Mukesh Ambani - Most Expensive Home

Owners of 168 cars

The house is 173.12 metres tall, equal to a 60-floor building. However, his home will have only 27 floors, meaning that every floor will have an extremely high ceiling.

The first six floors are intended exclusively as a parking area, for cars which belong to the Mukesh family. A total of 168.

The eighth floor is an entertainment centre with a mini theatre and about 50 seats. The ceiling of the mini theatre is a garden and above it are three more balconies with special gardens – a replica of the gardens of Babylon.

27 floors for a 6-member family

The ninth floor was created for emergency rescue, while two floors above it are reserved for treatments and health.

One of them is furnished with sports equipment, halls and a swimming pool, while the other is a cutting edge gym. Above the health floors are guest rooms which have glass walls instead of classic ones.

The first four floors have a wonderful view of the Arabian Sea and the city itself. These floors are intended for Mukesh, his wife Neeta, their three children and Mukesh`s mother Kokilaben.

600 servants

The top two floors will be maintenance rooms and a control room, which will assist helicopters as they land on the roof

A 600-man permanently employed staff is necessary for maintenance. The home took four years to be built. Atilla does not only impress with its size, but with its most luxurious interior design.

Mukesh owns Reliance Industries, the largest Indian private oil and bio technology company. During the time of Mukesh`s father Dhiru Bhai, wealthy Indians used to hide their fortune.

Obviously, this trend has changed and those who have money want to show it to the entire world

via Javno.com

L&T, RPL June 2008 futures at premium

Turnover in F&O segment rises

Nifty June 2008 futures were at 4875, at a premium of 39.70 points as compared to spot closing of 4835.30.

The NSE's futures & options (F&O) segment turnover was Rs 64,758.96 crore, which was higher than Rs 56,333.67 crore on Wednesday, 28 May 2008.

Larsen & Toubro (L&T) June 2008 futures were at premium at 2905.90 compared to the spot closing of 2882.25.

Reliance Petroleum (RPL) June 2008 futures were at premium at 177.90 compared to the spot closing of 176.

IFCI June 2008 futures were near spot price at 62.60 compared to the spot closing of 62.25.

In the cash market, the S&P CNX Nifty lost 83.05 points or 1.69% at 4835.30.

Rolta

Rolta

Vishal Retail

Vishal Retail

ITC

ITC

Eveninger - May 29 2008

Eveninger - May 29 2008

Grey Market - Niraj Cement, Anus Labs, Gokul Refoils

Gokul Refoils 195 13 to 16

Anus Laboratories 210 32 to 35

Niraj Cement 175 to 190 17 to 20

Bafna Pharmaceutical 40 10 to 15

Fuel price hike tomorrow ?

The government is likely to take a decision on Friday on raising fuel prices and compensation package for the oil PSUs, Petroleum Minister Murli Deora said today.

Petroleum Minister Murli Deora who met the Prime Minister today informed sources that there is no question of fuel rationing and the left and UPA are on board with the decision.

He also said that the Finance Minister may agree to cuts in customs and excise duties for lessening the impact of price hike.

Mr Deora defending his stand on price hike said that the UPA has subsidised the hike by Rs 2.22 lakh crore.

The Petroleum Ministry is seeking a hike in petrol, diesel and LPG prices together with reduction in excise duties.

NSE Bulk Deals to Watch - May 29 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-May-08,ALOKTEXT,Alok Industries Limited,RELIANCE CAPITAL MF A/C EQUITY LINK SAVING SCHEME,BUY,1000000,63.16,-
29-May-08,CHAMBLFERT,Chambal Fertilizers Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,2180916,90.05,-
29-May-08,CHAMBLFERT,Chambal Fertilizers Ltd.,P R B SECURITIES PRIVATE LTD,BUY,2459359,91,-
29-May-08,CHAMBLFERT,Chambal Fertilizers Ltd.,PRASHANT JAYANTILAL PATEL,BUY,2153052,89.91,-
29-May-08,GWALCHEM,Gwalior Chemical Industri,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,124678,84.64,-
29-May-08,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,4591523,62.46,-
29-May-08,IFCI,IFCI Ltd.,P R B SECURITIES PRIVATE LTD,BUY,4139535,63.02,-
29-May-08,KOHINOOR,Kohinoor Foods Limited,A S CONFIN PVT.LTD.,BUY,166704,83.07,-
29-May-08,KOHINOOR,Kohinoor Foods Limited,LOHIA SECURITIES LIMITED,BUY,242575,83.02,-
29-May-08,KOHINOOR,Kohinoor Foods Limited,NAKAMICHI SECURITIES LTD,BUY,200000,83.1,-
29-May-08,MAXWELL,Maxwell Industries Ltd.,SUNIL JAYKUMAR PATHARE,BUY,1806000,18.55,-
29-May-08,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,BUY,4800181,50.75,-
29-May-08,NDTV,New Delhi Television Limi,ECAL ADVISORS LTD,BUY,470113,423.63,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,AMBIT SECURITIES BROKING PVT. LTD.,BUY,162844,403.06,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,177321,393.54,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,B K SHAH CO KETAN BHAILAL SHAH,BUY,300785,415.74,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,CPR CAPITAL SERVICES LTD.,BUY,146074,390.03,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,DINESH MUNJAL,BUY,186113,391.43,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,138822,407.58,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,MANIPUT INVESTMENTS PVT LTD,BUY,222820,405.75,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,NAMAN SECURITIES & FINANCE PVT LTD,BUY,134677,418.56,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,R.M. SHARE TRADING PVT LTD,BUY,188496,395.4,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,SURESH U.TREVADIA,BUY,157187,377.07,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,TRANSGLOBAL SECURITIES LTD.,BUY,179916,403.45,-
29-May-08,ROHITFERRO,Rohit Ferro-Tech Limited,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,192000,187.87,-
29-May-08,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,BUY,118194,40.26,-
29-May-08,SITASHREE,Sita Shree Food Products,DIPAK RAMANBHAI RATHOD,BUY,154111,40.5,-
29-May-08,TULSI,Tulsi Extrusions Limited,ADROIT FINANCIAL SERVICES PVT LTD,BUY,98359,68.34,-
29-May-08,TULSI,Tulsi Extrusions Limited,HARESH VITTHALDAS RAMI,BUY,109049,69.01,-
29-May-08,TULSI,Tulsi Extrusions Limited,TRANSGLOBAL SECURITIES LTD.,BUY,93157,68.24,-
29-May-08,VENUSREM,Venus Remedies Limited,TEMPLETON MF A/C. FI TAXSHIELD 96,BUY,46250,434.87,-
29-May-08,ARVINDMILL,Arvind Mills Ltd.,MORGAN STANLEY DEAN WITTER MAURITIUS COMPANY LIMIT,SELL,1621105,46.6,-
29-May-08,BINDALAGRO,Oswal Chem & Fert Ltd.,MORGAN STANLEY DEAN WITTER MAURITIUS COMPANY LIMIT,SELL,1455300,38.06,-
29-May-08,CHAMBLFERT,Chambal Fertilizers Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,2180916,90.13,-
29-May-08,CHAMBLFERT,Chambal Fertilizers Ltd.,P R B SECURITIES PRIVATE LTD,SELL,2459359,90.93,-
29-May-08,CHAMBLFERT,Chambal Fertilizers Ltd.,PRASHANT JAYANTILAL PATEL,SELL,2169954,90.08,-
29-May-08,DCB,Development Credit Bank L,PICTET AND CIE,SELL,957155,77.99,-
29-May-08,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,4579703,62.53,-
29-May-08,IFCI,IFCI Ltd.,P R B SECURITIES PRIVATE LTD,SELL,4180905,62.87,-
29-May-08,IOLN,IOL Netcom Limited,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,158062,120.14,-
29-May-08,KOHINOOR,Kohinoor Foods Limited,A S CONFIN PVT.LTD.,SELL,50000,84.65,-
29-May-08,KOHINOOR,Kohinoor Foods Limited,DEUTSCHE BANK AG LONDON,SELL,700000,83.01,-
29-May-08,KOHINOOR,Kohinoor Foods Limited,LOHIA SECURITIES LIMITED,SELL,2500,87.06,-
29-May-08,MAXWELL,Maxwell Industries Ltd.,SHOBHA JAIPAL REDDY,SELL,1806000,18.55,-
29-May-08,MTNL,Maha Tel Nigam Ltd.,MORGAN STANLEY DEAN WITTER MAURITIUS COMPANY LIMIT,SELL,1691200,94.52,-
29-May-08,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD,SELL,4800181,50.78,-
29-May-08,NIITTECH,NIIT Technologies Limited,MORGAN STANLEY DEAN WITTER MAURITIUS COMPANY LIMIT,SELL,355901,144.57,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,AMBIT SECURITIES BROKING PVT. LTD.,SELL,162844,404.02,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,177318,393.97,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,B K SHAH CO KETAN BHAILAL SHAH,SELL,300790,416.58,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,CPR CAPITAL SERVICES LTD.,SELL,145707,390.4,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,DINESH MUNJAL,SELL,186113,393.13,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,FID FUNDS (MAURITIUS) LIMITED,SELL,227000,449.25,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,138822,408.55,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,MANIPUT INVESTMENTS PVT LTD,SELL,222823,406.5,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,MIRAE ASSET INVESTMENT MANAGEMENT COMPANY LTD,SELL,297067,343.16,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,NAMAN SECURITIES & FINANCE PVT LTD,SELL,120612,431.65,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,R.M. SHARE TRADING PVT LTD,SELL,188496,394.8,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,SURESH U.TREVADIA,SELL,157187,378.06,-
29-May-08,PIRLIFE,Piramal Life Sciences Lim,TRANSGLOBAL SECURITIES LTD.,SELL,179916,403.68,-
29-May-08,SITASHREE,Sita Shree Food Products,ADROIT FINANCIAL SERVICES PVT LTD,SELL,118279,40.46,-
29-May-08,SITASHREE,Sita Shree Food Products,DIPAK RAMANBHAI RATHOD,SELL,154111,41.11,-
29-May-08,TULSI,Tulsi Extrusions Limited,ADROIT FINANCIAL SERVICES PVT LTD,SELL,98359,68.43,-
29-May-08,TULSI,Tulsi Extrusions Limited,HARESH VITTHALDAS RAMI,SELL,109049,69.39,-
29-May-08,TULSI,Tulsi Extrusions Limited,TRANSGLOBAL SECURITIES LTD.,SELL,93317,68.09,-

