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Tuesday, January 22, 2008

FII sell big


Outflow of Rs 2425.70 crore on 21 January 2008

Foreign institutional investors (FIIs) sold shares worth net Rs 2425.70 crore on Monday, 21 January 2008, compared to their selling of Rs 1356.10 crore on Friday, 18 January 2008.

FII outflow of Rs 2425.70 crore on 21 January 2008 was a result of gross purchases Rs 4896.90 crore and gross sales Rs 7322.50 crore. The 30-share BSE Sensex declined 1408.35 points or 7.41% to 17,605.35 on that day, its biggest single-day point fall on a closing basis.

FII outflow in January 2008 totaled Rs 5187.60 crore (till 21 January 2008).

There are a total of 1,262 FIIs registered with the Securities & Exchange Board of India (Sebi).

ONGC


ONGC

Picture Imperfect


Kotak Mahindra


Kotak Mahindra

Market fall - IPO fun over!


Initial public offerings (IPOs) hitting the market over the next few weeks could face subdued response, analysts said, after the Bombay Stock Exchange’s benchmark index, Sensex, witnessed its biggest intra-day fall in absolute terms.
“Ultimately, IPO pricing depends on market conditions,” said Devesh Kumar, managing director of Mumbai-based boutique financial services firm Centrum Broking Ltd. “There are two options for new public issues—to delay or to reprice. The success of an IPO, in terms of bids received, also depends on its marketing power,” he added, explaining the success of the IPOs of Reliance Power Ltd and Future Capital Holdings Ltd last week. The benchmark index has shed 16.9% since its lifetime high recorded early this month.

IPOs, which are generally looked at as safe investments, have been giving large and rapid returns in recent times, in line with the stock markets that experienced an extended bull run. That’s resulted in a huge appetite for IPOs among investors, but with bears taking over the street in recent days, new offerings are less likely to get the same response.
Many recent offerings, all listed at a considerable premium, are now trading at a significant discount to their offer prices. Nine out of 14 stocks that got listed in December are now trading at a discount to their listing prices and six of them are even trading below their offer prices.

Mankasia Ltd and Renaissance Jewellery Ltd closed at more than a 40% discount to their listing prices while two more stocks that entered the market last month have lost more than 37% since their listing. Porwal Auto Components Ltd, Precision Pipes and Profiles Co. Ltd and Manaksia Ltd are all down more than 32% from their offer prices.
“Reliance Power and Future Capital listings are very crucial at this time. It they list at considerable premiums, the interest in the IPO market will (be) sustain(ed). Till then it is expected to be very subdued,” said Deepak Jasani, head of retail research at HDFC Securities.

The Rs11,700 crore Reliance Power IPO was subscribed close to 73 times and Future Capital’s float was subscribed 132 times.
“Investors have very short memories; if, say, the eighth IPO from now gives good returns, they will jump on the IPO bandwagon again,” Jasani added.
In 2007, 106 IPOs raised Rs48,329 crore from the market. Investment bankers expect at least Rs1 trillion to be raised from the primary market through public issues in 2008.

IPOs that are set to hit the market over the next fortnight include those of Emaar MGF Ltd, Bang Overseas Ltd and IRB Infrastructure Developers Ltd. Emaar MGF is offering 102.6 million shares at a price band of Rs610-690. The $1.8 billion float opens on 1 February.

“If the market continues to fall, some of the firms that are planning to enter the market may decide to wait. We will advise them to do so. They can delay the float even after they receive the nod of the capital market regulator. This has happened in the past...,” said a senior executive of a domestic brokerage who did not wish to be named.

