BSE Bulk Deals to Watch - March 27 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
27/3/2009 530499 A K CAPITAL FIRSTRAND PUBLIC LIMITED COMPANY S 35500 142.00
27/3/2009 530513 ACCURATE TR HINA JITESH SHAHHINA JITESH SHAHHINA JITESH SHAH B 17890 28.04
27/3/2009 530513 ACCURATE TR NIMISH JAIKISHOR MEHTANIMISH JAIKISHOR MEHTANIMISH JAIKISHOR MEHT S 17952 28.04
27/3/2009 532910 ANIL PRODUCT MINESHCHANDRAKANTSHAH B 100503 44.80
27/3/2009 532910 ANIL PRODUCT CHETAN K MEHTA S 50000 44.80
27/3/2009 532989 BAFNA PHARMA SUBHASH P RATHOD B 80000 15.83
27/3/2009 533006 BIRLA COTSYN C S BUILDWELL PVT LTD B 750000 3.50
27/3/2009 506197 BLISSGVS PH MAMTA GAUTAM ASHRA B 980333 7.10
27/3/2009 506197 BLISSGVS PH KANJI FOREX PVT.LTD. B 980122 7.10
27/3/2009 506197 BLISSGVS PH GAUTAM RASIKLAL ASHRA B 979652 7.10
27/3/2009 506197 BLISSGVS PH GENTEEL TRADING CO PVT. LTD. B 560122 7.10
27/3/2009 506197 BLISSGVS PH ASSOCIATED ALUMINIUM INDUSTRIES PVT LTD S 3699840 7.10
27/3/2009 590081 BRAHMANAND P.D.K. INTERNATIONAL PVT. LTD. S 207240 6.11
27/3/2009 533059 BRAND HOUSE OPG SECURITIES P LTD B 642948 22.83
27/3/2009 533059 BRAND HOUSE OPG SECURITIES P LTD S 642948 22.73
27/3/2009 533059 BRAND HOUSE MORGAN STANLEY MAURITIUS COMPANY LIMITED S 380446 23.53
27/3/2009 533026 CHEMCEL KAMLESH NAHAR B 217830 5.47
27/3/2009 526141 COMP DISC IN BALJIT SECURITIES PVT LTD B 70050 35.94
27/3/2009 526141 COMP DISC IN BALJIT METALS PVT LTD S 70050 35.94
27/3/2009 508860 DIAMANT INV FANCY INVESTRADE PVT LTD S 6000 49.25
27/3/2009 526881 FINANC TECHN AMAL N. PARIKH B 230000 500.15
27/3/2009 526881 FINANC TECHN RELIANCE CAPITAL TRUSTEE CO.LT B 900000 502.50
27/3/2009 526881 FINANC TECHN RELIANCE CAPITAL TRUS CO. LTD B 700000 502.50
27/3/2009 526881 FINANC TECHN RELIANCE CAPITAL TRUSTEE CO. L B 550000 502.50
27/3/2009 526881 FINANC TECHN RELIANCE CAPITAL TRUSTEE CO L B 250000 502.50
27/3/2009 526881 FINANC TECHN FIDELITY INV INTL FIDELITY KOREA INDIA EQ INV TRUST MOTHER S 626427 501.83
27/3/2009 526881 FINANC TECHN FID FUNDS MAURITIUS LIMITED S 3136101 501.83
27/3/2009 500168 GOODYEA INDI PRASHANT PATEL B 340000 104.50
27/3/2009 514386 GUJ COTEX SAJJANKUMAR HETRAM NANWAL S 25000 2.23
27/3/2009 505726 IFB INDUSTRI MANISH J SHAH B 127733 25.45
27/3/2009 505726 IFB INDUSTRI NISHIT BABULAL SHAH S 127732 25.45
27/3/2009 532717 INDOTECHTR BLACKSTONE ASIA ADVISORS L.L.C. AC THE INDIA FUND INC S 85505 300.01
27/3/2009 532326 INTENS TECH ROLEX FINVEST PVT LTD B 477022 11.83
27/3/2009 532326 INTENS TECH VACUF LIMITED S 477022 11.83
27/3/2009 531861 JOINDR CAP S NEHARAJ STOCK BROKERS P. LTD B 78810 12.01
27/3/2009 530019 JUBILANT ORG COPTHALL MAURITIUS INVESTMENT LIMITED S 900000 94.00
27/3/2009 522101 KILBURN ENGG* YORK FINANCIAL SERVICES PVT LT B 114000 17.23
27/3/2009 512489 OASIS SECURI ABHISHEK BAGRI B 87404 27.55
27/3/2009 512489 OASIS SECURI SAMPAT KUMAR JAJOO S 84800 27.55
27/3/2009 532606 PAREKH ALUM MANISH J MARU B 149900 53.69
27/3/2009 532606 PAREKH ALUM PIONEER NIRMAN INDIA PRIVATE L S 140000 53.66
27/3/2009 506590 PHIL CAR BLK SNAP SECURITIES PVT LTD B 200000 33.10
27/3/2009 506590 PHIL CAR BLK LEND LEASE COMPANY INDIA LIMITED S 200000 33.10
27/3/2009 531172 PRANAVA SP M MUKESH HIRALAL DOCTARIA S 8000 6.01
27/3/2009 523523 RAINBOW PAPE HEMLATA GAUTAMCHAND SURANA B 55000 34.70
27/3/2009 590077 RANKLIN SOLU JYOTHI G B 33000 17.98
27/3/2009 590077 RANKLIN SOLU PARSHAVNATH INVESTMENT AND FINANCIAL SERVICES S 26492 17.42
27/3/2009 531215 RTS POWER CO HKB SHARES STOCK BROKING PVT S 56026 67.35
27/3/2009 512048 SPLASH MEDIA ANIL AGRAWAL HUF B 42101 83.45
27/3/2009 512048 SPLASH MEDIA KIRIT V DAVE S 35000 83.50
27/3/2009 512048 SPLASH MEDIA PRADEEP GUPTA S 60000 83.47
27/3/2009 517385 SYMP COM SYS DARSHAK ENTERPRISE PVT LTD S 51029 39.89
27/3/2009 530459 VALSON IND NAINESH HIMAT JATANIA S 25000 26.34
27/3/2009 531249 WELL PACK PA TUSHAR RAMESHBHAI PATEL B 27230 137.18
27/3/2009 531249 WELL PACK PA VISHESHSHAHRA S 30000 136.09

