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Thursday, September 04, 2008

BSE Bulk Deals to Watch - Sep 4 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/9/2008 519485 ASIA IND NET HARSHA VIPUL MINAWALA B 30000 15.54
4/9/2008 519485 ASIA IND NET ATUL NAGINBHAI CHAUHAN B 98903 15.44
4/9/2008 519485 ASIA IND NET HARSHA VIPUL MINAWALA S 30000 15.54
4/9/2008 519485 ASIA IND NET ATUL NAGINBHAI CHAUHAN S 98850 15.42
4/9/2008 533016 AUSTRAL COKE R M SHARES TRADING PVT LTD B 412504 247.94
4/9/2008 533016 AUSTRAL COKE SAM GLOBAL SECURITIES LTD B 401927 239.19
4/9/2008 533016 AUSTRAL COKE B K SHAH CO B 496473 245.25
4/9/2008 533016 AUSTRAL COKE H.J.SECURITIES P.LTD B 477097 244.57
4/9/2008 533016 AUSTRAL COKE BARON CONSULTANTS PVT LTD S 150000 235.00
4/9/2008 533016 AUSTRAL COKE R M SHARES TRADING PVT LTD S 412504 244.75
4/9/2008 533016 AUSTRAL COKE SAM GLOBAL SECURITIES LTD S 401927 238.51
4/9/2008 533016 AUSTRAL COKE B K SHAH CO S 494453 247.38
4/9/2008 533016 AUSTRAL COKE H.J.SECURITIES P.LTD S 476997 244.61
4/9/2008 533016 AUSTRAL COKE TAIB SEC MAURITIUS LTD S 321470 286.75
4/9/2008 531335 CARN NUT ANA SUDHA COMMERCIAL COMPANY LTD B 30000 103.50
4/9/2008 531682 CAT TECHNOL S V ENTERPRISES B 331689 6.28
4/9/2008 531682 CAT TECHNOL S V ENTERPRISES S 331729 6.17
4/9/2008 531439 GOLDSTON TEC BHAVESH P PABARI B 107000 118.21
4/9/2008 531439 GOLDSTON TEC BHAVESH P PABARI S 104900 118.36
4/9/2008 531602 KOFF BR PICT HITESH SHASHIKANT JHAVERI B 26053 32.58
4/9/2008 531602 KOFF BR PICT LAXMI CAP BROKING PVT LTD S 38514 32.39
4/9/2008 531602 KOFF BR PICT DEEPAL CORPORATION S 37198 32.10
4/9/2008 531602 KOFF BR PICT HITESH SHASHIKANT JHAVERI S 26053 32.60
4/9/2008 506605 POLYCHEM LTD BRIJ MOHAN BANSAL HUF B 7000 164.85
4/9/2008 506605 POLYCHEM LTD PUSHPA DEVI B 4000 155.61
4/9/2008 506605 POLYCHEM LTD BRIJ MOHAN BANSAL HUF S 7000 151.92
4/9/2008 506605 POLYCHEM LTD PUSHPA DEVI S 4000 162.82
4/9/2008 532884 REFEX REFRIG DEEPIKA SHARAD NANSI B 85000 307.09
4/9/2008 533017 RESURGERE H.J.SECURITIES P.LTD B 626382 658.09
4/9/2008 533017 RESURGERE H.J.SECURITIES P.LTD S 626382 660.70
4/9/2008 524636 S.S.ORGANICS P. L. BHARATHI B 100000 8.50
4/9/2008 532765 USHER AGRO MUKESH G KONDE B 118196 159.17
4/9/2008 532765 USHER AGRO MANHARLAL NAROTTAMDAS SHAH B 401064 150.12
4/9/2008 532765 USHER AGRO MUKESH G KONDE S 118196 148.97
4/9/2008 532765 USHER AGRO MANHARLAL NAROTTAMDAS SHAH S 401064 153.08

Post Session Commentary - Sep 4 2008

The Indian market retreated from Tuesday’s strong rally to end the day in red territory. The market was downbeat throughout the trading session as investors’ awaited inflation data and progress in India-US nuclear agreement. NSG meet is scheduled today in Vienna to consider whether India should be allowed to resume civil nuclear trade with international community. Domestic markets opened in red tracking weak cues from global markets along with inflation worries. Market stayed in negative territory on significant selling pressure and recovered a bit after mid session but was not able to sustain the momentum and slipped further to close in red. Negative opening of European markets also fueled the negative sentiment. NSE Nifty ended below 4,500 mark and BSE Sensex closed around 14,900 level. From the sectoral front, Reality counter witnessed heavy selling pressure and ended with a deep cut of more than 3%. Along with this, profit booking was also visible in Metal, Oil & Gas, Capital Goods and FMCG stocks. However, IT and Pharma stocks were able to gain ended the day in green zone. The market breadth was positive as 1332 stocks closed in green while 1259 stocks were ended in red and 94 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 150.76 points at 14,899.10 and NSE Nifty ended down by 56.25 points at 4,447.75. The BSE Mid Caps and Small Caps ended with losses of 7.84 points and 8.02 points at 5,829.17 and 6,974.37. The BSE Sensex touched intraday high of 14,994.15 and intraday low of 14,766.01.

