 | 4952.65 | ( -1.03 %) | -51.30 |  | | | 1 | 2 | 3 | | Resistance | 5003.12 | 5053.58 | 5092.77 | | Support | 4913.47 | 4874.28 | 4823.82 |  | 16696.03 | ( -0.91 %) | -153.57 | | | | 1 | 2 | 3 | | Resistance | 16860.10 | 17024.16 | 17151.71 | | Support | 16568.49 | 16440.94 | 16276.88 | Interesting findings on web:
U.S. equity benchmark indexes fell from 13-month highs as energy shares slumped following bigger- than-estimated growth in oil stockpiles, erasing an earlier advance spurred by Hewlett-Packard Co.'s takeover of 3Com Corp. The dollar rose the most versus the euro since August. The Dow industrials six-day winning streak came to a halt on Thursday as a drop in oil prices pulled energy stocks lower and a guarded outlook from Wal-Mart fanned worries about consumer spending. Stocks were also undermined by a U.S. dollar rally, as its safe-haven appeal rose after several policymakers around the world warned the economic recovery was fragile. With earnings season coming to a close, and looking beyond the Federal Reserve's meeting last week, investors searched for new catalysts to determine the market's direction. "As the S&P 500 has gone above 1,100, it has had a hard time holding on to gains," said Quincy Krosby, market strategist at Prudential Financial in Shelton, Connecticut. Both the Dow industrials and the S&P 500 hit 13-month closing highs on Wednesday. The Dow Jones industrial average .DJI fell 93.79 points, or 0.91 percent, to 10,197.47. The Standard & Poor's 500 Index .SPX dropped 11.27 points, or 1.03 percent, to 1,087.24. The Nasdaq Composite Index .IXIC lost 17.88 points, or 0.83 percent, to 2,149.02. RUSSELL580.32-12.39-2.09% TRAN3937.84-50.16-1.26% UTIL370.69-5.30-1.41% S&P 100505.45-4.47-0.88% S&P 400691.44-10.54-1.5% NYSE7063.05-92.31-1.29% NAS 1001773.14-9.81-0.55% For the week: The Dow is up 174.05, or 1.7 percent. The S&P is up 17.94, or 1.7 percent. The Nasdaq is up 36.58, or 1.7 percent. For the year: The Dow is up 1,421.08, or 16.2 percent. The S&P is up 183.99, or 20.4 percent. The Nasdaq is up 571.99, or 36.3 percent. "In order to get to the next level up, (the market) does need a strong catalyst, and most of the time the stronger dollar has been a negative," Krosby said. Mark Luschini, chief investment strategist for Jamey Montgomery Scott, said Thursday's pause was unsurprising given the consecutive gains in stocks so far this month. Dave Shepherd, president of Retirement Financial Services, agreed, noting that it will be difficult for stocks to sustain gains given the underlying weakness in the labor and housing markets that are leaving consumers cash-strapped. "For this rally to be sustainable, the consumer has to bounce back," Shepherd said. "The market is acting so contrary to some of the data." The recent runup is a "relief rally, because we realize the economy isn't going to collapse," Shepherd said, and the market seems to be questioning whether the increases are based on true fundamentals. "We've had this unprecedented rally off the lows we saw in March, so a pause today [is] normal," he added. "I would tend to think a correction will come soon, but there's been so much momentum." Shepherd said the rapid rise is cause for concern, as stocks took three years to recover from a similar decline in 2002. "There's a lot of money floating around, we haven't had the data to back it up," Shepherd said. "Either the data have to get better or stocks are going to retreat as the market worries it got ahead of itself." The S&P 500, which closed at its highest level since October 2008 yesterday, failed to remain above the 1,100 level for a second straight day. The index has rallied 61 percent from a 12-year low in March, recovering almost half of its plunge from a record in October 2007. "The fundamentals just aren't quite there yet," said Sarah Hunt, a money manager who helps oversee about $6.5 billion for Purchase, New York-based Alpine Mutual Funds. "You still have a lot of concerns about the demand side of the equation for energy stocks. We're getting a bit of a pause. Every time we get these big bursts of enthusiasm they tend to be tempered by the fact that the economy still looks pretty bad." The rebound occurred as government stimulus measures and Federal Reserve interest rate cuts helped end a four-quarter contraction in the U.S. economy. The gains pushed the S&P 500 to about 22 times reported earnings, the highest since 2002, according to weekly data compiled by Bloomberg. "This market has risen on a cloud of hope," said Robert Arnott, founder of Research Affiliates LLC, which oversees $45 billion in Newport Beach, California. "It's always dangerous to assume that a liquidity-induced bull market will end before the liquidity flows end. The liquidity flows have some time to go, but the market has gotten way, way, way ahead of fundamentals." Eighty-one percent of S&P 500 companies that released results have exceeded the average analyst estimate for third quarter earnings per share, a record in Bloomberg data going back to 1993, even as profits slumped for a record ninth straight quarter. U.S. Treasury Secretary Timothy Geithner said there are "early signs" that the world is addressing imbalances in spending and savings that contributed to the global crisis. Asia is "leading the world" back to recovery, Geithner told reporters in a press briefing with counterparts from the Asia-Pacific Economic Cooperation group following a meeting in Singapore. American exports are also growing at a healthier rate, he said.
