Markets on 22nd Feb 2008

Markets on 22^nd Feb 2008

Markets end in red on the back of weak global cues

The markets opened in the negative on the back of weak global cues and remained in a range for the rest of the session. They finally closed near the lows of the day. While the Sensex was down 385.61 points or 2.17% at 17,349.07, the Nifty lost 81.05 points or 1.56% to close at 5110.75. Broadmarket indices also fell but to a smaller extent as the BSE Midcap and Smallcap indices lost 0.97% and 1.01% respectively. The market breadth was negative as A/D ratio was 1:2 on the BSE. NSE cash turnover was Rs.10201.49 cr vs. Rs. 12193.69cr yesterday.

Sectorally, barring the BSE Consumer Durables and Healthcare indices that ended flat, all the other BSE Indices ended lower. The biggest losers were the BSE IT and Bankex which lost 3.06% and 3.14% respectively. Gainers from the index pivotals were Cipla, Hindalco and Maruti Suzuki. Major losers were Bajaj Auto, HDFC Bank, Satyam Comp, ICICI Bank and Infosys.

With the Nifty closing near the 5100 support levels which also correspond to the 200 day EMA, Monday’s trading session would be crucial. A close below these important supports could lead to a sharp fall and a testing of the 5000 and 4800 supports. We continue with our go slow approach on fresh long positions.

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Indian Markets - A Smart recovery

Indian Markets  -  A Smart recovery

The markets opened in the positive on the back of strong global cues and then started to slip into negative territory post lunch. However, they soon staged a smart recovery in the last hour of trade to finally close with healthy gains. While the Sensex was up 117.08 points or 0.66% at 17,734.68, the Nifty gained 37.35 points or 0.72% to close at 5191.80. Broadmarket indices performed in line with the frontline indices as the BSE Midcap and Smallcap indices gained 1.05% and 0.64% respectively. The market breadth was positive as A/D ratio was 1.2:1 on the BSE. NSE cash turnover was Rs.12193.69cr vs. Rs. 12184.21cr yesterday.

Sectorally, barring the BSE Bankex and Capital Goods, all the BSE Indices ended higher. The BSE IT and Metals surged 4.77% and 3.83% respectively. Top Gainers amongst the index pivotals included Satyam Comp, Hindalco, Wipro, Tata Steel and Infosys. Losers were HDFC, ICICI Bank, BHEL, SBI and Grasim Inds.

While the main indices continue to remain rangebound a lot of stock specific action is being seen. We nevertheless continue with our go slow approach on fresh long positions due to continued global uncertainties and the fact that the main indices in India are yet to enter into a confirmed uptrend.

Source- Capital Markets

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Markets on 19th Feb 2008

Markets on 19^th Feb 2008

Markets end on a flat note for the second consecutive session The markets opened in the positive and traded at higher levels until noon.

Thereafter, they witnessed selling pressure and marginally dipped in the red. They finally closed on a flat note. While the Sensex was up 27 points or 0.15% at 18,075.66, the Nifty gained 3.9 points or 0.07% to close at 5280.80. Broad market indices outperformed the frontline indices as the BSE Midcap and Smallcap indices were up 0.57% and 0.41% respectively. Market breadth was positive, as A/D ratio was 1.2:1 on the BSE.

Sectorally, it was a mixed bag. While the top gainers were the BSE Consumer Durables, Auto and Healthcare indices, the top losers were BSE Realty and Power. Gainers from the index pivotals include Bajaj Auto, Ranbaxy Labs, ACC and TCS. Losers were Rel Energy, Hindalco, DLF and ITC.

With the main indices continuing to trade in a narrow range for the second consecutive session, markets seem to lack direction for the moment. We recommend a go slow approach on fresh long positions.

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Markets on 19th Feb 2008

Markets on 19^th Feb 2008

Markets end on a flat note for the second consecutive session The markets opened in the positive and traded at higher levels until noon.

