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Wednesday, February 04, 2009

BSE Bulk Deals to Watch - Feb 4 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/2/2009 531557 AMIT SECURIT ANIL KUMAR MITTAL HUF B 419000 8.50
4/2/2009 531557 AMIT SECURIT MRADULAMITTAL B 408300 8.50
4/2/2009 531557 AMIT SECURIT ANSHULMITTAL S 206000 8.50
4/2/2009 531557 AMIT SECURIT ANKITMITTAL S 419000 8.50
4/2/2009 531557 AMIT SECURIT RAJRANIMITTAL S 408300 8.50
4/2/2009 511664 BGIL FL TEC JINESH DEVENDRA BHATT S 50000 82.83
4/2/2009 532818 EVINIX RAKESH GUPTA S 623397 2.67
4/2/2009 530571 EXPLICIT FIN UMA KEDIA S 30000 23.30
4/2/2009 532081 K SERA SERA S V ENTERPRISES B 846521 19.30
4/2/2009 532081 K SERA SERA S V ENTERPRISES S 916752 19.29
4/2/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD B 75100 36.45
4/2/2009 531215 RTS POWER CO MUKESH KONDE B 39358 296.64
4/2/2009 531215 RTS POWER CO JITENDRA MANNALAL JAIN B 47050 295.80
4/2/2009 531215 RTS POWER CO MUKESH KONDE S 39358 296.27
4/2/2009 531215 RTS POWER CO JITENDRA MANNALAL JAIN S 47050 295.82
4/2/2009 512048 SPLASH MEDIA SUNIL AGARWAL HUF S 7229 42.70
4/2/2009 532477 UNION BANK TCI CYPRUS HOLDING LIMITED S 3415497 146.00
4/2/2009 530459 VALSON IND RAMESH G GOKANI S 25000 27.80
4/2/2009 531950 VERTEX SECUR RAMESH G GOKANI S 55000 8.57
4/2/2009 532795 WIRE& WIRLES MATRIX EQUITRADE PVT. LTD. B 2910640 15.55
4/2/2009 532795 WIRE& WIRLES OPG SECURITIES P LTD B 5430198 15.47
4/2/2009 532795 WIRE& WIRLES JUGALKISHOREMODI B 2054147 15.64
4/2/2009 532795 WIRE& WIRLES RITIKADAMANI B 1149507 15.12
4/2/2009 532795 WIRE& WIRLES PRABHUDAS LILLADHER PVT. LTD. B 1268727 15.82
4/2/2009 532795 WIRE& WIRLES H.J. SECURITIES PVT. LTD. B 8526801 15.81
4/2/2009 532795 WIRE& WIRLES KHANDWALA TRADELINK B 1574509 15.44
4/2/2009 532795 WIRE& WIRLES MATRIX EQUITRADE PVT. LTD. S 2910640 15.60
4/2/2009 532795 WIRE& WIRLES OPG SECURITIES P LTD S 5430198 15.50
4/2/2009 532795 WIRE& WIRLES JUGALKISHOREMODI S 2054147 15.70
4/2/2009 532795 WIRE& WIRLES RITIKADAMANI S 1149507 15.16
4/2/2009 532795 WIRE& WIRLES PRABHUDAS LILLADHER PVT. LTD. S 1268727 15.84
4/2/2009 532795 WIRE& WIRLES H.J. SECURITIES PVT. LTD. S 8526801 15.89
4/2/2009 532795 WIRE& WIRLES KHANDWALA TRADELINK S 1574509 15.46

NSE Bulk Deals to Watch - Feb 4 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-FEB-2009,CLASSIC,Classic Diamonds (India),RAJSHAH ENTERPRISES PVT LTD,BUY,245000,8.15,-
04-FEB-2009,EKC,Everest Kanto Cylinder Li,CREDIT SUISSE (SINGAPORE) LIMITED A/C CREDIT SUISSE (SINGAP,BUY,1641397,136.25,-
04-FEB-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,212860,19.35,-
04-FEB-2009,WWIL,Wire and Wireless (India),AMBIT SECURITIES BROKING PVT. LTD.,BUY,1364389,15.89,-
04-FEB-2009,WWIL,Wire and Wireless (India),ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,BUY,1104887,16.23,-
04-FEB-2009,WWIL,Wire and Wireless (India),BP FINTRADE PRIVATE LIMITED,BUY,1200758,14.85,-
04-FEB-2009,WWIL,Wire and Wireless (India),C D INTEGRATED SERVICES LTD,BUY,1227667,15.04,-
04-FEB-2009,WWIL,Wire and Wireless (India),EXCEL FINCOM,BUY,1092070,15.69,-
04-FEB-2009,WWIL,Wire and Wireless (India),KAUSHIK SHAH SHARES & SECURITIES PVT LTD,BUY,2570771,16.00,-
04-FEB-2009,WWIL,Wire and Wireless (India),KRISH CAPITAL SERVICES,BUY,2921242,16.29,-
04-FEB-2009,WWIL,Wire and Wireless (India),LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,3039667,16.16,-
04-FEB-2009,WWIL,Wire and Wireless (India),MULTIPLIER S AND S ADV PVT LTD,BUY,1400137,15.66,-
04-FEB-2009,WWIL,Wire and Wireless (India),P R B SECURITIES PRIVATE LTD,BUY,8540318,15.55,-
04-FEB-2009,WWIL,Wire and Wireless (India),PARWATI CAPITAL MARKET PRIVATE LIMITED,BUY,1446510,14.43,-
04-FEB-2009,WWIL,Wire and Wireless (India),PRABHUDAS LILLADHER PVT LTD.,BUY,1334226,16.36,-
04-FEB-2009,WWIL,Wire and Wireless (India),PRASHANT JAYANTILAL PATEL,BUY,1872123,15.38,-
04-FEB-2009,WWIL,Wire and Wireless (India),SHREEPATI HOLDINGS AND FINANCE PVT. LTD.,BUY,1419697,15.53,-
04-FEB-2009,WWIL,Wire and Wireless (India),TOTAL SECURITIES LIMITED,BUY,2082817,15.28,-
04-FEB-2009,WWIL,Wire and Wireless (India),TRANSGLOBAL SECURITIES LTD.,BUY,1241402,15.61,-
04-FEB-2009,ZICOM,Zicom Electronic Security,BP FINTRADE PRIVATE LIMITED,BUY,80696,74.05,-
04-FEB-2009,CLASSIC,Classic Diamonds (India),AMRAPALI CAPITAL & FINANCE SERVICES LTD,SELL,245000,8.15,-
04-FEB-2009,EDUCOMP,Educomp Solutions Limited,CLSA (MAURITIUS) LIMITED,SELL,101648,1460.60,-
04-FEB-2009,EICHERMOT,Eicher Motors Ltd,ARISAIG INDIA FUND LTD,SELL,200000,240.99,-
04-FEB-2009,EKC,Everest Kanto Cylinder Li,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,1641397,136.25,-
04-FEB-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,361236,19.17,-
04-FEB-2009,UNIONBANK,Union Bank of India,TCI CYPRUS HOLDING LIMITED,SELL,2670000,145.92,-
04-FEB-2009,WWIL,Wire and Wireless (India),AMBIT SECURITIES BROKING PVT. LTD.,SELL,1377138,16.00,-
04-FEB-2009,WWIL,Wire and Wireless (India),ASHWIN STOCKS AND INVESTMENT PRIVATE LIMITED,SELL,1104887,16.29,-
04-FEB-2009,WWIL,Wire and Wireless (India),BP FINTRADE PRIVATE LIMITED,SELL,1192758,14.91,-
04-FEB-2009,WWIL,Wire and Wireless (India),C D INTEGRATED SERVICES LTD,SELL,1227667,15.05,-
04-FEB-2009,WWIL,Wire and Wireless (India),Copthall Mauritius Investment Ltd,SELL,1200000,15.87,-
04-FEB-2009,WWIL,Wire and Wireless (India),EXCEL FINCOM,SELL,1092070,15.71,-
04-FEB-2009,WWIL,Wire and Wireless (India),KAUSHIK SHAH SHARES & SECURITIES PVT LTD,SELL,2314121,16.11,-
04-FEB-2009,WWIL,Wire and Wireless (India),KRISH CAPITAL SERVICES,SELL,2921242,16.31,-
04-FEB-2009,WWIL,Wire and Wireless (India),LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,3039667,16.20,-
04-FEB-2009,WWIL,Wire and Wireless (India),MULTIPLIER S AND S ADV PVT LTD,SELL,1314215,15.63,-
04-FEB-2009,WWIL,Wire and Wireless (India),P R B SECURITIES PRIVATE LTD,SELL,8540318,15.58,-
04-FEB-2009,WWIL,Wire and Wireless (India),PARWATI CAPITAL MARKET PRIVATE LIMITED,SELL,1446510,14.64,-
04-FEB-2009,WWIL,Wire and Wireless (India),PRABHUDAS LILLADHER PVT LTD.,SELL,1334226,16.37,-
04-FEB-2009,WWIL,Wire and Wireless (India),PRASHANT JAYANTILAL PATEL,SELL,1872123,15.34,-
04-FEB-2009,WWIL,Wire and Wireless (India),SHREEPATI HOLDINGS AND FINANCE PVT. LTD.,SELL,1410247,15.55,-
04-FEB-2009,WWIL,Wire and Wireless (India),TOTAL SECURITIES LIMITED,SELL,2082816,15.51,-
04-FEB-2009,WWIL,Wire and Wireless (India),TRANSGLOBAL SECURITIES LTD.,SELL,1238402,15.65,-
04-FEB-2009,ZICOM,Zicom Electronic Security,BP FINTRADE PRIVATE LIMITED,SELL,80696,75.28,-
04-FEB-2009,ZICOM,Zicom Electronic Security,DEUTSCHE BANK AG, LONDON,SELL,104000,74.27,-

