NSE Bulk Deal Watch - March 14 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
14-MAR-2008,ADVANIHOTR,Advani Hot.& Res.(I) Ltd,FASTTRACK IMPEX PVT LTD,BUY,260158,96.72,-
14-MAR-2008,ALPSINDUS,Alps Industries Ltd.,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,744341,39.75,-
14-MAR-2008,ARIHANT,Arihant Foundations & Hou,ARUN KUMAR BAJORIA,BUY,40000,383.00,-
14-MAR-2008,ARIHANT,Arihant Foundations & Hou,MARWADI SHARES AND FINANCE LIMITED,BUY,95647,381.18,-
14-MAR-2008,AUTOAXLES,Automotive Axles Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,113417,460.00,-
14-MAR-2008,BALKRISIND,BALKRISHNA IND. LTD,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,118450,595.00,-
14-MAR-2008,BANG,Bang Overseas Limited,EVERSIGHT TRADECOMM PVT LTD,BUY,17159,101.42,-
14-MAR-2008,BANG,Bang Overseas Limited,SARAOGI MADHU,BUY,90000,101.03,-
14-MAR-2008,BANG,Bang Overseas Limited,SARAOGI SHYAM,BUY,200000,101.01,-
14-MAR-2008,BHAGYNAGAR,Bhagyanagar India Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,1177809,40.75,-
14-MAR-2008,BRFL,Bombay Rayon Fashions Lim,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,427912,233.50,-
14-MAR-2008,CANDC,C & C Constructions Limit,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,300000,185.00,-
14-MAR-2008,CEATLTD,CEAT Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,269625,117.50,-
14-MAR-2008,CLUTCHAUTO,Clutch Auto Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,898985,69.00,-
14-MAR-2008,CREWBOS,Crew B.O.S. Products Limi,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,566200,70.90,-
14-MAR-2008,DABURPHARM,Dabur Pharma Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,1314180,53.75,-
14-MAR-2008,EUROCERA,Euro Ceramics Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,723434,148.00,-
14-MAR-2008,GPIL,Godawari Power And Ispat,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,395556,192.75,-
14-MAR-2008,GRAPHITE,Graphite India Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,1195036,49.20,-
14-MAR-2008,GSSAMERICA,GSS America Infotech Limi,BHARTI MALIK,BUY,77431,605.72,-
14-MAR-2008,GSSAMERICA,GSS America Infotech Limi,R.M. SHARE TRADING PVT LTD,BUY,74967,605.33,-
14-MAR-2008,HEG,HEG Ltd,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,1552399,270.50,-
14-MAR-2008,HIKAL,Hikal Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,100000,394.00,-
14-MAR-2008,HINDCOMPOS,Hindustan Composites Ltd,Minal Patel,BUY,150105,248.01,-
14-MAR-2008,INDOTECH,Indo Tech Transformers Li,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,60038,536.00,-
14-MAR-2008,JKTYRE,JK Tyre & Industries Ltd,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,648051,121.50,-
14-MAR-2008,KAMATHOTEL,Kamat Hotels (I) Ltd,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,248674,177.00,-
14-MAR-2008,KARURVYSYA,Karur Vysya Bank Ltd,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,579995,389.00,-
14-MAR-2008,MADHUCON,Madhucon Projects Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,225000,480.00,-
14-MAR-2008,NAHARCAP,Nahar Capital and Financi,SHIVALIK SEC. LTD,BUY,85400,77.45,-
14-MAR-2008,NITCO,Nitco Tiles Limited,SEA GLIMPSE INVESTMENTS PVT. LTD.,BUY,232000,249.98,-
14-MAR-2008,ORIENTHOT,Oriental Hotels Ltd,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,231319,272.00,-
14-MAR-2008,PNB,Punjab National Bank,TCI CYPRUS HOLDING LIMITED,BUY,15266279,500.00,-
14-MAR-2008,RAINCOM,Rain Commodities Limited,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,1498812,168.50,-
14-MAR-2008,RATNAMANI,Ratnamani Metals & Tubes,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,194514,820.00,-
14-MAR-2008,RICOAUTO,Rico Auto Industries Ltd,NEO SECURITIES LTD.,BUY,1307000,28.90,-
14-MAR-2008,ROHLTD,Royal Orchid Hotels Limit,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,561000,99.75,-
14-MAR-2008,SAREGAMA,Saregama India Ltd.,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,229129,139.50,-
14-MAR-2008,SONATSOFTW,Sonata Software Ltd,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,2100000,33.00,-
14-MAR-2008,SUPRAJIT,Suprajit Engineering Limi,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,516582,92.00,-
14-MAR-2008,TAJGVK,Taj GVK Hotels & Resorts,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,492981,115.45,-