Thereafter, they witnessed selling pressure and marginally dipped in the red. They finally closed on a flat note. While the Sensex was up 27 points or 0.15% at 18,075.66, the Nifty gained 3.9 points or 0.07% to close at 5280.80. Broad market indices outperformed the frontline indices as the BSE Midcap and Smallcap indices were up 0.57% and 0.41% respectively. Market breadth was positive, as A/D ratio was 1.2:1 on the BSE.

Sectorally, it was a mixed bag. While the top gainers were the BSE Consumer Durables, Auto and Healthcare indices, the top losers were BSE Realty and Power. Gainers from the index pivotals include Bajaj Auto, Ranbaxy Labs, ACC and TCS. Losers were Rel Energy, Hindalco, DLF and ITC.

With the main indices continuing to trade in a narrow range for the second consecutive session, markets seem to lack direction for the moment. We recommend a go slow approach on fresh long positions.

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Market Round Up - 19th Feb 2008

Market Round Up - 19th Feb 2008

FIIs in buying mode

Foreign institutional investors (FIIs) bought shares worth net Rs 1147.50 crore on Friday, 15 February 2008, compared to their selling of Rs 1183.10 crore on Thursday, 14 February 2008.

FII inflow of Rs 1147.50 crore on 15 February 2008 was a result of gross purchases Rs 3898 crore and gross sales Rs 2750.50 crore. The 30-share BSE Sensex rose 348.62 points or 1.96% at 18,115.25 on that day.

FII outflow in February 2008 totaled Rs 315.40 crore (till 15 February 2008). FII outflow in calendar year 2008 totaled Rs 13,351.10 crore (till 15 February 2008).

There are a total of 1,290 FIIs registered with the Securities & Exchange Board of India (Sebi).

CRISIL net profit rises 291.74% in the December 2007 quarter

Net profit of CRISIL rose 291.74% to Rs 27.50 crore in the quarter ended December 2007 as against Rs 7.02 crore during the previous quarter ended December 2006. Sales rose 102.54% to Rs 84.68 crore in the quarter ended December 2007 as against Rs 41.81 crore during the previous quarter ended December 2006.

For the full year, net profit rose 89.06% to Rs 70.67 crore in the year ended December 2007 as against Rs 37.38 crore during the previous year ended December 2006. Sales rose 73.99% to Rs 255.32 crore in the year ended December 2007 as against Rs 146.74 crore during the previous year ended December 2006.

PM confident of sustaining 9% economic growth

On 15 February 2008, Prime Minister Manmohan Singh while addresing the annual meeting of the Federation of Indian Chambers of Commerce and Industry (Ficci) in New Delhi, expressed confidence on sustaining a 9% annual economic growth despite a possible global slowdown.

The minister also cautioned India must be aware that it cannot be completely insulated from chilly global winds that may blow in its direction.

He further said keeping the lid on inflation rate was a priority for his government, but controlling the price-line did not mean growth would be sacrificed.

Amid fears that a hike in petrol and diesel prices might fuel inflation, he said the government has taken an important policy stand to keep inflation under check and ensure that growth is more inclusive. The minister termed inflation as iniquitous tax explaining that it hurts the poor more than the rich. Therefore, it is essential to ensure that the poor are not adversely affected by high inflation, particularly that of basic items of consumption.

Inflation down 4.07% in the week ended 2 February 2008

Annual inflation, based on the wholesale price index, moved down 4.07% in the week ended 2 February 2008 compared with 4.11% in the week ended 26 January 2008. Inflation was 6.58% in the corresponding week a year ago.

The market estimate stood at 4.16%.

Prices of fruits and vegetables decreased 3% and those of arhar, masur and condiments and spicesn reduced 1% each. Prices of jet fuel also eased in the week.

Inflation figure for the week ended 8 December 2008 was revised upwards to 3.845 as against 3.65% reported earlier.

An eventful week for US Market

Lots of events dominated the US during the week that ended on Friday, 15 February, 2008. But the best part was that indices registered gains for the week after, each shedding more than 4% last week. Market closed higher in the first three days of the week but slipped in the later two.

