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Saturday, June 27, 2009

Futures and Options- June 27 2009

Futures and Options- June 27 2009

Budget Preview Reports - June 27 2009

Budget Preview Reports - June 27 2009

Citibank India FY09 PAT rises 20% yoy

Citibank India on Wednesday reported its financial results for the year ended March 31, 2009. Citibank India branch announced that its net profit after tax was Rs21.73bn for the year 2008-09, representing a 20% increase from Rs18.04bn in the same period of last year. The bank has reported total revenues of Rs104.23bn for the year ended March 31, 2009, representing a 24% increase from Rs84.1bn for the same period last year. The growth in revenues was attributable both to higher interest income as well as significant growth in fee and trading income. As at March 31, 2009, the balance sheet grew by 26% from Rs838.51bn to Rs1052.64bn, reflecting continuing growth in customer lending activities. Despite industry-wide challenges in unsecured consumer credit impacting profitability of the Retail Banking segment, the increase in net income reflected strong growth in Corporate/Commercial Banking and Treasury. In addition to Citibank with 40 branches in 28 locations in India, Citi operates several other legal vehicles, including mainly two large non-bank finance companies, two brokerage companies and two other companies undertaking capital markets activities.

All of these vehicles remained profitable during the year, with the exception of Citifinancial Consumer Finance India Limited, which was impacted by the challenges of deterioration in unsecured credit quality that affected the entire industry and, Citi Wealth Advisors Private Limited which is yet to reach full scale of operations. "Notwithstanding the slowdown in the local economic environment arising from unprecedented turmoil in global markets, the strong performance of Citibank India branch underscores our strengths built up over 107 years operating in India. During the year we assisted many of our corporate customers to raise capital in the local market and, by using our global product expertise, to access international capital markets. Recognising the credit quality challenges we faced in our unsecured consumer loan portfolio, we were amongst the first in the industry to take corrective action and are pleased with our progress. Having spent 6 months in the country, I am impressed with the diversity and expanse of our franchise and excited by the possibility of developing it further in line with local market needs," said Mark T. Robinson, CEO, Citi South Asia.

Shape up or ship out: Govt to Air India

Air India will have to undergo a massive reorganisation before it gets any financial aid from the Government. That's the unambiguous message sent by the Prime Minister to the management of the national carrier. It may be recalled that Civil Aviation Minister Praful patel met Dr. Manmohan Singh yesterday to apprise him of the current troubles being confronted by the cash-starved Air India. The national carrier has delayed June salaries to 31,000 employees by two weeks as it is running short of cash. The airline has also asked top executives to forego salaries in July to help overcome the cash crunch. The Centre has asked Air India to restructure its Board and get leaner and trimmer. A panel of secretaries, headed by Cabinet secretary K.M. Chandrasekhar will review the cost-cutting exercise at Air India and the performance of the airline every month. The Government has proposed to induct independent directors on the board of the company as well. "Air India will have to do a lot of restructuring within both organisationally, financially and manpower wise. Until and unless it takes a series of measures it will be difficult to support the airline unconditionally... Air India will have to do massive restructuring for the short-term as well as long-term," Patel told reporters on Wednesday evening after the meeting with the Prime Minister.

The airline will have to give a time-bound program that will involve financial and manpower restructuring, Patel said. The Government’s rescue measures will have to be matched by extraordinary measures on the part of Air India, he added. "Air India must shape up, must become leaner and trimmer and also put its best foot forward," Patel said, adding that the state-run carrier’s plane-purchase program won’t be hampered as it needs to replace aging planes to compete. The company's revival may take as much as two years, he said. Air India’s top management may need to be recast, Patel said.

Govt plans to add 14,000 MW power in FY10

The Government plans to add 14,000 megawatts (MW) of electricity generation capacity in the fiscal year 2009-10, Union Power Secretary H. S. Brahma told reporters at an industry conference on Tuesday in New Delhi. "We need to do tremendous work to achieve the planned target. In 100 days, we have a plan to add 5,600 MW by August," Brahma said. "We have to do more than 14,000 MW within this fiscal year," he added.The energy-starved country's power deficit could widen in coming months because of a delayed monsoon, Rakesh Nath, Chairman of the Central Electricity Authority (CEA), was quoted as saying in New Delhi today. "In summer, demand for power usually goes up," he told a global media agency on the sidelines of an industry conference. "Our current deficit is around 10%, according to last month figures," Nath said.

