Dead Presidents! - India Equity Research: July 2009

Friday, July 31, 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
31/7/2009 532727 ADHUNIK MET TEMPLETON MUTUAL FUND A/C FRANKLIN INDIA HIGH GROWTH INDIA FUND B 500000 101.45
31/7/2009 532981 ANU LABS KIRIT KUMAR MOHANLAL PATEL B 673337 15.12
31/7/2009 530245 ARYAMA FIN S PARESH KUMAR BABULAL SHAH B 66363 10.00
31/7/2009 530245 ARYAMA FIN S BETEL TRADING AND COMMERCIAL PVT LTD S 68000 10.00
31/7/2009 512149 AVANCE TECHN DILIP RASIKLAL PAREKH S 39723 69.40
31/7/2009 590076 CAMSON BIO JMP SECURITIES PVT LTD B 68612 55.49
31/7/2009 590076 CAMSON BIO A T INVOFIN INDIA PVT LTD B 50000 56.20
31/7/2009 590076 CAMSON BIO JMP SECURITIES PVT LTD S 67612 55.55
31/7/2009 513337 GUJ.TOOLROOM SHOBHA IMTIYAZ DESAI B 50000 8.97
31/7/2009 513337 GUJ.TOOLROOM DEVANG JAYANTKUMAR GADOYA S 50000 8.97
31/7/2009 513337 GUJ.TOOLROOM DEVANG JAYANT KUMAR GADOYA S 20000 8.97
31/7/2009 509597 HARDCAS WAUD VINOD SHARES LTD B 8000 245.00
31/7/2009 509597 HARDCAS WAUD VINOD SHARES LTD S 8000 245.00
31/7/2009 514034 JBF.IND.LTD BHAGIRATH C ARYA B 367050 74.05
31/7/2009 514034 JBF.IND.LTD NIRAJ REALTORS & SHARES PVT. LTD. S 400000 74.35
31/7/2009 514034 JBF.IND.LTD IL & FS PRIVATE EQUITY TRUST A/C. LEVERAGE INDIA FUND S 350000 85.46
31/7/2009 524826 JUPITER BIOS MACQUARIE BANK LIMITED S 110000 66.82
31/7/2009 532741 KAMDHENU NAVNIT BHAIMULCHANDBHAI SHAH S 99450 16.55
31/7/2009 530255 KAY POW PAP JOLLY GUPTA B 73100 7.62
31/7/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 64521 7.48
31/7/2009 530255 KAY POW PAP NARENDER GUPTA B 58100 7.73
31/7/2009 530255 KAY POW PAP GIRRAJPRASAD GUPTA B 97320 7.60
31/7/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 82819 7.63
31/7/2009 530255 KAY POW PAP OM PARKASH GUPTA S 75455 7.74
31/7/2009 530255 KAY POW PAP SUNDER DASS AGARWAL S 87363 7.35
31/7/2009 531731 KUVAM INTL UMESH PARMANAND BAJAJ B 18000 13.94
31/7/2009 531731 KUVAM INTL SANJEEV KUMAR GUTPA S 23000 13.94
31/7/2009 507759 LIME CHEM DUKE SPECIAL OPPORTUNITIES FUND LLC S 20000 4.28
31/7/2009 503685 MEDIA ONE EQUAAS ESTATES PRIVATE LIMITED S 94200 140.21
31/7/2009 526263 MOLDTEK TECH VIJAY KUMAR DARAPVNENI B 20000 95.88
31/7/2009 533080 MOLDTK PLA SURESH KANMAL JAJOO S 93600 32.14
31/7/2009 531096 MOUNT EVE MI DERIVE TRADING PVT LTD B 219000 71.92
31/7/2009 507813 NAT.OXYGEN VINOD SHARES LTD B 34000 34.71
31/7/2009 507813 NAT.OXYGEN VINOD SHARES LTD S 34000 34.71
31/7/2009 513121 ORICON ENT ASHOK KUMAR SATYANARAIN BIYANI S 48938 106.56
31/7/2009 511702 PARSHART INV KRUNAL GOPALDAS RANA B 20000 9.88
31/7/2009 590077 RANKLIN SOLU DEVAIAH MONDI S 25936 33.06
31/7/2009 532055 RASHEL AGROT ASHOKA FINSTOCK LTD B 50000 1.91
31/7/2009 532055 RASHEL AGROT SAHARA INDIA COMMERCIAL CORP LTD S 50000 1.91
31/7/2009 531898 SANGUINE MD ARCHIT AJIGNESH SHAH S 100000 3.25
31/7/2009 533056 SARK SYS PANNA LAL BHANSALI B 50004 16.01
31/7/2009 524540 SECUN HEALTH DHARMENDRA J MADHANI B 45000 24.30
31/7/2009 524540 SECUN HEALTH ANIL KUMAR KADAGATHUR S 72000 24.62
31/7/2009 532651 SPL INDS SURESH KANMAL JAJOO B 170000 9.35
31/7/2009 532651 SPL INDS SEEPRA SUMEET KABRA S 170000 9.35
31/7/2009 519228 TEMPT.FOODS CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 150000 34.49
31/7/2009 531962 VALLEY INDIA SANGEETABEN BANSIDHAR RANKA B 30000 11.77
31/7/2009 503657 VEER ENERGY JITENDRA KUMAR JAIN B 9500 193.46
31/7/2009 503657 VEER ENERGY HASTIMAL JAIN RAKESH B 9500 193.56
31/7/2009 503657 VEER ENERGY JITENDRA KUMAR JAIN S 9500 193.56
31/7/2009 503657 VEER ENERGY HASTIMAL JAIN RAKESH S 9500 193.81
31/7/2009 531249 WELL PACK PA HEMANT MADHUSUDAN SHETH S 33900 161.32
31/7/2009 532788 XL TEL ENE DYNAMIC STOCK BROKING INDIA PVT LTD B 94207 48.06
31/7/2009 532788 XL TEL ENE DYNAMIC STOCK BROKING INDIA PVT LTD S 91579 47.92

