Rupee steady; gilts flat
Mumbai: The rupee ended steady on Thursday at 46.68/69 per dollar, almost unchanged from Wednesday's closing at 46.6950/70.
Dealers said regular dollar inflows drove the domestic currency to touch a high of 46.64, after which some dollar buying from State-run banks brought the currency down a notch around closing. Forward premia started to inch up as importers started buying into the longer end. The market had also been witnessing some hedging on foreign currency loans over the past few weeks, dealers said. The six-month premium closed at 2.35 per cent ( 2.09 per cent) and the one-year premium ended at 2.07 per cent (1.83 per cent)
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M&M outlook positive, build June bull call-spread
Mumbai: The outlook on the M & M stock is positive. The upside price target is Rs 145. The risk is that profit taking may push the stock down to Rs 120. Since the upside is limited, constructing a bull call-spread may be profitable. The call spread will also lower the initial investment, and improve returns. A bull call-spread can be constructed by buying the June 130 calls and selling the June 140 calls. The trading horizon coincides with the option expiration. This means that none of the option greeks can be used to gauge the risk of the spread position. Note that the position will be subject to high directional risk and vega risk. If the stock rises to Rs 145 at the horizon, the spread position will generate 217 per cent returns. If the stock declines to Rs 120, the position will tend towards zero. The forecast volatility at the horizon is not a primary factor in deciding the payoffs. The market lot is 2,500.
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Maruti IPO oversubscribed on its opening day
Mumbai: The initial public offering (IPO) of Maruti Udyog Ltd met with an overwhelming response on the day of its opening on Wednesday. It was oversubscribed 1.46 times at a price averaging 8.6 per cent higher than the floor price of Rs 115 per share, in the evening. The total number of bids received was for 10.5569 crore shares as compared to the offer for sale of 7.22 crore shares, according to information available from the stock exchanges. Of the total bids received, bids for 7.89 crore shares were received through BSE brokers and for 2.65 crore shares through NSE brokers. The maximum number of bids was at Rs 120 per share whereas the floor price was Rs 115 per share. The second highest number of bids was at Rs 122 followed by bids at Rs 118. The syndicate brokers said the maximum bids received at Rs 120 is only indicative and things could change before the issue closes on June 19.
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Tech stocks regain glory; auto, power remain firm
Mumbai: The market gained consecutively for another day on Thursday. The benchmark indices were lifted by the firmness in the tech, power and auto stocks. The BSE Sensex opened firm at 3318.90 points on Thursday and closed the day at 3337.30, higher by 22.70 points than the previous close. It touched an intra-day low of 3318.90 points and a high of 3340.98. Among the Sensex constituents, SBI, HDFC, L&T, Tata Steel, Gujarat Ambuja and Colgate ended the day in the negative territory. Gainers pipped losers with1064 stocks appreciating and 687 stocks declining. The broad based S&P CNX Nifty closed the day higher at 1051.85, gaining 7.75 points from Wednesday's close. The June future contracts of Nifty, Infosys, SBI and Tata Engg were the most active. The June Nifty future closed at 1045 points, a 6.85-point discount to spot. The tech stocks regained their glory by closing with huge gains. The BSETECk index was up by 8.83 points at 673.34 points. Infosys, which has a 7.16-per cent weightage in the Sensex, gained Rs 36.85 at Rs 2,971.50. HCL Infosys gained 15.69 per cent to close at Rs 146.35. Satyam Computer appreciated 6.14 per cent to Rs 187.50; Mastek was up 5.82 per cent to Rs 286.50 and NIIT gained 4.91 per cent to Rs 144.30.
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Saw Pipes jumps on operator strength
Kolkata: The Saw Pipes stock on Thursday surged ahead to record its 52-week high on the major bourses with substantial volume increase. According to market sources, a group of operators has picked up the stock despite the company's clarification to the stock exchanges during the day that it was yet to bag a fresh Rs 122 crore order from Gail India. The stock closed at Rs 136.30 (Rs 122.30) with a traded quantity of 10.60 lakh shares (3.78 lakh shares) on the BSE. On the NSE it finished with a traded volume of 27.73 lakh shares (13.13 lakh shares). Of the traded shares, about 16.20 per cent was presented for delivery on the BSE.

