Sensex, Nifty gain over 2% at close

The Sensex for the second day ended sharply higher on intense buying seen across board. Power, capital goods, consumer durables and banking sectors were also the major drivers which supported the rally.

Asian stocks rose, as commodity prices climbed and consumer prices fell in China, making it easier for the government to maintain low interest rates. Japanese benchmark index Nikkei gained 204.67 points, or 2.09%, to end at 9,991.49.Hong Kong`s Hang Seng index advanced 727.17 points, or 4.03%, to close at 18,785.66 and China`s Shanghai Composite climbed 28.36 points, or 1.02%, to settle at 2,816.25.

The benchmark index, Sensex opened with a gain of 41.18 points, at 15,168.18 on Wednesday on positive global cues and continued to trade firm. Later it gained strength in the mid-session, hitting a one year high by breaching the mark of 15,500. The markets extended its gains after the Prime Minister`s comments that economic growth could bounce back to 9% boosted sentiments and encouraging Asian markets. However, it pared some of its gains as profit booking sets in, touching a low of 15,168.18 to finally close on a strong note.

BSE Midcap and Smallcap index rose 1.59% and 0.34% respectively.

Among the sectoral indices, BSE Power and Capital goods surged over 3% each, Bankex, Metal and Consumer durables rose over 2% each, Oil & gas, Auto and IT moved up over 1% each, while Realty dipped 1.14%.

European stocks advance, led by raw material producers as metals and oil prices rallied. UK`s benchmark index FTSE 100 gained 92.78 points, or 2.11%, to trade at 4,497.89, French benchmark index CAC 40 advanced 67.70 points, or 2.05%, to trade at 3,364.43 and Germany`s benchmark index DAX climbed 121.70 points, or 2.43%, to trade at 5,119.55 (4.10 p.m., IST)

The Sensex ended the day with a gain of 339.81 points, or 2.25% at 15,466.81 after touching a high of 15,580.81 and a low of 15,168.18. The broad-based NSE Nifty gained 104.30 points, or 2.29% at 4,655.25 after hitting a high of 4,688.95 and a low of 4,551.70.

Major gainers in the 30-share index were Tata Power Company (6.43%), Reliance Infrastructure (5.99%), HDFC Bank (5.56%), Ranbaxy Laboratories (5.44%), ACC (5.40%), and Reliance Communications (5.30%).

On the other hand, Tata Motors (1.95%), DLF (1.71%), Sun Pharmaceutical Industries (0.83%), State Bank Of India(0.37%), Housing Development Finance Corporation (0.23%), and Jaiprakash Associates (0.20%) were the major losers in the Sensex.

Overall market breadth was negative. Out of the total 2,831 stocks traded at BSE, 1,218 advanced, 1,553 declined while 60 remained unchanged.

Wednesday wracks losses from Asian markets

Sensex, Seoul leads winners rally while Hang Seng, Nikkei back with strong gains

Stock market in Asian region shaded their recent woes on Wednesday, 10 June 2009, led by higher metal and oil prices, which rose on expectations of higher demand. Wall Street's resilience even amid uncertainty concerning a recovery and stronger than expected economic data from Australia as well as China lifted market sentiment. Concerns about the negative sentiment generated by weak Japanese machinery orders were more than offset by optimism about global recovery, helping the Asian stocks advance.

On Wall Street, technology stocks advanced on Tuesday, but it wasn't enough to prop up all three major averages as oil climbed to $70 barrel and investors mulled news that some banks have been cleared to repay taxpayer bailout funds. The Dow Jones Industrial Average lost 1.43, or 0.02%, to 8763.06, while the S&P 500 rose 3.29 points, or 0.4%, to 942.43. The Nasdaq Composite added 17.73 points, or 1%, to 1860.13. The Dow churned all day, crossing back and forth across the flat line 81 times.

In the commodity market, crude oil rose to a seven-month high after an industry group reported U.S. stockpiles dropped and the dollar declined, bolstering the appeal of energy as an alternative investment.

Crude climbed past $71 a barrel as the American Petroleum Institute said oil supplies fell 5.96 million barrels to 357.9 million last week, the lowest level since March. The Department of Energy will report their data later today. Support for crude prices came on expectations the dollar may extend its decline against the euro on speculation the global recession is ending.

Crude oil for July delivery rose as much as $1.17, or 1.7 percent, to $71.18 a barrel in after-hours trading on the New York Mercantile Exchange. It was at $71.15 a barrel at 2:39 p.m. Singapore time. Yesterday, the contract increased $1.92 to $70.01 a barrel, the highest settlement since 4 November 2008.

Brent crude for July delivery rose as much as $1.01, or 1.5 percent, to $70.63 a barrel on London’s ICE Futures Europe exchange, the highest since Oct. 22. It was at $70.50 at 2:46 p.m. Singapore time. The contract rose yesterday $1.74, or 2.6 percent, to end the session at $69.62 a barrel.

Gold gained for a second day as the dollar weakened and investor concern increased that inflation may accelerate, spurring demand for the precious metal as an alternative investment.

Gold for immediate delivery gained 0.5% to $959.54 an ounce at 1:48 p.m. in Singapore, after rising 0.3% yesterday. The precious metal, which some investors buy to hedge against inflation, last traded at more than $1,000 an ounce on 20 February 2009, and reached a record $1,032.70 on March 17, 2008.

In the currency market, US dollar edges lower on the back on further strength in oil price. Aussie and Kiwi were the strongest gainers, lifted additionally by Australia consumer confidence, which rose to 22 year high of 12.7% in June.

The Japanese yen strengthened against most of its major counterparts on Wednesday. The Japanese currency quoted at 97.41 against greenback.

The Hong Kong dollar was trading at HK$ 7.7513 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar advanced to multi-day highs against the greenback on Wednesday. The Aussie was quoted at 80.52 cents against the greenback.

The NZ dollar was ended at US63.10c, up from US61.86c yesterday. The currency rose above the US63c figure late in the domestic session, having gained earlier, care of a weak US dollar. The kiwi rose today as attention turned to tomorrow's interest rate decision by the Reserve Bank of New Zealand

The South Korean won ended at 1,246.7 won against the dollar, up 18.3 won from Tuesday's close, boosted by foreign investors' buying of local stocks.

The Taiwan dollar strengthened faster. The Taiwan dollar gained against the US dollar as it was trading higher at NT$ 32.7120, up by NT$ 0.1430 from Tuesday’s close of NT$32.853.

Coming back in equities, Asian markets closed broadly higher, with oil and metals stocks leading the charge as commodity prices extended their rally, supported by wagers on global economic recovery and recent weakness in the U.S. dollar.

In Japan, the stock index surged, as investors bought shares battered in the previous trading day on recovered optimism over the economy and firmer commodity and oil prices. Resource-related stocks led the market after rebound in metal and oil prices. Shares of marine transport rebounded from a four-day retreat after brokerages firm upgrade their rating. Exporters surged on improved sentiments for global economy. The Nikkei 225 Stock Average index surged 204.67 points, or 2.1%, to 9,991.49, while the broader Topix index spurted 18.77 points, or 2% to 937.

On the economic front, Japan’s Cabinet Office said Japan’s core machinery orders were down 5.4% on month in April to 688.8 billion yen for to a 22-year low, following the 1.3% decline in March and the 0.6% gain in February. On an annual basis, core machinery orders plummeted 32.8% after the 22.2 contraction in the previous month.

In a separate statement, the Bank of Japan said that the price of domestic corporate goods in Japan eased 0.4% in May compared to the previous month, falling for the third straight month to an index score of 103.0, following the revised 0.6% decline in April and the 0.2% contraction in March. On an annual basis, corporate goods prices plummeted 5.4% on year, marking the largest annual decline since March 1987.

In Mainland China, stock market surged, with gains in the shares of energy, miners, and resources on bargain hunting as the country’s May CPI and PPI data showed sign of an economic recovery and oil climbed above $71 a barrel in Asian trade and metals prices advanced in LME.

The Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, leaped 1%, or 28.36 points, to 2,816.24, meanwhile the Shenzhen Component Index added 0.75%, or 80.65 points, to 10,820.74.

On the economic front, the National Bureau of Statistics said in a report that China’s consumer prices fell 1.4% year-on-year in May, following a 1.5% fall in April. On a monthly basis, inflation eased 0.3%.

In other statement, NBS said China’s producer prices fell 7.2% on year in May, from a 6.6% drop in April. On year, the producer prices were lower by 6.9% after the 6.6% annual decline in the previous month.