China will probably let the yuan start rising against the dollar in early 2010 after the central bank signaled it may pursue a more flexible currency policy, said Calyon, the investment-banking arm of Credit Agricole SA.
The exchange rate will be guided in a "proactive, controlled and gradual manner and based on international capital flows and movements in major currencies," the People's Bank of China said yesterday in a quarterly report. It omitted a pledge made three months earlier to keep the yuan "basically stable." Gold prices climbed to a record $1,123.40 an ounce in New York, flirting with the longest rally in 27 years before declining as the dollar rebounded, curbing demand for the metal as an alternative asset. The Labor Department released its weekly report on initial jobless claims, which said there were 502,000 new filers last week. That's the lowest level since Jan. 3. Economists were expecting 510,000 claims. The Treasury Department said the federal deficit hit $176.4 billion in October -- the 13th monthly deficit in a row and the first one of the fiscal year. President Obama said Thursday he will hold a jobs forum at the White House in December, as the country faces a 10.2% unemployment rate. Southwestern Energy Corp. and Range Resources Corp. slid more than 4 percent, helping lead 39 of 40 oil and gas companies in the Standard & Poor's 500 Index lower as crude tumbled. The dollar strengthened against 14 of 16 major currencies, extending declines in commodities. 3Com rallied 31 percent, its best gain since 2007, as Hewlett-Packard offered to purchase the maker of computer networking equipment for $2.7 billion. Southwestern Energy, the only oil and natural-gas producer in the S&P 500 to advance last year, slid 4.8 percent to $42.57. Range Resources, the independent energy producer that operates mostly in the southwestern, Appalachian and Gulf Coast regions of the U.S., slid 4.3 percent to $48.98. Chevron Corp., the second-largest U.S. oil company, lost 1.4 percent to $77.42. Energy shares slumped 2 percent collectively, the steepest decline among 10 groups. Exxon fell $1.01, or 1.4%, to $71.90, while Chevron fell 1.09, or 1.4%, to 77.42. "Demand for oil is not strengthening, despite indications that the economy is showing signs of stabilization and growth," said Tim Ghriskey, who helps oversee $2 billion as chief investment officer for Solaris Asset Management in Bedford Hills, New York. "It calls into question on a minor basis the strength of the economic recovery." Wal-Mart Stores Inc. rose 0.5 percent to $53.24. The world's largest retailer posted third-quarter profit of 84 cents a share, beating the 81-cent average analyst estimate in a Bloomberg survey, while forecasting U.S. sales for the fourth quarter will be little changed. But the big-box retailing giant projected flat fourth-quarter U.S. same-store sales, disappointing investors who are nervous about the holiday season. "Now that you're toward the year end, and you have a big data point coming up which is Christmas, people are starting to get nervous," said Michael Alpert, a portfolio manager with Seligman Investments. "We remain bearish on the consumer. There's still a big headwind with 10% unemployment." Dow Chemical Co. climbed 7.1 percent to $28.60 after it said cost cuts and rising sales after the acquisition of Rohm & Haas Co. will boost earnings more than analysts estimate. Financial shares in the S&P 500 posted the second-steepest decline among 10 groups, falling 1.8 percent collectively. Bank of America Corp. dropped 2.3 percent to $16.06 and JPMorgan Chase & Co. lost 2.3 percent to $43.30. The Federal Reserve will prohibit banks from charging overdraft fees on automated teller machines or debit cards, unless a customer has agreed to pay extra charges for exceeding account balances. Lenders collected almost $37 billion in overdraft fees last year, according to research firm Moebs Services Inc. The KBW Bank Index that tracks 24 lenders broke out of a so-called triple top pattern in the past two weeks, suggesting that it has entered a period of decline that will extend to the S&P 500, Bartels said in a telephone interview. Advance Micro Systems Inc (AMD.N) rose 21.8 percent to $6.48 and was the among the most traded stocks during the regular session on the New York Stock Exchange after it agreed with fellow chipmaker Intel Corp (INTC.O) to settle all outstanding legal disputes. Intel will pay AMD $1.25 billion as part of the settlement. AIG shares [AIG 36.23 -0.52 (-1.41%) ] fell 1.3 percent amid speculation about its top executives. The stock has quietly risen 50 percent in the past five months. Applied Materials [AMAT 12.82 -0.43 (-3.25%) ] beat on both the top and bottom lines, announced plans to cut jobs globally and said it expects sales to jump 30 percent next year. Its shares rallied after-hours yesterday but fell 3.3 percent today. Giving the sector a jolt, Hewlett-Packard [HPQ 