In the early trading hours, the market buzz was that the company has bagged the fresh order from Gail India. Incidentally, Saw Pipes, a Jindal group company, earlier had received an order worth $100 million from Gail India for laying a 610 km gas pipeline between Dahej and Bijapur in Gujarat. The company has also recently participated in a tender for a Rs 30-crore pipeline project linking IOC's refinery at Koyali and Viramgam and Sidhpur in Gujarat, Priya Madani of Anagram Stockbroking pointed out.
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Bailout talk back to lift IDBI
Mumbai: The resurgence of rumours over a Government-sponsored bailout package for Industrial Development Bank of India (IDBI) being finalised brought back renewed interest in the stock. According to dealers, a foreign institutional investor (FII) was seen to be quite active in the stock. Last year, the State-run institution was in deep financial difficulties. However, some relief came in with the Securitisation Act as it can now attach assets of defaulters without approaching the courts. There are also indications that the Government may look at transforming the institution into a universal bank. On the back of these hopes, IDBI rose 6.71 per cent on the BSE to close at Rs 34.20, with 18.21 lakh shares being traded. On the NSE, the stock went up 5.44 per cent to close at Rs 33.90, with 44.57 lakh shares being traded.
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Bonus, strategic tie-up talk lifts J&K Bank
Mumbai: The stock of Jammu & Kashmir Bank (J&K Bank) was in the limelight on the bourses on Thursday, gaining almost ten per cent. And, once again it was speculation about the bank issuing a bonus and taking on a strategic equity partner that fuelled the rally at the counter. J&K Bank's stock price rose 9.7 per cent on the BSE on Thursday to close at Rs 220.45 with 2.89 lakh shares being traded. On the NSE, the stock climbed 9.42 per cent to Rs 220.05 with 9.18 lakh shares being traded. Of the traded shares, 20.82 per cent was presented for delivery on the BSE and 27.58 per cent on the NSE. Apart from benefiting from the general interest in banking sector stocks, speculation about a bonus issue and more importantly, possibility of strategic equity participation has been driving the stock for a considerable period of time.
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Sundaram MF waives entry loads for 3 schemes
Chennai: Sundaram Mutual Fund has waived the entry load on three of its equity schemes for an investment above Rs 25,000, thereby, reducing the cost associated with investment in its equity funds. Sundaram's media release indicated that Sundaram Select Focus, Sundaram Growth and Sundaram Select Midcap Fund have been short listed for waiver of entry load effective June 12. Earlier, these funds carried an entry load of about 1.5 per cent to 2 per cent depending on the value of the investment. Officials at Sundaram Mutual suggested that the waiver was sparked by a recent inflow into equity funds. "The market has not touched a peak, but we have started getting momentum. Entry load is the biggest deterrent," said an official. They indicated that the distribution chain was also pleased with the development. Sundaram Mutual's waiver comes on the heels of a similar move by Kotak Mutual and HSBC Mutual.
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2 stock brokers remanded in Madhavpura case
New Delhi: The Central Bureau of Investigation (CBI) has been granted five days remand of two stockbrokers arrested in Mumbai in connection with the Rs 1,030 crore Madhavpura Mercantile Co-operative Bank (MMCB) scam. The two brokers, Shirish Manyar and Mukesh Babu had been arrested on Wednesday and produced before the Chief Metropolitan Magistrate at Ahmedabad on Thursday, who remanded them to CBI custody till June 17, according to an official release issued here. The CBI also searched the office and residential premises of the two stock brokers at Mumbai on Wednesday and claimed to have found several incriminating documents. Babu is alleged to have connived with the MMCB Chairman, Ramesh Chandra Parekh, and Mumbai-based stock broker Ketan Parekh to illegally borrow and divert Rs 205 crore borrowed from the bank. Similarly, Manyar is alleged to have siphoned off Rs 25 crore from MMCB, the CBI release said.
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