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Monday, August 31, 2009

Globus Spirits IPO Note


Globus Spirits IPO Note

Colgate Palmolive


Colgate Palmolive

Stock Recommendations - Aug 31 2009


Stock Recommendations - Aug 31 2009

Maruti Suzuki


Maruti Suzuki

Unitech September 2009 futures at discount


Turnover declines

Nifty September 2009 futures were at 4669.10 at a premium of 7 points as compared to the spot closing of 4662.10. Turnover in NSE's futures & options (F&O) segment was Rs 59,415.63 crore, lower than Rs 60,109.07 crore on Friday, 28 August 2009.

Unitech September 2009 futures were at discount at 105.25 compared to the spot closing of 107.35.

DLF September 2009 futures were at discount at 423 compared to the spot closing of 424.15.

Aban Offshore September 2009 futures were at discount at 1621.40 compared to the spot closing of 1632.25.

In the cash market, the S&P CNX Nifty lost 70.25 points or 1.48% at 4662.10.

Sensex ends on a weak note


The Sensex ended on a weak note dragged by IT, metal, teck, oil & gas and FMCG stocks. It opened with a loss of 110.19 points, at 15,812.15 on Monday tracking discouraging global cues. It continued to trade in the red throughout the day. In the noon trades, the index plunged further on aggressive selling seen in frontliners. Even opening of negative European market also supported the sentiment. Finally, it closed sharply lower touching a low of 15,589.80.

BSE Midcap and Smallcap index rose 0.33% and 0.51% respectively.

India`s Q1 GDP for FY`09-10 stands at 6.1% vs 5.8% (the last quarter of previous financial year).

Among the sectoral indices, BSE IT, Metal and Teck dropped over 2% each, Oil & gas and Capital goods down over 1%, while Realty rose 2.91%, Auto up 1.09%.

European stocks slipped after the Dow Jones Stoxx 600 Index traded at its most expensive level relative to earnings in six years. French benchmark index CAC 40 fell 23.16 points, or 0.63%, to trade 3,669.98 Germany`s benchmark index DAX decreased 35.07 points, or 0.64%, to trade at 5,482.32. UK`s benchmark index FTSE 100 is not trading today.

The Sensex ended the day with a loss of 255.70 points, or 1.61% at 15,666.64 after touching a high of 15,821.35 and a low of 15,589.80. The broad-based NSE Nifty fell 70.25 points, or 1.48% at 4,662.10 after hitting a high of 4,730.85 and a low of 4,635.

Major gainers in the 30-share index were M&M (4.15%), DLF (2.67%), NTPC (1.19%), Maruti Suzuki (1.03%), Grasim Industries (0.90%), and HDFC Bank (0.85%).

On the other hand, Tata Steel (3.26%), Reliance Industries (3.20%), Hindalco (3.11%), Sterlite Industries (2.97%), L&T (2.91%), and Infosys (2.53%) were the major losers in the Sensex.

Overall market breadth was positive. Out of the total 2,880 stocks traded at BSE, 1,648 advanced, 1,154 declined while 78 remained unchanged.

BSE Bulk Deals to Watch - Aug 31 2009


eal Date Scrip Code Company Client Name Deal Type * Quantity Price **
31/8/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 202429 1610.24
31/8/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 202429 1610.78
31/8/2009 530513 ACCURATE TR VINOD SHARES LTD B 20000 76.05
31/8/2009 530513 ACCURATE TR VINOD SHARES LTD S 20000 76.05
31/8/2009 532919 ALLIED COMP PRAVIN DEEPSINH CHAVDA S 1354079 0.60
31/8/2009 531761 AMULYA LEAS KINOFOLK INDUSTRIES LTD. B 59000 23.49
31/8/2009 531761 AMULYA LEAS DHARMENDRA KUMAR S 40400 23.49
31/8/2009 531223 ANJANI SYNTH OM EDUCATION (IT) PVT LTD B 68489 37.56
31/8/2009 532981 ANU LABS PARSVANATH FINCON PRIVATE LIMITED B 1578770 12.03
31/8/2009 532981 ANU LABS PARSVANATH FINCON PRIVATE LIMITED S 1578770 12.04
31/8/2009 505506 AXON INFOTEC KARSANBHAI CHELABHAI PATEL B 5000 19.37
31/8/2009 505506 AXON INFOTEC PRITAM SINGH GILL B 5500 18.78
31/8/2009 505506 AXON INFOTEC TIRATH PRADYUMAN PARIKH S 16400 18.97
31/8/2009 530843 CUPID LTD PREM CABLES PVT LTD B 130612 9.25
31/8/2009 530843 CUPID LTD TIRUMALA IRONS PVT LTD S 148818 9.29
31/8/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 29873 8.92
31/8/2009 517973 DMC INTER ABHINAY KAPOOR S 40000 8.93
31/8/2009 532876 EVERONN SYS B R INTERNATIONAL B 185700 380.05
31/8/2009 532876 EVERONN SYS NANDITA MEHTA S 185700 380.05
31/8/2009 532876 EVERONN SYS B R INTERNATIONAL S 96043 377.73
31/8/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT LTD B 38199 79.91
31/8/2009 532022 FILAT FASH AMRUT SECURITIES LTD. B 81469 80.41
31/8/2009 532022 FILAT FASH PANNA HARESH THAKAR B 35000 81.55
31/8/2009 532022 FILAT FASH WALA D B B 110000 80.00
31/8/2009 532022 FILAT FASH PANNA HARESH THAKAR S 35000 80.00
31/8/2009 532022 FILAT FASH ASHOK JAIN HUF S 50000 80.12
31/8/2009 532022 FILAT FASH AADESH COMMODITIES PRIVATE LTD. S 53911 80.00
31/8/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT LTD S 38199 80.16
31/8/2009 532022 FILAT FASH AMRUT SECURITIES LTD. S 41469 81.09
31/8/2009 532022 FILAT FASH MAHESHCHAND BHUTRA S 50000 81.55
31/8/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 1900000 1.19
31/8/2009 530945 GANGOTRI I&S RAJA MOHAMAD BIN MAIDEN B 70000 26.69
31/8/2009 530945 GANGOTRI I&S GBK RESOURCES PVT LTD S 75000 26.70
31/8/2009 532951 GSS AMERICA DHANANJAY MONEY MANAGEMENT SERVICES B 78018 244.70
31/8/2009 532951 GSS AMERICA XITIJ INVESTMENTS B 75000 243.92
31/8/2009 532951 GSS AMERICA DHANANJAY MONEY MANAGEMENT SERVICES S 78018 244.78
31/8/2009 507960 GUJ HOTELS L NEW COMMERCIAL MILLS CO. LTD B 22000 54.75
31/8/2009 507960 GUJ HOTELS L ORIENTAL PHARMACEUTICAL INDUSTRIES LTD. S 22000 54.75
31/8/2009 511682 IFL PRMOTER ABHINAY KAPOOR B 25000 6.94
31/8/2009 511682 IFL PRMOTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 15614 7.62
31/8/2009 511682 IFL PRMOTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD S 15814 6.99
31/8/2009 511682 IFL PRMOTER DMC INTERNATIONAL LTD S 30369 7.06
31/8/2009 532414 IKF TECHNO ANGEL INFIN PRIVATE LIMITED B 2800765 4.35
31/8/2009 532414 IKF TECHNO JMP SECURITIES PVT LTD B 4032551 4.44
31/8/2009 532414 IKF TECHNO JMP SECURITIES PVT LTD S 3329547 4.44
31/8/2009 511208 IL & FS INVE DHANANJAY MONEY MANAGEMENT SERVICES B 218133 254.41
31/8/2009 511208 IL & FS INVE DHANANJAY MONEY MANAGEMENT SERVICES S 218133 255.46
31/8/2009 509684 INDIA FOILS SAINATH HERBAL CARE MARKETING P.LTD B 222600 16.88
31/8/2009 509684 INDIA FOILS SAINATH HERBAL CARE MARKETING P.LTD S 146970 16.30
31/8/2009 532209 J&K BANK SMALLCAP WORLD FUND INC B 1428900 600.00
31/8/2009 532209 J&K BANK RELIANCE CAPITAL TRUSTEE CO. LTD A/C RELIANCE INFRASTRUCTURE FUND S 816000 600.00
31/8/2009 532209 J&K BANK RELIANCE LIFE INSURANCE CO LTD S 584266 600.00
31/8/2009 523467 JAI MATA GLA ASIM IFTIKHAR S 20000 12.56
31/8/2009 504920 JHAGAD COP JMP SECURITIES PVT LTD B 778129 5.69
31/8/2009 522259 KALIN RAIL N A.A.DOSHI SHARE & STOCK BROKERS LTD B 72603 155.82
31/8/2009 522259 KALIN RAIL N A.A.DOSHI SHARE & STOCK BROKERS LTD S 82923 155.10
31/8/2009 531413 KIRAN PRIN P SAPATRISHI PROPERTIES PVT LTD S 30000 6.93
31/8/2009 531633 LINCOLN PHAR PATEL JAYANTILAL D S 84461 28.50
31/8/2009 524404 MARKSANS JMP SECURITIES PVT LTD B 3217002 6.62
31/8/2009 524404 MARKSANS JMP SECURITIES PVT LTD S 3018014 6.60
31/8/2009 532986 NIRAJ CEMENT WALA VEERAJ BHABHLUSHAI B 55876 69.70
31/8/2009 590057 NORTHGATE TE CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 223884 40.45
31/8/2009 531996 ODYSSEY CORP SUVIDHA SECURITIES PVT LTD B 25300 27.55
31/8/2009 532780 PARSVNATH AMIT BUSINESS PVT LTD B 980000 125.45
31/8/2009 532780 PARSVNATH WITHAL COMMERCIAL PVT LTD S 965000 125.44
31/8/2009 513519 PITTI LAMINA RAHUL DOSHI B 57010 41.45
31/8/2009 531611 PRRANET INDU CHANDRAKANT B SHAH B 576100 13.58
31/8/2009 511652 RAM KAASHYAP SETU SECURITIES PVT LTD B 76100 16.77
31/8/2009 511652 RAM KAASHYAP HITESH SHASHIKANT JHAVERI B 40000 17.46
31/8/2009 511652 RAM KAASHYAP SETU SECURITIES PVT LTD S 103100 17.45
31/8/2009 511652 RAM KAASHYAP HITEN BHUPATRAI MEHTA S 34000 16.89
31/8/2009 590077 RANKLIN SOLU SMITHA MANDAVALLI B 54831 39.84
31/8/2009 590077 RANKLIN SOLU AMULAKHBHAI NAGINBHAI VALANI S 53700 39.88
31/8/2009 526407 RIT PRO IND RAJASTHAN GLOBAL SECURITIES LTD B 1391876 20.00
31/8/2009 526407 RIT PRO IND AMULYA LEASING AND FINANCE LTD S 1354974 20.00
31/8/2009 513515 S R INDUSTRI PUNEET JAIN B 75362 4.28
31/8/2009 500389 SILVERLINE T GRD SECURITIES PVT. LTD B 422902 7.24
31/8/2009 512413 SPECTACLE KISHORE B CHAUHAN B 261122 42.49
31/8/2009 512413 SPECTACLE KISHORE B CHAUHAN S 260214 42.47
31/8/2009 512048 SPLASH MEDIA MADINA GULAMALI GHEEWALA B 10000 176.20
31/8/2009 512048 SPLASH MEDIA SUVIDHA SECURITIES PVT LTD S 9500 176.20
31/8/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. B 84381 23.80
31/8/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. S 79532 23.80
31/8/2009 530611 STURDY INDS SAURABH PORTFOLIOS PVT. LTD. S 50000 23.80
31/8/2009 530611 STURDY INDS PRECISE TOOLS AND EQUIPMENTS PVT LTD. S 50000 23.80
31/8/2009 570001 TATAMOTORS-DVR-A-ORDY IFCI LTD S 675050 360.00
31/8/2009 590093 TRIMURTHI DR SHOBHA IMTIYAZ DESAI B 55000 33.05
31/8/2009 531874 VENUS VENT KAUSHIK RAJNIKANT MEHTA B 45000 44.94
31/8/2009 531874 VENUS VENT HARISH TARSEM MITTAL S 35000 44.88
31/8/2009 531249 WELL PACK PA PANDYA HARDIK M B 39254 187.24
31/8/2009 531249 WELL PACK PA PANDYA HARDIK M S 34014 186.96
31/8/2009 530091 ZYDEN GENTEC HITESH SHASHIKANT JHAVERI S 206720 3.47

