BSE Bulk Deals to Watch - May 25 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
25/5/2009 532493 ASTRA MICRO JMP SECURITIES PVT LTD S 286193 80.05
25/5/2009 522005 AUSTIN ENGG.* BAJAJ HOLDINGS & INVESTMENTS LTD. S 23745 61.38
25/5/2009 531733 BAFNA SPINNI VINODPUKHRAJJAIN S 332000 1.86
25/5/2009 531719 BHAGIR CHE I VVSS AGRO FARMS PRIVATE LIMITED B 50000 52.96
25/5/2009 531719 BHAGIR CHE I SSVV AGRO FARMS PRIVATE LIMITED B 50500 52.90
25/5/2009 531719 BHAGIR CHE I VIJAYALAKSHMI INS AND PEST LTD S 100500 52.93
25/5/2009 512253 BIO GREEN I SHIVRAMJAGANNATHANGNE S 58912 11.52
25/5/2009 590076 CAMSON BIO GIRISHKULKARNI B 50000 39.05
25/5/2009 590076 CAMSON BIO GRAND SLAM INVESTMENT PVT LTD S 125000 39.05
25/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD B 169235 5.40
25/5/2009 531682 CAT TECHNOL NEWGEN INTERNATIONAL PRIVATE L B 300000 5.41
25/5/2009 531682 CAT TECHNOL BASMATI SECURITIES PVT LTD S 300149 5.41
25/5/2009 505923 CEEKAY DIAKI ISF SECURITIES LIMITED S 34226 27.10
25/5/2009 531337 CHAN GUIDE I VINODKUMAR DOSHI HUF S 35000 17.05
25/5/2009 526550 COUNTRY CLUB GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD GDR CONV ST S 750000 20.60
25/5/2009 531270 DAZZEL CONFI SRIDEVI.MEDABALMI B 79619 3.92
25/5/2009 531270 DAZZEL CONFI RAMAKANT TEKRIWAL(HUF) B 40000 3.98
25/5/2009 531270 DAZZEL CONFI SHREEKANT TEKRIWAL(HUF) B 30000 3.98
25/5/2009 531270 DAZZEL CONFI HASTIMALCHHAJER S 100000 3.97
25/5/2009 506401 DEEPAK NITRT PRANAWA LEAFIN PVT LTD B 105000 159.27
25/5/2009 506401 DEEPAK NITRT FOREXELAFIN PRIVATE LIMIT ED B 105000 159.01
25/5/2009 506401 DEEPAK NITRT TECHNO EQUITY BROKING PRIVATE LIMITED S 191321 159.42
25/5/2009 523329 ELDECO HOUS. CAPITAL CONSULATNCY S 11112 105.29
25/5/2009 532022 FILAT FASH VANNA TRADINGCO PVTLTD B 34080 101.14
25/5/2009 530655 GOOD LUCK ST UNITED INDIA INSUARANCE B 25000 167.15
25/5/2009 504176 HIGH ENERGY PRAKASHMOHANLALMODI S 13500 102.89
25/5/2009 522059 INDAGE VIN NEW VERNON ASSET MANAGEMENT LIMITED A/C NEW VERNON INDIA LIMITED S 82397 85.45
25/5/2009 531777 INTELLVIS SO STEP TWO CORPORATION LTD B 40000 25.94
25/5/2009 531777 INTELLVIS SO EVERSIGHT TRADECOMM P LTD S 40000 25.94
25/5/2009 532894 IWIND ENERGY YADURAJNARAHARPATKAR B 300000 32.99
25/5/2009 532894 IWIND ENERGY CITIGROUPGLOBALMARKETSMAURITIUS PRIVATELIMITED S 400000 33.02
25/5/2009 532627 JP HYDROPOW OPG SECURITIES P LTD B 2496498 61.20
25/5/2009 532627 JP HYDROPOW OPG SECURITIES P LTD S 2496498 61.28
25/5/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 56357 28.72
25/5/2009 524826 JUPITER BIOS HSBC BANK (MAURITIUS) LIMITED S 164121 72.60
25/5/2009 532081 K SERA SERA EXCEL PAINTS PRIVATE LIMITED B 1229954 11.34
25/5/2009 532081 K SERA SERA BASMATI SECURITIES PVT LTD S 359299 11.59
25/5/2009 532081 K SERA SERA EXCEL PAINTS PRIVATE LIMITED S 1229954 11.41
25/5/2009 532740 LOKESH MACH BP FINTRADE PRIVATE LIMITED B 86054 46.90
25/5/2009 532740 LOKESH MACH BP FINTRADE PRIVATE LIMITED S 59556 46.77
25/5/2009 590011 MOVING PICTU-PMS CHHOTU RAM DALAL B 47000 5.95
25/5/2009 590057 NORTHGATE TE Naman Securities & Finance Pvt. Ltd. B 203012 36.55
25/5/2009 590057 NORTHGATE TE BP FINTRADE PRIVATE LIMITED B 212678 35.43
25/5/2009 590057 NORTHGATE TE BP FINTRADE PRIVATE LIMITED S 178669 35.98
25/5/2009 590057 NORTHGATE TE INDIA CAPITAL FUND LTD S 388500 36.40
25/5/2009 526747 P G FOILS LT TIRUMALA IRONS PVT LTD S 57000 26.04
25/5/2009 530281 QUANTUM DIGI XITIJ INVESTMENTS S 15222 25.79
25/5/2009 514412 SARUP TANNER SURENDER KUMAR GOEL B 24000 41.40
25/5/2009 514412 SARUP TANNER CHEVVUSUBBAREDDY S 23698 41.31
25/5/2009 500285 SPICEJET LTD JMP SECURITIES PVT LTD B 2874238 23.51
25/5/2009 500285 SPICEJET LTD JMP SECURITIES PVT LTD S 3171102 23.40
25/5/2009 512048 SPLASH MEDIA BHANUMATIDHARAMRAJGIRI B 17875 41.30
25/5/2009 512048 SPLASH MEDIA JAIPRAKASHJUGALKISHORJAJOO S 13000 41.30
25/5/2009 526133 SUPERTEX IND SHAILESH SOMABHAI PATEL S 67960 40.21
25/5/2009 532667 SUZLONENERGY CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 24574565 87.00
25/5/2009 532667 SUZLONENERGY RAMBHABENUKABHAITANTI S 27500000 87.00
25/5/2009 532667 SUZLONENERGY TANTI GIRISHBHAI RANCHODBHAI HUF S 23500000 87.00
25/5/2009 532667 SUZLONENERGY NIDHI TULSIBHAI TANTI S 8620000 89.46
25/5/2009 532311 TUTIS TECH REDROSECAPFIN PRIVATELIMITED B 110000 25.52
25/5/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR B 31015 36.75
25/5/2009 530477 VIKRAM THERM ACTION FINANCIAL SERVICES (INDIA) LIMITED B 11604 20.66
25/5/2009 532360 VINTAGE CARD INDUSTRIAL DEVELOPMENT BANK OF INDIA S 5000 23.64
25/5/2009 531668 VISION CORPO SANJIVSATYAPALBANSAL S 106017 5.78
25/5/2009 532795 WIRE& WIRLES JMP SECURITIES PVT LTD B 2048086 23.13
25/5/2009 532795 WIRE& WIRLES JMP SECURITIES PVT LTD S 1583242 23.04

