India's Sensitive Index fell, posting its biggest drop in two weeks, after Citigroup Inc. said it will increase writedowns, stoking concern U.S. subprime mortgage losses would further weaken the world's biggest economy.
ICICI Bank Ltd. and Reliance Industries Ltd. led the drop.
``The subprime losses are snowballing into something bigger,'' said Amandeep Chopra, who helps manage the equivalent of $1.1 billion of stocks at UTI Asset Management in Mumbai. ``The disappearance of wealth in the U.S. will impact the liquidity-driven rally seen in our market.''
The Bombay Stock Exchange's Sensex fell 385.45, or 1.9 percent, to 19,590.78. The index had its biggest decline since Oct. 19. The S&P/CNX Nifty Index on the National Stock Exchange dropped 85.10, or 1.4 percent, to 5,847.30. Nifty futures for November delivery declined 1.6 percent to 5,861.
Japan's Nikkei 225 Stock Average slid 1.5 percent while Hong Kong's Hang Seng Index slumped 5 percent. All but two Asian markets declined today.
Citigroup said it will take an additional $8 billion to $11 billion in writedowns on mortgage-related securities after its subprime investments slumped. The lender said yesterday Chief Executive Officer and Chairman Charles Prince resigned after $6.5 billion of writedowns and losses from credit markets.
Merrill Lynch & Co. shares fell on Nov. 2 by the most in six years after Deutsche Bank AG analysts said the world's No. 1 brokerage may write down an additional $10 billion for losses on subprime assets. The company reported its biggest quarterly loss in its 93-year history, taking an $8.4 billion writedown that was almost double its forecast.
Oil & Natural Declines
ICICI, India's second-largest lender, fell 59.75 rupees, or 4.5 percent, to 1,270.85. Reliance, which runs the world's third biggest refinery, dropped 49.05 rupees, or 1.8 percent, to 2,663.65. The two stocks account for about a quarter of the Sensex's weight.
Oil & Natural Gas Corp., the country's biggest explorer, slid 67.05 rupees, or 4.9 percent, to 1,299.05, after oil prices fell from a record.
Crude oil for December delivery fell as much as $1.23, or 1.4 percent, to $94.61 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was recently at $94.28. On Nov. 2, oil rose $2.44, or 2.6 percent, to $95.93, the highest closing price since trading began in 1983.
'Good Run'
Oil & Natural Gas ``has had a good run-up on the back of rising oil prices,'' said K.K. Mital, who manages the equivalent of $46 million in assets at Escorts Asset Management in New Delhi. ``Some investors are booking profit at these levels.''
Oil & Natural Gas, which has surged 32 percent over the past month, has had its relative strength index, a moving average based on advances and declines in the previous 14 days, at above 70 since Oct. 31. A reading of 70 indicates to some analysts that the stock is poised to fall.
Overseas funds bought a net 1.81 billion rupees ($44.8 million) of Indian shares on Nov. 1, according to the latest figures from the Securities & Exchange Board of India's Web site.
The following shares rose or fell. Stock symbols are in brackets after company names:
Jet Airways (India) Ltd. (JETIN IN) gained 5.85 rupees, or 0.7 percent, to 828.65. The nation's largest domestic carrier said Nov. 2 it will increase its fuel surcharge by 150 rupees ($3.8) on all types of fares to 1,350 rupees a ticket.
Mahindra & Mahindra Ltd. (MM IN) slid 12.7 rupees, or 1.7 percent, to 742.85. India's biggest maker of sport-utility vehicles and Navistar International Corp., a U.S. truck maker, agreed to spend $90 million in the next five years to make truck engines in India, Mahindra said on Nov. 2.
Hindustan Zinc Ltd. (HZ IN) declined 16.95 rupees, or 1.9 percent, to 865.50. The nation's No. 1 producer of zinc lowered prices of the metal and raised prices of lead. Zinc prices were cut by 2.9 percent to 127,300 rupees a metric ton. Lead prices were increased by 0.3 percent, to 160,900 rupees a ton.
Prime Securities Ltd. (PSEC IN) added 12.2 rupees, or 7.4 percent, to 177.35. The Indian brokerage and securities company's board approved the buyback of up to 24 percent of its equity at a price not exceeding 225 rupees a share.
Punj Lloyd Ltd. (PUNJ IN) rose 32.75 rupees, or 6.6 percent, to 531.15. The Indian construction company's unit won a $450 million contract to build facilities, including jetties and a power plant, at a chemical factory for Jurong Aromatics Corp. in Singapore. Construction will be completed in 2011.
