Microsoft - first ever layoff ..

The rumor that Microsoft was set to lay off people on January 15th, 2009 is no longer a rumor but a fact. Staff at Microsoft have been informed that the company is readying major layoffs to its worldwide operations and it's not a small cut, either.

Currently Microsoft employs about 90,000 people across the world and from what we're hearing, some 15,000 of those are expected to be giving marching orders come January 15th. That's almost 17 percent of Microsoft's total work force, not exactly a small number.

So far, we haven't managed to confirm what departments or regions will be hit the worst, but we're hearing that MSN might be carrying the brunt of the layoffs. We're also hearing rumors about the possibility of somewhat larger staff cuts at Microsoft EMEA (Europe, Middle East and Africa).

It's unlikely that Microsoft will be laying off a lot of people in departments and regions that are doing well, and considering the recent upturn in console sales, we have a feeling that at least most of the people working in the Xbox 360 departments will be pretty safe.

The layoffs will take place a week before Microsoft's Q2 earnings report, which takes place on the 22nd of January 2009, and it doesn't seem like the date set for the layoffs is coincidental. We'll bring you more on this subject as it unfolds.

via Fudzilla

BSE Bulk Deals to Watch - Jan 1 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
1/1/2009 524412 AAREY DRUGS SHAH JIPAL PINESHKUMAR B 27100 18.45
1/1/2009 532919 ALLIED COMP RAJEEV MIMANI B 100000 0.56
1/1/2009 505506 AXON INFOTEC BDS SHARE BROKERS LTD B 4001 10.64
1/1/2009 532946 BANG MARUTI SECURITIES LTD B 96486 154.49
1/1/2009 532946 BANG KUNDAN LEASING AND FINVEST PRIVATE LIMITED S 83500 154.70
1/1/2009 505923 CEEKAY DIAKI SHILPA KETAN SHAH S 23488 32.30
1/1/2009 500142 FGP LIMITED MEGA RESOURCES LTD S 104406 1.34
1/1/2009 532996 FIRST WIN VIPUL PANNALAL SHAH S 107850 21.05
1/1/2009 513337 GUJ.TOOLROOM DEVANG JAYANTKUMAR GADOYA B 20000 11.85
1/1/2009 512559 KOHINORFOODS TEMPTATION FOODS LTD B 200000 89.00
1/1/2009 532791 PYRAMID SAIM LATIN MANHARLAL SEC PVT LTD B 211323 41.69
1/1/2009 532791 PYRAMID SAIM BP FINTRADE PRIVATE LIMITED B 438286 41.27
1/1/2009 532791 PYRAMID SAIM BP FINTRADE PRIVATE LIMITED S 422892 41.22
1/1/2009 531898 SANGUINE MD KHAITAN WEAVING MILLS LTD S 103723 6.19
1/1/2009 531644 TOKYO FINANC MAYURKDESAI B 34900 3.25

NSE Bulk Deal Watch - Jan 1 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
01-JAN-2009,HCIL,HIMADRI CHEMICALS AND IND,HIMADRI DYES & INTERMEDIATES LTD,BUY,400000,122.28,-
01-JAN-2009,IBREALEST,Indiabulls Real Estate Li,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,BUY,2089000,147.64,-
01-JAN-2009,KOHINOOR,Kohinoor Foods Limited,TEMPTATION FOODS LTD,BUY,200000,89.00,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,BUY,192120,40.99,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,DINDAYAL BIYANI STOCK BROKERS LTD,BUY,157067,40.30,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,KSHITIJ-PORTFOLIO-PVT.-LTD.,BUY,600000,42.28,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,MULTIPLIER S AND S ADV PVT LTD,BUY,203254,40.06,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,REETU-BHASIN,BUY,200000,38.31,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,YUVAK SHARE TRADING PVT LTD,BUY,428656,40.28,-
01-JAN-2009,RAJTV,Raj Television Network Li,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,BUY,69211,48.51,-
01-JAN-2009,CUBEXTUB,CUBEX TUBINGS LTD,AGGARWAL ADITYA,SELL,40011,11.50,-
01-JAN-2009,HCIL,HIMADRI CHEMICALS AND IND,DAMODAR PRASAD CHOUDHARY,SELL,400000,122.28,-
01-JAN-2009,KAUSHALYA,Kaushalya Infrastructure,COMPACT FINSTOCK PRIVATE LIMITED,SELL,325000,10.88,-
01-JAN-2009,KOHINOOR,Kohinoor Foods Limited,VENTURE BUSINESS ADVISORS PVT LTD,SELL,200055,89.00,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,SELL,156120,40.92,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,DINDAYAL BIYANI STOCK BROKERS LTD,SELL,157067,40.50,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,KSHITIJ-PORTFOLIO-PVT.-LTD.,SELL,500000,42.35,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,MULTIPLIER S AND S ADV PVT LTD,SELL,205476,40.52,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,PUNJAB NATIONAL BANK,SELL,200000,38.30,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,REETU-BHASIN,SELL,100000,40.71,-
01-JAN-2009,PSTL,Pyramid Saimira Theatre L,YUVAK SHARE TRADING PVT LTD,SELL,398301,40.28,-
01-JAN-2009,RAJTV,Raj Television Network Li,ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,SELL,39211,48.49,-
01-JAN-2009,ZICOM,Zicom Electronic Security,SHEETAL SANJAY PALECHA HUF,SELL,87450,111.10,-

Post Session Commentary - Jan 1 2009

The Indian market brought cheer on the first day of the new calendar year 2009 by closing with handsome gains. The market rallied during the trading session tracking firm closing of the US markets along with the fall in the weekly inflation figures to 6.38% for the week ended December 20 as against 6.61% reported the previous week. Apart from this, hopes of further rate cut by the Central bank on easing of inflation along with expectation of second stimulus package by the government also added to the positive sentiments. The market kept on trading in the positive territory throughout the trading session.