NSE Bulk Deal Watch - May 25 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
25-MAY-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,234048,895.14,-
25-MAY-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,4654920,20.64,-
25-MAY-2009,HERITGFOOD,Heritage Foods (I) Ltd.,NIRVANA HOLDINGS PRIVATE LIMITED,BUY,577543,66.00,-
25-MAY-2009,INDOWIND,Indowind Energy Limited,BP FINTRADE PRIVATE LIMITED,BUY,336739,34.20,-
25-MAY-2009,INDOWIND,Indowind Energy Limited,SHROFF SUNIL AMARLAL,BUY,360000,33.00,-
25-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9443301,22.54,-
25-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,BUY,342829,11.65,-
25-MAY-2009,LML,LML Ltd.,KSHITIJ-PORTFOLIO-PVT.-LTD.,BUY,440705,10.78,-
25-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,BUY,2623481,39.03,-
25-MAY-2009,NIITLTD,NIIT Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,918524,52.35,-
25-MAY-2009,NORTHGATE,Northgate Technologies Li,YOGESH RASIKLAL SANGHAVI,BUY,200000,33.20,-
25-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,BUY,82722,1036.66,-
25-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1365738,22.41,-
25-MAY-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,234048,895.51,-
25-MAY-2009,ALOKTEXT,Alok Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,4522008,20.63,-
25-MAY-2009,EVINIX,Evinix Accessories Limite,INNOVATE SECURITIES PVT. LTD.,SELL,796641,3.62,-
25-MAY-2009,HERITGFOOD,Heritage Foods (I) Ltd.,ARISAIG INDIA FUND LTD,SELL,672348,66.32,-
25-MAY-2009,HERITGFOOD,Heritage Foods (I) Ltd.,NIRVANA HOLDINGS PRIVATE LIMITED,SELL,2543,67.27,-
25-MAY-2009,INDOWIND,Indowind Energy Limited,ABN AMRO BANK N.V. LONDON BRANCH,SELL,646396,33.03,-
25-MAY-2009,INDOWIND,Indowind Energy Limited,BP FINTRADE PRIVATE LIMITED,SELL,351713,33.87,-
25-MAY-2009,INDOWIND,Indowind Energy Limited,SHROFF SUNIL AMARLAL,SELL,160000,33.01,-
25-MAY-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9412611,22.47,-
25-MAY-2009,KSERAPRO,K Sera Sera Productions L,BASMATI SECURITIES PVT LTD,SELL,138750,11.65,-
25-MAY-2009,LML,LML Ltd.,KSHITIJ-PORTFOLIO-PVT.-LTD.,SELL,40705,10.69,-
25-MAY-2009,LOKESHMACH,LOKESH MACHINES LIMITED,KOTESWARA RAO MULLAPUDI,SELL,61000,46.90,-
25-MAY-2009,MACMILLAN,Macmillan India Limited,DERIVE TRADING PVT LTD,SELL,124888,76.98,-
25-MAY-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,SELL,2623481,39.06,-
25-MAY-2009,NIITLTD,NIIT Limited,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,935924,52.12,-
25-MAY-2009,NORTHGATE,Northgate Technologies Li,INDIA CAPITAL FUND LTD,SELL,235000,35.03,-
25-MAY-2009,NORTHGATE,Northgate Technologies Li,YOGESH RASIKLAL SANGHAVI,SELL,150000,35.80,-
25-MAY-2009,RIIL,Reliance Indl Infra Ltd,C D INTEGRATED SERVICES LTD.,SELL,82722,1037.63,-
25-MAY-2009,ROHLTD,Royal Orchid Hotels Limit,SEQUOIA CAPITAL INDIA INVESTMENTHOLDINGS II,SELL,300000,63.80,-
25-MAY-2009,SUJANATOW,Sujana Tower Limited,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,210000,26.85,-
25-MAY-2009,VENUSREM,Venus Remedies Limited,TEMPLETON MF A/C. FI PRIMA FUND,SELL,42500,187.84,-
25-MAY-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1366737,22.40,-

Post Session Commentary - May 25 2009

Markets closed the today’s session on flat note after exhibiting volatility during the trading as investors booked profit in key stocks. Domestic indices were not able to stick on a particular direction on continuous bouts of buying and selling. However, market gained some ground during mid session following view of finance minister Pranab Mukherjee about measures to revive the economy. Meanwhile, during the trading Ranbaxy Laboratories remained in limelight on the news that Mr. Malvinder Mohan Singh has stepped down from the positions of Chairman, CEO and Managing Director of Ranbaxy with immediate effect. In addition, Mr. Sunil Godhwani, Mr. Balinder Singh Dhillon and Mr. Atul Sobti also resigned from the Directorship of the Company with immediate effect.

The market opened higher but turned volatile soon after start tracking mixed cues from the global markets. Initially, the Asian markets were mixed and the US stock markets on Friday closed lower as late selling pressure led stocks erased earlier gains. There was news from the US market that governments borrowing cost climbed to a six month high and investors sold shares before the holiday. Further, domestic benchmark indices slipped lower on selling pressure as inventors were cautious ahead of F&O expiry this week. During afternoon trade, market gathered some momentum and witnessed recovery amid choppy trade. Market lost ground once again to close on flat note after rolling between positive and negative territory. BSE Sensex ended below 14,000 level and NSE Nifty closed below 4,250 level. From the sectoral front, most of the buying was witnessed in Consumer Durable, Realty, Pharma, FMCG, Metal and PSU stocks. Mid Cap and Small Cap stocks outperformed today and ended sharply higher. However, IT and Teck stocks were unable to gain favour from the market.

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 extremely positive as 2470 stocks closed in green while 316 stocks closed in red and 30 stocks remained unchanged in BSE.

The BSE Sensex closed marginally up by 26.07 points at 13,913.22 whereas NSE Nifty ended slightly down by 0.95 points at 4,237.55. BSE Mid Caps and Small Caps closed with gains of 134.47 and 276.27 points at 4,890.15 and 5,789.43 respectively. The BSE Sensex touched intraday high of 14,028.06 and intraday low of 13,819.25.

Gainers from the BSE Sensex pack are Ranbaxy Lab (20.73%), JP Associates (7.16%), Sterlite Industries (5.94%), DLF Ltd (5.42%), ITC Ltd (3.60%), Tata Power (3.04%), Sun Pharma (2.14%), RCom (2.12%), Tata Steel (1.50%), Maruti Suzuki (1.06%) and Reliance Infra (0.97%).

Losers from the BSE Sensex pack are Bharti Airtel (5.41%), NTPC Ltd (1.66%), HDFC (1.63%), Grasim Industries (1.63%), ACC Ltd (1.06%), HDFC Bank (0.79%), SBI (0.68%), ONGC Ltd (0.59%) and Wipro Ltd (0.56%).

On the global markets front the Asian markets which opened before the Indian market, ended mostly higher as investors signed off news that North Korea had conducted a nuclear test. In Addition, Japanese electronic retailers jumped on reports of strong home appliance sales. Shanghai Composite, Hang Seng, Nikkei 225 and Straits Times index ended higher by 12.41, 59.30, 121.19 and 22.19 points at 2,610.01, 17,121.82, 9,347 and 2,267.46 respectively. However, Seoul Composite lost 2.85 points at 1,400.90.

European markets which opened after the Indian market are trading mixed. In Frankfurt the DAX index is trading down by 27.68 points at 4,891.07 whereas in London FTSE 100 is trading higher by 19.82 points at 4,362.29.

The BSE Consumer Durable index outperformed the benchmark indices as ended higher by (4.79%) or 120.05 points to close at 2,627.84. Gitanjali GE (18.78%), Videocon Ind (11.82 %), Rajesh Export (9.59%) and Titan Ind (2.67%) ended in positive territory.

The BSE Realty stocks advanced by 4.25%) or 140.65 points to close at 3,451.44. Major gainers are Parsvnath (9.96%), Ansal Infra (9.91%), Unitech Ltd (8.28%), Akruti City (4.99%) and Anant Raj (4.98%).

The BSE Pharma ended up by (2.83%) or 95.62 points at 3,472.93. Gainers are Ranbaxy Lab (20.73%), Sunpha Adv (13.77%), Glenmark Pharma (13.70%), Orchid Chem (9.25%) and Biocon Ltd (8.63%).

The BSE FMCG index gained (2.73%) or 56.78 points to close at 2,137.31. Main gainers are United Brew (19.98%), Escorts Ltd (8.14%), ITC Ltd (3.60%), Dabur India (3.56%) and Godrej Cons (3.48%).

The BSE Metal index closed with increase of (1.96%) or 190.57 points at 9,931.46 after a gauge of six metals in London advanced. Scrips that gained are Ispat Industries (12.27%), NMDC Ltd (11.70%), Welspan Gujarat (9.54%), Gujarat NRE C (7.02%) and Sterlite Industries (5.94%).

The BSE Teck index lost (0.89%) or 21.86 points to close at 2,447.28. Losers are Bharti Airtel (5.41%), IBN18 (2.36%), Aptech Ltd (1.94%), Aptech Ltd (1.83%) and UTV Software (1.61%).

Bharti Airtel ended lower by 5.41%. Bharti Airtel is now eyeing for a significant partnership with MTN Group Limited (“MTN”). Bharti and MTN have agreed to discuss the potential transaction exclusively with one another until July 31, 2009.

Reliance Infra advanced by 0.97%. The company’s board has approved to raise Rs.43,000 crore by issuing up to 43 million preferential shares to its founders and other investors. The fund raised would enable the company to participate in a bigger way in infrastructure projects.

Parsvnath Developers Ltd zoomed up 9.96% on its plan raise up to Rs 2500 crore.

Godrej Industries Ltd surged by 4.98% after the company said it has started buying back shares from the open market from today, 25 May 2009.

Back to square one almost

After registering gains for the last session, the Sensex opened higher today, but immediately plunged on the back of weak global indices. The index gained some momentum in mid morning trades, but after exhibiting some volatile moves, the index slipped into the red again on heavy selling in information technology stocks. The benchmark touched the day's low of 13819, down 68 points of its previous close. The resumption of buying in the afternoon saw the Sensex move into positive territory and the index gained some strength. But, lack of buying interest kept the market subdued and the Sensex closed the session on a flat note, 26 points up at 13913. Nifty closed the session down one point at 4238.