NSE Bulk Deal Watch - Aug 31 2009


Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
31-Aug-09,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,424148,1603.42,-
31-Aug-09,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2128240,4.42,-
31-Aug-09,ICSA,ICSA (India) Limited,OP-EMERGING ASIA FUND (NON-UCITS) ,BUY,313263,205.04,-
31-Aug-09,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9538216,22.79,-
31-Aug-09,MARKSANS,Marksans Pharma Limited,JMP SECURITIES PVT LTD,BUY,2352635,6.56,-
31-Aug-09,ORBITCORP,Orbit Corporation Limited,BLACKSTONE ASIA ADVISORS LLC A/C INDIA FUND INC.,BUY,425000,188.6,-
31-Aug-09,PSL,PSL Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,260000,157.7,-
31-Aug-09,SB&TINTL,SB&T International Ltd,ASHOK HOTCHAND ADVANI,BUY,100000,12.2,-
31-Aug-09,TATAMTRDVR,Tata Motors DVR 'A' Ord,ALMONDZ CAPITAL & MANAGEMENT,BUY,988210,362.42,-
31-Aug-09,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,422948,1603.76,-
31-Aug-09,BIRLAPOWER,Birla Power Solutions Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1990202,4.42,-
31-Aug-09,GMRFER,GMR Ferro Alloys & Indust,SATABDI INVESTMENT PVT LTD,SELL,140000,27.74,-
31-Aug-09,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9602301,22.88,-
31-Aug-09,MARKSANS,Marksans Pharma Limited,JMP SECURITIES PVT LTD,SELL,1827635,6.56,-
31-Aug-09,PSL,PSL Limited,CLSA (MAURITIUS) LIMITED,SELL,260000,157.7,-
31-Aug-09,TATAMTRDVR,Tata Motors DVR 'A' Ord,ALMONDZ CAPITAL & MANAGEMENT,SELL,22416,368.22,-
31-Aug-09,TATAMTRDVR,Tata Motors DVR 'A' Ord,IFCI LTD,SELL,825254,363.04,-
31-Aug-09,TATAMTRDVR,Tata Motors DVR 'A' Ord,IFCI LTD.,SELL,325025,363.98,-

Post Session Commentary - Aug 31 2009


The Indian market extended its losses towards the closing to end the session on negative note on sustained selling pressure during the trading. Unfavorable cues from the Asian markets along with negative European stocks took huge beating on the bourses. Chinese stocks plunged 6.74% on continued worries about the impact of fragile bank lending on the economy. Lower US Index futures also fueled the negative sentiments that off set the positive news from domestic arena that India’s economic growth accelerated for the first time since 2007. India’s gross domestic product expanded 6.1% in the first quarter ended June 30 2009 from 7.8% of the corresponding period of previous year. The BSE Sensex ended below 15,700 level and NSE Nifty closed below 4,700 mark.

Market opened the first day week on downbeat note tracking weak Asian stocks. The US stock markets closed mixed on Friday, despite some positive news from technology companies. The day started with better than expected earnings announcement from key tech players like Dell, Marvell Tech and Intel. However, it could not last longer amidst profit booking pressures. Further, Indian stocks continued to extend losses on strong selling pressure over the ground. Though, market tried to recover on 6.1% rise in country’s GDP for the first quarter but was unable to gather the momentum and continued to remain lower. Market weakened further to close the day in red in line with sharp fall in Chinese stocks. From the sectoral front, IT, Metal, Teck, Oil & Gas, Capital Goods, FMCG and Pharma stocks contributed to most of the selling pressure. However, Relaty and Auto stocks remained in limelight as witnessed most of the buying from these baskets. BSE Midcap and Smallcap stocks also followed the same trend.

Among the Sensex pack 22 stocks ended in red territory and 8 in green territory. The market breadth indicating the overall health of the market remained positive as 1648 stocks closed in green while 1154 stocks closed in red and 78 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 255.70 or (1.61%) points at 15,666.64 and NSE Nifty ended down by 70.25 points or (1.48%) at 4,662.10. BSE Mid Caps and Small Caps closed with gains of 19.27 and 35.27 points at 5,882.97 and 6,997.03 respectively. The BSE Sensex touched intraday high of 15,821.35 and intraday low of 15,589.80.

Losers from the BSE Sensex pack are Tata Steel (3.26%), Reliance (3.20%), Hincalco (3.11%), Sterlite Industries (2.97%), L&T Ltd (2.91%), Infosys Tech (2.53%), TCS Ltd (2.50%), Wipro Ltd (2.37%), ITC Ltd (2.34%), Bharti Airtel (2.32%), SBI (2.16%), Reliance Infra (1.95%), RCom (1.86%), ICICI Bank (1.85%) and JP Associates (1.50%).

Gainers from the BSE Sensex pack are M&M Ltd (4.15%), DLF Ltd (2.67%), NTPC Ltd (1.19%), Maruti Suzuki (1.03%), Grasim Industries (0.90%) and HDFC Bank (0.85%).

India’s economic growth accelerated for the first time since 2007. Gross domestic product expanded 6.1% in the first quarter ended June 30 2009 from 7.8% of the corresponding period of previous year. GDP growth was 5.8% during the previous quarter, according to the Central Statistical Organization.

Meanwhile, industry growth stood at 5% as against 6% of previous year and mining growth is at 7.9% as compared to 4.6% of last year. Going ahead, Farm sector growth stood at 2.4% against 3% of previous year and manufacturing growth stood at 3.4% as compared with 5.5% of last year. In addition, construction sector expanded at 7.1% as against 8.4% of corresponding period of preceding year and services sector grew 7.8% from 10.2% of previous year.

On the global markets front, the Asian markets that opened before the Indian market, ended lower. Shanghai Composite, Hang Seng, Nikkei 225, Singapore''s Straits Times Index and Seoul Composite closed lower by 192.94, 374.43, 41.61, 37.41 and 16.09 points at 2,667.75, 19,724.19, 10,492.53, 2,605.39 and 1,591.85 respectively.

European markets, which opened after the Indian market, are trading in red. In Frankfurt the DAX index is trading down by 40.25 points at 5,477.10 whereas London''s market was closed for a holiday.

The BSE IT index tumbled (2.26%) or 96.41 points at 4,172.52. Main losers are Infosys Tech (2.53%), TCS Ltd (2.50%), Finac Tech (2.41%), Wipro Ltd (2.37%) and HCL Tech (2.25%).

The BSE Metal index dropped by (2.18%) or 276.35 points at 12,382.92. Losers are Welspan Gujarat SR (4.50%), Tata Steel (3.26%), Hindalco (3.11%), Sterlite Industries (2.97%) and Jindal Steel (2.56%).

The BSE Teck index decreased by (2.10%) or 65.30 points at 3,046.83. Losers are Zee News (5.05%), Zee Ent (2.72%), Infosys Tech (2.53%), TCS Ltd (2.50%) and Finac Tech (2.41%).

The BSE Oil & Gas index closed lower by (1.71%) or 170.11 points at 9,774.73. Main losers are Reliance (3.20%), Reliance Pet (2.66%), Gail India (2.32%) and Essar Oil Ltd (1.29%).

The BSE Capital Goods index ended down by (1.35%) or 180.22 points at 1,151.15 as L&T Ltd (2.91%), SKF India (2.33%), Kalpat Power T (2.14%), Everest Kanto (1.84%) and Punj Lloyd (1.28%) ended in red.