Grey Market Premium - Adani Power, Mahindra Holidays

Mahindra Holidays 275 to 325

22 to 25 (Seller)

Rishabhdev Techno 29 to 33

5 to 7

Adani Power 110 to 130 (Approximate)

30 to 35

Monetary policy review on July 28

The Reserve Bank of India (RBI) will announce its first quarter review of the Annual Monetary Policy on July 28. "D Subbarao, Governor, Reserve Bank of India will release the first quarter review of Monetary Policy 2009-10 on Tuesday, July 28, 2009," the central bank said in a release on Thursday.The RBI statement further added that the review will be released at a meeting of the chief executives of major scheduled commercial banks on that day in the Reserve Bank of India central office in Mumbai. With WPI-based inflation moving into the negative zone for two consecutive weeks, and with the economy still sluggish there has been some clamour for further easing in monetary policy. The Government too has been repeatedly pressing the banks, especially the nationalised ones, to lower borrowing costs for households and corporates in order to bolster economic growth.However, it remains to be seen what action, if any, Subbarao & Co. takes on July 28 given the fact that consumer price inflation (CPI) has been running at around 9-10%, and liquidity too is not an issue.The RBI has cut the repo rate by 425 basis points since October and reduced the reverse repo rate by 275 points to mitigate the fallout on India from the worldwide financial meltdown. The central bank expects the Indian economy to grow by 6% in the current fiscal year compared with an average growth of 8.5% in the previous five years. WPI inflation is seen touching 4% by March 31, 2010. Falling WPI-based inflation is only a statistical feature and doesn’t mean India is suffering from deflation, RBI Governor Subbarao said on June 20. The RBI will take into account other benchmarks of prices when it decides on monetary policy, according to Subbarao.Consumer prices paid by farm and rural workers jumped 10.21% in May from a year earlier, after rising 9.09% in April. Consumer prices paid by industrial workers rose 8.7% in April from a year earlier, after gaining 8.3% the previous month, according to government data.

Inflation at -1.14% for week ended June 13

India’s inflation, as measured by the Wholesale Price Index (WPI), fell for a second successive week, largely owing to last year's high base and partly due to the slowdown in the economy, data released by the Government showed on Thursday.

The annual, point-to-point inflation stood at (-)1.14% in the week ended June 13, 2009 as compared to (-)1.61% in the previous week, the Commerce & Industry Ministry said in a statement today. It was at 11.8% during the corresponding week (June 14, 2008) of the previous year, it added.

The WPI for 'All Commodities' rose by 0.6% to 234.2 from 232.7 in the week ended June 6, 2009. The wholesale price index published today may be revised in two months, after the government receives additional price data.

The Government also announced that it has revised the inflation rate for the week ended April 18, 2009 to 1.62% as compared to the preliminary forecast of 0.57%. The WPI for the same period has been revised to 232.6 from the provisional estimate of 230.2.

The index for 'Primary Articles' group rose by 0.1% to 256.3 while the index for ‘Food Articles’ increased by 0.2% to 251.2.

The index for Fuel, Power, Light & Lubricants gained 0.4% to 327.5 in the previous week. The rise was led by higher prices of aviation turbine fuel (12%), light diesel oil (10%), furnace oil (3%) and naphtha (1%).

The index for 'Manufactured Products' group rose by 1% to 205.8 from 203.8 for the previous week.

The index for 'Beverages Tobacco & Tobacco Products' declined by 0.3% to 301.6 while the index for 'Textiles' group was up by 0.7% to 142.7.

The index for 'Chemicals & Chemical Products' rose by 4.8% to 228.2 on the back of higher prices of capsules other than vitamin & antibiotics (58%).

Falling WPI-based inflation is only a statistical feature and doesn’t mean India is suffering from deflation, RBI Governor Duvvuri Subbarao said on June 20. The central bank will review its inflation target of 4% for FY10 when it holds its next monetary-policy meeting in the last week of July, taking into account the impact of rising oil and commodity prices, Subbarao said.

The RBI will take into account other benchmarks of prices when it decides on monetary policy, according to Subbarao. Consumer prices paid by farm and rural workers jumped 10.21% in May from a year earlier, after rising 9.09% in April. Consumer prices paid by industrial workers rose 8.7% in April from a year earlier, after gaining 8.3% the previous month, according to government data.

