PM's Official Speech

My Fellow Citizens,

It has been some time since I have had the opportunity to speak to you. In the time that has gone by, our country has marched forward as one of the world’s fastest growing economies. This has enabled us to generate revenues that have been invested for the welfare of our people - in employment generating programmes, in farmer’s welfare and in building our social and economic infrastructure.

As I speak to you today, I feel confident that the people of India will continue to demonstrate their creativity and potential for high growth. I assure you that our Government will continue to pursue policies that will make our growth process more socially inclusive; more meaningful to all sections of society; more beneficial to our farmers, artisans, and industrial workers.

In the past four years, we have vastly expanded programmes which directly affect the poor and marginalized sections of society. We now have a universal rural employment guarantee of 100 days which is a unique social safety net for the rural poor. Farmers and agriculture are getting attention unprecedented in the last two decades.

The result is that agricultural production is rising much faster now than a decade ago. The education system has been has been expanded at all levels and we have tried to ensure that the nutritional status of our children improves through a universal mid-day meal programme. Bharat Nirman and the National Rural Health Mission and the Jawaharlal Nehru Urban Renewal Mission aim to provide better infrastructure and health care facilities in rural and urban areas. I am sure that all these efforts have started to bear fruit and no one can deny that we are moving in the right direction to eliminate poverty, ignorance and disease.

My Fellow Citizens,

However, I fully share with all of you your concern that in recent months, higher growth has been accompanied by higher inflation. Our government has taken several measures to insulate the less privileged in our society from the full impact of higher inflation.

You are all aware that two important external factors have been responsible for higher inflation. First, rising food and commodity prices around the world and second, rising world oil prices.

Our government has taken many steps to increase food production and procurement, limit food exports and strengthen the Public Distribution System. All these steps, along with positive expectations of a normal monsoon, have already had a positive impact on food price inflation. I am confident that in months to come there will be further stabilisation in food prices.

Our economy is largely self-sufficient in food. We produce enough to meet our needs. For this, we salute our farming community. Our government will continue to empower our farmers and enhance their welfare. We will continue to give a fair price to our farmers for their produce. This will certainly lead to some rise in prices of foodgrains but this is the only way in which we can incentivise higher production and assure the food security of our people.

However, in the case of oil, nature has not blessed us in the same manner. We remain dependent on imports. We are, therefore, vulnerable to global trends in oil prices. When our government came to power in May 2004, we faced a price of $ 39 per barrel for crude oil. Today, that price has gone up to over $ 130 per barrel – an increase of over three times.

This global Oil Shock has imposed a huge burden on our finances and on the financial resources of our Oil Companies. In the past year alone, as oil prices doubled, our Government did not make any adjustments in the price of petrol and other petroleum products. Kerosene prices have not been touched in four years.

Our Government is committed to ensuring that the impact of this global Oil Shock is minimal. We wish to protect as large a section of our society as possible from its effects. This has been at great cost to government finances and to the economy as a whole.

However, business cannot go on like this for ever. We need to learn to adjust to this new international scenario. We need to be efficient and economical in our use of energy. And we need to pay the economic cost of petroleum products. There are limits to which we can keep consumer prices unaffected by rising import costs. Our oil companies cannot go on incurring losses. This way, they will have no money to import crude oil from abroad.

To compensate them, the Central Government has reduced taxation of petroleum products to the extent possible. But given the commitments of the government for vital development and non-development expenditure, taxes on petroleum products cannot be completely eliminated. Thus a rise in prices is inevitable.

However, it has been our endeavour to raise the prices only by a moderate amount. Price of petrol has been raised by Rs 5 per litre, of diesel by Rs 3 per litre and of an LPG cylinder by Rs 50. Prices of kerosene, a vital fuel for the poor, remain unchanged. We continue to bear a subsidy of Rs 250 per cylinder of LPG and almost Rs 20 per litre of kerosene. It must be appreciated that what has been done is the bare minimum, with a substantial burden being borne by the government and the oil companies.

The Central Government, oil companies and consumers are bearing a part of this immense burden. It is therefore incumbent upon state governments, many of whom tax petroleum products substantially, to also contribute to this national effort by suitably reducing state taxes and levies.

My Fellow Citizens,
Taken together, this entire effort will only bridge a tenth of the uncovered gap of over Rs. 200,000 crores. There is still a gap of almost 90% which has to be bridged. This 90%, amounting to almost Rs 180,000 crores, is being bridged by the government. The cuts in excise and customs duties will cost Rs 22,000 crores to the government. The remaining gap of Rs. 150,000 crores will be met by a combination of lower profits for oil companies and compensation to them by the government in the form of oil bonds.

My Fellow Citizens,
I know that the price increases we have had to announce today will not be popular, even though they are only modest. You must remember that the Government is bearing the burden of issuing Oil Bonds. Our oil companies are making a large sacrifice and are under severe stress.

However, I would like the nation to remember that issuing bonds and loading deficits on oil companies is not a permanent solution to this problem. We are only passing on our burden to our children who will have to repay this debt. Cutting down on the returns of our oil companies will choke a sector vital for the growth of the economy. We need more corrective measures in future on many fronts. In the long term, our country must have a sound strategy for energy security.

To begin with, each one of us can conserve energy and contribute to national security. I urge every citizen to conserve energy at every step, every minute of the day. Be it petrol, diesel, kerosene, LPG, electricity or even water – let us learn to save and use efficiently. Let us reduce wasteful consumption of petrol.

Finally, we have to develop alternative sources of energy, whatever be the source. We cannot remain captive to uncertain markets and unsure sources of supply. We have to develop renewable sources of energy, including nuclear energy.

My Fellow Citizens,
Today more and more of our people are enjoying the fruits of development. It is the responsibility of the Government to ensure a secure future for all our people and for future generations. We cannot think only for ourselves, for the present, for the here and now. We must think about what is good for future generations - for the welfare and security of our children, grand children and their children. It is our duty to ensure their food security and energy security.

The steps taken today are part of that process. I hope each one of you will strengthen our hands in building a strong, secure and caring India. An India where the aam aadmi feels safe, secure and hopeful about the future.

Sensex plummets 448 points

Weakness across global indices took heavy toll on the market and the Sensex lost 4.72% on across-the-board selling.

The downward journey of the market continued for the third straight session, as slump in global indices and concerns of hike in petro products made investors nervous, thereby triggering
a major sell off. Resuming on a bullish note at 15,993, 30 points above its last close of 15,963, the Sensex during mid afternoon accumulated losses of more than 521 points on across-the-board selling to touch the day's low of 15,442. The index however managed to erase its losses a bit and trade above 15,500 at the end of the session. After registering losses of 450 points in the last two sessions, the Sensex dropped 2.81% or 448 points to close at 15,515. The Nifty shed 130 points at 4,586.

All the sectoral indices were mauled and each declined by more than 1-5%. The BSE Realty index was the major loser and crashed by 5.01%, followed by the BSE Metal (down 4.98%), the BSE Power index (down

4.42%), the BSE Oil & Gas index (down 3.39%), the BSE Auto index (down 3.31%) and the BSE CG index (down 3.14%). The BSE second-rung benchmark indices the BSE mid-cap index and the BSE small-cap index tanked over 2% each.

The breadth of the market was heavily skewed in favour of losers. Of the 2,719 stocks traded on the BSE, 1,967 stocks declined, 676 stocks advanced and 76 stocks ended unchanged.
Except ONGC all the stocks in the Sensex basket ended at lower levels. Among the major losers Ambuja Cement crashed 5.46% at Rs87, Tata Steel plunged 5.36% at Rs812, HDFC Bank slumped 5.19% at Rs1,200, Maruti Suzuki crumbled 5.07% at Rs735, BHEL plummeted 4.99% at Rs1,456, Reliance Infra dropped 4.89% at Rs1,063.50, Tata Motors shed 4.87% at Rs537.95, DLF tanked 4.70% at Rs551.10 and Reliance Industries lost 4.14% at Rs2,285.10. Other heavyweight stocks also came under sustained selling pressure and lost around 2-3% each.

Realty stocks were battered. Akruti City tanked nearly 7.57% at Rs901, India Bulls plummeted 7.29% at Rs412.05, Omaxe slumped 5.61% at Rs185.95, Unitech dropped 5.52% at Rs207.20, HDFC lost 5.50% at Rs637.75 and Ansal Properties slipped by 4.86% at Rs118.55. Sobha Developers, DLF, Mahindra Life,
and Peninsula Land declined over 4-5% each.

Over 2.11 crore Gokul Refoils shares changed hands on the BSE followed by IFCI (1.78 crore shares), Anus Lab (1.64 crore shares), RPL (1.56 crore shares) and Ispat Industries (1.38 crore shares).

PM's Speech - short & sweet

Sorry, I know - we didn't do too well

The companies which give us dividends won't have any money to give next year - so we need to make sure we have enough money to spend for running the parliament - no cost cutting there you see...

It's not too much of a hike - we didn't know oil prices would increase - we were watching it climb from 40 to 130 before we realized its too late.

We don't have a conservation policy but ... You should all save - petrol, water, energy, we (MPs) can't afford to save - its our birth right to waste

States should reduce taxes - see ;-) .. BJP is in 12 states, lets see how many states reduce - we tell you - they aren't any good

We couldn't pass the nuclear deal - because we want to be in power, we are getting kicked Left and Right!

