Grey Market is back with Mahindra Holidays

With the opening of the initial public offer (IPO) of Mahindra Holidays and Resorts today, the grey market in Ahmedabad seems to have revived after a gap of more than a year.
However, the grey market activity is limited as investors are treading cautiously after the Reliance Power IPO.

Mahindra Holidays has fixed the price band at Rs 275-325 per share. In the grey market, it is drawing a premium of around Rs 45-50 per share. Also, investors are being offered Rs 2,000 for filing a form of Rs 1 lakh.

The Mahindra Holidays’ IPO comes after a long hiatus in the primary market. “It has sparked some activity in the grey market and there are a few inquires as well. However, the momentum is not like that of the Reliance Power IPO,” said sources.

Market players believe that in the current market condition, the price of Rs 275-325 is quite high. Retail investors are still apprehensive about the market.

During the Reliance Power IPO, many investors were disappointed as hundreds of trades in the grey the market had remained unsettled.

Considering all these factors, marketmen say that the activity in the grey market this time round is not much. However, it has in a way revived grey market activities as some deals are being struck in private. The grey market of Ahmedabad is considered a litmus test for IPOs. Rajkot is yet another major centre in Gujarat.

Sources expect the grey market may gather momentum in the coming days as IPOs of some other companies are also lined up. A few Ahmedabad-based companies are also toying with the idea of coming out with IPOs soon. These companies include Adani Power, Pradip Overseas and John Energy.

Adani Power has already set the ball rolling for its IPO. Earlier, Adani Power had planned a public offer in November last year, but the plan was deferred in the wake of unfavourable market conditions.

Pradip Overseas, a leading home linen producer and exporter, is weighing options to hit the markets with its IPO. “We had filed the draft red herring prospectus (DHRP) in December last year and now we are looking to come up with an IPO. The company has plans to hit the capital markets in October-November this year,” confirmed a senior official of the company on condition of anonymity.

John Energy too is gearing up to launch its IPO for raising Rs 100 crore.

via Business Standard

Mahindra Holidays - Grey Market Premium

Mahindra Holidays 275 to 325


Grey Market Premium at 38 to 40

Rishabhdev Techno 29 to 33


Grey Market Premium at 5 to 7

BSE Bulk Deals to Watch - June 24 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
24/6/2009 531223 ANJANI SYNTH ARVIND KALYANJI RAMBHIA S 63077 28.48
24/6/2009 532475 APTECH LTD PILOT CONSULTANTS LTD B 273000 152.99
24/6/2009 532475 APTECH LTD MACQUARIE BANK LIMITED S 261084 154.85
24/6/2009 500029 AUTOLITE INE SANTOSH INDUSTRIES LTD S 27620 21.15
24/6/2009 512149 AVANCE TECHN VIPUL B GONDALIYA B 25000 32.25
24/6/2009 512149 AVANCE TECHN CHANDRAKANT B SHAH S 28117 32.26
24/6/2009 511664 BGIL FL TEC JINESH BHATT B 61310 34.25
24/6/2009 511664 BGIL FL TEC TARUNKUMAR GURUCHARAN BRAHMBHATT S 48000 34.25
24/6/2009 511664 BGIL FL TEC PRARTHANA TARUNKUMAR BRAHMBHATT S 42000 34.25
24/6/2009 511628 BRESCON CORP I. TENABLE INDIA LTD B 17557 69.00
24/6/2009 531682 CAT TECHNOL S V ENTERPRISES B 219346 6.96
24/6/2009 531682 CAT TECHNOL S V ENTERPRISES S 223159 7.08
24/6/2009 511636 DJS STOCK SH BHANABHAI GANPAT PARMAR B 31200 32.98
24/6/2009 511636 DJS STOCK SH PADMAKANT DEVIDAS SECURITIES PVT LTD S 30600 33.00
24/6/2009 511636 DJS STOCK SH SHOHESH P SHAH S 103200 33.00
24/6/2009 532876 EVERONN SYS OPG SECURITIES P LTD B 75800 392.44
24/6/2009 532876 EVERONN SYS OPG SECURITIES P LTD S 75800 392.94
24/6/2009 532809 FSL BIRLA SUNLIFE INS CO LTD B 4500000 25.00
24/6/2009 532809 FSL WESTBRIDGE VENTURES I INVESTMENT HOLDINGS S 8100000 24.98
24/6/2009 523277 G V FILMS LT GOPAL DEVESH SONKIA E P LTD B 2220000 2.01
24/6/2009 523277 G V FILMS LT GOPAL DAS SONKIA S 2220000 2.01
24/6/2009 532318 GEMINI COMMU AMRUT SECURITIES LTD. S 513212 20.94
24/6/2009 531137 GEMSTONE INV HEMANT MADHUSUDAN SHETH S 30000 21.00
24/6/2009 532960 IB SECURITIE* DEUTSCHE SECURITIES MAURITIUS LIMITED B 2600000 43.10
24/6/2009 532960 IB SECURITIE* LISTED INVESTMENTS S 2600000 43.10
24/6/2009 531025 INCA FINLEAS R R P MANAGEMENT SERVICES P.LTD. S 15000 130.05
24/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 57417 41.56
24/6/2009 522259 KALIN RAIL N BP FINTRADE PRIVATE LIMITED B 69055 229.38
24/6/2009 522259 KALIN RAIL N BP FINTRADE PRIVATE LIMITED S 75584 228.99
24/6/2009 517569 KEI INDUSTRI DEUTSCHE SECURITIES MAURITIUS LIMITED B 1969750 27.10
24/6/2009 517569 KEI INDUSTRI LISTED INVESTMENTS S 1969750 27.10
24/6/2009 513693 KIC METALIKS CARWIN MERCANTILES PVT LTD B 50868 26.14
24/6/2009 531269 KLG SYSTEL DEUTSCHE SECURITIES MAURITIUS LIMITED B 248591 159.50
24/6/2009 531269 KLG SYSTEL LISTED INVESTMENTS S 248591 159.50
24/6/2009 531731 KUVAM INTL MUKESH KHANTILAL SHAH B 25000 8.25
24/6/2009 531731 KUVAM INTL NAYNA MUKESH SHAH B 25000 8.25
24/6/2009 531731 KUVAM INTL SAHIL KAKKAR S 20000 8.25
24/6/2009 531731 KUVAM INTL SANJEEV KUMAR GUTPA S 18000 8.25
24/6/2009 531731 KUVAM INTL RAJINDER BANSAL S 38700 8.25
24/6/2009 531996 ODYSSEY CORP BHROSEMAND COMMODITIES PVT. LTD. B 26899 22.70
24/6/2009 531996 ODYSSEY CORP KIRIT V DAVE S 26899 22.70
24/6/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD B 37001 62.65
24/6/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PVT LTD S 36999 62.92
24/6/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 49226 56.02
24/6/2009 526133 SUPERTEX IND PATEL SHAILESH SOMABHAI B 89298 56.22
24/6/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 64783 56.29
24/6/2009 530477 VIKRAM THERM BAKUL RAMNIKLAL PAREKH B 21500 16.80
24/6/2009 530477 VIKRAM THERM DHRUPAL CHANDRAVADAN MUCHHALA S 21500 16.80
24/6/2009 531249 WELL PACK PA PANDYA HARDIK M B 27409 164.08
24/6/2009 531249 WELL PACK PA FURIYABHAVYAMANILAL B 27000 164.00
24/6/2009 531249 WELL PACK PA AMAR PREMCHAND WALMIKI S 34000 164.67

