Sandeep Bhatia, Head of Equities, UBS, said the Sensex is unlikely to bottom around 16,000, it will go down to around 14,000. "The market is rallying on the belief that the worst is over as the Fed is bailing out US. The Sensex can go up to 17,500 but then it will go back down to 14,000."
He feels negative domestic economic indicators will take the markets lower. "The market may bottom out in April-May, if the US economic situation improves. However, it is likely to go back to old highs of around 21,000 by the end of the year."
The earnings season is unlikely to be driver for market sentiment, Bhatia said. "Q1 FY09 results season will be more important that Q4 FY08. However, guidance given by tech companies us likely to be very cautious in Q4 FY08."
Bhatia hopes RBI does not go in for monetary tightening to rein in inflation.
Excerpts from CNBC-TV18’s exclusive interview with Sandeep Bhatia:
Q: How are you feeling about the way the market has performed this week? Do you get the sense that some kind of base-building process is already under way?
A: I don’t think 16,000 will be the bottom of the market. We will test the bottom and the bottom is lower at 14,000. The underlined trends that have materialized in the economy in the last three months are not going to go away, in terms of improvement, at least till May-June. So, we will continue to see inflation at over 5% and continue to see weak numbers on industrial production growth.
With that in mind, the market will try to find a bottom but could probably be between 14,000-16,000 for some time. I don’t think we have hit the bottom, in terms of news flows coming from the housing crisis in the US. There could be some more news on the banking sector in April, which would test the confidence of this market.
Q: Is the market front running the bottoming out of the bad news, as equity markets tend to? Do you think this is a sharp and good-looking bounce that we are getting, in terms of the damage we have seen these past few months?
A: There has been a lot of damage. The markets are trying to create a rally on the belief that the worst is over and the action taken by the Fed is going to pay off very soon. Therefore, the markets should run ahead of the bottoming out of the fundamentals of the economy. That is clearly going to get tested in the near-term. I don’t think we are exactly out of the woods, as far as the housing crisis is going on in the US. To that extent, we would have some short rallies, but the market will definitely get tested. It would be very difficult to imagine a market, which would break the 17,500 barrier on the upside. The bottom could be tested at around 14,000.
Q: In a couple of days from now, we will be stepping into earnings season. Estimates are varied between 19-20% of the lower end and 24% growth for the very ambitious. What are you expecting to see from earnings this time around? Do you think the market has fully factored that in?
A: Earnings season is not going to be a driver for the market movement. I don’t think the April results season will move the market in any direction in a strong manner.
We are going to wait for a buildup of data rather than one single data point or a single results season. The real issue that the market is grappling with is whether growth is going to slow down remarkably from 8.5% that we have been achieving to 7-7.5%. The jury on that will only be out after the June result season starts coming in.
The April results season is going to tell you what we already know, which is that there is some sort of a slowdown happening in earnings. The guidance on tech companies that will come in first will be very cautious. The other companies or sectors will not give you a strong signal to either buy or sell. Therefore, this season is very much like the previous earnings season. It does not result in any significant market movement in any direction.
Q: Do you think 6.5% inflation is going to be something that is going to be a bitter pill for us to digest in the next few weeks?
A: It was definitely much higher than what we expected. Our view has been that we will see high inflation numbers till May. Therefore, we have some bad news to stomach until then. Inflation will continue to hover at about 5%.
I just hope that it doesn’t result in some sort of a tightening of the credit policy and RBI stands at the margin. Clearly, we are in an industrial slowdown and the monetary policy should not tighten from hereon. So, I just hope that we can stomach it without any change in policy stance.
Q: What are you expecting to hear from IT companies this time around?
A: We will see very cautious guidance. The rupee has weakened from the last earnings season. But given that they have hedged their positions, I would not expect any benefit from a weaker rupee. We will see a very cautious guidance saying they expect volume growth to be strong but the financial side there could be pushback and delays.
Other than that, I don’t think we would see any significant positive stands come through from the IT side. So, at the end of it, I would doubt if people would be in any position to take earnings up or down meaningfully. We would still continue to grope around in the dark hoping that we get clarity in the second half of the year.
Q: You would put IT down to under perform for the next few quarters or just a neutral?
A: If one takes a one-year’s view, I would put money into IT. The valuations have now reached absolutely compelling levels. The only risk we are now going to see is the complete weakening of the US markets. We do not expect that to happen. So, I would put money in IT.
The real issue for the markets is to find a leader or sectors that can lead the market in 2008. I don’t think that 2007 leaders will play as big and important a role as they did. Therefore, we need new leaders and new sectors to lead the charge. IT, in the second half, would definitely fit the bill if the US stabilizes and starts showing signs of improvement. So, that’s one risky bet. But I am ready to take it at these valuations.
Q: Who else might do that because there was a call for increasing positions to FMCG and maybe autos to an extent? This whole inflation concern seems to have turned that whole argument on its head. Do you think these sort of sectors have the potential for leadership?
A: No, I don’t think standalone FMCG or autos have the potential for leadership. This is not the index of 10-years ago, where FMCG was 22-23% of the index. It is clearly not going to be a leader.
As far as inflation is concerned, pricing power is definitely very positive on the FMCG side. We will continue to see 13-15% of topline growth. This year, especially if the market does not deliver positive returns, we could end up in 2008 having single-digit negative returns from the market.
It would be a big achievement for the market to deliver positive returns over and above the highs, which we saw of 21,000 plus this year. So, in the end, if we have a small negative return from the market by the end of 2008, these sectors will definitely standout as defensives. But to drive absolute returns in this market, we require strong earnings growth and cheap valuations. IT has cheap valuations.
Therefore, we need to wait and see if they can deliver strong earnings growth. If that happens with positive news on the US economy in the second half, then they would be the new leaders. If not, then the market will actually just go sideways for most of the year then.
Q: What might the markets do over the next few months? Is it going to be a situation where it gets worse before it gets better? Do you think we are just going to move about in a narrow or broad range before we finally find direction?
A: It clearly has to be in the backdrop of assumption about what happens to the US. The backdrop is basically two-fold. If the US economy starts stabilising by May-June, we will actually have the market bottoming out in April-May and then probably end the year with around 20,000-21,000, very close to the highs that we made in the beginning of January.
That would still not be a bad outcome given that for four years in a row, we had very strong market movements. This is what I would call a refreshing pause. The market is catching hold of some breath and just relaxing a bit after running for the last four years.
But if the outcome of the US economy is much weaker than what we currently expect, then the market can definitely hit lows that I don’t currently forecast, which is below 14,000. I hope that does not happen. Unfortunately, it is impossible to predict, because we will know only as time passes.
Q: How would you approach the entire ferrous and non ferrous pack now?
A: Coal is a bigger story than crude. The basic raw materials-coal and iron ore-will see a structural increase in prices for the current year and for the next two years. So, there is nobody in the world who can hide from that. To that extent, higher prices will get reflected. Like it or not we are going to face inflation. Unfortunately in India, we can’t play the iron ore and coal stories because there are not many listed large stocks. So, we are looking at users of these products and therefore it is steel. Here the situation is very complicated. There are some users who are integrated and some who are not.
Users, which are not integrated, will face margin pressure. There is no doubt about that in my mind. But for users which are integrated, there would be some kind of protection and they could even be beneficiaries as steel price rises. So, to that extent, we like Tata Steel and Steel Authority of India, which are the most integrated players.
Source: Moneycontrol.com
Sunday, March 30, 2008
Experts see mkt rally fading soon
Robert Parker of Credit Suisse said most markets have fallen recently as most of them look oversold. He feels the rally may fade by April but will be more durable in the second half of 2008. "I see limited downside risk in India and most other Asian markets."
The only positive from US is strong exports due to dollar devaluation, he said. "The US Consumer Confidence is down sharply and will remain subdued for the next few months. The housing market is in a bad shape. The default rate may go up to 20%. However, most of the US sub-prime write downs have already been accounted for." He feels the uptick in the offshoring market turn out to be a positive for India.
Parker sees significant risk factors for the next quarter. "Growth has moderated but that has happened from very high levels. However, growth divergence will persist and will continue to bring FII money into India."
According to Parker, investors need to distinguish between commodity exporting and importing countries. "Lower commodity prices will be good for importing countries like India." On inflation, Parker said higher food and energy prices are driving inflation. "However, core inflation is not as high."
Nilesh Shah of Envision Capital said the markets are in an extremely oversold zone with leveraged positions being squared off. "A small liquidity infusion can take markets higher. I see room for a 3-5% upside. However, the markets will find it difficult to sustain gains." Shah feels we are into an era of higher prices and inflation. "The data is throwing up nasty surprises. Inflation over 7% will be bad and the market may not be prepared for that." The impact of earnings season will also be key market sentiment driver, he added.
Excerpts from the exclusive interview with Robert Parker and Nilesh Shah:
Q: Can you see any kind of base building process happening across global equity markets?
Robert Parker: Obviously with one or two exceptions notably the Middle Eastern markets and to some extent the Taiwanese market, all equity markets YTD have shown significant declines. We are technically very oversold on all markets and there is very significant cash sitting on the sidelines and I think those investors who have been investing in the leveraged way have reduced their leverage consistently throughout the first quarter.
As you have mentioned, the economic news remains very bad especially from the United States and I would actually say that the only positive note from the United States is the strong growth of exports due to the devaluation of dollar.
In terms of where we go from here, my central case is that we will see a rebound in April in global equity markets including the Indian markets. I think there is a risk that the rally in April may fade as we go into late May and June but then I think that we could actually see a base being formed for more durable rally during the second half of the year. I do not see an equity market rally whether it is in India, Asia or globally starting on a sustained basis for April. I think the second quarter has still got some significant risk factors in the markets.
Q: How are you feeling about the way we have performed in this week itself and are you getting this sense that this series might be a little bit stronger than what we have wrapped up because the damage was quite hard on prices through what we did in March?
Nilesh Shah: Clearly the last few months and the last few weeks have essentially been extremely weak for the Indian markets and clearly we are into an extremely oversold situation. I think the biggest driving point for this rally has been the fact that a lot of the leverage positions which were essentially coming in from leverage players were really already significantly squared off in the month of January but in February and March, it has essentially been the investors who are carrying leverage positions. I think a lot of those positions have got squared off.
So the way we really look at it is that the market is extremely light and even some amount of liquidity infusion in the market essentially could be good enough to drive this market up further. But having said that clearly I think, a lot of these trading gains that we could have had in the short-term are already in place.
The reality is that the market has rallied about 1000-500 points, which is about a good 10% from the low. It has already rallied to that extent and our sense is that probably there is a room for a further 3%-5% increase but I think beyond that, it is going to be hard for the short-term rally to sustain itself.
Q: Because of the oversold nature of most of these markets particularly some of the emerging markets, how much would you give this bounce that we might have for ourselves in April?
Parker: I think it is going to be very divergent and looking at emerging markets globally I think you have got to make a very clear distinction between the commodity importing countries and the commodity exporters. Obviously in the first quarter of this year, it was the commodity exporting markets, which outperformed. For example, markets like Brazil are highly correlated with commodity prices and the Middle Eastern markets did a very good performance in the first quarter obviously with the positive impact, of the oil price rising to close to USD 110/bbl.
So I do think that the pattern of commodity prices is important. Now if we are right and if this speculative overhang in commodity markets stops to reverse over the next month or two and if we see oil for example coming back down in to a range of USD 90-100/bbl, I think that would be very good for the commodity importing countries and the two that really stand out there are obviously India and China, which are highly sensitive to not just the oil price but obviously industrial metals and soft commodity prices.
Q: Couple of shockers that we got by way of data this week, do you think the market is adequately hedged against that or will come around to the idea of inflation at more than 6%?
Shah: I think everybody realizes that we are into an era of relatively higher prices and therefore the kind of advance, which the broad inflation data has been registering week-on-week is basically catching a lot of people by surprise and clearly the inflation data is throwing up a lot of nasty surprises.
So yes, one had expected the inflation data to slowly inch towards the 6.5% mark but here we have a week where inflation data has very conveniently crossed the 6% mark and stands at as high as 6.8%. I think if this is the pace at which it continues to advance, then we could be in an era where the inflation rate is basically at about more than 7%, which is significantly higher than what we have seen for several years.
I clearly think the financial markets do not seem to be yet ready for the kind of a situation, you would also see some kind of response mechanism emanating from the government side and I think depending upon what kind of response mechanism it is that would be probably good enough to ensure that the financial markets do not get too carried away with any of the other positive developments and inflation data will ensure that this market remains capped.
In addition to that as we progress ahead in the next few weeks the earning season unfolds, so yes on one hand we have the macro data affecting us but on the other hand we have the micro situation through the earning season unfolding over the next few weeks. So both of these factors will continue to be the dominant forces impacting our markets.
Q: Just scratch the 2 points that you made first liquidity still waiting on the sidelines and secondly on extremely disappointing US data what stood out in the data that was reported through this week?
Parker: If we look at the United States we have had a significant decline in consumer confidence and I assume that the consumer sector in the United States will remain depressed for at least the next 2-3 months. We might get some moderate recovery in consumer spending but I think that is probably going to be the later third quarter and the beginning of the fourth quarter.
The United States housing market will remain very troubled; the default rate on subprime mortgages continues to edge higher up. Our target is 20% for default there and nearly in term of other data on the housing market, the figures for house sales and house prices have also been negative.
House prices nationally in United States are now down YoY close to 10% and one interesting feature of the global economy is, where we have real estate bubbles and I don’t see much evidence of the real estate bubbles anywhere in Asia. But the UK, the US, elsewhere in Europe- the Sapnish market and the Irish market, the real estate prices are under downward pressure and in those specific markets that is negative for their equity markets.
Q: For many analyst, the expectation or approach is that the equity market tends to bottom out before the worst news hits us. Do you think any of that has begun or might there be a lot more financial stress that a lot of markets have to go through and a lot more bad news to wade through before we actually start recovering?
Parker: First of all, I think that most of the write-offs in subprime in the US mortgage market have now largely been accounted for, where we have I think further problems is obviously with credit spread widening that could cause a problem for leverage buy out market, it could cause a problem for the high yield, where I assume we are going to see quite a sharp increase in defaults.
So for the first half of this year, I think the European banks, the American banks probably will face further write-offs. One positive point for India which I did think that many people have not picked up on yet, is with the universal banks under pressure to cut cost that means that many of them are now exhilarating, they are off shore. Therefore I think the process of moving to operational departments out of Europe and out of the United States into India that process could exhilarate and therefore that off shoring market, I think would be positive for the Indian sector.
Q: Banking has been under a bit of a cloud over here perhaps because of expectations of fears of what the RBI might do, how would you approach all these banking stocks both public and private?
Shah: If you look at and dissect the entire space both into public and the private space, the public sector banks have essentially kind of not being too involved with lot of the controversies or lot of the issue points, which have been quite adequately debated and discussed and as always, the valuations continues to be very attractive in that space. Most of the public sector banks continue hover around at a marginal premium to their adjusted book value on March 09 earnings basis, so I think that is the segment that we like. However having said that probably for the next couple of quarters, you could see the sentiment continue to be depressed in that segment essentially because of the loan waiver and its impact.
Flipping over to the private sector side, I believe that valuations are very challenging and stand alone private sectors banks, we don’t see an issue with them because the core banking related business continues to grow very well and most of them we believe will grow at more than 20% and will continue to grow and build their franchise over the next few months. But it’s the private sector banks or the private sector players, which are significantly dependent on the capital markets and that’s the segment which will continue to be the most vulnerable, a lot of them will see degrowth and degrwoth essentially because of shrinkage essentially in business and volume and also some amount of provisioning, which they may have to do because of essentially hits on the foreign exchange derivative transaction. So I think that’s the segment, which one has to be very careful and use rallies to basically cut positions or exit positions and probably reallocate that capital back into either in public sector banks or the stand alone private sector banking players.
Q: Is it your sense that we might have some more of those individual blow-ups or accidents that we saw last month?
Shah: I wouldn’t rule out that possibility as it really depends upon the management of these banks, the way they want to deal with the situation and the way they want to provide for these kind of contingences. So you might have a situation where there would be some banks, which are just conservative and essentially write off or provide for most of the contingent losses, and therefore cap the downside that they could. So that is something, which will depend upon what standard the respective management of these banks take.
Q: What’s the call on India at this point, there are some concerns about what earnings might deliver the estimates are being scaled back closer to probably 20% at the ambitious side 24%, GDP targets are being scaled back. How would approach India as a market now?
Parker: I would just like to emphases that the problem, which was discussed earlier about inflation I think it is a global problem and it is being driven by higher food prices and higher energy prices. If you strip out food and energy core inflation remains fairly muted in the next 2-3 months commodities stabilize or even come back a little bit. I wouldn’t be so pessimistic on Indian inflation continuing to rise. I think the second positive is that when we have had these discussions in the past, I have highlighted one risk factor for India, which has been the strength for the currency. I think we are now in a situation where the currency has stabilized and we could go through a good 3-6 months period, where the Indian rupee lost against major currencies and stays at approximately at current levels. There is a very strong upward pressure that we have seen, in the last 6 months to one year and we no longer see that as a factor in the market and that would be a positive.
The third factor is the growth being moderating and we have highlighted that in the past but it is moderating from very high levels indeed and the growth divergence between the emerging markets notably India and China, with the developed economies of Europe and Japan and America. The growth divergence will persist and that will continue to drive foreign direct investment flows into markets like India.
So in terms of where that leaves us and that is a quite risky position we had in the Indian market in the beginning of the year, where we will be concerned that the significant downside risk and certainly the downside risk was greater than the upside risk. I think that we have now moved into a situation where downside risk in the Indian and for that matter Asian markets as a whole is fairly limited. Though I’m worried that we may have another market reversal later in the second quarter, I very much doubt that is going to take us back to the lows that we saw recently.
Q: Now that we have stepped into this series, it is going to be a big one. There is earnings, lots of policy announcements as well both from RBI and Fed. What is the base-case scenario you are working with for the market?
Shah: The recent lows that we had tested would not get re-tested. That’s the base-case situation because we seem to have moved about 10% higher from there. The first set of earnings would clearly come out from technology companies. I don’t think there is going to be significant disappointments on that front. Most IT services companies will continue to give good guidance or very robust guidance about their prospects for next year. So, the earnings season will be put into good motion. There are too many expectations on the credit policy.
If at all a segment had some expectations about rate cuts, with the latest inflation data, those kinds of expectations would have gone into the background. We are getting into this whole set of developments with virtually no expectations. If at all there might be some positives surprises only during the May and June where a lot of the non-technology companies would start coming out with their results. It is quite possible that we might face some amount of disappointments in those kinds of months. Those companies may exert some caution in terms of their expectations for the new financial year.
