Key benchmark indices touched day's low in afternoon trade as profit booking in afternoon trade in index heavyweight Reliance Industries and telecom stocks weighed on the bourses after a strong start. Nevertheless the market ended its four-day losing streak. The BSE 30-share Sensex was up 74.50 points or 0.47% to 16,127.22, off 233.66 points from the day's high but up 46.72 points from the day's low.
Index heavyweights Reliance Industries and Oil & Natural Gas Corporation declined after their earnings after market hours on 29 October 2009. Telecom stocks tumbled on continued worries about price war in the sector.
Auto stocks gained on robust earnings. Infrastructure shares gained on bargain hunting after a recent steep slide. Metal shares spurted on the back of firm metal prices on the London Metal Exchange.
The market pared gains soon after an initial surge triggered by firm global stocks. It market was range bound in mid-morning trade. It pared gains later. Market hit day's low as profit booking accentuated in afternoon trade.
Derivatives contracts for October 2009 series, which expired on Thursday, 29 October 2009, saw healthy rollover. As per reports, rollover of Nifty positions from October 2009 series to November 2009 series was 76% as compared with 66% in the previous series. Marketwide rollover was 80% for the latest series as compared with 76% in the previous series.
Germany's retail sales fell 0.5% in September 2009 from the previous month, the Federal Statistics Office reported on Friday. The figure was below market expectations of a rise.
Most Asian markets edged higher after data on Thursday showed US gross domestic product (GDP) grew at a 3.5% pace in Q3 September 2009. This was the fastest pace in GDP growth for the US economy since the third quarter of 2007. The growth followed four quarters of contraction. Key benchmark indices in Hong Kong, China, Japan, Singapore were up by between 1.12% and 2.62%. But key indices in Taiwan and South Korea were down 0.21% and 0.33% respectively.
The Bank of Japan's (BoJ) policy board unanimously left its overnight call rate target at 0.1% Friday, as was widely expected. It also extended its special lending program at that rate through the end of the Japanese fiscal year in March 2010 in order to ensure ample liquidity until then. However, it said it would end outright purchases of corporate bonds and commercial paper in December 2009, when those increasingly less-used steps were already scheduled to expire.
BoJ board member Atsushi Mizuno was the lone the policy board dissenter opposing its decision to end the outright buys and also end the loan program in March 2010. Although the BoJ makes its decisions independently, the government has kept pressure on the bank to do all it can to support the economic recovery.
The Bank of Japan said in its half-yearly outlook report that the Japanese economy will experience three years of deflation. The pace of price decline will slow only gradually it said which means that the central bank will keep interest rates near zero at least until 2011.
Japan's joblessness rate declined to 5.3% in September 2009 from 5.5% in August 2009, the statistics bureau said today in Tokyo.
US stocks soared on Thursday, 29 October 2009 after four days of losses after data showed the world's largest economy grew for the first time in a year as a spate of stimulus measures brought an end to the longest period of contraction since the Great Depression. The Dow Jones industrial average jumped 199.89 points, or 2.1%, to 9,962.58. The broader S&P 500 index rose 23.48 points, or 2.3%, to 1,066.11, while the Nasdaq Composite Index rose 37.94 points, or 1.8%, to 2,097.55.
A separate government report showed that the number of Americans filing new claims for unemployment fell to 530,000 last week from 531,000 the previous week. Economists thought it would drop to 525,000.
Continuing claims, a measure of Americans receiving benefits for a week or more, fell to 5,797,000 from 5,945,000 the week before. Economists thought claims would fall to 5,905,000.
Trading in US index futures indicated Dow could fall 7 points at the opening bell today, 30 October 2009.
Closer home, Prime Minister Manmohan Singh said on Friday that the country will push forward with reforms and needs to increase investment in rural education, health and infrastructure to raise the economic growth rate up to 10%.
The unexpectedly strong re-election of a coalition led by Singh's Congress party at national elections in raised hopes of sweeping reforms, but apart from stake sales in some government firms no major steps have been taken yet.
Exports declined by 13.8% to $13.6 billion in September 2009 over September 2008, preliminary data showed on 29 October 2009. The fall in exports in September 2009 was the lowest in the current financial year, showing gradual signs of recovery in the country's export sector.
Commerce Secretary Rahul Khullar said exports are likely to touch $165-175 billion during 2009-10 if the current trend continues. The country had exported goods worth more than $168 billion during 2008-09.
Inflation based on the wholesale price index (WPI) rose 1.51% in the year through 17 October 2009, higher than previous week's annual rise of 1.21%, data released by the government showed on Thursday. Within the WPI, the food articles index rose 12.85%. The government revised upwards inflation for the year through 22 August 2009 to rise of 0.17% from an estimated fall of 0.21%.
