With the government devising alternative ways to trail black money, the Banking Transaction Tax will be withdrawn by the end of this year, Finance Minister P Chidambaram said on Wednesday.
Intervening in the debate on the Finance Bill in the Rajya Sabha, Chidambaram said the BTT was introduced for a specific purpose of detecting unaccounted money in the absence of alternative methods. "The tax (BTT) will be withdrawn by the end of the year," he said.
The alternative methods to catch people with unaccounted money would be provided by the provisions in the new Money Laundering Law, Chidambaram said.
The Finance Minister disagreed with BJP leader Jaswant Singh that the BTT was causing inconvenience to people. "How many people take out Rs 50,000 in cash in single transaction in a day," he asked.
Chidambaram offered to share the names of some 'big fish' who were caught by the tax authorities with the help of the cues provided by the BTT.
He clarified that the tax was applicable only on cash and not on payment by cheques
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EIA Inventory
EIA Inventory's Actual Data Crude Oil +3.8 mbbl, Distillate +1.10 mbbl and Gasoline -1.5 mbbl. Data is Bearish for Crude oil
Adani Power to raise USD 1 bn via IPO: Sources
Adani Power will file its Draft Red Herring Prospectus, or DRHP, in next 10 days, reports CNBC-TV18, quoting sources. The company is going to raise close to USD 1 billion via this IPO.
Adnani Power a 86% subsidiary of Adani Enterprise has a power generation project pipeline of 9,900 MW.
During October 2007, Adnani Power had offered 9% stake to 3i Capital for Rs 900 crore. Adani Enterprises stake is valued at over Rs 15,000 crore.
The company plans to dilute close to 15% stake for Rs 4,000-5,000 crore. Thus, the company is valuing between Rs 20,000-25,000 crore.
Adnani Power a 86% subsidiary of Adani Enterprise has a power generation project pipeline of 9,900 MW.
During October 2007, Adnani Power had offered 9% stake to 3i Capital for Rs 900 crore. Adani Enterprises stake is valued at over Rs 15,000 crore.
The company plans to dilute close to 15% stake for Rs 4,000-5,000 crore. Thus, the company is valuing between Rs 20,000-25,000 crore.
Experts differ on road ahead for mkts
After yesterday's RBI powered rally, the markets settled down to consolidate. With traders jittery ahead of tonight's crucial US Fed meet, the markets slipped into the red. The Nifty closed at 5,166 down 30 points, while the Sensex shut shop at 17,287 down 91 points.
Dipan Mehta, Member, BSE & NSE, said the trend is still up. "But we may be seeing some amount of profit booking, and absence of institutional support at higher levels. What is most heartening is the news flow which remains quite positive on the earnings as well as the economy side, especially the Indian situation where the steps taken by RBI and the policy that they had announced yesterday were extremely positive for our markets. Our focus is on the news flow that is corporate as well as economic. We are quite happy and satisfied with it. There could be a correction of may be a few percentage points here or there, but by and large the market should be able to build on these gains," he added
He feels the markets could remain rangebound. "18,000-19,000 could prove to be a very strong barrier. We will see a lot of action which is stocks specific, where stocks prices are reacting to positive results and statements being made by the management. Wherever there has been fear on account of derivative losses or some one time losses, and as and when those losses are not been factored in or they don’t exist, we are seeing positive sentiment being built in those stocks, and lot of institutional and retail investors are getting into those companies. Over the next 2-3 months, the action will shift to small midcap stocks which have been battered on account of good corporate earnings. We are seeing there is good visibility and the price earnings multiples are quite attractive."
Anil Manghnani of Modern Shares & Stock Brokers said investors could buy on every fall right up to 50-week DMA. "I am getting conflicting views on the charts. A lot of moving averages have been crossed but unfortunately when I start looking at things like RSI or Elliot’s waves, I don’t see the same amount of conviction. Since the levels have been crossed, one has no choice but to play for the next level. One could do so with stop losses because in these bear phases that we have been through in the last couple of months, we do tend to get situations where one can have a false breakout and then after a couple of days it breaks down again. If one is a trend follower or position player, every fall right up to the 50-week moving average would be a buy with only a stop loss below that. So, for the time being that could come closer to 5,000 to 4,950 sorts of levels on the Nifty. Till that one would probably have buy on every fall."
Source : IMW/CNBC-TV18
Dipan Mehta, Member, BSE & NSE, said the trend is still up. "But we may be seeing some amount of profit booking, and absence of institutional support at higher levels. What is most heartening is the news flow which remains quite positive on the earnings as well as the economy side, especially the Indian situation where the steps taken by RBI and the policy that they had announced yesterday were extremely positive for our markets. Our focus is on the news flow that is corporate as well as economic. We are quite happy and satisfied with it. There could be a correction of may be a few percentage points here or there, but by and large the market should be able to build on these gains," he added
He feels the markets could remain rangebound. "18,000-19,000 could prove to be a very strong barrier. We will see a lot of action which is stocks specific, where stocks prices are reacting to positive results and statements being made by the management. Wherever there has been fear on account of derivative losses or some one time losses, and as and when those losses are not been factored in or they don’t exist, we are seeing positive sentiment being built in those stocks, and lot of institutional and retail investors are getting into those companies. Over the next 2-3 months, the action will shift to small midcap stocks which have been battered on account of good corporate earnings. We are seeing there is good visibility and the price earnings multiples are quite attractive."
Anil Manghnani of Modern Shares & Stock Brokers said investors could buy on every fall right up to 50-week DMA. "I am getting conflicting views on the charts. A lot of moving averages have been crossed but unfortunately when I start looking at things like RSI or Elliot’s waves, I don’t see the same amount of conviction. Since the levels have been crossed, one has no choice but to play for the next level. One could do so with stop losses because in these bear phases that we have been through in the last couple of months, we do tend to get situations where one can have a false breakout and then after a couple of days it breaks down again. If one is a trend follower or position player, every fall right up to the 50-week moving average would be a buy with only a stop loss below that. So, for the time being that could come closer to 5,000 to 4,950 sorts of levels on the Nifty. Till that one would probably have buy on every fall."
Source : IMW/CNBC-TV18
Rupee turns stronger against US dollar
Rupee turned stronger by about 11 paise against the US dollar in late morning deals on Friday, buoyed by a firm trend in equity market and weakness in dollar overseas.
In active trade at the interbank foreign exchange (forex) market, the local currency resumed firm at 41.09/11 from overnight close of 41.09/11 and later surged to 41.0450/0550 per dollar in late morning deals.
The benchmark Sensex surged further by about 67.40 points during morning trade to touch 15,189.41, gaining more than 1,000 points since August 24.
The weak dollar overseas Markets also aided the rupee sentiment.
The rupee also drew support from petering out dollar demand. Oil refiners were consistent buyers in the greenback in the last few days to meet their month-end payments.
Forex dealers said firm equity Markets and weak dollar overseas were the main factors working in favour of rupee.
Dollar's weakness in international Markets was attributed to indications of a possible interest rate cut.
In active trade at the interbank foreign exchange (forex) market, the local currency resumed firm at 41.09/11 from overnight close of 41.09/11 and later surged to 41.0450/0550 per dollar in late morning deals.
The benchmark Sensex surged further by about 67.40 points during morning trade to touch 15,189.41, gaining more than 1,000 points since August 24.
The weak dollar overseas Markets also aided the rupee sentiment.
The rupee also drew support from petering out dollar demand. Oil refiners were consistent buyers in the greenback in the last few days to meet their month-end payments.
Forex dealers said firm equity Markets and weak dollar overseas were the main factors working in favour of rupee.
Dollar's weakness in international Markets was attributed to indications of a possible interest rate cut.
Today Stock Mkts close moderately down: Bank, realty weak; FMCG up
The markets were seen consolidating in today's session as it closed lower with moderate losses. Selling pressure was seen in bank, oil & gas, realty stocks. However, FMCG and IT index has outperformed other sectoral indices. The BSE midcap and smallcap closed with marginal losses.
On the global front, Asia markets ended mixed and Europe was also trading mixed.
Sensex closed down 91.15 points or 0.52% at 17287.31, and the Nifty down 29.60 points or 0.57% at 5165.90.
About 1378 shares have advanced, 1488 shares declined, and 216 shares are unchanged.
The BSE Midcap Index ended at 7,138.74 down 0.1%.
The BSE Smallcap Index ended at 8,773.57 down 0.1%.
The BSE Bankex ended at 8,816.99 down 1.7%. Bank of India, Andhra Bank, Kotak Mahindra, Oriental Bank, Allahabad Bank moved downwards.
The BSE Capital Goods Index closed up 0.2% at 13,755.04. Praj Industries, AIA Engineering, Rel Ind Infra, Kirloskar Oil, Bharat Bijlee, Astra Microwave, Lakshmi Machine closed higher
The BSE Auto Index closed at 4,708.32 up 1%. TVS Motor, Mah and Mah, Bosch, Tata Motors, Ashok Leyland, Hind Motors, Maruti Suzuki, Punj Tractors closed higher.
The BSE Metal Index closed at 16,090.20 down 0.6%. Hind Zinc, Sterlite, NALCO, Shree Precoated, Mah Seamless, Jindal Steel, Jindal Saw, JindalStainless closed lower.
The BSE FMCG Index closed up 2% at 2,460.78. Colgate, ITC, Godrej Consumer, HUL, GlaxoSmith Con closed higher.
BSE Oil and Gas Index closed at 11,480.55 down 1.6%. GAIL, Reliance Natura, HPCL, RPL,ONGC, Reliance, ONGC ended in red.
BSE power index closed flat at 3,207.81. Torrent Power, NTPC, Reliance Energy, Tata Power, Power Grid Corp, ended lower.
The BSE IT Index was up 0.2% at 4,244.56. Wipro, I-Flex Solution, Patni Computer, Tech Mahindra, TCS, Infosys closed higher.
Mkt trades weak: Bank, oil dowm; FMCG, IT up
The markets are trading weak with moderate losses on account of selling pressure in bank, oil & gas, realty stocks. However, FMCG and IT index has outperformed other sectoral indices. The BSE midcap and smallcap are trading with marginal gain.
On the global front, Asia markets ended mixed and Europe was also trading mixed.
At 1.48 hrs IST, the Sensex is up 6.02 points or 0.03% at 17384.48, and the Nifty down 14.05 points or 0.27% at 5181.45.
About 1485 shares have advanced, 1376 shares declined, and 221 shares are unchanged.
The BSE IT index was up nearly 2% at 4317 and FMCG index was up 1% at 2438.