May be April looks a lot better than what the last 2-3 months have been but I am not too sure whether that’s going to be the case for the next one-quarter or so.
Q: What would your preferred spaces in India be right now?
Parker: I continue to see foreign direct investment flow into the infrastructure sector. Our client base is still very interested in investing in infrastructure in India. If one looks at Indian technology companies, I do think corporate earnings growth is going to be stronger than the earnings growth we have seen in technology companies in the US or Europe. The market’s reaction to the Oracle numbers that we had recently was disappointing. If anything, there is going to be a switch in global corporate earnings growth in technology in favour of the Indian tech sector.
The third area to highlight is that although consumption in India may moderate somewhat inline with the moderation in overall economy, we still see consumption in markets like India remaining very robust, relative to consumption in say Europe or the States. So, that’s going to be an area, which is interesting.
In terms of valuations, this is an area where we are seeing clear client flows. There is more interest in private equity than in publicly-listed equity. Although the ratio of market upside to downside is now positive whereas in the first three-months of this year it was negative. I do think the upside on the publicly listed market is probably fairly limited. The possibly upside from these levels is plus or minus 5% for the year as a whole. The upside is perhaps of 10% from here.
We are seeing strong interest in private equity. That’s because the multiples, the cost of actually investing in India is more attractive to overseas investors
Source: Moneycontrol.com
The only positive from US is strong exports due to dollar devaluation, he said. "The US Consumer Confidence is down sharply and will remain subdued for the next few months. The housing market is in a bad shape. The default rate may go up to 20%. However, most of the US sub-prime write downs have already been accounted for." He feels the uptick in the offshoring market turn out to be a positive for India.
Parker sees significant risk factors for the next quarter. "Growth has moderated but that has happened from very high levels. However, growth divergence will persist and will continue to bring FII money into India."
According to Parker, investors need to distinguish between commodity exporting and importing countries. "Lower commodity prices will be good for importing countries like India." On inflation, Parker said higher food and energy prices are driving inflation. "However, core inflation is not as high."
Nilesh Shah of Envision Capital said the markets are in an extremely oversold zone with leveraged positions being squared off. "A small liquidity infusion can take markets higher. I see room for a 3-5% upside. However, the markets will find it difficult to sustain gains." Shah feels we are into an era of higher prices and inflation. "The data is throwing up nasty surprises. Inflation over 7% will be bad and the market may not be prepared for that." The impact of earnings season will also be key market sentiment driver, he added.
Excerpts from the exclusive interview with Robert Parker and Nilesh Shah:
Q: Can you see any kind of base building process happening across global equity markets?
Robert Parker: Obviously with one or two exceptions notably the Middle Eastern markets and to some extent the Taiwanese market, all equity markets YTD have shown significant declines. We are technically very oversold on all markets and there is very significant cash sitting on the sidelines and I think those investors who have been investing in the leveraged way have reduced their leverage consistently throughout the first quarter.
As you have mentioned, the economic news remains very bad especially from the United States and I would actually say that the only positive note from the United States is the strong growth of exports due to the devaluation of dollar.
In terms of where we go from here, my central case is that we will see a rebound in April in global equity markets including the Indian markets. I think there is a risk that the rally in April may fade as we go into late May and June but then I think that we could actually see a base being formed for more durable rally during the second half of the year. I do not see an equity market rally whether it is in India, Asia or globally starting on a sustained basis for April. I think the second quarter has still got some significant risk factors in the markets.
Q: How are you feeling about the way we have performed in this week itself and are you getting this sense that this series might be a little bit stronger than what we have wrapped up because the damage was quite hard on prices through what we did in March?
Nilesh Shah: Clearly the last few months and the last few weeks have essentially been extremely weak for the Indian markets and clearly we are into an extremely oversold situation. I think the biggest driving point for this rally has been the fact that a lot of the leverage positions which were essentially coming in from leverage players were really already significantly squared off in the month of January but in February and March, it has essentially been the investors who are carrying leverage positions. I think a lot of those positions have got squared off.
So the way we really look at it is that the market is extremely light and even some amount of liquidity infusion in the market essentially could be good enough to drive this market up further. But having said that clearly I think, a lot of these trading gains that we could have had in the short-term are already in place.
The reality is that the market has rallied about 1000-500 points, which is about a good 10% from the low. It has already rallied to that extent and our sense is that probably there is a room for a further 3%-5% increase but I think beyond that, it is going to be hard for the short-term rally to sustain itself.
Q: Because of the oversold nature of most of these markets particularly some of the emerging markets, how much would you give this bounce that we might have for ourselves in April?
Parker: I think it is going to be very divergent and looking at emerging markets globally I think you have got to make a very clear distinction between the commodity importing countries and the commodity exporters. Obviously in the first quarter of this year, it was the commodity exporting markets, which outperformed. For example, markets like Brazil are highly correlated with commodity prices and the Middle Eastern markets did a very good performance in the first quarter obviously with the positive impact, of the oil price rising to close to USD 110/bbl.
So I do think that the pattern of commodity prices is important. Now if we are right and if this speculative overhang in commodity markets stops to reverse over the next month or two and if we see oil for example coming back down in to a range of USD 90-100/bbl, I think that would be very good for the commodity importing countries and the two that really stand out there are obviously India and China, which are highly sensitive to not just the oil price but obviously industrial metals and soft commodity prices.
Q: Couple of shockers that we got by way of data this week, do you think the market is adequately hedged against that or will come around to the idea of inflation at more than 6%?
Shah: I think everybody realizes that we are into an era of relatively higher prices and therefore the kind of advance, which the broad inflation data has been registering week-on-week is basically catching a lot of people by surprise and clearly the inflation data is throwing up a lot of nasty surprises.
So yes, one had expected the inflation data to slowly inch towards the 6.5% mark but here we have a week where inflation data has very conveniently crossed the 6% mark and stands at as high as 6.8%. I think if this is the pace at which it continues to advance, then we could be in an era where the inflation rate is basically at about more than 7%, which is significantly higher than what we have seen for several years.
I clearly think the financial markets do not seem to be yet ready for the kind of a situation, you would also see some kind of response mechanism emanating from the government side and I think depending upon what kind of response mechanism it is that would be probably good enough to ensure that the financial markets do not get too carried away with any of the other positive developments and inflation data will ensure that this market remains capped.
In addition to that as we progress ahead in the next few weeks the earning season unfolds, so yes on one hand we have the macro data affecting us but on the other hand we have the micro situation through the earning season unfolding over the next few weeks. So both of these factors will continue to be the dominant forces impacting our markets.
Q: Just scratch the 2 points that you made first liquidity still waiting on the sidelines and secondly on extremely disappointing US data what stood out in the data that was reported through this week?
Parker: If we look at the United States we have had a significant decline in consumer confidence and I assume that the consumer sector in the United States will remain depressed for at least the next 2-3 months. We might get some moderate recovery in consumer spending but I think that is probably going to be the later third quarter and the beginning of the fourth quarter.
The United States housing market will remain very troubled; the default rate on subprime mortgages continues to edge higher up. Our target is 20% for default there and nearly in term of other data on the housing market, the figures for house sales and house prices have also been negative.
House prices nationally in United States are now down YoY close to 10% and one interesting feature of the global economy is, where we have real estate bubbles and I don’t see much evidence of the real estate bubbles anywhere in Asia. But the UK, the US, elsewhere in Europe- the Sapnish market and the Irish market, the real estate prices are under downward pressure and in those specific markets that is negative for their equity markets.
Q: For many analyst, the expectation or approach is that the equity market tends to bottom out before the worst news hits us. Do you think any of that has begun or might there be a lot more financial stress that a lot of markets have to go through and a lot more bad news to wade through before we actually start recovering?
Parker: First of all, I think that most of the write-offs in subprime in the US mortgage market have now largely been accounted for, where we have I think further problems is obviously with credit spread widening that could cause a problem for leverage buy out market, it could cause a problem for the high yield, where I assume we are going to see quite a sharp increase in defaults.
So for the first half of this year, I think the European banks, the American banks probably will face further write-offs. One positive point for India which I did think that many people have not picked up on yet, is with the universal banks under pressure to cut cost that means that many of them are now exhilarating, they are off shore. Therefore I think the process of moving to operational departments out of Europe and out of the United States into India that process could exhilarate and therefore that off shoring market, I think would be positive for the Indian sector.
Q: Banking has been under a bit of a cloud over here perhaps because of expectations of fears of what the RBI might do, how would you approach all these banking stocks both public and private?
Shah: If you look at and dissect the entire space both into public and the private space, the public sector banks have essentially kind of not being too involved with lot of the controversies or lot of the issue points, which have been quite adequately debated and discussed and as always, the valuations continues to be very attractive in that space. Most of the public sector banks continue hover around at a marginal premium to their adjusted book value on March 09 earnings basis, so I think that is the segment that we like. However having said that probably for the next couple of quarters, you could see the sentiment continue to be depressed in that segment essentially because of the loan waiver and its impact.
Flipping over to the private sector side, I believe that valuations are very challenging and stand alone private sectors banks, we don’t see an issue with them because the core banking related business continues to grow very well and most of them we believe will grow at more than 20% and will continue to grow and build their franchise over the next few months. But it’s the private sector banks or the private sector players, which are significantly dependent on the capital markets and that’s the segment which will continue to be the most vulnerable, a lot of them will see degrowth and degrwoth essentially because of shrinkage essentially in business and volume and also some amount of provisioning, which they may have to do because of essentially hits on the foreign exchange derivative transaction. So I think that’s the segment, which one has to be very careful and use rallies to basically cut positions or exit positions and probably reallocate that capital back into either in public sector banks or the stand alone private sector banking players.
Q: Is it your sense that we might have some more of those individual blow-ups or accidents that we saw last month?
Shah: I wouldn’t rule out that possibility as it really depends upon the management of these banks, the way they want to deal with the situation and the way they want to provide for these kind of contingences. So you might have a situation where there would be some banks, which are just conservative and essentially write off or provide for most of the contingent losses, and therefore cap the downside that they could. So that is something, which will depend upon what standard the respective management of these banks take.
Q: What’s the call on India at this point, there are some concerns about what earnings might deliver the estimates are being scaled back closer to probably 20% at the ambitious side 24%, GDP targets are being scaled back. How would approach India as a market now?
Parker: I would just like to emphases that the problem, which was discussed earlier about inflation I think it is a global problem and it is being driven by higher food prices and higher energy prices. If you strip out food and energy core inflation remains fairly muted in the next 2-3 months commodities stabilize or even come back a little bit. I wouldn’t be so pessimistic on Indian inflation continuing to rise. I think the second positive is that when we have had these discussions in the past, I have highlighted one risk factor for India, which has been the strength for the currency. I think we are now in a situation where the currency has stabilized and we could go through a good 3-6 months period, where the Indian rupee lost against major currencies and stays at approximately at current levels. There is a very strong upward pressure that we have seen, in the last 6 months to one year and we no longer see that as a factor in the market and that would be a positive.
The third factor is the growth being moderating and we have highlighted that in the past but it is moderating from very high levels indeed and the growth divergence between the emerging markets notably India and China, with the developed economies of Europe and Japan and America. The growth divergence will persist and that will continue to drive foreign direct investment flows into markets like India.
So in terms of where that leaves us and that is a quite risky position we had in the Indian market in the beginning of the year, where we will be concerned that the significant downside risk and certainly the downside risk was greater than the upside risk. I think that we have now moved into a situation where downside risk in the Indian and for that matter Asian markets as a whole is fairly limited. Though I’m worried that we may have another market reversal later in the second quarter, I very much doubt that is going to take us back to the lows that we saw recently.
Q: Now that we have stepped into this series, it is going to be a big one. There is earnings, lots of policy announcements as well both from RBI and Fed. What is the base-case scenario you are working with for the market?
Shah: The recent lows that we had tested would not get re-tested. That’s the base-case situation because we seem to have moved about 10% higher from there. The first set of earnings would clearly come out from technology companies. I don’t think there is going to be significant disappointments on that front. Most IT services companies will continue to give good guidance or very robust guidance about their prospects for next year. So, the earnings season will be put into good motion. There are too many expectations on the credit policy.
If at all a segment had some expectations about rate cuts, with the latest inflation data, those kinds of expectations would have gone into the background. We are getting into this whole set of developments with virtually no expectations. If at all there might be some positives surprises only during the May and June where a lot of the non-technology companies would start coming out with their results. It is quite possible that we might face some amount of disappointments in those kinds of months. Those companies may exert some caution in terms of their expectations for the new financial year.
May be April looks a lot better than what the last 2-3 months have been but I am not too sure whether that’s going to be the case for the next one-quarter or so.
Q: What would your preferred spaces in India be right now?
Parker: I continue to see foreign direct investment flow into the infrastructure sector. Our client base is still very interested in investing in infrastructure in India. If one looks at Indian technology companies, I do think corporate earnings growth is going to be stronger than the earnings growth we have seen in technology companies in the US or Europe. The market’s reaction to the Oracle numbers that we had recently was disappointing. If anything, there is going to be a switch in global corporate earnings growth in technology in favour of the Indian tech sector.
The third area to highlight is that although consumption in India may moderate somewhat inline with the moderation in overall economy, we still see consumption in markets like India remaining very robust, relative to consumption in say Europe or the States. So, that’s going to be an area, which is interesting.
In terms of valuations, this is an area where we are seeing clear client flows. There is more interest in private equity than in publicly-listed equity. Although the ratio of market upside to downside is now positive whereas in the first three-months of this year it was negative. I do think the upside on the publicly listed market is probably fairly limited. The possibly upside from these levels is plus or minus 5% for the year as a whole. The upside is perhaps of 10% from here.
We are seeing strong interest in private equity. That’s because the multiples, the cost of actually investing in India is more attractive to overseas investors
Source: Moneycontrol.com
Stocks to watch: Infosys, Tata Steel
What began as a quiet day has ended with a bang. The indices were trading in a range for most of the session before a sharp spurt in the last hour of trade.The Nifty closed at 4,942 up 112 points, while the Sensex shut shop at 16,371 up 356 points.
Technical Analyst Ashwani Gujral is positive on Infosys and Tata Steel.
“When the bad inflation numbers came, the market tried to decline but could not drop below 4,800 and decisively below 16,000. When the market does not drop on bad news, that means it’s going up. So, that was a clear signal that this market intends to break out above 4,900 and we would carry positions from here and expect the market to touch 5,050-5,100 on the Nifty next week,” said Gujral.
“Even the midcaps and the smallcaps would bounce back. But how sustainable would that be depends because above 5,050-5,100, lot of action would again shift to the better quality midcaps. Right now, everything is bouncing 10-20% because it’s been beaten up so much. But overall midcap and smallcaps tend to take much longer then the largecaps. So, your trade has to be in the largecaps around 5,050-5,100. You need to take a fresh view in terms of what kind of strength the market is showing,” he added.
Here’s how Ashwani Gujral views the stocks on board:
On Tata Steel and Infosys:
Technology seems to be showing a lot of strength both on the midcap and the largecap. Tech is bottoming out and if US markets are strong, it tends to have an impact on technology; Infosys could head up to Rs 1,700-1,750. That is the region from where it broke down from and consistently on good days it tended to do well.
Even on Tata Steel, Rs 650 is a good support and probably Rs 800 could be a decent target on this one.
On ICICI Bank, SBI, HDFC:
ICICI Bank could probably test Rs 1,000 and HDFC could get back up to Rs 1,550-1,600, State Bank of India can back up to Rs 2,000. So, there will be across the board rally. But these stocks will probably not get to new highs.
Source: Moneycontrol.com
Technical Analyst Ashwani Gujral is positive on Infosys and Tata Steel.
“When the bad inflation numbers came, the market tried to decline but could not drop below 4,800 and decisively below 16,000. When the market does not drop on bad news, that means it’s going up. So, that was a clear signal that this market intends to break out above 4,900 and we would carry positions from here and expect the market to touch 5,050-5,100 on the Nifty next week,” said Gujral.
“Even the midcaps and the smallcaps would bounce back. But how sustainable would that be depends because above 5,050-5,100, lot of action would again shift to the better quality midcaps. Right now, everything is bouncing 10-20% because it’s been beaten up so much. But overall midcap and smallcaps tend to take much longer then the largecaps. So, your trade has to be in the largecaps around 5,050-5,100. You need to take a fresh view in terms of what kind of strength the market is showing,” he added.
Here’s how Ashwani Gujral views the stocks on board:
On Tata Steel and Infosys:
Technology seems to be showing a lot of strength both on the midcap and the largecap. Tech is bottoming out and if US markets are strong, it tends to have an impact on technology; Infosys could head up to Rs 1,700-1,750. That is the region from where it broke down from and consistently on good days it tended to do well.
Even on Tata Steel, Rs 650 is a good support and probably Rs 800 could be a decent target on this one.
On ICICI Bank, SBI, HDFC:
ICICI Bank could probably test Rs 1,000 and HDFC could get back up to Rs 1,550-1,600, State Bank of India can back up to Rs 2,000. So, there will be across the board rally. But these stocks will probably not get to new highs.
Source: Moneycontrol.com
Friday, March 28, 2008
Tata Motors may underperform in near-term
Raamdeo Agrawal, Director and Co-founder of Motilal Oswal Securities says of the JLR deal, that the Tatas may find it tough to fund the deal and he expects the stock to underperform in the ner-term.
On the other hand, he said the inflation situation is uncomfortable and would put pressure on growth. Also, markets may not run away, but volatility has peaked.
He is looking at 20-21% earnings growth in Q4.
Private sector banks are trading at attractive valuations and he sees opportunity to buy ICICI Bank and HDFC Bank. It's also time to buy large cap IT stocks like TCS and Infosys, he thinks.
Excerpts from CNBC-TV18’s exclusive interview with Raamdeo Agrawal:
Q: What do you make of this deal, Tata Motors?
A: I think the financial details are not too much out there; except that they are about USD 13-14 billion turnover kind of brands both together and I believe that Land Rover is quite profitable and Jaguar is some kind of a financially struggling brand. But then combined, it is profitable at the margin.
So the price, which is paid about USD 2.3 billlion is in the backdrop of a global slowdown for durables and generally the developed markets are slowing down. So in that kind of situation, it looks to be a very tough business to make it financially viable more particular in the next 12-18 months or two years.
So for a parent company, it will be quite a challenging task for the next 4-6 quarters in terms of funding the deal per se because of the cost of funding; due to the current credit squeeze, the cost of even tweleve months money of USD 3 billion- could be significantly high - it might be as high as 9%-10%. So I am not saying where exactly the value will be there for the shareholders at this juncture.
Q: Do you see the stock underperforming as it has over the last few weeks since the news of the deal came in over the foreseeable future then?