The BSE Realty index gained (2.91%) or 124.65 points at 4,413.59. Gainers are Unitech Ltd (7.72%), Ackruti (5.97%), DLF Ltd (2.67%), Indiabull Real (1.09%) and Parsvnath (0.93%).

Sterlite Industries (India) Ltd slipped 2.97% after copper prices in Shanghai declined more than 2% with investors becoming cautious about the outlook for economic recovery.

Bilcare Ltd fell 1.50% after the company’s board approved raising up to $35 million via global depository receipts.

Tata Consultancy Services (TCS) dropped by 2.50%. The company announced that it had signed a contract with Saudi Arabia''s Chamber of Commerce of the Eastern Region for executing an Oracle ERP implementation project.

Subex Ltd decreased by 1.23%. The company released Rocware 2.0 for Communication Service Providers (CSPs) to assist them with revenue protection, cost management and assured operations.

Cairn India gained 2.02%. The company has started production from the world class Mangala Field in Rajasthan. Mangala is the largest of 25 discoveries made by Cairn in the Barmer Basin in Block R J-ON-90/1. The Mangala field was dedicated to the Nation by tho Hon''ble Prime Minister of India, Dr. Manmohan Singh, at the Mangala Processing Terminal, Barmer, Rajaathan.

Supreme Infrastructure India Ltd ended higher by 9.99%. The company has informed that the Company has awarded new work orders from Ramprashta Promoters & Developers (Pvt) Ltd for construction of Multistoried EDGE Towers Complex at Ramprastha City in Sector 37-D, Gurgaon, Haryana.

Shanghai led the regional pull down while Sensex, Sydney, Seoul follows

Stock market in Asian region pulled down by plunge in Chinese stocks on Monday, 31 August 2009, as Chinese stocks tumbled 5% to a three-month low, weighing on Asian stocks and sapping investor willingness to put money at risk. Volatility in Shanghai curbed risk-taking attitude in investors searching for bigger returns.

On Wall Street, stocks finished Friday's session mixed, as technology shares rose on Intel's rosy outlook while blue chips faltered. After advancing as many as 31 points to start the day, the Nasdaq Composite turned negative at midday before ultimately finishing higher. The tech-heavy index tacked on 1.04 points, or 0.05% to 2028.77. Meanwhile, the Dow Jones Industrial Average finished lower, losing 36.43 points, or 0.38%, at 9544.20, halting its win streak at eight sessions. The S&P 500 dipped 2.05 points, or 0.2%, to 1028.93.

In the commodity market, crude oil fell for the first time in three days in New York as concern over above-average distillate fuel stockpiles capped a rally built on speculation that demand will increase as the global economy recovers.

Crude oil for October delivery fell as much as $1.19, or 1.6 percent, to $71.55 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It traded at $71.60 at 9:20 a.m. in London, having earlier gained as much as 62 cents, or 0.9%.

Brent crude for October fell as much as $1.45, or 2%, to $71.34 a barrel on the London-based ICE Futures Europe exchange and traded at $71.42 at 9:24 London time.

Gold rose for a fifth day, the longest run of increases in more than a month, as the dollar weakened on signs a recovery in global economies may be accelerating. Gold for immediate delivery rose as much as 0.6% to $960.75 an ounce and last traded at $955.61 at 1:46 p.m. in Singapore

In the currency market, Japanese yen surges as the week start following broad based weakness in Asian equity markets. Opposition party DPJ won the Japanese national election by getting 308 of 480 lower-house seats. Yen crosses are broadly lower resuming recent fall. The US dollar got a lift but the strength is limited. The Japanese yen was quoted at 92.77 per greenback, down from Friday’s quote of 93.60 yen.

The Hong Kong dollar was trading at HK$ 7.7508 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar fell on Monday as a weaker equity market in China lowered demand for high-yielding currencies. At the local close, the Australian dollar was trading at $US0.8370, down 0.4% from Friday's close of $US0.8407. During local session, the local unit moved between $US0.8369 and $US0.8443.

In Wellington trade, the New Zealand dollar ended lower today even though the National Bank Business Outlook survey showed a big jump in business confidence. It was at US68.25c at 5pm from US68.43c at 8am and US68.65c at 5pm on Friday.

The South Korea won ended at 1,248.9 won to the U.S. dollar, down 4.5 won from Friday's close, as foreign investors reduced their holdings of local shares.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar as it closed trading at NT$ 32.9230, 0.0020 higher from Friday’s close of NT$32.9250.

Coming back in equities, Japanese stocks gave up an early rally to turn negative Monday, in the first trading session after Japanese voters handed the opposition Democratic Party of Japan a landslide victory over the long-ruling Liberal Democratic Party.

In Japan, shares market slipped after hitting an 11-month intraday high after an election win by the opposition party. The DPJ won 308 seats, a vast majority of the 480 seats in the lower house of parliament, compared with 115 seats previously. The LDP’s representation fell to 119 seats from 300, and the LDP's coalition partner New Komeito’s seats fell to 21 from 31.

At the closing bell, the Nikkei 225 Stock Average index tumbled 41.61 points, or 0.4% from Friday to 10,492.53; meanwhile the broader Topix index shed 3.58 points, or 0.37%, to 965.73.

On the economic front, the Ministry of Economy, Trade and Industry said Monday Japan’s factory output rose for the fifth straight month in July as manufacturers gained confidence in the country’s nascent recovery. Industrial production climbed 1.9% in July 2009 from the previous month. Manufacturers expect factory output to continue climbing in the months ahead, the ministry said. It predicts industrial production to rise 2.4% in August and 3.2% in September.

The Trade Ministry also said Japan’s retail sales fell for an 11th month in July, slid 2.5% from a year earlier, as poor weather and a worsening job market kept shoppers at home.

The Ministry of Health, Labor and Welfare said that total cash earnings of wage earners in Japan dropped 4.8% in July, year-on-year, slower than a revised 7% drop in the preceding month. The Natural Resources and Energy Agency said Japanese crude oil imports fell 18.1% in July from a year earlier to 109.45 million barrels.

In Mainland China, share market extending last week plunge as investors unload stocks across the board on continued concerns over supply, outlook for credit growth, and economy. Market participant sentiments turned fragile amid worries about market liquidity as many more companies still to conduct fund-raising moves in market and a talk of slowdown in new lending growth in August 2009. Investors sold stocks on concerns that banks will cut back on the lavish lending that helped push shares higher earlier in the year. At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, dropped 192.94 points, or 6.74% to 2,667.75.

In Hong Kong, benchmark index succumbed with steep losses across the sector on tracking Shanghai’s market that was hit with another bout of heavy selling amid worries about liquidity in the market drying up, sapped investor willingness to put money at risk. Market participant sentiments turned fragile on continued concerns over shares supply, outlook for credit growth, and economy. The Hang Seng Index dropped 374.43 points, or 1.86%, to 19,724.19, while the Hang Seng China Enterprise dived 155.72 points, or 1.3, to 11,278.26.

In Australia, the stocks dropped after spending the session oscillating in and out of positive territory, dragged down by the big miners and as weak lead from offshore market and in anticipation of the Reserve Bank of Australia interest rate decision this week. At the closing bell, the benchmark S&P/ASX200 index has lost 10.5 points, or 0.23%, to 4,479.1, meanwhile the broader All Ordinaries slipped 11.8 points, or 0.26%, to 4,484.19.

On the economic front, the Reserve Bank of Australia said in a report that total credit provided to the private sector in Australia was up 0.2% in July 2009, after an increase of 0.1% previous month. On an annual basis, private sector credit climbed 3% after the 3.4% increase in June.

Housing credit increased 0.6% in July, following an increase of 0.6% in June. On year, housing credit rose 7.3%. Personal credit declined 0.2% in July, following a fall of 0.3% in June. On year, personal credit fell 6.4%. Business credit declined 0.3% in July, following a fall of 0.6% over June. On year, business credit declined 0.7%.

The Housing Industry Association said that new home sales increased a disappointing 0.1% in July. The figure increased 0.5% the previous month. The Australian Bureau of Statistics said inventories in Australia were down a seasonally adjusted 3.4% in the second quarter of 2009 compared to the first quarter ended March 2009.

In New Zealand, stock market commenced the first trading day of the week in the negative terrain after ending positive on Friday. The share market trailed the US stocks that ended dull on Friday. The NZX50 fell 0.37% or 11.33 points to 3098.00. The NZX 15 decreased 1.06% or 59.85 points to close at 5669.69.

On the economic front, according to Reserve Bank governor Alan Bollard, the NZ economy is now recovering but the structure of that recovery will be important. He also said that the global economy was also at a turning point and would have a fragile recovery. However, as per the RBNZ chief, the New Zealand economy is recovering, and for us really, it's not just the size of the recovery, it's the quality we'll be concerned about.

In South Korea, stocks closed lower as recent falls in the Chinese market provoked worries about a possible correction The benchmark Korea Composite Stock Price Index (KOSPI) declined 16.09 points to end at 1,591.85.

In Singapore, the stock market dropped on broad based sell off across the sector, on tracking weak cues from Shanghai market and other Asian bourses. Major blue cheap and banks led the decliners amid uncertainties about the pace of the economic recovery after data from the Monetary Authority of Singapore showed lending growth slowed to 2.3% in July compared with the year before. The blue chip Straits Times Index tumbled 49.90 points, or 1.89%, to 2,592.90.

In Taiwan, stock market stretched its Friday fun turning it to Monday mania as it ended the day at one-week closing high, with PC makers such as Compal leading gains after strong quarterly earnings. However, the gains were capped by the events like declines in Chinese stocks, worries of a possible cabinet reshuffle, the Dalai Lama's visit, media reports playing up the threat posed by the H1N1 influenza which kept investors on the sidelines.

The benchmark Taiex share index stretched its winning streak in second session as its finished the session higher by 16.09 points or 0.24% in a day, closing the day at 6825.95, highest closing since 24 August 2009 when market closed at 6838.25.

