Monday, August 3, 2009

BSE NSE Market Report 24 July 2009

BSE NSE Market Report 24 July 2009

Key benchmark indices surged, extending Thursday (23 July 2009)'s 2.61% rally as encouraging Q1 June 2009 results, signs of pick up in the economy, revival of monsoon and firm global markets, lifted sentiment. The BSE 30-share Sensex gained 147.92 points or 0.97% to 15,378.96, off 39.65 points from the day's high, and 210.44 up points from the day's low. The barometer index today struck its highest level in more than a month. But volatility was high.

The BSE Sensex advanced 634.04 points or 4.3% in the week ended Friday, 24 July 2009 extending previous week's 9.19% surge.

Coming back to today's trade, auto, realty and metal shares logged smart gains. However banking shares faltered ahead of quarterly monetary policy review meet on Tuesday, 27 July 2009. Among stock specific action, auto pivotals Tata Motors and Maruti Suzuki surged. ONGC and Infosys also logged decent gains.

Volatility was high. The market slipped into the red soon after an early surge triggered by rally in US stocks on Thursday, 23 July 2009. The market regained positive zone shortly. The market lost ground once again with the Sensex hitting intraday low in early afternoon trade. It once again regained positive zone later. The market surged in mid-afternoon trade as European stocks rose.

A string of robust corporate earnings along with rallying global markets had helped the BSE Sensex regain the 15,000 mark on Thursday with a 2.61% surge.

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 473 companies rose 17.40% to Rs 30972 crore on 5.4% growth in sales to Rs 206373 crore in Q1 June 2009 over Q1 June 2008.

European markets advanced today, 24 July 2009, reversed initial losses on improved economic data in the euro zone. Key benchmark indices in UK, Germany and France were up by between 0.08% and 0.63%.

The Markit euro-zone composite purchasing managers index rose to a 10-month high of 46.8 in July 2009, up form 44.6 in June 2009, according to data released Friday, 24 July 2009. Economists had expected a more modest rise to 45.3. A reading of less than 50 means a majority of managers saw a contraction in activity, while a reading of more than 50 signals expansion.

The Ifo Institute's German business climate index rose to 87.3 in July 2009, up from 85.9 in June 2009. That was better than the 86.5 reading that economists had forecast.

But data in UK was weak. Britain's economy shrank in the second quarter to register its biggest annual decline since comparable records began in 1955, official data showed on Friday, 24 July 2009. The Office for National Statistics said GDP fell by 0.8% on the quarter, taking the annual decline to 5.6%. GDP dropped 2.4% in the first quarter.

Asian markets extended gains for the ninth straight session today, 24 July 2009 on overnight gain in US stocks and after South Korea's economy grew at the fastest pace in almost six years. Key benchmark indices in Hong Kong, China, Singapore, South Korea and Japan rose by between 0.41% and 1.95%. However Taiwan's Taiwan Weighted index slipped 0.11%.

South Korea's economy grew at the fastest pace in more than five years in the second quarter from the previous quarter, adding to hopes that the recovery in Asia's fourth-largest economy is sustainable. Gross domestic product in the three months ended June 2009 rose a seasonally adjusted 2.3%, accelerating from a revised 0.1% gain in gross domestic product in the first quarter, a central bank estimate showed on Friday, 24 July 2009.

Meanwhile, the Asian Development Bank (ADB) said on Thursday, 23 July 2009 that emerging East Asia has entered the transition from recession to a possible V-shaped recovery, but policymakers must maintain monetary expansionary policies as risks remain. Growth could dip sharply in 2009 before regaining last year's pace in 2010, ADB said.

Trading in US index futures showed the Dow could rise 21 points at the opening bell on Friday, 24 July 2009. Dow futures were in red earlier in the day.

US markets surged on Thursday, 23 July 2009 sending the Dow Industrials above the key 9,000 mark for the first time in seven months as strong corporate profits and rebounding home sales spurred optimism about the economy.

The Dow gained 188.03 points, or 2.12%, to 9,069.29. The S&P 500 index rose 22.22 points, or 2.33%, to 976.29. The Nasdaq Composite Index rose 47.22 points, or 2.45%, to 1,973.60.

