Daily Grey Market Premiums - Dec 11 2009

Company Name	Offer Price (Rs.)	Premium (Rs.)
Cox & Kings India	330	12 to 15
MBL Infra	165 to 180	2.50 to 3
JSW Energy Ltd.	95 to 110	-7 to -8 (Discount)
Godrej Properties	490 to 530	5 to 7
D. B. Corp.	185 to 212	4 to 5

Daily News Roundup - Dec 11 2009

ONGC is working out a major revamp to create independent subsidiaries to tap the growing market of drilling, construction and logistics services consumed by oil companies. (ET)

Group of global telecom and technology firms comprising, Reliance Globalcom and Bharti Airtel singed an agreement to build and operate a submarine cable system. (ET)

DE Shaw sells 36% in DLF arm to promoters. (ET)

RIL is in talks with IL&FS on Haryana SEZ. (BS)

NTPC to be the official partner for the Commonwealth Games scheduled in the next year. (BS)

Jindal Power Limited, a subsidiary of JSPL, plans to raise Rs100bn in this financial year via IPO. (BS)

Cairn India plans to merge businesses of its group companies with itself. (BL)

RCoM has bagged telecom infrastructure contracts from State Governments of Kerala, Mumbai and Maharashtra circles. (BS)

Pfizer sues Dr Reddy’s Labs over Lipitor patent. (BL)

Ranbaxy expects to launch a generic version of Astellas Pharma’s Flowmax urinary drug in March next year. (BL)

Reliance Infrastructure gets Rs10bn contract from Gujarat government. (BS)

Lupin is looking to acquire a company in the injectibles space in Japan. (ET)

Aventis Pharma has launched a rural market division with 10 products and a sales team of 300 people. (ET)

SREI Infra to raise upto US$200mn through ECBs. (BS)

Bajaj Electricals to raise Rs1.61bn via QIP. (BS)

Nagarjuna Agrichem to invest Rs2.5bn in two years to increase its annual production capacity by 80%. (ET)


Inflation in food articles climbed to 19.05% for the week-ended November 26. (ET)

Petroleum Ministry has sought oil bonds worth ~Rs208bn to partially compensate PSU oil marketing companies for selling cooking fuel below market price in the current fiscal. (BL)

Textile Ministry seeks Rs15bn for the TUF scheme. (ET)

No plan to curb flows of foreign capital, says RBI (ET)

EGoM backs fertilizer subsidy policy. (ET)

Hope for a Firm Friday!

The Grand essentials of happiness are: something to do, something to love, and something to hope for.

A firm start is in the offing but there is not much to do immediately. Global markets are mostly up and will provide the necessary boost in the beginning. All eyes will now be on the IIP data. It is likely to be pretty strong and could further buttress the case for a hike in interest rates.

Inflation and its cascading effect continue to be among the biggest headaches for Indian policymakers in the near year. Food prices have shot through the roof, with inflation in this crucial category nearing staggering 20%. Don’t be surprised if the Government and/or the RBI unveil a few steps to combat this menace in the next few days.

The big test for the Nifty will be 5180-5200. With a few days to go in 2009, we expect market to remain volatile and rangebound. Side counters will remain abuzz, but don’t get carried way.

The potential danger ahead for the global equities will be a recovery in the dollar and the unwinding of the carry trades. This could happen when the Fed begins to hike interest rates in the next 6-9 months. Even before that, we could see several nations (especially in Asia) reversing the emergency stimulus measures. Overall, the data points are likely to be mixed and fresh troubles might erupt in some form or the other.

Meanwhile, inflation is back in China as well. Consumer prices in the dragon land rose for the first time in 10 months in November. What’s more, China’s industrial production grew by a robust 19.2%. South Korea has hiked its economic forecast.

Elsewhere in the world, US stocks followed European bourses higher on Thursday. US stocks bounced back after rising oil prices helped investors shrug off lingering concerns over Dubai and Greece. A decline in continuing unemployment claims also pushed US stocks higher, as some consumer stocks rally on expectations of higher spending.

The weaker dollar and slumping demand for oil narrowed the US trade gap and signaled that the world's largest economy could be growing faster than anticipated, commerce department figures showed.

The Dubai stock market bounced back after Emaar, a leading real estate developer said that it was breaking off talks to merge with three weaker competitors. Greek banks too rebound following three days of heavy losses, with the Eurofirst 300 climbing back above the 1,000 level.

In commodities, aluminium traded at its highest levels of the year, leading the base metals sector higher while oil prices made a partial recovery after falling sharply in the previous session.

Investors will continue to seek some opportunity on every dip to get more bang for their bucks as they stick with their diversification strategies. All Emerging Market Equity Funds combined bounced back from the blows administered by Dubai World’s debt problems in late November, raking in $2.3 billion of net inflows for the week ending December 9. That brings year to date inflows to $75.4 billion, well above the previous record of $54 billion set in 2007.

US stocks rallied on Thursday as investors sorted through a raft of economic reports and opted to scoop up a variety of shares. A volatile dollar was also in focus.

The Dow Jones Industrial Average rose 69 points, or 0.7%, to 10,405.83. The S&P 500 index added 6 points, or 0.6%, to 2,190.86. The Nasdaq Composite gained 7 points, or 0.3%, at 1,102.35.

Gains were broad based, with 24 of 30 Dow stocks rising, led by commodities and consumer names.

Stocks rose more sharply in the first minutes of trade, with the Dow adding as much as 107 points on the weak dollar. But the dollar seesawed throughout the session, cutting into gains. The weak dollar has helped stocks rally over the past nine months, with the S&P 500 now up 62% from 12-year lows hit on March 9. The weaker dollar has given a boost to dollar-traded commodity shares.

But in the last few weeks, the greenback has been volatile. Stocks have also been volatile due to the lighter trading volume this month, with many investors opting to stay on the sidelines rather than go for any major changes in their portfolios at the end of the tumultuous year.

US stocks gained on Wednesday as the falling dollar boosted commodity stocks, and a rise in wholesale inventories and an upgrade of 3M provided some optimism.

The number of Americans filing new claims for unemployment rose last week to 474,000 from 457,000 in the previous week, the Labor Department reported. Economists expected claims to fall to 455,000, on average. However, continuing claims, the number of Americans receiving benefits for a week or more, declined more than expected. Continuing claims fell to 5,157,000 from 5,460,000 in the previous week. Economists expected 5,450,000 claims.

The Commerce Department said that the nation's trade gap narrowed in October to $32.9 billion from a revised $35.7 billion in September, thanks to a jump in exports. Economists, on average, thought it would widen to $36.8 billion.

The Treasury Department reported a $120.3 billion deficit for the month of November, the 14th straight month it has spent more than it earned.

Foreclosure filings fell 8% in November from October, according to RealtyTrac, an online marketer of foreclosed properties. That means November is the fourth month in a row in which foreclosure filings have dropped. But foreclosures are still up 20% from a year ago.

Separately, Treasury said in the afternoon that only 4% of troubled borrowers have gotten long-term mortgage help under the Obama administration's foreclosure prevention program. He testified before the Congressional Oversight Panel about the government's bailout of the financial system.

Geithner said the Troubled Asset Relief Program (TARP) helped the US avoid a complete financial meltdown, but that the economy is still facing significant headwinds. He said these headwinds are why he decided on Wednesday to extend TARP through October 2010, rather than letting it expire at the end of this year.

Goldman Sachs said that top executives will not be paid cash bonuses this year and will instead receive a special form of company stock. The decision comes amid growing criticism of the bank's plan to pay out huge bonuses on par with those given out in 2007, ahead of the credit crisis.

Ciena posted a wider-than-expected fiscal fourth-quarter loss as a result of rising costs. The networking gear maker also forecast better-than-expected revenue in the current quarter. But investors focused on the loss, sending shares more than 11% lower in active Nasdaq trading.

AOL began trading after completing its spin-off from Time Warner, ending what is considered to be one of the worst mergers in corporate history. Shares were little changed.

Warehouse club operator Costco posted fiscal first-quarter earnings of 60 cents per share versus 65 cents a year ago, in line with analysts' estimates.

Gold prices rallied and oil prices dipped, giving up bigger morning gains after the dollar turned positive. Dollar-traded oil and gold prices tend to move in the opposite direction of the dollar.

COMEX gold for February delivery rose $5.30 to settle at $1,126.20 an ounce. Gold closed at an all-time high of $1,218.30 an ounce last week.

US light crude oil for January delivery fell 13 cents to settle at $70.54 a barrel on the New York Mercantile Exchange.

Treasury prices fell, raising the yield on the 10-year note to 3.48% from 3.42% late on Wednesday.

Results from Spanish retailer Inditex and an improvement in sentiment towards financial stocks helped Europe stocks close higher, in the first advance of a turbulent week. The pan-European Dow Jones Stoxx 600 index rose 1% to 243.89, snapping a three-session losing streak.

The German DAX index rose 1.1% to 5,709.02 and the French CAC-40 index climbed 1.1% to 3,798.38. The UK's FTSE 100 index added 0.8% to 5,244.37, after the Bank of England left both its key interest rate and its asset buying program unchanged.

Volatile markets ended with modest gains on Thursday as the benchmark indices continued its struggle in finding a specific direction. Weak global cues dragged the Sensex to start off with a negative bias. However, as the day progressed, firm cues from the European markets coupled with buying witnessed in the index heavyweights like L&T, BHEL and Bharti Airtel lifted the Nifty to end above the 5100 levels.

Sentiments also got a slight fillip after Reserve Bank of India Governor D Subbarao's was quoted as saying that capital flows into India were in line with requirements and there were no fears of asset price bubbles in the near future.

Technically, what we saw is, yet again the Nifty bounced back from its medium term trend line and 13 day moving average indicating that uptrend is intact. The RSI also indicates there is room for upside. Having said that, 5182 (52-week high) continues to remain a hurdle for the Nifty.

The BSE Sensex rose 64 points to end at 17,189 after touching a high of 17,231 and a low of 17,032. The index opened at 17,107 against the previous close of 17,125. The NSE Nifty added 23 points to end at 5,134.

In Asia, the Nikkei in Japan was down 1.5%, while Australia's S&P/ASX ended lower by 0.7%. Shanghai SE Composite was up 0.5% and Hang Seng index in Hong Kong fell 0.2%.

In Europe, stocks were trading marginally higher. The DAX in Germany was up 0.5% and the CAC 40 index in France was up 0.3%. The FTSE in the UK was up 0.3%.

Coming back to India, among the BSE sectoral indices, the Capital Goods index was the top gainer, adding 2%, followed by the Power index that was up 1% and the BSE Banking index was up 0.9%.

Major losers were BSE FMCG index down 0.8% and BSE Consumer Durables index down 0.6%.

The BSE Mid-Cap index ended marginally higher by 0.4% while the BSE Small-Cap index was up 1.2%.

Among the 30-components of Sensex, 15 stocks ended in the green and 15 ended in the negative terrain. Bharti Airtel, BHEL, ICICI Bank, RCom and L&T were among the top gainers.

On the other hand, among the major losers were Hero Honda, HDFC Bank and Grasim.

India’s primary articles index rose 13.9% in the week to November 28, 2009 from a year earlier, the government said. Inflation in Food Articles index shot up to 19.05% in the week ended November 28, 2009 as against 17.47% in the previous week. Non-Food articles rose to 3.31% as against 2.22% in the previous week and mineral index remained unchanged. The index of fuel group rose 0.06% in the week.

Shares of Mahindra Satyam surged over 5% to end at Rs108 after the company’s board approved a settlement agreement under which it will make total payments of US$70mn to Upaid Systems Ltd.

Mahindra Satyam said it would make a first payment of US$45mn within 10 days of getting regulatory approval of the settlement. Second payment of US$25mn would be made within a year of the first payment.

Shares of Lupin gained 2.2% to end at Rs1438. The company announced that it had issued Foreign Currency Convertible Bonds (Bonds) of US$100mn, with maturity in January 2011. The said Bonds were listed on the Singapore Stock Exchange Ltd.

Till date, Bonds aggregating US$98.6mn have been converted. In accordance with the terms and conditions of the issue, the Company has now redeemed outstanding Bonds of US$1.4mn. With the early redemption, there are no Bonds outstanding as on date.

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai rejected the appeal filed by M&M in respect of the Excise classification of the Commander vehicles.

The appeal was against the demand made on the company for payment of differential excise duty of Rs2.16bn and penalty of Rs881mn in connection with the classification of Commander range of vehicles as 10 seater during the years 1991-1996.

Shares of M&M ended marginally higher by 0.7% to Rs1040. The scrip opened at Rs1037 it touched an intra-day high of Rs1045 and a low of Rs1021 and recorded volumes of over 0.15mn shares on BSE.

Shares of Take Solutions shot up by over 5.5% to end at Rs33.5 after the company announced that it successfully concluded the sale of its entire 51% stake in the Malaysian subsidiary, TAKE United Sdn Bhd. for Rs48.8mn.

TAKE's investment in this subsidiary was Rs26.5mn. The Malaysian subsidiary contributed 2.3% to TAKE'S FY09 consolidated revenue. TAKE Solutions will continue offering its services to the Malaysian customers through the same entity in a 'distributor' arrangement and also through other channels.

Shares of FCS Software were locked at 20% to Rs14.88 after the board of directors announced that it successfully concluded placement of 10,000,000 GDR at US$2.41 per GDR (Representing 100,000,0000 Underlying Equity Shares of Re. 1/- each). The GDRs will be listed on the Luxembourg Stock Exchange.

The scrip opened at Rs12.35 it touched an intra-day high of Rs14.88 and a low of Rs12.35 and recorded volumes of over 6.2mn shares on BSE.

Shares of Simplex Projects surged 3% to end at Rs232 after the company announced that it bagged three contracts for earth works and constructions of feeder channel and canal works in the region of Mahoba, Uttar Pradesh from the Irrigation Dept., Govt. of Uttar Pradesh under three different packages.

The total value of the contracts including the cost of materials aggregates to Rs4.07bn, which are to be completed within a time span of 36 months.