The Dow Jones Industrial Average gained 166 points for the week. Tech - heavy Nasdaq gained 17 points. S&P 500 added 18.7 points.

On Monday, 11 February, it was reported that effective 19 February, 2008, Bank of America and Chevron will be added to the Dow Jones Industrial Average in place of Altria Group and Honeywell respectively. But on that very day, another Dow component AIG led to Dows downslide.

AIG was a major drag on the market on Monday after the company clarified its prior disclosures regarding CDOs saying that it has yet to determine the decline in value of its portfolio, and is still accumulating market data to update its valuation. The stock slipped by 12% and Dow would have ended the day higher, if not for AIG.

But the biggest news of the week was on Tuesday, 12 February, when it came to light that Warren Buffett's Berkshire Hathaway has made an offer to several flagging bond insurers. Berkshire Hathaway has sent an offer to reinsure the municipal bond holdings of Ambac, MBIA and FGIC. Berkshire offered to take a liability of $800 billion, adding $5 billion of its resources. Berkshire pledged there would be no distribution or management fees taken for 10 years. Dow ended the day higher by more than 100 points. (Full Story)

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Market on 18th Feb 2008

Markets end marginally in red

After opening in the positive, markets witnessed selling pressure and slipped into the red. The markets then traded in red for most part of the day but managed to close off the lows of the day. While the Sensex was down 67.20 points or 0.37% at 18,048.05, the Nifty lost 26.0 points or 0.49% to close at 5276.90. Broadmarket indices outperformed the frontline indices as the BSE Midcap and Smallcap indices were up 0.65% and 1.40% respectively. This explains the positive market breadth as A/D ratio was 2:1 on the BSE. NSE cash turnover was Rs.10,920.95cr Vs. Rs.14,206.78cr on Friday.

Sectorally, it was a mixed bag. While IT, Oil, Metal and Realty were the underperforming sectors, strength was seen in select Banking, Sugar and Fertiliser stocks. Gainers amongst the index pivotals were M&M, ITC, Hindalco, HUL and ICICI Bank. Losers were Satyam Comp, Tata Motors, TCS, DLF and BHEL.

With the main indices yet to confirm that they are in a fresh uptrend and also due to continued global uncertainties, we continue with our strategy of taking a small exposure with respect to fresh positions in order to get your legs into the door. Aggressive positions can be built up once the markets enter a confirmed uptrend.

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Markets on 15th Feb 2008

Markets recover smartly after a weak opening The markets opened lower this morning on the back of negative global cues.

Markets recover smartly after a weak opening The markets opened lower this morning on the back of negative global cues. However, the Indian markets managed to recover from the lows of the day and closed shop with hefty gains. The Indian markets also outperformed most of their Asian peers, which ended lower. While the Sensex was up 348.62 points or 1.96% at 18,115.25, the Nifty gained 100.9 points or 1.94% to close at 5302.9. Broadmarket indices also participated in the recovery as the BSE Midcap and Smallcap indices gained 1.87% and 2.27% respectively. The market breadth was healthy, as A/D ratio was 2.6:1 on the BSE. NSE cash turnover was Rs. 14,206.78cr Vs. Rs.13,545.99cr. yesterday.

All the BSE Sectoral indices ended with gains. The outperformers were the BSE Metal, Oil & Gas, and Realty indices that surged more than 3%. Gainers from the index pivotals included Hindalco, Tata Steel, Bajaj Auto, SBI and Ranbaxy Labs. Losers were Maruti Suzuki, Grasim Inds, TCS and Ambuja Cement.

The markets have now closed with healthy gains for three days in a row. The main indices are also trading above the 200 day EMA and the 13 day short term moving averages, which is a healthy sign. However, as the main indices are yet to confirm that they are in a fresh uptrend and also due to continued global uncertainties, we recommend taking a small exposure with respect to fresh positions in order to get your legs into the door. Aggressive positions can be built up once the markets enter a confirmed uptrend.

