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Monday, November 24, 2008

BSE Bulk Deals to Watch - Nov 24 2008

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
24/11/2008 531739 GENNEX LAB GOVINDJI GUPTA S 109000 19.50
24/11/2008 532717 INDOTECHTR NOTZ STUCKI ET CIE S A AC ARUNA FUND S 75500 224.85
24/11/2008 530955 KAILASH FICO PARACHIT SALES MKT SERVICES B 200000 22.68
24/11/2008 530955 KAILASH FICO MAGNA VANIJYA LTD S 85000 22.70
24/11/2008 531996 ODYSSEY CORP SAVITA DEVI AGARWALLA B 25000 16.83
24/11/2008 531996 ODYSSEY CORP GIRISH KUMAR AGARWALLA B 25000 15.80
24/11/2008 531219 POONAM PHARM SWARN GANGA TRADING PVT. LTD. B 55000 1.93
24/11/2008 531646 RFL INTERNAT ISHITA MOHATTA B 38050 0.70
24/11/2008 530461 SABOO SOD CH SPJ STOCK B 43488 9.26
24/11/2008 531898 SANGUINE MD COMFORT INTECH LIMITED S 100027 6.61
24/11/2008 526981 SHRI BAJRANG NEETA GOEL B 45000 13.45
24/11/2008 532765 USHER AGRO R U RAMCHANDANI B 170000 123.57
24/11/2008 532765 USHER AGRO SUPER VELOURS PVT LTD S 169280 123.57

NSE Bulk Deals to Watch - Nov 24 2008

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
24-NOV-2008,ALKALI,Alkali Metals Limited,JOHNSON AFRAHIMBHAI TAILOR,BUY,59000,182.29,-
24-NOV-2008,NOVAPETRO,Nova Petrochem Limited,TRIPOLI MANAGEMENT PVT LTD,BUY,200000,7.00,-
24-NOV-2008,RUCHISOYA,Ruchi Soya Inds Ltd.,SHIVA FOUNDATION,BUY,1575971,23.09,-
24-NOV-2008,ALKALI,Alkali Metals Limited,JOHNSON AFRAHIMBHAI TAILOR,SELL,44200,186.05,-
24-NOV-2008,JYOTISTRUC,Jyoti Structures Ltd,NOTZ STUCKI ET CIE S A A/C ARUNA FUND,SELL,680000,55.01,-
24-NOV-2008,NOVAPETRO,Nova Petrochem Limited,DEEP STOCK BROKING PVT.LTD.,SELL,200000,7.00,-

Post Session Commentary - Nov 24 2008

The domestic market closed flat after remaining unstable during the trading session due to lack of conviction. Market opened slightly lower tracking weak cues from Asian markets. Further benchmark indices suddenly made sharp turn from the opening low’s and gained some ground as buying action was witnessed among the selective scrips. However, same momentum did not sustained for long as the volatility griped the market. Asian markets ended weak, as the Citigroup share slump worries and investors decided to stay on the edge of the fence, hoping for some fresh cues from the policymakers. Further, the announcement made by US government that an amount of USD 306 billion will be provided as a rescue package for Citigroup did not impact much on domestic investors. NSE Nifty ended above 2,700 mark and BSE Sensex around 8,900 level. From the sectoral front, Reality, Bank, Consumer Durable, Metal and Capital Goods stocks remained out of favor as most of the selling was seen from these baskets. Midcap and Small cap stocks were also under bears'' control. However, Power, FMCG, Oil & Gas, Teck and Pharma stocks tried to offset the negative sentiment as were able to gather the buying momentum.

Among the Sensex pack 17 stocks ended in red territory and 13 in green. The market breadth was negative as 1382 stocks closed in red while 1060 stocks closed in green and 75 stocks remained unchanged.

The BSE Sensex closed marginally lower by 12.09 points at 8,903.12 and NSE Nifty ended slightly up by 14.80 points at 2,708.25. The BSE Mid Caps and Small Caps closed with losses of 14.37 points and 26.80 points at 2,902.29 and 3,363.96 respectively. The BSE Sensex touched intraday high of 9,042.02 and intraday low of 8,701.93.

Losers from the BSE Sensex pack are Satyam Computer (4.57%), ICICI Bank (3.87%), DLF Ltd (3.81%), M&M Ltd (3.15), SBI (3.03%), HDFC Bank (2.94%), Ranbaxy Lab (2.78%), Grasim Indus (2.77%), Tata Steel (2.53%), Sterlite Industries (1.90%), HDFC (1.84%) and ONGC Ltd (1.61%).

Gainers from the BSE Sensex pack are Reliance Infra (4.00%), Maruti Suzuki (3.64%), Tata Power (3.57%), TCS Ltd (2.79%), Bharti airtel (2.79%), NTPC Ltd (1.96%), Wipro Ltd (1.68%), BHEL (1.56%), Reliance (1.56%), Infosys Tech (0.97%) and ACC Ltd (0.85%).

The BSE Reality index ended down by (3.78%) or 62.12 points at 1,583.30. Major losers are Unitech Ltd (9.11%), Penland Ltd (6.18%), Ansal Infra (4.49%), Parsvnath (3.87%), DLF Ltd (3.81%) and Indiabull Real (3.56%).

The BSE Bank index lost (3.14%) or 144.22 points to close at 4,454.68. Major losers are Bank of India (5.08%), IDBI Bank (4.97%), Bank of Baroda (4.69%), ICICI Bank (3.87%), Axis Bank (3.44%) and Union Bank (3.36%).

The BSE Consumer Durables index dropped by (2.33%) or 41.82 points to close at 1,751.90. Losers are Blue Star L (6.07%), Titan Ind (2.81%) and Rajesh Export (1.12%).

The BSE Power index ended higher by (1.94%) or 30.80 points at 1,619.44 as Reliance Power (6.32%), Reliance Infra (4.00%), Tata Power (3.57%), Crompton Greaves (2.78%), GVK Power (2.66%) and Power Grid (2.58%) ended in positive territory.

The BSE Oil & Gas index advanced by (1.37%) or 75.78 points to close at 5,626.67. Gainers are IOC Ltd (7.14%), HPCL (6.57%), GAIL India (5.14%), Aban Offshore (4.32%), BPCL (2.87%) and Reliance (1.56%).

The BSE FMCG index gained (1.09%) or 20.66 points to close at 1,908.41. Gainers are United Spr (14.97%), Marico Ltd (4.75%), Britania In (2.67%), Ruchi Soya (2.49%) and Godrej Cons (2.09%).