BSE Bulk Deals to Watch - May 29 2008

Deal Date Scrip Code Scrip Name Client Name Deal Type * Quantity Price **
29/5/2008 532975 AISHWARYA TE RUPA VIPUL SHAH B 65000 110.51
29/5/2008 532975 AISHWARYA TE HEMANT MADHUSUDAN SHETH B 145000 108.89
29/5/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. B 280188 109.54
29/5/2008 532975 AISHWARYA TE N D NISSAR B 121286 107.99
29/5/2008 532975 AISHWARYA TE RUPA VIPUL SHAH S 65000 106.59
29/5/2008 532975 AISHWARYA TE V J PATEL INVESTMENT S 95642 116.23
29/5/2008 532975 AISHWARYA TE VAJSHAH SHARES CONSULTANCY P S 67309 114.47
29/5/2008 532975 AISHWARYA TE H K STOCK SERVICES PVT LTD S 71000 108.75
29/5/2008 532975 AISHWARYA TE GOPAL TRADERS S 66530 115.11
29/5/2008 532975 AISHWARYA TE ANAND YOGESH SHARES AND CONSULTANCY PVT. LTD. S 100000 108.85
29/5/2008 532975 AISHWARYA TE KASHISH FINSTOCK S 100000 115.03
29/5/2008 532975 AISHWARYA TE DIPALI RAJESH SHAH S 58000 107.91
29/5/2008 532975 AISHWARYA TE VINAY JAIN S 53500 104.34
29/5/2008 532975 AISHWARYA TE SUDESH JAIN S 57000 104.13
29/5/2008 532975 AISHWARYA TE N S D NIRMAN PRIVATE LIMITED S 91000 105.01
29/5/2008 532975 AISHWARYA TE HEMANT MADHUSUDAN SHETH S 175000 105.70
29/5/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. S 280187 109.71
29/5/2008 532975 AISHWARYA TE N D NISSAR S 121286 108.13
29/5/2008 532975 AISHWARYA TE MALA HEMANT SHETH S 115000 113.50
29/5/2008 531223 ANJANI SYNTH NARENDRA VALLABHJI BAHUVA B 63805 41.54
29/5/2008 531223 ANJANI SYNTH BHAVANA N. MAHIDA B 80000 40.94
29/5/2008 531223 ANJANI SYNTH NARENDRA VALLABHJI BAHUVA S 56837 40.97
29/5/2008 530355 ASIAN OILFIE RNA BUILDERS NG B 522000 189.98
29/5/2008 530355 ASIAN OILFIE CONSOLIDATED SECURITIES LTD S 400000 190.01
29/5/2008 530355 ASIAN OILFIE AVINASH C MANCHANDA S 70000 190.00
29/5/2008 532946 BANG JAY INVESTRADE PVT. LTD S 68748 267.11
29/5/2008 590059 BIHAR TUBES SECUROCROP SECURITIES INDIA P B 119385 188.93
29/5/2008 590059 BIHAR TUBES SPJSTOCK B 106856 191.04
29/5/2008 590059 BIHAR TUBES SPJSTOCK S 106856 191.04
29/5/2008 500085 CHAMBAL FERTILISERS AND CHEMIC LATIN MANHARLAL SEC PVT LTD B 2143898 89.44
29/5/2008 500085 CHAMBAL FERTILISERS AND CHEMIC LATIN MANHARLAL SEC PVT LTD S 2143898 89.51
29/5/2008 532271 CYBERMAT INF S V ENTERPRISES B 768987 6.06
29/5/2008 532271 CYBERMAT INF S V ENTERPRISES S 769347 5.98
29/5/2008 531595 DOVER SECURT JIGYASA PROPERTIES PVT.LTD. B 187664 148.90
29/5/2008 531595 DOVER SECURT GAINFUL MULTITRADE PVT LTD B 28883 150.90
29/5/2008 531595 DOVER SECURT YASH MANAGEMENT AND SATELLITE LTD S 189000 148.92
29/5/2008 532823 EURO CERAMIC RAMESH UTTAMCHAND RAMCHANDANI B 175000 169.53
29/5/2008 531137 GEMSTONE INV PREM M PARIKH B 24000 21.90
29/5/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI S 24000 21.90
29/5/2008 531439 GOLDSTON TEC SUMMIT COMMUNICATIONS PVT LTD S 100000 215.49
29/5/2008 532764 GWALIOR CHEM GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD B 124322 84.63
29/5/2008 522235 MINAL ENGINE SHRIKANT JESINGBHAI PARIKH S 38000 17.16
29/5/2008 521030 NAKODA TEXT VISHU ENTERPRISE S 105566 49.70
29/5/2008 523820 NEOCORP INTE RAJESH VIJAYWARGIYA S 45665 67.00
29/5/2008 521080 PASARI SPIN SPJSTOCK B 201660 13.11
29/5/2008 521080 PASARI SPIN PRABHUDAS LILLADHER PVT. LTD. B 82877 13.11
29/5/2008 521080 PASARI SPIN SPJSTOCK S 201660 13.71
29/5/2008 532979 PIRAM LIFE R M SHARES TRADING PVT LTD B 129845 389.70
29/5/2008 532979 PIRAM LIFE B K SHAH CO B 251633 411.52
29/5/2008 532979 PIRAM LIFE R M SHARES TRADING PVT LTD S 129845 391.87
29/5/2008 532979 PIRAM LIFE B K SHAH CO S 251634 412.08
29/5/2008 532979 PIRAM LIFE MIRAE ASSET INVESTMENT MANAGEMENT CO LTD S 270000 363.59
29/5/2008 532884 REFEX REFRIG HIMAT PARSHOTTAMBHAI JATANIA B 92000 216.11
29/5/2008 513530 STELCO STRIP SPJSTOCK B 197999 43.64
29/5/2008 513530 STELCO STRIP SPJSTOCK S 197999 44.35
29/5/2008 531703 TRIBHVAN HSG CRESTA FUND LTD B 50540 78.06
29/5/2008 526953 VENUS REMEDS FRANKLIN INDIA HIGH GROWTH CO. FUND B 55215 434.98
29/5/2008 531249 WELL PACK PA DEVENDRA SURESH GUPTA B 50000 60.05
29/5/2008 531249 WELL PACK PA HEMANT MADHUSUDAN SHETH S 35000 62.19
29/5/2008 531249 WELL PACK PA HEMANT MADHUSUDAN SHETH S 40000 59.00
29/5/2008 531249 WELL PACK PA HEMANT MADHUSUDAN SHETH S 35000 62.10