NSE Bulk Deals to Watch - June 24 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
24-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,197576,890.55,-
24-JUN-2009,ECEIND,ECE Industries Limited,DIPLOMAT LIMITED,BUY,59048,135.00,-
24-JUN-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,114089,390.28,-
24-JUN-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,BUY,133090,389.15,-
24-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4243352,54.20,-
24-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,BUY,60774,230.35,-
24-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,48571,230.92,-
24-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,VAIBHAV DOSHI,BUY,67068,232.58,-
24-JUN-2009,RUCHINFRA,Ruchi Infrastructure Ltd.,MAVI INVESTMENT FUND LTD DEUTSCHE BANK,BUY,5015000,34.00,-
24-JUN-2009,USHAMART,Usha Martin Limited,PRAJEEV INVESTMENTS LIMITED,BUY,1345000,54.00,-
24-JUN-2009,USHAMART,Usha Martin Limited,PRAJEEV INVESTMENTS LTD,BUY,1345000,54.00,-
24-JUN-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,199576,891.06,-
24-JUN-2009,APTECHT,Aptech Limited,MACQUARIE BANK LIMITED,SELL,589120,155.28,-
24-JUN-2009,AUROPHARMA,Aurobindo Pharma Ltd.,REDDY RAMAPRASAD PENKA VENKATA,SELL,350000,460.18,-
24-JUN-2009,ECEIND,ECE Industries Limited,JYOTI VARDHAN SONTHALIA,SELL,59546,135.06,-
24-JUN-2009,EVERONN,Everonn Systems India Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,114089,391.39,-
24-JUN-2009,EVERONN,Everonn Systems India Lim,MBL & COMPANY LTD.,SELL,134690,389.44,-
24-JUN-2009,EVINIX,Evinix Accessories Limite,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,895000,3.39,-
24-JUN-2009,FSL,Firstsource Solutions Lim,WESTBRIDGE VENTURE I,SELL,5754653,24.80,-
24-JUN-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4243352,54.19,-
24-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,SELL,77956,229.45,-
24-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,66290,229.35,-
24-JUN-2009,KALINDEE,Kalindee Rail Nirman (Eng,VAIBHAV DOSHI,SELL,67068,230.85,-
24-JUN-2009,KHANDSE,Khandwala Sec. Ltd,BAJAJ AUTO LTD.,SELL,71930,26.02,-
24-JUN-2009,RUCHINFRA,Ruchi Infrastructure Ltd.,SHIVA FOUNDATION,SELL,5000000,34.00,-
24-JUN-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,DEUTSCHE SECURITIES MAURITIUS LTD.,SELL,1697095,46.07,-
24-JUN-2009,USHAMART,Usha Martin Limited,BRIJ INVESTMENTS PVT.LTD.,SELL,1345000,54.00,-
24-JUN-2009,USHAMART,Usha Martin Limited,PRASHANT INVESTMENTS LIMITED,SELL,1345000,54.00,-

Post Session Commentary - June 24 2009

Indian market gathered most of momentum after mid session to end the day in positive terrain. Besides, volatility also ruled the market due to of expiry of June futures and options contracts due tomorrow, 25th June 2009. Benchmark indices recovered from initial losses and picked up momentum along with other Asian stocks. In addition, investors revealed positive attitude to support the market tracking firm trading in European markets along with higher US index futures. BSE Sensex ended above 14,400 level and NSE Nifty closed around 4,300 mark.

The market today opened above the previous closing in line with other Asian markets. However, the US Markets closed mixed on Tuesday after a sharp choppy session on the back of the home sales report. The annualized existing home sales for May stood at 4.77 million units, which is the highest rate since October and up 2.4% from the previous month but less than the expectations of a 3% month-over-month increase. Domestic market suddenly lost ground and slipped lower on some selling pressure. Worries about agricultural production due to uncertainty existing in monsoon kept the sentiments weak. Further, benchmark indices managed to gain impetus and witnessed recovery from day’s low amid positive cues from the global markets. Finally market closed with gains backed by buying support emerged mostly during second half of trading. From the sectoral front, Power, Consumer Durables, Pharma, Realty, Auto Teck and Consumer Durables stocks contributed to most of the buying support. BSE Mid Cap and the Small Cap indices also remained in limelight during the trading session. However, Bank stocks were unable to gain favour from the market.

Among the Sensex pack 24 stocks ended in green territory and 6 in red. The market breadth indicating the overall health of the market remained positive as 1801 stocks closed in green while 797 stocks closed in red and 70 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 98.72 points at 14,422.73 and NSE Nifty ended up by 45.95 points at 4,292.95. BSE Mid Caps and Small Caps closed with gains of 117.50 and 126.63 points at 5,059.84 and 5,719.03 respectively. The BSE Sensex touched intraday high of 14,479.82 and intraday low of 14,207.02.

Gainers from the BSE Sensex pack are JP Associates (6.01%), Sun Pharma (5.00%), TCS Ltd (4.33%), Tata Motors (4.20%), Grasim Industries (4.20%), ACC Ltd (3.24%), Reliance Infra (2.88%), M&M Ltd (2.84%), Hindalco (2.76%), TCS Ltd (2.67%), ONGC Ltd (2.39%) and RCom (1.82%).

Losers from the BSE Sensex pack are HDFC Bank (1.97%), HDFC (1.96%), ICICI Bank (1.16%), Sterlite Industries (1.00%), Reliance (0.79%) and Ranbaxy Lab (0.29%).

On the global markets front the Asian markets which opened before the Indian market, ended higher. Shanghai Composite, Hang Seng Nikkei 225, Straits Times index and Seoul Composite closed up by 29.60, 353.78, 40.71, 52.86 and 3.25 points at 2,922.30, 17,892.15, 9,590.32, 2.278.96 and 1,363.79 respectively.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading higher by 43.14 points at 4,750.29 and in London FTSE 100 is trading up by 13.89 points at. 4,243.91.

The BSE Power index increased by (2.82%) or 78.89 points to close at 2,877.06. Main gainers are Torrent Power (16.05%), Suzlon Energy (9.07%), GVK Power (5.52%), Crompton Greaves (4.99%) and ABB Ltd (4.58%).

The BSE Capital Goods ended up by (2.52%) or 309.27 points at 12,567.68. Gainers are Suzlon Energy (9.07%), Punj Lloyd (6.17%), Crompton Greaves (4.99%), Gammon Indi (4.98%) and ABB Ltd (4.58%).

The BSE Pharma stocks also gained (2.39%) or 86.84 points to close at 3,717.64. Major gainers are Biocon Ltd (8.82%), Dishman Pharma (8.16%), Wockhardt Ltd (7.82%), Glenmark Pharma (6.54%) and Aurobindo Pharma (5.04%).

The BSE Realty index increased by (2.07%) or 66.06 points at 3,251.03 on hopes that stability at the Centre will attract more money from foreign investors into the sector. Indiabull Real (6.87%), Akruti City (5.00%), Penland Ltd (3.54%), Ansal Infra (2.84%) and Omaxe Ltd (2.66%) ended in positive territory.

The BSE Auto index gained (1.64%) or 76.40 points to close at 4,721.72 on expectations that sales will rise if economy improves. Gainers are MRF Ltd (4.70%), Tata Motors (4.20%), Apollo Tyre (3.28%), Ashok Leyland (3.25%) and Gammon Indi (3.07%).

The BSE Teck index advanced by (1.64%) or 42.05 points at 2,613.40. Scrips that gained are Tata Teleser (10.04%), Aptech Ltd (8.12%), Deccan Chr (7.83%), NIIT Ltd (7.77%), Tel Eighteen (6.78%) and Balaji Tele (6.60%).

Educomp Solutions surged 11.18%. The company today announced an agreement to set up a joint venture with Pearson, the International Education and Information Company offering skills training in India, one of the world''s fastest growing labour markets.

ABB Ltd gained 4.58%. The company has won orders wroth Rs 220 crore form Tata Projects Limited to provide power products and solutions for a super-critical coal-fired power plant under construction in the southern Indian state of Andhra Pradesh.

Religare Enterprises Ltd is ended up by 0.95%. The company has announced the following results for the quarter & year ended March 31, 2009. The Company has posted a net profit of Rs 58.160 million for the quarter ended March 31, 2009 as compared to Rs 110.689 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 154.621 million for the quarter ended March 31, 2008 to Rs 151.218 million for the quarter ended March 31, 2009.

IRB Infrastructure Developers advanced 3.78% after it emerged as the lowest bidder for a national highway project in Rajasthan estimated at Rs. 1,500 crore.

Flawless Diamond (India) Ltd zoomed 4.93% after the company said its board will meet on 1 July 2009 to consider stock split.

Aurobindo Pharma Ltd gained 5.04% after the company secured nod from South Africa''s Medicines Control Council to manufacture and market five more products in that country.

Dr Reddy''s Laboratories Ltd gained 0.11% after the company launched Bispec, a drug that is useful for the management of over active bladder, in the domestic market.

Reliance Industries Ltd slipped 0.79% on reports that it will incur a loss if it sells natural gas from its D6 block in the Krishna-Godavari basin at $2.34 per million British thermal unit.

Power stocks rally amid volatility

The market failed to hold on to its morning gains and buckled under sustained selling pressure in noon trades, with the index gyrating by a huge 273 points during intra-day trades. Shrugging off the flat US and European indices, the Sensex took a cue from positive Asian indices in early trades and rallied sharply on substantial buying support to touch the day's high of 14480, up 156 points over the last close of 14324. However, the ongoing bearish trend pulled the market down with the index plunging deep into the red to touch an intra-day low of 14207, down 117 points from the last close. The Sensex managed to recover some losses towards the close and ended the session below the 14450 mark at 14423, up 99 points, while Nifty advanced 46 points to close at 4293.