Back to square one

A late bout of hectic buying in power, oil & gas, fast moving consumer goods and other heavyweights triggered a major rally in the Sensex, which otherwise lingered in the negative territory for a better part of the day. On the back of weak Asian indices, the Sensex witnessed extreme volatility in early trades. After resuming weak at 8,840 the index fell sharply and touched the intra-day low of 8,702. Thereafter the index began to gain sharply on substantial buying, taking the benchmark index to the day's high of 9,042. While the market remained subdued thereafter, the Sensex on fresh buying support rebounded sharply at close. The Sensex finally ended the session with marginal loss of 12 points at 8,903, while the Nifty advanced 15 points to close at 2,708.

Sectoral indices posted mixed results for the day. BSE Power led the pack with a surge of 1.94% followed by BSE Oil & Gas, which gained 1.37%, and BSE FMCG, which moved up 1.09%. BSE Teck, BSE HC, BSE Auto, BSE IT and BSE PSU gained marginally and closed in the positive territory. Among the losers, BSE Reality and BSE Bankex dropped over 3% each.

Leading the surge, Reliance Infrastructure flared up 4% at Rs504.60. Among other major gainers Maruti Suzuki India shot up by 3.64% at Rs529.95, Tata Power rose 3.57% at Rs653.45, Tata Consultancy Services jumped by 2.79% at Rs520.70 and Bharti Airtel added 2.73% at Rs636. National Thermal Power Corporation, Wipro, Bharat Heavy Electricals Ltd, Reliance Industries Ltd and Infosys gained 1-2% each. Select frontline counters, however, witnessed profit taking. Satyam Computers dropped 4.57% at Rs229.60, while ICICI Bank declined 3.87% at Rs322.55. DLF, Mahindra & Mahindra, State Bank of India and HDFC Bank ended with steady losses.

Among other major gainers Spice Telecom soared 19.10% at Rs30.55, United Spirits surged 14.97% at Rs804.70, EIH rose 7.70% at Rs100 and Indian Oil Corporation added 7.14% at Rs406.55.

Over 1.65 crore shares of Unitech changed hands on the BSE followed by GVK Power & Infrastructure (1.19 crore shares), Suzlon Energy (1.09 crore shares), Reliance Natural Resources Ltd (0.88 crore shares) and Reliance Capital (55.81 lakh shares).

Sensex in red, Nifty in green

The two key benchmark indices the BSE Sensex and the S&P CNX Nifty witnessed a divergent trend in highly choppy trade. While the BSE Sensex lost, the broader based S&P CNX Nifty gained. Firm European shares, higher US index futures and a finance ministry report which said prospects for India's expansion remain fairly robust, triggered a late recovery on the bourses.

Wild swings in US index futures after US government's rescue plan for Citigroup caused immense volatility on the domestic bourses. Trading in US index futures indicated the Dow could gain 154 points at the opening bell. The index futures swung between gains and losses after the US Treasury Department on Sunday, 23 November 2008, announced that it was investing $27 billion in Citigroup in exchange for preferred shares as one of a series of actions to help the beleaguered bank

Close home, after an initial fall caused by anxiety about potential US measures to prop up Citigroup, the market bounced back in morning trade boosted by the announcement of the US government rescue plan for the beleaguered US bank. But the rally fizzled out and the market weakened shortly as the package to prop up Citigroup was seen as unlikely to ease all concerns about the broader financial sector and as concerns over the global economy remained.

The market later cut losses on recovery in US index futures, surge in European stocks and positive outlook for India's economy by the Finance Ministry. The barometer index swung 340.09 points between the day's high and low.

The circumstances continue to be largely favourable for sustained, rapid and more inclusive growth of the economy, said a finance ministry report prepared for a conference of financial editors.

European markets surged as investors cheered US aid for the financial giant. Key benchmark indices in UK, Germany and France were up by between 2.75% and 4.52%.

The BSE 30-share Sensex was down 12.09 points or 0.14%, to 8,903.12. At the day's low of 8,701.93, the Sensex lost 213.28 points in mid-afternoon trade. The Sensex rose 126.81 points at the day's high of 9,042.02 in mid-morning trade.

The S&P CNX Nifty gained 14.80 points or 0.55% to 2708.25. The reason why this 50-share index rose despite a slight fall in the BSE Sensex was the rally in some its constituents which do form a part of the Sensex. Reliance Power (up 6.06%), GAIL India (up 5.14%), National Aluminium Company (up 4.97%), Idea Cellular Services (up 4.55%), and HCL Technologies (up 4.07%) rose. These five stocks have a combined weightage of 5.24% in Nifty.

Nifty November 2008 futures were at a marginal 0.95 point premium at 2709.20 compared to the spot closing. Turnover in NSE's futures & options (F&O) segment was Rs 46,218.94 crore, which was lower than Rs 47,696.14 crore on Friday, 21 November 2008.

The barometer index BSE Sensex is down 11,383.87 points or 56.11% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 12,303.65 points or 58.01% below its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1387 shares declined as compared with 1065 that advanced. 76 shares remained unchanged.

The BSE Mid-Cap index was down 0.49% at 2,902.29 and the BSE Small-Cap index fell 0.79% to 3,363.96. Both these indices underperformed the Sensex.

The total turnover on the BSE amounted to Rs 3199 crore as compared to Rs 3,580.22 crore on Friday, 21 November 2008.

Among the sectoral indices, the BSE Power index, the BSE Oil & Gas index, the BSE Capital Goods index, the BSE Teck index, the BSE PSU index, the BSE IT index, the BSE Auto index and the BSE FMCG index outperformed the Sensex.

The Bankex, the BSE Metal index, the BSE HealthCare index, the BSE Consumer Durables index and the BSE Realty index underperformed the Sesex.

Among the 30-member Sensex pack, 17 declined while the rest gained. Ranbaxy (down 3.98% to Rs 211), Grasim (down 3.87% to Rs 898.70), and Jaiprakash Associates (down 1.97% to Rs 57.10), edged lower from the Sensex pack.

ACC (up 1.39% to Rs 405) and Bharti Airtel (up 2.57% to Rs 635), edged higher from the Sensex pack.

Banking shares tripped as the $306 billion rescue plan for the number two US bank Citigroup was seen unlikely to ease all concerns about the broader financial sector and as concerns over the global economy remained. India's largest private sector bank by net profit ICICI Bank lost 4.75% to Rs 319.60 despite a 15.53% surge in its American depository receipt (ADR) on Friday, 21 November 2008. It was the top loser from the Sensex pack.