Monday, November 5, 2007
Thursday, November 1, 2007
TODAY MARKET WRAP SENSEX PULLED DOWN BY HEAVYWEIGHT RELIANCE, BHARTI AIRTEL
Sensitive Index fell after some investors judged the recent gains to records excessive. Reliance Industries Ltd. led declines.
``The rally has been sharp and swift, so we will see investors taking some profits out,'' said R.K. Gupta, who manages the equivalent of $75 million of stocks at Credit Capital Asset Management in New Delhi.
Bharti Airtel Ltd., the country's largest mobile-phone operator, posted its biggest drop in two weeks after a newspaper reported that India may increase fees for airwaves used to offer wireless services.
The Bombay Stock Exchange's Sensitive Index, or Sensex, slid 113.64, or 0.6 percent, to 19,724.35. The Sensex's relative strength index, a moving average based on advances and declines in the previous 14 days, was above 70 yesterday. A reading of 70 indicates to some analysts that the benchmark is poised to fall.
The S&P/CNX Nifty Index on the National Stock Exchange declined 34.20, or 0.6 percent, to 5,866.45. Nifty futures for November delivery slid 1.5 percent to 5,821.30.
Reliance, which runs the world's third-largest refinery, fell 110.95 rupees, or 4 percent, to 2,671.60. The stock has more than doubled this year. Reliance Energy Ltd., the best performer on the Sensex this year, dropped 99 rupees, or 5.3 percent, to 1,767.80.
Bharti dropped 63.65 rupees, or 6.3 percent, to 942.95. Mobile-phone operators using the global system for mobile communications, or GSM technology, may be required to pay as much as 14 percent of their annual revenue as fees, the Business Standard reported, without saying where it got the information.
Bharti, Vodafone
Bharti and Vodafone Group Plc's local unit, the nation's two biggest GSM-based operators, are seeking more bandwidth to offer mobile-phone services as record growth in the world's fastest- growing major wireless market crowds the airwaves.
Larsen & Toubro Ltd., the nation's biggest engineering company, rose 182.05 rupees, or 4.3 percent, to 4,426.60 after winning a contract to modernize the country's busiest airport in Mumbai. The contract from Mumbai International Airport Pvt. is to build a new passenger terminal and modernize and expand existing facilities, Larsen said in a release today.
Overseas funds sold a net 3.03 billion rupees ($75.2 million) of Indian shares on Oct. 30, according to the latest figures from the Securities & Exchange Board of India's Web site.
The following shares rose or fell. Stock symbols are in brackets after company names:
Bajaj Auto Ltd. (BJA IN) dropped 52.1 rupees, or 2.1 percent, to 2,422.10. India's second-biggest motorcycle maker said sales declined 1 percent to 278,176 motorcycles, scooters and three- wheeled auto-rickshaws last month.
Hindustan Unilever Ltd. (HUVR IN) fell 13.35 rupees, or 6.4 percent, to 194.25, its biggest decline since June 8, 2006. India's biggest maker of household products, said third-quarter profit declined 22 percent as a factory lockout cut production of shampoo and toothpaste. Net income slid to 4.08 billion rupees. That was less than the 4.42 billion rupee median estimate of analysts Bloomberg surveyed. The stock fell 5.2 percent yesterday.
Mahindra & Mahindra Ltd. (MM IN) rose 10.25 rupees, or 1.4 percent, to 764.95. India's biggest maker of sport-utility vehicles reported a 46 percent gain in domestic auto sales in October on higher demand for the Scorpio SUV and the Logan sedan.
Oil & Natural Gas Corp. (ONGC IN) jumped 82.3 rupees, or 6.6 percent, to 1,330.20. India's biggest explorer gained after crude prices rose above $96 a barrel for the first time in New York. Oil for December delivery gained as much as 1.8 percent to $96.24 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since trading began in 1983. It traded at $95.48 at 12:16 p.m. London time.
Patni Computer Systems Ltd. (PATNI IN) declined 27.35 rupees, or 6.8 percent, to 377.45, its biggest drop since Aug. 16. The software developer's planned stake sale has been canceled,
``The rally has been sharp and swift, so we will see investors taking some profits out,'' said R.K. Gupta, who manages the equivalent of $75 million of stocks at Credit Capital Asset Management in New Delhi.
Bharti Airtel Ltd., the country's largest mobile-phone operator, posted its biggest drop in two weeks after a newspaper reported that India may increase fees for airwaves used to offer wireless services.
The Bombay Stock Exchange's Sensitive Index, or Sensex, slid 113.64, or 0.6 percent, to 19,724.35. The Sensex's relative strength index, a moving average based on advances and declines in the previous 14 days, was above 70 yesterday. A reading of 70 indicates to some analysts that the benchmark is poised to fall.