Post Session Commentary - Feb 4 2009

The Indian market managed to end the day in green territory after trimming most of its earlier gains as key indices slashed increase. Markets slipped from the days’ high during the final trading hours on the back of all round selling on the scrips across the sectors. Slower than expected direct tax collections also weighed on the sentiments. Though, market reported rise during initial trading on firm cues from the markets all over the world led by hoped that the US stimulus package will be approved.

The domestic market opened significantly higher due to positive cues from the global markets. The US stock market on Tuesday rose after a sharp three-day losing streak on the back of better than expected earnings from Merck and a rare positive report. Investors cheered the US Fed’s decision to extend its program to extend dollars to markets worldwide. Further, market continued to build up till afternoon on health buying over the ground. However, domestic market is still cautious due to a sharp contraction in January auto sales data of some major Indian auto makers. Finally, stocks cut most of its gains after a bit of volatility but still ended up. BSE Sensex ended above 9,200 mark and NSE Nifty closed around 2,800 level. From the sectoral front, most of the indices ended in green. The majority of buying was emerged among Metal, Reality, Oil & Gas, Teck, PSU, Power and FMCG stocks. However, Pharma and Consumer Durables stocks remained out of favour during the trading session. Midcap and Smallcap stocks also witnesses selling from these baskets.

Among the Sensex pack 19 stocks ended in green territory and 11 in red. The market breadth indicating the overall health of the market remained positive as 1278 stocks closed in green while 1148 stocks closed in red and 102 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 52.55 points at 9,201.55 and NSE Nifty ended up by 19.15 points at 2,803.05. Broader market indices were in red as BSE Mid Caps and Small Caps ended with losses of 13.07 points and 0.94 points at 2,860.56 and 3,273.09 respectively. The BSE Sensex touched intraday high of 9,338.21 and intraday low of 9,164.16.

Gainers from the BSE Sensex pack are DLF (5.15%), Tata Steel (4.95%), JP Associates (4.68%), Sterlite Industries (4.41%), Maruti Suzuki (3.09%), ONGC Ltd (2.41%), RCom (2.35%), ACC Ltd (1.91%) and Bharti Airtel (1.41%).

Losers from the BSE Sensex pack are M&M Ltd (1.67%), Ranbaxy Lab (1.32%), Hindalco (1.12%), L&T Ltd (0.65%), ICICI Bank (0.54%), Reliance Infra (0.48%) and HDFC Bank (0.28%).

Planning Commission Deputy Chairman Montek Singh Ahluwalia said today that the Indian economy will need further stimulus in FY2010 and the government may revise its borrowing plan.

Direct tax collections increased in April-January, 2008-09, by a modest 11.9% to Rs 2,47,131 crore, which is much slower than the projected rate of 16.9% required to attain the target set in the budget. The Income Tax department has formed an intensive strategy to shore up collections and to ensure that budget target of Rs 3,65,000 crore is achieved, according to a senior income tax department official. The department has already raised an additional tax demand of Rs 1,24,401 crore after conducting a analysis of tax returns filed by taxpayers. The department managed to collect Rs 7,000 crore in the current financial year as compared to Rs 5790 crore in 2007-08, which shows that the collection of tax arrears is also on track.

On the global markets front, the Asian markets ended mostly higher on news about the housing market in the US and a recovery in the China’s manufacturing activity in January improved the outlook for the battered global economy. Though, investors remained concerned about corporate earnings for the next few quarters. The Japanese market rose on fund buying in cyclical shares. Shanghai Composite index, closed higher by 46.94 points at 2,107.75. Further, the Straits Times ended lower by 4.53 points at 1,707.39. However, Hang Seng, Nikkei 225 and Seoul Composite index ended up 287, 213.43 and 32.17 points at 13,063.89, 8,038.94 and 1,195.37respectively.

