Kingfisher buying SpiceJet?
Mumbai: Vijay Mallya's Kingfisher Airlines is close to acquiring a controlling stake in another low-cost carrier SpiceJet.The deal will value SpiceJet around $300 million dollars. It is likely to be a cash-and- share swap deal.
Mallya is likely to acquire 26% stake in SpiceJet, and make an open offer for an additional 20% stake. He is also likely to retain Spice as the low-cost carrier of Kingfisher Airlines.If the deal goes through, Mallya, through Kingfisher Airlines, Deccan and Spice, will control 40% marketshare beating Jet (along with Sahara), which has a marketshare of 33%.
It will also give Mallya the position to dominate fares in the marketplace. Currently, because of the low cost airline fares, Kingfisher and Jet are forced to sell tickets below cost.SpiceJet is a fairly well run, lean operation with the smallest loss in the industry.
Experts say it will give Kingfisher the right product in the low cost space. And, of course, access to trained manpower.What may not work too well for the two airlines is the fact that they operate different fleets. Spice flies Boeing while Kingfisher is an Airbus customer. So, there are no clear synergies in operations. Analysts say if the two airlines continue to function separately, it will not pose a big challenge for Mallya.
If the deal does fructify, it could change the aviation landscape in the country and make the airline industry more viable
Source: www. UTVi.com . We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information .
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05 July 2008
Sensex ends 360 pts up as bulls return to the ring: Sify
Sensex ends 360 pts up as bulls return to the ring
Save for a brief while this morning and for a few minutes before noon, the market remained in the positive territory today thanks to some strong buying in blue chip stocks.
Despite high oil prices and hardening interest rates, the market opened on a positive note today. Capital goods, realty and power stocks surged higher on strong buying support. Stocks from other sectors too joined the rally. However, ahead of release of inflation data, the market turned a bit shaky and gave up almost all its gains in late morning trade.
The crucial meeting of the Left parties that had the withdrawal of support to the ruling coalition as a main agenda had a role to play in forcing the investors on to a defensive mood around noon.
However, neither the Left meet nor the surge in inflation (inflation rate rose to 11.63% in the 12 months to June 21, 2008, above the previous week's annual rise of 11.42%) could halt the market which started gaining ground in the positive territory this afternoon. Even as the Left meeting was on, leaders from the Samajwadi Party met the Prime Minister and expressed their support for the Indo-US civilian nuclear deal.
So strong and sustained were the buying enquiries at the blue chip counters that the benchmark BSE index Sensex gained in strength and vaulted to a high of 13,509.74 today.
The BSE barometer, which had tumbled to a low of 13,027.79 in morning trde, ended the day at 13,454 with a thumping gain of 359.89 points or 2.75%. The Nifty, which swung in a range of around 137 points - it hit a low of 3896.40 and a high of 4033.50 today - closed with a gain of 90.25 points or 2.3% at 4016.
Realty stock DLF, which had tumbled sharply yesterday after a heady rise in the previous session, bounced back into the reckoning once again. With a host of other realty stocks too surging higher on sustained buying support, the Realty barometer shot up by 7.8% today.
Capital goods, power, bank and oil stocks also finished on a positive note. While the Capital Goods index ended stronger by 6.79%, the Power and Bankex ended up by 6.1% and 3.08% respectively. The consumer durables barometer, BSE CD, moved up by 3.15%.
Select PSU, auto and IT stocks posted impressive gains. Pharma and metal stocks ended on a subdued note. Thanks to frenzied buying, several stocks from midcap and smallcap segments too advanced to higher levels and signed off on a high note.
Reliance Communications flared up by 12.5% and ended as the top gainer in the Sensex. Jaiprakash Associates closed with a big gain of 10.65%. DLF ended 8.6% up at Rs 414.65.
BHEL notched up a gain of 7.45%. Reliance Infrastructure climbed up 7.25%. Larsen & Toubro jumped 6.55% to Rs 2379.85. HDFC posted a gain of 6.2%. Ranbaxy Laboratories and ICICI Bank moved up by 4.75% and 4.7% respectively.