49.70 -0.30 (-0.6%) ] agreed to acquire 3Com [COMS 7.46 1.77 (+31.11%) ] for $2.7 billion in cash. 3Com shares rallied 31 percent to $7.46. That shot started off a swirl of speculation about what rivals Cisco [CSCO 23.44 -0.48 (-2.01%) ] and IBM [IBM 126.27 -0.92 (-0.72%) ] might do. Both stocks declined today. The big question is: What might be next takeover target in this tech horse race? JDS Uniphase [JDSU 7.71 0.51 (+7.08%) ] and Broadcom [BRCM 28.41 -0.26 (-0.91%) ] are some of the names being tossed around. JDS Uniphase rallied 7 percent. The company, if you recall, was one of the highflyers of the dot-com boom and crashed spectacularly. Now, it's at a sweet spot, says Sanford Bernstein's Jeff Evenson, as it makes testing equipment that companies need for setting up broadband and wireless networks. They also make lasers and one of their biggest drivers last quarter was 3D glasses, capitalizing on the IMAX trend. Brocade [BRCD 8.08 -1.17 (-12.65%) ] was actually downgraded by several analysts amid worries that it won't able to gain market share following the deal. Its shares fell 13 percent. In addition to Wal-Mart, jitters over retail sales heading into the holidays also were reflected in earnings from Kohl's [KSS 54.69 0.10 (+0.18%) ], which reflected Wal-Mart's in that the retailer beat third-quarter expectations but looks set to fall short in the year's final reporting period. Dow component Walt Disney [DIS 29.03 -0.26 (-0.89%) ] reports after the closing bell, as does retailer Nordstrom [DIS 29.03 -0.26 (-0.89%) ] . Homebuilders skidded after the prior session's rally. Mortgage rates declined last week, with the 30-year fixed down to 4.91 percent, and home foreclosures slowing for a third consecutive month, but RealtyTrac, which puts out the foreclosure report, said rising unemployment could make that lull temporary. Aecom Technology rose 1.25, or 4.9%, to 26.72 after the infrastructure engineering and design company reported its fiscal fourth-quarter profit rose 25%, beating analysts' expectations, thanks in part to rising margins and new business. Green Mountain Coffee Roasters (Nasdaq) fell 7.56, or 10%, to 68.35. The specialty coffee maker's fiscal fourth-quarter profit doubled but its fourth-quarter outlook fell short of analysts' estimate. Advance Auto Parts slid 1.59, or 4%, to 38.69, despite reporting a 10% rise in its fiscal third-quarter earnings, as Oppenheimer warned it expects same-store sales to soften further in coming quarters as comparisons get more challenging. Ctrip.com International's American depositary shares rose 4.73, or 7.4%, to 69.02 after the Chinese online travel-services company said third-quarter earnings leapt 83% on strong revenue growth. Its earnings and revenue both came in above Wall Street estimates. Goodyear Tire & Rubber gained 21 cents, or 1.6%, to 13.74 after the tire maker said it will increase its North American consumer tire prices by as much as 6% as raw-material prices rise. The move represents the first price increase the tire maker has initiated in about a year. Medical devices group Zimmer Holdings launched a $1bn two-part debt sale. S&P 500 - Risers Adv Micro Devices (AMD) $6.48 +21.80% Jds Uniphase Corp. (JDSU) $7.88 +9.47% Dow Chemical (DOW) $28.60 +7.08% NASDAQ OMX Group Inc. (NDAQ) $19.22 +2.62% Wynn Resorts Ltd. (WYNN) $67.90 +2.04% Tyco International Ltd. (TYC) $35.57 +1.98% S&P 500 - Fallers Eastman Kodak Co (EK) $4.02 -6.29% Manitowoc Co. (MTW) $10.79 -5.76% Dynegy Inc. Holdings Co (DYN) $1.97 -5.29% Lincoln Natl Corp. (LNC) $23.49 -5.17% Unumprovident Corp. (UNM) $19.50 -5.11% Rowan Cos Inc. (RDC) $25.39 -5.01% Dow Jones I.A - Risers Microsoft Corp. (MSFT) $29.39 +0.93% Wal-Mart Stores Inc. (WMT) $53.24 +0.51% Johnson & Johnson (JNJ) $61.15 +0.46% Kraft Foods Inc. (KFT) $26.84 +0.07% Dow Jones I.A - Fallers Caterpillar Inc. (CAT) $58.57 -2.48% JP Morgan Chase & Co. (JPM) $43.30 -2.30% Bank Of America Corp. (BAC) $16.06 -2.25% Travelers Company Inc. (TRV) $53.14 -2.15% Cisco Systems Inc. (CSCO) $23.42 -2.09% Alcoa Inc. (AA) $13.20 -1.71% After the market's close, shares of Walt Disney Co (DIS.N) jumped 3.6 percent to $30.10 after the media company posted a rise in quarterly earnings and its revenue was higher than expected. VIX24.241.20+5.21. Oil,Gold & Currencies: Oil prices dropped 3% after a report from the Energy Information Administration showed crude supplies jumped more than expected. U.S. crude fell $2.34 to settle at $76.94. Gold prices also slipped, halting a runup that has driven the metal almost 6% higher this month. December gold fell $8 to settle at to $1,106.60 an ounce. The dollar rose broadly on Thursday as several policymakers around the world warned the economic recovery was fragile, prompting investors to take profits on gains in higher-yielding currencies and assets. Bonds: The benchmark 10-year note fell 1-26/32 to 99-9/32 and its yield was up 3.45% from 3.42% late Tuesday. The Treasury