Losers from the BSE are Sterlite Indus (3.69%), ONGC Ltd (2.97%), HDFC Bank Ltd (2.80%), Reliance (2.75%), ITC Ltd (2.62%), HUL (2.49%), Reliance Infra (2.32%), Reliance Com Ltd (1.89%) and DLF Ltd (1.34%).

The BSE Metal index plunged 198.75 points to close at 12,182.90. Losers are Hindustan Zinc (4.23%), Gujarat Nre C (3.94%), JSW SL (3.73%), Sterlite Indus (3.69%), Nalco (3.54%) and Jindal Steel (2.81%).

The BSE Oil & Gas index closed lower by 181.31 points at 9,844.65. Major losers are ONGC Ltd (2.97%), Reliance (2.75%), Essar Oil Ltd (2.32%) and Reliance Natural Resources (0.45%).

The BSE Reality index dropped 171.55 points to close at 5,195.72. As Indiabull Real (10.24%), Penland Ltd (4.18%), Housing Development (3.11%), Ansal Infra (3.05%), Unitech Ltd (2.62%) and Anant Raj Indus (2.49%) ended in negative territory.

The BSE Capital Goods index lost 115.06 points to close at 12,188.18. Lossers are Everest Kanto (3.12%), ABB Ltd (2.91%), Areva (2.83%), Crompton Greaves (2.62%), Jyoti Struct (1.97%) and Punj Lloyd (1.82%)

The BSE FMCG index ended down by 43.46 points at 2,212.58. As ITC Ltd (2.62%), HUL (2.49%), Nestle Ltd (1.13%), Godrej Cons (0.97%), United Spr (0.87%) and Colgate Palm (0.77%) closed in negative territory.

The BSE IT index closed up by 18.77 points at 4,085.70. Major gainers are Moser Bayer (9.47%), Aptech Ltd (4.25%), Financ Tech (2.63%), Rolta India (2.11%), Tech Mahindra (1.86%) and I-Flex (1.19%).

Market ends volatile session with a loss

Lack of investor participation ahead of inflation data kept the market under pressure today. Indices witnessed major volatility throughout the session. Realty shares were the worst performers, while software and healthcare pivotals bucked weak trend.

European markets, which opened after Indian markets, were mostly in red. Key indices in France and Germany were down by 0.83% to 1.20%. However, UK’s FTSE 100 was up 0.38%. Asian markets were negative with key indices in Hong Kong, Japan, Singapore, South Korea and Taiwan trading down by 0.03% to 2.62%. However, China’s Shanghai Composite index was up 0.03%.

As per provisional closing, the BSE 30-share Sensex was down 132 points or 0.88% to 14,917.86. The index shed 283.85 points at the day's low of 14,766.01, hit in mid-morning. It lost 55.71 points at the day’s high of 14,994.15 points, hit in afternoon.

The S&P CNX Nifty was down 50.30 points or 1.12% to 4453.70.

The BSE Mid-Cap index was down 0.14% at 5,828.56 and the BSE Small-Cap index was up 0.08% at 6,976.89.

The market breadth was positive. On BSE, 1339 shares advanced as compared to 1254 that declined. 91 shares remained unchanged.

Top Sensex gainers were, Maruti Suzuki (up 2.49% at Rs 681), Hindalco Industries (up 2.35% at Rs 126.55), State Bank of India (up 1.65% at Rs 1546.40), Tata Power Company (up 1.51% at Rs 1086.05), and Grasim Industries (up 1.38% at Rs 2030).

Top Sensex losers were, Sterlite Industries (down 3.39% at Rs 615), ONGC (down2.97% at Rs 1068.85), ITC (down 2.62% at Rs 189.25), HDFC Bank (down 2.80% at Rs 1303.90), and Reliance Infrastructure (down 2.32% at Rs 1017.55).

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 2.75% at Rs 2152.65. RIL stock accounts for a highest weightage of 15.21% on the Sensex.