European markets are trading in green after firm performance of Wall Street. FTSE 100 is trading higher by 53.89 points at 4,218.35 and the DAX index is trading up by 49.42 points at 4,424.38.

The BSE Metal index closed with increase of (2.99%) or 143.69 points at 4,944.69 on the back of positive comments from Steel Minister Ram Vilas Paswan, who exuded confidence that India will become the world''s second-largest steel maker after China by 2015 as the steel companies are lined up with huge capacity expansion. China is the world''s largest consumer of industrial metals. Scrips that gained are Ispat Industries (12.41%), Ssa Goa Ltd (6.62%), JSW Steel (5.15%), Tata Steel (4.95%), Sterlite Industries (4.41%) and Steel Authority (3.94%).

The BSE Reality index rose on hopes lower rates will boost housing demand as ended up by (1.18%) or 16.30 points at 1,398.79. Major gainers are DLF Ltd (5.15%), Akruti City (3.48%), Sobha Dev (1.26%), Omaxe Ltd (1.07%) and Ansal Infra (0.63%).

The BSE Oil & Gas index ended higher by (0.73%) or 44.59 points at 6,190.18. Gainers are ONGC Ltd (2.41%), Gail India (1.76%), Cairn Ind (1.35%), HPCL (0.92%) and Reliance Natural Resources (0.66%).

The BSE Teck index rose on defensive buying and ended higher by (0.67%) or 11.91 points at 1,786.64. Main gainers are Wire & Wirles (77.43%), Dish TV (20.40%), Him Futr Com (4.91%) and Zee Enter (3.79%).

The BSE Consumer Durables index ended lower by (2.72%) or 45.10 points to close at 1,610.24. Titan Ind (4.60%), Gitanjali GE (2.09%), Videocon Ind (1.82%), Rajesh Export (0.21%) and Blue Star L (0.11%) ended in negative territory.

The BSE Pharma index tumbled (0.35%) or 9.25 points to close at 2,652.54 as Glenmark Pharma (7.55%), Divi’s Lab (2.59%), Matrix Labs (1.96%), Dishman Pharma (1.79%) and Orchid Chem (1.51%) ended in red.

BHEL increased by 1.28%. The company has entered into an understanding with Kerala Electrical and Allied Engineering Co Ltd (KEL) for setting up a joint venture (JV). The proposed venture will manufacture equipment such as wind power generators.

Reliance Communication jumped 2.35 reports the company plans to launch a cheaper variant of its wireless Internet service in rural areas.

Key indices eke out small gains as global stocks rally

Volatility in banking, IT stocks and index heavyweight Reliance Industries (RIL) caused volatility on the bourses today, 4 February 2009. The BSE 30-share Sensex rose 52.55 points, or 0.57%, shedding close to 136 points from the day's high but off close to 67 points from the day's low. The Sensex had risen as much as 2.06% earlier in the day on firm Asian stocks and on hopes that US stimulus package will be approved.

Foreign funds which have pressed substantial sales on the domestic bourses in the current calendar year, continued to offload Indian stocks. But their outflow today, 4 February 2009, was a miniscule Rs 27.08 crore as per the provisional data released by the stock exchanges after trading hours. Domestic funds bought shares worth a net Rs 284 crore.

After holding firm in the first half of the trading session, a sudden sell-off pulled the market lower in afternoon trade. After a mild recovery, the market lost ground again in mid-afternoon trade. It bounced back later. But the recovery proved short-lived.

A slower-than-expected growth in direct tax collection also weighed on the market. The direct tax collections were up by a slower-than-expected 12.5% on-year to Rs 247000 crore for the period from 1 April 2008 to 31 January 2009. Despite the slower-than-expected collections, the government is hopeful of its annual target of Rs 365000 crore for the fiscal year. The data on the tax collections hit the market in afternoon trade.

European markets which opened after Indian market rose extending the previous session's rally as forecast-beating results from Alcatel-Lucent overshadowed disappointing earnings from Roche. Key benchmark indices in France, Germany and UK were up by between 0.48% to 1.16%.

Asian shares rose for a second consecutive session on Wednesday on tentative signs of an improving outlook for the battered global economy. Key benchmark indices in China, Hong Kong, Singapore Taiwan, and Singapore, Japan were up by between 0.39% and 2.77%. While Singapore's Strait Times fell 0.26%.

The mood was spurred by data showing activity in China's manufacturing sector may be bottoming out and a surprise rise in US pending home sales, providing hope for two economies critical to a recovery in Asia's exports.

Data on Wednesday showed China's official purchasing managers' index rose, even though it remained below a reading of 50 that divides expansion from contraction. The index rose to 45.3 for January 2009, up from 41.2 in December 2008 and a record low of 38.8 plumbed in November 2008.

Investors also welcomed the US Federal Reserve's extension of its programme to extend dollars to markets worldwide, and signs the US Senate is moving forward on a package intended to revive growth in the world's largest economy. A group of Republican US senators on Tuesday, 3 February 2009 offered a $445 billion alternative plan to boosting the ailing economy, about half of which would be in the form of tax cuts. The plan is an alternative to the $885 billion package crafted by Democrats who control the Senate.

US stocks rose on Tuesday, 3 February 2009, after better-than-expected US pending home sales data boosted sentiments. The Dow Jones industrial average advanced 141.53 points, or 1.78%, to end at 8,078.36. The Standard & Poor`s 500 index climbed 13.07 points, or 1.58%, to settle at 838.51. The Nasdaq Composite index increased 21.87 points, or 1.46%, to close at 1,516.30.

The BSE 30-share Sensex was up 52.55 points, or 0.57%, to 9,201.85. The Sensex rose 188.91 points at the day's high of 9,338.21 in mid-morning trade. The Sensex rose 14.86 points at the day's low of 9,164.16 in mid-afternoon trade.

The S&P CNX Nifty rose 19.15 points, or 0.69%, to 2,803.05.

The market breadth, indicating the overall health of the market, turned negative on BSE in mid-afternoon trade in contrast to a positive breadth earlier in the day. On BSE, 1,162 shares advanced as compared with 1,306 that declined. A total of 65 shares remained unchanged.

The BSE clocked a turnover of Rs 2,935 crore, lower than Rs 3,212.91 crore on Tuesday, 3 February 2009.

Nifty February 2009 futures were at 2775.45, at a discount of 27.60 points as compared to the spot closing of 2803.05. Turnover in NSE's futures & options (F&O) segment was Rs 32,068.03 crore much lower than Rs 40,066.85 crore on Tuesday, 3 February 2009.