The market breadth was negative, with the losers outpacing the gainers in the ratio of 7.83:1. Of the 2,814 stocks that traded on the BSE, 2,469 stocks declined, 315 stocks advanced and 30 stocks ended unchanged. Most of the sectoral indices ended in the green except the BSE IT and the BSE Teck. The BSE CD gained 4.79% at 2627.84 followed by the BSE Realty (up 4.25% at 3451) and the BSE HC (up 2.83% at 3472.93.) Rest of the indices gained 0.25% to 2% each.



Among Sensex stocks, Ranbaxy Laboratories was the leading gainer and soared 20.73% at Rs266.70. JP Associates advanced 7.16% at Rs185.60. Among other stocks, Sterlite Industries jumped 5.94% at Rs538.10, DLF shot up by 5.42% at Rs334, while ITC, Tata Power, Sun Pharmaceutical Industries, Reliance Communications, Tata Steel and Maruti Suzuki India closed with marginal gains. Among laggards, Bharti Airtel tumbled 5.41% at Rs811.40, National Thermal Power Corporation shed 1.66% at Rs212.75, HDFC declined by 1.63% at Rs2087.55 and Grasim Industries lost 1.63% at Rs2109.70.


Over 12.88 crore shares of Cals Refineries changed hands on the BSE followed by Suzlon Energy (8.39 crore shares), Reliance Natural Resources (3.36 crore shares), Ispat Industries (2.70 crore shares) and Satyam Computer Services (2.50 crore shares).

Nifty May 2009 futures at premium

Turnover declines

Nifty May 2009 futures were at 4241.05, at a premium of 3.50 points as compared to the spot closing of 4237.55. Turnover in NSE's futures & options (F&O) segment was Rs 65,141.03 crore, lower than Rs 68,152.60 crore on Friday, 22 May 2009.

The near-month May 2009 futures contract will expire on Thursday, 28 May 2009.

Housing Development & Infrastructure May 2009 futures were at premium at 295.05 compared to the spot closing of 293.65.

Jaiprakash Associates May 2009 futures were at premium at 186.50 compared to the spot closing of 185.80.

Reliance Industries May 2009 futures were near spot price at 2,194.70 compared to the spot closing of 2,194.75.

In the cash market, the S&P CNX Nifty slipped 0.95 points or 0.02% at 4,237.55.

Sugar, construction shares, PSUs vault as party continues in small-caps and mid-caps

Hectic buying continued in small-cap and mid-cap shares even as consolidation was witnessed in large-cap stocks after strong gains in the past 2-1/2 months. Volatility was high with the key benchmark indices swinging between positive and negative zone throughout the day. Realty, metal and FMCG stocks rose even as IT stocks fell. The BSE 30-share Sensex gained 26.07 points or 0.19%, up close to 95 points from the day's low and off close to 115 points from the day's high.

Ranbaxy Laboratories jumped more than 20% after Daiichi Sankyo on Sunday, 24 May 2009, took complete control of the firm after all representatives of the former Indian promoter family resigned from the board. But India's top cellular services operator by sales, Bharti Airtel fell close to 6% after a firm start after the company said on Monday it was exploring a potential deal to buy a 49% stake in South African telecom firm MTN.

Volatility was high. After a firm opening, the key benchmark indices soon gave away gains in choppy trade. The market later swung between the positive and negative zone. The market pared gains after surging to the fresh intraday high in early afternoon trade. The market recovered after falling to the fresh intraday day low in mid-afternoon trade. The market moved between positive and negative zones in late trade.

Volatility may remain high this week ahead of the expiry of May 2009 futures and options (F&O) contract on Thursday, 28 May 2009.

European stocks reversed early gains and turned negative on Monday, losing ground for the third session in a row, after a key business sentiment survey in Germany came in weaker than expected. Key benchmark indices in France and Germany fell by between 0.53% to 0.72%.

A leading indicator of German business activity rebounded in May 2009, hinting that the economic slump is easing, though the gain was less than expected. The Ifo business climate index, released Monday, rose for the second straight month, to 84.2 in May 2009 from 83.7 in April 2009. The outcome fell below forecasts for a reading of 85.

In Asia, Japan's Nikkei 225 average gained 1.31% after Bank of Japan Governor Masaaki Shirakawa said the economy is likely to experience a mild recovery as exports and production improve. He, however, said the outlook on the economy remains fraught with considerable uncertainties.

Chinese stocks climbed into positive territory after slumping to a three-week low in the morning following the end of a ban on IPOs, as PetroChina, the most heavily weighted share, rose following a deal to buy a stake in Singapore Petroleum Company. The Shanghai Composite Index rose 0.48%

South Korea's Kospi index was down 0.2% after President Lee Myung Bak immediately convened an emergency security meeting following a nuclear test by North Korea. North Korea's official news agency today, 25 May 2009, said North Korea has conducted a successful underground nuclear test.

US stocks dropped on Friday, 22 May 2009, as government borrowing costs climbed to a six-month high and investors sold shares before the holiday weekend. The Dow Jones industrial average lost 14.81 points, or 0.18%, to 8,277.32. The S&P 500 Index was down 1.33 points, or 0.15%, to 887. The Nasdaq Composite Index dropped 3.24 points, or 0.19%, to 1,692.01.

Closer home, Dr Manmohan Singh was on Friday 22 May 2009 sworn-in as Prime Minister for a second consecutive term. Among others who took oath as Cabinet Ministers include Pranab Mukherjee, Sharad Pawar, A K Antony, P Chidambaram, Mamata Bannerjee, S M Krishna, Ghulam Nabi Azad, Sushil Kumar Shindae, S Jaipal Reddy, Vayalar Ravi, Meira Kumar, Ambika Soni.

Among the key portfolios, Pranab Mukherjee will head Finance Ministry, Mr P Chidambaram- Home ministry, Mr A K Antony-defence ministry and Mr S M Krishna- foreign & external affairs ministry.

A day after the swearing-in of the UPA government on Friday 22 May 2009, the Union cabinet met under the chairmanship of Prime Minister Manmohan Singh on Saturday 23 May 2009. The cabined took a decision to convene the Parliament session from 1 June to 9 June 2009. A meeting with leaders of various parties will be held in the first week of June 2009 for finalising the dates of the budget session, home minister P Chidambaram said after the cabinet meeting on Saturday. He said government is quite hopeful of passing the budget by 31 July 2009.

The first two days will be taken up by members of the 15th Lok Sabha taking oath of the rest of the cabinet ministers. The Speaker's election would be held on 3 June 2009 and President Pratibha Patil will address the joint sitting on 4 June, the day Rajya Sabha will also be convened. This will be followed by the debate on motion of thanks. Explaining the process of passing the general budget, Chidambaram said this has to be completed by 31 July 2009 failing which a vote-on-account will have to be approved.

A newspaper report quoted Mukherjee as saying that the President's address on 4 June 2009 will unveil the new agenda of the government. Mukherjee said the government is all set to take legislative measures to put the economy back on track. When a stable government is in place, credit flows and other measures needed to boost the economy become easier, Mukherjee said. The Finance Minster (FM) said he was hopeful that the economy will recover by the second half of the year ending March 2010.

On the impact of the stimulus packages, the minster said that their effect would be felt in sectors like automobiles soon. The minister said that he was not in the alarmists' column over fiscal deficit.

A comfortable victory for the Congress-led coalition government in election has raised expectations of a strong push for economic reforms by the government. Dr Manmohan Singh has reportedly prepared the broad contours of an economic revival plan to be taken up soon after the new government is formed, reports suggest. While recommendations to revive growth and ease the credit squeeze are likely to find a place in the plan, tax proposals are expected to be taken up as budget recommendations.

The telecom ministry has prioritised the much delayed auction of 3G airwaves and WiMAX spectrum. It has also prioritised introduction of a new spectrum policy.

The petroleum ministry has reportedly prepared a draft Cabinet note on a partial decontrol of petrol and diesel prices after which they will be linked to international movements.

The new government is also likely to pursue disinvestment of state-run undertakings, reports suggest.

Financial sector reforms are likely to get a push in the coming days, which were relegated to the back seat due to persistent opposition from the Left parties.

Meanwhile, after holding out for three days, DMK has finally relented on the power-sharing formula offered by Congress at the Centre, settling for seven ministerial berths, including three Cabinet and four minister of states (MoS) slots, reports suggest. The MoS slots will be filled by S S Palanimanickam, who was a minister in the previous government too, actor-turned-politician D Napoleon, educationist S Jagatratchagan and the relatively unknown MP from Namakkal, S Gandhiselvan, who is one of the three Vanniyar faces of DMK in the 15th Lok Sabha. Ms Kanimozhi, for whom a MoS post was being sought by the party, is believed to have opted out.

DMK on Thursday 21 May 2009 said it has decided not join the the Congress-led UPA government but the party will provide support the government from outside. This after the talks between DMK and Congress over ministerial berth for DMK broke down over berth sharing.

