Sensex ends FY10 with 80% gains; FIIs pump in $20 bn

Sensex ends FY10 with 80% gains; FIIs pump in $20 bn

It was an outstanding fiscal year - 2009-10 - for the Indian equity markets; the Sensex rallied 80% and Nifty surged 74%. FIIs came back in droves, pumping in close to USD 23 billion in India's cash market. India, in fact, was the second best performing equity market globally, next only to Russia in this fiscal.

Two big events that aided this rise - firstly a recovery in global markets on the back of numerous stimulus packages and secondly, a thumping victory for the Congress party in the Lok Sabha elections in May 2009.

Sector report

On the sectoral front, the BSE Metal Index was the star performer on the back of rally in prices of international commodities. Respective index shot up 210%. Jindal Steel & Power surged 256% and Hindalco was up 254%. Tata Steel gained 212% and SAIL rose 150%.

The Auto Index rallied 150%, as Tata Motors surged 310%. M&M was up 190%. Hero Honda and Maruti were up 85% each.

The BSE Bankex soared 140%, as Axis Bank, ICICI Bank and PNB surged 144-190%.

In the technology space, HCL Tech went up 263%, TCS up 200%, Wipro up 192% and Infosys up 105%. The IT Index was up 130%.

The BSE Oil & Gas and FMCG indices were the least performers in the year 2009-10. Respective indices were up 45% and 41%.

Stock performances

Among largecaps, IDFC was up 200%, Ranbaxy up 190%, Jaiprakash Associates up 168% and L&T up 147%.

Idea Cellular gained 34%. BPCL and ONGC were up 40%. RIL went up 44%. HUL rose just 1% and NTPC went up 13%.

However, Reliance Communications declined 4% and Bharti Airtel was down 1%.

Among the broader indices, the CNX Midcap Index was up 128% and BSE Small Cap Index up 162%.

In the midcap space, Jindal Saw shot up 510%. IndusInd Bank, JSW Steel, Orbit Corporation, Greaves Cotton and Yes Bank were up 410-458%. Gujarat NRE Coke gained 355%.

In the smallcap space, Fame India surged 740%. Unity Infra, Supreme Infra and Zydus Wellness rallied 555-675%.

Currencies and commodities

The US Dollar Index was down 5% while the Reuters CRB Commodity Index was up 21%.

Stock market gives investors 80% return in FY'10; best in 5 yrs

NEW DELHI: Investors have reaped a five- year best return of over 80 per cent from the stock markets in fiscal 2009-10, when judged by the performance of the BSE benchmark index Sensex.

Analysts, however, said that the momentum could be slowed in the coming fiscal as investors are expecting a lot from the market now, which may not come in until there is a correction.

The bulls were back with a bang in fiscal FY'10, offsetting the losses incurred by investors in the previous financial year.

The returns from investments in this fiscal have soared to 80.5 per cent. The Bombay Stock Exchange benchmark Sensex settled at 17,527.77 points on March 31, 2010, from 9,708.5 points at the end of March 31, 2009. The Sensex had jumped to its two-year high level of 17,793 points on March 29 driven by strengthening of the rupee against the US dollar.

During FY'09, the 30-share index had plunged to 9,708.50 points from 15,644.44 points, losing nearly 38 per cent.

"The market has gained quite a lot and will continue to remain volatile in the coming days. Monsoon will be a deciding factor for the overall growth of the economy and that would in turn affect the capital market," Taurus Mutual Fund Managing Director RK Gupta said.

During fiscal 2007-08, the market provided a return of 20 per cent, while the same for 2006-07 and 2005-06 was 16 per cent and 74 per cent, respectively.

The fiscal has been a good one for the broader market with a host of new companies coming out with public offerings and three state run companies -- NTPC, REC and NMDC -- coming out with follow-on-offers.

Among the biggest gainers in the Sensex companies Tata Motors surged over 300 per cent, followed by Hindalco 240 per cent, Tata Steel 210 per cent, TCS 200 per cent and Wipro 190 per cent in financial year ending March 31, 2010.

Other major gainers include ICICI Bank 180 per cent, M&M 175 per cent and the index heavy-weight Reliance Industries 44 per cent.

"Returns have been widespread for the market but the coming financial year will not be too rosy. We are cautiously bullish on the market as a lot of expectations have been built up," SMC Global Vice-President Rajesh Jain said.

Analysts said at this juncture a correction is imminent in the market and the Sensex could trail the 20,000 level by the end of next fiscal (2010-11).

"FIIs may withdraw money if the rupee strengthens at this pace. It will pour in money again after the rupee comes back to the 47-a-dollar mark," Gupta said. The Indian rupee is currently hovering around the 44.97-a-dollar mark, at nearly 19-month high level.

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Emerging market currencies show cracks



Src: Moneycontrol, ET

Reliance to tighten grip on world fuel markets

Reliance to tighten grip on world fuel markets


NEW DELHI/SINGAPORE: India's top privately run refiner Reliance is expected to raise crude oil imports by about 22 percent this year as it ramps up production at its giant complex, further stamping its mark on world markets.

To maximise profit margins with its sophisticated refining capability, Reliance Industries is also set to limit African crude imports this year in favour of Middle East grades, if light crude prices continue to strengthen against heavy-sour grades, traders and analysts said.