More @ Sensex ends 360 pts up as bulls return to the ring
Coke to invest $250 m more in India
Mozilla Firefox 3 sets world record
Customs seizes 2 aircraft belonging to RIL
Inflation rate gallops to 11.63 per cent
Direct tax receipts up 39% y/y in June quarter
Punj Lloyd bags GVK Power order
Prakash Industries inks Rs 485-cr deal
Two-thirds of IPO stocks battered
Suzlon to invest Rs 4,000 cr in TN
Greenply to invest Rs 370 cr
Source: http://sify.com/finance. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
Save for a brief while this morning and for a few minutes before noon, the market remained in the positive territory today thanks to some strong buying in blue chip stocks.
Despite high oil prices and hardening interest rates, the market opened on a positive note today. Capital goods, realty and power stocks surged higher on strong buying support. Stocks from other sectors too joined the rally. However, ahead of release of inflation data, the market turned a bit shaky and gave up almost all its gains in late morning trade.
The crucial meeting of the Left parties that had the withdrawal of support to the ruling coalition as a main agenda had a role to play in forcing the investors on to a defensive mood around noon.
However, neither the Left meet nor the surge in inflation (inflation rate rose to 11.63% in the 12 months to June 21, 2008, above the previous week's annual rise of 11.42%) could halt the market which started gaining ground in the positive territory this afternoon. Even as the Left meeting was on, leaders from the Samajwadi Party met the Prime Minister and expressed their support for the Indo-US civilian nuclear deal.
So strong and sustained were the buying enquiries at the blue chip counters that the benchmark BSE index Sensex gained in strength and vaulted to a high of 13,509.74 today.
The BSE barometer, which had tumbled to a low of 13,027.79 in morning trde, ended the day at 13,454 with a thumping gain of 359.89 points or 2.75%. The Nifty, which swung in a range of around 137 points - it hit a low of 3896.40 and a high of 4033.50 today - closed with a gain of 90.25 points or 2.3% at 4016.
Realty stock DLF, which had tumbled sharply yesterday after a heady rise in the previous session, bounced back into the reckoning once again. With a host of other realty stocks too surging higher on sustained buying support, the Realty barometer shot up by 7.8% today.
Capital goods, power, bank and oil stocks also finished on a positive note. While the Capital Goods index ended stronger by 6.79%, the Power and Bankex ended up by 6.1% and 3.08% respectively. The consumer durables barometer, BSE CD, moved up by 3.15%.
Select PSU, auto and IT stocks posted impressive gains. Pharma and metal stocks ended on a subdued note. Thanks to frenzied buying, several stocks from midcap and smallcap segments too advanced to higher levels and signed off on a high note.
Reliance Communications flared up by 12.5% and ended as the top gainer in the Sensex. Jaiprakash Associates closed with a big gain of 10.65%. DLF ended 8.6% up at Rs 414.65.
BHEL notched up a gain of 7.45%. Reliance Infrastructure climbed up 7.25%. Larsen & Toubro jumped 6.55% to Rs 2379.85. HDFC posted a gain of 6.2%. Ranbaxy Laboratories and ICICI Bank moved up by 4.75% and 4.7% respectively.
More @ Sensex ends 360 pts up as bulls return to the ring
Coke to invest $250 m more in India
Mozilla Firefox 3 sets world record
Customs seizes 2 aircraft belonging to RIL
Inflation rate gallops to 11.63 per cent
Direct tax receipts up 39% y/y in June quarter
Punj Lloyd bags GVK Power order
Prakash Industries inks Rs 485-cr deal
Two-thirds of IPO stocks battered
Suzlon to invest Rs 4,000 cr in TN
Greenply to invest Rs 370 cr
Source: http://sify.com/finance. We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information
02 July 2008
Sensex loses 500 pts, ends below 13k mark
Sensex loses 500 pts, ends below 13k mark
After losing nearly one thousand points in just two sessions, the Sensex had another disastrous outing today as weak global markets, political uncertainties and other negative factors such as high crude oil prices, inflation and hardening interest rates sent prices of several front line stocks crashing to new 52-week lows.