NSE Bulk Deals to Watch - July 31 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
31-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,255151,1030.78,-
31-JUL-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,BUY,193383,1034.46,-
31-JUL-2009,HANUNG,Hanung Toys and Textiles,TCG STOCK BROKING LTD,BUY,135000,74.41,-
31-JUL-2009,IGPL,IG Petrochemicals Ltd.,SPARK SECURITIES PVT. LTD,BUY,150632,28.65,-
31-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8348221,22.76,-
31-JUL-2009,SPLIL,SPL Industries Limited,VIMLA SURESJH JAJOO,BUY,172107,9.20,-
31-JUL-2009,XLTELENE,XL Telecom & Energy Ltd,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,107105,47.56,-
31-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,255151,1031.00,-
31-JUL-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,SELL,180983,1032.46,-
31-JUL-2009,IGPL,IG Petrochemicals Ltd.,SPARK SECURITIES PVT. LTD,SELL,170868,26.91,-
31-JUL-2009,INDIAINFO,India Infoline Limited,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,2625965,136.92,-
31-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8479644,22.73,-
31-JUL-2009,JBFIND,JBF INDUSTRIES LTD,IL & FS PRIVATE EQUITY TRUST A/C. LEVERAGE INDIA FUND,SELL,450000,85.31,-
31-JUL-2009,SPLIL,SPL Industries Limited,KABRA SEEPRA SUMEET,SELL,172107,9.20,-
31-JUL-2009,XLTELENE,XL Telecom & Energy Ltd,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,76721,47.15,-

Global stocks, fund flows to dictate trend

With the Q1 June 2009 earnings season over, the domestic bourses may track global markets in the coming days. A strong global risk appetite has boosted stocks across the globe in the past few days. The BSE Sensex struck its highest level in more than 13 months.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1792 companies rose 23% to Rs 69263 crore on 5.2% fall in sales to Rs 651371 crore in Q1 June 2009 over Q1 June 2008.

Brokerages are likely to revise their earnings estimates upwards for the Sensex after most companies forming the part of the index reported results that beat analysts' expectations.

The BSE Sensex gained 1.89% to 15,670.31 in the week ended 31 July 2009. It was the Sensex's highest closing since 17 June 2008. The S&P CNX Nifty rose 1.48% to 4636.45 in the week.