Via Mint

Bombay Dyeing


Bombay Dyeing

Tanla, Nagarjuna Contructions, Bharat Forge, Emco, Bharati Shipyard


Tanla, Nagarjuna Contructions, Bharat Forge, Emco, Bharati Shipyard

Satyam, Idea Cellular, Ultratech Cement


Satyam, Idea Cellular, Ultratech Cement

Bharat Forge, Biocon


Bharat Forge, Biocon

ITC - Jan 21 2008


ITC - Jan 21 2008

HDFC, ICICI Bank, Satyam, Sona Koyo


HDFC, ICICI Bank, Satyam, Sona Koyo

NSE Bulk Deal Watch - Jan 22 2008


Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-JAN-2008,ABGSHIP,ABG Shipyard Limited,ICICI PRUDENTIAL LIFE INSURANCE CO.LTD.,BUY,288120,792.95,-
22-JAN-2008,APTECHT,Aptech Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,228900,189.76,-
22-JAN-2008,BANKRAJAS,Bank Of Rajasthan Ltd,ABN AMRO BANK N.V. LONDON BRANCH,BUY,1106407,98.94,-
22-JAN-2008,BINDALAGRO,Oswal Chem & Fert Ltd.,P M AIR PRODUCTS PRIVATE LIMITED,BUY,1220000,27.69,-
22-JAN-2008,ERACONS,Era Constructions (India),MONEY MATTERS ADVISORY SERVICES LIMITED,BUY,140000,710.91,-
22-JAN-2008,GANGOTRI,Gangotri Textiles Limited,RAMNIWA BAJAJ & CO. HUF,BUY,200000,14.55,-
22-JAN-2008,GEOMETRIC,Geometric Limited,BILL & MELINDA GATES FOUNDATION,BUY,342200,72.00,-
22-JAN-2008,GITANJALI,Gitanjali Gems Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,591210,250.98,-
22-JAN-2008,GOKEX,Gokaldas Exports Limited,JAI SIYARAM COMMODITY TRADING PVT. LTD.,BUY,395488,264.00,-
22-JAN-2008,GOKEX,Gokaldas Exports Limited,Vinamra Universal Traders Pvt.Ltd.,BUY,325939,266.47,-
22-JAN-2008,HINDDORROL,Hindustan Dorr-Oliver Ltd,SOMEREST EMERGING OPPRTUNITI FUN,BUY,450000,129.40,-
22-JAN-2008,INDIAINFO,India Infoline Limited,ORIENT GLOBAL TAMARIND(MAURITIUS)LIMITED,BUY,354737,1131.00,-
22-JAN-2008,KOTHARIPRO,Kothari Products Ltd.,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,58904,700.00,-
22-JAN-2008,LAXMIMACH,Lakshmi Mach Works,ICICI PRUDENTIAL LIFE INSURANCE CO.LTD.,BUY,91491,2044.05,-
22-JAN-2008,ORCHIDCHEM,Orchid Chemicals Ltd.,LB INDIA HOLDINGS CAYMAN II LTD,BUY,334000,228.73,-
22-JAN-2008,PIONEEREMB,Pioneer Embroideries Limi,LALIT KUMAR LOHIA,BUY,57207,196.90,-
22-JAN-2008,SKUMARSYNF,S. Kumars Nationwide Ltd,SHEEN PEARL INVESTMENTS LIMITED,BUY,1025000,109.27,-
22-JAN-2008,VENUSREM,Venus Remedies Limited,RAKHI PROPERTIES AND LEASING P,BUY,60000,414.00,-
22-JAN-2008,BINDALAGRO,Oswal Chem & Fert Ltd.,LB INDIA HOLDINGS CAYMAN II LTD,SELL,1173150,26.86,-
22-JAN-2008,BINDALAGRO,Oswal Chem & Fert Ltd.,SIMPLICITY AB,SELL,1850000,28.01,-
22-JAN-2008,DRREDDY,Dr. Reddys Lab Ltd,HSBC GLOBAL INVESTMENT FUNDS A/C HSBC GLOBAL INVE,SELL,965578,595.30,-
22-JAN-2008,EMCO,Emco Limited,HSBC GLOBAL INVESTMENT FUNDS A/C HSBC GLOBAL INVESTMENT FUND,SELL,59391,1074.88,-
22-JAN-2008,ERACONS,Era Constructions (India),MONEY MATTERS ADVISORY SERVICES LTD ,SELL,140000,710.88,-
22-JAN-2008,GANGOTRI,Gangotri Textiles Limited,VINODKUMAR BAJAJ & CO. HUF,SELL,200000,14.55,-
22-JAN-2008,GOKEX,Gokaldas Exports Limited,ICICI BANK,SELL,308240,264.00,-
22-JAN-2008,GOKEX,Gokaldas Exports Limited,JAI SIYARAM COMMODITY TRADING PVT. LTD.,SELL,395488,266.50,-
22-JAN-2008,HINDDORROL,Hindustan Dorr-Oliver Ltd,KARAN G MEHTA,SELL,450000,129.40,-
22-JAN-2008,IFCI,IFCI Ltd.,ABN AMRO BANK NV LONDON BRANCH,SELL,7920250,44.57,-
22-JAN-2008,JKLAKSHMI,JK Lakshmi Cement Limited,VIJAY KUMAR,SELL,293755,111.32,-
22-JAN-2008,KOTHARIPRO,Kothari Products Ltd.,PEGASUS STOCKS AND SHARES PVT LTD,SELL,35696,700.00,-
22-JAN-2008,MANGLMCEM,Mangalam Cement Ltd,DELHI IRON & STEEL COMPANY PVT LTD,SELL,147867,110.18,-
22-JAN-2008,TATAMETALI,Tata Metaliks Ltd,VIJAY KUMAR,SELL,148946,110.43,-
22-JAN-2008,VENUSREM,Venus Remedies Limited,BRICS SECURITIES LTD.,SELL,60000,414.00,-

BSE Bulk Deals to Watch - Jan 22 2008


Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
22/1/2008 532828 AMD METPLAST JUPITOR BUSINESSES LTD S 115000 37.96
22/1/2008 532828 AMD METPLAST ELDORADO BIOTECH PVT LTD S 115000 37.98
22/1/2008 505506 AXON INFOTEC T RAJESH S 3351 51.05
22/1/2008 530843 CUPID LTD SHILPA R SIDHWANI S 150000 19.45
22/1/2008 530843 CUPID LTD MAHENDRAPAL R BAHL S 50000 19.53
22/1/2008 500147 FLAP PROD EQ ESDOTCOM SUPPORT AND SOFTWARE SERV PVT LTD B 69999 440.85
22/1/2008 530343 GENUS POWER LATA BHANSHALI B 240000 564.20
22/1/2008 532764 GWALIOR CHEM M.DEBOO B 183763 61.65
22/1/2008 501295 IND INV TRUS DHANANJAYA MONEY MANAGEMENT SER P LTD B 250869 100.00
22/1/2008 501295 IND INV TRUS BHAMRIBAI BHAVARLAL JAIN S 249844 100.00
22/1/2008 515093 MADHAV MAR G LRS PORTFOLIO AND ADV SER P LTD B 52071 58.86
22/1/2008 515093 MADHAV MAR G ELDORADO BIOTECH PVT LTD S 49828 59.06
22/1/2008 532408 MEGASOFT LTD COPTHALL MAURITIUS B 275000 93.14
22/1/2008 532408 MEGASOFT LTD PRATIBHUTI SHARE VINIMAY PVT LTD S 250000 88.58
22/1/2008 513446 MONNE ISPAT DEUTSCHE SECURITIES MAURITIUS LIMITED B 375626 372.00
22/1/2008 513446 MONNE ISPAT DEUTSCHE BANK AG LONDON GDR ACCOUNT S 375633 372.00
22/1/2008 590057 NORTHGATE TE MACQUARIE BANK LIMITED B 142996 495.06
22/1/2008 531092 OM MET INFRA BSMA LTD B 500000 65.49
22/1/2008 500357 RAMA PAPER GEOMETRIC SEC AND ADV SER P LTD B 67990 20.69
22/1/2008 500357 RAMA PAPER CAMPHAR SEC AND ADV SERV P LTD S 40000 20.85
22/1/2008 500357 RAMA PAPER MAHENDRAPAL R BAHL S 158670 20.46
21/1/2008 504629 ANIL SP STEL GUNVANTI GOSAR S 24000 30.90
21/1/2008 505506 AXON INFOTEC ABSOLUTE LEASING AND FINVEST PVT B 4000 63.97
21/1/2008 505506 AXON INFOTEC KUSHAL SOFTWARE LTD S 7000 68.57
21/1/2008 512493 GARNET INTL NEWTREE TRADING CO PVT LTD S 40000 91.00
21/1/2008 523710 SAYAJ HOTELS XITIJ INVESTMENTS S 112850 124.57
21/1/2008 500389 SILVERLINE T BSMA LIMITED DR S 218525 86.67
21/1/2008 532765 USHER AGRO CHITRA JITENDRA MAYKAR B 152085 220.38
21/1/2008 532765 USHER AGRO CHITRA JITENDRA MAYKAR S 281330 219.01
18/1/2008 530835 ELTROL LTD TRANSGLOBAL SECURITIES LTD B 275000 2.00
22/1/2007 532764 GWALIOR CHEM TRADE PARTNERS INTERNATIONAL S 183763 61.65

Fed Statement


The Federal Open Market Committee decided today to lower its target for the federal funds rate 75 basis points to 3.5 percent.

The committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.

The committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

Appreciable downside risks to growth remain. The committee will continue to assess the effects of financial and other developments on economic prospects and will act in a timely manner as needed to address those risks.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Charles L. Evans; Thomas M. Hoenig; Donald L. Kohn; Randall S. Kroszner; Eric S. Rosengren; and Kevin M. Warsh. Voting against was William Poole, who did not believe that current conditions justified policy action before the regularly scheduled meeting next week. Absent and not voting was Frederic S. Mishkin.

In a related action, the Board of Governors approved a 75-basis-point decrease in the discount rate to 4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Chicago and Minneapolis

BREAKING - FED CUTS RATES by 75 bps


The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, cut a key interest rate by three-quarters of a percentage point on Tuesday, the biggest one-day move by the central bank in recent memory.

The Fed said it was cutting the federal funds rate, the interest that banks charge each other on overnight loans, to 3.5 percent, down by three-fourths of a percentage point from 4.25 percent.

The Fed action was the most dramatic signal it can send that it is concerned about a potential recession in the United States. It marked the biggest one-day move by the central bank in recent memory.

The Fed decision was taken during an emergency telephone conference with Fed officials on Monday night. Those discussions occurred after global financial markets had plunged Monday as investors grew more concerned about the possibility that the United States, the world's largest economy, could be headed into a recession.

Post Market Commentary - Jan 22 2008


The Indian bourses closed in deep red but considering the initial set back, it has managed to recover some ground. The market opened with circuit down and was shut for an hour. However, during the last trading hour, the market has some buying support mainly on account of positive cues of recovery in European market.

The BSE Sensex touched an intraday high of 17,068.57 and low of 15,332.42. Finally, the BSE Sensex ended the day with a decline of 875.41 points to close at 16,729.94. The NSE Nifty reached an intra day high and low of 5,203.35 and 4,448.50 respectively and finally ended with a decline of 309.5 points to close at 4,899.30. The BSE Mid Cap and Small Cap closed with a decline of 679.74 points and 883.27 points at 7,202.25 and 10,028.39 respectively.

Among BSE sectoral indices, Oil & Gas and Reality witnessed the most significant decline and reported 10.05% or 1,114.55 points and 9.15% or 959.03 points downfall to close at 9,974.78 and 9,520.84 respectively. In oil & gas index, RNRL and Essar Oil were the main losers with a significant loss of 26.87% and 21.67% respectively. In Reality Index, Omaxe and Peninsula Land reported the hefty decline of 30.22% and 28.51% respectively.

BSE Consumer Durables and FMCG ended with a reduction of 7.99% or 427.60 points and 7.96% or 173.04 points to close at 4,924.03 and 2,000.17 respectively. In BSE CD index, Rajesh Export and Gitanjali fell by a staggering 15.62% and 15.35% respectively. In FMCG index, Tata Tea and GlaxoSmithKline Consumer Healthcare were the main losers.

BSE Auto and Bank indices moved in a similar fashion as both the indices fell by nearly 4%. In auto index, Escorts and MRF fell by 15.87% and 14.20% respectively.

BSE Teck and IT indices were witnessed the lowest decline of 3.58% or 115.13 points and 3.63% or 129.66 points respectively. In BSE IT index, GTL Ltd ended the day with a gain of 1.67%.

Sensex drops 5% amidst high drama


The market witnessed the biggest carnage today with the trading coming to a halt within minutes of the opening bell following a sharp drop of over 10% on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Last time the market was suspended from trading was on October 17, 2007. Against the backdrop of weak Asian indices and yesterday's crash of over 1,400 points, the Sensex witnessed a free-fall and plunged below the 15,500 level to touch an intra-day low of 15,332, down 2,273 points. Following the resumption of trading in mid-morning, the Sensex and the Nifty recovered substantially from their earlier losses. The Sensex and Nifty traded above the 16,500 mark and the 4,800 level respectively after the finance minister issued a statement that there was no problem with the fundamentals of the economy and banks would provide enough liquidity. Finally, the Sensex ended 4.97% lower or 875 points down at 16,730, whereas the Nifty was down 5.94% or 394 points at 4,899.

The market breadth was overwhelmingly weak, with losers outnumbering gainers by 15:1 on the BSE. Of the 2,454 stocks traded on the BSE 2,273 stocks declined, 152 stocks advanced and 29 stocks ended unchanged. All the BSE sectoral indices continued to trade weak and dropped around 3-10% each. The BSE Oil & Gas Index was the major loser and lost 10% while the BSE Realty Index shed 9%.

Majority of the 30-Sensex stocks ended in the red. Among the major losers ONGC shed 13.62% at Rs962, ITC plunged 9.54% at Rs184, Hindalco crumbled 9.37% at Rs150, M&M crashed 9.14% at Rs611, Ambuja Cement slipped by 8.57% at Rs116, Cipla tumbled 8.14% at Rs175, HDFC lost 8.10% at Rs2,480, Reliance Industries dropped 7.32% at Rs2,358, Tata Steel slumped 7.11% at Rs671 and HLL fell by 6.78% at Rs186. Select front-line counters rebounded from their intra-day lows and ended in the green. Bharti Airtel rose 2.54% at Rs849 while Tata Motors gained marginally at Rs658.

Over 3.74 crore RNRL shares changed hands on the BSE followed by Reliance Petroleum (3.08 crore shares), Ispat Industries (2.32 crore shares), IFCI (2.20 crore shares) and Tata Teleservices (1.44 crore shares).

Valuewise, Reliance Industries registered a turnover of Rs440 crore followed by Reliance Petroleum (Rs413 crore), RNRL (Rs404 crore), Reliance Energy (Rs367 crore) and ICICI Bank (Rs175 crore).

Sensex down nearly 20% in seven trading sessions


The market tumbled for the second day in a row today as margin calls created havoc on the bourses. Though the market ended sharply down, it came off lower level after a huge intra-day fall. With today’s fall the market has now been declining for seventh consecutive session.

