Post Market Commentary - Feb 22 2008

The market closed on a disappointing note with heavy losses across the sectoral indices. Taking the negative cues from the global markets, the domestic market opened with a heavy gap down and kept on hovering in the negative territory through out the trading session. Lack of investor''s interest in buying to book their positions led the frontline indices to close in the negative territory. Also, the weekly inflation figures that rose 4.35% for the week ended February 9, 2008 from 4.07% last week also add to the negative sentiments in the market. Also, the Union Budget 2008-09 due next week on Feb 29 led the investors to take calculative steps to book their positions. This budget will be last full-fledged budget from the Congress led UPA government before general elections, which is scheduled to be held early next year. From the sectoral front, the bankex, Oil & Gas, CG and IT were the most hit as most selling was seen from heses counters. The BSE Sensex closed lower by 385.61 points at 17,349.09 and NSE Nifty closed down by 81.05 points at 5,110.75. The BSE Mid Cap and Small Cap closed lower by 74.48 points and 97.58 points at 7,594.45 and 9,595.41 respectively.

BSE Bankex index fell by 328.72 points to close at 10,150.22. Major losers are HDFC bank (4.40%), ICICI bank (3.89%), Oriental bank (3.34%), Axis bank (3.12%).

BSE Oil & Gas index dropped by 239.26 points to close at 10,673. Scrips that lost are Cairn Ind (3.08%), Gail India (3%), Reliance Inds (2.87%), RNRL (2.43%).

BSE Metal index slipped by 70.44 points to close at 16,368.94 as Gujrat NRE (3.87%), Welspun Guj (3.42%), Ispat Inds (2.14%), JSW Steel (2.38%), Maharash Sea (2.24%) closed lower.

BSE IT index closed lower by 123.69 points at 3,918.28 as HCL Tech (4.97%), Mphasis (4.94%), Rolta Ind (4.78%), Satyam (4.23%), Mosear Baer (3.23%) and TCS (2.28%) closed in red.

BSE CG dropped by 181.74 points to close at 15,656.16. Losers are BEML (4.15%), Crompton Greaves (3.51%), Thermax (3.38%), Areva (3.04%) and BHEL (1.59%).

Weekly Close: Investors low on Budget !

It seems investors lost faith in Indian markets. The bourse continues is to trade with low volumes and that also with low sentiments. Sessions were extremely choppy and witnessed roller coaster movement. Market for now is lacklustre and really not showing strength. Any upward rally support by some short term event is use by investor to book profits. For now market really appears as ?no investors land?. Some stock specific action propped up in between on expectations built ahead of budget. But, it would not be wise to expect very good news from budget. Next week is the FNO expiry which could add to the volatility.

Action across global were not too exciting this week. Negative economic news flow continues however, there was some relief from corporate results in US. Recession fear has now started hovering across other parts of the world. Europe and Japan may follow US if the recession worries intensify. Japan is more like to be affected as it is one of the major lenders to US.

Market this week: Sensex down by 4%, Nifty (- 4%), Midcap (- 4%), Small cap (-0.4%), Metal index (-7%), Bank (-7%), Capital goods (- 4.8%), Oil & Gas (- 5.5%). Suzlon (- 9%), Rel Energy (- 9%), Tata Motors (- 7.5%), HDFC (- 12%), SBI (- 8.5%), ICICI (- 8%) while TCS was the in the gainers side up by 3%.

Inflation for the week stood at 4.35%, higher than market expectation. Inflation is at 6 months high. The increase was led by high primary articles that is food and mined articles. Fuel was stable which has around 14% weight age on WPI index. But, Petrol and Diesel prices have been hiked last week and next week we will see the Inflation impacting as it expected to be higher than 4.7%?In such scenario probability of rate cut seems bleak.

The rupee was seen weak as it jumped the Rs 40 mark against the Dollar and touched a five-month low. This saw positive impact on software companies as they rallied and TCS closed higher for the week. But, we are not convinced on the direction and feel that the weakness was seen due to the FII flow moving out of the country. But, the worry is still there as many companies have shrugged off some of their employees with Mphasis being the last one.

Sesa Goa Ltd., India's biggest non- state iron ore exporter was in focus for the whole week on expectations that it will raise prices for Japanese steelmakers from April 1 matching the price increase by Brazil's Cia. Vale do Rio Doce. Global iron ore prices have been trending up over the last few years. Given the strong demand from China and lagging supplies from the three consolidated global miners, we expects iron ore prices to continue its upward movement. Sesa Goa is India?s largest private iron ore miner with reserves of over 207 million tonne. It is aggressively ramping up production to capitalize on the rising price trend. Valuations are attractive. Sail and Tisco also benefits from this but Sesa Goa would be preferred player. Expect a detailed note coming week.

We had our research on DLF this week. DLF group is a leading real estate developer in India having a strong foothold in the National Capital Region of Delhi.DLF?s has three prime divisions: Homes, Offices and Shopping Malls. To these DLF has added three more divisions: Hotels, Infrastructure and SEZs. DLF has been developing an area of 748 Mn sq.ft and that too at minimal cost of around Rs 300 per sq.ft . Hence the company does not need to invest much in future, and also most of the properties are presold. There is sensitivity to the profit margin of selling price and development cost and that can have big variation. Our valuation parameters are based on the value of DLF?s land bank and to add to that the profitability of the future. Do read our note for our view on this one.

SKF Indian reported healthy results for the 4th quarter and FY07. For the 4th quarter the top line grew 11% to Rs 420 cr and the bottom line grew 10% to Rs 40 cr on yoy basis. The Ebidta profit enhanced 19% to Rs 61 cr while Ebidta margins were unchanged at 15%. The better efficiency and economies of scale helped the company to maintain the margins. Valuations seems to be fair at the current market price of Rs 368, the stock trades at 12 times of FY07 earnings. Despite the slow down in auto and industrial sectors the company has been able to maintain a healthy growth because of more exposure to after market sales. For details do read our analysis on this

Shringar Cinema one of Mumbai?s leading Multiplex player with its Fame brand of theatres. The company started as a production house then shifted Distribution to Exhibition business where it felt it has great potential to grow. The company operates 48 screens with 14 properties. This Business contributes over 65% of the revenue and around 30% is contributed by its Distribution business. We like the Film exhibition business as there are huge opportunities here. But, this business requires large space and rentals which squeezes bottom line if the occupancy is not maintained. Shringar own presence in distribution, which accounts for about 31% of its consolidated revenue in FY07. We believe that increases the risk here. The aggressive expansion plan is also hit with delay in hand over of the properties in time. We think that it?s a high risk proposition and risk reward is in favor. It?s meant for investors willing to take a high risk bet. However there are other plays in this business who seem to be better placed.

Technically speaking: Sensex has closed near its very important support level of 17250, if we break this support, we might fall another 1000 points and the next major support comes just above 16k. On the higher side, there are resistance at every 200 points.

Bears strike back

The Sensex showed solid strength in yesterday's trades and surged over 100 points on strong buying support. However, today the bears hit back strongly and triggered a major sell-off in the market during intra-day trades. US markets fell yesterday on the worse-than-forecast manufacturing report and higher stockpiles of oil, thereby reviving the concerns of recession. Tracking the same, major Asian indices fell over 1% and the Sensex resumed the session with a negative gap of 219 points at 17,516 and continued moving southwards. After plunging below the 17,300 mark to touch the day's low of 17,295, the market moved in a range with a negative bias. The market witnessed panic selling towards the close and the Sensex ended the session with losses of 386 points at 17,349, whereas the Nifty shed 81 points and closed at 5,111.

All the sectoral indices had a weak outing. The BSE Bankex index and the BSE IT index dropped over 3% each, while the BSE Teck index, the BSE Oil & Gas index, the BSE Auto index and the BSE Power index were down over 1-2% each. However, the BSE CD index and the BSE HC index ended in the green.