Post Session Commentary - May 29 2008

Indian market made a sharp downward movement towards the final trading session to close in red after giving up its initial gains on the back of heavy selling through last trading hours and fuel price worries. The domestic market opened higher tracking the favoring cues from the US Markets, but was not able to sustain the momentum and turned volatile due to fear of rising fuel prices and the expiry of the derivatives contracts. Further investors negative attitude forced the market to close in negative zone. The government would decide on raising fuel price in the next two to three days. The banking, oil & gas and auto stocks were worst sufferer of the investors’ negative attitude while the capital goods stocks were in limelight as most of the buying was seen from this basket. The market breadth was negative as 1115 stocks closed in green while 1537stocks closed in red and 109 stocks remained unchanged.

The BSE Sensex closed down by 209.11 points to close at 16,316.26 and NSE Nifty fell by 83.05 points to close at 4,835.30. The BSE Mid Cap and Small Cap closed lower by 11.77 points and 56.02 points at 6,741.76 and 8,181.07 respectively. BSE Sensex touched intraday high of 16,666.03 and intraday low of 16,196.02.

Losers from the BSE are Tata Motors (8.22%), Ambuja Cement (6.05%), Mahindra & Mahindra (5.52%), SBI (3.62%), Hindalco (3.54%), HDFC (3.24%), NTPC (3.03%) and ICICI Bank Ltd (2.79%).

The Banking index closed down by 214.69 points at 7,718.81. Losers are Allahabad Bank (4.42%), Bank of India (4.32%), Canara Bank (4.18%), Kotak Bank (3.63%), SBI (3.62%), CBOP (3.45%), and Andhra Bank (3.40%).

The Oil & Gas index decreased by 206.49 points to close at 10,571.42. Losers are REl Pet (2.43%), ONG Corp Ltd (2.38%), Reliance Nat Res (2.28%), Reliance (2.19%), Gail India (1.96%) and Essar Oil Ltd.

Auto index closed lower by 151.22 points at 4,410.81, losers are Tata Motors (8.22%), Mahindra & Mahindra (5.52%), Herohonda Motors (2.77%), TVS Motors Ltd (2.59%), Escorts Ltd (2.35%), Ashok Leyland (2.30%), and Maruti Suzuki (1.34%).

The reality index ended down by 113.47 points at 7,116.95. Major losers are Purvankara (6.06%), Housing Dev (3.29%), Ansal Infra (3.07%), Unitech Ltd (3.04%), Penland Ltd (2.68%), DLFLtd (2.39%) and Parsvnath (2.39%).

The Capital Goods index was up by 255.12 points to close at 12,827.03. Major gainers are L&T Ltd (6.64%), Bharat Elec (3.57%), Elecon Eng C (3.52%), Alstom Proj Ltd (2.92%), Jyoti Struct (1.65%), BEML Ltd (1.35%) and Areva (0.65%).

Sensex plummets 209 points

The market witnessed extreme volatility during the day. After a firm opening at 16,666, 141 points above its previous close of 16,525, the Sensex made significant strides on the back of an extended buying and touched the day's high of 16,666. However, the market failed to hold on to its gains and drifted into negative territory in noon trades. The market took a sharp dip in afternoon trades from its initial surge and continued to move down thereafter, as shares across the sectors witnessed relentless selling pressure. Along with selling in heavyweights, major correction in auto, Bankex and oil & gas stocks dragged the index to an intra-day low of 16,196. The Sensex finally signed off the session with losses of 1.27% or 209 points at 16,316, while the Nifty tumbled down 83 points at 4,835.

The breadth of the market was extremely negative. Of the 2,760 stocks traded on the BSE 1,538 stocks declined, 1,114 stocks advanced and 108 stocks ended unchanged. Among the sectoral indices the BSE Auto index shed 3.31% at 4,410 followed by the BSE Bankex index (down 2.71% at 7,718.81), the BSE Oil & Gas index (down 1.92% at 10,571) and the BSE Power index (down 1.79% at 3,048.84).

Of the 30 stocks trading in the Sensex basket, only six stocks managed to end in green. Among the major losers, Tata Motors tumbled 8.22% at Rs582.55, Ambuja Cement plunged 6.05% at Rs97.80, Mahindra & Mahindra slumped 5.52% at Rs606.20, SBI dropped 3.62% at Rs1,464.30, Hindalco shed 3.54% at Rs189.60, HDFC lost 3.24% at Rs2,433.20 and NTPC declined 3.03% at Rs171.40. Other frontline stocks, too, were down by around 1-3% each. Larsen & Toubro however bucked the downtrend and rose 6.64% at Rs2,889.10, while Reliance Communications at Rs573, Cipla at Rs213.95, Satyam Computer Services at Rs526.25, Ranbaxy Laboratories at Rs504.60 and Wipro at Rs512.50 were up around 1% each.

Over 5.42 crore IFCI shares changed hands on the BSE followed by Chambal Fertiliser (2.48 crore shares), Nagarjuna fertilisers (1.91 crore shares), Aishwarya Telecom (1.16 crore shares) and Spice Tele (66.22 lakh shares).

Sensex sheds 209 points as an imminent oil price hike looms

The market, which swayed between positive and negative territory earlier in the day, slumped in the last hour of trade. Major selling pressure was seen in auto and banking shares. Tata Motors plunged even as Larsen & Toubro bucked the weak market trend.