A: Yes, because what happens is that since it is very large - USD 12-14 billion and you have UK cost structure, which we have to figure out - what's happening there and what kind of impact it would have; one goes into an uncertain world. Even if it is profitable, one keeps apprehending how profitable and what is the volatility in their earnings and things like that. So in that kind of uncertain atmosphere, people try to shy away from this stock. It generally doesn’t workout well for the short-term movements of the stock unless the market sees very clearly the rational for this acquisition in the short run.
Q: So it wouldn’t be a top pick in the auto basket right now?
A: Definitely not, in the sense that one is that locally also times are challenging because of credit squeeze and now with this, there is further uncertainty attached to the total earnings outlook for next 12-months at least. So I wouldn’t gather courage to buy into the stock at this juncture.
Q: What's your own take on the kind of sluggish macro-economic numbers which have been coming in and which sectors would you stay a bit cagey about or cautious about if indeed this kind of an economic slowdown were to manifest itself over the next 3-4 quarters?
A: I think because of a lot of changes in commodity prices, currency markets and all the markets are in a lot of volatility. I don’t remember in recent times this level of volatility across all the markets. It is very important that we look at a very bottom-up kind of thing and every telecom company is not good. One steel company could be very different from another steel company because what is the level of raw material linkage one has of what is the product mix and what is the volumes growth plans? So one has to go bottoms-up and figure out which businesses are extremely well-aligned and actually it is benefited from the current volatility rather than be completely suffering from this current situation. It is not a question of sector, but it is a question of a few companies where one could remain invested.
Q: How do you see this whole inflation interest rate scenario pan out over the next six months and what impact do you think it would have on the equity markets and sentiment?
A: Definitely it is not looking very positive because inflation in China is also going up day by day - it is up 8%-8.5% and we have also seen very new level of inflation at about 6%. So things do not look easy at all at this juncture and we are yet to see the full price of petroleum products passing through to the consumers. Food prices also - we are lucky to have our own food self sufficiency in rice and wheat. But we are going to see some passing through of even that in the days to come. So inflation side does not look comfortable at all and it has been an election year. But at the same time, I think Finance Ministry and RBI will try their best to deliver at least 8% kind of growth with whatever 5%-6% inflation we can have. So it is going to be a very challenging time to deliver growth at 5%-6% inflation.
Q: Put all this together- what you have just told us about sluggishness, inflation and the global factors are of course there- what do you expect to see from the market over the next two-three quarters?
A: I am not too optimistic that markets will certainly run away. But I think we are at the peak of volatility and if US interest rates has any meaning for the global interest rate benchmarks - in that case they are at the lowest like 2-2.25% and some more cuts to come in. US markets could rally very strongly and these are not the times-particularly after the 30% decline in the stock markets here-that one should be very bearish on the market. But I am not very bullish on the markets move in next three-four months, because this level of volatility just makes you nervous.
Q: What do you expect to hear from earnings, which we are about to enter another week’s time? There have been lots of apprehensions this time, do you think we will get positive surprises or at best earnings will be in-line?
A: Some positive surprises will be there. But this derivatives part of it, we don’t know which companies are going to provide it and which companies have actual problems or which banks have problems. That is one thing. But overall according to the rough estimates that we have, we are looking at about 20-22% kind of earnings growth which is looking better than what we thought would be looking at Q3 earnings. So earnings side should broadly be alright for the Q4 - that is the one silver lining on which the markets look to be reasonably priced.
Q: How are you approaching this whole private banking space? Stocks have fallen 40-60% - ICICI Bank halved in just about one month - are you a buyer there or are you also apprehensive of bad news tumbling out?
A: There is lot of misinterpretation of so-called accounting, which is there about mark-to-market kind of thing. But there was a froth in the valuations to start with and with the market and these kind of fear building in clearly, these stocks have come to a level which is very attractive to buying for investing. I don’t see much of a challenge, if somebody is willing to see 10-15% fluctuation from the current price, these are the opportunities to buy into HDFC Bank or ICICI Bank and these things have fallen 30-40% from top. So I think the future for banking is very good and future for private banks in India is even better. I see this as an opportunity to accumulate these stocks.
Q: What about IT, in about ten days time we will hear for the guidance for next year from Infosys, would you be owning IT stocks before that event?
A: Yes, I think IT companies have come to a level of no growth kind of situation. Many of the companies are available at 12-13-14 times except Infosys or TCS, which might be at about 17-18 times trailing four quarters; for the next year I think they are clearly at about 14-15 times. So my sense is that IT is completely out of favour and these are times to buy great companies in IT. I would not go for bottom fishing with very small companies but I would seriously look at large companies like TCS or Infosys.
Q: Give us one final word on how you are gauging general sentiment - you talk to a lot of clients from PMS HNIs to retail are they in that kind of frame of mind where they will use rallies to just get out of the market or do you think they can ride out this difficult period and still not lose their faith in equities?
A: No, I think everybody wants to see what has happened in last one year -repairing itself in the sense that we should have moved upwards into the market to 17,000 and 20,000 and that aspiration is still there and that is holding back a lot of people from selling out the stocks, which they are stuck with.
There are a lot of hopes and at the same time, when they see all these headlines, there is lot of fear that we could be in for trouble. But broadly speaking, there is a very strong fear in the market my sense is that earnings are intact and nobody knows the big picture and how things are going to shape up. I never thought that oil will go to USD 111/bbl so quickly. So there are lot of things. But broadly companies are in good shape, earnings are intact, valuations have become much more reasonable - maybe after four years or five years of bull run, we may have a little more modest ’08-’09 with flat or maybe a 5%-10% kinds of return or depreciation and that should be fine.
Source: Moneycontrol.com
On the other hand, he said the inflation situation is uncomfortable and would put pressure on growth. Also, markets may not run away, but volatility has peaked.
He is looking at 20-21% earnings growth in Q4.
Private sector banks are trading at attractive valuations and he sees opportunity to buy ICICI Bank and HDFC Bank. It's also time to buy large cap IT stocks like TCS and Infosys, he thinks.
Excerpts from CNBC-TV18’s exclusive interview with Raamdeo Agrawal:
Q: What do you make of this deal, Tata Motors?
A: I think the financial details are not too much out there; except that they are about USD 13-14 billion turnover kind of brands both together and I believe that Land Rover is quite profitable and Jaguar is some kind of a financially struggling brand. But then combined, it is profitable at the margin.
So the price, which is paid about USD 2.3 billlion is in the backdrop of a global slowdown for durables and generally the developed markets are slowing down. So in that kind of situation, it looks to be a very tough business to make it financially viable more particular in the next 12-18 months or two years.
So for a parent company, it will be quite a challenging task for the next 4-6 quarters in terms of funding the deal per se because of the cost of funding; due to the current credit squeeze, the cost of even tweleve months money of USD 3 billion- could be significantly high - it might be as high as 9%-10%. So I am not saying where exactly the value will be there for the shareholders at this juncture.
Q: Do you see the stock underperforming as it has over the last few weeks since the news of the deal came in over the foreseeable future then?
A: Yes, because what happens is that since it is very large - USD 12-14 billion and you have UK cost structure, which we have to figure out - what's happening there and what kind of impact it would have; one goes into an uncertain world. Even if it is profitable, one keeps apprehending how profitable and what is the volatility in their earnings and things like that. So in that kind of uncertain atmosphere, people try to shy away from this stock. It generally doesn’t workout well for the short-term movements of the stock unless the market sees very clearly the rational for this acquisition in the short run.
Q: So it wouldn’t be a top pick in the auto basket right now?
A: Definitely not, in the sense that one is that locally also times are challenging because of credit squeeze and now with this, there is further uncertainty attached to the total earnings outlook for next 12-months at least. So I wouldn’t gather courage to buy into the stock at this juncture.
Q: What's your own take on the kind of sluggish macro-economic numbers which have been coming in and which sectors would you stay a bit cagey about or cautious about if indeed this kind of an economic slowdown were to manifest itself over the next 3-4 quarters?
A: I think because of a lot of changes in commodity prices, currency markets and all the markets are in a lot of volatility. I don’t remember in recent times this level of volatility across all the markets. It is very important that we look at a very bottom-up kind of thing and every telecom company is not good. One steel company could be very different from another steel company because what is the level of raw material linkage one has of what is the product mix and what is the volumes growth plans? So one has to go bottoms-up and figure out which businesses are extremely well-aligned and actually it is benefited from the current volatility rather than be completely suffering from this current situation. It is not a question of sector, but it is a question of a few companies where one could remain invested.
Q: How do you see this whole inflation interest rate scenario pan out over the next six months and what impact do you think it would have on the equity markets and sentiment?
A: Definitely it is not looking very positive because inflation in China is also going up day by day - it is up 8%-8.5% and we have also seen very new level of inflation at about 6%. So things do not look easy at all at this juncture and we are yet to see the full price of petroleum products passing through to the consumers. Food prices also - we are lucky to have our own food self sufficiency in rice and wheat. But we are going to see some passing through of even that in the days to come. So inflation side does not look comfortable at all and it has been an election year. But at the same time, I think Finance Ministry and RBI will try their best to deliver at least 8% kind of growth with whatever 5%-6% inflation we can have. So it is going to be a very challenging time to deliver growth at 5%-6% inflation.
Q: Put all this together- what you have just told us about sluggishness, inflation and the global factors are of course there- what do you expect to see from the market over the next two-three quarters?
A: I am not too optimistic that markets will certainly run away. But I think we are at the peak of volatility and if US interest rates has any meaning for the global interest rate benchmarks - in that case they are at the lowest like 2-2.25% and some more cuts to come in. US markets could rally very strongly and these are not the times-particularly after the 30% decline in the stock markets here-that one should be very bearish on the market. But I am not very bullish on the markets move in next three-four months, because this level of volatility just makes you nervous.
Q: What do you expect to hear from earnings, which we are about to enter another week’s time? There have been lots of apprehensions this time, do you think we will get positive surprises or at best earnings will be in-line?
A: Some positive surprises will be there. But this derivatives part of it, we don’t know which companies are going to provide it and which companies have actual problems or which banks have problems. That is one thing. But overall according to the rough estimates that we have, we are looking at about 20-22% kind of earnings growth which is looking better than what we thought would be looking at Q3 earnings. So earnings side should broadly be alright for the Q4 - that is the one silver lining on which the markets look to be reasonably priced.
Q: How are you approaching this whole private banking space? Stocks have fallen 40-60% - ICICI Bank halved in just about one month - are you a buyer there or are you also apprehensive of bad news tumbling out?
A: There is lot of misinterpretation of so-called accounting, which is there about mark-to-market kind of thing. But there was a froth in the valuations to start with and with the market and these kind of fear building in clearly, these stocks have come to a level which is very attractive to buying for investing. I don’t see much of a challenge, if somebody is willing to see 10-15% fluctuation from the current price, these are the opportunities to buy into HDFC Bank or ICICI Bank and these things have fallen 30-40% from top. So I think the future for banking is very good and future for private banks in India is even better. I see this as an opportunity to accumulate these stocks.
Q: What about IT, in about ten days time we will hear for the guidance for next year from Infosys, would you be owning IT stocks before that event?
A: Yes, I think IT companies have come to a level of no growth kind of situation. Many of the companies are available at 12-13-14 times except Infosys or TCS, which might be at about 17-18 times trailing four quarters; for the next year I think they are clearly at about 14-15 times. So my sense is that IT is completely out of favour and these are times to buy great companies in IT. I would not go for bottom fishing with very small companies but I would seriously look at large companies like TCS or Infosys.
Q: Give us one final word on how you are gauging general sentiment - you talk to a lot of clients from PMS HNIs to retail are they in that kind of frame of mind where they will use rallies to just get out of the market or do you think they can ride out this difficult period and still not lose their faith in equities?
A: No, I think everybody wants to see what has happened in last one year -repairing itself in the sense that we should have moved upwards into the market to 17,000 and 20,000 and that aspiration is still there and that is holding back a lot of people from selling out the stocks, which they are stuck with.
There are a lot of hopes and at the same time, when they see all these headlines, there is lot of fear that we could be in for trouble. But broadly speaking, there is a very strong fear in the market my sense is that earnings are intact and nobody knows the big picture and how things are going to shape up. I never thought that oil will go to USD 111/bbl so quickly. So there are lot of things. But broadly companies are in good shape, earnings are intact, valuations have become much more reasonable - maybe after four years or five years of bull run, we may have a little more modest ’08-’09 with flat or maybe a 5%-10% kinds of return or depreciation and that should be fine.
Source: Moneycontrol.com
Thursday, March 27, 2008
Stocks to watch: Yes Bank
The markets ended the day on a flat note amid a choppy and a rangebound session on the F&O expiry day. The broader markets were relative outperformers. The cues were not very encouraging as most of the indices closed in red with moderate losses. Sensex closed down 71.27 points or 0.44% at 16015.56, and the Nifty up 1.40 points or 0.03% at 4830.25.
Sudarshan Sukhani of Technical Trends is positive on Yes Bank
This is how Sudarshan Sukhani views stocks on board:
On Yes Bank:
Yes Bank moved up from Rs 120 to Rs 190 and today it is down Rs 5. So anyone who is scalping for that Rs 5 decline is not going to make money but somebody who had the patience to ride the uptrend nobody knew it would reach Rs 190 but anyone with the patience to ride a trend is likely to make more money in the current circumstances.
Disclosures: It is safe to assume that my clients & I may have an interest in the stocks/sectors discussed.
Source: Moneycontrol.com
Sudarshan Sukhani of Technical Trends is positive on Yes Bank
This is how Sudarshan Sukhani views stocks on board:
On Yes Bank:
Yes Bank moved up from Rs 120 to Rs 190 and today it is down Rs 5. So anyone who is scalping for that Rs 5 decline is not going to make money but somebody who had the patience to ride the uptrend nobody knew it would reach Rs 190 but anyone with the patience to ride a trend is likely to make more money in the current circumstances.
Disclosures: It is safe to assume that my clients & I may have an interest in the stocks/sectors discussed.
Source: Moneycontrol.com
Tuesday, March 25, 2008
Sensex clocks 2nd highest point gain; up over 6%
It was a day of absolute strength for the markets as they closed near the high point of the day breaching some important psychological levels. Sensex has breached 16,000 mark while the Nifty closed above 4850 levels. Both Sensex and Nifty up 6% each. It was the second biggest single day point gain for Sensex. Heavy buying was seen in scrips across sectors.
The broader markets are also following the suit and the midcap index closed with a bump up of 6%.
All the BSE sector indices closed in green; IT, realty, bank stocks were among the top gainers of the day.
The cues from global peers were encouraging as most of the Asian markets ended in green as US market picked up another triple-digit gain yesterday with the Dow gaining 187 points.
JP Associates, Reliance Energy, DLF, Unitech, ICICI Bank, Tata Power, TCS Infosys, Satyam, Reliance Communication, Tata Steel, SAIL, were among the gainers.HCL Tech, HDFC Bank, BHEL, ABB, L&T, Hindalco also ended higher.
Sensex closed up 928.09 points or 6.07% at 16217.49, and the Nifty up 267.65 points or 5.81% at 4877.50.
About 2180 shares have advanced, 818 shares declined, and 62 shares are unchanged.
The BSE Midcap Index ended at 6,174.49 up 6.4%.
The BSE Smallcap Index ended at 7,284.64 up 5%.
The BSE Bankex closed at 8,371.34 up 8%. HDFC, HDFC Bank, IOB, ICICI Bank, Centurion bank, Axis closed in green.
The BSE Capital Goods Index closed at 13,867.60 up 5%. L&T, ABB, BHEL, Suzlon, Reliance Infra, Siemens, Triveni Engineering closed higher.
The BSE Auto Index closed at 4,582.05 up 4%. Apollo Tyres, Escorts, Ashok Leyland, Hind Motors closed higher.
The BSE Metal Index closed at 13,607.64 up 6.4%. SAIL, JSW Steel, Jindal Steel, Jindal Stainless, Hind Zinc closed higher.
The BSE FMCG Index closed up 2% at 2,226.78. HUL, Colgate, ITC, Nestle, Dabur ended higher
BSE Oil and Gas Index closed at 10,308.80 up 6%. Cairn, Reliance, RPL, BPCL, HPCL, IOC, Reliance Natura, GAIL ended higher.
The BSE IT Index was at 3,686.35 up 8%. HCL Tech, Infosys, Tech mahindra, TCS, Tech Mahindra closed higher.
The NSE cash turnover was at Rs 14168.97 crore and the NSE F&O turnover was at Rs 66627.57 crore. The BSE cash turnover was Rs 6863.88 crore. Total market wide turnover was at Rs 87660.42 crore.
2:59 pm: It has been a day of absolute strength for markets led by the frontliners. Heavy buying seen in scrips across sectors. Both Sensex and Nifty up 6% each. The broader markets are also follwing the suit and the midcap index is trading with a bump up of 6%. Sensex has breached 16,000 mark while the Nifty is above 4800 levels.
At 14.59 hrs IST, the Sensex is up 806.82 points or 5.28% at 16096.22, and the Nifty up 253.45 points or 5.50% at 4863.30.
About 2098 shares have advanced, 894 shares declined, and 68 shares are unchanged.The breadth is positive with midcap and smallcap indices trading firm. All the BSE sector indices are in green; IT, realty, bank stocks are among the top gainers of the day.
BSE Realty index is up 7.5%; BSE bankex is up 6%, midcap index index is up 4.2% and smallcap index is up 3.5%.
Most of the Asian markets ended in green as US market picked up another triple-digit gain yesterday with the Dow gaining 187 points.
Top gainers on the Sensex are ICICI Bank at Rs 880.00 up 9.38%, HDFC at Rs 2,586.00 up 8.47% and Infosys at Rs 1,460.05 up 7.25%.
Top gainers on the Nifty are HDFC at Rs 2,616.00 up 9.93%, Unitech at Rs 276.35 up 9.16% and Tata Power at Rs 1,191.00 up 8.83%.
Most active shares on BSE are Axis Bank, HDFC and GSS America Inf.
Top percentage losers on the BSE are IOL Netcom, Securities Cap and Trishakti Elect up 10% each.
Mkts rally: Sensex hits 16,200; Nifty above 4800
1:49 pm: The markets continue to trade stronger as all BSE sectoral indices have witnessed buying interest. The realty and banking indices have outperformed the other sectoral indices and is up nearly 8% each. All of BSE Sensex's 30 stocks are trading in green.
At 1:49 hrs IST, the Sensex is up 903.67 points or 5.91% at 16193.07, and the Nifty up 259.70 points or 5.63% at 4869.55.
About 2119 shares have advanced, 883 shares declined, and 58 shares are unchanged.
The breadth is positive with midcap and smallcap indices trading firm. All the BSE sector indices are in green; IT, realty, bank stocks are among the top gainers of the day.