State Bank of India (down 3.88% to Rs 1137.25), and HDFC Bank (down 4.03% to Rs 822.20), also succumbed to selling pressure. The Bankex fell 3.14% to 4,454.68.

Shares in which Citigroup held substantial stake slumped as concerns that it may sell stake remained. India's top mortgage lender by net profit Housing Development Finance Corporation (HDFC) fell 1.73% to Rs 1375.10 in highly volatile trade. Citigroup holds nearly 12% stake in HDFC through various entities. The stock retraced sharply from early high of Rs 1443.50.

Real estate stocks declined on concerns of fall in margins after the National Association of Realtors said on Thursday 20 November 2008 the economic downturn will slow commercial real estate market in 2009. India's top realty developer by market capitalisation DLF slumped 4.62% to Rs 189.05 on reports the retail-cum-entertainment centre at Mumbai mills property which marked DLF's entry in Mumbai three years ago, has been delayed by two years due to downturn in the real estate sector.

Unitech (down 10.05% to Rs 28.65), and Housing Development & Infrastructure (down 2.97% to Rs 81.60), dropped. The BSE Realty index slumped 3.78% at 1,583.30, and was the top loser among the BSE sectoral indices.

IT pivotals gained after international financial services group Credit Suisse assigned an 'outperform' rating to the sector. The BSE IT Index rose 0.22% to 2,462.95. India's largest software services exporter TCS rose 2.85% to Rs 521 after the US government announced a rescue plan for Citigroup, the company's biggest client. It was the top gainer from the Sensex pack.

Infosys Technologies (up 0.44% to Rs 1190), and Wipro (up 1.83% to Rs 234), gained. But India's fourth largest software services exporter Satyam Computer Services plunged 4.41% to Rs 230. Citigroup Global Markets Mauritius holds 1.22% in the firm (as at end September 2008).

Firstsource Solutions rose 4.07% to Rs 12.80 after the company reported a consolidated net profit of Rs 28.28 crore in Q2 September 2008 as against net loss of Rs 50.04 in Q1 June 2008. The company declared the results during market hours today, 24 November 2008.

India's largest copper maker by sales Sterlite Industries was down 1.71% to Rs 215. Reports it expects a 4 lakh tonne a year capacity copper smelter in south India to be shut for about a month following a breakdown pulled the stock to a day's low of Rs 202.25.

Other metal shares dropped on fears the global financial crisis may crimp demand. Hindalco Industries (down 0.87% to Rs 51.45), and Tata Steel (down 3.78% to Rs 154), declined. The BSE Metal index lost 1.55% to 4,309.73.

India's top oil exploration firm by market capitalisation Oil & Natural Gas Corporation (ONGC) slipped 2.04% to Rs 676 on profit booking after surging 6.10% on Friday, 21 November 2008. Friday's surge in the stock was triggered by the company along with its partners bagging 20 oil & gas exploration block under the seventh round of the government's New Exploration Licensing Policy (NELP-VII).

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) gained 0.95% to Rs 1138.10 in choppy trade on reports the company has raised around Rs 2,000 crore through five-year bonds at an annualised coupon of 11.45%. The stock swung between a high and low of Rs 1155 and Rs 1095 respectively so far in the day.

India's top truck maker by sales Tata Motors declined 0.82% to Rs 132.50 on reports the company's Jamshedpur plant which manufactures commercial vehicles will be closed for five days from 25 November 2008 to 29 November 2008 plant amid slowing demand.

Frontline power generation companies gained on reports they are scouting for coal assets in Indonesia after the share prices of major mines there witnessed steep erosion following the global financial turmoil. India's largest private sector power generation firm by sales Tata Power rose 4.45% to Rs 659 and was the top gainer from the Sensex pack. Reliance Infrastructure (up 2.90% to Rs 499.25), NPTC (up 2% to Rs 153.25) and Reliance power (up 6.32% to Rs 111.05), gained. The BSE Power index gained 1.94% at 1,619.44 and was the best performer among the BSE secroral indices.

Capital goods heavyweights saw mixed trend on reports the government has proposed a Rs 50,000-crore special dedicated fund to provide loans to infrastructure projects. The BSE Capital Goods index declined marginally by 0.03% to 6,554.72.

The country's largest power equipment maker by sales, Bharat Heavy Electricals, rose 1.19% to Rs 1296.50 after it bagged an order worth Rs 240 crore from Coastal Gujarat Power (CGPL), for manufacturing and supplying transformers to Tata Power's power project in Gujarat. India's top engineering and construction firm by sales, L&T, fell 1.33% to Rs 750.25.

IVRCL Infrastructure & Projects fell 5.05% to Rs 125.10 despite bagging orders worth Rs 529.79 crore. The company announced the order win during trading hours today, 24 November 2008.

State run oil marketing companies surged after crude oil fell 1.5% to $49.20 a barrel as the US government's $306 billion rescue plan for Citigroup failed to banish investors' gloom. HPCL (up 6.81% to Rs 244), BPCL (up 2.34% to Rs 335.10), and IOC (up 7.52% to Rs 408), surged.

Lower oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Reliance Industries was the top traded counter on BSE with a turnover of Rs 281.70 crore followed by Reliance Capital (Rs 249.50 crore), State Bank of India (Rs 228.25 crore), Reliance Infrastructure (Rs 168.20 crore) and ICICI Bank (Rs 140.20 crore).

Unitech led the volumes chart on BSE clocking volumes of 1.66 crore shares followed by GVK Power Infrastructure (1.20 crore shares), Suzlon Energy (1.10 crore shares), Reliance Natural Resources (89 lakh shares) and Reliance Capital (Rs 55.80 lakh shares).

Dabur India rose 0.95% to Rs 75.20 after the company acquired 72.15% stake in skin care products firm Fem Care Pharma for Rs 203.7 crore in an all cash deal. Shares of the latter rose 4.68% to Rs 690. The company made this announcement after trading hours on Friday, 21 November 2008.

United Spirits soared 14.97% to Rs 804.70 on reports foreign liquor company Diageo could buy 14.99% stake, besides a distribution partnership in the Indian market.

Spice Communication surged 19.10% to Rs 30.55, snapping eight session of losses. The stock had shed 24.55% in eight successive sessions to Rs 25.65 on 21 November 2008 from Rs 34 on 10 November 2008.

EID Parry India slipped 0.93% to Rs 138.20 despite acquisition of a 48% stake in a US nutraceuticals company Valensa International. The company made this announcement after trading hours on Friday, 21 November 2008.

Asian markets were trading lower today, 24 November 2008. Key benchmark indices in China, Hong Kong, Singapore, South Korea, and Taiwan were down by between 0.25% and 3.67%. Japanese markets were closed for a public holiday.