The BSE Consumer Durables index (down 2.72%), the BSE Healthcare index (down 0.35%), underperformed the Sensex. The BSE Bankex (up 0.53%) matched the performance of Sensex.

The BSE Metal index (up 2.99%), the BSE Realty index (up 1.18%), the BSE Oil & Gas index (up 0.73%), the BSE Teck index (up 0.67%), the BSE PSU index (up 0.6%), the BSE FMCG index (up 0.23%), the BSE Power index (up 0.43%), the BSE Auto index (up 0.15%), the BSE Capital Goods index (up 0.13%), the BSE IT index (up 0.04%) outperformed the Sensex.

The BSE Sensex has lost 445.46 points or 4.61% so far in 2009 from its close of 9647.31 on 31 December 2008. The barometer index had lost 10639.68 points or 52.44% in the calendar year 2008

From the 30 share Sensex pack 19 rose while rest fell. Ranbaxy Laboratories, Reliance Infrastructure, ITC, NTPC fell by between 0.11% to 1.32%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 0.37% to Rs 1,307.40. The stock had risen as much as 2% in the morning. Recently, the Bombay High Court in its interim order lifted the stay on sale of gas from its KG basin till the final order.

India's largest oil exploration firm by revenue ONGC rose 2.41% on firm crude oil prices. Oil extended its rise to above $41 a barrel on Wednesday after the oil cartel Organisation of Petroleum Exporting Countries (Opec) said it may deepen record oil supply cuts in an attempt to boost prices, sparking expectations of a shrink in hefty crude inventories. US light crude for March delivery rose 30 cents to $41.08 a barrel. London Brent crude rose 15 cents to $44.23 a barrel.

India's biggest power equipment firm in terms of revenue Bharat Heavy Electricals rose 1.07% gaining for the second straight day. The company on Tuesday, 3 February 2009, said it would set up a joint venture with a Kerala-based firm for manufacturing products for railways and other industries. Other capital goods stocks ABB, Thermax, Crompton Greaves rose by between 0.29% to 1.17%. But India's biggest engineering & construction firm by revenue, Larsen & Toubro fell 0.65%.

Metal stocks rose as improved manufacturing data in China suggested its downturn may be bottoming out. Tata Steel, Steel Authority of India, Hindustan Zinc, Sterlite Industries rose by between 0.49% to 4.25%. China is the world's largest consumer of industrial metals. While, National Aluminum Company and Hindalco Industries fell by between 1.12% to 1.41%.

Shares of private sector banks fell in choppy trade on fears of rising defaults in a weakening economy. India's second largest private sector bank by net profit HDFC Bank fell 0.28 % to Rs 896.40. The stock moved between the high of Rs 921.40 and the low of Rs 885.

India's largest private sector bank by net profit ICICI Bank fell 0.54% to Rs 389.60. The stock moved between a high of Rs 405 and the low of Rs 386.25.

PSU banks rose on as falling bond yields will boost value of the bond portfolio and on hopes that lower interest rates will spur lending growth. India's largest bank in terms of assets and branch network State Bank of India rose 0.51% to Rs 1,096.90. State Bank of India will lower its home loan rates to 8% for new customers over the coming year, the second time it has reduced mortgage rates in as many months as the economy slows. The new rate will be offered between 2 February and 30 April 2009. SBI had previously charged 9.75% on a floating basis for home loans, and 11.25-12.25% on a fixed basis. The stock moved between the high of Rs 1,117.80 and the low of Rs 1,085.70.

PSU banks, Punjab National Bank, Union Bank of India, Bank of Baroda, Indian Overseas Bank, Bank of India rose by between 0.96% to 1.12%.

India's largest dedicated housing finance company by total income HDFC rose 0.69%.

IT pivotals fell in choppy after the industry body viz. the National Association of Software and Service Companies (Nasscom) cut export growth target for the current year. India's third largest software services exporter, Wipro fell 0.09% to Rs 223.95. The stock moved between the high of Rs 231.90 and a low of Rs 222.25. TCS, India's largest software services exporter by sales fell 0.17% to Rs 499.05.

India's second largest software services exporter Infosys Technologies rose 0.04% to Rs 1282.95. The stock moved between the high of Rs 1,307.25 and a low of Rs 1,279.

India's fifth largest IT exporter by sales HCL Technologies rose 3.74%. Nasscom today said India's software and services exports should rise 16-17 % to about $47 billion in the year to March 2009, slower than 21-24% forecast earlier.

Oracle Financial Services Software gained 1.23% after the company said it has bagged an overseas contract for providing software solution.

Rate sensitive realty stocks fell on recent reports falling interest rates have failed to revive housing demand. Indiabulls Real Estate, HDIL , Unitech fell by between 0.97% to 2.21%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

India's largest car maker by sales Maruti Suzuki India rose 3.09% extending gains for the second day in a row, on posting a 5.4% rise in vehicle sales to 71,779 units in January 2009 over January 2008.

India's second largest telecom services provider by sales Reliance Communication jumped 2.35% on reports the company plans to launch a cheaper variant of its wireless Internet service in rural areas. Among other telecom stocks, Bharti Airtel rose 1.41% whereas Idea Cellular fell 0.89%

Wire & Wireless clocked the highest volume of 6.94 crore shares on BSE. Satyam Computer Services (2.62 crore shares), Spice Communications (1.98 crore shares), DLF (1.23 crore shares) and Dish TV (1.07 crore shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 206.58 crore on BSE. DLF (Rs 168.98 crore), Spice Communications (Rs 161.64 crore), Satyam Computer Services (Rs 134.62 crore) and Reliance Infrastructure (Rs 112.73 crore) were the other turnover toppers in that order.

Market may start buoyant

The benchmark indices, Sensex and Nifty, are expected to commence on a firm note and witness significant rally during intra-day trades, as international markets backed by firm US and Asian indices may help the sentiment remain buoyant. Among the Asian majors, Nikkei has surged 200 points at while Hang Seng has scaled up 300 points. On the technical front, the Nifty could test in the 2820-2860 range on the upside and has support at 2750, while the Sensex has a likely support at 9000 and may face resistance at 9300.

US indices posted steady gains on Tuesday with the Dow Jones moving 142 points up to close at 8078, while the Nasdaq added 22 points to close at 1516. Indian floats rallied on the US bourses.

Crude oil prices in the US market moved up, with the Nymex Light crude oil for March 09 delivery moving down up 70 cents to close at $40.78 a barrel. In the Commodity segment, the Comex gold for April 09 series lost $14.70 to settle at $892.50 a troy ounce.

Pre Session Commentary - Feb 4 2009

Today domestic markets are likely to open positive. The sentiments across other Asian markets are strong and therefore trading northwards. In the domestic arena the investors are trading cautiously and therefore yesterday’s trading session witnessed some volatility. There is no specific news to lead the domestic markets however the sentiments across other global markets would influence the markets’ move. We anticipate a positive trend in today’s session with an essence of mild volatility creeping.