The breadth of the market was positive, with the gainers outpacing the losers by 2.25:1 on the BSE. Of the 2,668 stocks traded on the BSE, 1,801 stocks advanced, 797 stocks declines and 70 stocks ended unchanged. Most of the sectoral indices on the BSE remained above their yesterday’s close. BSE Power gained 2.82% followed by BSE CG (up 2.52%), BSE HC (up 2.39%) and BSE Realty (up 2.07%). Only BSE Bankex closed with marginal losses.

Among the Sensex stocks, JP Associates was the leading gainer, soaring 6.01% to Rs213.40 for the day. Sun Pharmaceutical Industries advanced 5% to Rs1345.15, Tata Consultancy Services jumped 4.33% to Rs382.05, Tata Motors shot up 4.20% to Rs357, Grasim Industries added 4.20% at Rs2,322.25, while ACC, Reliance Infrastructure, Mahindra & Mahindra, Hindalco Industries and Bharat Heavy Electricals closed with gains of 2-3% each. Among laggards, HDFC Bank tumbled 1.97% to Rs1,456.35, HDFC shed 1.96% to Rs2,309.25 and ICICI Bank declined 1.16% to Rs689.35. Sterlite Industries, Reliance Industries and Ranbaxy Laboratories lost 1% each.

However, majority of power stocks logged significant gains. Torrent flared 16.05% to Rs164.50, Suzlon Energy advanced 9.07% to Rs116.70, GVK Power & Infrastructure added 5.52% to Rs42.05, Crompton Greaves gained 4.99% to Rs290.25 and Neyveli Lignite was up nearly 4.87% to Rs128.25.

Over 4.70 crore shares of Reliance Industries changed hands on the BSE followed by Suzlon Energy (2.30 crore shares), Reliance Natural Resources (2.29 crore shares), Unitech (1.89 crore shares) and Firstsource Solutions (1.64 crore shares).

Valuewise, Suzlon Energy clocked a turnover of Rs268 crore on the BSE followed by Reliance Industries (Rs210 crore), Reliance Natural Resources (Rs209 crore), Educomp Solutions (Rs180 crore) and Reliance Capital (Rs173 crore).

Nifty June 2009 futures at premium

Turnover declines

Nifty June 2009 futures were at 4305, at a premium of 12.05 points as compared to the spot closing of 4292.95. Turnover in NSE's futures & options (F&O) segment was Rs 82,940.03 crore, lower than Rs 85,073.05 crore on Tuesday, 23 June 2009.

The near-month June 2009 F&O contract will expire tomorrow, 25 June 2009. Rollover in the Nifty futures was 29.19% as at end of Tuesday's (23 June 2009) trade.

ICICI Bank June 2009 futures were at premium at 692.50 compared to the spot closing of 689.40.

Reliance Industries June 2009 futures were at discount at 2001 compared to the spot closing of 2002.5.

Unitech June 2009 futures were near spot price at 78.15 compared to the spot closing of 77.95.

In the cash market, the S&P CNX Nifty rose 45.95 points or 1.08% at 4292.95.

Mahindra Holidays IPO subscribed 0.40 times by day two

Receives bids for 36.93 lakh shares as against 92.65 lakh shares on offer

Mahindra Holidays & Resorts India initial public offer saw modest response on day two. It was subscribed by 0.40 times (by 16:00 IST). The issue which opened for subscription on 23 June 2009 got bids for 36.93 lakh shares as against 92.65 lakh shares on offer.

The company's 92.65 lakh public issue representing 11% of the post-issue paid up capital will remain open till 26 June 2009.

The IPO proceeds will be utilised in expanding current properties and adding five new properties at Kumbalgarh in Rajasthan, Kadambakkam in Tamil Nadu, Binsar in Uttaranchal, Theog in Himachal Pradesh, and Tungi in Maharashtra.

Mahindra Holidays & Resorts India, a unit of Mahindra & Mahindra, had raised nearly Rs 120 crore by selling 2% stake to State Bank of India and 1% stake to Jacob Ballas India Fund in February 2008. The transaction had taken place at Rs 479 a share.

Mahindra Holidays & Resorts India runs the shared vacation home business, Club Mahindra Holidays. India's largest tractor maker by sales Mahindra & Mahindra holds 93.64% in the company.

Small-cap, mid-cap indices outperform Sensex

The barometer index the BSE Sensex snapped last two days' losses on positive cues from the global markets. Realty, capital goods and power stocks rose even as banking stock fell. Index heavyweight Reliance Industries was weak. The BSE 30-share Sensex rose 98.72 points or 0.69%, off close to 55 points from the day's high and up close to 215 points from the day's low. The market breadth, indicating the overall health of the market, was strong.

But the market was volatile as traders rolled over positions from June 2009 series to July 2009 ahead of the expiry of June 2009 contracts tomorrow, 25 June 2009. Rollover in the Nifty futures was 29.19% as at end of Tuesday's trade. The rollover was 34.47% in Mini Nifty futures. Among individual stocks, rollover has been low in Wipro, Ranbaxy Lab, GAIL India, Reliance Capital and Steel Authority of India.

The key benchmark indices edged higher in early trade as Asian stocks rose. However, the market soon pared gains on worries about agricultural production due to delay in monsoon. The market weakened in morning trade with the Sensex hitting intraday low before cutting losses. The Sensex regained positive zone in early afternoon trade. The barometer index fluctuated between gains and losses in afternoon trade. The market firmed up later with the Sensex hitting intraday high in mid-afternoon trade. The market pared gains in late trade.

The Sensex had lost 197.88 points or 1.36% in the past two trading sessions to 14,324.01 on 23 June 2009 from its close of 14,521.89 on 19 June 2009. The market may remain volatile tomorrow, ahead of the expiry of June 2009 derivatives contracts.

Prithviraj Chavan, the Minister of Science and Technology, said in a press conference, shortly after trading hours today, 24 June 2009, that India's monsoon, which runs from June to September, will be below normal this year. Monsoon rains will be 93% of long term average. Rain in the crucila sowing month of July will be 93% of long term average. The rains are likely to pick up in August in which month rains will be 101% of long term average, the minister said.

The June-September monsoon rains are a major influence on the economy, as two-thirds of Indians depend on agriculture and large areas of the vast south Asian country suffer from a lack of modern irrigation facilities. Below normal monsoon rains is bad news for policy makers, who were upbeat about the prospects of the farm sector, seen as a key motor for national demand in the economy. The farm sector accounts for nearly 17 percent of India's gross domestic product and provides a livelihood for most of the 1.1 billion population. Poor monsoon rains could dent rural demand, hurt corporate profitability and undermine sentiment in financial markets.

Overseas stocks were supported the domestic bourses. European stocks edged higher after fluctuating between gains and losses. Key benchmark indices in France, Germany and UK were up by between 0.11% to 0.75%. Worries that higher interest rates could choke off growth appeared to be on the backburner on Wednesday, with companies normally tied to growth, such as mineral extractors and banks, moving higher.

Asian stocks rose in choppy trade as gains among technology and energy shares overshadowed losses in financials. Key benchmark indices in China, South Korea, Hong Kong, Taiwan and Singapore were up by between 0.24% to 2.95%.

Japan's Nikkei rose 0.43% even after Japan's export slump deepened in May 2009, casting doubt on the nation's growth prospects as the economy struggles to emerge from its worst postwar recession. Shipments abroad dropped 40.9 % from a year earlier, more than April's 39.1 % decline, the Finance Ministry said today in Tokyo.

Trading in the US index futures indicated the Dow could rise 28 points today, 24 June 2009.

US stocks ended mixed on Tuesday. The market opened higher, but slipped after a report showed home sales rose but not as much as expected. Bank stocks gained. The Dow slipped 16.10 points, or 0.2%, to 8,322.91. The S&P 500 index rose 2.06 points, or 0.2%, to 895.10, and the Nasdaq composite index fell 1.27 points, or 0.1%, to 1,764.92.

Global investors are awaiting the outcome of the US Federal Reserve's two-day policy meet which ends today, 24 June 2009. Although the Federal Reserve is expected to keep interest rates unchanged, investors will examine the post-meeting statement for clues as to how long the interest rates will remain at the current near zero. Investors also want to know whether the Fed policymakers will say the US economy is recovering or still in need of aid.

US stocks have lost ground several times in the last month on fears that rising interest rates and inflation would upend an economic recovery.

The Paris-based Organization for Economic Cooperation and Development on Wednesday said the global recession is near its bottom, but warned that a recovery is likely to be "weak and fragile."

The World Bank on Monday predicted that the global economy will shrink 2.9% this year, a deeper fall than the 1.7% contraction it predicted in March 2009.