Pre Session Commentary - Nov 24 2008

Today markets are likely to open negative as on the week end markets had gained enough. The other Asian markets have also opened with a blood bath. However, one may witness some extremely volatility in the markets. On the global front APEC leaders have on Sunday chalked out plans to prevent the economic downturn. The markets today would be little choppy and volatile.

On Friday, domestic markets opened with phenomenal gains and continued the trend through out the session. The European markets traded positive and the other Asian markets also helped keep the positive sentiments. Despite the profit booking in the mid session, the bulls helped the markets bounce back with short coverings. Sensex and Nifty gained by phenomenal 5.49% and 5.50% respectively. Power, Oil & Gas and CG gained phenomenal by 6.21%, 5.69%, and 5.59% respectively. During the trading session we expect the market to be trading volatile.

The BSE Sensex closed higher by 464.20 points at 8,915.21 and NSE Nifty ended higher by 140.30 points at 2693.45. The BSE Mid Caps and Small Caps closed with gains of 20.87 points at 2,916.66 and by 5.42 points at 3,390.76. The BSE Sensex touched intraday high of 8,988.03 and intraday low of 8,442.31.

On Friday, US markets closed with phenomenal gains. The heavy losses on the early of the week had prompted the bargain hunters to bid for stocks higher. Despite such gains on the last trading day of the week, the week finished with a loss of 8.4%.There are also speculations surrounding the Citi Group. The energy stocks moved up on the back of surge in the Crude oil prices. Crude oil futures for the January delivery rose by $1.41 or 2.8% to $51.34 a barrel on New York Mercantile Exchange. The oil surged on the back of speculations that OPEC would further cut the production to support the price.

The Dow Jones Industrial Average (DJIA) closed higher by 494.13 points at 8,046.42 NASDAQ index gained 68.23 points at 1,384.35 and the S&P 500 (SPX) also closed higher by 47.59 points to close at 800.03 points.

Indian ADRs ended positive. In technology sector, Infosys gained by 8.76% and Wipro ended high by 13.29% followed by Satyam that ended high by 6.98% and Patni Computers closing high by 6.53%. In banking sector ICICI Bank was high by 15.53%, while HDFC Bank gained 6.72%. In telecommunication sector, Tata Communication declined by (1.22%), while MTNL inclined by 6.79%. Sterlite Industries was high by 10.53%.

Today the major stock markets in Asia opened mixed. The Shanghai Composite is trading low by 31.69 at 1,937.69 Hang Seng is low by 171.84 points at 12,487.36. Further Japan''s Nikkei is high by 207.75 points at 7,910.79. Straits Times is also trading low by 30.01 points at 1,632.09 and South Korea’s Seoul Composite is low by 29.45 points at 974.28.

The FIIs on Friday stood as net sellers in equity and net buyers in debt. The Gross equity purchased stood at Rs 998.40 Crore and gross debt purchased stood at Rs 463.50 Crore, while the gross equity sold stood at Rs 1,654.50 Crore and gross debt sold stood at Rs 245.40 Crore. Therefore, the net investment of equity and debt reported were (Rs 656.10) Crore and Rs 218.10 Crore respectively.

On Friday, the partially convertible rupee ended at 50.04 per dollar, stronger by 0.3% on Thursday’s closing at 50.18. The gains on the last day of the week of stock markets helped. The large domestic funds also bought heavily on the late trading day. On the other hand foreign funds have sold a net $13.5 billon of Indian stocks.

On BSE, total number of shares traded was 27.58 Crore and total turnover stood at Rs 3,580.22 Crore. On NSE, total volume of shares traded was 59.48 Crore and total turnover was Rs 9,484.66 Crore.

Top traded volumes on NSE Nifty – Unitech with 46884893 shares, Suzlon Energy with total volume traded 35436275 shares, followed by ICICI Bank with 18205400 shares, DLF with 17666655 shares and Reliance Petro with 13155836 shares.

On NSE Future and Options, total number of contracts traded in index futures was 1360434 with a total turnover of Rs 16760.22 crores. Along with this total number of contracts traded in stock futures were 1242934 with a total turnover of Rs 11836.74 Crore. Total numbers of contracts for index options were 1353209 with a total turnover of Rs 18519.66 Crore and total numbers of contracts for stock options were 53296 and notional turnover was Rs 579.53 Crore.

Today, Nifty would have a support at 2,585 and resistance at 2,720 and BSE Sensex has support at 8,740 and resistance at 9,100.

US rallies late in the day

Late session rally on Friday help market trim its losses for the week

The third week of November, 2008 followed its previous two weeks in the sense that market witnessed extreme volatility in Wall Street and huge swings between indices. Once again indices finished in the red but losses would have been huge for the week that ended on Friday, 21 November, 2008 but for a late session rally on the very same day. Dour economic reports pointing their fingers towards a weak economic condition was the main reason for buyers to stay away once again. Federal Reserve cut its GDP growth estimates for the next few quarters in the US economy.

Uncertainty about the timing of an economic recovery and cautious guidance coming from most companies also unnerved the stock market once again. The three major indices ended the week with good losses.

The Dow Jones Industrial Average lost 451 (5.3%) for the week to end at 8,046.42. Tech - heavy Nasdaq lost 132.5 points (8.7%) to end at 1,384.35. S&P 500 lost 73.26 points (8.9%) to end at 800.03.

Uncertainty about the future of Citigroup was the main reason for this week's volatile movement. The stock price declined by 66% to a mere $3.5 per share as the company announced that it will cut 52,000 jobs in next few months.

Meanwhile at Washington, senators continued to mull over the bailout issue of the three auto giants in US - GM, Chrysler and Ford.

During the week, The Federal Reserve released its 2008 and 2009 projections for GDP. The report showed that the Fed reduced forecasts for GDP growth and inflation. For 2008, the Fed expects the economy will grow between 0.0% and 0.3%, down sharply from its previous forecast of 1.0% to 1.6%. The 2009 forecast now calls for growth between -0.2% and 1.1%, down from the previous forecast of 2.0% to 2.8%. The Fed also raised its unemployment forecast.

Fed officials felt real GDP would contract somewhat in the first half of 2009 and then rise in the second half of the year.

On Friday, 21 November, stocks at Wall Street ended with substantial gains. The Dow Jones industrial average closed up 494 points or 6% at 8,046, the Nasdaq gained 68 points or 5% to 1,384 and the S&P 500 surged 47 points or 6% to 800. Despite the strong gains, stocks still finished the week 8.4% lower due to heavy losses earlier in the week.