In economic data, sales of US existing homes rose for the third consecutive month in June 2009 by 3.6% to an annual rate of 4.89 million, up from 4.77 million in May 2009, the National Association of Realtors (NAR) said on Thursday, 23 July 2009.

New claims for US unemployment benefits jumped last week, as employers cut payrolls to cope with the severe recession, government data showed Thursday, 23 July 2009. The Labor Department said first-time claims for unemployment insurance benefits rose to a seasonally adjusted 554,000 in the week ended 18 July 2009, after a revised 524,000 in the preceding week.

Closer home, 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.

In a move that my boost sentiment, foreign institutional investors (FIIs) and the non-resident Indians (NRIs) were 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.

Meanwhile, the latest economic data indicated improving economic activity. 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 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 on Thursday, 23 July 2009.

Meanwhile, bankers expect the Reserve Bank of India (RBI) to maintain a status-quo in its key 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.

The BSE 30-share Sensex was up 147.92 points or 0.97% to 15,378.96, its highest close since 11 June 2009. The Sensex opened 40.97 points higher at 15,272.01. The Sensex rose 187.57 points at the day's high of 15,418.61 in early trade, its highest level since 12 June 2009. The Sensex lost 62.52 points at the day's low of 15,168.52 in early afternoon trade.

The S&P CNX Nifty was up 44.80 points or 0.99% to 4,568.55, its highest closing since 12 June 2009. Nifty July 2009 futures were at 4578, at a premium of 9.45 points as compared to the spot closing.

The Sensex is up 5,731.65 points or 59.41% in calendar year 2009 as on 24 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,218.56 points or 88.45% as on 24 July 2009.

Coming back to today's trade, turnover in NSE's futures & options (F&O) segment was Rs 72,581.23 crore, lower than Rs 74,885.56 crore on Thursday, 23 July 2009. The BSE clocked a turnover of Rs 6815 crore, much lower than Rs 8078 crore on Thursday, 23 July 2009

The market breadth, indicating the overall health of the market, was strong. On BSE, 1773 shares advanced as compared with 923 that declined. 89 shares remained unchanged.

The BSE Mid-cap index gained 1.67% to 5,381.81 and BSE Small-cap index rose 1.81% to 6,050.20. Both these indices outperformed the Sensex

The BSE Realty index (up 4.26%), the BSE Consumer Durables index (up 2.37%), the BSE Auto index (up 5.14%), BSE Capital Goods index (up 1.49%), the BSE Power index (up 1.66%), the BSE IT index (up 1.93%), the BSE TECk index (up 1.87%), the BSE FMCG index (up 1.28%), the BSE Metal index (up 2.39%), outperformed the Sensex.

The BSE PSU index (up 0.42%), the BSE Healthcare index (up 0.53%), the BSE Oil & Gas index (up 0.06%), the BSE Bankex (down 0.88%), underperformed the Sensex.

Among the 30-member Sensex pack, 23 gained while the rest slipped

Auto stocks were the star performers of the day, with the BSE Auto index gaining over 5%, the most among sectoral indices on BSE, helped by a better-than-expected Q1 results from auto major Maruti Suzuki India during trading hours on Thursday. Shares of India's top small car maker by sales shot up 6.38% to Rs 1378 after striking a record high of Rs 1397.50 in intra-day today, 24 July 2009. The stock extended yesterday's 6.71% surge. Net profit jumped 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.

Strong Maruti results boosted sentiment for other auto shares. India's top truck marker by sales Tata Motors soared 8.65% to Rs 369.80 after its American depository receipt (ADR) advanced 3.49% on Thursday, 23 July 2009. Meanwhile Tata Motors is reportedly conducting a feasibility study to sell its cars in Indonesia. It was the top gainer from the Sensex pack. The company will unveil its Q1 June 2009 results on 27 July 2009.

India's top tractor maker by sales Mahindra & Mahindra gained 3.64% ahead of its Q1 results on 30 July 2009. India's second largest bike manufacturer by sales Bajaj Auto rose 1.28% and India's largest bike manufacturer by sales Hero Honda Motors rose 3.86%

Ashok Leyland climbed 8.48% ahead of its Q1 June 2009 results to be announced on Monday, 27 July 2009.