We know you are a honest man sir, please do justice to yourself

It's terrorism - says BJP, Left plans to stop traffic to reduce consumption

BJP lashed out at the Government for hiking the prices of petroleum products saying a “directionless” UPA has unleashed “economic terror” on the nation. At the same time, the Left has also called for nation-wide protests and stir against the price hike.
“This action is disastrous for the economy and all the claims made by the Prime Minister so far on the front on inflation has been proved to be a hoax,” BJP spokesperson Rajiv Pratap Rudy told PTI.
On the other hand, senior Left party leaders termed the fuel price hike as a “slap on the face” of the common man and said it revealed the “anti-people” policies of the Congress-led coalition. The supporters of the four Left parties -- CPI(M), CPI, RSP and Forward Bloc -- will hit the streets from tomorrow morning to force the government to roll-back the hike, senior Left leaders Abani Roy (RSP) and G Devarajan (Forward Bloc) said.
BJP’s Rudy said the Government, which has run out of ideas, has now unleashed this economic terror on the nation by increasing the prices of petrol, diesel and cooking gas. “This decision is the last straw for the UPA government and the last nail on the coffin of the common man, whose interests it claim to champion,” he added.
Asked whether the hike would lead to a discussion among Left parties on withdrawing support to the government, he said, “The Left parties will discuss about withdrawing support in a meeting scheduled later this month. RSP alone can’t take a decision,” Roy said.
Rudy ridiculed the Left parties opposition to the petrol price hike, saying the remarks of the Communists are “hypocritical” as they are part and parcel of this decision

via Mint

Company Background - Essar Oil

Essar Oil Limited (EOL), a company incorporated as a Public Limited Company during the year 1989, engaged in preliminary activities relating to bidding for Oil & Gas fields as well as advising the Energy. EOL deals with its three segments of business, such as Exploration & production, the Refinery and Marketing - Retail Business. The Exploration and Production (E&P) business of the company has participating interests in several hydrocarbon blocks for exploration and production of Oil & Gas, namely in Mehsana in Gujarat, and Cachar in Assam (all in India). Essar's oil refinery at Vadinar in Jamnagar, Gujarat is ideally located in India's West Coast in close proximity to the crude rich Gulf States. Vadinar is an all-weather deep-draft natural port. The refinery is configured to produce Euro II and Euro III grades of Petrol and Diesel with capacity of 10.5 million tonnes per annum (MTPA) and also fully integrated with its own dedicated 120 MW co-generation power plant, port and terminal facilities. EOL is one of the few private companies permitted to market petroleum products in India. To serve retail customers under the brand 'Essar Oil', EOL has a modern, large countrywide distribution network of Retail Outlets.

The Exploration and Production Division was set up for the purpose of Oil & Gas exploration activities in the year 1990. The company became a wholly owned subsidiary of Essar Gujarat Limited in March of the year 1992 and entered into an MOU for operation and maintenance services for the Refinery with an affiliate company, Essar Refineries Limited. In the year 1993, EOL secured international drilling contracts against international competitive bidding; it was the first drilling Company in India to. EOL has signed a Memorandum of Understanding with UOP Inter Americana, USA (UOP), for providing major process technologies. Essar Gujarat Limited proposed to transfer the entire shareholding of Essar Oil Limited in the year 1994 to Essar Investments Limited. EOL has entered into an MOU with Essar Gulf for the supply of Crude Oil. In the year 1995 EOL has entered into a contract with Essar Gulf FZE (Essar Gulf), a company based in UAE for supply of imported equipment and also has entered into a contract with Essar Projects Limited a group company, for supply of indigenous Equipment and Materials and for construction and erection of all Equipment at site.

The Company entered into an MOU with Government owned public sector oil company, Indian Oil Corporation Limited for marketing and distribution of its products. The energy division has made entry into Qatar in the year 1996 with a three-year contract from Qatar General Petroleum Corporation for our deep Rig. A Marketing division has been set up to source, handle and market petroleum products for the group in line with the Government's policy from time to time. During the year 1997, Essar Oil has joined the National Securities Depository Limited (NSDL). Essar Oil Ltd has decided to hike its petroleum refinery capacity at Vadinar in Gujarat from nine million tonnes to 10.5 million tonnes. The Exploration and production (E&P) division of the company has also signed production sharing contracts for three more exploration blocks-two onshore blocks in Rajasthan and one offshore in the Mumbai offshore basin. Essar Oil Ltd and Reliance Petroleum Ltd have sought 13 per cent equity each in a proposed pipeline joint venture. During the year 1998, EOL has forged alliances with three foreign oil companies and Hindustan Oil Exploration Company (HOEC) for joint exploration activities in the country.

EOL has initiated a marketing agreement with the public sector Indian Oil Corporation (IOC), according to which, 50 per cent of the offtake from the refinery would be through IOC, and the balance through BPCL. Essar Oil and Bharat Petroleum Corporation (BPCL) have hired Price Waterhouse Coopers in the year 1999 and SBI Caps to independently evaluate the Ruias-promoted refinery and expedite the process of the latter buying an equity stake in the company. EOL proposed to hive off its drilling division into a separate entity in the year 2000 activated as the same. During the year 2002, the company received the authorisation from government to sell petrol and diesel. Negotiates with PSU refineries to source products for its entry into retail marketing of petro products. In 2003, the company sold its Energy Division to Bin Jabr group Ltd, an oil and gas service provider based in Abu Dhabi with total consideration of $0.6m. In the same year EOL started marketing imported products. The first consignment of imported HSD already arrived. Sets up its first retail outlet at Devrukh in Ratnagiri District of Maharashtra and divided its Petromarketing Business into two entities called 'retail' and 'institutional'. The company has bagged a tender for diesel supplies to the Bangalore Metropolitan Transport Corporation (BMTC), EOL and Castrol India Ltd signed an agreement for sale of Castrol lubricants through Essar Oil fuel outlets throughout the country during the year 2004.

In the year 2005, the Company had entered into an agreement with the Myanmar Government for exploration and production of two oil blocks there. The company had resumed work on the refinery in March 2005. Essar Oil is all set to commission its USD 2.2-billion 10.5-million-tonne (mt) refinery at Vadinar in Gujarat in the year 2006. EOL has started supplying Liquefied Petroleum Gas (LPG) and Kerosene during the year 2007 to PSUs for sale through the Public Distribution System. The Company has begun the implementation of the up-gradation of base refinery by addition of the following units i.e. Delayed Coker, VGO Hydrotreater, second Diesel Hydrotreater (High Pressure), ATF Hydrotreater and three small units Amine Regeneration Unit, Sour Water Stripper Unit and ATF Merox Units. This will enable the Refinery to process very heavy and sour crudes to produce products meeting exacting current international standards. In petroleum terminology this would translate into increasing the 'Nelson's complexity index from 6 to 12'. Simultaneously, the Company would also be de-bottlenecking the primary units (CDU/VDU), which will increase the refining capacity to 16 MMTPA.

World renowned Technology providers and consultants, UOP have completed the configuration study with the objective of processing heavy, sour crudes to produce international quality petroleum products while expanding minimum energy and protecting and preserving our environment. The Company has already executed contracts with key process licensors (UOP, Jacobs and ABB) who have made significant strides in completing the Basic Engineering work for these Units. Contracts have also been executed for Detailed Engineering, Procurement of Equipment and Construction of the Refinery, and the Contractors have received firm bids for equipment with long lead delivery periods. The cost of the proposed expansion and up-gradation of the company is estimated at USD1.2 billion. The Company has targeted to complete the expansion project by December 2009.

Oil to the rescue - may fall below 100 - prediction

There may be some good news for oil companies which are still reeling under losses. A Mecklai Financial report has forecast that West Texas Intermediate, a benchmark in global oil pricing, will fall to under $100 a barrel, compared to around $124 a barrel at present.

However, the relief may be temporary since prices are expected to return to over $120 a barrel level by December 2009.

A dip in oil prices by the end of 2008 will come along with an overall decline in agricultural commodity prices, which have been giving a tough time to policymakers due to their impact on inflation. Mecklai's analysis of data since 1970 shows that a bull run in farm commodities lasts between one and two years.

So the current run in crop prices, which started in 2005, with one commodity after another taking turns in rising, will be over by July. In addition, the report said, that the analysis also coincides with the view that there is a negative co-relation between commodity prices and dollar, which will strengthen.

But what may not be good news for Indian policymakers who are trying to combat inflation are the projections on the rupee. According to the analysis, at the end of December 2008, the rupee is expected to range between 41.75 and 43.25 against the dollar. But it is likely to appreciate to 38.05-40.10 against the US currency in December 2009, the report prepared in May said.

"The sentiment will be rocky. Inflows will come back since people are looking to invest in India," said Jamal Mecklai, chief executive officer of Mecklai Financial. At the same time inflation, trade deficit and politics will weigh on the markets, he said, while predicting that the Indian currency will trade in the 39-43 range against the dollar.


via BS

Chidambaram - sorry, I am clueless

The government on Friday conceded that it could do little to tame inflation that has already breached the 8 per cent mark on the back of a persistent rise in global commodity prices.