The Congress party-led coalition has the support of 322 lawmakers, Prime Minister-elect Manmohan Singh said on Wednesday, 20 May 2009, giving it a clear majority in a new government. Congress said it has support of 274 members of the 15th Lok Sabha. In addition, the Bahujan Samaj Party, the Samajwadi Party and the Rashtriya Janata Dal sent letters of support for a Manmohan Singh-led government directly to the President, taking the support base to 322. Dr Singh was renominated as Congress Parliamentary Party leader on Tuesday (19 May 2009).

The Congress-led UPA defied predictions of a tight election and was only about 11 seats short of an majority from the 543 seats at stake in the recently concluded Lok Sabha election. Congress' alliance took 261 seats, sweeping aside its nearest rival, the bloc led by the Hindu-nationalist Bharatiya Janata Party (BJP), which won only 159 combined. Congress, which alone won 205 seats, needs a handful of partners to reach the 272 seats needed to take power, and is expected to seek the support of more smaller parties or independents.

Closer home, foreign institutional investors have turned sellers after the recent aggressive buying in Indian stocks. Foreign institutional investors (FIIs) sold shares worth a net Rs 694.70 crore on Friday, 22 May 2009 FII inflow in May 2009 totaled Rs 14,242.40 crore (till 22 May 2009). FII inflow in calendar year 2009 totaled Rs 14,955 crore (till 22 May 2009).

The BSE 30-share Sensex was up 26.07 points or 0.19% to 13,913.22. The Sensex rose 140.91 points at the day's high of 14,028.06 in early afternoon trade. At the day's low of 13,819.25, the Sensex fell 67.92 points in mid-afternoon trade.

The S&P CNX Nifty was down 0.95 points or 0.02% to 4,237.55. Nifty May 2009 futures were at 4241.05, at a premium of 3.50 points as compared to the spot closing of 4237.55. Turnover in NSE's futures & options (F&O) segment was Rs 65,141.03 crore, lower than Rs 68,152.60 crore on Friday, 22 May 2009.

BSE clocked a turnover of Rs 7324 crore, higher than Rs 7130.73 crore on Friday, 22 May 2009.

The Sensex is up 4,265.91 points or 44.21% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 5,752.82 points or 70.49%.

The market breadth, indicating the overall health of the market, was strong. On BSE, 2,464 shares rose as compared with 318 that fell. A total of 30 shares remained unchanged.

The BSE Mid-Cap index was up 2.83% and the BSE Small-Cap index was up 5.01%. Both the indices outperformed the Sensex.

Small-cap and mid-cap stocks have witnessed a solid surge in the past 2-1/2 months. From a low 2,553 49 on 9 March 2009, the BSE Mid-Cap index has risen a staggering 2,336.66 or 91.5%. The BSE Small-Cap index has jumped 2,922.75 or 101.95% from a low of 2,866.68 on 9 March 2009.

Coming back to today's trade, the BSE Consumer Durables index (up 4.79%), the BSE Realty index (up 4.25%), the BSE Healthcare index (up 2.83%), the BSE FMCG index (up 2.73%), the BSE Metal index (up 1.96%), the BSE PSU index (up 1.79%), the BSE Auto index (up 1.11%), the BSE Oil & Gas index (up 0.64%), the BSE Bankex (up 0.25%), the BSE Capital Goods index (up 0.25%), outperformed the Sensex.

The BSE Power index (up 0.11%), the BSE IT index (down 0.33%), The BSE TECk index (down 0.89%), underperfomed the Sensex.

From the 30 share Sensex pack, 19 stocks rose while rest fell.

India's top mobile operator by sales, Bharti Airtel fell 5.41% after the company said a potential deal to buy 49% in South African telecom firm MTN will dilute its earnings in the first year. The company, however, expects earnings-per-share to pick up thereafter. The deal being discussed would also have the South African firm taking a 25% interest in Bharti and its shareholders taking another 11%, Bharti said in a statement. The Bharti stock was the major loser from the Sensex pack.

Bharti said the potential value of what is a complex deal in which both firms pay cash and stock for stakes in each other, was more than $23 billion. Bharti Airtel sees the deal to dilute its earnings in the first year, but expects earnings-per-share to pick up thereafter. "The broader strategic objective would be to achieve a full merger of MTN and Bharti as soon as is practicable to create a leading emerging market telecom operator, which today would have combined revenue of over $20 billion and a customer base of over 200 million," the companies said in separate statements.

Bharti said it would be the primary vehicle to expand in India and Asia, while MTN would drive growth in Africa and the Middle East.

Oil stocks were down on reports the new UPA government plans to cap profits of crude oil producers such as Oil & Natural Gas Corporation (ONGC), Oil India (OIL), Reliance Industries (RIL) and Cairn India, as part of a transparent and sustainable subsidy-sharing system for the sector. Cairn India fell 3.47%. India's largest oil exploration firm by revenue ONGC fell 0.59%.

But, India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 0.47% to Rs 2,193.35. The stock hit a high of Rs 2,214 and a low of Rs 2,155.

PSU OMCs rose. BPCL, HPCL and IOCL rose by between 3.93% to 8.72%.

The proposal to levy a special oil tax was part of the recommendations of the BK Chaturvedi Committee, appointed to look into oil pricing as a replacement for the current subsidy-sharing plan that has been criticised for its lack of transparency.

The government spent a staggering Rs 1,03,182 crore on oil subsidies in 2008-09 to keep the pump prices of motor fuel and cooking gas under control. The enormity of the burden, which is almost 2% of the country's GDP, is prodding the Manmohan Singh government to take a hard look at its hydrocarbons policy.

Metal stocks gained after a gauge of six metals in London advanced 2.7% on Friday, 22 May 2009, the most since 6 May 2009. Sterlite Industries, Hindalco Industries, Steel Authority of India, Hindustan Zinc and Tata Steel, rose by between 0.65% to 5.94%.

Realty stocks rose on expectations that stability at the Centre will attract more money from foreign investors into the sector. DLF, Unitech, Akruti City, Omaxe rose by between 4.99% to 8.28%.

Outsourcing focussed IT stocks fell after the Federal Reserve recently disclosed in its minutes from the last rate-setting meeting that it lowered its forecast for growth of the US economy this year given the weakness in the first quarter. US is the biggest market for Indian IT firms.

India's largest software services exporter by sales TCS fell 0.39%. India's third largest software services exporter by sales Wipro fell 0.56% even as its ADR rose 0.83% on Friday.

India's second largest software services exporter by sales Infosys fell 0.75% even as its ADR rose 0.22% on Friday.

Healthcare stocks rose on hopes newly elected UPA government will give primary importance to healthcare segment and health of citizens. Cipla, Biocon, Wockhardt, Lupin, Glenmark Pharmaceuticals rose by between 0.01% to 13.7%.

India's largest drugmaker by sales Ranbaxy Laboratories jumped 20.73%. In a swift and unexpected move, Japanese drug maker Daiichi Sankyo on Sunday, 24 May 2009, took complete control of Ranbaxy Laboratories in which it had acquired 63.9% stake in June 2008 after all representatives of the former Indian promoter family resigned from the board. Following a board meeting on Sunday morning, former promoter Malvinder Mohan Singh, whose term was originally supposed to run till 2013, resigned as Chairman and Managing Director.

Besides Singh, two other Singh-family Board nominees, Sunil Godhwani and Balvinder Dhillon, also resigned. Tsutomu Une from Daiichi has been appointed chairman. Atul Sobti, who was originally nominated on the board by the former Indian promoters, has been appointed as CEO and MD for three years. The stock was the major gainer from the Sensex pack.

Bank stocks fell in volatile trade after recent solid gains triggered by hopes the UPA government will pursue financial sector reforms. India's biggest bank in terms of branch network State Bank of India (SBI) fell 0.68% to Rs 1,719.85. The stock hit a high of Rs 1745 and a low of Rs 1697.10. As per reports, the Congress-led UPA government may go ahead on a plan to merge six associate banks with State Bank of India to create a Indian banking behemoth. The government may also re-introduce the State Bank of India (Amendment) Bill that will enable Centre to reduce its stake in SBI to 51% from current 59.41%.

India's second largest private sector bank by operating income HDFC Bank fell 0.79% to Rs 1,358.25. The stock hit a high of Rs 1,386.95 and a low of Rs 1,349. Its ADR rose 2.22% on Friday.

But India's largest private sector bank by net profit ICICI Bank rose 0.11% to Rs 703.55. The stock hit a high of Rs 717 and a low of Rs 696.25. Its American depository receipt (ADR) rose 5.32% on Friday, 22 May 2009.

India's biggest dedicated housing finance firm by operating income HDFC fell 1.63%. As per recent reports, HDFC is likely to cut deposit rates and follow it with a cut in lending rates.

With a decisive mandate, there are expectations that the UPA government may pursue financial sector reforms. There is likely to be some movement on passage of the Bill to amend the Insurance Act, 1938. Apart from raising the foreign investment ceiling to 49%, from 26% at present, the Bill had proposed to do away with the stipulation on Indian promoters having to mandatorily sell a part of their holdings after 10 years of operation.