The BSE barometer, which had touched a historic high of 21,206.77 in intra-day trades on 10 January 2008, plunged to a low of 12,904.09 in late afternoon trade today. It finally settled at 12,961.88 with a massive loss of 499.92 points or 3.71%. The Nifty, which dropped down to 3878.20, ended with a loss of 143.80 points or 3.56% at 3896.75.
Realty stocks came down with a thud once again. Mirroring heavy selling in these stocks, the BSE Realty index tumbled by 7.21% today. The Bankex fell 5.62% and the Metal index lost 5.4%.
The Auto, CD and Power indices declined by 4.91%, 4.28% and 4.24% respectively. BSE Oil & Gas, Teck, CG and PSU indices lost 3% - 4%. The IT index eased by 1.74% while the Healthcare and FMCG indices slipped by 2.17% and 2.83% respectively.
NTPC, the lone gainer from the Sensex, moved up by a little over a per cent to Rs 153.20. From the Nifty pack, besides NTPC, HCL Technologies (2.85%) and Tata Communications (2.05%) closed on a positive note today.
Reliance Infrastructure and Reliance Communications went down by around 10.5% to Rs 688 and Rs 392 respectively. Mahindra & Mahindra lost 9.25%. Maruti Suzuki eased by over 8%.
More Info @ Sensex loses 500 pts, ends below 13k mark
Source: www.SIfy.com/finance
After losing nearly one thousand points in just two sessions, the Sensex had another disastrous outing today as weak global markets, political uncertainties and other negative factors such as high crude oil prices, inflation and hardening interest rates sent prices of several front line stocks crashing to new 52-week lows.
The BSE barometer, which had touched a historic high of 21,206.77 in intra-day trades on 10 January 2008, plunged to a low of 12,904.09 in late afternoon trade today. It finally settled at 12,961.88 with a massive loss of 499.92 points or 3.71%. The Nifty, which dropped down to 3878.20, ended with a loss of 143.80 points or 3.56% at 3896.75.
Realty stocks came down with a thud once again. Mirroring heavy selling in these stocks, the BSE Realty index tumbled by 7.21% today. The Bankex fell 5.62% and the Metal index lost 5.4%.
The Auto, CD and Power indices declined by 4.91%, 4.28% and 4.24% respectively. BSE Oil & Gas, Teck, CG and PSU indices lost 3% - 4%. The IT index eased by 1.74% while the Healthcare and FMCG indices slipped by 2.17% and 2.83% respectively.
NTPC, the lone gainer from the Sensex, moved up by a little over a per cent to Rs 153.20. From the Nifty pack, besides NTPC, HCL Technologies (2.85%) and Tata Communications (2.05%) closed on a positive note today.
Reliance Infrastructure and Reliance Communications went down by around 10.5% to Rs 688 and Rs 392 respectively. Mahindra & Mahindra lost 9.25%. Maruti Suzuki eased by over 8%.
More Info @ Sensex loses 500 pts, ends below 13k mark
Source: www.SIfy.com/finance
Labels:
ends below 13k mark,
Sensex loses 500 pts
BSE announces circuit breakers for July-Sept quarter
BSE announces circuit breakers for July-Sept quarter
The BSE on a quarterly basis implements the index based market wide circuit breaker system. The system is applicable at three stages of the index movement either way i.e. at 10%, 15% and 20%
The BSE on a quarterly basis implements the index based market wide circuit breaker system. The system is applicable at three stages of the index movement either way i.e. at 10%, 15% and 20%. This circuit breaker brings a trading halt in all equity and equity derivative markets nationwide.
The market wide circuit breakers would be triggered by movement of either SENSEX or the NSE S&P CNX Nifty whichever is breached earlier.
In case of a 10% movement of either of these indices, there would be a 1-hour market halt if the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but before 2.30 p.m. there will be a trading halt for ½ hour. In case the movement takes place at or after 2.30 p.m. there will be no trading halt at the 10% level and the market will continue trading.
In case of a 15% movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1 p.m. but before 2 p.m., there will be a 1 hour halt. If the 15% trigger is reached on or after 2 p.m. the trading will halt for the remainder of the day.
In case of a 20% movement of the index, the trading will be halted for the remainder of the day.
