BSE / NSE Indian Share Market Report 29 July 2009

BSE / NSE Indian Share Market Report

A sell-off in Chinese stocks triggered a slide in stocks across emerging markets. Indian equities were no exception. Nevertheless, the BSE Sesnex regained the psychological 15,000 mark soon after falling below that level in early afternoon trade. The BSE 30-share Sensex lost 158.48 points or 1.03%, off 205.97 points from the day's high, and up 285.05 points from the day's low.

Realty, metal, and banking shares led the decline on the domestic bourses. Index heavyweight Reliance Industries recovered from intra-day low to rise over 0.5%. In stock-specific activity, Sun Pharma, Tata Steel and Sterlite Industries slumped after Q1 June 2009 results. However TCS jumped nearly 4%

As per the provisional figures on NSE, foreign institutional investors (FIIs) sold shares worth Rs 168.79 crore on Wednesday, 29 July 2009 whereas domestic institutional investors bought shares worth Rs 126.23 crore.

The market was volatile. Equities slipped in early trade on lower Asian stocks. It has soon regained positive zone with auto shares leading the recovery. A sell-off in Chinese stocks pulled Indian stocks sharply down in early afternoon trade. The market cut losses in afternoon trade on gains in European shares.

The market may remain volatile ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009. As per reports, rollovers of Nifty positions from July 2009 series to August 2009 series stood at 42%, as on Tuesday, 28 July 2009. Rollover in Mini Nifty was about 35%

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 1112 companies rose 22.5% to Rs 54375 crore on 2.3% fall in sales to Rs 474743 crore in Q1 June 2009 over Q1 June 2008.

At a quarterly review of the monetary policy, the Reserve Bank of India (RBI) on Tuesday, 28 July 2009, kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. The GDP is expected to grow at 6% in FY 2010, with an upward bias, the central bank said. At the time of the annual monetary policy announcement in April 2009, the central bank had forecast a 6% growth. So, the words 'with an upward bias' were the addition to that forecast.

The Finance Minister after trading hours on Monday, 28 July 2009 announced tax breaks for industrial park schemes and developers of real estate and road projects to stimulate the economy and lift growth to 8-9 percent by the end of 2010. He announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh. This could benefit realty firms and housing finance companies.

In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.

The government has also extended tax holiday to developers of industrial parks by two years until March 2011. A tax holiday for firms engaged in food processing has also been extended. Producers of natural gas from coal-bed methane blocks would also be extended tax breaks.

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 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.

Finance Minister Pranab Mukherjee today said the government hopes to maintain the present level of economic growth despite a global slump. Certain signs of improvement are visible, Mukherjee said.

Meanwhile, investor focus may shift from secondary market to the primary market as Adani Power's initial public offer of 30.16 crore shares in the price band Rs 90-100 opened for subscription from Tuesday, 28 July 2009. The issue received strong response from investors and was subscribed around 4.64 times by 17:00 IST today, 29 July 2009. Adani said institutions including T. Rowe Price International Inc. demanded twice as many shares as offered in the so-called anchor investor portion of its initial sale.

The company will raise up to Rs 3,016 crore at the upper end of the price band, making it the second-biggest issue after Reliance Power.

Close on the heels of Adani Power, state-run power company NHPC will hit the primary market to raise upto Rs 6048 crore through sale of shares in a price-band of Rs 30-36 in an IPO. The issue will open on 7 August 2009 and close on 11 August 2009. The company would sell 168 crore shares comprising of 5% stake divestment of the government and infusion of 10% fresh equity.

Besides, Oil India and Pipavav Shipyard collectively plan to raise over Rs 2000 crore. Earlier, on 17 July 2009 the government said it is considering a part sale of its shareholding in the telecom monolith Bharat Sanchar Nigam (BSNL) to the public. Currently, the government fully owns BSNL.

European stocks rose today, 29 July 2009 led by financial stocks. Key benchmark indices in UK, Germany and France were up by between 1.06% and 1.99%.

Earlier in the day, Chinese stocks in Shanghai fell sharply as investors rushed to take profits, also sending Hong Kong-traded shares of mainland Chinese companies lower. In extremely volatile moves, the Shanghai Composite plunged as much as 7.7% in afternoon trading, before recovering to settled 5% lower at 3,266.43, giving up most of the gains made over the last five sessions. Hong Kong's Hang Seng was down 2.37%.