India's largest private sector bank by market capitalisation ICICI Bank rose 0.69% at Rs 718.25. ICICI Bank stock accounts for third highest weightage of 7.50% on the Sensex.

India's second largest software exporter by sales Infosys Technologies rose 0.80% at Rs 1789.55. Infosys Technologies stock accounts for second highest weightage of 8.16% on the Sensex.

UCO Bank soared 4.56% to Rs 42.40 on BSE, on reports the bank plans to raise about Rs 600 crore from follow on public offer (FPO) in the September-December quarter of the current fiscal.

Textile firm Bombay Dyeing & Manufacturing Company gained 2.97% to Rs 581.35 on reports the company may rake in Rs 900 crore by next year by selling a small part of the 8 lakh square feet commercial property it is developing in Central Mumbai.

Construction firm PBA Infrastructure jumped 3.21% to Rs 67.60 after the company secured a contract worth Rs 122.04 crore from Pimpri Municipal Corporation, Pimpri in the state of Maharashtra for laying roads.

Auto parts maker Sona Koyo Steering Systems surged 20% to Rs 17.80 on reports the company plans to diversify into aerospace and windmill technology.

Oil prices hovered around $109 a barrel today, 4 September 2008 as traders weighed concerns over slowing demand from major consumer countries against further hurricane threats to the US oil sector.

Daily Call - Sep 4 2008

While in our hearts we want the NSG to give India a clean unconditional waiver, but we don’t see that happening. The US has sensed it’s growing alienation and has therefore taken a public stand that India must be ready to see an abrupt end in the supplies if we conduct a nuclear test. I don’t think that should be acceptable to India. As this was the only concession the three objecting nations were asking at the 21-22 August meeting, where was the need to go into the second meeting.

As the markets re-open after a day’s holiday, they should logically lead to profit taking. The US markets have failed to cheer the falling crude, on fears of a general economic slowdown. Tuesday’s gains came on 50% higher volumes and all round buying with FII participation. Today is the litmus test for the markets, whether they can build on those gains. No matter how strong one may have felt on Tuesday, One may consider booking profits.

Market likely to see volatile session; inflation eyed

Key benchmark indices are likely to see a volatile session today, 4 September 2008 ahead of the inflation data, which will be announced after market hours today. Global cues were mixed.

The wholesale price index for the 12 months to 23 August 2008 will be relased today. Inflation based on the wholesale price index rose 12.40% in 12 months to 16 August 2008, below its previous corresponding week's annual rise of 12.63% due to lower prices of some minerals and fuels, government data released on, 28 August 2008, showed.

Marketmen will closely watch the crucial Nuclear Suppliers Group (NSG) meet in Vienna scheduled today, 4 September 2008 to consider whether India should be allowed to resume civil nuclear trade with the international community. The 45-nation grouping will consider a draft which is being presented after amendments following demands by at least 15 countries during the 21 – 22 August 2008 meeting.

Oil prices hovered around $109 a barrel today, 4 September 2008 as traders weighed concerns over slowing demand from major consumer countries against further hurricane threats to the US oil sector.

Most Asian markets were trading lower today, 4 September 2008. China's Shanghai Composite fell 0.34% or 7.80 points at 2,268.87, Japan's Nikkei was down 0.36% or 45.37 points at 12,644.22, Hong Kong's Hang Seng declined 0.15% or 31.44 points at 20,553.62, Taiwan's Taiwan Weighted plunged 1.22% or 80.50 points at 6,504.43, Singapore's Straits Times slipped 1.50% or 40.52 points at 2,666.01. However, South Korea's Seoul Composite was up 0.18% or 2.63 points at 1,429.52.

Us markers ended mixed yesterday, 3 September 2008 as economic jitters dampened street enthusiasm for stock buying, fizzling out the post-Gustav enthusiasm. The Dow Jones industrial average gained 15.96 points, or 0.14%, to 11,532.88. The S&P 500 index declined 2.60 points, or 0.20%, to 1,274.98, and the Nasdaq composite index lost 15.51 points, or 0.66%, to 2,333.73.

Back home, a strong correction in crude oil price helped the key benchmark indices register phenomenal gains on Tuesday, 2 September 2008. The BSE 30-share Sensex jumped 551.35 points or 3.80% to 15,049.86 and the S&P CNX Nifty was up 155.35 points or 3.57% to 4504 on that day.

Indian stock markets were shut yesterday, 3 September 2008 on account of Ganesh Chaturthi.

Foreign institutional investors (FIIs) were net equity buyers worth Rs 1132.35 crore while mutual funds purchased shares worth Rs 209.79 crore on Tuesday, 2 September 2008, according to provisional data on NSE.