The domestic market opened on a positive note and kept on trading flat till the mid session but made a sharp turn around to march forward tracking the fall in inflation figure and finally closed the day on an upbeat note. From the sectoral front, all the sectoral indices closed in positive but most buying was witnessed from the Realty and Metal indices that closed with gains of more than 6% each. IT index also followed the trend to close more than 4%. The BSE Sensex close above the 9,900 mark and Nifty above 3,000 mark.

The exports in November 2008 fell 9.9% to $11.5 billion, a second consecutive monthly fall as the global slowdown slashes demand, data released by the government during trading hours today, 1 January 2009, showed. Apart from this, the Centre''''s fiscal deficit till November 2008 has surpassed the budget estimates for the entire 2008-09 by 32% and may deteriorate further with the government increasing public expenditure and reducing taxes to battle slowdown. Fiscal deficit stood at Rs 1,76,510 crore at the end of November 2008, against the Rs 1,33,287 crore target for the current fiscal as revenues dwindled and expenditure, particularly non-plan, soared, the figures released by the Controller General of Accounts (CGA) on Wednesday, 31 December 2008 stated.

Among the Sensex pack 28 stocks ended in Positive territory and 2 ended in red. The market breadth was strong as 2,001 stocks closed in green while 493 stocks closed in red and 66 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 256.15 points at 9,903.46 and NSE Nifty closed up by 74.30 points at 3,033.45. The BSE Mid Caps and Small Caps also ended with gains of 84.05 points and 127.30 points at 3,319.10 and 3,810.41 respectively. The BSE Sensex touched intraday high of 9,921.70 and intraday low of 9,711.64.

Gainers from Sensex Pack are Reliance Communications closed higher (7.99%) along with Tata Motors (7.48%), Satyam Computers (7.17%), Wipro (6.17%) and L&T (6.11%).

Losers from the BSE Sensex pack are Ranbaxy Labs closed lower by (0.97%) followed by ITC (0.03%).

The Realty index closed up by (6.52%) or 148.30 points at 2,422.43. Pushed it up are India Bull Real closed higher by (18.30%) along with Ansal Infra (7.23%), Unitech (9.61%), HDIL (8.20%), Parsavnath (6.67%), Sobha Developers (4.71%) and Penland (4.70%).

The Metal index closed higher by (6.02%) or 314.03 points at 5,528.38. Major gainers are NMDC (16.37%), Sesa Goa (8.11%), SAIL (6.84%), Ispat Industries (5.14%), Sterlite Industries (5.70%) and Tata Steel (5.49%).

The Capital Goods index gained (4.73%) or 327.09 points at 7,238.21. Scrips that closed in green are Alstom Projects (7.08%) followed by L&T (6.11%), Crompton Greaves (6.19%), Havells India (5.88%), Praj Industries (5.86%), SKF (2.93%), AIA Engineering (4.67%) and ABB (4.49%).

The IT index closed up by (3.83%) or 85.23 points at 2,313.19. Major gainers are NIIT Ltd (7.34%), Satyam Comp (7.17%), Mphasis (6.68%), HCL Tech (6.34%), Wipro (6.17%), Tech Mahindra (5.73%), Rolta India (4.31%).

The Auto index grew by (3.12%) or 76.17 points to close at 2,520.88. Pushed it up are Tata Motors higher by (7.48%) along with Maruti Suzuki (5.56%), Escorts (5.38%), Bajaj Auto (4.47%), Exide Industries (3.43%), Bharat Forge (3.22%) and Ashok Leyland (3.20%).

The Power index gained (2.94%) or 53.84 points at 1,883.15. Scrips that closed in green are Suzlon Energy (6.42%) followed by Crompton Greaves (6.19%), GVK Power (6.07%), Reliance Infra (5.66%), Neyvelli Lignite (5.28%), Lanco Infra (4.73%) and ABB (4.49%).

The BSE Bankex index closed with gains of (2.39%) or 130.47 points at 5,585.01. Major gainers are Indusind Bank (3.98%) along with Kotak Bank (3.81%), Yes bank (3.79%), ICICI bank (3.50%), IDBI Bank (2.88%), Axis Bank (2.50%), Bank Of India (2.43%), Oriental bank (2.28%) and SBI (2.14%).

Nifty regains 3,000 level; turnover low

Buying in bluechip shares in the interest rate sensitive banking, auto and realty sectors propelled the key benchmark indices higher on the first day of the new calendar year 2009. The BSE 30-share Sensex advanced 256.15 points, or 2.66%. The S&P CNX Nifty settled above the psychological 3,000 mark. The market breadth was strong on buying momentum for small and mid-cap stocks. All the BSE sectoral indices logged gains. However turnover was low

Hopes of further fall in interest rates, a likely fuel price cut, an expected second economic stimulus package from the government and firm US markets overnight boosted the domestic bourses. The market remained in green throughout the trading session.

Stocks shrugged off weak economic data. Exports dipped 9.9% in November 2008 to $11.5 billion, a second consecutive monthly drop as the global slowdown slashes demand, data released by the government during trading hours today, 1 January 2009, showed.

The trade deficit narrowed to $10.07 billion in November 2008 compared with $10.54 billion in October 2008. Imports were up an annual 6.1% at $21.57 billion in November 2008, while oil imports rose 11.9% during November 2008 from a year earlier to $7.25 billion, government data showed.

On the bourses, a rally in mid-morning trade was followed by a small correction in early afternoon trade. The market recovered from lower level in afternoon trade. It later cut gains. A recovery in index heavyweight RIL from lower level and rebound in IT pivotals from intra-day lows propelled key benchmark indices to day's high in mid- afternoon trade. Across the board buying demand propelled market further higher in late trade.

A further fall in inflation will provide room for the Reserve Bank of India to further cut interest rates. Inflation, measured by wholesale price index, fell to around 10-month low to 6.38% in the week ended 20 December 2008 from 6.61% in the previous week, data released by the government today, 1 January 2009 showed.