Department was closed Wednesday for the Veterans Day holiday. Prices and yields move in opposite directions. What to expect: FRIDAY: NY Fed conference on financial intermediation; international trade; import/export prices; consumer sentiment; Nicholas Cosmo court appearance; Fed's Evans speaks; Earnings from JCPenney, Abercrombie Other Headlines: Friday Preview: 'Risk Trade' Stalling; Dollar Watch Continues Hong Kong Is New Focus in U.S. War Against Global Tax Evasion by Americans Obama in China Can't Avoid Immovable Renminbi as Weak Dollar Sinks Asians U.S. Duties on Chinese Steel, Tire Imports Not Protectionist, Locke Says Insider Trading Is `Systemic' in Hedge Fund Industry, SEC's Khuzami Says China's Drive to Cut Greenhouse Gases From Smelters Faces U.S., EU Critics Obama Seeks Afghan War Exit Strategy Before Deciding on Troops, Gibbs Says Warren Buffett: The financial panic is over Fort Hood shooting suspect charged with 13 murders SEC expects to proceed with Bear Stearns case Boeing completes crucial fix on first 787 British Airways, Iberia agree to $7 billion merger H1N1 has killed 3,900 Americans: CDC Job Market Politics to Keep Interest Rates Low AIG, Symbol of Crisis, Watches Its Stock Zoom Back Disney Profit, Sales Top Street Forecasts; Shares Jump Bill Gates Praises Apple's Jobs for 'Saving the Company' Despite Rhetoric, Obama Has Few Options to Boost Jobs Video Game Sales Plunge, but Have They Hit Bottom? Is Euphoric Market Ignoring Warning Signs? CIT default swap auction to be held on November 20 Medvedev pitches modern Russia, warns opposition Abbas to accept Palestinian election delay: officials U.S. commitment to Afghanistan not open-ended: Gates Asia Summit Awaits Obama Trade Policy Promised in May as Agreements Linger China's Drive to Cut Greenhouse Gases From Smelters Faces U.S., EU Critics Stock Bull of Ireland O'Dwyer Buys BP, Rio Tinto to Bet on Faster Recovery Japan Risks `Stop-and-Go' Recovery as Hatoyama Redirects Stimulus Spending Hong Kong May Extend Economic Recovery With 1.9% Growth in Third Quarter China, Taiwan Ready to Sign Financial-Industry Agreement as Ties Expand Rupee: The partially convertible rupee INR=IN closed at 46.66/67 per dollar on yesterday, below its previous close of 46.29/30. Asia: Asian stocks dropped for a second day, paring the MSCI Asia Pacific Index's first weekly advance in four, as commodity-related shares fell on lower crude oil and metal prices. BHP Billiton Ltd., the world's biggest mining company and Australia's largest oil producer, sank 1.9 percent in Sydney today. BlueScope Steel Ltd., Australia's largest steelmaker, lost 1.4 percent, extending a slump from yesterday after saying it expects to post a loss in the first half. Japanese glass makers Central Glass Co. and Nippon Sheet Glass Co. dropped more than 5 percent after reporting losses. "Energy-related stocks should sag" in Asia, said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. The MSCI Asia Pacific Index lost 0.3 percent to 117.51 as of 10:20 a.m. in Tokyo, paring gains this week to 1 percent. The gauge has lost 3 percent from a 13-month high on Oct. 20 amid concern the withdrawal of government stimulus measures will cause the global recovery to falter. Japan's Nikkei 225 Stock Average dipped 0.4 percent to 9,762.41. Australia's S&P/ASX 200 Index sank 1.1 percent. New Zealand's NZX 50 Index slid 0.3 percent. Futures on the Standard & Poor's 500 Index lost 0.1 percent. The gauge slid 1 percent yesterday from a 13-month high, dragged down by energy producers. Crude-oil futures fell 3 percent to $76.94 a barrel in New York yesterday, the lowest settlement since Oct. 14. The Energy Department reported that supplies of crude oil rose 1.76 million barrels to 337.7 million last week. Analysts surveyed by Bloomberg News forecast a 1 million-barrel gain. Metal Prices The London Metals Index, a measure of six metals including copper and zinc, dropped 0.8 percent yesterday, its steepest slump this week. BHP Billiton dropped 1.9 percent to A$38.82. Rio Tinto Ltd., the world's third-biggest mining company, slipped 1.3 percent to A$68.95. Woodside Petroleum Ltd., Australia's second-largest oil producer, lost 1 percent top A$48.59. The MSCI Asia Pacific Index has climbed 68 percent from a more than five-year low on March 9. Stocks in the benchmark are valued at 22 times estimated earnings, compared with 17 times for the S&P and 15 times for the Stoxx. BlueScope Steel fell 1.4 percent to A$2.85. The stock slumped 4.6 percent yesterday after the company reiterated it will report a "small" first-half net loss due to a stronger Australian currency and declining prices. In Tokyo, Central Glass tumbled 5.3 percent to 376 yen after posting first-half net loss of 451 million yen ($5 million). Nippon Sheet Glass, which posted a first-half net loss of 26.2 billion yen, declined 5.7 percent to 263 yen. Nikkei 225 9,752.13 -52.36 ( - 0.53%). (08.25 AM IST) HSI 