FIIs were net buyers of Rs 2426.89 crore in the futures & options segment Tuesday, 2 September 2008. They were net buyers of index futures to the tune of Rs 2078.33 crore and purchased index options worth Rs 746.67 crore. They were net sellers of stock futures to the tune of Rs 524.56 crore and bought stock options worth Rs 126.45 crore.

Sideways movement may continue

The market is likely to witness sideways movement on the back of a strong intra-day volatile moves. Stocks across sectors along with heavyweights may gyrate sharply. Ongoing weakness in the Asian indices and mixed US markets at overnight trades may further dampen the investors' sentiment. On the technical side, the Nifty has a stiff resistance at 4550 and the downside cap at 4450, while the Sensex could test higher levels of 15130 and has a likely support at 14900.

US indices registered mixed trades on Wednesday following reports from the Federal Reserve and weak sales from many automakers kept worries about the economic slowdown in the forefront. While the Dow Jones dropped 16 points to close at 11533, the Nasdaq fell 16 points at 2334.

Most of the Indian ADRs fell on the US bourses. Tata Motors, Satyam and Wipro shed over 3-2% each while MTNL, Infosys, ICICI Bank and HDFC Bank were down 0.25-1% each. However, VSNL soared over 2% while Rediff and Patni Computer closed with the marginal gains.

Crude oil prices in the US market slipped on Wednesday, with the Nymex light crude oil for October delivery falling by 36 cents to close at $109.35 a barrel and in the commodity space, the Comex gold for December series lost $2.30 to settle at $808.20 a troy ounce.

Pre Session Commentary - Sep 4 2008

The Indian Market is expected to have negative opening as US markets ended mixed and Asian markets are trading down. On Tuesday, domestic market closed with handsome gains on steep drop in crude oil after early reports that showed Hurricane Gustav had spared major U.S. Gulf oil facilities. Market opened with gains on eased crude. Further domestic market continued to gain ground on significant buying across the ground. The market extended its strength and rallied sharply after mid session to conclude the day with heavy gains. Firm cues from the European markets also lifted the sentiments. BSE Sensex regained 15,000 mark and NSE Nifty crossed 4,500 level. From the sectoral front, all indices closed in green and Reality and Bank stocks closed with gains of more than 7% and 6%. Along with that, major gainers were Capital Goods, Oil & Gas, Metal and IT stocks as witnessed most of the buying from these baskets. The BSE Sensex closed higher by 551.35 points at 15,049.86 and NSE Nifty ended up by 155.35 points at 4,504.00. The BSE Mid Caps and Small Caps ended with gains of 95.03 points and 91.00 points at 5,837.01 and 6,982.39. We expect that market may remain volatile during the trading session ahead of inflation number for the week ended 23rd August 2008, due to be released today evening.

Despite fears of an economic slowdown in India, direct tax collections have gone up by 38.3% in the first five months of the current fiscal at Rs 84,409 crore, compared to Rs 61,030 crore in a year-ago period. The corporate taxes rose by 43.49% to Rs 48,450 crore, against Rs 33,766 crore, while Personal Income Tax (including FBT, STT and BCTT) grew by 31.79% to Rs 35,840 crore. Amid volatility in stock markets, securities transaction tax registered a 15.10% growth at Rs 2,730 crore during the period.

On Wednesday, the US market closed mixed on economic worries. Crude oil prices were slightly lower due to stronger dollar. Light, sweet crude for October delivery fell to settle at $109.35 a barrel on the New York Mercantile Exchange, after earlier dipping as low as $107.22.

The Dow Jones Industrial Average (DJIA) closed higher by 15.96 points to close at 11,532.while the NASDAQ index ended down by 15.51 points to close at 2,333.73 and the S&P 500 (SPX) lost 2.60 points to close at 1,274.98.

Indian ADRs ended down. In technology sector, Wipro ended lower by (2.92%) followed by Satyam dropped by (2.39%), and Infosys by (1.22%) while Patni Computers gained (0.28%). In banking sector ICICI Bank and HDFC Bank lost (0.70%) and (0.25%). In telecommunication sector, Tata Communication ended up by (2.34%) while MTNL dropped by (1.72%). However, Sterlite industries decreased by (0.65%).

Today the major stock markets in Asia are trading weak. Taiwan Weighted is trading lower by 80.50 points at 6,504.43 along with Japan’s Nikkei trading down by 45.37 points at 12,644.22, Singapore''s Straits Times dropped by 40.52 points at 2,666.01 and Hang Seng index lost 31.44 points at 20,553.62.