Weekly Stock Picks - June 27 2009

Buy IVRCL Infra

Buy IndusInd Bank

Buy Tata Comm


Buy Reliance Capital

Weekly Newsletter - June 27 2009

In the coming week, traders and investors may remain reluctant to bet their money ahead of the Union Budget. After witnessing unabated buying since March, FIIs have turned net seller over the seven days, indicating some money is being taken off the table ahead of the Budget.

On the positive side, there are signs of some recovery in the global economy, particularly in the US. Economic data appears to be quite encouraging as the US economy shrank 5.5% in Q1 of 2009, which was less-than anticipated.

One cannot bet on a sustained rebound. Selling pressure is bound to come in at higher levels. Avoid any leverage. If stocks stage a rally no harm in booking gains ahead of the event.

Key results next week are: Finolex Industries, Ganesh Housing, Greenply Industries, Gremach Infra, Gujarat NRE Coke, Havells India, Hotel Leela, IFCI, India Cement, Nesco, Patel Engineering, Pfizer, Suzlon Energy, Tulip Telecom, Godawari Power, Anant Raj Indus, Apollo Hospitals, BRFL, DS Kulkarni, Gujarat Alkali, IBN 18, Orchid Chemicals, Petron Eng and Unity Infra.

Great Offshore...ABG enters race; Bharati ups ante

Dhanshree Properties Pvt. Ltd., on behalf of Bharati Shipyard Ltd., on June 23, acquired 16,99,611 equity shares of Rs 10 each of Great Offshore Ltd., constituting 4.58% of the current paid-up share capital of the target company, at a price of Rs 403.00 per equity share through a block deal. The transaction was done with some members of the Sheth family, the original promoters of Great Offshore. The deal took place shortly after ABG Shipyard Ltd. threw its hat in the ring for the acquisition of a substantial stake in Great Offshore. ABG Shipyard offered a price of Rs375 per share to acquire close to 32% stake in Great Offshore.

Bharati Shipyard will surpass the counter bid by ABG Shipyard for a controlling stake in Great Offshore, Managing Director P.C. Kapoor told reporters in Mumbai, raising prospects of a protracted bidding war. "We will be making another revised offer, the timing will be a few days hence, and what the price will be I cannot say right now," he said. Bharati Shipyard has invested Rs2.45bn till now to acquire about 19.5% in Great Offshore, Kapoor said. ABG Shipyard currently holds 2% in Great Offshore. Kapoor hinted that the bid could rise above Rs403 and total investment in Great Offshore could top Rs4bn.

It may be recalled that on June 4, Dhanshree Properties, Natural Power Ventures Pvt. Ltd. along with Bharati Shipyard had announced a public offer to acquire on a voluntary basis up to 78,26,788 fully paid-up equity shares of Rs10 each of Great Offshore, constituting 20% of the emerging voting capital of the target company at a price of Rs344 per share.

Meanwhile, ABG Shipyard's Managing Director Rishi Agarwal said that the company will not come back with any immediate reactions," after Bharati announces a revised price. "We will evaluate at the right time," he told reporters in Mumbai when asked if it would make a counter offer again. "Next step is we'll sit and decide what's the best way forward." ABG Shipyard plans to fund the acquisition from its cash reserves of Rs2.5-3bn, Agarwal said. Bharati Shipyard has substantial support from some major shareholders of Great Offshore, including the Sheth family, Kapoor said. The company is also in talks with some key financial partners and cannot rule out tying up with a strategic partner for this deal, he added.

India Utilities, ONGC, Sun TV,Jindal Steel and Power, India Technology, Mindtree, Glenmark Pharma, Sun Pharma

India Utilities, ONGC, Sun TV,Jindal Steel and Power, India Technology, Mindtree, Glenmark Pharma, Sun Pharma

Stocks to Watch - Railway Budget

Stocks to Watch - Railway Budget

India Telecom - June 27 2009

India Telecom - June 27 2009

India Strategy - June 26 2009

India Strategy - June 26 2009

Growth in reserves and yield

Ample liquidity resulted in lower call rate

The foreign currency assets grew by $10 million to $252.8 billion. Forex reserves grew by $ 8 million to $ 263.652 billion for the week ended June 19, as per the RBI's latest weekly statistical supplement. The total reserve comprises of foreign currencies, gold and special drawing rights with IMF. The gold and SDR reserves unchanged at $ 9.604 billion and $1 million respectively.

