Copper drops for first time in five days

Prices drop as the dollar inches up
Copper prices ended lower for first time in five days on Thursday, 19 November, 2009 at Comex. Prices rose to its highest levels in fourteen months yesterday. But on Thursday, it dropped due to the dollar and economic data.
At USA, copper futures for March delivery ended lower by 2.95 cents (0.9%) to 3.106 a pound. Earlier during the week, on Monday, it had touched a high of $3.142.
On the London Metal Exchange, copper for delivery in three months ended lower by $85 (1.2%) at $6,795 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
In the currency market on Thursday, the dollar strengthen up against its previous days' position but continued to remain at its weak levels. The dollar index, which measures the strength of dollar against basket of six other currencies, rose by almost 0.2% paring majority of its earlier gains.
The Labor Department in US reported on Thursday, 19 November that the number of people filing initial claims for state unemployment benefits was flat at a seasonally adjusted 505,000 in the week ended 14 November. Initial claims are at the lowest level since early January, but they have hovered above 500,000 for 53 straight weeks, contributing to a 26-year high in the U.S. unemployment rate at 10.2%.
The Conference Board in US reported on Thursday, 19 November, 2009 that the index of leading economic indicators rose for the seventh consecutive month in October, showing that a recovery is "unfolding" in the U.S. economy. The leading indicators rose 0.3% in October after a 1% gain in September.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for November delivery closed at Rs 317.3/Kg. The closing price was Rs 0.3/Kg (0.09%) higher than previous closing price. Prices rose to a high of Rs 319.9/ Kg and fell to a low of Rs 315.7/Kg during the day's trading.
Among other metals traded in the LME on Thursday, lead slid 0.3% to $2,397 a ton and zinc gained 1% to end at $2,269.5 a ton. Nickel gained 0.3% to end at $17,130. Aluminium was unchanged at $2,066 a ton.

Little change for precious metals

Prices manage a positive end as dollar pares most of its gains
Precious metal prices ended slightly higher on Thursday, 19 November, 2009. Prices rose as the dollar continued to stay weak despite paring earlier losses. Prices also rose riding on back of economic data.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Thursday, gold for December delivery ended at $1,141.9, higher by $0.70 (0.06%) an ounce on the New York Mercantile Exchange. Yesterday, during intra day trading, it hit a high of $1153.4. This was an all time high prices marked by the yellow metal. Last week, gold ended higher by 2%. Year to date, gold prices are higher by almost 30%.
On Thursday, December Comex silver futures ended higher by 4.5 cent (0.2%) $18.455 an ounce.
In the currency market on Thursday, the dollar continued to remain at its weak levels. The dollar index, which measures the strength of dollar against basket of six other currencies, rose by almost 0.2% paring majority of its earlier gains.
The Labor Department in US reported on Thursday, 19 November that the number of people filing initial claims for state unemployment benefits was flat at a seasonally adjusted 505,000 in the week ended 14 November. Initial claims are at the lowest level since early January, but they have hovered above 500,000 for 53 straight weeks, contributing to a 26-year high in the U.S. unemployment rate at 10.2%.
The Conference Board in US reported on Thursday, 19 November, 2009 that the index of leading economic indicators rose for the seventh consecutive month in October, showing that a recovery is "unfolding" in the U.S. economy. The leading indicators rose 0.3% in October after a 1% gain in September.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for December delivery closed higher by Rs 126 (0.73%) at Rs 17,231 per ten grams. Prices rose to a high of Rs 17,243 per 10 grams and fell to a low of Rs 17,085 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 85 (0.3%) higher at Rs 28,312/Kg. Prices opened at Rs 28,200/kg and rose to a high of Rs 28,436/Kg during the day's trading.

Crude ends lower for first time in four days

Price drop due to dollar and economic data
Crude prices fell for the first time in four days at Nymex on Thursday, 19 November, 2009. Prices registered losses due to the dollar and economic data.
On Thursday, crude-oil futures for light sweet crude for December delivery closed at $77.46/barrel (lower by $2.12 or 2.7%). Crude had gained more than 4% in the past three sessions before Thursday. Last week, crude ended lower by 1.4%.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 51% since then.
In the currency market on Thursday, the dollar continued to remain at its weak levels. The dollar index, which measures the strength of dollar against basket of six other currencies, rose by almost 0.2% paring majority of its earlier gains.
The Labor Department in US reported on Thursday, 19 November that the number of people filing initial claims for state unemployment benefits was flat at a seasonally adjusted 505,000 in the week ended 14 November. Initial claims are at the lowest level since early January, but they have hovered above 500,000 for 53 straight weeks, contributing to a 26-year high in the U.S. unemployment rate at 10.2%.
The Conference Board in US reported on Thursday, 19 November, 2009 that the index of leading economic indicators rose for the seventh consecutive month in October, showing that a recovery is "unfolding" in the U.S. economy. The leading indicators rose 0.3% in October after a 1% gain in September.
the EIA reported yesterday that crude inventories fell 900,000 barrels in the week ended 13 November, 2009 against an expectation of a modest increase. The weekly EIA data also showed U.S. crude imports fell 0.9% to 8.58 million barrels a day, and total petroleum demand rose 1% to 18.5 million barrels a day. Gasoline demand rose nearly 2% to 9.02 million barrels a day, returning to the level seen at the end of last month.
The report also detailed a decline of 1.7 million barrels in gasoline stockpiles and a drop of 300,000 barrels in distillates, which include heating oil and diesel.
Among other energy products, December gasoline lost 2.1% to $1.9695 a gallon, and December heating oil was down 2.5% at $1.9964 a gallon
Also on Thursday, natural gas for December delivery rose 2% to $4.342 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for December delivery closed lower by Rs 37 (1%) at Rs 3,649/barrel. Natural gas for November delivery closed higher by Rs 1 (0.5%) at Rs 200/mmbtu.

Nifty November 2009 futures below 5,000

Turnover rises
Nifty November 2009 futures were at 4,984, at a discount of 5 points as compared to spot closing of 4,989. Turnover in NSE's futures & options (F&O) segment jumped to Rs 79,048.32 crore from Rs 67,322.64 crore on Wednesday, 18 November 2009.
State Bank of India (SBI) November 2009 futures were at discount at 2,275 compared to the spot closing of 2,280.
ICICI Bank November 2009 futures were at discount at 886.50 compared to the spot closing of 890.
Suzlon Energy November 2009 futures were near spot price at 74.80 compared to the spot closing of 74.90.
In the cash market, the S&P CNX Nifty lost 65.70 points or 1.30% at 4,989.

Market may extend last two days fall on weak global cues

The market may extend last two days fall tracking weak Asian stocks and decline in US stocks overnight. However, the survey showing jump in business confidence in India and Organisation for Economic Co-operation and Development's upward revision in global growth forecast for 2010 may cap fall.
Equities may remain volatile over the next few days as traders rollover positions in the derivative segment from November 2009 series to December 2009 series ahead of the expiry of the near month November 2009 contracts on 26 November 2009.
The business confidence in India has reportedly surpassed the level that prevailed before the financial crisis seized economic growth prospects, according to the latest NCAER (National Council of Applied Economic Research)-MasterCard Worldwide Index of Business Confidence. The Business Confidence Index (BCI) reported a sharp rise of 21 %, with a rating of 143.7 points in October 2009, compared with 118.6 points in July 2009. BCI ratings in April 2009 were at their lowest, at 81.6 points, after the global financial crisis hit world economies.
Asia is leading the global economy out of the deepest downturn in decades but the recovery will be marred by high unemployment and huge government debt across the industrialised countries, the Organisation for Economic Co-operation and Development (OECD) said on Thursday.
Central banks and governments in major Western economies should prepare for a gradual upwards shift in ultra-low interest rates and for fiscal consolidation once recovery is stronger, but they will only need to move in late 2010 at the earliest given that inflation is so low, it said in its Economic Outlook. The Paris-based Organisation for Economic Co-operation and Development raised its global growth forecast for 2010 to 3.4 % from the 2.3 % it was predicting as recently as June, after an estimated contraction of 1.7 % in 2009.
In the twice-yearly report, the OECD lowered its estimates of the scale of this year's recession and substantially raised most of its forecasts for growth in 2010, when it said the economy would remain dependent on government life-support. India, which likewise weathered the crisis with growth of an estimated 6.1 % in 2009, could expect 7.3 % growth in 2010 and a bit more in 2011 it said,
Closer home, the winter session of Parliament on Thursday got off to a stormy start with an aggressive Opposition disrupting Lok Sabha proceedings on the issue of a `bitter' harvest of sugarcane in the wake of inadequate support price. However,Prime minister Manmohan Singh said government will amend sugarcane pricing ordinance in farmers' interest.
Meanwhile, the bill to reform the insurance sector is unlikely to be cleared by the parliament's winter session, a finance ministry official said on Thursday. The government has set reform of the insurance sector as a priority for the winter parliament session that began on 19 November 2009. The bill, which was stalled in the last parliament, proposes raising the foreign investment limit in insurance companies from 26 % to 49%. The government also wants to open up the pension sector to private and foreign firms and give equal voting rights to foreigners in private-sector banks, which are currently limited to 10% irrespective of their actual holding.
The initial public offer of Cox and Kings, a global tour operator, was subscribed 1.39 times on the second day of the bidding for the issue on Thursday, 19 November 2009.
Suzlon Energy, the world's third-largest maker of wind turbines, will be in action after company said late Thursday that it has sold a 35% stake in a subsidiary, Hansen Transmissions, for $370 million (or about Rs 1,720 crore at current exchange rates), as part of its efforts to reduce debt.
Asian stocks fell on Thursday after Merrill Lynch & Co. cut its outlook on the global semiconductor industry and commodities retreated. The key benchmark indices in China, HongKong, Japan, South Korea, Singapore and Taiwan fell by between 0.1% to 1.32%.
U.S. Markets lost ground on Thursday as semiconductors dragged tech shares lower after a brokerage's bearish view of the industry and doubts about the strength of the economic recovery cut the appetite for risk. The Dow plunged 93.87 points, or 0.9%, to 10,332.44. The S&P 500 index was down 14.90 points, or 1.3%, to 1,094.90, while the Nasdaq Composite index fell 36.32 points, or 1.7%, to 2,156.82.
The US economic news was mixed. Jobless claims were unchanged last week but the prior week was revised up by 3,000 claims. Continuing claims came in at 5.61 million. Some disappointing news on the housing front-mortgage delinquencies rose to 9.64% of all loans outstanding in the third quarter and foreclosures jumped to 4.47% to a total of 14.41%, another new record.
Leading indicators rose 0.3% in October 2009, slightly lower than expected. And the Philadephia Fed branch said its gauge of regional manufacturing activity rose to 16.7 in November 2009 from 11.5 in October 2009, beating expectations.
Volatility ruled the roost as stocks lost ground on Thursday with the sentiment hit by Brazil's latest move to curb capital inflows. Decline in European shares and lower US index futures also weighed on sentiment. The BSE 30-share Sensex fell 213.13 points or 1.25% to 16785.65 on that day.
As per provisional data, foreign funds on 19 November 2009, sold equities worth a net Rs 459.18 crore. Domestic funds bought stocks worth a net Rs 116.79 crore.