Hotel Sector Update

Hotel Sector Update

JSW Energy IPO Note

JSW Energy IPO Note

Morning Note - Dec 11 2009

Morning Note - Dec 11 2009

Morning Report - Dec 11 2009

Morning Report - Dec 11 2009

Daily News Roundup - Dec 10 2009

Lyondellbasell has said that it has not yet received a final bid from RIL. (ET)

Hardy Oil and Gas and RIL may drill 7 wells at two gas fields in India. (BS)

ONGC along with OIL India and Turkish Petroleum is likely to bid for Iraq’s giant Halfaya oil field. (ET)

ONGC Videsh has entered into a MoU with Sistema to jointly acquire and develop oil and gas fields in Russia and other CIS countries. (BS)

Infosys says it will make 13,000 campus offers for 2010-11. (BS)

Tata Motors looks to enter Swaraz Mazda by acquiring a 53% stake of Sumitomo. (ET)

American Tower Corporation to buy Essar Telecom Tower arm for US$400mn. (ET)

Hindalco to raise Rs45bn as debt to achieve financial closure for Utkal Alumina Refinery. (BS)

Suzlon Energy has received a Rs1.9bn order from Rajasthan State Mines and Minerals Ltd. (BL)

BHEL has developed a high temperature super conducting transformer of 1MVA, three phases, 33/6.6KV capacity. (BL)

M&M’s US arm to open a new assembly and distribution centre by end of this months. (ET)

Bajaj Auto has launched a 135-cc Pulsar, which will be manufactured from Chakan plant having a manufacturing capacity of 35,000 bikes. (ET)

Bajaj Auto to exit scooters business. (BS)

Fortis Healthcare is in talks to buy Lanka Hospitals chain. (BS)

Pfizer sues Dr Reddy’s over the sale of generic version of its best anti-cholesterol medicine Lipitor. (ET)

SEBI restricts Barclays to issue fresh P-Notes. (ET)

Mahindra Satyam has agreed to pay US$70mn to Upaid for out of court settlement. (ET)

PNB offloads 26% in its housing finance arm. (ET)

Government may sell Rs140bn worth of shares in NMDC. (BS)

TCS has entered into a 15-year agreement with Cardiff Council on a project aimed at making it easier for resident of the Welsh Town to access council services. (BS)

Elecon Engineering has bagged an order worth Rs290mn from Tecpro Systems. (BL)


SEBI restricts Barclays to issue fresh P-Notes. (ET)

RBI brings back price ceiling on overseas borrowing or the maximum rate at which Indian corporates can raise foreign funds. (ET)

Centre to sell 3mn tons of wheat and rice in the open market. (ET)

Government to rethink of excise duty SOPs for manufacturing unit in Himmachal Pradesh and Uttarakhand. (ET)

Exports to grow 15%, says Commerce and Industry Minister. (ET)

RBI tells banks to cover all villages by 2011. (ET)

Property tax to be raised by 5% in Delhi. (BL)

Government to consider uniform power tariff in Mumbai. (BL)

Slightly positive at start!

If you wanna make the world a better place, take a look at yourself, then make that change.

The world and its problems will continue. While you need to keep a close watch on the developments, you need to look even more closely at your portfolio. Today, we expect a positive start, but overall trading will be choppy. The Nifty will continue to face resistance at 5180-5200. Stock-specific movements will hog the limelight. Mahindra Satyam could spurt after it has agreed to pay US$70mn to Upaid for an out of court settlement.

The bulls will hope that all the talk of a double dip recession remains just a talk though not all is hunky dory. There are a few dark clouds gathering over the horizon; like the credit problems in Dubai and Greece. If that was not enough, S&P has cut its outlook on Spain to negative. UK and Japan are not doing particularly well. There are some concerns on asset bubbles in China. Inflation of course will remain a big bother for India. High unemployment and subdued consumers are hindering growth in the US. Given this backdrop, one should remain guarded. Avoid impulsive buying.

The US markets managed to claw their way back despite worse than forecast Japanese data and continued fears over Greece and Dubai. An analyst upgrade of 3M and surprisingly strong wholesale-inventory data boosted the mood on Wall Street.

Gold futures have bounced back today in Asia after four-session drop. The dollar resumed its southward journey.

Across the Atlantic, shares in Spain tumbled after S&P revised down its outlook on the country to negative from stable. The rating agency has already warned Greece and Portugal over their fiscal woes. Dubai market slid for a third session on persistent worries over the uncertainty around Dubai World's debt issues.

FIIs were net sellers in the cash segment on Wednesday at Rs3.77bn on a provisional basis. The local funds were net buyers of Rs188.7mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs8.58bn. FIIs were net buyers of Rs9.94bn in the cash segment on Tuesday. FIIs' net investments in Indian stocks this year have crossed $16bn.

US stocks ended higher on Wednesday at the end of a choppy session after the falling dollar boosted commodity stocks. A rise in wholesale inventories and an upgrade of 3M also provided some optimism.

The Dow Jones Industrial Average rose 51 points, or 0.5%, to 10,337.05. The S&P 500 index added 4 points, or 0.4%, to 1,095.95. The Nasdaq Composite advanced 11 points, or 0.5%, to 2,183.73.

Wall Street had retreated on Tuesday as global debt woes weighed and as a stronger dollar hurt commodity prices. The debt woes remained in place, while the dollar fluctuated throughout the session, turning higher near the close and giving stocks some support.

The market may not see a big push to the new highs. Neither will there be a big selloff. At the same time, plenty of investors who have missed the bulk of the nine-month bull run would be tempted to get in on every dip.

The S&P 500 is up 62% as of Wednesday's close from early March.

The federal bailout plan will be extended until Oct. 3, 2010, Treasury Secretary Timothy Geithner said in a letter to Congress. However, the Troubled Asset Relief Program (TARP) will be scaled back and refocused on newer programs designed to stop foreclosures and make loans to small businesses.

Separately, the Congressional Oversight Panel said that while TARP did help stabilize the banking system, it failed to boost spending or help stop foreclosures.

On Tuesday, President Obama proposed reallocating money not used for TARP to help create jobs and provide other help to consumers. The president is reportedly meeting with the CEOs of a number of big banks next week to try to finesse more lending to consumers.

In the day's key economic news, wholesale inventories in October rose 0.3% after falling 0.8% in September. Economists thought they would decline 0.5%.

3M rallied 3% and helped keep the Dow afloat after Citigroup upgraded it to "buy" from "hold," saying it is likely to outperform its peers over the next year and deliver superior financial returns.

Pfizer rose on a bullish note out of Credit Suisse. Fellow Dow pharmaceutical stock Merck gained as well.

Hewlett Packard (HP) and IBM were the Dow's other big gainers.

Bank of America said that it has paid back the government in full the $45 billion it accepted in bailout money. A week ago, BofA announced that it planned to pay the government back. Shares were little changed.

COMEX gold for February delivery fell $22.50 to settle at $1,120.90 an ounce. Gold closed at an all-time high of $1,218.30 an ounce last week.

US light crude oil for January delivery fell $1.95 to settle at $70.67 a barrel on the New York Mercantile Exchange.

Treasury prices fell, raising the yield on the 10-year note to 3.42% from 3.38% late on Tuesday.

A drop for financials pressured European shares, as renewed worries about debt levels hit Greek and Spanish banks hard. The pan-European Dow Jones Stoxx 600 index fell 1% to 241.70. The index, which has pared year-to-date gains to 21.9%, closed down for the third straight session.

The Spanish IBEX 35 index dropped 2.3% to 11,532.2 after the country's outlook was downgraded to negative by Standard & Poor's, although ratings were affirmed for the country.

Greece's rating was cut on Tuesday by Fitch. Greek stocks fell again, with the ASE Composite index down 3.4% to 2,105.48.

The French CAC-40 index declined 0.7% to 3,757.39, while Germany's DAX index shed 0.7% to 5,647.84. The UK's FTSE 100 index lost 0.4% to 5,203.89 after the UK government outlined its plan to tackle the country's debt pile.

Bulls were unable to continue yesterday’s brilliant run on Wednesday as weak global cues coupled with selling witnessed in the Metals, Banking and the Power stocks.

Sentiment further got dampened on Dalal Street as the Mayhem in Dubai extended to the third straight trading session. Investors and traders continued to offload heavily on the Dubai bourses on worries over the uncertainty around Dubai World's debt woes.

Technically, The Nifty has managed to close above its medium term trend line which indicates that the index has strong support at 5,080 levels. However, another factor to watch out is the Nifty has ended below its 5DMA. Whereas, on the upside yet again the 5182 levels (52-week high) would remain as major hurdle.

The BSE Sensex fell 102 points to end at 17,125 after touching a high of 17,227 and a low of 17,057. The index opened at 17,179 against the previous close of 17,228. The NSE Nifty was down 36 points to shut shop at 5,112.

In Asia, the Nikkei in Japan was down 1.3%, while Australia's S&P/ASX ended lower by 0.7%. Shanghai SE Composite in China slipped 1.7% and Hang Seng index in Hong Kong was down 1.4%.

In Europe, stocks were in the red. The FTSE in the UK was down 0.3%, The DAX in Germany was down 0.4% and the CAC 40 index in France was down 0.3%.

Coming back to India, among the BSE sectoral indices BSE Metals index was the top loser, shedding 2%, followed by the Banking index that was down 1.6% and the BSE Power index was down 0.6%. The BSE Mid-Cap index was down 0.6% and the BSE Small-Cap index was up 0.4%.

Among the 30-components of Sensex, 17 stocks ended in the negative terrain and 13 ended in the red. ICICI Bank, HDFC, Tata Steel, Reliance Industries and Sterlite ended in the negative terrain. Among the major gainers were Infosys, Maruti, TCS and Hero Honda.

Outside the frontline indices, the big losers in the broader market were BOB, Godrej Ind, Jai Corp, Allahabad Bank and LIC Housing. On the other hand, gainers included TTML, Idea, NMDC and REI Agro.

Reliance Industries announced that it has no plans to acquire any debt of LyondellBasell Industries. Reports had earlier stated that Reliance was expected to buy out some of the bankrupt petrochemical company's debt.

LyondellBasell is under Chapter 11 reorganization that would require positive approval from all lenders, in the pecking order of secured to unsecured. Any disapproval if they deem the terms to be unfair could add to delays, adding to the complexity of the transaction.

The scrip opened at Rs1070 it touched an intra-day high of Rs1077 and a low of Rs1063 and recorded volumes of over 0.56mn shares on BSE.

Suzlon won 31.5MW order with Rajasthan State Mines & Minerals Limited. Shares of Suzlon erased early gains and ended lower by 1% to end at Rs84.10. The scrip opened at Rs84.45 it touched an intra-day high of Rs86.40 and a low of Rs83.70 and recorded volumes of over 10.4mn shares on BSE.

Shares of Maruti Suzuki surged by over 2.5% to end at Rs1608 after Volkswagen AG agreed to buy a 20% stake in the company’s parent, Suzuki Motor Corp. Volkswagen will pay 222.5bn yen (US$2.5bn) for a 19.9% stake in Suzuki.

Shares of Kiri Dyes & Chemicals furtherextended gains and added 4% to end at Rs686 after reports stated thatthe company plans to acquire German textile- dye company DyStarTextilfarben GmbH from private equity firm Platinum Equity LLC.

Recently listed, Reliance Media World shares surged by 5% to end atRs122 after the company announced that BIG 92.7 FM and BBC WorldService have entered in to an alliance. BIG 92.7 FM will take BBC’sEntertainment’s updates across 33 network’s stations.

Shares of Mahindra Forgings hit new 52-week high surging 2.5% to end at Rs134 after its parent announced plans to combine its auto component businesses into a single entity to pare costs.

While, Mahindra Ugine was locked at 5% upper circuit at Rs57.3, its highest in almost 16 months.

Mahindra Forgings, Mahindra Composites and other partmakers could be folded into the new group over the next two years, Hemant Luthra, president in charge of Mahindra & Mahindra Ltd.’s component business, said yesterday.

Shares of NMDC surged by over 4% to end at Rs422 after reports stated that the company plans to sell as much as Rs140bn of stock as part of a sell-off in the company. A committee of ministers will start selecting arrangers for the sale this week after cabinet approved plans to divest an 8.38% stake.

Godrej Properties IPO Note

Godrej Properties IPO Note

Info Edge

Info Edge

Tata Steel December 2009 futures at premium

Turnover declines

Nifty December 2009 futures were at 5,126.25, at a premium of 14.25 points as compared to the spot closing of 5,112. Turnover in NSE's futures & options (F&O) segment was Rs 61,314.31 crore, lower than Rs 69,428.98 crore on Tuesday, 8 December 2009.

Tata Steel December 2009 futures were at premium at 548.50 compared to the spot closing of 546.

Unitech December 2009 futures were near spot price at 89.75 compared to the spot closing of 89.40.

Jindal Steel & Power December 2009 futures were near spot price at 725.50 compared to the spot closing of 725.

In the cash market, the S&P CNX Nifty fell 35.95 points or 0.70% at 5,112.

Wednesday woes continues to hammer Asian markets

Shanghai, Sydney, Sensex, Hang Seng, Nikkei finish in red while Seoul, Taiex edge higher

Stock markets in Asian region slip on Wednesday, 9 December 2009, after US corporate news increased worries on export demand and debt rating downgrades sent investors seeking safety ahead of the year end. The mood remained extremely cautious with doubts about the pace of economic recovery and Dubai debt worries resurfacing again. Focus has now shifted to November US retail sales and a deluge of Chinese economic data due on Friday to gauge how strong the global recovery really is.

On Wall Street, the Dow suffered a triple-digit loss by the closing bell Tuesday, as lingering concerns about the pace of economic recovery, both at home and abroad, weighed on stocks all day. The Dow Jones Industrial Average finished lower by 104 points, or 1%, to 10,286. The S&P 500 fell off by 11 points, or 1%, to 1092 and the Nasdaq slid 17 points or 0.8% to 2173.

In the commodity market, crude oil climbed above $73 a barrel in New York after an industry report showed U.S. supplies dropped, bolstering optimism that fuel demand in the biggest energy-consuming nation will increase.

Crude oil for January delivery gained as much as 72 cents, or 1 percent, to $73.34 a barrel in electronic trading on the New York Mercantile Exchange. It was at $73.01 at 3:12 p.m. in Singapore. Yesterday, the contract fell $1.31 to $72.62 a barrel, the lowest settlement since 9 October 2009.

Brent crude oil for January settlement rose as much as 53 cents, or 0.7%, to $75.72 a barrel on the London-based ICE Futures Europe exchange. It was at $75.52 a barrel at 3:12 p.m. Singapore time. The contract fell $1.24, or 1.6%, to $75.19 a barrel yesterday.

Gold gained in London as a weaker dollar attracted some investors to the metal after its longest losing streak since August. Gold for immediate delivery gained as much as $10.10, or 0.9%, to $1,138.50 an ounce and was at $1,136.02 at 9:22 a.m. local time. Bullion futures for February delivery on the New York Mercantile Exchange’s Comex unit were 0.6% lower at $1,136.70.

In the currency market, the U.S. dollar plummeted against its major counterparts on the back of higher oil prices.

The Japanese currency strengthened against major currencies for fourth day to as high as 88.18 against the greenback today in Tokyo, compared with 88.90 yesterday close.

The Hong Kong dollar was trading at HK$ 7.7504 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 under pressure on Wednesday after news about debt woes in Greece and Dubai gave investors a reason to sell riskier currencies. At the local close, the dollar was trading at $US0.9067, down from yesterday’s $US0.9127, but slightly recovered from the day’s low at $US0.9016, with some dealers saying the selling pressure that started in New York overnight was carried over to provide trading momentum.