China's stocks plunged amid speculation the central bank is poised to order lenders to set aside larger reserves. Chinese policy makers in recent weeks have flagged inflationary worries and possible asset bubbles since lending exploded. New yuan loans in the first half of the year totaled 7.4 trillion yuan ($1.08 trillion), equivalent to about half of the country's gross domestic product in the period. The loan growth has spurred calls by economists for the central bank to fine-tune its policies.

Still, the People's Bank of China has signaled no reversal of its moderately loose monetary-policy stance, which is aimed at spurring growth in the world's third-biggest economy.

The Shanghai Composite has gained 79% this year as government stimulus spending, record bank lending and an economic rebound spurred demand for equities.

In other Asian markets, key benchmark indices in Taiwan, South Korea, Singapore, were down by between 0.11% and 0.83%. However Japan's Nikkei 225 index rose 0.26%.

Trading in US index futures showed the Dow could fall 25 points at the opening bell on Wednesday, 29 July 2009.

US stocks ended on a mixed note on Tuesday, 29 July 2009 after weak consumer confidence data offset gains on account of positive earnings. The Dow Jones Industrial Average shed 11.79 points, or 0.13%, to 9,096.72. The Standard & Poor's 500 Index dropped 2.56 points, or 0.26%, to 979.62. But the Nasdaq Composite Index gained 7.62 points, or 0.39%, to 1,975.51.

A report showed that US consumer confidence in July 2009 fell to 46.6, registering a second straight drop.

The BSE 30-share Sensex lost 158.48 points or 1.03% to 15,173.46. The Sensex opened 38.75 points lower at 15,293.19. The Sensex lost 443.53 points at the day's low of 14,888.41 in early afternoon trade. The Sensex rose 47.49 points at the day's high of 15,379.43 in mid-morning trade

The S&P CNX Nifty was down 50.60 points or 1.11% to 4,513.50. Nifty July 2009 futures were at 4496.20, at a discount of 17.30 points as compared to the spot closing.

The Sensex is up 5526.15 points or 57.28% in calendar year 2009 as on 29 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7013.06 points or 85.94% as on 29 July 2009.

Coming back to today's trade, turnover in NSE's futures & options (F&O) segment galloped to Rs 1,16,508.34 crore from Rs 76,854.19 crore on Tuesday, 28 July 2009. The BSE clocked a turnover of Rs 7509 crore, higher than Rs 7051 crore on Tuesday, 28 July 2009

The market breadth, indicating the overall health of the market, was weak after a positive start. On BSE, 1575 shares declined as compared with 1095 that advanced. 76 shares remained unchanged.

The BSE Mid-Cap index lost 0.98% to 5,477.09, outperforming the Sensex. The BSE Small-Cap index slipped 1.46% to 6,154.75, underperforming the Sensex.

Most sectoral indices on BSE ended lower. The BSE Realty index (down 4.36%), BSE Capital Goods index (down 1.75%), the BSE Power index (down 1.24%), the BSE Metal index (down 2.31%), BSE PSU index (down 1.22%), BSE Healthcare index (down 1.72%), BSE FMCG index (down 2.03%), BSE Consumer Durables index (down 3.13%), the BSE Bankex (down 1.21%), underperformed the Sensex.

The BSE TECk index (down 0.33%), BSE Auto index (down 0.49%), the BSE IT index (up 0.33%), the BSE Oil & Gas index (up 0.32%), outperformed the Sensex.

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

Rate sensitive realty shares dropped on profit taking after a recent rally. Investors are concerned that the central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation. Rising interest rates may dent property demand as most of the commercial and housing deals are driven by finance.

India's largest real estate developer by sales DLF plunged 6.83% to Rs 397 and was the top loser from the Sensex pack

Unitech (down 5.54%), Housing Development & Infrastructure (down 7.52%), Parsvnath Developers (down 6.11%), Sobha Developers (down 1.11%), and Omaxe (down 6.98%), declined

India's largest pharma company by market capitalisation Sun Pharma tumbled 5.38% after net profit declined 56.72% to Rs 121.51 crore in Q1 June 2009 over Q1 June 2008.

India's third largest pharma company by sales Cipla lost 3.22%. The company's net profit rose 72.6% to Rs 241.71 crore on 13.2% rise in net sales to Rs 1,325 crore in Q1 June 2009 over Q1 June 2008. The company declared its results during market hours today, 29 July 2009.

Alembic spurted 3.79% after the company posted consolidated net profit of Rs 12.25 crore in Q1 June 2009 as against net loss of Rs 4.70 crore in Q1 June 2008. The company declared its results after market hours on Tuesday, 28 July 2009.