In India, the key benchmark indices edged lower as a setback in Chinese stocks offset optimism arising from India's strong Q1 GDP growth data. The BSE 30-share Sensex was down 255.70 points or 1.61% to 15,666.64. The S&P CNX Nifty was down 70.25 points or 1.48% to 4,662.10.

On the economic front, India’s gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation showed. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%. Agriculture, forestry and fishing, by comparison, rose just 2.4% on year. Manufacturing was up 3.4% on year in the April-June 2009 quarter.

The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009. Planning Comission deputy chairman Montek Singh Ahluwalia the worst may be over for the economy. He said the economy is expected to improve in the coming quarters. Finance Secretary Ashok Chawla said the economy is slowly bouncing back.

Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.22% or 2.63 points to 1174.27 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2341.54.

In other regional market, European stocks were trading lower on Monday, amid somewhat lower volumes with London closed for a holiday, as China's stock markets fell more than 5% on supply worries. The French CAC-40 index slid 0.5% to 3,672.76; the German DAX index fell 0.9% to 5,464.58.

Looking ahead, focus will be on Euro zone CPI estimate that is expected to show - reading for August. In the late evening we have Canadian GDP and Chicago PMI.

Market snaps seven day winning streak


The key benchmark indices took a breather after strong gains in the past seven trading sessions as a setback in Chinese stocks offset optimism arising from India's strong Q1 GDP growth data. The BSE 30-share Sensex fell 255.70 points or 1.61%, off close to 155 points from the day's high and up close to 80 points from the day's low. IT, metal, FMCG, capital goods stocks fell. Auto, realty stocks gained. Index heavyweights Reliance Industries (RIL), L&T and Infosys slumped.

The market breadth turned positive from negative in early trade as buying was witnessed in select mid-cap and small-cap stocks.

As per provisional data, foreign funds today, 31 August 2009, offloaded equities worth a net Rs 270.85 crore. Domestic funds bought shares worth a net Rs 18.65 crore

Intraday volatility was high. The market recovered soon after a weak opening triggered by a setback in Chinese stocks. Expectation that the latest data will show a further recovery in the economy, triggered the intraday recovery. But the intraday recovery could not be sustained. The market weakened again in morning trading. The Sensex cut losses once again after a strong Q1 GDP growth data hit the market at about 11:00 IST.

The intraday recovery gathered further strength in early afternoon trade. But the market weakened again in early afternoon trade on sharp slide in Chinese stocks and lower US index futures. The Sensex cut losses after tumbling to a fresh intraday low in afternoon trade. The market tumbled to a fresh intraday low in mid-afternoon trade before cutting losses.

India's gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation announced at 11:00 IST today, 31 August 2009, showed. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%. Agriculture, forestry and fishing, by comparison, rose just 2.4% on year. Manufacturing was up 3.4% on year in the April-June 2009 quarter.

The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009. Planning Comission deputy chairman Montek Singh Ahluwalia the worst may be over for the economy. He said the economy is expected to improve in the coming quarters. Finance Secretary Ashok Chawla said the economy is slowly bouncing back.

European shares fell on Monday, with the leading index tracking sharp losses in Chinese stocks. Key benchmark indices in Germany and France fell by between 0.64% to 0.67%. London markets are closed for a holiday.

Chinese shares slumped 6.74% on Monday, 31 August 2009, on continued concerns about the impact of weakening bank lending on the economy. Reports that Metallurgical Corp. of China will start roadshows for a 16.85 billion yuan ($2.46 billion) initial public offering added to concerns about liquidity, also weighing on investor sentiment. Hong Kong's Hang Seng was down 1.86%.

The news came amid reports that new yuan loans made by Chinese lenders in August 2009 were likely to fall below 300 billion yuan, from 356 billion yuan in July 2009 and 1.53 trillion yuan in June 2009.

Japan's Nikeei 225 average was down 0.4%, reversing an initial rise of more than 2% to its highest intraday level for this year. The early gains were fueled by the Democratic Party of Japan win's of more than 300 of the 480 seats in the Lower House on Sunday, 30 August 2009, pushing out the Liberal Democratic Party after 54 years of nearly uninterrupted rule.

Shares of Japanese exporters of cars and electronics declined as the yen surged against the euro and dollar after the election outcome. Government reports showed factory output in Japan rose at the slowest pace in four months in July 2009 and retail sales fell, underscoring the challenge for the incoming government to sustain an economic recovery.

In other Asian markets, the key benchmark indices in Singapore, South Korea were down by between 1% to 1.89%. But Taiwan's Taiwan Weighted rose 0.24%.

Trading in US index futures indicated Dow could fall 60 points at the opening bell on Monday, 31 August 2009.

US stocks fell on Friday, 28 August 2009 despite some positive news from technology companies. The Dow slipped 36.43 points, or 0.4%, to 9,544.20. The S&P 500 index fell 2.05 points, or 0.3%, to 1,027.76, while Nasdaq Composite Index rose 1.04 points, or 0.1%, to 2,028.77.

Economic news indicated tough times for consumers. The Michigan consumer survey said its final index of confidence for August fell to 65.7 from 66.0 in July. This is the lowest number since April. It was however better than expectations.

Personal income for July 2009 was flat and spending was up 0.2%, while core personal consumption expenditures were up 0.1%. Each was essentially in-line with expectations.

Meanwhile, there were upside earnings surprises from Dell and Marvell Tech, along with strong revenue forecast from Intel.

Closer home, there has been a revival in monsoon rains this month. The monsoon rains were 5% below average in the week to 26 August 2009, coming in close to normal for the second successive week after a prolonged dry spell, the Meteorological Department said on 27 August 2009. Rainfall since 1 June to 26 August was 25% below normal, improving slightly from a deficit of 26% a week earlier.

India's monsoon rains, a quarter short of average since 1 June are likely to improve in September to end the four-month season with a total deficit of 20%, the head of the weather office said on Friday. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual monsoon rains running between June to September.

India's deficient monsoons may affect the inflation outlook more than growth prospects, the Reserve Bank of India (RBI) said on 28 August 2009 adding that prolonged expansionary fiscal and monetary policies threatened to push up prices and eventually crimp growth. In its quarterly review of the monetary policy in late July 2009, RBI said it expects inflation to scale up to around 5% by March 2010.

The BSE 30-share Sensex fell 255.70 points or 1.61% to 15,666.64. The Sensex fell 100.95 points at the day's high of 15821.35 in early afternoon trade. The Sensex fell 332.54 points at the day's low of 15,589.80 in mid-afternoon trade.

The S&P CNX Nifty declined 70.25 points or 1.48% to 4,662.10. Nifty September 2009 futures were at 4669.10 at a premium of 7 points as compared to the spot closing of 4662.10. Turnover in NSE's futures & options (F&O) segment was Rs 59,415.63 crore, lower than Rs 60,109.07 crore on Friday, 28 August 2009.

BSE clocked a turnover of Rs 6612 crore, lower than Rs 6581.27 crore on Friday, 28 August 2009.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1639 shares advanced as compared with 1154 that declined. A total of 77 shares remained unchanged. The breadth turned positive from negative breadth in early trade.

Among the 30-member Sensex pack, 22 fell while rest rose.

The market had urged in the past seven days supported by positive global cues. The BSE Sensex jumped 1112.70 points or 7.51% in seven trading sessions to settle at 15,922.34 on Friday, 28 August 2009 from 14,809.64 on 19 August 2009.

Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 6019.33 points or 62.39% in calendar year 2009 as on 31 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7506.24 points or 91.98% as on 31 August 2009. FII inflow in calendar year 2009 totaled Rs 40,284 crore (till 28 August 2009).

Coming back to today's trade, the BSE Mid-Cap index rose 0.33% and the BSE Small-Cap index rose 0.51%. Both the indices outperformed the Sensex.

The BSE Realty index (up 2.91%), the BSE Auto index (up 1.09%), the BSE PSU index (up 0.01%), the BSE Consumer Durables index (down 0.11%), the BSE Power index (down 0.35%), the BSE Bankex (down 0.7%), the BSE Healthcare index (down 0.81%), the BSE FMCG index (down 1.29%), the BSE Capital Goods index (down 1.35%), outperformed the Sensex.

The BSE IT index (down 2.26%), the BSE Metal index (down 2.18%), the BSE Teck index (down 2.1%), the BSE Oil & Gas index (down 1.71%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 3.2% to Rs 2004.10 on profit taking after recent gains. The Supreme Court, from 20 October 2009 will hear the Krishna-Godavari gas dispute between Mukesh Ambani's Reliance Industries (RIL) and Anil Ambani's Reliance Natural Resources (RNRL) for its final disposal. A bench headed by Chief Justice KG Balakrishnan on Friday fixed the date for an early decision in the case.

In June, the Bombay High Court had ruled that Reliance Industries should supply gas to Reliance Natural at $2.34 per million metric British thermal unit, nearly half the $4.20 price in an interim court order in January 2009.

PSU OMCs rose on fall in crude oil prices. BPCL, HPCL and Indian Oil Corporation rose by between 0.61% to 3.52%. Lower oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Crude oil fell today after last two days' gains. Crude oil for October delivery fell 2.2% to $ 71.14 a barrel on the New York Mercantile Exchange.

Cairn India rose 2.02% after the company on Saturday, 29 August 2009 began pumping crude from its Mangala oil field in the Rajasthan block.

India's largest oil exploration firm by market capitalisation ONGC rose 0.51% after the company on Friday, 28 August 2009, said it has discovered gas at a block in the north-eastern state of Tripura. The gas contains up to 96.3% methane. The announcement was made after trading hours on Friday

Auto stocks gained on revival in India's annual monsoon. Auto firms derive substantial revenue from rural sector. Indian largest tractor maker by sales Mahindra & Mahindra surged 4.15%. As per recent reports, the company is looking at options to buy a US facility for assembling its pickup trucks that would save it an import penalty.

