Indiabulls Real Estate,ITC, Economy

Indiabulls Real Estate,ITC, Economy

Bank of Baroda

Bank of Baroda

BSE Bulk Deals to Watch - June 9 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
9/6/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA B 57165 26.04
9/6/2009 532114 AREALTY CLSA (MAURITIUS) LIMITED B 2000000 19.10
9/6/2009 532114 AREALTY NETEDGE.TECHNOSOFT.PRIVATE.LIMITED S 2068174 19.10
9/6/2009 512149 AVANCE TECHN JASMIN SUSILKUMAR BAJORIYA B 35000 22.00
9/6/2009 512149 AVANCE TECHN CHANDRAKANTBSHAH B 90000 23.10
9/6/2009 512149 AVANCE TECHN ROOPALJINESHSHAH S 65000 23.10
9/6/2009 500045 BELLA STE AL ANGEL INFIN PRIVATE LIMITED B 1504000 3.73
9/6/2009 509475 BOMBAY PAINT ALPESHKHIMRAJJAIN B 10700 53.39
9/6/2009 530207 BRAWN PHARMA KALPANAAGRAWAL S 21850 19.77
9/6/2009 500136 ESTER INDUST AJAY GUPTA S 222536 23.82
9/6/2009 500184 HIMAD CHEM I CITIGROUP VENTURE CAPITAL INTERNATIONAL GROWTH PARTNERSHIP MAURIT S 256061 210.00
9/6/2009 532800 IBN18 TREE LINE ASIA MASTER FUND (SINGAPORE) PTE LTD B 3000000 125.00
9/6/2009 532800 IBN18 IBN EIGHTEEN TRUST S 5000000 125.02
9/6/2009 511682 IFL PRMOTER SNEHALATHA SINGHI B 23052 7.30
9/6/2009 522059 INDAGE VIN JMP SECURITIES PVT LTD B 183552 114.57
9/6/2009 522059 INDAGE VIN JMP SECURITIES PVT LTD S 188394 116.09
9/6/2009 524164 IOL CHEM PH CHAMUNDA TRADERS PRIVATE LIMITED S 200000 61.71
9/6/2009 532627 JP HYDROPOW OPG SECURITIES P LTD B 2579480 92.38
9/6/2009 532627 JP HYDROPOW OPG SECURITIES P LTD S 2579480 92.45
9/6/2009 504076 JYOTI LIMITE LARSEN & TOUBRO LIMITED S 84988 51.66
9/6/2009 531687 KARUTURI GLO KOTAK MAHINDRA (UK) LTD A/C SANDSTONE CAPITAL INDIA MASTER FUND L B 7500000 15.10
9/6/2009 531687 KARUTURI GLO MAVI INVESTMENT FUND S 5000000 15.10
9/6/2009 500256 LOK HOUSI CO ANGEL INFIN PRIVATE LIMITED B 225052 40.23
9/6/2009 505523 MAH IND LEAS GLOBAL FILM & BORD CASTING LTD S 19950 10.01
9/6/2009 531272 NIKKI GLOB F NEHARIKAGUPTA B 18905 13.18
9/6/2009 511523 NIYAT INDUST NIRENGANGJIGALA B 284865 1.12
9/6/2009 590057 NORTHGATE TE JMP SECURITIES PVT LTD B 211684 51.60
9/6/2009 590057 NORTHGATE TE JMP SECURITIES PVT LTD S 218684 51.57
9/6/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD B 101259 1095.29
9/6/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC OPG SECURITIES P LTD S 101259 1097.22
9/6/2009 526753 ROSELABS LTD PAWANKUMAR AGARWAL S 86107 11.60
9/6/2009 531901 SAARC NET GOVIND SHARDA S 1000000 1.74
9/6/2009 531898 SANGUINE MD KUMKUM STOCK BROKER PVT LTD B 115000 4.40
9/6/2009 531898 SANGUINE MD SETU SECURITIES PVT LTD B 674556 4.50
9/6/2009 531898 SANGUINE MD ARCHITAJIGNESHSHAH B 80000 4.52
9/6/2009 531898 SANGUINE MD DHANANJAY COMMUNICATION PVT LTD. B 72686 4.35
9/6/2009 531898 SANGUINE MD DEE CUBES DIAMONDS PVT LTD B 100000 4.49
9/6/2009 531898 SANGUINE MD SHRADDHA SURESH LAKHANI B 100000 4.35
9/6/2009 531898 SANGUINE MD HITENBHUPATRAIMEHTA B 568711 4.41
9/6/2009 531898 SANGUINE MD MULTIPLIER SHARE & STOCK ADVI. B 75576 4.43
9/6/2009 531898 SANGUINE MD KUMKUM STOCK BROKER PVT LTD S 100000 4.35
9/6/2009 531898 SANGUINE MD SETU SECURITIES PVT LTD S 533506 4.36
9/6/2009 531898 SANGUINE MD FORSEE FINANCIAL AND CONSULTANCY SERVICES PVT LTD S 500000 4.35
9/6/2009 531898 SANGUINE MD DHANANJAY COMMUNICATION PVT LTD. S 72686 4.60
9/6/2009 531898 SANGUINE MD DHIRAJLAL V SANGHVI HUF S 284600 4.35
9/6/2009 531898 SANGUINE MD PRABHUDAS LILLADHER P LTD. S 130542 4.66
9/6/2009 531898 SANGUINE MD HITENBHUPATRAIMEHTA S 489211 4.55
9/6/2009 531898 SANGUINE MD BCB FINANCE PRIVATE LIMITED S 200965 4.35
9/6/2009 530867 SURYAN FIN L MANISHA SANJAY AGARWAL B 390000 10.00
9/6/2009 530867 SURYAN FIN L NANDLALJAIGOPALAGRAWAL S 390000 10.00
9/6/2009 500470 TATA STL TATA SONS LTD B 7000000 416.55
9/6/2009 500470 TATA STL TATA SONS LIMITED B 4000000 413.00
9/6/2009 500470 TATA STL TATA MOTORS LTD. S 7000000 416.55
9/6/2009 500470 TATA STL TATA MOTORS LIMITED S 4000000 413.00
9/6/2009 531874 VENUS VENT VIJAY VELJIBHAI PADHARIA B 49000 50.78
9/6/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR B 49156 52.08
9/6/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR S 35146 51.30

Post Session Commentary - June 9 2009

The domestic stock market rallied during the trading session to close with strong gains backed by the comments from Prime Minister Manmohan Singh that India can achieve a growth of 8% to 9% with a high savings rate. He also said that India will achieve an economic growth of at least 7% this fiscal and on the top of this promised more resources towards infrastructure and public services. This boosted the sentiments of the investors that led to heavy buying across the sectoral indices. According to Prime Minister, the fiscal deficit had risen sharply but even then India had enough resources to spend on flagship programmes thanks to the average annual growth of 8.6% achieved during the past five years. Moreover, he also said that his government was deeply committed to the agenda listed in the President''s address, adding flagship programmes will be further strengthened and public delivery system made more transparent.