Petroleum minister, Murli Deora today, 29 May 2008, said the government would take a decision on raising fuel prices in the next two to three days. A meeting of the Cabinet, which was to have taken up the matter today, has been postponed, he said.

Another reason for volatility was imminent expiry of May 2008 futures & options today. As per reports, rollover of Nifty positions from May 2008 series to June 2008 series stood at 57% as compared to 62% in the April 2008 to May 2008 series, as on 28 May 2008. The marketwide rollovers were healthy, at 62% as compared 61% in the previous series.

The 30-share BSE Sensex lost 209.11 points or 1.27% to 16,316.26. The Sensex lost 329.35 points at the day’s low of 16,196.02, hit in late trade. The index climbed 140.66 points at day’s high of 16,666.03, hit in the onset of trading session.

The broader based S&P CNX Nifty plunged 83.05 points or 1.69% at 4835.30. Nifty June 2008 futures were at 4875, a premium of 39.70 points against the spot closing.

The NSE's futures & options (F&O) segment turnover was at Rs 64758.96 crore, higher than Rs 56333.67 crore on Monday, 26 May 2008. BSE clocked a turnover of Rs 5915 crore in the cash segment as against Rs 5,431.78 on Wednesday, 28 May 2008.

US crude fell 76 cents to $130.27 a barrel, while London Brent crude fell 83 cents to $130.10 a barrel today, 29 May 2008, as a strengthening dollar more than offset fears of supply disruptions in Nigeria.

European markets, which open after Indian markets, were trading higher. Key indices in France, Germany and UK were up by 0.34% to 0.78%. Asian markets were trading higher today, 29 May 2008. Key indices in Japan, Hong Kong, Taiwan, Singapore and South Korea were up by 0.22% at 3.03%. However, China’s Shanghai Composite was down 1.66%.

US markets ended higher yesterday, 28 May 2008, after a volatile session led by better-than-forecast durable goods orders and positive financial results from select retailers. The Dow Jones industrial average gained 46 points to 12,594. The Nasdaq Composite index rose 5 points to 2,487. The S&P 500 index garnered 5 points to 1,390.10.

The market breadth turned weak in the last one hour of trade. On BSE, 1115 shares advanced as compared to 1537 stocks that declined. 109 stocks remained unchanged.

The BSE Mid-Cap index fell 0.17% at 6,741.76 and BSE Small-Cap index fell 0.68% to 8,181.07. Both these indices outperformed the Sensex.

India’s largest engineering & construction firm by revenue Larsen & Toubro soared 6.64% at Rs 2889.10, off day’s high of Rs 2949. The firm recommended a liberal 1:1 bonus issue and a total dividend of Rs 17 per share for the year ended March 2008. The company reported a 37.95% rise in net profit to Rs 966.76 crore on a 34.79% increase in total income to Rs 8715.92 crore in Q4 March 2008 over Q4 March 2007.

India's largest commercial vehicles maker by sales Tata Motors slid 8.22% at Rs 582.55. Tata Motors on Wednesday, 28 May 2008 said it plans to raise about Rs 7,200 crore through three simultaneous but separate rights issues, including an issue of equity shares worth up to Rs 2,200 crore.

Foreign investment firm Citigroup Inc. today, 29 May 2008 lowered the target price on Tata Motor stock to Rs 791 from Rs 914 earlier.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 2.19% at Rs 2466.50.

Major Sensex gainers were, Reliance Communication (up 3.92% at Rs 573.20), Cipla (up 2.98% at Rs 213.95 ), Satyam Computer (up 2.30% at Rs 526.25), Ranbaxy Laboratories (up 1.77% at Rs 504.60), and Wipro (up 1.25% at Rs 512.50).

Major Sensex losers were, Ambuja Cements (down 6.05% at Rs 97.80), Mahindra & Mahindra (up 5.52% at Rs 606.20) State Bank of India (down 3.62% at Rs 1464.30), and Hindalco Industries (up 3.54% at Rs 189.60).

The BSE Bankex underperformed the Sensex, falling 2.71% to 7,718.81. Allahabad Bank (down 4.42% at Rs 81.05), Bank of India (down 4.32% at Rs 288.85), Kotak Mahindra Bank (down 3.635 at Rs 680.05), Axis Bank (down 3.39% at Rs 783.30), and HDFC Bank (down 2.01% at Rs 1,324.40), slipped.

India's largest private sector bank by assets ICICI Bank fell 2.79% at Rs 797.30.

The BSE Auto index underperformed the Sensex, falling 3.31% to 4,410.81. Hero Honda (down 2.77% at Rs 778.40), TVS Motor Company (down 2.59% at Rs 37.55), Ashok Leyland (down 2.30% at Rs 36.10) and Maruti Suzuki (down 1.74% at Rs 764.30), declined.

The BSE Capital Goods index outperformed the Sensex, gaining 2.03% to 12,827.03. Bharat Electronics (up 3.57% at Rs 1,175), Elecon Engineering Company (up 3.52% at Rs 128), BEML (up 1.35% at Rs 1,091.25) and Areva T&D (up 0.65% at Rs 1,493.60), gained.

However, Bharat Heavy Electricals (down 0.76% at Rs 1,599.90), and Punj Lloyd (down 2.19% at Rs 310.80), slipped.

Piramal Life Sciences, which debuted at Rs 300, ended at Rs 313.90 on a volume of 72.42 lakh shares on BSE. The research and development unit was separated from parent Piramal Healthcare, formerly known as Nicholas Piramal. The stock touched a high of Rs 519.80.

FMCG products maker Godrej Consumer Products jumped 3.82% to Rs 136 after four block deals aggregating 27.98 lakh shares were executed in the counter at an average price of Rs 131.32 per share on BSE in opening trade.

Industrial chemicals maker Pidilite Industries gained 0.14% to Rs 146 on reporting 36.33% rise in net profit to Rs 33.4 crore on 35% increase in total income to Rs 371 crore in Q4 March 2008 over Q4 March 2007.

India's leading manufacturer of oleochemicals Godrej Industries surged 2.14% to Rs 264.55 after posting 39.39% surge in net profit to Rs 108.81 crore on 8% increase in total income to Rs 787.97 crore in the year ended March 2008 over the year ended March 2007.

India's largest pharma company by market capitalisation Sun Pharmaceutical Industries fell 5.07% to Rs 1388.55 after the company failed to clinch the deal for Israeli drug major Taro Pharma. Sun Pharmaceutical on Wednesday, 28 May 2008 informed BSE of a notice received from Taro rejecting Sun's revised offer of $10.25 per share due to it being inadequate and no longer in the best interests of the company.

Among the side counters, Suzlon Energy (down 5.01% at Rs 275.05), Indian Bank (down 4.89% at Rs 122.55), Deccan Aviation (down 4.80% at Rs 117.05) and GMR Infrastructure (down 4.55% at Rs 134.30), slipped.

Among the gainers were IFCI (up 6.50% at Rs 62.30), IVRCL Infrastructures (up 6.50% at Rs 403.10), Sun TV Network (up 6.26% at Rs 331.75), and Bhushan Steel (up 5.10% at Rs 836.65).

Larsen & Toubro clocked the highest turover of Rs 449.63 crore on BSE. IFCI (Rs 341.60 crore), Piramal Life Sciences (Rs 281.86 crore), Chambal Fertilisers and Chemicals (Rs 223.52 crore) and Bajaj Finserve (Rs 199.56 crore), were the other turnover toppers on BSE in that order.