The National Development and Reform Commission said in a statement that Real estate prices in 70 major Chinese cities dropped 0.6% on average in May from a year earlier.

In Hong Kong, the stock market spurted, snapped two days of losing streak on broad based bottom fishing across the sector on tracking positive lead from mainland and other Asian market and rebound in commodity prices. Shares of in financials, properties, and commerce & industry issues zoomed on improved sentiments on global economic revival. Iron & Steel and nonferrous metals and energy stocks drifted up after commodities and oil prices bounced.

The Hang Seng Index climbed up 727.17 points, or 4.03%, to 18,785.66, while the Hang Seng China Enterprise Index mounted higher by 529.23 points, or 5.04% to 11,033.55.

In Australia, the stock market spurted, with broad based gains across the sector on the back of firmer commodity prices and positive economic data. The materials, energy, and mining sectors were the best performer, thanks to very impressive gains in metal and crude oil prices. The market appeared happy with BHP Billiton’s initial metallurgical coal settlement price of 58% below 2008 prices. At the closing bell, the benchmark S&P/ASX200 index surged 89.5 points, or 2.27%, to 4,024.4, while the broader All Ordinaries spurted 82.7 points, or 2.1%, to 4,016.3.

On the economic front, The Westpac–Melbourne Institute Index of Consumer Sentiment rose 12.7% to 100.1 in June from 88.8 in May. This was second largest amount since the survey began in 1974 and the largest increase in 22 years.

In New Zealand, benchmark index edged forward to end in the positive region although it slipped in the early trading. Most of the Asian markets were trading in the positive region although there was no major lead from Wall Street. However, traders took their cue from the buoyant commodities market with oil and metal stocks leading the way after a surge in commodity prices.

The NZX50 rose 0.20% or 5.56 points to 2827.97. However, the NZX 15 edged down 0.02% or 1.196 points to close at 5170.05.

On the economic front, export prices fell 8.2 percent in the March quarter, the largest quarterly fall since 1957, registering the biggest fall in 50 years, as per the statistical department. The drop was mainly driven by a fall in dairy product prices, which were down 20.5 percent, with another main factor being a 28 percent fall in petroleum and petroleum products due to lower export prices for crude oil. Import prices fell 5.4 percent in the March 2009 quarter, with petroleum and petroleum products down 35.8 percent. The terms of trade fell 3 percent in the quarter as export prices fell more than import prices. The decline is the largest fall in the terms of trade since the June 2002 quarter.

In South Korea, stocks closed 3.14% higher on bargain hunting by institutions and foreign investors. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 43.04 points to 1,414.88.

On the economic front, South Korea's money supply, representing the South Korea’s the broadest measure of money supply, rose 9.3% year-on-year in April, slowing from a 10.6% growth in March. As per the statistics released by the Bank of Korea the money supply growth has now eased for the third consecutive month in April. Meanwhile, the M2 measure of money supply increased 10.6% annually in April compared to an 11.1% rise in the previous month.

In Singapore, the stocks index surged, on tracking positive lead from other Asian market, with investors going in for some bargain hunting after a modest setback in the previous session. Shares of multi-industries, manufacturing surged as rebound in metal and oil prices. Meanwhile construction, financials and properties ballooned on improving sentiments for global economy. The blue chip Straits Times Index added 41.35 points, or 1.76%, to 2,391.22.

In Taiwan, stock market showed some signs of respite from recent turn down, as it ended higher, rebounding from it’s a one-month closing low registered in previous session. The main Taiex share index snapped its losing streak as the Taiex index gained by 47.88 points or 0.75%, closing the day at 6462.27.

In Philippines, the stock market overturned its two days losses; closing nearly 2% higher, despite the desolate export data released by the NSO today. Bargain hunting by investors in the key heavy weight stocks dragged the composite index higher. The benchmark index PSEi escalated 1.70% or 42.46 points to 2,530.72, while the All Shares index rose 1.30% or 20.81 points to 1,619.66

On the economic front, Philippine exports fell for a seventh month in April as the global economic slump slashed electronics demand, with demand from top trading partners like the United States still sluggish. Merchandise export sales fell by 35.2% in April to $2.803 billion from $4.328 billion, year on year. That year-on-year drop was faster than the -30.8% recorded in March. Month-on-month, sales dropped 3.6% from $2.907 billion in March, whose 16% rise -- after seven consecutive months of contraction since August last year -- had encouraged some government officials to say that merchandise exports were on a rebound.

In India, firm global markets and higher US index futures helped Indian stocks register strong gains for the second straight day. Indian stocks today extended their recent strong gains on a view that 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.

The BSE 30-share Sensex was up 339.81 points, or 2.25%, to 15,466.81. The Sensex rose 453.81 points at the day's high of 15,580.81 in mid-afternoon trade, its highest level since 18 June 2008. The S&P CNX Nifty was up 104.30 points, or 2.29%, to 4,655.25.

Elsewhere, Malaysia's Kula Lumpur Composite index was up 1.04% or 11.18 points to 1082.97 while Indonesia’s Jakarta composite index ended the day higher at 2108.81.

In other regional market, European shares jumped with sharp gains from commodity-sector firms on hopes for a strong recovery for China helping stocks stage a broad-based advance. On a regional level, the U.K. FTSE 100 index rose 1.8% to 4,483.31, the German DAX 30 index rose 2% to 5,096.68 and the French CAC-40 index climbed 1.6% to 3,349.77.

Looking ahead, trade balance from UK, US and Canada will be released. Besides, UK Industrial production is expected to drop again Apr with manufacturing production expected show some rise. Canadian new housing price index is expected to drop –further in April. Fed's beige book will also be released.

Turnover surges

Nifty June 2009 futures at premium

Nifty June 2009 futures were at 4665, at a premium of 9.75 points as compared to the spot closing of 4655.25. Turnover in NSE's futures & options (F&O) segment surged to Rs 73,359.99 crore from Rs 69,273.85 crore on Tuesday, 9 June 2009.

Housing Development & Infrastructure June 2009 futures at premium at 269.35 compared to the spot closing of 267.20.

Suzlon Energy June 2009 futures were at premium at 124.20 compared to the spot closing of 123.60.

Unitech June 2009 futures were at premium at 89.50 compared to the spot closing of 88.75.

In the cash market, the S&P CNX Nifty jumped 104.30 points or 2.29% at 4655.25.