Indiabulls Real Estate

We recommend a sell in the stock of Indiabulls Real Estate from a short-term perspective. It is evident from the charts that the stock had been on an intermediate-term uptrend from March low Rs 83 until the October high of Rs 298. However, after encountering long-term resistance around Rs 300, the stock reversed direction triggered by negative divergence in the daily moving average convergence and divergence (MACD) indicator. The stock’s intermediate-term uptrend line was conclusively penetrated in late October and it continued to decline. Thereafter, the stock reinforced its short-term downtrend by breaching 21 as well as 50-day moving averages and is currently trading well below them. The short-term down trendline of the stock is intact. The daily relative strength index has entered into the bearish zone and daily MACD is featuring in negative territory. We are bearish on the stock from a short-term perspective. We expect it to decline further until it hits our price target of Rs 200 in the upcoming trading sessions. Trader with short-term horizon can sell the stock, while maintaining a stop-loss at Rs 235.
via BL

Essar Shipping

We recommend a buy in the stock of Essar Shipping Ports and Logistics from a short-term perspective. The stock’s 11.5 per cent jump accompanied with heavy volume on November 18 strengthened its bullish momentum. Following a medium-term up move from its multi-year low of Rs 19 to Rs 90, the stock has been consolidating sideways in a broad range of Rs 55 and Rs 75 since July. Taking key support at Rs 55, the stock has been on a short-term uptrend from the beginning of November. With the recent surge it penetrated its 21- as well as 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral zone. The daily moving average convergence and divergence indicator has signalled a buy and is heading towards the positive territory. Our short-term forecast on the stock is bullish. We anticipate it to rally breaching the sideways range until it hits our price target of Rs 78. Traders with a short-term horizon can buy the stock while maintaining a stop-loss at Rs 66.5
via BL

Daily News Roundup - Nov 19 2009

RIL is planning to spend US$3bn for the new petrochemical complex at Jamnagar. (BS)
RIL plans to enter no-frills, low-cost housing business in 2010. (BS)
ITC has increased prices of two of its brands, India Kings and Benson & Hedges, by Rs10 and Rs5, respectively. (BS)
Ratan Tata, Chairman of Tata Group, has said that his successor may be an expatriate. (BS)
ONGC to go solo in development of Satpayev oil block in Kazakhstan after Mittal Investments pulled out of the project. (DNA)
Japan’s JFE is forging an alliance with JSW Steel, whereby it will supply technology to Indian company to make auto grade steel. (DNA)
JSW Steel is close to entering into a strategic alliance with a global steel company. (ET)
Hero Honda may announce special dividend payout to its shareholders. (ET)
Exide Industries to raise Rs5bn via QIP to fund R&D. (ET)
Blackstone is planning to delist Bangalore-based textile exporter Gokaldas Exports, is in talks to launch the buyback offer. (ET)
Gujarat State Petronet is set to bid for two pipeline projects. (ET)
Union Bank of India is looking at raising US$500mn via bonds before March 2010 to expand its operations abroad. (BL)
Suzlon Energy has officially opened Infigen Energy’s Capital wind farm, the largest wind farm in Australia at Bungendore in New South Wales. (BS)
RCom has entered into a strategic tie-up with Atom Technologies, an m-commerce solutions provider from the Financial Technologies India Ltd group. (BL)
OPaL, the petrochemicals SPV of ONGC, is exploring the option of a public issue to part-finance its Rs125bn petrochemical chemical complex being commissioned at Dahej, Gujarat. (BL)
Petronet LNG is keen to acquire up to 10% stake in OPaL. (BS)
SAIL has re-tendered the four-million-ton Tasra open-cast coking coal mine redevelopment project in Jharkhand. (BL)
BHEL is scouting for a technology partner for its ambitious nuclear turbine and reactor project. (BS)
Wockhardt and Sun Pharmaceutical have received final approval from the USFDA to market generic versions of Nicardipine, the hypertension drug. (BS)
Bharati Shipyard and ABG Shipyard have got Sebi’s nod for their open offer bids to buy additional stake in Great Offshore. (BS)
Pantaloon Retail is looking to acquire a fast-moving consumer goods company. (DNA)
IOC is looking to invest up to Rs15bn in its maiden nuclear venture in partnership with Nuclear Power Corporation of India Ltd (NPCIL). (BL)
Kochi port has extended wharfage waiver to BPCL-Kochi Refinery for back-loading of crude oil at Cochin Oil Terminal for one more year. (BL)
EKC has decided to shelve plans of adding capacity at its China plant. (DNA)
The Union Government may consider including Andhra Pradesh in the Chennai-Mumbai Industrial Development Corridor project. (BL)
Bank credit for the fortnight ended November 6 increased by Rs231bn. (BL)
The Empowered Group of Ministers on the auction of 3G spectrum will meet today to discuss the vacation of spectrum by defence forces. (BS)
The Union Cabinet is expected to take up today a proposal for increasing the foreign direct investment limit in print media to 49%. (BL)
The NHAI, having failed to meet the deadline for awarding 126 projects during FY10, has brought down the number of projects to be awarded in FY11 to 92. (BS)
The government has appointed Subir Vithal Gokarn, Standard and Poor’s Asia-Pacific Chief Economist and a Business Standard columnist, as the fourth deputy governor of the RBI. (BS)
The government is finalizing plans to auction corporate entitlements to borrow abroad. (ET)
Centre is in talks with the Jharkhand and Orissa governments to facilitate the multi-billion dollar India projects of global steel giants ArcelorMittal and Posco. (ET)

Quality gains unlikely soon!

Quality is never an accident. It represents the wise choice of many alternatives.

The bulls and bears seem to be running out of alternatives. Another lackluster start and an equally insipid day of trade could be in store for us. Fatigue seems to be taking a toll on the bulls. The key indices are attempting to break out of a range where the correction had set-in last month. The trouble is there are no great events in the near term that could trigger a big push towards new highs. Winter session of parliament begins today.

What is favouring the bulls so far is the relentless inflow of overseas money. This may continue as the dollar is unlikely to rebound sharply. But, as Christmas holidays approach there is likely to be some softening even in these flows. Local funds have already turned net sellers. Add to this, the anxiety over the shape of the economic recovery and the market could see some cooling. Valuations for many of the leading stocks are not too compelling either. In the immediate future, the market will remain sideways and listless though action would be seen in non-index counters.

The Nifty could continue to struggle in the 5000-5100 range till a big rally materialises. Even then, the upside may not be much after having witnessed a stupendous rebound from bear market lows. We do not completely rule out a new 2009 high for the key indices before the end of December. Things could remain anemic early on in the new year as the market considers the latest quarterly results and a possible rate hike in January. Budget will of course be another event that will have a bearing on the market's behaviour in the near year.

Global markets have generally been moving in tandem since March lows. Apart from consistent signs of economic recovery another big factor behind this rally has been a weak US dollar. The yen carry trade has shifted into dollars, as the Fed keeps rates near zero. It is unlikely to press the 'exit' button from the accommodative policy until after the first half of 2010. This means that the dollar will remain under pressure and this in turn will continue to fuel the risky asset rally across the globe.

However, there concerns as to how the world will react once governments start withdrawing the emergency fire-fighting measures and the carry trades unwind. Inflation might rear its ugly head again and there could possibly be a few asset price bubbles. The so-called global imbalances will continue to pose problems.

FIIs were net buyers in the cash segment on Wednesday at Rs4.12bn on a provisional basis. The local funds were net sellers of Rs2.56bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs13.72bn. The foreign funds were net buyers of Rs594bn on Tuesday. Mutual funds were net sellers of Rs3.08mn in the cash segment on the same day. FIIs' net investments in Indian stocks this year has already crossed $15bn.

Hero Honda, Gokaldas Exports, Great Offshore, Bharati Shipyard and ABG Shipyard will be among the stocks that will be in the limelight. JSW Steel might continue to hog the limelight amid reports of a strategic alliance with a foreign partner.

After rallying for three straight days, bulls seem to have lost some steam as the BSE Sensex ended below the 17,000 mark, however, the NSE Nifty managed to hold on the 5050 mark. Weak cues from the Asian and the European markets coupled with selling pressure in the Oil & Gas and the Banking stocks dragged the Sensex to end below the 17,000 levels.

The BSE Sensex slipped 52 points to end at 16,998 after touching a high of 17,098 and a low of 16,958. The index opened at 17,050 against the previous close of 17,050. The NSE Nifty ended flat at 5,054.

In Asia, the Nikkei in Japan was down 0.6%, while Australia's S&P/ASX ended marginally higher by 0.2% at 4,739. Shanghai SE Composite was up 0.5% and Hang Seng index in Hong Kong fell 0.3%.

In Europe, stocks were trading in the green. The DAX in Germany was up 0.6% and the CAC 40 index in France was up 0.5%. The FTSE in the UK was up 0.2%.

Coming back to India, among the BSE sectoral indices, the Oil & Gas index was the top loser, shedding 1%, followed by the Banking index that was down 0.91% and the BSE Capita Goods index was down 0.7%.

Major gainers were BSE Metals index up 1.2% and BSE FMCG index up 0.6%.

The BSE Mid-Cap index ended flat while the BSE Small-Cap index was up by 0.7%.

Among the 30-components of Sensex, 18 stocks ended in the red and 12 ended in the positive terrain. Reliance Infra, L&T, Reliance Industries, ICICI Bank and Grasim were among the top losers. On the other hand, among the major gainers were Tata Motors, Tata Steel, ITC, Infosys and JP Associates.

Outside the frontline indices, the big losers in the broader market were Mphasis,Exide Ind, Spice Tele, Jain Irrigation and Fin Tech. On the other hand, gainers included Pantaloon Retail, GE Shipping, GTL Infra and Sintex Ind.

Shares of SAIL advanced by 0.5% to end at Rs187. Reports stated that Jharkhand government has agreed to renew the company’s lease for the Buddhaburu mine, having reserves of 810mn tons.

The company also announced that it was planning to spend Rs600bn for expansion in next 3 years and the company is also reportedly planning to jointly develop a limestone project at Arki in Himachal Pradesh with a 3MTPA capacity.

BHEL announced that it formed a joint venture with Madhya Pradesh Power Generation for 1600MW power plant. Shares of BHEL ended flat at Rs2275. The stock opened at Rs2273 and made an intra-day high of Rs2283 and a low of Rs2255. Total traded volumes stood at 0.11mn shares.

Union Bank of India plans to raise US$500mn by selling bonds by March; the Chairman M.V. Nair was quoted as saying. The bank plans to use the proceeds to fund its overseas operations

The stock ended at Rs270 adding 1.7%, it opened at Rs266 and made an intra-day high of Rs271 and a low of Rs262. Total traded volumes stood at 0.11mn shares.

Wockhardt announced that it launched anti-hypertensive drug Nicardipine injections in USA. The stock erased early gains and ended lower by 1.5% at Rs180 after it opened at Rs183. It made an intra-day high of Rs187 and a low of Rs179. Total traded volumes stood at 0.14mn shares.