Maruti Suzuki, India's top car maker by sales, rose 1.03%. The company expects its sales to rise more than 10% till October 2009, its chairman said on Friday, after growing sales at over 14% during four months to July 2009.

India's largest truck marker by sales Tata Motors was flat at Rs 489.35. The company reported a consolidated net loss of Rs 328.78 crore in Q1 June 2009 as compared to a net profit of Rs 719.69 crore in Q1 June 2008. The results were announced in late trade today.

India's largest motorbike maker by sales Hero Honda Motors rose 0.49%.

IT stocks fell for the second straight day after US confidence index fell to its lowest level in four months. US is the biggest market for IT firms. US consumer confidence fell to its lowest in four months in August 2009 on worries over high unemployment and dismal personal finances, though the mood improved from earlier this month, a survey showed on Friday, 31 August 2009. India's third largest software services exporter Wipro fell 2.37% as its ADR fell 1.67% on Friday.

India's second largest software services exporter Infosys Technologies fell 2.53% as its ADR fell 1.32% on Friday. A foreign brokerage, last week, reduced its rating on the stock 'underweight' from 'equal-weight', saying the stock's valuation is 'rich'. India's largest software services exporter TCS fell 2.5%.

In one of the largest deals, the top-three Indian vendors Infosys, TCS and Wipro along with IBM Corp bagged a slice of the $1.5 billion five year information technology (IT) outsourcing contract from British Petroleum Pcl (BP), one of the world's largest integrated oil and gas companies. The companies announced the BP deal last week.

Metal stocks fell as Shanghai copper fell more than 2% on Monday, after hitting a fresh 11-month high in early trade, as investors became cautious about the outlook for economic recovery.

Steel Authority of India, Jindal Steel & Power, Sterlite Industries, National Aluminum Company, Hindalco Industries fell by between 0.53% to 3.11%.

India's largest steel maker by sales Tata Steel fell 3.26%. Tata Steel reported a net loss of Rs 2208.68 crore in Q1 June 2009 on a consolidated basis compared with a net profit of Rs 3900.90 crore in Q1 June 2008. Total income fell 46% to Rs 23496.21 crore in Q1 June 2009 over Q1 June 2008. The result was announced during market hours on Thursday, 27 August 2009.

Construction and capital goods fell on profit taking after recent gains. Higher government spending on infrastructure sector in 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction and capital goods firms.

Bharat Heavy Electricals, Crompton Greaves, BEML, Punj Lloyd fell by between 0.39% to 1.28 %.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 2.91%. The company's chairman A M Naik said on Friday, 28 August 2009, the company expects to make a profit of up to Rs 250 crore on its shares in outsourcer Mahindra Satyam. He added that L&T is expected to sell Mahindra Satyam shares by March next year.

L&T had built a 12% stake in Mahindra Satyam, formerly Satyam Computer, before losing out in the race for a controlling stake in the firm earlier this year to Tech Mahindra.

From the construction space, Era Infra Engineering, Hindustan Construction Company, JP Associates, Valecha Engineering fell by between 0.5% to 2.15%.

Cement stocks edged higher ahead of the monthly dispatchment figures for the month of August 2009 due in the next two days. UltraTech Cement, Ambuja Cements, Grasim Industries, Birla Corporation rose by between 0.5% to 2.06%.

FMCG stocks dipped on concerns deficient monsoon rains may crimp rural sales. FMCG firms derive a substantial revenue from rural India. ITC, Nestle India, Marico, Hindustan Unilever, Tata Tea, United Breweries fell by between 0.1% to 2.34%.

India's largest mobile phone company by sales Bharti Airtel fell 2.32% on profit taking after recent rally. Last week, Bharti and South Africa's MTN extended, for a second time, talks aimed at creating the world's third-biggest mobile company.

The two firms agreed to extend talks to 30 September 2009, after previously extending discussions by a month to 31 August, as they negotiate a $23 billion cash and share-swap deal aimed at an eventual full merger.

Tata Power Company fell 2.23% extending Friday's fall even as consolidated net profit rose 160.47% to Rs 572.65 crore on 15.71% rise in total income to Rs 4781.89 crore in Q1 june 2009 over Q1 June 2008. The results were announced on Friday, 28 August 2009.

Other power stocks, CESC, Reliance Infrastructure, Torrent Power fell by between 1.95% to 2.63%.

But, India's largest power generation firm by sale NTPC rose 1.19% on reports the government is looking at divesting 10% stake in the largest power generation company. NTPC may also raise fresh equity to part finance its expansion programme. According to reports, NTPC is likely to hit the capital market with a follow-on public offer to raise nearly Rs 6,000 crore early next fiscal.

Realty stocks rose on reports demand for residential projects in major cities is picking up on lower home loan rates, property price cuts by developers and a recovery in the job market. Indiabulls Real Estate, Phoenix Mills, Unitech, DLF and Ackruti City rose by between 0.47% to 7.72%.

Realty market had slumped last year amid a global credit crunch and buyers fearing job losses.

Bank stocks fell as lower bond prices will result in diminution in value of bond holdings. The yield on the key 10-year government bond held at a 9-1/2 month high of 7.43% on Monday, 31 August 2009. Bond yields and bond prices are inversely related.

India's largest private sector bank by net profit ICICI Bank fell 1.85% as its American depository receipt (ADR) fell 1.21% on Friday. The bank has launched a special offer for new home loan borrowers effective from 20 August 2009. Under this, interest rates for home loans upto Rs 20-lakh will now be at 8.75%. For loans between Rs 20-Rs 50 lakh, the new rates will be 9.25% while those above Rs 50-lakh, the rate has been fixed at 9.75%.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 2.16%. Bank's Chairman O P Bhatt said on Friday interest rates will remain stable for next six months. It is difficult to say whether rates have bottomed out, he said

Some PSU banks bucked the weak trend after the Reserve Bank of India said commercial banks, excluding local area banks and regional rural banks, are allowed access to the interest rate futures market for hedging and trading on their own books. Bank of Baroda, Bank of India, India Overseas Bank, Union Bank of India, rose by between 0.21% to 3.61%. Trading on interest rate futures began on the National Stock Exchange on Monday

India's second largest private sector bank by net profit HDFC Bank rose 0.85% as its ADR rose 1.26% on Friday.

Shares of tea makers fell on profit taking after a recent surge due to jump in tea prices caused by fall in production. Assam Tea Company, Warren Tea, Asian Tea & Exports fell by between 0.7% to 3.75%.

Fertiliser shares rose on slight revival in India's annual monsoon. Nagarjuna Fertilisers, Chambal Fertilisers & Chemicals, GSFC, GNFC, Rashtriya Chemicals & Fertilisers rose by between 0.01% to 2.5%.

Fertilizer sales are directly dependent on monsoon. A bountiful monsoon boosts sales whereas a drought hits sales adversely

Sugar stocks rose as the price of raw sugar in Nw York soared to its highest level in almost 30 years on Friday, 28 August 2009, driven by investors worries about tight supplies and strong global demand for the sweetener. Shree Renuka Sugars, Bajaj Hindustan, Dhampur Sugars and Balrampur Chini rose by between 3.13% to 6.23%.

Unitech clocked the highest volume of 4.7 crore shares on BSE. Mahindra Satyam (3.6 crore shares), Ispat Industries (2.54 crore shares), IFCI (2.15 crore shares) and IKF Technologies (1.68 crore shares) were the other volume toppers in that order.

Unitech clocked the highest turnover of Rs 504.94 crore on BSE. Mahindra Satyam (Rs 447.47 crore), Aban Offshore (Rs 250.35 crore), Tata Steel (Rs 203.26 crore) and Reliance Capital (Rs 179.60 crore) were the other turnover toppers in that order.

Morning Breakfast - Aug 31 2009


Morning Breakfast - Aug 31 2009

Weekly Newsletter - Aug 31 2009


Morning Notes - Aug 31 2009


Morning Notes - Aug 31 2009

Morning Call - Aug 31 2009


Morning Call - Aug 31 2009

Grey Market Premium - Oil India, Globus Spirits


Company Name

Offer Price

(Rs.)

Premium

(Rs.)

Kostak

(Rs. 1 Lac Application)

NHPC

36

5 to 7

--

Jindal Cotex

70 to 75

4 to 5

1700 to 1800

Globus Spirits Ltd.

90 to 100

8 to 10

1800 to 1900

(+ 250 Form Commission)

Oil India

950 to 1050

115 to 120

2300 to 2400

(+ 250 Form Commission)

Market may fall on weak Asia; GDP figures eyed


The key benchmark indices may decline tracking weak Asian stocks led by sharp fall in Chinese stocks. The investors may take home cash after last straight seven days of gains which saw S&P CNX Nifty jump to its highest closing in close to 15 months. Investors will keenly watch India's gross domestic production figures to be announced by the Central Statistical Organisation today, 31 August 2009.

The economy is forecast to have expanded further in the first quarter ended in June 2009, buoyed by services sector output and improving industrial activity. The economy expanded 5.8% in the January-March 2009 quarter.

The key benchmark indices gained for the straight seventh day on Friday 28 August 2009 amidst high volatility. The BSE 30-share Sensex rose 141.27 points or 0.9% to 15922.34, its highest closing since 3 August 2009 on that day. While, the S&P CNX Nifty gained 44.15 points or 0.94% to 4,732.35 its highest closing since 2 June 2008.

The market has surged in the past seven days supported by positive global cues. The BSE Sensex has risen 1112.70 points or 7.51% in seven trading sessions to settle at 15,922.34 on Friday, 28 August 2009 from 14,809.64 on 19 August 2009.

As per the provisional figures on NSE, foreign funds bought shares worth Rs 554.31 crore and domestic funds bought shares worth Rs 5.46 crore on Friday.

Asian stocks fell today led by mining companies and Japanese exporters, as the Democratic Party of Japan's election victory drove the yen higher and Chinese companies reported lower profit.The key benchmark indices in China, Hong Kong, Singapore, South Korea and Taiwan fell by between 0.28% to 4.83%.