The rally was primarily fuelled by the news that President-elect Barack Obama would nominate New York Federal Reserve President Timothy Geithner as Treasury secretary. Indices were hovering in the red since the morning mainly due to weakness in the financial sector. Some news regarding the future of US economy pepped up investor sentiments later in the day.

Noticeable weakness came from Citigroup. Citi is reportedly weighing strategic options regarding its future, but claims it wants to keep itself together. Other than that, shares of GE slipped to decade low levels.

The tech sector showed some resilience, despite weakness in Dell. Dell posted better-than-expected earnings per share results for the third quarter, but got there by cutting costs, rather than by growing revenue.

Among major economic reports for the week, weekly initial jobless claims surged 27,000 to 542,000. Continuing claims jumped to 4.012 million from 3.903 million and reflected the difficulty of finding a new job.

The good economic news this week was found in the industrial and inflation reports. Industrial production increased 1.3% in October. Producer prices declined 2.8% in October while consumer prices declined 1%.

Housing starts continued to decline, falling 4.5% in October from the prior month to a seasonally adjusted annual rate of 791,000 units. Building permits, meanwhile, declined 12% to a seasonally adjusted annual rate of 708,000. The starts number provides another weak data point for fourth quarter GDP calculations

Among the earning news of the week, H-P came out with good earning report and gave an upward guidance in this grim economic scenario.

For the year, Dow, Nasdaq and S&P 500 are down by 39.3%, 47.8% and 45.5% respectively.

Weak Asian markets may trigger lower start

Key benchmark indices are likely to open lower today, 24 November 2008, in line with its Asian peers. The SGX November 2008 Nifty futures were down 32 points. However volatility will be high ahead of the derivatives expiry for November 2008 series on Thursday, 27 November 2008.

Asian markets were trading lower today, 24 November 2008, led by a sharp slide in financial counters as the fate of global banking giant Citigroup remains unclear. China's Shanghai Composite fell 1.30% or 25.58 points at 1,943.81, Hong Kong's Hang Seng lost 1.60% or 202.96 points at 12,456.24, Singapore's Straits Times was down 0.81% or 13.45 points at 1,648.65, South Korea's Seoul Composite slipped 2.32% or 23.29 points at 980.44 and Taiwan's Taiwan Weighted declined 1.75% or 72.80 points at 4,098.30. Japanese markets are closed today, 24 November 2008 for a public holiday.

Citigroup India holds equities worth over Rs 8,600 crore at Friday's, 21 November 2008 closing rates. Citi's assets in India include its equity investments in over 130 companies. As per Citigroup's CEO Vikram Pandit recent statements, the bank might look at selling some of its assets to stay afloat, rather than merge with some other bank.

US stocks rallied on Friday, 21 November 2008 as investors welcomed reports that President-elect Barack Obama unveiled his plan to combat the US economic crisis, instilling confidence about the administration's ability to take action. He also nominated a new treasury secretary Timothy Geithner, who has been closely involved in the rescue of Bear Stearns and AIG.

The Dow Jones industrial average jumped 494.13 points, or 6.54%, to 8,046.42. The Standard & Poor's 500 Index shot up 47.59 points, or 6.32%, at 800.03. The Nasdaq Composite Index climbed 68.23 points, or 5.18%, to 1,384.35.

Back home, key benchmark indices edged higher on Friday, 21 November 2008 as battered pivotals made a comeback snapping seven-day losses. A surge in US index futures and gains in European stocks boosted the domestic bourses. The BSE 30-share Sensex rose 464.20 points, or 5.49%, to 8,915.21 and the S&P CNX Nifty gained 140.30 points, or 5.50%, to 2693.45, on that day.

Foreign institutional investors (FIIs) were net sellers worth Rs 705.56 crore while mutual funds bought shares worth Rs 46.22 crore on Friday, 21 November 2008, according to provisional data on NSE.

SGX Nifty Live Update - 3 - Nov 24 2008

SGX Nifty currently at 2,670.0 trading -60.0 points

Daily Market Outlook - Nov 24 2008

Daily Market Outlook - Nov 24 2008

Weekly Technicals - Nov 24 2008

Weekly Technicals - Nov 24 2008

Aries Agro

We recommend a buy in Aries Agro from a short-term perspective. It is apparent from the charts of Aries Agro that it was on a medium-term down trend from September high of Rs 162 to its 52-week low of Rs 35 recorded in late October.

The stock found support at its 52-week low and began to consolidate sideways in the price range between Rs 35 and Rs 44 for almost four weeks. On November 21, the stock conclusively penetrated its 21-day moving average by gaining Rs 5.50 or 13.8 per cent accompanied with above 2-week average volume.

With this, the daily relative strength index has entered in to the neutral region from the bearish zone and weekly RSI is recovering from the ‘oversold’ territory. The moving average convergence and divergence is steadily rising towards the positive territory.

We are bulling on the stock from a short-term perspective. We anticipate the stock’s up move to prolong further until it hits our price target of Rs 51 in the approaching trading sessions. Traders with short-term perspective can buy the stock, while maintaining a stop-loss at Rs 42.

SGX Nifty Live Update - 2 - Nov 24 2008

SGX Nifty weakens , currently trading at 2,675.0 and is down 55.0 points

Good gains for precious metals

Gold manages highest weekly gain in past two months

Bullion metals ended substantially higher on Friday, 21 November, 2008. Gold and silver prices rose as the dollar weakened. Prices of the precious metals rose as investors were back to protect the appeal of the expensive metals.

On Friday, Comex Gold for December delivery rose $43.1 (5.8%) to close at $791.8 an ounce on the New York Mercantile Exchange. Earlier in the day, it touched a high of $801.9. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (21.5%) since then. For the week, gold prices ended higher by 6.6%. For the month of October, gold had ended lower by 18%. It was the biggest percentage loss for gold since February, 1983.

This year, gold prices have lost 5.5% till date. Futures have averaged $882 in 2008. The dollar index has gained 15% this year. For the third quarter ended September, 2008, gold prices ended lower by 5.1%. It was the first quarterly loss for the yellow metal since the second quarter in FY 2007. Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. For first quarter prices gained 10.7%.

On Friday, Comex silver futures for December delivery rose 45.6 cents (5%) to $9.505 an ounce. For the week, silver gained 0.15%. For the month of October, silver had slipped by 20%. Till date, silver has lost 36.5% this year. Silver had ended month and quarter of September 2008 with a loss of 10%. 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.