Metal stocks slipped after LMEX, a gauge of six metals traded on the London Metal Exchange, declined 1.23% on Tuesday, 28 July 2009.

India's largest private sector steel maker by sales Tata Steel lost 6.09% after net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours today, 29 July 2009.

India's largest copper market by sales Sterlite Industries shed 5.70% after net profit fell 42% to Rs 6.73 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours today, 29 July 2009.

Steel Authority of India (down 4.32%), Sesa Goa (down 3.04%), Ispat Industries (down 5.82%), Nalco (down 2.23%), and Hindustan Zinc (down 2.74%), declined.

JSL jumped 4.67% after net profit surged 233.4% to Rs 94.76 crore on 13.3% fall in net sales to Rs 1346.49 crore in Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Tuesday, 28 July 2009.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 0.52% to Rs 1920.10, staging a smart pullback from day's low of Rs 1872.50

Reliance Natural Resources (RNRL) chairman Anil Ambani on Tuesday, 28 July 2009 accused the Petroleum Ministry of being biased in the legal dispute with brother Mukesh Ambani-led Reliance Industries (RIL) over the price of natural gas from the Krishna-Godavari basin. Addressing shareholders of the company, he also said the government would not lose a single rupee even if the gas from RIL's fields off the Andhra Pradesh coast were to be supplied to his company at the originally contracted price of $2.34 per unit.

Addressing shareholders at the RNRL's Annual General Meeting, Anil Ambani asked the Oil Ministry to cancel the Production Sharing Contract with RIL if it was really aggrieved and not challenge third party agreements. Giving details of the global gas scenario, he said the price of the industrial fuel had crashed 80% and the gas price of $4.2 per mmBtu (fixed by the Government) was "exorbitant" and against public interest.

Last month, the Bombay High Court had asked Reliance Industries to supply 28 million units of gas to Reliance Natural Resources for 17 years at $2.34 per unit, after assigning 12 million units to the state-run power utility NTPC. Reliance Industries challenged the verdict in the Supreme Court, which heard the case on 20 July 2009 and fixed 1 September 2009 as the next date of hearing. It also asked all the parties to file their replies on the government position on the matter by then.

Oil exploration pivotals slipped on fall in crude oil prices. ONGC (down 0.75%), and Cairn India (down 2.68%), slipped. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.

But the fall in crude prices lifted shares of PSU OMCs. BPCL (up 0.67%), HPCL (up 0.69%) and Indian Oil Corporation (up 1.28%) gained. Lower crude oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

HPCL reported a net profit of Rs 649.12 crore in Q1 June 2009 as compared with a net loss of Rs 888.12 crore in the Q1 June 2008. The results were declared during market hours today, 29 July 2009.

Light sweet crude for September delivery fell $1.15 to settle at $67.23 a barrel on the New York Mercantile Exchange on Tuesday, 28 July 2009.

Gujarat Gas Company jumped 13.31% after the company's board declared a liberal 1:1 bonus issue at the time of announcing Q2 June 2009 results after trading hours on Tuesday, 28 July 2009. This is a maiden bonus from Gujarat Gas Company.

Everest Kanto Cylinders tumbled 4.70% after net profit fell 18.2% to Rs 10.26 crore on a 28.3% decline in sales to Rs 65.44 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours yesterday, 28 July 2009.

Great Offshore rose 4.85% to Rs 458.25 after 16.65 lakh shares, or 4.48% equity, changed hands in two block deals on the BSE and the NSE. The counter saw a block deal of 14.40 lakh shares on the Bombay Stock Exchange, at Rs 450 per share. Another deal of 2.24 lakh shares was executed on the National Stock Exchange at the same price.

India's largest software firm by sales TCS gained 3.89% to Rs 498.40 on reports the company will re-bid for the UGC order once fresh bids are called. The University Grants Commission (UGC) has reportedly cancelled a Rs 250 crore e-governance project it had awarded TCS in March 2009, due to funding and internal conflicts in UGC. It was the top gainer from the Sensex pack

Select auto stocks regained positive zone in choppy trade. India's largest tractor maker by sales Mahindra & Mahindra gained 2.21% to Rs 841, off day's low of Rs 806.85 ahead of its Q1 June 2009 earnings on 30 July 2009.

India's top small car maker by sales Maruti Suzuki India rose 0.12% to Rs 1390.50 after declining to day's low of Rs 1364. The stock struck a record high of Rs 1418 on the BSE in intra-day trade today, 29 July 2009. The stock has been on a roll ever since it announced strong Q1 June 2009 results during market hours on 23 July 2009.