22511.02 +113.45 +0.51%. (08.26 AM IST) SSE Composite 3172.95 3164.37 3178.62 3154.94 -0.27. (08.27 AM IST) INDIA: Indian stocks declined on concern the government may rein in stimulus measures after the nation's industrial output accelerated more than expected in September. Maruti Suzuki India Ltd., the maker of half the cars sold in the nation, slid 2 percent. State Bank of India Ltd., the country's biggest lender, retreated 3.6 percent. Finance Minister Pranab Mukherjee said the 9.1 percent gain in Indian factory output for September is a "strong number." The Bombay Stock Exchange's Sensitive Index, or Sensex, lost 153.57, or 0.9 percent, to 16,696.03. The S&P CNX Nifty Index on the National Stock Exchange dropped 1 percent to 4,952.65. The BSE 200 Index declined 1.1 percent to 2,075.94. Maruti fell 2 percent to 1,423.1 rupees. The government's injection of 5.85 trillion rupees ($124 billion) of cash since September 2008 to sustain credit to companies and households helped New Delhi-based Maruti's profit almost double last quarter as it sold more vehicles. Indian policy makers face a challenge in timing the withdrawal of monetary stimulus, central bank Deputy Governor Shyamala Gopinath said Nov. 10 in Mumbai. They need to consider both the fragility of the recovery in Asia's third-biggest economy and the risk that inflation expectations will build, Gopinath said. The pace of industrial output growth will "strengthen the Reserve Bank's case to start withdrawing the monetary stimulus," said Sonal Varma, a Mumbai-based economist at Nomura Securities Co., who added the central bank may start raising interest rates as soon as their next policy meeting on Jan. 29. The Reserve Bank of India took a first step to tighten monetary policy on Oct. 27 by ordering lenders to invest a greater proportion of their deposits in government bonds. It left interest rates unchanged. State Bank of India Ltd., the nation's biggest lender, slid 3.6 percent to 2,293.65 rupees. ICICI Bank Ltd., the country's second-biggest lender, fell 3.5 percent to 892.6 rupees. HDFC Bank Ltd., No.3, lost 1.1 percent to 1,716.55 rupees. Housing Development Finance Corp., the biggest mortgage lender, retreated 2.6 percent to 2,738.55 rupees. Finance Minister Pranab Mukherjee said Nov. 10 that India will take "corrective" steps and pull back from fiscal stimulus once a recovery takes hold. Confidence in the world economy dipped in November on moves by central banks to withdraw some emergency measures, a survey of more than 1,500 Bloomberg users on six continents showed. Chinese Premier Wen Jiabao said today that while the worst of the global financial crisis is over, "a total recovery will be a slow and bumpy process." Sterlite fell 2.7 percent to 834.6 rupees. Hindalco Industries Ltd., the biggest aluminum producer, declined 2.1 percent to 129.05 rupees. Tata Steel Ltd., the biggest producer of the alloy, sank 2.8 percent to 512.05 rupees. The company's plan to switch debt for its Corus Group Ltd. purchase showed the Indian steelmaker is under "pressure" in Europe and is seeking "breathing space," analyst Niraj Shah said. Overseas funds bought a net 6.5 billion rupees ($139 million) of Indian stocks on Nov. 9, the Securities and Exchange Board of India said on its Web site. The funds have bought 697.6 billion rupees ($15.1 billion) of the nation's equities this year to date, compared with record net sales of 530 billion rupees for the whole of 2008. The tone was set by a pull back in Asian markets and signs of fatigue after a rally this year. A faster-than-expected 9.1 percent rise in India's industrial output in September from a year ago also failed to lift the market. "The market had moved up in anticipation of good news. So, with evidence coming in that recovery is on track, early investors are booking profits," said A.V. Srikanth, executive director of private wealth management at Anand Rathi Financial Services. The benchmark is up 5 percent this month after it shed 7.2 percent in October, when it had registered its worst monthly fall. "The volatility we are seeing is a tussle between people who have come in earlier and are wanting to book profits and those who missed the rally earlier and are trying to enter now," Srikanth said. For the year so far, the index is up 73 percent, powered by foreign fund inflows of $14.6 billion. Tata Steel fell as much as 3.5 percent after the company approved a new convertible bonds offer in exchange for an existing $875 million securities and lowered the share conversion price to 605.53 rupees from 733 rupees. "I think the company was not confident of its stock reaching that price, which means it would face a big redemption in a single year," said Pawan Burde, sector analyst at Mumbai-based PINC Research. "This probably reflects their concerns over growth amid the downturn in the global steel industry," he said. The stock closed 2.8 percent lower at 511.85 rupees. State Bank closed 3.5 percent lower at 2,295.90 rupees while ICICI and HDFC Bank shed 3.2 percent and 1.1 percent respectively. "The near-term outlook for banks is uncertain," Srikanth said. "For banks, credit growth is yet to revive; treasury gains may not stay and higher provisioning may hit profits for 1-2 quarters." The sector index closed 2.5 percent lower, but is up 8.5 percent this month. Infosys Technologies rose 0.6 percent to 2,322.70 rupees after its business process outsourcing arm said it agreed to acquire U.S.