In Wellington trade, the New Zealand dollar consolidated at lower levels today after investors shunned speculative currencies again and as the focus turned to tomorrow's monetary policy statement from the Reserve Bank of New Zealand (RBNZ). The NZ dollar was US70.83c at 5pm, little changed from US70.80c at 8am and down from US71.47c at 5pm yesterday.

The South Korean won closed at 1,161.60 won to the U.S dollar, down 6.5 won from Tuesday's close of 1,155.10.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.2750, 0.0750 up from Tuesday’s close of NT$32.3500.

In equities, Asian shares were lower as renewed risk aversion gripped markets after Wall Street's sharp decline, while weaker-than-expected economic growth data in Japan hurt stocks there.

In Japan, shares market endured losses for second day in row, as markets around the region were sold off on continuing concerns about the health of the global economy rekindled by credit problems in Dubai and Greece. Sentiments are further dampened after the cabinet office data showed Japan’s gross domestic product rose at an annual 1.3% rate in the quarter ended September 2009, slower than the 4.8% the initial estimation by government as cautious companies decided to save, not to spend.

At the closing bell, the Nikkei 225 Stock Average index was at 10,004.72, eased 135.75 points or 1.34% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange tumbled 11.76 points, or 1.31%, to 884.94.

In Mainland China, share market plummeted with broad based sell off across the sector, as lingering concerns about the pace of economic recovery, both at home and abroad. Financials dragged the most amid worries Beijing will curb new lending in 2010 to avert asset bubbles, while materials, industrials, and energy stocks sold heavily as renewed risk aversion gripped markets in the wake of a sharp fall On Wall Street and European market.

The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, plummeted 57.1 points, or 1.73%, to 3,239.56, meanwhile the Shenzhen Component Index on the smaller Shenzhen Stock Exchange tumbled 1.14% or 158.11 points, to 13,772.17. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, stumbled 1.92%, to 3,554.48.

In Hong Kong, the benchmark continued its southward movement registering the fourth consecutive dip in row in response to weakness in European and US markets overnight, reignited risk aversion due to uncertainties over the prospects for the recovery. At the closing bell, the Hang Seng Index stumbled 318.76 points, or 1.44%, to 21,741.76, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, shrank 252.74 points, or 1.92%, to 12,899.36.

In Australia, the stock market extended losing streak for third consecutive day, as sluggish commodity prices, widening nation’s trade deficit, and on continuing concerns about the health of the global economy. At the closing bell, the benchmark S&P/ASX200 index retreated 32.7 points, or 0.7%, to 4,637.9, meanwhile the broader All Ordinaries retracted 33.80 points, or 0.72%, to 4,652.6.

On the economic front, the statistics bureau of Australia said that the number of loans granted to build or buy houses and apartments in Australia dropped 1.4% in October from the previous month. The Australian Bureau of Statistics said country’s trade deficit increased from A$1.85 billion in September to a revised A$2.38 billion in October. The Westpac-Melbourne Institute index of consumer sentiment dropped from 118.3 in November to 113.8 points in December.

In New Zealand, benchmark index continued its southward movement on Wednesday registering the fourth consecutive dip in a row. The NZX50 declined 0.31% or 9.67 points to 3127.64. The NZX 15 decreased 0.37% or 21.11 points to close at 5665.31.

In South Korea, stocks closed higher as investors shrugged off concerns that Dubai debt woes and a cut in Greece's credit rating may dent the global economic recovery. Reversing earlier losses, the benchmark Korea Composite Stock Price Index (KOSPI) rose 6.39 points to 1,634.17.

In Singapore, stocks market dragged by financials and blue chips stocks after debt rating downgrades of Greece sent investors seeking safety ahead of the year-end. At the closing bell, the blue chip Straits Times Index was at 2,797.21, fell 8.29 points or 0.3%, off an intraday low of 2,784.64.

In Taiwan, Stock market in Taiwan continued to teeter-totter between the gains and losses as it finished Wednesday, 9 December 2009, at 17 month high, as investors ignored weakness on Wall Street and piled into shares of big tech companies with better earnings outlooks. The benchmark Taiex share index resumed with gains, by finishing the day higher by 28.71 points or 0.37% at 7797.42, the highest closing since 26 June 2008 when market finished the day at 7811.80.

In Philippines, the stock market closed lower tracking the lackluster performance of overseas markets following the losses on the Wall Street overnight. At the concluding bell, the benchmark index PSEi fell 1.02% or 30.82 points to 2,981.25, while the All Shares index tumbled 0.83% or 15.64 points to 1,860.36.

In India, the key benchmark indices lost ground in choppy trade as weak global stocks weighed on investor sentiment. The BSE Sensex was down 102.46 points or 0.59% to 17,125.22. The S&P CNX Nifty was down 35.95 points or 0.68% to 5112.00.

Elsewhere, Malaysia’s Kula Lumpur Composite index finished lower at 1255.76 while stock markets in Indonesia’s Jakarta Composite index inched down 2.59 points ending the day higher at 2481.30.

In other regional market, a drop for financials dragged Europe stocks lower on Wednesday, led lower by a further fall in the Greek bank sector as well as a decline for Man Group on a drop in performance in one of its key funds.

On a regional level, the U.K. FTSE 100 index declined 0.2% to 5,214.20 ahead of the U.K. government's pre-budget report where it will flag up future fiscal targets, due at 7:30 a.m. Eastern. The French CAC-40 index declined 0.5% or 20.41 points to 3,765 and the German DAX index declined 0.35% or 20 points to 5,669.

BSE Bulk Deals to Watch - Dec 9 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
9/12/2009 524348 Aarti Drugs SETU SECURITIES PVT LTD B 81832 113.80
9/12/2009 524348 Aarti Drugs MATRIX EQUITRADE PVT. LTD. B 71559 107.11
9/12/2009 524348 Aarti Drugs HITESH SHASHIKANT JHAVERI B 147130 114.15
9/12/2009 524348 Aarti Drugs Naman Securities & Finance Pvt. Ltd. B 61770 112.23
9/12/2009 524348 Aarti Drugs JMP SECURITIES PVT LTD B 62177 112.65
9/12/2009 524348 Aarti Drugs A.A.DOSHI SHARE & STOCK BROKERS LTD B 81870 113.51
9/12/2009 524348 Aarti Drugs SETU SECURITIES PVT LTD S 76936 113.47
9/12/2009 524348 Aarti Drugs MATRIX EQUITRADE PVT. LTD. S 71559 107.37
9/12/2009 524348 Aarti Drugs HITESH SHASHIKANT JHAVERI S 144939 114.00
9/12/2009 524348 Aarti Drugs A.A.DOSHI SHARE & STOCK BROKERS LTD S 81870 113.88
9/12/2009 530901 ACIL Cot Inds PENGUINE EXIM PVT LTD B 75000 30.70
9/12/2009 530901 ACIL Cot Inds SREE RAM PLYWOOD MANUFACTURING COMPANY PRIVATE LIMITED B 85000 30.70
9/12/2009 530901 ACIL Cot Inds HOOGHLY MILLS PROJECTS LTD B 70000 30.70
9/12/2009 530901 ACIL Cot Inds TODI SECURITIES PVT LTD B 220000 31.17
9/12/2009 530901 ACIL Cot Inds THIRANI SECURITIES PVT. LTD . B 100000 30.70
9/12/2009 530901 ACIL Cot Inds KRISHNA DEVI KEDIA S 66273 30.70
9/12/2009 530901 ACIL Cot Inds MAHENDRA N SURANA HUF S 150000 30.70
9/12/2009 530901 ACIL Cot Inds KUSUM SURANA S 125000 30.70
9/12/2009 530901 ACIL Cot Inds NIHALCHAND SURANA S 75050 30.70
9/12/2009 530901 ACIL Cot Inds RAJENDRA N SURANA S 125000 30.70
9/12/2009 530901 ACIL Cot Inds BEENA R. SURANA S 149000 30.70
9/12/2009 530901 ACIL Cot Inds RAJENDRA NIHALCHAND SURANA S 151307 31.56
9/12/2009 530901 ACIL Cot Inds MAHENDRA N. SURANA S 150000 30.70
9/12/2009 511706 Action Fin M/S.ULTRA CARE SECURITIES P.LTD B 180000 20.50
9/12/2009 511706 Action Fin PKJ SHARE BROKER LTD S 190000 20.48
9/12/2009 517041 Ador Welding SETU SECURITIES PVT LTD B 131367 203.71
9/12/2009 517041 Ador Welding OPG SECURITIES P LTD B 115640 196.30
9/12/2009 517041 Ador Welding ANGEL INFIN PRIVATE LIMITED B 84475 202.78
9/12/2009 517041 Ador Welding SETU SECURITIES PVT LTD S 133157 203.02
9/12/2009 517041 Ador Welding OPG SECURITIES P LTD S 115640 197.54
9/12/2009 504629 Anil Special SAMTUL INVESTMENTS LTD S 150000 11.41
9/12/2009 507526 Associated Alco PRASANN KUMAR KEDIA HUF B 114600 34.35
9/12/2009 507526 Associated Alco OCIANIC DEVELOPERS P LTD S 114600 34.35
9/12/2009 533138 ASTEC LIFE AANGI SHARES & SERVICES PVT. LTD. B 113521 94.81
9/12/2009 533138 ASTEC LIFE AANGI SHARES & SERVICES PVT. LTD. S 95521 94.02
9/12/2009 508136 B&A NATIONAL INSURANCE CO LTD S 28000 230.86
9/12/2009 500045 Bellary Steels JMP SECURITIES PVT LTD B 1276373 3.18
9/12/2009 526853 Bilcare PASHA FINANCE PVT. LTD. S 115674 432.62
9/12/2009 524388 Crazy Infotech SRINIVASAN SWAMINATHAN S 373621 1.65
9/12/2009 532768 FIEM Inds NARESH KUMAR HUF B 111100 117.03
9/12/2009 532768 FIEM Inds NARESH KUMAR HUF S 70602 119.47
9/12/2009 532022 Filatex Fash SAGAR TEX CREATION PRIVATE LIMITED B 50000 14.68
9/12/2009 533048 GI ENGINERG KADAM HOLDING LTD S 41792 19.41
9/12/2009 533104 GLOBUS SPR SMART EQUITY BROKERS PRIVATE LIMITED B 153081 96.73
9/12/2009 533104 GLOBUS SPR OPG SECURITIES P LTD B 135192 97.62
9/12/2009 533104 GLOBUS SPR SMART EQUITY BROKERS PRIVATE LIMITED S 153081 96.99
9/12/2009 533104 GLOBUS SPR OPG SECURITIES P LTD S 135192 97.39
9/12/2009 511543 GSB Finance GSB SECURITIES PVT LTD B 50000 9.10
9/12/2009 511543 GSB Finance GSB SHARE CUSTODIAN SERVICES LTD S 50000 9.10
9/12/2009 524342 Indo Borax SRINIVAS LAXMAIAH MACHERLA B 20924 85.00
9/12/2009 524342 Indo Borax VALLA KATI B 39608 82.41
9/12/2009 524342 Indo Borax SRINIVAS LAXMAIAH MACHERLA S 20924 83.20
9/12/2009 524342 Indo Borax VALLA KATI S 39608 82.80
9/12/2009 524342 Indo Borax SAINATH HERBAL CARE MARKETING P.LTD S 54911 83.76
9/12/2009 509069 Infomedia 18 REKHA RAKESH JHUNJHUNWALA S 141943 78.13
9/12/2009 532940 J Kumar Infra KISHORE GAVRICHAND SHAH S 160000 180.62
9/12/2009 524378 JMDE Pack BHUPENDRA MEHTA S 30043 3.29
9/12/2009 522259 Kalindi Rail MBL & Co. LTD. B 67258 165.42
9/12/2009 522259 Kalindi Rail MBL & Co. LTD. S 67258 164.93
9/12/2009 532686 Kernex Micro OPG SECURITIES P LTD B 241865 124.91
9/12/2009 532686 Kernex Micro HITESH SHASHIKANT JHAVERI B 90005 131.49
9/12/2009 532686 Kernex Micro OPG SECURITIES P LTD S 241865 125.20
9/12/2009 532686 Kernex Micro A.A.DOSHI SHARE & STOCK BROKERS LTD S 62988 128.80
9/12/2009 530813 KRBL OPG SECURITIES P LTD B 161889 188.25
9/12/2009 530813 KRBL OPG SECURITIES P LTD S 161889 188.28
9/12/2009 513685 Multiarc India VIMLA JAJOO S 125437 4.55
9/12/2009 519560 Neha Intl S K INVESTMENTS B 100000 31.60
9/12/2009 519560 Neha Intl SURAJBHAN CHHABRA B 165000 31.60
9/12/2009 519560 Neha Intl VINOD REDDY GADDAM S 660301 31.60
9/12/2009 519560 Neha Intl VINOD REDDY GADDAM S 371000 31.60
9/12/2009 531996 Odyssey Corp AASHNAS AGARWAL B 89990 19.00
9/12/2009 531996 Odyssey Corp SHARDA CREATIONS PRIVATE LIMITED S 90000 19.00
9/12/2009 531496 Omkar Overseas FALGUNIBEN MAHAVIRBHAI GOHIL B 33195 35.55
9/12/2009 531769 PFL Infotech SANJAY MANAKCHAND KOTECHA B 30000 15.94
9/12/2009 531769 PFL Infotech KARISHMA DEELIPKUMAR KOTECHA B 45000 15.50
9/12/2009 531769 PFL Infotech ANKITA DEELIPKUMAR KOTECHA B 45000 15.50
9/12/2009 531769 PFL Infotech SHANTI KUMAR SURANA B 50000 15.50
9/12/2009 531769 PFL Infotech INDRASEN SHAH B 25000 15.50
9/12/2009 531769 PFL Infotech ROOPLATA MANAKCHAND JAIN S 50000 15.50
9/12/2009 531769 PFL Infotech INFOTECH INFIN AND TRADING PRIVATE LIMITED S 300000 15.50
9/12/2009 531769 PFL Infotech P KUMAR S 34265 15.70
9/12/2009 531855 Prabhav Inds CHUNILAL K AGRAWAL B 50000 30.50
9/12/2009 531855 Prabhav Inds RAMESHVIRAJ SHAH B 350000 30.50
9/12/2009 531855 Prabhav Inds SHREENATHJI FINSTOCK PVT LTD S 324800 30.53
9/12/2009 531855 Prabhav Inds KAVIT INVESTMENT PVT LTD S 100000 30.50
9/12/2009 517522 Rajratan Global SANGEETA CHORDIA B 61000 99.85
9/12/2009 517522 Rajratan Global MIDEX GLOBAL PVT LTD. S 60000 99.85
9/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA B 231484 30.88
9/12/2009 502587 Rama Pulp OMPARKASH GUPTA B 44204 30.46
9/12/2009 502587 Rama Pulp MAHIPAT IWDARMAL MEHTA S 108893 31.09
9/12/2009 502587 Rama Pulp MARIGOLD INVESTRADE PRIVATE LIMITED S 121302 31.22
9/12/2009 502587 Rama Pulp VISHESH SHAHRA S 94806 30.01
9/12/2009 590077 Ranklin Sol P SHARMILA S 27500 56.63
9/12/2009 511585 Regency Trust SRINJANI KAJARIA S 20000 14.97
9/12/2009 531099 Rubra Med NILESH CHANDRAKANT SHETH S 30000 24.80
9/12/2009 531569 Sanjivani Par LEENA SASHIKANTBHAI SHAH B 40000 30.22
9/12/2009 532102 SBEC Sugar LONGWELL INVESTMENT PRI B 410000 13.30
9/12/2009 532102 SBEC Sugar TECHNICAST ENGINEERS LIMITED S 480000 13.31
9/12/2009 532323 Shiva Cement VISHWAS SECURITIES LTD. B 1335154 11.08
9/12/2009 532323 Shiva Cement COASTAL FERROTECH LIMITED S 850000 10.97
9/12/2009 532323 Shiva Cement VISHWAS SECURITIES LTD. S 1163846 11.07
9/12/2009 526500 Sterling Green JMP SECURITIES PVT LTD B 115923 31.66
9/12/2009 526500 Sterling Green BHAVIN Y MEHTA B 44161 30.49
9/12/2009 526500 Sterling Green JMP SECURITIES PVT LTD S 112397 31.94
9/12/2009 526500 Sterling Green BHAVIN Y MEHTA S 34160 30.40
9/12/2009 526133 Supertex Inds SHAISHIL T JHAVERI B 500684 3.35
9/12/2009 526133 Supertex Inds SHAISHIL T JHAVERI S 500684 3.27
9/12/2009 526133 Supertex Inds PRADIPBHAI RAJNIKANT RAITHATHA S 500000 3.14
9/12/2009 500408 Tata Elxsi SMART EQUITY BROKERS PRIVATE LIMITED B 157758 262.68
9/12/2009 500408 Tata Elxsi OPG SECURITIES P LTD B 325505 263.99
9/12/2009 500408 Tata Elxsi SMART EQUITY BROKERS PRIVATE LIMITED S 157758 262.83
9/12/2009 500408 Tata Elxsi OPG SECURITIES P LTD S 325505 264.11
9/12/2009 519228 Temptation Food COPTHALL MAURITIUS INVESTMENT LIMITED S 324542 35.72
9/12/2009 533121 THINKSOFT RAJENDRAKUMAR RATANCHAND OSWAL HUF B 103200 263.72
9/12/2009 533121 THINKSOFT OPG SECURITIES P LTD B 114155 264.63
9/12/2009 533121 THINKSOFT RAJENDRAKUMAR RATANCHAND OSWAL HUF S 103200 263.09
9/12/2009 533121 THINKSOFT OPG SECURITIES P LTD S 114155 264.42
9/12/2009 526139 Transgene Bio HITESH SHASHIKANT JHAVERI B 117146 54.37
9/12/2009 526139 Transgene Bio JMP SECURITIES PVT LTD B 154200 51.33
9/12/2009 526139 Transgene Bio HITESH SHASHIKANT JHAVERI S 86463 53.20
9/12/2009 526139 Transgene Bio JMP SECURITIES PVT LTD S 154269 52.66
9/12/2009 500231 Umang Dairies HITESH SHASHIKANT JHAVERI B 90009 31.10
9/12/2009 500231 Umang Dairies HITESH SHASHIKANT JHAVERI S 72352 31.10
9/12/2009 500231 Umang Dairies HITESH RAMJI JAVERI S 70000 31.10
9/12/2009 500231 Umang Dairies HARSHA HITESH JAVERI S 76227 31.10
9/12/2009 523796 Viceroy Hotels ICG Q LTD S 217332 37.34
9/12/2009 531249 Well Pack Papers SHOBHNABEN R PARMAR B 28765 304.65
9/12/2009 531249 Well Pack Papers PANDYA YAMINIBEN M B 27026 307.74
9/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR B 29206 303.73
9/12/2009 531249 Well Pack Papers OMPARKASH GUPTA B 31359 308.27
9/12/2009 531249 Well Pack Papers SHOBHNABEN R PARMAR S 26600 312.56
9/12/2009 531249 Well Pack Papers PANDYA YAMINIBEN M S 27025 309.98
9/12/2009 531249 Well Pack Papers LAXMAN DHIRUBHAI PARMAR S 26227 306.46
9/12/2009 531249 Well Pack Papers OMPARKASH GUPTA S 29995 306.62
9/12/2009 522029 Windsor Mach SAINATH HERBAL CARE MARKETING P.LTD B 175583 23.83
9/12/2009 532648 Yes Bank NATIONAL PENSION SERVICE B 1812260 266.00