14-MAR-2008,TATAELXSI,Tata Elxsi (India) Ltd,TATA INVESTMENT CORPORATION LTD,BUY,200000,177.50,-
14-MAR-2008,UNITY,Unity Infraprojects Limit,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,172942,570.00,-
14-MAR-2008,VENKEYS,Venky's (India) Limited,SERUM INSTITUTE OF INDIA LIMIT,BUY,103123,137.00,-
14-MAR-2008,VENUSREM,Venus Remedies Limited,MERRILL LYNCH CAPITAL MARKETS ESPANA S.A. SVB,BUY,184832,395.00,-
14-MAR-2008,VGUARD,V-Guard Industries Limite,SHIV KUMAR,BUY,200206,69.54,-
14-MAR-2008,ALPSINDUS,Alps Industries Ltd.,BSMA A\C DR,SELL,687600,39.75,-
14-MAR-2008,ARIHANT,Arihant Foundations & Hou,ARUN KUMAR BAJORIA,SELL,40000,381.00,-
14-MAR-2008,ARIHANT,Arihant Foundations & Hou,SARAOGI SHYAM,SELL,50000,384.70,-
14-MAR-2008,ARIHANT,Arihant Foundations & Hou,SURBHI BAJORIA,SELL,54513,381.29,-
14-MAR-2008,AUTOAXLES,Automotive Axles Limited,BSMA LIMITED,SELL,113417,460.00,-
14-MAR-2008,BALKRISIND,BALKRISHNA IND. LTD,BSMA LIMITED,SELL,118450,595.00,-
14-MAR-2008,BANG,Bang Overseas Limited,EVERSIGHT TRADECOMM PVT LTD,SELL,180000,101.00,-
14-MAR-2008,BANG,Bang Overseas Limited,POOJA MUKUND JALAN,SELL,90427,101.00,-
14-MAR-2008,BHAGYNAGAR,Bhagyanagar India Limited,BSMA LIMITED,SELL,1177809,40.75,-
14-MAR-2008,BRFL,Bombay Rayon Fashions Lim,BSMA LIMITED,SELL,427912,233.50,-
14-MAR-2008,CANDC,C & C Constructions Limit,BSMA LIMITED,SELL,300000,185.00,-
14-MAR-2008,CEATLTD,CEAT Limited,BSMA LIMITED,SELL,269625,117.50,-
14-MAR-2008,CLUTCHAUTO,Clutch Auto Limited,BSMA LIMITED,SELL,898985,69.00,-
14-MAR-2008,CREWBOS,Crew B.O.S. Products Limi,BSMA LIMITED,SELL,566200,70.90,-
14-MAR-2008,DABURPHARM,Dabur Pharma Limited,BSMA LIMITED,SELL,1314180,53.75,-
14-MAR-2008,EUROCERA,Euro Ceramics Limited,BSMA LIMITED,SELL,723434,148.00,-
14-MAR-2008,GPIL,Godawari Power And Ispat,BSMA LIMITED,SELL,395556,192.75,-
14-MAR-2008,GRAPHITE,Graphite India Limited,BSMA LIMITED,SELL,1195036,49.20,-
14-MAR-2008,GSSAMERICA,GSS America Infotech Limi,BHARTI MALIK,SELL,77431,606.70,-
14-MAR-2008,GSSAMERICA,GSS America Infotech Limi,R.M. SHARE TRADING PVT LTD,SELL,74967,605.88,-
14-MAR-2008,GUJALKALI,Gujarat Alkalies & Chem ,PARIKH JASVANT AMRATLAL,SELL,377000,140.76,-
14-MAR-2008,HEG,HEG Ltd,BSMA LIMITED,SELL,803768,270.50,-
14-MAR-2008,HEG,HEG Ltd,BSMA LIMITED,SELL,748631,270.50,-
14-MAR-2008,HIKAL,Hikal Limited,BSMA LIMITED,SELL,100000,394.00,-
14-MAR-2008,HINDCOMPOS,Hindustan Composites Ltd,PAT Financial Consultants Pvt Ltd,SELL,150000,248.00,-
14-MAR-2008,INDOTECH,Indo Tech Transformers Li,BSMA LIMITED,SELL,60038,536.00,-
14-MAR-2008,JKTYRE,JK Tyre & Industries Ltd,BSMA LIMITED,SELL,648051,121.50,-
14-MAR-2008,KAMATHOTEL,Kamat Hotels (I) Ltd,BSMA LIMITED,SELL,248674,177.00,-
14-MAR-2008,KARURVYSYA,Karur Vysya Bank Ltd,BSMA LIMITED,SELL,579995,389.00,-
14-MAR-2008,MADHUCON,Madhucon Projects Limited,BSMA A\C DR,SELL,225000,480.00,-
14-MAR-2008,NAHARCAP,Nahar Capital and Financi,KOTAK AMC OFFSHORE FUND SUB A/ GL INVESTS OPP.FUND LTD,SELL,103370,77.50,-
14-MAR-2008,ORIENTHOT,Oriental Hotels Ltd,BSMA LIMITED,SELL,231319,272.00,-
14-MAR-2008,PNB,Punjab National Bank,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,15266279,500.00,-
14-MAR-2008,RAINCOM,Rain Commodities Limited,BSMA LIMITED,SELL,1498812,168.50,-
14-MAR-2008,RATNAMANI,Ratnamani Metals & Tubes,BSMA LIMITED,SELL,194514,820.00,-
14-MAR-2008,RICOAUTO,Rico Auto Industries Ltd,NEO SECURITIES LTD.,SELL,1307000,28.90,-
14-MAR-2008,ROHLTD,Royal Orchid Hotels Limit,BSMA LIMITED,SELL,561000,99.75,-
14-MAR-2008,SAREGAMA,Saregama India Ltd.,BSMA LIMITED,SELL,229129,139.50,-
14-MAR-2008,SONATSOFTW,Sonata Software Ltd,BSMA LIMITED,SELL,2100000,33.00,-
14-MAR-2008,SUPRAJIT,Suprajit Engineering Limi,BSMA LIMITED,SELL,516582,92.00,-
14-MAR-2008,TAJGVK,Taj GVK Hotels & Resorts,BSMA LIMITED,SELL,492981,115.45,-
14-MAR-2008,TATAELXSI,Tata Elxsi (India) Ltd,HDFC ASSET MANAGEMENT COMPANT LTD,SELL,200000,177.50,-
14-MAR-2008,UNITY,Unity Infraprojects Limit,BSMA LIMITED,SELL,172942,570.00,-
14-MAR-2008,VENKEYS,Venky's (India) Limited,POONAWALLA INVESTMENT AND INDU,SELL,103123,137.00,-
14-MAR-2008,VENUSREM,Venus Remedies Limited,BSMA LIMITED,SELL,184832,395.00,-
14-MAR-2008,VGUARD,V-Guard Industries Limite,SHIV KUMAR,SELL,200206,69.65,-