Japan's Nikkei 225 Stock Average lost 0.35%, reversing an earlier 2.2 % climb. Government reports showed factory output rose at the slowest pace in four months in July and retail sales fell, underscoring the challenge for the incoming government to sustain an economic recovery. The Democratic Party of Japan (DPJ) routed the Liberal Democratic Party in Japan's national elections, capturing 308 of 480 lower-house seats.

The Wall Street fell on Friday, 28 August 2009 despite some strongly positive news from technology companies. On Friday, the Dow slipped 36.43 points, or 0.4%, to 9,544.20. The S&P 500 index fell 2.05 points, or 0.3%, to 1,027.76, while Nasdaq Composite Index rose 1.04 points, or 0.1%, to 2,028.77.

Economic news indicated tough times for consumers. Personal income for July 2009 was flat and spending was up 0.2%, while core personal consumption expenditures were up 0.1%. Each was essentially in-line with expectations.

The Michigan consumer survey said its final index of confidence for August fell to 65.7 from 66.0 in July. This is the lowest number since April. It was however better than expectations.

Meanwhile there were upside earnings surprises from Dell and Marvell Tech, along with strong revenue forecast from Intel.

Back home, the revival in monsoon has lifted sentiment. India's monsoon rains were 5% below average in the week to 26 August 2009, coming in close to normal for the second successive week after a prolonged dry spell, the Meteorological Department said on 27 August 2009. Rainfall since 1 June to 26 August was 25% below normal, improving slightly from a deficit of 26% a week earlier. India's monsoon rains, a quarter short of average since 1 June are likely to improve in September to end the four-month season with a total deficit of 20 % the head of the weather office said on Friday. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual monsoon rains running between June to September.

India's deficient monsoons may affect the inflation outlook more than growth prospects, the Reserve Bank of India (RBI) said on 28 August 2009 adding that prolonged expansionary fiscal and monetary policies threatened to push up prices and eventually crimp growth. In its quarterly review of the monetary policy in late July 2009, RBI said it expects inflation to scale up to around 5% by March 2010.

Technology sector tries to push up US stocks


Nasdaq is the only index which manages to register marginal gains

Stocks at Wall Street kicked off Friday, 28 August, 2009 on a strong mode. But stocks soon slipped. Better-than-expected earnings from Dell, an upside earnings surprise and upside outlook from Marvell Tech, and an upbeat revenue forecast from Intel gave stocks an early boost on Friday. But profit-takers quickly stepped in and indices lipped in the red. Even the earning reports did not come in as bright as expected.

The Dow Jones Industrial Average ended lower by 36.43 points at 9,544.2. The Nasdaq Composite Index, ended higher by 1.04 points at 2,028.77. S&P 500 ended lower by 2.05 points at 1,028.93.

The technology sector had many surprises to deliver on Friday. Most of them were good ones. It was mainly because of these that Nasdaq became the only index to register gains.

Dell announced its earning report after Thursday's close which was better than expected. Though the company's revenue was still down from the previous year, management stated that sequential improvement in its top line is consistent with the view that demand has stabilized.

Intel showed confidence in demand by announcing that its revenue forecast for the third quarter increased to approximately $9 billion from $8.5 billion. The consensus forecast was pegged at roughly $8.5 billion.

Fellow semiconductor outfit Marvell Tech had plenty of good news of its own to offer. The company announced that it brought in a better-than-expected adjusted $0.18 per share for its latest quarter. The company also issued a third quarter earnings forecast that topped the consensus outlook.

Among economic reports expected on Friday, data showed that U.S. personal incomes were unchanged in July as consumer spending increased 0.2%, led by higher outlays for autos and other durable goods. In a separate report, the University of Michigan/Reuters survey showed that U.S. consumer sentiment improved in late August, but not by enough to exceed the reading from July, 2009.

Crude prices erased earlier losses and ended higher for the day on Friday, 28 August, 2009. Prices crawled up today following some hopes about current economic scenario from the latest economic data. On Friday, crude-oil futures for light sweet crude for October delivery closed at $72.74/barrel (higher by $0.25 or 0.3%). During intra day trading, crude fell to a low of $71.58 and also rose to a high of $73.3/barrel. For the week, crude ended higher by 9.5%. It was the biggest weekly gain for crude in three months.

Trading volume was well below the longer-term averages by coming in below 1.2 billion shares on the NYSE this session.

Most of the Indian ADrs ended in the red on Friday. Rediff and HDFC Bank were the sole exception. Sify was the main loser shedding 2.8%. Rediff and HDFC bank gained 1.7% and 1.6% respectively.

Pre Session Commentary - Aug 31 2009


Today domestic markets are likely to have gap down opening, as Asian markets are trading in deep red and the US stocks closed mixed on Friday. Consequently, there is lack of specific cue from the global market to lift the sentiments in domestic bourses. Meanwhile, in domestic arena investors will eye on the Central Statistical Organization’s data on India''s gross domestic production due to come out today (31st August 2009). Moreover, the market may consolidate after rise during the last week. The domestic markets are likely to trade volatile today.

On Friday, the Indian market made smart recovery from day’s low to close with handsome gains due to fresh buying momentum that emerged during late hours. All round buying contributed to the sharp rebound backed by strong cue from European markets. Positive US index futures also added to the northward journey. Benchmark indices were higher in early trade also on resurgence of monsoon rains. According to the Meteorological Department, monsoon rains were 5% below average in the week to 26 August 2009, which is close to the normal. However, market turned weak during afternoon tracking weakness in Chinese stocks. The BSE Sensex ended above 15,900 level and NSE Nifty closed above 4,700 mark after hitting a new 52-week high of 4,743.

The BSE Sensex higher by 141.27 points or (0.90%) at 15,922.34 and NSE Nifty ended up by 44.15 points or (0.94%) at 4,732.35. BSE Mid Caps and Small Caps closed with gains of 41.20 and 54.70 points at 5,863.70 and 6,961.76 respectively. The BSE Sensex touched intraday high of 15,957.67 and intraday low of 15,663.35.

On Friday, US stock markets closed mixed. The day started with better than expected earnings announcement from key tech players like Dell, Marvell Tech and Intel. Dell reported better than expected earnings of $0.28 per share, followed by Marvell that also reported better than expected earnings of $0.18 per share. Semiconductor Company Intel came out with an increased revenue forecast of $9 billion for the current quarter, which is much higher than $8.5 billion forecasted by analysts. These announcements helped major indices touch new highs for 2009, however it could not last longer amidst profit booking pressures. The investors were of the belief that markets have already accounted for such earnings announcement from corporate. US light crude oil futures for October delivery closed at $72.75 per barrel up by 0.4% on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed lower by 36.43 points at 9,544.20, NASDAQ index closed flat at 2,028.77 and the S&P 500 (SPX) also closed flat at 1,028.93.

Today major stock markets in Asia are trading in deep red. Hang Seng is trading down by 440.33 points at 19,658.29 followed by Shanghai Composite which is trading lower by 153 points at 2,707.68. Furtherr, Japan’s Nikkei is trading lower by 36.95 points at 10,497.19. Taiwan Weighted is also down by 44.68 points at 6,765.18. Strait Times is lower by 28.92 points at 2,613.88 and Seoul Composite is down by 24.67 points at 1,583.27.

Indian ADR''s ended mixed on Friday. In the telecom pack, Tata Comm was down 0.33% and MTNL was high by 1.56%. In the banking space, ICICI Bank was low 1.21% but HDFC Bank was up 1.63%. In the IT sector, Infosys was low 1.32%, Wipro was low 1.67%, while Patni was down 0.57% and Satyam was up 0.55%. In the other space, Dr Reddys was up 0.06%, Tata Motors and Sterlite were down by 0.08% and 0.50% respectively.

The FIIs on Friday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 4,109.60 Crore and gross debt purchased stood at Rs 205.60 Crore, while the gross equity sold stood at Rs 2,766.80 Crore and gross debt sold stood at Rs 3,008.00 Crore. Therefore, the net investment of equity and debt reported were Rs 1,342.80 Crore and Rs (2,802.50) Crore respectively.

On Friday, Indian Rupee closed at 48.65/66 per dollar, 0.71% stronger than its previous close at 48.91/92. Phenomenal surge in local stock markets at the end helped strengthen the local currency.

On BSE, total number of shares traded were 53.20 Crore and total turnover stood at Rs 6,581.27 Crore. On NSE, total number of shares traded were 101.22 Crore and total turnover was Rs 18,360.00 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 104157667 shares, followed by Suzlon Energy with 38138094, Tata Steel with 15833142, DLF with 15079403 and Bharti Airtel with 10555261 shares.

On NSE Future and Options, total number of contracts traded in index futures was 705211 with a total turnover of Rs 15,554.78 Crore. Along with this total number of contracts traded in stock futures were 586790 with a total turnover of Rs 18,537.62 crore. Total numbers of contracts for index options were 1029361 with a total turnover of Rs 24,397.39 Crore and total numbers of contracts for stock options were 48310 and notional turnover was Rs 1,619.27 Crore.

Today, Nifty would have a support at 4,624 and resistance at 4,804 and BSE Sensex has support at 15,560 and resistance at 16,178.

SGX Nifty Live Update - in deep negative


4,665.0 -66.0

Market may open low on weak global cues


The market is likely to remain under pressure following on mixed US market and weakness among major Asian indices in the ongoing trades and it may exhibit strong volatility during the intra-day trades. However, prevailing bullish sentiment may help the market to get some buying support in initial trades. Among the key local indices, the Nifty could decline to 4670 on the downside while on the upside there is a near term resistance at 4755. The Sensex has a likely support at 15660 and may face resistance at 16200.

US indices ended mixed on Friday, with the Dow Jones tumbled by 36 points to close at 9544, the Nasdaq gained a points at 2029.