Expectations of cut in interest rates by the central bank have strengthened after the central bank governor D. Subbarao met Prime Minister Manmohan Singh on Monday, 29 December 2008. Budget constraints are forcing India to rely more on interest-rate cuts to buoy the economy. However, hopes for hefty rate cuts suffered a blow after a television channel on Wednesday, 31 December 2008, quoted finance ministry officials as saying rate reductions may not be steep.

The market, meanwhile, is also awaiting a second government stimulus package for the economy. Planning Commission Deputy Chairman Montek Singh Ahluwalia on Monday, 29 December 2008, said the government will come out with a second stimulus package for this fiscal and another package for fiscal year 2009-10 in the next few days to spur economic growth.

With industrial production contracting by 0.4% in October 2008, for the first time in 15 years, and the exports declining by over 12% during the month, the government came out with a stimulus package on 7 December 2008 to spur growth and help the industry combat the impact of global financial meltdown. As part of the stimulus package, the government cut excise duty by 4% across the board, except on petroleum products, and announced raising of the public expenditure by Rs 20,000 crore to boost demand.

As per recent reports, the government is likely to revise prices of petroleum products in a couple of weeks. Media reports quoted Petroleum Minister, Murali Deora, on Tuesday, 30 December 2008, as saying that the government is weighing all options to cut prices in line with the international prices.

All the key Asian & European markets were closed today for the new year day holiday. US stocks advanced on Wednesday, 31 December 2008 as the US Federal Reserve provided clarity on its plan to reduce mortgage costs and set a goal to buy $500 billion in mortgage-backed securities by mid-2009. The Dow Jones industrial average gained 108 points, or 1.25%, to 8,776.39. The Nasdaq Composite index increased 26.33 points, or 1.70%, to 1,577.03. The Standard & Poor`s 500 index climbed 12.61 points, or 1.42%, to 903.25.

The BSE 30-share Sensex advanced 256.15 points, or 2.66%, to 9,903.46. The Sensex opened 71.90 points higher at 9,719.21. At the day's high of 9,921.70, the Sensex surged 274.39 points in late trade. The Sensex gained 64.33 points at the day's low of 9,711.64 in early trade.

The S&P CNX Nifty gained 74.30 points, or 2.51%, to 3,033.45. The last time the Nifty had closed above the 3,000 mark was on 22 December 2008. Nifty January 2009 futures were at 3040.50, at a premium of 7.05 points as compared to the spot closing.

The BSE Sensex has risen 574.74 points or 6.15% from its recent low of 9328.92 on 26 December 2008. The barometer index lost 10639.68 points or 52.44% in the calendar year 2008, on global financial crisis. Nifty lost 3179.45 points or 51.79% in 2008.

The BSE Sensex had seen a sustained bull run during five years from 2002 to 2007, gaining 47.10% in 2007, 46.7% in 2006, 42.3% in 2005, 13.1% in 2004, 73% in 2003 and 3.52% in 2002.

The market breadth, indicating the overall health of the market, was strong on BSE with 2000 shares advancing as compared with 513 that declined. 62 shares remained unchanged.

The BSE Mid-cap index gained 2.60% to 3,319.10, underperforming the Sensex. The BSE Small-Cap index rose 3.46% to 3,810.41, outperforming the Sensex.

However, turnover was lower today. The total turnover on the BSE amounted to Rs 3076 crore, much lower than Rs 3746 crore yesterday, 31 December 2008. Turnover in NSE's futures & options (F&O) segment was Rs 22,397.66 crore, lower than Rs 30,033.26 crore on Wednesday, 31 December 2008.

All the BSE sectoral indices logged gains. The BSE Auto index (up 3.12%), the BSE Realty index (up 0.41%), the BSE Capital Goods index (up 4.73%), the BSE Teck index (up 3.17%), the BSE IT index (up 3.83%), the BSE Power index (up 2.94%), the BSE PSU index (up 3.23%), the BSE Metal index (up 6.02%), outperformed the Sensex.

The Bankex (up 2.39%), the BSE FMCG index (up 0.23%),the BSE Consumer Durables index (up 2.23%), the BSE HealthCare index (up 0.82%), and BSE Oil & Gas index (up 1.82%), underperformed the Sensex.

Ranbaxy was the lone loser from the 30-member Sensex pack. India's largest pharma company by sales lost 1.13% to Rs 249.55 on profit booking after a 16.69% surge in one week to 31 December 2008.

Auto shares rose on recent reports the government is likely to remove an additional excise duty of Rs 10,000-20,000 on large cars and sports-utility vehicles as part of the package for the automobile industry which is facing downturn in sales for want of cheap retail credit.

India's largest truck maker by sales Tata Motors galloped 10.78% to Rs 176.20 and was the top gainer from the Sensex pack.

India's top small car maker by sales, Maruti Suzuki India rose 6.53% to Rs 554.05, recovering from an intra-day low of Rs 515.10, even its sales declined 10% to 56293 units in December 2008 from December 2007. The company announced the monthly sales data during trading hours today.

Bajaj Auto (up 4.81% Rs 410), and Mahindra & Mahindra (up 3.33% to Rs 284), were the other gainers from the auto pack.

India's second largest cellular services provider by sales Reliance Communications (RCom) jumped 8.10% to Rs 245.65. During trading hours on Tuesday, 30 December 2008, RCom announced a nationwide rollout of GSM-based cellular services. GSM services would be available in 24,000 towns within a few months, RCom said positioning it to better take on Bharti Airtel. India's largest cellular services provider by sales Bharti Airtel rose 0.27% to Rs 717, off day's low of Rs 709

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) advanced 1.76% to Rs 1251.95, off the day's low of Rs 1235. A 14% jump in crude oil prices on Wednesday, 31 December 2008, has eased worries about pressure on RIL's refining margins. Crude oil prices have declined sharply over the past few months.