BSE Bulk Deals to Watch - March 14 2008

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
14/3/2008 531897 ACCENT TECH ANAND YOGESH SHARES AND CONSULTANCY PVT LTD B 27500 144.55
14/3/2008 531223 ANJANI SYNTH NAMDEO H MORE B 70000 48.45
14/3/2008 530619 ASIA CERC IN PUSHTI CONSULTANTS PVT LTD S 110000 85.27
14/3/2008 531541 AVON ORGANI SUVARNA COMMERCIAL PVT LTD B 300000 22.65
14/3/2008 531541 AVON ORGANI BISHWANATH PRASAD AGRAWAL S 285975 22.65
14/3/2008 505506 AXON INFOTEC AVINASH ARVIND JAGUSHTE S 10000 33.50
14/3/2008 522059 CHAMPAGN IND DEUTSCHE SECURITIES MAURITIUS LIMITED B 167575 660.00
14/3/2008 526829 CONFI PETRO VSB INVESTMENTS PVT LTD S 1178442 11.93
14/3/2008 509550 GAMMON INDI HDFC MUTUAL FUND B 1050000 400.01
14/3/2008 509550 GAMMON INDI CREDIT SUISSE SINGAPORE LIMITED S 1050000 400.00
14/3/2008 531929 INNOCORP L VANDANA RAKESH MAHNOT B 54500 19.65
14/3/2008 531929 INNOCORP L RAKESH DHARAMCHAND MAHNOT S 55000 19.65
14/3/2008 508807 IST LIMITED SEWASTUTI FINANCE PVT LTD B 114340 224.17
14/3/2008 508807 IST LIMITED EDGETECH SOLUTIONS PVT LTD S 114420 224.17
14/3/2008 516078 JUMBO BAG LT PRAFUL BABULAL SHAH B 44169 44.38
14/3/2008 514448 JYOTI RES AD ASHWIN KUMAR KHODIADS PATEL B 30000 2.63
14/3/2008 514448 JYOTI RES AD BHAVESH MEHTA S 20763 2.63
14/3/2008 531784 KADAMB CONST FULCHAND JAIN S 22500 34.77
14/3/2008 500235 KALYANI ST CITIGROUP GLOBAL MARKETS MAURITIUS PVT. LTD B 232750 293.00
14/3/2008 512413 KHAITAN WVG SANJEEV JAI AEREN B 30000 68.30
14/3/2008 530771 KLG CAPI SER URMILA GARG S 24800 58.40
14/3/2008 531261 KUSHAGRA SO ROMY REALTY PRIVATE LIMITED B 78080 7.92
14/3/2008 532722 NITCO TILES SEA GLIMPSE INVESTMENT PRIVATE LIMITED B 250000 250.00
14/3/2008 521080 PASARI SPIN SPJSTOCK B 90479 13.96
14/3/2008 521080 PASARI SPIN SPJSTOCK S 77814 13.91
14/3/2008 531694 RAINBOW FOUN ANITA JAIN B 53650 10.50
14/3/2008 531694 RAINBOW FOUN AMIT JAIN S 30700 10.54
14/3/2008 531646 RFL INTERNAT BIPIN J MEHTA B 27230 0.92
14/3/2008 531646 RFL INTERNAT R MALHOTRA AND ASSOCIATES S 40180 0.92
14/3/2008 500368 RUCHI SOYA RELIANCE NATURAL RESOURCE FUND B 2500000 87.50
14/3/2008 500368 RUCHI SOYA CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 2500000 87.50
14/3/2008 513295 RUCHI STR AL RUCHI ACRONI INDUSTRIES LTD. B 150787 12.18
14/3/2008 502465 SPECIALITY KIRAN TARUNBHAI DESAI S 26000 61.20
14/3/2008 521234 SRI NACH COT KANTA SURESH JAIN B 100000 12.90
14/3/2008 521234 SRI NACH COT UPTURN SECURITIES PVT LTD S 100000 12.90
14/3/2008 532531 STRIDES ARCO CHAYADEEP PROPERTIES PVT LTD B 711224 141.00
14/3/2008 532531 STRIDES ARCO CITIGROUP GLOBAL MARKETS MAURITIUS PVT. LTD S 183563 141.00
14/3/2008 532531 STRIDES ARCO MORGAN STANLY MAURITIOUS CO LTD S 387205 141.00
14/3/2008 505160 TALBRO AUT C SONIA CHAND S 100000 42.60
14/3/2008 500408 TATA ELXSI TATA SONS LTD B 275000 177.50
14/3/2008 531574 VAS INFRA SANJAY JAGDISH PODDAR B 50000 55.00
14/3/2008 531574 VAS INFRA JAGDISH PRASAD PODDAR S 50000 55.00

Grey Market Premium - Gammon Infra, Sita Shree Food Products

Gammon Infra 167 to 200 5 to 7


Sita Shree Food Products 27 to 30 6 to 10

Post Market Commentary - March 14 2008

The benchmark indices of Indian stock market ended the day with a hefty gain mainly due to the substantial buying in frontline stocks. The market opened flat and was bit volatile during the first hour of trade. However, at last hour it moved up significantly and finally closed at its higher level. The BSE Sensex surged 403.17 points or 2.63% to close at 15,760.52 and in line with this, the NSE Nifty moved up 122.20 points or 2.64% to close at 4,745.80. In Sensex 25 stocks ended the day in green zone while 5 stocks witnessed a decline. On broader term, BSE-100, BSE-200 and BSE-500 moved with Sensex as it grew by 2.66%, 2.44% and 2.28% respectively. Against this, the BSE Midcap and Smallcap closed flat with a marginal gain of 0.85% and 0.05% respectively. All the BSE sectoral indices ended the day in green territory with BSE Realty, BSE CD, BSE Oil & Gas and BSE Metal are the main gainers.

The BSE Realty index moved up 350.41 points to close at 7,712.83. Penland and DLF are main gainers with 10.82% and 7.83% growth respectively.

The BSE CD index surged 156.16 points to close at 4,028.80 as Titan Industries improved by 9.22%.

The BSE oil & gas jumped by 332.84 points to close at 10,354.81 as Essar Oil and Cairn India ended with 5.04% and 4.79% growth respectively.

The BSE Metal index increased by 470.91 points to close at 14,844.87 as Sterlite Industries and Hindalco witnessed a hefty growth of 6.14% and 4.52% respectively.

The BSE Bankex increased by 246.29 points to close at 8,323.09. Axis Bank and Kotak Bank are the main gainers with 7.18% and 5.58% growth respectively, whereas Federal Bank and Canara Bank are the main losers with 4.06% and 1.22% decline.

The BSE Auto index ended with marginal gain of 3.42 points to close at 4,539.07 as majority of the stock ended the day with a marginal change.