BSE Bulk Deals to Watch - June 10 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
10/6/2009 531429 ADVEN COM SE PARESHKUMARBABULALSHAH B 100000 3.65
10/6/2009 531429 ADVEN COM SE HET FINANCE PVT LTD S 100000 3.65
10/6/2009 532875 ALLIED DIGIT THE MASTER TRUST BANK OF JAPAN LTD AS TRUSTEE OF BLACKROCK INDIA B 150000 387.99
10/6/2009 532875 ALLIED DIGIT MERRIL LYNCH INDIA EQUITIES FU B 274999 388.00
10/6/2009 532875 ALLIED DIGIT VIVIL INVESTMENTS PRIVATE LIMITED S 520000 388.03
10/6/2009 532114 AREALTY CLSA (MAURITIUS) LIMITED B 2000000 19.41
10/6/2009 532114 AREALTY NETEDGE.TECHNOSOFT.PRIVATE.LIMITED S 2257581 19.46
10/6/2009 519532 ASIAN TEA EX KAPISH CACJGING PVT. LTD S 67956 32.35
10/6/2009 512149 AVANCE TECHN JASMINSBAJORIYA B 25497 24.05
10/6/2009 512149 AVANCE TECHN ROOPALJINESHSHAH S 26000 24.25
10/6/2009 532406 AVANTEL LTD* MINDSET TECHNOLOGIES PVT LTD B 35000 49.55
10/6/2009 532406 AVANTEL LTD* NIRMAL BANG SECURITIES PVT.LTD. S 35000 49.55
10/6/2009 532995 AVON CORP DHEERAJ KUMAR B 102858 9.01
10/6/2009 532995 AVON CORP KULADEEP MOHAN S 101815 9.00
10/6/2009 531682 CAT TECHNOL CHERRY COSMETICS PVT LTD B 198956 6.17
10/6/2009 531682 CAT TECHNOL S V ENTERPRISES B 264031 6.08
10/6/2009 531682 CAT TECHNOL S V ENTERPRISES S 264031 6.16
10/6/2009 532969 CHI INVEST WINRO COMMERCIAL INDIA LIMITED B 200000 34.50
10/6/2009 532969 CHI INVEST TALMA CHEMICAL INDUSTRIES PVT.LTD B 378000 34.50
10/6/2009 532969 CHI INVEST FIDELITY MUTUAL FUND S 594028 34.58
10/6/2009 522163 DIAMON CABLE VIMALJAIN B 100008 198.59
10/6/2009 522163 DIAMON CABLE DIAMOND PROJECTS LTD S 112500 198.60
10/6/2009 532876 EVERONN SYS EXCEL FINCOM B 116141 421.96
10/6/2009 532876 EVERONN SYS MATRIX EQUITRADE PVT. LTD. B 109797 419.90
10/6/2009 532876 EVERONN SYS OPG SECURITIES P LTD B 408311 421.75
10/6/2009 532876 EVERONN SYS H.J. SECURITIES PVT. LTD. B 129905 413.58
10/6/2009 532876 EVERONN SYS EXCEL FINCOM S 116141 422.13
10/6/2009 532876 EVERONN SYS MATRIX EQUITRADE PVT. LTD. S 109797 420.40
10/6/2009 532876 EVERONN SYS OPG SECURITIES P LTD S 408311 422.35
10/6/2009 532876 EVERONN SYS H.J. SECURITIES PVT. LTD. S 129905 414.12
10/6/2009 532022 FILAT FASH CHANDRESHCHANDRAKANTSHAH B 36742 111.69
10/6/2009 532022 FILAT FASH TODI SECURITIES PVT LTD B 40000 112.35
10/6/2009 532022 FILAT FASH CHANDRESHCHANDRAKANTSHAH S 36742 112.09
10/6/2009 532836 GREMAC INFRA UMESH DHAN SINGH S 119765 46.18
10/6/2009 509709 INTERN CONVE RAJENDRAKUMARDABRIWALA B 15000 145.82
10/6/2009 509709 INTERN CONVE GOEL FINTRADE PRIVATE LIMITED S 15000 145.82
10/6/2009 516078 JUMBO BAG LT J V STOCK BROKING PRIVATE LIMITED B 42668 32.45
10/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 58991 32.28
10/6/2009 516078 JUMBO BAG LT HEMENDRA AGARWAL B 44696 32.25
10/6/2009 516078 JUMBO BAG LT HEMENDRA AGARWAL S 74696 32.26
10/6/2009 516078 JUMBO BAG LT J V STOCK BROKING PRIVATE LIMITED S 38768 32.75
10/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 57991 32.39
10/6/2009 532081 K SERA SERA S V ENTERPRISES B 404129 16.16
10/6/2009 531272 NIKKI GLOB F TRIBHUVANLOONA S 19951 13.66
10/6/2009 590057 NORTHGATE TE MERRILL LYNCH CAPITAL MARKET ESPANA SA SVB S 178448 50.94
10/6/2009 522207 RASAND ENG I REL CAP TRUSTEE CO LTD A/C REL TAX SAVER (ELSS) FUND S 34000 33.52
10/6/2009 526753 ROSELABS LTD NIRMALADEVITRILOKCHANDAGRAWAL S 118400 11.25
10/6/2009 531898 SANGUINE MD SETU SECURITIES PVT LTD B 435281 4.93
10/6/2009 531898 SANGUINE MD BHARAT DEVCHANDBHAI PATEL B 179000 4.93
10/6/2009 531898 SANGUINE MD DHARMENDRAKUMAR CHANDULAL PATEL B 162000 4.93
10/6/2009 531898 SANGUINE MD SAUMIL AMRISHBHAI PATEL B 100000 4.92
10/6/2009 531898 SANGUINE MD ANGEL INFIN PRIVATE LIMITED B 216289 4.93
10/6/2009 531898 SANGUINE MD JMP SECURITIES PVT LTD B 200000 4.93
10/6/2009 531898 SANGUINE MD HITENBHUPATRAIMEHTA B 211024 4.93
10/6/2009 531898 SANGUINE MD SETU SECURITIES PVT LTD S 675281 4.93
10/6/2009 531898 SANGUINE MD FORSEE FINANCIAL AND CONSULTANCY SERVICES PVT LTD S 500000 4.93
10/6/2009 531898 SANGUINE MD JMP SECURITIES PVT LTD S 205000 4.93
10/6/2009 531898 SANGUINE MD HITENBHUPATRAIMEHTA S 269500 4.93
10/6/2009 531898 SANGUINE MD PARESHDHIRAJLALSHAH S 80004 4.91
10/6/2009 532886 SEL MANUF KANUDIA CAPITAL AND MANAGEMENT SERVICES PVT LTD B 138326 80.22
10/6/2009 532886 SEL MANUF KANUDIA CAPITAL AND MANAGEMENT SERVICES PVT LTD S 138326 79.31
10/6/2009 532886 SEL MANUF RITU SALUJA S 100000 80.00
10/6/2009 505729 SINGER INDI SINGER (INDIA) B.V S 12044 31.84
10/6/2009 532725 SOLAR IND BIRLA MUTUAL FUND AC BIRLA MIDCAP FUND B 205000 255.42
10/6/2009 532725 SOLAR IND BIRLA MUTUAL FUND AC INDIA ADVANTAGE OFFSHORE FUND B 100000 255.42
10/6/2009 532725 SOLAR IND BIRLA MUTUAL FUND AC BIRLA SPECIAL SITUATIONS FUND B 110000 255.42
10/6/2009 532725 SOLAR IND NOTZ STUCKI ET CIE S A A/C. ARUNA FUND S 416492 255.16
10/6/2009 523756 SREI INFRA T. ROWE PRICE INTERNATIONAL INC A/C T. ROWE PRICE NEW ASIA FUND S 1481765 72.61
10/6/2009 519228 TEMPT.FOODS APL INFRASTRUCTURE PVT. LTD. B 834506 40.00
10/6/2009 519228 TEMPT.FOODS DILIPRANMALSHAH B 300000 40.96
10/6/2009 519228 TEMPT.FOODS DILIPRANMALSHAH S 300000 40.00
10/6/2009 590093 TRIMURTHI DR VISHU ENTERPRISE S 49805 28.43
10/6/2009 531874 VENUS VENT PRADEEP KANTILAL THAKKAR B 30000 53.70
10/6/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR S 41136 53.71