"There is yet no sign of a decline in the inflation rate. We do not know if we have peaked yet," Finance Minister P Chidambaram said, after latest price data showed the provisional rate of inflation for the week ended May 17 stood at 8.1 per cent, up from 7.8 per cent a week earlier.

The minister’s comments contrast his earlier stance a couple of weeks of ago when he said that the inflation rate could already be tapering off.

Worse, actual estimates that follow with a time lag have been turning out to be much higher, and going by the trend so far, the inflation rate might have already crossed 9 per cent.

The spike in prices not only squeezes people’s real incomes, but for million of middle class Indians it points to increased financial hardship as a rising inflation rate forces interest rates to move up and add to the repayment burden on their housing and other consumer loans.

The inflation numbers overshadowed news that the Indian economy grew faster than the government’s own forecast for the fiscal year ended March 2008. Latest government statistics on national income showed the gross domestic product grew 9 per cent — compared with an earlier forecast of 8.7 per cent — helped by robust growth in agriculture.

The GDP numbers, however, pointed to a sharper slowdown in manufacturing that has been hemmed by hardening interest rates.

Chidambaram described the price situation as worrisome and attributed a part of it to persistent rise in global crude prices, which are hovering over $130 a barrel.

Pressure is mounting on the government to revise retail prices of petrol, diesel and LPG, currently sold at highly subsidized rates — a practice threatening to bankrupt state-owned oil firms. The government is debating how to protect oil firms, while minimising the impact of any price rise on consumers.

The impact of any hike in retail fuel prices will have impact going beyond the inflation rate. "Higher oil prices look set to weaken growth by squeezing profits, widening trade deficit and reducing consumer purchasing power as a result of higher inflation," said Sonal Varma, analyst at Lehman Brothers.

via HT

One class of citizens can remain happy - Farmers

Finance Minister P. Chidambaram on Wednesday asked three state-run banks in West Bengal to expedite the process of cancelling farm loans.

His directions came during a video conference with the officials of the United Bank of India, Allahabad Bank and UCO Bank. He asked them to finalise the list of farmers eligible for loan waiver by June 20.

More than 40 million farmers across the country are expected to benefit from the scheme for which the central government has set aside over Rs.700 billion.

According to a UCO Bank official who attended the video conference, Chidambaram asked the banks to complete the whole process soon so that new loans could be given to those farmers from July 1.

Nifty June 2008 futures at discount

Turnover in F&O segment surges

Nifty June 2008 futures were at 4580.50, at a discount of 5.10 points as compared to spot closing of 4585.60.

The NSE futures & options (F&O) segment turnover was Rs 48,378.31 crore, which was higher than Rs 40,448.71 crore on Tuesday, 3 June 2008.

Oil & Natural Gas Corporation June 2008 futures were at discount at 878.10 compared to the spot closing of 886.20.

Tata Steel June 2008 futures were at premium at 820 compared to the spot closing of 813.75.

Infosys Technology June 2008 futures were at premium at 1884.90 compared to the spot closing of 1870.70.

In the cash market, the S&P CNX Nifty lost 130.30 points or 2.76% at 4585.60.

BSE Bulk Deals to Watch - June 4 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/6/2008 523269 ADVANI HOT R AAYUSH KABRA B 365000 99.35
4/6/2008 523269 ADVANI HOT R KAMAL KABRA S 237500 99.35
4/6/2008 532975 AISHWARYA TE MUKUL R. TIBREWALA B 66350 78.83
4/6/2008 532975 AISHWARYA TE SHAILESH M. NISSAR B 151554 83.34
4/6/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. B 83595 84.00
4/6/2008 532975 AISHWARYA TE MUKUL R. TIBREWALA S 66350 78.21
4/6/2008 532975 AISHWARYA TE SHAILESH M. NISSAR S 151554 83.44
4/6/2008 532975 AISHWARYA TE PRABHUDAS LILLADHER PVT. LTD. S 83595 84.05
4/6/2008 532975 AISHWARYA TE ASIAN FINANCIAL SERVICES LTD S 100000 82.84
4/6/2008 532975 AISHWARYA TE AMPOULES AND AUTO PVT LTD S 102703 84.64
4/6/2008 532981 ANU LABS H.K.STOCK SERVICES PVT. LTD. B 146867 276.57
4/6/2008 532981 ANU LABS KASHISH FINSTOCK B 95000 270.77
4/6/2008 532981 ANU LABS PUJA TAPARIA B 65000 276.71
4/6/2008 532981 ANU LABS PRABHUDAS LILLADHER PVT. LTD. B 95008 273.59
4/6/2008 532981 ANU LABS N D NISSAR B 98247 273.84
4/6/2008 532981 ANU LABS VIVEK STOCK BROKERS PVT LTD B 82981 275.37
4/6/2008 532981 ANU LABS AMPOULES AND AUTO PVT LTD B 110500 279.19
4/6/2008 532981 ANU LABS PINKEY POPATLAL JAIN B 97537 276.34
4/6/2008 532981 ANU LABS H.K.STOCK SERVICES PVT. LTD. S 86867 280.91
4/6/2008 532981 ANU LABS PUJA TAPARIA S 65000 278.39
4/6/2008 532981 ANU LABS PRABHUDAS LILLADHER PVT. LTD. S 95008 274.12
4/6/2008 532981 ANU LABS N D NISSAR S 98247 273.98
4/6/2008 532981 ANU LABS SBI MUTUAL FUND AC STAF 1 SCHEME 159 S 75000 276.23
4/6/2008 532981 ANU LABS VIVEK STOCK BROKERS PVT LTD S 82981 277.67
4/6/2008 532981 ANU LABS SBI MUTUAL FUND MAGNUM MIDCAP FUND S 233678 264.11
4/6/2008 532981 ANU LABS SOPHIA GROWTH A SHARE CLASS S 125000 274.47
4/6/2008 532981 ANU LABS SBI MUTUAL FUND STAF 1 S 75000 268.22
4/6/2008 532981 ANU LABS PINKEY POPATLAL JAIN S 97537 275.37
4/6/2008 509728 BHURUKA GAS SATAYANARAYAN AGARWAL S 130000 20.92
4/6/2008 531137 GEMSTONE INV PREM M PARIKH B 25000 22.50
4/6/2008 531137 GEMSTONE INV BHAVESH PRAKASH PABARI S 45026 22.44
4/6/2008 532980 GOKUL REFOIL MANSUKH STOCK BROKERS LTD B 209156 206.96
4/6/2008 532980 GOKUL REFOIL R M SHARES TRADING PVT LTD B 385939 210.28
4/6/2008 532980 GOKUL REFOIL SAM GLOBAL SECURITIES LTD B 320734 206.81
4/6/2008 532980 GOKUL REFOIL B K SHAH CO B 172575 200.88
4/6/2008 532980 GOKUL REFOIL ASHOK FINSTOCK LTD B 333909 215.30
4/6/2008 532980 GOKUL REFOIL MANSUKH STOCK BROKERS LTD S 209156 206.19
4/6/2008 532980 GOKUL REFOIL R M SHARES TRADING PVT LTD S 385939 210.18
4/6/2008 532980 GOKUL REFOIL SAM GLOBAL SECURITIES LTD S 320734 206.53
4/6/2008 532980 GOKUL REFOIL B K SHAH CO S 143168 200.47
4/6/2008 532980 GOKUL REFOIL ASHOK FINSTOCK LTD S 333909 217.85
4/6/2008 532909 GRABAL ALOK INDEX EQUITIES P.LTD. S 124500 120.02
4/6/2008 532187 INDUS IND BK LOTUS GLOBAL INVESTMENTS LTD B 1784700 72.15
4/6/2008 501209 MAST MEDI SY BAKLIWAL INVESTMENT B 30000 40.00
4/6/2008 512047 NATRAJ FIN NILESH RASIKLAL PANDYA B 30500 65.63
4/6/2008 532884 REFEX REFRIG HIMAT PARSHOTTAMBHAI JATANIA B 100000 224.25
4/6/2008 531324 ROSELABS FIN RAMBHABA HLDG. TRDG. CO.PVT. B 50000 14.00
4/6/2008 531324 ROSELABS FIN YASH MANAGEMENT AND SATELLITE LTD B 255300 13.98
4/6/2008 531324 ROSELABS FIN MADHUDEVI SUNILKUMAR PODDAR S 180000 13.97
4/6/2008 514304 S. KUMARS NAT ICG Q LIMITED B 6319379 104.50
4/6/2008 514304 S. KUMARS NAT HSBC FINANCIAL SERVICES MIDDLEEAST LIMITED S 6319379 104.50
4/6/2008 531898 SANGUINE MD CHINTAN BHAIDANI S 42674 26.43
4/6/2008 513216 UTTAM GALVA KSHITIJ RAJKUMAR SUREKA B 732861 43.29