The market breadth was negative. Of the 2,795 stocks traded on the BSE, 1,766 stocks declined, 961 stocks advanced and 68 stocks ended unchanged. Most of the index heavyweights ended in the red. Bajaj Auto was the major loser and tumbled by 4.78% at Rs2,296. HDFC Bank slipped 4.40% at Rs1,475, Satyam Computer shed 4.23% at Rs439, ICICI Bank declined by 3.89% at Rs1,099, Infosys fell by 3.08% at Rs1,580 and SBI lost 2.96% at Rs2,115. Cipla, however, bucked the downtrend and gained 5.44% at Rs199 and Hindalco was up over 1% at Rs192 while, Maruti Suzuki closed with marginal losses.

Over 2.49 crore Centurion Bank of Punjab shares changed hands on the BSE followed by RNRL (1.65 crore shares), Reliance Power (1.25 crore shares), Ispat Industries (1.12 crore shares) and IFCI (87.43 lakh shares).

Valuewise, Reliance Power clocked a turnover of Rs524 crore on the BSE followed by RNRL (Rs219 crore), Reliance Capital (Rs200 crore), On Mobile (Rs165 crore) and Reliance Industries (Rs153 crore).

Pre-budget rally may be on cards

The Union Budget 2008-09, to be presented by Finance Minister P Chidambaram on Friday, 29 February 2008, will be one event that market will look forward to in the coming week. The market may see a pre-budget rally. The market may also see some upside from short covering ahead of the expiry of February 2008 derivatives contracts on Thursday, 28 February 2008.

Apart from the budget, another trigger for the market is prospects of further softening of interest rates by the US Federal Reserve.

Market is expecting a populist budget from the United progressive Alliance (UPA) government this year, considering that the parliamentary elections are due in 2009. Thus, the Finance Minister is likely to provider higher allocations to several social initiatives like rural upliftment, employment, education, agricultural growth and public health.

If the budget is market friendly, the sentiments may turn positive in the immediate term at least. Expectations are that the corporate income tax rate may be cut or the 10% surcharge on corporate tax may be abolished. Another possibility is that of a cut in dividend distribution tax from 15% to 12.5%. Meanwhile, FM may raise the Securities Transaction Tax slightly.

Sectors like textiles, garments and IT-enabled services may see some upside if the government provides a relief package for these export-oriented industries, which have been hit by the surge in the rupee in the last one-year.

Automobile stocks may be in focus next week as the government is likely to reduce excise duty on cars and motorcycles. Lower excise duty will help companies reduce the price of the vehicles, which may boost sales.

Possibility of a recession in the US economy looming large and with no end to bad news regarding US sub-prime mortgage crisis, weak global market sentiments may weight on the domestic bourses.

The 30-share BSE Sensex slipped 766.18 points or 4.23% to 17,349.07, in the week ended 22 February 2008. The S&P CNX Nifty lost 192.15 points or 3.62% to 5110.75, in the week.

The BSE Small-Cap index lost 25.72 points or 0.27% to 9,595.41 in the week. The BSE Mid-Cap index rose 2.37 points or 0.03% to 7,594.45 in the week.

Inflation based on the wholesale price index (WPI) rose to 4.35% for the week ended 9 February 2008 from 4.07% in the previous week, data released by the government on Friday showed.

IT stocks survive market fall

Volatility in global markets and rising crude oil prices ensured that the sentiment hit by last month's steep market fall remained edgy. While most stocks tumbled, IT stocks bucked the trend as the rupee fell to a 5-month low of 40.11 against the dollar on Wednesday, 20 February 2008. Small-and mid-cap stocks escaped the battering, as there have been comparatively less speculative positions in these counters.

Crude oil, which rose to a record high of $100.10 a barrel on the New York Mercantile Exchange on Tuesday, 19 February 2008 gave rise to fears of higher commodity prices, thus increasing inflation concerns in the back drop of a slowdown in global growth.

The 30-share BSE Sensex slipped 766.18 points or 4.23% to 17,349.07, in the week ended 22 February 2008. The S&P CNX Nifty lost 192.15 points or 3.62% to 5110.75, in the week.

The BSE Small-Cap index lost 25.72 points or 0.27% to 9,595.41 in the week. The BSE Mid-Cap index rose 2.37 points or 0.03% to 7,594.45 in the week.

Inflation based on the wholesale price index (WPI) rose to 4.35% for the week ended 9 February 2008 from 4.07% in the previous week, data released by the government on Friday showed.

Breaking a three-day winning streak, the market edged lower on Monday, 18 February 2008 on profit taking. The 30-share BSE Sensex was down 67.20 points or 0.37% at 18,048.05. The broader based S&P CNX Nifty was down 26 points or 0.49% at 5,276.90.

After holding positive ground for most part of the day, the market succumbed to selling pressure in late trade erasing almost all gains on 19 February 2008. The 30-share BSE Sensex rose 27.61 points or 0.15% at 18,075.66. The broader based S&P CNX Nifty gained 3.90 points or 0.07% at 5,280.80.

The domestic bourses tumbled on negative cues from the global markets on 20 February 2008. The 30-share BSE Sensex was down 458.06 points or 2.53% at 17,617.60. The broader based S&P CNX Nifty was down 126.35 points or 2.39% at 5,154.45.

The market staged a strong rebound in late trade to wipe-off losses and post modest gains on 21 February 2008. The 30-share BSE Sensex was up 117.08 points or 0.66% at 17,734.68. The broader based S&P CNX Nifty gained 37.35 points or 0.72% at 5,191.80.

Key benchmark indices tumbled on 22 February 2008 as blue chips came under renewed selling pressure. Weakness in Asian stocks triggered the latest round of selling on the domestic bourses. The 30-share BSE Sensex fell 385.61 points or 2.17% at 17,349.07. The broader based S&P CNX Nifty was down 81.05 points or 1.56% at 5110.75.

IT stocks bucked the weak market trend as weakening rupee eased concerns of pressure on profit margins of IT firms arising from a solid surge in the rupee against the dollar in the past one year. The BSE IT index rose 0.99% to 3,918.28 in the week. Infosys Technologies (rose 0.98% to Rs 1580.10), TCS (rose 2.98% to Rs 897.45), Wipro (rose 0.51% to Rs 422.40) and Satyam Computer (rose 0.14% to Rs 438.80), edged higher.

More than 50% of the revenues of Indian software companies come from the US. IT stocks also gained momentum on reports that the government might consider fresh tax sops to the export sectors which has been hit by rupee’s surge.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) slipped 6.21% to Rs 2429.80 in the week. As per reports, the company is in advanced talks with the New York-based Vornado Realty Trust, one of the world’s top five real estate asset managers, to float a $1-billion plus fund.

India’s largest public sector engineering company in terms of profit Bharat Heavy Electricals dropped 8.95% to Rs 2058.85. As per reports the company has bagged an order worth Rs 650 crore from General Electricity Company, Libya for setting up a 300 megatwatt gas turbine based power plant.

India’s largest private sector engineering company in terms of revenue Larsen & Toubro slipped 2.91% to Rs 3434. The company said on Monday, 18 February 2008, it has bagged an order worth Rs 1250 crore from Oil & Natural Gas Corporation.

Anil Dhirubhai Ambani Group firm Reliance Power jumped 8.36% to Rs 416.85. The board of the company will meet on Sunday, 24 February 2008, to consider issue of bonus shares. The bonus shares will be issued to non-promoter shareholders to compensate the losses suffered by them when the company was listed last week. The stock has been consistently trading at a discount to IPO price of Rs 450, since its listing on 11 February 2008.

Centurion Bank of Punjab gained 12.69% to Rs 56.40 in the week. As per reports, HDFC Bank is in merger talks with Centurion Bank of Punjab (CBoP). The share-swap deal, worth over Rs 10,000 crore, may be worked around the current market price of CBoP, the reports suggested. HDFC Bank declined 5.70% to Rs 1474.95 in the week.