NSE Bulk Deals to Watch - Dec 9 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,66736,114.12,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,BUY,106322,113.54,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,BP FINTRADE PRIVATE LIMITED,BUY,63028,110.76,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,M/S RUKHMANI TRADERS,BUY,58572,114.49,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,MODEX INTERNATIONAL SECURITIES LTD.,BUY,72657,108.73,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,RAHUL DOSHI,BUY,185010,114.19,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,SETU SECURITIES LTD,BUY,167490,114.39,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,145654,114.38,-
09-DEC-2009,ADORWELD,Ador Welding Limited,SETU SECURITIES LTD,BUY,124722,203.75,-
09-DEC-2009,ADORWELD,Ador Welding Limited,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,75170,203.94,-
09-DEC-2009,ANSALHSG,Ansal Housing and Constru,BP FINTRADE PRIVATE LIMITED,BUY,106240,72.94,-
09-DEC-2009,ANSALHSG,Ansal Housing and Constru,SETU SECURITIES LTD,BUY,109910,73.69,-
09-DEC-2009,ASTEC,Astec LifeSciences Ltd,RAHUL DOSHI,BUY,75046,94.46,-
09-DEC-2009,AUSTRAL,Austral Coke & Projects L,ANURADHA MEETAL,BUY,1625313,7.90,-
09-DEC-2009,FIEMIND,Fiem Industries Limited,NARESH KUMAR HUF,BUY,147125,116.54,-
09-DEC-2009,FIRSTWIN,First Winner Industries L,N.VGRAPICE & ADVERTISING P LTD,BUY,250000,23.18,-
09-DEC-2009,GPIL,Godawari Power And Ispat,BIRLA SUNLIFE ASSET MANAGEMENT CO LTD A/C PMS,BUY,162992,159.49,-
09-DEC-2009,JINDCOT,Jindal Cotex Ltd,SAPPHIRE LAND DEVELOPMENT PRIV,BUY,130056,110.25,-
09-DEC-2009,JKIL,J.Kumar Infraprojects Lim,SURENDRAKUMAR AGARWAL,BUY,3005,180.99,-
09-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,MBL & COMPANY LTD.,BUY,85335,164.98,-
09-DEC-2009,KERNEX,Kernex Microsystems (Indi,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,BUY,64520,132.40,-
09-DEC-2009,KERNEX,Kernex Microsystems (Indi,OM INVESTMENTS,BUY,92093,125.00,-
09-DEC-2009,KERNEX,Kernex Microsystems (Indi,SETU SECURITIES LTD,BUY,80709,132.36,-
09-DEC-2009,KERNEX,Kernex Microsystems (Indi,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,BUY,90020,132.40,-
09-DEC-2009,KERNEX,Kernex Microsystems (Indi,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,104079,132.26,-
09-DEC-2009,NUCLEUS,Nucleus Software Exports,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,BUY,236294,130.89,-
09-DEC-2009,SABTN,Sri Adhikari Brothers Tel,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,10,41.90,-
09-DEC-2009,SABTN,Sri Adhikari Brothers Tel,WALLFORT FINANCIAL SERVICES LTD,BUY,62206,41.46,-
09-DEC-2009,SHOPERSTOP,Shoppers Stop Limited,RELIANCE MUTUAL FUND,BUY,500000,349.98,-
09-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAJENDRAKUMAR RATANCHAND OSWAL HUF,BUY,96446,263.75,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,AJAY ASSET MANAGEMENT PRIVATE LIMITED,SELL,61194,114.23,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,SELL,52322,111.85,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,BP FINTRADE PRIVATE LIMITED,SELL,59045,110.77,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,M/S RUKHMANI TRADERS,SELL,58344,114.07,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,MODEX INTERNATIONAL SECURITIES LTD.,SELL,72657,108.32,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,RAHUL DOSHI,SELL,185010,114.50,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,SETU SECURITIES LTD,SELL,159660,114.17,-
09-DEC-2009,AARTIDRUGS,Aarti Drugs Ltd.,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,145654,113.99,-
09-DEC-2009,ADORWELD,Ador Welding Limited,SETU SECURITIES LTD,SELL,124686,203.31,-
09-DEC-2009,ADORWELD,Ador Welding Limited,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,75170,204.01,-
09-DEC-2009,ANSALHSG,Ansal Housing and Constru,BP FINTRADE PRIVATE LIMITED,SELL,85348,73.37,-
09-DEC-2009,ANSALHSG,Ansal Housing and Constru,SETU SECURITIES LTD,SELL,49279,73.59,-
09-DEC-2009,ASTEC,Astec LifeSciences Ltd,RAHUL DOSHI,SELL,85046,94.56,-
09-DEC-2009,AUSTRAL,Austral Coke & Projects L,ANURADHA MEETAL,SELL,1625313,7.86,-
09-DEC-2009,FIEMIND,Fiem Industries Limited,DAMANI MANMOHAN,SELL,82370,120.75,-
09-DEC-2009,FIEMIND,Fiem Industries Limited,NARESH KUMAR HUF,SELL,99469,119.80,-
09-DEC-2009,FIRSTWIN,First Winner Industries L,HARISHBHAI K PATEL,SELL,250000,23.18,-
09-DEC-2009,INFOMEDIA,Infomedia 18 Limited,REKHA JHUNJHUNWALA,SELL,122446,78.73,-
09-DEC-2009,JKIL,J.Kumar Infraprojects Lim,SURENDRAKUMAR AGARWAL,SELL,171331,180.57,-
09-DEC-2009,KALINDEE,Kalindee Rail Nirman (Eng,MBL & COMPANY LTD.,SELL,85335,165.67,-
09-DEC-2009,KERNEX,Kernex Microsystems (Indi,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,SELL,38494,131.43,-
09-DEC-2009,KERNEX,Kernex Microsystems (Indi,OM INVESTMENTS,SELL,92093,124.98,-
09-DEC-2009,KERNEX,Kernex Microsystems (Indi,SETU SECURITIES LTD,SELL,61986,131.81,-
09-DEC-2009,KERNEX,Kernex Microsystems (Indi,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,SELL,90020,132.40,-
09-DEC-2009,KERNEX,Kernex Microsystems (Indi,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,95889,129.23,-
09-DEC-2009,NUCLEUS,Nucleus Software Exports,ASIT C MEHTA INVESTMENT INTERRMEDIATES LTD.,SELL,236294,131.21,-
09-DEC-2009,SABTN,Sri Adhikari Brothers Tel,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,48015,40.75,-
09-DEC-2009,SABTN,Sri Adhikari Brothers Tel,WALLFORT FINANCIAL SERVICES LTD,SELL,2206,39.50,-
09-DEC-2009,SHOPERSTOP,Shoppers Stop Limited,UTI MUTUAL FUND A/C EQUITY FUND,SELL,350000,350.00,-
09-DEC-2009,THINKSOFT,Thinksoft Global Ser Ltd,RAJENDRAKUMAR RATANCHAND OSWAL HUF,SELL,96446,263.20,-

Banking, metal bears pull market 102 points lower

Today's major news

Alok Industries to wind up realty foray: the stock surged 5.36%.

Suzlon Energy bags contract from Rajasthan State Mines: the stock closed lower by 1.00%.

HCL inks tech infrastructure pact with Newscorp arm; the stock rose 1.96%.

Kiri Dyes to buy DyStar for 1 Euro; the stock jumps 4.39%.

Orient Abrasives is setting up a wind turbine project; the stock ends 2.59% higher.

Click here for more stories

Post-market summary

Global signals

European indices opened lower on Wednesday, with banks stocks under pressure on renewed concerns over their exposure to Dubai’s debt crisis. At the time of writing this report FTSE 100 was down by 0.35%.

Among major Asian indices, except Kospi all other indices closed lower. Nikki was able to sustain 10000 level. SGX Nifty closed 37 points lower.

On Wednesday, US stock futures rose marginally as Obama administration plans to extend the bailout package until the next October.

Indian indices

In the lack of triggers that could provide direction to the domestic market, the Sensex continued its volatility today also swinging by 170 points for the day. The market however closed lower on the back of weak global cues and selling pressure in metal and banking stocks. The Sensex opened 23 points lower; the day’s high was 17228 and the day’s low was 17057. At closing bell, the Sensex was at 17125, 102 points lower. Nifty closed 36 points lower at 5112.

Market sentiment

The market breadth, the number of advancing shares to declining ones, was marginally positive. Of the 2,888 stocks on the BSE, 1,507 stocks advanced, whereas 1,306 stocks declined. Seventy five stocks closed unchanged.

Sectoral & stock screening

Of the 13 sector indices on the BSE, five indices closed green while eight indices closed red. BSE IT surged the most with gains of 0.81% followed by BSE TECk that rose 0.74% for the day. Among losers BSE Metal slid the most by 2.09% followed by BSE Bankex that fell by 1.58%.

On stocks’ front, Tata Teleservices topped the chart with gain of 4.28% followed by Idea Cellular that rose by 3.96% and NMDC that rose by 3.90%. Among losers, Tata Steel slid the most by 4.17%, followed by Bank of Baroda that fell by 3.94% and Indiabulls Financial Services that shed 3.92%.

Viewing volumes

India’s second largest realty company Unitech saw a turnover of more than 1.57 crore shares to be followed by Suzlon Energy (1.41 crore shares), IFCI (1.15 crore shares), Reliance Natural Resources (0.50 crore shares) and Bharti Airtel (0.35 crore shares).

Tata Steel tumbles 4%

The key benchmark indices lost ground in choppy trade as weak global stocks weighed on investor sentiment. The BSE Sensex fell 102.46 points or 0.59%, off close to 100 points from the day's high and up close to 70 points from the day's low. Metal and banking stocks led the decline. Index heavyweight Reliance Industries (RIL) came off the day's low. IT stocks rose.