NSE Bulk Deal Watch - March 27 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
27-MAR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,BUY,241945,416.90,-
27-MAR-2009,ABAN,Aban Offshore Ltd.,MANIPUT INVESTMENTS PVT LTD,BUY,198681,421.48,-
27-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,BUY,417104,412.22,-
27-MAR-2009,ALPSINDUS,Alps Industries Ltd.,OLIVE VINIMAY PRIVATE LTD,BUY,250000,7.17,-
27-MAR-2009,BHARATRAS,Bharat Rasayan Ltd, R P GUPTA AND SONS HUF,BUY,51889,39.33,-
27-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,OM INVESTMENTS,BUY,311682,21.10,-
27-MAR-2009,CELESTIAL,Celestial Labs Limited,ADITYA NARAYAN SINGH,BUY,134100,11.19,-
27-MAR-2009,EDSERV,Edserv Softsystems Limite,DKG SECURITIES PVT. LTD.,BUY,210797,21.61,-
27-MAR-2009,EDSERV,Edserv Softsystems Limite,JAIRAM RAMCHAND JHAMTANI,BUY,100000,21.60,-
27-MAR-2009,EDSERV,Edserv Softsystems Limite,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,BUY,72000,21.60,-
27-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,BUY,94205,2211.14,-
27-MAR-2009,GMRINDS,GMR Industries Limited,PRIME INDIA INVESTMENT FUND LTD,BUY,240000,77.60,-
27-MAR-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,6130589,11.33,-
27-MAR-2009,KIRIDYES,Kiri Dyes and Chemicals L,MANISHKUMAR PRAVINCHANDRA KIRI,BUY,75000,136.54,-
27-MAR-2009,PHILIPCARB,Phillips Carbon Black,DAMANI MANMOHAN,BUY,400000,33.10,-
27-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,BUY,1197621,19.25,-
27-MAR-2009,TECHNOELEC,Techno Ele. & Eng. Co Ltd,PRAGYA COMMERCE PVT LTD,BUY,1520000,72.00,-
27-MAR-2009,TECHNOELEC,Techno Ele. & Eng. Co Ltd,TRIMURTI ASSOCIATES PVT LTD ,BUY,1630362,72.00,-
27-MAR-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD,SELL,241945,417.26,-
27-MAR-2009,ABAN,Aban Offshore Ltd.,MANIPUT INVESTMENTS PVT LTD,SELL,198681,422.16,-
27-MAR-2009,ABAN,Aban Offshore Ltd.,P R B SECURITIES PRIVATE LTD,SELL,417104,412.36,-
27-MAR-2009,ALOKTEXT,Alok Industries Limited,SLOANE ROBINSON LLP A/C S R GLOBAL (MAURITIUS) LTD CLASS B-A,SELL,1166440,12.39,-
27-MAR-2009,ALPSINDUS,Alps Industries Ltd.,INTELL INVOFIN INDIA PVT LTD,SELL,350000,7.16,-
27-MAR-2009,BHARATRAS,Bharat Rasayan Ltd,KRISHAN KUMAR HUF,SELL,51889,39.33,-
27-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,558958,21.41,-
27-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,500000,22.54,-
27-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,888053,23.18,-
27-MAR-2009,BRANDHOUSE,Brandhouse Retails Limite,OM INVESTMENTS,SELL,311682,21.16,-
27-MAR-2009,CELESTIAL,Celestial Labs Limited,RAJAHMANDRY RAJENDRA RAO,SELL,134100,11.19,-
27-MAR-2009,EDSERV,Edserv Softsystems Limite,DKG SECURITIES PVT. LTD.,SELL,192172,21.61,-
27-MAR-2009,EDSERV,Edserv Softsystems Limite,EPOCH SYNTHETICS PVT LTD,SELL,132653,21.60,-
27-MAR-2009,EDSERV,Edserv Softsystems Limite,HS FII INVESTMENTS LIMITED,SELL,79097,21.60,-
27-MAR-2009,EDSERV,Edserv Softsystems Limite,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,SELL,60568,21.60,-
27-MAR-2009,EDUCOMP,Educomp Solutions Limited,C D INTEGRATED SERVICES LTD,SELL,94205,2212.23,-
27-MAR-2009,EVERONN,Everonn Systems India Lim,NETEQUITY VENTURES PRIVATE LIMITED,SELL,111500,137.83,-
27-MAR-2009,GMRINDS,GMR Industries Limited,BRP STOCK BROKING SERVICES LIMITED,SELL,183627,77.60,-
27-MAR-2009,IBREALEST,Indiabulls Real Estate Li,DIRECT INVESTMENTS LIMITED ,SELL,1437045,100.31,-
27-MAR-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6130589,11.35,-
27-MAR-2009,KINETICMOT,Kinetic Motor Company Ltd,CITICORP FINANCE (INDIA) LIMITED,SELL,169730,10.60,-
27-MAR-2009,MUNDRAPORT,Mundra Port and Special E,3I VEHICLES (MAURITIUS) LIMITED,SELL,5694547,290.34,-
27-MAR-2009,OCTAV,Octav Investments Limited,SBI MUTUAL FUND A/C EMERGING FUND,SELL,16700,9.45,-
27-MAR-2009,PHILIPCARB,Phillips Carbon Black,LEND LEASE COMPANY INDIA LIMITED,SELL,500000,33.10,-
27-MAR-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,ADROIT FINANCIAL SERVICES PVT LTD,SELL,1152021,19.27,-
27-MAR-2009,TECHNOELEC,Techno Ele. & Eng. Co Ltd,CITIGROUP VENTURE CAPITAL,SELL,3120281,72.00,-

Profit taking may cap upside

A near term upside on the domestic bourses is capped as traders may cash in on gains after a recent solid surge in share prices. According to reports, Indian mutual fund managers are in no hurry to cut cash levels ahead of a general election in April-May 2009.

The BSE Sensex jumped 1888.09 points or 23.13% in twelve trading sessions to 10,048.49 on 27 March 2009 from a three-year closing low of 8,160.40 on 9 March 2009.

The strong surge was partly due to hectic short covering ahead of the expiry of the near-month March 2009 derivative contracts on 26 March 2009.

Parliamentary elections will be held between April-May 2009, with little prospect of a single party winning a majority on its own. Marketmen feel the possibility of a disparate coalition government was a potential risk, and could worsen an economic slowdown. Election results will be announced on 16 May 2009.

Experts are worried about India's widening fiscal deficit and exports that have dipped sharply. Arvind Virmani, chief economic adviser in the finance ministry, said on 27 March 2009, India's fiscal deficit may reach 6.5%-7% of gross domestic product in the fiscal year 2009/10.

Indian exports are likely to post a near-flat growth in 2009-10, according to Commerce Secretary Gopal K Pillai. Exports have been declining since October 2008 as the global economic slowdown trimmed demand from major markets.

As per initial estimates available with the commerce ministry exports dropped 13.7% in February 2009, registering fall for the fifth consecutive month.

Meanwhile, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on 27 March 2009, India's economy would be significantly worse in 2009 than in the previous year and the woes would not end in the fiscal year ending March 2010.

On the positive side, foreign institutional investors (FIIs), who were continuously selling for last several months, picked up shares worth approximately Rs 2300 crore in seven sessions between 18 and 25 March 2009. However, they still remain net sellers in this month and year as their outflow totaled Rs 51.70 crore in March 2009 and Rs 6733.50 crore in calendar year 2009 (till 25 March 2009).

Sensex breaches the psychological 10,000 mark

The stock markets displayed a distinctly strong trend during the week under review as the benchmarks jumped over 10%, on a host of positive global factors. A steep fall in the India's inflation also raised expectations of a further easing of the monetary policy by the Reserve Bank of India.

India's wholesale price index (WPI) rose 0.27% in the 12 months to 14 March 2009, below the previous week's annual rise of 0.44%, government data showed on 26 March 2009. The sharp fall in inflation has provided room for the RBI to cut interest rates further to support faltering economic growth.

The 30-share BSE Sensex jumped 1,081.81 points or 12.06% to 10,048.49, in the week ended Friday, 27 March 2009. The broader 50-issue Nifty jumped 301.6 points, or 10.74%, to end the week at 3108.65.

The BSE Mid-Cap index gained 173.10 points or 6.27% to 2,934.16 and the BSE Small-Cap index advanced 123.73 points or 3.97% to 3,238.11 in the week.

The BSE Sensex jumped 1888.09 points or 23.13% in twelve trading sessions to 10,048.49 on 27 March 2009 from a three-year closing low of 8,160.40 on 9 March 2009. The Sensex is up 4.15% in calendar 2009 from its close of 9,647.31 on 31 December 2008. The S&P CNX Nifty is up 5.05% in calendar 2009 from its close of 2,959.15 on 31 December 2008.

Foreign institutional investors (FIIs), who were continuously selling for last several months, picked up shares worth approximately Rs 2300 crore in seven sessions between 18 and 25 March 2009. However, they still remain net sellers in this month and year as their outflow totaled Rs 51.70 crore in March 2009 and Rs 6733.50 crore in calendar year 2009 (till 25 March 2009).

Trading for the week began on an upbeat note. Banking stocks surged on Monday, 23 March 2009, tracking global rally in financial stocks as key benchmark indices made hefty gains on latest effort by the US to revive the economy and stabilize its financial system. The BSE 30-share Sensex jumped 457.34 points, or 5.1%, to 9,424.02, its highest closing since 13 February 2009 and its biggest one-day rise in percentage terms since early December 2008. The S&P CNX Nifty gained 133.85 points or 4.73% at 2939.90.

Key benchmarks ended flat on Tuesday, 24 March 2009, as the market reversed most of its earlier strong intraday gains after European stocks gave up early gains. Political uncertainty ahead of parliamentary elections also prompted traders to lock in gains after the previous day's steep rise. The BSE 30-share Sensex was up 47.02 points or 0.5%, to 9,471.04, its highest close since 13 February 2009. But S&P CNX Nifty was down 1.20 points or 0.04% to 2,938.70.

The market surged on Wednesday, 25 March 2009, as buying by foreign funds and higher US index futures bolstered sentiment. Expectations of a further cut in policy rates by the Reserve Bank of India (RBI) also aided the surge in what a highly volatile trading session. The BSE 30-share Sensex rose 196.85 points, or 2.08%, to 9,667.90, its highest closing since 6 January 2009. The S&P CNX Nifty jumped 45.65 points or 1.55% to 2,984.35.