"I expect Reliance refineries to run at full steam, even if in between there is a small shutdown, they can easily run at about 65 million tonnes," said a trader familiar with refining operations. Reliance declined comment on traders' estimates.

This means that the company's two refineries -- the largest facility in the world -- will run above their full combined capacity of 1.24 million barrels per day (bpd), higher than last year when its second plant began operating at full rate in the second half.

After the world first saw increasing flows from Reliance in the summer of 2008, with the start of its new 580,000 barrel-per-day (bpd) plant, this year will see the full blast of exports of high-value diesel and gasoline made from a diverse slate of the cheapest available crudes.

This will put pressure on weak Western refineries and arbitrage traders at a time oil demand is just starting to pick up, but is still in defensive mode, analysts said.

Also Read

→ Buy Reliance at 1050 with a stp loss of 1020: Sandeep Wagle

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"It's a powerful refinery, and if they get the right logistics, they can probably penetrate Western markets, gain market share and push some out of the market entirely," said John Vautrain, senior vice president of Purvin & Gertz Inc.

DIVERSITY OF CRUDE

The refiner's 2009 crude shipments from Africa including Egypt and Sudan rose more than fivefold to over 200,000 bpd, making the continent its No. 2 supplier, overtaking Latin America. This is in line with a 74 percent jump in total imports.

It bought crudes as varied as Cameroon's Lokele, Chad's Doba, Venezuela's Corocoro, and China's Penglai, while resuming Iraqi crude imports that it shunned in 2006.

Reliance for the first time imported Gimboa crude from Angola, which positioned itself as the fourth-biggest supplier, surpassing Venezuela. It also took crude from Gabon, Ivory Coast, Congo, Colombia, Ecuador, Syria and Yemen into its roaster.

Though Middle East crude remains Reliance's main staple, OPEC supply cuts in end-2008 -- around the time the refiner started its new plant -- prompted it to turn to African crude to make up for the gap when Gulf grades became costlier last year.

This was made possible after the Brent-Dubai price spread, an approximation of the premium at which Atlantic basin light-sweet crude trades to Gulf heavy-sour grades, reversed into steep discounts three times last year, making some West African crudes cheaper, traders said.

The structure has returned to normal this year. The front-month Brent/Dubai Exchange of Futures for Swaps (EFS) for May rose to $2.50 a barrel on March 18, the highest since OPEC producers began record supply curbs.

More @ http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/Reliance-to-tighten-grip-on-world-fuel-markets/articleshow/5746150.cms


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Indian shares could rise further in Q1 of FY-11: Poll

Check out cos that gave high dividend in last 6 years

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RIL-RNRL case: A relook at arguments in the fight for gas





Src: ET and Moneycontrol

Morning calls

Top 5 picks I Mid term picks

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Heard on the street

Buying by domestic funds boosts Tilaknagar
Shares of Tilaknagar Industries, a mid-sized liquor brewer, has rallied smartly amid major fund-based buying, even as its promoters have been reducing their stake in the company over the past few weeks. Market sources attributed the current frenzy in the counter largely to purchases by domestic mutual funds looking to boost their net asset values by the end of this financial year. The promoters — Dahanukars — have sold a sizeable 12% stake through many deals transacted in BSE’s bulk deal segment between March 8 and 29. They sold a total of 37.1 lakh shares in different lots at different prices for Rs 44 crore during the period. Of these, 15 lakh shares were picked up by Citigroup Global Markets and another 7.5 lakh by ABN Amro Bank, according to disclosures filed with the exchange. The Dhahanukars owned 74% in Tilaknagar Industries as on December 31, ’09. The stock has risen 20% over the past one month, before closing flat at Rs 123 on Tuesday.

BGR Energy on institutions’ radar
Institutional investors have been buying shares of power equipment manufacturer BGR Energy Systems on the hope that the company will do well on the back of increased government spending in the power sector, unique business positioning and strong order book. According to institutional dealers, ‘Reliable Mutual Fund’ and ‘Cutie Eye MF’ have been accumulating shares of BGR Energy Systems in large numbers over the past few weeks. The operator group — led by the Rar(e)ing bull — has also been buying shares of BGR Energy at every opportunity. On BSE, the shares ended 1.2% higher at Rs 515 on Tuesday.

Gail falls as a foreign investor cuts exposure
Shares of Gail India drifted lower in heavy trade on Tuesday, closing at Rs 401.55. Dealers tracking the counter say a foreign institutional investor (FII) has been cutting exposure to the stock in the past couple of trading sessions. This fund is said to have offloaded 10 lakh shares on Monday and another 7 lakh shares on Tuesday. Offers for sizeable blocks of the stock were doing the rounds on Tuesday too. Speculation is that the fund is looking to sell 30 lakh shares in all, of which 17 lakh have already been placed. Till buyers emerge for the last tranche, the stock could remain subdued, say dealers.

(Contributed by Vijay Gurav & Shailesh Menon)

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Daily News Roundup - March 31 2010

No Big Bang here!

Shoppers Stop

Container Corporation

DLF

GSPL

Pratibha Industries

Src: ET and DP blog