NSE Bulk Deals to Watch - June 10 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
10-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,651646,1124.29,-
10-JUN-2009,APOLLOHOSP,Apollo Hospitals Ltd,PCR INVESTMENTS LIMITED,BUY,375000,521.60,-
10-JUN-2009,BHARATRAS,Bharat Rasayan Ltd,NIKHIL GUPTA,BUY,10000,59.85,-
10-JUN-2009,BHARATRAS,Bharat Rasayan Ltd,WELDON FINCAP PVT LTD,BUY,41500,59.96,-
10-JUN-2009,BILPOWER,Bilpower Limited,MEET SHARES AND STOCKS SERVICES PVT LTD,BUY,55705,133.35,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,210056,422.36,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,ANKITA VISHAL SHAH,BUY,91405,381.49,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,C D INTEGRATED SERVICES LTD.,BUY,114660,424.04,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,GENUINE STOCK BROKERS PVT LTD,BUY,116311,428.40,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,MANIPUT INVESTMENTS PVT. LTD.,BUY,85362,430.03,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,BUY,166096,417.71,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,NIRSHILP SECURITIES PVT. LTD.,BUY,101713,429.06,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,PRB SECURITIES PRIVATE LTD.,BUY,139923,421.43,-
10-JUN-2009,GSKCONS,GlaxoSmithKline Consumer,ARISAIG ASIAN SMALL COMPANIES FUND (MAURITIUS) LTD.,BUY,620004,939.79,-
10-JUN-2009,JPHYDRO,Jaiprakash Hydro-Power Li,GENUINE STOCK BROKERS PVT LTD,BUY,2753572,95.73,-
10-JUN-2009,KSERAPRO,K Sera Sera Productions L,OUDH FINANCE & INVESTMENT PVT LTD,BUY,620502,15.59,-
10-JUN-2009,KSERAPRO,K Sera Sera Productions L,S V ENTERPRISES,BUY,500000,15.45,-
10-JUN-2009,MAYTASINFR,Maytas Infra Limited,BP FINTRADE PRIVATE LIMITED,BUY,342100,87.33,-
10-JUN-2009,NIITLTD,NIIT Limited,NIRSHILP SECURITIES PVT. LTD.,BUY,1177270,62.93,-
10-JUN-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,BUY,303105,79.65,-
10-JUN-2009,TECHM,Tech Mahindra Limited,C D INTEGRATED SERVICES LTD.,BUY,649289,815.37,-
10-JUN-2009,VHL,Vardhman Holdings Limited,SHIVALIK SEC. LTD,BUY,18051,174.09,-
10-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1214239,25.28,-
10-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,651646,1125.10,-
10-JUN-2009,APOLLOHOSP,Apollo Hospitals Ltd,PRATHAP C REDDY,SELL,375000,521.60,-
10-JUN-2009,BHARATRAS,Bharat Rasayan Ltd,NIKHIL GUPTA,SELL,41500,59.96,-
10-JUN-2009,BHARATRAS,Bharat Rasayan Ltd,WELDON FINCAP PVT LTD,SELL,10000,59.85,-
10-JUN-2009,BILPOWER,Bilpower Limited,MEET SHARES AND STOCKS SERVICES PVT LTD,SELL,55705,135.07,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,208156,424.63,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,ANKITA VISHAL SHAH,SELL,91405,383.27,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,C D INTEGRATED SERVICES LTD.,SELL,115873,424.11,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,GENUINE STOCK BROKERS PVT LTD,SELL,116311,429.05,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,MANIPUT INVESTMENTS PVT. LTD.,SELL,85362,430.59,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,SELL,164497,418.06,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,NIRSHILP SECURITIES PVT. LTD.,SELL,50935,410.49,-
10-JUN-2009,EVERONN,Everonn Systems India Lim,PRB SECURITIES PRIVATE LTD.,SELL,133723,421.94,-
10-JUN-2009,GSKCONS,GlaxoSmithKline Consumer,ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.,SELL,808955,940.00,-
10-JUN-2009,JPHYDRO,Jaiprakash Hydro-Power Li,GENUINE STOCK BROKERS PVT LTD,SELL,2753572,95.80,-
10-JUN-2009,KSERAPRO,K Sera Sera Productions L,OUDH FINANCE & INVESTMENT PVT LTD,SELL,500000,15.46,-
10-JUN-2009,KSERAPRO,K Sera Sera Productions L,S V ENTERPRISES,SELL,614663,15.49,-
10-JUN-2009,MAYTASINFR,Maytas Infra Limited,BP FINTRADE PRIVATE LIMITED,SELL,324961,86.63,-
10-JUN-2009,MAYTASINFR,Maytas Infra Limited,IFCI LTD.,SELL,1000000,87.38,-
10-JUN-2009,NIITLTD,NIIT Limited,NIRSHILP SECURITIES PVT. LTD.,SELL,516070,60.41,-
10-JUN-2009,PRITHVI,Prithvi Information Solut,Copthall Mauritius Investment Ltd,SELL,132012,76.03,-
10-JUN-2009,SELMCL,SEL Manufacturing Company,KANUDIA CAPITAL & MANAGEMENT SERVICES PVT. LTD.,SELL,190821,80.68,-
10-JUN-2009,SELMCL,SEL Manufacturing Company,RITU SALUJA,SELL,300000,80.00,-
10-JUN-2009,SREINTFIN,SREI Infrastructure Finan,T. ROWE PRICE INTERNTL INC A/C T.ROWE PRICE NEW ASIA FUND,SELL,1577673,72.64,-
10-JUN-2009,TECHM,Tech Mahindra Limited,C D INTEGRATED SERVICES LTD.,SELL,649289,816.18,-
10-JUN-2009,VHL,Vardhman Holdings Limited,UNITED INDIA INSURANCE CO LTD.,SELL,17804,170.93,-
10-JUN-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1214239,25.29,-

Post Session Commentary - June 10 2009

The domestic stock market continued its rally for the second straight session on sustained buying across the sectoral indices backed by the firm global markets and higher US index futures. The market opened with decent gains and gained more strength as the day progress. However a little bit of volatiliy was witnessed after a sharp surge at the initial stage that pushed the BSE Sensex to 10 months high, which led the market to came off from the higher level before regaining more strength. Meanwhile, the Finance Minister Pranab Mukherjee said the banks to cut the interest rates and provide cheap credit to the industry to boost the growth. The minister said the reduction in key rates by Reserve Bank is not adequately getting) reflected in the reduction of BPLR (benchmark prime lending rates) of banks.

Tracking the firm global markets, the domestic market opened the session with a positive gap and kept on trading in the positive territory till the final closing of the session. The BSE Sensex cross the psychological 15,400 mark while NSE Nifty crossed the 4,650 mark. The market also gave a boost from the comments from the Prime Minister yesterday 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. Moreover in the global arena, the US Markets closed flat for the second consecutive day on Tuesday. The trading day once again started lackluster amid lack of any specific news. However the semiconductor stocks were in the limelight with a phenomenal gain of 4.5%. The surge came after the Texas instruments increased its second quarter forecast. This announcement surprised investors just after a week when the chief executive from Applied Materials (11.03, +0.17) made pessimistic comments about the semiconductor industry. The materials sector on the other hand inclined by 2.3% as the commodity prices inclined due to 1.4% fall in U.S. dollar. In the domestic front, the investors on-loaded position across almost all the sectors led by Power, Capital Goods, Consumer Durables, Bankex and Health Care index while Realty index remained out of favor .

Among the Sensex pack 23 stocks ended in positive territory while 7 closed in negative. The market breadth indicating the overall health of the market remained weak as 1,553 stocks closed in red while 1,218 stocks closed in green while 60 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 339.81 points or 2.25% at 15,466.81 and NSE Nifty closed up by 104.30 points or 2.29% at 4,655.25. The BSE Mid Caps and Small Caps closed with gains of 83.78 and 20.81 points at 5,359.50 and 6,206.42. The BSE Sensex touched intraday high of 15,580.81 and intraday low of 15,168.18.

Gainers from the BSE Sensex pack are Tata Power (6.43%) followed by Reliance Infra (5.99%), HDFC bank (5.56%), Ranbaxy Labs (5.44%), ACC (5.40%), Reliance Comm (5.30%), Bhel (4.62%) and L&T (3.80%).

Losers from the BSE Sensex pack are Tata Motors (1.95%), DLF (1.71%), Sun Pharma (0.83%) and SBI (0.37%).

On the global markets front the Asian markets which opened before the Indian market, closed in green. Hang Seng, Seoul Composite, Nikkei, and Strait Times closed up by 4.03%, 3.14%, 2.09% and 1.76% at 18,785.66, 1,414.88, 9,991.49 and 2,391.22 respectively..

European markets which opened after the Indian market are trading in positive. In Frankfurt the DAX index is trading higher by 2.46% at 5,120.58 and in London FTSE 100 is trading higher by 2.19% at 4,501.40.

The BSE Power index increased (3.62%) or 107.36 points to close at 3,069.45. Main gainers are Tata Power (6.43%), NTPC (3.08%), Torent Power (3.15%), GVK Power (2.83%) and Reliance Power (1.41%).

The BSE Capital Goods index surged (3.46%) or 449.98 points at 13,466.82. Scrips that mostly gained are Punj Lloyd (6.65%), Siemens (5.36%), BHEL (4.62%), Bharat Bijli (4.64%), Gammon India (3.54%) and SKF India (3.71%).

The BSE Consumer Durables index ended higher by (2.74%) or 82.56 points at 3,100.98. Videocon Industries (9.99%), Titan Industries (2.65%) and Blue Star (0.20%) ended in positive territory.

The BSE Bankex index grew (2.49%) or 200 points to close at 8,240.65. Gainers are Indus Ind Bank (7.67%), HDFC Bank (5.56%), Kotak Bank (5.80%), Bank of Baroda (3.97%) and PNB (3.59%).

The BSE Health Care advanced (2.31%) or 83.68 points at 3,704.96. Gainers are Aurobindo Pharma (8.45%), Ranbaxy Laboratories (5.44%), Piramal Health (4.83%), Dr. Reddy (4.88%) and Lupin Ltd. (4.29%).

The BSE Metal index increased (2.14%) or 243.49 points to close at 11,644.89. Gainers are Jindal Steel (5.92%), JSW Steel (5.02%), SAIL (3.35%), Hindalco Industries (3.18%), Nalco (2.95%) and Sesa Goa (2.80%).

The BSE FMCG improved (2.08%) or 46.28 points at 2,271.21. Gainers are United Spirits (5%), Ruchi Soya (5.97%), HUL (3.14%), Colgate Palmolive (2.55%) and ITC (2.26%).