Oil exploration stocks surged after light, sweet crude for February 2009 delivery jumped $5.57 or 14% to $44.60 a barrel on the New York Mercantile Exchange on Wednesday, 31 December 2008. India's biggest state-run oil exploration firm by market capitalisation, Oil & natural Gas Corporation rose 2.60% to Rs 685 and Cairn India gained 0.12% to Rs 172.22

State run oil marketing firms were mostly in the red as the sharp surge in oil prices raised concerns of a higher subsidy burden. HPCL (down 2.82%), and BPCL (down 3.92%) slipped. However IOC gained 0.88% to Rs 430, off day's low of Rs 418. The state-run oil firms are making profit on sale of petrol and diesel thanks to a sharp fall in global crude oil prices over the past few months. But they continue to make losses on sale of LPG and kerosene at a controlled price.

Banking shares advanced on speculation falling bond yields and lower rates would accelerate loan growth and profitability. India's largest private sector bank by net profit ICICI Bank gained 3.71% to Rs 465 after it cut its main lending rates by 50 basis points from Wednesday, 31 December 2008

India's second largest private sector bank by net profit HDFC Bank rose 1.25% to Rs 1010.05. India's biggest bank in terms of total assets and branch network, State Bank of India, vaulted 1.84% to Rs 1312.

Realty shares rose on hopes of further sops in the second government stimulus package to boost the ailing sector. DLF (up 3.76% to Rs 292.50), Housing Development & Infrastructure (up 8.66% to Rs 141.20), and Indiabulls Real Estate (up 21.46% to Rs 159.30), edged higher.

IT pivotals gained on hopes the recent government stimulus packages may help revive the US economy. India's second largest IT exporter by sales Infosys rose 2.88% to Rs 1150, off day's low of Rs 1111.05. India's third largest IT exporter by sales Wipro rose 3.40% to Rs 241.45, after touching an intra-day low of Rs 233.35. IT firms derive over 50% of their revenues from the US.

India's largest IT exporter by sales Tata Consultancy Services rose 3.80% to Rs 496.25 on reports the company is likely to win two large BPO contracts estimated at $512 million following its acquisition of Citigroup Global Services in late 2008.

India's fourth largest IT exporter by sales Satyam Computer Services advanced 8.05% to Rs 183.85 on reports some of the big names in corporate India including the Anil Dhirubhai Ambani Group (ADAG), Mahindra British Telecom, L&T Infotech, are in in talks with some leading private equity funds - Texas Pacific, General Atlantic Partners and Carlyle to team up to acquire a strategic stake in Satyam.

ABM Knowledgeware was locked at 20% upper limit at Rs 16.52 after the company secured a contract worth Rs 116 crore. The company announced the contract win after trading hours on Wednesday, 31 December 2008.

The rupee was slightly weaker 48.73/74 per dollar from previous close of 48.70/72 on Wednesday, 31 December 2008 as stock markets rose. A weak rupee boost operating margins of IT firms as IT firms derive a lion's share of revenue from exports.

India's largest engineering and construction company by sales Larsen & Toubro extended early gains and closed 6.43% higher at Rs 824.20 on hopes lower interest rates would keep order flows strong and aid project funding. L&T, today, 1 January 2009, named Ravi Uppal, former head of global markets and member of the group executive committee of the ABB Group, as the managing director and chief executive officer its unit L&T Power.

India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) advanced 2.76% to Rs 1400 on a recent large order win. The company said on Friday, 26 December 2008, it had secured a Rs 5,040-crore contract from Jindal Power for setting up 2,400 megawatt power plant in Chhatisgarh.

India's largest power generation firm by sales, NTPC was up 0.55% to Rs 182 after the company said its second 500 megawatt super thermal power project at Sipat, Chhattisgarh, commenced commercial operation from today, 1 January 2009.

Metal shares advanced on firm prices on the London Metal Exchange. India's largest copper producer by sales Sterlite Industries jumped 5.77% to Rs 275.55. Its American depository receipt (ADR) gained 3.76% on Wednesday.

Tata Steel (up 5.65% to Rs 229.10), Steel Authority of India (up 7.55% to Rs 83.30), and Hindalco Industries (up 4.65% to Rs 54.05), edged higher.

Infrastructure shares rose on reports enhanced infrastructure spending is likely to be a priority of the forthcoming second government stimulus package for the economy. GVK Power & Infrastructure (up 6.29%), Punj Lloyd (up 4.96%), Reliance Infrastructure (up 6.76%), Jaiprakash Associates (up 5.78%), galloped.

Sugar firms rose on buzz a shortfall in production will drive prices higher. Bajaj Hindusthan (up 2.49% to Rs 74.55), Balrampur Chini Mills (up 4.42% to Rs 52), and Shree Renuka Sugars (up 1.56% to Rs 74.65), advanced.

Satyam Computer Services was the top traded counter on BSE with turnover of Rs 231.57 crore followed by Reliance Industries (Rs 148.82 crore), Reliance Communications (Rs 136.18 crore), Reliance Petroleum (Rs 113.18 crore) and Reliance Natural Resources (Rs 108.61 crore).

Unitech led the volume chart on BSE clocking volume of 1.98 crore shares followed by Reliance Natural Resources (1.84 crore), Suzlon Energy (1.49 crore), Satyam Computer Services (1.30 crore) and Reliance Petroleum (1.25 crore).

Among the small and mid-cap stocks, Noida Toll Bridge (up 23%), Austin Engineering (up 20%), Cords Cable (up 20%), ISMT (up 20%), Nocil (up 20%), Shashun Chemicals (up 20%), HFCL (up 20%), Alps Industries (up 20%), Bag Films (up 19.95%), HOCL (up 19.94%), DCW (up 19.94%), Deep Industries (up 19.93%), surged.