Rally in auto counters spilled over to auto components manufacturers as their fortunes are closely linked to the performance of auto companies. Rico India (up 19.89%), Munjal Auto (up 13.36%), Munjal Showa (up 8.41%), Automotive Axles (up 10.71%), Bosch (up 2.97%), Amtek Auto (up 13.78%), and Subros (up 6.13%) edged higher.

Bharat Forge jumped 13.59% after the company expressed positive outlook for the future at the time of announcing Q1 June 2009 results. Bharat Forge's net profit tumbled 96.39% to Rs 0.96 crore on 43.98% fall in total income to Rs 363.82 crore in Q1 June 2009 over Q1 June 2008. The company announced the results before trading hours today, 24 July 2009.

Commenting on the results, Mr B N Kalyani chairman and managing director (CMD) of the company said the automotive industry in India has started showing early signs of recovery which is likely to strengthen in the coming quarters while the volumes in the US and European market are starting to stabilize at lower levels. Going forward, the company expects, this would translate into improved off-take for components, he added.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) lost 1.38% to Rs 2010. The stock moved in a band of Rs 2064.90 and 1985.20 in the day. The company's net profit fell 11.53% to Rs Rs 3636 crore on 21.64% decline in total income to Rs 32757 crore in Q1 June 2009 over Q1 June 2008. The results were unveiled after market hours today, 24 July 2009.

India's largest state-run oil explorer by market capitalisation ONGC galloped 3.41% to Rs 1130.10, rebounding sharply from day's low of Rs 1073.10. The company reported a 26.9% fall in net profit to Rs 4847.92 crore on a 25.8% decline in sales to Rs 14879.27 crore in Q1 June 2009 over Q1 June 2008. The results unveiled after market hours on Thursday, 23 July 2009, beat market expectations.

Deep Industries gained 4.95% after net profit rose 33.13% to Rs 2.17 crore on 83.09% rise in net sales to Rs 11.15 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after market hours on Thursday, 23 July 2009.

Gujarat State Petronet galloped 4.28% after net profit surged 146.6% to Rs 80.49 crore on a 76.4% rise in sales to Rs 210.82 crore in Q1 June 2009 over Q1 June 2008. The results were announced after market hours yesterday, 23 July 2009.

Metal stocks extended gains for the second day as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1.29% on Thursday, 23 July 2009. Hindalco Industries (up 3.75%), JSW Steel (up 1.40%), Tata Steel (up 6.15%), Hindustan Zinc (up 0.30%) rose.

India's largest private sector copper marker by sales Sterlite Industries surged 2.77% after a near 7% rally in its American depository receipt (ADR) on Thursday, 23 July 2009.

National Alumnium Company rose 1.52% on reports it has hiked aluminium prices by Rs 5,000 a tonne or 5%.

Realty stocks rose on the government's thrust on the housing sector in the Union Budget 2009-10. DLF (up 6.53%), Unitech (up 2.78%), Housing Development & Infrastructure (up 4.30%), Parsvnath Developers (up 7.61%), Omaxe (up 6.04%), and Ackruti City (up 4.15%), advanced.

IT stocks rose on reports 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 shot up 2%. India's third largest IT exporter by sales Wipro rose 0.60%. On 22 July 2009, Wipro announced better-than-expected Q1 results. India's largest IT exporter by sales TCS gained 1.51%. On 17 July 2009, TCS announced Q1 results that beat market expectations.