For India though, the World Bank has raised India's growth forecast for 2009 to 5.1% from earlier projection of 4%. It has projected an 8% growth for India in 2010 which will make it the fastest growing economy in the world in 2010, overtaking China's expected 7.7% growth relative to the robust performance prior to the current crisis.

On the flip side, the latest data showed the Consumer Price Index (CPI), inflation based on rural and agricultural workers rose to 10.2% in May 2009. The higher consumer inflation may cause Reserve Bank of India to reverse the expansionary monetary policy and might even curb the central government's spending plans which may cause hindrance in efforts to boost the slowing economy.

India's fiscal deficit in April 2009 was at Rs 54,158 crore ($11 billion), or 16.3 % of the full-year target, the government said in a statement on Tuesday.

The next major trigger for the market is the Union Budget 2009-2010. Many equity analysts have been raising earnings forecasts of India Inc on hopes that the new government will provide thrust on the infrastructure sector and push economic reforms to boost growth. Citigroup expects the economy to grow by 6.8% in the year ending March 2010 (FY 2010) and 7.8% in the year ending March 2011 (FY 2011).

Finance Minister Pranab Mukherjee would present the budget on 6 July 2009. The Railway Budget will be presented on 3 July 2009 and the Economic Survey would be presented on 2 July 2009.

A comfortable victory last month for the Congress-led United Progressive Alliance (UPA) government in elections for the 15th Lok Sabha has raised hopes for economic reforms. Reforms virtually came to a halt in the past five years of the Congress-led alliance government at the centre, when the Communists provided support to the government from outside for a large part of the five-year term. Left parties are opposed to economic reforms.

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.

But foreign funds sold shares recently after aggressively buying during the past three months or so. Foreign funds sold shares totaling Rs 2,567.10 crore in seven trading sessions from 15 June 2009 to 23 June 2009. FII inflow in June 2009 totaled Rs 3,565.20 crore (till 23 June 2009). FII inflow in calendar year 2009 totaled Rs 24,884.60 crore (till 23 June 2009).

India's biggest domestic institutional investors viz. the Life Insurance Corporation of India (LIC) proposes to maintain its annual investments in the equity market at last financial year's levels at Rs 40,000 crore, LIC chairman T S Vijayan said on Tuesday.

Meanwhile, the data on advance tax payments reported last week for the first quarter of the financial year indicated banks and fast moving consumer goods (FMCG) firms have done well in the first quarter, but realty companies continue to perform badly. Automobile sector have also paid higher taxes this year, show the revenue department's initial estimates. Indian companies paid around Rs 23,000 croe in advance tax for the first quarter of FY 2010, almost flat at the previous year's receipts.

The BSE 30-share Sensex was up 98.72 points or 0.69% to 14,422.73. The Sensex rose 155.81 points at the day's high of 14,479.82 in mid-afternoon trade. At the day's low of 14,207.02, the Sensex fell 116.99 points in mid-morning trade.

The S&P CNX Nifty was up 45.95 points or 1.08% to 4,292.95. Nifty June 2009 futures were at 4305, at a premium of 12.05 points as compared to the spot closing of 4292.95. Turnover in NSE's futures & options (F&O) segment was Rs 82,940.03 crore, lower than Rs 85,073.05 crore on Tuesday, 23 June 2009.

BSE clocked a turnover of Rs 5,703 crore, higher than Rs 5,684.37 crore on Tuesday, 23 June 2009.

The barometer index the BSE Sensex is up 4,775.42 points or 49.5% in calendar year 2009 as on 24 June 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 6,262.33 points or 76.74% as on 24 June 2009.

Coming back to today's trade, the market breadth was strong. On BSE, 1,792 shares rose as compared with 799 shares that declined. A total of 71 shares remained unchanged.

From the 30 share Sensex pack 24 stocks rose and rest fell.

The BSE Mid-Cap index was up 2.38%. The BSE Small-Cap index was up 2.26%.

The BSE Power index (up 2.82%), the BSE Capital Goods index ( up 2.52%), the BSE Healthcare index (up 2.39%), the BSE Realty index (up 2.07%), the BSE Auto index (up 1.64%), the BSE TECk index (up 1.64%), the BSE Consumer Durables index (up 1.61%), the BSE IT index (up 1.42%), the BSE FMCG index (up 1.16%), the BSE Metal index (up 1.14%), outperformed the Sensex.

The BSE Bankex (down 0.12%), the BSE Oil & Gas index (up 0.03%), the BSE PSU index (up 0.52%), underperfomed the Sensex.

India's largest private sector firm by market capitalisation Reliance Industries (RIL) fell 0.79% to Rs 2,000.10 on reports Reliance Industries will incur a loss if gas from the D-6 block in the Krishna-Godavari basin is sold at $2.34 per million British thermal units, as ordered by the Bombay High Court. The stock was volatile. It hit a high of Rs 2,034.80 and a low of Rs 1,973.10.

The RIL stock had tumbled in the past few days hit by an unfavourable court ruling on gas sales. The Bombay High Court has directed RIL and Reliance Natural Resources (RNRL) to sign gas supply deal. The court has asked RIL to supply 28 million metric standard cubic meters per day (mmscmd) of gas for 17 years at $2.34 per million metric British thermal unit (mmbtu) to RRNL. This is much lower than the price fixed by the government for gas sale from the RIL block in the KG basin at $4.2 million per metric British thermal unit. According to analysts the lower gas sale price will result in lower-than-expected earnings from gas sales for RIL.

In January 2009, the Bombay High Court had issued an interim order saying Reliance Industries was allowed to sell gas at $4.2 per million British thermal units from its KG-D6 block in the Krishna Godavari basin off eastern India, pending a final judgment.

The RIL stock had risen 3.26% yesterday after NTPC Chairman R S Sharma said the company is open to buying Reliance Industries' gas at $4.2 per million metric British thermal unit (mmBtu) except for the plants under dispute in the court.

India's largest state-run oil exploration firm by sales ONGC rose 2.39%. The company announced after market hours today that its net profit fell 16% to Rs 2,206.76 crore on 16.85% fall in total income to Rs 15,113.13 crore in Q4 March 2009 over Q4 March 2008 .

Recent reports said ONGC has struck oil and gas in three new blocks. One of these blocks, off the eastern coast of India, could prove as rich as the Reliance Industries' D-6 block.

Capital goods stocks rose on hopes the government may boost spending on the infrastructure sector including increase in power generation. Larsen & Toubro, Thermax, ABB, Punj Lloyd, BEML rose by between 1.27% to 6.17%.

India's largest electric equipment maker Bharat Heavy Electricals Limited (BHEL) rose 2.67% on reports it has secured an order worth Rs 105 crore from Indian Oil Corporation (IOC) for setting up a captive power plant at its Barauni Refinery Complex.

Power stocks gained on hopes of a possible thrust on power generation in the Union Budget 2009-2010. Tata Power Company, Reliance Power, Reliance Infrastructure, Power Grod Corporation of India, NTPC rose by between 0.35% to 2.88%.

Construction and cement stocks rose on hopes the government may boost spending on the infrastructure sector. IVRCL Infrastructure & Projects, Gammon India, Hindustan Construction Company, Jaiprakash Associates, Valecha Engineering rose by between 0.59% to 7.39%.

Among cement shares, ACC, Grasim Industries, India Cements, Ultratech Cements, Ambuja Cements rose by between 3.24% to 5.54%.

Rate sensitive realty stocks rose on expectations that stability at the Centre will attract more money from foreign investors into the sector which in turn will boost growth. DLF, Indiabulls Real Estate, Unitech, Omaxe, Akruti City rose by between 1.23% to 6.87%.

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.

Bank stocks fell after American depository receipts (ADR) fell overnight. India's second largest private sector bank by operating income HDFC Bank fell 1.97% as its American depository receipt (ADR) fell 3.24% on Tuesday. HDFC Bank's advance tax payment rose 16.28% to Rs 250 crore in Q1 June 2009 over Q1 June 2008.

India's biggest dedicated housing finance firm by operating income Housing Development Finance Corporation (HDFC) fell 1.96%.

HDFC and HDFC Bank recently reduced interest rates on term deposits by up to 0.25%.

India's largest private sector bank by net profit ICICI Bank fell 1.16%. Its ADR fell 0.67% on Tuesday. ICICI Bank's advance tax payment rose 7.64% to Rs 366 crore in Q1 June 2009 over Q1 June 2008. ICICI Bank is reportedly taking cost control measures that could save the bank up to Rs 1300 crore in the year to March 2010.

But, India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.48% on reports it is looking at buying a mid-sized overseas bank in a deal worth $1.5-$2 billion.