Shares of Redington surged by over 3% to end at Rs316 after 2.2% of its equity, or ~1.7mn shares were traded in a single block on the BSE. The deal was transacted at an average price of Rs310 per share on the BSE.

The stock opened at Rs307 and made an intra-day high of Rs324 and a low of Rs306. Total traded volumes stood at 1.9mn shares.

Lloyd Electric & Engineering announced that through Janka Engineering s.r.o., (a wholly owned subsidiary company) having its registered seat at Prague, Czench Republic has signed a purchase agreement for the acquisition of assets (no liabilities) with Trademarks and 'JANKA' brand of Janka Radotin a.s., a leading czech based manufacturer of diversified Air Handling Product portfolio well positioned in the Czech market for a total consideration of approx. Euro 3.66mn, which is subject to the adjustment on the closing date.

The stock rose over 2% to end at Rs55.5. The stock opened at Rs54.6 and made an intra-day high of Rs56.85 and a low of Rs53.60. Total traded volumes stood at 0.18mn shares.

Copper rises for fourth straight day

Prices rise as dollar continues to stay weak
Copper prices ended higher once again on Wednesday, 18 November, 2009 at Comex. Prices rose to its highest levels in fourteen months as the dollar continued to hover in its weak levels.
At USA, copper futures for March delivery ended higher by 0.25cents (0.0.6%) to 3.1355 a pound. Earlier on Monday, it had touched a high of $3.142.
On the London Metal Exchange, copper for delivery in three months ended higher by $64 (0.8%) at $6,880 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
In the currency market on Wednesday, the dollar continued to remain at its weak levels. The dollar index, which measures the strength of dollar against basket of six other currencies, fell by almost 0.5%.
The Commerce Department in US reported today that housing starts in US fell a sharp 10.6% in October. New construction on housing units dropped to a seasonally adjusted annual rate of 529,000, the lowest level since April. The 10.6% drop was the biggest percentage decline for starts since January. Both single-family homes and multifamily units declined last month.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for November delivery closed at Rs 317/Kg. The closing price was Rs 0.6/Kg (0.19%) higher than previous closing price. Prices rose to a high of Rs 322.8/ Kg and fell to a low of Rs 315.65/Kg during the day's trading.
Among other metals traded in the LME on Wednesday, lead added 0.6% to $2,399 a ton and zinc gained 2.1% to end at $2,289 a ton. Nickel gained 0.9% to end at $17,050. Aluminium gained 1.6% to $2,066 a ton.

Precious metals end little higher

Gold marks another new record for itself
Precious metal prices marked another record high on Wednesday, 18 November, 2009. Prices rose as the dollar continued to stay weak despite weak set of economic data at Wall Street.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Wednesday, gold for December delivery ended at $1,141.2, higher by $1.8 (0.1%) an ounce on the New York Mercantile Exchange. During intra day trading, it hit a high of $1153.4. This was an all time high prices marked by the yellow metal. Last week, gold ended higher by 2%. Year to date, gold prices are higher by almost 30%.
On Wednesday, December Comex silver futures ended higher by just 2 cent (0.002%) $18.41 an ounce.
In the currency market on Wednesday, the dollar continued to remain at its weak levels. The dollar index, which measures the strength of dollar against basket of six other currencies, fell by almost 0.5%.
The Commerce Department in US reported that housing starts in US fell a sharp 10.6% in October. New construction on housing units dropped to a seasonally adjusted annual rate of 529,000, the lowest level since April. The 10.6% drop was the biggest percentage decline for starts since January. Both single-family homes and multifamily units declined last month.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for December delivery closed higher by Rs 83 (0.48%) at Rs 17,105 per ten grams. Prices rose to a high of Rs 17,236 per 10 grams and fell to a low of Rs 17,001 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 163 (0.58%) higher at Rs 28,227/Kg. Prices opened at Rs 28,134/kg and rose to a high of Rs 28,688/Kg during the day's trading.

Turnover declines

RIL November 2009 futures at premium
Nifty November 2009 futures were at 5,057, at a premium of 2.30 points as compared to spot closing of 5,054.70. Turnover in NSE's futures & options (F&O) segment was Rs 67,322.64 crore, lower than Rs 71,301.23 crore on Tuesday, 17 November 2009.
Reliance Industries (RIL) November 2009 futures were at premium at 2104.50 compared to the spot closing of 2101.
Tata Steel November 2009 futures were near spot price at 547 compared to the spot closing of 546.
Jindal Steel & Power November 2009 futures were near spot price at 729 compared to the spot closing of 728.40.
In the cash market, the S&P CNX Nifty fell 7.55 points or 0.15% at 5,054.70.

Wednesday woes continues to whack Asian Markets

Nikkei, NZX 50, Sensex, Hang Seng finish lower while Sydney, Seoul, Shanghai ended higher
Stock markets in Asian region witnessed a mixed trend on Wednesday, 18 November 2009, as investors took some profits at higher levels amid some doubts about the pace of economic recovery. Investors awaited a raft of U.S economic data such as CPI and housing starts for more clues about the health of the world's largest economy.
On Wall Street, stocks closed higher Tuesday, again touching year highs, after having the flat line most of the day. The market digested a mix of builder confidence figures, wholesale price data, factory numbers and retail earnings. The Dow Jones Industrial Average gained 30 points, or 0.3%, to 10,437. The S&P 500 advanced 1 point, or 0.1%, to 1110, as the Nasdaq added 6 points to 2204.
In the commodity market, crude oil advanced for a third day in New York after an industry report showed a decline in crude stockpiles in the U.S., the largest energy consumer.
Crude oil for December delivery rose as much as 71 cents, or 0.9 percent, to $79.85 a barrel in electronic trading on the New York Mercantile Exchange. It was at $79.71 at 4:24 p.m. in Singapore. Yesterday, the contract rose 24 cents to settle at $79.14.
Brent crude oil for January settlement rose as much as 73 cents, or 0.9%, to $79.70 a barrel on the London-based ICE Futures Europe exchange. It was at $79.53 a barrel at 4:25 p.m. Singapore time. The contract climbed 21 cents, or 0.3%, to $78.97 a barrel yesterday.
Gold climbed to a record in London and New York as investors bought the precious metal as an alternative to a weaker dollar. Silver and platinum rose to the highest prices in at least 14 months. Immediate-delivery bullion gained as much as $6.42, or 0.6 percent, to $1,147.72 an ounce in London and was at $1,146.72 by 9:41 a.m. local time. December gold futures climbed as much as 0.8 percent to $1,148.10 an ounce on the New York Mercantile Exchange’s Comex division and were last at $1,146.80.
In the currency market, the U.S. dollar edged lower against other major currencies on Wednesday, as European shares posted gains for the fifth time in six sessions.
The Japanese yen was quoted at 89.18 per US dollar on Wednesday.
The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually the Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar. The Hong Kong Monetary Authority (HKMA), on Wednesday afternoon injected HK$5.425 billion ($700 million) into the money market to stem an appreciating Hong Kong dollar and keep it within its fixed trading band.
In Sydney trade, the Australian dollar fell further from 15-month highs on Wednesday as investors seized on recent weakness to take profits, but few doubted it was still poised to head higher aided by rising local interest rates. At the local close, the dollar was trading at $US0.9292, down from $US0.9336 seen here yesterday. It had hit a 15-month high of $US0.9470 on 16 November 2009.
In Wellington trade, the New Zealand dollar settled into a fairly narrow range in quiet trading today. By 5pm it was at US74.34c from US74.49c at 8am and US74.69c at 5pm yesterday. It has retreated from US75.20c, a three week high, yesterday due to strength in the US dollar.
The South Korean won closed at 1,153 won to the greenback, up 1.1 won from Tuesday's close and the highest finish since 23 September 2008, as global equity rallies stoked investor appetite for risky assets.
The Taiwan dollar was little changed against the greenback. The Taiwan dollar was trading slightly higher against the US dollar at NT$ 32.1190, 0.0010 up from Tuesday’s close of NT$32.1200.
In the Asian equity markets, most of the regional markets finish lower as capital and share-sale concerns dragged banks and property companies’ lower, overshadowing advances among telecommunications companies.
In Japan, shares market dragged down on rekindled worries about nation’s deflation, corporate equity finance plans, and growing uncertainty about government economic policy. Investors remained circumspect as domestic issues such as the rise in corporate share issuance, a stronger yen and growing concern about deflation, kept market activity apprehensive. Investors opted to lock in early gains made as profit taking became pervasive.
At closing bell, the Nikkei 225 Stock Average index was at 9,676.8, lost 53.13 points or 0.55% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange fell 6.94 points, or 0.81%, to 850.06.
In Mainland China, share market endured gains for fourth day in row, boosted by a positive lead from overseas markets and continued strength in resource and energy shares, although most of morning gains trimmed on worries recent rally turned stocks overvalued as compared earning.
The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, surged 20.34 points, or 0.62%, to 3,303.23, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, earned 0.05%, to 3,630.23. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange edged down 0.21% or 28.73 points and stood at 13,642.35 points.
In Hong Kong, the stock market reversed early morning gains sparked by positive Wall Street overnight on profit taking in major heavyweights on concerns that the recent rally not be sustainable. Most of market participant banked profit after the benchmark hitting the 23,000 level for a second day.
The Hang Seng Index stumbled 73.82 points, or 0.32%, to 22,840.33, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, retracted 44.04 points, or 0.32%, to 13,688.01.
In Australia, the share market trimmed most of morning gains before finishing up on the back of support from properties and banks and financials stocks. Materials and resources lost a lot of steam in afternoon, while gold miners benefited as precious metal increased its value to record high. At closing bell, the benchmark S&P/ASX200 index swelled 9.60 points, or 0.2%, to 4,739 after touching a high of 4780.4, meanwhile the broader All Ordinaries jumped 9.40 points or 0.2%, to 4,759.60.
On the economic front, the Australian Bureau of Statistics said that merchandise imports value increased in original terms in October, rising A$329 million or 2% to A$17.96 billion compared to a revised A$17.63 billion in the previous month. On a balance of payments basis, preliminary data showed goods imports dropped by a seasonally adjusted 2% to A$16.89 billion in October from A$17.17 billion in September.
The Australian Bureau of Statistics wage price index increased by 0.7% in the quarter ended September 2009. The annual wage growth rate ease to 3.6 % in the year to September from 3.8 %, the slowest pace in at least two years.
The Leading Economic Index, which measure published by Westpac Bank and the Melbourne Institute, economic activity in the coming three to nine months, rose 0.9% in September to 255.1, On an annualized basis, leading index grew 5.8% in September, compared to 3.8% in August. The Coincident Index, which measures current activity, rose 0.2% in September to reach 239.2 points. On an annualized basis, it expanded at rate of 0.4% compared to an August reading of minus 0.1%.
In New Zealand, stock market ended up by a slim margin. The share market slipped just a little today as buyers were happy to wait for new listings, further news of which is seen as imminent. The NZX50 dipped down 0.10% or 3.11 points to 3128.40. The NZX 15 inched forward 0.06% or 3.21 points to close at 5687.53.
In South Korea, shares closed higher as foreign investors snapped up tech and memory chipmakers on a brisk sales outlook. The benchmark Korea Composite Stock Price Index (KOSPI) advanced 17.99 points to 1,603.97, the highest close since 29 October 2009.
In Singapore, stocks market dragged down by profit booking in banks, properties and major blue chips stocks on tracking weak Asian and European bourses. Banks and financials finished in diverse terrain on profit booking following recent strong rally. Manufacturing and multi industries dropped on concern recent rally were overdone and as metal and oil prices fell in today. The blue chip Straits Times Index was ended session at 2,745.04, slid 19.91 points or 0.72%.
On the economic front, the International Enterprise Singapore said Singapore's non-oil domestic exports or NODX dropped 6.1% year-on-year in October, slower than the downwardly revised 7.3% decrease in the previous month. On a monthly basis, NODX plummeted a seasonally adjusted 13%, in contrast to the 2.9% increase in the previous month.
In Taiwan, stock market flip-flop yesterday’s losses with gains as Chinatrust Financial gained following its decision to buy a stake of AIG’s Taiwan unit from China Strategic. The benchmark Taiex share index once again witness a flip-flop on Wednesday by inching higher towards its near 17-month high, finishing higher by 33.48 points or 0.43% in a day, closing at 7766.69.
In Philippines, the stock market closed marginally higher on strong leads from Wall Street, with mining & oil index coming back into play, recording awesome gains driven by Philex Mining Corporation, which jumped almost 9%. At the concluding bell, the benchmark index PSEi ascended 0.67% or 20.52 points to 3,052.61, while the All Shares index mounted 0.37% or 7.21 points to 1,906.28.
In India, the key benchmark indices hit fresh day's low in late trade despite higher European stocks. Investors took home cash after recent spurt in indices. The market recovered soon after an initial slide. The Sensex and the 50-unit S&P CNX Nifty pared gains after hitting one-month highs in mid-morning trade.
The market once again slipped into the red later. The market cut losses in early afternoon trade after Finance Minster Pranab Mukherjee said the current higher capital inflows are not a matter of concern. The market moved between positive and negative zone later. Market hit fresh day's low in late trade.
The BSE 30-share Sensex was down 51.87 points or 0.30% to 16998.78. At the day's high of 17,098.79, the Sensex rose 48.14 points in mid-morning trade, its highest since 21 October 2009. The Sensex fell 92.24 points at the day's low of 16958.41 in late trade. The S&P CNX Nifty was down 7.55 points or 0.15% to 5054.70. It hit a high of 5079.30; it’s highest since 21 October 2009.
Elsewhere, Malaysia's Kula Lumpur Composite index finished lower at 1275.10 while stock markets in Indonesia’s Jakarta Composite index added 5.11 points ending the day higher at 2484.23.
In the other hand, European shares gained on Wednesday, rising for the fifth time in six sessions, with companies leveraged to an improving economy performing well. On a regional level, the U.K. FTSE 100 index up 0.2% at 5,357, the German DAX 30 index rose 0.5% to 5,808 and the French CAC-40 index advanced 0.5% to 3,848.95.