There are two other Bills - for providing statutory backing to the pensions regulator and to amend the Banking Regulation Act which have been pending in Parliament for over five years, mainly due to the opposition from the Left parties. But now the Left is no longer an ally of the re-elected UPA, the Bills may finally be enacted.

The Pension Fund Regulatory & Development Authority Bill will allow the regulator to issue regulations, instead of the present system where it has to enter into agreements with service providers such as the fund managers. In addition, it will also help PFRDA regulate the pension products offered by life insurance companies. The new government may also announce tax benefits on investment in the New Pension Scheme, which will help make it attractive for investors, reports suggest

The amendments to the Banking Regulation Act will allow foreign investors to exercise voting rights in line with their shareholding. While the Reserve Bank of India has concerns on greater play for foreign banks, it will have no reservations in getting more powers for regulation of banks and supercession of borads, which are provided for in the Bill.

The government may also re-introduce the Micro-finance Development and Regulation Bill

Sugar stocks rose on hopes sugar prices may firm up on lower output. Balrampur Chini, Shree Renuka Sugars and Bajaj Hindustan, rose by between 5.76% to 8.57%.

Construction stocks rose on expectations that the Congress-led UPA government will increase infrastructure spending, including new power plants, to boost growth. Hindustan Construction Company, Nagarjuna Construction Company, IVRCL Infrastructure & Projects and Gammon Infrastructure, rose by between 4.32% to 8.46%.

Shares of state-run companies rose on hopes of recommencement of the PSU disinvestment programme after the Congress-led UPA government got a clear mandate in the Lok Sabha election. Dredging Corporation of India, HMT, Shipping Corporation of India, Power Finance Corporation, Central Bank of India rose by between 1.95% to 10%.

It may be recalled that the BJP-led National Democratic Alliance (NDA) had vigorously pursued PSU divestment. However, it was put in deep freeze in the last five years by the Congress-led United Progressive Alliance (UPA) government as the Left parties which supported the UPA government from outside, were bitterly opposed to the idea.

Auto stocks gained on hopes the new government will treat auto sector as a priority sector and attend to some pressing concerns of the sector, mainly differential excise duty, lack of retail finance and lack of focus on infrastructure. Maruti Suzuki India, Hero Honda Motors, Bajaj Auto, Mahindra & Mahindra and Tata Motors rose by between 0.07% to 2.01%.

Cals Refineries clocked the highest volume of 14.36 cror shares on BSE. Suzlon Energy (8.4 crore shares), Reliance Natural Resources (3.36 crore shares), Ispat Industries (2.7 crore shares) and Satyam Computer Services (2.5 crore shares) were the other volume toppers in that order.

Suzlon Energy clocked the highest turnover of Rs 748.04 crore on BSE. Reliance Natural Resources (Rs 278.10 crore), DLF (Rs 199.90 crore), Reliance Industries (Rs 197.49 crore) and Reliance Capital (Rs 191.57 crore) were the other turnover toppers in that order.

Pre Session Commentary - May 25 2009

Today domestic markets are likely to open negative as there are mixed cues from the other Asian markets. In the domestic arena the swearing of the cabinet of the UPA government has been over. The cues of stable government could give an incentive for the domestic traders to retain their confidence at this level. However amidst lack of support from other markets there could be volatility creeping in during the day’s trade and a subdued opening could hamper the further movement.

On Friday, the domestic markets closed in green. After a subdued opening amidst weak global cues the domestic benchmark indices started drifting towards southward. However as the European markets bounced back after yesterday’s losses, domestic sentiments started building its way towards the northward. Heavyweights like ICICI Bank and Reliance Industries took the lead to guide rest of the benchmark indices stocks. Further public sector stocks like NMDC and IFCI gained momentum on government’s disinvestment policy. Besides Oil marketing companies also inclined on the back of news of fuel free pricing policy. CG, Bankex, and HC were the gainers of the day with respective gains of 2.90%, 1.80% and 1.77%. Small cap stocks snatched the charm of the day for the second day consecutive day recording a phenomenal gain of 3.19%. We expect the markets to be trading volatile.

The BSE Sensex closed high by 150.61 points at 13,887.15 and NSE Nifty ended with gain of 27.60 points at 4,238.50. BSE Mid Caps and Small Caps closed with phenomenal gains of 81.81 points and 170.63 points at 4,755.68 and 5,513.16 respectively. The BSE Sensex touched intraday high of 13,936.93 and intraday low of 13,611.30.

On Friday, the US stock markets closed in red. There was lack of any news from the corporate or macro economic data which left the traders cautious. Financial stocks were the laggard of the day as they finished the session with a loss of 1.2%. Banks were the primary laggard in the financial sector, diversified banks and regional banks closed with losses of 2.6% and 1.8% respectively. FDIC has further indicated that though the stress tests for banks are over, a further assessment is probable. The FDIC also expects a total loss of $70 billion in the deposit insurance fund over the next five years. The Automakers were under pressure as they tumbled by 2.9% on the back of news that the bond holders refused to take equity stake in General Motors. The company has further received much need support from the United Auto workers union and consequently the company is less likely to be declared bankrupt next week. US light crude oil futures for July closed higher by 0.8% at $61.63 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) declined by 14.81 points to close at 8,277.32. The NASDAQ Composite (RIXF) index fell by 3.24 points to close at 1,692.10 and the S&P 500 (SPX) closed low by 1.33 points at 887.00.

Today major stock markets in Asia are trading mixed. Hang Seng is trading low by 98.13 points at 16,964.39 followed by Shanghai Composite which is low by 31.88 points at 2,565.72. Japan''s Nikkei is up by 51.33 points at 9,277.64, Strait Times is up by 2.25 points at 2,247.52. Seoul Composite is low by 35.57 points at 1,368.18 respectively.

Indian ADRs ended up. In technology sector, Infosys ended higher by 0.22% along with Wipro by 0.83%. Further, Satyam gained 12.50% and Patni Computers advanced by 3.00%. In banking sector ICICI Bank and HDFC Bank increased by 5.32% and 2.22% respectively. In telecommunication sector Tata Communication increased by 1.54% whereas MTNL remained unchanged. Sterlite Industries increased by 1.67%.

The FIIs on Friday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 3,896.40 Crore and gross debt purchased stood at Rs 76.40 Crore, while the gross equity sold stood at Rs 3,749.50 Crore and gross debt sold stood at Rs. 409.90 Crore. Therefore, the net investment of equity and debt reported were Rs 146.90 Crore and Rs (333.50) Crore respectively.

On Friday, the partially convertible rupee ended at 47.11/12 per dollar, 0.55 percent stronger than previous close at 47.37/38. Rupee gained strength for the Sixth consecutive day as domestic banks sold dollars on fears of further drifting down due to weakness of dollar across the globe as against other currencies.

On BSE, total number of shares traded were 73.29 Crore and total turnover stood at Rs 7,130.73 Crore. On NSE, total number of shares traded was 130.96 Crore and total turnover was Rs 20,333.46 Crore.

Top traded volumes on NSE Nifty – Unitech with 55572956 shares, Suzlon Energy with 32360482 shares, DLF with 20626714, ICICI Bank with 15076899 shares followed by Idea Cellular with 12540693 shares.

On NSE Future and Options, total number of contracts traded in index futures was 813106 with a total turnover of Rs 16,751.84 Crore. Along with this total number of contracts traded in stock futures were 543166 with a total turnover of Rs 27,613.79 Crore. Total numbers of contracts for index options were 1044561 with a total turnover of Rs 22,224.77 Crore and total numbers of contracts for stock options were 29734 and notional turnover was Rs 1,562.20 Crore.

Today, Nifty would have a support at 4,176 and resistance at 4,286 and BSE Sensex has support at 13,685 and resistance at 13,990.

Market may open lower

Key benchmark indices may open lower tracking weak global cues. While, volatility may remain high ahead of the expiry of May 2009 futures and options (F&O) contract next Thursday, 28 May 2009. However, newly sworn in finance Minister Pranab Mukherjee's affirmation that his administration will take steps to fire growth might support the market.

Asian stock markets fell today after North Korea said it conducted a nuclear test, erasing an earlier rally that was fueled by gains in mining and shipping companies. Key benchmark indices in China, Hong Kong, South Korea and Taiwan fell by between 0.28% to 3%. While key benchmark indices in Japan and Singapore rose by between 0.05% to 1.14%.

The US markets finished lower on Friday 22 May 2009 after a late sell-off erased the day's gains. Stocks struggled to hold on to gains for much of the day but worries about a possible downgrade of the US credit rating left the market on rocky ground.The Dow Jones industrial average slipped 14.81 points, or 0.18%, to 8,277.32. The S&P 500 Index was down 1.33 points, or 0.15%, to 887. The Nasdaq Composite Index dropped 3.24 points, or 0.19%, to 1,692.01.