In a communiqué to the Bombay Stock Exchange, HDFC Bank said that “presently there is no such proposal for the consideration of the board of directors of the bank”, while CBoP said it would not like to comment the matter.

Bang Overseas debuted on 20 February 2008 at Rs 207 on BSE, which was the same as the IPO price of Rs 207. On that day, it settled at Rs 171.80 on BSE, a discount of 17% over the IPO price. The IPO of Bang Overseas had ended on 31 January 2008 with 1.24 times subscription. The IPO had received bids for 43.55 lakh shares as against 35 lakh shares on offer.

Shriram EPC debuted on 20 February 2008 at Rs 290 on BSE, a discount of 3.3% over the IPO price of Rs 300. On that day, it settled at Rs 293.60 on BSE, a discount of 2.1% over IPO price. Shriram EPC IPO had ended with 3.91 times subscription on 1 February 2008. The IPO had received bids for 1.95 crore shares as against 50 lakh shares on offer.

OnMobile Global debuted on 19 February 2008 at Rs 440, which was the same as the IPO price. On that day, it settled at Rs 521.90 on BSE, a premium of 18.6% over IPO price of Rs 440. The OnMobile Global IPO, which ended on 29 January 2008, was subscribed 10.95 times at the last day of its issue. The IPO received bids for 11.93 crore shares as against 1.09 crore shares on offer.

KNR Constructions debuted at Rs 180 on BSE, a premium of 5.8% over the IPO price of Rs 170. On that day, it settled at Rs 154.35 on BSE, a discount of 9.2% over IPO price. The KNR Construction IPO, which ended on 29 January 2008, was subscribed 1.25 times at the last day of its issue. The initial public offer (IPO) received bids for 98.72 lakh shares as against 78.74 lakh shares offered.

Direct tax collections surged over 40% in April 2007-15 February 2008. Net direct tax collections jumped 41.4% to Rs 228745 crore from Rs 161776 crore in the corresponding period of the previous fiscal. It achieved over 85% of budgeted direct tax target of Rs 267490 crore.

Corporate tax collection advanced 38.78% to Rs 138073 crore in April 2007-15 February 2008 compared with Rs 99488 crore in the corresponding period of the previous fiscal. Personal Income Tax (including FBT, STT and BCTT) catapulted 45.64% to Rs 90356 crore from Rs 62040 crore.

Securities transaction tax (STT) leaped 84.64% to Rs 7878 crore as against Rs 4267 crore. Fringe benefit tax (FBT) scaled up 29.75% to Rs 5216 crore from Rs 4020 crore. Banking cash transaction tax (BCTT) rose 16.81% to Rs 478 crore compared with Rs 409 crore.

On 19 February 2008, the Union government extended the exemption of service tax to three more services as a part of its ongoing exercise to provide relief to exporters hit by the appreciating rupee against the US dollar. The three services included in the relief package are couriers, goods transport agencies and the Railways.

On 18 February 2008, Atomic Energy Commission Chairman Anil Kakodkar in Bangalore, informed there are complex issues which has to be dealt with step-by-step and the Indo-US nuclear deal would take time as it is the first attempt. Kakodkar's remarks were a response to Washington insisting that the safeguards agreement needed to be clinched fast as time was running out.

Sensex off 18% from record high

The market tumbled today as blue chips came under renewed selling pressure. Weakness in Asian stocks triggered the latest round of selling on the domestic bourses. Banking, IT and auto were the worst hit in today’s fall. Domestic market underperformed most global markets, except China’s Sanghai Composite in terms of fall.

The 30-share BSE Sensex was down 385.61 points or 2.17% to 17,349.07. Sensex hit a low of 17,294.73 at the fag end of the trading session. At the day’s low, the Sensex lost 439.95 points. Sensex hit a high of 17,526.80 in early trade. At the day’s high, the Sensex lost 207.88 points. Sensex oscillated in a band of 232.07 points for the day

Sensex has tumbled 3857.70 points or 18.19% from a record high of 21,206.77 struck on 10 January 2008.

At current 17,349.07, Sensex trades at a PE multiple of 16.52 to 17.34, based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30 Sensex companies.

The broader based S&P CNX Nifty was down 78.25 points or 1.51% at 5,113.55. Nifty February 2008 futures were at 5077.50, a discount of 36.05 points as compared to spot closing

Despite the market fall the IPO of Rural Electrification Corporation (REC) witnessed strong response. It was subscribed 23.69 times at 16:00 IST. The price band for the IPO is Rs 90 to Rs 105.

US and Asian stock markets fell on heightened fears of a US recession. Stocks in the US fell after data showed that Mid-Atlantic factory production had slumped to its lowest level since February 2001, suggesting more rapid economic deterioration than expected. European markets, which opened after Indian markets, edged lower.

The market breadth was weak throughout the day. 27 stocks from 30-member Sensex pack were in the red.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 709.54 crore today. Domestic funds bought shares worth a net Rs 105.49 crore.

Inflation based on the wholesale price index (WPI) rose to 4.35% for the week ended 9 February 2008 from 4.07% in the previous week, data released by the government today showed.

The next major trigger for the market is the Union Budget 2008-09. With general elections due in 2009, Union Budget 2008-09 to be presented on 29 February 2008 will be the last full-fledged budget of the Congress-led United Progressive Alliance government and it is therefore likely to be a populist budget. Thus, the Finance Minister (FM) is likely to provide higher allocations to several social initiatives like rural upliftment, employment, education, agricultural growth and public health.

Though populist measures will dominate the budget, FM is also expected to take steps to stimulate investment and consumption demand at a time when the economy is witnessing moderation from a solid growth last year. A reduction in personal income tax, if any, will result in increase in disposable incomes which in turn may boost demand for consumer goods.

Expectations are that the corporate income tax rate may be cut or the 10% surcharge on corporate tax may be abolished. The surcharge is 10% on a tax rate of 30%, making the effective corporate tax rate 33%. Another possibility is that of a cut in dividend distribution tax from 15% to 12.5%. Meanwhile, FM may raise the Securities Transaction Tax slightly.

It is also expected that the FM would announce some relief packages for troubled export sensitive sectors like textiles, rubber, jewelry, leather and IT services. These sectors have been hit by rupee’s surge in the past one year.

The market breadth was weak: On BSE 1,759 shares declined as compared to 935 that advanced. 93 shares remained unchanged.

The BSE Mid-Cap index was down 0.97% to 7,594.45 and the BSE Small-Cap index slipped 1.01% to 9,595.41. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 4451 crore as compared to Rs 5,410.60 crore yesterday, 21 February 2008

Turnover in NSE’s futures & options slipped to Rs 36386.23 crore as compared to Rs 43409.74 crore yesterday, 21 February 2008

Bajaj Auto, the country’s second largest bike manufacturer in terms of sales, slipped 4.78% to Rs 2295.60 on profit booking. 44,773 shares were traded on the counter on BSE. It was the top loser from Sensex pack.

The stock had gained 17.94% in 6 trading sessions from Rs 2075.50 on 14 February 2008 to Rs 2410.85 on 21 February 2008. The company on 19 February 2008 said the Bombay High Court has sanctioned a scheme of arrangement between the company, Bajaj Holdings & Investment and Bajaj Finserv and their respective shareholders and creditors.

Mahindra & Mahindra (down 1.96% to Rs 628.60), Hero Honda Motors (down 1.47% to Rs 719.25) and Tata Motors (down 1.97% to Rs 694.70), declined.

However India’s top small car maker in terms of sales, Maruti Suzuki India rose 0.43% to Rs 766.65, after sliding to day’s low of Rs 751.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) lost 2.90% to Rs 2429. The stock had hit a high of Rs 2481.60 in early trade. A total of 5.84 lakh shares were traded on the counter on BSE.