NSE Bulk Deals to Watch - June 4 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-JUN-2008,BBL,BHARAT BIJLEE LTD,ARISAIG PARTNERS (ASIA) PTE LTD. A/C ARISAIG INDIA FUND LTD.,BUY,69434,1822.00,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,AMBIT SECURITIES BROKING PVT. LTD.,BUY,195471,205.76,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,ASHOKA FINSTOCK LTD,BUY,174673,216.77,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,243308,205.17,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,B K SHAH CO KETAN BHAILAL SHAH,BUY,187829,196.77,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,CPR CAPITAL SERVICES LTD.,BUY,218229,207.32,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,DIPAK RAMANBHAI RATHOD,BUY,186722,211.82,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,DYNAMIC STCOK BROKING (I) PVT LTD,BUY,165808,205.82,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,232785,194.91,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,144803,210.92,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,283130,200.11,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,MANIPUT INVESTMENTS PVT LTD,BUY,136887,202.73,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,MANSUKH SECURITIES & FINANCE LTD,BUY,137992,206.96,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NAMAN SECURITIES & FINANCE PVT LTD,BUY,281940,206.65,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NIMIT JAYENDRA SHAH,BUY,190635,201.20,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NISSAR BROTHERS,BUY,191171,200.80,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,PACIFIC CORPORATE SERVICES LTD,BUY,1025000,210.51,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,PAN EMAMI COSMED LTD,BUY,171362,198.63,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,PRASHANT JAYANTILAL PATEL,BUY,550922,202.68,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,R APPALA RAJU,BUY,351000,212.02,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,R.M. SHARE TRADING PVT LTD,BUY,417078,209.13,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SANJAY BHANWARLAL JAIN,BUY,375580,211.50,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SMC GLOBAL SECURITIES LTD.,BUY,216936,208.29,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SUMIT BAJLA,BUY,200000,216.87,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SURESH U.TREVADIA,BUY,149190,210.68,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TASNEEM K. MASTER,BUY,170858,204.06,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TIRUPATI ONLINE,BUY,475488,205.36,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TRANSGLOBAL SECURITIES LTD.,BUY,506006,202.72,-
04-JUN-2008,MAXWELL,Maxwell Industries Ltd.,JAIKUMAR K PATHARE HUF,BUY,1261991,16.60,-
04-JUN-2008,PTL,PTL Enterprises Limited,APURVA COMMODITIES PRIVATE LIM,BUY,384834,27.31,-
04-JUN-2008,PTL,PTL Enterprises Limited,KUBERSWAMY ASHUTOSH GONSULTANTS PVT LTD,BUY,50000,25.69,-
04-JUN-2008,UTTAMSTL,Uttam Galva Steels Limite,KSHITIJ RAJKUMAR SUREKA,BUY,800045,43.32,-
04-JUN-2008,BBL,BHARAT BIJLEE LTD,DSP MERRILL LYNCH MUTUAL FUND,SELL,69175,1822.00,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,AMBIT SECURITIES BROKING PVT. LTD.,SELL,195471,206.12,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,ASHOKA FINSTOCK LTD,SELL,174673,218.58,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,243308,205.52,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,B K SHAH CO KETAN BHAILAL SHAH,SELL,248810,198.19,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,CPR CAPITAL SERVICES LTD.,SELL,218229,207.39,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,DIPAK RAMANBHAI RATHOD,SELL,186722,212.44,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,DYNAMIC STCOK BROKING (I) PVT LTD,SELL,165808,206.08,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,232785,194.74,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,INDIA MAX INVESTMENT FUND LTD,SELL,200665,210.79,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,144803,212.06,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,283130,200.45,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,MANIPUT INVESTMENTS PVT LTD,SELL,136887,203.02,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,MANSUKH SECURITIES & FINANCE LTD,SELL,137992,208.43,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NAMAN SECURITIES & FINANCE PVT LTD,SELL,281940,206.71,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NIMIT JAYENDRA SHAH,SELL,190635,200.05,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,NISSAR BROTHERS,SELL,191171,201.04,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,PAN EMAMI COSMED LTD,SELL,50000,181.78,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,PRASHANT JAYANTILAL PATEL,SELL,550922,202.58,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,R APPALA RAJU,SELL,351000,211.06,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,R.M. SHARE TRADING PVT LTD,SELL,417078,209.57,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SANJAY BHANWARLAL JAIN,SELL,375580,211.71,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SMC GLOBAL SECURITIES LTD.,SELL,216936,209.05,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SUMIT BAJLA,SELL,200000,214.39,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,SURESH U.TREVADIA,SELL,149190,210.18,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TASNEEM K. MASTER,SELL,170858,204.12,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TIRUPATI ONLINE,SELL,475488,207.50,-
04-JUN-2008,GOKUL,Gokul Refoils and Solvent,TRANSGLOBAL SECURITIES LTD.,SELL,506006,203.54,-
04-JUN-2008,KOHINOOR,Kohinoor Foods Limited,DEUTSCHE BANK AG, LONDON,SELL,300000,81.00,-
04-JUN-2008,MAXWELL,Maxwell Industries Ltd.,VINAY JAIPAL REDDY,SELL,1261991,16.60,-
04-JUN-2008,PTL,PTL Enterprises Limited,APURVA COMMODITIES PRIVATE LIM,SELL,100000,25.80,-
04-JUN-2008,PTL,PTL Enterprises Limited,KUBERSWAMY ASHUTOSH GONSULTANTS PVT LTD,SELL,371979,27.24,-

Fuel price hike punctures the market

The stock markets fell like ninepins on Wednesday after the government increased the fuel prices with the benchmark Sensex shedding over 440 points, the biggest fall in two months, on heavy selling pressure across counters which was aided by weak European bourses as well.

The 30-share index of the Bombay Stock Exchange ended the day at 15,514.79, lower by 447.77 points, or 2.81 per cent, from its previous close. The biggest fall of the BSE barometer before this was on April 4 when it registered a loss of 489.43 points.

The 50-share S&P CNX Nifty of the National Stock Exchange slumped by 130.30 points or 2.76 per cent to close at 4,585.60 from its last close.

The government today announced a hike petrol and diesel prices by Rs 5 and Rs 3 a litre respectively and initiated a slew of measures in a bid to offset any negative impact of soaring global crude prices on national oil companies.

Marketmen said the hike were higher than expected and the investors feared that the increase would may lead to further inflationary pressures.

The markets were resilient for a while after the announcement of hike in fuel prices but later tumbled as investors resorted to frantic selling pressure as European markets fell sharply in their early trade.

Bourses in Germany, France and London were down by 1.30 per cent to 1.89 per cent.

Foreign institutional investors (FIIs) too were sustained net sellers in equity.

As per provisional figures, FIIs sold shares worth Rs 1,020.70 crore in equity on June 3.

Post Session Commentary - June 4 2008

The market faced the bloodbath during the trading session on the concern of rally of inflation above 10% mark due to the hike in fuel prices by the Union government. The Union Cabinet on Wednesday raised the prices of petrol by Rs5 and diesel by Rs3 due to rising crude oil prices. The price of the domestic cooking gas was also hiked by Rs50 a cylinder. The excise duty on petrol was cut Re1 a litre. Kerosene was exempted. The customs duty on crude was also reduced to nil from 5%. Though the market gained some grounds to pare its losses in the mid session but all of a sudden lost the grip due to fear of inflationary pressures as well as negative cues from the global markets. The market showed no sign of recovery till the close due to heavy selling pressures across the sectoral indices. From the sectoral front, the metal, capital goods, oil & gas and realty stocks faced heavy selling across the counters. The market breadth was weak as 1967 stocks closed in red while 676 stocks closed in green.

The BSE Sensex closed lower by 447.77 points at 15,514.79 and NSE Nifty fell by 130.3 points to close at 4,585.60. The BSE Mid Cap and Small Cap also fell by 149.33 points and 162.03 points to close 6,397.37 and 7,720.26 respectively.

The Metal index fell by 808.93 points to close 15,423.15. Major losers are Sesa Goa (8.83%), Sterlite Inds (6.71%), Jindal Steel (6.25%), Ispat (5.42%), Tata Steel (5.36%), JSW Steel (5.08%), Jindal Saw (4.50%) and Jindal Stainless (4.24%).

The Capital Goods index dropped by 405.43 points at 12,115.82. Losers are Elecon Eng (5.22%), Bhel (4.99%), Suzlon Energy (4.33%), Havells India (4.16%), Lakshmi Machines (4.03%), L&T (2.93%), BEML (2.76%) and ABB (2.73%).

The Oil and Gas index fell by 352.98 points to close at 10,059.51. Scrips that slipped are BPCL (7.84%), Essar Oil (7.24%), Cairn India (7.12%), RNRL (5.38%), Aban Offshore (4.60%), Reliance Industries (4.14%), Gail India (3.75%), IOCL (3.61%) and HPCL (2.90%).

The Realty index declined by 337.05 points to close 6,389.20 as Akruti City (7.57%), Indbul Real (7.29%), Omaxe (5.61%), Unitech (5.52%), Ansal Infra (4.86%) and Sobha Dev (4.78%) closed in red.

From the IT baskets, Mosear Baer (7.10%), I-Flex (6.40%), Niit Techno (5.97%), Aptech (4.58%), Tech Mahindra (4%), Finance Tech (2.91%), HCL Tech (1.68%), Wipro (1.27%).