Recently, the boards of State Bank of India and its associate State Bank of Indore have approved an acquisition of the latter by the former. State Bank of India has already absorbed State Bank of Saurashtra and has said it is progressively looking to merge its other associate banks.

SBI aims to keep interest margins steady and has no plans for any rights issue or share sale in any unit, Chairman O.P. Bhatt said on Friday 19 June 2009.

Auto stocks rose on hopes sales will rise if economy recovers. India's largest car maker by sales Maruti Suzuki India rose 0.74%. India's largest motorbike maker by sales Hero Honda Motors rose 0.39%.

India's largest commercial vehicle maker by sales Tata Motors, rose 4.2% after the company said on Tuesday that 55,021 applicants for its Nano who missed out on an allotment of the first 100,000 units of the small car had retained their bookings. The company said it expects to complete delivery of the first 100,000 Nanos, the world's cheapest car, by the last quarter of 2010. The company raised $500 million in April 2009 from consumer bookings for the Nano.

India's largest tractor maker by sales Mahindra & Mahindra rose 2.84%.

Outsourcing focussed IT stocks rose on reports India's top two software exporters TCS and Infosys are seeing the first signs of recovery in order flow. India's second largest software firm by sales Infosys Technologies rose 0.75% as its American depository receipt (ADR) rose 1.14% on Tuesday.

India's largest software services exporter by sales TCS rose 4.33%. TCS's advance tax payment fell 33.33% to Rs 50 crore in Q1 June 2009 over Q1 June 2008. India's third largest software services exporter by sales Wipro rose 1.23%. Its ADR rose 0.56% on Tuesday.

Some healthcare stocks rose on hopes the government will give primary importance to healthcare segment and health of citizens. Cipla, Biocon, Ranbaxy's Laboratories, Dr Reddy's Laboratories, Lupin, Pfizer, rose by between 0.11% to 8.82%.

India's largest aluminum producer by sales Hindalco Industries, rose 2.76% after the government imposed a safeguard duty on aluminium products imported from China in a bid to safeguard the interest of domestic producers. But, India's second largest aluminum producer by sales National Aluminum Company fell 1.96%.

After this duty imposition, aluminium foils will attract a safeguard duty of 25-30%, and aluminium sheets will attract a duty of 12-14%. The duty would be effective retrospectively from 23 March 2009 to 22 March 2010.

Safeguard duties are typically imposed over a shorter time period to safeguard the domestic industry against cheap imports. Lately, Indian markets were flooded with the import of cheap aluminium products from China, thus threatening the domestic producers, who are already under pressure due to the demand slowdown and sharp fall in aluminium prices.

Leading Indian telecom players Bharti Airtel and Reliance Communications rose by between 1.34% to 1.82% on recent reports they have joined the race to acquire the African business of Kuwait-based Zain Group.

FMCG stocks rose on hopes of government's rural focus in the forthcoming budget. FMCG firms derive a substantial revenue from rural markets. ITC, Hindustan Unilever, United Spirits, Nestle India, Marico, Britannia Industries rose by between 0.89% to 4.85%

Sugar stocks rose on reports global sugar prices have touched the highest level in three years. Bajaj Hindustan, Balrampur Chini, Shree Renuka Sugars rose by between 4.97% to 7.74%.

Shares of tyre companies rose on expectation of some favourable announcements in the Union Budget 2009-2010 on 6 July 2009. MRF, CEAT and Apollo Tyres rose by between 3.28% to 4.99%.The tyre industry wants reduction in customs duty on inputs as well as excise rebate on domestically manufactured radial truck and bus tyres to improve competitiveness against imports.

Cals Refineries clocked the highest volume of 2.77 crore shares on BSE. Suzlon Energy (2.37 crore shares), Reliance Natural Resources (2.29 crore shares), Unitech (1.89 crore shares) and Firstsource Solutions (1.64 crore shares) were the other volume toppers in that order.

Suzlon Energy clocked the highest turnover of Rs 277.47 crore on BSE. Reliance Industries (Rs 209.64 crore), Reliance Natural Resources (Rs 208.28 crore), Educomp Solutions (Rs 186.93 crore) and Reliance Capital (Rs 174.32 crore) were the other turnover toppers in that order.

Flat to positive opening

The market is likely to remain volatile ahead of derivatives expiry for June series and weak global markets may put pressure on domestic indices in early trades. However, presence of strong bullish sentiment may help the market to turn positive. The Nifty could test higher levels at 4280 and may dip around 4200, while the Sensex has a likely support at 14200 and may face resistance at 14450.

US indices finished on a flat note on Tuesday. While the Dow Jones ended in a negative at 8323 declined by 16 points, the Nasdaq down by 2 points at 1765.

Indian floats trading on the US bourses were traded mixed. MTNL was the lead performer and soared 3.99% while Dr Reddy rose over 2.23%. VSNL, Infosys, Wipro and Tata Motors ended up each. However, Satyam, ICICI Bank, HDFC Bank, Rediff, and Patni Computers ended with steady losses.

Crude oil prices inched higher in the US market, with the Nymex light crude oil for June delivery adding $1.74 to close at $69.24 a barrel. In the commodity space, the Comex gold for August series rises $3.30 to settle at $924.30.

Pre Session Commentary - June 24 2009

Today domestic markets are likely to open negative as the US markets traded choppy and majority of Asian markets are trading mixed. The sentiments are weak across the globe and majority of Asian markets are trading paltry. Due to lack of news there could be a lackluster trade in the domestic arena as well. Broad based selling pressure could hamper the sentiments further.

On Tuesday, the domestic markets closed flat after a late recovery. The markets opened with a blood bath on the back of weak global cues and kept gyrating in the southward until mid trading session. However the positive opening of the European markets helped majority of frontline stocks to pull back the loss. Energy stocks like ONGC and Reliance Industries closed with remarkable gains of 3.3% and 3.26% at Rs. 1,026.45 and Rs. 2,016.05 respectively. Sectors like Oil & Gas, PSU and Power were the only gainers with 2.62%, 2.11% and 1.31% respectively. Mid cap and Small cap also managed to close flat towards the end. We expect the markets to be trading volatile.

The BSE Sensex closed flat at 14,324.01 and NSE Nifty ended with a marginal gain of 11.75 points at 4,247.00. BSE Mid Caps closed with a marginal gain of 11.83 points however Small Caps closed with a minimal loss of 7.17 points at 4,942.34 and 5,592.40 respectively. The BSE Sensex touched intraday high of 14,394.19 and intraday low of 14,016.95.

On Tuesday, the US Markets closed flat after a choppy trade. The May existing home sales data was the news of the day however it disappointed investors. The annualized existing home sales for the month of May recorded at 4.77 million units, which is the highest rate since October. However the month-over-month growth rate was at 2.4% from the previous month below the expected 3.0% month-over-month increase. The financial stocks gained by 1.7% as the widely followed analyst Richard Bove said that buying Citigroup now is like buying in 1990s. The entire trading volume across the broader level was paltry. The US light crude oil for August Futures delivery inclined by 2.6% at $69.25 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed low by 16.10 points at 8,322.91 the NASDAQ Composite (RIXF) index declined by 1.27 points at 1,764.92 and the S&P 500 (SPX) gained by 2.06 points at 895.10.

Today major stock markets in Asia are trading mixed. Hang Seng is up by 140.39 points at 17,678.76. Shanghai Composite is up by 16.16 points at 2,908.86. Japan''s Nikkei is trading low by 5.52 points at 9,544.09. Strait Times is up by 24.93 points at 2,251.03. KLSE Composite is low by 1.49 points at 1,044.48.

Indian ADRs ended mixed on Tuesday. However, gainers outnumbered the losers. In the telecom space, MTNL was up 3.99% and Tata Communication was up 1.74%. In the IT space, Infosys was up 1.14%, Wipro was up 0.56% while Satyam Computers was down 0.31% and Patni Computers was down 0.67%. In the banking space, ICICI Bank was down 0.67% and HDFC Bank was down 3.24%. In other sectors, Sterlite Industries was up 3.67%, Dr Reddy''s Labs was up 2.23% and Tata Motors was up 0.99%.

The FIIs on Tuesday stood as net sellers in equity and net buyers in debt. The Gross equity purchased stood at Rs 1,617.20 Crore and gross debt purchased stood at Rs 430.40 Crore, while the gross equity sold stood at Rs 1,814.20 Crore and gross debt sold stood at Rs 180.40 Crore. Therefore, the net investment of equity and debt reported were Rs (197.00) Crore and Rs 249.90 Crore respectively.

On Tuesday, the partially convertible rupee closed at 48.56/57 per dollar, 0.04 paise lower than its previous close at 48.60/61. The local currency closed up due to phenomenal late recovery in the local stock markets.