The Reserve Bank of India at its monetary policy review early this week left its key rates unchanged, but raised the wholesale price-based inflation projection for end-March 2010 sharply to 6.5% with an upward bias, from 5% earlier.
The International Monetary Fund (IMF) said on Thursday the economies of India, China and Australia were recovering especially rapidly, suggesting it notices growing pressures for authorities there to tighten monetary policy ahead of others in the region. It called the three economies special cases, while adding a tightening of monetary policy seemed unnecessary elsewhere in the region in the near future.
It also advised Asian central banks not to raise interest rates only to calm asset price growth, saying lifting rates ahead of advanced economies could attract carry trade-type capital inflows and aggravate asset price pressures.
Coming back to stocks, the supply of paper by Indian firms appear limitless, raising concerns that additional share sales will suck liquidity from the secondary equity market. As per reports, Indian firms have garnered about $9 billion (Rs 32,400 crore at the current exchange rates) through sale of shares and convertible bonds to institutional buyers since April 2009. Indian companies are taking advantage of a surge in liquidity to recapitalize and fund capital expenditure after being starved of cash last year.
Unlisted Reliance Infratel announced on 22 September 2009 its intention to raise Rs 5,000 crore from the primary market. Divestment of state-run firms by the government may also increase the supply of paper in the market.
The government recently approved stake sales in state-run power producer NTPC and another unlisted power firm Satluj Jal Vidyut Nigam which reflects the country's resolve to speed up reforms and raise more resources for social schemes.
The government has approved a follow-on public offering of 20% of state run Steel Authority of India, the steel minister said on 21 October 2009. The Government of India owns nearly 86% of Sail. Also the government gave its approval for 15% follow on public offer for Rural Electrification Corporation on 29 October 2009.
As per provisional data, foreign funds dumped stocks worth a net Rs 2546.67 crore on 29 October 2009 whereas domestic funds bought equities worth a net Rs 977.06 crore.
At 13:25 IST, the BSE 30-share Sensex was up 74.50 points or 0.47% to 16,127.22. The Sensex opened 83.15 points higher at 16,135.87. At the day's high of 16,360.88, the Sensex gained 308.16 points in early trade. The Sensex rose 27.78 points at the day's low of 16,080.50 in afternoon trade.
The S&P CNX Nifty was up 36.90 points or 0.78% to 4787.45
The market remains closed on Monday, 2 November 2009, on account of Guru Nanak Jayanti.
The market breadth, indicating the overall health of the market was strong. On BSE, 1757 shares advanced as compared with 860 that declined. A total of 67 shares remained unchanged.
The BSE Mid-Cap index was up 2.07% to 6,171.93 and the BSE Small-Cap index gained 1.59% to 7,227.13. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3277 crore by 13:25 IST as compared with Rs 2456 crore by 12:25 IST
Among the 30-member Sensex pack, 22 gained while the rest declined.
Auto stocks gained on the back of robust earnings announced by frontline companies. India's largest tractor maker by sales Mahindra & Mahindra shot up 2.10%. The company's net profit soared 185% to Rs 702.94 crore on a 35.1% increase in total income to Rs 4691.08 crore in Q2 September 2009 over Q2 September 2008. The result was announced during trading hours on 29 October 2009.
India's top small car marker by sales Maruti Suzuki India rose 1.80%. The company's net profit jumped 92.5% to Rs 570 crore on a 46.6% increase in sales to Rs 7080.67 crore in Q2 September 2009 over Q2 September 2008. The results were announced on Saturday, 24 October 2009.
India's largest truck marker by sales Tata Motors surged 2.53% after net profit jumped 110.13% to Rs 729.14 crore on 11.87% rise in total income to Rs 8399.75 in Q2 September 2009 over Q2 September 2008. The company announced the results after market hours on 26 October 2009.
Bike makers Bajaj Auto (up 2.86%), Hero Honda Motors (up 2.18%), and TVS Motor Company (up 1.66%), also logged gains.
Diversified major Grasim Industries surged 3.40% after net profit rose 60.73% to Rs 674.25 crore on 11.02% rise in net sales to Rs 2983.77 crore in Q2 September 2009 over Q3 September 2008. The results were announced after market hours on 29 October 2009.