Manmohan Singh on Friday 22 May 2009 sworn-in as Prime Minister for a second consecutive term. He is only the second Prime Minister after Jawaharlal Nehru to return to power after serving a full five-year term. Among others who took oath as Cabinet Ministers include Pranab Mukherjee, Sharad Pawar, A K Antony, P Chidambaram, Mamata Bannerjee, S M Krishna, Ghulam Nabi Azad, Sushil Kumar Shindae, S Jaipal Reddy, Vayalar Ravi, Meira Kumar, Ambika Soni.

Among the key portfolios, Mr Pranab Mukherjee will head Finance Ministry, Mr P Chidambaram- Home ministry, Mr A K Antony-defence ministry and Mr S M Krishna- foreign & external affairs ministry.

A day after the swearing-in of the UPA government on Friday 22 May 2009, the Union cabinet met under the chairmanship of Prime Minister Manmohan Singh decided to convene the Parliament session from 1 June to 9 June 2009. A meeting with leaders of various parties will be held in the first week of June for finalising the dates of the budget session, home minister P Chidambaram said after the cabinet meeting on Saturday. He said government is quite hopeful of passing the budget by 31 July 2009.

The first two days will be taken up by members of the 15th Lok Sabha taking oath of the rest of the cabinet ministers. The Speaker's election would be held on 3 June 2009 and President Pratibha Patil will address the joint sitting on 4 June, the day Rajya Sabha will also be convened. This will be followed by the debate on motion of thanks. Explaining the process of passing the general budget, Chidambaram said this has to be completed by 31 July 2009 failing which a vote-on-account will have to be approved.

The new finance Minister Pranab Mukherjee suggested that the his administration was all set to take legislative measures to put the economy back on track and will take steps to fire growth.

Meanwhile, after holding out for three days, DMK has finally relented on the power-sharing formula offered by Congress at the Centre, settling for seven ministerial berths, including three Cabinet and four minister of states (MoS) slots. The MoS slots will be filled by S S Palanimanickam, who was a minister in the previous government too, actor-turned-politician D Napoleon, educationist S Jagatratchagan and the relatively unknown MP from Namakkal, S Gandhiselvan, who is one of the three Vanniyar faces of DMK in the 15th Lok Sabha. Ms Kanimozhi, for whom a MoS post was being sought by the party, is believed to have opted out.

DMK on Thursday 21 May 2009 said it has decided not join the the Congress-led UPA government but the party will provide support the government from outside. This after the talks between DMK and Congress over ministerial berth for DMK broke down over berth sharing.

Meanwhile, a comfortable victory for the Congress-led coalition government in election has raised expectations of a strong push for economic reforms by the government. Dr Manmohan Singh who will be sworn in as the Prime Minister today has reported prepared the broad contours of an economic revival plan to be taken up soon after the new government is formed, reports suggest. While recommendations to revive growth and ease the credit squeeze are likely to find a place in the plan, tax proposals are expected to be taken up as budget recommendations.

The telecom ministry has prioritised the much delayed auction of 3G airwaves and WiMAX spectrum. It has also prioritised introduction of a new spectrum policy.

The petroleum ministry has reportedly prepared a draft Cabinet note on a partial decontrol of petrol and diesel prices after which they will be linked to international movements.

The new government is also likely to pursue disinvestment of state-run undertakings, reports suggest. The disinvestment department under the finance ministry is reportedly working on expanding the list of companies in which the government could reduce its stake. Among these are Power Grid Corporation, Cochin Shipyard, and Rashtriya Ispat Nigam.

Financial sector reforms are likely to get a push in the coming days, which were relegated to the back seat due to persistent opposition from the Left parties.

The Congress party-led coalition has the support of 322 lawmakers, Prime Minister-elect Manmohan Singh said on Wednesday, 20 May 2009, giving it a clear majority in a new government. Congress said it has support of 274 members of the 15th Lok Sabha. In addition, the Bahujan Samaj Party, the Samajwadi Party and the Rashtriya Janata Dal sent letters of support for a Manmohan Singh-led government directly to the President, taking the support base to 322. Dr Singh was renominated as Congress Parliamentary Party leader on Tuesday (19 May 2009).

The Congress-led UPA defied predictions of a tight election and was only about 11 seats short of an majority from the 543 seats at stake in the recently concluded Lok Sabha election. Congress' alliance took 261 seats, sweeping aside its nearest rival, the bloc led by the Hindu-nationalist Bharatiya Janata Party (BJP), which won only 159 combined. Congress, which alone won 205 seats, needs a handful of partners to reach the 272 seats needed to take power, and is expected to seek the support of more smaller parties or independents.

SGX Nifty drops further on North Korea Nuke Tests

4,213.0 -37.0

Stock Watch - Reliance Infrastructure, Suzlon Energy

Promoters of wind turbine maker Suzlon Energy will reportedly sell 60 million shares, or 4% stake, in the company through block deals on today, 25 May 2009.

Reliance Infrastructure plans to raise Rs 4300 crore by issuing share warrants to its founders, as it gears up to bid for infrastructure contracts. Reliance Infrastructure will issue 4.29 crore warrants convertible into shares at Rs 1,000 each, a 10.8% discount to Friday's closing price, to founders' Anil Dhirubhai Ambani group. The founders' stake will rise to 48% from 38%.

The board of JSW Steel will meet on 28 May 2009, to consider raising funds through various means, including share sale to institutional buyers.

Parsvnath Developers reportedly plans to raise Rs 2500 crore via a qualified institutional placement of shares. It may also explore the option of issuing convertible and non-convertible debentures to raise a part of this fund.

The board Housing Development & Infrastructrure (HDIL) approved selling shares for up to $600 million to institutional investors. HDIL will seek shareholders approval for the share sale and a share warrants issue to founders on 17 June 2009.

Meanwhile, net profit of HDIL declined 91.26% to Rs 61.92 crore in the quarter ended March 2009 as against Rs 708.24 crore during the previous quarter ended March 2008. Sales declined 63.30% to Rs 357.86 crore in the quarter ended March 2009 as against Rs 975.08 crore during the previous quarter ended March 2008.

The new Congress-led coalition government reportedly plans to cap profits of crude oil producers such as Oil & Natural Gas Corporation, Reliance Industries and Cairn India as part of a transparent and sustainable subsidy-sharing system for the sector.

The commerce ministry has reportedly proposed a $5 billion trade finance facility, expected to roll out in the first 100 days of the new governments's rule, to augment resources for the export sector.

The new government will reportedly infuse about Rs 16000 crore fresh capital into 16 public sector banks in its first budget expected to be presented in July 2009.

North Korea conducts nuclear test

North Korea said it successfully conducted a nuclear test on Monday, a move certain to further isolate the impoverished state which argues it has no choice but to build an atomic arsenal to protect itself in a hostile world.

"(North Korea) successfully conducted one more underground nuclear test on May 25 as part of the measures to bolster up its nuclear deterrent for self-defense in every way," the North's official KCNA news agency said.

More here

Daily News Roundup - May 25 2009

Areva T&D has won an order worth Rs1.1bn from the West Bengal State Electricity Transmission Company.(BL)

Crompton Greaves eyes overseas acquisition.(BL)

Cairn India will begin commercial production of oil from the Rajasthan fields by mid-2009 for which sales talks are going on.(BL)

JSL has shelved its US$1.2bn JV project with Indonesia’s PT Antam TBK in the southeast Asian country.(TOI)

Bharti Airtel launches low-cost PC.(FE)

Welspun Power and Steel, which had signed the agreement to buy Vikram Ispat 11 months ago completes the takeover of the sponge iron business from Grasim Industries.(TOI)

Satyam has 10,000 excess staff, says Tech Mahindra.(TOI)

HDIL to raise $600m via QIPs.(FE)

Tata Group to invest Rs2k-cr in logistics parks.(FE)

Reliance Capital to offload 26% in its life insurance subsidiary.(FE)

Essar Energy plans to raise a debt of Rs4bn to fund its project to produce gas found on coal beds in its Raniganj block in West Bengal. (BS)

Parsvnath to raise up to Rs25bn through issuance of securities, including Qualified Institutional Placements. (BS)

Era Infra bagged a Rs810mn contract from the Central Public Works Department for development of flats in New Delhi. (BS)

Matrix Laboratories has assigned its right to purchase 1% equity in Astrix Laboratories to Mylan Luxembourg, another subsidiary of Mylan. (BS)

Reliance Retail to add 1mn sq. ft of space; will invest Rs5bn.(Mint)

Ranbaxy Laboratories Chairman, CEO and MD Malvinder Mohan Singh stepped down, within a year of its acquisition by Japanese giant Daiichi Sankyo.(DNA)

BHEL cancels all its overseas acquisitions plans.(Mint)