On BSE, total number of shares traded were 40.58 Crore and total turnover stood at Rs 5,684.37 Crore. On NSE, total number of shares traded was 101.36 Crore and total turnover was Rs 18,823.30 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 79495752, followed by Suzlon Energy with 67785299, DLF with 17568518, Hindalco with 14223560 and NTPC with 13663924.

On NSE Future and Options, total number of contracts traded in index futures was 942507 with a total turnover of Rs 19,451.09 Crore. Along with this total number of contracts traded in stock futures were 562418 with a total turnover of Rs 30,245.25 Crore. Total numbers of contracts for index options were 1522674 with a total turnover of Rs 32,804.47 Crore and total numbers of contracts for stock options were 44936 and notional turnover was Rs 2,572.24 Crore.

Today, Nifty would have a support at 4,189 and resistance at 4,332 and BSE Sensex has support at 14,164 and resistance at 14,412.

SGX Nifty in positive territory

4,263.0 +32.5

Volatility may remain high ahead of June F&O contract expiry tomorrow high

Volatility in key benchmark indices may remain high ahead of the expiry of June 2009 futures and options (F&O) contracts on Thursday, 25 June 2009. Recent selling by foreign funds may also weigh on investor sentiment. Poor start for India's annual Monsoon may also dampen investor sentiment.

Asian stocks fluctuated today as gains among technology and energy shares overshadowed declines by finance companies. The key benchmark indices in China, Hong Kong, Taiwan and Singapore rose by between 0.31% to 1.51%.

Japan's Nikkei fell 0.06% after Japan's export slump deepened in May 2009, casting doubt on the nation's growth prospects as the economy struggles to emerge from its worst postwar recession. Shipments abroad dropped 40.9 % from a year earlier, more than April's 39.1 % decline, the Finance Ministry said today in Tokyo.

After a day of deep losses, Wall Street ended Tuesday trade flat. Stocks had opened higher, but slipped after a report showed home sales rose but not as much as expected. Bank stocks gained. The Dow slipped 16.10 points, or 0.2%, to 8,322.91. The S&P 500 index rose 2.06 points, or 0.2%, to 895.10, and the Nasdaq composite index fell 1.27 points, or 0.1%, to 1,764.92.

In economic data, US existing home sales data for May 2009 rose 2.4%, but fell short of expectations, existing-home sales rose to 4.77 million in May 2009, higher than the previous month but less than the 4.81 million rate expected.

In other major event, all eyes will watch out for the Federal Reserve's latest policy statement today after the 2 day meet. Interest rates are expected to be unchanged, but close attention will be paid to whether the fed will be using any new policy tools to help the US economy.

The World Bank on Monday predicted that the global economy will shrink 2.9% this year, a deeper fall than the 1.7% contraction it predicted in March 2009.

But the good news for India is that the World Bank has raised India's growth forecast for 2009 to 5.1% from earlier projection of 4%. It has projected an 8% growth for India in 2010 which will make it the fastest growing economy in the world in 2010, overtaking China's expected 7.7% growth relative to the robust performance prior to the current crisis.

On the flip side, the latest data showed the Consumer Price Index (CPI), inflation based on rural and agricultural workers rose to 10.2% in May 2009. The higher consumer inflation may cause Reserve Bank of India to reverse the expansionary monetary policy and might even curb the central government's spending plans which may cause hindrance in efforts to boost the slowing economy.

India's fiscal deficit in April 2009 was at Rs 54,158 crore ($11 billion), or 16.3 % of the full-year target, the government said in a statement on Tuesday.

Meanwhile, the south-west monsoon, which had been stalled since 7 June 2009, revived on 21 June 2009 and is likely to cover more parts of Maharashtra, Karnataka and Andhra Pradesh, the weather department said on Monday morning. The revived monsoon may cover Maharashtra and Madhya Pradesh by first week of July 2009.

A patchy start to India's annual monsoon has raised doubts about a nascent economic upturn, as the poor rainfall in June 2009 could hurt growth, push up food prices and prompt more government spending to support farmers. The monsoon, crucial to a farm sector that accounts for about a sixth of economic output, has stalled after an early start. In the week ended 17 June 2009, rains were 51 % below normal, the Meteorological Department said last week. Rural demand has been strong in recent years due to good monsoon in the past few years.

The next major trigger for the market is the Union Budget 2009-2010. Many equity analysts have been raising earnings forecasts of India Inc on hopes that the new government will provide thrust on the infrastructure sector and push economic reforms to boost growth. Citigroup expects the economy to grow by 6.8% in the year ending March 2010 (FY 2010) and 7.8% in the year ending March 2011 (FY 2011).

Finance Minister Pranab Mukherjee would present the budget on 6 July 2009. The Railway Budget will be presented on 3 July 2009 and the Economic Survey would be presented on 2 July 2009.

A comfortable victory last month for the Congress-led United Progressive Alliance (UPA) government in elections for the 15th Lok Sabha has raised hopes for economic reforms. Reforms virtually came to a halt in the past five years of the Congress-led alliance government at the centre, when the Communists provided support to the government from outside for a large part of the five-year term. Left parties are opposed to economic reforms.

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.

Indian stocks have soared in the past three months 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.

But foreign funds sold shares recently after aggressively buying during the past three months or so. As per the provisional figures on NSE, foreign funds sold shares worth Rs 654.97 crore on Tuesday, 23 June 2009. Foreign funds sold shares totaling Rs 1,908.90 crore in six trading sessions from 15 June 2009 to 22 June 2009. FII inflow in June 2009 totaled Rs 4,223.40 crore (till 22 June 2009). FII inflow in calendar year 2009 totaled Rs 25,542.80 crore (till 22 June 2009).

Meanwhile, the data on advance tax payments reported last week for the first quarter of the financial year indicated banks and fast moving consumer goods (FMCG) firms have done well in the first quarter, but realty companies continue to perform badly. Automobile sector have also paid higher taxes this year, show the revenue department's initial estimates. Indian companies paid around Rs 23,000 croe in advance tax for the first quarter of FY 2010, almost flat at the previous year's receipts.

US stocks fail to recover recover

Stocks oscillate in a narrow band for the entire day in search of direction

US stocks failed to recover on Tuesday, 23 June. A day before, on Monday, 22 June, 2009, stocks at Wall Street had slumped with indices witnessing the largest losses in percentage terms in two months time. On Tuesday, stocks spent the entire session trading in a narrow range in search of proper direction. The housing report, the only economic report scheduled for the day checked in almost line with expectations. Commodities went up today as the dollar slipped again today.

The Dow Jones Industrial Average ended lower by 16 points at 8,322.73. The Nasdaq Composite Index, ended lower by 1.2 at 1,764. S&P 500 ended higher by 2 points at 895.

The stock market spent the session chopping along in a relatively narrow trading range. The lack of direction left the major indices to finish the session in mixed fashion.

Six of the ten sectors ended in the red today led by the utilities sector. Financials, materials and telecom sectors were the ones to finish with gains. The materials sector tried to lend some support to the market today. The dollar slipped today after the housing report hit the wires. The bank stocks in the financial sector acted as the main winners.

But Boeing weighed heavily on the Dow today. The company pushed back the first flight date of its long anticipated 787 Dreamliner. Just last week Boeing affirmed it would hold the plane's first flight by the end of the second quarter.

The National Association of Realtors reported on Tuesday, 23 June, 2009 that falling prices boosted sales of pre-owned homes in May to the highest level since October, 2008.

Existing-home sales in May rose 2.4% to a seasonally adjusted annual rate of 4.77 million. Sales have risen in three of the past four months, and are down 3.6% in the past year. The sales increase was less than the 4.85 million rate expected. The report also detailed that the median sales price fell 16.8% in the past year to $173,000, the third largest year-over-year decline on record.

Indian ADRs ended in a mixed mode today. While HDFC Bank and ICICI Bank ended in the red, tech ADRs like Infy and Wipro went up. Infosys gained a little over 1% while Wipro gained 0.6%.

Crude prices at Nymex once again crawled above the $69 mark on Tuesday, 23 June, 2009. Prices rose today as traders anticipated that tomorrow's inventory report will show drop in crude inventories for last week. The weak dollar also pushed up crude price. On Tuesday, crude-oil futures for light sweet crude for July delivery closed at $69.24/barrel (higher by $1.74 or 2.6%). Last week, crude ended lower by 3.3%.

Traders are anticipating that tomorrow's weekly inventory data to show that U.S. commercial crude stocks dropped 1.2 million barrels for the week ended 19 June.

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, fell as much as 1.3%. Federal Reserve policy makers began a two-day meeting today. The central bank has held its benchmark interest rate near zero since December.