The Auto index slipped by 144.46 points at 4,225.59 as Maruti Suzuki (5.07%), Tata Motors (4.87%), Ashok Leyland (4.73%), Escorts (4.66%), Bharat Forge (3.43%), Apollo Tyres (2.52%) and MRF (1.64%) closed in negative.

Market stays under pressure for third straight day

Local benchmarks stayed under pressure for third straight day today marred by fears of further spike in inflation to a multiyear high post fuel price hike announced during the day. Weak global markets also played the spoilsport. The market witnessed choppy swings throughout the day. Stocks across the board were hammered brutally with all sectoral indices on BSE suffering losses.

The market had witnessed a short lived recovery in early afternoon trade soon after the Cabinet Committee on Political Affairs (CCPA) approved the long awaited hike in fuel prices.

The 30-share BSE Sensex tumbled 447.77 points or 2.81% at 15,514.79. The barometer index swung wildly in a range of 550.56 points between the day's high and low of 15,992.90 and 15,442.34 respectively.

The BSE Sensex has now eroded 900.78 points or 5.48% from 16,415.57 in just three trading days.

The Sensex has now slumped 5691.98 points or 26.84% from its all time high of 21,206.77, struck on 10 January 2008. However it is still up 705.3 points or 4.76% from its recent low of 14,809.49 touched on 17 March 2008.

The broader based S&P CNX Nifty was down 130.3 points or 2.76% at 4,585.60. Nifty June 2008 futures were at 4580.50, a discount of 5.10 points as compared to spot closing.

The BSE Mid-Cap index down 2.29% to 6397.37 and BSE Small-Cap index down 2.06% to 7,720.26. Both these indices outperformed Sensex.

The market breadth was weak on BSE with 676 shares advancing as compared to 1967 that declined. 76 remained unchanged.

The BSE clocked the turnover of Rs 5,551 crore today as compared to Rs 5,252.69 crore on 3 Jun 2008.

The NSE futures & options (F&O) segment turnover was Rs 48,378.31 crore, which was higher than Rs 40,448.71 crore on Tuesday, 3 June 2008.

Among the sectoral indices on BSE, the BSE Realty index (down 5.01% at 6,389.20), BSE Metal index (down 4.98% to 15,423.15), BSE Power (down 4.42% to 2,632.37), The BSE Oil & Gas index (down 3.39% to 10,059.51), BSE Auto (down 3.31% at 4,225.59), BSE Capital Goods index (down 3.24% at 12,115.82), BSE Consumer Durables index (down 3.14% to 4,089.71) underperformed Sensex.

However the BSE FMCG index (down 1.5% to 2,367.45), BSE PSU index (down 1.93% to 6,598.43), BSE Health Care index (down 2.19% at 4,264.93), BSE Bankex (down 2.53% at 7,210.37), BSE IT ndex (down 2.54% to 4,397.35), BSE TecK index (down 2.67% to 3,407.94), outperformed the Sensex.

In a crucial development, government today agreed to raise its petrol and diesel prices by about 10% in an attempt to curb mounting losses of state-owned refiners thereby stoking inflation and risking a political backlash. After 10 days of debate over the price increase, the Cabinet also agreed to cut the import duty on crude oil to support state run refining and retailing firms.

Customs duty on crude was also reduced to nil from 5%. The duty cuts would amount to Rs 22,660 crore in revenue loss, the Revenue Secretary said.

Among the 30-member Sensex pack, 29 declined while India's largest oil exploration company in terms of market capitalisation ONGC was the lone gainer. The stock surged 5.31% to Rs 887.05 on speculation that it may have to absorb lower subsidy burden after today's fuel price hike.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) sumped 4.14% to Rs 2296.70.

India's largest real estate developer in terms of market capitalisation DLF shed 4.7% to Rs 555.10. The company’s net profit rose 536.6% to Rs 2590.28 crore on 388.1% rise in sales to Rs 5532.88 crore in FY 2008 over FY 2007.

Metal stocks declined. Sterlite Industries (down 6.71% to Rs 841.40), Sesa Goa (down 8.83% to Rs 3568.70), National Aluminium Company (down 1.71% to Rs 478.30), Tata Steel (down 5.36% to Rs 815.60), Hindalco Industries (down 3.09% to Rs 178.60), Steel Authority of India (down 1.69% to Rs 153.75), edged lower.

Power stocks declined. Reliance Power (down 7.31% to Rs 202.80), Tata Power Company (down 7.06% to Rs 1,165.85), Reliance Infrstructure (down 4.89% to Rs 1070.10), Powergrid Corporation of India (down 2.97% to Rs 88.30) edged lower.

Realty stocks slumped. Lanco Infratech (down 12.27% to Rs 416.50), Indiabulls Real Estate (down 7.29% to Rs 412.05) and Unitech (down 5.52% to Rs 207.20) edged lower.

State run oil & gas stocks erased early gains to post losses despite fuel price hike. BPCL (down 7.84% to Rs 324.05, off day's high of Rs 371.60), Indian Oil Corporation (down 3.61% to Rs 418.20, off day's high of Rs 452.90), HPCL (down 2.9% to Rs 241.40, off day's high of Rs 259.90) edged lower.

The OMCs have so far reported losses of over Rs 2.25-lakh crore due to the high crude prices and in the absence of revision in the domestic retail prices. They have said they will run out of cash to import crude if the government fails to bail them out.

Auto stocks were subdued post oil price hike announcement. Hero Honda Motors (down 4.26% to Rs 764), Mahindra & Mahindra (down 3.2% to Rs 571.50), Tata Motors (down 4.87% to Rs 542.50), Maruti Suzuki India (down 5.07% to Rs 746.55), and Bajaj Auto (down 4.91% to Rs 551.60) edged lower.

Ambuja Cements (down 5.46% to Rs 87.50), HDFC Bank (down 5.19% to Rs 1,215.95), Bharat Heavy Electricals (down 4.99% to Rs 1471.25), DLF (down 3.85% to Rs 560), edged lower from Sensex pack.

IFCI clocked the highest volume of 1.78 crore shares on BSE. Reliance Petroleum (1.56 crore shares), Ispat Industries (1.38 crore shares), Reliance Natural Resources (95.34 lakh shares) and Essar Oil (91.05 lakh shares) are among other volume toppers in that order.

ONGC clocked the highest turnover of Rs 313.48 crore on BSE. Reliance Industries (Rs 308.80 crore), Reliance Petroleum (Rs 268.68 crore), Essar Oil (Rs 220.61 crore) and Reliance Capital (Rs 216.73 crore) are among other turnover toppers in that order.

Anu’s Laboratories settled at a premium of 27.64% at Rs 268.05 on its debut on BSE. It had fixed the offer price of Rs 210.

Gokul Refoils and Solvent settled at a discount of 7.15% to Rs 181.05 on its debut on BSE. It had fixed the offer price of Rs 195.

European markets which opened after Indian markets were weak. Key benchmark indices in France, Germany and UK were down by between 1.42% to 2.16%.

Asian markets were trading mixed today, 4 June 2008. Key Asian indices - Nikkei 225 index, Taiwan's Taiwan Weighted, South Korea's Seoul Composite rose between 0.56% to 1.59%.

However, Singapore's Straits Times, Hang Seng and China's Shanghai Composite were down by between 0.83% to 1.93%.

US markets declined in volatile session yesterday, 3 June 2008 led by growing speculation that Lehman Brothers will be forced to raise more capital and a drop in oil prices pushed down energy companies. The Dow Jones industrial average declined 100.97 points, or 0.81%, to 12,402.85. The S&P 500 index slipped 8.02 points, or 0.58%, to 1,377.65, while the Nasdaq Composite index was down 11.05 points, or 0.44%, to 2,480.48.

US light crude for July delivery fell 34 cents to $123.97 a barrel today, 4 June 2008, triggered by a rallying dollar as traders awaited U.S. data expected to show rising oil stocks. London Brent crude for July delivery fell 38 cents to $124.20 a barrel.

Meanwhile, mutual funds have reportedly managed to increase their assets under management (AUM) by 5.36% in May 2008, helped by fresh investments in fixed income funds. The collective AUM rose by 30,576.72 crore in May 2008, according to the data released by the Associations of Mutual Fund in India (AMFI).

Market may remain volatile

Market may open on a weak note as Asian indices are trading in the mix in morning trades followed by overnight loss in the US markets may keep the market volatile. Pressure on the liquidity front due to FIIS are net sellers of equity could make the investors jittery. On the upside, the Nifty could test the recent high around the 4750 level and may witness support around the 4675 level. The Sensex has a likely support at 15670 and may test higher levels of 16110.

US indices finished on a negative note on Wednesday, with the Dow Jones loosing 101 points to close at 12403 while the Nasdaq slipping by 11 points at 2480 amid weak tech stocks.

Losers outpaced the gainers among the Indian stocks trading on the US bourses. Among the major losers Dr Reddy's, HDFC Bank, Infosys and Satyam lost above 2-3% each while Tata Motors, ICICI Bank, VSNL and Patni Computers fell around 1% each, However Dr Reddy, MTNL and Rediff were marginally up.

Crude oil prices in the global market declined yesterday. The Nymex light crude oil for July series slipped by $1.06 at $126.70 per barrel. In the commodity segment, the Comex gold for August delivery lost by $11.50 to settle at $885.50 an ounce.