Intraday volatility was high. The market recovered soon after an initial slide caused by weak Asian stocks. It came off the higher level soon. The recovery resumed once again in mid-morning trade with the Sensex hitting positive zone for a brief period tracking higher US index futures. The market weakened once again later. The market came off the lower level after hitting a fresh intraday low in early afternoon trade. The market weakened again in late trade before cutting losses.

India VIX, a volatility index based on the S&P CNX Nifty index option prices, rose 2% to 26.99. India VIX is a measure of the market's expectation of volatility over the next 30 calendar days.

Meanwhile, Mumbai based realty firm Godrej Properties' initial public offering (IPO) of was subscribed 1.23 times by 16:00 IST on the first day of the issue today, 9 December 2009. The price band is at Rs 490-530 per share. The issue will close on 11 December 2009.

The initial public offer (IPO) of JSW Energy, a part of Sajjan Jindal-led JSW Group, was subscribed 1.65 times by 16:00 IST on the last day of issue today, 9 December 2009. The price band for the IPO is Rs 100 to Rs 115.

The government does not need to borrow more than planned to fund its additional proposed expenditure, Finance Minister Pranab Mukherjee said on Tuesday. The government said on Tuesday it will seek parliamentary approval to spend an extra Rs 25725-crore ($5.5 billion) for the fiscal year to end-March 2010.

The gross additional expenditure would be Rs 30943 crore, of which 5217 crore would be met through savings, the government said. The government will spend an extra Rs 3000 crore on fertiliser subsidies and Rs 3460 crore on food subsidies. The government would also spend Rs 800 crore on an equity infusion in state-run carrier Air India.

Capital inflows into India reflect investor confidence in the economy, the Reserve Bank of India (RBI) governor D Subbarao said on Monday 7 December 2009 at a televised panel discussion, although measures to control them could not be ruled out in case there was a surge in foreign funds that needed to be contained. "Going ahead should there be a surge of capital flows, I think we cannot rule out active capital management," Subbarao said. The RBI governor said he is not willing to debate at this time on the instruments or timing, as this will depend on how the situation evolves.

"In the medium term, task is to improve absorptive capacity of the economy. But going forward calibrating reserves roughly corresponding to current account deficit is the task," Subbarao said. C. Rangarajan, chairman of the Prime Minister's Economic Advisory Council, said in the discussion that inflows in the current year would be manageable. Rangarajan had said late last month that India could absorb as much as $100 billion of capital flows in 2009/10, well above a projected $57-$60 billion.

The Reserve Bank of India (RBI) may reportedly ask banks to impose a ceiling on their investments in mutual funds and also prescribe norms for such investments, as it attempts to tighten rising exposure and rein in deployment of banking funds indirectly in sectors or companies to which banks could not lend directly due to exposure limits.

European shares were lower on Wednesday, paced by falls in energy stocks and drugmakers as investors awaited fresh direction, possibly from the UK pre-budget report. The key benchmark indices in France, UK and Germany fell by between 0.16% to 0.35%.

There was plenty for investors to worry about, after Tuesday's ratings downgrade for Greece and a raft of Dubai government-controlled companies.

UK banks HSBC Holdings, Standard Chartered, Lloyds Banking Group and Royal Bank of Scotland have reportedly agreed to reschedule Dubai World's debt. The four banks have asked for more information from Dubai World about interest on the planned delayed payments and will hold a meeting later this month as they await a response, Dubai's Al Bayan newspaper said. It added that Dubai World is seeking to restructure around $26 billion of debt.

Meanwhile, Greek Finance Minister George Papaconstantinou said in a television interview on Wednesday that there is no risk Greece will default on its debt. Fitch Ratings on Tuesday downgraded Greece's sovereign debt rating to BBB+ from A-, making the nation the first in the euro zone to be rated less than single A.

Asian shares were lower Wednesday as renewed risk aversion gripped markets after Wall Street's sharp decline on Tuesday, while weaker-than-expected economic growth data in Japan hurt stocks there. The key benchmark indices in China, Hong Kong, Japan, Singapore and Indonesia fell by between 0.3% to 1.73%. But the key benchmark indices in South Korea and Taiwan rose by between 0.37% to 0.39%.

Japan's Gross domestic product rose at an annual 1.3% pace in September quarter, slower than the 4.8% reported in preliminary figures last month, the Cabinet Office said today in Tokyo.

Shares in China were being led lower by banks on concerns of capital raising leading to massive stock supply. Industrial Bank Co. said its shareholders had approved its plan to raise CNY18 billion in a rights issue to boost the lender's capital adequacy ratio and support rapid lending growth in the next few years.

China is experiencing a clear V-shaped economic recovery, Zhu Min, vice-governor of the People's Bank of China, was cited as saying on Tuesday.

Trading in US index futures indicated Dow could rise 26 points at the opening bell on Wednesday, 9 December 2009.

US stocks fell on Tuesday as 3M Co's disappointing outlook and a weak sales report from McDonald's Corp compounded investors' concerns about the outlook for a global recovery. The Dow Jones industrial average was down 104.14 points, or 1%, at 10,285.97. The Standard & Poor's 500 Index was down 11.31 points, or 1.03 % at 1,091.94. The Nasdaq Composite Index was down 16.62 points, or 0.76% at 2,172.99.

The BSE Sensex fell 102.46 points or 0.59% to 17,125.22. The Sensex rose 0.28 points at the day's high of 17227.96 in mid-morning trade. The Sensex fell 170.31 points at the day's low of 17057.37 in early afternoon trade.

The S&P CNX Nifty fell 35.95 points or 0.7% to 5112. Nifty December 2009 futures were at 5,126.25, at a premium of 14.25 points as compared to the spot closing of 5,112. Turnover in NSE's futures & options (F&O) segment was Rs 61,314.31 crore, lower than Rs 69,428.98 crore on Tuesday, 8 December 2009.

BSE clocked a higher turnover of Rs 5099 crore, higher than Rs 4968.65 crore on Tuesday, 8 December 2009.

The market breadth, indicating the overall health of the market was positive. On BSE, 1500 shares advanced as compared with 1312 that declined. A total of 76 shares remained unchanged.

Among the 30-member Sensex pack, 17 fell while the rest rose.

A deluge of global liquidity has boosted stocks across the globe this year. Governments and central banks around the world have injected trillions of dollars in the past one year to pull the world out of a most severe recession since the 1930s Great Depression. The Sensex is up 7477.91 points or 77.51% in calendar year 2009, as on 9 December 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8964.82 points or 109.85% as on 9 December 2009.

Coming back to today's trade, the BSE Mid-Cap index fell 0.58%. The BSE Small-cap index rose 0.36%. Both the indices outperformed the Sensex.

The sectoral indices on BSE showed a mixed trend. The BSE IT index (up 0.81%), the BSE Teck index (up 0.74%), the BSE Auto index (up 0.69%), the BSE PSU index (was flat), the BSE Consumer Durables index (was flat), the BSE Capital Goods index (down 0.19%), the BSE Healthcare index (down 0.29%), the BSE FMCG index (down 0.43%), the BSE Realty index (down 0.5%), the BSE Oil & Gas index (down 0.55%), the BSE Power index (down 0.58%) outperformed the Sensex.

The BSE Metal index (down 2.09%), the BSE Bankex (down 1.58%) underperformed the Sensex

India's largest private sector firm by market capitalisation Reliance Industries (RIL) fell 0.76% to Rs 1072.05 on profit taking. Nevertheless, the stock came off the day's low of Rs 1063 after the company said it has no plans to buy any debt of LyondellBasell. A newspaper had reported on Wednesday that RIL is likely to buy out some of the bankrupt petrochemical company's debt.

The RIL stock had risen 2.33% on Tuesday on reports the company is in talks with more than a dozen banks to ready a $8-10 billion war chest for the acquisition of LyondellBasell, the world's third-largest petrochemical company that has filed for bankruptcy in the US.

Earlier, the RIL stock had tumbled 3.07% on Monday, 7 December 2009, after bonus shares issued by the company were admitted to trading. The company has issued one fully paid bonus equity share for every one existing fully paid equity share of Rs 10 each.

Banking shares fell on profit taking. India's largest private sector bank by net profit ICICI Bank fell 1.92%. ICICI Bank has launched a home-loan scheme under which 8.25% interest rate will be fixed for the first two years. The floating rates will apply after 2 years. These rates will be applicable to loans sanctioned between December 2009 and January 2010. Its ADR rose 0.33% on Tuesday, 8 December 2009.

Kotak Mahindra Bank also announced its new home loan scheme. It has 8.49% fixed rate on home loans for 30 months from the date of the payout of the loan. The stock fell 1.91%.

India's second largest private sector bank by net profit HDFC Bank fell 1.37%. Its ADR fell 0.11% on Tuesday.

India's largest bank by net profit and branch network State Bank of India fell 0.56%. The UPA government last week cleared the introduction of State Bank of India (Amendment) Bill in the current session of Parliament. The Bill seeks to bring the government's holding in the country's largest public sector bank on a par with other public sector banks at 51 %. Currently, the Union government holds 59% stake in SBI. At present, the stake of the promoter, that is Government of India, cannot fall below 55 %.

India's largest mortgage lender by total income Housing Development Finance Corporation (HDFC) fell 2.3%, extending recent losses triggered by investor worry a dual interest rate scheme on home loans introduced by the company would hit margins.

HDFC, last week, announced a dual-rate loan scheme under which a borrower will be charged a fixed rate up to March 2012 and a floating rate thereafter. For a 20-year loan of Rs 30 lakh, a borrower will pay a fixed rate of 8.25% up to March 2012 and then a floating rate that's 500 basis points below the prime lending rate (PLR) - the institution's benchmark rate. Currently, the PLR is 13.75%.

Metal stocks fell after copper fell to its lowest in more than a week on Wednesday, 9 December 2009, as investors trimmed positions in riskier assets following weak economic data and growing sovereign debt troubles. Hindalco Industries fell 3.04%. The company hiked product prices by Rs 3000 a tonnes, with effective from 1 December 2009. Steel Authority of India, National Aluminum Company, Sterlite Industries and Hindustan Zinc fell by between 1.99% to 2.98%.

Tata Steel, the world's eighth-largest steelmaker by sales, fell 4.17%. The company said on Monday its sales rose 34.5% to 498,000 tonnes, in November 2009 over November 2008.

The company on 4 December 2009 announced a partial closure of Corus' Teesside Cast Product (TCP) plant in north England, after four companies stopped buying metal from it. Operations will be suspended at the end of January 2010 forcing the loss of 1,700 jobs around 600 fewer than envisaged earlier, Tata Steel said in a statement.

IT stocks rose on a weaker rupee. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. India's third largest software services exporter Wipro rose 1.19% even as its ADR fell 0.39% On Tuesday. India's largest software services exporter Tata Consultancy Services (TCS) rose 1.2%.

India's second largest software services exporter Infosys Technologies rose 0.66%. Its ADR rose 0.21% on Tuesday. Infosys Technologies is reportedly partnering the Council of Scientific and Industrial Research for its open source drug discovery project that focuses on an efficient way to look for tuberculosis drugs.

The Indian rupee recovered against the dollar after tumbling to its lowest level in almost two weeks. Dollar's slide against the yen and the euro, aided recovery of the Indian unit against the greenback. The partially convertible rupee was at 46.54/55 per dollar, higher than Tuesday close of 46.68/69.

Auto stocks rose on the back of robust sales figures for November 2009. India's second largest bike maker by sales Bajaj Auto rose 1.84%. Bajaj Auto on Wednesday launched a 135 cc Pulsar, pushing the Pulsar brand into the mass segment. Bajaj expects a sell a minimum 30,000 units per month of the new Pulsar model. The automaker had recently refreshed the entire Pulsar lineup and expects total Pulsar sales to cross 80,000 units per month.

The company's total vehicle sales rose 73% to 2.76 lakh units in November 2009 over November 2008. Motorcycles sales jumped 84% to 2.42 lakh units.

India's largest small car maker by sales Maruti Suzuki India rose 2.54% after Japan's Suzuki Motor said on Wednesday it will sell a 19.9% stake to Volkswagen (VW) for $2.5 billion and use half the proceeds to buy shares in the German automaker, as the two firms form a formidable force in the auto industry. Japan's Suzuki has a 54.2% stake in Maruti Suzuki India

Suzuki's chief told the media on Wednesday that the company will cooperate with VW in India by sharing common components. VW's chief Winterkorn said the firm will pursue synergies in India between Suzuki, Volkswagen, Skoda brands.

Maruti's total vehicle sales spurted 66.60% to 87,807 units in November 2009 over November 2008. Domestic sales spurted 60.10% to 76,359 units, while exports surged 128.60% to 11,448 units in November 2009 over November 2008.

India's largest motorcycle maker by sales Hero Honda Motors rose 1.74%. The company's total vehicle sales jumped 32% to 3.81 lakh units in November 2009 over November 2008.

But, India's top tractor marker by sales Mahindra & Mahindra (M&M) fell 0.31%. Mahindra & Mahindra will reportedly launch its first truck under a joint venture (JV) with Navistar, North America's largest commercial truckmaker, next month. The company's domestic auto sales soared 105.1% to 21,387 units in November 2009 over November 2008. M&M sold a total of 22,587 vehicles (domestic plus exports) in November 2009 as against 11,515 vehicles sold in November 2008.

India's top truck maker by sales Tata Motors fell 0.56%. The company's total sales zoomed 65.49% to 54,108 units in November 2009 over November 2008.

Tata Motors' total passenger vehicle sales in the domestic market grew by 44.52% at 20,706 units last month, against 14,327 units in the same month last year. Exports jumped by 86.64% at 3,994 units, compared with 2,140 units in the same month last year, it added.

Car sales in India rose an annual 61% to 1,33,687 in November 2009 over November 2008, boosted by improved consumer sentiment, easier availability of loans and a low sales base a year earlier, an industry body said on Tuesday. Sales of trucks and buses, a gauge of economic activity, doubled to 40,847 units in November from 20,631 a year earlier, data from the Society of Indian Automobile Manufacturers showed.

Auto ancilliary stocks rose on surge in auto sales over the past few months. Banco Products, Gabriel India, Amtek Auto and Exide Industries rose by between 1.18% to 10%.

India's largest engineering and construction firm by sales Larsen & Toubro fell 0.13%. The company said on Tuesday that it got orders worth Rs 844 crore. Among other capital goods stocks, Siemens, ABB, BEML and Punj Lloyd fell by between 0.05% to 1.14%.

Realty shares fell on profit taking. Omaxe, Indiabulls Real Estate, Unitech fell by between 0.45% to 1.65%.

FMCG shares fell on profit taking. ITC, Tata Tea, Marico, United Spirits fell by between 0.43% to 1.91%.