Bank shares declined on fresh selling after latest data showed rise in inflation. ICICI Bank (down 3.92% to Rs 1099), State Bank of India (down 3.04% to Rs 2113), and HDFC Bank (down 4.47% to Rs 1473.90), slipped.

IT pivotals which had surged in the past few sessions, succumbed to selling pressure today. Satyam Computers (down 4.35% to Rs 438.25), Infosys Technologies (down 3.08% to Rs 1580.10), Wipro (down 2.14% to Rs 422.40), and TCS (down 2.44% to Rs 896), declined.

IT shares had surged in the last few days following weakening of the rupee against the dollar. Satyam Computers (up 23.37%), Infosys Technologies (up 17.27%), and TCS (up 9.87%), gained in past one month till 21 February 2008. However Wipro was down 1.85% during this period. IT companies derive a lion's share of revenue from exports and they had been hit hard by rupee’s surge in the last one year.

Reliance Communications, the country’s second largest cellular services provider in terms of market capitalisation fell 1.30% to Rs 581.30. The company said on Thursday, 21 February 2008, it had acquired a telecom firm in Uganda and will spend $500 million over the next five years in the African country.

India’s second largest pharma company in terms of sales, Cipla surged 5.44% to Rs 198.60 on 4.24 lakh shares. It was the top gainer from Sensex pack.

India’s largest private sector aluminium manufacturer in terms of sales Hindalco Industries gained 1.35% to Rs 192

Reliance Power recovered sharply in late trade to settle 0.20% lower to Rs 421.10 as speculators build up positions ahead of company’s board meet on Sunday, 24 February 2008, to consider issue of bonus shares. The bonus shares will be issued to non-promoter shareholders to compensate the losses suffered by them when the company was listed last week. The stock has been consistently trading at a discount to IPO price of Rs 450, since its listing on 11 February 2008. The stock had hit a high of Rs 433 in early trade. The counter saw high volumes of 1.07 crore shares.

Reliance Power topped the turnover charts clocking turnover of Rs 524.25 crore followed by Reliance Natural Resources (Rs 219.60 crore), Reliance Capital (Rs 200 crore), OnMobile Global (Rs 165.60 crore) and Reliance Industries (Rs 153.80 crore) in that order.

Among the stocks with high volumes, Centurion Bank of Punjab was down marginally by 0.18% to Rs 56.95 on 2.38 crore shares. The stock slipped sharply after striking high of Rs 61.90 in opening trade.

Reliance Natural Resources was down 2.65% to Rs 132.25. A total of 1.55 crore share changed hands on the counter.

Ispat Industries slipped 1.92% to Rs 43.50 on 1.03 crore shares. The stock moved in range of Rs 42.80 and Rs 44.50 during the day

Entertainment Network India rose 6.24% to Rs 479.80 and Mid-Day Multimedia gained 4.74% at Rs 39.90 after the telecom regulator recommended allowing ownership of multiple FM channels by a single operator and raising the foreign direct investment limit.

Info Edge (India) surged 10.51% to Rs 962 after the company got approval from the Reserve Bank of India for hike in FII investment ceiling to 40% of its equity capital.

Jindal Saw surged 6.07% to Rs 889.05 ahead of its results for the year ended 31 December 2007 on Tuesday, 26 February 2008.

Hexaware Technologies rose 3.77% to Rs 82.55. The company reported a net loss of Rs 72.92 crore in Q4 December 2007 as compared to a net profit of Rs 16.94 crore in Q3 September 2007. Sales rose 15.14% to Rs 127.39 crore in Q4 December 2007 over Q3 September 2007. The company announced the results on 21 February 2008.

Indiabulls Financial Services declined 3.11% to Rs 616.60 even as the company said on Friday, 22 February 2008 it has received approval from the Securities and Exchange Board of India to set up an asset management company. The company made this announcement before trading hours today, 22 February 2008.

GlaxoSmithKline Pharmaceuticals gained 2.73% to Rs 606.40 after it reported 19.34% rise in net profit to Rs 80.9 crore on 7.45% rise in total income to Rs 367.94 crore in Q4 December 2007 over Q4 December 2006. The results were announced during trading hours today, 22 February 2008.

Deccan Aviation slipped 1.07% to Rs 175.50 after company’s board approved raising up to Rs 1600 crore through issue of equity or convertible bonds in the domestic or international market. The company made this announcement after trading hours on Thursday, 21 February 2008.

i-flex Solutions rose 0.44% to Rs 1054.95 after the company said on Friday, 22 February 2008, Vietnam's FPT bank has selected its universal banking solution Flexcube for retail and corporate banking operations in Vietnam.

Alstom Projects India gained 0.48% to Rs 727 after the company said on Thursday, 21 February 2008, it had bagged two export orders worth Rs 592 crore.

Steel Authority of India rose 0.44% to Rs 237.60 after the company said on Thursday, 21 February 2008, it had formed a new joint venture with Jaiprakash Associates to set up a cement plant in Jharkhand.. Shares of Jaiprakash Associates were down 4.80% to Rs 247.

Meanwhile, as per reports, Railway Minister Lalu Prasad in his Railway budget to be presented next week, is likely to reduce both passenger fares and freight rates, riding a strong revenue growth and reduced operational costs. Rail fares are likely to be cut by 3% to 5% while freight rates for petroleum, steel and iron ore may come down by 4% to 5% due to reclassification of goods.

European markets, which opened after Indian markets, were fell today, 22 February 2008. Key benchmark indices in United Kingdom (down 0.33% to 5,912.90), Germany (down 1.16% to 6,825.01), and France (down 0.49% to 4,835.14), slipped

Most Asian markets ended weak today, 22 February 2008. Hong Kong's Hang Seng (down 1.35% at 23,305.04), Japan's Nikkei (down 1.37% at 13,500.46), Singapore's Straits Times index (down 0.20% at 3,048.64), South Korea's Seoul Composite index (down 1.05% at 1,686.46) and China’s Shanghai Composite index (down 3.47% to 4,370.36) edged lower.

However Taiwan's Taiwan Weighted index rose 0.28% at 8,108.81, after initial fall

On Thursday, 21 February 2008, US markets declined after opening higher after poor economic data re-ignited the fears of economic slowdown. The Dow Jones industrial average slipped 142.96 points, or 1.15%, to 12,284.30. The Standard & Poor's 500 index dropped 17.50 points, or 1.29%, to 1,342.53, while the Nasdaq composite index plunged 27.32 points, or 1.17%, to 2,299.78.

Meanwhile, the government on Thursday, 21 February 2008, approved a fresh Rs 500 crore assistance to help exporters make up for the loss in orders due to strengthening of the rupee. With the latest announcement, government's bailout package has crossed the Rs 5,700 crore mark.

Crude oil slipped today, 22 Friday 2008 as rising US crude and gasoline stockpiles added to evidence of slowing demand in the world's largest consumer. The US crude futures for April delivery eased 39 cents to $97.84 a barrel.

Pre Budget Expectations - 2008

Pre Budget Expectations - 2008

RPL - Refinery - Pictures

RPL - Refinery - Pictures

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Daily Call - Feb 22 2008

Daily Call - Feb 22 2008

Market may slide on weak global cues

The market may decline on weak global cues. The near term trend may be cautious, with all eyes being on the Union Budget 2008, to be presented by the Finance Minster P Chidambaram on Friday, 29 February 2008.

As per reports, railway minister Lalu Prasad in his railway budget to be presented by fag end of February 2008, is likely to reduce both passenger fares and freight rates, riding a strong revenue growth and reduced operational costs. Rail fares are likely to be cut by 3% to 5% while freight rates for petroleum, steel and iron ore may come down by 4% to 5% due to reclassification of goods.