Fall in headline inflation to a record low and short covering in the derivatives segment ahead of the expiry of the near-month March 2009 contracts lifted the barometer index BSE Sensex above the psychological 10,000 mark on Thursday 27 March 2009. The BSE 30-share Sensex advanced 335.20 points, or 3.47%, to 10,003.10. The S&P CNX Nifty was up 97.90 points or 3.28% to 3,082.25.

Benchmarks gave up some of the last-hour gains but ended the volatile session higher on 27 March 2009, while broader markets outperformed them. The BSE Sensex rose 45.39 points or 0.45% at 10,048.49. The 50-unit Nifty rose 26.40 points or 0.86% to 3108.65.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) jumped 15.65% ahead of production of gas from KG basin, off the east coast. The company is reportedly expected to start natural gas production from its Krishna Godavari (KG) basin field in early April 2009. RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.

State-run gas distributor GAIL India spurted 9.13% on reports the company plans to invest Rs 1,000 crore in setting up 2,000 compressed natural gas dispensing stations on major national highways in the next three years.

Private sector oil explorer Cairn India rose 9.91% on reports the firm is likely to pump out crude oil from its Barmer field in Rajasthan in a month.

India's largest commercial vehicle maker by sales Tata Motors rose 17.34%. The world's cheapest car Tata Nano was unveiled in Mumbai by Tata Group Chairman Ratan Tata on 23 March 2009. The Tata Nano was launched in three models - Base, CX and LX. The booking for Tata Nano will be held between 9 April 2009 and 25 April 2009. The first set of Tata Nano will be delivered in the first week of July 2009. Within 60 days of the closure of bookings, Tata Motors will process and announce the allotment of 1,00,000 cars in the first phase of deliveries, through a computerised random selection procedure.

India's largest car maker by sales Maruti Suzuki India 7.67%. As per reports, firm is working towards launching new cars and improvising the existing ones to counter attack Tata Motors' Nano. In a tussle to capture the Indian passenger car market, Maruti is likely to launch Maruti Splash or Ritz in the second week of May 2009. Ritz will mount a 1.2 litre (KB series) petrol or 1.3-litre diesel engine and will be priced at around Rs 4-5.5 lakh.

Outsourcing focussed IT stocks rose on hopes of a revival in the US economy, the biggest market for IT firms. India's largest software services exporter by sales TCS rose 12.83%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.

India's third largest software services exporter Wipro rose 9.35%. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).

India's second largest software services exporter Infosys Technologies rose 3.81%. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.

Rate sensitive real estate shares surged on hopes lower interest rates will spur housing demand. DLF (up 6.72%), Indiabulls Real Estate (up 2.96%), Housing Development & Infrastructure (up 17.96%), rose. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

Delhi-based realtor Unitech rose 33.21%. Foreign fund house Morgan Stanley Mauritius purchased 96 lakh shares of realty firm Unitech at Rs 30.67 each through an open market transaction on 25 March 2009.

Metal shares rose on hopes a recovery in the global economy will boost demand for metals. Steel Authority of India (up 16.02%), Sterlite Industries (up 18.47%), Tata Steel (up 26.92%) and Hindalco Industries (up 15.65%) rose.

Banking stocks gained in volatile trade on hopes lower interest rates may boost lending growth. India's largest bank in terms of assets and branch network State Bank of India rose 18.02%. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.

India's largest private sector bank by net profit ICICI Bank rose 19.29%. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.

India's second largest private sector bank by operating income HDFC Bank rose 18.97%. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.

India's biggest dedicated housing finance firm by operating income HDFC rose 12.72% after it announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective 25 March 2009.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 16.22%. As per recent reports L&T and Grasim Industries are on the verge of settling their 7-year old legal dispute over Grasim`s 0.62% stake in L&T and the latter`s 11.49% stake in Ultratech, the Birla group cement firm. Grasim Industries and Ultratech Cement are Aditya Birla group companies. Diversified Grasim Industries rose 9.74% in the month.

India's infrastructure sector output grew 2.2% in February 2009 over February 2008, above an upwardly revised 1.5% in January 2009, government data showed on Friday, 27 March 2009. Output rose an annual 7% percent in February 2008, and in the 2007/08 fiscal year it rose 5.6%. The infrastructure sector accounts for 26.7% of India's industrial output.

Bank lending has improved in the fortnight following conducive environment created by policy makers. During the fortnight ended 13 March 2009, loans sanctioned by scheduled commercial banks (SCBs), including regional rural banks, went up by Rs 22,423 crore. This was the third fortnight in a row when credit flow went up.

The Indian government and central bank will continue to take measures to revive growth, Economic Affairs Secretary Ashok Chawla said on Friday, 27 March 2009. The government expects growth in the Indian economy to slow to 7.1% in 2008/09.

The Reserve Bank of India (RBI) has slashed interest rates since mid-October 2008, and the government has cut duties and taxes and introduced stimulus packages to shore up activity.

RBI Governor Duvvuri Subbarao said on Wednesday, 25 March 2009, that further fiscal stimulus would carry a cost.

India's economy would be significantly worse in 2009 than in the previous year, a top policy advisor said on Friday, 27 March 2009, and the woes would not end in the fiscal year ending March 2010. Planning Commission Deputy Chairman Montek Singh Ahluwalia said the latest assessment, on calendar year basis, suggests that 2009 is clearly going to be significantly worse than 2008.

Post Session Commentary - March 27 2009

Domestic market managed to end the extremely volatile session in a positive zone. Stocks moved between positive and negative territory for throughout of session on continuous bouts of buying and selling. Further buying by the FIIs along with hopes of ease in monetary policy contributed to some positive sentiments. However, profit booking was also witnessed following the recent rally.

The Indian market opened on flat note and turned choppy soon after start. However, the US stock markets ended with smart gains on Thursday on better-than-expected corporate earnings and a satisfactory Treasury auction of a USD 24 billion auction of seven-year treasury notes. Further, benchmark indices remained unstable and continued to swing between red and green terrains led by profit booking and mixed cues from other Asian counterparts. Finally, market was able to stay above previous close as optimistic sentiments thrived over negativity. From the sectoral front, most of the buying was seen in Metal, Pharma, Bank, Auto, Consumer Durables, PSU and Capital Goods. Mid Cap and Small Cap stocks also ended with gains. However, IT and Oil & Gas stocks witnessed most of the selling from these baskets.

Among the Sensex pack 23 stocks ended in green territory and 7 in red. The market breadth indicating the overall health of the market remained strong as 1527 stocks closed in green while 1018 stocks closed in red and 113 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 45.39 points at 10,048.49 and NSE Nifty ended up by 26.40 points at 3,108.65. BSE Mid Caps and Small Caps closed with gains of 59.94 and 50.77 points at 2,934.16 and 3,238.11 respectively. The BSE Sensex touched intraday high of 10,127.09 and intraday low of 9,913.40.

Gainers from the BSE Sensex pack are Tata Motors (9.32%), Tata Steel (9.13%), RCom (8.95%), Hindalco Ltd (5.26%), JP Associates (4.31%), Ranbaxy Lab (4.05%), DLF Ltd (3.69%), ACC Ltd (3.34%), TCS Ltd (3.24%), ICICI Bank (2.94%) and SBI (2.88%).

Losers from the BSE Sensex pack are HDFC (3.88%), Infosys Tech (2.46%), BHEL (1.19%), Reliance (1.18%) and Maruti Suzuki (0.69%).

On the global markets front the Asian markets which opened before the Indian market, ended mixed. Shanghai Composite and Hang Seng ended higher by 12.73 and 10.52 points at 2,374.44 and 14,119.50 respectively. However, Nikkei 225, Straits Times index and Seoul Composite lost 9.36, 13.13 and 6.29 points at 8,626.97, 1,745.66 and 1,237.51 respectively.

European markets which opened after the Indian market are trading mixed. In Frankfurt the DAX index is trading down by 13.63 points at 4,245.74 whereas in London FTSE 100 is trading higher by 4.15 points at 3,929.35.

The BSE Metal index closed with increase of (4.85%) or 282.77 points at 6,110.09 on strong rise in metal prices in London Metal Exchange. Scrips that gained are JSW Steel (13.77%), Sesa Goa Ltd (9.82%), Tata Steel (9.13%), Steel Authority (7.02%) and Welspan Gujarat SR (5.77%).