BSE Bulk Deals to Watch - Nov 18 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
18/11/2009 533083 Rishabhdev Technocbl ARIHANT SEC & INVESTMENT B 145206 19.70
18/11/2009 533083 Rishabhdev Technocbl TOUCHSTONE FINVEST SERVICES PVT LTD B 88903 19.69
18/11/2009 533083 Rishabhdev Technocbl TOUCHSTONE FINVEST SERVICES PVT LTD S 88903 19.81
18/11/2009 533083 Rishabhdev Technocbl ARIHANT SEC & INVESTMENT S 98206 19.15
18/11/2009 570001 TataMotors DVRA Ordy JM FINANCIAL SERVICES PVT LTD B 650000 500.00
18/11/2009 570001 TataMotors DVRA Ordy TATA SONS LTD S 1200000 500.00
18/11/2009 531881 ARVIND CHEM NEHA GYANESHWAR SHARMA S 102637 55.88
18/11/2009 531682 CAT TECH VINOD AMRATLAL NAAI B 405100 12.40
18/11/2009 531682 CAT TECH VINOD AMRATLAL NAAI S 289216 12.33
18/11/2009 532022 FILATEX FASH CHANDRESH CHANDRAKANT SHAH B 32923 18.46
18/11/2009 532022 FILATEX FASH CHANDRESH CHANDRAKANT SHAH S 32923 18.19
18/11/2009 532521 FOUR SOFT SETU SECURITIES PVT LTD B 208048 24.70
18/11/2009 532521 FOUR SOFT SETU SECURITIES PVT LTD S 208044 24.68
18/11/2009 531439 GOLDSTONE TECH PREM MOHANLAL PARIKH B 150000 27.38
18/11/2009 508918 GREYCELLS ENTER SAFE ENTERPRISES B 100000 57.30
18/11/2009 508918 GREYCELLS ENTER I G E INDIA LTD S 136425 55.11
18/11/2009 511543 GSB FINANCE NEELAM RAMAKANT BIYANI B 50000 8.75
18/11/2009 511543 GSB FINANCE GSB SECURITIES PVT LTD S 50000 8.75
18/11/2009 532139 GTECH INFO CHANDRAKANT B SHAH S 897200 2.02
18/11/2009 532139 GTECH INFO KAUSHIK GANGARAM RATHOD S 781200 2.03
18/11/2009 517271 HBL POWER UTI INVEST ADVISORY SERV LTD A/C ASCENT INDIA FUND S 131410 410.00
18/11/2009 532679 INDIABULLS RETL JM FINANCIAL SERVICES PVT LTD S 113191 33.59
18/11/2009 504336 INDTRADECO ARYAMAN BROKING LIMITED B 5000000 0.40
18/11/2009 504336 INDTRADECO VARSHA INDL TOWNSHIP ORGANISERS PVT LTD. S 961150 0.40
18/11/2009 504336 INDTRADECO KRUNAL INDUSTRIAL ESTATE DEVELOPERS PRIVATE LIMITED S 4038850 0.40
18/11/2009 516078 JUMBO BAG RUSHAB RAVJI PATEL S 40646 36.37
18/11/2009 522259 KALINDI RAIL AMIF I LTD S 160000 158.26
18/11/2009 530255 KAY POWER KAUSHALYA GARG B 350000 7.84
18/11/2009 530255 KAY POWER BAMPSL SECURITIES LTD. B 175550 7.70
18/11/2009 530255 KAY POWER VISHAL PIPES LTD B 100000 7.63
18/11/2009 530255 KAY POWER SATISH KUMAR GUPTA B 97956 7.80
18/11/2009 530255 KAY POWER SUNDER DASS AGARWAL B 136226 7.86
18/11/2009 530255 KAY POWER GIRRAJ PRASAD GUPTA B 134182 7.80
18/11/2009 530255 KAY POWER KAUSHALYA GARG S 352000 7.69
18/11/2009 530255 KAY POWER BAMPSL SECURITIES LTD. S 175550 7.82
18/11/2009 530255 KAY POWER SATISH KUMAR GUPTA S 97956 7.80
18/11/2009 530255 KAY POWER SUNDER DASS AGARWAL S 136226 7.84
18/11/2009 530255 KAY POWER GIRRAJ PRASAD GUPTA S 134182 7.89
18/11/2009 531366 KOHINOOR BROAD VINOD AMRATLAL NAAI B 707731 6.20
18/11/2009 531366 KOHINOOR BROAD VINOD AMRATLAL NAAI S 721738 6.22
18/11/2009 531261 KUSHAGRA SOFT ALKEN MANAGEMENT & FINANCIAL S S 100000 11.08
18/11/2009 526596 LIBERTY SHOES OPG SECURITIES P LTD B 170345 108.96
18/11/2009 526596 LIBERTY SHOES OPG SECURITIES P LTD S 170345 108.95
18/11/2009 500265 MAHARASHTRA SEAM CONCORD TREXIM PRIVATE LIMITED B 350000 364.50
18/11/2009 500265 MAHARASHTRA SEAM STABLE TRADING CO.LTD. B 350000 364.00
18/11/2009 500265 MAHARASHTRA SEAM JHANJHARI HOLDINGS PVTLTD S 350000 364.00
18/11/2009 500265 MAHARASHTRA SEAM G V N FUELS LIMITED S 350000 364.50
18/11/2009 531769 PFL INFOTECH VEDANSH BHAGERIA B 25000 12.36
18/11/2009 531769 PFL INFOTECH SHEFALI BHAGERIA B 21679 12.36
18/11/2009 531769 PFL INFOTECH MANSI BHAGERIA B 25000 12.36
18/11/2009 531769 PFL INFOTECH ANU BHAGERIA B 25000 12.36
18/11/2009 531769 PFL INFOTECH ISHITA MOHATTA B 50000 12.36
18/11/2009 531769 PFL INFOTECH SARITA PASARI B 50000 12.36
18/11/2009 531769 PFL INFOTECH RITU PASARI B 47538 12.36
18/11/2009 531769 PFL INFOTECH PRIME INVEST INFO INVEST LTD. S 100000 12.36
18/11/2009 531769 PFL INFOTECH GB TRADING & INVESTMENTS (P) LTD. S 278000 12.36
18/11/2009 531746 PRAJAY ENGR ANGEL INFIN PRIVATE LIMITED B 298109 32.48
18/11/2009 590077 RANKLIN SOL SATYA NARAIN TULSIAN B 28579 44.99
18/11/2009 590077 RANKLIN SOL JAYA VEER V. DURGA PRAKASH M. S 33500 45.00
18/11/2009 532805 REDINGTON INDIA INDIA CAPITAL FUND LTD. B 1391598 310.00
18/11/2009 532805 REDINGTON INDIA INDIA MAN FUND MAURITIUS LIMITED S 1700000 310.01
18/11/2009 511585 REGENCY TRUST OMPRAKASH JINDAL (HUF) B 20000 11.25
18/11/2009 511585 REGENCY TRUST NIRMALADEVI JINDAL B 20000 11.25
18/11/2009 511585 REGENCY TRUST OMPRAKASH JINDAL B 20000 11.25
18/11/2009 511585 REGENCY TRUST PRAVEEN JINDAL B 20000 11.25
18/11/2009 511585 REGENCY TRUST SUNIL KAJARIA S 110000 11.25
18/11/2009 531952 RIBA TEXTILES NITA BANKESH BHAVSAR S 126000 19.05
18/11/2009 531781 SAPAN CHEM PUSHPABEN SURESHKUMAR B 60000 3.00
18/11/2009 531781 SAPAN CHEM J GEETHALAKSHMI S 61000 3.00
18/11/2009 532344 SOFTSOL INDIA SOFTSOL INDIA LTD B 170056 55.00
18/11/2009 532344 SOFTSOL INDIA KRISHNA CHANDAKKINENI S 169699 55.00
18/11/2009 522229 TANEJA AERO RAJ KUMAR LOHIA HUF B 130000 37.14
18/11/2009 526650 TOURISM FIN CORP SUNIL ROSHANLAL BEHKI B 589041 26.68
18/11/2009 526650 TOURISM FIN CORP SUNIL ROSHANLAL BEHKI S 518537 26.40
18/11/2009 532619 UTV SOFTWARE RELIANCE MUTUAL FUND S 150000 450.00
18/11/2009 530109 VANTAGE CORP NARESH CHAND JAIN B 24345 16.77
18/11/2009 530109 VANTAGE CORP PUNYAYATRIK JHAVERI S 22420 17.17
18/11/2009 530109 VANTAGE CORP NARESH CHAND JAIN S 24345 17.16
18/11/2009 532867 VISHAL RETL Naman Securities & Finance Pvt. Ltd. B 120911 66.02
18/11/2009 531249 WELL PACK PAPERS PANDYA YAMINIBEN M B 29751 293.12
18/11/2009 531249 WELL PACK PAPERS LAXMAN DHIRUBHAI PARMAR B 25190 294.42
18/11/2009 531249 WELL PACK PAPERS PANDYA YAMINIBEN M S 23759 294.31