Though the domestic key benchmark indices opened the session with a negative note and made a smart turnaround to recover from the initial fall and kept on marching forward till the final closing of the session. The BSE Sensex cross the psychological 15,000 mark while NSE Nifty crossed the 4,500 mark. Moreover in the global arena, the US Markets on Monday closed flat. Due to lack of any specific news, the markets pared off it previous week’s gains however due to late squeeze mainly the financials, the major indices closed flat. The financial stocks were in the limelight ahead of the Fed''s official announcement regarding which companies will be allowed to repay TARP funds. As per the recent data the Fed has allowed 10 banks to raise capital. In the domestic front, the investors on-loaded position across almost all the sectors led by Realty, IT, Metal, Consumer Durables and Capital Goods index.

Among the Sensex pack 28 stocks ended in positive territory while 2 closed in negative. The market breadth indicating the overall health of the market remained strong as 1494 stocks closed in green while 1,290 stocks closed in red while 42 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 461.08 points or 3.14% at 15,127 and NSE Nifty closed up by 121.05 points or 2.73% at 4,550.95. The BSE Mid Caps and Small Caps closed with gains of 160.87 and 101.73 points at 5,275.72 and 6,185.61. The BSE Sensex touched intraday high of 15,161.22 and intraday low of 14,526.69.

Gainers from the BSE Sensex pack are DLF (10.07%) followed by JP Associates (8.18%), Reliance Communication (7.37%), L&T (6.39%), Ranbaxy Labs (6.37%), M&M (6.34%), TCS (5.95%) and Tata Power (5.55%).

Losers from the BSE Sensex pack are Grasim Industries (0.64%) and NTPC (0.61%).

On the global markets front the Asian markets which opened before the Indian market, closed mixed. Jakarta Composite, Shanghai Composite and Strait Times closed up by 1.78%, 0.71% and 0.69% at 2,093.29, 2,787.88 and 2,349.87 respectively. While Taiwan Hang Seng and Nikkei closed lower by 3.22%, 1.07% and 0.80% at 6,414.39, 18,058.49 and 9,786.82.

European markets which opened after the Indian market are trading in negative. In Frankfurt the DAX index is trading lower by 0.36% at 4,986.82 and in London FTSE 100 is trading down by 0.25% at 4,394.16.

The BSE Realty index surged (6.25%) or 225.40 points to close at 3,830.32. Main gainers are DLF (10.07%), Mahindra Life (9.96%), Omaxe Ltd. (9.06%), HDIL (5.62%) and Unitech (5.10%).

The BSE IT index increased (4.79%) or 153.45 points at 3,357.18. Scrips that mostly gained are Tech Mahindra (25.46%), Patni Computer (16.29%), HCL Technologies (12.71%), Rolta Ind (12.09%) and Oracle Fin (10.25%).

The BSE Metal index ended higher by (4.28%) or 467.82 points at 11,401.40. Sesa Goa (14.81%), Ispat Industries (10.53%), Welspun Gujarat Stahl (9.15%), JSW Steel (9.10%) and Tata Steel (5.28%) ended in positive territory.

The BSE Consumer Durables index grew (4.18%) or 121.09 points to close at 3,018.42. Gainers are Titan Industries (5.54%), Rajesh Export (5.04%), Gitanjali Gems (4.72%) and Videocon Industries (3.92%).

The BSE Capital Goods surged (4.04%) or 505.41 points at 13,016.84. Gainers are Reliance Industrial Infra (11.73%), AIA Engineering (6.82%), Punj Lloyd (6.80%), L&T (6.39%) and Praj Industries (5.72%).

The BSE FMCG index increased (2.87%) or 62.08 points to close at 2,224.93. Gainers are Tata Tea (5.53%), Colgate Palmolive (4.80%), Marico Ltd. (4.38%), ITC Ltd. (3.62%), Nestle Ltd. (2.30%) and HUL (2.03%).

The BSE Oil and Gas improved (2.61%) or 262.46 points at 10,326.01. Gainers are Essar Oil (4.86%), RNRL (3.83%), Reliance Industries (3.79%), RPL (2.75%) and ONGC (1.50%).

Satyam Computer Services on Tuesday reported a standalone net profit of Rs 52 crore for the month ended February 2009 as against a net profit of Rs four crore in January this year, Satyam said in a regulatory filing to the stock exchanges. Moreover, the total income in February stood at Rs 637 crore as against Rs 647 crore in January. The company during October-December quarter posted a net profit of Rs 181 crore. The total income during the quarter ended December last year stood at Rs 2,206 crore.
Moreover, the company has lost around 9,447 employees from January 2008 to February 2009. Nearly 1,600 people quit the firm in February 2009.

Sharp bounce back

The market heaved a big sigh of relief after battering of the last session, as a sharp turn-around in noon trades helped the Sensex gain nearly 500 points and close on a firm note above 15000-mark. The bounce-back came after a steep fall of over 500 points in the market since the downslide began in the last session. Although the Sensex opened on a weak note at 14619, around 47 points below its last close of 14666, the index quickly recovered from its lows and remained upbeat all through the session on sustained buying support. The change of guard to firm bullish sentiment came in noon trades, as strong buying in realty, information technology, consumer durable, metal and capital goods stocks spurred the index to an intra-day high of 15161. The Sensex finally ended the session 461 points higher at 15127 whereas Nifty soared 121 points at 4551.

The market breadth was positive. Of the 2,826 stocks traded on the BSE 1,494 stocks advanced, 1290 stocks declined and 42 stocks ended unchanged. All the sectoral indices were back in action and moved up sharply. BSE Realty was the major gainer and rose 6.25%. BSE IT jumped 4.79%, BSE Metal added 4.28%, BSE CD gained 4.18% and BSE CG was up 4.04%.

Several index heavyweights notched up significant gains. Among major gainers, DLF flared up 10.07% at Rs402.70, JP Associates zoomed 8.18% at Rs224.20, Reliance Communications shot up by 7.37% at Rs332.25, Larsen & Toubro flared up 6.39% at Rs1,573.80, Ranbaxy Laboratories vaulted 6.37% at Rs283.15, Mahindra & Mahindra advanced 6.34% at Rs742.50, Tata Consultancy Services scaled up 5.95% at Rs782.05, Tata Power surged 5.55% at Rs1,140.30 and Tata Steel added 5.28% at Rs438.55. Other front-line stocks also moved up by 1-4% each. However, Grasim Industries dropped 0.64% at Rs2366.55 and National Thermal Power Corporation shed 0.61% at Rs212.95.

Over 3.39 crore shares of Unitech changed hands on the BSE followed by Ispat Industries (2.62 crore shares), Suzlon Energy (2.40 crore shares), JP Hydro (1.94 crore shares) and IFCI (1.73 crore shares).

Sensex hits 10-month on PM's optimism on economic growth

The BSE Sensex attained its highest closing since 12 August 2008 as market erased all the losses incurred on Monday (8 June 2009) on Prime Minister (PM) Manmohan Singh comments that Indian economy can achieve 8% to 9% growth with a high savings rate. Data showing surge in inflow in equity mutual funds and gains in Chinese equities further bolstered sentiment. The BSE 30-share Sensex jumped 461.08 points, or 3.14%, up close to 600 points from the day's low. The Sensex had lost 437.63 points, or 2.9% on Monday.

The Sensex regained the psychological 15,000 mark. The near 3% fall on Monday had pulled the Sensex below the 15,000 level that day. The S&P CNX Nifty moved past the 4,500 mark. Market breadth turned positive in late trade after remaining weak for the most part of the day.