Market gains amid buying in realty and consumer durables

The market reversed yesterday's downward trend and posted significant gains, as investors took cue from strong mixed Asian indices and avoided bearish US markets trend. After opening slightly higher at 15,647, the Sensex immediately breached 15,500 levels, but lost the edge and pared gains on the resumption of profit taking. As the market entered the second half of the trading session, the Sensex turned choppy and crumbled to the day's low of 15,331 on increased selling. The sentiment slowly turned bullish thereafter, with a strong bout of fresh buying in reality, consumer durables and select heavyweights lifting the Sensex to an intra-day high of 15,798. The Sensex ended the session with gains of 403 points at 15,761, while the Nifty added 122 points to close at 4,746.

However, the breadth of the market was negative. Of the 2,732 stocks traded on the BSE 1,458 stocks declined, 1,214 stocks advanced and 60 stocks ended unchanged. On the sectoral front, indices ended with gains. The BSE Realty index was the major gainer and rose 4.76% at 7,713 and the BSE CD index added 4.03% at 4,028.

Leading the upsurge in heavyweights, Reliance Energy advanced 8.26% at Rs1,296.15, Jaiprakash rose 7.83% at Rs236.25, DLF jumped 7.83% at Rs654.25, ICICI Bank scaled up 4.81% at Rs878.20, Hindalco moved up by 4.52% at Rs181.55, NTPC surged 4.39% at Rs194.90, Satyam added 4.07% at Rs378.85 and L&T gained 3.68% at Rs2,908. However, Bharti Airtel slumped 3.27% at Rs752.95, Mahindra & Mahindra tumbled 1.75% at Rs649.45, Ambuja shed 0.70% at Rs120, Maruti declined 0.54% at Rs835.20 and BHEL dropped 0.20% at Rs1,878.

Over 2.88 crore RNRL shares changed hands on the BSE followed by RPL (1.72 crore shares), Ispat Industries (1.39 crore shares), Power Grid (0.85 crore shares) and Essar Oil (0.71 crore shares).

Market may remain volatile

Continued uncertainty as to how bad the credit crisis will become and how long it will last, will ensure that the domestic bourses remain volatile next week. The resurgence of tension between the Congress Party and the Left parties over the Indo-US nuclear deal might lead to fears of mid-term election, resulting in political uncertainty. The stock market will remain closed on Thursday (20 March 2008) on account of Id-E-Milad and on Friday (21 March 2008) on account of Good Friday.

The US Federal Reserve is expected to lower the Fed rate by 75 basis points in its meeting on 18 March 2008. This act could provide a trigger to global markets. If US fed actually cuts rate further it would widen the spread between the US and India's main short-term lending of 7.75%, and could encourage flows to higher-yielding Indian assets. But the Reserve Bank of India (RBI) is unlikely to follow suit and lower domestic rates, which have been held steady for nearly a year, as the rising inflation still remains a concern.

The United Progressive Alliance (UPA)-Left committee on the Indo-US nuclear deal will meet on 17 March 2008 in the face of an ultimatum by the Government's Communist allies to make its stand clear on the controversial agreement. The Government is likely to present the draft of the India-specific Safeguards Agreement reached with the International Atomic Energy Agency (IAEA) at the meeting, which comes at a time when there is a further strain in UPA-Left ties.

Apart from US economy some other global factors that need to be watched are the Japanese Yen. The continued flow of negative news from the US has caused Japanese yen to appreciate against the dollar. Yen is an important source of liquidity globally.

Corporate tax payments ahead of fourth quarter 2008 results will provide some stimulus to the market.

The 30-share BSE Sensex lost 215 point or 1.35% to 15,760.52 in the week. The broader CNX S&P Nifty shed 25.8 points or 0.54% to 4745.80.

The BSE Mid-Cap lost 220.94 points or 3.25% to 6,583.45 and the BSE Small-Cap index slipped 329.68 points or 3.92% to 8,079.50.

Inflation based on the wholesale price index (WPI) rose 5.11% in the 12 months to 1 March 2008, higher than the previous week's rise of 5.02%, government data showed on Friday, 14 March 2008. The rate was the highest since 26 May 2007.

Sensex hits 6-month low

Winds of turbulence originating in the United States pushed the Indian market down to a six-month low last week. The sub-prime mortgage crisis in the United States has resulted in the drying of liquidity around the world. The spillover effect was seen across all emerging markets in Asia and India was not an exception.

Continued flow of negative news pertaining to global economy kept the market depressed and volatile. The developments on the domestic front only added to the concerns. A surge in inflation coupled with lower-than-expected industrial production data negatively surprised the markets.

The 30-share BSE Sensex lost 215 point or 1.35% to 15,760.52 in the week ended Friday, 14 March 2008. The broader CNX S&P Nifty shed 25.8 points or 0.54% to 4745.80 in the week.

The BSE Mid-Cap lost 220.94 points or 3.25% to 6,583.45 and the BSE Small-Cap index slipped 329.68 points or 3.92% to 8,079.50.

The two niche indices, BSE Sensex and S&P CNX Nifty, saw divergent trend on 10 March 2008 with the later posting gains helped by spurt in non-Sensex constituents viz. Reliance Petroleum and Cairn India. The 30-share BSE Sensex was down 51.80 points or 0.32% at 15,923.72. The broader based S&P CNX Nifty was up 28.80 points or 0.60% at 4,800.40.

Local markets managed to post decent gains in choppy trade on 11 March 2008 boosted by steady buying demand for index pivotals and short covering at lower level. The 30-share BSE Sensex gained 199.43 points or 1.25% at 16,123.15. The broader based S&P CNX Nifty advanced 65.50 points or 1.36% at 4,865.90.

On 12 March 2008, the market erased almost entire gains in contrast to strong start after disappointing industrial production figures for January 2008 hit the market in early afternoon trade. The US Federal Reserve’s move to inject up to $200 billion of liquidity into strained credit markets triggered rally across Asian and European markets. The 30-share BSE Sensex was up marginally by 4.83 points or 0.03% at 16,127.98. The broader based S&P CNX Nifty rose 6.10 points or 0.13% at 4,872.