India's largest firm by market capitalisation and oil refiner Reliance Industries (RIL) dropped 2.19% to Rs 1960 after it reported a fourth straight decline in quarterly profits on shrinking refining margins and reduced exports due to a global economic downturn. The company posted a 6.4% fall in net profit at Rs 3,852 crore despite 6% rise in total income to Rs 47,476 crore in Q2 September 2009 over Q2 September 2008. Refining margins more than halved to $6 a barrel from $13.3 a barrel a year earlier. The results were announced after market hours on Thursday, 29 October 2009
The government on 27 October 2009 allocated additional 50 million cubic metres a day (mmscmd) of gas from Reliance Industries-operated east coast block D6. Power plants and refineries will get the bulk of Reliance Industries' gas from the Krishna-Godavari basin beyond the previously allotted 40 million metric standard cubic metres per day (mmscmd).
The empowered group of ministers (eGoM) also made some allotments for Reliance's petrochemical plants and refineries.
India's largest oil exploration firm by sales Oil & Natural Gas Corporation declined 1.15%. Net profit rose 5.9% to Rs 5,090 crore in Q2 September 2009 over Q2 September 2008 on account of lower subsidy outgo and higher realisation on crude oil sales. The results were announced after market hours on Thursday, 29 October 2009
India's largest private sector bank by net profit ICICI Bank advanced 1.85% to Rs 785.40 ahead of its September 2009 results due today, 30 October 2009. However it retraced from the day's high of Rs 809. Its ADR rose 2.02% on 29 October 2009.
Metal stocks advanced after LMEX, a gauge of six metals traded on the London Metal Exchange jumped 3.52% on Thursday, 29 October 2009.
India's largest non ferrous metal producer by sales Sterlite Industries India surged 6.37% to Rs 792.50 on reports its subsidiary Sterlite Energy has filed a draft red herring prospectus with the market regulator Securities & Exchange Board of India to raise nearly Rs 5100 crore through an initial public offer. Its American depository receipt (ADR) jumped 4.88% on Thursday, 29 October 2009. It was the top gainer from the Sensex pack.
Tata Steel (up 4.03%), and Hindalco Industries (up 2.90%), were the other gainers from the metal pack.
Infrastructure shares gained on hopes of higher spend for the sector and more overseas order wins after US, the world's largest economy came out of recession. India's largest engineering & construction company by sales Larsen & Toubro rose 0.79%. India's largest power equipment maker by sales Bharat Heavy Electricals gained 0.66%. India's largest dam builder by sales Jaiprakash Associates advanced 3.23%.
Punj Lloyd (up 2.76%), Nagarjuna Construction (up 2.71%), Hindustan Construction (up 2.85%), Gammon India (up 2.08%), and Lanco Infratech (up 2.52%), gained.
Valecha Engineering gained 1.90% after net profit rose 16.52% to Rs 4.02 crore in Q2 September 2009 over Q2 September 2008. The company announced the results after trading hours on Thursday, 29 October 2009.
Unity Infraprojects gained 0.91% after the company secured a contract worth Rs 265.39 crore. The company announced the new order win during trading hours today, 30 October 2009.
Telecom stocks dropped after industry leader Bharti Airtel said it will be competitive in pricing. Concerns about price war in the sector has rattled telecom stocks in the past few weeks.
The mobile industry in India, the world's fastest-growing major market, is becoming increasingly competitive, with existing players cutting rates to attract subscribers before four new firms start operation this year. India's largest telecom company by sales Bharti Airtel declined 4.63% to Rs 297.60 and was the top loser from the Sensex pack.
The company's net profit rose 43.10% to Rs 2296.94 crore on a 7.5% increase in total income to Rs 8927.10 crore in Q2 September 2009 over Q2 September 2008. The result was announced during trading hours today, 30 October 2009
India's second largest telecom company by sales Reliance Communications fell 4.37%
Sugar stocks were mixed on reports of consolidation in the sector after reports indicated founders of Balrampur Chini Mills may sell a 37% stake in the sugar producer for Rs 1700 - 2000 crore. Bajaj Hindustan, U.S.-based Bunge and Singapore's Olam International are among the potential bidders for the stake, according to the report.
Bajaj Hindustan (down 0.16%), and Balrampur Chini Mills (down 0.59%), declined. However Shree Renuka Sugars (up 1.23%), Sakthi Sugars (up 0.46%), Triveni Engineering (up 2.72%), Oudh Sugar (up 6.35%), and Ugar Sugar works (up 4.78%), gained.
Shasun Chemicals & Drugs surged 4.85% after the company posted consolidated net profit of Rs 3.73 crore in Q2 September 2009 as compared to net loss of Rs 19.04 crore in Q2 September 2008. Shasun Chemicals & Drugs' net sales fell 11% to Rs 184.78 crore in Q2 September 2009 over Q2 September 2008. The company declared its results after trading hours on Thursday, 29 October 2009.
Kpit Cummins Infosystems jumped 5% after the company signed a deal to acquire US-based Sparta Consulting Inc for $38 million. The announcement was made during trading hours today, 30 October 2009.
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