Major Indian ADRs, too, buckled under selling pressure on the US bourses. Wipro slipped 1.67%, Infosys declined 1.32% and ICICI Bank dropped 1.21% while Patni Computers, VSNL, Tata Motors and VSNL slipped marginally. However, HDFC Bank, Rediff, Satyam and Dr Reddy closed with the marginal gains.

Crude oil prices declined marginally, with the Nymex light crude oil for October series gaining by 25 cents to close at $72.74 a barrel. In the commodity space, the Comex gold for December series declined $11.50 to settle at $958.80 a troy ounce.

Daily News Roundup - Aug 31 2009


The SAT dismissed a petition filed by a Bharti Airtel shareholder opposing an informal guidance by the SEBI exempting MTN Group from having to make an open offer to Bharti shareholders in the event of a merger of the two. (BS)

Reliance Communications has signed an agreement with S Tel, a new telecom operator, for sharing passive telecom infrastructure.(BL)

GAIL signed a Gas Sales and Purchase Agreement for buying 2.6mn standard cubic meter per day of gas from Reliance Industries KG-D6 fields at government approved price of US$4.2 per mBtu. (BS)

CAG rejects Reliance Industries, BG audit records; says they don’t reflect its views declared during two meetings.(TOI)

The final hearing in the row between Reliance Industries and Reliance Natural Resources regarding supply of gas from the KG basin will start in the Supreme Court from October 20.(BL)

USFDA clears all the nine manufacturing deficiencies pointed out in Cipla’s facilities. (ET)

TCS secured an order in Saudi Arabia for executing an Oracle ERP implementation project. (ET)

Suzlon Energy is in discussions with a consortium of wind equipment component manufacturers in Belgium to sell off its gear box manufacturing subsidiary, Hansen Transmission. (BS)

LOOP Telecom shortlisted Tech Mahindra, Wipro and IBM for an IT outsourcing contract worth around US$400mn. (ET)

Government may divest 10% in SAIL thru follow-on issue.(BL)

The Supreme Court dismissed a special leave petition filed by Hoffman-La Roche challenging Delhi High court order of April that allowed Cipla to sell a generic version of lung cancer drug Tarceva (erlotinib) in India. (BS)

ONGC decides to invest US$1.7bn by 2012 to develop two clusters of marginal fields off the Mumbai coast.(TOI)

Tata Motors has pledged its entire holding of over 10.4mn shares in Tata Steel, currently worth around Rs4.58bn. (ET)

M&M is likely to buy a manufacturing facility in the US for assembling its pick-up trucks. (ET)

TCS plans to double revenues from the domestic operations to US$1bn in the next 3-4 years. (ET)

Wipro has announced a strategic partnership with Lavasa Corporation to help the latter manage Information & Communication Technology services across Lavasa city. (BS)

Cipla has terminated its marketing agreement with Avesthagen and is looking at selling its 5.8% stake in the Bangalore-based company. (ET)

L&T is expecting orders worth Rs100bn from power, infrastructure and hydrocarbon sectors within a month. (BS)

GlaxoSmithKline is in talks with government for introducing its patented drug, Relenza, which is used for the treatment of Influenza A H1N1. (BS)

The government plans to disinvest 10% in Coal India Ltd in the first phase. (BS)

Mauritius based investment fund IPRO plans to pick up 10% stake in Ansal Properties & Infrastructure for Rs880mn. (ET)

Air India is likely to receive about Rs50bn as equity from the government over the next two years.(BL)

Bombay Dyeing has developed nearly 1mn square feet of land in Mumbai. (ET)

Government plans to divest 10% in NTPC.(TOI)

Dish TV plans to raise Rs10bn from foreign markets, issuing foreign currency convertible bonds in a month. (BS)

W L Ross & Co acquired 1.8mn ADRs of Mahindra Satyam from NYSE Euronext for US$4.6mn at an average price of US$2.5 per share. (BS)

Cadila Pharma plans to launch a one-of-its-kind typhoid detection kit this October. (BS)

Sicom Ltd sold a 4.8% stake in Maytas Infra over the past two days. (BS)

Mahindra Satyam is pursuing around 30 "large deals" and expects some of these to materialise during the current financial year. (BS)

L&T will sell its 6% holding in Mahindra Satyam by March.(BL)

Peninsula Land plans to raise Rs5.5bn through a qualified institutional placement.(DNA)

GSPC plans to sell a 5% stake to a private equity firm by October, and will take a call on its stalled IPO after this deal is finalized.(Mint)

CESC has acquired over 50% stake for Rs2bn in Dhariwal Infrastructure which is setting up a 600MW thermal power station at Chandrapur in Maharashtra.(BL)

KEC International receives orders worth Rs7.8bn.(DNA)

Maruti Suzuki India will soon increase its production capacity by at least 0.1mn vehicles.(DNA)

JSW Infrastructure, part of the JSW group, has lined up plans to raise its Jaigarh port capacity five-fold to 50mn tonnes.(DNA)

CESC plans to offload 20% stake in its loss-making subsidiary Spencer's Retail to private equity funds.(BL)

Karnataka Bank has reduced the rate of interest on domestic term deposits by 25-50bps on various maturities.(BL)

Indian Overseas Bank plans to raise an amount totalling to Rs8bn by issue of bonds on private placement basis. (ET)

JB Chemicals gets USFDA nod for its anti-allergic tablets. (BS)

United Bank of India to raise up to Rs5bn by diluting 15% of the government’s equity in an IPO by January 2010. (ET)

Foreign exchange reserves increased by US$932mn to touch $272bn for the week ended August 21.(BL)

UPA government is set to revise the growth target from 9% to 7.8% for the 11th five-year plan period.(TOI)

The Centre plans to spend around Rs310bn to support the state universities across the country to improve the quality of higher education. (BS)

Traffic handled at 12 major ports in the country has seen a 1.2% increase during the April-July period compared with the same period last year.(TOI)

Government has turned down a demand for imposition of safeguard duty on imports of certain steel and aluminum products.(BL)

Minister of Road Transport and Highways says that all corrections relating to the model concession agreements would be in place by September 30 to ensure investments by contractors.(BL)

Gujarat government is toying with the idea of rolling back the policy stipulating state PSUs to set aside 30% of their gross profit in favour of Gujarat Socio-Economic Development Society.(TOI)

Of the 36 ‘monsoon divisions’ 12 have achieved the normal average for this three-month period this year, IMD. (BS)

No force for bulls!


Perpetual optimism is a force multiplier.

India sure is a force to reckon with Force One F1 powering ahead to finish second in the Belgian Grand Prix on Sunday. But then China is something we cannot ignore. Despite perpetual optimism, the force may not be with the bulls at the start so to speak, as global markets are not doing well. A small pull-back is only to be expected after the recent advance. The recent bugbear - the Chinese market could yet again play party pooper. The Shanghai Composite has sunk by as much as 5%. Other Asian indices too are down 0.5-2%. On Wall Street, the Dow broke its eight-session winning sequence on Friday. As a result, we are likely to toe the global line and open in the red, though there is no need to panic as such. A small pull-back is only to be expected after the recent advance. The Q1 GDP data will be out today and could swing the game either way.

Despite the impending shortfall in farm output, the situation is not alarming as yet. The Finance Minister has reaffirmed that things are not so bad. One only hopes that the Centre manages the food supply situation well. Still, inflation is likely to present a few challenges down the line. If that happens, interest rates should also harden. One should brace for a few hiccups on the road to recovery.

The F&O rollover has been encouraging. It was the highest since February and much above the monthly average in recent history. However, other F&O indicators like the Put-Call ratio are pointing to some breather before the market kicks off another move up. The immediate resistance for the Nifty is placed at around 4800. The near-term support is seen at 4650-4680. Broadly, the index could swing between 4500 and 5000 in the next few weeks.

A factor that will play a crucial role in deciding the market's direction going ahead is fund flows and the mood of the overseas investors. This, in turn will hinge on how the situation shapes up on the local economic front and corporate results side. One will of course have to grapple with the daily developments across the global markets and economies as well.

FIIs were net buyers at Rs5.54bn in the cash segment on Friday on a provisional basis while the local funds pumped in a meager Rs54.6mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs1.61bn. On Thursday, FIIs were net buyers at Rs13.43bn in the cash segment. Mutual Funds were net buyers of just Rs167mn on the same day.

Chinese shares plunged early today on fears of weak bank lending in August and concerns of likely capital-raising issues that may sap market liquidity. The benchmark Shanghai Composite index ended the morning session down 5.4%.

The slump in Shanghai shares dragged on the Hong Kong market, where the Hang Seng Index fell 1.96% to 19,704 in latest trading, falling below the psychologically-important 20,000-point level as all of its constituents dipped into the red.

Japanese stocks gave up an early rally to turn negative in the first trading session after Japanese voters handed the opposition Democratic Party of Japan a landslide victory over the long-ruling Liberal Democratic Party. The Nikkei was down nearly 0.9% at 10,439.

US stocks ended lower, with the Dow Jones Industrial Average snapping an eight-session winning streak, as a disappointing report on consumer confidence countered positive news from jewellery retailer Tiffany and technology titans Dell and Intel.

Investors and traders turned cautious after pushing the three main indices to 2009 highs in the previous session. Friday's loss erased most of the gains for the week and led the Dow to its first negative close in nine days.

The blue chip index lost 36.43 points, or 0.38%, to 9544.20, putting its gain for the weak at just 0.4%. But it is up 4.06% for the month so far, and will likely close out on Monday its best August performance in nine years.

The Standard & Poor's 500 index fell 2.05 points, or 0.2%, to 1028.93, pulled down by a 0.91% drop in its health-care sector.

The tech-heavy Nasdaq Composite index, meanwhile, finished nearly unchanged at 2028.77, marking its highest close since Oct. 1. The index is on track for its sixth-straight monthly gain, its longest monthly winning streak since the seven months ended August 2003.

All three major indexes had gained in the morning, thanks to the upbeat commentary from Dell and Intel, but lost steam as the session wore on. Trading volume was light on the second-to-last trading session of August.