Meanwhile, annual inflation data, based on the wholesale price index, for the week ended 9 February 2008 is due today, 22 February 2008. India's wholesale price index rose 4.07% in the 12 months to 2 February 2008, marginally lower than the previous week ended 22 January 2008 rise of 4.11%.

Asian markets were trading weak today, 22 February 2008. Hong Kong's Hang Seng (down 1.93% at 23,166.73), Japan's Nikkei (down 1.93% at 13,423.94), Taiwan's Taiwan Weighted index (down 0.40% at 8,053.27), Singapore's Straits Times index (down 0.92% at 3,026.71), South Korea's Seoul Composite index (down 1.58% at 1,677.46) and China’s Shanghai Composite index (down 3.22% to 4,381.41) edged lower.

On Thursday, 21 February 2008, US markets declined after opening higher after poor economic data re-ignited the fears of economic slowdown in the US. The Dow Jones industrial average slipped 142.96 points, or 1.15%, to 12,284.30. The Standard & Poor's 500 index dropped 17.50 points, or 1.29%, to 1,342.53, while the Nasdaq composite index plunged 27.32 points, or 1.17%, to 2,299.78.

Back home, the 30-share BSE Sensex rose 117.08 points or 0.66% at 17,734.68 on Thursday, 21 February 2008. The broader based S&P CNX Nifty gained 37.35 points or 0.72% at 5,191.80 on that day.

At current 17,734.68, Sensex trades at a PE multiple of 16.90 to 17.73, based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30 Sensex companies.

As per provisional data, foreign institutional investors (FIIs) purchased shares worth Rs 209.43 crore Thursday, 21 February 2008. Domestic institutional investors (DIIs) were net sellers of shares worth Rs 140.68 crore on that day.

FIIs were net buyers to the tune of Rs 375.78 crore in the futures & options segment on Thursday, 21 February 2008. FIIs were net buyers of index futures to the tune of Rs 72.22 crore and bought index options worth Rs 163.18 crore. They were net buyers of stock futures to the tune of Rs 134.46 crore and sold stock options worth Rs 5.92 crore.

Meanwhile, the Centre on Thursday, 21 February 2008, approved a fresh Rs 500 crore assistance to help exporters make up for the loss in orders due to strengthening of the rupee. With the latest announcement, government's bailout package has crossed the Rs 5,700 crore mark.

Crude oil slipped today, 22 Friday 2008 as rising U.S. crude and gasoline stockpiles added to evidence of slowing demand in the world's largest consumer. The US crude futures for April delivery eased 39 cents to $97.84 a barrel.

Grey Market - Rural Electrification, V-Guard

Rural Electrification 90 to 105 18 to 20


GSS America InfoTech 400 to 440 Discount


IRB Infra 185 12 to 15


Manjushree Extrusion 45 5 to 7


Tulsi Extrusions 85 10 to 12


V. Guard Ind. 80 to 85 12 to 15

Income Tax Slabs as of now..

Income tax slabs for the year is as follows :

I. The basic exemption limit for persons is proposed to be increased from Rs. 1,00,000/- to Rs. 1,10,000/-. In such cases, the rates of income-tax on total income shall be as follows-
Upto Rs. 1,10,000/- Nil.
Rs. 1,10,001/- to Rs. 1,50,000/- 10 %.
Rs. 1,50,001/- to Rs. 2,50,000/- 20 %.
Above Rs. 2,50,000/- 30 %.

II. In the case of every individual, being a woman resident in India, and below the age of sixty-five years at any time during the previous year, the exemption limit is proposed to be raised from Rs. 1,35,000/- to Rs. 1,45,000/-. The rates of income-tax on total income in such cases shall be as follows-
Upto Rs. 1,45,000/- Nil.
Rs. 1,45,001/- to Rs. 1,50,000/- 10 %
Rs. 1,50,001/- to Rs. 2,50,000/- 20 %
Above Rs. 2,50,000/- 30 %

III. In the case of every individual, being a resident in India, who is of the age of sixty-five years or more at any time during the previous year, the exemption limit is proposed to be raised from Rs. 1,85,000/- to Rs. 1,95,000/-. The rates of income-tax on total income in such cases shall be as follows-
Upto Rs. 1,95,000/- Nil.
Rs. 1,95,001/- to Rs. 2,50,000/- 20%
Above Rs. 2,50,000/- 30%

Trading Calls - Feb 22 2008

Nifty (5192) Supp 5103 Res 5250

Buy Tata Steel (806) SL 799 Target 820, 825

Buy DLF (835) SL 829
Target 848, 852

Sell CESC (505) SL 510
Target 495, 492

Sell BILT (143) SL 147
Target 133, 129

Sell MTNL (122) SL 125
Target 113, 110

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What you doing this weekend!

The only reason why we ask other people how their weekend was is so we can tell them about our own weekend.

We would have loved to say, Thank God, its Friday and relax for the weekend. But, speculation on Reliance Power’s bonus ratio, which will be decided on Sunday will hold center-stage. Buzz is that some short covering could take place and the Reliance Power stock may end above its issue price today.

But global markets are not very supportive for the time being. We expect a weak opening, unless Asian markets stage a rebound before the opening bell. IT stocks may remain in the limelight in the near term in case the rupee remains weak. Watch out for Centurion Bank of Punjab amid reports that it will be acquired by HDFC Bank, though both the companies have yet not confirmed any merger talks.

Shipping and auto parts companies may also be in action amid reports of some favourable proposals in store in the upcoming budget for the two sectors. Jai Corp. and Infotech Enterprises may also attract some attention on positive news flow. Bank of Rajasthan could be in action on expectations of a placement at a significant premium.

We mentioned yesterday not to get swayed by a day's rally as it could prove to be short-lived. Global indices are dancing to the beat of the daily dose of news coming from Wall Street. So, if one day some encouraging data or earnings report pushes the US shares up, the very next day a fresh set of weak economic reports will undo all the good work of the previous day. The markets remain volatile and it becomes tough to take a confident directional call.

The best way to beat the current uncertainty is to adopt a stock specific approach. Intra-day trading has turned pretty risky with the main indices fluctuating wildly. We expect the trend to continue for a while, even as head for a big budget week. We will also have the F&O expiry next Thursday. Keeping these two key events in mind, one should be a little bit more careful. Having said that, there are plenty of long-term opportunities on offer for the more daring of the bulls.

FIIs were net buyers of Rs2.09bn (provisional) in the cash segment yesterday while local institutions pulled out Rs1.41bn. In the F&O segment, FIIs were net buyers of Rs3.76bn. On Wednesday, they were net buyers of Rs567mn. Mutual Funds were net sellers of Rs1.91bn on the same day.

Asian stocks fell, with a region's benchmark set for its seventh weekly drop this year, on renewed concern about the health of the US economy. Toyota had its longest losing streak in almost five weeks, and Samsung declined the most in more than a week.

The MSCI Asia Pacific Index fell 1.2% to 142.82 at 11:24 a.m. in Tokyo. All 10 industry groups on the measure declined. The index is down 9.6% this year.

Last time we checked, the Nikkei in Tokyo was down 264 points or 1.9% at 13,423 while the Hang Seng in Hong Kong slumped 435 points or 1.8% to 23,187. The Kospi in Seoul was down 29 points at 1674 and the Straits Times in Singapore fell by 28 points at 3026.

The Shanghai Composite in China was down 115 points at 4411 and the Taiex in Taiwan was down 40 points at 8045.

US stocks slumped on Thursday on the back of a weak manufacturing report that stoked fresh worries that the world's biggest economy is on the brink of a recession, if it's not already in one.

All the three major indexes notched up losses of more than 1%, after a report showed that manufacturing activity in the Philadelphia area shrank the most in seven years. The grim data countered early momentum sparked by gains in technology shares.

The Philadelphia Fed index, a regional reading on manufacturing, tumbled to -24.0 from -20.9 in January. Wall Street economists had been looking for the gauge to improve a bit in the month. Negative readings suggest contraction in the sector.