Elecon Engineering Company was locked at 5% upper limit at Rs 39.95 on bagging an order worth Rs 22 crore. The company announced the new order win after trading hours on Wednesday, 31 December 2008.

PTC India rose 0.29% to Rs 69 on reports the company is looking to buy coal mines abroad. PTC India will reportedly set up a 50:50 joint venture with Singapore-based firm Asian Infratech for identifying and acquiring companies overseas.

The Centre's fiscal deficit till November 2008 has surpassed the budget estimates for the entire 2008-09 by 32% and may deteriorate further with the government increasing public expenditure and reducing taxes to battle slowdown. Fiscal deficit stood at Rs 1,76,510 crore at the end of November 2008, against the Rs 1,33,287 crore target for the current fiscal as revenues dwindled and expenditure, particularly non-plan, soared, the figures released by the Controller General of Accounts (CGA) on Wednesday, 31 December 2008 stated.

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Daily Call - Jan 1 2009

At the outset, on behalf of the Anagram family, let me wish you, your family members and associates a joyous 2009. While the Chinese will call 2009 a year of the Ox, we call this as the year of the under-Dog. All those coins that were passed off as fake in the year 2008, will find buyers. Our take is commodities will make a come back and chiefly crude. It’s not a straight ride to the moon, but be invested in upstream crude companies and buy more if the commodity dips to newer 2009 lows.



We look back at the year 2008 not with disgust but with respect the way you look at your teachers. It was the year in which the most important strategy for risk mitigation – diversification – failed. 1st of January is a good day to wish friends, not exactly a day to take out your cheques books and start writing cheques. Today everyone will be out with their recommendations. Just collect them. Allow the prices to drift lower and then buy. That’s what a sensible investor should do.

US stocks rally on final day of 2008

Dismal year ends on a positive note without any major catalyst

US market managed to end substantially higher for second consecutive day on Wednesday, 31 December, 2008 and thus end a disaster year with a smile. Trading volume remained relatively light due to the ongoing holiday mood in the market. There was no major economic news in the market today. Crude prices traded lower for the entire day but just shot up late in the session and closed higher by more than $5.

On Wall Street, the Dow Jones industrial average ended higher by 108 points at 8,776, the Nasdaq closed higher by 26 points at 1,577.9 and the S&P 500 closed higher by 12 points at 903.

Twenty-five of thirty Dow stocks ended in the green today led by Boeing and Alcoa. All ten sectors ended in the green led by financials and industrials.

2008 was the worst year for US market since 1937. For the year, the Dow industrials slumped nearly 34%, the S&P 500 has lost 38%, and the Nasdaq Composite was off almost 41%. The financial crisis that began with the subprime mortgage collapse in 2007 evolved escalated in 2008. The collapse of the subprime market spread to the rest of the mortgage market and the vicious cycle led to a great impact in Wall Street. The financial sector just plunged this year.

GM continued to provide good boost to the Dow today after the partly-owned financing arm of Dow component General Motors, GMAC, said yesterday that it is receiving $5 billion worth of senior preferred equity from the U.S. Treasury. Meanwhile, General Motors is receiving a loan of up to $1 billion to participate in GMAC's rights offering. As per GM, it will restart auto financing for more U.S. customers because it has better access to funding after converting GMAC to a bank-holding company. GM shares have plunged 87% this year.

Among major economic reports for the day, better-than-expected weekly jobless claims report cheered investors a bit. Claims for the week ending 27 December, 2008 totaled 492,000, down 94,000 from the prior week.

Trading volume picked up in the final hours of trade, with 1.3 billion shares changing hands on the New York Stock Exchange and 606 million shares trading on the Nasdaq. Advancing issues topped decliners by more than 5 to 1 on the NYSE and by more than 3 to 1 on Nasdaq.

On Wednesday, crude-oil futures surged 14% after Russia threatened to cut natural gas supplies to Ukraine, a move that could impact much of Europe. Despite the late rally, crude futures ended the year with their biggest loss ever. Crude for February delivery rose $5.57 to end at $44.60 a barrel on the New York Mercantile Exchange. The contract dropped as low as $36.94 earlier in the session. On a yearly basis, crude prices dropped more than 60% this year.

US Market will be closed tomorrow, 1 January, 2009, due to New Year's Day.

Pre Session Commentary - Jan 1 2009

Today the markets are likely to open positive. The US markets have once again shown some positive momentum and firmness. On the back of expectations about a stimulus package from the government and further monetary relaxations from the RBI, the markets are likely to maintain some firm trading. The banks have started reducing home loan rates to help sustain the loan demand. Airlines have also reduced fares to support the industry growth. Slowly sectors have started working strategies to provide a long term support for their respective industry and the economy as a whole.

On Wednesday, the last day of the year 2008, the markets opened with a positive gap but could not resist the volatility pressures. The volatility continued and after the post mid session, markets could not escape the claw of selling pressures. Selling pressures were fierce on Banks, Oil & Gas and Realty Stocks and on the other hand Capital Goods, Auto and Metal Stocks witnessed some buying interests. Heavy stocks like ICICI bank, HDFC bank and RIL felt the heat. However, the madcap and small cap stocks cheered with the buying sentiments. Sensex and Nifty lost 0.71% and 0.68% respectively. Among the laggards Bankex, Oil & Gas and Realty fell by 1.29%, 0.98% and 0.41% respectively. During the session we expect the markets to be trading positive.

The BSE Sensex closed lower by 68.85 points at 9,647.31 and NSE Nifty ended low by 20.35 points at 2,959.15. The BSE Mid Caps and Small Caps ended with gains of 19.05 points and 47.63 points at 3,235.05 and 3,683.11 respectively. The BSE Sensex touched intraday high of 9,825.90 and intraday low of 9,587.92.