A major setback was witnessed on the bourses on 13 March 2008 as share prices fell almost across the board. Markets across the globe dropped amid concerns about the effectiveness of the Federal Reserve's efforts to aid strained credit markets. The 30-share BSE Sensex slumped 770.63 points or 4.78% at 15,357.35. Sensex hit a low of 15,228.99 in late trade, its lowest level since early September 2007. The broader based S&P CNX Nifty was down 242.40 points or 5.10% at 4,623.60.

Buying in battered pivotals triggered solid rally on the bourses in late trade, with market closing near highest point of the day on 14 March 2008. However, the market breadth, indicating the overall health of the market remained negative. The 30-share BSE Sensex surged 403.17 points or 2.63% at 15,760.52. The broader based S&P CNX Nifty advanced 122.20 points or 2.64% at 4,745.80.

India's largest private sector bank by assets ICICI Bank slipped 1.63% to Rs 878.20.

NTPC, the country’s largest power generation company in terms of sales, surged 5.47% to Rs 194.90. As per reports, the company proposes to set up a 2000-megawatt project in joint venture with Andhra Pradesh State Power Generation Corporation.

Jaiprakash Associates soared 14.21% to Rs 236.25. The stock replaced Bajaj Auto in the BSE 30-share Sensex pack with effect from Friday, 14 March 2008.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 3.24% to Rs 2321.70. Its unit Reliance Retail has signed a joint venture with Pearle Europe for the launch of a chain of optical stores in India

Bharti Airtel, the country’s top listed cellular services provider by market share rose 0.22% to Rs 752.95.

India's largest engineering and construction firm by revenue Larsen & Toubro fell 2.68% to Rs 2908. The company said on Monday, 10 March 2008, that one of its subsidiaries Larsen & Toubro International FZE may incur commodity-hedging losses, erasing last year's profit at the unit. Larsen & Toubro International FZE may post losses of as much as Rs 200 crore because it bet against a drop in prices of zinc and some other commodities.

V-Guard Industries debuted on the stock exchanges on 13 March 2008. It debuted at Rs 82.15, a premium of 0.18% over the IPO price. On that day, the stock settled at Rs 73.45 on BSE, a discount of 10.42% over the IPO price of Rs 82. V-Guard Industries, a company based in Kerala, is engaged in the manufacturing and marketing of electrical systems.

Rural Electrification Corporation (REC) debuted on the stock exchanged on 12 March 2008. It debuted at Rs 125 on BSE, a premium of 19.04% over the IPO price. On that day, the stock settled at Rs 121.30 on BSE, a premium of 15.52% over the IPO price of Rs 105. REC, a term lending institution and a government enterprise, is engaged in the business of lending to power projects.

India's industrial output rose 5.3% in January from a year earlier, slowing sharply from the previous month's upwardly revised 7.7%. Manufacturing production rose 5.9% in January from a year earlier, compared with a provisional annual growth of 8.4% in December.

Inflation based on the wholesale price index (WPI) rose 5.11% in the 12 months to 1 March 2008, higher than the previous week's rise of 5.02%, government data showed on Friday, 14 March 2008. The rate was the highest since 26 May 2007.

Sensex garners 403 points on bargain hunting in pivotals

Buying in battered pivotals triggered solid rally on the bourses in late trade, with market closing near highest point of the day. However, the market breadth, indicating the overall health of the market remained negative. 24 shares from the 30-member Sensex pack advanced. Nifty March 2008 futures were at premium as compared to spot closing after a long time.

Most Asian markets, which opened before Indian market, were trading lower. European markets, which opened after Indian market, were in green.

The 30-share BSE Sensex surged 403.17 points or 2.63% at 15,760.52. The Sensex gained 441.07 points at day’s high of 15,798.42 hit in fag trade. Sensex had slipped 26 points at day’s low of 15,331.35 in early trade.

At current 15,760.52, Sensex trades at a PE multiple of 15.01 to 15.76, based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30 Sensex companies.

The broader based S&P CNX Nifty advanced 122.20 points or 2.64% at 4,745.80. Nifty March 2008 futures were 4,753.90, a premium of 8.10 points as compared to spot closing.

The Sensex is down 4526.47 points or 22.31% in calendar 2008 so far.

As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 358 crore today, 14 March 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 100.33 crore today.

Driven by the higher prices of food items and manufactured products, annual inflation rate based on the wholesale price index increased to 5.11% for the week ended 1 March 2008 as against 5.02% in the previous week. Inflation rate stood at 6.51% for the corresponding week in the previous year.

Finance minister (FM), P Chidambaram today said he expects the economy to maintain growth levels of above 8.5% in the coming years. FM also said in parliament that the present volatility in the local stock market reflected worldwide phenomena.

Despite the rally, the market breadth remained negative: On BSE 1,473 shares declined as compared to 1202 that advanced. 62 shares remained unchanged.

The BSE Mid-Cap index was up 0.85% to 6,583.45 and the BSE Small-Cap index rose 0.05% to 8,079.50. Both these indices underperformed the Sensex.

The total turnover on BSE slipped to Rs 5880 crore as compared to Rs 6,134.02 crore yesterday, 13 March 2008.

Turnover in NSE’s futures & options declined to Rs 40184.57 crore as compared to Rs 44869.49 crore yesterday, 13 March 2008.

All sectoral indices on BSE posted gains. The BSE Consumer Durables index (up 4.03% to 4,028.80), the BSE Power (up 2.79% to 3,149.48), the BSE Metal index (up 3.28% to 14,844.87), the BSE Realty index (up 4.76% at 7,712.83), the BSE Oil & Gas index (up 3.32% to 10,354.81), and the BSE Bankex (up 3.05% at 8,323.09), the BSE IT index (up 2.86% to 3,406.55), outperformed the Sensex.

The BSE Auto (up 0.08% at 4,539.07), the BSE Health Care index (up 1.28% at 3,820.64), the BSE Capital Goods index (up 2.03% at 13,579.94), The BSE TecK index (up 1.48% to 2,918.16), the BSE PSU index (up 1.83% to 7,527.22), the BSE FMCG index (up 2.37% at 2,189.31), underperformed the Sensex.