The annual growth rate in reserve money was a mere 2% as on 19 June 2009 compared with 29.3% growth recorded last year. The reserve money fell 1.8% from their previous week level and stood at Rs 950308 crore as on 19 June 2009.Bankers deposit with RBI, one of the major component of reserve money fell 26.9% as on 19 June 2009 compared with 55.4% growth recorded a year ago. It recorded a negative growth of 24.9% in so far current financial year as against 8.9% decline in same period a year ago. The annual growth rate of currency in circulation also decelerated to 14.8% as compared to 20.5% growth in a year ago. In so far current financial year it move up 4.3% as against 6.2% increase in same period a year ago.

Net foreign exchange assets of RBI, one of the major sources of reserve money, recorded 5.7% fall on 19 June 2009 compared with 55.2% surged a year ago. It decline 1.3% in so far current financial year compared with 8.4% increase in same period a year ago.

The Reserve bank has accepted 6 bids during the week ended 19 June 2009 under liquidity adjustment facilities. Under the reverse repo auction, RBI has absorbed amount worth Rs 648700 crore at the cut of rate 3.25%. The weighted average rate of call money was below 4% indicating sound liquidity position. The annual growth rate of money supply as on 20.2% as on 5 June 2009 compared with 21.7% last year. However headline inflation is in red for two consecutive weeks. Inflation and bond yield have positive relationship. However yield on most traded paper remain on elevated level due to the higher government borrowing.

Market may remain volatile ahead of Union budget

The market could be volatile ahead of the presentation of the Union Budget 2009-2010 on 6 July 2009. Stock-specific activity may rule the roost based on budget expectations. The Annual Economic Survey will be presented on 2 July 2009, a day ahead of the Rail Budget on 3 July 2009. Investors will track global cues for a direction

Railway Minister Ms Mamata Banerjee will present the Rail Budget on 3 July 2009. As per media reports, another fare cut is unlikely because Lalu Prasad's Interim Railway Budget in February 2009 has already strained the Indian Railways' finances. Lalu Prasad had announced a 2% reduction in passenger fares. Similarly, any increase in freight rates looks unfeasible because of the current economic downturn. With the present economic conditions not providing much scope for either large-scale fare concessions or an across-the-board increase in freight rates, the highlight of the Railway Budget for 2009-10 is likely to be a big push to public-private partnership (PPP) initiatives to enhance the Indian Railways' capacity to earn higher revenues on a sustainable basis.

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).

The Union Budget 2009-2010 attains significant importance in the wake of the global financial crisis. Despite the country being relatively unharmed compared to the West, the UPA government will have many tasks on its to-do list, which includes boosting growth and demand, continuing to maintain liquidity, balancing inflation and also containing the country's worrying fiscal situation.

The Government has made its intention clear to push for reforms and pursue the disinvestment agenda, which was met with stiff opposition in the UPA's previous stint when the Left parties were members for a major part of the five-year tenure. The Congress party had in its manifesto released before polls promised to go ahead with disinvestment while retaining a majority holding in the state-run companies. Disinvestment programme was earlier put on backburner due to stiff opposition from the Left front.

Also the passage of the Bill to amend the Insurance Act, 1938 is likely to be touched upon in the budget. Apart from raising the foreign investment ceiling to 49%, from 26% at present, the Bill had proposed to do away with the stipulation on Indian promoters having to mandatorily sell a part of their holdings after 10 years of operation.

The Indian government may unveil a roadmap in its 6 July budget to deregulate fuel pricing and give leeway to state-run oil refiners to fix petrol and diesel prices within a band. If the reform proposals are approved prices of petrol could rise by Rs 5.1 a litre and diesel by Rs 2.6 a litre. After the ruling coalition was re-elected in May with a stronger mandate, Oil Minister Murli Deora had said the government was considering a proposal to free state controls on transport fuel prices.

With infrastructure bottlenecks plaguing the economy, expectations are rife that the upcoming Budget will provide a big stimulus to this core sector, particularly roads and ports. A big push to Public Private Partnership (PPP) projects in infrastructure may be also on the cards.