Foreign institutional investor (FII) bought shares worth a net Rs 9,653.60 crore in July 2009 (till 29 July 2009). FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. Their inflow in calendar year 2009 totaled Rs 34,197.80 crore

Investors will closely watch the progress of the annal monsoon as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains. The southwest monsoon rains, running between June to September, were 18% below normal in the week to 29 July 2009, having been above normal for the previous two weeks, the India Meteorological Department said on its website on Thursday, 30 July 2009. Total rainfall since the beginning of June was 19% below average, the weather bureau said.

Meanwhile, investor focus is likely to shift from secondary market to the primary market with the Adani Power's initial public offer seeing spectacular response. The public issue of 30.16 crore shares in the price band Rs 90-100 which opened for subscription from 28 July 2009 was oversubscribed 18.24 times by 15:00 IST on Friday, 31 July 2009, the last of the bidding. The company will raise up to Rs 3,016 crore at the upper end of the price band, making it the second-biggest issue after Reliance Power.

Close on the heels of Adani Power, state-run power company NHPC will hit the primary market to raise upto Rs 6048 crore through sale of shares in a price-band of Rs 30-36 in an IPO. The issue will open on 7 August 2009 and close on 11 August 2009. The company would sell 168 crore shares comprising of 5% stake divestment of the government and infusion of 10% fresh equity.

Globally the sentiment has been buoyant with the US equity indices surging to nine-month highs, with the Dow Jones above the psychological 9,000 mark on better-than-estimated results from frontline companies. Asian markets, too, struck 11-month high, as better-than-expected earnings of companies from Japan and US reinforced hopes of stronger global growth.

World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data the latest data from global fund tracker EPFR Global. The inflow was the highest since June 2008.

Emerging markets continued to be the darling of investors, with dedicated BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th straight week. India equity funds took in a year-to-date high of $211 million in the most recent week, while China and Greater China stock funds saw $711 million in fresh money.

Meanwhile, investors will closely watch the preliminary second-quarter US GDP data about to be released by the Commerce Department on Friday, 31 July 2009. Economists forecast a 1.5% annualised pace of contraction in the second quarter, following a 5.5% drop in the first three months of 2009.

Market extends gains for a third week in a row

Better-than-expected earnings from India Inc, strong global cues and sustained buying by foreign funds helped the key benchmark indices extend gains for the third straight week. The BSE Mid-Cap and the BSE Small-Cap indices outperformed the Sensex.

The Securities and Exchange Board of India (Sebi) on 27 July 2009 introduced new norms for the comprehensive risk management system for the equity markets in the cash segment, in a move which would now reduce the margin burden on brokers. Sebi said that in case of a buy transaction in cash market, value at risk (VaR) margins, extreme loss margins and mark to market losses together will not exceed the purchase value of the transaction.

The BSE Sensex jumped 291.35 points or 1.89% to 15,670.31 in the week ended 31 July 2009. It was the Sensex's highest closing since 17 June 2008. The S&P CNX Nifty rose 67.90 points or 1.48% to 4636.45 in the week.

The BSE Mid-Cap index jumped 189.21 points or 3.52% to 5,571.02 and the BSE Small-Cap index rose 155.63 points or 2.57% to 6,205.83

The Sensex is up 6023 points or 62.43% in calendar year 2009 as on 310 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,509.91 points or 92.02% as on 31 July 2009.

A majority of the Q1 June 2009 results surpassed analysts' expectations with lower costs helping bottomline growth. The combined net profit of 1921 companies rose 20.50% to Rs 71437 crore on 5.1% fall in sales to Rs 673497 crore in Q1 June 2009 over Q1 June 2008.

Foreign institutional investor (FII) bought shares worth a net Rs 11066.30 crore in July 2009. FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. Their inflow in calendar year 2009 totaled Rs 35369.90 crore

But a weak monsoon remains a cause of concern. The southwest monsoon rains, running between June to September, were 18% below normal in the week to 29 July 2009, having been above normal for the previous two weeks, the India Meteorological Department said on its website on Thursday, 30 July 2009. Total rainfall since the beginning of June was 19% below average, the weather bureau said.

In a major event, the Rererve Bank of India (RBI) kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%, at its quarterly monetary policy review meet on Tuesday, 28 July 2009. The central bank raised its inflation forecast, saying an uncertain outlook for monsoon rains could "accentuate" inflation for already-high food prices.