Infosys inched up 0.43% to close at Rs1,803.25. Infosys Australia on Tuesday announced that it has been chosen by Telstra as a key strategic partner to support its five-year Australian $450 million application development and maintenance contracts.

SBI dipped by 0.37% to close at Rs1,756.75. The State Bank of India is looking at the option to open 129 branches in Andhra Pradesh during the current fiscal, in addition to the existing 1,000.

HDFC closed flat at Rs2,350. The committee of Directors of HDFC on Wednesday approved a proposal to raise Rs 4000 cr. It will raise the money through a combined offering of secured redeemable non-convertible Debentures (NCDs) of up to Rs 4,000 crore along with warrants in accordance with Chapter XIII-A of the SEBI (Disclosure and Investor Protection) Guidelines, 2000 (SEBI DIP Guidelines.

The Indian unit of Japan''s Toyota Motor Corp expects to start the production at its second car plant by 2010 end. Toyota Kirloskar Motor Pvt Ltd hopes to sell more than 50,000 units in the country.

Sensex steers past 15400

After registering smart gains in yesterday's session, the market rallied sharply and gained 454 points during intra-day trades. Firm Asian markets made the undertone bullish, with the Sensex crossing the 15300-mark in early trades and maintaining the upward bias thereafter. While the mood remained upbeat on strong buying in power, capital goods and consumer durables stocks, the rally gathered more steam in afternoon and the Sensex touched the day's high of 15581. The Sensex finally ended the session 340 points up at 15467 and Nifty rose 104 points to close at 4655.

The breadth of the market was surprisingly negative. Of the 2,831 stocks traded on the BSE 1,542 stocks declined, 1,229 stocks advanced and 60 stocks ended unchanged. Among sectoral indices, BSE Power flared up by 3.62%, BSE CG rose 3.46%, BSE CD moved up 2.74% and BSE Bankex was up 2.49%, while other indices ended with moderate gains. BSE Realty was the only index to close in negative territory with 1.14% fall.

Barring a few, most of the Sensex stocks ended higher. Tata Power flared up 6.43% at Rs1,213.65, Reliance Infrastructure bounced back sharply and shot up by 5.99% at Rs1,218.10, HDFC Bank zoomed 5.56% at Rs1,494.20, Ranbaxy Laboratories moved up by 5.44% at Rs298.55, ACC scaled up 5.40% at Rs897.35, Reliance Communications surged 5.30% at Rs349.85, Bharat Heavy Electricals Ltd jumped 4.62% at Rs2,352.80 and Larsen & Toubro gained 3.80% at Rs1,633.65.

Power stocks were in demand and attracted strong buying support. Lanco Infrastructure spurted by 14.52% at Rs443.60, Siemens shot up by 5.36% at Rs511.15, ABB flared up 4.61% at Rs769.80 and Neyveli jumped by 3.65% at Rs135. Consumer durable stocks too logged significant gains. Videocon Industries soared 9.99% at Rs196.60, Titan Industries added 2.65% at Rs1,245.45 and Blue Star climbed 0.20% at Rs307.35.

Over 2.61 crore shares of Unitech changed hands on the BSE followed by Reliance Natural Resources (1.69 crore shares), Suzlon Energy (1.68 crore shares), Ispat Industries (1.50 crore shares) and JP Hydropower (1.46 crore shares).

In value terms, Tech Mahindra clocked a turnover of Rs307 crore followed by Unitech (Rs237 crore), Suzlon Energy (Rs213 crore), Reliance Industries (Rs207 crore) and Aban Offshore (Rs203 crore).

Sensex up 60% in 2009 as FII inflow crosses Rs 25000 crore

Firm global markets and higher US index futures helped Indian stocks register strong gains for the second straight day. The barometer index BSE Sensex attained its highest closing in nearly 10 months and the S&P CNX Nifty scales highest closing in more than a year. Comments by Petroleum Secretary R.S. Pandey that the government is committed to reforms in fuel pricing also boosted the sentiment. However, the market breadth, indicating the overall health of the market, turned negative in late trade compared to a strong breadth earlier in the day.

Realty stocks fell even as capital goods stocks rose. Banking stocks pared intraday gains. The BSE 30-share Sensex rose 339.81 points, or 2.25%, up close to 300 points from the day's low and off close to 110 points from the day's high.

Volatility was high. A sharp surge pushed the BSE Sensex to its highest level in nearly 10 months in morning trade. The market came off the higher level later before regaining strength. The Sensex surged to its highest level in nearly an year in mid-afternoon trade. It pared gains later.

Indian stocks today extended their recent strong gains on a view that 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.

Foreign funds are aggressively buying Indian stocks. FII inflow in June 2009 totaled Rs 4,718.80 crore (till 9 June 2009). FII inflow in calendar year 2009 totaled Rs 25,192.30 crore (till 9 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.

Finance Minister Pranab Mukherjee today said banks should provide credit at reasonable rates to spur growth, saying cuts in official rates by the Reserve Bank of India had not been passed on. "I would urge the banks to address these concerns expeditiously and in adequate measure," Mukherjee said after a meeting with chiefs of state-run banks. "This will help restore the environment for rapid growth and ensure that the growth process benefits," he said.

Mukherjee said banks have agreed to explore the possibility of reducing rates after a meeting with chiefs of state-run banks.

Interest rates in India are falling thanks to ample liquidity in the banking system, low headline inflation and a loose monetary policy stance of the Reserve Bank of India. However, inflation may rise if oil and metal prices which have risen sharply in 2009 continue to rally.

A change in the Reserve Bank of India's current loose monetary policy stance if and when it takes place may weigh on equities. Investors have been betting that falling interest rates in India may help sustain strong domestic demand and also support a larger capital expenditure programme of India Inc. Late last week, India's biggest private sector bank by net profit ICICI Bank cut prime lending rate by 50 basis points.

Rising metal prices is a cause of concerns for manufacturing companies as their raw material costs may shoot up.

The government's oil subsidy bill may remain high and it could continue to put pressure on the already high fiscal deficit if the government does not resort to decontrol of oil prices. However, the surging rupee against the dollar may mitigate the impact to some extent as India is a major importer of crude.

Petroleum Secretary R.S. Pandey today said the government is committed to reforms in fuel pricing but it wants to ensure affordable fuel supply. Pandey's comments come in the backdrop of a newspaper report on Tuesday that 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 government fixes the price of petrol and diesel and compensates state refiners, such as Indian Oil Corporation, HPCL and BPCL by supplying domestic crude oil at a discount and by issuing bonds to shore up their balance sheets.

Any disappointment on 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.

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.

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.

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. But some investors are concerned that the government's two key allies viz. the DMK and Trinamool Congress (TC) may oppose economic reforms.

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. He said India will be able a growth rate of 8-9%, even when the world grows at a lower rate.

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).

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.

European stocks surged today as higher commodity prices and a report on Australian consumer confidence added to evidence that the global recession is easing. Key benchmark indices in France, Germany and UK were up by between 1.82% to 2.35%.

Asian stocks rose for the first time in three days, as higher metal and oil prices boosted commodity companies and the biggest gain in Australian consumer confidence in 22 years added to evidence the global recession is easing. Key benchmark indices in Hong Kong, Singapore, South Korea and Taiwan rose by between 0.75% to 4.03%.

An Australian consumer sentiment index compiled by Westpac Banking Corp. and the Melbourne Institute that was released today showed an increase of 12.7% in June 2009 from the previous month to 100.1 points. It's the first time since January 2008 that the index was above 100, indicating optimists outnumber pessimists.

Japan's Nikkei rose 2.09% even as a key indicator of Japanese corporate capital investment slipped far more than expected. Orders for Japanese machinery fell to a 22-year low and producer prices tumbled the most since 1987 as dwindling profits forced companies to cut costs amid the worst postwar recession. Bookings, an indicator of capital investment in the next three to six months, fell 5.4 % to 688.8 billion yen ($7.1 billion) in April 2009, the lowest since 1987, the Cabinet Office said today in Tokyo. Wholesale prices, the costs companies pay for energy and raw materials, slid 5.4 % in May 2009 from a year earlier, the Bank of Japan said.

China's Shanghai composite rose 1.02% as consumer prices fell for a fourth month, making it easier for the government to keep interest rates low and boost spending to revive the world's third-largest economy. Prices dropped 1.4% in May 2009 from a year earlier, after falling 1.5% in April 2009, the statistics bureau said today.

Also aiding the rally, two Chinese newspapers reported that China's industrial production and retail sales data due later in the week will come in ahead of economist expectations.