The market was volatile. The Sensex dropped in volatile early trade as media reports that the government may defer a proposal to decontrol pricing of gasoline and diesel because of the increase in crude oil prices weighed on the sentiment. An opposition to divestment by regional party DMK which is a key ally of the Congress-led coalition government at the centre also weighted on the sentiment. The market bounced back shortly. The market extended gains later.

Prime Minister Manmohan Singh on Tuesday said India will achieve an economic growth of at least 7% this fiscal and promised more resources for areas like infrastructure and public services. "In last one year our economy was affected and our growth rate declined to about 7%," the Prime Minister told the Lok Sabha, replying to the motion of thanks on President Pratibha Patil's address to both houses of Parliament.

"I don't promise you we won't be affected by the international conditions, but we will be able to achieve a growth rate of 8-9%, even when the world grows at a lower rate," he said in his 45-minute address. "This year, we will be able to maintain a growth of 7%."

The Prime Minister said the reason behind his optimism was that India's savings rate, which determines the money that can be deployed for development projects, was still high at 35% of gross domestic product (GDP). "We cannot spend our way into prosperity. But there is scope to increase the allocations, particularly for infrastructure," the Prime Minister said, hoping finance minister Pranab Mukherjee will address this issue in the upcoming national budget.

Manmohan Singh also sought to allay fears that pump priming of the economy by way of stimulus packages announced earlier and measures that will follow in the ensuing months would fuel inflation. "It (expenditure towards infrastructure) will not add to inflation, but to our economic growth."

According to the Prime Minister, fiscal deficit had increased sharply but even then India had enough resources to spend on flagship programmes thanks to the average annual growth of 8.6% achieved during the past five years. He also said that his government was deeply committed to the agenda listed in the President's address, adding flagship programmes will be further strengthened and public delivery system made more transparent. "Much ground has been covered, a lot more has to be done."

The PM's speech comes amid the backdrop of concerns that the government's two key allies viz. the DMK and Trinamool Congress (TC) may oppose economic reforms. Unveiling the agenda of the government, President Pratibha Patil in her speech addressed to a joint session of both houses had last week indicated government's intension to divest stake in state-run firms. The government, however, intends to retain control over state-run firms and will continue to hold at least 51% stake.

DMK chief M Karunanidhi's daughter and Rajya Sabha MP, Kanimozhi, on Monday signaled that the government could not count on her party's support for its disinvestment plans and should avoid the temptation of selling stakes in state-run firms for generating revenue. The DMK accounts for 18 members of the Parliament and is the third-biggest constituent of the Congress-led UPA government at the Centre.

A newspaper report today said the government may defer a proposal to decontrol pricing of gasoline and diesel because of the increase in crude oil prices. Trinamool Congress (TC), a key ally in Prime Minister Manmohan Singh's government, opposes lifting controls on fuel pricing. With her eye on a series of local elections coming up in West Bengal, she told a Bengali television channel on Monday that her party would protest against any move which would result in higher fuel prices.

The petroleum minister had recently said he will submit a proposal for deregulation of oil products to the Cabinet in six to eight weeks. If government removes price controls on petrol and diesel, it would benefit PSU OMCs and also the government, which has been issuing oil bonds to share PSU OMC's burden. It would also persuade private refiners, such as Reliance Industries and Essar Oil, to reenter the oil-marketing business.

Any setback to reforms may weigh on the stock market at a time when many equity analysts have been raising earnings forecasts of India Inc on hopes that the new government will push economic reforms to boost growth.

Finance Minister Pranab Mukherjee on 26 May 2009 said that a sustained stimulus to economic growth is possible by next round of reforms. He said reviving growth momentum is a top priority for the government adding that fiscal prudence will also be kept in mind. Investor expectations from the new government are high. Investors expect financial sector reforms such as increase in the cap on foreign direct investment in insurance sector to 49%, from 26% at present.

European stocks rose amidst volatile trade on Tuesday as buoyant oil prices boosted heavyweight energy shares such as Total and BP. Key benchmark indices in France, and Germany were up by between 0.02% to 0.18%. But UK's FTSE 100 fell 0.11%.

Some Asian stocks recovered from the early slide in what has been a volatile day for most markets. China's benchmark stock index rose to a 10 month-high, reversing earlier declines, as consumer-related companies gained on optimism figures due this week will show retail sales growth accelerated in May 2009.

The Shanghai Composite Index, which tracks the bigger of China's exchanges, gained 19.55, or 0.7%, to 2,787.89 at the close after falling as much as 1.7%. It closed at its highest since 1 August 2008.

But Key benchmark indices in Hong Kong, Japan, Taiwan, South Korea were down by between 0.8% to 3.22%.

US stocks futures swung between gains and losses. Trading in the US index futures indicated Dow could slide 14 points at the opening bell today, 9 June 2009.

Most US stocks fell for a second day in a row on Monday as a drop in health-care and materials shares overshadowed a late-day rally spurred by Nobel Prize-winning economist Paul Krugman's prediction the recession will end by September 2009. Financials bounced back from an early decline. The Dow was up 1.36 points to 8,764.49. The S&P 500 index slipped 0.95 points, or 0.1%, to 939.14, and the Nasdaq Composite Index fell 7.02 points, or 0.4%, to 1,842.40.

Foreign funds made heavy purchases of Indian stocks in the past three months. FII inflow in June 2009 totaled Rs 2,893.90 crore (till 8 June 2009) after an inflow of a hefty Rs 20,606.80 crore in May 2009. FII inflow in calendar year 2009 totaled Rs 24,213.30 crore (till 8 June 2009).

Net inflows into domestic equity mutual funds rose to Rs 1,930 crore in May 2009, the highest in 14 months, and more than twice the amount in the first four months of 2009, according to data from the Association of Mutual Funds in India.

Meanwhile, members of the Securities and Exchange Board of India (Sebi) have reportedly suggested a phased reduction of the securities transaction tax as part of a package of measures to develop the capital markets.

Finance Minister Pranab Mukherjee is likely to present the Union Budget in the first week of July 2009 with focus on the common man while providing special attention to sectors hit hard by global crisis. Railway Budget for the year 2009-10 would be presented on 1 July 2009 followed by Economic Survey on 2 July 2009.

Meanwhile, ample global liquidity and a return of risk appetite will help India Inc help raise funds for expansion which in turn will boost corporate profits. India Inc has already raised almost Rs 5,000 crore from three qualified institutional placements (QIPs) so far in 2009 and announced plans to raise another Rs 20,000 crore.

Falling interest rates will also support a larger capital expenditure programme of India Inc. Lower interest rates will also help sustain strong domestic demand. Late last week, India's biggest private sector bank by net profit ICICI Bank cut prime lending rate by 50 basis points

The BSE 30-share Sensex jumped 461.08 points, or 3.14%, to 15,127, its highest closing since 12 August 2008. The Sensex rose 495.30 points at the day's high of 15,161.22 in late trade. At the day's low of 14,526.69, the Sensex fell 139.23 points in early trade.