The S&P/CNX Nifty Index on the National Stock Exchange declined 34.20, or 0.6 percent, to 5,866.45. Nifty futures for November delivery slid 1.5 percent to 5,821.30.
Reliance, which runs the world's third-largest refinery, fell 110.95 rupees, or 4 percent, to 2,671.60. The stock has more than doubled this year. Reliance Energy Ltd., the best performer on the Sensex this year, dropped 99 rupees, or 5.3 percent, to 1,767.80.
Bharti dropped 63.65 rupees, or 6.3 percent, to 942.95. Mobile-phone operators using the global system for mobile communications, or GSM technology, may be required to pay as much as 14 percent of their annual revenue as fees, the Business Standard reported, without saying where it got the information.
Bharti, Vodafone
Bharti and Vodafone Group Plc's local unit, the nation's two biggest GSM-based operators, are seeking more bandwidth to offer mobile-phone services as record growth in the world's fastest- growing major wireless market crowds the airwaves.
Larsen & Toubro Ltd., the nation's biggest engineering company, rose 182.05 rupees, or 4.3 percent, to 4,426.60 after winning a contract to modernize the country's busiest airport in Mumbai. The contract from Mumbai International Airport Pvt. is to build a new passenger terminal and modernize and expand existing facilities, Larsen said in a release today.
Overseas funds sold a net 3.03 billion rupees ($75.2 million) of Indian shares on Oct. 30, according to the latest figures from the Securities & Exchange Board of India's Web site.
The following shares rose or fell. Stock symbols are in brackets after company names:
Bajaj Auto Ltd. (BJA IN) dropped 52.1 rupees, or 2.1 percent, to 2,422.10. India's second-biggest motorcycle maker said sales declined 1 percent to 278,176 motorcycles, scooters and three- wheeled auto-rickshaws last month.
Hindustan Unilever Ltd. (HUVR IN) fell 13.35 rupees, or 6.4 percent, to 194.25, its biggest decline since June 8, 2006. India's biggest maker of household products, said third-quarter profit declined 22 percent as a factory lockout cut production of shampoo and toothpaste. Net income slid to 4.08 billion rupees. That was less than the 4.42 billion rupee median estimate of analysts Bloomberg surveyed. The stock fell 5.2 percent yesterday.
Mahindra & Mahindra Ltd. (MM IN) rose 10.25 rupees, or 1.4 percent, to 764.95. India's biggest maker of sport-utility vehicles reported a 46 percent gain in domestic auto sales in October on higher demand for the Scorpio SUV and the Logan sedan.
Oil & Natural Gas Corp. (ONGC IN) jumped 82.3 rupees, or 6.6 percent, to 1,330.20. India's biggest explorer gained after crude prices rose above $96 a barrel for the first time in New York. Oil for December delivery gained as much as 1.8 percent to $96.24 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since trading began in 1983. It traded at $95.48 at 12:16 p.m. London time.
Patni Computer Systems Ltd. (PATNI IN) declined 27.35 rupees, or 6.8 percent, to 377.45, its biggest drop since Aug. 16. The software developer's planned stake sale has been canceled,
NIFTY NUDGES 6000 AFTER FED RATE CUT
PTI
Mumbai: The National Stock Exchange index Nifty briefly crossed the milestone of 6,000 points in early trade on heavy buying by foreign funds after the US Federal Reserve slashed interest rates by 25 basis points yesterday.
The Bombay Stock Exchange was equally buoyant. Its 30-share Sensex spurted by 366.22 points to hit 20,204.21 points in the first five minutes of trade.
The 50-share Nifty went up by 111.30 point at 6,011.95 with most of the index linked stocks trading in green.
It later pared some of the gains, and was at 5993 at 10:45am, showing a gain of 92 points.
The market also received a booster from the Hong Kong share prices which opened higher today, up 1.27 per cent, tracking Wall Street’s gains after the US Federal Reserve cut its key interest rate by 25 basis points.
The US Fed cut its target for the federal funds rate to 4.5 per cent from 4.75 per cent, meeting the expectations of most analysts.
Mumbai: The National Stock Exchange index Nifty briefly crossed the milestone of 6,000 points in early trade on heavy buying by foreign funds after the US Federal Reserve slashed interest rates by 25 basis points yesterday.
The Bombay Stock Exchange was equally buoyant. Its 30-share Sensex spurted by 366.22 points to hit 20,204.21 points in the first five minutes of trade.
The 50-share Nifty went up by 111.30 point at 6,011.95 with most of the index linked stocks trading in green.