Trading Call - Aarti Industries

Buy Aarti Industries SL - Rs 31 Target - Rs 44

US Market continue to succumb to financials

Reports of Lehman Brothers planning to raise billions of dollars put pressure on market

US Market posted triple digit losses for the second straight day today, Tuesday, 03 June, 2008 after market traded in volatile session for the entire day. The financial sector continued to be the main laggard today as renewed angst over the possibility of further writedowns in the sector. Nine out of tens sectors posted losses today led by the energy sector as crude prices registered a massive drop. Healthcare was the lone gainer for the day.

With a better than expected economic report, market started off on a positive note today, but continued to trade in a volatile fashion. But with some pressure in the financial sector front, indices soon slipped into the red. At the end, the Dow Jones industrial Average ended the day with a loss of 101 points at 12,402. The Nasdaq Composite Index, finished lower by 11 points at 2,480. S&P 500 finished lower by 8 points at 1,377.

Twenty out of the thirty Dow stocks ended in the green today. General Motors and WalMart were the largest gainers while Boeing was the largest loser.

The only economic news of the day in US featured that April factory orders rose 1.1%, after increasing 1.5% in March. The result was better than the expected decline of 0.1%. Orders increased 2.6% when excluding transports.

Dow component GM announced today that it is shutting down four North American plants that produce trucks and SUVs in response to a shift in consumer preferences on record gasoline prices. The company is reviewing its Hummer brand, including the possibility of a complete sale.

Market came under selling pressure today on news that Lehman Brothers might raise billions of dollars of additional capital.

In a speech to international bankers, Federal Reserve chief Ben Bernanke signaled discomfort with the weak U.S. dollar, suggesting possible action by the Fed to support the weak greenback.

Crude oil prices registered drastic drop today. The strengthening of the dollar was the main reason behind the fall in prices of crude oil. The dollar rallied today after Federal Reserve Chairman Ben Bernanke signaled he's finished cutting U.S. borrowing costs for now thereby boosting the dollar. Crude prices dropped more than 3% today. Crude-oil futures for light sweet crude for July delivery today closed at $124.31/barrel (lower by $3.45/barrel or 2.7%) on the New York Mercantile Exchange.

Energy and metals dropped after Bernanke said the Fed is working with the Treasury to carefully monitor developments in foreign-exchange markets and is aware of the effect of the dollar's decline on inflation. At the currency markets on Tuesday, the dollar bounced firmly higher. The dollar index, which tracks the greenback against a basket of six major currencies, was at 73.317, compared with 72.72 before Bernanke's morning speech.

For tomorrow, the economic calendar features the release of the ADP May private employment report followed by the ISM services and weekly crude inventory reports. Major retailers will receive added attention, as traders digest May same-store sales.

Pre Session Commentary - June 4 2008

The Indian Market is likely to have positive opening due to favoring cues from the Asian markets. On Tuesday, the Indian market made a late stage recovery to pare most of its initial losses to close on moderately lower. The market tumbled at the start due to the worries of political uncertainty that Left may withdraw its support from the UPA over the concern of hiking domestic fuel price. Also, the lowering of ratings on Lehman Brothers Inc., Merrill Lynch & Co. Inc. and Morgan Stanley by Standard & Poor''s Ratings Services also adds to the negative sentiment in the market.

However, the bourses staged a recovery later as buying emerged after news that the Cabinet will meet today to decide on raising fuel prices. From the sectoral front, the cement shares gained some grounds on the back of reports that the government has restored benefits under the duty entitlement pass book (DEPB) scheme on export of cement, with immediate effect.

The BSE Sensex closed lower by 100.62 points at 15,962.56 and NSE Nifty fell by 23.70 points to close at 4,715.9. We expect that the market may remain cautious as it may decline further during the trading session.

On Tuesday, the US market was closed in negative territory. The Dow Jones Industrial Average (DJIA) closed lower by 100.97 points at 12,402.85 along with NASDAQ dropped by 11.05 points to close at 2,480.48 and S&P 500 index fell by 8.02 points to close at 1,377.65.

Major Indian ADRS closed on negative a note. In technology sector, Satyam fell by 2.25% along with Infosys by 2.09% and Patni Computers by 1.92%. In banking sector, HDFC bank and ICICI bank dropped by (3.91%) and (1.22%) respectively. In telecommunication sector, Tata Communication decreased by (0.64%). Sterlite industries slipped by (4.36%).

Today the major stock markets in Asia are trading mixed. Japan Nikkei is trading higher by 175.23 points at 14,384.40 along with Taiwan Weighted trading up by 38.81 points at 8,618.24 while Hang Seng is trading lower by 26.40 points at 24,349.36.

The FIIs on Tuesday stood as net seller in equity. The gross equity purchased was Rs2,483.20 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs2,832.50 Crore and gross debt sold stood at Rs0.00 Crore. Therefore, the net investment of equity reported was (Rs349.30 Crore) and net debt was Rs0.00 Crore.

Today, Nifty has support at 4,617 and resistance at 4,806 and BSE Sensex has support at 15,641 and resistance at 16,387.

Market to stay cautious ahead of oil price decision

Local equities are likely to stay cautious ahead of the crucial decision on oil price later in the day today. As per reports, the government is likely to announce a hike in fuel prices to bail out state-owned oil marketing companies (OMCs) that are suffering massive financial losses due to skyrocketing international crude prices.

The decision will be first taken at a meeting of the Cabinet Committee on Political Affairs (CCPA) scheduled for the morning and later ratified by the Cabinet.

However, the government has been in a fix on the oil price issue and has failed to take any decision on fears of opposition from the public as well as the Left parties which are offering outside support. The Left parties have warned of a nationwide protest against any move to raise the prices of fuel. They have instead argued in favour of restructuring the tax on petrol and diesel.

In coming weeks, markemen would be eyeing two things. One would be progress of monsoon and second would be the advance tax figures.

Asian markets were trading mixed today, 4 June 2008. Nikkei 225 index (up 1.23% at 14,384.40), Taiwan's Taiwan Weighted (up 0.45% at 8,618.24), Singapore's Straits Times (up 0.12% at 3,157.65), South Korea's Seoul Composite (up 0.51% at 1,828.66), edged higher.

However, China's Shanghai Composite (down 1.14% at 3,397.33) and Hang Seng (down 0.11% at 24,349.36) slipped.

US markets declined in volatile session yesterday, 3 June 2008 led by growing speculation that Lehman Brothers will be forced to raise more capital and a drop in oil prices pushed down energy companies. The Dow Jones industrial average declined 100.97 points, or 0.81%, to 12,402.85. The S&P 500 index slipped 8.02 points, or 0.58%, to 1,377.65, while the Nasdaq Composite index was down 11.05 points, or 0.44%, to 2,480.48.

Back home, the market staged a smart intra-day rebound in second half of the day’s trading session yesterday, 3 June 2008, led by recovery in Reliance Industries (RIL). Panic selling in early trade by wary investors kept market depressed in the first half. The 30-share BSE Sensex settled 100.62 points or 0.63% lower at 15,962.56 and the broader based S&P CNX Nifty fell 23.70 points or 0.5% at 4,715.90, on that day.

As per provisional data, foreign funds sold shares worth a net Rs 1020.70 crore yesterday, 3 June 2008. Domestic funds bought shares worth a net Rs 262.49 crore on that day.

Foreign institutional investors (FIIs) were net sellers of Rs 858.65 crore in the futures & options segment yesterday, 3 June 2008. They were net sellers of index futures to the tune of Rs 1394.78 crore and bought index options worth Rs 548.79 crore. They were net sellers of stock futures to the tune of Rs 96.59 crore and bought stock options worth Rs 83.93 crore.

Meanwhile, mutual funds have reportedly managed to increase their assets under management (AUM) by 5.36% in May 2008, helped by fresh investments in fixed income funds. The collective AUM rose by 30,576.72 crore in May 2008, according to the data released by the Associations of Mutual Fund in India (AMFI).

Morning Call - June 4 2008

Market Grape Wine :

In House :

Nifty at a support of 4630 & 4668 levels with resistance at 4745 , 4780 & 4820 levels .

Buy : Divis above 1564 target 1600 s/l of 1549

Buy : PunjLLoyd above 285 target of 298 s/l of 279.5

Out House :

Markets at a support of 15786 & 15643 resistance at 16061 & 16161 levels .

Buy : INFY & Satyam

Buy : LT & Bhel

Buy : IOC & BPCL

Buy : Suzlon & NTPC

Buy : Praj , JP and Unitech delivery call with medium term perspective

Buy : HLL

Buy : ITC

Buy : on BSE Suashis Diamond s/l of 368 target 418 Bullet

Dark Horse : HLL , Suzlon , HDFC , ITC , INFY , RIL & LT

Trading Calls - June 4 2008

Nifty (4716) Sup 4630 Res 4800

Buy IOC (433)
SL 428 Target 444, 447

Buy HPCL (247)
SL 242 Target 257, 261

Buy Sterlite (901)
SL 894 Target 920, 923

Sell IVRCL (400)
SL 407 Target 388, 385

Sell Educomp (3793)
SL 3818 Target 3743, 3733

Taking away some fire!