The S&P CNX Nifty was up 121.05 points, or 2.73%, to 4,550.95. Nifty June 2009 futures were at 4456, at a premium of 5.05 points as compared to the spot closing of 4550.95. Turnover in NSE's futures & options (F&O) segment surged to Rs 69,273.85 crore from Rs 65,877.10 crore on Monday, 8 June 2009.

On the back of heavy buying by foreign funds, the Sensex has jumped 5,479.69 points or 57.88% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,966.60 points or 85.37%.

Coming back to today's trade, BSE clocked a turnover of Rs 7,975 crore higher than Rs 7,357.83 crore on Monday, 8 June 2009.

The market breadth, indicating the overall health of the market, was positive compared to the weak breadth earlier in the day. On BSE, 1,449 shares rose as compared with 1,312 that declined. A total of 42 shares remained unchanged.

The BSE Mid-Cap index was up 3.15% and outperformed the Sensex.The BSE Small-Cap index was up 1.67%. It, however, underperformed the Sensex.

The BSE Realty index (up 6.25%), the BSE IT index (up 4.79%), the BSE Metal index (up 4.28%), the BSE Consumer Durables index (up 4.18%), the BSE Capital Goods index (up 4.04%), the BSE TECk index (up 3.75%), outperformed the Sensex.

The BSE Healthcare index (up 1.8%), the BSE Power index (up 1.98%), the BSE Auto index (up 2.07%), the BSE Bankex (up 2.54%), the BSE PSU index (up 2.54%), the BSE Oil & Gas index (up 2.61%), the BSE FMCG index (up 2.87%), underperfomed the Sensex.

From the 30 share Sensex pack 28 rose while the rest fell.

Natural gas producers rose on reports the forthcoming Budget may classify mineral oil as hydrocarbons, thus extending a seven-year tax holiday given to crude oil explorers to producers of natural gas, including ONGC and Reliance Industries. India's largest state-run oil exploration firm by sales ONGC rose 1.92%.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was up 3.79% to Rs 2,271.90. Analysts expect strong growth in bottom line in coming quarters from sale of gas which it started pumping last month from its deep-sea field off the east coast.

The Bombay High Court is likely to deliver the final judgement on the legal tussle over the supply of gas from Reliance Industries (RIL) to Reliance Natural Resources (RNRL) this week when the court re-opens after summer vacations.

The basic argument in the RIL-RNRL case pertains to the pricing and quantum of gas RIL has to supply s from its Krishna Godavari basin to RNRL for RNNL's upcoming 7400 megawatt (MW) power project at Dadri in Uttar Pradesh.

PSU OMCs fell on reports rising crude oil prices may force the government to defer a proposal to decontrol petrol and diesel prices. Indian Oil Corporation, Bharat Petroleum Corporation and Hindusthan Petroleum Corporation fell by between 1.84% to 4.28%. Deregulating oil now, when crude oil prices have already crossed $67 a barrel, would result in petrol prices immediately going up by Rs 3 per litre, report suggested.

Outsourcing focussed IT stocks rose on talks worst may be over for the US economy and the US banking system. Nobel Prize-winning economist Paul Krugman on Monday said US recession will end by September 2009. US is the biggest market for Indian IT firms.

India's second largest software firm by sales Infosys Technologies rose 3.6%. The company said today it had won a new IT outsourcing contract from Telstra Corp, Australia's top phone company. The total value of the outsourcing contract is A$450 million ($355 million) over five years, Infosys said in a statement, but didn't disclose its share in the deal. EDS, a unit of Hewlett-Packard Co, and US technology major IBM are also part of the project.

India's largest software services exporter by sales TCS rose 5.95%. India's third largest software services exporter by sales Wipro rose 4.37% even as its ADR fell 1.37% on Monday.

Satyam Computer Services hit 10% upper circuit after it posted a standalone net profit of Rs 181 crore ($38 million) on revenue of Rs 2290 crore in Q3 December 2008, it said in a filing to the stock exchange.

It said it had total bank balances of Rs 373 crore as at 31 March 2009. Satyam was plunged into crisis after its founder quit in saying profits and assets had been falsified. Outsourcer Tech Mahindra won an auction in April 2009 for a controlling stake in Satyam in a deal worth about $580 million. Shares of Tech Mahindra rose 25.46%.

Realty stocks gained on expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth. Unitech, Akruti City and Omaxe rose by between 5% to 9.06%.

Indiabulls Real Estate rose 2.57% after a block deal of 10.02 lakh shares was executed on BSE at Rs 212.40 per share.

DLF the country's largest-listed real estate firm, rose 10.07% after the firm said it saw signs of recovery in the beaten down residential property sector and expected prices to start climbing.

Unitech and Indiabulls Real Estate, have already raised funds through qualified institutional placements (QIPs). A number of other realty funds have decided to raised funds by way of QIPs. The promoters of DLF last month sold a 10% stake in the secondary equity markets.

Metal stocks rose as LMEX, a gauge of six metals traded on the London Metal Exchange, rose 0.39% to 2,368.70 on Monday, 8 May 2009. Hindustan Zinc, Steel Authority of India, National Aluminum Company, Hindalco Industries rose by between 0.55% to 4.53%.

India's largest steel maker by sales Tata Steel rose 5.28% even as Moody's Investors Service downgraded the rating of both Tata Steel and its UK subsidiary Tata Steel UK (Corus) by a notch.

The corporate family rating of Tata Steel was lowered to Ba3 from Ba2, while Tata Steel UK to B2 from B1. The rating action reflects the anticipated weakening of Tata Steel's consolidated financial profile over the intermediate term, driven by the weakness in the steel markets and the significant operating challenges faced by the company's European operations

. India's second largest telecom services provider by sales Reliance Communications rose 7.37% on reports it is close to awarding a $500-$600 million operations and maintainence contract to French telecom infrastructure provider Alcatel-Lucent.

Bank stocks rose on reports the Reserve Bank of India may standardise the way banks calculate their prime lending rates (PLRs) and bar them from lending below their respective PLRs for more transparency. India's largest private sector bank by net profit ICICI Bank rose 1.56% even as its American depository receipt (ADR) fell 4.02% on Monday, 8 June 2009.

ICICI Bank cut prime lending rate by 50 basis points to 15.75% with effect from Friday, 5 June 2009. All the existing floating rate customers to benefit from the cut.

India's second largest private sector bank by operating income HDFC Bank rose 1.16% even as its ADR fell 3.1% on Monday.

India's biggest bank in terms of branch network State Bank of India (SBI) gained 4.02%. As per recent reports, SBI may cut lending rates by 25 basis points.

India's biggest dedicated housing finance firm by operating income HDFC rose 1.2%.

Cement, construction and capital goods rose on a likely focus of the government on the infrastructure sector. India Cements, Ultratech Cements, ACC, Ambuja Cements rose by between 1.89% to 6.58%.

Bharat Heavy Electricals, Larsen & Toubro, Praj Industries and Punj Lloyd rose by between 0.8% to 6.8%.

Among construction stocks, Hindustan Construction Company, IVRCL Infrastructure & Projects and Gammon Infrastructure, fell by between 6.69% to 9.15%.

Auto stocks rose on improved sales in May 2009. Tata Motors, Mahindra & Mahindra, Maruti Suzuki India and Bajaj Auto fell by between 1.92% to 8.08%.