Precious metals gained on Friday after there were forecasts of further gloominess in the US economy in the coming months. It was reported that economists are forecasting that U.S. unemployment rate will reach 9%, from 6.5% currently, by the end of 2009 and the economy will shrink in each quarter until mid-2009.

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. Losses in equity markets had also forced traders to sell gold. Since past couple of weeks, precious metals, mainly gold, had dropped as traders tried to gain back some of the money that had lost in other markets.

At the currency market on Friday, the U.S. dollar declined versus major currencies including the euro and British pound as currency markets took the cue from gains in U.S. stocks. The dollar index, a measure of the greenback against a trade-weighted basket of six major currencies, fell to 87.658 from 88.233.

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. In the latest move, the Federal Reserve has cuts its target bank lending rate to 1% from 5.25% in September, 2007. The Fed did it in eight steps.

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 regains $50 level

Huge weekly drop for crude prices

Crude prices ended marginally higher on Friday, 21 November, 2008. Crude prices gained after quite a long time on reports of another production cut decided by OPEC members. Prices also rose due to a weak dollar.

On Friday, crude-oil futures for light sweet crude for January delivery closed at $49.93/barrel (higher by $0.51 or 1%) on the New York Mercantile Exchange. Prices reached a high of $147 on 11 July but have dropped almost 66% since then. For the week, prices fell by 13%. For this year in 2008, crude prices have dropped 55%.

Brent crude oil for January settlement rose $1.11 cents (2.3%) to $49.19 a barrel on London's ICE Futures Europe exchange.

For the month of October, 2008, crude prices ended lower by 32.6%, the biggest monthly drop since 1983.

As per reports, The Organization of Petroleum Exporting Counties will trim supplies by 3.8% this month as members implement an October agreement. Thirteen OPEC members, due to meet in Cairo eight days from now, are set to supply 30.98 million barrels a day this month compared with 32.2 million a day in October.

Prior to this, OPEC officials decided last month at its meeting at Vienna that OPEC will pare production by 1.5 million barrels a day w.e.f 1 November, 2008. The official production quota is currently 28.8 million barrels, and it decided to cut by 1.5 million in November. After that, Organization of the Petroleum Exporting Countries had pledged to cut production even deeper if prices are not in the $70-$90 range in its 1st December meeting.

In its latest monthly report last week, OPEC, reduced its forecast for average oil consumption next year by 530,000 barrels a day, or 0.6% to 86.68 million barrels a day. It revised lower its 2008 view by 260,000 barrels a day to show minor growth of 280,000 barrels a day. In 2009, it expects world oil demand to rise by more than 500,000 barrels a day, which is a downward revision of around 200,000 barrels.

For the third quarter of the year crude prices ended lower by 28%. This was the biggest quarterly drop since 1991. Before that, crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. For the month of September, prices registered drop of 13%.

At the currency market on Friday, the U.S. dollar declined versus major currencies including the euro and British pound as currency markets took the cue from gains in U.S. stocks. The dollar index, a measure of the greenback against a trade-weighted basket of six major currencies, fell to 87.658 from 88.233.

Against this background, reformulated gasoline gained 5 cents to end at $1.09 a gallon and January heating oil rose 2 cents to $1.71 a gallon.

December natural-gas futures rose 16 cents to end at $6.48 per million British thermal units.

Trading Calls - Nov 24 2008

Nifty (2693) Sup 2582 Res 2761

Buy L&T (757) SL 750
Target 770, 775

Buy IB Real Estate (100) SL 97 Target 106, 108

Buy Axis Bank (411) SL 407
Target 419, 421

Sell Jindal Steel (665) SL 670 Target 655, 652

Daily News Roundup - Nov 24 2008

Tata Motors has decided to shut down its Jamshedpur plant from November 25 to 29.(BL)
Reliance Power has said it hopes to commission the first phase of the 600 MW Rosa Power project by September 2009, six months ahead of schedule.(BL)
Federal Bank to hire 3,000 persons in two to three years.(BL)
Maruti Suzuki India says it is targeting sale of about 50,000 units of its latest model-A-star in the domestic market.(FE)
Jet Airways is likely to announce a 20% cut in the salaries of its pilots, engineers and some other staff.(DNA)
Dabur India acquires a 72.2% stake in Fem Care Pharma for Rs2bn in an all-cash deal.(TOI)
Aditya Birla Minerals, a subsidiary of Hindalco Industries, has suspended work on the Ezperanza South Project at its Mount Gordon operations in Australia.(DNA)
Reliance Industries’ plans to sell petrol and diesel from its export-oriented refinery at Jamnagar, Gujarat.(ET)
Anant Raj Industries says it is reducing hospitality plans for the current fiscal due to a slowdown in the sector.(DNA)
Reliance Industries’ oil deals with Kurdistan are illegal, says Iraq Oil Minister.(TOI)
Wockhardt in talks with PE firms to raise US$200mn.(ET)
Tata owned Jaguar Land Rover is in secret talks with the British government for a 1bn pound loan.(FE)
SAIL plans to approach market for borrowing 50% of its Rs540bn expansion plan.(FE)
DLF’s Mumbai projects are getting delayed.(DNA)
Marico Industries is looking at more acquisitions in Africa after it acquired brands in South Africa and Egypt.(ET)
Reliance Industries raised Rs20bn through five year bonds at an annualized coupon rate 11.45%.(BS)
Maruti Suzuki has gone for a 5% cut in production costs for all cars. (ET)
Jet Airways in talks with SBI, PNB to raise Rs15bn.(Mint)
Cummins India to sell its rental business to Indian subsidiary of Agrreko Plc.(BL)
Cobra Beer up for sale for an estimated 200mn pounds. (ET)
Satyam Computer Services, is seen as the favourite to win a significant IT outsourcing contract from Indian Railways.(ET)
Air India has decided to reduce airfares by 12%, which is likely to be implemented in mid-December. (ET)
National Housing Bank has increased the refinance rate to 12% from 9% earlier.(BS)
Ranbaxy Fine Chemical’s plan to acquire the US-based specialty chemicals maker Mallinckrodt Baker is facing delays because of valuation problems.(ET)
Tata Tea is gearing up to make an entry into the energy drinks segment identifying fortified beverages as a growth area.(ET)
Sun Pharma's US arm, Caraco Pharmaceutical, will file a response to the US FDA warning on its quality standards.(ET)
Maruti Suzuki will launch its first ‘Made in India’ compact car in 2010-11. (ET)
Glenmark said it has received the US FDA approval for marketing Ranitidine tablets, used to treat and prevent ulcers.(TOI)
Promoter of Great Offshore may dilute stake to pay up dues.(ET)
UK-based Serco Group has acquired Gurgaon-based BPO firm InfoVision. (ET)
Future Group has cut prices on some products to pass on the benefits of a sharp decline in some commodities. (BS)
Tata Power, Reliance Infrastructure and GMR Energy are scouting for coal assets in Indonesia after the share prices of major mines there witnessed steep erosion.(BS)