For the power sector, the Budget may contain significant increases in spending, including for generation, rural electrification, and for minimising transmission and distribution losses. Other measures which the Budget may announce on infrastructure would be to give greater flexibility to the Infrastructure Investment and Financing Company (IIFCL), which has been set up as a refinancing facility for infrastructure projects, to deploy funds.

Meanwhile, foreign funds activity will be closely watched. After aggressively buying during the past three months or so foreign funds sold shares totaling Rs 3,168.40 crore in eight trading sessions from 15 June 2009 to 24 June 2009. FII inflow in June 2009 totaled Rs 2,964 crore (till 24 June 2009). FII inflow in calendar year 2009 totaled Rs 24,283.40 crore (till 24 June 2009).

Investors will also closely watch the progress of India's annual monsoon. Prithviraj Chavan, the Minister of Science and Technology, said in a press conference, on Wednesday, 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 crucial 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.

Derivatives: Expect huge volatility with a band of 4000-4700 levels till the Budget

The option indicators suggest that the market may remain volatile till the budget; positive cues from the budget could reverse the trend.

An extremely volatile June series came to an end on 25th June with a 68.75 points correction during the week till Thursday. However on Friday the market bounced back with 133.65 points rally in Nifty to close at 4375.50.

During the week till expiry the S&P Nifty fell 68.75 points to close the underlying Nifty at 4241.85. Throughout the week the market remained bleak due to monsoon concerns and the concomitant effect of it on the Indian Economy. The IMD has forecasted a lower than normal monsoon during the current year. This could have significant effect on the farm economy and the FMCG and the auto sector that depends on the rural demand for growth.

The forthcoming budget is a major event to watch, as this could be a major trigger for the market. 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. 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. Any positive / negative developments during this period could trigger an intermediate bull / bear run.

In the domestic F&O market the rollovers for June 2009 series, which expired on Thursday 25 June 2009, were lower as compared to previous series. As per reports, rollover of Nifty positions from June 2009 series to July 2009 series stood at 55% as compared to 63% in the previous series. Also stock futures rollover slipped to 75% from 77% in the last series. But considering the fact that some of the stocks were going out of the F&O segment the overall picture of stock rollover looks reasonably better. High rollover was visible in Infrastructure, Capital Goods and Banking space on budget expectations from investors.

The Nifty July contract added 66.39 lakh shares in Open Interest (OI) on the last day of the June series and the total OI on Thursday stood at 2.12 crore shares indicating a marginal short build-up in the July series of Nifty right on the final day of the June series. The stock rollover was reasonably better. For e.g. Tata Motors, Suzlon, Unitech and Maruti witnessed more than 80% rollover to July series. (See rollover table).

During the week as a whole the S&P CNX Nifty rose 64.90 points to close at 4375.50. Sustained buying in index pivotal propelled key benchmark indices to fresh intraday high in mid-afternoon trade. Firm global markets also boosted the domestic bourses today with index heavyweights Reliance Industries and ICICI Bank leading the rally. The S&P CNX Nifty has become a free-float market capitalization based index from its earlier full-market capitalization method with effect from today. As a result weights of public sector undertakings - ONGC, NTPC, Steel Authority of India (Sail), Power Grid Corporation and National Aluminum Company in Nifty has come down by at least 50%.

Throughout the week the Nifty future remained at a premium to the underlying and on 26th June 2009 it closed at a premium of 9 points to the underlying on Friday. The volume in the F&O segment on Friday was very much lower at Rs 48,071.62 crore. The average volume during the week in the F&O segment was Rs 76,722.81 crore. The average volume for the full series was Rs 72,351.39 crore. The total OI in the Nifty July contract as on 26th June 2009 was 2.17 crore shares thus adding 4.73 lakh shares as compared to the previous trading day.

On the expiry date call option with strike ranging from 4000 to 4800 were very active with all these strike calls witnessing addition of OI whereas puts of strike ranging from 3800 to 4300 were very active. The action indicates that there was significant call writing of 4200, 4300, 4400 and 4500 strikes whereas there was active put buying of 3900, 4000, 4100 and 4200 strikes. This implies that the market would experience a strong resistance at 4700 to 4800 levels. There is a strong indication of further downward move from the option indicators with the downward support being at 4000 level.

