 24% below the Long Period Average (LPA), the India Meteorological Department said on its website in a press release dated 17 July 2009. Out of 36 meteorological sub-divisions, rainfall was excess/normal in 13 and deficient/scanty in 23 meteorological sub-divisions

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

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 354 companies rose 35.10% Rs 22352 crore on 9.2% growth in sales to Rs 159099 crore in Q1 June 2009 over Q1 June 2008.

European markets were trading subdued today, 23 July 2009. Key benchmark indices in UK, France and DAX were down by between 0.09% and 0.45%

Asian stocks climbed to a 10-month high today, 23 July 2009 led by energy shares. Key benchmark indices in Hong Kong, Singapore, South Korea and Japan were up by between 0.16% and 2.96%. However Taiwan's Taiwan Weighted index slipped 0.06%

China's Shanghai Composite rose 0.97% after the Chinese Foreign Minister Yang Jiechi today, 23 July 2009 expressed confidence that his country's economy could reach an 8% growth target this year buoyed by stimulus package.

Yang Jiechi added that giving developing nations more weight in global financial bodies would be a key element of the G20 summit in Pittsburgh in September 2009.

US markets ended mixed on Wednesday, 22 July 2009 as both the Dow Jones and the S&P 500 ended the session in the red after poor quarterly results by financial giants Morgan Stanley and Wells Fargo. However, the tech heavy Nasdaq Composite index successfully logged its eleventh straight advance on robust earnings from Apple Inc and Starbucks Corp.

The Dow slipped 34.68 points, or 0.39%, to 8,881.26 and the S&P 500 slipped 0.51 points, or 0.05%, to 954.07. However the Nasdaq Composite index rose 10.18 points, or 0.53%, to 1,926.38.

US President, Barack Obama said on Wednesday, 22 July 2009 said that the country has seen a stabilisation in the financial system.

Trading in the US index futures indicated the Dow could rise 25 points at the opening bell today, 23 July 2009.

The BSE 30-share Sensex jumped 387.92 points or 2.61% to 15,231.04, its highest closing since 12 June 2009. The Sensex opened 165.66 points higher at 15,008.78. At the day's high of 15,264.84, the Sensex advanced 421.72 points in mid-afternoon trade. The Sensex rose 154.63 points at the day's low of 14,997.75 in early trade.

The S&P CNX Nifty was up 124.85 points or 2.84% to 4,523.75, its highest closing since 12 June 2009. Nifty July 2009 futures were at 4539.95, at a premium of 16.20 points as compared to the spot closing.

The Sensex is up 5583.73 points or 57.87% in calendar year 2009 as on 22 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7070.64 points or 86.64% as on 23 July 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1797 shares advanced as compared with 856 that declined. 87 shares remained unchanged.

The BSE Mid-cap index gained 2.29% to 5,293.37 and BSE Small-cap index rose 2.16% to 5,942.85. However, both these indices underperformed the Sensex

All the sectoral indices on BSE logged gains. The BSE Realty index (up 5.08%), the BSE Consumer Durables index (up 4.47%), the BSE Auto index (up 3.87%), the BSE FMCG index (up 3.95%), the BSE Healthcare index (up 2.85%), the BSE Metal index (up 4.32%), outperformed the Sensex.

The BSE PSU index (up 1.37%), the BSE Oil & Gas index (up 2.39%), the BSE Bankex (up 1.73%), BSE Capital Goods index (up 2.08%), the BSE Power index (up 2.59%), the BSE IT index (up 1.99%), the BSE TECk index (up 1.55%), underperformed the Sensex.

Among the 30-member Sensex pack, 28 advanced while only 2 of them declined.

Realty stocks rose on the government's thrust on the housing sector in the Union Budget 2009-10 tabled in the Parliament on 6 July 2009. India's largest real estate developer by sales DLF jumped 7.60% to Rs 372.50 and was the top gainer from the Sensex pack.

Unitech (up 5.72%), Housing Development & Infrastructure (up 5.73%), Indiabulls Real Estate (up 3.49%), and Ackruti City (up 1.80%), advanced.

Infrastructure stocks rose on the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Larsen & Toubro (up 2.95%), Reliance Infrastructure (up 7.21%), Lanco Infratech (up 3.54%), GMR Infrastructure (up 2.66%), and GVK Power Infrastructure (up 1.42%), rose

India's biggest power equipment maker by sales Bharat Heavy Electricals gained 0.66% after net profit rose 22.41% to Rs 470.59 crore on 27.64% rise in total income to Rs 5,898.51 crore in Q1 June 2009 over Q1 June 2008. Bhel outstanding order book stood at Rs 1,24,000 crore. The company announced the result during market hours on Wednesday, 22 July 2009.

Power stocks rose after strong response to India's second largest private sector power generation company by sales Tata Power Company's global depository receipt (GDR) on Wednesday. Tata Power Company rose 2.64% to Rs 1150. Among other power stocks, Reliance Power (up 5.66%), NTPC (up 1.97%), CESC (up 2.67%), gained.