The BSE Pharma ended up by (2.81%) or 75.17 points at 2,748.03. Gainers are Matrix Lab (19.98%), Orchin Chem (10.94%), Sunpha Adv (8.50%), Dr Reddy’s Lab (6.63%) and Dishma Pharma (5.55%).

The BSE Bank stocks advanced by (2.61%) or 122.81 points to close at 4,829.03 as RBI issued fresh norms for the adjustment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), a step that will support the financial health of banks. Major gainers are Federal Bank (9.34%), Union Bank (6.39%), Oriental Bank (6.33%), Punjab National Bank (5.78%) and Bank of Baroda (5.22%).

The BSE Auto index also ended higher by (2.22%) or 66.56 points at 3,067.78. Tata Motors (9.32%), Bharat Forge (7.53%), Ashok Leyland (5.62%), Herohonda Motor (5.54%) and Tata Power (5.57%) ended in positive territory.

The BSE Consumer Durable index surged (1.61%) or 25.53 points to close at 1,608.60. Main gainers are Videocon Ind (4.44%), Gitanjali GE (3.64%), Blue Star L (2.28%) and Rajesh Export (0.82%).

The BSE IT index lost (0.99%) or 23.41 points to close at 2,337.80 after US based technology firm Accenture reported a drop in quarterly sales and lowered its full-year profit outlook due to a strong dollar and a slower global economy. Losers are Mphasis LtdInfosys Tech (2.46%), Mphasis Ltd (1.65%), Wipro Ltd (0.59%) and Oracle Fin (0.08%).

Sasken Communication Technologies advanced by 18.42% after company said it signed a pact with British satellite communications firm Inmarsat to design global satellite hand-held phones.

JSW Steel jumped 13.77% after the company said it repurchased foreign currency convertible bonds aggregating $47.80 million.

DLF gained 3.69% on reports it has slashed rates for one of its upcoming housing projects in Gurgaon by 20% to discourage existing buyers from defaulting on payment and induce new buyers.

Steel Authority increased by 7.02%. The company expects up to 10% more sales in the present month compared to the year-ago period on improved demand from sectors like construction and automobile.

ICICI Bank gained 2.94%. The bank said on Thursday that it look at the option of cutting of interest rates in a few weeks.

Tata Tea increased by 1.18%. The company plans to forge an alliance with the European Bank for Reconstruction and Development (EBRD) to buy a stake of 51 per cent in a Russian packaging and distribution company- Grand. Russia is the world''s largest tea market by volume after the UK and India.

Metals steel the show

The stock market witnessed strong volatility, swinging 214 points during intra-day trades, as shares gyrated sharply between zones. Taking cue from mixed Asian indices, Sensex started on a positive note at 10037, but failed to sustain its gains, as a sharp bout of profit-taking pushed the index below 10000 mark to an intra-day low of 9913. While the market remained lacklustre with a negative bias for some time, Sensex rolled back to the green by mid-noon trades on renewed buying support, and surged to an intra-day high of 10127. However, a fresh round of profit-taking towards the fag end saw Sensex pare its gains and end at 10048, up only 45 points, while Nifty added 26 points to close at 3109.

The market breadth, the number of advancing shares to declining ones, was positive. Of the 2,658 stocks traded on BSE 1,527 stocks advanced, whereas 1,018 stocks declines. 113 stocks remained unchanged. Of the 13 sectoral indices, BSE Metal gained 4.85%, while BSE HC, BSE Bankex and BSE Auto ended at higher levels. BSE Oil & Gas and BSE IT were the only two sectoral indices posting losses for the day.

Select heavyweights edged higher on decent buying support. Tata Steel rose 9.96% at Rs225.20, Tata Motors jumped 9.03% at Rs188.30, Reliance Communications advanced 7.23% at Rs167.10, Hindalco Industries added 7.23% at Rs55, ACC Industries gained 4.57% at Rs586 and JP Associates gained 4.02% at Rs89.30. However, select front line stocks came under selling pressure. HDFC was the major loser and lost 3.88% at Rs1,589.15. Infosys declined 2.46% at Rs1,346.75, Bharat Heavy Electricals dropped 1.19% at Rs1,551.40 and Reliance Industries shed 1.18% at Rs1,548.

Over 3.49 crore shares of Reliance Natural Resources changed hands on BSE followed by Unitech (1.53 crore shares), GVK Power & Infrastructure (1.31 crore shares), IFCI (98 lakh shares) and Cals Refineries (88 lakh shares).

Small-cap, mid-cap indices outperform Sensex

Key benchmark indices posted small gains as auto, banking and metal stocks rose. Volatility was immense. Index heavyweight Reliance Industries (RIL) dropped on profit taking after a recent sharp surge. The BSE 30-share Sensex rose 28.35 points, or 0.28%, up close to 120 points from the day's low but off close to 95 points from the day's high. The Sensex closed above the psychological 10,000 level. It moved moved in and out of the 10,000 level during the day.

Volatility was high. After a firm opening triggered by overnight rally in US stocks, on data showing stepping up of buying by foreign funds and on expectations of a further easing of the monetary policy, the market soon slipped into the red. It bounced back shortly in early trade. After the early surge, the market soon lost ground in morning trade. The market cut losses in early afternoon trade.

The market moved into positive zone in choppy trade on improved infrastructure output data for February 2009. It recovered after slipping closer to the day's in mid-afternoon trade on higher European markets. The market cut gains in late trade as European stocks slipped into the red.

Profit booking may cap upside on the bourses in the near term after a recent solid surge in share prices. The BSE Sensex has jumped 1888.09 points or 23.13% in twelve trading sessions from a three-year closing low of 8,160.40 on 9 March 2009.

The infrastructure sector output grew 2.2 % in February 2009 from a year earlier, above an upwardly revised 1.5% growth in January 2009, data released by government in early afternoon trade showed. Infrastructure sector output had risen an annual 7% in February 2008, and in the 2007/08 fiscal year it had risen 5.6%.The infrastructure sector accounts for 26.7% of industrial output.

Derivatives contracts for March 2009 series which expired on Thursday, 26 March 2009 painted a mixed picture in terms of rollovers. As per reports, marketwide rollover positions from March 2009 series to April 2009 stood at 77% compared with 75% in the previous series. Nifty rollover was 70% from 76%.

European shares were mostly lower in a choppy session on Friday, with energy shares losing ground on weaker crude oil prices. Key benchmark indices in France, UK and Germany fell by between 0.01% to 0.78%.

Asian markets were mixed today, 27 March 2009 as hopes the global economy could not get any worse kept investors buying riskier assets, though US and Japanese data left some doubts lingering. Key benchmark indices in China, Hong Kong and Taiwan were up by between 0.08% and 0.54%. However, key benchmark indices in Japan, Singapore, South Korea fell by between 0.11% and 0.75%.

The global recession, combined with a slide in oil prices, pushed Japanese consumer price inflation to zero in February 2009. Retail sales also fell further than expected, more evidence that slumping global appetite for Japanese exports is hurting demand in the world's second-largest economy.

Trading in US index futures indicated the Dow could fall 49 points at the opening bell on Friday 27 March 2009. US markets rallied on Thursday, 26 March 2009 as investors were encouraged by decent demand for a $24-billion auction of seven-year treasury notes and better-than-expected quarterly earnings from Best Buy. The Dow gained 174.75 points, or 2.25%, at 7,924.56. The S&P 500 index added 18.98 points, or 2.33%, to 832.86. The Nasdaq advanced 58.05 points, or 3.8%, to 1,587.

US GDP was down 6.3% in the fourth quarter beating economists expectation of a 6.2% fall.

Closer home, the Reserve Bank of India Governor D Subbarao on Thursday, 26 March 2009 said the slowdown in India's economic expansion has been steeper than previously estimated and the challenge will be to arrest the moderation in growth. He said a painful adjustment was inevitable until the economy recovered and stimulus measures were the right step in the current extraordinary situation.

The RBI governor said there is a cost to further fiscal stimulus and more borrowings will put pressure on credit markets. The RBI governor said 2009/10 will be a challenging year unless business confidence and investment revived, and said earlier cuts in policy rates needed to flow through to the economy. "We set the policy rates but policy rates have to transmit through the banks," Subbarao said.

Inflation based on the wholesale prices rose 0.27% in the 12 months to 14 March 2009, a record low and below the previous week's annual rise of 0.44%, data released by the government during trading hours on Thursday, 26 March 2009 showed. The fall in headline inflation to a record low has raised expectations of further easing of the monetary policy by the Reserve Bank of India (RBI) to boost demand in the economy.