BSE Realty index is up 7.5%; BSE bankex is up 6%, midcap index index is up 4.2% and smallcap index is up 3.5%.
Most of the Asian markets ended in green as US market picked up another triple-digit gain yesterday with the Dow gaining 187 points.
Top gainers on the Sensex are ICICI Bank at Rs 880.00 up 9.38%, HDFC at Rs 2,586.00 up 8.47% and Infosys at Rs 1,460.05 up 7.25%.
Top gainers on the Nifty are HDFC at Rs 2,616.00 up 9.93%, Unitech at Rs 276.35 up 9.16% and Tata Power at Rs 1,191.00 up 8.83%.
Most active shares on BSE are Axis Bank, HDFC and GSS America Inf.
Top percentage losers on the BSE are IOL Netcom, Securities Cap and Trishakti Elect up 10% each.
Mkts rally: Sensex breaches 16000; Nifty above 4600
12:33 pm: It has been a day of absolute strength for markets led by the frontliners. Heavy buying seen in scrips across sectors. Both Sensex and Nifty up over 4.5% each. The broader markets are also follwing the suit and the midcap index is trading with a bump up of 4%. Sensex has breached 16,000 mark while the Nifty is above 4800 levels.
The breadth is positive with midcap and smallcap indices trading firm. All the BSE sector indices are in green; IT, realty, bank stocks are among the top gainers of the day.
BSE Realty index is up 7.5%; BSE bankex is up 6%, midcap index index is up 4.2% and smallcap index is up 3.5%.
Most of the Asian markets ended in green as US market picked up another triple-digit gain yesterday with the Dow gaining 187 points.
At 12.33 hrs IST, the Sensex is up 692.62 points or 4.53% at 15982.02, and the Nifty up 206.50 points or 4.48% at 4816.35.
About 1950 shares have advanced, 1051 shares declined, and 59 shares are unchanged.
JP Associates, Reliance Energy up over 10%, followed by DLF, Unitech, ICICI Bank, Tata Power, TCS were up 8% each. Infosys, Satyam, Reliance Communication were up over 6%. Tata Steel, SAIL, Unitech are among the gainers up over 5% each.
HCL Tech, HDFC Bank, BHEL, ABB, L&T, Hindalco were among the other gainers.
Axis, DLF, JP Associates, HDFC, Reliance and ICICI Bank are among the most active stocks on the bourses.
Mkt trades with hefty gains: Rel Enegy, ICICI Bk up
11:15 am: The markets are trading with hefty gains on heavy buying seen in scrips across sectors. The frontliners have perked up more with both Sensex and Nifty up nearly 4% each. The broader markets are also follwing the suit and the midcap index is trading with a bump up of 3.5%.
Most of the Asian markets were in green as US market picked up another triple-digit gain yesterday with the Dow gaining 187 points.
Sensex is eyeing the 16,000 mark while the Nifty is approaching 4800 levels. At 11.15 hrs IST, the Sensex is up 576.41 points or 3.77% at 15865.81, and the Nifty up 179.20 points or 3.89% at 4789.05.
About 1809 shares have advanced, 1169 shares declined, and 82 shares are unchanged.
The breadth is positive with midcap and smallcap indices trading firm. All the BSE sector indices are in green; IT, realty, bank stocks are among the top gainers of the day.
Rel Energy, ICICI Bank, Tata Power, JP associates are up over 7%. Tata Steel, SAIL, Unitech, Reliance Communication are among the gainers up over 5% each.
HCL Tech, DLF, Infosys, HDFC Bank, BHEL, ABB, L&T, Tata Steel, Hindalco were among the other gainers.
Rupee is trading strong at Rs 40.11 per dollar
Mkt trades higher: IT, realty, bank stocks surge
The markets are trading strong on the back of encouraging global cues. Nifty is trading with gains of over 100 points and it is 400 points plus gain for the Sensex. The breadth is positive with midcap and smallcap indices trading firm. All the BSE sector indices are in green; IT, realty, bank stocks are among the top gainers of the day.
At 10.06 hrs IST, the Sensex is up 378.97 points or 2.48% at 15668.37, and the Nifty up 133.85 points or 2.90% at 4743.70.
About 1271 shares have advanced, 1725 shares declined, and 64 shares are unchanged.
Reliance Energy, HCL Tech, Unitech, DLF, ICICI Bank, Infosys, HDFC Bank, BHEL, ABB, L&T, Tata Steel, Hindalco were among the gainers.
Rupee is trading strong at Rs 40.13 per dollar
Asian markets were trading higher. Japan's Nikkei rose 1.33%, Hong Kong's Hang Seng gained 3.32%, Singapore's Straits Times added 1.66%, South Korea's Seoul Composite was up 0.97%. However, Taiwan's Taiwan Weighted slipped 0.93%. The US market picked up another triple-digit gain with the Dow gaining 187 points on the day closing at it’s highest level of this month, the Nasdaq up 68 points. US also saw better home sales numbers.
Market cues:
* FIIs net buy $133 mn in equity on Mar 19
* MFs net sell Rs 291.5 cr in equity on Mar 19
* NSE F&O Open Int up by Rs 1017 crore at Rs 64395 crore
F&O cues:
* Futures Open Int up by Rs 448 crore, Options Open Int up by Rs 569 crore
* Nifty Mar Futures shed 26 lakh, Apr Futures add 30 lakh shares in Open Int
* Nifty Open Int PCR unchanged at 0.86
* Nifty Puts, Calls add 6 lakh shares each in Open Int
* Nifty 4500 Put adds 1.7 lakh shares in Open Int
* Nifty 4600 Put adds 1.4 lakh shares in Open Int
* Nifty 4600 Call adds 3.9 lakh shares in Open Int
* Stock Futures Open Int unchanged
Source: Moneycontrol.com
The broader markets are also following the suit and the midcap index closed with a bump up of 6%.
All the BSE sector indices closed in green; IT, realty, bank stocks were among the top gainers of the day.
The cues from global peers were encouraging as most of the Asian markets ended in green as US market picked up another triple-digit gain yesterday with the Dow gaining 187 points.
JP Associates, Reliance Energy, DLF, Unitech, ICICI Bank, Tata Power, TCS Infosys, Satyam, Reliance Communication, Tata Steel, SAIL, were among the gainers.HCL Tech, HDFC Bank, BHEL, ABB, L&T, Hindalco also ended higher.
Sensex closed up 928.09 points or 6.07% at 16217.49, and the Nifty up 267.65 points or 5.81% at 4877.50.
About 2180 shares have advanced, 818 shares declined, and 62 shares are unchanged.
The BSE Midcap Index ended at 6,174.49 up 6.4%.
The BSE Smallcap Index ended at 7,284.64 up 5%.
The BSE Bankex closed at 8,371.34 up 8%. HDFC, HDFC Bank, IOB, ICICI Bank, Centurion bank, Axis closed in green.
The BSE Capital Goods Index closed at 13,867.60 up 5%. L&T, ABB, BHEL, Suzlon, Reliance Infra, Siemens, Triveni Engineering closed higher.
The BSE Auto Index closed at 4,582.05 up 4%. Apollo Tyres, Escorts, Ashok Leyland, Hind Motors closed higher.
The BSE Metal Index closed at 13,607.64 up 6.4%. SAIL, JSW Steel, Jindal Steel, Jindal Stainless, Hind Zinc closed higher.
The BSE FMCG Index closed up 2% at 2,226.78. HUL, Colgate, ITC, Nestle, Dabur ended higher
BSE Oil and Gas Index closed at 10,308.80 up 6%. Cairn, Reliance, RPL, BPCL, HPCL, IOC, Reliance Natura, GAIL ended higher.
The BSE IT Index was at 3,686.35 up 8%. HCL Tech, Infosys, Tech mahindra, TCS, Tech Mahindra closed higher.
The NSE cash turnover was at Rs 14168.97 crore and the NSE F&O turnover was at Rs 66627.57 crore. The BSE cash turnover was Rs 6863.88 crore. Total market wide turnover was at Rs 87660.42 crore.
2:59 pm: It has been a day of absolute strength for markets led by the frontliners. Heavy buying seen in scrips across sectors. Both Sensex and Nifty up 6% each. The broader markets are also follwing the suit and the midcap index is trading with a bump up of 6%. Sensex has breached 16,000 mark while the Nifty is above 4800 levels.
At 14.59 hrs IST, the Sensex is up 806.82 points or 5.28% at 16096.22, and the Nifty up 253.45 points or 5.50% at 4863.30.
About 2098 shares have advanced, 894 shares declined, and 68 shares are unchanged.The breadth is positive with midcap and smallcap indices trading firm. All the BSE sector indices are in green; IT, realty, bank stocks are among the top gainers of the day.
BSE Realty index is up 7.5%; BSE bankex is up 6%, midcap index index is up 4.2% and smallcap index is up 3.5%.
Most of the Asian markets ended in green as US market picked up another triple-digit gain yesterday with the Dow gaining 187 points.
Top gainers on the Sensex are ICICI Bank at Rs 880.00 up 9.38%, HDFC at Rs 2,586.00 up 8.47% and Infosys at Rs 1,460.05 up 7.25%.
Top gainers on the Nifty are HDFC at Rs 2,616.00 up 9.93%, Unitech at Rs 276.35 up 9.16% and Tata Power at Rs 1,191.00 up 8.83%.
Most active shares on BSE are Axis Bank, HDFC and GSS America Inf.
Top percentage losers on the BSE are IOL Netcom, Securities Cap and Trishakti Elect up 10% each.
Mkts rally: Sensex hits 16,200; Nifty above 4800
1:49 pm: The markets continue to trade stronger as all BSE sectoral indices have witnessed buying interest. The realty and banking indices have outperformed the other sectoral indices and is up nearly 8% each. All of BSE Sensex's 30 stocks are trading in green.
At 1:49 hrs IST, the Sensex is up 903.67 points or 5.91% at 16193.07, and the Nifty up 259.70 points or 5.63% at 4869.55.
About 2119 shares have advanced, 883 shares declined, and 58 shares are unchanged.
The breadth is positive with midcap and smallcap indices trading firm. All the BSE sector indices are in green; IT, realty, bank stocks are among the top gainers of the day.
BSE Realty index is up 7.5%; BSE bankex is up 6%, midcap index index is up 4.2% and smallcap index is up 3.5%.
Most of the Asian markets ended in green as US market picked up another triple-digit gain yesterday with the Dow gaining 187 points.
Top gainers on the Sensex are ICICI Bank at Rs 880.00 up 9.38%, HDFC at Rs 2,586.00 up 8.47% and Infosys at Rs 1,460.05 up 7.25%.
Top gainers on the Nifty are HDFC at Rs 2,616.00 up 9.93%, Unitech at Rs 276.35 up 9.16% and Tata Power at Rs 1,191.00 up 8.83%.
Most active shares on BSE are Axis Bank, HDFC and GSS America Inf.
Top percentage losers on the BSE are IOL Netcom, Securities Cap and Trishakti Elect up 10% each.
Mkts rally: Sensex breaches 16000; Nifty above 4600
12:33 pm: It has been a day of absolute strength for markets led by the frontliners. Heavy buying seen in scrips across sectors. Both Sensex and Nifty up over 4.5% each. The broader markets are also follwing the suit and the midcap index is trading with a bump up of 4%. Sensex has breached 16,000 mark while the Nifty is above 4800 levels.
The breadth is positive with midcap and smallcap indices trading firm. All the BSE sector indices are in green; IT, realty, bank stocks are among the top gainers of the day.
BSE Realty index is up 7.5%; BSE bankex is up 6%, midcap index index is up 4.2% and smallcap index is up 3.5%.
Most of the Asian markets ended in green as US market picked up another triple-digit gain yesterday with the Dow gaining 187 points.
At 12.33 hrs IST, the Sensex is up 692.62 points or 4.53% at 15982.02, and the Nifty up 206.50 points or 4.48% at 4816.35.
About 1950 shares have advanced, 1051 shares declined, and 59 shares are unchanged.
JP Associates, Reliance Energy up over 10%, followed by DLF, Unitech, ICICI Bank, Tata Power, TCS were up 8% each. Infosys, Satyam, Reliance Communication were up over 6%. Tata Steel, SAIL, Unitech are among the gainers up over 5% each.
HCL Tech, HDFC Bank, BHEL, ABB, L&T, Hindalco were among the other gainers.
Axis, DLF, JP Associates, HDFC, Reliance and ICICI Bank are among the most active stocks on the bourses.
Mkt trades with hefty gains: Rel Enegy, ICICI Bk up
11:15 am: The markets are trading with hefty gains on heavy buying seen in scrips across sectors. The frontliners have perked up more with both Sensex and Nifty up nearly 4% each. The broader markets are also follwing the suit and the midcap index is trading with a bump up of 3.5%.
Most of the Asian markets were in green as US market picked up another triple-digit gain yesterday with the Dow gaining 187 points.
Sensex is eyeing the 16,000 mark while the Nifty is approaching 4800 levels. At 11.15 hrs IST, the Sensex is up 576.41 points or 3.77% at 15865.81, and the Nifty up 179.20 points or 3.89% at 4789.05.
About 1809 shares have advanced, 1169 shares declined, and 82 shares are unchanged.
The breadth is positive with midcap and smallcap indices trading firm. All the BSE sector indices are in green; IT, realty, bank stocks are among the top gainers of the day.
Rel Energy, ICICI Bank, Tata Power, JP associates are up over 7%. Tata Steel, SAIL, Unitech, Reliance Communication are among the gainers up over 5% each.
HCL Tech, DLF, Infosys, HDFC Bank, BHEL, ABB, L&T, Tata Steel, Hindalco were among the other gainers.
Rupee is trading strong at Rs 40.11 per dollar
Mkt trades higher: IT, realty, bank stocks surge
The markets are trading strong on the back of encouraging global cues. Nifty is trading with gains of over 100 points and it is 400 points plus gain for the Sensex. The breadth is positive with midcap and smallcap indices trading firm. All the BSE sector indices are in green; IT, realty, bank stocks are among the top gainers of the day.
At 10.06 hrs IST, the Sensex is up 378.97 points or 2.48% at 15668.37, and the Nifty up 133.85 points or 2.90% at 4743.70.
About 1271 shares have advanced, 1725 shares declined, and 64 shares are unchanged.
Reliance Energy, HCL Tech, Unitech, DLF, ICICI Bank, Infosys, HDFC Bank, BHEL, ABB, L&T, Tata Steel, Hindalco were among the gainers.
Rupee is trading strong at Rs 40.13 per dollar
Asian markets were trading higher. Japan's Nikkei rose 1.33%, Hong Kong's Hang Seng gained 3.32%, Singapore's Straits Times added 1.66%, South Korea's Seoul Composite was up 0.97%. However, Taiwan's Taiwan Weighted slipped 0.93%. The US market picked up another triple-digit gain with the Dow gaining 187 points on the day closing at it’s highest level of this month, the Nasdaq up 68 points. US also saw better home sales numbers.
Market cues:
* FIIs net buy $133 mn in equity on Mar 19
* MFs net sell Rs 291.5 cr in equity on Mar 19
* NSE F&O Open Int up by Rs 1017 crore at Rs 64395 crore
F&O cues:
* Futures Open Int up by Rs 448 crore, Options Open Int up by Rs 569 crore
* Nifty Mar Futures shed 26 lakh, Apr Futures add 30 lakh shares in Open Int
* Nifty Open Int PCR unchanged at 0.86
* Nifty Puts, Calls add 6 lakh shares each in Open Int
* Nifty 4500 Put adds 1.7 lakh shares in Open Int
* Nifty 4600 Put adds 1.4 lakh shares in Open Int
* Nifty 4600 Call adds 3.9 lakh shares in Open Int
* Stock Futures Open Int unchanged
Source: Moneycontrol.com
Avoid real estate sector
T.S.Harihar of Karvy Stock Broking advises to avoid real estate companies.
Harihar told CNBC-TV18, "The problem with real estate per say and I don’t distinguish much between the large and the small ones at this point of time, it is the fact that funds are not available. For any real estate company be it a Unitech or a DLF or a smaller company like Puravankara. The key issue is that funds are available for the development projects and with Unitech putting off its Singapore REIT issue, it raises a big question mark over the fund raising abilities of the real estate company, so that I think is going to weigh very heavily on real estate companies. Possibly as a sector I would avoid it at this point of time".
Source: Moneycontrol.com
Harihar told CNBC-TV18, "The problem with real estate per say and I don’t distinguish much between the large and the small ones at this point of time, it is the fact that funds are not available. For any real estate company be it a Unitech or a DLF or a smaller company like Puravankara. The key issue is that funds are available for the development projects and with Unitech putting off its Singapore REIT issue, it raises a big question mark over the fund raising abilities of the real estate company, so that I think is going to weigh very heavily on real estate companies. Possibly as a sector I would avoid it at this point of time".
Source: Moneycontrol.com
Markets not out of the woods yet
Ramesh Damani, Member, BSE, said the global rally in equities of the last few years seems to have ended for now. "The huge liquidity pumped in by Fed is causing the markets to rally, but problems in the US are not over. We hope to see the end of the pain, but market will test the patience of investors."
The run up in the last two days seems like a technical rally as of now, he said. "A lot of factors are still uncertain. We still see a lot of excesses in the system in many sectors, which needs to be removed."
According to Damani, rising inflation and advance tax numbers are not good. "This shows that the markets are not out of the woods yet."
Excerpts from CNBC-TV18’s exclusive interview with Ramesh Damani:
Q: When do you think will this pain end or is this just a relief rally?
A: It will be nice if it was the end of the pain. But markets are rarely so simple. We have had four years of a wonderful bull run and the market will now test the patience and convictions of all investors. This is a technical rally. It could take the market up to say the Nifty levels of 5,000 and maybe the corresponding Sensex levels. But at some it would peter out. It is not that it is going to go right back down and test the bottom. I think it will remain in a range. Then they will have to watch data like inflation, which is probably going to be bad, and a lot of other indicators for the market to look at. My sense is that this is just a technical rally at this point.
Q: What would convince you that we are about to form a bottom and are slowly getting out of the woods?
A: You could make a case for the B group, all the smallcaps and midcaps are already decimated. You are finding good value opportunities there. We tend to look quite aggressively at that space.
But if you look at the broader A group stock, the BSE 100 index for example, I can see huge examples of lofty valuations even at today’s prices, be it the power or realty sector, or financial companies. So, the bull markets always have a lot of excesses, and the excesses have to be rung out of the system. The market does not spare anybody, any stock or group any time. It will take the prices up for a while but you will have to pay on the downside for the excesses that have been committed on the upside.