The FIIs on Tuesday stood as net seller in equity and in debt.30 Gross equity purchased stood at Rs1348.30 Crore and gross debt purchased stood at Rs91.30 Crore while the gross equity sold stood at Rs1,520.50 Crore and gross debt sold stood at Rs147.70 Crore. Therefore, the net investment of equity reported was (Rs171.70) Crore and net debt was (Rs56.40) Crore.

The Indian rupee declined by 25 paise against the greenback in volatile trade on Tuesday due to huge demand for dollar from foreign banks and oil companies. The partially convertible rupee closed at 43.38/44.44 per dollar, down from Monday''s close of 44.18/19.

Today, Nifty has support at 4,406 and resistance at 4,572 and BSE Sensex has support at 14,738 and resistance at 15,326

Market Outlook - Sep 4 2008

Market Outlook - Sep 4 2008

Morning Call - Sep 4 2008

Market Grape Wine :

In House:

Nifty at a support at 4425 and 4360 with resistance at 4525 and 4600 levels.

Cash: Buy LT above 2640 target 2750 with S/L 2595.

Cash: Buy ICICI BANK above 685 target 710 with S/L 675.

Future: Sell RIL below 2229 target 2165 with S/L 2260.

Future: Sell TISCO below 593 targets 575 with S/L 603.

Out House:

Markets at a support of 14786 & 14523 and resistance at 15251 & 15324 levels .

Markets to be very choppy and volatile keep strict stop loss .

Buy : RIL

Buy : LNT

Buy : Srei & Coreproject

Buy : HLL

Buy : EssarOil

Buy : Mcleodrussel & JayshreeTea

Buy : IBulls at dips

Buy : SBIN

Buy : JSW & Sail

Dark Horse : IBulls , McLloyd , RIL , Core , , Infy , & Aftek

Trading Call - Orbit Corporation

Buy Orbit Corporation SL - Rs 250 Target - Rs 425

Trading Calls - Sep 4 2008

Nifty (4504) Sup 4450 Res 4550

Buy Sterlite (638)
SL 632 Target 650, 654

Buy SAIL (155)
SL 152 Target 161, 163

Buy Bharti Airtel (835)
SL 828 Target 850, 854

Buy Zee Ent (226)
SL 222 Target 234, 236

Sell Amtek Auto (186)
SL 189 Target 180, 178

Right to react!

It is the way we react to circumstances that determines our feelings.

The bulls reacted strongly to the falling crude prices . For the second time in three days the Sensex gained over 500 points which led to the benchmark closing above 15,000 and Nifty ending above 4,500. And talking of reaction, stocks related to the Indo-US nuclear deal could fall amid reports that the US will terminate the agreement if India conducts a fresh nuclear test. The UPA says this is the internal matter of the US government, and that it would have no impact at the NSG meeting, which is scheduled for today. Prime Minister Dr. Manmohan Singh is believed to have told a meeting of the Congress Working Committee that India has the right to test, and the US has the right to react.

For the day, we expect some cooling as global markets are not that supportive. The bias remains positive though, as FIIs were big buyers on Tuesday. Inflation numbers will be out today after the market closes. There is a likelihood of some more moderation as crude oil has cooled off considerably in the past few days. The Government will also come under pressure to reduce fuel prices if crude slips below $100.

Stock specific action is expected in Moser Baer and Salora International, as the two companies are scheduled to announce new business initiatives today. Tata Motors will surely be among the stocks to watch out for, as it has formally decided to pull out of Singur.

Shares of Austral Coke & Projects Ltd. will get listed on the bourses. The company's IPO was subscribed 1.65 times, mainly due to heavy subscription in the HNI portion. The retail segment was highly under-subscribed while the QIB portion was subscribed 1.29 times. The issue price is Rs 196 per share. One has to see how the stock performs in the wake of the stupendous show put up by Resurgere Mines, which has shot up sharply after listing.

Crude futures in New York slumped as low as $105 per barrel on Tuesday after Hurricane Gustav caused less than expected damage to oil facilities in the Gulf of Mexico. It is hovering around the $109 mark today, which is still considerably lower than the all-time peak of $147, struck on July 11. A further correction in oil prices is likely to boost sentiment for global equities. India will undoubtedly one of the biggest beneficiaries of lower oil prices. So, one has to keep an eye on crude all the time, for it could single-handedly push our market higher from the current levels.

At the same time, one has to be slightly careful, as global markets have actually not reacted very strongly to the softening of crude oil as much as our markets have. One reason could be the deterioration in economic conditions in the industrialised nations like the US, UK, Japan and Europe. Any further bad news on this front might spoil the party for the bulls here. Besides, the macro-economic situation here too is not that healthy either, though India is still better off than its advanced counterparts.