Retail inflation is, however, ruling firm even as the whole sale price inflation has touched a record low. Retail inflation as measured by the Consumer Price Index for farm labourer (CPI-AL) and rural labourers (CPI-RL) eased to 10.79% in February 2009, a marginal dip from 11.62% and 11.35% respectively in January 2009. CPI-AL and CPI-RL were at 6.38% and 6.11% in corresponding period last year.

Annual inflation for food articles remains high even though it has eased from the 10 year high of 11.64% witnessed in first week of January 2009. Inflation for food articles stood at 7.35% for first week of March 2009 with double-digit price rise for many items including sugar and gur, pulses and cereals. At the time of announcing a reduction in key short-term interest rates, the RBI said early this month that though consumer price inflation has remained at elevated level due to increase in primary articles prices, it is expected to decline with a lag effect due to sharp fall in the wholesale price inflation.

Prime Minister Manmohan Singh on Tuesday, 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.

Meanwhile, there are signs that the credit flow to businesses is improving. During the fortnight ended 13 March 2009, loans sanctioned by scheduled commercial banks (SCBs), including regional rural banks, went up by Rs 22,423 crore. This was the third fortnight in a row when credit flow went up. Earlier, an extreme risk aversion by banks had chocked credit flow to the industry - the lifeline of business.

Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.

Raising funds could become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into practice from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.

Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.

Meanwhile, foreign institutional investors have stepped up buying of Indian stocks which follows easing of FII selling vigour in the past few days. FIIs bought shares worth a net Rs 2,494.70 crore in nine trading sessions from 13 March 2009 to 25 March 2009.

Foreign funds can take solace in the recent sharp rebound in the rupee against the dollar. However, the currency has been volatile. A recent sharp slide in the rupee to a record low had resulted in a depreciation in the value of FIIs equity portfolio to the extent of the fall in rupee. The rupee hit a record low beyond 52 per dollar early this month.

Indian bond and currency markets were closed on Friday for a local holiday. Trading resumes on Monday, 30 March 2009. The partially convertible rupee ended at 50.59/61 per dollar on Thursday off a high of 50.46 but up 0.3 % from the previous close.

Domestic institutional investors have been absorbing heavy selling by foreign funds witnessed in first two months of calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). The financial year ends on 31 March 2009.

The recent steep volatility in the currency does not augur well for corporate India as it may result in hedging losses for some firms.

Meanwhile, the National Advisory Committee on Accounting Standards (Nacas), has reportedly favoured suspending for two years a key rule that requires firms to mark-to-market (MTM) foreign exchange assets and liabilities, a decision which is favourable for corporate India.

Accounting Standard-11 mandates MTM provisioning in the P&L a/cs for forex-related gains and losses. It requires that forex assets & liabilities be recorded at a fair value on the date of preparation of the balance sheet. The demand to suspend this rule, known in accounting circles as AS-11, was made by the Confederation of Indian Industry (CII) on grounds that it could severely distort the earnings of many companies. It was contended that this accounting standard, designed to address normal conditions, should be suspended for the time being, as the present market conditions were not normal.

The upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. Early estimates point a fractured mandate. An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls.

But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad has announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.

The Congress, meanwhile, has reported sealed a seat-sharing pact with the Nationalist Congress Party (NCP) in the populous Maharashtra state. Relations between the two parties have been prickly as the NCP negotiated with opposition parties to undercut Congress and boost its leader's prime ministerial ambitions. Congress will stand for 26 seats in the state and the NCP for 22. The allies are weighing up their options for a similar deal outside the state.

The Congress party on Tuesday 24 March 2009 said it would extend interest relief to farmers and build on the national job guarantee scheme. The focus on populist measures by Congress may weigh on the stock market sentiment especially at a time when the fiscal deficit has risen sharply. Releasing the party manifesto for the election, the Congress party on Tuesday said it would maintain government control over state-run firms in the manufacturing and finance sectors.

As per reports, BJP's manifesto is likely to be even more populist than that of the Congress party. The BJP looks set to sell rice to families below the poverty line at the hugely subsidised price of Rs 2 a kilo. Congress has already promised to sell 25 kilos of wheat or rice per month at Rs 3 a kilo.

A group of smaller political parties, including the communists, have formally launched a Third Front in a bid to provide an alternative to the two main parties viz. the Congress and the BJP.

A latest jolt to the Congress party came from a decision of the regional party in Tamil Nadu viz. the PMK on Thursday, 26 March 2009, to join hands with the All India Anna Dravida Munnetra Kazhagam (AIADMK). PMK is a part of the ruling Congress-led United Progressive Alliance at the centre. The PMK's decision to join AIADMK could give impetus to the Third Front if the PMK and AIADMK join it.

The BSE 30-share Sensex was up 28.35 points, or 0.28%, to 10,031.45, its highest closing since 6 January 2009. At the day's high of 10,127.09, the Sensex rose 123.99 points in early trade. At the day's low of 9,913.40, the Sensex fell 89.70 points in mid-morning trade.

The S&P CNX Nifty was up 26.40 points or 0.86% to 3,108.65.

The BSE clocked a turnover of Rs 4,317 crore, lower than Rs 4,635.28 crore on Thursday, 26 March 2009.

Nifty April 2009 futures were at 3126.45, at a premium of 17.80 points as compared to the spot closing of 3108.65. Turnover in NSE's futures & options (F&O) segment was Rs 51,171.38 crore much lower than Rs 76,957.01 crore on Thursday, 26 March 2009.

The BSE Mid-Cap index was up 2.09% and BSE Small-Cap index rose 1.59%. Both the indices outperformed the Sensex.

The BSE Metal index (up 4.85%), the BSE Healthcare index (up 2.81%), the BSE Bankex (up 2.61%), the BSE Auto index (up 2.22%), the BSE Consumer Durables index (up 1.61%), the BSE PSU index (up 1.47%), the BSE Capital Goods index (up 1.29%), the BSE Realty index (up 1.23%), the BSE FMCG index (up 0.73%) outperformed the Sensex.

The BSE IT index (down 0.99%), the BSE Oil & Gas index (down 0.12%), the BSE Power index (up 0.32%), the BSE TECk index (up 0.39%), underperfomed the Sensex.

The market breadth, indicating the overall health of the market, was strong on BSE with 1,541 shares advancing as compared with 1,038 that declined. A total of 54 shares remained unchanged.

From the 30 stock Sensex pack 23 stocks gained while the rest fell. Jaiprakash Associates, ACC, Reliance Communications rose by between 3.34% to 8.95%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 1.18% to Rs 1,548 on profit taking after surging 35.67% in the preceding eleven trading sessions. The company is reportedly expected to start natural gas production from its Krishna Godavari (KG) basin field in early April 2009.

RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.

India's largest oil exploration firm by sales Oil and Natural Gas Corporation rose 0.42% as the company's chairman R.S. Sharma today said in a television interview that the company plans to spend Rs 20000 crore ($3.9 billion) in the next financial year and has no intention of slowing investments.

Shares of oil marketing companies rose for the fourth straight day in a row after the government issued oil bonds worth Rs 10,000 crore to compensate them for under-recoveries on sale of petroleum products at a controlled price during the current financial year. BPCL and HPCL rose by between 1.42% and 1.26% respectively.

Indian Oil Corporation rose 0.24% after company said on Wednesday, 25 March 2009 the government has approved a proposal to absorb its subsidiary Bongaigaon Refinery & Petrochemicals (BRPL). Indian Oil will issue four shares for every 37 shares in BRPL.

Indian Oil Corporation has been issued oil bonds worth Rs 5,817.27 crore, while Bharat Petroleum Corporation has been issued bonds worth Rs 2,144.32 crore. Hindustan Petroleum Corporation has got bonds worth Rs 2,038.41 crore.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 2.82%. As per recent reports L&T and Grasim Industries are on the verge of settling their 7-year old legal dispute over Grasim`s 0.62% stake in L&T and the latter`s 11.49% stake in Ultratech, the Birla group cement firm. Grasim Industries and Ultratech Cement are Aditya Birla group companies.

Other capital goods stocks, Crompton Greaves, Punj Lloyd, Praj Industries, ABB, rose by between 1.6% to 10.18%. But India's largest electric equipment maker by sales Bharat Heavy Electricals fell 1.19%.