The latest report follows a similarly bleak reading on manufacturing in the New York area that was released earlier this week, adding to mounting concerns that the US economy is fast slipping towards a recession.

Exxon Mobil, Chevron and GE declined, helping erase a 76-point gain in the Dow Jones Industrial Average. Target led losses in retailers after Citigroup told clients to sell the shares. SunTrust Banks fell the most in two months on a reduced credit outlook by S&P's and Oppenheimer's prediction of an imminent takeover.

The S&P 500 Index dropped 17.5 points, or 1.3%, to 1,342.53, its steepest loss since Feb. 14. The Dow slid 143 points, or 1.2%, to 12,284.3. The Nasdaq Composite slipped 27.32 points, or 1.2%, to 2,299.78.

Market breadth was negative. About four stocks fell for every one that rose on the New York Stock Exchange.

Weekly jobless claims declined last week, but the four-week moving average - seen as a more accurate indicator of the labor market - rose to levels not seen since October 2005 in the aftermath of Hurricane Katrina.

Analysts noted that claims offices in California, the largest state in the US, were closed for one day last week for a state holiday, giving laid off workers one less day to file claims.

Crude oil futures dropped for the first time in six days, falling 1.5% to close near the US$98-a-barrel mark, as government data showed that US crude inventories have risen more than expected.

Light, sweet crude for April delivery, the new front-month contract, declined $1.47 to close at $98.23 a barrel in New York. Earlier, it fell to an intraday low of $96.87. Natural gas moved lower despite that its inventories fell.

The Energy Information Administration reported that US crude inventories rose 4.2mn barrels in the week ended Feb. 15, outstripping the increase of 3.2mn barrels that analysts had expected.

Gold futures closed with gains after soaring to a new record high of $958.40 an ounce, boosted by weakness in the US dollar and the metal's appeal as a hedge against inflation. Gold for April delivery rose $11.40 to end at $949.20 an ounce in New York. Earlier, gold had surged to a new record high of $958.40.

April platinum futures also hit a record, climbing as high as $2,194.80 an ounce. Platinum finished up $49.40 at $2,188.20 an ounce.

Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.77% from 3.9% late on Wednesday. In currency trading, the dollar fell versus the euro and the yen.

European shares rebounded yesterday. The pan-European Dow Jones Stoxx 600 index rose 0.7% to 322.43. The French CAC-40 climbed 1% to 4,858.85, while the UK's FTSE 100 closed up 0.7% at 5,932.20 and the German DAX 30 added just 0.1% to 6,904.85.

In emerging markets, the Bovespa in Brazil was flat at 63,792 while the IPC index in Mexico gained 0.5% at 29,361. The RTS index in Russia was up 2.2% at 2065 and the ISE National-30 index in Turkey advanced 1.35% to 58,170.

Global cues to dictate trend

In a volatile trading session, markets managed to end with smart gains. It was the Metal and the IT stocks that were in limelight on Thursday. The IT stocks were in demand as a strong demand for dollars from importers and a lack of fresh inflow into the market led the spot rupee to breach the crucial barrier of 40.00 and hit a five-month low of 40.21/22 to a Dollar. However the banking stocks were on the receiving end.

After hitting a low of 17,482 benchmark index managed to bounce back nearly 250 points from thereon, led by gains in the frontline stocks like Infosys, Satyam, Tata Steel, RIL and Hindalco. Finally, the 30-share Sensex closed at 17,734 adding 117 points. The NSE Nifty closed at 5,191 gaining 37 points.

Overall about 1,461 stocks advanced, 1,248 stocks declined while 74 stocks remained unchanged. Among the BSE 30 index 21 stocks advanced while only 9 stocks declined.

Among the BSE Sectoral indices, BSE IT index (up 4.7%), BSE Metal index (up 3.8%), BSE Pharma index (up 1.4%), BSE FMCG index (up 0.6%). However, BSE Bankex index (down 1.2%)

Hexaware Technologies was up by 10% to Rs79. The scrip came off its days high after the company announced financial results for fourth quarter and Full-Year 2007. Financial year ended December 31, 2007, Revenue from operations stood at Rs10,398.03mn ($ 252.94 mn). Y-O-Y increase of 35.1% in $ terms. Y-O-Y increase of 22.6% in Rs terms. Net Profit after Tax was Rs1,100.74mn before minority interest and exceptional items. Net Profit after Tax was Rs72.29mn after minority interest and exceptional items. The scrip touched an intra-day high of Rs82 and a low of Rs73 and recorded volumes of over 68,00,000 shares on NSE.

SBI dropped 1.4% to Rs2178. According to reports, the Government plans to float special bonds which will be used to subscribe to the Rs167bn rights issue of. The scrip touched an intra-day high of Rs2235 and a low of Rs2125 and recorded volumes of over 7,00,000 shares on NSE.

Simplex Infrastructure was down 2.3% to Rs635. The company said that it has secured order worth Rs3.02bn in Oman. The scrip touched an intra-day high of Rs659 and a low of Rs615 and recorded volumes of over 8,000 shares on NSE.

Hindustan Zinc gained over 2% to Rs612 after the company said that it raised lead prices for a third time in eight days. Lead prices were raised by Rs3,300 to Rs1,38,500 per metric ton. However, the company left Zinc prices unchanged at Rs1,08,700 per ton. The scrip touched an intra-day high of Rs624 and a low of Rs601 and recorded volumes of over 42,000 shares on NSE.

HCL Technologies surged by over 3% to Rs276 after reports stated that the IT solutions provider has acquired CapitalStream, a US-based lending automation solutions provider, for Rs1.6bn in an all-cash deal. The scrip touched an intra-day high of Rs289 and a low of Rs273 and recorded volumes of over 9,00,000 shares on NSE.

i-flex Solutions edged lower by 0.3% to Rs1056 after the company announced that Volkswagen Bank selected Daybreak Lending Suite for its consumer lending business in the Netherlands. With aggressive targets for business growth, the bank decided to replace its legacy system with i-flex's proven and state-of-the-art lending solution. The scrip touched an intra-day high of Rs1106 and a low of Rs1040 and recorded volumes of over 62,000 shares on NSE.

Goldstone Technologies gained by 1% to Rs222 on announcement that it has launched commercial operations in Thailand. In Thailand, Goldstone Technologies has launched its IPTV services, in partnership with Synap Media & Infotech Co. Ltd, a business group which is aspiring to have a strong presence in the hospitality industry in the country. The scrip touched an intra-day high of Rs226 and a low of Rs216 and recorded volumes of over 46,000 shares on NSE.

News Snippets:

Adlabs, DLF, Parsvnath among the 25 bidders for redevelopment of Chanakya theatre. (Mint)

Deccan Aviation plans on raising Rs16bn capital. (Mint)

RCom acquires African firm for US$500mn to offer telecom access services in Uganda. (Mint)

Wockhardt to look at alternative avenues to fund its hospital network. (BL)

Hexaware Technologies reports Rs810mn loss on forex deals. (BL)
Alstom Projects wins export orders worth Rs5,920mn. (BL)

Simplex Infrastructures is awarded orders of Rs3,020mn for construction of six flyovers. (BL)

Madhucon Projects to transfer its BOT projects to a holding company. (BL)

L&T gets Cairn Engineering Services contract for pipeline project. (BL)

Hydro S&S Industries to supply plastic compounds and Caparo to make the body of Tata Motors’ Nano. (BL)

Glenmark Pharma’s arthritis drug enters clinical trial phase. (BL)
Kalyani Steel plans to set up Rs65bn steel and power plant in West Bengal. (BS)

Essar group to add an average of three stores a day to reach 1450 numbers by year end. (BL)

Patni Computers targets Japan market to double revenues in three years. (BL)

Infosys unveils first Latin American subsidiary to enhance service to clients in US. (BL)
Blackstone raises stake in