IFCI reported the highest volume of 5.42 crore shares on BSE. Chambal Fertilisers and Chemicals (2.48 crore shares), Nagarjune Fertilisers and Chemicals (1.91 crore shares), Ispat Industries (1.32 crore shares) and Aishwarya Telecom (1.16 crore shares), were the other volume toppers on BSE in that order.

Trading Call - TCS

Buy TCS - SL - Rs 966 Target - 1087.

Daily Technicals - May 29 2008

Daily Technicals - May 29 2008

Daily Research - May 29 2008

Daily Research - May 29 2008

Market Outlook - May 29 2008

Market Outlook - May 29 2008

May 2008 derivatives expiry to keep the market volatile

The market is likely to exhibit volatile movements today, 29 May 2008 as May 2008 series futures & options are set for expiry today. As per reports, rollover of Nifty positions from May 2008 series to June 2008 series stood at 57% as compared to 62% in the April 2008 to May 2008 series, as on 28 May 2008. However marketwide rollovers were healthy, at 62% as compared 61% in the previous series.

Global cues were positive. In absence of any near term major domestic trigger with Q4 March 2008 results almost over, market is likely to dance in line with global cues.

However in June 2008, markemen would be looking at two triggers. One would be progress of monsoon and second would be the advance tax figures.

Asian markets were trading higher today, 29 May 2008. Shanghai Composite (up 0.22% at 3,466.78), Japan's Nikkei (up 2.80% at 14,092.72), Hang Seng (up 0.91% at 24,470.65), Taiwan Weighted (up 0.87% at 8,740.79), Singapore's Straits Times (up 0.89% at 3,160.62) and South Korea's Seoul Composite (up 1.75% at 1,837.32), edged higher.

US markets ended higher yesterday, 28 May 2008, after a volatile session lead by better-than-forecast durable goods orders and positive financial results from select retailers. The Dow Jones industrial average gained 46 points to 12,594. The Nasdaq Composite index rose 5 points to 2,487. The S&P 500 index garnered 5 points to 1,390.10

Back home, a sharp fall in crude oil prices firm global cues and short covering in late trade, propelled the market yesterday, 28 May 2008. The 30-share BSE Sensex rose 249.78 points or 1.53% at 16,525.37 and the broader based S&P CNX Nifty was up 58.55 points or 1.20% at 4918.35, on that day.

As per provisional data, foreign funds sold shares worth a net Rs 883.23 crore yesterday, 28 May 2008. Domestic funds bought shares worth a net Rs 527.98 crore on that day.

Foreign institutional investors (FIIs) were net buyers of Rs 1503.25 crore in the futures & options segment yesterday, 27 May 2008. They were net buyers of index futures to the tune of Rs 522.92 crore and bought index options worth Rs 643.08 crore. They were net buyers of stock futures to the tune of Rs 236.44 crore and bought stock options worth Rs 100.81 crore.

U.S. crude fell 76 cents to $130.27 a barrel, while London Brent crude fell 83 cents to $130.10 a barrel today, 29 May 2008, as a strengthening dollar more than offset fears of supply disruptions in Nigeria.

Morning Call - May 29 2008

In House :

Nifty at a support of 4882 and 4834 levels with resistance at 4950
and 4993 levels .

Buy : BRFL above 365 target of 380 s/l of 359

Buy : HOEL above 140 target 148 s/l of 134

Buy : in F&O : DCB above 80 target 87 s/l of 77

Buy : in F&O PFC above 138 target 151 s/l of 133

Out House :

Markets at a support of 16432 & 16363 and resistance at 16665 & 16786 levels .

Buy : INFY & satyam

Buy : RPL & Neyvelli

Buy : RPower & NTPC

Buy : HDIL & BombayDye

Buy : REL & Suzlon

Buy : IciciBank & Bharti

Buy : Emami : Bullet

Dark Horse : Emami , Neyvelli , Satyam , Wipro , BombayDye , RIL ,
GujNRE & INFY

Daily call - May 29 2008

Daily call - May 29 2008

Pre Market Watch - May 29 2008

The Indian Market is expected to have positive opening on the back of strong global cues as the US market closed in green and the Asian markets are going through positive sentiment. On Wednesday, Indian markets closed in green after going through volatility whole day. The market opened with the positive energy tracking the global cues but was not able to sustain the momentum and turned volatile due to the short covering of the expiry of the derivatives contract as well as positive start of the European market and government decision to relax its stance on the ban of cement exports gave a bit of support to the market. Further, buying in some key stocks like metal, banking, IT and FMCG influenced the market to close in green. Finance minister’s statement that oil cess is baseless and government is not considering to levy this for compensating oil losses, also helped the market sentiment. The capital goods and power stocks were out of favor as most of the selling was seen from these baskets. The BSE Sensex closed higher by 249.78 points at 16,525.37 and NSE Nifty grew by 58.55 points to close at 4,918.35. We expect that the market may gain further during the trading session.

Union Cabinet is expected to take decision today on the possible hike in fuel price. The government may also talk about rescue package for oil companies, which could include price hike, duty reductions and additional bonds. Earlier according some media reports, government was planning to consider cess on the income and corporate tax to compensate fuel price hike. But yesterday finance minister has denied that.

On Wednesday, the US market closed in positive territory. The Dow Jones Industrial Average (DJIA) closed higher by 45.68 points at 12,594.03 along with S&P 500 went up by 5.49 points to close at 1,390.84 and NASDAQ dropped by 5.46 points to close at 2,486.70.

Indian ADRS ended up. In technology sector, Infosys raised by (2.54%) along with Satyam by (2.48%), Wipro by (1.73%) and Patni Computers by (0.92%). In banking sector, ICICI bank and HDFC bank increased by (0.90%) and (0.88%) respectively. In telecommunication sector, Tata Communication and MTNL enhanced by (1.86%) and (0.42%). Sterlite industries went up by (0.90%).

Today the major stock markets in Asia are trading higher. Japan’s Nikkei is trading up by 383.28 points at 14,092.72 along with Hang Seng index trading high by 221.14 points at 24,470.65 and Taiwan Weighted trading at 8,740.79 down by 75.06 points.

The FIIs Wednesday stood as net seller in equity. The gross equity purchased was Rs2,338.60 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,692.80 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was Rs(354.20) Crore and net debt was Rs0.00 Crore.

Today, Nifty has support at 4,831 and resistance at 5,016 and BSE Sensex has support at 16,217 and resistance at 16,939.

Trading Calls - May 29 2008

Nifty (4918) Supp 4870 Res 4960

Buy Bombay Dyeing (909) SL 901 Target 920, 925

Buy GE Shipping (515) SL 510 Target 525, 530

Buy Bharti (884) SL 878
Target 895, 900

Buy Tata Steel (903) SL 897 Target 915, 920

Sell Praj Ind (193) SL 197
Target 183, 179

Bulls may settle for more gains

The minute you settle for less than you deserve, you get even less than you settled for.

After falling for four consecutive days, the market managed to rebound, mainly due to short-covering in the F&O segment ahead of today's expiry. What's more, the indicators from the derivative side of the market. Nifty futures expiring in May saw huge unwinding of shorts, with the near-month contract ending the day at a premium of 18 points as against a discount of 13 points the previous day. Also, Nifty futures for the June series witnessed strong addition in open interest with the contract erasing its discount to the spot index. Nifty futures still have around 20mn shares outstanding in the near-month series. As a result, we'll have an action-packed settlement day. What should also please the bulls is the fact that global markets are smiling again, led by the US market.