On Tuesday, the markets opened a positive gap but could not sustain the selling pressure and traded volatile. However towards the end the markets managed to close in green despite volatility. The gap of news was observed during the session as markets moved the northward and southward zone. The early gain was pared off due to profit booking, which led the markets dive into red. However sectors like Oil & Gas, FMCG, IT and Bankex helped the markets close with a marginal gain. Huge selling was witnessed in sectors like Realty and CD that tumbled by 7.59% and 2.85%. Mid caps and Small caps also felt the burn as they lost 0.77% and 0.42% respectively. During the session we expect the markets to be trading positive with mild volatility.

The BSE Sensex closed up by 82.60 points at 9,149.30 and NSE Nifty ended with gains of 17.25 points at 2,783.90. The BSE Mid Caps and Small Caps ended with losses of 22.28 points and 13.92 points at 2,873.63 and 3,274.03 respectively. The BSE Sensex touched intraday high of 9,302.75 and intraday low of 9,040.56.

The US markets on Tuesday closed positive. The day’s trade started with the announcements from corporate world which led to mixed movements across broader markets. Towards the end heavy stocks managed to uplift the markets at broader level. In the financial sector Citigroup has announced its own plans to increase lending. The financial supermarket will use roughly $36.5 billion of the TARP funds it has received for new loans. The Auto sector faced huge selling pressure as Ford, GM and Toyota reported fall in January sales by 40%, 51% and 34% respectively. Crude oil futures for the month of March delivery rose by $0.70 to $40.78 per barrel on New York Mercantile Exchange. The crude surged on the back of statements form OPEC president that the cartel would reduce the production to support the price.

The Dow Jones Industrial Average (DJIA) closed upper by 141.53 points at 8,078.36 NASDAQ index gained 21.87 points at 1,516.30 and the S&P 500 (SPX) gained 13.07 points at 838.15.

Indian ADRs ended higher. In technology sector, Infosys ended up by 3.08% along with Wipro by 0.73%. Further, Satyam ended with decrease of 1% and Patni Computers closed lower by 1.07%. In banking sector ICICI Bank gained 1.31% and HDFC Bank advanced by 1.54%. In telecommunication sector, Tata Communication and MTNL increased by 0.57% and 4.17 respectively. Sterlite Industries increased by 6.30%.

Today major stock markets in Asia have opened positive. Shanghai composite is up by 34.71 points to 2,095.52, Japan''s Nikkei is also up by 168.58 points at 7,994.09 along with Hang Seng that surged 249.15 points at 13,026.05. South Korea''s Seoul Composite is up by 21.34 points at 1,184.54 and Singapore''s Strait Times is also up by 9.68 points to 1,721.60.

The FIIs on Tuesday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 1,334.50 Crore and gross debt purchased stood at Rs 69.70 Crore, while the gross equity sold stood at Rs 1,346.50 Crore and gross debt sold stood at Rs 274.60 Crore. Therefore, the net investment of equity and debt reported were Rs (11.90) Crore and Rs (204.90) Crore respectively.

On Tuesday, the Indian rupee ended at 48.81/82 per dollar, 0.22% stronger than Monday’s close of 48.92/93. The rupee gained strength as the stock markets traded up and the exporters sold dollars.

On BSE, total number of shares traded were 28.71 Crore and total turnover stood at Rs 3,212.91 Crore. On NSE, total number of shares traded were 67.32 Crore and total turnover was Rs 92.26 Crore.

Top traded volumes on NSE Nifty – Unitech with 49998254 shares, DLF with 35516976 shares, Suzlon Energy with 25461508 shares, Reliance Petro with total volume traded 11212066 shares followed by SAIL with 10774843 shares.

On NSE Future and Options, total number of contracts traded in index futures was 1029682 with a total turnover of Rs 13,231.40 Crore. Along with this total number of contracts traded in stock futures were 970538 with a total turnover of Rs 9,204.90 Crore. Total numbers of contracts for index options were 1170676 with a total turnover of Rs 16,739.37 Crore and total numbers of contracts for stock options were 74475 and notional turnover was Rs 891.18 Crore.

Today, Nifty would have a support at 2,726 and resistance at 2,863 and BSE Sensex has support at 9,085 and resistance at 9,348.

Market seen opening firm on positive global cues

Key benchmark indices are likely to open higher mirroring positive global cues. Asian stocks gained today, 4 January 2009 as the region`s automakers strengthened their market share in the US and memory-chip prices advanced. Key benchmark indices in China, hang Seng, Taiwan, Japan, and Singapore, were up by between 0.62% and 2.21%.

US stocks rose on Tuesday, 3 February 2009, after better-than-expected US pending home sales data boosted sentiments about the economy. The Dow Jones industrial average advanced 141.53 points, or 1.78%, to end at 8,078.36. The Standard & Poor`s 500 index climbed 13.07 points, or 1.58%, to settle at 838.51. The Nasdaq Composite index increased 21.87 points, or 1.46%, to close at 1,516.30.

Back home, the market ended the volatile session marginally higher Tuesday (3 February 2009) amid intraday fluctuations. The BSE 30-share Sensex was up 82.60 points, or 0.91%, to 9,149.30 and the S&P CNX Nifty up 17.25 points, or 0.62%, to 2,783.90.

Foreign institutional investors (FIIs) are in selling mode after an inflow of Rs 1319.10 crore in December 2008. Their outflow in January 2009 totaled Rs 4262.30 crore (till 2 February 2009).

According to provisional data on NSE, FIIs were net sellers worth Rs 278.89 crore while mutual funds sold shares worth Rs 7.75 crore on Wednesday, 3 February 2009.

Oil prices rose on Tuesday, 3 February 2009, on speculation that reduced OPEC production in January will limit global inventories and encourage prices. Light, sweet crude for March delivery rose 70 cents to settle at $40.78 a barrel on the New York Mercantile Exchange (NYMEX).

Trading Calls - Feb 4 2009

NIfty (2874) Sup 2745 Res 2835

Buy Tech Mahindra (232) SL 228
Target 240, 242

Buy Maruti (584) SL 578
Target 596, 600

Buy Lanco Infra (112) SL 108
Target 120, 121

Sell Dr Reddy’s (438-442) SL 447 Target 429, 426

Sell LIC Housing (205-208) SL 212 Target 199, 197

Raju - shoes, belts, suits

At the height of her fame, the deposed Filipino dictator’s wife Imelda Marcos had more than a thousand pairs of shoes, 888 handbags
and 508 gowns. As it turns out, had ex-Satyam Computer boss B Ramalinga Raju not been locked up and his fraud exposed, he may have given Imelda a run for her money in the next few fashion seasons.