India's largest pharma company by sales Ranbaxy Laboratories rose 1.68%. The company's net profit jumped 2747.59% to Rs 675.45 crore on 12.98% fall in total income to Rs 1121.58 crore in Q2 June 2009 over Q2 June 2008. The results were declared after market hours today, 24 July 2009

India's largest pharma company by market capitalisation Sun Pharma shed 1.89% to Rs 1250. On Wednesday, 22 July 2009 investors in the US initiated a lawsuit seeking class action status against Sun Pharma's US subsidiary Caraco Pharmaceutical in the United States District Court. It was the top loser from the Sensex pack

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

India's top cigarette maker by sales ITC rose 0.33% extending yesterday's 5.39% surge after its 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

Banking shares were subdued ahead of the Reserve Bank of India's (RBI) quarterly monetary policy review meet on Tuesday, 28 July 2009. India's largest private sector bank by net profit ICICI Bank slipped 1.28% to Rs 765, after touching day's high of Rs 794.80. India's second largest private sector bank in terms of operating income HDFC Bank lost 0.55% to Rs 1448, off day's high of Rs 1470.50

India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.50% to Rs 1699.95 after striking day's high of Rs 1749.80. 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.

India's largest dedicated housing finance company by sales, HDFC shed 1.36% to Rs 2402.20 on profit booking after recent strong gains. 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.

Expectations about financial sector reforms remain. 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

Infrastructure stocks rose on the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Larsen & Toubro (up 0.17%), Bharat Heavy Electricals (up 1.32%), Lanco Infratech (up 5.49%), GMR Infrastructure (up 0.14%), and IVRCL Infrastructure (up 2.09%), rose

Road construction stocks were in action after the government on Thursday, 23 July 2009 cleared 15 highway projects totaling Rs 15,560 crore to be built under the public private partnership (PPP) mode in eleven states. Nagarjuna Construction Company (up 0.13%), Gammon India (up 0.52%), J Kumar Infraprojects (up 2.31%), IRB Infrastructure (up 4.80%), and Unity Infraprojects (up 0.25%) gained.

Telecom shares rose after the government on Thursday, 23 July 2009 imposed a three-year lock-in clause on stake sales by the owners of telecom companies, which were granted telecom licences last year.

India's second largest cellular services provider by sales Reliance Communications rose 0.46%.

Idea Cellular Services jumped 4.88% after net profit rose 14.7% to Rs 309.21 crore on a 29.7% increase in sales to Rs 2817.94 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours yesterday, 23 July 2009.

India's largest listed cellular services provider by sales Bharti Airtel settled at Rs 415.90 after the company's shares turned ex-split from Rs 10 per share to Rs 5 per share. The stock had settled at Rs 813.90 on Thursday, 23 July 2009.

Select FMCG stocks gained on fresh buying after revival in monsoon. Nestle India jumped 4.46% to Rs 2093 after a bulk deal of 51115 shares was struck on the counter at Rs 2015 per share on the BSE at 10:48 IST.

Godrej Consumer Products (up 6.47%), United Spirits (up 2.13%), Britannia Industries (up 2.03%), and Nirma (up 1.01%), gained. FMCG companies derive substantial revenue from rural sales.

Mahindra Satyam was the top traded counter on BSE with turnover of Rs 359.47 crore followed by Suzlon Energy (Rs 330.74 crore), Reliance Industries (Rs 266.48 crore), Tata Steel (Rs 231.14 crore), and DLF (Rs 227.32 crore).

Mahindra Satyam was also the volume topper on BSE clocking volume of 3.38 crore shares followed by Suzlon Energy (3.27 crore shares), Cals Refineries (2.55 crore shares), Unitech (2.29 crore shares), and Ispat Industries (2.23 crore shares).

Apar Industries surged 6.41% after net profit rose 27.57% to Rs 24.48 crore on 6.76% fall in net sales to Rs 503.25 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after market hours on Thursday, 23 July 2009.

Ambuja Cements declined 1.91% after net profit fell 43.74% to Rs 324.65 crore on 18.16% rise in net sales to Rs 1,847.41 crore in Q2 June 2009 over Q2 June 2008. The company declared its results after market hours on Thursday, 23 July 2009.

Shoppers Stop galloped 16.05% after Reliance Capital acquired 5.38 lakh shares in the retailer at an average price of Rs 162.01 a share in a bulk deal on the BSE on Thursday, 23 July 2009.

Essel Propack was locked at upper limit of 5% after the company posted net profit of Rs 5.24 crore in Q2 June 2009 as against net loss of Rs 9.75 crore in Q2 June 2008, on a consolidated basis. The company announced the results after market hours yesterday, 23 July 2009.