Tata Power Company during trading hours on Wednesday 22 July 2009, said strong response for its 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.

KEC International soared 9.56% after the company bagged four orders totaling Rs 471 crore. The company announced the fresh orders during the trading hours today, 23 July 2009.

Metal stocks gained after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 1.72% on Wednesday, 22 July 2009. Hindalco Industries (up 6.20%), Hindustan Zinc (up 5.67%), Nalco (up 2.66%), JSW Steel (up 4.63%), Tata Steel (up 4.10%), edged higher.

India's largest private sector copper marker by sales Sterlite Industries surged 5.27%. The company said on 18 July 2009 it has raised $1.5 billion though an American Depositary Shares (ADS) issue. Parent Vedanta Resources participated in the offering with an allocation of $500 million either directly or through a subsidiary. On allotment, Vedanta's shareholding in Sterlite will drop to 57.5% from 61.7%, assuming no exercise of over-allotment option

Maharashtra Seamless rose 1.87% after net profit rose 8.2% to Rs 65.22 crore on 20.1% rise in net sales to Rs 422.51 crore in Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Wednesday, 22 July 2009.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) advanced 3.19% to Rs 2040.40, a day ahead of its Q1 June 2009 results on Friday, 24 July 2009. The stock shrugged off reports that the petroleum ministry is considering issuing a notice to Reliance Industries (RIL) for allegedly violating the production sharing contract (PSC) governing supply and production of gas from the Krishna Godawari (KG) basin.

The government may even cancel the contract as it claims that the secret family agreement to divide the gas was signed without informing the government. The family agreement in question refers to a memorandum of understanding (MoU) drawn up in 2005, which forms the basis for the division of RIL and parts of which refer to gas supply by RIL to Reliance Natural Resources (RNRL).

Earlier, the Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.

RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.

In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row. The government, however, has said that the country's interest must be taken into consideration first and that cannot be held to ransom by a dispute between two industrialists or a previous, private pact between them.

India's largest oil exploration firm by revenue ONGC was down 0.44% ahead of its Q1 June 2009 results today, 23 July 2009. The stock gyrated in a band of Rs 1080 and Rs 1118 in the day.

Mangalore Refinery and Petrochemicals declined 2.66% after net profit slumped 50.31% to Rs 420.07 crore on 41.53% fall in total income to Rs 6,298.97 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours today, 23 July 2009.

India's top small car maker by sales Maruti Suzuki India shot up 6.67% to Rs 1298.30 after the net profit rose 25.26% to Rs 583.54 crore on a 31.01% increase in total income to Rs 6709.53 crore in Q1 June 2009 over Q1 June 2008. The stock hit a record high of Rs 1305.50 in intra-day today, 23 July 2009. The result was announced during trading hours today, 23 July 2009.

Strong Maruti results boosted sentiment for other auto shares. Mahindra & Mahindra (up 4.82%), Tata Motors (up 4.62%), bajaj Auto (up 0.94%), and Ashok Leyland (up 1.85%), advanced.

India's largest cement manufacturer by sales ACC vaulted 5.84% after net profit soared 79% to Rs 485.61 crore on a 15.32% increase in total income to Rs 2138.24 crore in Q2 June 2009 over Q2 June 2008. The results were declared during trading hours today, 23 July 2009

India's top cigarette maker by sales ITC gained 5.88% after net profit rose 17.38% to Rs 878.80 crore on 5.14% rise in total income rose to Rs 4220.49 crore in Q1 June 2009 over Q1 June 2008. The results were unveiled during trading hours today, 23 July 2009

India's largest listed cellular services provider by sales Bharti Airtel reversed early gains and was down 1.20% to Rs 813 after the company average monthly revenue per user dropped to Rs 278 in Q1 June 2009 from Rs 305 in Q1 June 2008. Average monthly minutes of use by user -- another key metric used by analysts to gauge performance -- fell 2% to 478 minutes in Q1 June 2009 over Q4 March 2009. The decline in these parameters hurt investor sentiment. It was the top loser from the Sensex pack

Bharti's net profit net profit jumped 31.3% to Rs 2687.51 crore on a 13.88% rise in total income to Rs 9056.29 crore in Q1 June 2009 over Q1 June 2008. The results were declared before trading hours today, 23 July 2009.

India's second largest listed cellular services provider by sales Reliance Communications (RCom) gained 5.79% after it bagged a Rs 10,000-crore telecom infrastructure outsourcing deal from new entrant Etisalat DB Telecom (formerly Swan Telecom). The deal, which includes both towers and transmission, is spread over a 10-year period. The company made this announcement during market hours on Wednesday, 22 July 2009.

India's largest pharma company by market capitalisation Sun Pharma rose 1.62% to Rs 1275, rebounding sharply from day's low of Rs 1158. The early plunge was triggered on reports investors have initiated a lawsuit seeking class action status against its US subsidiary Caraco Pharmaceutical in the United States District Court.