Raju’s penchant for high fashion had led him to collect more than a thousand designer suits, if sources in the Enforcement Directorate are to be believed. According to documents prepared by Andhra Pradesh police and given to ED, the disgraced IT czar had 321 pairs of shoes and 310 belts.

Apart from leading a lavish lifestyle, Ramalinga Raju visited various big temples in Andhra Pradesh regularly and donated huge amounts of gold, which collated would approximate about two tonnes. His stargazing pursuits led him to buy a telescope, which valued at more than Rs 1 crore would be the most expensive in any Indian home.

Like many other multi-billionaires, Raju too liked to collect trophy properties around the world. Sources said he had “palatial mansions and villas” in 63 countries.

via Times Of India

Daily News Roundup - Feb 4 2009

Sterlite Industries is yet to utilize half of its 20bn capital, which it raised through rights issue from its shareholders in 2004. (ET)

BHEL forms a JV with KEL to focus on core sectors and supply products to Siemens and GE. (ET)

US oil major, Chevron may exit Reliance Petro. (BS)

Cipla’s export consignment to Amsterdam was confiscated by the customs authorities on ground of patent infringement. (BL)

GMR Infra and Lanco have filed proposal for the imported coal based 1,600 mw power projects in Maharashtra. (FE)

Satyam Computers may name CEO, CFO today. (BS)

Tech Mahindra interested in buying Satyam (BL)

Coal India Ltd is considering price hikes to compensate for the ~Rs23bn increase in annual wage bill beginning this fiscal. (BL)

I-T department issues notices on Vedanta and Indian Rayon for their failure to deduct taxes on payments to buy Indian assets. (BS)

HPCL’s common carrier pipeline goes on stream. (BL)

The three OMC’s (IOC, BPCL and HPCL) plans 3-fold hike in outlets. (BS)

Corporation Bank plans to raise Rs7bn (BL)

Syndicate Bank to hire 1,000 officers and add 150 branches in the current calendar year (BL)

LIC Housing Finance cuts home loan rates by 100bps. (BS)

Tata Tea has embarked upon a multi-pronged strategy for different markets. (BL)

Shree Cement’s January dispatch up 30%. (BS)

Omaxe is in talks with banks and other lenders to restructure more than half its debt to reduce cost and match payments with cash flows. (BS)

Educomp to appoint global consultancy firm Grant Thornton as internal auditor of the company. (FE)

Educomp to invest Rs700mn in next three years to set up 100 budget schools across the country. (FE)

Balrampur Chini expects its sugar output to fall 38% in the year to September 2009. (FE)

Huber Group has pledged its entire 70.5% stake in Micro Inks to raise money from foreign banks to part its acquisition of the Indian arm. (ET)

Uttam Galva Metallics, part of Uttam Galva Group to invest ~Rs11bn for setting up a project in Maharashtra to manufacture half a million tones of Pig Iron. (FE)

Henkel puts non-core brands on the block. (ET)

IDBI Bank is likely to merge its housing finance subsidiary IDBI Homefinance with itself. (ET)

Educomp Solutions says it will work with the Government and regulators to prove its credibility (BL)

Balrampur Chini has been hauled up for fudging accounts. (BS)

Cosmo Films has acquired US-based GBC Commercial Print Finishing owned by ACCO Brands Corporation for an undisclosed amount. (BL)

The Department of Industrial policy and Promotion will soon set up a cell to track foreign direct investment inflows into real estate companies. (ET)

Direct Tax collections grew by a modest 11.9% during in April-Jan, slower than the projected rate of 16.9%. (ET)

The government may come out with a third stimulus package to boost the economy, says textile minister. (ET)

CIL’s new wage bill likely to push up prices of coal (BL)

The Union Government announced the issue of bonds worth Rs60bn to fertiliser companies (BL)

The Indian economy will grow in excess of 7% in the current fiscal year, says Commerce Minister. (ET)

Cement prices in parts of the country were increased by Rs3 and Rs4 for a 50kg bag. (FE)

Banks witness fall in low-cost deposits’ share in Dec quarter. (BL)

Maharashtra Government signs 5 MoUs for Rs 6,000-cr investments. (BL)

The Commerce ministry mulls a three-year extension of tax benefits given to EoUs in an attempt to encourage export industries. (BS)

FY10 exports may dip on falling demand, says Commerce Secretary Gopal Pillai. (BS)

NELP India to offer 100 oil blocks in NELP VIII. (BS)

SEZ tax benefits extended to sub-contractors (BS)

Smart start…bear the pain

Pain is temporary, quitting lasts forever.

A global rally will help Indian indices post further gains today even as the outlook remains gloomy, on both macro-economic and corporate front. The market right now is in a state of flux, not knowing where to go. It is tough to take a decisive call, as the headwinds remain strong and there is no dearth of bad news. At the same time, stock valuations have come down to relatively better levels.

So, what does one do? The jury’s still out on whether global equities will hit October lows again. We think it will. Trade, if any should be done with strict stop losses. With no local triggers to play for, the market remains at the mercy of global trends and daily news- flow.

Expect a lot of stock specific action. Volatility will continue to test even the most seasoned traders. Remain calm and avoid taking undue risks, especially in stocks with dubious background and questionable fundamentals.

US stocks rallied on Tuesday, erasing morning losses, as earnings from drugmaker Merck and a rare positive report about the beleaguered housing market helped snap a three-day losing streak for the broad indexes.

The Dow Jones Industrial Average rose 141.61 points, or 1.78%, to 8,078.36, recouping some losses after three straight declines. The broad S&P 500 index added 13.07 points, or 1.58%, to 838.51. The Nasdaq Composite index advanced 21.87 points, or 1.46%, to 1516.30.

Stocks seesawed through most of the session before finding momentum in the afternoon, with commodity, technology, retail and housing stocks all rising. The financial sector was a notable decliner.

Better-than-expected results from Merck and Schering-Plough, as well as homebuilder D.R. Horton, helped counter the barrage of mixed to gloomy corporate data. A surprise rise in the pending home sales index helped, too. But any gains were limited by continued worries about the economy.

After the close, media major Walt Disney reported weaker quarterly sales and earnings that missed expectations. Shares of the Dow component fell 3% in after-hours trading.

Sales at Ford Motor, GM, Honda, Nissan and Chrysler all plunged more than expected in January, with the auto industry seeing its worst monthly sales in 26 years. Ford sales fell 40% in January, missing forecasts for a drop of 30%.

GM sales tumbled 49% in January, versus forecasts for a drop of 38%. Separately, GM said it was offering buyouts to all of its hourly workers in an attempt to cut costs and give nervous workers a way out. Chrysler made a similar announcement on Monday.