Healthcare stocks rose on hopes the government will give primary importance to healthcare segment and health of citizens. Sun Pharmaceuticals Industries, Ranbaxy Laboratories, Biocon, Wochardt, Pfizer, Dr Reddy's Laboratories, Cipla rose by between 0.08% to 6.37%.

Shares of state-run firms despite DMK's opposition to divestment. Neyveli Lignite Corporation, MMTC, NMDC, HMT and Shipping Corporation of India, Engineers India rose by between 0.61% to 10%. The BSE PSU index rose 2.54% to 8,528.11.

Unitech clocked the highest volume of 3.39 crore shares on BSE. Ispat Industries (2.62 crore shares), Suzlon Energy (2.4 crore shares), Jaiprakash Associates (1.94 crore shares) and IFCI (1.73 crore shares) were the other volume toppers in that order.

Tata Steel clocked the highest turnover of Rs 663.93 crore on BSE. Suzlon Energy (Rs 302.90 crore), Unitech (Rs 301.02 crore), DLF (Rs 271.57 crore) and Reliance Industries (Rs 252.21 crore) were the other turnover toppers in that order.

Pre Session Commentary - June 9 2009

Today domestic markets are likely to open negative as majority of Asian markets are trading in the southward. The US markets closed flat due to lack of any specific news and in the domestic arena one could see a flat trade though there could be some bounce back. On a broader level the mid cap and small cap stocks may bounce back with higher intensity and stock specific movement could rise during the day’s trade.

On Monday, the domestic markets closed with huge losses. The opening was weak and subdued due to lack of any specific news. And as the day progressed profit booking pressured in Realty, Metal and Banking stocks pulled the benchmark towards the southward. The negative opening of the European market further added fuel to the fire of selling pressures. Heavy profit booking erupted across the broader level and traders capitalized on the peak prices. Sectors like Realty, Metal and Bankex eroded by 10.54%, 6.51%, 4.42% and 4.41% respectively. On the other hand, Mid cap and Small cap stocks were the worst hit as the indices lost 5.45% and 5.80% respectively. We expect the markets to be trading range bound.

The BSE Sensex closed with loss of 437.63 points at 14,665.92 and NSE Nifty ended low by 157 points at 4,429.90. BSE Mid Caps and Small Caps closed with losses of 294.93 points and 374.77 points at 5,114.85 and 6,083.88 respectively. The BSE Sensex touched intraday high of 15,200.82 and intraday low of 14,604.23.

On Monday, the US Markets closed flat. Due to lack of any specific news, the markets pared off it previous week’s gains however due to late squeeze mainly the financials, the major indices closed flat. The cautiousness across the broader level has happened due to stocks rallying more than 40% from their March lows amid better-than-feared data, but could not hold on the gain of Friday despite encouraging jobs report. The financial stocks were in the limelight ahead of the Fed''s official announcement regarding which companies will be allowed to repay TARP funds. As per the recent data the Fed has allowed 10 banks to raise capital. The US light crude oil for July delivery closed marginally lower at $68.428 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed flat at 8,764.49 the NASDAQ Composite (RIXF) index declined by 7.02 points to close at 1,842.40 and the S&P 500 (SPX) closed flat at 939.14.

Indian ADRs ended mostly lower. In the telecom space, MTNL was down 7.26% and Tata Communication was down 5.1%. In the banking space, ICICI Bank was down 4.02% and HDFC Bank was down 3.1%. In the IT space, Wipro was down 1.37%, Patni Computers was down 3.6% while Infosys ended up 0.5% and Satyam Computers ended up 0.37%. In other sectors, Sterlite Industries ended down 2.96%, Tata Motors was down 0.19% while Dr Reddy''s Labs was up 0.35%.

Today major stock markets in Asia are trading negative. Hang Seng is low by 342.48 points at 17,910.91. Shanghai Composite is low by 28.39 points at 2,739.95. Japan''s Nikkei is trading low by 73.05 points at 9,792.58. Strait Times is also low by 11.13 points at 2,322.57. KLSE Composite is low by 2.65 points at 1,072.85.

On Monday, the partially convertible rupee closed at 47.555/565 per dollar, 1% weaker than it previous close at 47.11/12. The rupee lost grounds due to huge correction in local stock markets.

On BSE, total number of shares traded were 66.05 Crore and total turnover stood at Rs 7,357.83 Crore. On NSE, total number of shares traded was 130.94 Crore and total turnover was Rs 21,307.08 Crore.

Top traded volumes on NSE Nifty – Unitech with 103987893 shares, Suzlon Energy with 80152063 shares, ITC with 15603937 shares, Tata Steel with 13907187 shares, followed by DLF with 12647207 shares.

On NSE Future and Options, total number of contracts traded in index futures was 725743 with a total turnover of Rs 15,691.34 Crore. Along with this total number of contracts traded in stock futures were 418551 with a total turnover of Rs 24,955.67 Crore. Total numbers of contracts for index options were 1004277 with a total turnover of Rs 23,129.45 Crore and total numbers of contracts for stock options were 34005 and notional turnover was Rs 2,100.65 Crore.

Today, Nifty would have a support at 4,479 and resistance at 4,310 and BSE Sensex has support at 14,495 and resistance at 14,825.

Market may extend losses on weak Asia

The key benchmark indices may extend Monday's (8 June 2009) losses tracking weak Asia as investors may continue to book profits after the recent strong rally in Indian stocks.

Asian stocks fell today as concern a three-month rally had overvalued earnings prospects overshadowed comments from Nobel Prize-winning economist Paul Krugman that the U.S. recession may end this year. Key benchmark indices in China, Hong Kong, Japan, Singapore, Taiwan, South Korea fell by between 0.17% to 2.64%.

The US markets ended on a flat note on Monday, 8 June 2009 after a late rally fizzled out. Financials bounced back from an early decline. The Dow was up 1.36 points, or less than 0.1%, at 8,764.49. The S&P 500 index slipped 0.95 points, or 0.1%, to 939.14, and the Nasdaq Composite Index fell 7.02 points, or 0.4%, to 1,842.40.

Closer home, foreign funds turned marginal sellers on Monday, 8 June 2009. As per the provisional figures on NSE, foreign funds sold shares worth Rs 14.47 crore while domestic funds sold shares worth Rs 875.92 crore on Monday 8 June 2009. The BSE 30-share Sensex lost 437.63 points, or 2.9%, to 14,665.92 on Monday on profit taking tracking weak global cues after the recent solid surge.

Foreign funds made heavy purchases of Indian stocks in the past three months. Their inflow totaled Rs 2,599 crore in June 2009 (till 5 June 2009) after buying hefty Rs 20,606.80 crore in May 2009. FII inflow in calendar year 2009 totaled Rs 23,918.40 crore (till 5 June 2009).

On the back of heavy buying by foreign funds, the Sensex had jumped 5456.24 points or 56.55% in calendar year 2009 to 15,103.55 on Friday, 5 June 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex was up 6,943.15 points or 85.08% on 5 June 2009.

Meanwhile, as a major boost to the capital markets, members of the Securities and Exchange Board of India (Sebi) have reportedly suggested a phased reduction of the securities transaction tax as part of a package of measures to develop the capital markets.