The percentages are calculated on the closing index value of the quarter. These percentages are translated into absolute points of index variations (rounded off to the nearest 25 points in case of SENSEX). At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter.
On June 30, 2008, the last trading day of the quarter, SENSEX closed at 13,461.60 points. The absolute points of SENSEX variation (over the previous day’s closing SENSEX) which would trigger market wide circuit breaker for any day in the quarter between 1st July 2008 and 30th September 2008 would be as under:
Percentage (+/-) Equivalent Points (+/-)
0.10 1350
0.15 2025
0.20 2700
Source: www.Indiainfoline.com
The BSE on a quarterly basis implements the index based market wide circuit breaker system. The system is applicable at three stages of the index movement either way i.e. at 10%, 15% and 20%
The BSE on a quarterly basis implements the index based market wide circuit breaker system. The system is applicable at three stages of the index movement either way i.e. at 10%, 15% and 20%. This circuit breaker brings a trading halt in all equity and equity derivative markets nationwide.
The market wide circuit breakers would be triggered by movement of either SENSEX or the NSE S&P CNX Nifty whichever is breached earlier.
In case of a 10% movement of either of these indices, there would be a 1-hour market halt if the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but before 2.30 p.m. there will be a trading halt for ½ hour. In case the movement takes place at or after 2.30 p.m. there will be no trading halt at the 10% level and the market will continue trading.
In case of a 15% movement of either index, there will be a 2-hour market halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1 p.m. but before 2 p.m., there will be a 1 hour halt. If the 15% trigger is reached on or after 2 p.m. the trading will halt for the remainder of the day.
In case of a 20% movement of the index, the trading will be halted for the remainder of the day.
The percentages are calculated on the closing index value of the quarter. These percentages are translated into absolute points of index variations (rounded off to the nearest 25 points in case of SENSEX). At the end of each quarter, these absolute points of index variations are revised and made applicable for the next quarter.
On June 30, 2008, the last trading day of the quarter, SENSEX closed at 13,461.60 points. The absolute points of SENSEX variation (over the previous day’s closing SENSEX) which would trigger market wide circuit breaker for any day in the quarter between 1st July 2008 and 30th September 2008 would be as under:
Percentage (+/-) Equivalent Points (+/-)
0.10 1350
0.15 2025
0.20 2700
Source: www.Indiainfoline.com
30 June 2008
Apr-May fiscal deficit at Rs 73,201cr : UTVi
Apr-May fiscal deficit at Rs 73,201cr
Fiscal deficit between April and May moved up to Rs 73,201 crore or 54.9% of the annual target. The deficit figure has already crossed the halfway stage for the entire year because of increased social spending.
The government has set a fiscal deficit target of Rs 1,33,000 lakh crore or 2.5% of gross domestic product for the 2008/09 fiscal year - lower than 2.8% in the previous year.
Fiscal deficit is the difference between the government's total expenditure and total receipts. The gap is financed by borrowings from the Reserve Bank of India and the markets
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Current a/c deficit narrows in Jan-March
Mumbai: The country's current account deficit narrowed to $1.04 billion in the January-March quarter from a revised deficit of $5.12 billion in the December quarter, the Reserve Bank of India said on Monday.
The deficit for the financial year ended March 2008 widened to $17.4 billion, or 1.5% of gross domestic product, from $9.8 billion, or 1.1 percent of GDP, in FY07.
The Reserve Bank of India said the balance of payments surplus in the March quarter fell to $24.99 billion from a surplus of $26.74 billion in the December quarter.
The trade deficit on a balance of payments basis narrowed to $23.8 billion in the March quarter from $25.1 billion in October-December.Net invisible receipts, which includes exports of software services and remittances by overseas Indians, were $22.8 billion in the quarter, up from $20 billion in the previous quarter.
"The current account deficit for January-March quarter suggests that the usual seasonal increase in invisibles has not kept pace with the rise in trade deficit this year, largely due to rising oil import bill," said Sonal Varma, an economist at Lehman Brothers.
India imports about 70% of its oil needs, and oil is the country's largest import.
Varma said oil prices and weakening demand for exports would widen India's trade deficit further, forecasting the current account deficit to widen to 3% of gross domestic product in FY09 from 1.5% in FY08.