Metal stocks gained after a measure of six primary metals traded on the London Metal Exchange rose 2.6% on Thursday, the first gain in three days. Steel Authority of India, National Aluminum Company, Sterlite Industries, Hindustan Zinc and Hindalco Industries rose by between 1.59% to 7.02%.

World's sixth largest steel maker by sales Tata Steel shot up 9.13% on reports it intends to partly roll back its recent production cut at UK subsidiary Corus. The stock came off the day's high of Rs 223.20.

Some FMCG stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. United Spirits, Britannia Industries, Tata Tea rose by between 0.97% to 2.3%. India's largest FMCG firm by sales Hindustan Unilever rose 0.4%. The company's advance tax payment rose 30% to Rs 130 crore in Q4 March 2009 over Q4 March 2008.

Banking stocks rose after Reserve Bank of India (RBI) on Wednesday 25 March 2009 issued fresh norms for the treatment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), a move that will help improve the financial health of banks. India's largest bank in terms of assets and branch network State Bank of India rose 2.88%. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.

India's largest private sector bank by net profit ICICI Bank rose 2.94%. Its American depository receipts (ADR) rose 4.97% on Thursday 26 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.

But, India's second largest private sector bank by operating income HDFC Bank rose 0.2. Its ADR rose 1.81% on Thursday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.

India's biggest dedicated housing finance firm by operating income HDFC fell 3.88% on profit taking after recent surge. It announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.

The new RBI norms are expected to improve capital adequacy and bring down the level of net NPAs. Under the revised norms, the banks can use the provisions made for decline in the fair value of restructured advances (standard assets and NPAs) for netting from relative assets.

India's largest commercial vehicle maker by sales Tata Motors rose 9.32% on speculation a decision of National Advisory Committee on Accounting Standard to postpone implementation of accounting standard 11 until April 2011 is likely to benefit the auto major. he world's cheapest car Tata Nano was unveiled in Mumbai by Tata Motors on Monday 23 March 2009. Bookings for the Nano are expected to soothe the company's funding woes.

India's largest motorbike maker by sales Hero Honda Motors rose 5.54%.

But India's largest car maker by sales Maruti Suzuki India fell 0.69%. Recent report suggested firm is working towards launching new cars and improvising the existing ones to counter attack Tata Motors' recently unveiled world's cheapest car Tata Nano. In a tussle to capture the Indian passenger car market, Maruti is likely to launch Maruti Splash or Ritz in the second week of May 2009. Ritz will mount a 1.2 litre (KB series) petrol or 1.3-litre diesel engine and will be priced at around Rs 4-5.5 lakh.

India's largest tractor maker by sales Mahindra & Mahindra fell 0.01%.

Outsourcing focussed IT firms fell after US based technology outsourcing and consulting firm Accenture reported a drop in quarterly sales and lowered its full-year profit outlook due to a stronger dollar and a slower global economy. India's second largest software services exporter Infosys Technologies fell 2.46%. Its ADR rose 4.25% on Thursday. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.

India's third largest software services exporter, Wipro fell 0.59%. Its ADR gained 4.27% on Thursday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).

But India's largest software services exporter by sales TCS rose 3.24%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.

Rate sensitive realty stocks fell on talks falling interest rates have failed to revive housing demand. Indiabulls Real Estate and Akruti City, Unitech fell by between 1.29% to 5%. Most of the realty deals including sale of commercial property and housing sales is driven by finance.

Some healthcare stocks rose on expectations of better Q4 March 2009 results following reports of higher advance tax payment by these firms. Ranbaxy Laboratories, Sun Pharmaceutical Industries, Matrix Laboratories, Lupin, Dr Reddy's Laboratories, Lupin Pfizer, Cipla rose by between 0.4% to 20%.

Reliance Natural Resources clocked a highest volume of 3.49 crore shares on BSE. Unitech (1.54 crore shares), GVK Power & Infrastrucutre (1.32 crore shares), IFCI (99.14 lakh shares) and Cals Refineries (89.13 lakh shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 299.37 crore on BSE. Financial Technologies (Rs 281.19 crore), Reliance Capital (Rs 197.59 crore), Reliance Infrastructure (Rs 188.64 crore) and Tata Steel (Rs 176.99 crore) were the other turnover toppers in that order.

Daily News Roundup - March 27 2009

DLF cuts rates of Gurgaon project by 20%. (ET)

SAIL, Tata Steel, JSW and Essar have all resumed normal production. (ET)

Bharti Airtel can bring in more FDI, but has no plans to raise funds at present. (ET)

ONGC has deferred investments in Imperial Energy to raise crude oil production. (ET)

January strike to impact ONGC’s output in the fourth quarter (DNA)

SAIL will not go slow on its plans to invest Rs500bn in increasing capacity by 10mn tones. (BL)

HCL Tech gets three-year contract from third-party logistics solutions player, MJ Logistics, for implementing integrated software solutions (BS)

PSU oil companies to fuel growth by spending Rs570bn next year on expanding supplies and building new transportation networks for oil and gas. (ET)

Godrej Group is looking at acquiring Sara Lee International’s stake in Godrej Sara Lee. (ET)

NTT DoCoMo completes has completed the purchase of 26% stake in Tata Teleservices by paying US$2.7bn. (ET)

Tata Steel looking to raise Corus output on signs of demand revival in Europe (DNA)

CESC likely to pump Rs1.75bn into Spencer’s Retail (DNA)

Suzlon’s pledged stake rises to 27% (BS)

HCC has recorded 17% increase in its order book to Rs170bn between March 2008 and March 2009 (DNA)

A consortium led by Tata Tea plans to acquire a controlling 51% stake in Grand, a Russian packaging and Distribution company. (ET)

Essar Oil to soon diversify into retailing of LPG for automotives (DNA)

Motherson Sumi Systems promoters have acquired the entire stake of its Japanese JV partner Sojitz Corporation for Rs2.06bn. (ET)

DKNY signs an agreement with DLF Brands, to set up exclusive DKNY stores in India. (ET)

Maruti has no plans to enter Nano segment. (BL)

Maruti admits that the launch of Tata Nano could marginally affect sales of its flagship model M800 (DNA)

Sasken wins contract from Inmarsat of UK to make satellite phones that works on GSM network. (BL)

SCI mulls JV plan with SAIL. (BL)

Bajaj Auto is looking to increase sale of its vehicles through its own financing arm, Bajaj Finserve Ltd (DNA)

Subros to raise its AC output by 33% (BS)

Lanco Infra hopes to commission 2,000mw capacity in FY10 (DNA)

HT Media receives Delhi High Court approval for de-merging its radio business (BS)


Inflation drops further to 0.27% for the week ended March 14. (BL)

India’s economy to expand by 6.5 to 7% in the current fiscal says PM Manmohan Singh. (ET)

Government predicts flat exports growth in FY10 (BS)

India has turned into a net exporter of Gold in the past few months (BS)

Government clears 26 FDI proposals worth Rs10.4bn (BS)

Markets lose further ground; Sensex down 48.81 pts

Markets traded on a negative note. The 30-share BSE Sensex lost its 10,000 mark sheen after touching a high of 10.127.09. Selective buying and selling was witnessed in frontline stocks.

Major gainers in the sectoral indices were BSE Health Care (1.57%), Metal (1.41%) and Bankex (1.10%). Meanwhile, BSE IT (1.64%), Realty (0.68%) and FMCG (0.63%) were major losers in the 30-share index.

BSE Midcap and Smallcap are up by 0.97% and 0.58% respectively.

Meanwhile, Asian stocks witnessed a mixed trend. Japanese benchmark index Nikkei advanced 58.83 points, or 0.68%, to trade at 8,695.16 on the other hand, Hong Kong`s Hang Seng index shed 63.96 points, or 0.45%, to trade at 14,045.02

Asian stocks, meanwhile witnessed a mixed trend. Japanese benchmark index Nikkei advanced 58.83 points, or 0.68%, to trade at 8,695.16 on the other hand, Hong Kong`s Hang Seng index shed 63.96 points, or 0.45%, to trade at 14,045.02. (11:15 a.m)

Currently, the 30-share index Sensex is trading down 48.81 points, or 0.49%, at 9,954.29, after touching a high of 10,127.09 and a low of 9,914.29. Meanwhile the broad based Nifty is trading lower by 6.45 points, or 0.21%, at 3,075.80, after hitting a high of 3,123.35 and a low of 3,055.90. (10.56 a.m.)