Top losers on the bourses are HDFC, Grasim and ICICI Bank, Cairn India and NALCO.
Top gainers on the bourses are Infosys, Tata Motors, TCS, BPCL and SAIL are among major gainers
Mkts trading near day's lows; Nifty below 5200 level
The markets are trading near day’s lows as bank, oil & gas, realty stocks witnessing selling pressure. However, IT index has outperformed other sectoral indices. The BSE midcap and smallcap are trading with marginal gain.
At 12.40 pm, the Sensex is down 62.96 points or 0.36% at 17315.50, and the Nifty down 28.85 points or 0.56% at 5166.65.
About 1553 shares have advanced, 1303 shares declined, and 226 shares are unchanged.
The BSE IT index was up nearly 2% at 4317 and FMCG index was up 1% at 2438.
Top losers on the bourses are HDFC, Grasim and ICICI Bank, Cairn India and NALCO.
Top gainers on the bourses are Infosys, Tata Motors, TCS, BPCL and SAIL are among major gainers
Mkts choppy; Realty, auto, power stks up
Markets have given up its morning gains and are hovering around yesterday’s close. Buying interest is seen in realty, auto and power stocks. However, bank, IT and metal stocks are witnessing selling pressure.
At 10.48 am, the Sensex is up 4.99 points or 0.03% at 17383.45, and the Nifty up 8.50 points or 0.16% at 5204.00.
About 1708 shares have advanced, 1150 shares declined, and 224 shares are unchanged.
Top gainers on the bourses are Reliance Comm, Tata Motors, M&M, Idea Cellular and Maruti Suzuki.
Most active shares on BSE are Sesa Goa, Reliance Petro and Indiabulls Sec.
Mkt opens with good gains; DLF, Rel Comm up
The markets have opened with good gain. Nifty trading above 5200 mark. DLF, Reliance Comm, JP Associate are witnessing buiyng interest ahead of their earnings.
At 19.56 am, the Sensex was up points 91 at 17468, and the Nifty was up 23 points at 5218.50.
Unitech, Hindalco, Sayam, Suzlon, Dr Reddy Labs are among major gainers.
IFCI, Nagarjuna Fertiliser are among major losers.
Asian Markets:
Asian markets were trading firm. Hong Kong's Hang Seng slipped 0.17% or 43.10 points at 25,871.05. Taiwan's Taiwan Weighted gained 0.41% or 36.80 points at 8,928.54.
Singapore's Straits Times was up 0.06% or 1.75 points at 3,174.11. South Korea's Seoul Composite rose 0.29% or 5.21 points at 1,816.72.
US Markets:
US markets ended almost flat as the markets are still jittery ahead of the Fed decision and the tide turned towards technology stocks. Among the tech pack, Google and Apple gained over a percent. IBM also rose 1% as it announced that it is raising its dividend by 25%. The Dow lost 39 points to close at 12,832. The Nasdaq however shut almost 2 points higher at 2,426. While the S&P 500 closed 5 points lower at 1,391.
F&O cues:
Futures Open Int up by Rs 3,442 cr, Options Open Int up by Rs 3,242 crore
Nifty Futures add 13 lakh shares in Open Int, at 23-point premium
Nifty Open Int Put-Call ratio at 1.36 Vs 1.37
Nifty Puts add 21 lakh, Calls add 16 lakh shares in Open Int
Nifty 5000 Put adds 4.5 lakh shares in Open Int
Nifty 5100 Put adds 3.5 lakh shares in Open Int
Nifty 5200 Call adds 4.2 lakh shares in Open Int
Nifty 5400 Call adds 4.2 lakh shares in Open Int
Stock Futures add 4 cr shares in Open Int
Market cues:
Results today: DLF, Rel Comm, Hindalco, HDFC, JP Assoc
FIIs net buy $20.1 mn in equity on Apr 28
MFs net sell Rs 199.6 cr in equity on Apr 28
NSE F&O Open Int up by Rs 6,684 crore at Rs 60,856 crore
Source : moneycontrol.com
On the global front, Asia markets ended mixed and Europe was also trading mixed.
Sensex closed down 91.15 points or 0.52% at 17287.31, and the Nifty down 29.60 points or 0.57% at 5165.90.
About 1378 shares have advanced, 1488 shares declined, and 216 shares are unchanged.
The BSE Midcap Index ended at 7,138.74 down 0.1%.
The BSE Smallcap Index ended at 8,773.57 down 0.1%.
The BSE Bankex ended at 8,816.99 down 1.7%. Bank of India, Andhra Bank, Kotak Mahindra, Oriental Bank, Allahabad Bank moved downwards.
The BSE Capital Goods Index closed up 0.2% at 13,755.04. Praj Industries, AIA Engineering, Rel Ind Infra, Kirloskar Oil, Bharat Bijlee, Astra Microwave, Lakshmi Machine closed higher
The BSE Auto Index closed at 4,708.32 up 1%. TVS Motor, Mah and Mah, Bosch, Tata Motors, Ashok Leyland, Hind Motors, Maruti Suzuki, Punj Tractors closed higher.
The BSE Metal Index closed at 16,090.20 down 0.6%. Hind Zinc, Sterlite, NALCO, Shree Precoated, Mah Seamless, Jindal Steel, Jindal Saw, JindalStainless closed lower.
The BSE FMCG Index closed up 2% at 2,460.78. Colgate, ITC, Godrej Consumer, HUL, GlaxoSmith Con closed higher.
BSE Oil and Gas Index closed at 11,480.55 down 1.6%. GAIL, Reliance Natura, HPCL, RPL,ONGC, Reliance, ONGC ended in red.
BSE power index closed flat at 3,207.81. Torrent Power, NTPC, Reliance Energy, Tata Power, Power Grid Corp, ended lower.
The BSE IT Index was up 0.2% at 4,244.56. Wipro, I-Flex Solution, Patni Computer, Tech Mahindra, TCS, Infosys closed higher.
Mkt trades weak: Bank, oil dowm; FMCG, IT up
The markets are trading weak with moderate losses on account of selling pressure in bank, oil & gas, realty stocks. However, FMCG and IT index has outperformed other sectoral indices. The BSE midcap and smallcap are trading with marginal gain.
On the global front, Asia markets ended mixed and Europe was also trading mixed.
At 1.48 hrs IST, the Sensex is up 6.02 points or 0.03% at 17384.48, and the Nifty down 14.05 points or 0.27% at 5181.45.
About 1485 shares have advanced, 1376 shares declined, and 221 shares are unchanged.
The BSE IT index was up nearly 2% at 4317 and FMCG index was up 1% at 2438.
Top losers on the bourses are HDFC, Grasim and ICICI Bank, Cairn India and NALCO.
Top gainers on the bourses are Infosys, Tata Motors, TCS, BPCL and SAIL are among major gainers
Mkts trading near day's lows; Nifty below 5200 level
The markets are trading near day’s lows as bank, oil & gas, realty stocks witnessing selling pressure. However, IT index has outperformed other sectoral indices. The BSE midcap and smallcap are trading with marginal gain.
At 12.40 pm, the Sensex is down 62.96 points or 0.36% at 17315.50, and the Nifty down 28.85 points or 0.56% at 5166.65.
About 1553 shares have advanced, 1303 shares declined, and 226 shares are unchanged.
The BSE IT index was up nearly 2% at 4317 and FMCG index was up 1% at 2438.
Top losers on the bourses are HDFC, Grasim and ICICI Bank, Cairn India and NALCO.
Top gainers on the bourses are Infosys, Tata Motors, TCS, BPCL and SAIL are among major gainers
Mkts choppy; Realty, auto, power stks up
Markets have given up its morning gains and are hovering around yesterday’s close. Buying interest is seen in realty, auto and power stocks. However, bank, IT and metal stocks are witnessing selling pressure.
At 10.48 am, the Sensex is up 4.99 points or 0.03% at 17383.45, and the Nifty up 8.50 points or 0.16% at 5204.00.
About 1708 shares have advanced, 1150 shares declined, and 224 shares are unchanged.
Top gainers on the bourses are Reliance Comm, Tata Motors, M&M, Idea Cellular and Maruti Suzuki.
Most active shares on BSE are Sesa Goa, Reliance Petro and Indiabulls Sec.
Mkt opens with good gains; DLF, Rel Comm up
The markets have opened with good gain. Nifty trading above 5200 mark. DLF, Reliance Comm, JP Associate are witnessing buiyng interest ahead of their earnings.
At 19.56 am, the Sensex was up points 91 at 17468, and the Nifty was up 23 points at 5218.50.
Unitech, Hindalco, Sayam, Suzlon, Dr Reddy Labs are among major gainers.
IFCI, Nagarjuna Fertiliser are among major losers.
Asian Markets:
Asian markets were trading firm. Hong Kong's Hang Seng slipped 0.17% or 43.10 points at 25,871.05. Taiwan's Taiwan Weighted gained 0.41% or 36.80 points at 8,928.54.
Singapore's Straits Times was up 0.06% or 1.75 points at 3,174.11. South Korea's Seoul Composite rose 0.29% or 5.21 points at 1,816.72.
US Markets:
US markets ended almost flat as the markets are still jittery ahead of the Fed decision and the tide turned towards technology stocks. Among the tech pack, Google and Apple gained over a percent. IBM also rose 1% as it announced that it is raising its dividend by 25%. The Dow lost 39 points to close at 12,832. The Nasdaq however shut almost 2 points higher at 2,426. While the S&P 500 closed 5 points lower at 1,391.