Earlier this month, Arvind Virmani, the finance ministry's chief economic advisor, said there was only a very low probability the current account deficit would exceed 2.5 percent of GDP over the next four years."India should still get sufficient capital inflows to cover the current account deficit, but the overall balance of payments surplus is likely to moderate to $18 billion in FY09 from $92.2 billion," Varma said.
A current account deficit indicates the economy is drawing upon the savings of other economies to fund its investment.
Source: UTVi.com
Fiscal deficit between April and May moved up to Rs 73,201 crore or 54.9% of the annual target. The deficit figure has already crossed the halfway stage for the entire year because of increased social spending.
The government has set a fiscal deficit target of Rs 1,33,000 lakh crore or 2.5% of gross domestic product for the 2008/09 fiscal year - lower than 2.8% in the previous year.
Fiscal deficit is the difference between the government's total expenditure and total receipts. The gap is financed by borrowings from the Reserve Bank of India and the markets
--------------------
Current a/c deficit narrows in Jan-March
Mumbai: The country's current account deficit narrowed to $1.04 billion in the January-March quarter from a revised deficit of $5.12 billion in the December quarter, the Reserve Bank of India said on Monday.
The deficit for the financial year ended March 2008 widened to $17.4 billion, or 1.5% of gross domestic product, from $9.8 billion, or 1.1 percent of GDP, in FY07.
The Reserve Bank of India said the balance of payments surplus
The trade deficit on a balance of payments basis narrowed to $23.8 billion in the March quarter from $25.1 billion in October-December.Net invisible receipts, which includes exports of software services and remittances by overseas Indians, were $22.8 billion in the quarter, up from $20 billion in the previous quarter.
"The current account deficit for January-March quarter suggests that the usual seasonal increase in invisibles has not kept pace with the rise in trade deficit this year, largely due to rising oil import bill," said Sonal Varma, an economist at Lehman Brothers.
India imports about 70% of its oil needs, and oil is the country's largest import.
Varma said oil prices and weakening demand for exports would widen India's trade deficit further, forecasting the current account deficit to widen to 3% of gross domestic product in FY09 from 1.5% in FY08.
Earlier this month, Arvind Virmani, the finance ministry's chief economic advisor, said there was only a very low probability the current account deficit would exceed 2.5 percent of GDP over the next four years."India should still get sufficient capital inflows to cover the current account deficit, but the overall balance of payments surplus is likely to moderate to $18 billion in FY09 from $92.2 billion," Varma said.
A current account deficit indicates the economy is drawing upon the savings of other economies to fund its investment.
Source: UTVi.com
Labels:
201cr,
Apr-May fiscal deficit at Rs 73
VC, PE Updates
VCCircle.com
Exclusive: TravelGuru Sells Majority Stake To Expedia
“Private Market Valuations May Correct Over 3-6 Months”: KP Balaraj
Hinduja Foundries Gets $20M From Farallon’s PE Fund Amansha
Nitesh Shetty’s Serve & Volley To Secure Large Funding For OOH Biz
Subhiksha Acquires “Obscure” Listed Firm To Get Itself Listed
Iceland’s Kaupthing To List $80-M India Infrastructure Fund On AIM
Citi BPO & Infra Outsourcing Arm On Block, IBM Lead Contender: Report
Lufthansa-GMR JV For MRO Biz Grounded; GMR In Search Of Partners
Deutsche Bank Shifts Amrit Singh From London As India M&A Head
Temptation Foods In Hostile Bid To Acquire Basmati King Kohinoor
Sun Pharma Preparing For A Hostile Bid For Israel’s Taro
Religare Wants To Raise $250 Million; Another Acquisition In The Offing?
Axis Bank Invests Rs 250 Crore For A Minor Stake In India’s First Private Hill Station
UK’s Ashmore Launches $3 Billion Emerging Markets Fund
--------------------------------------
IndiaPE.com
IVCF launches three new funds
AT&T may buy Maxis' 74 pct in India's Aircel
Canaan to invest more in India
Lehman, Sachs, ICICI to pick 20% in OOH ad co
PE investments take a beating
PE firms review plans after Ranbaxy deal
PE Investment in realty seen at over $13 b
Digicable acquires 51% in CableComm
Subhiksha to acquire Chennai based company
Unitech to raise $1 bln from PE funds
Citi looking to sell Indian BPO and tech units
Unitech to offload 26% in telecom arm
PE firms seen taking fund-of-funds route
PE firms line up $2 bn for maritime logistics
Star, Balaji to part ways soon
Source: Above sites.