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Mkts: Bulls lift Sensex up by 585 pts at close – 1st Feb-2008

Mkts: Bulls lift Sensex up by 585 pts at close – 1^st Feb-2008

The bulls made it to the bourses at the stroke of the opening bell this morning and despite facing strong resistance from their rivals until around noon, turned in an inspired display to drive stock prices up sharply this afternoon. A smart recovery on Wall Street and in Asian markets and the positive start on the European bourses aided the sentiment today.

So terrific was the charge that the benchmark indices Sensex and Nifty kept surging higher and higher in afternoon trade. However, information technology and select auto stocks held firm other blue chips had given up their early gains amid volatile trade this morning. However, it turned out to be free ride up the charts for stocks cutting across sectors this afternoon. Even mid and smallcap stocks, which had gone down sharply earlier in the day, bounced back in a telling fashion during the closing minutes.

While the Sensex, which hit a high of 18,312.40 in late afternoon trade, ended the session at 18,233.42 with a sparkling gain of 584.71 points or 3.31%, the Nifty settled at 5317.25, a few points down from a high of 5339.95, with a handsome gain of 3.5% or 179.80 points. In intra-day trades today, the Sensex touched a low of 17,534.96. The Nifty had dropped down to 5090.75 in mid morning trade.

Among the sectoral indices, BSE IT (5.77%) was the outstanding performer today. The Tech index moved up by nearly 4% while the Auto and Metal indices surged 3.54% and 3.63% respectively. The PSU, FMCG, and Oil & Gas barometers ended stronger by 2.47%, 2.69% and 2.82% respectively. The Bankex advanced by 1.91% while the Power and Healthcare indices firmed up by 2.47% and 1.06% respectively.

The Capital Goods index gained a modest 0.31% while the Consumer Durables and Realty indices finished marginally behind their previous closing levels.

The market breadth, despite several stocks recording a smart turnaround, was weak when trade ended for the day. Out of 2795 stocks traded on BSE today, 1613 stocks ended weak. 1114 stocks closed with gains and 68 stocks ended at their previous closing levels.

Except cement stocks ACC (down 3.7%) and Ambuja Cements (down 0.75%) and private sector bank major HDFC Bank (down marginally), all other Sensex components ended in the positive territory today.

IT stocks Satyam Computer Services (8.2%); Tata Consultancy Services (6.2%), Infosys Technologies (5.8%) and Wipro (5.8%) were in demand right through the session today.

Automobile stocks Tata Motors (6.85%), Maruti Suzuki (6.6%) and Bajaj Auto (4%) closed on a high note. Metal stocks Hindalco and Tata Steel shot up by 6.75% and 5.9% respectively. PSU oil & gas exploration major ONGC recorded a handsome gain of 5.7%. Housing finance stock HDFC gained nearly 5.5%. Telecom stock Bharti Airtel moved up by a little over 5%. Reliance Communications gained 1.7%.

ICICI Bank (4.55%), ITC (4.95%), Reliance Industries (2.55%), Cipla (4.15%), NTPC (3.85%), Ranbaxy Laboratories (2.45%) and Grasim Industries (2%) also had a profitable outing. State Bank of India, Larsen & Toubro and Reliance Energy gained more than a percent. Mahindra & Mahindra and Hindustan Unilever chipped in with modest gains while BHEL and DLF finished marginally higher than their previous closing levels.

HCL Technologies, the biggest gainer in the Nifty, moved up by over 10%. Sterlite Industries gained 9.5%. BPCL rallied 6.8%. Reliance Petroleum, Tata Power, Cairn India, GlaxoSmithKline Pharma, Suzlon Energy, GAIL India, ABB and VSNL ended with strong gains.

Nalco, Zee Entertainment, Siemens, Unitech, Sun Pharmaceuticals, Idea Cellular and Dr. Reddy's Laboratories closed with sharp losses.

Future Capital Holdings made a modest debut today. On the National Stock Exchange, the stock ended at Rs 909.80, a premium of nearly 19% to the IPO price of Rs 765. Around 12.54 million shares were transacted at the Future Capital Holdings counter on NSE today.

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