Earlier today, market wide circuit filters were applied after an intra-day 10% fall occurred in key benchmark indices in minutes of commencement of trade. Trading on the bourses was halted for one hour as the 10% market wide circuit filters were applied after the sharp fall. Trading resumed at 10:55 IST.

The market came off lower level in mid-afternoon trade as European markets recovered with major markets regaining positive zone. However stocks tumbled across Asia today as panic gripped markets that a US recession could derail global economic growth, sending investors fleeing to safe-haven government bonds.

The BSE Sensex lost 875.41 points or 4.97% to 16,729.94. Sensex hit a low of 15,332.42 in mid-morning trade. At the day's low, Sensex had lost 2273.93 points. It oscillated in a wide range of 1736.15 points for the day amid intense volatility. Sensex hit a high of 17068.57 in the day.

With today’s fall, the BSE Sensex has lost 4,097.51 points or 19.67% in just seven consecutive sessions from a recent high of 20,827.45 on 11 January 2008. The S&P CNX Nifty has lost 1300.80 points or 20.98% from 6200.10 on 11 January 2008.

Sensex is now down 4476.83 points or 21.11% from its record high of 21,206.77 hit on 10 January 2008. The S&P CNX Nifty is down 1457.80 points or 22.93% from all-time high of 6,357.10 hit on 8 January 2008.

The fall has been even steeper in small-cap and mid-cap indices. The BSE Mid-Cap index has shed 3043.56 points or 29.70% from a record high of 10245.81 hit on 8 January 2008. The BSE Small-Cap index has lost 4210.85 points or 29.57% from a record high of 14239.24 hit on 8 January 2008.

Nifty lost 309.50 points or 5.94% today to settle at 4,899.30. At the day’s low of 4,448.50, the Nifty lost 760.30 points for the day. Nifty January 2008 futures were at 4,920, a premium of 20.70 points as compared to spot closing.

Turnover in National Stock Exchange’s futures & options segment slumped 46.12% to Rs 44307.58 crore from yesterday’s turnover of Rs 82241.65 crore

The BSE Mid-Cap index lost 8.62% to 7,202.25 and the BSE Small-Cap index slipped 8.09% to 10,028.39. Both these indices underperformed the Sensex

All the sectoral indices on BSE registered steep losses today. BSE FMCG Index (down 7.96% at 2,000.17), BSE Power Index (down 6.22% at 3,590.83), BSE Realty (down 9.15% to 9,520.84), BSE Metal index (down 5.68% at 14,114.03), BSE PSU index (down 7.74% to 7,961.77), BSE Health Care index (down 6.09% at 3,476.31), BSE Oil and Gas index (down 10.05% at 9,974.78), BSE Consumer Durables index (down 7.99% to 4,924.03), underperformed the Sensex

BSE TecK index (down 3.58% to 3,099.41), BSE Auto index (down 4.05% at 4,475.56), Bankex (down 4% to 10,158.35), BSE Capital Goods index (down 3.72% at 16,452.73), BSE IT index (down 3.63% to 3,443.59), outperformed the Sensex

Margin calls, both by brokers to investors and by exchanges to brokers, added to the selling pressure after a two-day carnage in share prices. Brokers would not let clients make new purchases until margins were topped up on existing trades, and the exchanges also called margins due from brokers.

Margin trading is where investors trade shares without paying the full cost of the share. Instead a margin or percentage is paid as collateral, and when the market moves against the investor, the margin needs to be topped up. If the investor does not make payment, the shares can be sold by the broker. A margin call is also triggered when shares that an investor had bought with borrowed money decrease in value. If the investor is not able to put up additional margin, the broker/financer will resort to sale of shares.

Sensex had tumbled 1408.35 points or 7.41% to 17,605.35 on Monday, 21 January 2008, hit by setback in Asian stocks, FII selling and margin calls.

Finance Minister P Chidambaram today said the fundamentals of the economy are strong and liquidity will not be a problem. Chidambaram said there was no reason at all to allow the worries of the Western world to overwhelm us. Our economy is very different from some developed economies which are facing some stress, he said.

The finance minister further stated that Reserve Bank of India as well as banks will provide enough liquidity to brokers and other market players, adding that liquidity will not be an issue.

The total turnover on BSE was quite low today probably as many brokers were unable to trade in the morning as their terminals were shut due to non-payment of margins to the exchange. BSE clocked a turnover of Rs 6846 crore as compared to Rs 9336 crore yesterday, 21 January 2008.

The market breadth was extremely weak on BSE. On BSE, 2264 declined as compared to just 162 that rose. 26 shares remained unchanged.

Among the 30-member Sensex pack, 26 declined while the rest gained. In opening trade, all the 30-members of Sensex pack were in red.

India’s largest oil exploration company in terms of market capitalisation Oil & Natural Gas Corporation plunged 12.48% to Rs 975 on 7.48 lakh shares. It was the top loser from Sensex pack. The stock recovered sharply from day’s low of Rs 850.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries was down 7.62% to Rs 2350.35, off sharply from day’s low of Rs 2120. 18.89 lakh shares were traded on the counter

ICICI Bank, the country’s largest private sector bank in terms of net profit, was down 3.68% to Rs 1130, off session's low of Rs 1005.55.

HDFC Bank slumped 3.13% to Rs 1470. It registered 45.2% rise in net profit to Rs 429.36 on on 59.70% rise in total income to Rs 3405.79 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Monday, 21 January 2008.

ITC (down 10.50% to Rs 182), Ambuja Cements (down 10.22% to Rs 114.15), and Hindalco Industries (down 11.42% to Rs 147), were the other losers from Sensex pack

Grasim Industries fell 6.11% to Rs 2840 despite reporting 34.55% rise in net profit to Rs 553.79 crore on 15.93% rise in total income to Rs 2694.96 crore in Q3 December 2007 over Q3 December 2006. The results were announced during trading hours today, 22 January 2008.

Bharti Airtel surged 3.24% to Rs 855.10 and was the top gainer from Sensex pack. The stock recovered sharply from day’s low of Rs 700.

Infosys Technologies (up 2.14% to Rs 1420), Reliance Energy (up 1.35% to Rs 1800), and Bajaj Auto (up 0.75% to Rs 2080), were the other gainers from Sensex pack.