Contentment consist not in adding more fuel, but in taking away some fire

The fuel hike measure to be decided today is something the markets have to contend with. It’s a bit of a paradox as any increase in fuel prices will help oil PSUs (to a small extent) while at the same time, the move could push inflation towards the double-digit mark. The government will have to do some balancing act (in sentiment at least). What kind of package the Government has in store for the state-run oil firms, we may know by the end of the day.

The market managed to stage a smart comeback after being pounded in early morning trades. Short-covering in the afternoon lifted the key indices from the day's low. The bounce was particularly remarkable considering that most Asian markets were down sharply. It would be interesting to see if the bulls are able to continue the recovery process after the recent reversals. The market breadth remained negative and the sell-off came on much higher volume. The market is expected to go down further given the nervousness over the impending fuel price hike and its fallout on inflation and economic growth.

There are also murmurs of political instability with the Left Front reportedly planning to consider its ties with the Congress-led coalition regime. With general elections due in the first half of next year, this may not happen. In any case, the market is more worried about high oil prices, soaring inflation, slowing GDP growth, global financial turmoil and foreign capital outflows. Though some of these negative factors have already been factored in, each day seems to bring in fresh set of bad news. Technically too, the market appears to be a bit weak. On the Nifty, 4630 is seen as the next big support. Below this level though there could be danger.

Coming to today's outlook, we expect a cautious opening on the back of the overnight fall in US stocks and mixed trend in Asian markets.

FIIs were net sellers to the tune of Rs10.21bn (provisional) in the cash segment yesterday while the local institutions poured in Rs2.62bn. In the F&O segment, foreign funds were net sellers at Rs8.59bn. On Monday, FIIs were net sellers of Rs3.49bn in the cash segment. Mutual funds offloaded shares worth Rs1.57bn.

AIA Engineering, Orbit Corp, Royal Orchid Hotels and Shasun Chemicals will declare their results today. AIA Engineering will also consider a stock split.

Shares of Anu’s Laboratories Ltd. and Gokul Refoils & Solvent Ltd. will get listed today.

Asian stocks rose today, led by technology and automobile companies, as the dollar rallied after Federal Reserve Chairman Ben Bernanke signaled he is done cutting interest rates and the region's vehicle makers boosted US sales.

Sony and Toyota gained after the dollar traded near a three-month high against the yen, boosting the value of the companies' overseas earnings. Honda and Kia Motors rose after Japanese and South Korean automakers outsold the three biggest US manufacturer for the first time.

The MSCI Asia Pacific Index added 0.7% to 150.18 as of 10:40 a.m. in Tokyo, rebounding from yesterday's 1.8% fall. An index of consumer-electronic and car manufacturers rose 2.1%, the largest gain among the benchmark index's 10 industry groups.

Japan's Nikkei 225 Stock Average climbed 0.7% to 14,314.24. Other Asian equity markets open for trading advanced apart from South Korea, the Philippines and China.

US stocks fell for the second day running, as growing speculation that Lehman Brothers will be forced to raise more capital led a slump in financial shares and a drop in oil prices dragged down energy companies.

Federal Reserve Chairman Ben Bernanke's hints that the central bank will stop cutting interest rates also hurt sentiment.

The S &P 500 Index declined 8.02 points, or 0.6%, to 1,377.65. The Dow Jones Industrial Average slipped 100.97 points, or 0.8%, 12,402.85. The Nasdaq Composite Index lost 11.05 points, or 0.4%, to 2,480.48.

Seven stocks fell for every five that rose on the New York Stock Exchange.

Lehman Brothers slid to its lowest level since August 2003 on concern that it may report its first ever quarterly loss. Wachovia declined the most since April on a report billionaire investor Michael Price is betting the stock will drop.

Exxon Mobil and Chevron led energy producers lower as crude declined for the first time in three days.

The Dow struggled in the morning on weakness in select stocks, while the S&P 500 and Nasdaq had gained on the day's economic news and Bernanke's comments on the economy and the dollar. But stocks tumbled in the afternoon, with the Dow losing as much as 150 points before erasing some of those losses.

Between the financial and energy sectors alone, almost 40% of the S&P 500 was under pressure, and with little strength in the technology space to counter that weakness, the major indices had to slip.

US stocks are likely to remain rangebound and choppy. Thursday brings the revised reading on first-quarter productivity, the ISM reading on the services sector and a report from payroll services firm ADP on private sector employment in May. The broader April non-farm payrolls report is due Friday.

GM said it will close four pickup and SUV plants by 2010. It added that higher fuel prices have impacted consumer preferences for vehicles. GM also said it plans to make more fuel-efficient vehicles.

Separately, GM said May North American vehicle sales fell 27.5%, topping forecasts. Among other automakers reporting May sales, Ford Motor said overall sales dropped 16%.

In the day's economic reports, factory orders rose 1.1% in April after increasing 1.5% in March, the government reported. Sales were expected to drop 0.1% in the month.

Meanwhile, Fed chairman Bernanke said the US economy remains under pressure, but hinted that the central bank is unlikely to cut rates again soon, due to rising oil prices and other inflationary pressures. Bernanke was speaking to the International Monetary Conference in Barcelona, Spain, via satellite.

US light crude oil for July delivery fell US$3.45 to settle at US$124.31 a barrel on the New York Mercantile Exchange. The national average price for a gallon of regular unleaded gas rose to US$3.978, AAA said, from US$3.975 Sunday, the 26th record high in 27 days.

The dollar rose versus the euro and the yen, building on recent gains after Bernanke made comments in his speech regarding keeping the US currency strong. Treasury prices rose, lowering the yield on the 10-year note to 3.90% from 3.96%.

COMEX gold for August delivery fell US$11.50 to settle at US$885.50 an ounce.

European shares advanced. The pan-European Dow Jones Stoxx 600 index gained 0.8% to 321.05. The UK's FTSE 100 closed up 0.8% at 6,057.70, while the French CAC-40 rose 1% to 4,983.71, and Germany's DAX 30 inched 0.2% higher to 7,019.13.

In the emerging markets, the Bovespa in Brazil was down 2.6% at 70,011 while the IPC index in Mexico fell 0.45% at 31,493. The RTS index in Russia dropped by almost 1% to 2429 while the ISE National 30 index in Turkey advanced 0.9% to 49,217.

Market may turn choppy again

Weak global cues coupled with all round selling in scrips across the sector dragged the benchmark Sensex to hit an intra-day low of 15,709. However, led by index heavyweight Reliance Industries and other index drivers staged a strong comeback in late afternoon trades. Thus, aiding the key indices to close with minimal losses.

Further the European markets also lifted the sentiment and helped erase notable amount of losses market had recorded earlier.

Finally, the BSE benchmark Sensex ended 100 points lower to close at 15,962 and the Nifty index lost 23 points to close at 4,715.

Overall about 847 stocks advanced; 1,817 stocks declined while 58 stocks remained unchanged. Among the 50-Nifty 30 stocks ended in red and 20 stocks ended in green.

SBI ended flat at Rs1385. The bank announced that it raised interest rates on FCNR, NRE Deposits. The scrip touched an intra-day high of Rs1407 and a low of Rs1365 and recorded volumes of over 4,00,000 shares on BSE.

Rasoya Proteins also ended on a flat note closing at Rs65. The company announced that it signed a power purchase pact with Tata Power. The scrip touched an intra-day high of Rs66 and a low of Rs62 and recorded volumes of over 14,000 shares on BSE.

GMR Industries rallied by over 10% to Rs87 after the company announced that it acquired Alagawadi Bireshwar Sugar. The scrip touched an intra-day high of Rs87 and a low of Rs73 and recorded volumes of over 12,000 shares on BSE.

Indus Fila surged by over 5% to Rs128 as reports stated that the company is planning to invest Rs2bn in retail and set up 30-40 retail outlets across India within a year. The scrip touched an intra-day high of Rs133 and a low of Rs115 and recorded volumes of over 39,000 shares on BSE.

IOC gained by over 3% to Rs433 as reports stated that they are in initial phase of discussions with ITC Ltd for merchandise supplies from the latter’s Choupal Sagar stores for its 2,050 kisan seva kendra (KSK) outlets across the country. The scrip touched an intra-day high of Rs436 and a low of Rs412 and recorded volumes of over 1,00,000 shares on BSE.

Jindal Steel & Power was marginally up by 0.5% to Rs2251. According to reports, the company is planning to build a Rs50bn, 1,080-mw, coal-fired captive power plant in Orissa. The scrip touched an intra-day high of Rs2262 and a low of Rs2161 and recorded volumes of over 1,00,000 shares on BSE.

Tata Motors gained 1.3% to Rs570 after the company on Monday announced that they have acquired the Jaguar Land Rover business from Ford Motor for a net consideration of US$2.3bn. The scrip touched an intra-day high of Rs576 and a low of Rs565 and recorded volumes of over 1,000 shares on BSE.

Bharti Airtel declined by over 4% to Rs841. There were reports that, US based networks security major VeriSign have entered into an exclusive 3 year arrangement with Bharti Airtel for developing specific security solutions for Indian corporates. The scrip touched an intra-day high of Rs868 and a low of Rs834 and recorded volumes of over 4,00,000 shares on BSE.