US stock futures on Wednesday pointed to a strong start as investors went back into equities and commodities on confidence surrounding the US and Chinese economies. Trading in the US index futures indicated Dow could rise 116 points at the opening bell today, 10 June 2009.

Most US stocks rose on Tuesday, 9 June 2009, as a better-than-estimated forecast at Texas Instruments Inc. spurred gains in technology companies. The broader S&P 500 index added 3.29 points, or 0.4%, to 942.43, and Nasdaq Composite Index rose 17.73 points, or 1%, to 1,860.13. But the Dow Jones Industrial average was down 1.43 points, or less than 0.1%, to 8,763.06.

The BSE 30-share Sensex rose 339.81 points, or 2.25%, to 15,466.81 its highest closing since 11 August 2008. The Sensex rose 453.81 points at the day's high of 15,580.81 in mid-afternoon trade, its highest level since 18 June 2008. At the day's low of 15,168.18, the Sensex rose 41.18 points in early trade.

The S&P CNX Nifty was up 104.95 points, or 2.31%, to 4,655.90 its highest closing since 5 June 2008. Nifty June 2009 futures were at 4665, at a premium of 9.75 points as compared to the spot closing of 4655.25. Turnover in NSE's futures & options (F&O) segment surged to Rs 73,359.99 crore from Rs 69,273.85 crore on Tuesday, 9 June 2009.

BSE clocked a turnover of Rs 8,302 crore higher than Rs 8,002.02 crore on Tuesday, 9 June 2009.

On the back of heavy buying by foreign funds, the Sensex has jumped 5,819.50 points or 60.32% in calendar year 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,306.41 points or 89.53%.

Coming back to today's trade, the market breadth, indicating the overall health of the market turned negative in contrast to a strong breadth seen earlier in the day. On BSE, 1,212 shares rose as compared with 1,549 that declined. A total of 55 shares remained unchanged.

From the 30 share Sensex pack 23 rose while the rest fell.

The BSE Mid-Cap index was up 1.59%. The BSE Small-Cap index was up 0.34%. Both these indices, however, underperformed the Sensex.

The BSE Power index (up 3.62%), the BSE Capital Goods index (up 3.46%), the BSE Consumer Durables index (up 2.74%), the BSE Bankex (up 2.49%), the BSE Healthcare index (up 2.31%), outperformed the Sensex.

The BSE Realty index (down 1.14%), the BSE PSU index (up 0.97%), the BSE IT index (up 1.06%), the BSE Auto index (up 1.53%), the BSE TECk index (up 1.68%), the BSE Oil & Gas index (up 2.07%), the BSE FMCG index (up 2.08%), the BSE Metal index (up 2.14%), underperfomed the Sensex.

Oil stocks rose as crude oil raced towards $71 a barrel on Wednesday, after settling above $70 on Tuesday for the first time in seven months on a larger-than-expected fall in crude oil stocks and a forecast that falling oil demand may have bottomed. India's largest state-run oil exploration firm by sales ONGC rose 2.93%. Cairn India rose 4.82%. US light crude for July delivery rose 84 cents to $70.85 a barrel on Tuesday. The rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was up 2.13% to Rs 2,320.25. The stock hit a high of Rs 2,341.40 and a low of Rs 2,280.30. The stock rose for the second day in a row on market talks the government may extend a seven-year tax holiday given to crude oil explorers to producers of natural gas in the Union Budget 2009-2010

Analysts expect strong growth in RIL's 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 RNRL's upcoming 7400 megawatt (MW) power project at Dadri in Uttar Pradesh.

PSU OMCs rose after Petroleum Secretary R.S. Pandey said today the government is committed to reforms in fuel pricing but it wants to ensure affordable fuel supply. BPCL and IOCL rose by between 0.53% to 0.92%. HPCL fell 0.67%.

Capital goods stocks rose on a likely focus of the government on the infrastructure sector. Bharat Heavy Electricals, Larsen & Toubro , Punj Lloyd, ABB rose by between 4.61% to 6.65%.

Bank stocks rose on recent 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 1.67% to Rs 747.80 off the day's high of Rs 761.80. Its American depository receipt (ADR) rose 1.47% on Tuesday, 9 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 was up 5.56% to Rs 1,494.20 off the day's high of Rs 1,550. Its ADR rose 3.11% on Tuesday.

But, India's biggest bank in terms of branch network State Bank of India (SBI) fell 0.37% to Rs 1,756.75 off the day's high of Rs 1,799. As per recent reports, SBI may cut lending rates by 25 basis points. SBI chairman O.P. Bhatt today said SBI's first priority is to absorb its associate banks. It is also looking to grow by buying domestic banks.

India's biggest dedicated housing finance firm by operating income HDFC fell 0.23% as the firm plans to raise up to Rs 4000 crore after its board yesterday approved a proposal to raise Rs 4000 crore by selling bonds and warrants. The maximum dilution on conversion of all warrants to shares would be 3.5% of the expanded capital, HDFC said in a statement to the stock exchange after trading hours on Tuesday

Realty stocks fell on profit taking after a recent surge triggered by expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth. Orbit Corporation, Indiabulls Real Estate and Omaxe fell by between 3.52% to 5%.

DLF the country's largest-listed real estate firm, fell 1.71% on profit taking after gaining more than 10% yesterday 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 Stock Exchange jumped 3.8% yesterday. Copper surged 5% in New York yesterday. Tata Steel, Hindustan Zinc, Steel Authority of India, National Aluminum Company, Hindalco Industries rose by between 0.22% to 3.35%.

FMCG stocks rose on hopes government may take steps to boost the employment opportunities in rural market. Tata Tea, ITC, Hindustan Unilever and United Spirits rose by between 0.15% to 5%. FMCG companies derive a substantial revenue from rural markets.

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 2.72% to 10.94%.

Bharat Heavy Electricals, Larsen & Toubro, Punj Lloyd, ABB rose by between 4.61% to 6.65%.

Among construction stocks, Nagarjuna Construction Company, IVRCL Infrastructure & Projects and Gammon Infrastructure, rose by between 1.06% to 3.14%.

Healthcare stocks rose on hopes the government will give primary importance to healthcare segment and health of citizens. Ranbaxy Laboratories, Biocon, Wochardt, Pfizer, Dr Reddy's Laboratories, Cipla rose by between 0.66% to 5.44%.

Outsourcing focussed IT stocks rose on talks worst may be over for the US economy. Nobel Prize-winning economist Paul Krugman on Monday, 8 May 2009, 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 0.47%. The company said yesterday 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. Its American depository receipt (ADR) gained 3.62% on Tuesday.

India's third largest software services exporter by sales Wipro rose 2.11% as its ADR rose 4.66% on Tuesday. But India's largest software services exporter by sales TCS was unchanged

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 during trading hours on Tuesday. The stock hit 10% upper circuit after it announced the result during the market hours yesterday. Tech Mahindara rose 5.46%, extending yesterday's 25.46% rally.

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.

The Indian rupee rose for the second straight day, as a firm stock market renewed hopes for more inflows and the dollar's weakness versus majors also supported the domestic currency. The partially convertible rupee was at 47.25/26 per dollar, stronger than Tuesday's close of 47.48/49. A firm rupee affects operating profit of IT firms negatively as they earn most of their revenues from exports.

Unitech clocked the highest volume of 2.61 crore shares on BSE. Reliance Natural Resources (1.69 crore shares), Suzlon Energy (1.68 crore shares), Ispat Industries (1.5 crore shares), JP Hydro Power (1.46 crore shares) were the other turnover topeprs in that order.

Pre Session Commentary - June 10 2009

Today domestic markets are likely to open positive as the Asian markets have opened with phenomenal gains after a lackluster trading yesterday. The domestic sentiments are showing signs of firmness and the surge in frontline stocks are likely to occur today. Stock specific movements would thrive during the day and stocks like Satyam is most likely to trade upper circuit again after surprising third quarter results.

On Tuesday, the domestic markets closed with huge gains as the frontline stocks bounced back with intense buying. The domestic traders were optimistic about the resurgence of markets at broader level and therefore sectors like Realty, IT and Metal rebound by 6.25%, 4.79% and 4.28% respectively. In BSE Sensex cap DLF, JP Associates and Reliance Com were the fore runners with phenomenal gains of 10.07%, 8.18% and 7.37% respectively. Broad based buying helped Mid cap and Small cap index to record respectable gains of 3.15% and 1.67% respectively. We expect the markets to be trading positive.