On Friday however some of these call strikes witnessed aggressive buying with the 4400, 4500 and the 4700 strikes being the most active. All these strikes added 4.27 lakh shares, 3.18 lakh shares and 4.96 lakh shares respectively in OI. The total OI in all these strikes stood at 10.51 lakh shares, 13.59 lakh shares and 19.28 lakh shares respectively. On the put front the 3900, 4000 and 4300 strikes added 5.24 lakh shares, 4.27 lakh shares and 6.69 lakh shares respectively. Thus the option action indicates a band of 4000 level to 4700 level.

The index put call ratio fell to 0.82 on 26th June 2009 as compared to 0.97 during the previous trading session, whereas the stock put call fell to 0.17 as compared to 0.31 during the previous session. Thus the market wide put call ratio was 0.77 as compared to 0.94 on 25th June 2009. Comparison with the previous is not appropriate as the previous days PCR also includes the buy-sell of puts and calls of June series.

Among the major stock futures, the top ten contracts contributed to around 36% of the total traded volume in futures on individual securities. Reliance was the most active future contracts on individual securities and HDIL was the next most active futures contract. Reliance future added 3.96 lakh shares in OI and the total OI stood at 64 lakh shares, whereas HDIL added 20.95 lakh shares. Some of the other front-line also added healthy OI. ICICI Bank OI increased by 3.57 lakh shares whereas Tata Steel OI increased by 13.02 lakh shares.

The market continues to look volatile till the declaration of the budget. Thus the budget is a major event to watch as a huge expectation is being built on the budget. The option indicators suggest that the market may remain volatile till the budget. However positive cues from the budget could reverse the trend.

Weekly Watch - June 27 2009

Weekly Watch - June 27 2009

Post Session Commentary - June 26 2009

Domestic market concluded its journey for the week on strong note on account of sustained buying over the ground. Favorable global cues, mainly firm Asian markets contributed to the sharp rally. Sentiments further got an advance as the European markets also opened in green. BSE Sensex extended its gains to around 3% and ended above 14,750 mark. Moreover, NSE Nifty also broadened its gains over 3% and closed above 4,350 level.

The market opened on pleasant note on the first day of July series tracking firm cues from the markets all over the world. Asian markets witnessed sharp rally today and the US Markets closed with handsome gains on Thursday led by some gains among the retailers and consumer discretionary stocks. The better than expected results from a $27 billion auction of 7-year Notes and some better than expected corporate earnings results led the markets to gain further momentum later in the session. The Indian benchmark indices continued to hold gains but were unable to expand gains till mid session. Further, stocks started extending gains and continued to move upward till end in line with other global counterparts. Market ended near days’ high as strong buying support picked up in the domestic bourses during second half of the trading. From the sectoral front, mainly Bank, Capital Goods, Consumer Durables, IT, Reality, Oil & Gas and Tech stocks contributed to the rally. BSE Mid Cap and Small Cap stocks also gained favor from the market. However, Pharma stocks witnessed most of selling from its baskets.

Among the Sensex pack 26 stocks ended in green territory and 4 in red. The market breadth indicating the overall health of the market remained extremely positive as 1689 stocks closed in green while 937 stocks closed in red and 107 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 419.02 points at 14,764.64 and NSE Nifty ended up by 133.65 points at 4,375.50. BSE Mid Caps and Small Caps closed with gains of 121 and 107.73 points at 5,170.90 and 5,800.75 respectively. The BSE Sensex touched intraday high of 14,781.94 and intraday low of 14,373.57.

Gainers from the BSE Sensex pack are ICICI Bank (7.96%), Sterlite Industries (6.11%), L&T Ltd (5.47%), TCS Ltd (4.35%), Infosys Tech (3.93%), RCom (3.93%), Reliance (3.53%), BHEL (3.20%), Maruti Suzuki (3.12%), SBI (2.62%), DLF Ltd (2.44%), Wipro Ltd (2.43%), HUL (2.35%), Hindalco (2.30%), HDFC Bank Ltd (2.21%), ACC Ltd (2.19%), Reliance Infra (2.00%), JP Associates (1.58%) and ONGC Ltd (1.53%).

Losers from the BSE Sensex pack are Sun Pharma (12.17%), Ranbaxy Lab (4.37%), Tata Steel (2.53%) and M&M Ltd (0.73%).

On the global markets front the Asian markets which opened before the Indian market, ended in green. Shanghai Composite, Hang Seng Nikkei 225, Straits Times index and Seoul Composite closed up by 3.17, 325.23, 81.31, 15.50 and 1.80 points at 2,928.21, 18,600.26, 9,877.39, 2.317.96 and 1,394.53 respectively.