US stocks ended mixed on Wednesday in a choppy session, as falling oil prices, a lackluster growth report from the Federal Reserve and weak auto sales kept investors on tenterhooks.

A stronger-than-expected factory orders report failed to calm investors' nerves about the state of the world's biggest economy. General Motors' smaller-than-expected sales decline was a rare bright spot for the industry, hit by slowing sales.

The S&P 500 slid 2.59 points, or 0.2%, to 1,274.99. The Dow added 15.96 points, or 0.1%, to 11,532.88. The Nasdaq Composite Index slipped 15.51 points, or 0.7%, to 2,333.73.

Market breadth was positive. About the same number of stocks rose as fell on the New York Stock Exchange.

Though US equities have gained from the correction in commodity prices over the past few weeks, especially that of crude oil, there are fears about a recession and the decline in oil prices is adding to those fears.

US light crude oil for October delivery fell 36 cents to settle at $109.35 a barrel, the lowest level since April 7, after tumbling $5.75 a barrel on Tuesday.

The threat of Gustav and other storms had driven prices even higher last week as investors tried to assess the impact it might have on the Gulf coast. Facilities in the area are responsible for roughly 25% of US oil production.

However, Gustav's impact was seen as less devastating than might have been expected and oil prices began slipping anew. Goldman Sachs is still forecasting that crude prices will set new records at around $149 per barrel by the end of the year, due to fundamentals in the oil market.

In the bond market, Treasury prices inched higher, lowering the yield on the benchmark 10-year note to 3.69% from 3.73% late on Tuesday. The dollar gained modestly versus both the euro and the yen.

COMEX gold for December delivery fell $2.30 to settle at $808.20 an ounce after plunging nearly $25 in the previous session.

GM reported that North American sales fell 20.4% in August versus forecasts for a decline of 29%. Shares gained 6%. Other automakers reported worse-than-expected results, including Ford, which said sales fell almost 27% versus a year ago.

Ambac Financial rallied 22% in active New York Stock Exchange trade on signs that it is making progress in rebuilding its struggling business.

Lehman Brothers inched higher on reports that Korea Development Bank has offered to buy a 25% stake in the troubled financial services firm for as much as $5.3bn. In related news, a commodities hedge fund that the company has a 20% stake in will close down after losing 27% in August.

July factory orders rose 1.3%, the government reported, after climbing an upwardly revised 2.1% in June. Fed's semi-annual beige book, which showed that the pace of economic activity has been slow in most of the 12 districts. Consumer spending has been sluggish as well.

Thursday's big news of note will be the August retail sales figures from the nation's chain stores. Also due are: weekly jobless claims, weekly crude supplies, the revised reading on second-quarter productivity and the ISM's reading on the services side of the economy.

European shares declined on Wednesday mid more uncertainty about economic growth, with banks and technology stocks pacing the fall. The pan-European Dow Jones Stoxx 600 index fell 1.6% to 285.58. The UK's FTSE 100 closed down 2.2% at 5,499.70, while Germany's DAX 30 fell 0.8% to 6,467.49 and the French CAC-40 dropped 2% to 4,447.13.

Bulls may be tested

Bulls kept the momentum going on Tuesday and ended with healthy gains. The up trend got another boost after a sharp decline in crude oil prices coupled with firm cues from the European markets saw the BSE benchmark index soar past the 15,100 mark in intra-day trades.

The Auto and the oil marketing stocks were in momentum following a sharp drop in crude oil prices. Crude oil fell as low as US$105.46. The interest rate sensitive stocks were among the major gainers. Finally, the benchmark Sensex closed at 15,049 surging 551 points and the Nifty ended at 4,504 adding 155 points.

PBA Infra was locked at 20% upper circuit to Rs65.50 after media reports stated that the company secured order worth Rs1.22bn. The scrip touched an intra-day high of Rs68.50 and a low of Rs56 and recorded volumes of over 2,00,000 shares on BSE.

Shares of Archies gained by 2% to Rs137 after the company announced that it secured an exclusive tie up with UK's leading brand 'Carte Blanche' to distribute and sell its renowned brand 'Me to you' in India.

The 'Me to You' brand has Tatty teddy, a grey teddy with a blue nose, as its mascot and has been licensed for a number of products including calendars' jewellery, cross-stitch kits, confectionery, apparel and personalized items in more than 70 countries. The scrip touched an intra-day high of Rs141 and a low of Rs131 and recorded volumes of over 11, 00,000 shares on NSE.