Cement stocks rose on bargain hunting after recent losses. Recent reports suggested a second wave of cement price hike is on the cards. After prices were up by Rs 5-10 for a 50 kg bag in the last week of November in western and southern India, prices rose by Rs 8-11 a bag in the Mumbai region on 2 December 2009. The next set of price rises would happen in the north which is enjoying comparatively stable prices till now vis-a-vis the south and the west, reports suggest.

India's largest cement producer by capacity ACC rose 0.75%. The company's cement shipments fell 4.04% to 1.66 million tonnes in November 2009 from 1.73 tonnes in November 2008.

Aditya Birla Group's cement shipments rose 15.3% to 2.93 million tonnes in November 2009 over November 2008. Aditya Birla Group last month said it was combining its cement operations under group firm UltraTech Cement to make India's largest cement firm. UltraTech Cement rose 0.8%.

But, India's largest dam builder Jaiprakash Associates fell 1.02% The company posted 48.77% jump in its cement sales to 1.03 million tonnes in November 2008 over November 2008.

India's largest thermal power generator by sales NTPC fell 0.95% The government is planning a 5% stake sale in the firm by March 2010. Among other power stocks, CESC, Tata Power Company, Reliance Infrastructure, Torrent Power fell by between 0.53% to 1.34%.

Telecom stocks rose on reports successful bidders of third-generation (3G) spectrum in the upcoming auctions, scheduled to begin on 14 January 2010, may have to pay only 25% of the bid amount initially and can pay the remaining in the next financial year when they receive the airwaves. India's largest mobile services provider by sales Bharti Airtel rose 0.55%, extending recent gains. Bharti Airtel sees revenue pressured in the short term amid an intense price war in the country's wireless sector, director Akhil Gupta said on Monday.

India's second largest mobile services provider by sales Reliance Communications rose 1.08%. Reliance Communications under-reported its revenue to the telecoms regulator during 2006/07 and 2007/08, the communications minister A Raja said on Monday.

Mobile operators including Bharti Airtel, Vodafone Essar and Reliance Communications are locked in a tariff war, raising concerns about telecom firms' profitability. The price war is aimed at grabbing new users as new firms enter the market.

Cals Refineries clocked highest volume of 3.93 crore shares on BSE. Unitech (1.57 crore shares), Suzlon Energy (1.41 crore shares), IFCI (.15 crore shares) and Radhe Developers (0.82 crore shares) were the other volume toppers in that order.

Tata Steel clocked highest turnover of Rs 175.40 crore on BSE. Unitech (Rs 140.84 crore), DLF (Rs 127.55 crore), Suzlon Energy (Rs 119.43 crore) and Bharti Airtel (Rs 118.98 crore) were the other turnover toppers in that order.

Market may edge lower on weak global stocks; ICICI Bank eyed

The market may edge lower tracking weakness in Asian stocks triggered by disappointing economic data in Japan. US stocks declined on Tuesday, 8 December 2009.

The government does not need to borrow more than planned to fund its additional proposed expenditure, Finance Minister Pranab Mukherjee said on Tuesday. The government said on Tuesday it will seek parliamentary approval to spend an extra Rs 25725-crore ($5.5 billion) for the fiscal year to end-March 2010. The gross additional expenditure would be Rs 30943 crore, of which 5217 crore would be met through savings, the government said. The government will spend an extra Rs 3000 crore on fertiliser subsidies and Rs 3460 crore on food subsidies. The government would also spend Rs 800 crore on an equity infusion in state-run carrier Air India.

Capital inflows into India reflect investor confidence in the economy, the Reserve Bank of India (RBI) governor D Subbarao said on Monday 7 December 2009 at a televised panel discussion, although measures to control them could not be ruled out in case there was a surge in foreign funds that needed to be contained. "Going ahead should there be a surge of capital flows, I think we cannot rule out active capital management," Subbarao said. The RBI governor said he is not willing to debate at this time on the instruments or timing, as this will depend on how the situation evolves.

"In the medium term, task is to improve absorptive capacity of the economy. But going forward calibrating reserves roughly corresponding to current account deficit is the task," Subbarao said. C. Rangarajan, chairman of the Prime Minister's Economic Advisory Council, said in the discussion that inflows in the current year would be manageable. Rangarajan had said late last month that India could absorb as much as $100 billion of capital flows in 2009/10, well above a projected $57-$60 billion.

The Reserve Bank of India (RBI) may reportedly ask banks to impose a ceiling on their investments in mutual funds and also prescribe norms for such investments, as it attempts to tighten rising exposure and rein in deployment of banking funds indirectly in sectors or companies to which banks could not lend directly due to exposure limits.

Meanwhile, Mumbai based realty firm Godrej Properties' initial public offering (IPO) of 9,429,750 equity shares of Rs 10 each opens for bidding today. The price band is at Rs 490-530 per share. The issue will close on 11 December 2009.

The initial public offer (IPO) of JSW Energy, a part of Sajjan Jindal-led JSW Group, was subscribed 1.48 times on the second day of issue on Tuesday. The price band for the IPO is Rs 100 to Rs 115. The issue closes today, 9 December 2009.

Shares of ICICI Bank and Kotak Mahindra Bank will be in action on reports the two banks have entered the interest rate war in the home-loan market with their fixed-cum-floating rate schemes. ICICI Bank has launched a home-loan scheme under which 8.25% interest rate will be fixed for the first two years. The floating rates will apply after 2 years. These rates will be applicable to loans sanctioned between December 2009 and January 2010. Kotak Mahindra Bank also announced its new home loan scheme. It has 8.49% fixed rate on home loans for 30 months from the date of the payout of the loan.

Asian stocks fell on Wednesday, led by finance and mining companies, after Japan's economy grew more slowly than estimated, denting confidence in the global economic recovery.The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Indonesia fell by between 0.02% to 1.37%. But Taiwan's Taiwan Weighted rose 0.89%.

Japan's Gross domestic product rose at an annual 1.3% pace in September quarter, slower than the 4.8% reported in preliminary figures last month, the Cabinet Office said today in Tokyo.

China is experiencing a clear V-shaped economic recovery, Zhu Min, vice-governor of the People's Bank of China, was cited as saying on Tuesday.

US stocks fell on Tuesday as 3M Co's disappointing outlook and a weak sales report from McDonald's Corp compounded investors' concerns about the outlook for a global recovery. The Dow Jones industrial average was down 104.14 points, or 1%, at 10,285.97. The Standard & Poor's 500 Index was down 11.31 points, or 1.03 % at 1,091.94. The Nasdaq Composite Index was down 16.62 points, or 0.76% at 2,172.99.

Back home, the key benchmark indices surged on Tuesday after the government on Tuesday, 8 December 2009, said it will seek parliamentary approval to spend an extra Rs 25725 crore for the fiscal year to end-March 2010. The Sensex attained its highest closing level in 1-1/2 month. The 50-unit S&P CNX Nifty attained its highest closing level in more than 18 months. The BSE Sensex rose 244.54 points or 1.44% to 17,227.68 on that day.

As per provisional figures on NSE, foreign funds bought shares worth Rs 843.18 crore and domestic funds sold shares worth Rs 503.98 crore on Tuesday.

Sensex to open lower

Headlines for the day

Mahindra Satyam to induct 200 every month from virtual pool - DNA Money

Mahindra & Mahindra to consolidate auto components business - DNA Money

L&T bags Rs844 crore Nuclear Power Corporation order - Business Line

Alok to wind up realty foray - Business Standard

RIL may buy part of LB group's debt - Business Standard

Events for the day

Major corporate action:

Sun-division of equity shares of Munoth Capital Market Ltd from Rs10/- per share to Rs5/- per share.

Godrej Property IPO that opens today and will close on December 11, 2009 comes with a price band of Rs490 to Rs530 per share.

Pre-market report

Global signals

The European stocks opened lower on Tuesday and remain lower side through out the day. At the end, FTSE 100 closed 1.65% lower at 5223.

The US markets closes in red after disappointing corporate news from 3M Co and McDonalds. Nasdaq 100 up 17 points to closed at 2173.

In today's trade, all the Asian indices opened lower and strengthen the losses in the early trading hours. At the time of writing this report, SGX Nifty that opened lower by 86 points, recovered some losses and trading lower by 49 points.

Indian markets

The domestic indices are expected to open lower and may remain lower owing to the weak global cues.

Among the local indices, the Nifty could test the 5150-5182 range on the up side, while on the down side it could find support at 5050 and 5100. While the Sensex is likely to get support at 17100 and may face resistance at 17300.

Indian ADR's

Among the Indian ADRs trading on the US bourses, all the ADR closed in red except Infosys, ICICI Bank & Rediff.

Commodity cues

In the commodity space, wherein the Crude oil prices reported marginal decline, with the Nymex light crude oil for January series decline by $0.93 to settle at $72.62 a barrel.

In the metals space, Comex Gold for February series sheds $20.60 to settle at $1169.50 to a troy ounce.

Daily trend of FII/MF investment in equities

On December 08, 2009, FIIs were the net buyers of the Indian Stocks in the tune of Rs17.90 crore (with the gross purchase of Rs1936.90 crore and gross sales of Rs1919.00 crore).

While the Domestic mutual funds, on December 07, 2009, were the net seller of the stocks in the tune of Rs258.00 crore (with gross purchase of Rs545.70 crore and gross sales of Rs903.70 crore.

SGX Nifty Live Update - Dec 9 2009

5,105.00 -54.50

Daily News Roundup - Dec 9 2009

Reliance Industries is expected to buy out a fifth of LyondellBasell’s US$27bn gross debt and seek a rollover of the balance after acquisition, as a step towards gaining confidence of creditors in its plans to acquire the world’s third largest petrochemical company. (BS)

ONGC Videsh has pulled out from the exploration block 5B in Sudan and has written off its investment of US$90mn made in the block. (ET)

L&T secured a contract valued at Rs8.4bn from NPCIL for construction of the main plant civil works of reactor 3 and 4 at Kakrapar Atomic Power Project near Surat. (BS)

L&T has accepted all demands in its implementation agreement with the Uttarakhand government on the 99MW Singoli-Bhatwari hydel project in the hilly Rudraprayag district. (BS)

GSM operators such as Bharti Airtel, Vodafone Essar, Idea Cellular among others are set to be charged a one-time fee for all 2G radio frequencies they hold over the 6.2 MHz mark. (ET)

Symantec Corporation and Wipro inked a new partnership under which Wipro Infotech will offer data loss prevention & back-up and recovery infrastructure consultancy services based on Symantech Technology. (FE)

JSW Group is planning to set up minor ports in states where it has a major presence through its steel and power plants. (FE)

ICICI bank and Kotak Mahindra Bank have launched home loan schemes which combine fixed and floating interest rates. (FE)

Comviva (formerly Bharti Telesoft) is in talks with several telecom service providers, including group company Bharti Airtel, to launch a SIM card that allows up to 10 users to share the same mobile phone with their own specific numbers. (BS)

Tata Tea, which acquired several global beverage brands in the last three years, will focus on bringing them together and making it a seamless international brand. (BL)

Mahindra Aerospace, the aerospace arm of Mahindra & Mahindra, is readying the prototype of a small private aircraft built in collaboration with state-owned National Aerospace Laboratories. (BS)

RBI has found and taken action against 17 cases of irregularities by companies that raised FCCBs since April 2005 – including US$25mn raised by Country Club, US$100mn by Hotel Leela Venture, US$105mn by Educomp Solutions, US$180mn by 3i Infotech and Rs51.4bn by Reliance Communications. (BS)

Ranbaxy said it will sell its 50% stake in its Japanese joint venture Nihon Pharmaceutical Industry (NPI) to partner Nippon Chemiphar. (ET)

Nestle India announced that its board has approved the proposal to acquire Speciality Foods' healthcare nutrition business. (BL)

HCL Technologies bagged a multi-million pound, five-year infrastructure management and transformation order from News International - a UK subsidiary of News Corporation. (BL)

Videocon Group promoted Next Retail is open to offloading a minority stake ranging from 15-20% to private equity players to garner funds for expansion. (BL)

Essar Group has entered into the Rs800bn consumer durables and IT products business through the acquisition of X-Cite. (ET)

Standard Chartered Bank has extended a US$1bn line of credit to Essar Oil to part finance its acquisitions of Royal Dutch Shell’s refinery assets in Europe. (ET)

Textile major Alok Industries has decided to withdraw from the realty segment by 2012. (BS)

Autoline Industries has drawn up Rs2.5bn brownfield expansion plan which will be funded through internal accruals and term loans. (BL)

Mahindra Systech, the auto components arm of the Mahindra group, plans to consolidate its business by merging Mahindra Ugine Steel, Mahindra Composites, Mahindra Forgings as well as unlisted entities such as Mahindra Gears, Mahindra Castings and Engines Engineering. (BL)

Gujarat NRE Minerals Ltd, the Australian subsidiary of Gujarat NRE Coke, is raising AUS$50mn through placement of shares to several unidentified international institutional investors. (BL)

Godrej Properties' IPO was subscribed by anchor investors JF India Fund, JF Eastern Smaller Companies Fund, Ward Ferry Management Ltd and The Royal Bank of Scotland for Rs 899mn at Rs530/share. (BL)

NDTV sold most of its indirect stake in NDTV imagine to Time Warner in a deal worth US$117mn .(ET)

Sakthi Sugars has allotted 1.8mn equity shares to three institutional investors by conversion of FCCBs worth US$8.1mn held by them. (ET)

DB Corp will launch its initial public offering to raise about US$83mn on Friday. (ET)

JSW Energy's Rs27bn public offer got over-subscribed 1.48 times on Tuesday. (FE)


Ministry of New and Renewable Energy minister said that about 1,300MW of solar power would be added over the next three years. (BS)

West Bengal became the forerunner in mega-watt level solar power generation with the commissioning a 2MW grid-connected solar photovoltaic plant at Jamuria, near Asansol. (BS)

The Department of Telecommunications says it is being forced to curtail its 3G auction plans from four slots to three. (BS)

The government sought Parliament’s approval for additional spending of Rs257bn on fertiliser subsidies, food and for equity infusion in Air India, among other heads in the current financial year. (BS)

The EGoM on the Dhabol power project reviewed the non-payment of Rs4.7bn by state insurance companies to Ratnagiri Gas and Power Pvt Ltd, increasing gas supply and timely commissioning of Phase III. (BS)

The Ministry of Finance is in favour of scrapping the practice of issuing oil bonds to government-owned oil marketing companies and not only wants the Ministry of Petroleum and Natural Gas to rework the underrecovery figure for the current year but has also decided to look at the issue of oil subsidies only in February 2010. (BS)

The Department of Telecommunications (DoT) has told Bharti Airtel to provide all required information to the auditor by December 14 who had sought information through two questionnaires on August 12 and September 12. (BS)

The Tamil Nadu government on Tuesday said it was expecting five merchant power plants to come up in the state with a total installed capacity of 10,000 Mw by 2012. (BS)

The government expects credit offtake to pick up in the coming months on the back of policy steps taken by the RBI to boost credit growth. (BS)

The Andhra Pradesh government has drawn up an ambitious plan to develop 13 minor ports over the next decade and targets 200mn tons by 2019-20. (BL)

The Market Stabilisation Scheme is likely to comeback as the RBI moves to remove excess liquidity from the banking system. (BL)

Successful bidders of 3G spectrum in the upcoming auctions may have to pay only 25% of the bid amount initially and can pay the remaining in the next financial year when they receive airwaves. (ET)

RBI is likely to ask banks to impose a ceiling on their investments in mutual funds and also prescribe norms for such investments. (ET)

States are expected to raise a record Rs700bn leading up to the end of the fiscal. (ET)

The Centre refuted reports that there is 30-40% siphoning off of allotted funds under the NREGS. (ET)

India faces a shortage of 70MT of coal this fiscal and the demand supply gap in 2011-12 may reach about 51MT. (ET)

The government targets to allot 17 port development projects to private players under its ambitious National Maritime Development Programme. (FE)

Pressure around the world!