European markets, which opened after the Indian market, are trading up. In Frankfurt the DAX index is trading higher by 50.95 points at 4,851.51 and in London FTSE 100 is trading up by 40.52 points at. 4,293.09.

The BSE Bank index surged (4.31%) or 343.75 points to close at 8,314.61 on firm American depository receipt (ADRs) and hopes of financial sector reforms in the Union Budget 2009-10. Main gainers are ICICI Bank (7.96%), Kotak Bank (5.30%), Axis Bank (5.29%), Indus Ind Bank (4.43%) and Punjab National Bank (4.11%).

The BSE Capital Goods index increased by (4.17%) or 524.55 points at 13,103.61. L&T Ltd (5.47%), Gammon Indi (4.97%), Jyoti Struct (4.97%), Suzlon Energy (4.67%) and Punj Lloyd (4.40%) ended in positive territory.

The BSE IT index advanced by (3.64%) or 118.51 points to close at 3,375.32. Gainers are Mphases Ltd (4.85%), TCS Ltd (4.35%), NIIT Ltd (3.99%), Infosys Tech (3.93%) and Patni Computer (3.73%).

The BSE Consumer Durable ended up by (3.17%) or 88.66 points at 2,881.48. Gainers are Videocon Ind (8.64%), Gitanjali GE (4.12%), Rajesh Export (2.94%), Titan Ind (1.79%) and Blue Star L (0.65%).

The BSE Realty index gained (2.99%) or 97.81 points at 3,366.10. Scrips that gained are Housing Dev (11.30%), Indiabull Real (5.04%), Akruti City (5.00%), Orbit Co (4.99%) and Anant Raj (4.98%).

The BSE Pharma stocks lost (1.49%) or 54.99 points to close at 3,637.68 led by a sharp fall in Sun Pharma. Major losers are Sun Pharma (12.17%), Lupin Ltd (5.52%), Sunpha Adv (5.52%), Ranbaxy Lab (4.37%) and Dishman Pharma (3.74%).

Karnataka Bank Ltd increased by 3.98%. The bank has cut rate of interest by 50 basis points on domestic term deposits on three maturity slabs. The reduced rates will be effective from July 1.

Bank of Baroda advanced by 0.57%. The bank is planning to make its presence in all districts of Karnataka by 2010-11. Now, it present in 22 districts of Karnataka. The bank will open seven more branches during the existing financial year.

Tata Power Company Ltd gained 0.80% after the company entered into a memorandum of understanding with group firm Tata Steel to set up a 525 megawatt power plant in Netherlands.

Cairn India Ltd gained 4.05% after crude oil prices surged over 2% on the New York Mercantile Exchange on Thursday, 25 June 2009.

Videocon Industries Ltd zoomed 8.64% on reports the company could join the race to acquire Great Offshore.

Sun Pharmaceuticals Industries Ltd plunged 12.17% after reports the US drug regulator has seized generic drugs made by Caraco Pharmaceutical Laboratories, a US subsidiary of Sun Pharma.

Tata Steel Ltd ended lower by 2.53%. The company has announced the Audited results for the year ended March 31, 2009. The Company has posted a net profit of Rs 52017.40 million for the year ended March 31, 2009 as compared to Rs 46870.30 million for the year ended March 31, 2008. Total Income has increased from Rs 199338.30 million for the year ended March 31, 2008 to Rs 246240.40 million for the year ended March 31, 2009.

State Bank of Mysore ended down by 0.84%. The Bank has revised the rates with effect from June 29, 2009. Bench-Mark Prime Lending Rate: Reduction by 50 basis points and the deposit Rates Reduction by 25 basis points.

Positive global cues may push indices higher

The sharp rally in the US markets and a rise in several Asian indices in the ongoing trading session may help the domestic indices pull-back from lower levels. However, lack of clarity in the market and volatility may drag down the market. Among the indices, the Nifty could face a resistance at 4300-4350 levels and has a likely supports at 4200-4150 levels. The Sensex has a likely support at 14200 and may face resistance at 14500.

US indices bounced back sharply and finished higher, as investors scooped up a variety of shares hit in the recent selloff -- including commodity, consumer, homebuilding and tech issues. While the Dow Jones moved up by 173 points at 8,472, the Nasdaq managed to add 37 points at 1,830.