Exclusive: TravelGuru Sells Majority Stake To Expedia
“Private Market Valuations May Correct Over 3-6 Months”: KP Balaraj
Hinduja Foundries Gets $20M From Farallon’s PE Fund Amansha
Nitesh Shetty’s Serve & Volley To Secure Large Funding For OOH Biz
Subhiksha Acquires “Obscure” Listed Firm To Get Itself Listed
Iceland’s Kaupthing To List $80-M India Infrastructure Fund On AIM
Citi BPO & Infra Outsourcing Arm On Block, IBM Lead Contender: Report
Lufthansa-GMR JV For MRO Biz Grounded; GMR In Search Of Partners
Deutsche Bank Shifts Amrit Singh From London As India M&A Head
Temptation Foods In Hostile Bid To Acquire Basmati King Kohinoor
Sun Pharma Preparing For A Hostile Bid For Israel’s Taro
Religare Wants To Raise $250 Million; Another Acquisition In The Offing?
Axis Bank Invests Rs 250 Crore For A Minor Stake In India’s First Private Hill Station
UK’s Ashmore Launches $3 Billion Emerging Markets Fund
--------------------------------------
IndiaPE.com
IVCF launches three new funds
AT&T may buy Maxis' 74 pct in India's Aircel
Canaan to invest more in India
Lehman, Sachs, ICICI to pick 20% in OOH ad co
PE investments take a beating
PE firms review plans after Ranbaxy deal
PE Investment in realty seen at over $13 b
Digicable acquires 51% in CableComm
Subhiksha to acquire Chennai based company
Unitech to raise $1 bln from PE funds
Citi looking to sell Indian BPO and tech units
Unitech to offload 26% in telecom arm
PE firms seen taking fund-of-funds route
PE firms line up $2 bn for maritime logistics
Star, Balaji to part ways soon
Source: Above sites.
Sensex plummets 341 points
The market witnessed the second crash today after witnessing a fall of 620 points on Friday. Following a steep fall in global stock markets led by fears of a hike in crude oil prices, the Sensex resumed on a bearish note at 13,791, 11 points below its last close of 13,802. By mid-morning trades, the Sensex shed around 400 points on across-the-board selling pressure. The market started to deteriorate further towards the close, as fresh bout of selling saw the Sensex plummet over 350 points and touch the day's low of 13,406.
The Sensex dropped 2.47% and was down 341 points for the day at 13,462. The Nifty shed 96 points at 4,041.The market breadth was heavily tilted in favour of the losers as 2,103 stocks declined, while only 546 stocks advanced and 42 stocks remained unchanged on the BSE.
All the sectoral indices were battered on the BSE except information technology (IT), fast moving consumer goods (FMCG) and health care (HC) stocks. The BSE Realty index lost heavily and dropped 6.81% followed by the BSE consumer durables (CD) index (down 4.71%), the BSE Oil & Gas index (down 4.03%), the BSE Power index (down 3.55%), the BSE capital goods (CG) index (down 3.46%) and the BSE Bankex index (down 3.43%).
The second-rung benchmark indices the BSE mid-cap index and the BSE small-cap index tanked over 3% each.Only 8 stocks from 30 Sensex stocks managed to end in the green. Among the major losers Reliance Infrastructure tanked by 11.47% at Rs751.05. ACC slumped by 9.80% at Rs512, Ambuja Cement shed 6.83% at Rs73.50, Grasim Industries crumbled by 6.66% at Rs1,815. DLF dropped 6.60% at Rs389, Reliance Communications slipped by 6.58% at Rs433.10, Tata Motors plunged 5.03% at Rs416 and Mahindra & Mahindra fell by 5% at Rs477. Other front-line stocks also declined by over the range of 0.50-4% each.