Pending home sales rose 6.3% in December, according to a report from the National Association of Realtors. Sales rose as lower home prices and mortgage rates brought out buyers. Economists had forecast steady sales after sliding by a revised 3.7% in the previous month.

Merck reported better-than-expected quarterly sales and earnings thanks to strong sales of its diabetes drugs. Fellow drugmaker Schering-Plough also reported higher quarterly earnings. Merck shares rose over 6% and Schering-Plough rose 8%.

D.R. Horton reported a smaller quarterly loss versus a year ago that was narrower than what analysts had forecast. Shares rallied 21%, joining a parade of homebuilder stocks that were surging on the pending home sales index.

UPS reported better-than-expected quarterly earnings on worse-than-expected quarterly sales. The company, seen as a proxy for the economy, said package volumes are down because of the recession and that it would be cutting costs going forward. Shares gained 6%.

Motorola reported a quarterly loss versus a year-ago profit on weaker sales. However, both earnings and sales results topped analysts' expectations. The telecom firm also warned that it will post a bigger-than-expected first-quarter loss, that it is suspending its dividend and that it is in search of a new CFO. Shares fell 11%.

Citigroup issued its first progress report on how it is spending the $45 billion it received in government funds. The bank said it has approved the use of $36.5 billion to issue mortgages, make credit-card loans and buy troubled assets. Citi shares fell 5%.

Other big financial stocks slipped too, including Bank of America, American Express and JP Morgan Chase.

Corporations announced almost 8,000 job cuts Tuesday, including PNC Financial, which reported a big fourth-quarter loss and said it was cutting 5,800 jobs. Also, Liz Claiborne said it was cutting 725 jobs. PNC shares fell 7% and Liz Claiborne shares rose 8%.

After a narrow party-line approval in the House of Representatives last week, the economic stimulus package has moved to the Senate this week. The plan that is before the Senate would increase the deficit by $885 billion over the next ten years.

Treasury prices rallied, lowering the yield on the benchmark 10-year note to 2.88% from 2.72% on Monday. Treasury prices and yields move in opposite directions. Yields on the 2-year, 10-year and 30-year Treasurys all hit record lows last month.

Lending rates inched higher. The 3-month Libor rate rose to 1.23% from 1.22% on Monday. The overnight Libor rate rose to 0.31% from 0.28% on Monday. Libor is a bank lending rate.

US light crude oil for March delivery rose 70 cents to settle at $40.78 a barrel on the New York Mercantile Exchange. Gasoline prices rose 1 cent to a national average of $1.89 a gallon.

The dollar fell versus the euro and yen. COMEX gold for April delivery fell $14.70 to settle at $892.50 an ounce.

Payroll processing firm ADP releases its monthly private-sector employment report on Wednesday morning before the market opens. Economists expect that 515,000 jobs were lost in January, after 693,000 were cut in December. The report is something of a harbinger of the larger government report due Friday.

Wednesday also brings the weekly oil inventories report and the ISM reading on the services sector of the economy. Kraft Foods reports earnings in the morning.

European shares advanced in a choppy session, with telecom among the best performers as investors welcomed earnings from Vodafone. The pan-European Dow Jones Stoxx 600 index rose 1.9% to 189.78.

On a national level, Germany's DAX 30 index added 2.4% to 4,374.96, the French CAC-40 index gained 1.8% to 2,982.39 and the UK's FTSE 100 index closed up 2.1% at 4,614.46.

Highly volatile session ended with modest gains on Tuesday led by index heavyweights like Grasim, ACC, Maruti and ITC. The BSE Sensex swung nearly 300 points and the Nifty index gyrated almost 80 points in intra-day trades.

Finally, the BSE benchmark Sensex rose 82 points to close at 9,149 and the Nifty rose 17 points to close at 2,783.

Among the 30-components of Sensex, 20 stocks ended in the green and only 10 stocks ended in the negative terrain. Among the major gainers in the Sensex were Grasim, ACC, Maruti, ITC, Wipro and ONGC. On the other hand, major losers were DLF, Tata Motors, Hindalco and NTPC.

Varun Shipping pared gains and ended lower by 0.5% to Rs46.2. The stock had earlier surged by over 5% after ~20mn shares of the company changed hands in a block deal.

Almost 15% equity changed hands at an average price of Rs47.75 per share on the NSE. The scrip touched an intra-day high of Rs50 and a low of Rs45 and recorded volumes of over 20mn shares on NSE.

Ashok Leyland announced that it would cut capex and would rethink investment needed for Nissan venture.

The company also added that it would spend Rs20bn against planned Rs33bn and would also reduce its intended capacity for new factory. The stock up by half a percent to Rs14 after hitting an intra-day high of Rs14.1 and a low of Rs13.9 and recorded volumes of over 2,00,000 shares on BSE.

The corporate affairs minister Prem Chand Gupta asked the registrars of companies (RoCs) to inspect the books of accounts of Educomp after media reports stated that the company’s profits were inflated and that promoters had made big profits by trading their own shares and diverting funds to unlisted subsidiaries.

The Managing Director Shantanu Prakash said that they have got no such official intimation of inquiry. However, we welcome any government probe in to the company’s accounts, added Prakash.

Educomop ended down by 12% to Rs1490 hitting an intra-day high of Rs635 and a low of Rs1450 and recorded volumes of over 7,00,000 shares on BSE.

Bilpower announced that 11,60,000 equity shares of the company have been pledged till now as securities against Bank Limit to the company and its subsidiary Company. The Pledged shares work out to 11.05% of the paid up capital of the company.The scrip surged by 3% to Rs113 after hitting an intra-day high of Rs115 and a low of Rs104.

Shares of Tata Motors declined by 6.5% to Rs133 after the company announced that its sales declined 33% in January.

Markets might further consolidate in the coming days. However, global cues would dictate the trend at least in the morning trades.

Bullion metals continue to turn pale

Gold and silver prices drop for second consecutive day

Bullion metal prices softened for the second straight day on Tuesday, 03 February, 2009. Prices fell despite the weak dollar. The reason for the depressed prices was the fact that global meltdown made traders think that demand for precious metals will decline in the coming months.

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 and also vice versa. But silver prices dropped.

On Tuesday, Comex Gold for February delivery fell $14.7 (1.6%) to close at $892 an ounce on the New York Mercantile Exchange. Yesterday price shed almost 2.3%. Last week, gold prices ended higher by 3.5%. For January, 2009, gold had gained 3.9%. Year to date, gold prices are lower by 3.3%.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (13%) since then.

On Tuesday, Comex silver futures for March delivery fell 11 cents (0.9%) to end at $12.3 an ounce. For 2008, silver had lost 24%.

At the currency market on Tuesday, the dollar index, which tracks the dollar against a trade-weighted basket of six major currencies, fell by 1%.