On Wednesday, the US markets closed in green for the second consecutive day. Without any major news items, participants were left to focus on a better-than-expected weekly jobless claims report. Claims for the week ending Dec. 27 totaled 492,000, down 94,000 from the prior week. The decline was largely treated as an aberration. There was also positive news that President-Elect Obama is hatching a massive economic stimulus plan. However, The Wall Street Journal reported such a plan may not reach Congress until late January. Crude oil futures for the month of February delivery rose $5.57 to $44.60 per barrel on New York Mercantile Exchange. The contract hit an intraday low of $36.94 a barrel in electronic trading. Crude oil inventories increased 549,000 barrels, according to the Dept. of Energy.

The Dow Jones Industrial Average (DJIA) closed high with 108.00 points at 8,776.39 NASDAQ index gained 26.33 points at 1,577.03 and the S&P 500 (SPX) also closed higher by 12.61 points to close at 903.25 points.

Indian ADRs ended mixed. In technology sector, Infosys gained by 0.49% and Wipro fell by 0.61%, further Satyam ended with a gain of 3.31% and Patni Computers closed high by 6.51%. In banking sector ICICI Bank gained 0.36%, HDFC Bank fell by 1.34%. In telecommunication sector, Tata Communication gained by 1.71%, while MTNL declined by 0.29%.

Today the major stock markets in Asia have closed. The Shanghai Composite is trading low by 12.10 points at 1,820.80 Hang Seng is high by 151.98 points at 14,387.48. Further Japan''s Nikkei and Korea’s Seoul Composite are closed till Jan 5th 2009. Taiwan weighted is high by 2.18 points 4,591.22 and Singapore’s Strait Times is closed.

The FIIs on Wednesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 882.20 Crore and gross debt purchased stood at Rs 1567.40 Crore, while the gross equity sold stood at Rs 757.80 Crore and gross debt sold stood at Rs 1295.30 Crore. Therefore, the net investment of equity and debt reported were Rs 124.40 Crore and Rs 272.10 Crore respectively.

On Wednesday Indian Rupee for the year end closed 48.70/72 per dollar, as against Tuesday’s close of 48.47/49, on the back of foreign fund withdrawals from the stock market and a widening trade deficit weighed. During 2008 the rupee fell 19.1% its biggest since 1990, however during 2007 it had gained a remarkable 12%.

On BSE, total number of shares traded were 34.64 Crore and total turnover stood at Rs 3,745.97 Crore. On NSE, total number of shares traded were 67.50 Crore and total turnover was Rs 8,946.66 Crore.

Top traded volumes on NSE Nifty – Unitech with 71398416 shares, Satyam with 52911442 shares, Suzlon Energy with total volume traded 38832426 shares, followed by SAIL with 11824698 shares and Reliance Petro 11695651 shares.

On NSE Future and Options, total number of contracts traded in index futures was 720614 with a total turnover of Rs 9,839.3 Crore. Along with this total number of contracts traded in stock futures were 832603 with a total turnover of Rs 8,820.37 Crore. Total numbers of contracts for index options were 688961 with a total turnover of Rs 10,694.52 Crore and total numbers of contracts for stock options were 59185 and notional turnover was Rs 678.79 Crore.

Today, Nifty would have a support at 2,918 and resistance at 3,021 and BSE Sensex has support at 9,510 and resistance at 9,846.

Trading Calls - Jan 1 2009

Nifty (2,959) Sup 2,905 Res 2,990

Buy HDIL (130) SL 126
Target 137, 140

Buy Tata Power (749) SL 743 Target 760, 765

Buy EKC (180) SL 176
Target 187, 190

Buy Indian Bank (137) SL 133.5 Target 143, 145

Sell Wipro (233) SL 237
Target 225, 223

Daily News Roundup - Jan 1 2009

The Government is considering a proposal to allow foreign airlines to pick up equity stake in domestic carriers, but with riders. (ET)

A Texas court will hold a hearing on the legal tussle between Upaid, a UK-based mobile services provider, and Satyam Computer Services on January 7. (ET)

ICICI Bank has brought down interest rates on home loans both for existing as well as new customers by 0.5%. The bank has also lowered its deposit rates by up to 75 basis points. (ET)

LIC Housing Finance has cut interest rates by 75 basis points, effective Jan. 1, for its existing home loan borrowers after a reduction in its cost of funds. (ET)

Private-sector lender, Bank of Rajasthan (BoR) on Wednesday slashed its benchmark prime lending rate (BPLR) by 0.5 per cent to 15.5 per cent. (ET)

State-owned oil companies cut aviation turbine fuel (ATF) prices by 6.8%, making it the eighth straight reduction since September. (ET)

Bajaj brothers, Rahul and Shishir, on Wednesday withdrew their respective petitions from the Company Law Board (CLB), ending the five-year-old legal battle over division of family properties. (ET)

Public sector Allahabad Bank on Wednesday said that Life Insurance Corporation of India has hiked its stake in the bank by 2.10 per cent to 10.94. (ET)

ONGC Videsh (OVL), the overseas investment arm of ONGC, formally acquired Imperial Energy as over 96.82% sharesholders of the UK-based company have accepted its open offer. (ET)

Tata Consultancy Services (TCS) is in talks to win two large BPO contracts as a consequence of its acquisition of Citigroup’s BPO captive, Citigroup Global Services (CGSL). (ET)

PTC India, the country’s largest electricity trading company, will set up a joint venture with Singapore-based firm Asian Infratech for identifying and acquiring companies overseas. (ET)

Aurobindo Pharma Ltd. said on Wednesday it received the final nod from the US Food and Drug Administration for its stavudine tablets and oral solution. (ET)

Real-estate firm Omaxe Ltd said on Wednesday it has received an order worth Rs 200 crore to build two jails in Punjab. (ET)

HFCL-promoter Mahendra Nahata and the Dhoots of Videocon Group may soon arrive at a solution to end the corporate battle over Datacom. (ET)