NSE Bulk Deals to Watch - Nov 18 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
18-NOV-2009,LIBERTSHOE,Liberty Shoes Ltd,OM INVESTMENTS,BUY,146071,109.39,-
18-NOV-2009,LOKESHMACH,LOKESH MACHINES LIMITED,KETAN BHUPENDRAKUMAR SHAH,BUY,60490,45.97,-
18-NOV-2009,PRAENG,Prajay Engineers Syndicat,ANGEL INFIN PRIVATE LIMITED,BUY,618213,32.75,-
18-NOV-2009,PRAENG,Prajay Engineers Syndicat,SETU SECURITIES LTD,BUY,219140,32.75,-
18-NOV-2009,RAMSARUP,Ramsarup Industries Limit,SILVER STALLION LIMITED,BUY,125000,87.00,-
18-NOV-2009,TFCILTD,Tourism Finance Corp ,BEHKI SUNIL ROSHANLAL,BUY,429229,26.01,-
18-NOV-2009,KALINDEE,Kalindee Rail Nirman (Eng,AMIF I LTD,SELL,440000,158.55,-
18-NOV-2009,LIBERTSHOE,Liberty Shoes Ltd,OM INVESTMENTS,SELL,146071,109.47,-
18-NOV-2009,LOKESHMACH,LOKESH MACHINES LIMITED,KETAN BHUPENDRAKUMAR SHAH,SELL,49239,46.22,-
18-NOV-2009,LOKESHMACH,LOKESH MACHINES LIMITED,LOKESHWAR RAO MULAPUDI,SELL,150000,45.91,-
18-NOV-2009,MIRZAINT,Mirza International Ltd.,CALEDONIA INVESTMENTS PLC,SELL,505621,15.12,-
18-NOV-2009,MURUDCERA,Murudeshwar Ceram Ltd,MANJULA JAYANTILAL JAIN,SELL,92154,44.45,-
18-NOV-2009,PRAENG,Prajay Engineers Syndicat,ANGEL INFIN PRIVATE LIMITED,SELL,468631,32.54,-
18-NOV-2009,PRAENG,Prajay Engineers Syndicat,SETU SECURITIES LTD,SELL,95962,32.95,-
18-NOV-2009,RAMSARUP,Ramsarup Industries Limit,ASHISH JHUNJHUNWALA,SELL,125000,87.00,-
18-NOV-2009,TATAMTRDVR,Tata Motors DVR 'A' Ord,TATA STEEL LIMITED,SELL,676122,490.01,-
18-NOV-2009,TFCILTD,Tourism Finance Corp ,BEHKI SUNIL ROSHANLAL,SELL,429229,26.38,-

Sensex closes below 17K

Today's major news
Pratibha Industries secures contract from UP Jal Nigam; the stock closed 16.94% higher.
Legal notice to Mahindra Satyam for refund of Rs1,230.4 crore; the stock ends 1.38% lower.
Mahindra Lifespace in race to build new city in Mauritius; the stock closed 0.30% lower.
Valecha Engineering bags projects worth Rs110.00 crore; the stock closed 3.55% lower.
Tata Motors raises Rs264 crore in new FD scheme; the stock ends 3.14% higher.
Click here for more stories
Global signals
After yesterday’s fall European stocks opened marginally higher today. All the major European indices are trading in green at the time of writing this report with FTSE 100 trading at 5357, 11 points higher than its previous close.
Major Asian indices that opened weak didn’t manage to recover the losses, except for Shanghai Composite, Jakarta Composite and KOSPI Index that rose marginally. SGX Nifty that opened strong ended the highly volatile day with a marginal loss of 1.50 points.
Indian indices
Sensex ended the day with the loss of 52 points or 0.30% down. On the back of weak performance by Asian indices, Sensex stayed in red zone for most part of the day and failed to come out of red column.
The bellwether slipped below the psychologically important 17K level. The Sensex that opened 19 points lower at 17032 soon slumped from the level to see the low of 16958. However it went to make the high of 17099 before closing at 16999 that is marginally lower by 0.30% or 52 points. Today, Nifty managed to stay above 5000-level all through the day and ended the day at 5055, down by 8 points.
Sensex sentiment
Market breadth, the number of advancing shares to declining ones, was almost positive as out of 2,846 stocks traded on the BSE, 1,598 stocks advanced, whereas 1,166 stocks declined. Eighty two stocks closed unchanged.
Sectoral & stock screening
Of the 13 sectoral indices on BSE, except BSE Metal that was up by 1.20% the rest of the 12 sectoral indices were either up or down by less than 1%. BSE FMCG, BSE IT, BSE Realty, BSE CD, BSE HC, BSE TECk and BSE Auto were up by less than 1% each, whereas BSE Bankex, BSE CG, BSE PSU and BSE Power BSE Oil & Gas posted losses of less than 1% each.
On stocks’ front, Pantaloon Retail topped the chart surging by 5.76% for the day to be followed by GE Shipping (up 4.88%) and GTL Infrastructure that rose by 4.62%. Sintex Industries, Adani Enterprises, Ispat Industries, Oriental Bank of Commerce, JSW Steel and IDFC were up by 4% each. Among losers, Mphasis slid the most by 4.94%, followed by Exide Enterprises that fell by 4.86% and Reliance Infrastructure that was down by 3.20%.
Viewing volumes
On turnover front, Over 1.22 crore shares of Suzlon Energy changed hands on BSE followed by Ispat Industries (1.15 crore shares), Unitech (0.84 crore shares), GTL Infrastructure (0.74 crore shares) and IFCI (0.64 crore shares).