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

Last year, the weakening dollar and higher global demand for raw materials had led to records for commodities including gold. Gold reached a record in March 2008 as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. In the last move, the Federal Reserve has cuts its target bank lending rate to 0.25% from 5.25% in September, 2007. The Fed did it in nine steps.

Prior to 2008, 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%.

At the MCX, gold prices for April delivery closed lower by Rs 225 (1.6%) at Rs 13,989 per 10 grams. Prices rose to a high of Rs 14,235 per 10 grams and fell to a low of Rs 13,925 per 10 grams during the day's trading.

At the MCX, silver prices for March delivery closed Rs 224 (1.1%) lower at Rs 19,532/Kg. Prices opened at Rs 19,680/kg and fell to a low of Rs 19,438/Kg during the day's trading.

Crude climbs up marginally

OPEC cuts give hope of rising price

Oil prices rose today, Tuesday, 03 February, 2009 on anticipation that the production cuts announced by OPEC will help boost crude prices in the coming months. Prices also rose due to the weak dollar.

On Tuesday, crude-oil futures for light sweet crude for March delivery closed at $40.78/barrel (higher by $0.70 or 1.7%) on the New York Mercantile Exchange. Earlier during the day, it touched a high of $41.17. Last week, crude prices ended lower by 10%. In January, 2009, crude shed 14%.

Prices reached a high of $147 on 11 July but have dropped almost 70% since then. Year to date, in 2009, crude prices are lower by 8.6%. On a yearly basis, crude prices are lower by 54%.

At the currency market on Tuesday, the dollar index, which tracks the dollar against a trade-weighted basket of six major currencies, fell by 1%.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

OPEC has been trying to cut production consistently in order to step up prices from their current low levels.

Against this background, March reformulated gasoline rose 1.5% to $1.167 a gallon, while March heating oil lost 1.3% to $1.3254 a gallon.

March natural gas futures lost 1% to $4.513 per million British thermal units.

At the MCX, crude oil for February delivery closed at Rs 1,975/barrel, lower by Rs 48 (2.4%) against previous day's close. Natural gas for February delivery closed at Rs 217.5/mmbtu, lower by Rs 8.7/mmbtu (3.5%).

SGX Nifty Live Update - Feb 4 2009

SGX Nifty now trading at 2,798.0 and is +27.5 points

Teledata - Scam ?

After maintaining a silence and refusing to respond to a series of e-mailed questionnaires sent by Financial Chronicle over the past fortnight, Teledata Informatics woke up on Tuesday, a day after FC reported about the issues involving eSys, the alleged inflated earnings and doubts raised by auditors over the return on investment in the two of the company's subsidiaries in the 2007-08 annual report.

In a communication to the Bombay Stock Exchange, it denied the contents of the FC article.
"We will not be able to respond to this query," said a BSE spokesman, when asked if the exchange was taking any regulatory action on the Chennai-based Teledata Informatics based on its auditor's report that about 80 per cent of the company's Rs 6,636 crore revenue is reported to have come from its subsidiaries in Singapore, the balance sheets of which have not been audited for the past two years.

An official of the ministry of corporate affairs (MCA) said that the ministry has not received any formal complaint against the company. "If there is a formal complaint against Teledata, we will look into it", the official said.

Securities and Exchange of Board of India (Sebi) officials were reluctant to talk on the subject. An e-mailed query sent to Sebi chairman C B Bhave's office remained unanswered till the time of going to press.A spokesperson of the National Stock Exchange said, "We will get back to you if in case we have anything to say in this regard."

At last, Teledata also responded to FC on Tuesday but instead offering answers to any of the questions, it went on a flat denial mode. Through a fax message to FC, company secretary N Ramanathan said the company "at the outset denies the contents of the article".

Terming the contents of the article as "misleading, demeaning and highly defamatory", the letter stated that the "operations and affairs of the company are managed in the normal course".
The company failed to reply to any of FC's questions e-mailed to concerned executives of the company on January 16 (on the supposed sale of eSys stakes), January 23 (on the revenue from PC manufacturing and total business outsourcing), January 28 (a reminder to the earlier emails), February 2 (on relisting of Teledata Marine Solutions and Teledata Technologies) and February 3 (on the loan taken from SBI).

However, later on Tuesday, when contacted on phone, Ramanathan sought to explain away the absence of any response from the company to FC's series of emails attributing it to "want of time".
"We needed time to ascertain all facts, before responding to the queries and could not do so at short notice," he told FC, conveniently forgetting that the first set of mails were sent to the company on January 16, 2009 and FC waited for over 15 days, before it published the article.
There was no response from the Company or from Ramanathan to FC's request for information regarding a set of fresh queries sent on Tuesday about the status of the $ 80-million loan that the company had raised from SBI.The loan amount was based on the valuation of $105 million for 51 per cent of eSys Technologies, Singapore.

However, according to eSys' ex-chairman and managing director Vikas Goel's affidavit filed in the Singapore High Court on October 3, 2008, the deal was worth only $60 million.

Teledata has raised a loan for $80 million, sanctioned by SBI, Chennai. SBI holds as collateral the 51 per cent stakes of Rainforest Trading Ltd (special purpose vehicle holding 100 per cent of eSys Technologies Pte Ltd).

When contacted, deputy general manager (merchant banking) of the international banking group of SBI JN Kerkar said the "loan is standard and is in order." He refused to make further comments.
Teledata's former auditors Chaturvedi and Shah have stated in the company's 2007-08 annual report: "We are of the opinion that the company has defaulted in repayment of dues to banks arising out from the invocation of bank guarantee which as on the date of the balance sheet stood at Rs 48.43 crore."

The auditors on Tuesday refused to comment on anything connected to Teledata because they do not handle the account anymore. Teledata's bankers are State Bank of India, Canara Bank, HSBC, Vijaya Bank and all of them are based in Chennai. The break-up of the default in loan repayment taken from the four banks could not be crosschecked with the company.

Corporate rating agency ICRA assigned LBB- rating to the Rs 650-million term loans of Teledata, in its November 2008 report."The rating indicates inadequate credit quality and high credit risk in the long term. The minus sign appended indicates that the relative safety is marginally lower than in LBB rating. ICRA has also assigned A4 rating to the Rs 1,200-million fund based limits and Rs 3,660-million non-fund based limits of TDIL, indicating risk-prone-credit-quality rating in the short term," the report said.

"Where is the explanation to the points raised? All good companies call press conference and answer the questions raised. What this clarification (by the company) means without addressing the questions raised in the article," Prabha, who said she was an investor, wrote on FC's website.
"How can Teledata seek explanation to facts which are there in public domain? It is the turn of Teledata to reveal the facts and accept the reality. This cannot go on for long now", she added, urging investors to get together and present the case to Sebi and SFIO (Serious Fraud Investigation Office).