-based McCamish Systems. "IT stocks look good with hiring plans picking up, demand outlook improving and on earnings visibility," said Mehul Dedhia, assistant vice-president of sales at brokerage Sharekhan. Sector leader Tata Consultancy and smaller rival Wipro gained 1.4 percent each. In the broader market, losers outpaced gainers in a ratio of 1.2:1 on relatively higher volume of 516 million shares. The 50-share NSE index closed 1 percent lower at 4,952.65. * Wind turbine maker Suzlon Energy rose 2.4 percent to 69.35 rupees after it was added to the MSCI India index. * Drug maker Glenmark Pharmaceuticals and Power Grid Corp shed 3.8 percent and 1.6 percent respectively, as they were removed from the MSCI India index. * Indiabulls Real Estate dropped 1.8 percent to 239.20 rupees after about 16 percent of its equity changed hands on the Bombay Stock Exchange. Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 3%, followed by the Metal index that was down 2.6% and the BSE Bankex was down 2.5%. Even the BSE Mid-Cap index fell 1% and the BSE Small-Cap index was down 0.3%. Among the 30-components of Sensex, 19 stocks ended in the red and 11 ended in the positive terrain. SBI, DLF, ICICI Bank, Tata Steel, Sterlite and HDFC were among the top losers. On the other hand, among the major gainers were RCom, Wipro, TCS and Grasim. Outside the frontline indices, the big losers in the broader market were Hind Copper, NMDC, Godrej Cons, Marico and MMTC. On the other hand, gainers included Spice Tele, Jubilant Org, Moser Baer and HCL Tech. Shares of Infosys Technologies gained 0.5% to Rs2322. The company announced that it has signed a definitive agreement to acquire US-Based Insurance Business Process Solutions Provider, McCamish Systems; Deal Establishes Infosys BPO as a Key Player in Business Platform Services for the Insurance and Financial Services Sector. Shares of Suzlon Energy and HDIL gained in the early trades after both the stocks were included to the MSCI India Index. On the other hand, Power Grid and Glenmark Pharma were removed from the index. Suzlon gained 2.5% to Rs69 while, however, HDIL erased gained and ended lower by 2.2% to Rs366. On the other hand, shares of Power Grid fell 1.7% to Rs106 and Glenmark was down by 4% at Rs222. Aurobindo Pharma announced that it's tentatively approved ANDA for Perindopril Erbumine Tablets 2mg, 4mg and 8mg (ANDA No. 079070) has received the final approval from the US Food & Drug Administration (USFDA). Perindopril Erbumine Tablets are the generic equivalent of Solvay Pharmaceuticals' Aceon® Tablets and falls under the CVS segment and indicated for the treatment of patients with essential hypertension. The product will be launched shortly. Aurobindo has a total of 109 ANDA approvals (81 Final approvals and 28 Tentative approvals) from USFDA. Shares of Aurobindo Pharma slipped 3.4% to Rs784. The stock opened at Rs830 and made an intra-day high of Rs830 and a low of Rs780. Total traded volumes stood at 0.16mn shares. Venus Remedies surged over 2.5% to Rs221 after the company announced that it secured product patent from South Africe for Potentox. CIPRO (Companies and Intellectual Property Registration Office) has granted third patent in South Africa after Sulbactomax and Tobaracef. This is also the third patent of Potentox within 5months of its grant in South Korea. Shares of Mahindra & Mahindra Financials shot up by over 3% to Rs2769 after nearly 4mn equity shares of the company were transacted on the NSE. The transactions were in two blocks. ~3mn shares changed hands at an average price of Rs267 while ~1mn equity shares were traded at an average price of Rs264. Shares of Indiabulls Real Estate slipped by 2.5% to Rs239. ~9.2% of equity or 39.9mn shares of the company was transacted in three blocks on the BSE. The stock opened at Rs242 and made an intra-day high of Rs248 and a low of Rs231. Total traded volumes stood at 60.7mn shares. In the domestic arena, the Industrial Production of India (IIP) data surged to 9.1% in September as compared to 6% reported in the same month last year. This was more than the market expectation of around 7-7.5%. The government announced the revised August 2009 IIP from 10.4% to 11%. The manufacturing output in September stood at 9.3% as against 6.2% YoY. The electricity generation surged to 7.9% from 4.4% YoY. The mining output expanded by 8.6% versus 5.8% YoY. The basic Goods output growth stood