F&O cues:
Futures Open Int up by Rs 3,442 cr, Options Open Int up by Rs 3,242 crore
Nifty Futures add 13 lakh shares in Open Int, at 23-point premium
Nifty Open Int Put-Call ratio at 1.36 Vs 1.37
Nifty Puts add 21 lakh, Calls add 16 lakh shares in Open Int
Nifty 5000 Put adds 4.5 lakh shares in Open Int
Nifty 5100 Put adds 3.5 lakh shares in Open Int
Nifty 5200 Call adds 4.2 lakh shares in Open Int
Nifty 5400 Call adds 4.2 lakh shares in Open Int
Stock Futures add 4 cr shares in Open Int
Market cues:
Results today: DLF, Rel Comm, Hindalco, HDFC, JP Assoc
FIIs net buy $20.1 mn in equity on Apr 28
MFs net sell Rs 199.6 cr in equity on Apr 28
NSE F&O Open Int up by Rs 6,684 crore at Rs 60,856 crore
Source : moneycontrol.com
Market closing Report
European markets are still trading in the negative, while the Asian markets had a mixed day. The Indian market also witnessed some selling pressure ahead of the US Fed meet tonight and a holiday (on account of Maharashtra Day) tomorrow. Sensex closed at 17287, down 91 points and Nifty at 5165, down 29 points from the previous close. The CNX Midcaps index was down 0.24%, BSE Smallcaps index was down 0.30%. The market breadth was negative with advances at 562 against declines of 682 on the NSE. Top Nifty gainers included ITC, SAIL and Tata Motors while losers included Cairn India, HDFC and DLF
Sintex Industries & Bank of India
Sintex Industries consolidated total income is at Rs 959 crore versus Rs 390 crore, net profit at Rs 94 crore versus Rs 53 crore, says Sunil Kanojia, group president of the company, on CNBC TV18. The stock is currently trading at Rs 462, up 5.01% on the BSE
Bank of India has resistance at Rs 380-400 and support at Rs 320, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 344, up 3.45% on the BSE
Bank of India has resistance at Rs 380-400 and support at Rs 320, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 344, up 3.45% on the BSE
Angel Broking has a target price of Rs 427 for Corporation Bank
Angel Broking has a target price of Rs 427 for Corporation Bank, reports Zee Business. The stock is currently trading at Rs 338, down 1.46% on the BSE. It has a target price of Rs 1885 for HDFC Bank.which is trading at Rs 1539, down 0.50% on the BSE
Apollo to invest Rs 1000 cr in 15 new hospitals
Medical care services provider Apollo Hospital's group on Wednesday said it will be investing about Rs 1,000 crore in the next 18 months to set up about 15 hospitals in tier II and III cities in India.
The hospital chain, which is looking for an overseas expansions, is also planning to re-enter Sri Lanka besides expanding its operations in African continents.
"The idea is to set up tertiary hospitals in tier II and III cities, we plan to set up about 15 hospitals in next 18 months with an investment of about Rs 1,000 crore," Apollo Hospitals Group Chairman Prathap C Reddy said in New Delhi on the sidelines of CII annual session.
He said on average these hospitals would have around 200 beds and in the next 18 months, the group is looking at 10,000-bed capacity.
Commenting on overseas expansions, Reddy said, the group is planning to re-enter Sri Lanka again.
"We have written to the Sri Lankan government and this time around, we will have 51 per cent or more stake," Reddy said.
Apollo hospitals earlier had operations in Sri Lanka in which they had minority stake and it had to abandon the project following the take-over by the Sri Lankan business tycoon Harry Jayawardene.
The hospital chain, which is looking for an overseas expansions, is also planning to re-enter Sri Lanka besides expanding its operations in African continents.
"The idea is to set up tertiary hospitals in tier II and III cities, we plan to set up about 15 hospitals in next 18 months with an investment of about Rs 1,000 crore," Apollo Hospitals Group Chairman Prathap C Reddy said in New Delhi on the sidelines of CII annual session.
He said on average these hospitals would have around 200 beds and in the next 18 months, the group is looking at 10,000-bed capacity.
Commenting on overseas expansions, Reddy said, the group is planning to re-enter Sri Lanka again.
"We have written to the Sri Lankan government and this time around, we will have 51 per cent or more stake," Reddy said.
Apollo hospitals earlier had operations in Sri Lanka in which they had minority stake and it had to abandon the project following the take-over by the Sri Lankan business tycoon Harry Jayawardene.
Mercator Lines has resistance at Rs 125-130-140
Mercator Lines has resistance at Rs 125-130-140 if it can trade above Rs 100, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 101, up 6.60% on the BSE
HDFC posts Q4 income up 33% at Rs 2320 crore
HDFC posts Q4 income up 33% at Rs 2320 crore versus Rs 1733 crore, PAT at Rs 768 crore versus Rs 550 crore, says Keki Mistry, MD of the company, on NDTV Profit. The company to sustain growth of 20-25%, loan disbursements are up 26% at Rs 32,875 crore and sees no change rates on account of CRR hike, he adds. The stock is currently trading at Rs 2810, down 2.40% on the BSE.
Bharti Airtel to reduce roaming and STD charges by 40%; Angel Broking maintains Buy rating
Bharti Airtel has started another price war by reducing the STD and roaming costs for its subscribers. Market experts believe that the move from Telecom major to reduce its tariff by 40% will leave other operators with no option but to reduce their charges as well.
Angel Stock Broking has maintained BUY rating for Bharti Airtel. The 12-month price target for the stock is at Rs 1125.
Bharti reported a 14.4% growth on quarterly basis for the quarter ending March 2008. Bharti has reported a robust growth in subscriber numbers. The stock closed at Rs 927 on Monday after registering marginal gains. The stock has touched a 52-week high of Rs 1184 and a 52-week low of Rs 606 on NSE.
Angel Stock Broking has maintained BUY rating for Bharti Airtel. The 12-month price target for the stock is at Rs 1125.
Bharti reported a 14.4% growth on quarterly basis for the quarter ending March 2008. Bharti has reported a robust growth in subscriber numbers. The stock closed at Rs 927 on Monday after registering marginal gains. The stock has touched a 52-week high of Rs 1184 and a 52-week low of Rs 606 on NSE.
Kohinoor Broadcasting has resistance at Rs 14-16
Kohinoor Broadcasting has resistance at Rs 14-16 where one can book profits, says MB Singh, technical analyst, on Zee Business. The stock is currently trading at Rs 9.85, up 3.58% on the BSE
Stock Markets are Trading Quit
The market is trading quiet. Sensex is trading at 17332, down 45 points and Nifty is at 5173, down 22 points from the previous close. The CNX Midcaps index is up 0.23%, BSE Smallcaps index is up 0.37%. Cement and metals are trading soft. The market breadth is positive with advances at 639 against declines of 585 on the NSE
RBI Setting targets for FY2009
The RBI has set a target of 20% growth in Non-food Creditfor FY2009E, decidedly more hawkish than the 24-25%target that had been set for FY2008. Tight Monetary Policy has already ucceeded in progressively bringing down yoy growth in Credit to 22% during FY2008.It is yoy growth in Money Supply that has remained obstinately above RBI's comfort level, primarily due to the continued surge in Capital Inflows in one form or the other(presently, coming in the form of unprecedented FDI and PE Inflows). The RBI has set a target of 16.5%-17.0% growth in Money Supply (M3), about 50bp lower than the target set for FY2008, but still much lower than the current yoy growth rate of 21%. The RBI does however, expect 8.0-8.5% growth in GDP in FY2009
Key Economic Indicators FY2007A FY2008A FY2009E
GDP Growth 9.6% 8.7% 8.0-8.5%
Inflation 5.9% 7.4% 5.5%
Money Supply (M3) 23.7% 20.7% 16.5-17.0%
Deposits 23.8% 22.2% 17.0%
Non-food Credit 28.5% 22.3% 20.0%
Exhibit 1: Macro-economic Targets for FY2009E
Source: RBI's FY2008-09 Annual Monetary Policy
Key Economic Indicators FY2007A FY2008A FY2009E
GDP Growth 9.6% 8.7% 8.0-8.5%
Inflation 5.9% 7.4% 5.5%
Money Supply (M3) 23.7% 20.7% 16.5-17.0%
Deposits 23.8% 22.2% 17.0%
Non-food Credit 28.5% 22.3% 20.0%
Exhibit 1: Macro-economic Targets for FY2009E
Source: RBI's FY2008-09 Annual Monetary Policy
Hawkish, according high priority to price stability; CRR hiked by 25bp
The RBI policy announced yesterday was largely in line withour expectations - hawkish, according high priority to pricestability and well-anchored inflationary expectations. ThePolicy acknowledged the challenges created by a growingset of adverse international developments. As expected,further tightening was announced, except that it took theform of a further 25bp CRR hike, taking CRR to 8.25% andleaving the Repo and Reverse Repo rates unchanged.
Karvy Stock Broking has a target price of Rs 121 for Andhra Bank
Karvy Stock Broking has a target price of Rs 121 for Andhra Bank, reports Zee Business. The stock is currently trading at Rs 81, down 0.12% on the BSE. It has a target price of Rs 85 for Dena Bank which is trading at Rs 59, up 1.11% on the BSE
Tata, Reliance to pay Rs 700 cr to BSNL
The Supreme Court has held Tata Teleservices 'Walky' and Reliance Communication's (formerly Infocom) 'Unlimited Cordless' as limited mobile phones, hence they are liable to pay Access Deficit Charge (ADC) to BSNL for interconnection.
A bench headed by Justice H S Kapadia, while dismissing Tata Teleservices and Reliance Communication's petitions, has upheld telecom tribunal TDSAT's order of September 2005 that held these services are not fixed lines telephones, but limited mobile.
The Supreme Court had earlier reserved its judgement on a petition filed by Tata Teleservices challenging the telecom tribunal's order which classified the company's fixed wireless phone service 'Walky' as limited mobile.
With this, the apex court had also reserved Reliance Communication's plea challenging Telecom Dispute Settlement and Appellate Tribunal's (TDSAT) order which held that its fixed wireless telephone was equivalent to mobile service and thus Reliance was liable to pay ADC of over Rs 400 crore.
The tribunal in September 2005 had rejected the Tata Teleservices's petition and held that 'Walky' was actually a WLL (M) service, with limited mobility, and not a fixed telephone service, contrary to the licence granted to the company.
TDSAT had ruled that 'Walky' service offered by Tatas was a mobile service, thus the private company was liable to pay ADC to state-owned BSNL as per the interconnect order of telecom regulator TRAI.
Thus, Tata would have to pay about Rs 300 crore as levy to BSNL on account of ADC.
Source : The Financial Express
A bench headed by Justice H S Kapadia, while dismissing Tata Teleservices and Reliance Communication's petitions, has upheld telecom tribunal TDSAT's order of September 2005 that held these services are not fixed lines telephones, but limited mobile.
The Supreme Court had earlier reserved its judgement on a petition filed by Tata Teleservices challenging the telecom tribunal's order which classified the company's fixed wireless phone service 'Walky' as limited mobile.
With this, the apex court had also reserved Reliance Communication's plea challenging Telecom Dispute Settlement and Appellate Tribunal's (TDSAT) order which held that its fixed wireless telephone was equivalent to mobile service and thus Reliance was liable to pay ADC of over Rs 400 crore.
The tribunal in September 2005 had rejected the Tata Teleservices's petition and held that 'Walky' was actually a WLL (M) service, with limited mobility, and not a fixed telephone service, contrary to the licence granted to the company.