Act quickly, think slowly.

When the world was down, India was shining, especially late in the afternoon. The rise coincided with the Finance Minister’s announcement that the government plans an additional Rs257bn in public expenditure during the current fiscal year.

The gains are less likely to be maintained given the weakness all around the world. However, bulls will strive for a recovery later in the day. In the US, the Dow shed over 100 points following a strengthening dollar, weakening oil and gold prices and some below expectation corporate numbers. Asian markets are weak after Japan’s economy expanded less than expected. Japan has also cleared an additional US$81bn stimulus.

UK and Germany manufacturing is still weak. Ratings agencies have warned about debt problems. First it was Dubai and now Fitch has lowered Greece's credit rating. People may not know where to find Greece on the map but some impact will be felt in markets.

Flows into emerging markets equity and the riskier bond fund groups lost momentum in early December, as investors digested the implications of the moratorium being sought by Dubai World on its US$60bn debt pile. The uncertainty - and the accompanying market volatility - heightened the already keen investor appetite for exposure to commodities and to the more conservative bond fund groups.

Risk appetite weakened amid ongoing concerns about the US economy's recovery prospects. A toxic cocktail of negative economic and debt news caused a slump in US and European stocks. Sales declines at McDonald's added to investor jitters about the pace of economic recovery, sending US stocks down sharply in early trading.

European equities fell after Fitch slashed Greece's A-grade credit rating, the first time in 10 years that one of the leading agencies has lowered the country below the A category. Fitch cut Greece to BBB-plus with a negative outlook, because of the poor state of the country's public finances, after rival S&P threatened Athens with a downgrade.

The US dollar gained against major currencies, as worries about high levels of debt in Greece and Dubai lead investors to buy assets that would offer protection in a crisis. Oil futures fall for a fifth straight session, extending their losing streak to the longest in five months.

On Wall Street, the Dow Jones Industrial Average tumbled 104 points, or 1%. The S&P 500 index lost 11 points, or 1%. The Nasdaq Composite shed 17 points, or 0.8%.

Stocks slipped at the open as investors took a cue from falling global markets and a rising dollar. Reports in the UK and Germany showed manufacturing is still weak, Japan approved $81bn in fresh stimulus money, and ratings agencies warned about debt problems in Dubai and Greece.

The rising dollar also played a role in the stock weakness. The weak dollar has added to stock gains over the last nine months, but for the last two weeks, the greenback has started to make a comeback versus the euro. The dollar has remained weak against the yen.

Since hitting a more than 12-year low on March 9 at the height of the financial market panic, US stocks have been on the rise, gaining 60% through Monday's close.

US stocks had ended mixed on Monday as comments from Federal Reserve Chairman Ben S. Bernanke cooled worries about higher interest rates but failed to overshadow the stronger dollar and weaker commodities.

Dow component 3M issued a 2010 profit forecast in a range that meets or beats analysts' expectations. The diversified conglomerate also reiterated that 2009 earnings would fall in a range of $4.50 to $4.55 per share versus analysts' forecasts of $4.57. Shares fell 1%.

Fellow Dow component McDonald's said sales at U.S. stores open a year or more, a retail metric known as same-store sales, fell 0.6% in November, the second monthly decline in a row. Shares fell 2.1%.

Kroger said it swung to a fiscal third-quarter loss from a profit a year ago. The grocery store chain also cut its full-year forecast and cut its target for same-store sales growth. Shares fell 12%.

Procter & Gamble Chairman A.G. Lafley is retiring in January, the company said Tuesday. His position will be filled by Bob McDonald, the company's CEO. McDonald replaced Lafley as CEO in July.

General Motors may pay back all $6.7 billion in loans it owes the government in one lump sum, rather than on a quarterly basis as is currently expected, new chief executive Ed Whitacre said.

FedEx shares rallied after it said fiscal second-quarter earnings will top forecasts, thanks to strength in international demand.

President Obama outlined a new multi-billion dollar jobs plan and stimulus proposal, in a speech at the Brookings Institution in Washington. He said he wants to expand tax breaks for small businesses, invest in infrastructure profits and give consumers rebates for making their homes more energy efficient. Funds would come from the $200 billion in unallocated bailout money - some of which would also be used to pay down the deficit.

The dollar fell versus the euro late in the day, erasing gains. The dollar gained against the yen.

COMEX gold for February delivery fell $20.60 to settle at $1,143.40 an ounce. Gold closed at an all-time high of $1,218.30 an ounce last week.

US light crude oil for January delivery fell $1.31 to settle at $72.62 a barrel on the New York Mercantile Exchange.

Treasury prices rose, lowering the yield on the 10-year note to 3.38% from 3.43% late on Monday.

In European trading overnight, banks dropped following credit-rating downgrades for Dubai and Greece. Manufacturing data from Germany and the UK painted a grim picture. The pan-European Dow Jones Stoxx 600 Index ended the day down 1.6% at 244.01. Banks ended sharply lower following reports that Dubai World-owned property developer Nakheel posted a $3.65 billion first-half loss.

British banks, which are thought to be some of the most exposed to Dubai debt woes, fell. The state of Dubai owns Dubai World and on Tuesday Moody's Investors Service downgraded all six Dubai government-related issuers.

Greek banks were slammed following the ratings downgrade by Fitch.

The UK's FTSE 100 Index fell 1.7% to 5,223.13, while Germany's DAX Index lost 1.7% to 5,688.58 and the French CAC-40 Index shed 1.4% to 3,785.30.

What a turnaround! An absolute twisting trading session ended with smart gains defying weak global cues. After staying in a narrow range for most part of the first half, markets gained momentum led by a sudden bout of buying and some short squeezing.

The Real estate, Consumer Durables, Metals and the telecom stocks were among the major gainers. Even the Mid-Cap and the Small-Cap stocks participated in the rally.

The BSE Sensex advanced 244 points to end at 17,227 after touching a high of 17,238 and a low of 16,964. The index opened at 17,984 against the previous close of 17,983. The NSE Nifty was up 81 points to shut shop at 5,148.

In Asia, the Nikkei in Japan was marginally down 0.3%, while Australia's S&P/ASX ended lower by 0.2%. Shanghai SE Composite in China slipped 1% and Hang Seng index in Hong Kong was down 1.2%.

In Europe, stocks were flat with positive bias. The FTSE in the UK was up 0.2%, The DAX in Germany was up 0.3% and the CAC 40 index in France was flat.

Coming back to India, all the BSE sectoral indices ended in the positive terrain, the Realty index was the top gainer, surging 3.5%, followed by the Metals index that was up 2.3% and the BSE Consumer Durables index was up 2.1%. The BSE Mid-Cap index gained 1.2% and the BSE Small-Cap index was up 1.3%.

Among the 30-components of Sensex, 27 stocks ended in the positive and only SBI, Maruti and Hero Honda ended in the negative terrain. Among the major gainers were Bharti, DLF, Tata Motors, Hindaclo and Reliance Industries.

Outside the frontline indices, the big gainers in the broader market were Jai Corp, IFCI, Indian Hotels, IDBI Bank and Balrampur Chini. On the other hand, losers included PFC, Cadila, Godrej Industries, GSPL and Piramal Health.

Shares of Reliance Industries gained by 2.3% to end at Rs1080 after reports stated that the company is holding discussions with several banks in a bid to establish US$8-US$10bn in financing to acquire LyondellBasell Industries AF, which has filed for bankruptcy.

Technically, the stock yet again bounced back from its 50 Day moving average for the second straight trading session. The scrip opened at Rs1054 it touched an intra-day high of Rs1084 and a low of Rs1050 and recorded volumes of over 0.92mn shares on BSE.

Shares of 3i Infotech gained by 4.5% to Rs88.9 after reports stated that ICICI Bank is in discussions to sell its entire 27% holding in the company. ICICI Bank has already appointed PricewaterhouseCoopers to advise on the sale, added reports.

However, the company clarified post market hours stating that it is not aware of any move by ICICI Group to sell their stake in the company and 3i Infotech would not like to comment on the News Reports or market rumors.

NDTV announced that it entered into a conditional agreement with Turner Asia Pacific Ventures, Inc. for the sale of most of its indirect stake in NDTV Imagine Ltd, which is held through its subsidiary NDTV Networks plc.

The total transaction size is US$117mn and involves a sale of 76% of NDTV Imagine for a consideration of US$67mn together with the subscription to fresh shares in Imagine by TAPV for US$50mn.

Prior to the issuance of primary shares to TAPV, NDTV Networks plc will retain a stake of 5% in Imagine. The transaction is subject to receipt of an approval from the board of Time Warner Inc (the parent of TAPV), and from regulatory authorities.

Shares of NDTV gained 3.5% to Rs165. The scrip opened at Rs160 it touched an intra-day high of Rs172 and a low of Rs159 and recorded volumes of 1mn over shares on BSE.

Shares of M&M edged higher by 0.7% to end at Rs1034 after the company announced that it plans to consolidate its auto parts businesses into a single company over the next two years to cut costs, Hemant Luthra, head of the division, said. Mahindra may own as much as 60% of the consolidated unit, he said.

The company also plans to enter aviation component business as well and is already in talks with Airbus, Boeing to supply parts. The company further plans to spend US$10mn to produce Aircraft parts.

Shares of Gammon India surged over 3.5% top end at Rs245 after the company announced that it’s subsidiary, Franco Tosi Meccanica S.P.A. Italy, procured an order from an IPP for supply of Hydro Turbines, aggregating to Rs5.1bn.

Gammon Infrastructure advanced by 6.5% to Rs20.30 after the Company signed an agreement with Dragados Servicios Portuarios y Logisticos S.L. (Dragados) of Spain to purchase its equity shares in Indira Container Terminal Pvt. Ltd. (ICTPL).

The agreement envisages buying of 24% equity stake in ICTPL now and a further 26% equity stake after three years post the commencement of commercial operations of the Offshore Container Terminal Project being implemented by ICTPL.

Turnover surges

Jindal Saw, SBI December 2009 futures at premium

Nifty December 2009 futures were at 5,159.30, at a premium of 11.35 points as compared to the spot closing of 5,147.95. Turnover in NSE's futures & options (F&O) surged to Rs 69428.98 crore from Rs 58040.99 crore on Monday, 7 December 2009.

Jindal Saw December 2009 futures were at premium at 991.80 compared to the spot closing of 987.10.

State Bank of India (SBI) December 2009 futures at premium at 2,313.10 compared to the spot closing of 2,307.

IFCI December 2009 futures were near spot price at 57.30 compared to the spot closing of 57.15.

In the cash market, the S&P CNX Nifty rose 81.25 points or 1.60% at 5,147.95.

Asian markets witness Tuesday twilight

Sydney, Seoul, Shanghai, Hang Seng finish lower while Sensex, Strait Times edge higher

Stock markets in Asian region tanked on Tuesday, 8 December 2009, as investors were both relieved that the United States was not about to accelerate an upturn in the global interest rate cycle, but concerned about the outlook for the world’s biggest economy and Asia's leading export market.

On Wall Street, stocks closed mixed but largely flat, after Federal Reserve Chairman Ben Bernanke indicated that the central bank expected a slow pace of economic recovery and plans to maintain low rates for an extended period. The Dow Jones Industrial Average added 1 point to close at 10,390. The S&P 500 lost 3 points, or 0.3%, at 1103, while the NASDAQ declined 5 points, or 0.2%, at 2190.

In the commodity market, crude oil fell for a fifth day as the dollar clawed higher against the euro, damping demand for commodities as an alternative investment.

Crude oil for January delivery fell as much as 40 cents, or 0.5%, to $73.53 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $73.68 a barrel at 4:13 p.m. Singapore time.

Brent crude oil for January settlement on the London-based ICE Futures Europe exchange was at $76.47 a barrel, up 4 cents, at 4:13 p.m. Singapore time. Yesterday, the contract dropped $1.09, or 1.4%, to $76.43 a barrel, the lowest settlement since 13 November 2009.

Gold rose for the first time in four days as a 5.6% decline from last week’s record price renewed buying interest in the metal. Gold for immediate delivery strengthened as much as 0.9% to $1,169.03 an ounce and traded at $1,160.89 at 1:32 p.m. in Singapore. February-delivery gold on the New York Mercantile Exchange’s Comex unit fell 0.2% to $1,161.40 an ounce.

In the currency market, the U.S. dollar traded modestly weaker against most major currency rivals in Asian trading as investors continued to mull the likelihood of a rate hike by the U.S. Federal Reserve.

The Japanese currency strengthened for second day after Bernanke’s remarks tore speculation for an early US rate increase. The yen was quoted at 88.85 against greenback from 89.51 on 7 December.

The Hong Kong dollar was trading at HK$ 7.7504 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 edged off lows on Tuesday, aided by a softer US dollar, as investors revived bets of US interest rates staying at zero for some time. At the local close, the dollar was trading at $US0.9127, from a low of $US0.9054 struck offshore, to be marginally down from $US0.9155 seen here at yesterday’s close.

In Wellington trade, the New Zealand dollar consolidated in its domestic session today after rising off lows on Monday night. The NZ dollar was US71.47c at 5pm from US71.71c at the same time yesterday. It fell as far as US70.80c on Thursday night but its recovery was helped by the Bernanke remarks.

The South Korean won closed at 1,155.10 won to the U.S dollar, down 1.8 won from Monday's close of 1,153.30.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar was trading higher against the US dollar at NT$ 32.2330, 0.0470 up from Monday’s close of NT$32.2800.

In equities, Asian markets ended mostly lower, with Japanese stocks snapping a six-session winning streak as exporters dropped on the yen's renewed strength.