US stocks had managed slim gains on Thursday, with the Dow stretching its winning streak to eight straight sessions, its longest run since the period ended April 10, 2007. But the gains have been tepid this week on the back of a surprisingly strong summer advance. Between the March 9 lows and Friday's close, the S&P 500 gained 52%.

Chipmaker Intel boosted its revenue forecast for the third quarter, thanks to stronger PC demand, saying it expects sales of US$8.8bn to US$9.2bn. Previously, it forecast sales of US$8.1bn to US$8.9bn. Analysts surveyed by Thomson Reuters are currently forecasting sales of US$8.55bn. Intel, a Dow component, rallied 4%.

PC maker Dell reported weaker sales and earnings late on Thursday that beat expectations, sending shares 1.8% higher Friday. Dell also said that it is seeing signs the PC industry is beginning to recover.

Tiffany, meanwhile, rallied 11%, amid the outlook boost and as its fiscal second-quarter earnings topped Wall Street estimates.

Among the decliners were insurance company Cigna Corp., which dropped 2.9% and drug giant Bristol-Myers Squibb, which slid 2.9%.

In economic news of the day, personal income was essentially flat in July, the government reported, versus forecasts for a rise of 0.1%. Income declined 1.1% in June. But spending perked up, thanks to the government's Cash for Clunkers program. Personal spending rose 0.2% after falling 1.1% in June. The rise was in line with estimates.

The Reuters/University of Michigan reading of consumer sentiment was revised up to 65.7 in August from an earlier reading of 63.2. Economists expected a reading of 64. In July, sentiment stood at 66.

Apple signed a multiyear deal with China Unicom to bring the iPhone to China, the world's largest cell phone market. Apple shares were little changed.

Among the Dow's worst performers were pharmaceutical giant Merck, which dropped 1.7%, and aerospace company Boeing, which fell 1.5%. Still, that erases only a small part of Boeing's Thursday rally after it gave a rosy update on its much-delayed Dreamliner airplane. The stock closed up 11% for the week.

Shares of financial companies in which the government has intervened also rose sharply this week. Among them was insurance giant AIG, which closed up 5%. The stock climbed 53% this week alone after CEO Robert Benmosche's optimistic statements about the prospects for turning AIG around.

Government-backed mortgage lenders Fannie Mae and Freddie Mac were also among the financial stocks that rallied. Fannie Mae, whose total mortgage portfolio declined at an annualized rate of 18% in July, climbed 6.3%. It rallied 70% this week.

Freddie, meanwhile, rose 7.1%, and 39% for the week. Banking giant Citigroup rose 3.6%.

US light crude oil for October delivery rose 25 cents to settle at US$72.74 a barrel on the New York Mercantile Exchange.

Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.43% from 3.44% late on Thursday. Treasury sold US$109bn in debt this week to moderate demand.

COMEX gold for December delivery rose US$11.50 to settle at US$958.80 an ounce.

In currency trading, the dollar fell versus the euro and gained against the Japanese yen.



The expiry week saw the birth of a new high for the year. The Nifty closed at 2009 peak ignoring any possible fallout from drought, inflation, fund flows and of course global cues. Impressive rollover of derivatives contracts in the month of September boosted sentiment. Finally, the BSE 30-share Sensex and NSE Nifty closed the week higher by 4.5% each.

The BSE Sensex hit an intra-week high of 15,957.6 and low of 15,362. While, NSE Nifty hit an intra-week high of 4,743.7 and low of 4,536.9

The Foreign Institutional Funds purchased Rs20.76bn during the week and the Domestic Institutional Funds were net buyers to the tune of Rs13.88bn during the week.

The top gainers: The top gainers in the Sensex were Tata Motors (up 13.3%), Wipro (up 10.1%), L&T (up 9.1%), Reliance Capital (up 8.3%) and DLF (up 8.1%).

The Top Losers: The top losers in the Sensex were Tata Steel (down 1.4%), ONGC (down 1.1%), HDFC Bank (down 0.6%) and Hindustan Unilever (down 0.2%).

In Asia, the Nikkei in Japan gained by 0.5% at 10,534 while Australia's S&P/ASX ended higher by 0.8% at 4,489. The Hang Seng index in Hong Kong was down 0.8% at 20,098. Shanghai index in China fell by 2.9% at 2,860.

In Europe, stocks were trading in the green. The FTSE in the UK was up 1%. The DAX in Germany was up 1.3% and the CAC 40 index in France was up 1.4%.

Coming back to India, among the BSE sectoral indices, the Realty index was the top gainer, gaining 4%, followed by the Auto index that was up 1.3%. The BSE Capital Goods index up 1.1% and the BSE Bankex index was up 1.1%.

The BSE Mid-Cap index gained 0.8% and the BSE Small-Cap index gained by 0.8%.

Among the 30-components of Sensex, 21 stocks ended in the green and 9 ended in the negative terrain. Among the major gainers were DLF, JP Associates, Bharti, Hindalco, Reliance Infra and Hero Honda.

On the other hand, ITC, Tata Power, Su Pharma, TCS and Wipro were among the major laggards.

Outside the frontline indices, the big gainers in the broader market were CESC, Voltas, Thermax, Praj Ind, IFCI and UCO Bank. On the other hand, losers included Biocon, Mundra Port, Koutons, Nestle and Concor.

Asian stocks open in red


Asian stocks fell, led by Japanese exporters, as the Democratic Party of Japan`s election victory drove the yen higher.

Japanese benchmark index Nikkei 225 fell 18.29 points, or 0.17%, to trade at 10,515.85.

Hong Kong`s Hang Seng index declined 271.49 points, or 1.35%, to trade at 19,827.13.

China`s Shanghai Composite decreased 103.22 points, or 3.61% to trade at 2,757.46.

Taiwan`s Taiex index dropped 30.62 points, or 0.45%, to trade at 6,779.24.

South Korea`s Kospi index lost 16.12 points, or 1% to trade at 1,591.82.

Singapore`s Straits Times sank 19.15 points, or 0.72%, to trade at 2,623.65. (7.42 a.m., IST)

IT Services


IT Services

Praj Industries


We recommend a buy in the stock of Praj Industries from a short-term perspective. It is evident from the charts of Praj Industries that following a medium-term correction from June high of Rs 122 to July low of Rs 70, the stock found support at significant support level of Rs 70. Subsequently, the stock resumed its intermediate-term uptrend that has been in place since the March low of Rs 45. Moreover, it has been on a medium-term up trend from July low. On August 24, the stock surged almost 9 per cent, penetrating its 21- and 50-day moving averages. We notice that the volumes have been increasing for the past one week. The daily relative strength index (RSI) has entered in the bullish zone from the neutral region and the weekly RSI is heading towards the bullish zone. We are bullish on the stock from a short-term horizon. We expect the stock’s up move to continue until it hits our price target of Rs 112 in the approaching trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 96.

via BL

SGX Nifty Live Update - Aug 31 2009


4,698.0 -33.0

Precious metals register good weekly gains


Depressed economic reports make precious metals shine

Precious metal prices rose on Friday, 28 August, 2009. Prices rose as depressed economic data increased the appeal of precious metals as a hedge against inflation.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.

On Friday, gold for December delivery ended at $958.8, higher by $11.5 (1.4%) an ounce on the New York Mercantile Exchange. For the week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 8.2%.

Gold ended July, 2009 higher by 2.8%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (7.1%) since then.

On Friday, Comex silver futures for September delivery rose by 56.4 cents (4%) to $14.784 an ounce. For the week, silver ended higher by 4.3%.

Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 31.8% this year. For 2008, silver had lost 24%.

Among economic reports expected on Friday, data showed that U.S. personal incomes were unchanged in July as consumer spending increased 0.2%, led by higher outlays for autos and other durable goods. In a separate report, the University of Michigan/Reuters survey showed that U.S. consumer sentiment improved in late August, but not by enough to exceed the reading from July, 2009.

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

Crude registers healthy weekly gains


Price pare earlier losses and register marginal gains

Crude prices erased earlier losses and ended higher for the day on Friday, 28 August, 2009. Prices crawled up today following some hopes about current economic scenario from the latest economic data.

On Friday, crude-oil futures for light sweet crude for October delivery closed at $72.74/barrel (higher by $0.25 or 0.3%). During intra day trading, crude fell to a low of $71.58 and also rose to a high of $73.3/barrel. For the week, crude ended higher by 9.5%. It was the biggest weekly gain for crude in three months.

For the month of July, 2009, crude ended lower by a marginal 0.6%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 53% since then. Year to date, in 2009, crude prices are higher by 48.8%.

Among economic reports expected on Friday, data showed that U.S. personal incomes were unchanged in July as consumer spending increased 0.2%, led by higher outlays for autos and other durable goods. In a separate report, the University of Michigan/Reuters survey showed that U.S. consumer sentiment improved in late August, but not by enough to exceed the reading from July, 2009.

EIA reported earlier during the week that U.S. crude inventories rose 200,000 barrels in the week ended 21 August, as imports jumped 14% from the prior week. In the weekly report, the EIA also reported gasoline stockpiles fell 1.7 million barrels last week while distillate fuels, which include diesel and heating oil, rose 800,000 barrels.

The report also detailed that total gasoline supplied, an implied gauge of demand for the fuel, fell 1.1% from a week ago to 9.1 million barrels a day. But total petroleum products supplied rose slightly, to 19.5 million barrels a day, as small increases in jet fuel and residual oil demand offset the decline in gasoline.

Also at the Nymex on Friday, September reformulated gasoline gained slightly to $2.0703 a gallon and September heating oil edged up to $1.8625 a gallon.

On Friday, natural gas for October delivery, the new front-month contract, fell 15.1 cents, or 4.7%, to $3.054 per million British thermal units. The EIA reported one day before that gas in storage rose by 54 billion cubic feet to stand at 3.258 trillion cubic feet during the week ended 21 Aug, 2009. Gas stockpiles were 516 billion cubic feet higher than last year at this time and 500 billion cubic feet above the five-year average.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.