The repo rate, at which the central bank lends cash to banks, stays at 4.75%, and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.25%. Both these rates are at record low level. The statutory liquidity ratio (SLR) was also kept unchanged at 24%. The RBI also kept the cash reserve ratio (CRR), the amount of funds banks have to keep on deposit with it, unchanged at 5%.

The RBI said GDP is expected to grow at 6% in FY 2010, with an upward bias. At the time of the annual monetary policy announcement in April 2009, the central bank had forecast a 6% growth. So, the words 'upward bias' were the addition to that forecast.

Finance Minister Pranab Mukherjee after trading hours on 28 July 2009 announced tax breaks for industrial park schemes and developers of real estate and road projects to stimulate the economy and lift growth to 8-9 % by the end of 2010. He announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh.

In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.

The government has also extended tax holiday to developers of industrial parks by two years until March 2011. A tax holiday for firms engaged in food processing has also been extended. Producers of natural gas from coal-bed methane blocks would also be extended tax breaks.

Markets across the globe with the US equity indices surging to nine-month highs, with the Dow Jones above the psychological 9,000 mark on better-than-estimated results from frontline companies. Asian markets, too, struck 11-month high, as better-than-expected earnings of companies from Japan and US reinforced hopes of stronger global growth.

World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data the latest data from global fund tracker EPFR Global. The inflow was the highest since June 2008.

Emerging markets continued to be the darling of investors, with dedicated BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th straight week. India equity funds took in a year-to-date high of $211 million in the most recent week, while China and Greater China stock funds saw $711 million in fresh money.

Closer home, trading for the week began on a muted note as key benchmark ended almost unchanged on Monday, 27 July 2009, after gyrating either sides throughout the day. The BSE 30-share Sensex slipped 3.92 points or 0.03% to 15,375.04 and the S&P CNX Nifty was up 3.75 points or 0.08% to 4,572.30.

Indices settled with modest losses on Tuesday, 28 July 2009 after swinging wildly either ways during the course of the day. The Reserve Bank of India raised inflation and GDP growth forecast while keeping key policy rates unchanged at their historical low level at a quarterly monetary policy review. The BSE 30-share Sensex was down 43.10 points or 0.28% to 15,331.94 and the S&P CNX Nifty was down 8.20 points or 0.18% to 4,564.10

A sell-off in Chinese stocks on Wednesday, 29 July 2009, amid speculation the central bank is poised to order lenders to set aside larger reserves, triggered a slide in stocks across emerging markets including India. The BSE 30-share Sensex lost 158.48 points or 1.03% to 15,173.46 and the S&P CNX Nifty fell 50.60 points or 1.11% to 4,513.50

Strong Q1 June 2009 earnings from State Bank of India (SBI) and Mahindra & Mahindra (M&M) and firm global stocks helped the key benchmark indices snap a three day losing streak on Thursday, 30 July 2009. The BSE 30-share Sensex rose 214.50 points or 1.41% to 15,387.96 and the S&P CNX Nifty was up 57.95 points or 1.28% to 4,571.45.

Strong global cues and better-than-expected Q1 June 2009 earnings of India Inc triggered surge in the key benchmark indices on Friday, 31 July 2009. The BSE 30-share Sensex gained 282.35 points or 1.83% to 15,670.31, its highest closing since 17 June 2008. The S&P CNX Nifty rose 65 points or 1.42% to 4,636.45.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 2.81% to Rs 1957.10 in the week. Reliance Natural Resources (RNRL) chairman Anil Ambani on 28 July 2009 accused the Petroleum Ministry of being biased in the legal dispute with brother Mukesh Ambani-led Reliance Industries (RIL) over the price of natural gas from the Krishna-Godavari basin. Addressing shareholders of the company, he also said the government would not lose a single rupee even if the gas from RIL's fields off the Andhra Pradesh coast were to be supplied to his company at the originally contracted price of $2.34 per unit.

Anil Ambani asked the Oil Ministry to cancel the Production Sharing Contract with RIL if it was really aggrieved and not challenge third party agreements. Giving details of the global gas scenario, he said the price of the industrial fuel had crashed 80% and the gas price of $4.2 per mmBtu (fixed by the Government) was "exorbitant" and against public interest.