On the whole, we expect the key indices to extend yesterday's gains, helped by further short-covering in the F&O space. However, the broader market may remain subdued amid lack of investor interest in the small-cap and mid-cap stocks. Also, today's gains may not sustain if tomorrow's GDP data and weekly inflation numbers turn out to be disappointing.

Select sector-centric and stock specific action will continue. Notwithstanding the positive outlook for the day, we remain cautious in the near-term as the number of negatives far outweigh the positives, which are almost nil. The market is looking for direction as we are in a consolidation phase. Commodity prices in particular seem to be directing the day-to-day direction of the stock market. Investors are worried as to how high oil prices will go, and what impact it will have on corporates and consumers.

Key Results Today: Adlabs, Aegis Logistics, Anant Raj Industries, Banswara Syntex, Cinemax, HPCL, IPCA Labs, Lanco Infra, L&T, National Fertilizers, NTPC, Orchid Chem, Power Grid Corp and TN Newsprint.

FIIs were net sellers of Rs8.83bn (provisional) in the cash segment on Wednesday while local institutions were net buyers of Rs5.28bn. Foreign funds were net buyers of Rs15.01bn in the F&O segment yesterday.

On Tuesday, FIIs offloaded Indian shares worth Rs3.54bn from the cash segment. Mutual Funds were net sellers of Rs945mn.

Asian stocks rose the most in two weeks today after an unexpected gain in US durable-goods orders boosted regional exporters of electronics and autos. Higher oil prices lifted energy companies.

Toyota and Samsung Electronics both climbed to the highest this week. Toyota also gained as the weaker yen lifted the profit outlook for overseas sales.

BHP Billiton advanced after the price of crude rose back above $130 a barrel.

The MSCI Asia Pacific Index advanced 1% to 148.31 as of 9:50 a.m. in Tokyo, the biggest gain since May 16. All 10 industry groups climbed.

Japan's Nikkei 225 Stock Average climbed 1.9% to 13,973.79, and benchmark indexes also increased in Australia, New Zealand and South Korea.

US stocks managed modest gains on Wednesday after a fairly volatile session where investors considered fluctuating oil prices, fresh woes for the financial sector and a smaller-than-expected decline in durable goods order.

The Dow Jones Industrial Average rose 45.68 points, or 0.4%, to end at 12,594.03, with 17 of its 30 components trading higher. The S&P 500 index gained 5.49 points, or 0.4%, at 1,390.84, and the Nasdaq Composite was up 5.49 points, or 0.4%, at 1,390.84.

Stocks rose in the morning on lower oil prices and a smaller-than-expected decline in durable goods orders. But investors struggled to sustain those gains throughout the session as oil prices see-sawed. A late-session advance in select shares helped the major gauges close higher.

Financial shares were under pressure after Citigroup said AIG may need to raise more capital and regional bank KeyCorp. warned that it will have to write off more loans that haven't been repaid than it initially thought.

After rising from mid-March to mid-May, US stocks have been struggling of late, as market participants look for more clarity on the economy and the outlook for inflation. There are still a lot of uncertainties, with consumers getting hit by the credit crunch and higher fuel prices.

Market breadth was positive. Three stocks gained for every two that fell on the New York Stock Exchange.

Oil prices moved higher despite a stronger dollar and softening US demand for oil products in light of a sluggish economy and record energy prices.

Crude oil fell nearly US$3 earlier in the day, but rebounded after Morgan Stanley's co-head of global economics, Richard Berner, said crude prices could easily reach US$150 a barrel this year, and that high prices will not be enough to curb demand in developing countries.

Light, sweet crude oil for July delivery rose US$2.18 to settle at US$131.03 in New York. The contract fell US$3.34 on Tuesday, and was about US$4 off its all-time high of US$135.09 a barrel, which it hit last Thursday.

Gas hits 21st record high: The national average price for a gallon of regular unleaded gas rose to a record US$3.944 from the previous day's record of US$3.937, AAA reported.

Gold retreated in response to the stronger dollar. COMEX gold for August delivery fell US$7.80 to settle at US$905 an ounce. The dollar gained versus the euro and yen. Treasury prices tumbled, raising the yield on the 10-year note to 4% from 3.92%.

Orders for manufactured goods fell 0.5% in April, after dropping a revised 0.3% in March. The decline was smaller than the 1.5% economists were expecting. Thursday brings readings on GDP growth, the weekly jobless claims and the weekly oil inventories report.

European shares advanced on Wednesday. The pan-European Dow Jones Stoxx 600 index climbed 1% to 320.24. The UK's FTSE 100 closed up 0.2% at 6,069.60, while Germany's DAX 30 advanced 1.1% to 7,033.84 and the French CAC-40 rose 1.3% to 4,971.11.

In the emerging markets, the Bovespa in Brazil jumped 3% to 73,153 while the IPC index in Mexico was up 0.7% at 31,647. The RTS index in Russia rose 0.3% at 2396 while the ISE National 30 index in Turkey dropped 2.3% at 47,841.

F&O expiry, global cues hold key

A choppy and a dull day ended with positive gains as short-covering ahead of expiry aided the recovery in the late afternoon trades. Also a positive start in the equity markets across Europe coupled with media reports stating the government's decision to relax its stand on ban of cement exports took the Nifty to close above the 4,900 mark.

FMCG, IT, metal and even the banking stocks were in demand. The fertilizer stocks were in action for second straight session. Among the losers were Realty, power and capital goods stocks. Even the Mid-Cap and the Small-Cap stocks attracted buying interest.

Finally, the BSE benchmark Sensex ended 249 points higher to close at 16,549 and the Nifty index gained 58 points to close at 4,518.

Overall about 1,312 stocks advanced; 1,356 stocks declined while 88 stocks remained unchanged. Among the 50-Nifty 14 stocks ended in red and 36 stocks ended in green.

IOC staged a bounce back after slipping to a low of Rs415. The stock ended at Rs425 gaining a percent. The stock had slipped on poor Q4 earning. The company posted a net loss of Rs4.14bn for the quarter ended March 31, 2008 compared to a net profit of Rs15.03bn in the same quarter last year. Total income for the quarter has increased to Rs717.93bn from Rs538.19bn in the quarter ended March 31, 2007.

IOC's Board of Directors at its meeting held today has recommended dividend @ 55%. The scrip touched an intra-day high of Rs430 and a low of Rs415 and recorded volumes of over 2,00,000 shares on BSE.

Bajaj Finserv rallied by over 15% to Rs640 on back of huge volumes. The scrip touched an intra-day high of Rs665.60 and a low of Rs564 and recorded volumes of over 38,00,000 shares on BSE.

M&M slipped by 0.5% to Rs641 after the company announced that posted a net profit of Rs2.211bn for the quarter ended March 31, 2008 as compared to Rs2.552bn for the quarter ended March 31, 2007. The total income has increased from Rs 27.588bn for the quarter ended March 31, 2007 to Rs 31.754bn for the quarter ended March 31, 2008. The scrip touched an intra-day high of Rs654 and a low of Rs626 and recorded volumes of over 1,00,000 shares on BSE.

Infosys gained by 2% to Rs1912 after the company said that "BBVA and Finacle from Infosys signed a strategic global partnership". The scrip touched an intra-day high of Rs1920 and a low of Rs1870 and recorded volumes of over 3,00,000 shares on BSE.