The 30-share index, BSE Sensex opened with a gain of 33.70 points, at 10,036.80. In the previous day session, the Sensex closed with a gain of 335.20 points, or 3.47%, while the NSE Nifty climbed by 97.90 points, or 3.28%.

Overall market breadth was however positive. Out of the total 1,953 shares traded at BSE, 1,101 advanced, 780 declined while 72 remained unchanged.

Major gainers in the 30-share index were Tata Steel (3.91%), Larsen & Toubro (1.71%), Hindalco Industries (1.63%) and Sun Pharmaceuticals (1.56%).

On the other hand, Wipro (2.61%), Infosys Technologies (2.44%), HDFC (2.07%) and TCS (2.06%) were the major losers in the Sensex.

Sensex hovers above 10,000; breadth strong

Key benchmark indices surged in early volatile trade on overnight rally in US stocks, on data showing stepping up of buying by foreign funds and on expectations of a further easing of the monetary policy. The barometer index BSE Sensex which fell below the psychological 10,000 level in early trade soon regained that level.

Banking and metal stocks gained even as IT stocks declined. The BSE 30-share Sensex was up 79.13 points, or 0.79%, off close to 170 points from the day's low. Profit booking might emerge in the near term after a recent solid surge in share prices. The BSE Sensex had risen 1,842.70 points or 22.58% in eleven trading sessions to 10,003.10 on 26 March 2009 from a three-year closing low of 8,160.40 on 9 March 2009.

Derivatives contracts for March 2009 series which expired on Thursday, 26 March 2009 painted a mixed picture in terms of rollovers. As per reports, marketwide rollover positions from March 2009 series to April 2009 stood at 77% compared with 75% in the previous series. Nifty rollover was 70% from 76%.

Asian markets were mixed today, 27 March 2009 with Japan's Nikkei average striking a 2-1/2-month high led by exporter shares on a weakening yen and after US data sparked optimism about an economic recovery. Key benchmark indices in China, Taiwan and Japan were up by between 0.54% and 0.69%. However key benchmark indices in Hong Kong, Singapore, South Korea fell by between 0.45% and 0.93%.

Trading in US index futures indicated the Dow could fall 21 points at the opening bell on Friday 27 March 2009. US markets rallied on Thursday, 26 March 2009 as investors were encouraged by decent demand for a $24-billion auction of seven-year treasury notes and better-than-expected quarterly earnings from Best Buy. The Dow gained 174.75 points, or 2.25%, at 7,924.56. The S&P 500 index added 18.98 points, or 2.33%, to 832.86. The Nasdaq advanced 58.05 points, or 3.8%, to 1,587.

US GDP was down 6.3% in the fourth quarter beating economists expectation of a 6.2% fall.

Closer home, Reserve Bank of India Governor D Subbarao on Thursday, 26 March 2009 said the slowdown in India's economic expansion has been steeper than previously estimated and the challenge will be to arrest the moderation in growth. He said a painful adjustment was inevitable until the economy recovered and stimulus measures were the right step in the current extraordinary situation.

The RBI governor said there is a cost to further fiscal stimulus and more borrowings will put pressure on credit markets. The RBI governor said 2009/10 will be a challenging year unless business confidence and investment revived, and said earlier cuts in policy rates needed to flow through to the economy. "We set the policy rates but policy rates have to transmit through the banks," Subbarao said.

Inflation based on the wholesale prices rose 0.27% in the 12 months to 14 March 2009, a record low and below the previous week's annual rise of 0.44%, data released by the government during trading hours on Thursday, 26 March 2009 showed. The fall in headline inflation to a record low has raised expectations of further easing of the monetary policy by the Reserve Bank of India (RBI) to boost demand in the economy.

Retail inflation is, however, ruling firm even as the whole sale price inflation has touched a record low. Retail inflation as measured by the Consumer Price Index for farm labourer (CPI-AL) and rural labourers (CPI-RL) eased to 10.79% in February 2009, a marginal dip from 11.62% and 11.35% respectively in January 2009. CPI-AL and CPI-RL were at 6.38% and 6.11% in corresponding period last year.

Annual inflation for food articles remains high even though it has eased from the 10 year high of 11.64% witnessed in first week of January 2009. Inflation for food articles stood at 7.35% for first week of March 2009 with double-digit price rise for many items including sugar and gur, pulses and cereals. At the time of announcing a reduction in key short-term interest rates, the RBI said early this month that though consumer price inflation has remained at elevated level due to increase in primary articles prices, it is expected to decline with a lag effect due to sharp fall in the wholesale price inflation.

Prime Minister Manmohan Singh on Tuesday, 24 March 2009 said India's economy will revive in a big way in six to seven months as stimulus packages start to take effect. On the same day, Planning Commission Deputy Chairman Montek Singh Ahluwalia scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.

Meanwhile, there are sings that the credit flow to businesses is improving. During the fortnight ended 13 March 2009, loans sanctioned by scheduled commercial banks (SCBs), including regional rural banks, went up by Rs 22,423 crore. This was the third fortnight in a row when credit flow went up. Earlier, an extreme risk aversion by banks had chocked credit flow to the industry - the lifeline of business.

Earlier the global financial crisis ends and sooner the risk appetite of global investors and global companies improves, better it will be for India Inc. An increase in risk appetite of global investors/global companies will help Indian firms raise overseas funds required for business expansion. The global financial crisis has chocked the overseas funding route for Indian firms.

Raising funds could become difficult for small and medium enterprises (SMEs) with new lending regulations for banks, popularly known as Basel II norms coming into practice from 1 April 2009. All business units, irrespective of their size, will need to take ratings for their enterprises to secure working capital, loans, and other funds from banks.

Lack of funding has hit a slew of long-gestation infrastructure projects in India. World Bank Chief Economist & Senior Vice-President, Dr Justin Yifu Lin, on 13 March 2009, said if India can improve its infrastructure such as electricity, power, transportation and port facilities, it will be well on its path to achieve a 9-10% growth.

Meanwhile, foreign institutional investors have stepped up buying of Indian stocks which follows easing of FII selling vigour in the past few days. FIIs bought shares worth a net Rs 2,494.70 crore in nine trading sessions from 13 March 2009 to 25 March 2009. According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth of shares worth a massive Rs 1290.74 crore on Thursday, 26 March 2009. On the same day, domestic institutional investors (DIIs) sold shares worth Rs 461.87 crore

Foreign funds can take solace in the recent sharp rebound in the rupee against the dollar. However, the currency has been volatile. A recent sharp slide in the rupee to a record low had resulted in a depreciation in the value of FIIs equity portfolio to the extent of the fall in rupee. The rupee hit a record low beyond 52 per dollar early this month.

Indian bond and currency markets are closed on Friday for a local holiday. Trading resumes on Monday, 30 March 2009. The partially convertible rupee ended at 50.59/61 per dollar on Thursday off a high of 50.46 but up 0.3 % from the previous close.

Domestic institutional investors have been absorbing heavy selling by foreign funds witnessed in first two months of calendar year 2009. Mutual funds are likely give support to prices to prop-up year end net asset values (NAVs). The financial year ends on 31 March 2009.

The recent steep volatility in the currency does not augur well for corporate India as it may result in hedging losses for some firms.

Meanwhile, the National Advisory Committee on Accounting Standards (Nacas), has reportedly favoured suspending for two years a key rule that requires firms to mark-to-market (MTM) foreign exchange assets and liabilities, a decision which is favourable for corporate India.

Accounting Standard-11 mandates MTM provisioning in the P&L a/cs for forex-related gains and losses. It requires that forex assets & liabilities be recorded at a fair value on the date of preparation of the balance sheet. The demand to suspend this rule, known in accounting circles as AS-11, was made by the Confederation of Indian Industry (CII) on grounds that it could severely distort the earnings of many companies. It was contended that this accounting standard, designed to address normal conditions, should be suspended for the time being, as the present market conditions were not normal.

The upside on the domestic bourses will be capped in the next two months due to political uncertainty ahead of parliamentary election to be held between mid-April 2009 to mid-May 2009. More so at a time when it is highly unlikely that either Congress or BJP will come to power on its own, i.e., without the support of other small/regional parties. Early estimates point a fractured mandate. An alliance led by the Congress party is ahead in pre-poll surveys carried out by several polls.