Last month, the Bombay High Court had asked Reliance Industries to supply 28 million units of gas to Reliance Natural Resources for 17 years at $2.34 per unit, after assigning 12 million units to the state-run power utility NTPC. Reliance Industries challenged the verdict in the Supreme Court, which heard the case on 20 July 2009 and fixed 1 September 2009 as the next date of hearing. It also asked all the parties to file their replies on the government position on the matter by then.

India's largest FMCG company by sales Hindustan Unilever rose 3.23% to Rs 291.20, after striking a 52-week high of Rs 306 on 28 July 2009. The company's net profit declined 2.68% to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared in late trade on 28 July 2009.

Auto stocks were in demand. India's largest truck market by sales Tata Motors gained 12.86% after net profit rose 57.54% to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008. Analysts had expected a steep fall in net profit due to lower sales volume. The result was announced at the fag end of the trading session on 27 July 2009.

India's top small car maker by sales Maruti Suzuki India gained 2.57% to Rs 1413.25 after striking a record high of Rs 1428.65 on 31 July 2009. The company had announced strong Q1 June 2009 results during market hours on 23 July 2009.

India's largest tractor maker by sales Mahindra & Mahindra rose 3.12% to Rs 856.80 after hitting a 52-week high of Rs 892 on 31 July 2009. The company's net profit rose 151.63% to Rs 400.80 crore on 28.04 % rise in total income to Rs 426.61 crore in Q1 June 2009 over Q1 June 2008. The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance and Punjab Tractors which were merged with the company. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter. The results were announced after market hours on Thursday, 30 July 2009.

Metal stocks gained on firm metal prices in the London Metal Exchange. India's largest private sector steel maker by sales Tata Steel gained 5.18% even as net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours 29 July 2009.

Steel Authority of India (up 2.33%), and Hindalco (up 6.94%), National Aluminium Company (up 2.82%), gained.

India's largest copper market by sales Sterlite Industries slipped 1.23% after net profit fell 68.5% to Rs 112.70 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on 29 July 2009.

IT stocks rose on the back of robust Q1 earnings from IT pivotals in the past few days. India's second largest IT firm by sales Infosys rose 3.02%. India's largest IT exporter by sales TCS jumped 9.25%. India's third largest IT exporter by sales Wipro spurted 6.80%.

India's largest cellular services provider by sales Bharti Airtel fell 1.19%. As per reports, Bharti Airtel and South Africa's MTN may extend by about four weeks their 31 July 2009 deadline for talks to agree on a merger.

India's largest power generation company by sales NTPC rose 2.25% after net profit jumped 27.1% to Rs 2193.62 crore on a 25.8% increase in sales to Rs 12002.68 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours on 27 July 2009.

Other power generation firms gained as strong response to the Adani Power initial public offer lifted sentiment for the sector. The Adani Power issue was oversubscribed 21.51 times by 17:00 IST on the last day of the issue on 31 July 2009.

Reliance Infrastructure (up 2.91%), Tata Power (up 11.02%), and CESC (up 7.45%), advanced.

Bank stocks were mixed. India's largest private sector bank by net profit ICICI Bank slipped 1.02%. The bank's net profit rose 20.63% to Rs 878.22 crore on a 2.2% decline in operating income to Rs 9223.32 crore in Q1 June 2009 over Q1 June 2008. The bank reported its earnings on 25 July 2009. However, India's second largest private sector bank in terms of operating income HDFC Bank rose 3.30%.

India's biggest commercial bank in terms of branch network State Bank of India (SBI) rose 6.80% after net profit jumped 42.02% to Rs 2330.37 crore on 29.86% rise in total income to Rs 21041.51 crore in Q1 June 2009 over Q1 June 2008. The results hit the market during trading hours on 30 July 2009.

Realty stocks gained after the Reserve Bank of India (RBI) kept key policy rates unchanged at their historical low at its quarterly monetary policy review on 28 July 2009.

India's largest real estate developer by sales DLF rose 0.64%. The company's net profit surged 236.23% to Rs 100.40 crore on a 652.69% spurt in sales to Rs 417.97 crore in Q1 June 2009 over Q4 March 2009. The company announced the result after market hours on 30 July 2009.

Unitech (up 3.39%), Housing Development & Infrastructure (up 5.16%), Parsvnath Developers (up 8.04%), advanced.