President Pratibha Patil addressed to a joint session of both houses on Thursday, 4 June 2009 formally disclosing the agenda of the UPA coalition government. She said that the government would aim to revive economic growth with higher investments in sectors such as infrastructure, while adhering to fiscal prudence. Patil said steps would be taken to encourage foreign investment inflows, list shares of state-run firms and infuse more capital in banks. The government's immediate priority must be to focus on management of the economy that will counter the effect of the global slowdown, she added.

Patil said the new regime will develop a roadmap for listing public sector units, co-ordinate with other countries to bring back illegal money stashed in secret bank accounts, recapitalise public sector banks, and bring in the pension reforms bill.

On the economic front, the government's immediate focus would be on sectors that are adversely hit, especially small and medium enterprises, exports, textiles, commercial vehicles, infrastructure and housing.

Meanwhile, equity analysts are raising earnings forecasts of India Inc on hopes that the new government will focus on infrastructure sector and push economic reforms to boost growth. Bulls may retail hold this month on expectations of favourable announcement for the industry in the Union Budget 2009-2010.

The government reportedly plans to list only two state-owned companies Oil India (OIL) and National Hydroelectric Power Corporation (NHPC) this financial year through initial public offerings (IPOs) even as it aims to mop up Rs 6,500 crore via disinvestments by the year-end. The government will also dilute its holding in some companies where it holds more than 90% stake, including trading firms MMTC and State Trading Corporation of India (STC), as per a detailed annual disinvestment plan to be presented with the Union Budget in early July. The Budget will also contain the new government's broad sell-off plans for its first three years.

The government has the scope to raise funds through asset sales of state-run firms, the deputy chief of the Planning Commission said on Monday. Montek Singh Ahluwalia also told a news conference that there was a need for limiting subsidies.

Finance Minister Pranab Mukherjee is likely to present the Union Budget in the first week of July 2009 with focus on the common man while providing special attention to sectors hit hard by global crisis. Railway Budget for the year 2009-10 would be presented on 1 July 2009 followed by Economic Survey on 2 July 2009.

Investors expect financial sector reforms such as increase in the cap on foreign direct investment in insurance sector to 49%, from 26% at present. Finance Minister Pranab Mukherjee on 26 May 2009 said that a sustained stimulus to economic growth is possible by next round of reforms. He said reviving growth momentum is a top priority for the government adding that fiscal prudence will also be kept in mind.

Mukherjee said the government will stick to fiscal deficit target of 5.5% of GDP in the current financial year that ends on March 2010 (FY 2010). He said the government is committed to fiscal consolidation in 2-3 years. The minister said he would be able to announce the full-budget for FY 2010 by the first week of July 2009 and try to get it approved by 31 July 2009. He said the common man will be the focus of the government policy.

Ample global liquidity will help India Inc help raise funds for expansion which in turn will boost corporate profits. India Inc has already raised almost Rs 5,000 crore from three qualified institutional placements (QIPs) so far in 2009 and announced plans to raise another Rs 20,000 crore.

Falling interest rates will also support a larger capital expenditure programme of India Inc. Lower interest rates will also help sustain strong domestic demand. Late last week, India's biggest private sector bank by net profit ICICI Bank cut prime lending rate by 50 basis points

SBI June 2009 futures at discount

Turnover declines

Nifty June 2009 futures were at 4413.50, at a discount of 16.40 points as compared to the spot closing of 4429.90. Turnover in NSE's futures & options (F&O) segment was Rs 65,877.10 crore, slightly lower than Rs 65,938.39 crore on Friday, 5 June 2009.

State Bank of India (SBI) June 2009 futures were at discount at 1667 compared to the spot closing of 1695.95.

Suzlon Energy June 2009 futures were at discount at 120.85 compared to the spot closing of 121.80.

Housing Development & Infrastructure June 2009 futures were at discount at 265.35 compared to the spot closing of 267.75.

In the cash market, the S&P CNX Nifty lost 157 points or 3.42% at 4429.90.

FIIs step up buying

Inflow of Rs 1417.40 crore on 5 June 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 1,417.40 crore on Friday, 5 June 2009, much higher than Rs 670.60 crore on Thursday, 4 June 2009.

FII inflow of Rs 1,417.40 crore on 5 June 2009 was a result of gross purchases Rs 4,550.60 crore and gross sales Rs 3,133.20 crore. The BSE Sensex rose 94.87 points, or 0.63%, to 15,103.55 on that day.

FII inflow in June 2009 totaled Rs 2,599 crore (till 5 June 2009). FII inflow in calendar year 2009 totaled Rs 23,918.40 crore (till 5 June 2009).

There are a total of 1660 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Crude ends marginally lower

Prices drop as dollar continues to remain strong

The strong dollar pushed crude prices lower on Monday, 08 June, 2009. The dollar continued to rise on Monday following encouraging report on last Friday that the intense pace of job destruction finally moderated in May, 2009 after the US economy witnessed one of the worst cases of layoffs in the past few months.

On Monday, crude-oil futures for light sweet crude for July delivery closed at $68.09/barrel (lower by $0.35 or 0.5%). Last week, crude ended higher by 3.2%.

Crude ended the month of May, 2009, higher by 30%. This was the largest month gain for crude in almost a decade. Prior to May, crude ended April and March, 2009 higher by 2.9% and 10.9% respectively. It rallied 11.3% in the first quarter. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 50% since then. Year to date, in 2009, crude prices are higher by 37%.

In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies, went up by almost 1% but at the end, it pared most of its gains. The U.S. dollar rose against most major rivals as a downgrade of Ireland's credit rating weighed on the euro and political concerns pressured the British pound.

Last week, Goldman Sachs increased its 2009 oil price forecast to $85 a barrel, up from $65 a barrel previously.

OPEC, in its latest meeting, decided to keep production quotas unchanged, in line with expectations. The cartel, which accounts for about one-third of the world's oil production, decided to leave production levels unchanged at today's meeting in Vienna on Thursday, 28 May, 2009.

Also at the Nymex on Monday, July reformulated gasoline fell 1 cent to end at $1.94 a gallon, while July heating oil finished unchanged at $1.77 a gallon.

July natural gas futures fell 13.70 cents to end at $3.731 per million British thermal units.

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

At the MCX, crude oil for June delivery closed at Rs 3,267/barrel, higher by Rs 26 (0.8%) against previous day's close. Natural gas for June delivery closed at Rs 177.7/mmbtu, lower by Rs 6.7/mmbtu (3.6%).

Infrastructure Sector

Infrastructure Sector

SGX Nifty slips, trading in the red

4,384.5 -35.5

Nervousness may continue

After witnessing a sharp slump of 437 points in yesterday's trades, the market is likely to remain shaky as global markets fell. Although Fiis have been providing cushion by remaining net buyers, the sentiment is likely to remain bearish on weak global indices. Among the key domestic indices, the Nifty may get support at 4400 and a break below this level could see the index slip further to 4460. The Sensex has a likely support at 14500 and may test higher levels at 14800.

US indices cut losses Monday, ending mixed, as investors scooped up bank and consumer shares and kept an eye on Treasury bond yields, the dollar and commodity prices. The Dow ended higher at 8764 up a points, while the tech-laden Nasdaq declined to close 7 points lower at 1837.