Gokaldas Exports to 68%. (BS)
Bharat Electronics plans JV with Israeli firm. (BS)

HDIL sells a commercial building project in Andheri, Mumbai for Rs9bn. (BS)

Bajaj Auto to list demerged entities in April 2008. (BS)

PNB and Vijaya Bank begin process of exiting JVs with US based Principal group. (BS)

Tatas may hive-off loss making Jaguar into separate entity. (ET)

HDFC Bank likely to takeover Centurion bank of Punjab in an all stock deal. (ET)

HDFC Bank plans to raise US$1bn from overseas markets for its global expansion plans. (ET)

Dutch Court restrains Ranbaxy Labs from launching generic version of Lipitor in the country before November 2011. (ET)

Goldstone Tech launches IPTV service in Thailand in partnership with Synap Media & Infotech. (ET)

Tata Tele to foray into enterprise solution space in US and UK. (ET)

Aditya Birla group in race to acquire personal loans and mortgage business of GE Money India. (ET)

Cabinet approves the proposal to issue special marketable securities to subscribe to the right issue of SBI. (ET)

Aditya Birla Nuvo to raise funds through issue of warrants to promoter group companies on preferential basis. (FE)

Dun & Bradstreet enters into agreement with Bank of Maharashtra. (FE)

REC IPO gets oversubscribed 4.13 times. (FE)

Teledata Informatics to raise Rs5bn through qualified institutional placement basis. (FE)

Economic Front Page:

Rising rubber prices hit tyre manufacturers. (BS)

The cabinet clears US$125mn subsidy for exporters. (Mint)

Railway Minister likely to reduce both passenger fares and freight rates. (ET)

The DoT rejects TRAI’s proposal that service providers, who do not get support from USOF, be provided subsidies for their rural rollouts. (ET)

Steel Minister to meet major steel producers next week to sort out issues pertaining to their mega investment plans. (ET)

The Government to modify the process of regulating prices of medicines outside the scope of their price control. (ET)

The Government likely to remove cap on overseas investments made by domestic companies. (FE)

The Government approves Rs5bn additional package in form of interest subventions for exporters. (FE)

Railway Minister to announce the use of high axle load wagons of 25 tons for transporting more varieties of commodities. (FE)

MMRDA to launch bidding for the second and third corridor of Mumbai Metro Railway Project in next3-4 months. (FE)

Pre Session Commentary - Feb 22 2008

The Indian Market is likely to have a negative opening due to unfavoring cues from the global markets. On Thursday, the market made a smart recovery towards the final trading hours of the session to close with handsome gains. The market opened on a strong note by taking the favoring cues from the global markets and rallied across the sectoral indices. Due to high volatility, the market dipped into the negative territory by paring all its initial gains but managed to made a good recovery at the end on the back of heavy buying across the counters. The Small Cap and Middle Cap also registered good gains as the investors also showed heir confidence in buying from these baskets. From the sectoral front, the IT stocks and Metal stocks remained the centre of attraction as most buying was seen from these counters. The BSE Sensex closed higher by 117.08 points at 17,734.68 and NSE Nifty closed up by 37.35 points at 5,191.80. We expect that the market may remain cautious during the trading session. The inflation figures which is due today, will give further directions to the market

On Thursday, the US market was closed in red. The Dow Jones Industrial Average (DJIA) closed lower by 142.96 points at 12,284.30. S&P 500 index fell by 17.50 points to close at 1,342.53 and NASDAQ decreased by 27.32 points to close at 2,299.78.

Indian ADRs closed mixed. In technology sector, Wipro and Infosys grew by 1.38% and 1.12% respectively while Satyam fell by 1.14%. In banking sector, HDFC bank and ICICI bank dropped by (3.17%) and (2.14%) respectively.

Today, the major stock markets in Asia are trading weak. Hang Seng is trading lower by 456.27 points at 23,166.73 along with Japan''s Nikkei trading down by 264.34 points at 13,423.94 and Taiwan weighted trading at 8,053.27 down by 32.66 points. Singapore Strait Times is trading down by 28.10 points at 3,026.71.

Today, Nifty has support at 5,067 and resistance at 5,245 and BSE Sensex has support at 17,163 and resistance at 17,926.

Downbeat Economic data thrash US Market

A disappointing manufacturing reports hints at a more slowing economy

In spite of opening modestly higher in the morning, US Market ended the day with considerable losses today, Thursday, 21 February, 2008. The day started on an optimistic note with the help of technology stocks but market swiftly made a reverse course after poor economic data re-ignited the fears of economic slowdown in the US. Each of the major economic sectors ended trading in the red with the energy sector posting the largest decline.

The Dow Jones industrial Average ended the day with a loss of 143 points at 12,284. The Nasdaq Composite Index, finished lower by 27 points at 2,299. S&P 500 finished lower by 17.5 points at 1,342.

Twenty-eight of thirty Dow stocks ended in the red today. GM was the main Dow laggard today. Microsoft and Intel were the only two Dow winners today.

The day started off on a positive note after Cisco was upgraded by Citigroup to buy from hold. This gave the overall technology sector a good boost. Dow was up by more than 70 points at one time. Research In Motion was also a standout, after reaffirming its fourth quarter earnings and revenue guidance, and raising its net subscription guidance.

But the downward spiral came when the Federal Reserve Bank of Philadelphia reported manufacturing in the region weakened further in February. The February Philadelphia Fed, a regional manufacturing survey, came in at -24. Economists expected a reading of -10. Since the reading is below 0, it reflects a retraction in manufacturing in the region. After this report, indices lingered in the red for the rest of the day.

Separately, January leading indicators fell 0.1%, in-line with expectations.

Among other economic reports, new unemployment claims for the week ended 16 February fell to 349,000 from the prior reading of 358,000. This was nearly in-line with expectations, so the market did not have much of a response.

Crude prices fell from their record highs today. Prices fell after an Energy Department report showed that U.S. inventories rose almost twice as much as forecast, as refineries slowed processing to perform seasonal maintenance. Crude-oil futures for light sweet crude for April delivery today closed at $98.23/barrel (lower by $1.47/barrel or 1.45%) on the New York Mercantile Exchange. Earlier in the session, the April contract it a low of $96.27 a barrel.

EIA reported today that crude inventories rose 4.2 million barrels in the week ended 15 February outstripping the increase of 3.2 million barrels that market expected. On the demand side, EIA reported motor gasoline demand has averaged 9.0 million barrels per day, or 0.5% above the same period last year. Distillate fuel demand has averaged 4.3 million barrels per day over the last four weeks, down 1.9% compared to the same period last year.

Volume on the New York Stock Exchange neared 1.4 billion with more than three stocks declining on the exchange for every one that rose. On the Nasdaq, volume topped 1 billion, and decliners ran ahead of advancing stocks more than 2 to 1.

Tomorrow there are no major economic reports on the dock. A couple of earning reports are expected.

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Morning Call - Feb 22 2008

Market Grape Wine :

In House :

Nifty at a supp of 5115 and 5052 levels with resistance at 5230 and 5295 levels .

Buy : Sail in F&O above 237 target 250 s/l of 232

Buy : MoserBaer in F&O above 177 atrget 189 s/l of 173

Sell : in Cash IciciBank below 1144 target 1120 s/l of 1153

Buy : in Cash ACC above 786 target 810 s/l of 778

Out House :

Markets at a support of 17575 & 17471 levels with resistance at 17817 & 17973 levels .

Buy : RIL at dips

Buy : Sail & Tisco at dips

Buy : SBIN & HDFCBank at dips

Buy : Powergrid & Neyvelli

Buy : EssarOIL

Buy : Adhunik & SimplexInfra

Buy : TulipIT & CBOP

Buy : INFY & Satyam

Dark Horse : SKumar , RELCAP , INFY , IDBI , NTPC , RIL , Sbin , & HLL

TGIF : Thank God Its Friday : Markets range bound buy low sell high call for the day .