A number of stocks in the last few days are down 20-30% from their peaks because of leveraged position unwinding or because of excess valuations. As the market starts to pick the wheat from the chaff, they will still find huge pockets of excesses in the A group. With interest rates not going to come down because of high inflation numbers and the advance tax collection being very poor this quarter, if you look at what the property companies paid, I think there is a sense that we are not out of the woods yet.
Q: How do you read the global situation? There is a feeling that maybe the US is not falling any more despite bad news and probably we have hit an intermediate bottom globally, which is giving us some confidence in the near-term. Do you read that as a positive or do you think that is also a technical pullback globally?
A: The first question is that the global bull market that we had in almost all asset classes and particularly in equities is over globally. That is pretty much the sense I have. The US has been surprisingly strong. But there is a strong tradition in the US when the Fed lowers interest rates as aggressively as they have done, then money flows to equities. As you are well aware the markets move one way or the other, they usually go up or down. It is hard for me to imagine a scenario in which the Dow would make a new high. It is almost 11-12% from its all-time high.
So, if it cannot go up further, it will then at some point go down. I would remain bearish just because of the huge liquidity that the Fed has pumped in, virtually sandbagging the markets with liquidity, which is pumped in this rally. Over a longer-term basis, there still remain problems in the US market.
Source: Moneycontrol.com
The run up in the last two days seems like a technical rally as of now, he said. "A lot of factors are still uncertain. We still see a lot of excesses in the system in many sectors, which needs to be removed."
According to Damani, rising inflation and advance tax numbers are not good. "This shows that the markets are not out of the woods yet."
Excerpts from CNBC-TV18’s exclusive interview with Ramesh Damani:
Q: When do you think will this pain end or is this just a relief rally?
A: It will be nice if it was the end of the pain. But markets are rarely so simple. We have had four years of a wonderful bull run and the market will now test the patience and convictions of all investors. This is a technical rally. It could take the market up to say the Nifty levels of 5,000 and maybe the corresponding Sensex levels. But at some it would peter out. It is not that it is going to go right back down and test the bottom. I think it will remain in a range. Then they will have to watch data like inflation, which is probably going to be bad, and a lot of other indicators for the market to look at. My sense is that this is just a technical rally at this point.
Q: What would convince you that we are about to form a bottom and are slowly getting out of the woods?
A: You could make a case for the B group, all the smallcaps and midcaps are already decimated. You are finding good value opportunities there. We tend to look quite aggressively at that space.
But if you look at the broader A group stock, the BSE 100 index for example, I can see huge examples of lofty valuations even at today’s prices, be it the power or realty sector, or financial companies. So, the bull markets always have a lot of excesses, and the excesses have to be rung out of the system. The market does not spare anybody, any stock or group any time. It will take the prices up for a while but you will have to pay on the downside for the excesses that have been committed on the upside.
A number of stocks in the last few days are down 20-30% from their peaks because of leveraged position unwinding or because of excess valuations. As the market starts to pick the wheat from the chaff, they will still find huge pockets of excesses in the A group. With interest rates not going to come down because of high inflation numbers and the advance tax collection being very poor this quarter, if you look at what the property companies paid, I think there is a sense that we are not out of the woods yet.
Q: How do you read the global situation? There is a feeling that maybe the US is not falling any more despite bad news and probably we have hit an intermediate bottom globally, which is giving us some confidence in the near-term. Do you read that as a positive or do you think that is also a technical pullback globally?
A: The first question is that the global bull market that we had in almost all asset classes and particularly in equities is over globally. That is pretty much the sense I have. The US has been surprisingly strong. But there is a strong tradition in the US when the Fed lowers interest rates as aggressively as they have done, then money flows to equities. As you are well aware the markets move one way or the other, they usually go up or down. It is hard for me to imagine a scenario in which the Dow would make a new high. It is almost 11-12% from its all-time high.
So, if it cannot go up further, it will then at some point go down. I would remain bearish just because of the huge liquidity that the Fed has pumped in, virtually sandbagging the markets with liquidity, which is pumped in this rally. Over a longer-term basis, there still remain problems in the US market.
Source: Moneycontrol.com
Monday, March 24, 2008
Short selling to start on April 21
After over 5 years, we are embarking on the next generation reform in the Indian Capital Markets, the last being introduction of screen based derivatives segment. And after hearing for last 3 years about the advent of short selling in the markets, short selling will finally start on April 21. Albeit on a small scale and controlled manner, nevertheless it is an important event that would help in changing the profile of the Indian secondary markets.
Why I say it to be controlled and well regulated is because it will start ONLY with the F&O scrips to begin with. There are 226 scrips under the derivatives list and this facility will initially be limited to this segment.
Some might have argued, it could have started with the NSE 500 list by market cap, but we need a begining and this is where start with. A healthy Short Selling market would require an even robust Securities Lending and Borrowing Mechanism, and to begin with all clearing members including banks and custodian will be eligible to participate in SLB. Unlike the earlier version this would be via automated screen based trading, which would allow the lender or borrower to enact a transaction on a Price-Time priority.
So, next time you want to short technology stocks close to earnings, you might have to pay a higher premium or you want to take a bet on banks close to monetary policy you will have to pay a premium as many of the banks may be under the caution list or banned list of RBI for reaching their FDI limits. Low float stocks are likely to command a higher premium as against high float stocks.
On some sense this would act as overnight call money market, purely based on liquidity demand and supply except that maximum duration of the lending or borrowing would be for 7 days and would be screen based thereby creating more transparency. The borrower will have to return the securities on T+8.
My guess is this will be a precursor to our markets moving into a T+1 mode, already some section of market works on this mode. All transaction for SLB will be completed on a T+1 mode. For a buyer of securities or borrower will have to pay-out lending fees plus the lending price. The lending price being the closing price of the transaction day. This is were the margin systems also kicks in, to start margins will be on a T+1 for institutions and subsequently it will be upfront from mid June this year.
While the margining is already upfront in the derivative markets, margining for institutions will be integrated for both the cash and the F&O from Mid June. This though, will increase the cost of transaction for institutions who used to participate in cash-future arbitrage (prop books) thereby avoiding any margin in the cash segment. But, in the long run it is a small cost to be paid for a vibrant market. All other investors will have to pay upfront margins.
Too Short a Window: While all the above is fine, there are some open ended questions. To list a few, why the SLB window is open only for 1 hour in the morning. Currently, it is open only between 10-11 am in the morning. With custodial confirmation by 2 pm and final intimation to the participation by 3:30 pm. Surely, what happens to participants who would like to go short on the certain stocks based on certain information or global cues. Ideally a 1 hour window between 2:30 pm and 3:30 pm would have been desirable allowing participants to close out there shorts or take fresh positions in the last hour.
Surely, the custodial confirmation and the subsequent participant intimation could be pushed to 5 pm, its a question of whether back-end is fully geared and operational for this purpose on the exchanges and custodian end.
Position Limits: To begin with SLB position limits of 10% of free-float equity of the company, so for a ICICI Bank the SLB marketwide would be 10% of its equity and for a Wipro that would be around 1% of the equity. For a SBI the marketwide limit would be 4.9% of equity, but will it be available to FIIs, it will not be. As the stock is perpetually under RBI Banned List for reaching its FDI Cap.
That brings me to my - second question: What happens to stocks were the FDI cap is at lower levels owing to regulatory reasons, and FDI cap becomes the limiting factor for the SLB in that stock.
I feel the exchanges will have to tweak their criteria for selection in F&O stocks and try to get stocks which do not have low FDI cap. I say this because though their would be marketwide limit for every stock, a lower FDI cap would mean the actual number of the share available for short selling for any stock under FDI cap will be much lower than the marketwide limit. Thereby, increasing the premium/lending fees and skewing the market for that stock.
BUT, that said we are entering a new era for Indian Markets, and cheers to that.
Source: Moneycontrol.com
Why I say it to be controlled and well regulated is because it will start ONLY with the F&O scrips to begin with. There are 226 scrips under the derivatives list and this facility will initially be limited to this segment.
Some might have argued, it could have started with the NSE 500 list by market cap, but we need a begining and this is where start with. A healthy Short Selling market would require an even robust Securities Lending and Borrowing Mechanism, and to begin with all clearing members including banks and custodian will be eligible to participate in SLB. Unlike the earlier version this would be via automated screen based trading, which would allow the lender or borrower to enact a transaction on a Price-Time priority.
So, next time you want to short technology stocks close to earnings, you might have to pay a higher premium or you want to take a bet on banks close to monetary policy you will have to pay a premium as many of the banks may be under the caution list or banned list of RBI for reaching their FDI limits. Low float stocks are likely to command a higher premium as against high float stocks.
On some sense this would act as overnight call money market, purely based on liquidity demand and supply except that maximum duration of the lending or borrowing would be for 7 days and would be screen based thereby creating more transparency. The borrower will have to return the securities on T+8.
My guess is this will be a precursor to our markets moving into a T+1 mode, already some section of market works on this mode. All transaction for SLB will be completed on a T+1 mode. For a buyer of securities or borrower will have to pay-out lending fees plus the lending price. The lending price being the closing price of the transaction day. This is were the margin systems also kicks in, to start margins will be on a T+1 for institutions and subsequently it will be upfront from mid June this year.
While the margining is already upfront in the derivative markets, margining for institutions will be integrated for both the cash and the F&O from Mid June. This though, will increase the cost of transaction for institutions who used to participate in cash-future arbitrage (prop books) thereby avoiding any margin in the cash segment. But, in the long run it is a small cost to be paid for a vibrant market. All other investors will have to pay upfront margins.
Too Short a Window: While all the above is fine, there are some open ended questions. To list a few, why the SLB window is open only for 1 hour in the morning. Currently, it is open only between 10-11 am in the morning. With custodial confirmation by 2 pm and final intimation to the participation by 3:30 pm. Surely, what happens to participants who would like to go short on the certain stocks based on certain information or global cues. Ideally a 1 hour window between 2:30 pm and 3:30 pm would have been desirable allowing participants to close out there shorts or take fresh positions in the last hour.
Surely, the custodial confirmation and the subsequent participant intimation could be pushed to 5 pm, its a question of whether back-end is fully geared and operational for this purpose on the exchanges and custodian end.
Position Limits: To begin with SLB position limits of 10% of free-float equity of the company, so for a ICICI Bank the SLB marketwide would be 10% of its equity and for a Wipro that would be around 1% of the equity. For a SBI the marketwide limit would be 4.9% of equity, but will it be available to FIIs, it will not be. As the stock is perpetually under RBI Banned List for reaching its FDI Cap.
That brings me to my - second question: What happens to stocks were the FDI cap is at lower levels owing to regulatory reasons, and FDI cap becomes the limiting factor for the SLB in that stock.
I feel the exchanges will have to tweak their criteria for selection in F&O stocks and try to get stocks which do not have low FDI cap. I say this because though their would be marketwide limit for every stock, a lower FDI cap would mean the actual number of the share available for short selling for any stock under FDI cap will be much lower than the marketwide limit. Thereby, increasing the premium/lending fees and skewing the market for that stock.
BUT, that said we are entering a new era for Indian Markets, and cheers to that.
Source: Moneycontrol.com
Markets could see more pain - Expert Views
Sheshadri Bharatan of Dawnay Day AV Financial Services said investors should look at some frontline stocks and try and enter the market at this point of time. He however cautioned that the markets have not bottomed out. “We might have some more pain left in the market. The uncertainty continues and we will have to wait for the earnings results,” he told CNBC-TV18.
Excerpts from CNBC-TV18’s exclusive interview with Sheshadri Bharatan:
Q: What do you make of this cool off in the broader market because just when we are seeing some sort of quietness coming in on global equities, there is pressure that we again need to deal with, which is primarily our own?
A: Yes, the uncertainty continues despite the markets opening with a positive gap. The tussle between bulls and bears continues. The market is taking cues from global markets. News agencies have reported that Credit Suisse has warned of losses. Even hedge fund Monsoon Capital had to book losses across their global portfolio. We are expecting this week’s newsflow to impact the Indian markets.
Q: What advice have you given to your customers? What is the advice to a trading client and investor?
A: For trading clients, I don’t think there is too much of things left in the market. At this point of time, they are mostly exercising option strategies etc. For investors, we are suggesting that they look at some frontline stocks and try and enter the market at this point of time. However, the markets have not bottomed out. We might have some more pain left in the market. The uncertainty continues and we will have to wait for the earnings results. We expect that there might be some positives sentiment in the market.
Q: How are you looking at the broader market space at this point in time because we are looking at liquid stocks seeing a lot of cuts coming in on a day-to-day performance? On the F&O side also, pressure is building up on these stocks? How are you advising people who have exposure to these leverage counters to play it now?
A: On the F&O side, Wednesday saw shorts being rolled over while Tuesday saw the longs being rolled over. The sentiment that we are getting from market is that bulls are picking up enough coverage and rolling over their April positions. Private sector banks and real estate sector have been battered down. Selectively, clients have picked up some FMCG and pharmaceuticals stocks.
Q: What's your buy list?
A: It is all frontline stocks like Reliance Industries, Ranbaxy in pharmaceuticals, and HUL in FMCG among others.
Q: What kind of lows are you looking at for the Sensex?
A: It is difficult guess for anybody in this market. In a worst-case scenario, we might see somewhere around 14,000-14,500. Around this level, the market should see some buying happening.
Q: You believe that 14,000 is the intermediate bottom that the market would have seen and we are not going to go any lower than that?
A: At this point of time, yes till we see earnings. If one looks at the overall picture in the market, inflation is at all-time high and industrial production is down. There is cause of worry but let us look at the set of earnings, which should give a lot of relief to the markets.
Source: Moneycontrol.com
Excerpts from CNBC-TV18’s exclusive interview with Sheshadri Bharatan:
Q: What do you make of this cool off in the broader market because just when we are seeing some sort of quietness coming in on global equities, there is pressure that we again need to deal with, which is primarily our own?
A: Yes, the uncertainty continues despite the markets opening with a positive gap. The tussle between bulls and bears continues. The market is taking cues from global markets. News agencies have reported that Credit Suisse has warned of losses. Even hedge fund Monsoon Capital had to book losses across their global portfolio. We are expecting this week’s newsflow to impact the Indian markets.
Q: What advice have you given to your customers? What is the advice to a trading client and investor?
A: For trading clients, I don’t think there is too much of things left in the market. At this point of time, they are mostly exercising option strategies etc. For investors, we are suggesting that they look at some frontline stocks and try and enter the market at this point of time. However, the markets have not bottomed out. We might have some more pain left in the market. The uncertainty continues and we will have to wait for the earnings results. We expect that there might be some positives sentiment in the market.
Q: How are you looking at the broader market space at this point in time because we are looking at liquid stocks seeing a lot of cuts coming in on a day-to-day performance? On the F&O side also, pressure is building up on these stocks? How are you advising people who have exposure to these leverage counters to play it now?
A: On the F&O side, Wednesday saw shorts being rolled over while Tuesday saw the longs being rolled over. The sentiment that we are getting from market is that bulls are picking up enough coverage and rolling over their April positions. Private sector banks and real estate sector have been battered down. Selectively, clients have picked up some FMCG and pharmaceuticals stocks.
Q: What's your buy list?
A: It is all frontline stocks like Reliance Industries, Ranbaxy in pharmaceuticals, and HUL in FMCG among others.
Q: What kind of lows are you looking at for the Sensex?
A: It is difficult guess for anybody in this market. In a worst-case scenario, we might see somewhere around 14,000-14,500. Around this level, the market should see some buying happening.
Q: You believe that 14,000 is the intermediate bottom that the market would have seen and we are not going to go any lower than that?
A: At this point of time, yes till we see earnings. If one looks at the overall picture in the market, inflation is at all-time high and industrial production is down. There is cause of worry but let us look at the set of earnings, which should give a lot of relief to the markets.
Source: Moneycontrol.com
Market ended in green: Banks up; Midcaps, metal down
It was a mixed close for markets with benchmark indices managing a positive close but the midcap and smallcap index closing in red. buying seen in select largecap IT and bank stocks. Breadth was negative and the advance:decline was at 1:6. Nifty closed above 4600 and Sensex closed above 15300. BSE Midcap and smallcap index were down over 3.5%.
Sensex closed up 294.57 points or 1.96% at 15289.40, and the Nifty up 35.90 points or 0.78% at 4609.85.
About 678 shares have advanced, 2329 shares declined, and 53 shares are unchanged.
The BSE Midcap Index ended at 5,805.53 down 2.7%.
The BSE Smallcap Index ended at 6,950.12 down 3.7%.
The BSE Bankex closed at 7,785.05 up 3%. ICICI Bank, HDFC, HDFC Bank, Centurion bank, Axis, IOB closed in green.
The BSE Capital Goods Index closed at 13,368.34 up 1%. Larsen, Jyoti Structure, BHEL, Siemens, ABB closed higher.
The BSE Auto Index closed at 4,404.48 up 0.1%. Apollo Tyres, Escorts, Ashok Leyland, Hind Motors closed higher.
The BSE Metal Index closed at 12,787.61 down 5%. Hindalco, Sterlite, Nalco, SAIL, JSW Steel, Jindal Steel, Jindal Stainless, Hind Zinc closed higher.
The BSE FMCG Index closed up 0.6% at 2,142.40. Colgate, ITC, Nestle, Dabur ended higher
BSE Oil and Gas Index closed at 9,730.91 up 0.1%. BPCL, HPCL, IOC, Reliance Natura, GAIL ended higher.
The BSE IT Index was at 3,450.39 up 2.5%. HCL Tech, Wipro, Infosys, Tech mahindra, TCS, closed higher.
The NSE cash turnover was at Rs 10796.34 crore and the NSE F&O turnover was at Rs 42610.26 crore. The BSE cash turnover was Rs 4670.59 crore. Total market wide turnover was at Rs 58077.19 crore.
Mkts lacklustre: Breadth negative; midcaps negative
The markets are lacklustre with Nifty and broader markets in red. Sensex is trading in greenwith buying seen in select largecap IT and bank stocks. Breadth has worsened and the advance:decline was at 1:6. Nifty failed to hold above 4600 and Sensex is hovering around 15100. BSE Midcap and smallcap index were down over 3.5%.
At 2.22 hrs IST, the Sensex is up 116.09 points or 0.77% at 15110.92, and the Nifty down 29.30 points or 0.64% at 4544.65.
About 529 shares have advanced, 2461 shares declined, and 69 shares are unchanged.
Realty index is the worst hit followed by metal both down over 4% each followed by energy indices like oil & gas and power. Select bank, FMCG and IT stocks are witnessing some buying.
Among the major losers were Cairn India down 7.5%, Guj NRE Coke down over 10%. Siemens and Tata Steel are down over 3.5%. Other stocks in red are Reliance Energy, Hindalco, Reliance Communication, JP Associates, Ranbaxy.