The domestic Indian IT/ITeS market will grow at 13.4% in 2009, the slowest since 2003, according to intelligence firm, IDC India. (ET)

The country’s total external debt stood at $222.61 billion at the end of September this year, marginally lower than the $223.81 billion at the end of June. (ET)

Telecom tariffs may fall significantly. Sector regulator TRAI on Wednesday set the ball rolling for lower tariffs by seeking the industry's views on reducing the interconnect charges (IUC). (ET)

A sudden 21% jump in public expenditure in November coupled with a mere 8.8% growth in revenues saw the gross fiscal deficit grow to a massive 132.4% of the budgeted fiscal deficit of Rs 133,287 crore for the entire year. (ET)

The current account deficit was $12.5 billion during July-September 2008 as against $4.3 billion in the same period last fiscal. (ET)

For Old Long Sign…

Old times never come back and I suppose it's just as well. What comes back is a new morning every day in the year, and that's better.

Good morning. Wish you a bright and prosperous New Year. The world would have sang the popular song Auld Lang Syne to celebrate the start of the new year. The bulls have been waiting for Old Long Sign for some time and would like to forget 2008 in a hurry. Will 2009 be fine? Your guess is as good as mine! The dream of prosperity, need for peace and pursuit of happiness continues.

Our market is one of the very few markets open for trading. So, don't expect much action though some counters may hog the limelight based on newsflow. Traded volume will be fairly low. Since global cues will be virtually missing, the weekly inflation data could prove to be crucial for the day. Inflation is expected to slow from a nine-month low of 6.61%. Any positive surprise could provide some temporary boost.

The BSE Sensex and the NSE Nifty plunged by almost 50% each in 2008. India’s top 20 business houses saw 65% value erosion. A whole host of factors like the collapse of US housing sector, credit crunch, flaring inflation and economic slump kept up the pressure on the bulls through the year. On Wednesday, the key indices cooled led by a fall in RIL and ICICI Bank.

Over the short-term, focus will be on quarterly corporate earnings, as well as the much-awaited second round of stimulus. The RBI is likely to cut rates further, but the timing and the size of the same is uncertain. Reports suggest that the central bank is not inclined to be aggressive this time around. This may disappoint the markets.

Do not lose sight of the global factors, which may yet throw up some negative surprises.

Most Asian markets are shut for New Year Day.

US stocks ended the last trading session of the terrible 2008 with moderate gains, as investors looked forward to a better year ahead. All American financial markets are closed on Thursday for New Year's Day.

The Dow Jones Industrial Average advanced 108 points, or 1.2%, to finish at 8,776, with 25 of its 30 components ending higher. Among the notable blue chip gainers were aluminum giant Alcoa (more than 5%) and Boeing (over 3%).

The S&P 500 index rose 12 points, or 1.4%, to end at 903, and the Nasdaq Composite index gained 26 points, or 1.7%, to 1,577.

For the year, the Dow has slumped nearly 34%, its worst year since 1931, right in the midst of the Great Depression. The S&P 500 index, widely considered as the most representative of the market gauges for tracking US stocks, has lost more than 38%, its worst year since 1937. The Nasdaq Composite is off more than 40%.

More than $5 trillion in wealth vanished out of the S&P alone. But, in the final month of the year, the market has been reclaiming a bit of ground, with the Dow moving up 0.6%, the S&P adding 0.8%, and the Nasdaq gaining 2.7%.

Market breadth was positive. Trading volume picked up in the final hours of trade, with 1.3 billion shares changing hands on the New York Stock Exchange and 606 million shares trading on the Nasdaq. Advancing issues topped decliners by more than 5 to 1 on the NYSE and by more than 3 to 1 on Nasdaq.

By sectors, financials and industrials led among the gainers, rising 3.4% and 2.5% respectively, followed by consumer discretionary and materials, both up about 2.4%.

Late on Tuesday, the Federal Reserve said it will begin buying mortgage securities backed by Fannie Mae, Freddie Mac and Ginnie Mae in early January.

The Financial Times reported that American International Group (AIG) may ask the Fed to ease rules governing its asset disposals. The insurer may ask for bidders to be allowed to pay for more of the assets in shares, rather than cash, to increase competition, the newspaper reported.

Energy related shares gained, meanwhile, as crude-oil prices reversed earlier losses and rallied back above $44 a barrel. Oil futures have tumbled more than 60% this year, the biggest yearly loss since crude started futures trading in New York in 1983.

Gold finished up 1.6% at $884.30 an ounce. The metal's annual gain of 5.5% was its smallest since 2004. The dollar fell against the euro and yen.

Treasury prices plunged, raising the corresponding yield on the benchmark 10-year note to 2.21% from 2.08% on Monday. Yields on the 2-year, 10-year and 30-year Treasurys all hit record lows last week.

Lending rates were mixed. The 3-month Libor rate slipped to a 4-1/2 year low of 1.42% Wednesday, down from 1.44% Tuesday, according to Bloomberg. Libor is a key bank lending rate.

A report showed that US jobless claims unexpectedly fell in the latest week. But the Labor Department cited seasonal volatility, and indeed, the four-week average of claims stood at the highest level since 1982. The number of Americans continuing to receive unemployment benefits surged, however.

European shares closed broadly higher at the end of a dismal year for global markets with banks and pharmaceuticals among some of the gainers.

The UK's FTSE 100 index closed up 0.9% at 4,434.17. Wednesday's gain takes the FTSE's loss for the year to 31.3%, the worst annual performance since the London benchmark was created.

The French CAC 40 index closed up just 0.03% at 3,217.97, giving back most of its earlier gains. All told, the index slumped 42.6% over the course of 2008.

The BSE benchmark Sensex ended on Wednesday at 9,647 losing 69 points and the NSE Nifty index ended at 2,959 down 20 points.

Among the BSE Sectoral indices BSE Bankex index (down 1.2%), BSE Oil & Gas index (down 1%) and BSE Realty index (down 0.5%). On the other hand BSE Consumer Durable index (up 1.5%).

