Wednesday, 30 January, 2008

FOMC expectation jitters fretter Asian & Indian mkts

FOMC expectation jitters fretter Asian markets; Indian markets follow suit. Sensex was down 333 points at 17759 while Nifty was down 113 points at 5168. CNX Midcap was down 2.4% while BSE Smallcap was down 2.2%. BSE Oil & Gas was down 4.4%, in which RPL was down 6.1%, BPCL was down 5.6%, ONGC was down 5%, Reliance was down 4.1%. BSE Auto was down 2.3%, in which Tata Motors was down 2.6%, Bajaj Auto was down 4.3%. BSE Capgoods was down 2%, in which ABB was down 4.1%, Siemens was down 3%, L&T was down 1.8%. Other Index gainers were Sun Pharma, up 8.7%, Zee Entertainment, up 4.3%. Other Index losers were Suzlon Energy, down 6.9%, HUL, down 6.2%, REL, down 5.6%, VSNL, down 5.5%, NTPC, down 4.7%. Non Index gainers were Hind Zinc, up 4.6%, Godrej Industries, up 5%, Nicholas Piramal, up 4.7%, Lupin, up 5.9%, Raymond, up 5.5%, S Kumars, 6%, Geodesic Indo, up 10.1%, Visa Steel, up 5%, Renaissance Jewellery, up 13.6%. Non Index losers were JP Associates, down 5.7%, Essar Oil, down 6%, RNRL, down 6.5%, Indiabulls Fin, down 6.4%, Glenmark Pharma, down 6%, Lanco Infratech, down 8.9%, IDBI, down 6.8%, Welspun Gujarat, down 6.6%. NSE Advance Decline ratio stood at 1:4. Total Turnover was at Rs 73,108 Crore Vs Rs 72,874 Crore.

FNO Snapshot:

Short Rollovers in Nifty continue; Short Rollover cost ranges from 30 -35 bps. Nifty Feb Futures ends at a 25 point discount. Next Month Stock Futures OI positions lower by 25-30% compared to last few expiries. Rollover cost in most stock futures continue to remain subdued.

Top Rollover:

GE Shipping: 77%; Adds 3.27 lakh shares in Feb
S Kumars: 76%; Adds 7.8 lakh shares in Feb
Chennai Petro: 74%; Adds 6.33 lakh shares in Feb
Hindlaco: 72%; Adds 34.3 lakh shares in Feb
Ultratech Cement: 72%; Adds 2.98 lakh shares in Feb

Focus Stocks:

RNRL: Down 7%; Adds 62.3 lakh shares in Feb; Rollover at 47%
IFCI: Down 5%; Net unwinding of 16 lakh shares Rollover at 51%
Neyveli Lignite: Down 8.8%; Unwinding pressure; Negative Roll Cost

Fresh Longs/Long Rollover:

Power: REL, CESC
Banks: Allahabad Bank, CBI
Misc: Bombay Rayon, Bhushan Steel

Rollover with negative roll cost:

Large Caps: ONGC, Wipro, BHEL, Bharti Airtel, Cairn, GMR Infra, GSK Pharma, Hero Honda, SBI
Mid Caps: Essar Oil, Everest Kanto, GE Shipping, GTL, JP Hydro

Asian markets today:

Hang Seng down 4%, Kospi ends down 3.8%, Shanghai down 3%, Straits Times down 2.8% from day's high. In Taiwan, FIIs net sell equities worth $ 48 million in today’s trade (Prov).

Global markets today:

UBS reported 4Q net loss of $11.4 bn; after mortgage-related writedowns worth $14 bn
BNP Paribas 4Q profit fell 42%, hurt by $871 m of costs linked to credit market turbulence

Data To Watch:

FOMC decision is expected around 14:15 ET
ADP Employment Report
US 4Q GDP Report (Economists expect growth of 1.2%, down from 4.9% in the 3Q)