--------------------------
Other Deadpresident blog stories:
Post Session Commentary - June 30 2008
Sensex down 960 points in two trading sessions
GSPL / Unitech / Idea Cellular
Hotel Leela / Axis Bank / Mindtree
Unitech, Bharat Electronics, GSPL, Reliance Indust...
SBI increases home loan rates
Asian Markets Ends June On A Cautious Note
Source: Deadpresident blog.
29 June 2008
Sensex seen heading to 12k level
Sensex seen heading to 12k level
Having lost over one-third of its value in less than six months, stock market seems to have more pain in store for investors with experts seeing the benchmark Sensex heading back towards 12,000 level in the next few months. The continuing crude oil rally and unabated selling by FIIs are unlikely to let the market see a near-future uptrend, while domestic factors like inflationary pressures and rising interest rates are also playing spoilsport, analysts believe.
International brokerage and equity research major CLSA analyst and renowned portfolio manager Christopher Wood has told his clients in the latest June edition of his famed "Greed and Fear" report that the Senses dropping back to a 12,000 level could not be ruled out in the wake of surging oil prices and continuing selling activities by foreign investors. "Certainly, a re-test of the 12,000 level on the Sensex cannot be ruled out in these circumstances.
And that will be accompanied by a further weakening in the rupee," Wood said. Striking a similar note, research and analytics firm Evalueserve's Chairman Alok Aggarwal wrote in a whitepaper that Sensex could drop to 12,000 level in the near term if the present financial crisis does not subside, crude oil continue to trade upward and FII outflow continue unabated.
"We now believe that the Sensex could drop to 12,000 in the near term, the Rupee could depreciate by another 5-6 per cent against the US dollar, and the GDP growth could slow down to approximately six per cent by the fourth quarter of this fiscal year," Aggarwal said. Agreeing to the probability of Sensex falling to 12,000 level, domestic brokerage firm Asika Stock Brokers' Research Head Paras Bodhra said corporate earnings could also be a major driving factor in the coming months.
The Sensex can fall to 12,000 level during the next 3-6 months, but it depends on the corporate results season, Bodhra said, adding if the earnings turn out too bad then the index may drop to this level. "It is quite a possibility, as macro problems may trickle down to micro levels, leading to a deterioration of fundamentals, he noted. These projections are in sharp contrast to the Sensex seen heading towards 25,000-point mark till a few months ago when bulls were in the driving seat.
If the bears keep extending their reign on the bourses and pull back the barometer to 12,000-level, it would wipe off all the gains recorded in about past two years ago. The benchmark index Sensex had touched the 12,000 level for the first time in September 2006. However, amid a continuing bearish phase continuing for about six months now, the Sensex has fallen over 7,000 points from its all-time peak of 21,206.77 points, scaled on January 10.
It settled at 13,802.22 points on Friday after a 620-point fall amid concerns over surging crude oil prices and inflation. CLSA's Wood noted in his 'Greed and Fear' report that a further rise in the oil price would continue to be particularly bad news for India, despite RBI's increasingly pre-emptive monetary tightening stance. The RBI last week announced hike in the repo rate and the cash reserve ratio (CRR) by 50 basis points each to 8.5 per cent and 8.75 per cent, respectively. These steps are expected to suck out an estimated Rs 15,000-20,000 crore liquidity from the banking system and have been seen as a contributor to the recent fall in overall turnover in the equity market.
Some analysts, however, expect a drop in the Sensex to the psychological 12,000-level to trigger a strong buying opportunity for foreign investors. "Any such decline to that level is viewed as a massive long-term buying opportunity in India and the rest of Asia," Wood said. However, due to selling by foreign investors, a clear risk of a further move down to the 12,000 level on the Sensex still remains, given the parabolic oil risk, he added. CLSA noted that a further rise in oil can only be bearish for the Asia-Pacific region, since there would be growing focus on the deteriorating terms of trade for Asian economies and the resulting need for higher interest rates to fend off potentially destabilising currency depreciation.
