Thursday, April 10, 2008

Markets Today


The market moved between positive and negative territory due to lack of strong participation from investors ahead of industrial production and inflation data on Friday, 11 April 2008. Key indices, which had soared in mid-afternoon trade, fell sharply in the last hour of trade led by sharp decline in banking stocks.
Oil gas stocks were the star performers of the session. IT stocks slipped due to profit booking after an early surge. Mid-caps and small-caps outperformed the frontliners.
Asian markets, which opened before Indian markets, were mostly in green. But European markets, which opened after Indian markets, were in the red.
As per provisional data, the 30-share BSE Sensex fell 124.41 points or 0.79% at 15,666.10. The Sensex gained 258.44 points at days high of 15,953.54, hit in mid-afternoon trade. The index lost 135.31 points at the sessions low of 15,655.20, hit at the fag end of the trading session.
The CNX S&P Nifty fell 22.55 points or 0.48% at 4724.50.
The BSE Mid-Cap index was up 0.12% at 6,478.96 and the BSE Small-Cap index was up 1.13% at 8,031.06.
On BSE, 1713 stocks gained, 949 stocks declined and 67 stocks were unchanged.
BSE clocked a turnover of Rs 5496 crore as against Rs 5,331.37 on Wednesday, 9 April 2008.
India's second largest power utility by revenue Reliance Energy surged 6.30% at Rs 1252 after the company said on Wednesday, 9 April 2008 that it bought-back 176,871 equity shares of the company. Since the commencement of the buy-back on 25 March 2008, the company has so far bought back 20,38,551 equity shares aggregating Rs 250.75 crore. Earlier, Reliance Energy's board had approved the buyback of shares worth about Rs 800 crore in the first phase.
Indias largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.94% at Rs 2465.
Indias largest private sector bank by assets ICICI Bank slipped 4.36% at Rs 801.50.
Indias largest engineering and construction firm by revenue Larsen & Toubro rose 1.08% at Rs 2665.70.
TCS (up 2.86% at Rs 901.70), Ambuja Cements (up 1.50% at Rs 122), Mahindra & Mahindra (up 1.13% at Rs 614.75), Tata Steel (up 1.03% at Rs 685.90), Hindalco Industries (up 0.64% at Rs 173.75) and Maruti Suzuki (up 0.35% at Rs 736), were the top gainers from the Sensex pack.
Ranbaxy Laboratories (down 4.33% at Rs 450.05), HDFC Bank (down 3.64% at Rs 1326), Jaiprakash Associates (down 3.19% at Rs 212.55), Bharti Airtel (down 2.95% at Rs 795.80) and Reliance Communication (down 2.69% at Rs 483), were the top losers from the Sensex pack.
Software firm Financial Technologies was down 0.89% at Rs 1,690 despite the company announcing the acquisition of South African technology company ICX Platform for $1.50 million.
Auto ancillary firm Banco Products India jumped over 17.25% to Rs 36.70 after it said its board would meet on 17 April 2008 to consider buyback of shares.
Private sector lender Development Credit Bank tripped 2.86% to Rs 88.45 after the management denied reports of a merger with a large bank for business expansion. The scrip had jumped over 10% to Rs 100.45 earlier in the day.
Mukesh Ambani-run oil refining firm Reliance Petroleum was up 3.17% at Rs 175.50 after reports hinted at the possibility of an early start of the companys oil refinery.
Offshore transportation services provider Global Vectra Helicorp soared 20% at Rs 85.95 after the company said it plans a rights issue in December 2008 to fund the expansion plans, including an investment of $65 million to raise fleet size to 29 by March 2009.
Key indices in China, Hong Kong, South Korea and Taiwan were up by 0.57% to 1.86%. However, indices in Japan and Singapore were down by 0.65% to 1.27%.
European markets, which opened after Indian markets, were in red. Key indices in UK, France and Germany were down by between 0.65% to 1.34%.
US stocks fell on Wednesday, 9 April 2008, after United Parcel Service Inc slashed its earnings forecast and oil prices hit a record high above $112 per barrel, darkening the outlook for corporate results. The Dow Jones industrial average was down 49.18 points, or 0.39%, ending the day at 12,527.26. The Standard & Poor's 500 Index was down 11.05 points, or 0.81%, finishing at 1,354.49. The Nasdaq Composite Index was down 26.64 points, or 1.13%, at 2,322.12.
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Investment Idea: YES BANK

This private sector bank has posted extremely robust results for the year ended 31st March 2008 and this has led to expectations now build up around the other private sector banks. And the best part about the results is that it helped pull up the bank stocks on the BSE. Banking stocks which had been mercilessly hammered down over the past few days, were suddenly on every investors buying list and yesterday, almost all the frontline private sector bank stocks figured out in the top gainers of the day. The entire banking index was up by over 3%. If nothing else, we owe it to Yes Bank in helping push away the pall of gloom which was cast all over the bank stocks, in the wake of the “exotic” forex derivative investments!
YoY, for the year ended 31/03/08, the total income earned rose by a whopping 2.13 times to Rs 1665.35 crore. Interest income surged 2.23 times to Rs.1,310.82 crore. And despite the interest expended going up by 2.34 times to Rs.974.11 crore and total expenditure increasing 2.16 times to Rs.1315.27 crore, on the back of the huge revenues earned, the bank managed to more than double its PBT at Rs.350.08 crore. The Bank had a huge tax outgo, it was up 3.7 times at Rs.106.46 crore and yet, its PAT rose by a stunning 2.12 times at Rs.200.02 crore. Its capital adequacy ratio stands at 13.64%.
Regarding its exposure to the forex derivatives market, the bank has clarified that it has no uncovered exposure and has a highly valuable treasury customer base which is consistently meeting all its maturing financial obligations. Of the total derivatives exposure of the bank, 70% exposure is to large clients, 30% to medium sized corporates , spread over 53 clients. The management has also clarified that based on the internal scoring method of the bank, all the clients in the derivatives segment are either A rated or above.
It is also pertinent to note that FIIs have a 46.92% stake in the bank in which Rabobank International BV. Given the fast approaching deadline of 1st April 2009, Yes Bank is clearly one of the hot favourites of the foreign banks.
At the current rate of Rs.167, it surely makes a very good buy for some good long term gains.
Source: sptulsian.com

Intraday Calls for 10th April

Today Indian Stock markets may open with positive and remains same for the day. Today can also be a good day for the markets.

Today's Intraday Picks:

BANK OF INDIA
RPOWER
KS OILS
TATA STEEL
BAJAJ HIND
For levles and targets download the file by CLICK HERE.

Others: HCL Tech, Prithvi Information.
Good Luck

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



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