Indian floats had a weak outing on the US bourses. Except few all fell sharply. MTNL tumbled 7.26%, VSNL slipped 5.10% and ICICI Bank, HDFC Bank, Patni Computers, Wipro, Rediff and Tata Motors dropped over 1-4% each. While Infosys, Satyam and Dr Reddy closed in positive territory with marginal gains.

Crude oil prices in the international market edged lower, with the Nymex light crude oil for July delivery declined by 35 cents to close at $68.09 per barrel. In the commodity space, the Comex gold for August series declined $10.10 to settle at $952.50 a troy ounce.

Daily News Roundup - June 9 2009

Reliance Communications is close to awarding a US$500-600mn operations and maintenance contract to Foprench telecom infrastructure provider Alactel-Lucent. (BS)

Pfizer to buy RFCL’s animal healthcare division - Vetnex - from ICICI Venture for ~US$75mn. (ET)

Government may announce a seven year tax break to natural gas producers like ONGC and Reliance Industries. (ET)

The Foreign Investment Promotion Board (FIPB) defers United Breweries’ proposal to raise Rs7.08bn. (ET)

Areva T&D India has won four orders worth ~Rs3.5bn from Power Grid Corporation of India. (BL)

NMDC is likely to negotiate the current fiscal’s long-term contract prices for iron ore with Japanese and South Korean steel mills by July. (ET)

SBI plans to double branch network in Singapore in FY10. (ET)

PTC India plans to set up a US$1bn equity fund to finance power projects in India. (ET)

The Rajasthan government is firm on levying a 4% VAT on crude oil to be produced from Cairn India-operated RJ-ON-90/1 Block in the state. (BS)

The SC allowed TVS Motor Co to manufacture "Flame’, the 125 cc bike that has been caught in a patent dispute with Bajaj Auto since last year, but stipulated that the finished two-wheelers could not leave the company’s warehouse. (BS)

Maruti Suzuki, posted higher revenues from the US than that of the Japanese car-maker during FY09. (BS)

Promoters of Indage Vintners plan to increase their stake in the company to 35% from existing 28%. (ET)

Pantaloon Retail India plans to raise Rs10bn through issuance of securities to various investors. (ET)

Reliance Communications has bagged Rs1.3bn Wide Area Network (WAN) contract from global consultancy major Mott MacDonald. (BS)

TRF, a Tata Steel arm is targeting the merger and acquisition route in a bid to notch up a five-fold revenue growth. (ET)

Hindustan Unilever has postponed its plans to sell 49% stake in its BPO unit to Capgemini SA from March 2009 to March 2010. (ET)

FIPB has cleared the Hyatt group’s proposal to set up hotels in India with its realty firm Emaar MGF at an investment of Rs1.5bn. (FE)

Jet Airways plans to cut domestic flights by 10%. (ET)

Jindal Stainless’ proposal to set up a 1000MW (2x500Mw) power plant will require fresh approval of the State Level Single Window Clearance Authority (SLSWCA) following change of site of the project. (BS)

Central Bank of India has put non-performing assets (NPAs) with a total outstanding amount of Rs1.02bn on sale to clean up its balance sheet. (BS)

PTC India plans to buy mines in Australia and Indonesia. (FE)

Tata Communications and Qatar Telecom have signed deal for infrastructure sharing. (ET)

DCB has slashed deposit rates by up to 0.5% across different tenures with immediate effect. (ET)

Omaxe Ltd plans to raise Rs18bn. (FE)

Dish TV promoters have sold 5.8% stake in the company to raise ~Rs2.7bn. (ET)

IDBI Bank, JSW Steel, United Phosphorous, Cummins India and Educomp Solutions would be included in Nifty Midcap 50 Index w.e.f. June 26. (ET)

Lanxess India to acquire assets of Gwalior Chem for Rs5.4bn. (BL)

Vodafone Essar’s plan to hive off towers has hit a hurdle with a government agency flagging the vexed issue of using a tax haven for such deals. (ET)

Aegis Ltd sets up a subsidiary Aegis Tech Ltd to offer end-to-end software solutions. (FE)

Chinese telecom vendor Huawei may be one of the interested bidders for picking up stake in the factories owned by State-run Indian Telephone Industries Ltd. (BL)

US-based consumer credit reporting agency TransUnion to buy additional 27.51% stake in Credit Information Bureau India (CIBIL). (ET)






RBI may standardize the way banks calculate their prime lending rates (PLR) and bar them from lending below their respective PLRs. (ET)

Government is examining a demand to abolish the Securities Transaction Tax (STT) on equity transactions in the Budget. (ET)

Government has imposed a special duty on imports of compact discs-recordable (CD-Rs) from Iran, Thailand and Korea. (ET)

Nabard proposes to provide refinance of over Rs50bn to regional rural banks in 2009-10 at 4.5% p.a. (FE)

Public sector banks might look at further reduction in interest rates in order to boost credit demand. (BL)

International Air Transport Association (IATA) projects US$9bn loss in 2009 for global aviation sector. (FE)

The Opposition within!

We really don't have enemies. It's just that some of our best friends are trying to kill us.

That's the way the UPA must be feeling, notwithstanding their enhanced tally. Slowly but surely there is a feeling that reforms won’t be easy as the DMK and TMC have expressed their opposition to disinvestment and oil price rejig. The Congress is also likely to focus more on its pet social schemes. Separately, a parliamentary panel has suggested blanket ban on corporates (local or foreign) in retail trade of grocery, fruits and vegetables. It has also recommended regulation for shopping malls.

We have been saying that given the sky-high expectations post the election outcome, there is bound to be some disappointment. We would love to be proven wrong but looks like the UPA will face a rocky ride on the road to reforms.

Coming to the markets, the global cues are not healthy, though US stocks did manage a turnaround in late trade. European stocks also ended lower. Asian markets are mostly in red. We expect a cautious to lower opening and a choppy day of trading. Some pullback could happen. Most of the anticipated recovery has already been discounted; this reduces the scope for a huge further rally though the bias remains positive.

Despite the medium- to long-term having turned favourable for the bulls, fresh buying should be done carefully, especially in small- and mid-cap stocks. The key indices are likely to remain rangebound till the announcement of the Union Budget sometime early next month. We will also have first-quarter earnings to contend with and the quarterly monetary policy review. This further lends credence to the theory that the market could remain sideways after a three-month rally.

Meanwhile, in a development that could spell some trouble, yields on benchmark bonds are rising, both in India and US. This is partly due to the swelling fiscal deficit and partly owing to the growing risk appetite. This has led to concerns that higher interest rates would derail the recovery process. Another school of though sees this as among the many signs that the global economy is on the mend.

In other global news, S&P has downgraded Ireland’s sovereign ratings to AA. World Bank President Robert Zoellick has warned that protectionism could stifle economic recovery. Unemployment scene in the US is actually worse than the official data shows. According to a report, the unemployment number in the US is as high as 16%.

The IMF and World Bank said on Monday the path to global economic recovery is rife with risks and the onus is on policymakers to avoid runaway inflation and other pitfalls that could derail the process. On the other hand, Nobel Prize-winning economist Paul Krugman says that the US economy probably will emerge from the recession by September.

US stocks erased most of their losses to end mixed on Monday, as investors bought bank and consumer shares even as concerns mounted over spiraling treasury bond yields. The dollar extended Friday's rally, leading to some softening in oil and commodity prices.