In Japan, shares market finished the session lower snapping six days of long winning streak as investors took a breather following weak cues from Wall Street after US Federal Reserve Chairman Ben Bernanke indicated that the central bank expected a slow pace of economic recovery and plans to maintain low rates for an extended period. At the closing bell, the Nikkei 225 Stock Average index was at 10,140.47, eased 27.13 points or 0.27% from its previous close, while the broader Topix of all First Section issues on the Tokyo Stock Exchange lost 2.23 points, or 0.25%, to 896.70.

On the economic front, Japan's government unveiled 7.2 trillion yen ($80.59 billion) on economic stimulus measures, as it looks to avoid a return to recession ahead of upper house elections in mid-2010. Hatoyama’s first stimulus plan includes 3.5 trillion yen to help regions, 600 billion yen for employment and 800 billion yen on environmental initiatives, the Cabinet said today in a statement in Tokyo.

Ministry of finance said Japan Current account surplus rose 42.7% year on year to 1.39 trillion yen in October 2009 as worldwide government stimulus spending spur demand for exports.

The data from cabinet office showed that leading index rose by eighth consecutive moth to a score of 89.7 in October. At the same time, the coincident index stood at 94.3, up from 93.2 in the preceding month. Lagging index stood at 84.8, up from 83.1 in the previous month.

Japan’s M2 money stock was up 3.3% on year in November, the Bank of Japan said on Tuesday, standing at 759.3 trillion yen. That followed the revised 3.4% gain on year in October to 757.4 trillion yen.

M3 money stock was up 2.4% on year to 1,057.7 trillion yen, matching the previous month's gain. M1 money stock was up an annual 1.1% to 479.9 trillion yen after adding 1.2% on October.

In Mainland China, share market tumbled with broad based sell off across the sector, as investors were cautious about US economic prospects in 2010 after the Federal Reserve's chief warned the US economy would continue to struggle. The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, dropped 35.23 points, or 1.06%, to 3,296.66, while the Shenzhen Component Index on the smaller Shenzhen Stock Exchange decreased 0.86% or 121.23 points, to 13,930.28. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, dropped 1.22%, to 3,624.02.

On the economic front, the Chinese government announced Monday at the three-day annual Central Economic Work Conference that next year the country should coordinate efforts to maintain stable and comparatively fast economic growth and speed up the transformation of the economic development mode.

In Hong Kong, the stock market widened losses throughout the session to closed lower enduring losses for third day in row amid comments from Fed Chairman Bernanke, with financials and properties shares witnessed steep sell off on news that Dubai World is struggling to restructure debt and on persistent worries about the possible bubble in the Hong Kong property market. HSBC holding plummeted the most in Hong Kong on news debt restructuring by Dubai state-run companies may almost double to $46.7 billion, as more of the emirate’s businesses can need help making payments.

At the closing bell, the Hang Seng Index stumbled 264.44 points, or 1.18%, to 22,060.52, meanwhile the Hang Seng China Enterprise, which tracks the overall performance of 43 mainland Chinese state-owned enterprises on the Hong Kong Stock Exchange, fell 206.20 points, or 1.54%, to 13,152.10.

In Australia, the stock market gave up morning gains to finish the session edged lower amid relatively quiet trading with benchmark All Ordinaries extended losses for third consecutive day. Financials, retailers, and healthcares stocks led the declines. Shares of banks and financials tumbled on worries higher interest rate may increase bad debts. 2.2% pullback in crude oil prices overnight triggered selling in energy stocks. At the closing bell, the benchmark S&P/ASX200 index stumbled 5.9 points, or 0.13%, to 4,670.6, meanwhile the broader All Ordinaries retracted 8.70 points, or 0.19%, to 4,686.4.

On the economic front, the statistics bureau of Australia reported today a seasonally adjusted current account deficit of A$16.183 billion in the third quarter ended September, following a revised deficit of A$13.133 billion in the June quarter.

Meanwhile, the National Australia Bank's latest monthly business survey showed business confidence rose three index points to a reading of plus 19.2 in November. Business conditions eased by 1.5 points to a reading of plus 10.3 points in November.

In New Zealand, benchmark index ended flat, however in the negative region, registering the third consecutive session in the red region. The NZX50 ended almost flat in the negative region, down 0.04% or 1.27 points to 3137.31. The NZX 15 inched up 0.11% or 6.05 points to close at 5686.41.

On the economic front, New Zealand’s total manufacturing activity, measured by seasonally adjusted sales volumes fell 1.4% in the September 2009 quarter. However, excluding meat and dairy product manufacturing, volumes rose 1.0%. At the total sales level, meat and dairy product manufacturing was the dominant industry, with a 7.1% drop in volumes in the September 2009 quarter driving the overall decline. Manufacturers of wood products and basic metals are showing signs of recovery from a slump to 15 year lows in total manufacturing activity, but it is still a mixed bag.

Also, New Zealand’s total building work fell 6% in the three months through September, extending its decline for a seventh quarter amid a slump in new construction permits. The total value of building work put in place fell to a seasonally adjusted $2.57 billion in the third quarter.

In South Korea, stocks closed lower as investors took profits following the sixth straight session of gains. The benchmark Korea Composite Stock Price Index (KOSPI) shed 4.87 points 0.3% to 1,627.78.

In Singapore, stocks market finished the session higher after trading in narrow range throughout the day, amid mixed lead from Wall Street overnight, with City Development led the rally following rating upgrade from brokerage firm. Rise in commodities metals and crude oil prices in Asian trade supported the shares of commodity related companies. Banks shares end in green as short covering emerged in late hour. At the closing bell, the blue chip Straits Times Index was at 2,805.50, rose 8.52 points or 0.3%.

In Taiwan, stock market in Taiwan finished flat as gains in tourism sector was followed by losses in the financial sector. Taiwan’s exports that touched a 13-month high represented the first positive export growth in 14 months limiting the losses of the session. The benchmark Taiex share index parted from the one month high status, by finishing the day lower by 6.93 points or 0.09% at 7768.71.

On economic front, Taiwan’s consumer price index or CPI fell 1.59% year-on-year in November after a revised fall of 1.87% in October, the tenth straight fall in the CPI. According to the Directorate General of Budget, Accounting and Statistics, on a monthly basis, the CPI fell 0.75% in November. For the first eleven months of 2009, the CPI declined by 0.92% year-on-year.

The wholesale price index or WPI increased 1.01% month-on-month, taking the annual rise to 0.84%. In October, the WPI fell a revised 6.21% annually. During the first eleven months of the year, the WPI decreased 9.92% over the same period of the previous year.

On the other hand, Taiwan’s exports jumped 19.4% year-on-year to US$20.02 billion in November, a 13-month high, also representing the first positive export growth in 14 months.

In Philippines, the disquiet created by President Gloria Macapagal-Arroyo’s declaration of martial law in Maguindanao continued to turn investors down away from the Philippines stock market. Worries over asset price inflation due to the record low interest rate also weighed down investors sentiment. At the concluding bell, the benchmark index PSEi tumbled 1.13% or 34.56 points to 3,012.07, while the All Shares index declined 1.05% or 20.08 points to 1,876.00.

In India, the key benchmark indices extended gains in late trade on rebound in European markets and higher US index futures. The BSE Sensex closed up 244.54 points or 1.44% to 17,227.68. The S&P CNX Nifty closed higher 81.25 points or 1.60% to 5147.95.

Elsewhere, Malaysia’s Kula Lumpur Composite index finished lower at 1261.46 while stock markets in Indonesia’s Jakarta Composite index inched up 0.13 points ending the day higher at 2483.89.

In other regional market, European shares edged lower, with miners and telecoms adding pressure, as comments from the Federal Reserve's chairman raised uncertainty over the prospects for the U.S. economy. Amid these mixed messages, regional European equity markets were also showing small moves. The U.K. FTSE 100 index declined 0.1% to 5,304.17, the German DAX index gained 0.2% to 5,797 and the French CAC-40 index traded 0.1% higher at 3,845.

Godrej Properties IPO Review

Capitalizing on the brand

The company is a relatively a small player compared with most listed players and is unlikely to be able to perform against the broad industry trend

Godrej Properties (GPL), part of Godrej group and a subsidiary of Godrej Industries, is one of the leading real estate development companies in India with focus on development of residential, commercial and township projects.

GPL initially concentrated its operations in the Mumbai metropolitan region and later expanded to include nine other cities such as Pune, Bengaluru, Kolkata, Hyderabad, Ahmedabad, Mangalore, Chandigarh, Chennai and Kochi. As of October 31, 2009, GPL had completed a total of 23 projects comprising 16 residential and 7 commercial projects, aggregating approximately 5.13 million square feet (sq ft) of developable area.

Origianlly incorporated as Sea Breeze Construction and Investments on February 8, 1985 by Mohan Khubchand Thakur and Desiree Mohan Thakur, the company came into the fold of Godrej Group in 1987 and subsequently in 1989 it became a subsidiary of Godrej Industries (formerly Godrej Soaps). Godrej Industries will hold about 69.43% of the post-issue share capital of GPL.

GPL's total land reserves stand at 391.04 acres, aggregating to approximately 82.74 million sq ft of developable area and 50.21 million sq ft of saleable area, which includes ongoing projects and forthcoming projects. The aforesaid land reserves include 64.23 acres, which are in the process of being aggregated but do not include the land ( of about 185 acres in Mohali, Bengalore and Hyderabad) from Godrej Group for which is has signed MoU for developing the owned land in various regions of the country.

The company completely out-sources construction work and has an agreement with Larsen & Toubro for all its project across the country.

The company plans to raise Rs 462.06 crore to Rs 499.78 crore (at the lower and upper price band). The object of the issue is to part finance acquisition of development rights, to meet construction costs, repayment of loans and general corporate purposes. Of the total issue proceeds, the company proposes to utilize about Rs 203 crore towards part funding acquisition of land development rights for its forthcoming projects at Ahmedabad (Godrej Garden City), Kalyan Township, Pune Township of Rs 132 crore, Rs 20 crore and Rs 51 crore, respectively. Similarly, about Rs 75 crore will be utilized to meet construction cost of its forthcoming project at Chandigarh (Godrej Eternia) and about Rs 172 crore for repayment of loans.

Strengths

The company has good track record in project execution and delivery. The good market response for the company's ongoing residential projects reflected by a high level of bookings and customer advances ensures sustained cash flow, paving the way for smooth completion of the on going projects. The company has sold about 1.02 million sq ft out of 1.26 million sq ft of saleable area of its ongoing projects, which have been launched. This excludes the Godrej Prakriti project at Kolkata, which was launched October 2009 end.

The business model of the company is joint development with landowners rather than outright purchase of land parcels. Of the total land bank (saleable area of 50.21 million sq ft), the share of joint development is about 76.77%, with tracts of land owned either in its own name or its subsidiaries is just 3.91%. Of the balance, land for which it has sole development rights is 19.12%, and land subject to private acquisition being 0.2%. The joint development model involves less upfront cash outflow and avoids investment getting stuck in land in case of downturn. This will also help the company to ramp up fast its portfolio with a lower strain on resources. This will also help the company to roll out projects with in prime locations at marketable places.

Has a strong parentage of the Godrej group, which is one of the oldest and reputed corporate houses of the country. As part of the Godrej group, the company naturally gets joint development rights for sizeable land parcels owned by various group companies as well better leverage of its brand name with others. As per company sources, Godrej & Boyce owns about around 3,500 acres of land in Vikrohli, a suburb of Mumbai. Of this about 1,000 acres is suitable to development. Moreover, being part of the group, the company could leverage on the strong and trusted brand of Godrej. This will facilitate its entry into new markets relatively easier. Further the association with the Godrej group will also facilitate attracting financial and intellectual resources on reasonable terms.

Weaknesses

After being hit by a downturn on falling demand in the latter half of FY 2009, the realty market is gradually seeing demand for the residential segment. But the commercial segment is yet to fully come out of woods. Also, the residential realty market is still driven by customers with pricing and location playing crucial roles in buying decisions, given the increased supply in most micro markets of the country.

In realty projects undertaken through joint development , the company's economic interest ranges from 10% to 79%, varying from project to project as it has to bear the entire cost of construction and give part of the constructed space to the land partner or share the profit arising out of gross sales minus cost of construction and other expenses. Given this business model, the company's profitability/ margin largely depends on its ability to contain construction cost and other expenses as well as pricing as against developing realty projects from its owned land, bought outright at relatively lower cost, which will push up margin in the long term/ bullish times.

Commercial realty projects warrant huge cash outflow, unlike residential projects, where the customer will pay at the time of booking as well as after crossing each milestone. Godrej Properties' high exposure to commercial projects will result in high funding requirements. The share of commercial projects in the total saleable area was just 24% in the completed projects, but has zoomed to 36% in ongoing projects, and is set to leap to 63% of the forthcoming projects. This is a cause for concern, considering the sluggishness in the commercial realty sector.

Limited residential projects slotted for completion over the next one-two years. Of the total estimated residential saleable area of 20.71 million sq ft, just 1.41 million sq ft is to be completed by 2011. Of the 11.40 million sq ft of commercial saleable area about 5.01 million sq ft is scheduled to be completed by 2012.

The company is more likely to go for a lease model for commercial projects developed o the land of group companies such as one planned on the land in Vikrohli. This calls for higher capital investment on the part of the company despite providing sustained revenue over a period of time.

Of the total developable area, about 3.05 million sq ft is under litigation. There are about 21 litigations against the company including two criminal proceedings.

Valuation

The company is relatively a small player compared to most of the already listed players and is unlikely to be able to perform against the broad industry trend. Though the sector has witnessed some stability and signs of pickup in certain residential segments, overall it still faces a lot of uncertainties. Moreover, there are many new issues lined up from this sector, which will continue to increase supply even when the sector itself remains out of fancy.

Sales of Godrej Properties were lower by 10% to Rs 205.26 crore in the fiscal ended March 2009. With operating margin shrinking sharply to 34.3% from 52.7% in corresponding previous period, the operating profit fell by sharp 41% to Rs 70.42 crore. But facilitated by higher other income inflated on account of stake sale in selects special purpose vehicles (SPVs), the company has managed to report higher net profit (after minority interest) of Rs 75.63 crore, a rise of 1%. The EPS for the fiscal ended March 2009 was Rs 10.8 and the PE at the lower price band works out to 45.3 times FY 2009 earnings and at the upper price band it works out to 48.9 times its FY 2009 earnings. In comparison, Parsvnath Developers and Puravankara Projects are quoting at a PE of 19.3 and 14 times of their FY 2009 earnings.

On valuation front, the company is priced at an enterprise value per million sq ft of Rs 51 crore at the lower price band and at Rs 54 crore at the upper price band. This is factoring in the total land bank of the respective companies. However, taking into consideration only land under development/ construction, the EV/ millon sq ft of GDL at the lower price band is Rs 132 crore and that at the upper price band is Rs 140 crore. In comparison, Parsvnath Developers quotes