Reliance Industries was the most active counter on BSE with turnover of Rs 440.50 crore followed by Reliance Petroleum (Rs 413.50 crore), Reliance Natural Resources (Rs 404 crore), Reliance Energy (Rs 368 crore) and ICICI Bank (Rs 175 crore) in that order

Reliance Natural Resources led the volume chart on BSE clocking total volume of 3.73 crore shares followed by Reliance Petroleum (3.09 crore shares), Ispat Industries (2.33 crore shares), IFCI (2.20 crore shares) and Tata Teleservices (Maharashtra) (1.45 crore shares) in that order

Select side counters managed to outperform the falling markets. They were, Yuken India (up 20% at Rs 324.10), Amara Raja Batteries (up 20% at Rs 223.65), EIH Associated Hotels (up 20% at Rs 177), Milkfood (up 10% at Rs 361.40), and Greenply Industries (up 19.58% at Rs 390), surged

However, Info Edge Solutions (down 29.88% to Rs 880), Omaxe (down 28.89% to Rs 229.05), Peninsula Land (down 28.11% to Rs 72.50), Reliance Natural Resources (down 26.58% to Rs 116), and Kalyani Steel (down 24.50% to Rs 300), slumped

The SpiceJet counter saw hypervolatility today. It was down a whopping 43.48% at one point of time to day’s low of Rs 44. However it settled 0.39% higher at Rs 78.15 on total volumes of 39.94 lakh shares

Lupin declined 6.92% to Rs 500. It reported 203.90% jump in net profit to Rs 170.28 crore on 46.14% rise in total income to Rs 747.05 crore in Q3 December 2007 over Q3 December 2006.

Sterlite Technologies tumbled 30.42% to Rs 160. It reported 105.1% rise in net profit to Rs 26.40 in on 59.70% rise in net sales to Rs 3405.79 crore in Q3 December 2007 over Q3 December 2006.

Godrej Consumer Products declined 9.46% to Rs 101.50. The company said it has entered into an agreement for acquiring the Kinky hair brand business, one of the leading brands in the South African hair business, which is a 36-year-old business set up by a family of entrepreneurs in South Africa.

i-flex Solutions declined 17.53% to Rs 925 even as it reported 1346.59% rise in net profit to Rs 110.78 crore on 949.57% spurt in total income to Rs 456.74 crore in Q3 December 2007 over Q2 September 2007.

Corporation Bank declined 1.38% to Rs 375 despite reporting 30.38% rise in net profit to Rs 190.9 crore on 23.18% rise in total income to Rs 1265.83 crore in Q3 December 2007 over Q3 December 2006.

Among the BSE ‘A’ group stocks on BSE, public sector lender Indian Bank soared 8.07% to Rs 201.50 and topped gainers in the BSE’s A group shares. Kotak Mahindra Bank (up 4.17% to Rs 1,009.55), Finolex Cables (up 3.13% to Rs 92.40), Nirma (up 2.82% to Rs 197) and Pfizer moved (up 2.77% to Rs 659.95) were the other gainers in that order.

Buying from insurance firms and mutual funds has supported the market at declines in recent months. But the recent carnage on the street may, in fact, cause redemption pressure for mutual funds. This may accentuate fall on the bourses.

Insurance firms have been raising lots of funds through unit-linked insurance plans with high weightage for equity. The money is being pumped in the secondary market. It now remains to be seen whether the investors in a unit-liked insurance plan (ULIP) stick to a plan with high exposure to equity if the market continues to remain weak. Insurance companies provide ULIP investors an option to switch over to debt funds from equity funds with certain restrictions.

Some of the foreign institutional investors (FIIs) recently registered with the market regulator Securities & Exchange Board of India (Sebi) may start buying at declines. Since Sebi’s restrictions on participatory notes in October 2007, 134 new FIIs have been registered with Sebi, taking their total tally to 1,259.

European markets staged a solid intra-day recovery today on rumors of a concerted rate cut by the US Federal Reserve, the European Central Bank and Bank of England. The FTSE 100 index of United Kingdom was up 0.44% to 5,603 after a sharp early fall. France’s CAC 40 index was up 0.19% to 4,753.31. However Germany's DAX index declined 2.27% to 6,636.11

Meanwhile, the Bank of Japan (BoJ) voted unanimously to keep interest rates on hold at 0.5% on Tuesday, 22 January 2008 saying the economy was weaker than it had forecast in October owing to a sharp drop off in housing investment.

Hong Kong's Hang Seng (down 8.65% at 21,757.73), Japan's Nikkei (down 5.65% at 12,573.07), Taiwan's Taiwan Weighted (down 6.51% at 7,581.95), China's Shanghai Composite (down 7.22% to 4,559.71) and South Korea's Seoul Composite (down 4.43% at 1,609.02), declined.

US stock markets were closed on Monday, 21 January 2008 in observance of Martin Luther King Day.

The US economy has been hit hard by rising defaults in the sub-prime mortgage sector in which Americans with bad credit records are struggling to pay back housing loans given to them during the housing boom.

US president George Bush on Friday, 18 January 2008, called for a package of tax cuts and other measures totaling around 1% of US gross domestic product, or up to $150 billion, after weak recent reports on employment, retail sales, factory activity, and housing construction this month suggested the United States -- the world's largest economy --may be heading into recession. Under consideration in the package announced by Bush are ideas like tax rebates, incentives for businesses, and extensions of unemployment insurance.

Crude oil prices fell on Tuesday, 22 January 2008 on mounting concerns that the U.S. economy may be heading into a recession that would likely dampen crude demand. Light, sweet crude for February delivery fell $2.22 to $88.35 a barrel in electronic trading on the New York Mercantile Exchange in Singapore. In London, Brent crude futures for March delivery fell 16 cents to $87.35 a barrel

10 min to go


Another down Circuit or FM is pumping in money ?

Avoid midcaps, and especially smallcaps


We would recommend avoiding midcaps and smallcaps

Just buy large caps and potential largecaps (not largecaps which don't have any revenue !!)

Didn't take much time , did it ?


Cascading effects


Hang Seng drops to nearly 2000 pts

Asia might have a cascading effect

IF market doesn't recover today, you can declare to be a bear market

Market trading halted


Trading is halted for 1 hr

Market hits down ciruit


Ok guys, this is crazy, Super time to buy

Yesterday is gone, whats up today ?


You gave your views yesterday!