Sensex falls below 17,000

Volatility ruled the roost as the key benchmark indices edged lower with investors cashing in on gains after a sharp rally in the past few days. The BSE 30-share Sensex fell 51.87 points or 0.3% off close to 100 points from the day's high. The Sensex settled below 17,000 mark after alternatively moving above and below that level during the day.
Metal stocks rose. But capital goods and banking stocks fell. Index heavyweight Reliance Industries dropped after setting record date for a liberal 1:1 bonus issue. Another index heavyweight L&T also fell.
Intraday volatility was high. The market recovered soon after an initial slide. The Sensex and the 50-unit S&P CNX Nifty pared gains after hitting one-month highs in mid-morning trade. The market once again slipped into the red later. The market cut losses in early afternoon trade after Finance Minster Pranab Mukherjee said the current higher capital inflows are not a matter of concern. The market moved between positive and negative zone later. The market hit a fresh intraday low in late trade. Volatility was high at the fag end of the trading session
Profit taking weighed on the domestic bourses today. From a recent low of 15,404.94 on 3 November 2009, the Sensex had jumped 1,645.71 points or 10.68% in a short period of time to 17,050.65 on 17 November 2009.
Mukherjee said on Wednesday the country is monitoring foreign capital inflows and the current higher inflows are not a matter of concern. Indian stocks have risen sharply this year on robust inflow from foreign funds. Indian officials had said on recent occasions that they welcomed fund inflows, but Mukherjee on Wednesday also noted that India is ready to deal with the flows if they become a problem. We have a system of monitoring inflows, he said.
The industry body Assocham on Tuesday, 17 November 2009, suggested that foreign institutional investors (FIIs) should be charged a tax of 2% of their money pumped into the stock market to prevent further rise of the rupee and also an asset-bubble. At a quarterly policy review late last month, the RBI said there were signs excess liquidity is seeping into asset prices.
Imposing the tax would help the RBI to manage rupee at reasonable levels to safeguard and support Indian exporters, hit hard by rising input cost and appreciating rupee, Assocham said. The rupee has appreciated over 5% against the US dollar in the last six months.
The parliament will debate closely watched reform bills in the banking and insurance sectors in the winter session which starts on Thursday, 19 November 2009, the minister of state for Parliamentary Affairs Prithviraj Chavan said on Wednesday. The insurance bill, which is pending before the parliamentary standing committee, proposes to raise foreign investment limit in insurance companies from 26% to 49%, Chavan said
Meanwhile, Federal Reserve Chairman Ben Bernanke surprised investors on Monday 16 November 2009 when he said the central bank was attentive to implications of changes in the value of the dollar, although he reiterated that interest rates would remain exceptionally low for an extended period.
On Tuesday, 17 November 2009, other top Federal Reserve officials struck differing notes on the likely pace of the US economic recovery. Jeffrey Lacker, the president of the Richmond Federal Reserve Bank said economic recovery in the US is solidly under way. He expects the economy to grow at a reasonable pace in 2010 as the housing sector recovers and consumers and businesses resume spending. Lacker, an outspoken anti-inflation hawk, said that if officials want to keep inflation in check, they cannot be "paralyzed by patches of lingering weakness, which could persist well into the recovery."
Two other senior Fed officials, Cleveland Fed President Sandra Pianalto and San Francisco Fed chief Janet Yellen, stressed that the economic recovery will be sluggish. Yellen, however, told a panel in Hong Kong that the Fed knows it cannot maintain its easy money policy for too long once the economy has healed.
Lacker warned that the risk consumers and businesses lose confidence in inflation stability is greatest in the early years of an economic recovery. The Fed's actions to pump money into the system to spur recovery heightens this danger, he said.
The Fed took another small step on Tuesday to wind down its emergency support as financial markets improve. It shortened the maturity of the emergency loans it makes to banks at its discount window, which it had lengthened during the crisis.
Closer home, inflation based on the wholesale price index accelerated in October 2009 from a month earlier on costlier minerals and fuels. On Saturday 14 November 2009, the government switched to using monthly inflation data for all commodities with 1993/94 as the base year, from the earlier practice of announcing weekly price movement. The wholesale price index was up 1.34% in October 2009 from a year earlier, compared with 0.5% rise in September 2009 and 11.06% jump a year ago. Food prices, however, declined by 1% from the previous month's level, while minerals and industrial fuels were each costlier by 3%.
Mukherjee today said the government may import rice if there is a shortfall in the summer-sown crop output.
Industrial output grew 9.1% in September 2009 from a year earlier, helped by stimulus and festival demand, and adding to the debate on the timing of exit policy. However, Finance minister Pranab Mukherjee said on Monday stimulus packages to perk up the economy during the slowdown are unlikely to be withdrawn in the current financial year and the exit when it happens will be a gradual one.
Economists and analysts surveyed by the Reserve Bank of India (RBI) revised downwards India's gross domestic product projection to 6% for 2009/10 from 6.5% in the previous round of survey, the RBI released the results of the ninth round of survey on Monday 16 November 2009.
The RBI in its mid-term monetary policy review last month kept its GDP projection for the current fiscal unchanged at 6% but had increased inflation target to 6.5% by end-March 2010 from 5%. The government is scheduled to announce the July-September GDP growth number on 30 November 2009.
Meanwhile, the initial public offer of Cox and Kings, a global tour operator, was subscribed 60% at 16:00 IST on the first day of bidding today. The price band has fixed at Rs 316-330 per share and the issue will close for subscription on 20 November 2009. Face value per share is Rs 10.
European shares bounced back on Wednesday to trade near their highest level in more than 13 months, with investors waiting for macro-economic numbers from the United States and minutes from the Bank of England. The key benchmark indices in France, Germany and UK were up by between 0.44% to 0.67%.
Asian stocks were trading mixed on Wednesday. The key benchmark indices in China, South Korea and Taiwan rose by between 0.43% to 1.13%. The key benchmark indices in Hong Kong, Japan and Singapore fell by between 0.32% to 0.72%.
China needs to be alert to the danger of asset bubbles, but headline inflation is unlikely to be a risk for some time, Fan Gang, a member of the People's Bank of China's monetary policy committee, said. Speaking at a forum in Hong Kong on Wednesday, Fan said Chinese gross domestic product could expand between 8% and 9% in 2010. Growth this year would be above the government's target of 8%, he added.
Chinese Premier Wen Jiabao told US President Barack Obama in a meeting on Wednesday that China wants to balance its trade relationship with the United States and does not seek a surplus. The comments published on China's foreign ministry website made no reference to Wen mentioning China's yuan policy to Obama, but did indicate that Obama had brought up currency reform as one step that China should take to mitigate trade imbalances.
Trading in US index futures indicated a steady opening of US stocks on Wednesday, 18 November 2009.
US stocks rose to fresh 13-month highs on Tuesday as upbeat broker views on improving prospects for two Dow components offset disappointing holiday spending outlooks from Target and Home Depot. The Dow Jones industrial average was up 30.46 points, or 0.29%, to end at 10,437.42. The Standard & Poor's 500 Index gained 1.02 points, or 0.09% to finish at 1,110.32. The Nasdaq Composite Index rose 5.93 points, or 0.27% to close at 2,203.78.
In economic data from the US, producer prices rose 0.3% in October, with the core rate dropping 0.6%. And industrial production climbed 0.1% in October 2009. This was less than the 0.4% gain expected.
The BSE 30-share Sensex fell 51.87 points or 0.3% to 16998.78. At the day's high of 17,098.79, the Sensex rose 48.14 points in mid-morning trade, its highest since 21 October 2009. The Sensex fell 92.24 points at the day's low of 16,958.41 in late trade.
The S&P CNX Nifty fell 7.55 points or 0.15% to 5054.70. It hit a high of 5079.30 in intraday trade, its highest since 21 October 2009. Nifty November 2009 futures were at 5,057, at a premium of 2.30 points as compared to spot closing of 5,054.70. Turnover in NSE's futures & options (F&O) segment was Rs 67,322.64 crore, lower than Rs 71,301.23 crore on Tuesday, 17 November 2009.
The market breadth, indicating the overall health of the market was strong. On BSE, 1591 shares advanced as compared with 1163 that declined. A total of 81 shares remained unchanged.
From the 30 share Sensex pack, 18 fell and rest rose.
BSE clocked a turnover of Rs 5234 crore, higher than Rs 4835.65 crore on Tuesday,17 November 2009.
The Sensex is up 7351.47 points or 76.2% in calendar year 2009, as on 18 November 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8838.38 points or 108.3% as on 18 November 2009.
Coming back to today's trade, the BSE Mid-Cap index rose 0.29% and the BSE Small-cap index rose 0.8%. Both these indices outperformed the Sensex.
The BSE Metal index (up 1.2%), the BSE FMCG index (up 0.73%), the BSE IT index (up 0.7%), the BSE Realty index (up 0.67%), the BSE Consumer Durables index (up 0.61%), the BSE Healthcare index (up 0.47%), the BSE Teck index (up 0.47%), the BSE Auto index (up 0.03%), the BSE Power index (down 0.1%), the BSE PSU index (down 0.2%), outperformed the Sensex.
The BSE Oil & Gas index (down 0.84%), the BSE Bankex (down 0.78%), the BSE Capital Goods index (down 0.66%), underperformed the Sensex.
Energy major Reliance Industries (RIL) fell 1.47%. The company plans an aggressive exploration campaign, investments in petrochemicals and overseas acquisitions as India's top company by market capitalisation prepares itself for the next phase of growth. The company will work towards attaining global scale for its conventional energy platform petrochemicals, refining and oil and gas exploration and invest in its new businesses such as retailing and alternative energy, chairman Mukesh Ambani said at the company's annual meeting of shareholders on Tuesday.
Meanwhile, RIL has set 27 November 2009 as the record date for a liberal 1:1 bonus share issue.
The government on Monday 16 November 2009 announced additional allocation of 51.6 million metric standard cubic metres per day (mmscmd) of natural gas from RIL's Krishna Godavari D6 field. Nearly 70% of this has been to the power sector. The move, finalised at the meeting of the ministry of petroleum and natural gas on 27 October 2009, takes the total allocation to 91.6 mmscmd from the current 40 mmscmd.
RIL on Tuesday 10 November 2009 announced its first oil discovery in its exploration block in the Cambay Basin off Gujarat. Reliance holds 100% participating interest in the block. This block was awarded to Reliance under the fifth round of the New Exploration Licensing Policy.
Oil exploration stocks rose as crude oil gained for a third day on Wednesday after an industry report showed US stockpiles declined after a hurricane in the Gulf of Mexico. Oil rose as much as 0.9% to $79.85 a barrel on Asian electronic trading. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Cairn India rose 1.58%. The company on 5 November 2009 signed a pact with Reliance Industries for supply of crude oil.
India's second biggest state-run oil exploration firm by revenue Oil India rose 0.43%. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 0.37%. Steel magnate Lakshmi Mittal has reportedly pulled out of a project to develop an oil block in Kazakhstan with Indian joint venture partner Oil and Natural Gas Corp. ONGC Mittal Energy was to have acquired a 25% stake in Satpaev block from state-owned KazMunaiGaz and invested a total of $400 million in the project.
Meanwhile, the petroleum ministry has reportedly proposed a 33% hike in the price of natural gas produced by ONGC and Oil India and gradually increase it to $4.20 per mmBtu set for gas from Reliance Industries' KG-D6 fields.
PSU OMCs fell as higher crude oil prices will increase under-recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. HPCL, Indian Oil Corporation (IOC) and BPCL fell by between 0.45% to 2.35%.
Metal stocks rose on strong domestic demand. National Aluminium Company rose 0.3%. The company recently hiked the prices of aluminium products by Rs 1000 a tonne reflecting the recent uptrend in prices on the London Metal Exchange. Sterlite Industries rose 0.49%.
Steel Authority of India (Sail) rose 0.51% on reports the company has won a battle with ArcelorMittal for Chiria mines in Jharkhand. The steel minister on 16 November 2009 said the cabinet will soon consider selling part of government's stake in Steel Authority of Steel. Meanwhile, Sail chairman on Monday said the company has cut flat product prices by Rs 500 per tonne
JSW Steel rose 4.03%. Japan's Nippon Steel Corp on Wednesday denied a report that it was in talks for a stake in JSW Steel. Earlier, a television report said JSW Steel aims to raise $300 million to $500 million via the stake sale of about 7 to 11% to Nippon.
Tata Steel, the world's eighth largest steelmaker by output, rose 1.68%. Tata conglomerate is looking around the world for a successor to Ratan Tata, the 71-year old chairman of the sprawling salt-to-steel group said on Wednesday. Local and foreign candidates were being looked at to head the group, which includes Tata Motors, Tata Steel, Tata Consultancy Services and Tata Power among its 27 listed companies Tata Steel is reportedly raising its annual iron ore production by 55% to 17 million tonnes in India over the next two years. The expansion is expected to cost about Rs 1100 crore.
Tata Steel, recently approved a new convertible bonds offer in exchange for an existing $875 million securities to reduce costs and ease repayment obligations. The company said on 6 November 2009 steel sales at its Indian operations rose 38% to 462,000 tonnes in October 2009 over October 2008.
Demand for steel remains strong from auto, rural construction and infrastructure sectors. Also demand for construction grade steel has improved post monsoon season, and has resulted into higher sales.
India's largest engineering and construction firm by sales Larsen & Toubro fell 1.72%. The company after market hours on Tuesday said Gilbarco Inc. has bought its petroleum dispensing pump business.
India's largest power equipment maker by sales Bharat Heavy Electricals fell 0.19%. The company said on Wednesday it has signed a joint-venture to build a 1,600 megawatt (MW) thermal power plant in the central state of Madhya Pradesh. The power plant at Khandwa will be equipped with supercritical technology, which helps lower coal consumption and leads to lower emissions.
Banking shares fell on profit taking. India's largest bank by net profit State Bank of India (SBI) fell 0.88%. State Bank of India said on 9 November 2009 said it had entered into an agreement with T. Rowe Price to sell a 6.5% holding each in UTI Asset Management Company and UTI Trustee Company. State Bank currently holds 25% in each of the companies and after the sale its holding would be reduced to 18.5%, it said in a statement.
SBI announced after market hours on Friday 6 November 2009 it has revised downwards interest rates on deposits by 25-50 basis points for a few maturities effective from 9 November 2009. The bank's consolidated net profit rose 28.29% to Rs 3,133.16 crore on 22% rise in consolidated income to Rs 33,101.65 crore in Q2 September 2009 over Q2 September 2008. The results were announced on 31 October 2009.
India's largest private sector bank by net profit ICICI Bank fell 1.47% as its ADR fell 0.23% on Tuesday. The bank's net profit rose 2.6% to Rs 1040.13 crore on a 12.7% decline in total income to Rs 8480.73 crore in Q2 September 2009 over Q2 September 2008. The result was announced during trading hours on 30 October 2009.
India's second largest private sector bank by net profit HDFC Bank fell 0.22%.
India's largest dedicated home loan lender Housing Development Finance Corporation (HDFC) fell 0.66%. The lender announced after market hours on Friday 13 November 2009 it has agreed to acquire approximately 41% in the fully diluted equity share capital of Credila Financial Services from DSP Merrill Lynch Capital.
Prime Minister Manmohan Singh said on 8 November 2009, financial reforms, such as building up a domestic bond market and expanding foreign investment in sectors like insurance, would be pushed forward.
Meanwhile, the Reserve Bank of India Deputy Governor Usha Thorat said on Monday 16 November 2009 the central bank will soon issue guidelines on provisioning for bad loans by banks
IT stocks rose on gains in American depositor receipt overnight in US. India's third largest software company by sales Wipro rose 0.4% as its ADR rose 0.99% on Tuesday. Wipro, sees robust deal pipeline on the back of improving IT demand worldwide, Suresh Vaswani, joint chief executive said on Tuesday 10 November 2009. The company said on 5 November 2009 it had agreed to buy some personal care businesses of Yardley for about $45.5 million, adding to its consumer goods business. Wipro said it had signed an agreement with UK-based Lornamead group, which owns the Yardley brand, for the businesses in Asia, the Middle East, Australasia and some African markets.
India's second largest software company by sales Infosys rose 1.54% as its ADR rose 1.27% on Tuesday. Infosys BPO, the business processing outsourcing subsidiary of Infosys Technologies, last week, announced the signing of a definitive agreement to acquire all of the outstanding interests of McCamish Systems LLC, a premier business process solutions provider, based in Atlanta, Georgia in the United States.
The acquisition is expected to be completed later this year subject to the satisfaction of certain closing conditions. The upfront consideration for the deal is $38 million with up to an additional $20 million payable to the sellers if McCamish Systems achieves certain financial targets in the future. The announcement was made before market hours on Thursday 12 November 2009.
But, India's largest software company by sales Tata Consultancy Services (TCS) fell 0.54%. The company recently secured a 150 million pounds software implementation contract for 15 years from Cardiff city council, UK.
UltraTech Cement, a unit of conglomerate Aditya Birla Group rose 1.08% extending gains for the third day. The company absorbed sister unit Samruddhi Cement, to form the country's biggest cement firm. The move, flagged in October 2009, was approved by the boards of both companies on Sunday. In October, the group said it will hive off the cement business of flagship firm Grasim Industries into unit Samruddhi in a cashless transaction and later merge it with group firm UltraTech. Samruddhi shareholders will receive four shares of UltraTech for every seven held in Samruddhi. UltraTech will also issue 14.95 crore new shares, boosting its capital to Rs 274 crore.
India's largest mobile telecom services provider by sales Bharti Airtel fell 0.25%. The company's chief Executive Manoj Kohli recently said that the company is confident that the country will proceed on schedule with 3G spectrum auctions in January 2010 with high hopes for the technology in the competitive market. The government held a pre-bidding conference on Monday in the run-up to third-generation (3G) spectrum auctions that have been twice delayed but are now scheduled to take place on 14 January 2009.
Bharti expects the current state of stiff competition to continue into 2010, as the government worked on new rules that may allow faster consolidation, Kohli said.
Among other telecom stocks, Reliance Communications and Idea Cellular rose by between 0.4% to 0.69%.
Shares of state-run firms rose after Prime Minister Manmohan Singh on 5 November 2009, approved divestment in public sector companies to raise funds for social welfare. Hindustan Copper, Central Bank of India, State Trading Corporation, MTNL rose by between 0.07% to 2.54%.
Shares of shipping firms rose after the Baltic dry index, which tracks rates to ship dry commodities, surged to its highest since September 2008. On Tuesday, 17 November 2009 the Baltic Dry Index (BDI) jumped 3.8% to 4,381 in London, extending its rally for the fourteenth straight session, as bids rose for the Capesize vessels that transport iron ore and coal to China. Mercator Lines, Shipping Corporation of India , Essar Shipping Ports & Logistics , Shreyas Shipping & Logistics , Varun Shipping Company and Great Eastern Shipping Company rose by between 2.56% to 11.56%.
FMCG stocks rose on bargain hunting. ITC, Tata Tea, United Spirits, Nestle India, rose by between 0.28% to 1.61%.
India's largest thermal power producer by sales NTPC fell 0.26%. A 5% stake sale in state-run power producer could fetch the government Rs 8100 crore ($1.7 billion), Sunil Mitra, a senior finance ministry official, said on Friday 13 November 2009.
Last month, the cabinet approved share sales for NTPC, Satluj Jal Vidyut Nigam and Rural Electrification Corp.
Among other power stocks, Torrent Power, Reliance Infrastructure, CESC fell by between 0.02% to 3.2%.
Rate sensitive auto stocks fell on profit taking. Low interest rates and attractive benefits offered by companies pushes up sales
India's largest tractor maker by sales Mahindra & Mahindra fell 0.52%. The company's overall sales climbed 32% in October this year to 18,410 units against 13,935 units in the same month last year.
India's second largest bike marker by sales Bajaj Auto fell 1.11%. Carlos Ghosn, chief executive of French car maker Renault and Japan's Nissan Motor Co, said, last week, that an agreement had been signed with Bajaj Auto for a low-cost car which would come to India in 2012.
India's largest bike marker by sales Hero Honda Motors fell 0.75%. The company reported a marginal increase in October sales at 354,156 units as against 352,449 units in the same month last year
But, India's largest small car marker by sales Maruti Suzuki India rose 0.52%. The company's total sales grew 32.4% to 85415 units in October 2009, compared with 64490 units posted in the same month a year ago.
India's largest commercial vehicle maker by sales Tata Motors rose 3.14%. Tata Motors has reportedly raised Rs 264 crore so far through the revised fixed deposit scheme which it launched in August this year. The company is authorised to raise Rs 1,300 crore from the revised scheme. Meanwhile, Jaguar Land Rover received as much as 170 million pounds ($286 million) as a five-year working capital facility from General Electric Co.'s GE Capital division, the lender said on 16 November 2009. Tata Motors the owner of Jaguar Land Rover, is hopeful of turning around the unprofitable luxury unit as it cuts costs to battle a slump in sales during the global recession.
Car sales in India rose an annual 34% to 132,615 units in October 2009, boosted by festival demand and easier availability of loans, an industry body said on Wednesday 11 November 2009. Sales of trucks and buses, a gauge of economic activity, rose 52% to 42,562 units in October 2009, the data showed.
Rate sensitive realty shares rose on bargain hunting. Omaxe, Unitech, DLF, Lok Housing, rose by between 0.2% to 5.66%.
The RBI, late last month, raised the provisioning requirements for loans to commercial real estate from 0.4% to 1% at a regular monetary policy review. The latest RBI move will result in increase in borrowing costs for realty firms which depend heavily on borrowing. In view of large increase in credit to the commercial real estate sector over the last one year and the extent of restructured advances in this sector, it would be prudent to build cushion against likely non-performing assets (NPAs), the central bank said in its quarterly policy review.
Cals Refineries clocked the highest volume of 3.33 crore shares on BSE. Suzlon Energy (1.21 crore shares), Ispat Industries (1.15 crore shares), Karuturi Global (0.98 crore shares) and Mahindra Satyam (0.87 crore shares) were the other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 275.67 crore on BSE. JSW Steel (Rs 194.89 crore), Reliance Industries (Rs 178.04 crore), Tata Steel (Rs 141.86 crore) and DLF (Rs 109.29 crore) were the other turnover toppers in that order.