The Dow Jones Industrial Average ended just above unchanged and the S&P 500 index ended just below unchanged. The Nasdaq Composite index lost 7 points or 0.4%. All three major indexes had slumped through the session, before turning higher near the close and ultimately ending mixed.

The late-session turnaround was positive, but deceptive, as the market breadth was negative. More shares fell than gained on both the Nasdaq and New York Stock Exchange. Going forward, it is going to be difficult for the major US indexes to push much higher. One of the factors that will weigh on the market is the perception that the Federal Reserve could forced to raise rates by the end of the year.

That is partly because bond yields have been rising, with the 2-year note yield now more than a full percentage point above the fed funds rate, which has been near zero since December. Meanwhile, the 10-year note is edging closer to 4%, a level not seen since October. The spike has raised worries about the recovery hitting roadblocks before it is barely begun.

US stocks were weaker through most of Monday's session as investors showed caution after a rally that has propelled the Dow off of 12-year lows hit in early March. The Dow has risen in 11 of the last 13 weeks, climbing 32.2% as of Friday's close. That's the blue-chip average's best 13-week run in 26 years.

The other major indexes have also rocketed since March 9. Since hitting a more than 12-year low, the S&P has gained 39% as of Friday's close. The Nasdaq has rallied 45.8% as of Friday's close, since bouncing off of a 6-year low.

Banks were in focus. Bank of America, Morgan Stanley and PNC Financial Services are among the companies that have already met or exceeded requirements. In addition, the government is expected to announce which banks can pay back the TARP funds. Most major bank stocks were higher, boosting the KBW Bank sector index by 1.3%.

Apple introduced a faster version of its iPhone, lowered the price on its existing phone and offered details on its revamped operating system. Apple shares ended modestly lower.

McDonald's shares dipped after the company reported May sales at stores open a year or more rose 5.1%, versus a rise of 6.9% in April.

In currency trading, the dollar gained versus the euro and fell against the yen.

US light crude oil for July delivery fell 35 cents to settle at $68.09 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery fell $10.10 to settle at $952.50 an ounce.

European shares fell on Monday. The pan-European Dow Jones Stoxx 600 index declined 0.7% to 209.25, giving back a chunk of last week's 1.2% gain. The UK's FTSE 100 index shed 0.8% to 4,405.22, while Germany's DAX 30 index fell 1.4% to 5,004.72 and the French CAC-40 index declined 1.5% to 3,289.66.

Indian markets had a weak start to the week on the back of profit booking witnessed in the interest rate sensitives, metals and consumer durable stocks. Sentiments were also dampened after cues from the Asian and the European markets were also not that encouraging.

Finally, the Sensex declined 437 points or 2.9% to end at 14,665 after touching a high of 15,201 and a low of 14,604. The index had opened at 15,153 against the previous close of 15,103.

The NSE Nifty slipped 157 points or 3% to shut shop at 4,429.

Shares of Cairn India declined by 5% to Rs245 after reports stated that tax issues may delay the company’s crude oil output from Barmer in Rajasthan. The scrip touched an intra-day high of Rs265 and a low of Rs243 and recorded volumes of over 1.9mn shares on BSE.

Shares of BPCL erased early gains and slipped by 1.7% to Rs463. Reports stated that the company is open to Oman Oil hiking its stake in Bina refinery. The scrip touched an intra-day high of Rs492 and a low of Rs451 and recorded volumes of over 0.4mn shares on BSE.

Shares of Apollo Hospitals declined 0.5% to Rs498. Reports stated that the company ha sealed a deal with International Finance Corporation for a funding of US$50mn. The scrip touched an intra-day high of Rs517 and a low of Rs494 and recorded volumes of over 16,000 shares on BSE.

Shares of Reliance Power erased early gains and declined by 3% to Rs178. According to reports twelve financial institutions sanctioned ~Rs16bn to Reliance Power to part-finance the first phase of a 600MW Group Captive Power Project (GCPP) at Butibori in Maharashtra. The scrip touched an intra-day high of Rs191 and a low of Rs175 and recorded volumes of over 5.8mn shares on BSE.

Shares of Wipro gained by 3.3% to Rs406 after reports stated that the company is looking to expand its Eco-eye programme which works for the cause of ecological sustainability.

The company plans to roll out a series of awareness programmes on rain water harvesting, how to reduce individual carbon footprint, how to make recycle paper and paper bags.

Wipro is also one of the entities short listed by Wal-Mart Stores for an outsourcing contract worth US$500mn over the coming years, stated reports.

Shares of Apollo Tyres declined by 1.5% to Rs29. Reports stated that Michelin offloaded 3.3% strake of the company for around Rs450-Rs500mn through open market. In total, Michelin continues to hold around 8% in Apollo Tyres which at last traded price is valued at Rs1.18bn.

The company had picked 14.9% of Apollo Tyres through a preferential allotment at a cost of Rs1.29bn in 2004.

The scrip touched an intra-day high of Rs31 and a low of Rs28.5 and recorded volumes of over 2.1mn shares on BSE.

Shares of Wipro gained by 3.3% to Rs406 after reports stated that the company is looking to expand its Eco-eye programme which works for the cause of ecological sustainability.

The company plans to roll out a series of awareness programmes on rain water harvesting, how to reduce individual carbon footprint, how to make recycle paper and paper bags.

Wipro is also one of the entities short listed by Wal-Mart Stores for an outsourcing contract worth US$500mn over the coming years, stated reports.

Shares of Apollo Tyres declined by 1.5% to Rs29. Reports stated that Michelin offloaded 3.3% strake of the company for around Rs450-Rs500mn through open market. In total, Michelin continues to hold around 8% in Apollo Tyres which at last traded price is valued at Rs1.18bn.

The company had picked 14.9% of Apollo Tyres through a preferential allotment at a cost of Rs1.29bn in 2004. The scrip touched an intra-day high of Rs31 and a low of Rs28.5 and recorded volumes of over 2.1mn shares on BSE.

Given the heavy selling witnessed all over on Monday, markets might further lose ground as the Nifty has key resistance at 4620-4650 levels. The rally could slow over the next few days and the market may turn sideways. Event-based action will continue in the near term.

Voltas

Voltas

SGX Nifty Live Update - June 9 2009

4,469.0 +49.0

Jaiprakash Hydro Power

We recommend a sell in the Jaiprakash Hydro Power stock from a short-term trading perspective. It is apparent from the charts of Jaiprakash Hydro that since March low of Rs 24, it has been on an intermediate-term up-trend. The up-trend accelerated, penetrating key resistance levels at Rs 60 and Rs 75 during May.

However, the stock encountered resistance around Rs 100 in early June and changed its trend. On June 8, the stock tumbled 9 per cent experiencing selling interest and formed a bearish engulfing candlestick pattern, which is a short-term bearish reversal pattern. Both daily and weekly relative strength indices began to decline after reaching the overbought territory.

The price rate of change indicator is also declining from the overbought levels. We take a contrarian view on the stock from a short-term horizon and expect it to decline further until it hits our price target of Rs 78 in the upcoming trading sessions. Traders with short-term perspective can sell the stock while maintaining a stop-loss at Rs 91.5.

via BL