Sensex strikes 13-month high on better-than-expected Q1 results

The key benchmark indices surged for the second straight day as gains in Asian stocks, higher US index futures and better-than-expected Q1 June 2009 earnings of India Inc boosted sentiment. The BSE 30-share Sensex rose 282.35 points or 1.83%. The barometer index today struck its highest closing level in more than 13 months. Banking
, oil & gas, IT and FMCG stocks rose. But realty stocks fell in volatile trade. The market breadth, indicating the overall health of the market weakened in the second half of the trading session compared to earlier strong breadth.

The Sensex is up 6023 points or 62.43% in calendar year 2009 as on 31 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,509.91 points or 92.02% as on 31 July 2009.

Coming back to today's trade, a bout of intraday volatility was witnessed. After surging in morning trade on firm Asian stocks, the market pared gains in early afternoon trade. The market firmed up again later. The market once again pared gains in mid-afternoon trade. The market surged in late trade on rally in RIL.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1921 companies rose 20.5% to Rs 71437 crore on 5.1% fall in sales to Rs 673497 crore in Q1 June 2009 over Q1 June 2008. The earnings season gets over today, 31 July 2009.

But a weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. On the flip side, water levels in India's 81 main reservoirs rose to 35% of capacity in the week to 30 July 2009, up from 23% a week earlier and 31% a year ago, government data showed. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Farm Minister Sharad Pawar on Friday, 31 July 2009, said that summer-sown crops such as sugarcane, oilseeds and cotton have covered more than half the normal area, and sowing is likely to rise. He also said weak monsoon rains would have a marginal impact on inflation.

World equity funds garnered $9.5 billion in the week ending 29 July 2009, according to data the latest data from global fund tracker EPFR Global. The inflow was the highest since June 2008.

Emerging markets continued to be the darling of investors, with dedicated BRIC (Brazil, Russia, India and China) equity funds seeing net inflows for a 19th straight week. India equity funds took in a year-to-date high of $211 million in the most recent week, while China and Greater China stock funds saw $711 million in fresh money.

European equities were flat after moving between gains and losses in intraday trade. Key benchmark indices in France and UK were up by between 0.01% to 0.09%. Germany's DAX fell 0.07%.

Asian stocks climbed today as better-than- expected earnings and a rally in commodities lifted confidence the global economy is headed towards recovery. Key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.72% to 2.72%.

Trading in the US index futures indicated Dow could rise 36 points at the opening bell today, 31 July 2009.

US markets rallied on Thursday, 30 July 2009, logging the highest close since November 2008, despite a late-afternoon pullback. It was the highest close for the Dow and S&P since November 2008, and for the Nasdaq, since October 2008.

The Dow Jones Industrial Average rose 83.74 points to close at 9154.46. The S&P jumped 1.2% to close near the 1,000 mark and the Nasdaq added 0.84% to finish near the 2,000 mark. In economic news, the number of US workers staying on jobless rolls fell to the lowest level in three months while the four week moving average for new claims dropped by 8250 to 559000, the lowest level since late January 2009.

The BSE 30-share Sensex was up 282.35 points or 1.83% to 15,670.31 its highest closing since 17 June 2008. The Sensex rose 344.85 points at the day's high of 15,732.81 in morning trade. The Sensex rose 61.51 points at the day's low of 15,449.47 in early trade.

The S&P CNX Nifty was up 65 points or 1.42% to 4,636.45 its highest closing since 11 June 2009. Nifty August 2009 futures were at 4636.05 at almost the same level as the spot closing of 4636.45.Turnover on NSE's futures & options (F&O) segment was Rs 57151.46 crore, much lower than Rs 94477.38 crore on Thursday, 30 July 2009.

BSE clocked a turnover of Rs 6,249 crore, higher than Rs 6,065.04 crore on Thursday, 30 July 2009.

The market breadth, indicating the overall health of the market, was positive. But the breadth weakened when compared to a strong breadth earlier in the day. On BSE, 1401 shares advanced as compared with 1,299 that declined. A total of 101 shares remained unchanged.

Among the 30-member Sensex pack, 23 rose while rest declined.

The BSE Mid-Cap index was up 1.17% and the BSE Small-Cap index was up 0.03%. Both these indices underperformed the Sensex.

The BSE FMCG index (up 3.17%), the BSE Oil & Gas index (up 2.65%), the BSE Bankex (up 1.92%), outperformed the Sensex.