But in a move which could undermine the chances of a Congress-led alliance getting more seats in the election, RJD supremo Lalu Prasad has announced candidates for 28 of the 40 constituencies in Bihar including from the three seats where Congress has sitting MPs. RJD is one of the key constituents of the current Congress-led UPA government at the Centre.

The Congress, meanwhile, has reported sealed a seat-sharing pact with the Nationalist Congress Party (NCP) in the populous Maharashtra state. Relations between the two parties have been prickly as the NCP negotiated with opposition parties to undercut Congress and boost its leader's prime ministerial ambitions. Congress will stand for 26 seats in the state and the NCP for 22. The allies are weighing up their options for a similar deal outside the state.

The Congress party on Tuesday 24 March 2009 said it would extend interest relief to farmers and build on the national job guarantee scheme. The focus on populist measures by Congress may weigh on the stock market sentiment especially at a time when the fiscal deficit has risen sharply. Releasing the party manifesto for the election, the Congress party on Tuesday said it would maintain government control over state-run firms in the manufacturing and finance sectors.

As per reports, BJP's manifesto is likely to be even more populist than that of the Congress party. The BJP looks set to sell rice to families below the poverty line at the hugely subsidised price of Rs 2 a kilo. Congress has already promised to sell 25 kilos of wheat or rice per month at Rs 3 a kilo.

A group of smaller political parties, including the communists, have formally launched a Third Front in a bid to provide an alternative to the two main parties viz. the Congress and the BJP.

A latest jolt to the Congress party came from a decision of the regional party in Tamil Nadu viz. the PMK on Thursday, 26 March 2009, to join hands with the All India Anna Dravida Munnetra Kazhagam (AIADMK). PMK is a part of the ruling Congress-led United Progressive Alliance at the centre. The PMK's decision to join AIADMK could give impetus to the Third Front if the PMK and AIADMK join it.

At 10:20 IST, the BSE 30-share Sensex was up 79.13 points, or 0.79%, to 10,081.78. At the day's high of 10,091.18, the Sensex rose 88.08 points in early trade, its highest since 7 January 2009. At the day's low of 9,914.29, the Sensex fell 88.81 points in early trade.

The S&P CNX Nifty was up 9.65 points or 0.31% to 3,091.90.

The market breadth, indicating the overall health of the market, was strong on BSE with 937 shares advancing as compared with 555 that declined. A total of 56 shares remained unchanged.

From the 30 stock Sensex pack 19 stocks gained while the rest fell.Larsen & Toubro, Reliance Communications and Ranbaxy Laboratories rose by between 2.63% to 3.41%. While, Maruti Suzuki India, Tata Power Company and ITC fell by between 0.46% to 0.67%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 0.51% to Rs 1,559 on profit taking after recent solid surge. The company is reportedly expected to start natural gas production from its Krishna Godavari (KG) basin field in early April 2009.

RIL's advance tax payment fell 16.47% to Rs 370 crore in Q4 March 2009 over Q4 March 2008.

Banking stocks extended gains after Reserve Bank of India (RBI) on Wednesday 25 March 2009 issued fresh norms for the treatment of provisions for restructured accounts, standard assets, and non-performing assets (NPAs), a move that will help improve the financial health of banks. India's largest bank in terms of assets and branch network State Bank of India rose 2.3%. Its advance tax payment jumped 27.64% to Rs 1810 crore in Q4 March 2009 over Q4 March 2008.

India's largest private sector bank by net profit ICICI Bank rose 2.03%. Its American depository receipts (ADR) rose 4.97% on Thursday 26 March 2009. ICICI Bank's advance tax payment remained unchanged at Rs 250 crore in Q4 March 2009 when compared to Q4 March 2008.

India's second largest private sector bank by operating income HDFC Bank rose 0.34%. Its ADR rose 1.81% on Thursday. Its advance tax payment rose 10% to Rs 275 crore in Q4 March 2009 over Q4 March 2008.

India's biggest dedicated housing finance firm by operating income HDFC rose 3.51%, extending gain for the third straight day after it announced a 50 basis points reduction in its retail prime lending rate (RPLR) to 14% effective Wednesday 25 March 2009.

The new RBI norms are expected to improve capital adequacy and bring down the level of net NPAs. Under the revised norms, the banks can use the provisions made for decline in the fair value of restructured advances (standard assets and NPAs) for netting from relative assets.

Outsourcing focussed IT firms fell after US based technology outsourcing and consulting firm Accenture reported a drop in quarterly sales and lowered its full-year profit outlook due to a stronger dollar and a slower global economy. India's largest software services exporter by sales TCS fell 1.65%. The company's advance tax payment fell 54.3% to Rs 53 crore in Q4 March 2009 over Q4 March 2008.

India's second largest software services exporter Infosys Technologies fell 1.86%. Its ADR rose 4.25% on Thursday. Recent reports said it may win a large IT project from the government, which will run on a transaction-based pricing model, similar to the passport processing contract its larger rival Tata Consultancy Services (TCS) won last year. The contract is among the many large IT contracts that are up for bidding from government departments or public sector undertakings, reports suggest.

India's third largest software services exporter, Wipro fell 0.82%. Its ADR gained 4.27% on Thursday. Recently its unit Wipro Infotech won an outsourcing contract worth Rs 1,182 crore from the Employees State Insurance Corporation (ESIC).

Metal stocks gained after measure of six primary metals traded on the London Metal Exchange rose 2.6% on Thursday, the first gain in three days. Steel Authority of India, Tata Steel, Hindustan Zinc and Hindalco Industries rose by between 2.19% to 3.25%.

ATM Charges

The Chairman / Chief Executive Officer
(All Scheduled commercial banks including RRBs)

Dear Sir

Customer charges for use of ATMs for cash withdrawal and balance enquiry

1. Automated Teller Machines (ATMs) have gained prominence as a delivery channel for banking transactions in India. Banks have been deploying ATMs to increase their reach. While ATMs facilitate a variety of banking transactions for customers, their main utility has been for cash withdrawal and balance enquiry. As at the end of December 2007, the number of ATMs deployed in India was 32,342. Commensurate with the branch network, larger banks have deployed more ATMs. Most banks prefer to deploy ATMs at locations where they have a large customer base or expect considerable use. To increase the usage of ATMs as a delivery channel, banks have also entered into bilateral or multilateral arrangements with other banks to have inter-bank ATM networks.

2. It is evident that the charges levied on the customers vary from bank to bank and also vary according to the ATM network that is used for the transaction. Consequently, a customer is not aware, before hand, of the charges that will be levied for a particular ATM transaction, while using an ATM of another bank. This generally discourages the customer from using the ATMs of other banks. It is, therefore, essential to ensure greater transparency.

3. International experience indicates that in countries such as UK, Germany and France, bank customers have access to all ATMs in the country, free of charge except when cash is withdrawn from white label ATMs or from ATMs managed by non-bank entities. There is also a move, internationally, to regulate the fee structure by the regulator from the public policy angle. The ideal situation is that a customer should be able to access any ATM installed in the country free of charge through an equitable cooperative initiative by banks.

4. In view of this, RBI had placed on its website an Approach paper and sought public comments. The comments received have been analysed. Based on the feed back a framework of service charges would be implemented by all banks as under:

Sr.No.


Service


Charges

(i) For use of own ATMs for any purpose Free (with immediate effect)

(2) For use of other bank ATMs for balance enquiries Free (with immediate effect)

(3) For use of other bank ATMs for cash withdrawals

* No bank shall increase the charges prevailing as on December 23, 2007 (i.e. the date of release of Approach Paper on RBI website)
* Banks which are charging more than Rs.20 per transaction shall reduce the charges to a maximum of Rs.20 per transaction by March 31, 2008
* Free - with effect from April 1, 2009.

5. For the services at (1) and (2) above, the customer will not be levied any charge under any other head and the service will be totally free.

6. For the service number (3) the charge of Rs.20/- indicated will be all inclusive and no other charges will be levied to the customers under any other head irrespective of the amount of withdrawal.

7. The service charges for the following types of cash withdrawal transactions may be determined by the banks themselves:

(a) cash withdrawal with the use of credit cards
(b) cash withdrawal in an ATM located abroad.

8. Please acknowledge the receipt of the circular. A copy of the circular issued to your branches on this subject may please be submitted to us in due course.

Yours faithfully

(Arun Pasricha)
General Manager

SGX Nifty Live Update - March 27 2009

SGX Nifty Live Update 3,071.0 trading +7.0 points