TDSAT had ruled that 'Walky' service offered by Tatas was a mobile service, thus the private company was liable to pay ADC to state-owned BSNL as per the interconnect order of telecom regulator TRAI.
Thus, Tata would have to pay about Rs 300 crore as levy to BSNL on account of ADC.
Source : The Financial Express
BSE SENSEX % Rate of Change
2 day % rate of change is +2.1% (bullish)
5 day % rate of change is +3.5% (bullish)
10 day % rate of change is +9.9% (bullish)
60 day % rate of change is -3.9% (bearish)
250 day % rate of change is +25.3% (bullish)
5 day % rate of change is +3.5% (bullish)
10 day % rate of change is +9.9% (bullish)
60 day % rate of change is -3.9% (bearish)
250 day % rate of change is +25.3% (bullish)
FED interest rate
The market is expecting a 25 bps from the US Fed meeting tonight, reports NDTV Profit. Fed statement may prioritise inflation fears and Fed has already cut rates to 2.25%
Markets turn in Red
Markets have shed their early morning gains, with the benchmark indices witnessing a sharp drop into the negative territory during the previous hour of trade. Selling activities are witnessed in select stocks from the energy, banking and construction sectors while buying interest is being garnered in software, auto and telecom sectors. The advance to decline ratio is almost balanced at 1.1:1 on the BSE.
The BSE Sensex is trading at 17,298 (down 81 points) while the NSE Nifty is trading at 5,168 (down 27 points). The rupee is trading at 40.41 to the dollar.
Software sector stocks are currently trading mixed with the gainers led by NIIT Technologies (up 3%) along with Polaris Software and Geometric Software (both up 2%). As per a leading business daily, 3iInfotech acquired US firm, Regulus Group LLC for the amount of US$ 80 m. The latter is present in the business of remittance processing, which is essentially a document processing service (for example utility bills, telecom bills, insurance related documents etc). This acquisition will make 3iInfotech a global player in payment processing solutions by integrating new acquired Regulus with J&B Software and its products. Regulus reported a topline of US$ 148 m in CY07 and has nearly 1,300 employees under it payroll. The company also has nearly 260 global clients present in the finance, insurance, utilities and healthcare sectors. The stock is currently trading marginally lower.
The aluminium sector stocks are currently trading weak lead by Nalco (down 3%) and Hindalco (down 2%). Nalco announced its annual and fourth quarter results yesterday. During FY08, the sales reduced by 16.1% YoY primarily due the rupee appreciation issue and descending international metal prices. It must be noted that nearly 40% revenues of the company are generated through exports, leading to the dollar depreciation hurting the company's rupee realisations per tonne. The drop in the topline and certain input costs has also led to a 15% YoY fall of the company's operating margins. In absolute numbers, the EBIDTA levels fell by almost 38% YoY. Due to the company's poor performance at the sales and operating level, the net profits and the net profit margins witnessed a fall by 32% YoY and 8% YoY respectively in FY08.
The BSE Sensex is trading at 17,298 (down 81 points) while the NSE Nifty is trading at 5,168 (down 27 points). The rupee is trading at 40.41 to the dollar.
Software sector stocks are currently trading mixed with the gainers led by NIIT Technologies (up 3%) along with Polaris Software and Geometric Software (both up 2%). As per a leading business daily, 3iInfotech acquired US firm, Regulus Group LLC for the amount of US$ 80 m. The latter is present in the business of remittance processing, which is essentially a document processing service (for example utility bills, telecom bills, insurance related documents etc). This acquisition will make 3iInfotech a global player in payment processing solutions by integrating new acquired Regulus with J&B Software and its products. Regulus reported a topline of US$ 148 m in CY07 and has nearly 1,300 employees under it payroll. The company also has nearly 260 global clients present in the finance, insurance, utilities and healthcare sectors. The stock is currently trading marginally lower.
The aluminium sector stocks are currently trading weak lead by Nalco (down 3%) and Hindalco (down 2%). Nalco announced its annual and fourth quarter results yesterday. During FY08, the sales reduced by 16.1% YoY primarily due the rupee appreciation issue and descending international metal prices. It must be noted that nearly 40% revenues of the company are generated through exports, leading to the dollar depreciation hurting the company's rupee realisations per tonne. The drop in the topline and certain input costs has also led to a 15% YoY fall of the company's operating margins. In absolute numbers, the EBIDTA levels fell by almost 38% YoY. Due to the company's poor performance at the sales and operating level, the net profits and the net profit margins witnessed a fall by 32% YoY and 8% YoY respectively in FY08.
Rajesh Exports
Rajesh Exports has bagged an export order worth Rs 534 crore, reports NDTV Profit. The stock is currently trading at Rs 92, up 3.06% on the BSE
Idea Cellular to invest total of $1.4 billion
Idea Cellular to invest total of $1.4 billion for existing 11 circles, reports NDTV Profit. The company plans to invest $400 million for roll out in Tamil Nadu and Orissa. The stock is currently trading at Rs 106, up 1.57% on the BSE
Reliance Communications posts consolidated revenues of Rs 19068 crore
Reliance Communications posts consolidated revenues of Rs 19068 crore, net profit of Rs 5401 crore and EBIDTA of Rs 8198 crore, reports CNBC TV18. The company reports (QoQ) standalone net profit up 9.5% at Rs 1502 crore versus Rs 1372 crore, revenues up 8.9% at Rs 5311 crore versus RS 4874 crore and MTM loss of Rs 25 crore. The positive numbers saw the stock rise and it is currently trading at Rs 582, up 1.59% on the BSE
The market is slipping a bit.
Sensex is trading at 17293, down 85 points and Nifty is at 5169, down 26 points from the previous close. The CNX Midcaps index is trading flat, BSE Smallcaps index is up 0.21%. Cement and metals are trading soft. The market breadth is positive with advances at 628 against declines of 584 on the NSE
INR report
The Rupee weakened to 40.49 against the US dollar yesterday. US dollar demand from state run banks (possibly due to defense related payment) and also demand from a large private sector bank. This demand is not yet over which can result in the rupee opening higher around 40.65. As and when this demand gets over the rupee will once again get stronger. Technically the rupee has to break the 40.82-40.88 zone till then it will find sellers at higher levels. Failure of the rupee to break 40.88 by next week will result in a fall back to 39.90. RBI left interest rate unchanged and instead increased the cash reserve ratio (CRR) in its annual policy meeting. This is just an inflation controlling move and nothing else.
Fed will cut rates by .25%
Fed will keep their options open for a possibility of further cuts. He expects some fiscal stimulus for the US economy during the second half of the year
Fed wants a stronger US dollar they will signal an interest rate pause. If they want a weaker US dollar they will be hawkish or may not signal an end to the interest rate cuts. A weaker US dollar has boosted the US manufacturing sector in 2008. Job losses in the US are mainly in the financial services sector while the manufacturing sector adds to jobs
Fed wants a stronger US dollar they will signal an interest rate pause. If they want a weaker US dollar they will be hawkish or may not signal an end to the interest rate cuts. A weaker US dollar has boosted the US manufacturing sector in 2008. Job losses in the US are mainly in the financial services sector while the manufacturing sector adds to jobs
Indian market are Firm
Markets have given up its morning gains and are hovering around yesterday’s close. Buying interest is seen in realty, auto and power stocks. However, bank, IT and metal stocks are witnessing selling pressure.
At 10.48 am, the Sensex is up 4.99 points or 0.03% at 17383.45, and the Nifty up 8.50 points or 0.16% at 5204.00.
About 1708 shares have advanced, 1150 shares declined, and 224 shares are unchanged.
Top gainers on the bourses are Reliance Comm, Tata Motors, M&M, Idea Cellular and Maruti Suzuki.
Most active shares on BSE are Sesa Goa, Reliance Petro and Indiabulls Sec.
Mkt opens with good gains; DLF, Rel Comm up
The markets have opened with good gain. Nifty trading above 5200 mark. DLF, Reliance Comm, JP Associate are witnessing buiyng interest ahead of their earnings.
At 19.56 am, the Sensex was up points 91 at 17468, and the Nifty was up 23 points at 5218.50.
Unitech, Hindalco, Sayam, Suzlon, Dr Reddy Labs are among major gainers.
IFCI, Nagarjuna Fertiliser are among major losers.
At 10.48 am, the Sensex is up 4.99 points or 0.03% at 17383.45, and the Nifty up 8.50 points or 0.16% at 5204.00.
About 1708 shares have advanced, 1150 shares declined, and 224 shares are unchanged.
Top gainers on the bourses are Reliance Comm, Tata Motors, M&M, Idea Cellular and Maruti Suzuki.
Most active shares on BSE are Sesa Goa, Reliance Petro and Indiabulls Sec.
Mkt opens with good gains; DLF, Rel Comm up
The markets have opened with good gain. Nifty trading above 5200 mark. DLF, Reliance Comm, JP Associate are witnessing buiyng interest ahead of their earnings.
At 19.56 am, the Sensex was up points 91 at 17468, and the Nifty was up 23 points at 5218.50.
Unitech, Hindalco, Sayam, Suzlon, Dr Reddy Labs are among major gainers.
IFCI, Nagarjuna Fertiliser are among major losers.
Reliance Power puts IPO money in MFs
Reliance Power Ltd, which raised Rs 11,562 crore in its IPO in January last, has temporarily parked almost the entire money in mutual funds. The 2007-08 financial results declared by the company on Monday show that Rs 11,412.81 crore is invested in mutual funds. The company has not disclosed either the funds or the schemes where the money has been invested.
The IPO offer document says that the company “intends to invest the funds from the issue in interest bearing liquid instruments including deposits with banks and investments in mutual funds. These investments may include investments in mutual funds managed or financial products sold by one of our affiliates, RCL (Reliance Capital)”
The company has spent only Rs 25.83 crore as of March 31, 2008 in construction and development of its various projects.
The temporary parking of the IPO money in mutual funds has helped the company report a net profit of Rs 94.6 crore for 2007-08. Total income for year stands at Rs 132.8 crore, of which dividend income is Rs 112.7 crore.
The company has also informed that from March 31, Coastal Andhra Power Ltd, Reliance Coal Resources Pvt Ltd, Sasan Power Infrastructure Pvt Ltd, Sasan Power Infraventures Pvt Ltd, Maharashtra Energy Generation Infrastructure Ltd and Coastal Andhra Power Infrastructure Ltd have been incorporated as wholly owned subsidiaries.