Minda Industries gained by 5% to Rs309 after the Company announced that it bagged orders to the tune of Rs500mn from Volkswagen for the supply of headlamps and rear combination lamps for its upcoming models in India. The orders also include supply of rear combination lamps for the global model being manufactured in Russia. The Company will supply these from its existing facility at Chakan, Pune. The scrip touched an intra-day high of Rs309 and a low of Rs295.

Jet Airways gained by a percent to Rs536. There were reports stating that the company won the ‘Best Cargo Airline of Central Asia’ at the prestigious Cargo Airline of the Year Awards, held at the Royal Lancaster Hotel, London. The scrip touched an intra-day high of Rs543 and a low of Rs530 and recorded volumes of over 17,000 shares on BSE.

Fertilizer stocks once again for second day in a row got a boost following media reports that the government would ensure fertilizer companies are given priority in the supply of natural gas. Chambal Fertilizer surged by over 16% to Rs88, GNFC was up by over 8.5% to Rs158, Deepak Fertilizer advanced by over 6% to Rs108 and RCF is locked at 5% upper circuit to Rs71.45.

Corporate News

IOC to ration supplies in order to cut revenue losses. (BL)
Tata Motors plans 3 types of rights issue having differential voting rights as part of its plan to raise Rs72bn for the Jaguar-Land Rover acquisition. (BL)
ITC raises the prices of 3 of its cigarette brands by 10%. (BS)
Sun Pharmaceuticals’ US$454mn proposal to acquire Israeli drug-maker Taro has been called off. (BL)
Ranbaxy gets mixed verdict on Pfizer’s Lipitor in Australia. (BL)
Tata Steel-Corus raised prices for structural sections by £90 per ton from its Europe operations. (BL)
Unitech is in final stages of negotiation with Lehman for a US$500mn PE investment in its two commercial projects in Mumbai. (BL)
ONGC may reimburse part of service tax to shipping companies. (BL)
Tata Power to invest Rs5bn for wind power expansion. (BL)
GMR to set up ONGC’s proposed refinery in Kakinada. (BL)
HPCL-Mittal energy JV has approached the Petroleum Ministry to seek tax incentives.
Infosys Technologies to implement Finacle Universal Banking Solutions at BVA. (BS)
RIL and HPCL bid for control of three state-run sugar factories in Bihar. (BS)
Orbit Corp to foray in beachfront projects through SPV. (BS)
Reliance Communication to start due diligence of MTN.(BS)
Parsvnath to buy 30% stake in Nano City. (BS)
Adani Energy has been slapped with legal proceedings claiming US$100mn in losses by Petronas for violating an agreement to buy and sell LNG. (Mint)
Baring Asia has picked up 12% stake in Sharekhan at Rs17bn. (BS)
Cipla has filed pre-grant oppositions for over 50 drugs. (ET)
Air India is expected to reduce basic fares from Kerala and Andhra Pradesh by up to 83% after the two states reduced sales tax on aviation turbine fuel to 4%. (ET)
BSNL will be exempted from taking part in the auction of spectrum for 3G mobile services. (ET)
BSNL has sought exemption from Trai from paying any entry fee or license fee for its upcoming WiMAX as it planned to provide these services largely to rural India. (ET)
Airbus maker EADS to shift some manufacturing to India. (BL)

Economic News

PMO asks RBI to relax restrictions on ECBs imposed last year. (FE)
The government decided to give fertiliser sector top priority in allocation of natural gas to be produced from the gas fields. (FE)
The RBI fixes the marked-to-market spread for valuation of oil bonds at 25 basis points over sovereign borrowings. (BL)
RBI raises the spread for interest cost on trade credit, easing norms for foreign currency loans. (BS)
DoT has summoned executives from RIM to demand an explanation over its recent communication to its customers that it would be unable to accommodate any request for a copy of a customer’s encryption. (ET)
DoT approved unlimited number of bandwidth resellers in the country. (BL)
Trai invites consultation process to create a revenue share for Value added service providers. (FE)
The Cabinet Committee on Economic Affairs to Bengal projects in today’s meeting. (FE)
The Department of Atomic Energy to commercialise all uranium mines discovered by Atomic Minerals Division. (BS)
Rs95bn Dharavi makeover project to be delayed by a few months. (BS)
Government tightens norms for import of cars and sports utility vehicles. (BS)
The Union Cabinet is expected to take up a bail out package for oil companies which could include price hike, duty reductions and additional bonds. (ET)
The Punjab government cleared six industrial and five agro-industrial projects to be set up at a total cost of Rs111.7bn. (ET)
Interest coverage ratio for India Inc has declined from 11.6 times in the quarter ended March 2007 to 10.4 times in the quarter ended March 2008. (ET)
Carbon credit prices have hit an all time high as expensive natural gas pushes European power plants to shift to cheaper but dirtier coal which raises the demand for pollution offsets. (ET)

US Market somehow dodges losses

A late day surge help indices creep back from red as crude once again soars

US Market started and ended the day in green today, Wednesday, 28 May, 2008 but the indices lingered in the red in between throughout the day. Upbeat quarterly results from a handful of retailers and a dip in crude oil prices sent stocks higher in early trading. However, oil made a rebound midmorning, prompted broad-based selling in the stock market. But a late surge helped the indices end in the green finally.

Six out of ten sectors ended the session in positive territory, led by materials sector. Financials was one of the four losers.

Among major economic news of the day in US, the Commerce Department reported that durable goods orders fell 0.5% during April, which is a less substantial downturn than market had forecast. Excluding transportation, durable goods orders increased 2.5% against an expected 0.5% downturn following the previous month’s 1.7% increase. Importantly, nondefense capital goods orders, excluding transportation, increased 4.2%.

The Dow Jones industrial Average ended the day with a gain of 45.6 points at 12,594. The Nasdaq Composite Index, finished higher by 36.3 points at 2,481. S&P 500 finished higher by 9.4 points at 1,385.3.

Seventeen out of thirty Dow stocks ended in the green today. Alcoa was the leader among Dow winners today. The decliners were led by AIG on anticipation that the company might have to raise more than $20 billion that it garnered last week.

The earning report section was dominated by retailer today. Chico's FAS and American Eagle Outfitters announced better-than-expected earnings results for the most recent quarter. Polo Ralph Lauren reported this morning an increase in sales and earnings; the company also reaffirmed its full-year outlook. Discount variety store operator Dollar Tree also reported upbeat results for its latest quarter.

Crude-oil futures rose today after the dollar strengthened and also as traders continued to speculate regarding tomorrow’s inventory report by the Energy Department. Price also rose today after speculation by Morgan Stanley that Brent crude might soon touch $150/barrel. Crude-oil futures for light sweet crude for July delivery today closed at $131.03/barrel (higher by $2.18/barrel or 1.7%) on the New York Mercantile Exchange. Oil climbed as high as $131.58 and fell as low as $125.96 today.

Traders are expecting tomorrow’s report to show that crude supplies to have climbed by 750,000 barrels for the week ended 23 May. They also expect a buildup of 800,000 barrels in distillates and an increase of 400,000 barrels in gasoline inventories. The report will come out a day late because of last Monday’s holiday.

Volume on the New York Stock Exchange topped 1.2 billion, as advancing stocks topped decliners 9 to 7. On the Nasdaq, 801 million shares were exchanged and decliners edged just ahead of decliners.

For tomorrow, the weekly unemployment claims report and the preliminary first quarter GDP reading are the first things expected. Crude oil prices will also be in the spotlight tomorrow with the release of government's weekly energy report.