The main item tomorrow will be the FOMC policy announcement at 14:15ET tomorrow. In economic news, May durable goods orders report is due at 8:30ET, followed by the May new home sales report at 10:00ET. Among earning releases, Monsanto is a major name.

SGX Nifty Live Update - June 24 2009

4,250.0 +19.5

Daily News Roundup - June 24 2009

ABG Shipyard makes a counter offer for Great Offshore, rivaling Bharti Shipyard attempt to take control of the company. (BL)

RNRL seeks meeting with RIL on gas sharing issue. (BL)

SBI sets sights on mid-size overseas bank. (ET)

Idea to raise Rs60bn for new rollouts in next 2 years. (ET)

DIPP clears Bharti, Tata Tele proposals under new policy, which changes the way indirect foreign equity is treated. (ET)

Mahindra Satyam to merge with Tech Mahindra. (BL)

TCS, Wipro, IBM and Mahindra Satyam to bid for US$250mn Nissan contract. (ET)

Powergrid is considering a FPO to raise Rs30bn to fund its expansion plans. (BS)

TCS loses Rs2.25bn e-governance deal. (DNA)

NTPC to ink gas deal with RIL soon. (BL)

FSL bags order worth Rs1.45bn from Idea. (ET)

Wockhardt may issue preference shares to banks against derivative losses. (ET)

PFC to raise Rs230bn by end of FY09 for financing various power projects. (BL)

Dr Reddy launches new drug, Bispec in the domestic market. (BL)

Maytas Infra seeks Rs7bn additional loan for revival. (ET)

Pantaloon Retail May sales up 14%. (ET)

KEC International wins order worth Rs1.1bn. (DNA)

IRB Infra emerges as a lowest bidder for a road project from NHAI worth Rs15bn. (DNA)

Bajaj Auto looks to launch high performance scooters. (ET)

Government gives nod to Andrew Yule for its disinvestment program. (ET)

Cummins India has delayed Rs7.5bn ‘mega project’ at Phaltan near Pune by 6-8 months. (BS)

Government bans Chinese companies from bidding for ITI units. (ET)

Essar Group rejigs Vodafone stake to raise US$1.2bn. (ET)

Union Bank raises Rs5bn via issue of Tier-II bonds. (BS)

LIC is planning to acquire more shares in South Indian Bank. (BS)

BSNL is scouting for opportunities in South Africa. (DNA)

Elder Pharma to step up rural focus. (ET)

Reliance Retail to break-even by Sept’ 09. (ET)

Government likely to extend sops to EoU and STPI by another year. (ET)

MET Department hints at a below normal monsoon. (BL)

SEBI may hike upfront margins for QIBs in IPOs. (ET)

State may levy cess on construction above Rs1mn. (ET)

Fiscal deficit during April hits 16.3% of the projected deficit for the full year. (ET)

Government is likely to come out with a successor to the FRBM Act in the budget to continue the consolidation of government finances. (ET)

FDI in April witnessed an increase of 19.3% mom to US$2.34bn. (BS)

Waiting for Fed’s magical words!

The universe is full of magical things, patiently waiting for our wits to grow sharper.

Last time around the Fed chairman spoke of green shoots and sowed the hope of recovery. This time though, there is some apprehension as to how many of the sprouts will survive the unpredictable weather in the months ahead. The Fed’s two-day meet ends later today.

Markets are looking for the Fed to outline its expectations on the US economy and signal when it might raise interest rates. But, a close mate of Bernanke says the US central bank is unlikely to rush into any "exit strategy" from current policy just yet.

On the domestic front, FIIs have turned net sellers lately, bringing the rupee near crucial support levels of 49 to the dollar.

We expect a flat to cautious start today due to the indecisive trend across the globe. A small rebound is not ruled out if global markets oblige. The best strategy right now is to sit on the sidelines till the budget. One will also need to grapple with India Inc.’s latest report card.

The current yo-yo trend is likely to continue in the near term, though the medium- to long-term outlook is broadly encouraging.

Results Today: Abbott India, Ansal Infra, Bharat Electronics, Central Bank, Gateway Distriparks, Gayatri Projects, Ind-Swift Labs, Jindal Stainless, Kirloskar Electric, Munjal Auto, Navneet Publication, Nitco Tiles, ONGC, Rico Auto, Sun TV and Wyeth.

FIIs were net sellers in the cash segment on Tuesday at Rs6.55bn while the local institutions pumped in Rs3.18bn. In the F&O segment, the foreign funds were net buyers at Rs100mn. On Monday, FIIs were net sellers at Rs1.98bn in the cash segment. Mutual Funds were net buyers of Rs1.21bn on the same day.

Meanwhile, Americans' confidence in President Barack Obama's massive economic stimulus plan is waning, says a survey.

The Chicago Board Options Exchange's volatility index, otherwise known as the VIX, fell back 1.9% to 30.58. It spiked 10% on Monday to briefly touch the 32 level, as stocks sold off upon concerns about global growth.

Ballpark estimates suggest that the weather bureau may revise down its official monsoon forecast to ‘below normal’ from ‘near normal’.

The Bombay Stock Exchange (BSE) on Tuesday said it would halt trading in derivatives of seven companies as they did not meet the eligibility requirements of the Securities & Exchange Board of India (SEBI). The companies are Dr Reddy's, Ambuja Cements, Ashok Leyland, Tata Chemicals, IOC, Canara Bank and Petronet LNG, the BSE said in a circular.

"Derivatives contracts for the far month, i.e.., September 2009 and onwards would not be introduced...upon expiry of June 2009 contracts i.e. on June 25, 2009," the circular said. Existing contract months - July and August - would, however, continue to trade till they expire on the last Thursday of their respective expiry months, it added.

US stocks continued to struggle for direction on Tuesday, with the Dow Jones Industrial Average touching a fresh three-week low, as investors eyed a weaker-than-expected housing market report and geared up for the latest from the Federal Reserve.

The Dow fell 16 points or 0.2%. The S&P 500 index added 2 points, or 0.2% and the Nasdaq Composite index ended just below unchanged.

After rallying 40% in 14 weeks, the US stock market, as represented by the S&P 500, have lost around 6% in just over a week. Bets that an economic recovery is bound to take place fueled that advance. But the same euphoric optimism has given way to worries that the recession will drag on.

US stocks sank to three-week lows on Monday after the World Bank's dour outlook on global growth and a selloff in commodities spooked investors.

Existing home sales rose 2.4% to a 4.77 million unit annualized rate in May from a 4.66 million unit annualized rate in April. That was short of forecasts for a rise to 4.82 million units, according to economists. The median home price fell 16.8% year over year.

A Labor Department report said mass layoffs - or layoffs affecting 50 people or more - rose last month to tie a multi-year record hit in March, as the job market continued to struggle.

The Fed's policy-setting body - FOMC - began its two-day policy meeting on Tuesday with an announcement expected Wednesday afternoon. The central bank is expected to hold interest rates steady at historic lows near zero. However, what the bankers say about the economy, the bond market and the outlook for inflation will be critical.

Boeing said that it has again delayed the initial test flight of its new 787 jet because it needs to reinforce part of the aircraft. The flight had initially been planned for late 2007, but got postponed because of production problems and a labor strike. Boeing shares fell 6.5% and dragged on the Dow.

United Technologies and Hewlett-Packard were the Dow's other big drags.

Ratings agency Moody's said that the US government's credit rating was still triple-A but that it could be at risk if Washington can't start bringing its debt down.

Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.63% from 3.68% on Monday.

The US bond market showed little reaction after positive results from a $40 billion two-year Treasury auction. The auction showed strong demand, a positive as the government looks to raise funds to pay for its bailout and stimulus programs.

US light crude oil for August delivery rose $1.74 to settle at $69.24 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery rose $3.30 to settle at $924.30 an ounce.

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

Wednesday brings a slew of economic news in the US. The May durable goods orders report is due before the start of trading. The May new home sales report is due out after the start of trading. In Washington, the House Financial Services Committee holds a hearing on regulatory restructuring. The weekly crude oil supply report from the Energy Information Administration is due.

Stocks in Europe closed lower on Tuesday. Coming off the worst one-day fall in two months, the pan-European Dow Jones Stoxx 600 index finished 0.5% lower to 201.49, as markets moved closer to the May closing low level of 200.72.

The French CAC-40 index slipped 0.2% to 3,116.82 and the UK's FTSE 100 index slipped 0.1% to 4,230.02 while the German DAX index rose 0.3% to 4,707.15.

Markets ended on a flat note on Tuesday amid huge volatility. Alternate bouts of buying and selling often tossed the key indices in to the negative and the positive terrain. Weak cues from the US and the Asian markets dragged the Indian markets to start off with a negative gap down.