Tata Housing Development Company has partnered with Micro Housing Finance Corporation to provide easy housing finance to the lower income group for its housing initiative. (BS)

Reliance Infrastructure to raise up to Rs43bn through issuance of 42.9mn equity shares to its promoters. (BS)

I-T authorities have slapped a tax liability of Rs3-4bn on DLF for understatement of income and fund diversion by the company. (BS)

Unitech sells more than a quarter of its launched projects in the first two months of the financial year. (BS)

Aurobindo Pharma expands its partnership with Pfizer Inc for supply agreements of solid dosage and sterile products for a number of emerging markets. (BS)

IOC plans to set up 40 retail outlets and 25 Kisan Seva Kendras in Orissa in 2009-10. (BS)

ONGC approaches the Directorate General of Hydrocarbons seeking permission to retain the Ambe field block, located off the Gujarat coast. (BS)

Dabur to foray into premium skin care. (ET)

ONGC to help fix price of Cairn’s crude from Barmer oilfield. (ET)

Reliance Industries and Essar Oil may not buy crude oil that Cairn India will start pumping from Rajasthan in the next few weeks. (ET)

Jharkhand government grants a prospecting licence to Tata Steel for the Ankua iron ore mines. (ET)

Apollo Hospitals received a notice from the Mumbai Enforcement Directorate seeking explanation on the end-use of the GDR issue. (ET)

Sobha Developers to hive off non-realty businesses.(DNA)

CESC to invest Rs80bn in two 1000MW plants.(DNA)

GMR Infrastructure plans to raise US$1bn to fund the next phase of its growth.(DNA)

Foreign exchange reserves fell by US$1.7bn to US$254bn for the week ended May 15.(BL)

Government announce portfolios for six of its Council of Ministers; Pranab Mukherjee retains finance portfolio.(BL)

RBI Governor has cautioned the new government that another fiscal stimulus package would exert pressure on the rising fiscal deficit.(BL)

DoT and the Ministry of Defence have finally signed the memorandum of understanding for vacating spectrum.(BL)

Government may extend duty-free white sugar import till Oct’ 09.(FE)

Petroleum ministry proposes a reduction in the customs duty on denatured alcohol and molasses. (BS)

Commerce Ministry has proposed a US$5bn trade finance facility to augment resources for the export sector.(BL)

Commerce ministry officials recommend removing the export ban on all agricultural commodities as surplus production keeps domestic prices under check. (BS)

Government to consider deregulating petrol and diesel prices, as also increasing rates of natural gas sold by state firms. (BS)

Finance ministry plans softening of FBT.(FE)

The outstanding credit-deposit ratio of scheduled commercial banks has dropped below 70%-the first time in almost three years.(BL)

The new UPA government plans to cap profits of crude oil producers such as ONGC, Oil India, RIL and Cairn India. (ET)

Civil aviation ministry has revived a proposal to allow foreign carriers to invest in domestic airlines by putting it on its new list of reforms. (ET)

Jitters at start!

The world has achieved brilliance without wisdom, power without conscience. Ours is a world of nuclear giants and ethical infants.

There could be some jitters at the outset, with North Korea reportedly having conducted a nuclear test. The Kospi in Seoul tumbled in the wake of the news, but has since recovered. Other Asian stock indices, barring the Nikkei are also mostly down. We expect a flat to slightly negative opening and a sideways day of trading. US markets are shut today for Memorial Day.

The fact that the euphoria was overdone leaves scope for some more softening. But, there is no need to panic, as the downside appears to be limited. Overall, the intermediate trend remains up and in the medium term too things should improve substantially. The return of the UPA with a much better numerical strength raises hope of better times ahead for the Indian economy. The fact that the stand-off between Congress and the DMK has been resolved also augers well.

Investors should look for more concrete signs of recovery. If no such signs emerge, the market could fall. But if the outlook brightens up further, a painful selloff may be avoided. Volatility might pick up ahead of Thursday's F&O expiry. Market players will also have to keep an eye on the GDP numbers that will be announced on Friday. Developments in the global markets and trend in FII flows continue to have a bearing on the market sentiment.

Key Results Today: Dishman Pharma, Jet Airways, Karnataka Bank, Omnitech InfoSolutions and REC.

US stocks slumped on Friday, ending the week little changed, as investors went into a holiday weekend with lingering concerns about the economy.

The Dow Jones Industrial Average lost 15 points, or 0.18%, to close at 8277.3. It was the Dow's fourth straight loss, but it still managed to end the week with a slight gain. The S&P 500 index slipped 0.15% to 887 but was up 0.5% for the week. The Nasdaq Composite index slid about 0.2%.

Stocks seesawed in early trading before heading higher in the afternoon as concerns about the US credit rating abated. But the market sold off near the closing bell. Analysts said that the market lacked conviction because many investors were absent ahead of the Memorial Day holiday on Monday.

Shares of financial services companies were under pressure after BankUnited FSB went bankrupt on Thursday, becoming the largest bank failure of the year.

Sears Holdings, the parent company of retailers Sears and Kmart, reported earnings that beat analysts' expectations and amended its credit facility to provide additional funding. Shares rose 11%.

Gap said that it earned 31 cents per share in the first quarter, down from 34 cents a year earlier, but slightly better than the 30-cent profit analysts had expected. Shares rose nearly 3%.

Another apparel retailer, Aeropostale reported better-than-expected first-quarter results and issued an upbeat profit forecast. The stock gained about 4%.

The US government said on Thursday that it invested $7.5bn in GMAC, the main source of financing for General Motors (GM) customers, and the main lender for Chrysler.

Treasury prices fell, raising the yield on the benchmark 10-year note to 3.46% from 3.36% on Thursday. The 10-year yield has not been this high since late December.

In currency trading, the dollar continued to fall against major international currencies. The euro rose 0.95% against the buck to $1.4022.

Oil for July delivery rose 62 cents to settle at $61.67 a barrel.

COMEX gold for June delivery rose $7.70 to settle at $958.90 an ounce.

A key home price index, durable goods orders and a revision of first-quarter GDP are all on tap for next week. Additionally, GM will be in focus. GM bondholders face a Tuesday deadline to make concessions under the troubled automaker's restructuring plans. GM could face bankruptcy if it fails to make the turnaround required by the government by the end of the month.

The market will also have to contend with lingering concerns about the credit ratings of some major economies. Last week, ratings agency Standard & Poor's (S&P) lowered its outlook for the United Kingdom (UK).

European stocks fell on Friday as Swiss investors returned from a holiday in a downbeat mood and drugmakers lost ground. The pan-European Dow Jones Stoxx 600 index declined 0.7% to 206.23, in what could be the second straight session of losses for the index.

The Swiss SMI index fell 1.9% to 5,401.59 as investors returned from the Ascension Day holiday to play catch-up with the rest of the European equity market which fell sharply on Thursday after S&P cut the UK's credit outlook.

Germany's DAX 30 index declined 0.4% to 4,881.71, while the French CAC-40 index slipped 0.3% to 3,208.03 and the UK's FTSE 100 index traded flat at 4,343.77.

Indian market ended with smart gains on Friday after declining for two straight trading sessions. Bulls’ partially recovered previous day’s losses as few hours from now Dr. Manmohan Singh will create history by becoming only the second Prime Minister of India to be sworn in for a second successive five-year term after completing the first one. Dr. Singh will be sworn in by President Pratibha Patil around 6:30 p.m. (1200 GMT) at the Rashtrapati Bhavan.

The Capital Goods, Banking and Pharma stocks were in demand. The Mid-Cap and the Small-Cap stocks continued their run; however saw offloading in some pockets.

Finally, the BSE Sensex advanced 150 points or 1.1% to close at 13,887 after touching a high of 13,937 and a low of 13,611. The index had opened at 13,663 against the previous close of 13,736. The NSE Nifty gained 22 points or 0.5% to shut shop at 4,233.

Among the BSE Sectoral indices BSE Capital Goods index was the top gainer adding 2.7%, followed by the BSE Pharma index up 2%, BSE Bankex index up 1.7%, BSE Oil & Gas index up 1.2% and BSE IT index up 1%.

On the other hand, the BSE Consumer Durable index was the top loser down 1.5% and BSE Auto index down 1%.

In the Sensex, L&T, ICICI Bank, Reliance Industries, NTPC, Sun Pharma, Infosys, SBI, HDFC and Tata Power ended in the green today. However, among the major losers were Sterlite, M&M, ONGC, Tata Motors, ACC, DLF and Hindalco.

Outside the frontline indices, the top gainers included Religare, Fortis Healthcare, Tech Mahindra, Praj Industries, SCI, Moser Baer, Mphasis, IFCI and Financial Tech.

Among the big losers in the broader market were Federal Bank, Tata Chemicals, Cummins India, Gail, Titan, Sun TV and Ultratech Cement.