Infosys Technologies slipped by 2% to Rs1922. According to reports, the company secured patents for mobile tech, holography from the US Patent and Trademark Office. The scrip touched an intra-day high of Rs1950 and a low of Rs1882 and recorded volumes of over 3,00,000 shares on BSE.

Corporate News

Idea approaches Spice Communication for M&A talks. (ET)

Shoba Developers plans to diversify its portfolio through slum redevelopment schemes and SEZ, retail and commercial projects. (DNA)

L&T gets order to supply main power equipments for a proposed 1,600mw power project in Andhra Pradesh. (ET)

ONGC gets regulator approval for stake sale in its KG basin block to Petrobras of Brazil and StatoilHydro of Norway. (ET)

Punj Lloyd acquires 74% stake in UK firm for an undisclosed amount. (BL)

Essar Oil may get only 25% stake instead of 50% in Kenya Petroleum Refinery. (ET)

Karuturi Global plans to raise US$250mn to acquire 7.5 lac acres of land in Ethiopia. (BL)

Indian Cements have crossed break even numbers in the first season of IPL. (BL)

Tata Steel plans to shift Rs25bn titanium projects to Andhra Pradesh or Orissa. (BS)

GMR Industries to buy Alagawadi Bireshwar Sugars Pvt Ltd, a Karnataka based Sugar Company. (BL)

Moody downgrades Tata Motors over the acquisition of JLR to Ba2 from Ba1. (DNA)

ABB wins orders worth Rs2.95bn from JSW Energy. (DNA)

Ranbaxy regains number one spot in domestic market in April, buoyed by 25% growth in anti-infective segment in last three months. (ET)

United Breweries plans to invest Rs5bn over the next three years for capacity expansion. (ET)

Suzlon Energy signs an agreement with US government to generate 20% of its electricity using wind power by 2030. (BS)

Nagarjuna Construction gets four orders worth Rs2.5bn (BS)

Hanung Toys to acquire three overseas companies through deals worth US$30mn. (DNA)

Deepak Fertilizers plans to foray into contract mining operation. (DNA)

Gail Gas applies for a license to set-up CNG station and piped gas networks in six cities. (DNA)

Supreme Court dismisses Reliance Infrastructure plea against MERC. (BS)

Crompton Greaves buys French firm for Rs85mn. (BS)

EADS in talks with Vijay Mallya for business jet liners. (BS)

Ispat Industries plans to buy 40% stake each in three overseas mines of Global Steel Holding. (BS)

Mudra Lifestyle plans to set-up a Greenfield spandex yarn project at Silvassa with investment of Rs3bn. (BS)

NTPC aims to add 7,000mw hydel power projects by 2017. (FE)

Loop Telecom, subsidiary of BPL mobile has initiated talks with international telecom giants to sell majority stake. (ET)

Kirloskar Brothers plans to restructure into nine business segments. (BL)

Allcargo to set up logistic business in the Gulf market. (DNA)

Economic News

Government plans to ask the state governments to cap sales tax on petrol and diesel at 20% and 15% respectively. (ET)

DoT may allow AT&T, DLF, Deustche Telecom-MoserBear and others to bid for 3G spectrum licenses. (ET)

Government withdraws tax refund on cement exports that it had allowed the previous day. (ET)

Cement sales grows 7.9% in May. (ET)

Steel makers won’t hold price line beyond three months, indicates Sajjan Jindal MD of JSW Steel. (BL)

Punj LLoyd

Punj LLoyd

A dull day for bullion metals

Federal Reserve Chairman’s comments take away glitter from precious metals

Precious metals registered drastic drop on Tuesday, 03 June, 2008. The strengthening of the dollar was the main reason behind the fall in prices of bullion metals. The dollar rallied today after Federal Reserve Chairman Ben Bernanke signaled he's finished cutting U.S. borrowing costs for now thereby boosting the dollar and thus eroding the appeal of precious metals as alternative investments. A drop in energy costs also eroded demand for the precious metals as a hedge against inflation.

Comex Gold for August delivery fell $11.5 (1.3%) to close at $885.3 ounce on the New York Mercantile Exchange. It fell to an intra day low of $878. Last week, gold prices ended lower by 4.2%. But for the month of May, it ended with a gain of higher by $22.5 (2.5%). On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped since then.

This year, gold prices have gained 5.7% for the till date against a 6.5% drop for the dollar against the euro. Before May, 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%.

On Monday, Comex silver futures for July delivery fell 7 cents (0.05%) to $16.84 an ounce. Silver has gained 13.6% in 2008 till date. It finished 7.5% lower last week.

Silver prices ended the month of May 2008 with a gain of 2.7%. For April, it closed lower by 5.5%. Silver had 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 Tuesday, the dollar bounced firmly higher. The dollar index, which tracks the greenback against a basket of six major currencies, was at 73.317, compared with 72.72 before Bernanke's morning speech.

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 energy market today, crude price fell below $125 a barrel to close at their lowest level in nearly three weeks, pressured by a rally in the U.S. dollar as traders turned their attention toward the Atlantic hurricane season and natural gas, lifting prices for that commodity by as much as 3%. Crude for July delivery fell $3.45 (2.7%) to finish at $124.31 a barrel on the New York Mercantile Exchange.

The weakening dollar and higher global demand for raw materials have led to records this year for commodities including gold. 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.

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.

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%.

At the MCX, gold prices for August delivery closed lower by Rs 111 (0.9%) at Rs 12,142 per 10 grams. Prices rose to a high of Rs 12,320 per 10 grams and fell to a low of Rs 12,059 per 10 grams during the day’s trading.

At the MCX, silver prices for July delivery closed Rs 52 (0.22%) lower at Rs 23,413/Kg. Prices opened at Rs 23,430/kg and fell to a low of Rs 23,000/Kg during the day’s trading.

Crude takes a deep plunge

Crude oil prices drop by more than 3% but natural gas continues to climb

Crude oil prices registered drastic drop on Tuesday, 03 June, 2008. The strengthening of the dollar was the main reason behind the fall in prices of crude oil. The dollar rallied today after Federal Reserve Chairman Ben Bernanke signaled he's finished cutting U.S. borrowing costs for now thereby boosting the dollar. Crude prices dropped more than 3% today.

Crude-oil futures for light sweet crude for July delivery today closed at $124.31/barrel (lower by $3.45/barrel or 2.7%) on the New York Mercantile Exchange.

Last week, crude prices closed lower by 3.7%. Previously during the month of May, 2008 prices had touched an all time high of $135.09. For the year, crude is up by 29.6% till date. Prices are 91% higher on a yearly basis. .

At the currency markets on Tuesday, the dollar bounced firmly higher. The dollar index, which tracks the greenback against a basket of six major currencies, was at 73.317, compared with 72.72 before Bernanke's morning speech.

Energy and metals dropped after Bernanke said the Fed is working with the Treasury to carefully monitor developments in foreign-exchange markets and is aware of the effect of the dollar's decline on inflation. The falling dollar has helped lead commodities including oil, gold and corn to records this year.

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.

Natural gas rises to the highest since December 2005

Brent crude oil for June settlement today fell $3.44 (2.7%) to $124.58 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 rose to the highest since December 2005 amid increased demand as distributors secure supplies for storage in competition with industrial users. Natural gas for July delivery rose 25.2 cents (2.1%) to settle at $12.221 per million British thermal units.

Against this backdrop, prices for July reformulated gasoline fell by 3.75 cents to close at $3.3525 a gallon while July heating oil closed at $3.6396 a gallon, down 8.04 cents, or 2.2%.

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 June delivery closed at Rs 5,324/barrel, lower by Rs 119 (2.2%) against previous day’s close. Natural gas for June delivery closed at Rs 519.7/mmbtu, higher by Rs 7.1/mmbtu (1.4%).

The Energy Department will release its weekly update on petroleum supplies tomorrow but has said it will be released at 10:35 a.m. E.S.T five minutes later than usual.

India Strategy, Punj Lloyd, NTPC, Sun Pharma, India Economy, India Automobiles, Sterlite Industries

India Strategy, Punj Lloyd, NTPC, Sun Pharma, India Economy, India Automobiles, Sterlite Industries

Infosys Technologies, Cement Sector

Infosys Technologies, Cement Sector

Today's Pick - ACC

We recommend a buy in ACC from a short-term perspective. We note that the stock has been on a long-term downtrend from its all-time high of Rs 1,314 recorded in October 2007. However, in January 2008, the stock found support at Rs 615 and made a corrective medium-term up move to Rs 850. Subsequently, the stock resumed the long-term downtrend and began to decline. Nevertheless on June 3, the stock found support at Rs 615 (a significant long-term support level) and bounced up, accompanied with above average volume. This up move has been supported by the positive divergence in the daily momentum indicator. The moving average convergence and divergence oscillator is also displaying positive divergence. We are bullish on the stock in the short-term. We expect the stock to rally until it hits our price target of Rs 715 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while keeping the stop-loss at Rs 617 level.

Daily Technicals - June 4 2008

Daily Technicals - June 4 2008

Technicals - June 4 2008

Technicals - June 4 2008

RPL

RPL