Today is new, fresh, and we smell more blood

What are you doing today ?

Pain is the name of the game...


The market may extend its losses for seventh straight day following weak global cues. Asian markets were trading weak today, 22 January 2008. Hong Kong's Hang Seng (down 5.36% at 22,542), Japan's Nikkei (down 4.41% at 12,738.31), Taiwan's Taiwan Weighted (down 5.82% at 7,638.07), Singapore's Straits Times (down 3.5% at 2,815.04), China’s Shanghai Composite (down 3.69% to 4,733.21) and South Korea's Seoul Composite (down 3.65% at 1,622.08), all fell sharply.

US stock markets were closed on Monday, 21 January 2008 in observance of Martin Luther King Day.

Sensex had tumbled 1408.35 points or 7.41% to 17,605.35 points on Monday, 21 January 2008 triggered by setback in global markets, selling by foreign institutional investors and margin calls after a proposed US stimulus package failed to soothe fears the US will tip into recession.

The BSE Sensex has now eroded 3601.42 points or 16.98% from a record high of 21,206.77 hit on 10 January 2008.

Responding to the stock market fall on Monday, 21 January 2008, the government has advised investors to take informed and responsible decisions in the situation and not be led by rumours or any unwarranted apprehensions.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 3296.73 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 3399.20 crore on Monday, 21 January 2008.

FIIs were net buyers to the tune of Rs 1,104.41 crore in the futures & options segment on Monday, 21 January 2008. They were net sellers of index futures to the tune of Rs 1,461.31 crore and bought index options worth Rs 374.46 crore. They were net buyers of stock futures to the tune of Rs 2,195.21 crore and sold stock options worth Rs 3.95 crore.

Pressure from margin calls which was the major reason for the huge fall on Monday, will continue today. A margin call is triggered when shares that an investor had bought with borrowed money decrease in value. If the investor is not able to put up additional margin, the broker/financer will resort to sale of shares.

Domestic insurance firms may continue buying at declines. Insurance firms have been raising lots of funds through unit-linked insurance plans with high weightage for equity. The money is being pumped in the secondary market.

Some of the foreign institutional investors (FIIs) recently registered with the market regulator Securities & Exchange Board of India (Sebi) may start buying at declines. Since Sebi’s restrictions on participatory notes in October 2007, 134 new FIIs have been registered with Sebi, taking their total tally to 1,259.

Collections from new funds offers (NFOs) of mutual funds may also provide support to the market at declines as the funds deploy the money in the market. A total of 10 new funds offer are currently on which include Reliance Natural Resources Fund, AIG Infrastructure & Economic Reforms Fund, HDFC Infrastructure Fund, ICICI Prudential Fusion Fund – Series III, among others.

The US economy has been hit hard by rising defaults in the sub-prime mortgage sector in which Americans with bad credit records are struggling to pay back housing loans given to them during the housing boom.

US president George Bush on Friday, 18 January 2008, called for a package of tax cuts and other measures totaling around 1% of US gross domestic product, or up to $150 billion, after weak recent reports on employment, retail sales, factory activity, and housing construction this month suggested the United States -- the world's largest economy --may be heading into recession. Under consideration in the package announced by Bush are ideas like tax rebates, incentives for businesses, and extensions of unemployment insurance.

How to become rich ...


"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
-- Warren Buffett

"The stock market is filled with individuals who know the price of everything, but the value of nothing."
-- Philip Fisher

"Buy what you know"

"Buy low, sell high"

Power Premium - tera kya hoga ?


Future Capital Holding 765 440 to 450


Reliance Power 450 220 to 230


Emaar MGF 725 to 850 280 to 300


J. Kumar Infraprojects 110 to 120 8 to 10


Cords Cable Ind. 125 to 135 10 to 12

Market to witness another sell off


Weak global cues and heavy sell-off in Asian indices in morning trades coupled with yesterday's fall may weigh on local indices in the early trades and thereafter could exhibit volatility during intra-day trades. Caution should be exercised as the market may move in tandem with global indices which are currently under pressure on growing fears that the U.S. economy is heading for recession. However, strong optimism amongst investors could help the sentiment turn positive. On the downside, support for Nifty is at 5100 and on breaking below this level the next support is at 4950, while on the upside it could test 5260. The Sensex has a likely support at 17400 and may face resistance at 17800. Asahi India, Balaji Tele, Bank of India, Grasim, India Infoline, Lupin, Pidilite, Punjab Tractors, Sea Goa, Spice Jet, Tata Elexsi, Tata Teleservices, Tech Mahindra, united Spirits and Vijaya Bank are expected to announce their numbers.

Morning Call - Jan 22 2008


Market Grape Wine :

In House :

Nifty at a supp of 4970 and 4852 with resis at 5230 and 5319

Nifty downside likely to be limited to 4650 ~4600 and 16000~16100 on the sensex.

Mkt likely to stay very volatile for a couple of days.

F&O: Sell Satyam below 369 with a TGT of 350 and a SL of 378



Out House :

Markets at a support of 17017 & 16651 levels with resistance at 17989 & 18118 levels .

Markets to correct sharply with Nifty might support at 5000 below which 4800 levels .

Sell at every rise book profits at every rise .

Dark Horse : Buy A group Fundamentally sound stock at 16500 to 16800 level with 90 days horizon

Daily Technicals, Futures, Outlook - Jan 22 2008


Daily Technicals, Futures, Outlook - Jan 22 2008

Show me the money!


Lack of money is the root of all evil – George Bernard Shaw

Even as we live to fight another day, the fact remains that we are in the midst of one of the worst times ever for global equity markets. And the end is nowhere in sight for the moment. As if the bloodbath in European and Latin American markets overnight was not enough, the Asian markets this morning too have continued from where they left yesterday.

The signs are all flashing red across the world. Investors are seeing their shares erode. Leveraged players are asked to immediately cough up money. Power and Future Capital have taken a different meaning in recent days. People went head over heels borrowing money to subscribe to the high-profile IPOs and now some may see their cheques bounce if the market can't bounce back.

What could also exacerbate the matters for India are the usual technical issues like margin calls, liquidity crunch at broker level and trading limits getting exhausted. Expect some more pain today at least till noon . Just sit out the crisis, and hope for a clear sign of a rebound before taking a fresh plunge. If you have the cash to buy, do it only for long-term as the near term outlook remains grim.