ICICI Bank, HDFC, Wipro, HCL Tech are the top frontline gainers. Among the other gainers were Hindalco, ABB, Bharti Airtel, NTPC, HUL, ACC, HDFC, Suzlon, ONGC, Wipro, Hero Honda, ITC.
Essar Oil, RNRL, ICICI Bank were among the most active stocks on the bourses.
Mkts slip: Breadth worsens; midcaps plunge
The markets have slipped from the day's high. Nifty has slipped in red and the midcaps and smallcaps have lost further ground. Breadth has worsened and the advance:decline was at 1:6. Nifty failed to hold above 4600 and Sensex is hovering around 15100. BSE Midcap and smallcap index were down over 3.5%.
At 1.01 hrs IST, the Sensex is up 108.14 points or 0.72% at 15102.97, and the Nifty down 14.65 points or 0.32% at 4559.30.
About 583 shares have advanced, 2400 shares declined, and 76 shares are unchanged.
Realty index is the worst hit followed by metal both down over 4% each followed by energy indices like oil & gas and power. Select bank, FMCG and IT stocks are witnessing some buying.
Among the major losers were Cairn India down 7.5%, Guj NRE Coke down over 10%. Siemens and Tata Steel are down over 3.5%. Other stocks in red are Reliance Energy, Hindalco, Reliance Communication, JP Associates, Ranbaxy.
ICICI Bank, HDFC, Wipro, HCL Tech are the top frontline gainers. Among the other gainers were Hindalco, ABB, Bharti Airtel, NTPC, HUL, ACC, HDFC, Suzlon, ONGC, Wipro, Hero Honda, ITC.
Essar Oil, RNRL, ICICI Bank were among the most active stocks on the bourses.
Mkts still in green: Banks, IT up; midcaps, metal down
The markets continue to trade in green on buying seen in select largecaps from bank and IT space. Nifty is hovering around the 4600 mark amid choppy trade. However, the broader markets have slipped further in red. Midcap and smallcap index were down 3%. This has given markets weak breatdth with thin volume.
At 11.57 hrs IST, the Sensex is up 197.62 points or 1.32% at 15192.45, and the Nifty up 36.15 points or 0.79% at 4610.10.
About 655 shares have advanced, 2317 shares declined, and 87 shares are unchanged.
Among the major losers were Cairn India down 7.5%, Guj NRE Coke down over 10%. Siemens and Tata Steel are down over 3.5%. Other stocks in red are Reliance Energy, Hindalco, Reliance Communication, JP Associates, Ranbaxy.
ICICI Bank, HDFC, Wipro, HCL Tech are the top frontline gainers. Among the other gainers were Hindalco, ABB, Bharti Airtel, NTPC, HUL, ACC, HDFC, Suzlon, ONGC, Wipro, Hero Honda, ITC.
Essar Oil, RNRL, ICICI Bank were among the most active stocks on the bourses.
10:42 am: The largecaps are trading in green with buying seen in select IT and banking frontliners. The benchmark indices are trading with smart gains outperforming the benchmark indices. However, the broader markets have slipped further in red. Midcap and smallcap index were down 2%.
At 10.42 hrs IST, the Sensex is up 225.16 points or 1.50% at 15219.99, and the Nifty up 46.65 points or 1.02% at 4620.60.
About 972 shares have advanced, 1987 shares declined, and 100 shares are unchanged.
ICICI Bank, HDFC, Wipro, HCL Tech are the top frontline gainers. Among the other gainers were Hindalco, ABB, Bharti Airtel, NTPC, HUL, ACC, HDFC, Suzlon, ONGC, Wipro, Hero Honda, ITC.
JP Associates, Tata Steel, Ranbaxy were among the top losers.
S Kumar collpased 22% followed by Kohinoor, Gati in the midcap space.
Rupee opened at Rs 40.41 per dollar
Asian markets were trading firm. Taiwan's Taiwan Weighted surged 4.05%, Japan's Nikkei rose 0.37%, Singapore's Straits Times was up 2.34%, South Korea's Seoul Composite added 0.44%.
9:56 am: After opening moderately in positive, the largecaps have perked up on account of buying seen in largecaps. The bench mark indices are trading with smart gains outperforming the benchmark indices. However, the broader markets have opened flat giving an inconclusive breadth to the markets.
At 09.56 hrs IST, the Sensex is up 149.45 points or 1.00% at 15144.28, and the Nifty up 30.15 points or 0.66% at 4604.10.
About 1076 shares have advanced, 1899 shares declined, and 84 shares are unchanged.
Among the top gainers were Hindalco, ABB, ICICI Bank, Bharti Airtel, HDFC Bank, NTPC, HUL, ACC, HDFC, Suzlon, ONGC, Wipro, Hero Honda, ITC.
Cairn Ind, Reliance Ind, Reliance Communication were among the top laggards.
Rupee opened at Rs 40.41 per dollar
Asian markets were trading firm. Taiwan's Taiwan Weighted surged 4.05%, Japan's Nikkei rose 0.37%, Singapore's Straits Times was up 2.34%, South Korea's Seoul Composite added 0.44%.
Wall Street soared with Federal Reserve action and declining commodity prices helping to offset worries about the economic slowdown.The Dow gained 261.66 points, or 2.16%, to 12,361.32, and the Nasdaq composite index advanced 48.15 points, or 2.18%
Market cues:
* SEBI says short selling, SLB to be operational from April 21
* Inflation at 10-month high of 5.92%
* KV Kamath says tighter monetary policy needed to tame inflation
* FIIs net sell $170.50 million in equity on Mar 18
* MFs net buy Rs 65 cr in equity on Mar 18
* NSE F&O Open Int down Rs 571 cr at Rs 63378 cr
Source: Moneycontrol.com
Sensex closed up 294.57 points or 1.96% at 15289.40, and the Nifty up 35.90 points or 0.78% at 4609.85.
About 678 shares have advanced, 2329 shares declined, and 53 shares are unchanged.
The BSE Midcap Index ended at 5,805.53 down 2.7%.
The BSE Smallcap Index ended at 6,950.12 down 3.7%.
The BSE Bankex closed at 7,785.05 up 3%. ICICI Bank, HDFC, HDFC Bank, Centurion bank, Axis, IOB closed in green.
The BSE Capital Goods Index closed at 13,368.34 up 1%. Larsen, Jyoti Structure, BHEL, Siemens, ABB closed higher.
The BSE Auto Index closed at 4,404.48 up 0.1%. Apollo Tyres, Escorts, Ashok Leyland, Hind Motors closed higher.
The BSE Metal Index closed at 12,787.61 down 5%. Hindalco, Sterlite, Nalco, SAIL, JSW Steel, Jindal Steel, Jindal Stainless, Hind Zinc closed higher.
The BSE FMCG Index closed up 0.6% at 2,142.40. Colgate, ITC, Nestle, Dabur ended higher
BSE Oil and Gas Index closed at 9,730.91 up 0.1%. BPCL, HPCL, IOC, Reliance Natura, GAIL ended higher.
The BSE IT Index was at 3,450.39 up 2.5%. HCL Tech, Wipro, Infosys, Tech mahindra, TCS, closed higher.
The NSE cash turnover was at Rs 10796.34 crore and the NSE F&O turnover was at Rs 42610.26 crore. The BSE cash turnover was Rs 4670.59 crore. Total market wide turnover was at Rs 58077.19 crore.
Mkts lacklustre: Breadth negative; midcaps negative
The markets are lacklustre with Nifty and broader markets in red. Sensex is trading in greenwith buying seen in select largecap IT and bank stocks. Breadth has worsened and the advance:decline was at 1:6. Nifty failed to hold above 4600 and Sensex is hovering around 15100. BSE Midcap and smallcap index were down over 3.5%.
At 2.22 hrs IST, the Sensex is up 116.09 points or 0.77% at 15110.92, and the Nifty down 29.30 points or 0.64% at 4544.65.
About 529 shares have advanced, 2461 shares declined, and 69 shares are unchanged.
Realty index is the worst hit followed by metal both down over 4% each followed by energy indices like oil & gas and power. Select bank, FMCG and IT stocks are witnessing some buying.
Among the major losers were Cairn India down 7.5%, Guj NRE Coke down over 10%. Siemens and Tata Steel are down over 3.5%. Other stocks in red are Reliance Energy, Hindalco, Reliance Communication, JP Associates, Ranbaxy.
ICICI Bank, HDFC, Wipro, HCL Tech are the top frontline gainers. Among the other gainers were Hindalco, ABB, Bharti Airtel, NTPC, HUL, ACC, HDFC, Suzlon, ONGC, Wipro, Hero Honda, ITC.
Essar Oil, RNRL, ICICI Bank were among the most active stocks on the bourses.
Mkts slip: Breadth worsens; midcaps plunge
The markets have slipped from the day's high. Nifty has slipped in red and the midcaps and smallcaps have lost further ground. Breadth has worsened and the advance:decline was at 1:6. Nifty failed to hold above 4600 and Sensex is hovering around 15100. BSE Midcap and smallcap index were down over 3.5%.
At 1.01 hrs IST, the Sensex is up 108.14 points or 0.72% at 15102.97, and the Nifty down 14.65 points or 0.32% at 4559.30.
About 583 shares have advanced, 2400 shares declined, and 76 shares are unchanged.
Realty index is the worst hit followed by metal both down over 4% each followed by energy indices like oil & gas and power. Select bank, FMCG and IT stocks are witnessing some buying.
Among the major losers were Cairn India down 7.5%, Guj NRE Coke down over 10%. Siemens and Tata Steel are down over 3.5%. Other stocks in red are Reliance Energy, Hindalco, Reliance Communication, JP Associates, Ranbaxy.
ICICI Bank, HDFC, Wipro, HCL Tech are the top frontline gainers. Among the other gainers were Hindalco, ABB, Bharti Airtel, NTPC, HUL, ACC, HDFC, Suzlon, ONGC, Wipro, Hero Honda, ITC.
Essar Oil, RNRL, ICICI Bank were among the most active stocks on the bourses.
Mkts still in green: Banks, IT up; midcaps, metal down
The markets continue to trade in green on buying seen in select largecaps from bank and IT space. Nifty is hovering around the 4600 mark amid choppy trade. However, the broader markets have slipped further in red. Midcap and smallcap index were down 3%. This has given markets weak breatdth with thin volume.
At 11.57 hrs IST, the Sensex is up 197.62 points or 1.32% at 15192.45, and the Nifty up 36.15 points or 0.79% at 4610.10.
About 655 shares have advanced, 2317 shares declined, and 87 shares are unchanged.
Among the major losers were Cairn India down 7.5%, Guj NRE Coke down over 10%. Siemens and Tata Steel are down over 3.5%. Other stocks in red are Reliance Energy, Hindalco, Reliance Communication, JP Associates, Ranbaxy.
ICICI Bank, HDFC, Wipro, HCL Tech are the top frontline gainers. Among the other gainers were Hindalco, ABB, Bharti Airtel, NTPC, HUL, ACC, HDFC, Suzlon, ONGC, Wipro, Hero Honda, ITC.
Essar Oil, RNRL, ICICI Bank were among the most active stocks on the bourses.
10:42 am: The largecaps are trading in green with buying seen in select IT and banking frontliners. The benchmark indices are trading with smart gains outperforming the benchmark indices. However, the broader markets have slipped further in red. Midcap and smallcap index were down 2%.
At 10.42 hrs IST, the Sensex is up 225.16 points or 1.50% at 15219.99, and the Nifty up 46.65 points or 1.02% at 4620.60.
About 972 shares have advanced, 1987 shares declined, and 100 shares are unchanged.
ICICI Bank, HDFC, Wipro, HCL Tech are the top frontline gainers. Among the other gainers were Hindalco, ABB, Bharti Airtel, NTPC, HUL, ACC, HDFC, Suzlon, ONGC, Wipro, Hero Honda, ITC.
JP Associates, Tata Steel, Ranbaxy were among the top losers.
S Kumar collpased 22% followed by Kohinoor, Gati in the midcap space.
Rupee opened at Rs 40.41 per dollar
Asian markets were trading firm. Taiwan's Taiwan Weighted surged 4.05%, Japan's Nikkei rose 0.37%, Singapore's Straits Times was up 2.34%, South Korea's Seoul Composite added 0.44%.
9:56 am: After opening moderately in positive, the largecaps have perked up on account of buying seen in largecaps. The bench mark indices are trading with smart gains outperforming the benchmark indices. However, the broader markets have opened flat giving an inconclusive breadth to the markets.
At 09.56 hrs IST, the Sensex is up 149.45 points or 1.00% at 15144.28, and the Nifty up 30.15 points or 0.66% at 4604.10.
About 1076 shares have advanced, 1899 shares declined, and 84 shares are unchanged.
Among the top gainers were Hindalco, ABB, ICICI Bank, Bharti Airtel, HDFC Bank, NTPC, HUL, ACC, HDFC, Suzlon, ONGC, Wipro, Hero Honda, ITC.
Cairn Ind, Reliance Ind, Reliance Communication were among the top laggards.
Rupee opened at Rs 40.41 per dollar
Asian markets were trading firm. Taiwan's Taiwan Weighted surged 4.05%, Japan's Nikkei rose 0.37%, Singapore's Straits Times was up 2.34%, South Korea's Seoul Composite added 0.44%.
Wall Street soared with Federal Reserve action and declining commodity prices helping to offset worries about the economic slowdown.The Dow gained 261.66 points, or 2.16%, to 12,361.32, and the Nasdaq composite index advanced 48.15 points, or 2.18%
Market cues:
* SEBI says short selling, SLB to be operational from April 21
* Inflation at 10-month high of 5.92%
* KV Kamath says tighter monetary policy needed to tame inflation
* FIIs net sell $170.50 million in equity on Mar 18
* MFs net buy Rs 65 cr in equity on Mar 18
* NSE F&O Open Int down Rs 571 cr at Rs 63378 cr
Source: Moneycontrol.com
Sunday, March 23, 2008
Which are the stocks to watch out for?
The Fed's 75 basis point rate cut set the markets off to a flying start mirroring markets across the globe. But with investors booking profit ahead of a long weekend, some of the gains were erased. Nifty closed at 4,574 up 41 points, while the Sensex shut shop at 14,995 up 161 points.
Technical Analyst Ashwani Gujral is negative on Gujarat NRE Coke and IFCI.
“Each time I see the gap up, the trade I have is to go short. This market will not have a V-shaped recovery and cross 5,000 in a hurry. You get good liquidity only when you have these gap-ups. So, clearly we are not going to immediately see new lows. But the market is just pausing. The levels of the Nifty would be between 4,450 to about 4,800. We could do some up and down out here, but the trend clearly remains down,” said Gujral.
Here’s how Ashwani Gujral views the stocks on board:
On Gujarat NRE Coke:
Gujarat NRE Coke has broken down Rs 155 and is back in the range from where it really broke out. It is still stronger than a lot of other midcap stocks. Around Rs 110-115 is now the support and Rs 155 becomes another stiff kind of resistance.
On IFCI:
The story is really over now. You could have support at around Rs 32 or Rs 33. It really needs to get back above Rs 50 before it has any kind of sustainable upmove. Most of the financials are going to get a pasting because financials seem to be leading this decline. So, its unlikely that it will be the financial group leading out of this decline. These stocks need to form the bases before they can move higher.
Source: Moneycontrol.com
Technical Analyst Ashwani Gujral is negative on Gujarat NRE Coke and IFCI.
“Each time I see the gap up, the trade I have is to go short. This market will not have a V-shaped recovery and cross 5,000 in a hurry. You get good liquidity only when you have these gap-ups. So, clearly we are not going to immediately see new lows. But the market is just pausing. The levels of the Nifty would be between 4,450 to about 4,800. We could do some up and down out here, but the trend clearly remains down,” said Gujral.
Here’s how Ashwani Gujral views the stocks on board:
On Gujarat NRE Coke:
Gujarat NRE Coke has broken down Rs 155 and is back in the range from where it really broke out. It is still stronger than a lot of other midcap stocks. Around Rs 110-115 is now the support and Rs 155 becomes another stiff kind of resistance.
On IFCI:
The story is really over now. You could have support at around Rs 32 or Rs 33. It really needs to get back above Rs 50 before it has any kind of sustainable upmove. Most of the financials are going to get a pasting because financials seem to be leading this decline. So, its unlikely that it will be the financial group leading out of this decline. These stocks need to form the bases before they can move higher.
Source: Moneycontrol.com
Wednesday, March 19, 2008
Market ended in green but sharply off day's high
The markets closed in green with moderate gain after a gap up opening on the back of strong cues from Asia and the US. After the Fed cut discount rate by 75 bps markets across globe have rallied. Asia ended in green most with gains of over 1.5%-3%, there were no runaway rallies seen.
Europe was off the highs after UK based HBOS reported pound 227 million.
Only frontliners closed in green but midcaps and smallcaps closed weak.Nifty breached 4600 mark but closed below the 4600 mark and Sensex slipped below 15000 levels.
On a weekly basis it was an very weak close for the markets with Sensex and Nifty down 5%. Markets witnesses second biggest single day fall this week. The broader markets lost nearly 10%. Bankex was down 10% followed by metal index down 8%.
Sensex closed up 161.37 points or 1.09% at 14994.83, and the Nifty up 40.95 points or 0.90% at 4573.95.
About 893 shares have advanced, 2088 shares declined, and 78 shares are unchanged.
The BSE Midcap Index ended at 5,964.10 down 1.2%.
The BSE Smallcap Index ended at 7,222.20 down 2%.
The BSE Bankex closed flat at 7,495.26. Yes, Federal Bank, IOB, HDFC Bank, closed in green.
The BSE Capital Goods Index closed at 13,095.72 up 1.3%. Areva, L&T, BHEL, ABB closed higher.
The BSE Auto Index closed at 4,398.25 up 1.4%. Exide, Tata Mtotos, M&M, Apollo Tyres, Ashok Leyland closed higher.
The BSE Metal Index closed at 13,498.55 up 0.4%. SAIL, JSW Steel, Sesa Goa, Jindal Stainless, Hind Zinc closed higher.
The BSE FMCG Index closed up 0.6% at 2,142.40. Colgate, ITC, P&G ended higher
BSE Oil and Gas Index closed at 9,717.56 up 0.06%. GAIL, Cairn, IOC, Reliance ended higher.
The BSE IT Index was at 3,369.63 up 2%. HCL, Infosys, Satyam, Wipro, TCS, Tech Mahindra closed higher.
The NSE cash turnover was at Rs 13937.1 crore and the NSE F&O turnover was at Rs 46365.04 crore. The BSE cash turnover was Rs 5781.11crore. Total market wide turnover was at Rs 66083.25 crore.