Aviation fuel may become ‘declared goods’ by year-end.(BL)
Government released a draft Bill to create a debt management office, which would be a statutory corporate body acting as an agent of both the central and state governments.(FE)
The Commerce Ministry is mulling a temporary licensing regime for import of select items. (ET)
India’s forex reserves fell by US$5bn during the week-ended 14th November 2008.(BS)
Companies planning duty-free shops in the country will need to take a separate clearance for the local Customs Authorities. (ET)
The 12 major state-owned ports, which handle 70% of India’s import-export traffic handled total traffic of 42.2mn tonnes compared with 44.5mn tonnes in the same month last year.(DNA)
Government is planning to set up a special dedicated fund to provide loans to infrastructure projects being developed by private companies as well as by government-private JV.(ET)
Government asks regulator TRAI to review the five-year old termination charge of 30 paise a minute per call for fixed and mobile telephony.(ET)
Cabinet Committee on Economic Affairs has approved awarding of 44 oil and gas blocks under Nelp-VII.(DNA)
Government is likely to allow foreign direct investment in ‘investment companies’.(ET)
Global meltdown may trigger 0.5mn job losses in the textile sector alone within five months if corrective measures are not taken, says Commerce Secretary.(TOI)

Enjoy it, don’t accept it!

It is the mark of an educated mind to be able to entertain a thought without accepting it.

The bulls may have enjoyed the strong bounce back on Friday after a seven-day rout. Don’t accept it as yet though we could see a few hundred point gains intra-week for the Nifty. This week may be a bit heavy in terms of news flow. Trading may be a lot more volatile given the F&O expiry on Thursday and anxiety over the Q2 GDP data, to be unveiled on Friday. The reports of the Government planning a mega fund for financing key infrastructure projects may provide some more succor to a battered market. But, what the market seems to be eagerly awaiting is another round of rate cuts. The RBI governor will meet top bankers on Nov. 28 to assess the local situation. With inflation cooling substantially from August's peak, and expectations of further moderation on the cards, the central bank may well oblige the markets and India Inc. What is uncertain at this point in time is the timing and the size of the revision in policy rates.

One good thing for global bulls is that the US markets will be shut on Thursday due to Thanksgiving Day, and will have only half-day on Friday. But, before that one will have to contend with some more grim data on the health of the world's biggest economy, including the revised Q3 GDP data. Reports of a tacit agreement between Citigroup and the US government on a bailout, coupled with Barack Obama's scheduled announcement of his crack economic team later today might boost sentiment. In the meantime, the UK will announce its own stimulus package today while the European Commission (EC) will unveil plans to help the eurozone recover from the unprecedented financial crisis. OPEC is to hold an emergency meeting on Nov. 29, to discuss the sharp cut in oil prices. The largely Arab-dominated oil producers' cartel might also consider fresh steps to arrest the slide in crude prices.

Coming to today's trade, we see a cautious opening after Friday's big rally. Also, Asian markets are down 1-2% this morning. The Japanese markets are shut today. We expect the market to be more sideways and choppy. The downside may be capped unless the economic reports (global and local) turn out to be really awful. Any other negative news from global markets could add pressure. The crisis of confidence is still in place, as global fund flows are drying up in the face of the massive de-leveraging process.

Though stocks may have fallen to attractive levels, the pain in the real economy could last much longer than one can imagine. Long-term investors can, however can dabble in stocks from time to time (and take home money in the short term too). Opportunities to buy will be many over the next few months.

FIIs were net sellers of Rs7.05bn (provisional) in the cash segment on Friday while the local institutions pumped in Rs462.2mn. In the F&O segment, foreign funds were net buyers of Rs3.23bn. On Thursday, FIIs were net sellers at Rs6.5bn in the cash segment. Mutual Funds net sold Indian shares worth Rs987mn on the same day.

US president-elect Barack Obama is scheduled to formally announce formation of his crack economic team later today. US stocks rallied on report that Obama would nominate New York Federal Reserve Bank President Timothy Geithner to be the nation's Treasury secretary. The Dow Jones Industrial Average gained 6.5%, or 494 points, to close at 8,046. Obama on Saturday offered an outline of his economic recovery plan to create 2.5mn jobs by 2011, but details of the plan are still under wraps.

Citigroup and the Bush administration have reportedly reached an agreement over the troubled US banking major's bailout after its stock plunged 60% last week amid uncertainty surrounding its financial health. The plan will help remove billions of dollars in toxic assets from Citi's balance sheet, the Wall Street Journal (WSJ) reports. The agreement, which is still under discussion and could fall apart, the leading American financial newspaper adds.

Wall Street will have a truncated week due to the Thanksgiving holiday. Black Friday is the traditional start of the US Christmas shopping season. For a holiday-shortened trading week, there's a lot on tap, with a series of economic reports jammed in the day before Thanksgiving. The buffet includes revision of Q3 GDP data, reports on jobless claims, income and spending, manufacturing, housing and consumer sentiment.

According to the Stock Trader's Almanac, between the Wednesday before Thanksgiving and the Monday after, the Dow has gained in 14 of the last 20 years by an average of 470 points. But in a year in which seasonal factors haven't been relevant, the Thanksgiving cheer that often pushes stocks higher may not be in effect. Holiday trading weeks are typically low trading volume and that can exacerbate volatility.

Meanwhile, British Prime Minister Gordon Brown is also expected to unveil his big economic stimulus package, consisting largely of temporary tax cuts, today. "To do nothing ... would be irresponsible," Brown said Sunday. "To take action would be to prevent things getting worse."

Asian stocks declined today, as bank funding costs increased and Suncorp-Metway (Australia’s third-largest insurer) raised its forecast for bad debts, fueling concern that the credit crisis is hurting profits at financial companies. The yen has climbed against the dollar and the euro as discussions over a possible US government bailout of Citi prompted investors to shun higher- yielding overseas assets funded from Japan.

Most Asian markets fell, with Japan shut for a holiday. The MSCI Asia Pacific (ex-Japan) Index declined 1.1% to 205.90 as of 10:11 a.m. in Hong Kong. Financial stocks contributed the most to the drop. The index is down 61% this year. Australia’s S&P/ASX 200 Index fell 0.8% to 3,388.70. South Korea’s Kospi Index lost 2.4%. The Hang Seng was down 1.4%.