It later pared some of the gains, and was at 5993 at 10:45am, showing a gain of 92 points.
The market also received a booster from the Hong Kong share prices which opened higher today, up 1.27 per cent, tracking Wall Street’s gains after the US Federal Reserve cut its key interest rate by 25 basis points.
The US Fed cut its target for the federal funds rate to 4.5 per cent from 4.75 per cent, meeting the expectations of most analysts.
LOOK FOR TODAY THESE STOCKS
Sugar Producers, Bharat Petroleum, Essar: India Stock Preview
By Pooja Thakur and Pratik Parija
Nov. 1 (Bloomberg) -- The following stocks may rise or fall in Mumbai today. Prices refer to yesterday's close. The preview includes news that broke after markets shut. Stock symbols are in brackets after company names.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 0.3 percent to 19,837.99. The S&P/CNX Nifty Index on the National Stock Exchange climbed 0.5 percent, to 5,900.65. Nifty futures for November delivery added 0.4 percent to 5,907.35.
Overseas funds sold a net 3.03 billion rupees ($75.2 million) of Indian shares on Oct. 30, according to the latest figures from the Securities & Exchange Board of India's Web site.
Sugar Companies: The government of India's largest cane- producing state, Uttar Pradesh, yesterday asked mills to pay cane farmers as much as 130 rupees per 100 kilograms (220 pounds). The price, unchanged from last year, matches the price companies receive for refined sugar.
Bajaj Hindusthan Ltd. (BJH IN) declined 1.3 rupees, or 0.7 percent to 184.2. Balrampur Chini Mills Ltd. (BRCM IN) slid 0.25 rupee, or 0.3 percent, to 79.95.
Bharat Petroleum Corp. (BPCL IN): The nation's third- biggest state-run refiner reported an 18 percent fall in second-quarter profit as government compensation for selling fuels at prices below cost didn't make up for the revenue lost. Net income fell to 10.38 billion rupees, the company said. Bharat Petroleum added 3.15 rupees, or 0.9 percent, to 342.85.
Essar Steel Ltd. (ESRGJ IN): India's sixth-largest steelmaker yesterday said second-quarter profit fell 1.3 percent to 1.52 billion rupees. Essar Steel slid 0.1 rupee, or 0.2 percent, to 45.80.
Larsen & Toubro Ltd. (LT IN): The nation's biggest engineering company may win a 10 billion-rupee contract from Indian Railways, the Mint newspaper reported, citing a railway ministry official it didn't identify. Larsen dropped 78.45 rupees, or 1.8 percent, to 4,244.55.
Neyveli Lignite Corp. (NLC IN): The Indian miner and power producer said yesterday profit in the quarter ended Sept. 30 rose 41 percent to 2.31 billion rupees. Neyveli rose 6.55 rupees, or 4.9 percent, to 140.05.
Patni Computer Systems Ltd. (PATNI IN): The software developer's planned stake sale has been canceled, television channel CNBC-TV18 reported, citing unidentified people.
The founders are close to selling part of their stake in Patni to Texas Pacific Group and Apax Partners Worldwide LLC, the Business Standard newspaper reported in August, without saying where it got the information. Patni fell 24.1 rupees, or 5.6 percent, to 404.80.
Punj Lloyd Ltd. (PUNJ IN): The Indian engineering and construction company said second-quarter profit surged 40 times to 313.7 million rupees in the three months to Sept. 30, from 7.8 million rupees in the same quarter a year earlier, the company said. Punj slid 3.05 rupees, or 0.7 percent, to 468.85.
Power Grid Corp. (PWGR IN): India's biggest power transmission company said yesterday it earned a profit of 3.71 billion rupees in the second-quarter. Revenue was 10.34 billion rupees. The company didn't give the year earlier numbers. Power Grid added 3.15 rupees, or 2.2 percent, to 149.75.
By Pooja Thakur and Pratik Parija
Nov. 1 (Bloomberg) -- The following stocks may rise or fall in Mumbai today. Prices refer to yesterday's close. The preview includes news that broke after markets shut. Stock symbols are in brackets after company names.
The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 0.3 percent to 19,837.99. The S&P/CNX Nifty Index on the National Stock Exchange climbed 0.5 percent, to 5,900.65. Nifty futures for November delivery added 0.4 percent to 5,907.35.
Overseas funds sold a net 3.03 billion rupees ($75.2 million) of Indian shares on Oct. 30, according to the latest figures from the Securities & Exchange Board of India's Web site.
Sugar Companies: The government of India's largest cane- producing state, Uttar Pradesh, yesterday asked mills to pay cane farmers as much as 130 rupees per 100 kilograms (220 pounds). The price, unchanged from last year, matches the price companies receive for refined sugar.