India’s leading private sector power utility company in terms of sales, Reliance Energy galloped 13.01% to Rs 1353 on 12.35 lakh shares. It was the top gainer from Sensex pack. The stock is the worst performing Sensex stock, declining 47.47% in calendar 2008 (till yesterday 13 March 2008).

Real estate shares staged a comeback after recent plunge. India’s largest real estate developer DLF jumped 8.15% to Rs 656.20 on huge volumes of 28.83 lakh shares. The stock replaced GlaxoSmithkline Pharma in the S&P CNX Nifty index from today. The BSE Realty index declined 44.33% in calendar 2008 (till yesterday, 13 March 2008).

Other real estate stocks Unitech (up 6.50% to Rs 283.25), Parsvnath Developers (up 3.57% to Rs 214.90), Indiabulls Real Estate (up 2.30% to Rs 505.25), and Housing Development & Infrastructure (up 2.04% to Rs 629), surged

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries rose 4.40% to Rs 2340.20 on 11.84 lakh shares. It moved in a range of Rs 2225 and Rs 2316.60 so far during the day. The stock is down 21.27% in the calendar year 2008 (till yesterday 13 March 2008).

IT pivotals advanced on fresh buying. Satyam Computer Services (up 4.61% to Rs 380.85), Infosys Technologies (up 2.74% to Rs 1370), TCS (up 3.76% to Rs 807.85), and Wipro (up 0.93% to Rs 368.40), logged gains.

Frontline banking shares gained despite the latest data showing a surge in inflation. ICICI Bank (up 4.30% to Rs 873.95), HDFC Bank (up 1.23% to Rs 1,312.25) and State Bank of India (up 0.78% to Rs 1,709) edged higher.

NTPC, the country’s largest power generation company in terms of sales, surged 4.34% to Rs 194.80 on reports the company proposes to set up a 2000-megawatt project in joint venture with Andhra Pradesh State Power Generation Corporation.

Metal stocks gain as government cleared new mining policy. JSW Steel (up 4.33% to Rs 936), Hindalco Industries (up 4.78% to Rs 182), Sterlite Industries (up 6.66% to Rs 780), Tata Steel (up 2.45% to Rs 714.90), edged higher.

The implementation of National Mineral Policy 2008 would be likely to attract foreign direct investment of $250 million per annum in the mining sector by the end of five years

Jaiprakash Associates soared 7.80% to Rs 236. The stock replaced Bajaj Auto in the BSE 30-share Sensex pack from today.

Bajaj Holdings & Investment settled at Rs 775 in highly volatile trade after its auto and the financial services businesses were spun off effective today, 14 March 2008. As per the restructuring, Bajaj Holdings, earlier known as Bajaj Auto, has 30% in Bajaj Auto and Bajaj Finserv, both to be listed separately in due course. The stock hit a high and low of Rs 1143.80 and Rs 720 respectively.

Bharti Airtel, the country’s top listed cellular services provider lost 3.26% to Rs 753 on 6.31 lakh shares. It was the top loser from Sensex pack.

Auto stocks were subdued. Mahindra & Mahindra (down 2.57% to Rs 644) and Maruti Suzuki India (down 0.32% to Rs 837.10) slipped on profit booking.

Reliance Natural Resouces was the top traded counter on BSE with turnover of Rs 305.11 crore followed by Reliance Petroleum (Rs 274.47 crore), Reliance Industries (Rs 271.37 crore), GSS America Infotech (Rs 223.33 crore), and Bajaj Holdings & Investment (Rs 197.02 crore), in that order.

Reliance Natural Resouces led volume toppers on BSE clocking volumes of 2.88 crore followed by Reliance Petroleum (1.72 crore shares), Ispat Industries (1.39 crore shares), Power Hgrid Corporation of India (85.84 lakh shares), and Essar Oil (71.04 lakh shares), in that order.

Among the side counters, English Indian Clays (up 20% to Rs 1739.25), Dalmia Ceemnets (up 16.66% to Rs 340), Educomp Solutions (up 15% to Rs 3725), Tata Sponge (up 14.69% to Rs 265.90), and Khaitan Electricals (up 18.18% to Rs 70.85), surged

Nahar Capital (down 20% to Rs 77.50), Artson Engineering (down 16.06% to Rs 36.85), and ABC Paper (down 13.39% to Rs 36.55), slumped

Pyramid Saimira Theatre gained 6.12% to Rs 315.40 after the company said its unit has entered into a partnership with Europe's Spize TV, a direct-to-home platform, for content and new channels. Spize TV is a pan-European DTH platform offering Asian and niche content.

Escorts slipped 0.16% to Rs 91.60 after the company said foreign fund FID Fund Mauritius has acquired a further 0.39% stake in the company, raising its total holding in the firm to 5.12%

Jindal Stainless moved up 1.47% to Rs 131 after the company said it will invest Rs 500 in its Indian unit and $100 million in its Singapore unit in the next 2-3 years.

GHCL plunged 12.20% to Rs 77 after the company said its board will meet on, 24 March 2008, to give in-principle approval for restructuring of the company..

Shares of three aviation firms slipped on reports the domestic aviation industry is likely to post losses in excess Rs 2,800 crore during the fiscal year 2007-08. SpiceJet (down 2.56% to Rs 51.30), Jet Airways (down 4.88% to Rs 599.85) and Jagson Airlines (down 1.13% to Rs 21.90) edged lower. However, Deccan Aviation rose 0.69% to Rs 131.70.

Aurobindo Pharma rose 0.66% to Rs 290 after the company received approval from the US Food and Drug Administration for its antibiotic minocycline hydrochloride in capsule forms.

The next trigger for the market would come from the figures of advance tax payment by corporates for the fourth installment, which falls due on 15 March 2008.

Another major trigger for the market is outcome of the US Federal Reserve meeting on 18 March 2008 to review interest rates. A cut in interest rate, as expected by the street may provide some support to the markets. Fed Chairman Ben Bernanke had signaled a readiness to cut interest rates again to prevent further damage to the weak US economy, even as he took note of rising inflation risks.