Cox & Kings (India) IPO Analysis

Cox & Kings is one of the recognized holiday brands with over 250 years of history. Over the years, it has increased its reach with global presence in 19 countries besides India through subsidiaries, branch offices and representative offices. In India, the company has 255 points of presence covering 164 locations through a mix of branch sales offices, franchised sales shops, general sales agents and preferred sales agents.
Cox & Kings has been promoted by A B M Good and Ajay Ajit Peter Kerker and his associates. Ajit Kerker was a very well known name in the Indian hotel industry and was earlier associated with Indian Hotels group, from where he had a controversial exit some years back.
The business of Cox & Kings can be broadly categorized as leisure travel (which includes outbound travel, inbound travel and domestic travel); corporate travel; and visa processing. The company has products like "Duniya Dekho", "Bharat Dekho" and "FlexiHol". It has increased its geographical presence through acquisitions as well as expanding its own business.
Acquisitions
In March 2006, Cox & Kings acquired the entire shareholding of Clearmine, a company incorporated in the UK. ETN Servicesis a wholly owned subsidiary of Clearmine and carries out destination management services for tours to Europe and also inbound tours in Europe for other tour operators. In September 2007, the company acquired the entire shareholding of Cox & Kings based in the UK and took over 41.17% of the share capital of Cox & Kings (Japan). Cox & Kings Travel, a wholly owned subsidiary of Cox & Kings, is an outbound specialist tour operator and caters to leisure travel market of Europe. Cox & Kings Travel and Cox & Kings Tours LLC holds 33.33% and 25.50%, respectively, of Cox & Kings (Japan). Cox & Kings (Japan) is a dedicated wholesaler of products and services to other tour operators.
The company acquired Quoprro Global Services Pvt. Ltd. and forayed into the business of visa processing. In September 2008, it got approval from the High Commission of India at Singapore for outsourcing their visa processing activities. Recently, it got in-principle approvals from the diplomatic missions of India at Athens, Greece and at Hong Kong for outsourcing their visa processing activities.
In December 2008 the company formed a joint venture with IRCTC, "Royale Indian Rail Tours Limited", to operate a luxury train to be called "Maharajas' Express". This train is currently under manufacturing and is scheduled to commence operations in January 2010. The train will carry nearly 100 passengers in 23 passenger coaches and will have two bars and two restaurants. It will have an ultra modern kitchen and a boutique. The train is expected to operate from September to April, making it a total of 16 journeys per annum.
During FY 2010, the company acquired Tempo Holidays Pty Ltd, based in Australia, with its wholly owned subsidiary Tempo Holidays NZ Ltd. in New Zealand. This would further consolidate its position in Europe as major business of the acquired company is in European countries. It has entered US with its recent acquisition of East India Travel Company Inc., which is in the business of selling up-market tour and travel packages in the US.
Domestic & International mix
The share of domestic revenues to the total operating revenues of the company has come down from 92% in FY2007 to 60% for Q1FY2010. The main reason is acquisition in the overseas markets.
The India business, i.e., the standalone business has reported CAGR over the last 4 years of 38.6% in revenues and 37.6% in profitability.
Public Issue
The public offer includes fresh issue and offer for sale by selling shareholders. The selling shareholders mainly Lehman Brothers Opportunity Limited, Deutsche Securities Mauritius and Merrill Lynch Capital Markets Espana S.A., S.V. are selling off part of their stake bringing it down from 8.23% to 3.39% on post issue equity. The selling shareholders had acquired the stake through purchase from promoters of the company in 2006 and increased its stake through bonus issue in 2007 and through rights issue at Rs 10 in July 2009. The cost for the selling shareholders is about Rs 91.91 per share.
The net proceeds of fresh issue would be utilized towards repayment of debt, acquisitions and strategic initiatives, investment in subsidiaries, in facilities and finally for corporate purposes. Part of the IPO proceeds is towards repayment of debt and for corporate purposes, which includes working capital needs of the Company. This would lead to lower interest costs and lower working capital needs going forward.
Strengths
* Cox & Kings has a good blend of domestic and international business so as to diversify its risk of dependence on one specific country. With presence across 19 countries other than India, e.g. UK, US, Australia, New Zealand and Japan, it has diversified its business. The share of international revenues has increased to 40% for the quarter ended June 30, 2009.
* The company has seen good growth in the domestic business. The revenue for the domestic business has reported CAGR of 38% for the last 4 years with earnings CAGR of 38%. Even in the downturn of 2008-2009, the company was able to grow revenues by 31% and maintain operating margins at 44% in the domestic business.
* The travel & tourism industry has seen a downturn due to the global economic slowdown. However, going forward, World Travel & Tourism Organization predicts the overall travel & tourism economy to grow by 4% per annum in real terms over the next 10 years. For India, the expected growth in travel & tourism demand from 2010 – 2019 would be 8.2%.
Weaknesses
* The company operates in a highly competitive market. It faces stiff competition from other organized players operating in this sector and also from the un-organized sectors. Many Indian and foreign players have entered the market both in the online and offline space.
* The travel and tours industry is cyclical and sensitive to changes in the economy in general. The sector may be affected by such factors as changes in the global and domestic economies. Any occurrence of an epidemic/terrorist acts in the countries may also have an adverse effect on the operations.
Outlook
At the issue price of Rs 316 – 330, on the consolidated EPS of Rs 10 for FY2009, the PE works out to 31.6 – 33 times. Thomas Cook (India) is trading at TTM PE of 47.5 times. However, Cox & Kings is much bigger in terms of global presence, with the listed Thomas Cook (India) being mainly India centric, whereas Cox & Kings is a global player.