On the BSE, the scrip was traded at Rs 403.25, an increase of 0.27 per cent over the previous closing of Rs 402.15, reports The Hindu Business Line.
Source : The Hindu Business Line.
The IPO offer document says that the company “intends to invest the funds from the issue in interest bearing liquid instruments including deposits with banks and investments in mutual funds. These investments may include investments in mutual funds managed or financial products sold by one of our affiliates, RCL (Reliance Capital)”
The company has spent only Rs 25.83 crore as of March 31, 2008 in construction and development of its various projects.
The temporary parking of the IPO money in mutual funds has helped the company report a net profit of Rs 94.6 crore for 2007-08. Total income for year stands at Rs 132.8 crore, of which dividend income is Rs 112.7 crore.
The company has also informed that from March 31, Coastal Andhra Power Ltd, Reliance Coal Resources Pvt Ltd, Sasan Power Infrastructure Pvt Ltd, Sasan Power Infraventures Pvt Ltd, Maharashtra Energy Generation Infrastructure Ltd and Coastal Andhra Power Infrastructure Ltd have been incorporated as wholly owned subsidiaries.
On the BSE, the scrip was traded at Rs 403.25, an increase of 0.27 per cent over the previous closing of Rs 402.15, reports The Hindu Business Line.
Source : The Hindu Business Line.
Asian markets firm trading
sian markets were trading firm. Hong Kong's Hang Seng slipped 0.17% or 43.10 points at 25,871.05.
Taiwan's Taiwan Weighted gained 0.41% or 36.80 points at 8,928.54.
Singapore's Straits Times was up 0.06% or 1.75 points at 3,174.11.
South Korea's Seoul Composite rose 0.29% or 5.21 points at 1,816.72.
Taiwan's Taiwan Weighted gained 0.41% or 36.80 points at 8,928.54.
Singapore's Straits Times was up 0.06% or 1.75 points at 3,174.11.
South Korea's Seoul Composite rose 0.29% or 5.21 points at 1,816.72.
2008-04-29
Rel Capital Q4 net up 19 pc at Rs 365 cr; declares 55 pc dividend
Anil Ambani-led Reliance Capital on Tuesday announced a consolidated net profit of Rs 365.57 crore for the fourth quarter ended March 31, a 19.46 per cent growth over the corresponding period last year
Bonds higher,Rupee ends lower
The spot rupee closed lower at Rs 40.48 per USD as against its previous close of Rs 40.16.
The widely traded 8.24%, 2018 paper ended higher at Rs 102.04 as against its previous close of Rs 100.70
The widely traded 8.24%, 2018 paper ended higher at Rs 102.04 as against its previous close of Rs 100.70
Plan to pull down inflation to 5.5% over the yr: YV Reddy
In its Credit Policy, the RBI has hiked the CRR by 25 bps to 8.25%. It has left the repo, reverse repo rates unchanged.
The response of markets to policy changes have been divergent, the RBI Governor, YV Reddy said. The global growth is slowing down significantly, he said, adding that the inflation is a concern. He sees a conflict between price stability and financial stability. The global slowdown may not lower aggregate food demand, he added. The pass-through of high fuel prices is still incomplete, he said, speaking to the news media. He expects to bring down inflation to 5.5% over the year.
Excerpts from the press conference:
"What we tried to do last time on January 29, I took lot of your time to explain the reasons for the thoughtful in action because we just didn’t act.
When we explained, I explained two things that there is a continuing inflationary pressure and that there are lot of uncertainties and when there are so many global uncertainties, it is not appropriate to take a particular position and get yourself locked in that position and therefore it's better to watch and see what happens.
So we watched and we did take action during the interim as required considering the liquidity conditions. The question is what is the situation now?
The situation now is that there is greater inflationary pressure than what we expected. As far as growth is concerned, moderation is more or less on expected lines, global uncertainties have however increased and infact there is a constellation of adverse factors. We knew that there was global liquidity, we knew that the financial markets were in trouble, we knew that there was problem in fuel, we knew that there are problems related to food, but all of them have happened at the same time and all these factors happening together have resulted in an extraordinary degree of uncertainty.
Also global growth is definitely slowing down and it is significant. The global inflationary pressures have intensified and more importantly, the policies are responding to the immediate problems of financial markets in advanced countries and some of these measures taken in the interest of financial stability at the shorter end, may exactly operate against their important mandate of price stability.
In a way you have a conflict between price stability and financial stability. Although the policy proceeded in the assumption that is usually within inflation and growth and we have maintained price stability and financial stability is supposed to the sub-zoomed in the overall stability. But for the first time, almost globally there is a very clear dilemma or a conflict between choosing the short-term financial stability and the medium-term inflation. The sub-zoomed issue again is when there is a growth slowdown in the major economy. So these are unprecedented dilemmas for policy. Further when the policy measures have been taken, the response of the markets has not been as anticipated, there was a bit of a diversion between the policy objectives and to some extent policy outcome compared to what it was expected.
So we have this extraordinary global situation and domestically everything is going on track, financial stability is maintained, financial markets are alright, financial institutions are doing reasonably well. The only pressure point relates to inflation. Therefore naturally our major focus now in terms of the policy is inflation and therefore that gets the highest priority in terms of the policy.
If I quickly see the change between January stance and this stance, in January the stance was to reinforce the emphasis on price stability. Now we have made it very clear that it accords high priority to price stability. Then we also said well anchored inflationary expectation. Why are we saying these two different things? Either way is because the price stability is depending on the way the price was moved whereas inflation expectations are partly on the action that we take.
So sometimes you have to demonstrate your determination to act on inflation to convince people and for that your expectations should be reasonable. So in a way these are two interrelated and this comes to the important focus at critical junctures of policy as we have now.
Second aspect is somewhat common that we have to respond swiftly to the ongoing developments. In terms of the type of dilemma we face for taking decisions at a global level, it is agreed that there is a global slowdown. If there is a global slowdown what will be the impact on the commodity markets, that really matters.
Food and fuel maybe slightly not entirely linked, because if you look at food, a large demand for food is coming from India and China and that demand is likely to be inelastic because both the economies are growing. So if both the economies are going, there are lot of people to eat more and their food habits are going to be also more intensive in terms of proteins etc."
The response of markets to policy changes have been divergent, the RBI Governor, YV Reddy said. The global growth is slowing down significantly, he said, adding that the inflation is a concern. He sees a conflict between price stability and financial stability. The global slowdown may not lower aggregate food demand, he added. The pass-through of high fuel prices is still incomplete, he said, speaking to the news media. He expects to bring down inflation to 5.5% over the year.
Excerpts from the press conference:
"What we tried to do last time on January 29, I took lot of your time to explain the reasons for the thoughtful in action because we just didn’t act.
When we explained, I explained two things that there is a continuing inflationary pressure and that there are lot of uncertainties and when there are so many global uncertainties, it is not appropriate to take a particular position and get yourself locked in that position and therefore it's better to watch and see what happens.
So we watched and we did take action during the interim as required considering the liquidity conditions. The question is what is the situation now?
The situation now is that there is greater inflationary pressure than what we expected. As far as growth is concerned, moderation is more or less on expected lines, global uncertainties have however increased and infact there is a constellation of adverse factors. We knew that there was global liquidity, we knew that the financial markets were in trouble, we knew that there was problem in fuel, we knew that there are problems related to food, but all of them have happened at the same time and all these factors happening together have resulted in an extraordinary degree of uncertainty.
Also global growth is definitely slowing down and it is significant. The global inflationary pressures have intensified and more importantly, the policies are responding to the immediate problems of financial markets in advanced countries and some of these measures taken in the interest of financial stability at the shorter end, may exactly operate against their important mandate of price stability.
In a way you have a conflict between price stability and financial stability. Although the policy proceeded in the assumption that is usually within inflation and growth and we have maintained price stability and financial stability is supposed to the sub-zoomed in the overall stability. But for the first time, almost globally there is a very clear dilemma or a conflict between choosing the short-term financial stability and the medium-term inflation. The sub-zoomed issue again is when there is a growth slowdown in the major economy. So these are unprecedented dilemmas for policy. Further when the policy measures have been taken, the response of the markets has not been as anticipated, there was a bit of a diversion between the policy objectives and to some extent policy outcome compared to what it was expected.
So we have this extraordinary global situation and domestically everything is going on track, financial stability is maintained, financial markets are alright, financial institutions are doing reasonably well. The only pressure point relates to inflation. Therefore naturally our major focus now in terms of the policy is inflation and therefore that gets the highest priority in terms of the policy.
If I quickly see the change between January stance and this stance, in January the stance was to reinforce the emphasis on price stability. Now we have made it very clear that it accords high priority to price stability. Then we also said well anchored inflationary expectation. Why are we saying these two different things? Either way is because the price stability is depending on the way the price was moved whereas inflation expectations are partly on the action that we take.
So sometimes you have to demonstrate your determination to act on inflation to convince people and for that your expectations should be reasonable. So in a way these are two interrelated and this comes to the important focus at critical junctures of policy as we have now.
Second aspect is somewhat common that we have to respond swiftly to the ongoing developments. In terms of the type of dilemma we face for taking decisions at a global level, it is agreed that there is a global slowdown. If there is a global slowdown what will be the impact on the commodity markets, that really matters.
Food and fuel maybe slightly not entirely linked, because if you look at food, a large demand for food is coming from India and China and that demand is likely to be inelastic because both the economies are growing. So if both the economies are going, there are lot of people to eat more and their food habits are going to be also more intensive in terms of proteins etc."
Sensex to reach @ 19000 in short term
Sensex are Reach to top around 18,500-19,000 for the near-term. Sensex remains bullish for the long-term. "The markets will face a lot of resistance at higher levels on fundamental concerns. So, it will remain rangebound."
RBI hikes CRR by 25 bps
In its Credit Policy, the RBI has hiked the CRR by 25 bps to 8.25%. It has left the repo, reverse repo rates unchanged. The RBI aims at 4-4.5% inflation going forward. It is attempting to bring down the inflation to 5.5% in FY09.
The RBI has set the FY09 GDP growth target at 8-8.5%. It is aiming at a credit growth of 20% in FY09. The central bank has upped its home loan limit of 50% risk weight to Rs 30 lakhs from Rs 20 lakhs. The local factors would remain dominant for policy setting, The RBI said. It will continue emphasising on anchoring inflation expectations. It will also ensure a rate environment with high priority to price stability, it said.
The RBI plans to respond swiftly on a continuing basis to evolving situations. Its emphasis would be on credit quality and delivery for sensitive sectors.