European markets were higher. Key benchmark indices from United Kingdom (up 0.25% to 5,706.80), France (up 0.08% to 4,634.05), and Germany (up 0.42% to 6,527.69), gained.

Most Asian markets were trading lower. Hong Kong's Hang Seng (down 0.29% at 22,237.11), Japan's Nikkei (down 1.54% at 12,244.48), Seoul Composite (down 0.95% at 1,600.26), Taiwan Weighted (down 0.60% at 8,161.39) and Shanghai Composite (down 0.22% at 3,962.67) edged lower after early rise.

However Singapore’s Straits Times index rose 1.19% at 2,839.01

US markets reversed early losses on Thursday, 13 March 2008, as S&P predicted an end to subprime mortgage writedowns. The early fall came after lower than expected retail sales and reports that another hedge fund may collapse. The Dow Jones industrail average gained 35 points to 12,145. The Nasdaq rose 19 points at 2.263; while the S&P 500 gained 6 points to 1,315.

US crude for April delivery fell 58 cents to $109.75 today, 14 March 2008 a barrel after hitting a record of $111. London Brent crude for April dropped 54 cents to $107

Nifty March futures at a discount

Turnover in F&O segment rises

Nifty March 2008 futures were at 4609, at a discount of 14.60 points as compared to spot closing of 4623.60.

The NSE's futures & options (F&O) segment turnover was Rs 44,869.49 crore, which was higher than Rs 44,632.78 crore on Wednesday, 12 March 2008.

DLF March 2008 futures were at discount, at 603.80, compared to the spot closing of 606.25.

Essar Oil March 2008 futures were at discount, at 209.70, compared to the spot closing of 213.20.

Reliance Petroleum (RPL) March 2008 futures were at discount, at 154.65, compared to the spot closing of 155.70.

In the cash market, the S&P CNX Nifty lost 248.40 points or 5.10% at 4623.60.

US Markets end in positive

Bullish comments from a major credit rating firm help market take a reverse course

US Market gave up earlier losses and finally closed modestly higher for the day today, Thursday, 13 March, 2008. Positive comments from a major credit ratings firm managed to lift the market. Dow was down as much as 230 points earlier in the day. The dollar continued to weaken and gold crossed the $1,000 mark. Crude price remained relatively steady. Commerce Department came out with a weak economic report. But at the end, nine of the major economic sectors ended the session in positive territory.

Market got a strong boost after Standard & Poor's said the bulk of write-downs on subprime securities might be behind banks that have already announced their full year 2007 results. S&P said write-downs could reach $285 billion, from the current level of $150 billion. The financial sector saw the largest boost from the S&P report.

The Dow Jones industrial Average ended the day with a gain of 35.5 points at 12,145. The Nasdaq Composite Index, finished higher by 19.7 points at 2,263. S&P 500 finished higher by 6.7 points at 1,315.

Fourteen out of thirty Dow stocks ended in the red today. Though financial sector got a good boost, stocks like Citigroup, AIG, JP Morgan – all ended in the red.

But hitting financial stocks earlier in the day was when Treasury Secretary Henry Paulson urged banks to reconsider their dividends to preserve capital.

Barring, Rediff and Satyam Computers, all Indian ADRs ended in red today. The two ADRs ended higher by 3.4% and 3.8% respectively. HDFC Bank and VSNL were the two topmost losers, shedding 3.7% each.

Among bleak economic news today, the Commerce Department reported that consumer spending weakened again in February as U.S. retail sales fell 0.6%. Market expected an increase of 0.2%.

Among other economic data, there were 353,000 unemployment claims for the week ended 8 March. his was unchanged from the previous reading.

Crude prices shot up once again today. Prices rose after the dollar continued to remain under pressure today after weak economic data. But prices rose despite the EIA yesterday reporting a surprising increase in weekly crude inventory for week ending on Friday, 7 March, 2008. Crude-oil futures for light sweet crude for April delivery today closed at $110.32/barrel (higher by $0.41/barrel or 0.4%) on the New York Mercantile Exchange. They earlier surged to $111 a barrel, the highest since trading began in 1983.

On the New York Stock Exchange, trading volumes showed 1.8 billion shares changing hands, with gainers topping decliners by a ratio of 18 to 13. On the Nasdaq, 1.1 billion shares traded, with gainers topping decliners by 17 to 11.

Tomorrow, Fed Chairman Ben Bernanke is scheduled to speak about sustainable homeownership in Washington. In terms of economic data, February's Consumer Price Index is due prior to the opening bell followed by University of Michigan's preliminary Consumer Sentiment Survey.

Hindustan Unilever

Hindustan Unilever

State Bank of India

State Bank of India

Oil Sector Update

Oil Sector Update

Today's Pick - Tata Chemicals

We recommend a sell in Tata Chemicals from a short-term perspective. It is evident from the charts of Tata Chemicals that it has been on a long-term up-trend from March 2007 trough of Rs 187. However, in the medium-term the stock has been on a strong downtrend since its life high of Rs 431 touched on January 3. Following a pullback rally form the support level of Rs 265, the stock halted at Rs 330 (key resistance level). On March 13, the stock plunged 8 per cent from the key resistance level of Rs 330, which indicates resumption of the medium-term downtrend. The stock is currently hovering near the 200-day moving average. The daily momentum indicator is declining in the neutral region towards the bearish zone. The daily moving average convergence divergence is featuring in the negative territory. Considering the strength of the medium-term downtrend, we expect the stock to penetrate the 200-day moving average as well as the long-term up trendline and decline to our target price level of Rs 265 in the coming trading sessions. Investors with a short-term perspective can sell the stock while keeping the stop loss at Rs 330.

Via Businessline

Sensex falls 770 pts, ends at 6-mnth low

The stock markets collapsed across the world on Thursday and the benchmark Sensex on the Bombay Stock Exchange tanked over 770 points to close at six and a half month low of 15,357.35 points.

Marketmen said an onslaught of selling by funds gripped the markets as fears of recession in US, the world`s largest economy, were further augmented and the latest data of industrial growth in India also painted a gloomy picture.