Given the steep fall in Asian and other global markets, we expect another gap-down opening and further weakness. No levels will work in this kind of a market. Even fundamentals are being overlooked. Don't be surprised if there is a trading freeze. If not that, we expect at least another 1,000 points crack in the Sensex.

Things could get even worse once the US markets resume trading today. Wall Street was shut yesterday for a public holiday. Dow Jones futures are trading sharply lower at this point in time. Of course, they would keep on changing as the day goes by depending on the trend in other markets.

A silver lining in the dark clouds is that while FIIs pulled out Rs32.96bn (provisional) from the cash segment yesterday, domestic institutions pumped in almost a similar amount. This trend may persist for a while as a lot of MFs are sitting on cash after raising money through recent NFOs. However, the bad news is it may not be enough to stop the slide.

Results Today: Amara Raja, ANG Auto, Asahi India, Balaji Telefilms, Bank of India, Bombay Rayon Fashions, Brigade Enterprises, Corporation Bank, Cosmo Films, Deccan Aviation, Genus Power, Grasim, Greenply Industries, Gujarat Ambuja Exports, Gujarat Fluorochemicals, GSFC, HEG, i-flex, India Infoline, Info Edge, INOX, Lupin, Mangalam Timber, MIC Electronics, MindTree, Nelco, NOCIL, Noida Toll Bridge, Pantaloon Retail, Phoenix Mills, Punjab Tractors, Sesa Goa, Spicejet, Swaraj Engines, TN Newsprint, Tata Elxsi, Tata Tele (M), Tech Mahindra, United Spirits, UB and Vijaya Bank.

Brazil's Bovespa sank 6.6%, almost 3,800 points, to 53.709.11. Mexico's IPC index fell 5.35%, nearly 1,430 points, to 25,284.88. Europe officially entered bear-market territory, with the pan-European Dow Jones Stoxx 600 index, ending down 5.4% at 309.67.

Leading European indexes also slumped, with the French CAC-40, ending the day down 6.8% at 4,744.45, the German DAX 30 was down 7.2% at 6,790.19, while the UK's FTSE 100 finished 5.5% lower at 5,578.20.

The VDAX-New Index, a benchmark gauge of European stock-market volatility, surged as much as 39%, the most since 2001. The measure of expected price swings for stocks is derived from prices paid for options on Germany's DAX.

This morning the yen declined, erasing gains, on speculation that the recent surge to the strongest in 2 1/2 years against the dollar was excessive. The Australian and New Zealand dollars fell to the lowest in at least four months against the yen as global investors liquidated their higher-yielding assets funded through yen.

Head of the International Monetary Fund (IMF) has called the global economic situation serious and says markets worldwide had responded skeptically to a US stimulus plan. Dominique Strauss-Kahn stresses that a US recession would affect economies across the globe.

"The situation is ... serious," said Strauss-Kahn following a meeting in Paris with French President Nicolas Sarkozy. "All the countries in the world are suffering from a slowdown in growth in the United States."

Back in India though, the Prime Minister and the Finance Minister are still singing the "India Shining" tune. The PM says that sustained orderly growth of the capital markets is a priority area of the UPA Government.

Initially, P Chidambaram refused to comment on the market movement, but by evening his ministry issued a statement advising investors to take informed decisions.

The Bank of Japan (BOJ) today kept interest rates unchanged and economists expect the policy makers to say later today that the world's second-largest economy is growing slower than it had estimated.

Governor Toshihiko Fukui and his colleagues left the benchmark overnight lending rate at 0.5% by a unanimous vote, the bank said in a statement today in Tokyo. The key rate was doubled in February.

Will bounce back remain a hope?

After falling over 1800 points in the previous week, markets further extended their losses on Monday (Jan 21, 2008). It was blood-bath on Dalal Street as a massive sell was triggered on Indian bourses amid rising worries over the US economy and its wider global fallout. It was undoubtedly the biggest ever fall in Indian stock markets history in absolute point’s term. The fall could be attributed to selling pressure all over. Further there were also reports stating margin calls getting triggered and few terminals being shut. All the 30 components of Sensex declined with Reliance Energy losing the most, down 16.38%.

Among the BSE sectoral indices, BSE Metal index (down 13.3%), BSE Realty index (down 12.8%), BSE Oil & Gas index (down 11.9%), BSE Mid-Cap index (down 11.3%) and BSE Power index (down 10.9%) bore the brunt of the selling. Sugar and cement shares too fell sharply.

About 138 stocks advanced on the BSE, while 2,658 stocks declined and 13 stocks remained unchanged. In the BSE 500 index, there were only 5 advancing stocks. Finally, the 30-share Sensex closed at 17,605, plunging 1,408 points (7.4%). The NSE Nifty nose-dived 496 points or 8.7% to close at 5,208.

Reliance Industries slipped 9% to Rs2540. According to reports the company has planned to produce 30-40mn cubic meters of gas a day from six finds in the Mahanadi block with an investment of US$1.14bn and also has acquired 1,000 hectares for Mumbai SEZ. The scrip touched an intra-day high of Rs2779 and a low of Rs2345 and recorded volumes of over 82,00,000 shares on NSE.

Rcom plunged over 12% to Rs613. The company has planned to invest Rs200bn for its network expansion this year reports stated. The scrip touched an intra-day high of Rs704 and a low of Rs571 and recorded volumes of over 1,00,00,000 shares on NSE.

L&T was down over 6% to Rs3696. It is among nine companies that have qualified for 2000-MW Talwandi Sabo coal-based thermal power plant at Mansa in Punjab stated reports. The scrip touched an intra-day high of Rs3939 and a low of Rs3470 and recorded volumes of over 16,00,000 0shares on NSE.

Hero Honda slipped 7% to Rs643. The company announced that it is considering using excess capacity at its existing factories to make components and export motorcycle kits after a new factory at Haridwar, Uttarakhand starts production in April accordig to reports. The scrip touched an intra-day high of Rs697 and a low of Rs634 and recorded volumes of over 1,00,000 shares on NSE.

TVS Motors plummeted over 20% to Rs48 after reports stated that the Supreme Court directed the company not to accept any fresh bookings- for the new TVS Flame bike- till Jan29, 2008. The scrip touched an intra-day high of Rs64 and a low of Rs43 and recorded volumes of over 16,00,000 shares on NSE.