US stocks rallied Nov. 21, pushing the S&P 500 up 6.3%, after President-elect Barack Obama picked New York Federal Reserve Bank chief Timothy Geithner to head the Treasury. The Dow Jones Industrial Average rose 494 points, the fifth-biggest single-session point gain ever, according to Dow Jones. The Standard & Poor's 500 index gained 6.3% and the Nasdaq Composite added 5.2%.

Stocks rallied in the morning on reports that troubled Citi might put itself up for sale. But the company's CEO shot down the rumors in a call with senior managers, sending Citi's shares and the broader market lower.

The market managed to snap back in the last hour of trading as reports about the president-elect's cabinet appointment circulated. The Dow had been down around 32 points as of 3:00 p.m. ET and spiked as much as 519 points after the reports began to circulate.

US stocks had also been primed for a bounce back anyway, after the S&P 500 ended the previous session at an 11-1/2-year low and the CBOE Volatility index ended at an all-time closing high.

For the week, the Dow lost 5.3%, the Nasdaq lost around 8.5% and the S&P lost 8%.

US light crude oil for January delivery rose 51 cents to settle at $49.93 a barrel on the New York Mercantile Exchange, in the first day of trading for the new contract.

For the first time in 3-1/2 years, gasoline prices fell below $2 a gallon, losing 3.1 cents to a national average of $1.989 a gallon. Gasoline prices have been dropping for over two months. In that time, prices have lost $1.84 a gallon, or over 52%.

The dollar fell versus the euro and gained against the yen. COMEX gold for December delivery rallied $43.10 to settle at $791.80 an ounce.

Treasury yields bounced back on Friday after the two-year, 10-year and 30-year government bonds all finished the previous session at the lowest levels since the Federal Reserve started keeping records in 1962.

The yield on the 3-month Treasury bill hung close to 68-year lows of zero, versus a yield of 0.01% on Thursday. The 3-month - seen as the safest place to put money in the short term - last hit these levels in September as investor panic peaked. The low yield means nervous investors would rather preserve their money despite no interest rather than risk the stock market.

Borrowing rates worsened a bit. The 3-month Libor rate rose to 2.16% from 2.15% Thursday, while overnight Libor rose to 0.47% from 0.44% on Thursday. Libor is a key bank lending rate.

Stocks in Europe couldn't hold on to early gains on Friday. After early gains of as much as 1.9% on optimism over a report Citigroup may sell itself, the Dow Jones Stoxx 600 index ended 2.6% lower to 181.91. The French CAC 40 fell 3.3% to 2,881.26 and the UK's FTSE 100 dropped 2.4% to 3,780.96. Germany's DAX 30 slipped 2.2% to 4,127.41.

Indian shares bounced back with a vengeance, snapping a seven-session losing streak, as stocks across Asia and Europe rebounded amid reports that troubled Us banking major Citigroup was considering an outright sale. The New York Bank's board will discuss the proposal at a meeting later today.

Some analysts also attributed today's gains to a short squeeze after the key indices lost some 20% in seven successive sessions. The Prime Minister's reassurance that the Government will take every step possible to combat the fallout from the global financial turmoil also had some soothing effect on sentiment.

The BSE Sensex ended the day at 8,915, up 464 points or almost 5.5% from the previous close. It earlier touched a high of 8,988 and a low of 8,442. The Nifty surged by 140 points or 5.5% to close at 2,693 after being as high as 2,718 and as low as 2,539.

The BSE Small-Cap and Mid-Cap indices were not so lucky as their frontline peers. The two broader market indicators gained just 0.2% and 0.7%, respectively.

Barring Real Estate, all the BSE sectoral indices ended up, led by Power (6%), Oil & Gas (5.7%), Capital Goods (5.6%), IT (4.85%) and Banking (4.6%). The BSE Metals, Auto, Pharma, Consumer Durable and FMCG indices gained 1.5% to 3%.

The BSE Realty index ended down 2%, off the day's lows. At one point, it was down 9% after yesterday's rout. The sector continues to bear the brunt of the worsening outlook amid a supply glut, dwindling demand and liquidity crunch.

Within the Sensex, the big gainers were Reliance Infra (14%), RCOM (13.6%), Sterlite (9.1%), NTPC (8.8%), HDFC (8.5%), SBI (8.3%), TCS (7.9%), BHEL (7.3%), L&T (6.75%), RIL (6.5%) and ONGC (6.1%).

Maruti, Tata Motors, Infosys, ICICI Bank, Wipro, Bharti Airtel, HDFC Bank, Grasim and Hindalco were the other top gainers, rising by 3-6%. DLF (3.4%), Jaiprakash Associates (2%), ACC (2%) and Tata Power ended on the losing side.

GVK Power, Indo Tech Transformers, IVRCL Infra, Deccan Chronicle, NALCO, Jai Corp, Great Offshore, Jagran Prakashan, 3M India, LIC Housing, Ruchi Soya, KEC International, Indiabulls Realty and Suzlon were the notable gainers outside the main indices.

Ultratech, Usha Martin, Gujarat Fluro, Aptech, Finolex Cables, Amtek India, JSW Steel, Ashapura Minechem, KEI Industries, Unity Infra, Greaves Cotton, Dredging Corp., United Spirits, Future Capital, Everest Kanto, Jubilant Organosys, KLG Systel, Bhshan Steel and Megasoft were among the top losers.

The market breadth continued to be negative, as 1,177 shares advanced on the BSE and 1,293 shares declined, while 96 scrips remained unchanged.

Total turnover in the BSE cash segment was at Rs35.8bn compared to Rs28.99bn on Thursday. Traded volume too increased to 275.8mn shares from 221.7mn shares in the previous session.

On the NSE, the cash segment turnover was Rs94.85bn as against Thursday's Rs77.94bn. Traded volume stood at 594.79mn shares versus 483.6mn shares traded in yesterday's session.

FIIs were net sellers of Rs7.05bn (provisional) in the cash segment today while the local institutions pumped in Rs462.2mn. On Thursday, the foreign funds were net sellers at Rs6.5bn in the cash segment. Mutual Funds net sold Indian shares worth Rs987mn on the same day.

Morning Note - Nov 24 2008

Morning Note - Nov 24 2008

SGX Nifty Live Update - Nov 24 2008

SGX Nifty currently trading at 2,695.0 and is down 35.0 points

Jeremy Grantham Newsletter

Jeremy Grantham Newsletter
(Includes Part 2)