Besides, the US dollar tumbled to the record low level against the yen since 1995, dampening the market sentiments across the world, they noted. Almost all the Asian markets were trading lower on Thursday.

The 30-share Sensex, which commenced the day on a weak note, tumbled by 770.63 points to 15,357.35. The lowest closing recorded before today was on August 31 at 15,318.60 points.

The wide-based National Stock Exchange index Nifty also dropped by 258.40 points to 4,623.60 as most of the heavyweight stocks led by banking sector yielded significant ground.

The BSE barometer touched the day`s low of 15,228.99 and a high of 15,873.28 points.

Among the 30 Sensex stocks, only Hindustan Lever escaped the battering with a minor gain of 70 paise Rs 222.45.

The government had yesterday released the data which said industrial growth had plunged to to 5.3 per cent for January from 11.6 per cent in the same month last year, indicating cooling in economy,

Traders said the market sentiment was further hit by the weak global markets on concerns that the US Federal Reserve would need to do more to solve the credit crisis.

Crude price remains steady

Price crosses $111 during trading as dollar continues to plunge

Crude prices shot up once again today, Thursday, 13 March, 2008. Prices rose after the dollar continued to remain under pressure today after weak economic data. But prices rose despite the EIA yesterday reporting a surprising increase in weekly crude inventory for week ending on Friday, 7 March, 2008.

Crude-oil futures for light sweet crude for April delivery today closed at $110.32/barrel (higher by $0.41/barrel or 0.4%) on the New York Mercantile Exchange. They earlier surged to $111 a barrel, the highest since trading began in 1983. Last week, crude prices ended higher by $3.31 (3.3%).

Crude prices, denominated in dollars, tend to rise when the greenback falls, as a weaker U.S. currency makes crude less expensive to buyers holding other currencies. It also lowers oil producers' dollar revenue and forces them to raise prices.

In the currency market today, the dollar also recovered from all-time lows against the euro and the Swiss franc. The dollar index, which tracks the performance of the greenback against a basket of major currencies, was down 0.02% at 72.07.

Among bleak economic news today, the Commerce Department reported that consumer spending weakened again in February as U.S. retail sales fell 0.6%.

EIA reported yesterday that U.S. crude inventories rose 6.2 million barrels to 311.6 million barrels in the week ended 7 March. U.S. gasoline supplies rose by 1.7 million barrels in the latest week, while distillate stocks fell by 1.2 million barrels.

Brent crude oil for April settlement today rose $1.27 (1.2%) to $107.54 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.

Heating oil makes another new record

Natural gas advanced after a government report showed U.S. supplies declined last week more than forecast and crude oil surged to $111 a barrel. Gas for April delivery rose 21.9 cents (2.2%) to settle at $10.23 per million British thermal units.

As per EIA, supplies fell 86 billion cubic feet, 6 billion more than the average change for the same week over the last five years.

Against this backdrop, April reformulated gasoline dropped 4.58 cents to $2.6828 a gallon and April heating oil surged 10.04 cents to $3.1248 a gallon, a new record for a front-month contract.

Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.

The International Energy Agency, cut its forecast for 2008 global oil demand for a second month as record prices curbed consumption in some parts of the world. The agency reduced its forecast by 80,000 barrels a day to 87.54 million barrels a day, leaving annual demand growth at 2%.

OPEC left production targets unchanged on its 5 March meeting at Vienna, giving 12 of its 13 members a combined quota of 29.67 million barrels a day.

At the MCX, crude oil for March delivery closed at Rs 4,409/barrel, higher by Rs 10(0.23%) against previous day’s close. Natural gas for March delivery closed at Rs 408.2/mmtbu, higher by Rs 5.1/mmtbu (1.2%).

Gold crosses $1000 during intraday trading

Gold and silver prices continue to soar after weak economic report

Precious metals made a new record today, Thursday, 13 March, 2008 after gold crossed the $1000/ounce mark for the first ever time in history. Prices rose after the dollar continued to sink. Also a spate of weak news in the financial sector oil prices staying at higher levels propelled this rally. Higher oil prices boost the appeal of the precious metal as a hedge against inflation. Silver prices also rose substantially today.

Comex Gold for April delivery rose $13.3 (1.4%) to close at $993.8 ounce on the New York Mercantile Exchange. Earlier in the day, prices touched a high of $1001.5/ounce but then the metal gave up some of its gains later in the session. This year, gold prices have gained 18.5% till date. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. Last week, gold prices declined by 80 cents.

Comex Silver futures for May delivery rose 42.5 cents (2.1%) to $20.42 an ounce. Silver has gained 32% 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%. In February, it gained another 15%.

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. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

In the energy market today, crude oil rose to a record for a seventh day, climbing above $111 a barrel in New York, after the weak dollar prompted traders to invest in commodities. At the end, it closed a little over $110.

In the currency market today, the dollar also recovered from all-time lows against the euro and the Swiss franc. The dollar index, which tracks the performance of the greenback against a basket of major currencies, was down 0.02% at 72.07.

Among bleak economic news today, the Commerce Department reported that consumer spending weakened again in February as U.S. retail sales fell 0.6%.

The dollar has been dampened since last year, more since start of FY 2008 after interest rates were cut twice in January, 2008. Gold, as a dollar-denominated commodity, suffers from dollar strength. On the contrary, gold prices rise with falling dollar as inflationary concerns boosts the metal's appeal as an inflation hedge.

The Fed has cut the federal funds rate to 3% this year from 5.25% in mid-September, 2007. January 2008 itself saw two rate cuts in a gap of ten days.

Gold witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. The Fed reduced federal funds rate three times in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

At the MCX, gold prices for April delivery closed higher by Rs 145 (1.1%) at Rs 12,849 per 10 grams. Prices rose to a high of Rs 12,960 per 10 grams and fell to a low of Rs 12,718 per 10 grams during the day’s trading.

At the MCX, silver prices for May delivery closed Rs 440 (1.7%) higher at Rs 26,236/Kg. Prices opened at Rs 25,876/kg and went to a high of Rs 26,828/Kg during the day’s trading.

Daily Technicals - March 14 2008

Daily Technicals - March 14 2008