The CRR hike that has come in is only a quarter percent; that’s important. It will take out about Rs 9,250 crore. Quite clearly there was no point in hiking the repo rate at a time when banks are not going to the RBI to borrow and therefore the Reserve Bank has first tried to drain liquidity.
So, the stance is very clear. It has made stabilising inflation or price stability the first goal. That is the change in the stance. It is a slight change in language. But it is emphatic that price stability will be the major goal and the entire monetary and interest rate environment will accord highest priority to price stability and well anchored expectations and then financial market stability and then conducive to growth.
The other important point to note however is that despite this huge emphasis on inflation and the stance to drain our liquidity or manage liquidity to ensure inflation expectations.
The other part of the policy is that it is extremely robust or optimistic on growth. What is the growth target? - 8-8.5%. I cannot remember whether any of the brokerages or institutions were giving GDP target of that order. It is extremely optimistic on investment demand. But there is a slight hint that maybe, the RBI is kind of overstating the optimism because at some point, the RBI Governor says that there is a fear of exaggerated bearishness because of the global environment. So, one has to take that phrase also into cognizance.
But setting aside that caveat, it is extremely optimistic on growth. However, the stance seems to be that since growth is definitely taking care of itself, we will concentrate on liquidity. And when it comes to liquidity, the CRR will be the major instrument used.
The other thing that the RBI is very clear on is it is not at all unhappy with the fall in credit growth. Here is another important statistic and forecast from the RBI. They want the banks credit growth to come down to 20%. Remember in the last policy, it was 24-25%, moderated from 32% in the year earlier. Now it says 20%, which means the current credit offtake of 21% is also higher than the RBIs target of 20%. So, it is quite clearly aiming for a situation where liquidity will be drained, banks will not be encouraged to lend left, right and centre. But it believes all this will not impact growth and it will remain at 8-8.5%. Quite clearly, it is a hawkish stance, no two ways about it. There is no hysteria about inflation. There is a cold assessment and acceptance that inflation is going to remain at elevated levels. It is not going away in a hurry.
But the year-end inflation target has been kept at 5.5%. So, that again is an acceptance. Higher inflation, higher growth target - 5.5% is up from 5%; that the RBI had forecasted for FY08.
The other important point is money supply. The target, which was at 17-17.5% and everyone believes that that target will go on increasing because of higher financial inclusion - that target is down to 16.5-17%. That could be to some extent to also modulate it with a slightly lower growth after growth has come down from 8.5-9% and accordingly, the target for M3 has been brought down to 16.5-17%. So, that is really the major part of the monetary policy instruments and stance. Liquidity will be managed very actively by CRR stipulations and the first dose has already come; a quarter percent hike and that will take effect from May 24, which means another Rs 9,250 crore will be drained. In future as well, the accent will be on inflation since growth apparently is taking care of itself.
Meanwhile, the Vice-Chairman of the Planning Commission, Montek Singh said that he does not see the CRR hike putting an upward pressure on interest rates. One is likely to see moderation in inflation over the time, he added. However, Singh feels that the cement prices are not a cause for concern. "The RBI has done what any Central Bank would do to control inflation. It’s the sensible thing to do. With the good monsoon and wheat, we are in a better situation to control price pressure over the next few weeks," he said.
The RBI has set the FY09 GDP growth target at 8-8.5%. It is aiming at a credit growth of 20% in FY09. The central bank has upped its home loan limit of 50% risk weight to Rs 30 lakhs from Rs 20 lakhs. The local factors would remain dominant for policy setting, The RBI said. It will continue emphasising on anchoring inflation expectations. It will also ensure a rate environment with high priority to price stability, it said.
The RBI plans to respond swiftly on a continuing basis to evolving situations. Its emphasis would be on credit quality and delivery for sensitive sectors.
The CRR hike that has come in is only a quarter percent; that’s important. It will take out about Rs 9,250 crore. Quite clearly there was no point in hiking the repo rate at a time when banks are not going to the RBI to borrow and therefore the Reserve Bank has first tried to drain liquidity.
So, the stance is very clear. It has made stabilising inflation or price stability the first goal. That is the change in the stance. It is a slight change in language. But it is emphatic that price stability will be the major goal and the entire monetary and interest rate environment will accord highest priority to price stability and well anchored expectations and then financial market stability and then conducive to growth.
The other important point to note however is that despite this huge emphasis on inflation and the stance to drain our liquidity or manage liquidity to ensure inflation expectations.
The other part of the policy is that it is extremely robust or optimistic on growth. What is the growth target? - 8-8.5%. I cannot remember whether any of the brokerages or institutions were giving GDP target of that order. It is extremely optimistic on investment demand. But there is a slight hint that maybe, the RBI is kind of overstating the optimism because at some point, the RBI Governor says that there is a fear of exaggerated bearishness because of the global environment. So, one has to take that phrase also into cognizance.
But setting aside that caveat, it is extremely optimistic on growth. However, the stance seems to be that since growth is definitely taking care of itself, we will concentrate on liquidity. And when it comes to liquidity, the CRR will be the major instrument used.
The other thing that the RBI is very clear on is it is not at all unhappy with the fall in credit growth. Here is another important statistic and forecast from the RBI. They want the banks credit growth to come down to 20%. Remember in the last policy, it was 24-25%, moderated from 32% in the year earlier. Now it says 20%, which means the current credit offtake of 21% is also higher than the RBIs target of 20%. So, it is quite clearly aiming for a situation where liquidity will be drained, banks will not be encouraged to lend left, right and centre. But it believes all this will not impact growth and it will remain at 8-8.5%. Quite clearly, it is a hawkish stance, no two ways about it. There is no hysteria about inflation. There is a cold assessment and acceptance that inflation is going to remain at elevated levels. It is not going away in a hurry.
But the year-end inflation target has been kept at 5.5%. So, that again is an acceptance. Higher inflation, higher growth target - 5.5% is up from 5%; that the RBI had forecasted for FY08.
The other important point is money supply. The target, which was at 17-17.5% and everyone believes that that target will go on increasing because of higher financial inclusion - that target is down to 16.5-17%. That could be to some extent to also modulate it with a slightly lower growth after growth has come down from 8.5-9% and accordingly, the target for M3 has been brought down to 16.5-17%. So, that is really the major part of the monetary policy instruments and stance. Liquidity will be managed very actively by CRR stipulations and the first dose has already come; a quarter percent hike and that will take effect from May 24, which means another Rs 9,250 crore will be drained. In future as well, the accent will be on inflation since growth apparently is taking care of itself.
Meanwhile, the Vice-Chairman of the Planning Commission, Montek Singh said that he does not see the CRR hike putting an upward pressure on interest rates. One is likely to see moderation in inflation over the time, he added. However, Singh feels that the cement prices are not a cause for concern. "The RBI has done what any Central Bank would do to control inflation. It’s the sensible thing to do. With the good monsoon and wheat, we are in a better situation to control price pressure over the next few weeks," he said.
2008-04-28
Market opens flat; Siemens, Rel Energy up
The markets are trading with modest gain ahead of credit policy announcement. Buying interest seen in metal, pharma, consumer durable, auto stocks
At 10.36 am, the Sensex was up 29.68 points or 0.17% at 17045.64, and the Nifty was down 0.65 points or 0.01% at 5089.00.
About 1563 shares have advanced, 1291 shares declined, and 226 shares are unchanged.
Top gainers on the bourses are Tata Steel, Jaiprakash Asso, Ranbaxy Labs, Dr Reddys Labs and Tata Comm.
Top losers on the Sensex Bharti Airtel, BHEL and Infosys.
Most active shares on BSE are Rel Capital, Glenmark and Sesa Goa.Market opens flat; Siemens, Rel Energy up
The markets have opened flat ahead of RBI credit policy annoucement. Relaince Energy, Idea Cellular, Tata Steel, Power Grid, Nalco witnessing buying interest.
Siemens was up 5% on the back of good results and approved bonus
At 9.56 am, the Sensex was up 60 points at 17075, and the Nifty up 15 points at 5104.
US markets finished flat as concerns about the Federal Reserve's rate decision kept a lid on activity. Wrigley shares soared 23% on news that Buffett is teaming up with Candy Maker Mars to buy the gum maker for 22 billion dollars.
The Interest-rate decision and Friday's Nonfarm Payroll Data are likely to dominate the market sentiment as the week progresses.
The Dow Jones industrial average slipped 20.11 points, or 0.16%, to 12,871.75. The Standard & Poor's 500 index fell 1.47 points, or 0.11%, to 1,396.37, and the Nasdaq composite index gained 1.47 points, or 0.06%, to 2,424.40.
Asian markets trading mixed. Hong Kong's Hang Seng gained 0.28% 75.05 points at 25,738.34. However, Taiwan's Taiwan Weighted declined 0.25% or 18.05 points at 9,057.34. Singapore's Straits Times 0.77% or 24.64 points at 3,176.99. South Korea's Seoul Composite fell 0.45% or 8.14 points at 1,815.03.
Market cues:
RBI to present monetary policy today
CNBC-TV18 poll says repo rate hike likely
FIIs net buy $86.5 m in equity on Apr 25
MFs net sell Rs 73.4 cr in equity on Apr 25
NSE F&O Open Interest up by Rs 1,625 crore at Rs 55,798 crore
F&O cues:
Nifty Futures turnover at Rs 7,552 cr vs avg of Rs 14,720 cr
Stock Futures turnover at Rs 14,644 cr Vs avg of Rs 16,620 cr
Futures Open Int up by Rs 542 crore, Options Open Int up by Rs 1,083 crore
Nifty Futures add 7 lakh shares in OI, at 17-pt premium
Nifty Open Interest PCR at 1.37 Vs 1.40
Nifty Puts, Calls add 7 lakh shares each in Open Interest
Nifty 4800 Put adds 2.4 lakh shares in Open Interest
Nifty 5000 Put adds 1.6 lakh shares in Open Interest
Nifty 5100 Call adds 2.5 lakh shares in Open Interest
Nifty 5200 Call adds 1.2 lakh shares in Open Interest
Stock Futures add 74 lakh shares in Open Interest
At 10.36 am, the Sensex was up 29.68 points or 0.17% at 17045.64, and the Nifty was down 0.65 points or 0.01% at 5089.00.
About 1563 shares have advanced, 1291 shares declined, and 226 shares are unchanged.
Top gainers on the bourses are Tata Steel, Jaiprakash Asso, Ranbaxy Labs, Dr Reddys Labs and Tata Comm.