Markets Today
* Markets off day's high on profit booking in line with Asian peers
* Sensex ends up 161 pts at 14994; down 470 pts from day's high
* Nifty ends up 41 pts at 4574; down nearly 150 pts from day's high
* CNX Midcap Index down 0.23%, BSE Small-cap Index down 2%
* IT Index up 2.14%; Satyam up 5.7%, Wipro up 5.3%, Infosys up 2.2%
* BSE Realty Index down 2.14%; DLF down 1.4%, Unitech down 3.4%
* Index Gainers; Tata Motors up 5%, SAIL up 4.4%, Nalco up 4.2%, M&M up 3.6%
* Non-index gainers; Yes Bank up 7.6%; management says not having any uncovered forex exposures
* Losers; Guj NRE Coke down 8.5%, IFCI down 6.6%, Neyveli Lignite down 6.24%
* NSE Advance Decline at 1:2; slips from 5:1 in the morning
Total market turnover at Rs 66083.25 cr
Markets this week
* Sensex down 4.5%, Nifty down 3.3%
* BSE Small Cap Index down 10.5%, CNX Midcap Index down 8.5%
* BSE Bankex down 10%, BSE Metal Index down 9%
* BSE Realty Index down 8%, Oil & Gas Index down 6.5%
* Nifty Losers: Hindalco down 14.5%, ICICI Bank down 12%, HDFC down 11.5%, Tata Steel down 11%, Tata Power down 10%
* Midcap Losers: Gujarat NRE Coke down 18.5%, IFCI down 17%, Bajaj Hind down 15%, Dena Bank down 14.5%, GMR, BoI, Neyveli Lig down 14% each, Orchid Chem down 44%, S Kumar down 24%
* Non-Index Losers: Rel Cap down 16%, JP Assoc down 13%, IBREL down 12%
Mkt off highs: Nifty below 4,600
The markets are trading in green but have given up some of its morning gains. Pressure is seen in midcap and smallcap stocks. The smallcap index has slipped and is trading in red and midcap index is trading flat. This has impacted the breath which is off the highs. After the Fed cut discount rate by 75 bps markets across globe have rallied. Asia ended in green most with gains of over 1.5%-3%, there were no runaway rallies seen.
Europe is off the highs after UK based HBOS reported pound 227 million.
Nifty has breached 4600 mark and is hovering around the 4600 mark and Sensex has slipped below 15200 levels. Other than realty, all BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers.
At 2.31 hrs IST, the Sensex is up 281.64 points or 1.90% at 15115.10, and the Nifty up 66.90 points or 1.48% at 4599.90.
About 1075 shares have advanced, 1892 shares declined, and 92 shares are unchanged.
BSE Midcap index is absolutely flat and smallcap index is down 1% . BSE IT, Bankex and capital goods index were up over 2.5% followed by realty up and power index.
Wipro, SAIL, JP Associates are trading firm each up over 6%; followed by Satyam up over 5%. ICICI Bank, HDFC Bank, SBI, Bharti Airtel, PNB, L&T, RPL and RNRL were the other gainers.
Ranbaxy, Tata Power, Grasim, BPCL, Dr Reddy's are among some of the losers.
Mkt trades in green but off highs: JP Associates, Wipro up
1.11 pm: It has been a stable session for till now as markets continue to trade higher with smart gains. Although it has been a smidge lower from the high point of the day. Pressure is seen in midcap and smallcap stocks. The smallcap index has slipped and is trading marginally in red. This has impacted the breath which is off the highs. After the Fed cut discount rate by 75 bps markets across globe have rallied. Asia ended in green most with gains of over 1.5%-3%, there were no runaway rallies seen.
Nifty is hovering around the 4650 mark and Sensex has slipped below 15300 levels. All BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers.
At 1.11 hrs IST, the Sensex is up 410.33 points or 2.77% at 15243.79, and the Nifty up 99.95 points or 2.20% at 4632.95.
About 1316 shares have advanced, 1654 shares declined, and 89 shares are unchanged.
BSE Midcap index is up over 1% and smallcap index is trading absolutely flat. BSE IT, Bankex and capital goods index were up over 2.5% followed by realty up and power index.
Wipro, SAIL, JP Associates are trading firm each up over 6%; followed by Satyam up over 5%. ICICI Bank, HDFC Bank, SBI, Bharti Airtel, PNB, L&T, RPL and RNRL were the other gainers.
Ranbaxy, Tata Power, Grasim, BPCL, Dr Reddy's are among some of the losers.
11.33 am: Mkt trades with hefty gains: Bank, realty, cap goods surge
The markets are trading firm at the higher as sustained buying continues, its a smidge down from the high point of the day.After the Fed cut discount rate by 75 bps markets across globe have rallied. Asia is trading in green most with gains of over 1.5%, there are no runaway rallies seen.
It is the smallcaps that have underperformed a bit. Nifty has maintained 4650 and Sensex has latched on to 15300 levels. All BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers.
At 11.33 hrs IST, the Sensex is up 482.79 points or 3.25% at 15316.25, and the Nifty up 113.95 points or 2.51% at 4646.95.
About 1536 shares have advanced, 1432 shares declined, and 90 shares are unchanged.
JP Associates up over 7.8% followed by ICICI Bank and HDFC Bank up over 6%. SBI, Bharti Airtel, PNB, Tata Power, SAIL, L&T, RPL and RNRL were the major gainers.
In the global markets Asian markets were trading firm. Hong Kong's Hang Seng up nearly 3%, Japan's Nikkei up over 2%. Yesterday, Wall Street ran up their biggest one-day gains in more than five years following that interest rate cut. The rally was led by financials.
Mkt trades firm: Bank, realty, cap goods surge
The markets are trading firm at the higher level on buying seen in scrips across sectors. After the Fed cut discount rate by 75 bps markets across globe have rallied. All BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers.
Market breadth is very positive, NSE advance:decline ratio of 13:1. Midcap and small cap stocks have seen strong bounce back. BSE Midcap index is up over 3% and smallcap index is up nearly 3%.
Bankex is up over 5% followed by realty up 5%, capital goods and power index up over 3.5%.
At 10.29 hrs IST, the Sensex is up 530.72 points or 3.58% at 15364.18, and the Nifty up 132.70 points or 2.93% at 4665.70.
About 1787 shares have advanced, 1191 shares declined, and 80 shares are unchanged.
JP Associates up over 7.8% followed by ICICI Bank and HDFC Bank up over 6%. SBI, Bharti Airtel, PNB, Tata Power, SAIL, L&T, RPL and RNRL were the major gainers.
In the global markets Asian markets were trading firm. Hong Kong's Hang Seng added 3.61%, Japan's Nikkei gained 3.23%. Yesterday, Wall Street ran up their biggest one-day gains in more than five years following that interest rate cut. The rally was led by financials.
Mkts open strong mirroring sturdy global cues
The markets have opened on a strong note mirroring phenomenal rally in US markets as FOMC cut the Fed funds and discount rates by 75 bps. Asian markets are also supported this rally. All BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers in morning trade. Market breadth is very positive, NSE advance:decline ratio of 13:1. Midcap and small cap stocks have seen strong bounce back.
At 9:56 am, the Sensex was up 632 points at 15465 and the Nifty up 165 points at 4698. CNX Midcap gained by 241 points at 6,102.
SBI, Bharti Airtel, PNB, Tata Power, SAIL, L&T, RPL and RNRL were the major gainers.
The BSE Realty, Bankex, Power and Capital Goods indices were up nearly 4-6%. Oil & Gas, Metal, IT and Teck indices jumped over 3%.
Asian markets were trading firm. Hong Kong's Hang Seng added 3.61% or 772.85 points at 22,157.46. Japan's Nikkei gained 3.23% or 386.06 points at 12,350.22. Taiwan's Taiwan Weighted rose 2.04% or 164.32 points at 8,222.14. Singapore's Straits Times rose 2.05% or 58.15 points at 2,891.73. South Korea's Seoul Composite advanced 2.51% or 39.92 points at 1,628.67.
Wall Street ran up their biggest one-day gains in more than five years following that interest rate cut. The rally was led by financials. FOMC cut the Fed funds and discount rates by 75 bps; Fed funds rate now at 2.25% and the discount rate now at 2.50%. Dow added 420.41 points, or 3.51%, at 12,392.66. The Standard & Poor's 500 index gained 54.14 points, or 4.24%, at 1,330.74, and the Nasdaq composite index advanced 91.25 points, or 4.19%, to 2,268.26.
Market cues:
* Fed cuts Fed Funds Rate by 75 bps, discount rate by 75 bps
* FIIs net sell $ 156.8 m in equity
* MFs net sell Rs 100.5 cr in equity
* NSE F&O Open Interest down Rs 387 cr at Rs 63,949 cr
F&O cues:
* Futures Open Interest down by Rs 1,208 crore and Options Open Interest up by Rs 821 crore
* Nifty Mar Futures shed 44 lakh shares in Open Interest
* Nifty April Futures add 20 lakh shares in Open Interest
* Nifty Mar at 15-point premium, April at 2-point premium
* Nifty Open Interest Put-Call ratio at 0.83 Vs 0.85
* Nifty Puts add 4.8 lakh shares in Open Interest
* Nifty Calls add 11 lakh shares in Open Interest
* Nifty 4400 Put adds 3.3 lakh shares in Open Interest
* Nifty 4250 Put adds 2.3 lakh shares in Open Interest
* Nifty 4300 Put adds 1.2 lakh shares in Open Interest
* Nifty 4700 Call adds 4.2 lakh shares in Open Interest
* Nifty 4800 Call adds 2.2 lakh shares in Open Interest
* Stock Futures shed 1.3 cr shares in Open Interest
Source: Moneycontrol.com
Europe was off the highs after UK based HBOS reported pound 227 million.
Only frontliners closed in green but midcaps and smallcaps closed weak.Nifty breached 4600 mark but closed below the 4600 mark and Sensex slipped below 15000 levels.
On a weekly basis it was an very weak close for the markets with Sensex and Nifty down 5%. Markets witnesses second biggest single day fall this week. The broader markets lost nearly 10%. Bankex was down 10% followed by metal index down 8%.
Sensex closed up 161.37 points or 1.09% at 14994.83, and the Nifty up 40.95 points or 0.90% at 4573.95.
About 893 shares have advanced, 2088 shares declined, and 78 shares are unchanged.
The BSE Midcap Index ended at 5,964.10 down 1.2%.
The BSE Smallcap Index ended at 7,222.20 down 2%.
The BSE Bankex closed flat at 7,495.26. Yes, Federal Bank, IOB, HDFC Bank, closed in green.
The BSE Capital Goods Index closed at 13,095.72 up 1.3%. Areva, L&T, BHEL, ABB closed higher.
The BSE Auto Index closed at 4,398.25 up 1.4%. Exide, Tata Mtotos, M&M, Apollo Tyres, Ashok Leyland closed higher.
The BSE Metal Index closed at 13,498.55 up 0.4%. SAIL, JSW Steel, Sesa Goa, Jindal Stainless, Hind Zinc closed higher.
The BSE FMCG Index closed up 0.6% at 2,142.40. Colgate, ITC, P&G ended higher
BSE Oil and Gas Index closed at 9,717.56 up 0.06%. GAIL, Cairn, IOC, Reliance ended higher.
The BSE IT Index was at 3,369.63 up 2%. HCL, Infosys, Satyam, Wipro, TCS, Tech Mahindra closed higher.
The NSE cash turnover was at Rs 13937.1 crore and the NSE F&O turnover was at Rs 46365.04 crore. The BSE cash turnover was Rs 5781.11crore. Total market wide turnover was at Rs 66083.25 crore.
Markets Today
* Markets off day's high on profit booking in line with Asian peers
* Sensex ends up 161 pts at 14994; down 470 pts from day's high
* Nifty ends up 41 pts at 4574; down nearly 150 pts from day's high
* CNX Midcap Index down 0.23%, BSE Small-cap Index down 2%
* IT Index up 2.14%; Satyam up 5.7%, Wipro up 5.3%, Infosys up 2.2%
* BSE Realty Index down 2.14%; DLF down 1.4%, Unitech down 3.4%
* Index Gainers; Tata Motors up 5%, SAIL up 4.4%, Nalco up 4.2%, M&M up 3.6%
* Non-index gainers; Yes Bank up 7.6%; management says not having any uncovered forex exposures
* Losers; Guj NRE Coke down 8.5%, IFCI down 6.6%, Neyveli Lignite down 6.24%
* NSE Advance Decline at 1:2; slips from 5:1 in the morning
Total market turnover at Rs 66083.25 cr
Markets this week
* Sensex down 4.5%, Nifty down 3.3%
* BSE Small Cap Index down 10.5%, CNX Midcap Index down 8.5%
* BSE Bankex down 10%, BSE Metal Index down 9%
* BSE Realty Index down 8%, Oil & Gas Index down 6.5%
* Nifty Losers: Hindalco down 14.5%, ICICI Bank down 12%, HDFC down 11.5%, Tata Steel down 11%, Tata Power down 10%
* Midcap Losers: Gujarat NRE Coke down 18.5%, IFCI down 17%, Bajaj Hind down 15%, Dena Bank down 14.5%, GMR, BoI, Neyveli Lig down 14% each, Orchid Chem down 44%, S Kumar down 24%
* Non-Index Losers: Rel Cap down 16%, JP Assoc down 13%, IBREL down 12%
Mkt off highs: Nifty below 4,600
The markets are trading in green but have given up some of its morning gains. Pressure is seen in midcap and smallcap stocks. The smallcap index has slipped and is trading in red and midcap index is trading flat. This has impacted the breath which is off the highs. After the Fed cut discount rate by 75 bps markets across globe have rallied. Asia ended in green most with gains of over 1.5%-3%, there were no runaway rallies seen.
Europe is off the highs after UK based HBOS reported pound 227 million.
Nifty has breached 4600 mark and is hovering around the 4600 mark and Sensex has slipped below 15200 levels. Other than realty, all BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers.
At 2.31 hrs IST, the Sensex is up 281.64 points or 1.90% at 15115.10, and the Nifty up 66.90 points or 1.48% at 4599.90.
About 1075 shares have advanced, 1892 shares declined, and 92 shares are unchanged.
BSE Midcap index is absolutely flat and smallcap index is down 1% . BSE IT, Bankex and capital goods index were up over 2.5% followed by realty up and power index.
Wipro, SAIL, JP Associates are trading firm each up over 6%; followed by Satyam up over 5%. ICICI Bank, HDFC Bank, SBI, Bharti Airtel, PNB, L&T, RPL and RNRL were the other gainers.
Ranbaxy, Tata Power, Grasim, BPCL, Dr Reddy's are among some of the losers.
Mkt trades in green but off highs: JP Associates, Wipro up
1.11 pm: It has been a stable session for till now as markets continue to trade higher with smart gains. Although it has been a smidge lower from the high point of the day. Pressure is seen in midcap and smallcap stocks. The smallcap index has slipped and is trading marginally in red. This has impacted the breath which is off the highs. After the Fed cut discount rate by 75 bps markets across globe have rallied. Asia ended in green most with gains of over 1.5%-3%, there were no runaway rallies seen.
Nifty is hovering around the 4650 mark and Sensex has slipped below 15300 levels. All BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers.
At 1.11 hrs IST, the Sensex is up 410.33 points or 2.77% at 15243.79, and the Nifty up 99.95 points or 2.20% at 4632.95.
About 1316 shares have advanced, 1654 shares declined, and 89 shares are unchanged.
BSE Midcap index is up over 1% and smallcap index is trading absolutely flat. BSE IT, Bankex and capital goods index were up over 2.5% followed by realty up and power index.
Wipro, SAIL, JP Associates are trading firm each up over 6%; followed by Satyam up over 5%. ICICI Bank, HDFC Bank, SBI, Bharti Airtel, PNB, L&T, RPL and RNRL were the other gainers.
Ranbaxy, Tata Power, Grasim, BPCL, Dr Reddy's are among some of the losers.
11.33 am: Mkt trades with hefty gains: Bank, realty, cap goods surge
The markets are trading firm at the higher as sustained buying continues, its a smidge down from the high point of the day.After the Fed cut discount rate by 75 bps markets across globe have rallied. Asia is trading in green most with gains of over 1.5%, there are no runaway rallies seen.
It is the smallcaps that have underperformed a bit. Nifty has maintained 4650 and Sensex has latched on to 15300 levels. All BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers.
At 11.33 hrs IST, the Sensex is up 482.79 points or 3.25% at 15316.25, and the Nifty up 113.95 points or 2.51% at 4646.95.
About 1536 shares have advanced, 1432 shares declined, and 90 shares are unchanged.
JP Associates up over 7.8% followed by ICICI Bank and HDFC Bank up over 6%. SBI, Bharti Airtel, PNB, Tata Power, SAIL, L&T, RPL and RNRL were the major gainers.
In the global markets Asian markets were trading firm. Hong Kong's Hang Seng up nearly 3%, Japan's Nikkei up over 2%. Yesterday, Wall Street ran up their biggest one-day gains in more than five years following that interest rate cut. The rally was led by financials.
Mkt trades firm: Bank, realty, cap goods surge
The markets are trading firm at the higher level on buying seen in scrips across sectors. After the Fed cut discount rate by 75 bps markets across globe have rallied. All BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers.
Market breadth is very positive, NSE advance:decline ratio of 13:1. Midcap and small cap stocks have seen strong bounce back. BSE Midcap index is up over 3% and smallcap index is up nearly 3%.
Bankex is up over 5% followed by realty up 5%, capital goods and power index up over 3.5%.
At 10.29 hrs IST, the Sensex is up 530.72 points or 3.58% at 15364.18, and the Nifty up 132.70 points or 2.93% at 4665.70.
About 1787 shares have advanced, 1191 shares declined, and 80 shares are unchanged.
JP Associates up over 7.8% followed by ICICI Bank and HDFC Bank up over 6%. SBI, Bharti Airtel, PNB, Tata Power, SAIL, L&T, RPL and RNRL were the major gainers.
In the global markets Asian markets were trading firm. Hong Kong's Hang Seng added 3.61%, Japan's Nikkei gained 3.23%. Yesterday, Wall Street ran up their biggest one-day gains in more than five years following that interest rate cut. The rally was led by financials.
Mkts open strong mirroring sturdy global cues
The markets have opened on a strong note mirroring phenomenal rally in US markets as FOMC cut the Fed funds and discount rates by 75 bps. Asian markets are also supported this rally. All BSE indices are trading higher. Power, banking, telecom and capital goods stocks are the star performers in morning trade. Market breadth is very positive, NSE advance:decline ratio of 13:1. Midcap and small cap stocks have seen strong bounce back.
At 9:56 am, the Sensex was up 632 points at 15465 and the Nifty up 165 points at 4698. CNX Midcap gained by 241 points at 6,102.