The BSE Sensex closed with gain of 461.08 points at 15,127.00 and NSE Nifty ended high by 121.05 points at 4,550.95. BSE Mid Caps and Small Caps closed with gains of 160.87 points and 101.73 points at 5,275.72 and 6,185.61 respectively. The BSE Sensex touched intraday high of 15,161.22 and intraday low of 14,526.69.

On Tuesday, the US Markets closed flat for the second consecutive day. The trading day once again started lackluster amid lack of any specific news. However the semiconductor stocks were in the limelight with a phenomenal gain of 4.5%. The surge came after the Texas instruments increased its second quarter forecast. This announcement surprised investors just after a week when the chief executive from Applied Materials (11.03, +0.17) made pessimistic comments about the semiconductor industry. The materials sector on the other hand inclined by 2.3% as the commodity prices inclined due to 1.4% fall in U.S. dollar. The US light crude oil for July delivery closed high by 2.7% at $69.92 per barrel marking a new 2009 high on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed flat at 8,763.06 the NASDAQ Composite (RIXF) index inclined by 17.73 points to close at 1,860.13 and the S&P 500 (SPX) closed flat at 942.43.

Indian ADRs rallied on Tuesday. In IT space, Satyam Computers rose 33.82% and ended at, following better than expected results. Patni Computers was up 10.09%, Infosys was up 3.62% and Wipro was up 4.66%. In Banking space, HDFC Bank was up 3.11% and ICICI Bank was up 1.47%. In Telecom space, Tata Communication was up 2.33% and MTNL was up 0.43%. In other sectors, Dr Reddy''s Labs was up 4%, Sterlite Industries was up 0.29% while Tata Motors ended down 0.48%.

Today major stock markets in Asia are trading positive. Hang Seng is up by 344.77 points at 18,403.26. Shanghai Composite is up by 12.49 points at 2,800.379. Japan''s Nikkei is trading up by 140.36 points at 9,927.18. Strait Times is also up by 22.08 points at 2,371.95. KLSE Composite is flat at 1,071.79.

On Tuesday, the partially convertible rupee closed at 47.48/49 per dollar, 0.2% stronger than it previous close at 47.55/56. The rupee gained due to huge bounce back in local stock markets.

On BSE, total number of shares traded were 60.13 Crore and total turnover stood at Rs 8,002.02 Crore. On NSE, total number of shares traded was 136.01 Crore and total turnover was Rs 23,309.78 Crore.

Top traded volumes on NSE Nifty – Unitech with 126880698 shares, Suzlon Energy with 79853861 shares, DLF with 23444038 shares, Reliance Comm with 13048795 shares, followed by Tata Steel with 12564263 shares.

On NSE Future and Options, total number of contracts traded in index futures was 718613 with a total turnover of Rs 15,513.9 Crore. Along with this total number of contracts traded in stock futures were 444679 with a total turnover of Rs 26,407.15 Crore. Total numbers of contracts for index options were 1098618 with a total turnover of Rs 25,087.68 Crore and total numbers of contracts for stock options were 37457 and notional turnover was Rs 2,265.12 Crore.

Today, Nifty would have a support at 4,596 and resistance at 4,674 and BSE Sensex has support at 14,210 and resistance at 15,452.

BSNL IPO - again - coming soon ?

BSNL will approach the government next week to carry forward the plan for divesting 10% equity through initial public offer.

BSNL chairman & MD Kuldeep Goyal said that to resume the formal dialogue with the opposing employee unions and to start the standard process like appointment of an investment banker, BSNL needs approval from the government which is still to come.

Recently, telecom minister A Raja who had earlier initiated talks with the union in his previous stint at the ministry asked the BSNL management to hold dialogue with the employees.

BSNL employees union is opposing the listing saying it is not in the interest of the company.

The new UPA regime is keen on BSNL`s listing and hopes that a 10% stake dilution in the company will fetch over Rs 400 billion.

SGX Nifty trades in the positive

4,588.0 +29.5

Market may open higher on strong Asia

The key benchmark indices may extend Tuesday's (9 June 2009) strong gains tracking firm Asia. Recent buying by the foreign funds may further aid investor sentiment.

Commodity-related shares led Asian stocks higher today, snapping a two-day decline, after metals and oil prices rallied on a decline in the U.S. dollar and as hopes grew for stronger Chinese industrial demand.Key benchmark indices in Hong Kong, Singapore, South Korea and Taiwan rose by between 0.44% to 1.72%.

Japan's Nikkei rose 1% even as orders for Japanese machinery fell to a 22-year low and producer prices tumbled the most since 1987 as dwindling profits forced companies to cut costs amid the worst postwar recession. Bookings, an indicator of capital investment in the next three to six months, fell 5.4 % to 688.8 billion yen ($7.1 billion) in April 2009, the lowest since 1987, the Cabinet Office said today in Tokyo. Wholesale prices, the costs companies pay for energy and raw materials, slid 5.4 % in May 2009 from a year earlier, the Bank of Japan said.

China's Shanghai composite rose 0.22% as China's consumer prices fell for a fourth month, making it easier for the government to keep interest rates low and boost spending to revive the world's third-largest economy. Prices dropped 1.4% in May 2009 from a year earlier, after falling 1.5% in April 2009, the statistics bureau said today.

After a choppy session US markets ended flat on Tuesday, 9 June 2009. Most financials traded in the green after ten banks were allowed to repay capital they received through the troubled asset relief program. The companies are expected to give back some 68 billion dollar.

The Dow Jones Industrial average was down 1.43 points, or less than 0.1%, to 8,763.06. The broader S&P 500 index added 3.29 points, or 0.4%, to 942.43, and Nasdaq Composite Index rose 17.73 points, or 1%, to 1,860.13.

On the economic front, wholesale inventories shrunk by 1.4% in April 2009. More than the 1.2% decline expected. It marked the eighth straight month that inventories were slashed.

Crude rose above 70 dollars after an industry group reported that US crude stockpiles dropped and the dollar declined crude for July delivery surged to USD 70.01 dollars a barrel, the highest settlement since November last year.

Back home, the key benchmark indices are near their highest closing since last August as sustained buying by the foreign funds supported the market. As per the provisional figures on NSE, foreign funds bought shares worth Rs 955.31 crore on Tuesday 9 June 2009. FII inflow in June 2009 totaled Rs 2,893.90 crore (till 8 June 2009). FII inflow in calendar year 2009 totaled Rs 24,213.30 crore (till 8 June 2009). The BSE 30-share Sensex jumped 461.08 points, or 3.14%, to 15,127, its highest closing since 12 August 2008 on Tuesday, 9 June 2009.

Meanwhile, the government may ask private sector and foreign banks to step up disbursals to industry, after having directed state-run banks to do the same to help increase the flow of credit in the economy and boost liquidity in the market.

Private sector and foreign banks have shied away from expanding their loan books for fear of accumulating bad debt in a slowing economy. The issue of asking private and foreign banks to lend more is expected to come up for discussion at the meeting of finance minister Pranab Mukherjee with bankers today,

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 on Tuesday suggested 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.

Satyam Disclosure, Implications

Satyam Disclosure, Implications

Crude crosses $70

Prices rise to seven month highs

The weak dollar pushed crude prices higher on Tuesday, 09 June, 2009. Price rose to seven month high today also after energy department increased its forecast for crude prices for the rest of the year.

On Tuesday, crude-oil futures for light sweet crude for July delivery closed at $70.01/barrel (higher by $1.92 or 2.8%). 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 40% since then. Year to date, in 2009, crude prices are higher by 40%.

In the currency market on Tuesday, the dollar paused from its steep increase over the past few trading sessions, as investors gauged the long-term staying power of the greenback's recent resurgence. The dollar index, which weighs the strength of dollar against the basket of six other currencies, went down by almost 0.9%.

The Energy Information Administration on Tuesday raised its outlook for this year's crude-oil and gasoline prices. The body said that crude prices are expected to average $58.70 a barrel this year. That's up from the $52 a barrel the EIA had forecast a month ago. It also raised the outlook for next year's crude price to $67.42 from $58. The EIA also said regular gasoline prices are expected to average close to $2.70 a gallon in July. The average regular gasoline price averaged across the full year is expected to be $2.33 a gallon.

Also at the Nymex on Tuesday, July reformulated gasoline rose 3.4 cents to $1.97 a gallon and July heating oil gained 4.2 cents to $1.81 a gallon.