Shares of Wipro surged by over 4% to Rs451 after the company announced that it would open Engineering center for Harman International. The center would employ 250 engineers and would provide services to develop Harman developers. The scrip touched an intra-day high of Rs457 and a low of Rs435 and recorded volumes of over 1,00,000 shares on NSE.

Bosch Ltd slipped 3% to Rs4048. The board of directors of the company approved and recommended to the shareholders, proposal to buyback such number of equity shares of the company from existing shareholders from open market "through the Stock Exchange", not exceeding Rs4500/- per equity share. The scrip touched an intra-day high of Rs4350 and a low of Rs4000 and recorded volumes of over 13,000 shares on BSE.

Shares of Suzlon Energy surged by over 5% to Rs229 after the company announced its plans to spend US$1bn on research to develop bigger and more efficient turbines as it battles customer concerns about quality. The scrip touched an intra-day high of Rs233 and a low of Rs216 and recorded volumes of over 19,00,000 shares on BSE.

Shares of Rallis India slipped by 1% to Rs558 after the company announced that it stopped operations at Hyderabad factory. The scrip touched an intra-day high of Rs562 and a low of Rs540 and recorded mere volumes of over 1,000 shares on BSE.

Tata Motors suspends work and plans to relocate out of Singur (ET)

RIL has made a conditional offer to the petroleum ministry to maintain current LPG supplies to IOC, BPCL and HPCL (FE)

NTPC-BHEL Power Projects JV plans to sell up to 50% stake to private companies (BL)

Maruti Suzuki to scale up its R&D work for small car engines from its Indian operations (BL)

M&M is understood to have begun discussions with LCV manufacturer Swaraj Mazda to sell its stake to Japanese major Sumitomo Corporation (ET)

TATA Teleservices continues to have the least congested cellular network among all pan-India telecom operators, according to Trai (ET)

Taro Pharma to appeal in Israel’s Supreme Court against last week’s decision by a district court in favour of Sun Pharma (FE)

Wipro has entered into a partnership with Harman International to provide R&D services in areas such as semiconductor technology, RFID and hardware engineering (ET)

IOC to invest Rs120bn to meet Euro-IV deadline (ET)

Tata Motors will issue shares with lower voting rights ‘A’ on a rights basis at Rs305 per share (BL)

Maruti plans to focus on fuel-efficient cars in future (ET)

Gail is planning to increase its petrochem capacity by 2.5 times to 10 lakh mt with an investment of Rs5bn in five years (ET)

Wipro has renegotiated few contracts at higher prices (DNA)

OIL to invest Rs130bn in 5 years, mulls IPO in November (BL)

Dr Reddy’s Labs is scouting for acquisitions as part of its strategy to handle economic slowdown (BL)

Videocon, Hero Honda, Adani and Sterling Biotech are in talks with UCO Bank for acquiring a 25% stake in the proposed financial services subsidiary (ET)

IOC to raise Rs180bn debt for Paradeep refinery in Orissa (BS)
Ambuja Cement reports 6.9% growth in cement production at 1.20mt in August (BL)

Suzlon to consolidate REpower accounts by December 2008 (DNA)

Titan launches low-priced super fibre watches under its Sonata brand (ET)

Bombay Dyeing to develop eight lakh sq ft of property on its surplus land in Mumbai (ET)

Great Offshore acquires two Hyderabad-based companies for Rs1.6bn (ET)

Kingfisher Airlines is looking to raise US$400mn through equity by March 2009 (BS)

Parsvnath to invest about Rs150mn to build a luxury housing project at Moradabad, Uttar Pradesh (FE)

Archies ties up with UK-based Carte Blanche Greetings to distribute and sell its brand ‘Me to You’ in India (BL)

Apollo Hospitals Group to invest Rs100bn to set up 250 small and medium-sized multi-specialty hospitals over the next seven years (BS)

Sical Logistics to finalise location for Jurong Port JV in 3 months (BL)

Economy Front page

The proposal to raise FDI cap in insurance to 49% from existing 26% has obtained green signal from the group of ministers (GoM) (ET)

CERC has proposed uniform price cap of Rs5 per unit and Rs6 per unit (during 6 pm and 10 pm) for inter-state short-term sale (FE)

Arun Ramanathan, a senior bureaucrat in the finance ministry, is likely to be named the next finance secretary of India (FE)

Coal India to restart 18 underground mines (DNA)

SEBI to allow ETFs based on interest rate futures in early 2009 (ET)

SEBI mulls FII role in currency futures (FE)

Shipping firms that do not have at least 15% of their crew as trainees will be liable for a penalty up to Rs2mn per vessel (ET)

Revenues from coffee exports rises 33% in the first eight months of 2008 (BS)

Bullion metals continue to gather rust

Retreating crude prices coupled with strong dollar turn gold and silver prices pale

Bullion metals ended considerably lower on Wednesday, 03 September, 2008 after crude prices continued to retreat back on news that hurricane Gustav will not hit the oil rigs at the Gulf of Mexico. Prices also slipped after the dollar strengthened. These factors reduced the precious metal’s appeal as a hedge against inflation.