Top losers on the Sensex Bharti Airtel, BHEL and Infosys.
Most active shares on BSE are Rel Capital, Glenmark and Sesa Goa.Market opens flat; Siemens, Rel Energy up
The markets have opened flat ahead of RBI credit policy annoucement. Relaince Energy, Idea Cellular, Tata Steel, Power Grid, Nalco witnessing buying interest.
Siemens was up 5% on the back of good results and approved bonus
At 9.56 am, the Sensex was up 60 points at 17075, and the Nifty up 15 points at 5104.
US markets finished flat as concerns about the Federal Reserve's rate decision kept a lid on activity. Wrigley shares soared 23% on news that Buffett is teaming up with Candy Maker Mars to buy the gum maker for 22 billion dollars.
The Interest-rate decision and Friday's Nonfarm Payroll Data are likely to dominate the market sentiment as the week progresses.
The Dow Jones industrial average slipped 20.11 points, or 0.16%, to 12,871.75. The Standard & Poor's 500 index fell 1.47 points, or 0.11%, to 1,396.37, and the Nasdaq composite index gained 1.47 points, or 0.06%, to 2,424.40.
Asian markets trading mixed. Hong Kong's Hang Seng gained 0.28% 75.05 points at 25,738.34. However, Taiwan's Taiwan Weighted declined 0.25% or 18.05 points at 9,057.34. Singapore's Straits Times 0.77% or 24.64 points at 3,176.99. South Korea's Seoul Composite fell 0.45% or 8.14 points at 1,815.03.
Market cues:
RBI to present monetary policy today
CNBC-TV18 poll says repo rate hike likely
FIIs net buy $86.5 m in equity on Apr 25
MFs net sell Rs 73.4 cr in equity on Apr 25
NSE F&O Open Interest up by Rs 1,625 crore at Rs 55,798 crore
F&O cues:
Nifty Futures turnover at Rs 7,552 cr vs avg of Rs 14,720 cr
Stock Futures turnover at Rs 14,644 cr Vs avg of Rs 16,620 cr
Futures Open Int up by Rs 542 crore, Options Open Int up by Rs 1,083 crore
Nifty Futures add 7 lakh shares in OI, at 17-pt premium
Nifty Open Interest PCR at 1.37 Vs 1.40
Nifty Puts, Calls add 7 lakh shares each in Open Interest
Nifty 4800 Put adds 2.4 lakh shares in Open Interest
Nifty 5000 Put adds 1.6 lakh shares in Open Interest
Nifty 5100 Call adds 2.5 lakh shares in Open Interest
Nifty 5200 Call adds 1.2 lakh shares in Open Interest
Stock Futures add 74 lakh shares in Open Interest
RBI may hike repo, reverse repo rates: Experts
RBI is meeting on April 29 for crucial monetary policy review. Question uppermost on everybody's mind now is if the central bank will go ahead and hike further rates or will it not touch rates now as it does not want to risk growth. Industry expert AK Purwar and Sr Economist at ABN AMRO Bank Gaurav Kapur says the current situation warrants a repo and reverse repo rate hikes.
AK Purwar said the RBI needs to balance global and Indian differential interest rates and take into account the impact on investments if a hike comes into force.
Repo rate hike, Reverse repo rate hike or both
Purwar says the kind of inflation numbers which are there warrants an upward pressure on the interest rates. But it has to be very carefully balanced between the interest rates in India and prevailing rates globally. Most importantly, in the last three or more years, the interest rates to actual borrowers have almost gone up by 4%-5%. The kind of impact (a further interest rate hike) will have on investments, on project finances etc will also have to be factored in by the RBI before they can take a view. But definitely there is an upward pressure on the interest rates, he asserts.
While, Gaurav Kapur feels a 25 basis point hike in the repo rate is pretty much on the cards because the CRR hike is not enough to control inflation. "Inflation can spiral to even higher levels from here on as we get into June-September. It’s a seasonal pattern which plays out, so at this stage, a repo rate hike is warranted although it could have an adverse impact on growth. But to my mind I think, perhaps you need growth to slow down for inflation to come down because even after taking into account the supply side pressures, the demand side in certain industries is still quite strong." He also says there is a very low probability on the reverse repo rate hike as well.
On reaction from banks
Purwar says in case there is a repo rate hike, banks can push up their rates by 0.25% or 0.5%. "Some institutions may take the advantage of increasing it further, particularly on the discretionary loan side," he argues. However, if there is no outward pressure, there would not be much justification in raising the lending rates, he said.
On chance of RBI going for a rate hike later
Kapur says there is a possible scenario that the RBI will watch the commodity prices for a next couple of months before pulling the trigger. He says, " ...that will actually put in a lot of uncertainty in the market because at this point in time, you need the Central Bank to very clearly state what and how it wants to basically attack the problem of inflation." Hoever he thinks 29th meeting being annual policy meet, it would be better hike rates now than postpone it for later stage and see how the commodity prices move. "It's purely a timing issue; This is perhaps a better stage and a better time for the RBI to very clearly guide the participants in the market and the economy in general as to what to expect from interest rates, what is its assessment of the inflation, what does the Central Bank think of growth stc," he says.
Have markets factored in a repo rate hike?
Dhawal Dalal, Fund Manger, DSP Merrill Lynch, said the market has already factored in a repo rate hike. "Once it is been delivered, I will not be surprised to see a relief rally coming into the market."
AK Purwar said the RBI needs to balance global and Indian differential interest rates and take into account the impact on investments if a hike comes into force.
Repo rate hike, Reverse repo rate hike or both
Purwar says the kind of inflation numbers which are there warrants an upward pressure on the interest rates. But it has to be very carefully balanced between the interest rates in India and prevailing rates globally. Most importantly, in the last three or more years, the interest rates to actual borrowers have almost gone up by 4%-5%. The kind of impact (a further interest rate hike) will have on investments, on project finances etc will also have to be factored in by the RBI before they can take a view. But definitely there is an upward pressure on the interest rates, he asserts.
While, Gaurav Kapur feels a 25 basis point hike in the repo rate is pretty much on the cards because the CRR hike is not enough to control inflation. "Inflation can spiral to even higher levels from here on as we get into June-September. It’s a seasonal pattern which plays out, so at this stage, a repo rate hike is warranted although it could have an adverse impact on growth. But to my mind I think, perhaps you need growth to slow down for inflation to come down because even after taking into account the supply side pressures, the demand side in certain industries is still quite strong." He also says there is a very low probability on the reverse repo rate hike as well.
On reaction from banks
Purwar says in case there is a repo rate hike, banks can push up their rates by 0.25% or 0.5%. "Some institutions may take the advantage of increasing it further, particularly on the discretionary loan side," he argues. However, if there is no outward pressure, there would not be much justification in raising the lending rates, he said.
On chance of RBI going for a rate hike later
Kapur says there is a possible scenario that the RBI will watch the commodity prices for a next couple of months before pulling the trigger. He says, " ...that will actually put in a lot of uncertainty in the market because at this point in time, you need the Central Bank to very clearly state what and how it wants to basically attack the problem of inflation." Hoever he thinks 29th meeting being annual policy meet, it would be better hike rates now than postpone it for later stage and see how the commodity prices move. "It's purely a timing issue; This is perhaps a better stage and a better time for the RBI to very clearly guide the participants in the market and the economy in general as to what to expect from interest rates, what is its assessment of the inflation, what does the Central Bank think of growth stc," he says.
Have markets factored in a repo rate hike?
Dhawal Dalal, Fund Manger, DSP Merrill Lynch, said the market has already factored in a repo rate hike. "Once it is been delivered, I will not be surprised to see a relief rally coming into the market."
Mkt trades choppy; Cap goods, IT down
The markets are trading choppy on negative bias. Selling pressure is seen in capital goods, bank, IT, oil & gas and power space. However, the midcaps and smallcaps are trading with marginal gains.
At 10.28 hrs IST, the Sensex was down 59.84 points or 0.35% at 17066.14, and the Nifty was up 5.15 points or 0.10% at 5116.85.
About 1518 shares have advanced, 1335 shares declined, and 225 shares are unchanged.
SBI, Wipro, TCS, ABB and Siemens are the top losers on the bourses.
Mkt opens strong; Bank, metal surge
The markets have opened with strong gain and trading with modest gain. Bank, Teck, metal, stocks witnessing buying interest. ICICI Bank was up 8%.
At 09.56, the Sensex was up 145.58 points or 0.85% at 17271.56, and the Nifty was up 9.15 points or 0.18% at 5120.85.
About 1482 shares have advanced, 1388 shares declined, and 208 shares are unchanged.
Reliance Petroleum, Idea Cellular, HCL Technolofies, HDFC Bank were among major gainers.
Siemens, Sun Pharma were among major losers.
US market ended mixed. The Dow gained 43 points to close at 12,892 and the Nasdaq shut 6 points lower at 2,422. The S&P 500 closed almost 9 points higher at 1,397. On Friday leading the surge among financials was Fannie Mae and Freddie Mac.
Asian markets were trading firm. Japan's Nikkei advanced 0.75% or 104.63 points at 13,968.10. Hong Kong's Hang Seng 0.70% or 177.89 points at 25,694.67. Taiwan's Taiwan Weighted rose 0.415 or 36.87 points at 8,984.70. Singapore's Straits Times was up 0.62% or 19.71 points at 3,208.91. South Korea's Seoul Composite added 0.19% or 3.40 points at 1,828.08.
Market cues:
FIIs net buy $130.4 mn in equity
MFs net buy Rs 33.1 cr in equity
NSE F&O Open Interest up by Rs 4,921 crore at Rs 5,4172 cror
F&O cues:
Stock Futures add 6.5 cr shares in Open Interest on day 1 of new series
Futures Open Interest up by Rs 2,983 crore and Options Open Interest up by Rs 1938 crore
Nifty Futures add 11.7 lakh shares in Open Interest, at 14-point premium
Nifty Open Interest Put-Call ratio at 1.40 Vs 1.39
Nifty Puts add 18.5 lakh shares in Open Interest
Nifty Calls add 12.6 lakh shares in Open Interest
Nifty 5000 Put adds 4.5 lakh shares in Open Interest
Nifty 4900 Put adds 4.4 lakh shares in Open Interest
Nifty 5000 Call adds 2.4 lakh shares in Open Interest
At 10.28 hrs IST, the Sensex was down 59.84 points or 0.35% at 17066.14, and the Nifty was up 5.15 points or 0.10% at 5116.85.