Market breath turned positive, 1,499 stocks advanced against 935 declines, while, 108 stocks remained unchanged.

Among the 30-components of Sensex, 20 stocks were in the red and only 10 stocks ended in the negative terrain.

Market seen firm in lackluster trade

Key benchmark indices are likely to open firm tracking overnight gains in the US markets. However with no cues to look forward from Asian markets which are shut for trade on account of New Year celebrations, trade is expected to remain lackluster amid thin volumes.

Investors may take cues from inflation, a potential fuel price cut and an expected second economic stimulus package. Inflation data in the 12 months to 20 December 2008 will be released by noon today, 1 January 2008.

Profit booking after two-day gains pulled key benchmark indices lower on the last trading day of 2008. The BSE 30-share Sensex lost 68.85 points or 0.71% at 9647.31 and the S&P CNX Nifty lost 20.35 points or 0.68% at 2959.15 on Wednesday, 31 December 2008.

Back home, mutual funds bought shares worth Rs 373.96 crore while foreign institutional investors (FIIs) were net buyers worth Rs 81.85 crore on Wednesday, 31 December 2008, according to provisional data on NSE.

The BSE Sensex lost 10639.68 points or 52.44% in the calendar year 2008 from its close of 20,286.99 on 31 December 2007, ending Sensex's five-year bull run on global financial crisis. Nifty lost 3179.45 points or 51.79% in 2008.

The BSE Sensex saw a sustained bull run in the past five years gaining 47.10% in 2007, 46.7% in 2006, 42.3% in 2005, 13.1% in 2004, 73% in 2003 and 3.52% in 2002.

US stocks advanced on Wednesday, 31 December 2008 as the US Federal Reserve provided clarity on its plan to reduce mortgage costs and set a goal to buy $500 billion in mortgage-backed securities by mid-2009. The Dow Jones industrial average gained 108 points, or 1.25%, to 8,776.39. The NASDAQ composite increased 26.33 points, or 1.70%, to 1,577.03. The Standard & Poor`s 500 index climbed 12.61 points, or 1.42%, to 903.25.

Light, sweet crude for February delivery jumped $5.57 to $44.60 a barrel on the New York Mercantile Exchange on Wednesday, 31 December 2008.

Massive selling by FIIs in 2008

Outflow of Rs 52987.10 crore for the year

Foreign institutional investors (FIIs) purchased shares worth a net Rs 124.40 crore on Tuesday, 30 December 2008, as against an outflow of Rs 10.30 crore on Monday, 29 December 2008.

FII inflow of Rs 124.40 crore on 30 December 2008 was a result of gross purchases Rs 882.20 and gross sales Rs 757.80 crore. The BSE Sensex gained 182.64 points or 1.92% at 9716.16 on that day.

FII inflow in December 2008 totaled Rs 1330.70 crore (till 30 December 2008). Foreign funds made heavy sales in calendar year 2008. FII outflow reached Rs 52987.10 crore till 30 December 2008, as against an inflow of a huge Rs 71486.50 crore in the corresponding period last year.

There are a total of 1594 foreign funds registered with the Securities & Exchange Board of India (Sebi).

2009 - Welcome...

An optimist stays up until midnight to see the new year in. A pessimist stays up to make sure the old year leaves.”

As the curtains come down on what has been a tumultuous year, one thing is sure, it will go down history as the worst year for markets since the Great Depression. For Indian markets, it surely was by far the most horrific one, dwarfing the stock market collapse in early 1990s and the Dot Com bust. The signs were all very ominous late last year itself, with the implosion of the US housing sector, prompting the Federal Reserve to abandon its tight monetary policy. Bailout plans and stimulus packages worth over $10 trillion has been reportedly unveiled

The housing market crisis slowly snow-balled into a worldwide credit crunch, sending every thing from equity to crude oil tumbling. Global markets, which not too long ago were awash with cash, suddenly found to their horror that money had become a scarce resource. The wildfire sucked some of the storied Wall Street giants, turning the much-vaunted free-market capitalism upside down. The crisis was not limited to the US alone, as most of Europe too got engulfed into it, prompting unprecedented policy response across the globe. However, the regulatory steps proved to be too little, too late.

Soon the liquidity crisis in the markets spread to the main streets, leaving everyone from corporates to households cash strapped. As a result, one nation after the other started slipping fast into recession. The governments and central banks relentlessly worked to mitigate the fallout from the financial crisis, but failed miserably. Though, the authorities did manage to ease some of the strains in the credit markets, banks and institutions remained reluctant to lend. Global equity markets too pulled off a small year-end rally after hitting multi-year lows, including the gains made in the last trading week. However, the scars still remain and will take time to heal.

The Sensex which got off to a scintillating start hit a high of 21,206.77 in Jan 10 ’09 only to come crashing down to 7697 on October 27 ’09. When the closing bell rang today, the Sensex had lost 52.6% or 10,687 points and closed at 9,647.3.

The Nifty shed 52% or 3,196 points to close at 2,959 for the year after hitting a high of 6,357.1 and low of 2,252 during the year.

Crude flared to a high of US$148.8 and crashed or rather cooled to US$35.1 and closed the year around US$37.9 levels. Gold swung between a high of US$1037 and low of US$680 before finishing the year at US$865.8.

Inflation which peaked above the 12% from a low of 4.84% is now hovering around 6.41%. For 2009 it may well turn negative.

The Indian currency swung wildly between a high of 39.3 against the dollar and a low of 52.1 against the greenback before finishing the year around 48.6 levels.

FII sold stocks worth Rs539.09bn

DII were net buyers to the tune of Rs134.45bn

The change that the world needs could well come in the form of Mr. Barack Obama who was elected President of the United States of America.

Happy New Year!

Wish you all a happy, prosperous and bullish new year!