North Korea Nuclear Test - SGX Nifty drops

4,230.0 -20.0

Tata Tea

We recommend a sell in Tata Tea stock from a short-term trading perspective. It is apparent from the charts of Tata Tea that it has been trending up since November 2008 low of Rs 430. However, the stock encountered significant resistance around Rs 750 recently and reversed direction. This reversal was triggered by a negative divergence displayed in the daily relative strength index (RSI). On May 19, the stock tumbled 5 per cent losing its bullish momentum. We notice formation of bearish engulfing candlestick pattern both in daily and weekly charts that indicates short-term reversal. The price rate of change (ROC) indicator has entered the negative territory, signalling selling interest. The daily and weekly RSI had entered the neutral region from the bullish zone. Our short-term outlook on this stock is bearish. We expect its decline to prolong until it hits our price target of Rs 620 in the forthcoming trading sessions. Traders with short-term trading perspective can sell the stock while maintaining a stop-loss at Rs 721.

via BL

Weekly Watch - May 25 2009

Weekly Watch - May 25 2009

US stocks end almost flat

Rally in the earlier part of the week fizzles out at the end

US stocks ended almost flat for the week that ended on Friday, 22 May, 2009. Though stocks had made a strong start during the beginning of the week, gains fizzled out in the later part of the week. The economic reports that checked in were not so exciting. But the earning reports from a couple of important home improvement retailers tried to give market a strong boost. Six of the ten sectors advanced during the week led by the materials sector. The telecom sector was the sole laggard.

The Dow Jones Industrial Average gained 8.68 points (0.1%) for the week to end at 8,277. Tech - heavy Nasdaq gained 11.87 (0.7%) to end at 1,692.14. S&P 500 gained 4.12 (0.5%) to end at 887.88.

The indices rallied on Monday, 18 May, after Bank of America rallied after being added to Goldman Sachs' Conviction Buy List. The Indian stock market also acted as a good booster after India's BSE Sensex struck the upper circuit twice on that day following an unexpected thumping victory by the Congress led UPA and its alliances.

Among earning news for the week, home improvement retailer, Lowe's announced better-than-expected earnings and upbeat forecast. Lowe's report much less than expected drop in first quarter profit. This also boosted market sentiments on Monday.

But grim economic data did not allow the rally to continue for long. The housing report showed that housing starts and building permits fell to record laws. Starts fell -12.8% from March to an annualized rate of 458,000 units (consensus 520,000) while permits dropped -3.3% to an annualized rate of 494,000 (consensus 530,000).

Also, initial unemployment claims for the week ended 16 May totaled 631,000 (consensus 625,000), which was down from an upwardly revised reading of 643,000 (from 637,000) in the prior week. Continuing claims jumped by 75,000 to a record 6.662 million, which brought the four-week moving average for this series to 6.48 million from 6.35 million. The report reflected a strained U.S. labor market.

On Wednesday, 20 May, the Fed released the minutes from the April FOMC meeting, which didn't bring much in terms of surprises. The Fed lowered its real GDP projections for 2009, 2010, and 2011. The Fed specified that the committee members believe the near-term economic outlook has weakened relative to the projections made in January. However, a recovery in sales and production is still expected to begin in the second half of this year.

Finally, on Friday, 22 May, 2009, stocks ended the day with modest losses. The Dow Jones Industrial Average ended lower by 15 points at 8,277.64. The Nasdaq Composite Index, ended lower by 3 points at 1,692. S&P 500 ended lower by 1 point at 887. It was a low volume session trading in positive territory, but some late selling pressure led stocks to close with a modest loss.

Banks were the primary drag on the financial sector on Friday. Though banks have been looking to raise capital in the wake of the government's bank stress tests, an official from the FDIC indicated during the week that additional assessments on banks are probable. There were also reports that the FDIC expects losses in its deposit insurance fund to total $70 billion during the next five years.

Among other earning reports that checked in during the week, it was mainly retailers that dominated. Target, Home Depot, Sears and Gap – all beat estimates. Among non – retailers, Hewlett-Packard reported in-line earnings, while Deere beat but provided downside guidance.

Crude oil prices ended substantially higher on Friday, 22 May, 2009 after the dollar dropped to its lowest level of the year. Credit rating concerns over US increased the pressure on dollar after Standard & Poor's Ratings Service warned Britain that it may lose its triple-A rating. Prices also rose as energy department's weekly inventory report showed earlier during the week that there was more than expected drop in crude inventories for last week. On Friday, crude-oil futures for light sweet crude for June delivery closed at $61.67/barrel (higher by $0.62 or 1%) on the For the week, crude ended higher by 8.2%.

In the currency market on Friday, the U.S. dollar index, fell 0.9%. The greenback fell to the lowest level this year against the euro as worries increased that the U.S. could lose its triple-A credit rating.

The U.S. stock and bond markets are closed on Monday, 25 May, in observance of Memorial Day.

Bullion metals add more glaze

Prices rise as dollar drops further on credit rating concerns

Precious metals ended higher on Friday, 22 May, 2009 at Comex. The subdued dollar increased the appeal of precious metals as a safe haven for alternative investment thereby taking them higher. The dollar fell further on US's credit rating worries.

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.

On Friday, Comex Gold for June delivery gained $7.7 (0.8%) to close at $958.9 an ounce on the New York Mercantile Exchange. Earlier during the day, it rose to a high of $963.1. For the week, gold ended higher by 3%. Year to date, gold prices are higher by 10.3%.

For the month of April, gold had lost 3.7%, the second consecutive monthly drop. For the month of March, gold fell 2.1%, down for the first month in five. But the metal gained 4.3% in the first quarter. Before March, for the month of February, gold ended higher by 7.4%. For January, 2009, gold had gained 3.9%.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (8%) since then.

On Friday, Comex silver futures for July delivery gained 25 cents (1.7%) at $14.695 an ounce. Year to date, silver has climbed 29% this year. For 2008, silver had lost 24%.

In the currency market on Friday, the U.S. dollar index, fell 0.9%. The greenback fell to the lowest level this year against the euro as worries increased that the U.S. could lose its triple-A credit rating.

Earlier during the week, the World Gold Council reported that gold investment demand in the first quarter more than tripled from a year ago to a record level as investors piled into gold exchange-traded funds to hedge against the global economic downturn.

The report detailed that investment demand totaled 595.9 metric tons in the first three months of the year, up from 171.3 metric tons a year ago. Total gold demand, however, marked a more modest increase, as jewelry and industrial consumption declined. Overall, gold consumption hit 1,015.5 metric tons in the first quarter, up 38% from a year ago.

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

Crude continues to go up

Prices end week more than 8% higher

Crude oil prices ended substantially higher on Friday, 22 May, 2009 after the dollar dropped to its lowest level of the year. Credit rating concerns over US increased the pressure on dollar after Standard & Poor's Ratings Service warned Britain that it may lose its triple-A rating. Prices also rose as energy department's weekly inventory report showed earlier during the week that there was more than expected drop in crude inventories for last week.

On Friday, crude-oil futures for light sweet crude for June delivery closed at $61.67/barrel (higher by $0.62 or 1%) on the For the week, crude ended higher by 8.2%.

Crude ended April higher by 2.9%. Previously, March trading ended up 10.9%. It rallied 11.3% in the first quarter. For the month of February, crude prices had ended higher by 1.5%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 57% since then. Year to date, in 2009, crude prices are higher by 28.6%. On a yearly basis, crude prices are lower by 51%.

In the currency market on Friday, the U.S. dollar index, fell 0.9%. The greenback fell to the lowest level this year against the euro as worries increased that the U.S. could lose its triple-A credit rating.

EIA reported on Wednesday, 20 May, that crude inventories decreased by 2.1 million barrels in the week ended 15 May, 2009. Market was expecting a decline of 1.5 million barrels. Despite the decline, crude inventories, at 368.5 million barrels, were still above the upper boundary of the average range for this time of year. Refineries, meanwhile, operated at 81.8% of their operable capacity last week, slightly higher than a week ago.

Lower refinery production pushed gasoline inventories down by 4.3 million barrels to 204 million barrels, falling below the lower limit of the average range. The EIA also reported distillate stockpiles rose by 600,000 barrels. Motor gasoline demand had averaged about 9.1 million barrels per day over the past four weeks, down by 1.2% from the same period last year. Demand for distillate fuels, which include heating oil and diesel, fell 12%, and jet fuel consumption dropped 9%.

Last week, the International Energy Agency reported that it now expects demand to fall 2.6 million barrels a day from 2008 levels. This is 200,000 barrels more than the IEA had projected a month ago. This perhaps kept further rise in crude prices from check.

Also at the Nymex on Friday, June-reformulated gasoline rose 4.11 cents, or 2.3%, to $1.8408 a barrel, and June heating oil gained slightly to $1.538 a gallon.

Natural gas for June delivery fell 8.8 cents, or 2.4%, to $3.515 per million British thermal units.

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

SGX Nifty Live Updat - May 25 2009

4,285.0 +35.0