Daily Technicals, Futures, Outlook - Feb 22 2008

Daily Technicals, Futures, Outlook - Feb 22 2008

NSE Bulk Deal Watch - Feb 21 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
21-FEB-2008,ALLCARGO,Allcargo Global Logistics,BLACKSTONE GPV CAPITAL PARTNERS MAURITIUS V A LTD,BUY,276300,819.48,-
21-FEB-2008,ANGAUTO,ANG Auto Limited,PIVOTAL SECURITES PVT. LTD.,BUY,125000,120.00,-
21-FEB-2008,BANG,Bang Overseas Limited,AVINASH PURI,BUY,68004,167.61,-
21-FEB-2008,BANG,Bang Overseas Limited,CPR CAPITAL SERVICES LTD.,BUY,81575,168.61,-
21-FEB-2008,BANG,Bang Overseas Limited,SUNIL PANDURANG MANTRI,BUY,68321,168.60,-
21-FEB-2008,BANKRAJAS,Bank Of Rajasthan Ltd,MACQUARIE BANK LIMITED,BUY,1000000,165.00,-
21-FEB-2008,KALINDEE,Kalindee Rail Nirman (Eng,QUANTUM (M) LIMITED,BUY,625000,433.00,-
21-FEB-2008,KALINDEE,Kalindee Rail Nirman (Eng,T ROWE PRICE INT INC A/C T ROWE PRICE NEW ASIA FUND (9089),BUY,923900,433.00,-
21-FEB-2008,STAR,Strides Arcolab Limited,MORGAN STANLEY DEAN WITTER MAURITIUS CO. LTD,BUY,176000,160.75,-
21-FEB-2008,XLTL,XL Telecom Limited,FRANKLIN TEMPLETON MUTUAL FUND,BUY,311967,318.00,-
21-FEB-2008,XLTL,XL Telecom Limited,KMRINDUSTRIESLIMITED,BUY,118736,327.23,-
21-FEB-2008,ANGAUTO,ANG Auto Limited,EVEREST FINANCE & INVESTMENT CO.,SELL,125000,120.00,-
21-FEB-2008,BANG,Bang Overseas Limited,AVINASH PURI,SELL,68004,168.59,-
21-FEB-2008,BANG,Bang Overseas Limited,CPR CAPITAL SERVICES LTD.,SELL,81575,168.99,-
21-FEB-2008,BANG,Bang Overseas Limited,SUNIL PANDURANG MANTRI,SELL,68321,169.30,-
21-FEB-2008,KALINDEE,Kalindee Rail Nirman (Eng,AMIF I LTD,SELL,1570829,433.00,-
21-FEB-2008,STAR,Strides Arcolab Limited,BSMA LIMITED,SELL,176000,160.75,-
21-FEB-2008,USHAMART,Usha Martin Limited,STICHTING PENSIONOENFONDS ABP,SELL,1403000,91.15,-
21-FEB-2008,XLTL,XL Telecom Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LIMITED,SELL,200000,318.01,-
21-FEB-2008,XLTL,XL Telecom Limited,KMRINDUSTRIESLIMITED,SELL,108000,318.00,-

BSE Bulk Deals to Watch - Feb 21 2008

This data was last updated on Thursday, February 21, 2008&nbsp6:18:48 PM
Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
21/2/2008 531190 A V COTTEX I EVERSIGHT TRADECOMM PVT LTD B 30000 16.50
21/2/2008 531190 A V COTTEX I S K GUPTA AND SONS S 30000 16.50
21/2/2008 511706 ACTION FIN PKJ SHARE BROKER LTD B 60000 43.00
21/2/2008 532749 ALLCARGO GLO BLACKSTONE GPV CAPITAL PARTNERS MAURITIUS V A LTD B 125129 819.71
21/2/2008 511589 ALMONDZ CMS RAKAM MONEY MATTERS PVT LTD S 175000 32.05
21/2/2008 504629 ANIL SP STEL SHEETAL RAJESH JAIN B 20000 22.39
21/2/2008 531223 ANJANI SYNTH NATRAJ FINANCIAL AND SERVICES LTD B 93580 50.02
21/2/2008 531223 ANJANI SYNTH NATRAJ FINANCIAL AND SERVICES LTD S 95580 50.04
21/2/2008 532946 BANG SAM GLOBAL SECURITIES LTD B 78630 171.36
21/2/2008 532946 BANG SAM GLOBAL SECURITIES LTD S 78630 171.52
21/2/2008 500019 BANK OF RAJ. MACQUARIE BANK LIMITED B 1000000 165.00
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Crude price takes a ease

Crude prices drop from record highs as inventory rises more than expected

Crude prices fell from their record highs today, Thursday, 21 February, 2008. Prices fell after an Energy Department report showed that U.S. inventories rose almost twice as much as forecast, as refineries slowed processing to perform seasonal maintenance.

Crude-oil futures for light sweet crude for April delivery today closed at $98.23/barrel (lower by $1.47/barrel or 1.45%) on the New York Mercantile Exchange. Earlier in the session, the April contract it a low of $96.27 a barrel.

EIA reported today that crude inventories rose 4.2 million barrels in the week ended 15 February outstripping the increase of 3.2 million barrels that market expected. On the demand side, EIA reported motor gasoline demand has averaged 9.0 million barrels per day, or 0.5% above the same period last year. Distillate fuel demand has averaged 4.3 million barrels per day over the last four weeks, down 1.9% compared to the same period last year.

EIA also reported that Gasoline supplies rose by 1.1 million barrels in the latest week, while distillate stocks fell by 4.5 million barrels. Total petroleum inventories, including crude oil, gasoline, and diesel, decreased by 3.7 million barrels last week, but they are still in the upper half of the average range for this time of year.

Brent crude oil for April settlement today fell $2.18 (2.2%) to $96.24 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.

Natural gas declines

Natural gas futures declined on signs the U.S. economy is moving closer to a recession, paring energy demand. March natural gas fell 7.4 cents to $8.891 per million British thermal units. EIA also reported that natural gas inventories fell 172 billion cubic feet to 1,770 billion cubic feet.

Against this backdrop, March reformulated gasoline dropped 6.32 cents to $2.5220 a gallon, and March heating oil fell 1.65 cents to $2.7381 a gallon.

In a monthly report released last week, EIA said the world oil market is poised to ease over the next two years with production increases offsetting moderate growth in oil demand.

Gold and Silver move to record highs

Gold and silver continue to make new marks for themselves

Bullion metals were back in their rally once again today, Thursday, 21 February, 2008 with the slumping dollar and rise in overall commodity prices.

Gold generally moves in the opposite direction of the U.S. currency. Gold, as a dollar-denominated commodity, suffers from dollar strength.

Comex Gold for April delivery rose $11.4 (1.2%) to close at $949.2 an ounce on the New York Mercantile Exchange. Earlier in the day, prices hit a high of $958.4. On 30 January, 2008 prices had hit a high of $941 in the after hours trading. This year, prices have gained 13.7% till date. In January, prices gained 11%, the highest monthly gain since April 2006. Last week, gold prices suffered a loss of $16.2/ounce (1.8%).

Comex Silver futures for March rose by 19 cents (1.1%) to $17.95 an ounce. Silver has gained 18.3% in 2008. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years. In January this year itself, prices climbed 14%.

Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices. Rising crude increases inflationary pressures and vice versa. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

Gold witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

In the energy market today, crude-oil futures fell by more than $2 today and were back around $97/barrel. Prices dropped as government data showed U.S. crude inventories rose more than expected in the latest week.

In the currency market today, the dollar index, which tracks the performance of the greenback against a basket of currencies, fell 0.7% to 75.56.The greenback was pressured by worse-than-expected manufacturing in the Philadelphia region as reported by the Federal Reserve Bank of Philadelphia.