SBI, Bharti Airtel, PNB, Tata Power, SAIL, L&T, RPL and RNRL were the major gainers.
The BSE Realty, Bankex, Power and Capital Goods indices were up nearly 4-6%. Oil & Gas, Metal, IT and Teck indices jumped over 3%.
Asian markets were trading firm. Hong Kong's Hang Seng added 3.61% or 772.85 points at 22,157.46. Japan's Nikkei gained 3.23% or 386.06 points at 12,350.22. Taiwan's Taiwan Weighted rose 2.04% or 164.32 points at 8,222.14. Singapore's Straits Times rose 2.05% or 58.15 points at 2,891.73. South Korea's Seoul Composite advanced 2.51% or 39.92 points at 1,628.67.
Wall Street ran up their biggest one-day gains in more than five years following that interest rate cut. The rally was led by financials. FOMC cut the Fed funds and discount rates by 75 bps; Fed funds rate now at 2.25% and the discount rate now at 2.50%. Dow added 420.41 points, or 3.51%, at 12,392.66. The Standard & Poor's 500 index gained 54.14 points, or 4.24%, at 1,330.74, and the Nasdaq composite index advanced 91.25 points, or 4.19%, to 2,268.26.
Market cues:
* Fed cuts Fed Funds Rate by 75 bps, discount rate by 75 bps
* FIIs net sell $ 156.8 m in equity
* MFs net sell Rs 100.5 cr in equity
* NSE F&O Open Interest down Rs 387 cr at Rs 63,949 cr
F&O cues:
* Futures Open Interest down by Rs 1,208 crore and Options Open Interest up by Rs 821 crore
* Nifty Mar Futures shed 44 lakh shares in Open Interest
* Nifty April Futures add 20 lakh shares in Open Interest
* Nifty Mar at 15-point premium, April at 2-point premium
* Nifty Open Interest Put-Call ratio at 0.83 Vs 0.85
* Nifty Puts add 4.8 lakh shares in Open Interest
* Nifty Calls add 11 lakh shares in Open Interest
* Nifty 4400 Put adds 3.3 lakh shares in Open Interest
* Nifty 4250 Put adds 2.3 lakh shares in Open Interest
* Nifty 4300 Put adds 1.2 lakh shares in Open Interest
* Nifty 4700 Call adds 4.2 lakh shares in Open Interest
* Nifty 4800 Call adds 2.2 lakh shares in Open Interest
* Stock Futures shed 1.3 cr shares in Open Interest
Source: Moneycontrol.com
Tuesday, March 18, 2008
Stocks to watch: ITC, HUL, RPL
Pre-Fed jitters ruled the markets. The indices remained largely rangebound. Nifty closed at 4,533 up 20 points, while the Sensex shut shop at 14,833 up 24 points.
E Mathew of Mathew Easow Fiscal Services is positive on ITC, HUL and RPL.
“We may be in the process of bottoming out. We are taking all our cues from the Dow. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) went almost as high as 33, which is a clear indication that the volatility index is peaking out. It also points out that the Dow has already bottomed out, if it is not close to bottoming out. A lot of hope hangs out for the Nifty. If we are able to sustain above 4,530-4,540 in the near future, it may be a process of base-formation. If we plunge below the January lows again, we may be heading towards 4,200 or possibly lower,” said Mathew.
Here’s how E Matthew views the stock on board:
On ITC and HUL:
The charts have certainly shown strength and they didn’t really breakdown in this carnage also.
ITC has been far above the low of Rs 165-168, which it had touched on January 22. The stock has the potential to be a Nifty outperformer. If the Nifty starts moving up from here, we could see ITC go up all the way to Rs 204.
It is a buy on declines opportunity, as far as ITC and HUL are concerned.
On Orchid Pharma:
Most of the pharmaceutical stocks are looking good. Of course, Orchid Chemicals is an exception. Unfortunately, the incident in Orchid is being utilized as an opportunity to paint some of the smaller pharma companies with the same brush, which is not fair.
On Ranbaxy:
Ranbaxy is showing short-term weakness. But if it drifts by Rs 10-15 odd from the current levels, it would also qualify as a buy on declines rather than a sell on rise.
On RPL:
RPL was showing quite a lot of strength till yesterday. In this recent carnage, it went nowhere near the January 22 low. Today, some negative news did come. But in spite of that, the stock has got very strong support at the Rs 140-142 zone. This stock has potential if the Nifty is in the process of consolidating and it starts moving up. If it takes the positive cues globally, we could see Reliance Petro possibly move up to Rs 165 and beyond that all the way up to Rs 172-175.
On JP Associates:
If you compare JP Associates with RPL, is not showing that kind of strength. But having said, the stock has been extremely oversold. If one is looking for something like a trading bet, possibly at lower levels, if it comes down to about Rs 185 zone, keeping a stop loss of around about Rs 180 odd, one could take a short-term punt into this.
On Bajaj Hindusthan and Balrampur Chini:
Bajaj Hindusthan and Balrampur Chini qualifies as a buy on declines. In fact, Balrampur has got very strong support at around Rs 70-74 zone. That incidentally becomes your stop loss also. On a market sell-off, one could possibly accumulate the stock.
One could play for a bounce up all the way to the Rs 86-88 zone. That is the stiff resistance zone. Beyond that, one could look at Rs 95 too. As of now, Balrampur and Bajaj Hindusthan and the entire sugar sector is still not showing the sort of weakness which one is seeing in quite a few of the other sectors.
Disclaimer: It is safe to assume that my clients and I may have an interest in the stocks/sectors discussed.
Source: Moneycontrol.com
E Mathew of Mathew Easow Fiscal Services is positive on ITC, HUL and RPL.
“We may be in the process of bottoming out. We are taking all our cues from the Dow. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) went almost as high as 33, which is a clear indication that the volatility index is peaking out. It also points out that the Dow has already bottomed out, if it is not close to bottoming out. A lot of hope hangs out for the Nifty. If we are able to sustain above 4,530-4,540 in the near future, it may be a process of base-formation. If we plunge below the January lows again, we may be heading towards 4,200 or possibly lower,” said Mathew.
Here’s how E Matthew views the stock on board:
On ITC and HUL:
The charts have certainly shown strength and they didn’t really breakdown in this carnage also.
ITC has been far above the low of Rs 165-168, which it had touched on January 22. The stock has the potential to be a Nifty outperformer. If the Nifty starts moving up from here, we could see ITC go up all the way to Rs 204.
It is a buy on declines opportunity, as far as ITC and HUL are concerned.
On Orchid Pharma:
Most of the pharmaceutical stocks are looking good. Of course, Orchid Chemicals is an exception. Unfortunately, the incident in Orchid is being utilized as an opportunity to paint some of the smaller pharma companies with the same brush, which is not fair.
On Ranbaxy:
Ranbaxy is showing short-term weakness. But if it drifts by Rs 10-15 odd from the current levels, it would also qualify as a buy on declines rather than a sell on rise.
On RPL:
RPL was showing quite a lot of strength till yesterday. In this recent carnage, it went nowhere near the January 22 low. Today, some negative news did come. But in spite of that, the stock has got very strong support at the Rs 140-142 zone. This stock has potential if the Nifty is in the process of consolidating and it starts moving up. If it takes the positive cues globally, we could see Reliance Petro possibly move up to Rs 165 and beyond that all the way up to Rs 172-175.
On JP Associates:
If you compare JP Associates with RPL, is not showing that kind of strength. But having said, the stock has been extremely oversold. If one is looking for something like a trading bet, possibly at lower levels, if it comes down to about Rs 185 zone, keeping a stop loss of around about Rs 180 odd, one could take a short-term punt into this.
On Bajaj Hindusthan and Balrampur Chini:
Bajaj Hindusthan and Balrampur Chini qualifies as a buy on declines. In fact, Balrampur has got very strong support at around Rs 70-74 zone. That incidentally becomes your stop loss also. On a market sell-off, one could possibly accumulate the stock.
One could play for a bounce up all the way to the Rs 86-88 zone. That is the stiff resistance zone. Beyond that, one could look at Rs 95 too. As of now, Balrampur and Bajaj Hindusthan and the entire sugar sector is still not showing the sort of weakness which one is seeing in quite a few of the other sectors.
Disclaimer: It is safe to assume that my clients and I may have an interest in the stocks/sectors discussed.
Source: Moneycontrol.com
It’s time to enter markets in a steady way
Anmol Sekhri, Fund Manager, Bonanza Group of Companies feels that it’s time to enter the market in a steady way. He feels the worst in over for the Indian markets and all the bad news is already factored in. Sekhri said that there are very good opportunities in the midcap space. “Some of these are not linked to the international markets and hence, they are safe and secure,” he explained
Among his preferred picks are Sesa Goa, Patel Engineering, ICSA, CMC and Prithvi Information.
Excerpts of CNBC-TV18’s exclusive interview with Anmol Sekhri:
Q: Give us an idea of what is the call that you are giving your clients on this market, especially the midcap space?
A: We do feel that it’s time to enter the market in a steady way. I personally feel that the worst is over for the Indian market and all the bad news is already factored in. From here you can only have positives.
The market may go down for short time but I think in the midcap space there are very good opportunities right now, some of which are not linked to the international markets and hence, they are safe and secure. Some of these could be like Sesa Goa where the demand is more than the supply, it’s already 100% booked and in the next year it will sell the same amount or maybe more quantity at a higher price by about 50-60%.
Similarly you could have infrastructure story which is still intact irrespective of what happens internationally. For example Patel Engineering, there is nothing that has gone wrong with it and it’s already booked for next two or three years. It has realty bonanza coming up because they are developing their real estate across the nation. They have fallen substantially almost about 30-35% with the markets, but their earnings are going to be much better. That could be another buy.
Q: Are you buying right now or are you still waiting for the market to cool off a bit more?
A: I think we are ready to buy and as we go along as closer to April, and after April, I do feel there would be a consolidation.
Q: How much cash are you sitting on?
A: About 30%.
Q: The sectors that you are mentioning, does technology find any room there? Do you believe that sector has bottom down and will it be the front liners or would you select midcaps?
A: Technology has many facets to it. On the one hand you have people like Infosys, Wipro etc and there is another technology sector, which is not linked to international happenings for example ICSA. It’s a midcap company which is more into supplying software for power industries in India. It has fallen tremendously and nothing has gone wrong with it because of international happenings. So that could be one.
You could also look at something like CMC which is into training and whatever export is cancelled by their imports, so the net fact would be positive for them. One could also take a contra call, something like Prithvi Information which is just a duplication of Infosys or Wipro, but it discounted at the current levels by hardly Rs 2. The company has an excellent track record and is well managed.
Disclosure: Yes, we have holdings in all of these and our clients would have.
Source: Moneycontrol.com
Among his preferred picks are Sesa Goa, Patel Engineering, ICSA, CMC and Prithvi Information.
Excerpts of CNBC-TV18’s exclusive interview with Anmol Sekhri:
Q: Give us an idea of what is the call that you are giving your clients on this market, especially the midcap space?
A: We do feel that it’s time to enter the market in a steady way. I personally feel that the worst is over for the Indian market and all the bad news is already factored in. From here you can only have positives.
The market may go down for short time but I think in the midcap space there are very good opportunities right now, some of which are not linked to the international markets and hence, they are safe and secure. Some of these could be like Sesa Goa where the demand is more than the supply, it’s already 100% booked and in the next year it will sell the same amount or maybe more quantity at a higher price by about 50-60%.
Similarly you could have infrastructure story which is still intact irrespective of what happens internationally. For example Patel Engineering, there is nothing that has gone wrong with it and it’s already booked for next two or three years. It has realty bonanza coming up because they are developing their real estate across the nation. They have fallen substantially almost about 30-35% with the markets, but their earnings are going to be much better. That could be another buy.
Q: Are you buying right now or are you still waiting for the market to cool off a bit more?
A: I think we are ready to buy and as we go along as closer to April, and after April, I do feel there would be a consolidation.
Q: How much cash are you sitting on?
A: About 30%.
Q: The sectors that you are mentioning, does technology find any room there? Do you believe that sector has bottom down and will it be the front liners or would you select midcaps?
A: Technology has many facets to it. On the one hand you have people like Infosys, Wipro etc and there is another technology sector, which is not linked to international happenings for example ICSA. It’s a midcap company which is more into supplying software for power industries in India. It has fallen tremendously and nothing has gone wrong with it because of international happenings. So that could be one.
You could also look at something like CMC which is into training and whatever export is cancelled by their imports, so the net fact would be positive for them. One could also take a contra call, something like Prithvi Information which is just a duplication of Infosys or Wipro, but it discounted at the current levels by hardly Rs 2. The company has an excellent track record and is well managed.
Disclosure: Yes, we have holdings in all of these and our clients would have.
Source: Moneycontrol.com
Monday, March 17, 2008
Sensex closes down 1000 pts; 2nd biggest fall ever
The markets ended near the lowest point of the day with a sharp cut on account of heavy selling in scrips across sectors. It was the second biggest single day point fall for Sensex ever, down nearly 1000 points. It was the lowest close for Nifty since September 2007 and lowest close for Sensex since August 2007.
Broader markets underperformed the benchmark indices and both the midcap and smallcap indices are down over 6% each. NSE advance:decline was at 1:17. All sectoral indices closed in red, not a single Sensex & Nifty stock was in green.
Indian markets were the worst performers in Asia underperforming all Asian peers. The cues from US financial markets were extremely negative with credit crisis from US investment bank Bear Stearns that has taken a toll on global markets. India has led the downtrend with losses of over 5% followed by Asian peers Hang Seng and Shanghai Composite.
The fall came in after the Fed Reserve cut its discount interest rate at an emergency meeting and JPMorgan Chase agreed to buy Bear Stearns for USD 2 a share.
All BSE sector indices were deep in red. Bankex was top laggard down 9%, followed by realty , metal index down over 8% and oil & gas index were down over 5%.
Sensex closed down 951.03 points or 6.03% at 14809.49, and the Nifty down 242.70 points or 5.11% at 4503.10.
About 427 shares have advanced, 2580 shares declined, and 48 shares are unchanged.
The BSE Midcap Index ended at 6,124.35 down 7%.
The BSE Smallcap Index ended at 7,522.23 down 7%.
The BSE Bankex ended at 7,569.16 down 9%. Bank of India, Andhra Bank, Kotak Mahindra, Oriental Bank, Allahabad Bank moved downwards.
The BSE Capital Goods Index closed down 6.5% at 12,706.31. Astra Microwave, BEML, Crompton Greave, Thermax, Greaves Cotton, Areva T&D closed lower.
The BSE Auto Index closed at 4,329.46 down 4.6%. Escorts, TVS Motor, Amtek Auto, Cummins, Punj Tractors, MRF closed lower.
The BSE Metal Index closed at 13,725.52 down 7.5%. Hind Zinc, Sterlite, NALCO, Shree Precoated, Mah Seamless, Jindal Steel, Jindal Saw, JindalStainless closed lower.
The BSE FMCG Index closed down 3.2% at 2,119.60. Colgate, ITC, Bata India, Godrej Consumer, HUL, GlaxoSmith Con closed lower.
BSE Oil and Gas Index closed at 9,801.86 down 5%. GAIL, Reliance Natura, HPCL, RPL,ONGC, Reliance, ONGC ended in red
BSE power index closed at 2,973.68 down 5.6%. Torrent Power, NTPC, Reliance Energy, Tata Power, Power Grid Corp, Crompton Greave ended in red.
The BSE IT Index was down 3.2% at 3,297.71. I-Flex Solution, Patni Computer, Financial Tech, Mphasis, Tech Mahindra, TCS, Infosys closed lower.
The NSE cash turnover was at Rs 12916.74 crore and the NSE F&O turnover was at Rs 40058.11 crore. The BSE cash turnover was Rs 5708.13 crore. Total market wide turnover was at Rs 58682.98 crore.
Source: Moneycontrol.com
Broader markets underperformed the benchmark indices and both the midcap and smallcap indices are down over 6% each. NSE advance:decline was at 1:17. All sectoral indices closed in red, not a single Sensex & Nifty stock was in green.
Indian markets were the worst performers in Asia underperforming all Asian peers. The cues from US financial markets were extremely negative with credit crisis from US investment bank Bear Stearns that has taken a toll on global markets. India has led the downtrend with losses of over 5% followed by Asian peers Hang Seng and Shanghai Composite.
The fall came in after the Fed Reserve cut its discount interest rate at an emergency meeting and JPMorgan Chase agreed to buy Bear Stearns for USD 2 a share.
All BSE sector indices were deep in red. Bankex was top laggard down 9%, followed by realty , metal index down over 8% and oil & gas index were down over 5%.
Sensex closed down 951.03 points or 6.03% at 14809.49, and the Nifty down 242.70 points or 5.11% at 4503.10.
About 427 shares have advanced, 2580 shares declined, and 48 shares are unchanged.
The BSE Midcap Index ended at 6,124.35 down 7%.
The BSE Smallcap Index ended at 7,522.23 down 7%.
The BSE Bankex ended at 7,569.16 down 9%. Bank of India, Andhra Bank, Kotak Mahindra, Oriental Bank, Allahabad Bank moved downwards.
The BSE Capital Goods Index closed down 6.5% at 12,706.31. Astra Microwave, BEML, Crompton Greave, Thermax, Greaves Cotton, Areva T&D closed lower.
The BSE Auto Index closed at 4,329.46 down 4.6%. Escorts, TVS Motor, Amtek Auto, Cummins, Punj Tractors, MRF closed lower.
The BSE Metal Index closed at 13,725.52 down 7.5%. Hind Zinc, Sterlite, NALCO, Shree Precoated, Mah Seamless, Jindal Steel, Jindal Saw, JindalStainless closed lower.
The BSE FMCG Index closed down 3.2% at 2,119.60. Colgate, ITC, Bata India, Godrej Consumer, HUL, GlaxoSmith Con closed lower.
BSE Oil and Gas Index closed at 9,801.86 down 5%. GAIL, Reliance Natura, HPCL, RPL,ONGC, Reliance, ONGC ended in red
BSE power index closed at 2,973.68 down 5.6%. Torrent Power, NTPC, Reliance Energy, Tata Power, Power Grid Corp, Crompton Greave ended in red.
The BSE IT Index was down 3.2% at 3,297.71. I-Flex Solution, Patni Computer, Financial Tech, Mphasis, Tech Mahindra, TCS, Infosys closed lower.
The NSE cash turnover was at Rs 12916.74 crore and the NSE F&O turnover was at Rs 40058.11 crore. The BSE cash turnover was Rs 5708.13 crore. Total market wide turnover was at Rs 58682.98 crore.
Source: Moneycontrol.com
Subscribe to:
Posts (Atom)