at 6.7% from 5% in Sept 2008. The intermediate Goods output surged 10.8% as against a drop of 2.5% in the same month last year. Capital Goods output growth declined to 12.8% from 20.8% YoY. The consumer Goods output grew by 8.2% versus 7.4% YoY. Consumer Durables output expanded by 22.2% as against 14.7% in the year ago period. The food inflation is 13.68% for the week ended October 31 from 13.39% in the previous week, due to the rising vegetable prices. The price of potatoes has more than doubled, while onions were expensive by about 40% on an annual basis. Meanwhile, prices of bajra increased 3%, fruit and vegetables 2% and jowar, wheat and arhar by 1% each during the week. Among the Sensex pack 19 stocks closed in red while 11 ended in green. The market breadth indicating the overall health of the market remained weak as 1,516 stocks closed in negative while 1,201 stocks closed in positive while 89 stocks remained unchanged in BSE. Losers from the BSE Sensex pack are SBI (3.51%), DLF (3.44%), ICICI Bank (3.20%), Tata Steel (2.75%), Sterlite Inds (2.50%), HDFC (2.47%), Hindalco inds (2.12%), JP Associates (1.99%) and Maruti Suzuki (1.90%). Gainers from the BSE Sensex pack are Reliance Communication (1.87%), Wipro (1.44%), TCS (1.42%), Grasim Inds (0.66%), Infosys (0.61%), ACC (0.45%), Bhel (0.45%) and M&M (0.41%). On the global markets front, the Asian markets that opened before the Indian market, closed in red. Seoul Composite, Hang Seng, Nikkei, Strait Times and Shanghai Composite closed lower by 1.39%, 1.01%, 0.68%, 0.52% and 0.07% at 1,572.73, 22,397.57, 9,804.49, 2,726.24 and 3,172.94 respectively. European markets, which opened after the Indian market, are trading in positive. In London FTSE 100 is higher by 0.28% at 5,281.36 and in Paris the CAC 40 is up by 0.12% at 3,819.14 and in Frankfurt DAX index is trading higher by 0.18% at 5,678.72. BSE REALTY indexwas at 3,937.46 down by 123.78 points or by (3.05%) The main losers were Parsvnath down by (5.13%) at Rs.112.9, Unitech Ltd down by (5.01%) at Rs.84.45, Orbitco down by (3.7%) at Rs.296.4, Dlf Ltd down by (3.44%) at Rs.370.85, Sobha Dev down by (3.19%) at Rs.222.85. BSE METAL index was at 15,286.57 down by 413.4 points or by (2.63%) The main losers were Nmdc Ltd down by (5.19%) at Rs.437.25, Sesa Goa Ltd down by (4.06%) at Rs.339.45, Hind.Zinc down by (3.76%) at Rs.921.6, Jindal Saw down by (3.3%) at Rs.768.4, Ispat Indust down by (2.91%) at Rs.20. BSE BANKEX index was at 10,127.97 down by 263.31 points or by (2.53%) The main losers were Bank Of India down by (3.6%) at Rs.364.15, State Bank Of India down by (3.51%) at Rs.2295.9, Icici Bank L down by (3.2%) at Rs.895.05, Federal Bank down by (3.11%) at Rs.230.75, Yes Bank down by (2.62%) at Rs.266. BSE TECk index was at 2,992.25 up by 22.08 points or by (0.74%) The main gainers were Wire& Wirles up by (20%) at Rs.20.4, Moser Baer up by (5.33%) at Rs.84.05, Dish Tv up by (4.33%) at Rs.41, Hcl Techno up by (3.75%) at Rs.333.75, Idea Cell up by (2.73%) at Rs.50.8. BSE IT index was at 4,673.66 up by 38.44 points or by (0.83%) The main gainers were Moser Baer up by (5.33%) at Rs.84.05, Hcl Techno up by (3.75%) at Rs.333.75, Rolta Ind up by (2.26%) at Rs.178.4, Niit Ltd up by (1.47%) at Rs.65.5, Wipro Ltd. up by (1.44%) at Rs.625.1. Infosys closed up by 0.61% at Rs. 2,322.70. The company's business processing outsourcing subsidiary announced the signing of a definitive agreement to acquire all of the outstanding interests of McCamish Systems LLC, a premier business solution provider, based in Atlanta, Georgia in the United Sates. The acquisition is expected to be completed later this year subject to the satisfaction of certain closing conditions. Other Headlines: Positive on markets: HSBC Sep industrial output @ 9.1% Infosys BPO acquires McCamish Systems SBI steps up focus on auto loans Over 11,000 H-1B slots up for grabs AMD, Intel settle antitrust disputes India listing to cement our commitment: British banking major Standard Chartered Tata Motors resolves compensation issues Feinberg 'concerned' over pay cuts Fair-skin fashion boosts sales of creams United Technologies to buy GE Diamond trade set for boom British Air, Iberia to consider merger Gas Opera:Will RIL directors be quizzed? New Mercedes push to boost profit Walmart profit rises 3.2% AI must save Rs 2,000cr in FY10: Patel Initial jobless claims in US fall Forbes finds Obama, Singh powerful No immediate plan to take Nano abroad Paris youths protest record unemployment PTC may hold minority stake in JV CCEA wants 5% ethanol blending by OMCs Taiwan billionaires send cash home Google 'happy' to be part of UID APEC praises China in stoking growth Geithner optimistic about global economy AirAsia X starts flights to Cochin Policy soon for digital cable TV Simbhaoli Sugars Q4 Net at Rs 23.57 cr Russia keen to build reactors in India UBS fined 8mn pounds India's cement industry was cut to "negative" at BNP