Tata Steel dropped 7.7% to Rs721. According to reports the company may partner Vale, Brazil mining company for projects in Brazil. The company has also signed a joint venture with Oman’s Al Bahja Group to develop limestone deposits in Salalah in the sultanate reports stated. The scrip touched an intra-day high of Rs780 and a low of Rs626 and recorded volumes of over 37,00,000 shares on NSE.

Mysore Cements declined 20% to Rs39. Reports stated that Sebi asked Heidelberg Cement AG to acquire shares of the company from the Indian promoters, the SK Birla group, at the same price at which it bought shares from public shareholders by open offer. The scrip touched an intra-day high of Rs48 and a low of Rs39 and recorded volumes of over 4,00,000 shares on BSE.

News Snippets:

Reliance Energy raises Rs78.4bn through allotment of convertible warrants to AAA Project Ventures, a promoter group company. (ET)

Reliance Communications awards GSM roll-out contract valued at US$500-600mn to Chinese telecom network major Huawei. (ET)

Satyam Computers has acquired US-based consulting firm Bridge Strategy Group in an all-cash deal of US$35mn. (ET)

L&T bags Rs17bn order from Kuwait National Petroleum Company to manufacture and supply reactors for its clean fuel project. (ET)

Dr. Reddy’s have entered into a settlement agreement with Novartis to suspend the launch of its generic capsule rivastigmine tartrate till 2014. (ET)

Ranbaxy has reached an out-of-court settlement with GSKSmithKlime to market generic copies of the latter’s US$1bn migraine drug Imitrex in the US. (ET)

Wipro Infotech wins a US$100mn deal from Saudi Arabian Airlines. (ET)

The Supreme Court refuses to allow TVS to market its 125cc bike ‘Flame’ till the Madras high court hears the patent case filed by Bajaj Auto. (DNA)

RIL multi-product SEZ in Jhajjar district in Haryana is approved by the Centre. (FE)

IOC, Oil India and an Algerian company to prospect oil in Libyan onshore block. (BL)

MRPL and Shell in JV to market and supply aviation fuel in Bangalore and Hyderabad airports. (BL)

Sintex Industries is close to acquiring a composites company abroad in a deal worth around US$100mn. (DNA)

Private equity players acquire 21% equity in Ballarpur Paper Holdings for Rs7bn. (ET)

Network 18 group plans to launch a 24-hour home shopping television channel soon. (DNA)

Raj TV to spent Rs500mn for adding more channels over next 20 months. (BL)

Sona Okegawa, part of Sona group, acquires ThyssenKrupp’s precision forging company. (BL)

Vodafone Essar to invest US$6bn over next three years to increase its mobile subscriber base to over 100mn. (BL)

Finance Minister agrees to meet fertilizer sector subsidy needs and other demands. (FE)

Government proposes to introduce new regulations for mining operations to penalize companies delaying development of mines by levying higher rent on the leasehold area. (ET)

Decision on hike in petroleum products postponed until next week. (FE)

10% surcharge on personal and corporate income tax may by halved or scrapped in the Budget. (BS)

Poll Results - Will you sell Reliance Power on listing?


Yes 471 (67.5%)

No 226 (32.5%)

TOTAL VOTES : 697

What do you think ? People will be a position to sell Reliance Power on listing ? How different would this poll results be if we re-ran it again ?

And Mr. Ambani was trying to sell "ALL" the shares to retail :)

See the Older Poll results to find what percentage of you wanted to apply for the issue in the first place

ICICI Bank, HDFC, ITC, Wipro, Idea, PFC, Reliance, Ultratech, BHEL, LIC Housing


ICICI Bank, HDFC, ITC, Wipro, Idea, PFC, Reliance, Ultratech, BHEL, LIC Housing

Welspun Gujarat


We recommend a sell in Welspun-Gujarat Stahl Rohren at current market price. The chart of the Welspun-Gujarat Stahl Rohren suggests that the stock had been on a steady bull run from its March 2007 low of Rs 90 till it marked a life high of Rs 537 in mid of January 2008. However, after marking life high, the stock reversed direction and began to decline. The prolonged bearish divergence in the weekly momentum indicator and the weekly moving average convergence divergence lines in the overbought region have strongly supported this reversal. On January 21, the stock tumbled 14 per cent, penetrating the intermediate up trendline as well as the 21-day and 50-day moving average lines. The daily momentum indicator is likely to enter the bearish zone and the weekly momentum indicator is likely to enter the neutral region from the bullish zone. On the upside, the immediate resistance for the stock is at Rs 462 and the subsequent resistance is at Rs 490 levels. The short-term investors can book profit or sell the stock while keeping the stop-loss at Rs 455 level. Considering the above arguments, we expect the stock to decline further in the short-term to the immediate support level of Rs 370.

JBF Industries


JBF Industries

Biocon


Biocon

Gold falls too


US markets are shut on account of King Martin Luther Day

Yellow metal nose-dived today despite the turmoil in the global financial markets over the heightened concerns that US will lead a global economic slowdown. Bullion tumbled today on dollar strength against the euro and on plunge in the oil prices on continuously rising demand concerns. Though U.S. markets are shut for a holiday, stock futures declined a whopping 400 points as global indexes become unhinged.

The downbeat start to the week followed a poor performance from the U.S. on Friday, which triggered steep losses in the Asian and European markets today. Losses from financials were to blame in both cases, after U.S. bond insurers came under fire from a ratings agency last week and as a proposed economic stimulus plan from President Bush failed to generate much enthusiasm in a week of U.S. banking sector results.

MCX bullion futures are trading down around Rs 100 at 11097 per 10 grams in the late electronic session. Its international counter part is trading at $872 down nearly $10 an ounce.

Base metals also dropped very steeply hurt by the growth concerns in US and its spill over effects on the global economies.

In currencies today, Euro floundered against both the US dollar and Japanese yen. The euro tumbled following weekend remarks from a European Central Bank policymaker that further underlined expectations for slower growth across the nations that make up the single currency. Also the speculation that the Societe Generale the main European financial services companies may be forced to write down assets reflected that the US recession is having impact on Europe.

The Bank of Japan is widely expected to hold interest rates steady at 0.50% when it announces its policy decision on Tuesday. The pound fell to its lowest in nearly a year against the dollar on Monday, pressured by a spike in global risk appetite and further evidence that the UK housing market is heading for a sharp downturn.