But India's largest truck market by sales Tata Motors slumped 5.46% to Rs 391.60, off day's high of Rs 412 on profit booking. The had stock surged 10.76 on Tuesday, 28 July 2009 after reporting 57.54% rise in net profit 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 on Monday, 27 July 2009.

India's largest bike maker by sales Hero Honda Motors slipped 2.02%. The company posted 83% jump in net profit to Rs 500 crore on 34% rise in total revenue to Rs 3865 crore in Q1 June 2009 over Q1 June 2008. The company announced Q1 June 2009 results after market hours today, 29 July 2009.

Bank stocks slipped after the Reserve Bank of India's (RBI) in its quarterly monetary policy review on Tuesday, 28 July 2009, raised inflation forecast which may result in reversal of the current soft interest rate regime. India's largest private sector bank by net profit ICICI Bank was down 1.17% mirroring a 3.25% fall in its American depository receipt (ADR) on Tuesday, 28 July 2009.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.87%. The bank's chairman on Tuesday, 28 July 2009 said that credit growth is expected to pick up in second half of the year. 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 Monday, 27 July 2009.

India's second largest private sector bank in terms of operating income HDFC Bank declined 0.64% after a 1.61% fall in its American depository receipt (ADR) on Tuesday, 28 July 2009.

Punjab National Bank rose 2.97% after net profit surged 62.38% to Rs 832.05 crore on 34.45% rise in total income to Rs 6,177.58 crore in Q1 June 2009 over Q1 June 2008. The bank declared its results during trading hours today, 29 July 2009.

India's largest FMCG company by sales Hindustan Unilever declined 3.10% on selling pressure. The stock had tanked 7.68% on Tuesday, 28 July 2009 after reporting a 2.68% fall in net profit to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared in late trade on Tuesday, 28 July 2009.

Power generation stocks slipped on profit booking after a strong response to the Adani Power initial public offer which opened for subscription on Tuesday, 28 July 2009. Reliance Infrastructure (down 3.96%), NTPC (down 1.96%), Reliance Power (down 2.84%), declined. However, India's second largest private sector power generation firm by sales Tata Power rose 2.96% to Rs 1303.10, off day's low of Rs 1187

Rural Electrification Corporation rose 5.48% after net profit rose 73.1% 471.82 crore on 47.2% rise in net sales to Rs 1,449.35 crore in Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Tuesday, 28 July 2009.

Fertiliser shares declined on fears the ongoing tussle between the Ambani brothers might impact the smooth flow of gas from the Krishna Godawari basin which was earlier allocated to fertiliser firms on a priority basis.

Rashtriya Chemicals and Fertilizers (down 5.14%), Nagarjuna Fertilizers & Chemicals (down 3.16%), Chambal Fertilizers & Chemicals (down 1.96%), Deepak Fertilisers and Petrochemicals Corporation (down 2.59%), and Tata Chemicals (down 0.35%), declined.

Tata Steel topped the turnover chart on BSE with a turnover of Rs 300.14 crore, followed by Unitech (Rs 272.69 crore), Reliance Industries (Rs 258.54 crore), Aban Offshore (Rs 251.94 crore) and Jindal Steel & Power (Rs 251.94 crore)

Unitech led the volume toppers on BSE clocking volume of followed by Suzlon (2.98 crore shares), Cals Refineries (2.17 crore shares), Suzlon Energy (2.14 crore shares), Reliance Natural Resources (2.13 crore shares) and Ispat Industries (1.84 crore shares).

Gammon India jumped 10.76% to Rs 164.55. The stock had plunged as much as 12.44% in early trade to a day's low of Rs 130.10. The company has been served a show cause notice by the Delhi Metro Rail Corporation (DMRC), asking it to state why it should not be banned for two years and debarred for bidding contracts under phase IV of the project. This comes a little over a month after an accident at the site claimed six lives and prompted DMRC chief, E Sreedharan to submit his resignation. The probe panel has held Gammon India responsible for the mishap.

Birla Corporation spurted 2.55% after net profit rose 69.2% to Rs 155.34 crore on a 23.9% increase in sales to Rs 490.40 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours on Tuesday, 28 July 2009

Kingfisher Airlines gained 2.42%. The company said it posted a net loss of Rs 1609 crore on net sales of Rs 5270 crore in the year ended March 2009. Year-ago figures were not immediately available. The results were announced today, 29 July 2009.