Paribas, which said the outlook for prices is likely to stay "challenging" given weakening demand in some markets. The brokerage also lowered its share-price estimate for Ambuja Cements Ltd. (ACEM IN) to 85 rupees from 95 rupees, and cut the target for ACC Ltd. (ACC IN) to 604 rupees from 684 rupees. Ambuja, a unit of the world's second-largest cement maker Holcim Ltd., rose 0.4 percent to 85.35 rupees. ACC, India's biggest cement maker, added 0.7 percent to 737.3 rupees. ABG Infralogistics Ltd. (ABG IN): The Indian construction company aims to bid for a project to upgrade facilities at Mumbai port, C. Babu Rajeev, chief executive officer, said in a telephone interview yesterday. ABG declined 0.6 percent to 169 rupees. Maytas Infra Ltd. (MAY IN): CLSA (Mauritius) Ltd. sold 0.5 percent of the Indian construction company in a single transaction in Mumbai today. The fund sold 300,000 shares of Maytas at 176.01 rupees each, according to data on the Web site of the Bombay Stock Exchange. The shares fell 1 percent to 176.4 rupees. Ranbaxy Laboratories Ltd. (RBXY IN): India's biggest drugmaker said yesterday the World Health Organization included its Indinavir capsules to treat HIV/Aids in its pre- qualification list. Ranbaxy dropped 1.1 percent to 412.1 rupees. Funds investing in the BRIC nations of Brazil, Russia, India and China also had a ninth straight week of inflows, taking in $224 million, according to the statement. Total inflows for the year have reached a record $66.4 billion, according to estimates by Morgan Stanley. "In emerging markets, you've got a secular growth story and a lot more robustness in terms of growth," Lacaille said. ICICI Bank Ltd. will meet investors for a fixed-income update in Asia, the U.S. and the U.K. next week, according to an e-mailed statement. The bank hired BofA Merrill Lynch, Credit Suisse Group AG and HSBC Holdings Plc for the meetings.
INVESTMENT VIEW
Jyothy Labs: Welcome To The FMCG Nation
BSE 532926; CMP Rs 149.00
Let there be no doubts, India is home to just two type of industries-FMCG and Pharma. And both these sectors command high earnings multiples and near assured double digit growth rates. And Jyothy Labs is no exception. FMCG major Jyothy Laboratories Limited reported Net Sales of Rs 130 cr for the quarter ended September 30, 2009, representing 48.8% growth over the corresponding quarter in the previous year, driven by Maxo (Mosquito Coil), Washing Powder, Exo Bar & Exo Scrubber. Operating profit for the quarter at Rs 16.6 cr increased by 151.1% as compared to Q2FY09. Operating margins increased by 519 basis points to 12.75%. This was mainly on account of improvement in the operating margins of Maxo & Exo. Net profit for the quarter was Rs 14.1 cr, a rise by 177% over Q2FY09, with net profit margins improving by 502 bps at 10.9% for the quarter. Earnings per share (Face Value of Re 1) for the quarter was Rs 1.94 as compared to Rs 0.70 in the corresponding quarter the previous year. Other Income for the quarter was reported at Rs 3.1 cr as compared to Rs 2.1 cr in Q2FY09 on account of increase in Fixed Deposit and therefore income by way of FD Interest. Advertising, publicity & sales promotion expenses for the quarter stood at Rs 6.4 cr, a change of 2% year-on-year. Tax rate for the quarter stood at 18.8% as compared to 21.4% in Q2FY09 due to change in product mix. For half year ended 30th Sept 09, Net Sales stood at Rs 249.6 cr as against Rs 185.9 cr in the corresponding period a year ago, an increase of 34.2%. Operating profit for the period reported at Rs 45.5 cr, a change of 53.8%. Net profit for the period at Rs 36.1 cr, increased by 56.1% over last year. Earnings per share (Face Value of Re 1) for the half year was Rs 4.97 as compared to Rs 3.19 in the corresponding period a year ago. Segment-wise results The Soaps & Detergents business, which includes fabric whitener, fabric detergent, dish wash bar and soaps, grew by 49% during the quarter. Segment results for the quarter were up by 121% compared to the corresponding quarter in the previous year. Operating margins for the segment stood at 23.2% as compared to 15.6% in Q2FY09. The Home care segment, which includes mosquito coils, scrubber and incense sticks, registered a yoy growth of 48.4% in revenues. Segment results reported at Rs 2.2 cr as against Rs 0.5 cr in the corresponding quarter last year. Operating margins for this business segment stood at 3.8% as compared to 1.3% in Q2FY09. Business Highlights during the Quarter Exo launched in Maharashtra, Uttar Pradesh, West Bengal and Delhi Region. Advertisement campaign to start from November 2009. Expected to be available in 6 lac plus retail outlets by March 2010 all India. Jyothy Fabricare Services Ltd - Washing Plant is ready and its .FABRIC SPA. flagship brand launch scheduled on November 9, 2009 in Bangalore.
(Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
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