Bulls may recover

After opening on a weak note, the markets ended with strong gains. The bulls returned in the second half of the session, aided by pre-expiry bear covering. The benchmark indices closed with under 1.5 per cent gains at close. The traded volumes were higher compared to the previous session, which is a positive indicator.

The market breadth was even as the combined advance decline ratio was 1:1. The capitalisation of breadth was positive as the combined exchange figures were Rs 12,951 crore:Rs 5,509 crore.

The indices have closed at the upper end of the intraday range even as the market internals indicate an even strength between the bulls and the bears. The higher turnover indicates higher participation by the traders in the day's volatility. Coming on an uptick session, it is a positive sign. The 4800 / 4915 range advocated for Wednesday was tested on the upside as the Nifty overcame the upper threshold.

The coming session is likely to witness a range of 4975 on advances and 4860 on declines. The 4890 level will be a bullish pivot, above which the markets may remain firm.

The outlook for the markets on Thursday is that of cautious optimism as the bulls may attempt to recover lost ground. The overseas cues remaining neutral / positive may help their cause

Vijay Bhambwani
BS

Derivatives - May 29 2008

Derivatives - May 29 2008

Crompton Greaves, ITC, Tata Motors, Mahindra and Mahindra, Cement

Crompton Greaves, ITC, Tata Motors, Mahindra and Mahindra, Cement

Financial Sector

Financial Sector

Jindal Steel and Power, Shriram Transport Finance, Dishman Pharma, Strategy

Jindal Steel and Power, Shriram Transport Finance, Dishman Pharma, Strategy

Mercator Lines

Mercator Lines

Today's Pick - Monnet Ispat

We recommend a buy in Monnet Ispat from a short-term perspective. From the charts of the stock, we observe that it has been on a long-term up trend from its November 2006 low of Rs 143. Moreover, in the intermediate-term, the stock has been trending upward from its January 2008 low of Rs 360. Both long-term and intermediate-term up trend lines are intact. The daily and weekly momentum indicators are giving positive signals indicating that the stock is a good buy from a sho rt as well as a medium-term perspective. The volume has spurted higher over the past two trading sessions. The stock is presently trading well above the 50- and 200-day moving average. Considering the above facts, our near-term view on the stock is bullish and we expect it to rally to our price target of Rs 645 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while keeping the stop-loss at Rs 548.

via BL

Precious metals slip for second straight day

Gold and silver prices register modest fall as the dollar strengthens

After rising more than 3% last week, precious metals ended lower for the second consecutive day on Wednesday, 28 May, 2008 after the dollar strengthened against its rivals. Prices of precious metals fell despite crude prices rising. Last week, crude oil's rally to a fresh record high above $133 a barrel boosted the precious metal's appeal as an inflation hedge. Oil has doubled in the past year, fueling concern inflation will accelerate.

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. Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies.

Comex Gold for June delivery fell $7.8 (0.9%) to close at $900.5 ounce on the New York Mercantile Exchange. Much of the trading volume has moved to the August contract. August gold finished the day at $905 an ounce, down $7.80. Yesterday, prices had dropped more than $18. Early profit-taking was subsequently exacerbated by the sell-off in oil and another tentative dollar rally. Last week, gold prices ended higher by $25 (3%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce.

This year, gold prices have gained 7.6% for the till date against a 7.5% drop for the dollar against the euro. For April, prices closed lower by 6.3%. For first quarter prices gained 10.7%. In January, prices gained 11%, the highest monthly gain since April 2006. For February, it gained 6%. But in March, prices succumbed and fell by 5.5%.

Comex Silver futures for July delivery fell 5 cents (0.3%) to $17.415 an ounce. Silver has gained 16.2% in 2008 till date. For April, it closed lower by 5.5%. Silver gained 16% in Q1. In January this year itself, prices climbed 14%. In February, it gained another 15%. For March, it ended lower by 13%. The metal had climbed 16% in FY 2007. The metal also has gained for seven straight years.

At the currency markets on Wednesday, the dollar firmed up after a report showing orders for durable goods fell a milder-than-expected 0.5% in April. The dollar index, which tracks the greenback against a basket of major currencies, was at 72.535, up from 72.389.

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. In 2006, silver had jumped 46% while gold gained 23%.

Since last September, Fed has axed interest rates seven times and brought it down to 2%. The ECB has kept rates unchanged at 4% since June, 2007.

Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

In the crude market on Wednesday, crude oil rose more than $2 a barrel after Morgan Stanley said that Brent oil from the North Sea could easily' reach $150 a barrel. Crude oil for July delivery rose $2.18 (1.7%) to settle at $131.03 a barrel. Last week, crude oil rose till $135 after billionaire hedge-fund manager Boone Pickens said prices will reach $150 a barrel this year as demand outpaces supply.

At the MCX, gold prices for June delivery closed lower by Rs 99 (0.8%) at Rs 12,444 per 10 grams. Prices rose to a high of Rs 12,563 per 10 grams and fell to a low of Rs 12,260 per 10 grams during the day’s trading.

At the MCX, silver prices for July delivery closed Rs 16 (0.06%) lower at Rs 24,239/Kg. Prices opened at Rs 24,240/kg and fell to a low of Rs 23,675/Kg during the day’s trading.

Crude back over $130

Crude oil prices rise due to inventory speculation

Crude-oil futures rose today on Wednesday, 28 May, 2008 after the dollar strengthened and also as traders continued to speculate regarding tomorrow’s inventory report by the Energy Department. Price also rose today after speculation by Morgan Stanley that Brent crude might soon touch $150/barrel. Last week, crude prices marked a new high almost everyday after traders speculated that crude supplies are not enough to meet the forthcoming hurricane season.

Crude-oil futures for light sweet crude for July delivery today closed at $131.03/barrel (higher by $2.18/barrel or 1.7%) on the New York Mercantile Exchange. Oil climbed as high as $131.58 and fell as low as $125.96 today.

Last week, crude prices closed higher by 5%. Price touched a high of $135.09 earlier during the week. For the year, crude is up by 31.2% till date. Prices have more than doubled on a yearly basis.

At the currency markets on Wednesday, the dollar firmed up after a report showing orders for durable goods fell a milder-than-expected 0.5% in April. The dollar index, which tracks the greenback against a basket of major currencies, was at 72.535, up from 72.389.

Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. On the other hand strong dollar reduces the appeal of the metal as alternate source of investment.

Traders are expecting tomorrow’s report to show that crude supplies to have climbed by 750,000 barrels for the week ended 23 May. They also expect a buildup of 800,000 barrels in distillates and an increase of 400,000 barrels in gasoline inventories. The report will come out a day late because of last Monday’s holiday.

Natural gas rises in tandem with crude

Brent crude oil for June settlement today rose $2.62 (2%) to $130.93 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 in New York also advanced as crude rebounded from a one-week low. Natural gas for June delivery advanced 11.5 cents (1%) to settle at $11.916 per million British thermal units. Gas earlier rose as high as $11.975 and fell as low as $11.602. The June contract expired today.

Against this backdrop, June reformulated gasoline added 6.78 cents to close at $3.4476 a gallon, while June heating oil finished at $3.82 a gallon, up 2 cents.

AAA reported today that regular retail gasoline prices jumped to another record of $3.934 a gallon at USA. It's up 23% on a yearly basis.

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

At the MCX, crude oil for May delivery closed at Rs 5,595/barrel, higher by Rs 38 (0.7%) against previous day’s close. Natural gas for July delivery closed at Rs 513.7/mmbtu, lower by Rs 3/mmbtu (0.6%).

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