RIL okays 1:1 bonus; record date Nov 27

The shareholders of the country's most valued company Reliance Industries on Tuesday approved the 1:1 bonus issue for which the company fixed November 27, 2009 as the record date.

In a filing to the Bombay Stock Exchange, RIL said the shareholders at the 35th annual general meeting on Tuesday approved November 27, 2009 as the record date for determining the shareholders who will be entitled to bonus issue.

The RIL board had last month approved 1:1 issuance of bonus shares after a 12-year hiatus. The last time RIL announced a bonus issue was in October 1997.

The company founded by the late Dhirubhai Ambani, credited for drawing retail investors to the stock markets in the 1970s, recommended an issue of one bonus share for every share held by shareholders, which the company felt would help unlock value.

"The proposal for bonus and dividend continue RIL's tradition of awarding shareholders on a sustained basis. If we look at our track record since we listed in 1978, our shareholders have got 25 per cent compounded return over these 31 years since RIL became a public company," RIL CFO Alok Aggarwal had said.

However, shares of RIL on Tuesday shed 0.65 per cent to close at Rs 2,133.75 on the BSE, as the AGM failed to cheer investors, who were expecting some big-bang announcements. The market as a whole had a choppy day, as Asian cues were not encouraging.

The RIL counter, which carries the most weight in the benchmark Sensex, has gained as much as 74 per cent so far this year from Rs 1,230.25 on December 31, 2008.

US markets close in the green

The US markets have ended on a positive note.

The Dow Jones closed at 10437, higher by 30.46 points or 0.29% and the Nasdaq ended at 2203.78, up 5.93 points or 0.27%.

The Indian ADRs, however, closed mixed.

Among the gainers, Infosys ended at $52.57, higher by $0.66 or 1.27%, Wipro ended at $20.40, up $0.20 or 0.99% and HDFC Bank ended at $136.62, up $0.11 or 0.08%.

On the loser's side, Patni closed at $20.82, down $0.56 or 2.62%, Tata Communications ended at $15.93, lower by $0.34 or 2.09%, Sterlite closed at $18.85, weaker by $0.20 or 1.05% and  

Asian markets open +ve; Hang seng up 147pts

The Asian markets have opened on a positive note. The Hang Seng has advanced 147 points to 23,060. The Nikkei on the other hand has slipped 14 points to 9,716.

The Shanghai Composite Index is up 23 points at 3,306 and the Straits Times index is flat at 2,767, respectively.

The Seoul Composite Index has added 19 points at 1,604 and the Taiwan Weighted Index is up 43 points at 7,776, respectively.

Government may drop tax on religious trusts from code

The finance ministry is likely to drop the proposal to tax religious trusts. The proposal formed part of the direct taxes code and had raised eyebrows both within and outside the finance ministry.

“The issue has been raised in the finance ministry's internal discussions. We are discussing whether the exemption was removed with intent or by mistake,” said a finance ministry official.

Under Section 10 (23C) of the Income Tax Act, any trust or institution that works wholly for public religious and charitable purposes and is approved by the chief commissioner or director general, is tax exempt. The tax code, however, has removed the term “religious purpose” from the exemption eligibility and instead said income of only those bodies that are registered under any Act of the Centre or the state and administer religious trusts, endowments or societies will be exempt.

Taxation experts have also opposed the proposal. “In the existing system, all religious monuments registered with the commissioner of income tax get exemption, provided they are able to spend 85 per cent of the funds for religious purposes. In the direct taxes code, only government institutions such as the Wakf Board controlling religious trust are exempt,” said Girish Ahuja, a chartered accountant.

In the same way, the income of authorities managing religious shrines such as Tirumala Tirupati Devasthanams and Vaishno Devi would be fully exempt from tax under the direct taxes code since they are established under a government Act.

“Currently, institutions can be registered with the tax department to claim deduction. Under the new code, they can register only with the Centre or the state government to claim deduction. But this could be a problem since only three states have provision for registration — Maharashtra, Gujarat and Orissa,” said Hitesh Gajaria, partner, KPMG.

Moreover, Section 80G of the existing Income Tax Act gives 50 per cent exemption on donations made to religious trusts.

The new code has proposed such exemption only for renovation or repair of a temple, mosque, gurdwara, church or other place that has been notified in the official gazette to be of historic, archaeological or artistic importance or a place of public worship of renown throughout any state or states.

Experts said this proposal in the code would significantly reduce donations since any contribution meant for spending on religious activities of a shrine such as bhajans and kirtans, or charitable activity, like feeding or teaching the poor, would be fully taxed.

Religious places that will be eligible for tax exemptions on donations will be notified later. “Any religious monument may not qualify to be of artistic or historic importance.

This will impact donations in a country where religion takes precedence over lots of issues,” said Prashant Khatore, partner, Ernst & Young.

Ahuja agreed, “Religious trusts are not taxed in most countries because they receive donations from the people. The authorities must have forgotten to put them in the exemption list.”

F&O Outlook: Nifty may not hold 5,000 levels

The Nifty failed to remain above the 80 per cent retracement level of 5,060 and closed in a Doji pattern, which indicates indecisiveness among traders. There was profit-booking in the Nifty November futures as well as in money index options as index futures and options together shed over four million shares in open interest through sell-side trades. The support is seen at 4,940, which is 61.8 per cent retracement level. The resistance continues to be around 5,060.

Technically, the market is significantly overbought, which is why traders resorted to profit-booking in index futures, index options and stocks futures. The Nifty November futures closed on a par with the spot and shed 1.90 million shares in open interest, indicating profit-booking. Bloomberg data show traders unwound long positions at every upside, which was indicated by more sell-side trades all through the day.

Options traders booked profit in all calls at 4,900 strikes and below as they expected the index could move below the support level of 4,940 in the near future. Bloomberg data suggest that 5,000 and 5,100 calls saw change of hands as both buy-side and sell-side volumes were at 47 per cent. However, intra-day trading suggests profit-booking in these calls during the morning session as the sell-side volume was higher at 51 per cent than the buy-side volume of 43 per cent.

Put options traders booked profit in 4,500-4,700 strike puts and covered short positions in 4,800-4,900 strike puts. The 5,000 put saw change of hands from sellers to buyers while the 5,100 put added 240,005 shares in open interest, mostly through buy-side trades. This means the index may not hold 5,000 levels in the near future and may slide below the 4,900 mark.

FIIs net sellers Rs 325cr in F&O on Tuesday

The Foreign Institutional Investors (FIIs) were net sellers of Rs 325.11 crore in futures and options segments on Tuesday.

According to the data released by the NSE, FIIs were sellers of index futures to the tune of Rs 320.94 crore while bought index options worth Rs 212.37 crore. They were net sellers of stock futures to the tune of Rs 236.75 crore while bought stock options worth Rs 20.21 crore.

India Inc getting over green rating blues

Being rated ecology-friendly is both needed and profitable.

Green ratings were a no-no for most Indian companies till a few years earlier. But the ratings have now graduated from just being an initiative of non-government organisations to something both the government and industry would like to embrace fast.

Last week, the Bureau of Energy Efficiency under the Union ministry of power announced a green rating programme for companies based on their consumption of energy. That followed a similar initiative from the Confederation of Indian Industry, which announced earlier this month that it will rank companies on the basis of their environment friendliness.

The organisation to have taken the lead was the Centre for Science and Environment (CSE), which started its green rating project way back in 1997, covering a sector every two years. The next ratings are due in March. CSE deputy director Chandra Bhooshan says the ratings take into account the entire life cycle of a product, right from the source to the consumer. So far, CSE has rated companies in the automobile industry, paper and chlor alkali.

The CII programme is still in the works and the head of the CII Godrej Green Business Centre based in Hyderabad, S Raghupati, says the pilot will be carried out in July next year, when questions would be sent to a few companies. The companies would be rated on resource conservation, energy and water efficiency, waste management, procurement, green supply chain .

But the CII initiative has already started drawing the attention of its detractors. CSE, for example, claims superiority for its ratings, based on the fact that it does not charge a fee from companies and also does not get companies to sponsor the ratings. Besides, it gets the claims of companies verified.

CII is also a partner of the Carbon Disclosure project, one that rates companies based on disclosures made by them about their carbon impact on the planet. It also plans to do an annual audit of the companies rated to verify the claims made by them in their websites and annual reports.

One of many reasons why green ratings are in vogue is that they pay off quite handsomely. In his research project, titled ‘Go green, garner greenbacks’, Mayank Batra of Frost & Sullivan says along with the social incentives of a cleaner environment and positive public relations, the biggest draw for green buildings will be to make big bucks through carbon credits. According to an estimate made by Mukesh, ‘green’ buildings in India have increased from 20,000 sq ft area in 2004 to 275 million sq ft in 2009.

And the trend will only increase. Just as Batra’s paper suggests interest benefits on loans by banks for green projects, more incentives and regulations are likely to push the acceptance of green buildings. Carbon credit earnings have also become a big incentive for companies, as low-carbon emitting businesses exchange, buy, or sell carbon credits in international markets at the prevailing market price.

Turnover declines sharply

Aban Offshore November 2009 futures at premium
Nifty November 2009 futures were at 5,055.20, at a discount of 2.85 points as compared to spot closing of 5,058.05. Turnover in NSE's futures & options (F&O) segment was Rs 58,411.07 crore, sharply lower than Rs 72,277.97 crore on Friday, 13 November 2009.
Aban Offshore November 2009 futures were at premium at 1293.80 compared to the spot closing of 1288.05.
Reliance Industries November 2009 futures were at a slight premium at 2152 compared to the spot closing of 2150.
Tata Steel November 2009 futures were near spot price at 535.75 compared to the spot closing of 535.90.
In the cash market, the S&P CNX Nifty rose 59.10 points or 1.18% at 5,058.05.