Bajaj Hindusthan Ltd. (BJH IN) declined 1.3 rupees, or 0.7 percent to 184.2. Balrampur Chini Mills Ltd. (BRCM IN) slid 0.25 rupee, or 0.3 percent, to 79.95.
Bharat Petroleum Corp. (BPCL IN): The nation's third- biggest state-run refiner reported an 18 percent fall in second-quarter profit as government compensation for selling fuels at prices below cost didn't make up for the revenue lost. Net income fell to 10.38 billion rupees, the company said. Bharat Petroleum added 3.15 rupees, or 0.9 percent, to 342.85.
Essar Steel Ltd. (ESRGJ IN): India's sixth-largest steelmaker yesterday said second-quarter profit fell 1.3 percent to 1.52 billion rupees. Essar Steel slid 0.1 rupee, or 0.2 percent, to 45.80.
Larsen & Toubro Ltd. (LT IN): The nation's biggest engineering company may win a 10 billion-rupee contract from Indian Railways, the Mint newspaper reported, citing a railway ministry official it didn't identify. Larsen dropped 78.45 rupees, or 1.8 percent, to 4,244.55.
Neyveli Lignite Corp. (NLC IN): The Indian miner and power producer said yesterday profit in the quarter ended Sept. 30 rose 41 percent to 2.31 billion rupees. Neyveli rose 6.55 rupees, or 4.9 percent, to 140.05.
Patni Computer Systems Ltd. (PATNI IN): The software developer's planned stake sale has been canceled, television channel CNBC-TV18 reported, citing unidentified people.
The founders are close to selling part of their stake in Patni to Texas Pacific Group and Apax Partners Worldwide LLC, the Business Standard newspaper reported in August, without saying where it got the information. Patni fell 24.1 rupees, or 5.6 percent, to 404.80.
Punj Lloyd Ltd. (PUNJ IN): The Indian engineering and construction company said second-quarter profit surged 40 times to 313.7 million rupees in the three months to Sept. 30, from 7.8 million rupees in the same quarter a year earlier, the company said. Punj slid 3.05 rupees, or 0.7 percent, to 468.85.
Power Grid Corp. (PWGR IN): India's biggest power transmission company said yesterday it earned a profit of 3.71 billion rupees in the second-quarter. Revenue was 10.34 billion rupees. The company didn't give the year earlier numbers. Power Grid added 3.15 rupees, or 2.2 percent, to 149.75.
FED RATE CUT BY 25 BASIS POINT
ITS IMPLICATION ON INDIA AND CHINA
Foreign Investors
Foreign investors are flocking into China and India to also gain from their surging economic growth. China's $2.7 trillion economy, which contributes a tenth of global growth, has expanded more than 11 percent for the past three quarters. India's government expects its $906 billion economy to grow an annual 9 percent for the third straight year.
People's Bank of China Governor Zhou Xiaochuan has raised the reserve limit for its lenders to 13 percent from 9 percent at the start of the year. The Reserve Bank of India yesterday lifted its cash reserve ratio for the fourth time this year to 7.50 percent, a 225 basis point increase from January.
India and China may be forced to further restrict bank lending as declining U.S. interest rates prompt investors to pump record cash into the world's two fastest-growing economies.
``If the U.S. cuts rates, it will have Asia's blood on its hands,'' said Marc Faber, managing director of Hong Kong-based Marc Faber Ltd. and publisher of the Gloom, Boom & Doom Report. ``The Fed is pursuing an easy monetary policy that is creating massive bubbles outside the U.S.''
Foreign Investors
Foreign investors are flocking into China and India to also gain from their surging economic growth. China's $2.7 trillion economy, which contributes a tenth of global growth, has expanded more than 11 percent for the past three quarters. India's government expects its $906 billion economy to grow an annual 9 percent for the third straight year.
People's Bank of China Governor Zhou Xiaochuan has raised the reserve limit for its lenders to 13 percent from 9 percent at the start of the year. The Reserve Bank of India yesterday lifted its cash reserve ratio for the fourth time this year to 7.50 percent, a 225 basis point increase from January.
India and China may be forced to further restrict bank lending as declining U.S. interest rates prompt investors to pump record cash into the world's two fastest-growing economies.
``If the U.S. cuts rates, it will have Asia's blood on its hands,'' said Marc Faber, managing director of Hong Kong-based Marc Faber Ltd. and publisher of the Gloom, Boom & Doom Report. ``The Fed is pursuing an easy monetary policy that is creating massive bubbles outside the U.S.''
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