On June 25, the US FDA had announced seizure of drug products from the company's three facilities in Michigan at Detroit, Farmington Hills and Wixom. Upto 33 different drugs were seized and the US FDA banned Caraco from manufacturing and selling these drugs in the US until there is assurance that the firm complies with manufacturing standards. The action followed Caraco's continued failure to meet the US FDA's current good manufacturing practices (cGMP) requirements.

Biocon spurted 3.13% after net profit jumped 283.55% to Rs 57.55 crore on 96% surge in net sales to Rs 71.40 crore in Q1 June 2009 over Q1 June 2008.

Banking shares eased from the day's high after inflation data. India's largest private sector bank by net profit ICICI Bank was up 1.33% to Rs 771, off the day's high of Rs 787.75. India's second largest private sector bank in terms of operating income HDFC Bank rose 0.33% to Rs 1451, off day's high of Rs 1470

India's biggest bank in terms of branch network State Bank of India (SBI) rose 1.73% to Rs 1722.90, off the day's high of Rs 1241. Finance secretary Ashok Chawla said on 22 July 2009 that the Centre will seek Cabinet approval to dilute government stake in the state-run bank.

Indian Bank rose 7.51% after net profit surged 52.40% to Rs 331.66 crore 27.82% rise in total income to Rs 2,230.39 crore in Q1 June 2009 over Q1 June 2008. The bank declared its results during the trading hours today, 23 July 2009.

Union Bank of India tumbled 4.60% after the Reserve Bank India said foreign institutional investors (FIIs) will have to get its approval to purchase equity shares as FII investment in the public sector bank has reached 18% against its permissible limit of 20%.

Union Bank of India's net profit rose 93.70% to Rs 442.19 crore on 34.45% rise in total income to Rs 3704 crore in Q1 June 2009 over Q1 June 2008. The state-run bank announced the results during trading hours today, 23 July 2009.

Chawla on 17 July 2009, said the government will introduce seven bills in parliament, including proposals for pension and banking reforms and efforts to raise the foreign investment limit in insurance companies.

India's largest dedicated housing finance company by sales, HDFC rose 2.23%. The finance firm reported 20.68% rise in net profit to Rs 564.92 crore on 22.86% rise total income to Rs 2,849.07 crore in Q1 June 2009 over Q1 June 2008. The lender announced its result during late trade on Wednesday, 22 July 2009.

IT stocks rose on fresh buying following upbeat Q1 June 2009 results from frontline IT companies in the past few days.

India's third largest IT exporter by sales Wipro advanced 0.99% after consolidated net profit as per Indian accounting rules rose 0.54% to Rs 1015.50 crore on 2.5% fall in sales to Rs 6289.10 crore in Q1 June 2009 over Q4 March 2009. The company announced the results before trading hours on Wednesday, 22 July 2009.

India's largest IT exporter by sales TCS gained 2.19% after net profit rose 15.27% to Rs 1276.44 crore on 0.12% fall in sales to Rs 5609.60 crore in Q1 June 2009 over Q4 March 2009. The company announced the result after trading hours on 17 July 2009.

India's largest IT firm by sales Infosys shot up 2.75%. The government has launched a Government-to-Business (G2B) services e-biz project with Infosys as the technology partner. The project is among the 27 Central, State and Integrated Mission Mode Projects (MMPs) under the National E-Governance Plan (NEGP).

Tech Mahindra rose 1.95% even as net profit dropped 43% to Rs 131.6 crore on 6% rise in total revenues to Rs 1,113 crore in Q1 June 2009 over Q4 March 2009. The company attributed fall in net profit to surge in interest costs on debt it took to buy Mahindra Satyam, the erstwhile Satyam Computer Services. The results were declared after market hours on Wednesday, 22 July 2009. Shares of Mahindra Satyam surged 15.09% to Rs 104.90

Mahindra Satyam was the top traded counter on BSE with turnover of Rs 556.941 crore followed by Reliance Industries (Rs 438.71 crore), ICICI Bank (Rs 281.22 crore), Aban Offshore (Rs 189.99 crore), and Infosys Technologies (Rs 189.80 crore).

Mahindra Satyam, too, led the volume charts on BSE clocking volume of 5.53 crore shares followed by IFCI (1.89 crore shares), Ispat Industries (1.80 crore shares), Suzlon Energy (1.53 crore shares) and Unitech (1.47 crore shares) were the other volume toppers in that order.

Century Enka was locked at 10% upper limit after net profit galloped 489.40% to Rs 28.35 crore in Q1 June 2009 over Q1 June 2008. The company announced the fresh orders during the trading hours today, 23 July 2009.

Zee News jumped 4.93% after net profit rose 24.85% to Rs 11.91 crore on a 21.35% increase in total income to Rs 132.98 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours today, 23 July 2009

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