Barring few, most of the Indian floats had a field day on the US bourses. ICICI Bank flared up by 5.16% and Patni Computers jumped 4.51% , while Dr Reddy's, Wipro, HDFC Bank, MTNL, Rediff, Infosys and Tata Motors gained around 1-3% each. Among the laggards Satyam slipped 1.18% and VSNL was down by 1%.

Crude oil prices raised a little, with the Nymex light crude oil for August delivery gained by $1.56 to close at $70.23 a barrel. In the commodity space, the Comex gold for August delivery gained by $5.10 to settle at $939.50 an ounce.

BSE Bulk Deals to Watch - June 26 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
26/6/2009 524412 AAREY DRUGS SOMABHAI GOKALDAS PATEL S 35411 36.43
26/6/2009 513149 ACROW INDIA VINOD SHARES LTD B 4000 123.50
26/6/2009 513149 ACROW INDIA VINOD SHARES LTD S 4000 123.50
26/6/2009 512149 AVANCE TECHN JIGNESH CHANDRAKANT SHAH B 55617 34.92
26/6/2009 512149 AVANCE TECHN VICKY RAJESHBHAI JHAVERI S 52000 34.62
26/6/2009 532995 AVON CORP S V ENTERPRISES B 543731 10.68
26/6/2009 532995 AVON CORP MANOJ DUA S 83651 10.69
26/6/2009 532995 AVON CORP S V ENTERPRISES S 615761 10.35
26/6/2009 512253 BIO GREEN I SIDDHARTH NAHAR S 50000 13.39
26/6/2009 511628 BRESCON CORP PINKY EXHIBITORS PVT LTD B 161964 80.00
26/6/2009 511628 BRESCON CORP JDP SHARES AND FINANCE P. LTD S 131565 80.02
26/6/2009 531682 CAT TECHNOL S V ENTERPRISES B 210307 7.62
26/6/2009 531337 CHAN GUIDE I RAMESH SAWALRAM SARAOGI S 30000 32.82
26/6/2009 507833 COMPUTER POI EPOCH MERCANTILES PVT LTD B 76316 6.06
26/6/2009 530825 DAIKAF CHEMI PILOT CONSULTANTS LTD S 30000 8.00
26/6/2009 531137 GEMSTONE INV HEMANT MADHUSUDAN SHETH S 34000 22.51
26/6/2009 512604 HARIA EXPO L VILCO PHARMA PVT LTD B 531412 4.50
26/6/2009 512604 HARIA EXPO L BIMAL K HARIA HUF S 56566 4.50
26/6/2009 512604 HARIA EXPO L MINTI BINAL HARIA S 112168 4.50
26/6/2009 512604 HARIA EXPO L BIMAL KANTILAL HARIA S 356678 4.50
26/6/2009 532041 HINDUSTN BIO FAIRDEAL CORPORATION B 70000 2.58
26/6/2009 532041 HINDUSTN BIO KAMAL KUMAR JALAN SEC. PVT. LTD S 70000 2.58
26/6/2009 522059 INDAGE VIN HITESH SHASHIKANT JHAVERI B 91340 85.25
26/6/2009 522059 INDAGE VIN HITESH SHASHIKANT JHAVERI S 82102 85.23
26/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 80838 45.10
26/6/2009 516078 JUMBO BAG LT HEMENDRA AGARWAL B 40000 44.53
26/6/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 100808 44.45
26/6/2009 531602 KOFF BR PICT KAMDAR DESAI & PATEL B 410100 3.52
26/6/2009 532998 LOTUS EYE ANIL SHRIMAL S 113909 33.60
26/6/2009 531791 NOVGOL PETR GEETA NARENDRA SHAH S 32578 1.69
26/6/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 57718 57.90
26/6/2009 526133 SUPERTEX IND SHAISHIL T JHAVERI B 88000 57.89
26/6/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 59440 57.83
26/6/2009 503657 VEER ENERGY KIRITKUMAR MOHANLAL PATEL B 9513 294.98
26/6/2009 503657 VEER ENERGY VILPABEN PRANAVBHAI VORA S 9000 295.15
26/6/2009 531249 WELL PACK PA PURSOTAM SURAJMAL KOTHARI S 24001 161.57