However, as the day progressed, buying momentum in the index heavyweights like Reliance Industries, ONGC and HDFC lifted the markets to close flat. The Sensex ended flat at 14,324 after touching a high of 14,394 and a low of 14,016. The index had opened at 14,148 against the previous close of 14,326. The NSE Nifty gained 12 points or 0.2% to shut shop at 4,247.

Among the BSE Sectoral indices BSE Oil & Gas index was the top gainer gaining 2.6%, followed by the BSE PSU index up 2.1%, BSE Power index up 1.4%

Among the major losers were BSE Bankex index down 2.1%, BSE Metal index down 1.5%, and BSE Consumer Durable index down 1.5%..

Shares of Great Offshore surged by over 8% to Rs413 after ~1.6mn shares or 4.3% of the company changed hands at an average price of Rs404.75 per share.

ABG Shipyard announced a counter offer for buying a substantial stake in the company, countering an existing bid by Bharati Shipyard.

ABG, through its wholly-owned subsidiary, Eleventh Land Developers Pvt. Ltd. aims to buy 12,571,072 shares, or 32.12% stake in Great Offshore at Rs375 per share.

Later on, Bharati Shipyard in a counter bid raised the offer price for Great Offshore to Rs403 per share and could further revise its offer for the company, said the chairman PC Kapoor.

On June 4, Bharati had offered Rs344 per share for acquiring an additional 20% stake in Great Offshore. The open offer is scheduled to begin on July 25 and close on August 13.

Shares of Bharti Shipyard declined by 5% to Rs162 after hitting an intra-day high of Rs169 and a low of Rs160 and recorded volumes of over 0.3mn shares on BSE.

While, ABG Shipyard shares advanced by 2% to Rs213 after hitting an intra-day high of Rs222 and a low of Rs205 and recorded volumes of over 0.3mn shares on BSE.

Shares of BHEL have gained by 1.5% to Rs2136 after the company announced that it secured Rs1bn order from IOC for setting up a captive power plant at the latter’s Barauni refinery complex. The scrip touched an intra-day high of Rs2161 and a low of Rs2054 and recorded volumes of over 0.18nm shares on BSE.

Shares of Jindal Saw gained by 3.2% to Rs395 after the company announced that it bagged orders worth Rs10bn for supply of large diameter pipes and ductile iron pipes in domestic and export markets, which are to be executed by March, 2010.

Shares of IFCI advanced by 3% to Rs53 after reports stated that the company is exploring options to rope in a strategic investor by issuing convertible instruments or by facilitating the acquisition of shares from existing partners.

Are you lucky enough to get a Nano ?

Auto major Tata Motors today said it has selected over 1.55 lakh customers for its small-car Nano — touted as the world's cheapest — which the company will start delivering from next month.

The company would deliver the first 1 lakh cars by March 2010, while the handing over of the Nanos in the next phase to 55,021 customers would start thereafter.

"Tata Motors is pleased to announce that it has completed the process to select the first 1,00,000 owners of the Tata Nano from among 2,06,703 final list of applicants, who had booked the car," the company said in a statement.

The company has also completed the selection process for the second phase by alloting slots to 55,021 customers.

The entire selection process was done through a computerised lottery, it added.

"Tata Motors reconfirms that the first 1 lakh owners are price-protected, and will get their Tata Nano at the ex- showroom prices, announced at launch on March 23," it said.

"All efforts will be made to deliver earlier, by ramping up production at the already operational Pantnagar plant and the fast upcoming Sanand plant," Tata Motors said.

Of the total booking, about 67 per cent of the applicants (1,37,867 people) had intended to retain their bookings in case they are not selected in the first draw.

"The booking amounts of the unsuccessful applicants, who had not exercised this option (to retain the bookings), are being returned," Tata Motors said.

The booking amount was Rs 95,000 for the base model, Rs 1.2 lakh for the mid-range model and Rs 1.4 lakh for the top- end car across the country.

The company said the retainees would be offered 8.5 per cent interest on the booking amount if the car is delivered within two years from the date of allotment and 8.75 per cent if the car is delivered after two years from the date.

"The interest will be paid directly to the retainees by Tata Motors," it added.

Tata Motors has offered the unsuccessful applicants some schemes for its hatchback 'Indica' range, which would be additional to the existing schemes on the cars.

Conceived in 2003, Tata Motors had launched the much-hyped Rs 1-lakh car on March 23 this year. It has cost over Rs 2,000 crore.

The booking for the 623-cc rear-engine car, boasting a fuel economy of over 23 km per litre, had opened on April 9 and closed on April 25.

Nano would have a price range of Rs 1.23 lakh to Rs 1.72 lakh (ex-showroom, Delhi) for the three different variants.

The company would roll out the Nanos from its Pantnagar facility, which has an annual capacity of 50,000 units. The car would also be produced from the company's Sanand unit in Gujarat once its goes on stream.

via Business Standard

United Bank of India plans to raise Rs 300- 400 crore

Through public offer in December 2009

United Bank of India plans to raise Rs 300- 400 crore through an initial public offer (IPO) in December 2009, reports quoting its chairman and managing director S.C. Gupta indicated on Monday, 22 June 2009.

Reports added that United Bank
of India is in the process of reducing its equity capital. That will be followed by getting its accounts audited on 30 September 2009

The Government holding in the bank, currently at 100%, might come down to 80% post-IPO, an unnamed senior official at the bank reportedly said.

The IPO would be preceeded by capital restructuring, where the paid-up base would be lowered from Rs 1,532 crore to Rs 266 crore. The remaining Rs 1,266 crore, after being returned to the government, would be transferred to the capital reserve account in 2009-10

Precious metals shine

Gold and silver rise as dollar sheds yesterday's gains

Precious metals registered modest gains at USA on Tuesday, 23 June, 2009. The weak dollar increased the appeal of precious metals as a hedge against inflation thereby pulling their prices up.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.

On Tuesday, gold for August delivery ended at $924.3, higher by $3.3 (0.3%) an ounce on the New York Mercantile Exchange. During intra day trading, it earlier rose as high as $927.30 and dropped to a low of $913.20. Last week, gold ended lower by 0.5%. Year to date, gold prices are higher by 6.5%.

Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. Before this, gold had suffered losses in prior two months. For the month of April and March, 2009, gold had lost 3.7% and 2.1% respectively. But the metal gained 4.3% in the first quarter of this year.

On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (10%) since then.

On Tuesday, Comex silver futures for July delivery rose 14 cents (1%) at $13.85 an ounce. Last week, silver ended lower by 4.5%. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. Year to date, silver has climbed 26.7% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, fell as much as 1.3%.

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

At the MCX, gold prices for August delivery closed lower by Rs 23 (0.15%) at Rs 14,485 per 10 grams. Prices rose to a high of Rs 14,510 per 10 grams and fell to a low of Rs 14,410 per 10 grams during the day's trading.

At the MCX, silver prices for July delivery closed Rs 35 (0.15%) higher at Rs 22,297/Kg. Prices opened at Rs 22,215/kg and fell to a low of Rs 22,074/Kg during the day's trading.

Crude climbs up

Crude prices rise as crude inventories are expected to fall

Crude prices at Nymex once again crawled above the $69 mark on Tuesday, 23 June, 2009. Prices rose today as traders anticipated that tomorrow's inventory report will show drop in crude inventories for last week. The weak dollar also pushed up crude price.

On Tuesday, crude-oil futures for light sweet crude for July delivery closed at $69.24/barrel (higher by $1.74 or 2.6%). Last week, crude ended lower by 3.3%.

Crude had 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 53% since then. Year to date, in 2009, crude prices are higher by 38.2%.

Traders are anticipating that tomorrow's weekly inventory data to show that U.S. commercial crude stocks dropped 1.2 million barrels for the week ended 19 June.

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, fell as much as 1.3%. Federal Reserve policy makers began a two-day meeting today. The central bank has held its benchmark interest rate near zero since December.

Also at the Nymex on Tuesday, July reformulated gasoline rose 3.35 cents, or 1.8%, to $1.8932 a gallon and July heating oil gained 4.15 cents, or 2.4%, to $1.769 a gallon.

July natural gas futures sank 5.4 cents, or 1.4%, to $3.879 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 July delivery closed at Rs 3,341/barrel, higher by Rs 52 (1.6%) against previous day's close. Natural gas for July delivery closed at Rs 195.8/mmbtu, lower by Rs 2/mmbtu (1%).

Adani Enterprises

Adani Enterprises

Mahindra Holidays and Resorts IPO

Mahindra Holidays and Resorts IPO

Mahindra Holidays and Resorts Limited IPO

Mahindra Holidays and Resorts IPO