On Tuesday, Comex Gold for December delivery fell $2.3 (0.4%) to close at $808.2 an ounce on the New York Mercantile Exchange. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly since then.

This year, gold prices have lost 3.7% till date as the dollar rallied against the euro. Gold had lost 8.8% in August, 2008. In July, 2008, it ended lower by $11 (1.1%).

Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. It ended June, 2008 with a gain of 4.1%. In May, it ended with a gain of higher by $22.5 (2.5%). Before May, in 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 Wednesday, Comex silver futures for December delivery fell 20 cents (1.5%) to $12.95 an ounce. Silver has lost almost 13.5% in 2008 till date. It ended August with a loss of 2.4% and July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. The metal also had gained for seven straight years.

At the crude market on Wednesday, crude-oil futures for October fell for fifth straight day. It fell by $0.36 (0.3%) to $109.35 a barrel. Commodities tumbled the most since March yesterday, led by energy prices, as Hurricane Gustav spared U.S. Gulf petroleum rigs the destruction caused by Katrina and Rita in 2005.

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. 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 and vice versa.

At the currency markets on Wednesday, the euro fell to its lowest level since January against the dollar, notching a low of $1.4384 against the greenback earlier in the session. The British pound continued its rapid descent against the dollar, testing levels unseen since April 2006. The dollar index, gained 0.2% to 78.19. The greenback and gold tend to move in the opposite direction.

Among economic news of the day at Wall Street, The Commerce Department reported that factory orders remained surprisingly strong, with the fifth straight month of positive growth. July factory orders rose 1.3%. Excluding transportation, orders rose 1%. In addition, unfilled orders were up 0.7%, marking the 29th increase in the last 30 months, and indicating that manufacturing sector will remain busy. Orders in June were revised higher to 2.1% from 1.7%.

But elsewhere, The Fed's Beige Book, a collection of anecdotal economic reports from the 12 Federal Reserve districts, showed an economic slowdown in most districts. At the same time, most districts continued to report price pressures due to the elevated costs of energy, food and other commodities. Wage pricing pressures were moderate, as the sluggish economic environment has allowed businesses to limit their salary increases.

Earlier this year, the weakening dollar and higher global demand for raw materials had led to records this year for commodities including gold. Gold reached a record in March as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. The Federal Reserve halted cuts to its target bank lending rate in April, after slicing it in seven steps to 2% from 5.25% in September.

Gold had 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. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%.

Crude continues to drop

Prices drop by almost 8% in past one week

Crude oil prices registered losses for fifth straight day on Wednesday, 04 September, 2008 after news hit yesterday that hurricane Gustav will not hit the oil rigs at the Gulf of Mexico. Strength in the US dollar also led to softening of crude prices. Energy Department did not release the scheduled weekly inventory report today due to the Labor day holiday on Labor day.

Crude-oil futures for light sweet crude for October delivery closed at $109.35/barrel (lower by $0.36 or 0.3%) on the New York Mercantile Exchange. Prices fell to a low of $107.5 during intra day trading. Prices are 50% higher than a year ago. Prices reached a high of $147 on 11 July but have dropped since then. In the past one week, crude has shed almost 8%.

Visual assessments of facilities in the Gulf have not shown any damage to oil or natural-gas platforms yet, but it may take a full two weeks to return to full production.

At the currency markets on Wednesday, the euro fell to its lowest level since January against the dollar, notching a low of $1.4384 against the greenback earlier in the session. The British pound continued its rapid descent against the dollar, testing levels unseen since April 2006. The dollar index, gained 0.2% to 78.19. The greenback and gold tend to move in the opposite direction.

Crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. For the year, crude is up by 5% till date.

Against this background, October reformulated gasoline added 3.3 cents to end at $2.7668 a gallon while October heating oil closed at $3.0788 a gallon, up 0.5 cent.

Prices for natural gas were nearly unchanged. October natural gas closed at $7.264 per million British thermal units. The contract lost 8.6% yesterday.

Visa Steel

Visa Steel