Natural gas for July delivery fell fractionally to end at $3.73 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 3,298/barrel, higher by Rs 31 (0.94%) against previous day's close. Natural gas for June delivery closed at Rs 176.3/mmbtu, lower by Rs 1.4/mmbtu (0.8%).

Daily News Roundup - June 10 2009

Tata Motors raises Rs4.57bn by selling part of its stake in Tata Steel to the group’s holding company, Tata Sons. (ET)

ONGC and Mittal JV to start hydro carbon exploration in Nigeria by August 2009. (BL)

RIL to set-up a methane gas-based project in Madhya Pradesh. (BS)

Jai Prakash Associates plans to sell treasury shares to raise Rs30bn. (ET)

Infosys, EDS and IBM bags US$1.2bn Telstra deal. (ET)

Unitech exits a SPV, formed to develop several large projects in West Bengal. (BS)

Jet Airways cuts capacity by 20% to wade through crises. (BL)

ONGC expects overseas oil output to fall. (Mint)

Dr Reddy Labs get ANDA approval from US FDA to supply Omeprazole. (ET)

Maytas Infra will soon start work on two airports in Karnataka. (ET)

HDFC to raise Rs40bn debt via QIP. (BS)

SBI to hire 13,000 this fiscal. (ET)

REC seeks government approval to raise Rs30bn. (Mint)

Kingfisher Airlines exceeds FDI limit of 49%. (BS)

RCom has signed a JV with Kribhco to market telecom products. (BS)

Future Group to raise Rs40bn. (BS)

GMR Infra will increase its holding in DIAL by ~4% to 54%. (BS)

OBC plans to raise Rs3.5bn to grow and maintain comfortable CAR. (BS)

TVS Motor to launch Flame bikes under a new name. (ET)

France Tele and Telstra are in talks with Maxis Communication to buy a minority stake in Aircel. (ET)






Government may extend the corporate tax holiday enjoyed by EoUs and software parks by three more years. (ET)

Government plans to add 5,653MW of additional power generation capacity in the first six month of current financial year. (ET)

Government to hike farm credit target by 16% for FY09-10. (ET)

S&P may downgrade India if its external liquidity condition weakens and fiscal deficit worsen. (ET)

Government may hike fuel cess by Re1 to fund highways. (ET)

Finance Minister to meet public sector bank chief’s to review interest rate, credit flow and CAR requirement over the medium term. (BS)

Prime Minister predicts 8-9% GDP growth in 2-3 years. (BS)

Tea shipments falls 20% yoy in the four months to April. (BS)

Mumbai TDS mop-up rises 18% yoy to Rs119bn in the period of 1st April-June 9.

A bull story!

It takes a thousand voices to tell a single story.

One may be used to going to sleep after hearing a story. But the bulls seemed to have woken up after a shot nap on Monday with the PM confidently starting his story titled ‘India can get back to 9% GDP rate’. One story leads to another and the bulls are likely to hold sway on the bourses today as well, given the firm trend across Asian markets. US stocks ended mixed, with only the Nasdaq managing a small gain. European stock benchmarks also struggled for direction.

Back home, the broader market has witnessed some long-overdue easing in the past couple of days. Shares of several obscure companies with dodgy background had soared to astronomical levels. This is true not just for the Indian market but also overseas ones, sparking some concern about the sudden spurt in irrational exuberance.

Another area of worry is the sharply higher government borrowings, which has led to fears that private borrowers will find it tough to get loans. Reports say that S&P may reduce India's sovereign ratings if the government's fiscal situation worsens, which may well be the case if the UPA hikes allocation to its pet social schemes.

What this backdrop means is that the RBI will continue to be under pressure to maintain a fine balance between monetary policy and currency and debt markets. In a related development, the FM is set to meet bankers today to try and bolster lending to the industry. Despite talk of 'green shoots' of economic recovery, banks' credit growth has been pretty sluggish.

The farm loan target may be hiked by 16% in the budget. Textile companies are likely to receive a relief package. IT companies and EoUs may gain on reports that STPI tax benefits may be extended by three more years. In short, the bulls will hope this is the longest story ever told.

Kalpataru Power may come under pressure as the Maharashtra government may cancel a contract awarded to the company due to alleged shoddy work. Godfrey Phillips may soon launch Marlboro in India.

FIIs were net sellers in the cash segment on Tuesday at Rs9.55bn while the local institutions pulled out Rs1.43bn. In the F&O segment, the foreign funds were net sellers at Rs3.41bn. On Monday, FIIs were net buyers at Rs2.95bn in the cash segment. Mutual funds were net sellers at Rs409mn on the same day.

Indian markets staged a strong comeback after a witnessing some profit booking on Monday. All round buying in scrips across the sectors lifted the BSE Sensex to regain the 15,000 levels. The rally was led by the realty and the IT stocks. Even the Mid-Cap and the Small-Cap stocks were in demand. Finally, the Sensex surged 461 points or 3.1% to end at 15,127 and the NSE Nifty gained 121 points or 2.7% to shut shop at 4,551.

Shares of Areva T&D India gained by 2.5% to Rs346 after the company announced that it won four orders worth ~Rs3.5bn from Power Grid Corporation of India. The scrip touched an intra-day high of Rs355 and a low of Rs338 and recorded volumes of over 0.34mn shares on BSE.

Shares of Pfizer gained by 1.3% to Rs812 after reports stated that the company may buy RFCL’s animal healthcare division – Vetnex – from ICICI Venture for ~US$75mn. The scrip touched an intra-day high of Rs828 and a low of Rs801 and recorded volumes of over 38,000 shares on BSE.

Shares of PTC India surged by over 8% to Rs89.7 after the company announced its plans to set up a US$1bn equity fund to finance power projects in India, according to reports. The scrip touched an intra-day high of Rs91.4 and a low of Rs83 and recorded volumes of over 1.3mn shares on BSE.

Satyam Computer disclosed standalone unaudited financial results for the quarter ended December 31, 2008. The company’s Profit after tax for the October-December quarter stood at Rs1.81bn while the total income for the period was Rs22.06bn.

Operating profit (excluding other income) for the third quarter of FY09 is Rs3.64bn, while the operating profit margin is 15.87%. The PBIDT for the quarter stood at Rs2.76bn while the PBIDT margin was 12.51%.

The financial disclosure is part of the information Satyam had provided to select bidders, including Venturbay Consultants Pvt Ltd (the acquirer) and Tech Mahindra (the Person Acting in Concert), in connection with the bid process followed by the company to select a strategic investor. Satyam had provided access to certain non- public information to facilitate price recovery as the publicly available information about the company.

Satyam shares were locked at 10% upper circuit at Rs66.80 after hitting an intra-day high of Rs66.80 and a low of Rs58.20 and recorded volumes of over 10mn shares on BSE.

Shares of Tech Mahindra rallied by over 25% to Rs744 after hitting an intra-day high of Rs758 and a low of Rs575 and recorded volumes of over 2.4mn shares on BSE.

After staging a thumping return on the bourses, the bulls will look to build don to their upswing provided the global markets support. However, one must not forget that most of the anticipated recovery has already been discounted; this reduces the scope for a huge further rally though the bias remains positive. Technically speaking, the Nifty co9uld face crucial resistance at 4620-50 levels. Whereas, on the lower side, Nifty could get support at around 4375-4365 levels.

SGX Nifty Live Update - June 10 2009

4,571.0 +12.5

FIIs continue buying

Inflow of Rs 294.90 crore on 8 June 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 294.90 crore on Monday, 8 June 2009, much lower than Rs 1,417.40 crore on Friday, 5 June 2009.

FII inflow of Rs 294.40 crore on 8 June 2009 was a result of gross purchases Rs 2694.10 crore and gross sales Rs 2399.20 crore. The BSE Sensex lost 437.63 points, or 2.9%, to 14,665.92 on that day.

FII inflow in June 2009 totaled Rs 2,893.90 crore (till 8 June 2009). FII inflow in calendar year 2009 totaled Rs 24,213.30 crore (till 8 June 2009).

There are a total of 1661 foreign funds registered with the Securities & Exchange Board of India (Sebi).

RIL June 2009 futures at premium

Turnover rises

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.

Reliance Industries (RIL) June 2009 futures were at premium at 2281.70 compared to the spot closing of 2272.15.

Jaiprakash Associates June 2009 futures were at premium at 226 compared to the spot closing of 224.20.

Tata Steel June 2009 futures were near spot price at 438 compared to the spot closing of 438.20.

In the cash market, the S&P CNX Nifty surged 121.05 points or 2.73% at 4550.95.