FIIs have, so far, sold a net $ 6.2 billion worth of Indian stocks this year, against a net purchase of $ 51 billion between the beginning of 2003 and the end of 2007. "There is then clearly every risk that foreigners sell more," CLSA said. It, however, ruled out that the Indian stock market would underperform dramatically from the current levels as RBI has become more proactive than some other Asian central banks which may have to play catch up.
Source: ET
Having lost over one-third of its value in less than six months, stock market seems to have more pain in store for investors with experts seeing the benchmark Sensex heading back towards 12,000 level in the next few months. The continuing crude oil rally and unabated selling by FIIs are unlikely to let the market see a near-future uptrend, while domestic factors like inflationary pressures and rising interest rates are also playing spoilsport, analysts believe.
International brokerage and equity research major CLSA analyst and renowned portfolio manager Christopher Wood has told his clients in the latest June edition of his famed "Greed and Fear" report that the Senses dropping back to a 12,000 level could not be ruled out in the wake of surging oil prices and continuing selling activities by foreign investors. "Certainly, a re-test of the 12,000 level on the Sensex cannot be ruled out in these circumstances.
And that will be accompanied by a further weakening in the rupee," Wood said. Striking a similar note, research and analytics firm Evalueserve's Chairman Alok Aggarwal wrote in a whitepaper that Sensex could drop to 12,000 level in the near term if the present financial crisis does not subside, crude oil continue to trade upward and FII outflow continue unabated.
"We now believe that the Sensex could drop to 12,000 in the near term, the Rupee could depreciate by another 5-6 per cent against the US dollar, and the GDP growth could slow down to approximately six per cent by the fourth quarter of this fiscal year," Aggarwal said. Agreeing to the probability of Sensex falling to 12,000 level, domestic brokerage firm Asika Stock Brokers' Research Head Paras Bodhra said corporate earnings could also be a major driving factor in the coming months.
The Sensex can fall to 12,000 level during the next 3-6 months, but it depends on the corporate results season, Bodhra said, adding if the earnings turn out too bad then the index may drop to this level. "It is quite a possibility, as macro problems may trickle down to micro levels, leading to a deterioration of fundamentals, he noted. These projections are in sharp contrast to the Sensex seen heading towards 25,000-point mark till a few months ago when bulls were in the driving seat.
If the bears keep extending their reign on the bourses and pull back the barometer to 12,000-level, it would wipe off all the gains recorded in about past two years ago. The benchmark index Sensex had touched the 12,000 level for the first time in September 2006. However, amid a continuing bearish phase continuing for about six months now, the Sensex has fallen over 7,000 points from its all-time peak of 21,206.77 points, scaled on January 10.
It settled at 13,802.22 points on Friday after a 620-point fall amid concerns over surging crude oil prices and inflation. CLSA's Wood noted in his 'Greed and Fear' report that a further rise in the oil price would continue to be particularly bad news for India, despite RBI's increasingly pre-emptive monetary tightening stance. The RBI last week announced hike in the repo rate and the cash reserve ratio (CRR) by 50 basis points each to 8.5 per cent and 8.75 per cent, respectively. These steps are expected to suck out an estimated Rs 15,000-20,000 crore liquidity from the banking system and have been seen as a contributor to the recent fall in overall turnover in the equity market.
Some analysts, however, expect a drop in the Sensex to the psychological 12,000-level to trigger a strong buying opportunity for foreign investors. "Any such decline to that level is viewed as a massive long-term buying opportunity in India and the rest of Asia," Wood said. However, due to selling by foreign investors, a clear risk of a further move down to the 12,000 level on the Sensex still remains, given the parabolic oil risk, he added. CLSA noted that a further rise in oil can only be bearish for the Asia-Pacific region, since there would be growing focus on the deteriorating terms of trade for Asian economies and the resulting need for higher interest rates to fend off potentially destabilising currency depreciation.
FIIs have, so far, sold a net $ 6.2 billion worth of Indian stocks this year, against a net purchase of $ 51 billion between the beginning of 2003 and the end of 2007. "There is then clearly every risk that foreigners sell more," CLSA said. It, however, ruled out that the Indian stock market would underperform dramatically from the current levels as RBI has become more proactive than some other Asian central banks which may have to play catch up.
Source: ET
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Sensex seen heading to 12k level
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