About 1518 shares have advanced, 1335 shares declined, and 225 shares are unchanged.
SBI, Wipro, TCS, ABB and Siemens are the top losers on the bourses.
Mkt opens strong; Bank, metal surge
The markets have opened with strong gain and trading with modest gain. Bank, Teck, metal, stocks witnessing buying interest. ICICI Bank was up 8%.
At 09.56, the Sensex was up 145.58 points or 0.85% at 17271.56, and the Nifty was up 9.15 points or 0.18% at 5120.85.
About 1482 shares have advanced, 1388 shares declined, and 208 shares are unchanged.
Reliance Petroleum, Idea Cellular, HCL Technolofies, HDFC Bank were among major gainers.
Siemens, Sun Pharma were among major losers.
US market ended mixed. The Dow gained 43 points to close at 12,892 and the Nasdaq shut 6 points lower at 2,422. The S&P 500 closed almost 9 points higher at 1,397. On Friday leading the surge among financials was Fannie Mae and Freddie Mac.
Asian markets were trading firm. Japan's Nikkei advanced 0.75% or 104.63 points at 13,968.10. Hong Kong's Hang Seng 0.70% or 177.89 points at 25,694.67. Taiwan's Taiwan Weighted rose 0.415 or 36.87 points at 8,984.70. Singapore's Straits Times was up 0.62% or 19.71 points at 3,208.91. South Korea's Seoul Composite added 0.19% or 3.40 points at 1,828.08.
Market cues:
FIIs net buy $130.4 mn in equity
MFs net buy Rs 33.1 cr in equity
NSE F&O Open Interest up by Rs 4,921 crore at Rs 5,4172 cror
F&O cues:
Stock Futures add 6.5 cr shares in Open Interest on day 1 of new series
Futures Open Interest up by Rs 2,983 crore and Options Open Interest up by Rs 1938 crore
Nifty Futures add 11.7 lakh shares in Open Interest, at 14-point premium
Nifty Open Interest Put-Call ratio at 1.40 Vs 1.39
Nifty Puts add 18.5 lakh shares in Open Interest
Nifty Calls add 12.6 lakh shares in Open Interest
Nifty 5000 Put adds 4.5 lakh shares in Open Interest
Nifty 4900 Put adds 4.4 lakh shares in Open Interest
Nifty 5000 Call adds 2.4 lakh shares in Open Interest
29/04/2008 postion picks gold
MCX Sell Gold June at 11570 - 11580, S/l - 11606, T1 - 11525 & T2 - 11500(CMP - 11570)
Commoditiy Alert
FM cuts custom duty on steel and steel products from 5% to nil and imposes duty on exports of some steel product
Firm Markets
Markets have surged on the back of Repo and Reverse Repo remained unchanged by RBI. However, RBI hikes CRR by 25 BPS to 8.25%. On the sectoral front, metal and banking indices trading higher. The BSE mid-cap and small cap indices were trading marginally up.
At 12.23 pm, the Sensex was up 279.08 points or 1.64% at 17295.04, and the Nifty was up 65.30 points or 1.28% at 5154.95.
About 1670 shares have advanced, 1195 shares declined, and 215 Shares are unchanged.
Top gainers on the Sensex are HDFC, Tata Steel and Jaiprakash Asso.
Top losers on the Sensex Bharti Airtel, BHEL and Infosys.
Mkt trading with modest gains; Metal, pharma up over 1%
The markets are trading with modest gain ahead of credit policy announcement. Buying interest seen in metal, pharma, consumer durable, auto Stocks
At 10.36 am, the Sensex was up 29.68 points or 0.17% at 17045.64, and the Nifty was down 0.65 points or 0.01% at 5089.00.
About 1563 shares have advanced, 1291 shares declined, and 226 shares are unchanged.
Top gainers on the bourses are Tata Steel, Jaiprakash Asso, Ranbaxy Labs, Dr Reddys Labs and Tata Comm.
Top losers on the Sensex Bharti Airtel, BHEL and Infosys.
Most active shares on BSE are Rel Capital, Glenmark and Sesa Goa.Market opens flat; Siemens, Rel Energy up
The markets have opened flat ahead of RBI credit policy annoucement. Relaince Energy, Idea Cellular, Tata Steel, Power Grid, Nalco witnessing buying interest.
Siemens was up 5% on the back of good results and approved bonus
At 9.56 am, the Sensex was up 60 points at 17075, and the Nifty up 15 points at 5104.
US markets finished flat as concerns about the Federal Reserve's rate decision kept a lid on activity. Wrigley shares soared 23% on news that Buffett is teaming up with Candy Maker Mars to buy the gum maker for 22 billion dollars.
The Interest-rate decision and Friday's Nonfarm Payroll Data are likely to dominate the market sentiment as the week progresses.
The Dow Jones industrial average slipped 20.11 points, or 0.16%, to 12,871.75. The 500 index fell 1.47 Standard & Poor's points, or 0.11%, to 1,396.37, and the Nasdaq composite index gained 1.47 points, or 0.06%, to 2,424.40.
Asian markets trading mixed. Hong Kong's Hang Seng gained 0.28% 75.05 points at 25,738.34. However, Taiwan's Taiwan Weighted declined 0.25% or 18.05 points at 9,057.34. Singapore's Straits Times 0.77% or 24.64 points at 3,176.99. South Korea's Seoul Composite fell 0.45% or 8.14 points at 1,815.03.
Market cues:
RBI to present monetary policy today
CNBC-TV18 poll says repo rate hike likely
FIIs net buy $86.5 m in equity on Apr 25
MFs net sell Rs 73.4 cr in equity on Apr 25
NSE F&O Open Interest up by Rs 1,625 crore at Rs 55,798 crore
F&O cues:
Nifty Futures turnover at Rs 7,552 cr vs avg of Rs 14,720 cr
Stock Futures turnover at Rs 14,644 cr Vs avg of Rs 16,620 cr
Futures Open Int up by Rs 542 crore, Options Open Int up by Rs 1,083 crore
Nifty Futures add 7 lakh shares in OI, at 17-pt premium
Nifty Open Interest PCR at 1.37 Vs 1.40
Nifty Puts, Calls add 7 lakh shares each in Open Interest
Nifty 4800 Put adds 2.4 lakh shares in Open Interest
Nifty 5000 Put adds 1.6 lakh shares in Open Interest
Nifty 5100 Call adds 2.5 lakh shares in Open Interest
Nifty 5200 Call adds 1.2 lakh shares in Open Interest
Stock Futures add 74 lakh shares in Open Interest
At 12.23 pm, the Sensex was up 279.08 points or 1.64% at 17295.04, and the Nifty was up 65.30 points or 1.28% at 5154.95.
About 1670 shares have advanced, 1195 shares declined, and 215 Shares are unchanged.
Top gainers on the Sensex are HDFC, Tata Steel and Jaiprakash Asso.
Top losers on the Sensex Bharti Airtel, BHEL and Infosys.
Mkt trading with modest gains; Metal, pharma up over 1%
The markets are trading with modest gain ahead of credit policy announcement. Buying interest seen in metal, pharma, consumer durable, auto Stocks
At 10.36 am, the Sensex was up 29.68 points or 0.17% at 17045.64, and the Nifty was down 0.65 points or 0.01% at 5089.00.
About 1563 shares have advanced, 1291 shares declined, and 226 shares are unchanged.
Top gainers on the bourses are Tata Steel, Jaiprakash Asso, Ranbaxy Labs, Dr Reddys Labs and Tata Comm.
Top losers on the Sensex Bharti Airtel, BHEL and Infosys.
Most active shares on BSE are Rel Capital, Glenmark and Sesa Goa.Market opens flat; Siemens, Rel Energy up
The markets have opened flat ahead of RBI credit policy annoucement. Relaince Energy, Idea Cellular, Tata Steel, Power Grid, Nalco witnessing buying interest.
Siemens was up 5% on the back of good results and approved bonus
At 9.56 am, the Sensex was up 60 points at 17075, and the Nifty up 15 points at 5104.
US markets finished flat as concerns about the Federal Reserve's rate decision kept a lid on activity. Wrigley shares soared 23% on news that Buffett is teaming up with Candy Maker Mars to buy the gum maker for 22 billion dollars.
The Interest-rate decision and Friday's Nonfarm Payroll Data are likely to dominate the market sentiment as the week progresses.
The Dow Jones industrial average slipped 20.11 points, or 0.16%, to 12,871.75. The 500 index fell 1.47 Standard & Poor's points, or 0.11%, to 1,396.37, and the Nasdaq composite index gained 1.47 points, or 0.06%, to 2,424.40.
Asian markets trading mixed. Hong Kong's Hang Seng gained 0.28% 75.05 points at 25,738.34. However, Taiwan's Taiwan Weighted declined 0.25% or 18.05 points at 9,057.34. Singapore's Straits Times 0.77% or 24.64 points at 3,176.99. South Korea's Seoul Composite fell 0.45% or 8.14 points at 1,815.03.
Market cues:
RBI to present monetary policy today
CNBC-TV18 poll says repo rate hike likely
FIIs net buy $86.5 m in equity on Apr 25
MFs net sell Rs 73.4 cr in equity on Apr 25
NSE F&O Open Interest up by Rs 1,625 crore at Rs 55,798 crore
F&O cues:
Nifty Futures turnover at Rs 7,552 cr vs avg of Rs 14,720 cr
Stock Futures turnover at Rs 14,644 cr Vs avg of Rs 16,620 cr
Futures Open Int up by Rs 542 crore, Options Open Int up by Rs 1,083 crore
Nifty Futures add 7 lakh shares in OI, at 17-pt premium
Nifty Open Interest PCR at 1.37 Vs 1.40
Nifty Puts, Calls add 7 lakh shares each in Open Interest
Nifty 4800 Put adds 2.4 lakh shares in Open Interest
Nifty 5000 Put adds 1.6 lakh shares in Open Interest
Nifty 5100 Call adds 2.5 lakh shares in Open Interest
Nifty 5200 Call adds 1.2 lakh shares in Open Interest
Stock Futures add 74 lakh shares in Open Interest
2008-04-24
Nifty Candle Stick Chart - 2008-04-28
Outlook for the day
The Nifty is likely to consolidate between the range of 5,000-5,020 to 5,180-5,200 levels in coming trading session.On the downside 5,080-5,050 levels is an immediate support. On the higher side it may face resistance around5,120-5,150 levels. Stock specific movement is likely. The important support for the indices remains at 5,020-5,000levels where 200 day’s EMA (exponential moving average) is expected to lend support.
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