The BSE Realty index (down 1.36%), the BSE Healthcare index (up 0.39%), the BSE Power index (up 0.47%), the BSE TECk index (up 0.49%), the BSE Capital Goods index (up 1.05%), the BSE PSU index (up 1.19%), the BSE Auto index (up 1.24%), the BSE Metal index (up 1.47%), the BSE Consumer Durables index (up 1.6%), the BSE IT index (up 1.81%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 3.01% to Rs 1,957.10 on bargain hunting after a recent sharp fall. The Supreme Court on Thursday said, it will give a date on 1 September 2009 to expedite the decision pertaining to the Krishna-Godavari basin gas dispute between Mukesh Ambani's Reliance Industries (RIL) and Anil's Ambani's Reliance Natural Resources (RNRL). RNRL counsels Mukul Rohatgi and Mahesh Agrawal sought an early decision in the case.

RNRL chairman Anil Ambani has said the gas supply dispute between RIL and Reliance Natural Resources (RNRL) vitally affects public interest and will seek an early judgment in the case. The matter concerns power projects of national importance representing a capacity of 12,000 megawatt (MW) and an investment of over Rs 50,000 crore and affects the interests of over 10 million shareholders, he said.

The Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.

RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.

In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row.

Oil exploration pivotals rose after US crude futures bounced back on Thursday, ending nearly 6.4% higher to reverse losses suffered in the previous session as Wall Street sizzled and the dollar edged lower. India's largest state-run oil exploration firm by sales ONGC rose 5.91%. Cairn India rose 1.33%. On the New York Mercantile Exchange, September crude settled up $3.59, or 5.67%, at $66.94 a barrel. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

FMCG stocks rose on improvement in India's annual monsoon in July 2009 after a dry spell in June 2009. FMCG firms derive substantial revenue from rural sector. Britannia Industries, ITC, Dabur India, REI Agro, United Spirits, Tata Tea, rose by between 0.84% to 3.27%.

India's largest FMCG company by sales Hindustan Unilever rose 3.32%. The company reported a 2.68% fall in net profit to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared during trade hours on Tuesday, 28 July 2009.

Bank stocks rose on strong Q1 results from State Bank of India, India's biggest commercial bank in terms of branch network. State Bank of India (SBI) rose 5.29% extending Thursday's 4.37% gains as its net profit jumped 42.02% to Rs 2330.37 crore on 29.86% rise in total income to Rs 21041.51 crore in Q1 June 2009 over Q1 June 2008. The results hit the market during trading hours on Thursday 30 July 2009.

India's second largest private sector bank in terms of operating income HDFC Bank rose 2.73% as its ADR rose 3.93% on Thursday. India's largest private sector bank in terms of operating income ICICI Bank rose 0.49% as its ADR rose 4.47% on Thursday.

Rate sensitive realty shares fell on profit taking after a recent rally. Investors are concerned that the central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation. Rising interest rates may dent property demand as most of the commercial and housing deals are driven by finance.

India's largest real estate developer by sales DLF fell 1.48% even as net profit surged 236.23% to Rs 100.40 crore on a 652.69% spurt in sales to Rs 417.97 crore in Q1 June 2009 over Q4 March 2009. The company announced the result after market hours on Thursday. 30 July 2009. Unitech, Indiabulls Real Estate, Phoenix Mills and Omaxe fell by between 1.35% to 3.57%.

India's largest mobile telecom player by sales Bharti Airtel fell 3.06% on reports the merger deal between Bharti Airtel and South Africa's MTN is likely to extended to September this year. The two companies could extend the exclusivity period for discussion by a few weeks. The original timeline for discussions expires on 31 July 2009. In the event of the deal going through, the Bharti-MTN combined entity will be the third-largest wireless group globally.

India's second largest mobile services provider by sales Reliance Communications fell 2.11%, reversing early gains, ahead of its Q1 June 2009 results. The consolidated net profit rose 8.3% to Rs 1637 crore in Q1 June 2009 over Q1 June 2008. The results were announced after market hours today.

IT stocks rose on better-than-expected Q1 June 2009 results by IT pivotals in the past few days. India's second largest IT exporter by sales Infosys rose 2.66% as its American depository receipt (ADR) rose 1.56% on Thursday. India's thirds largest IT exporter by sales Wipro rose 0.43% as its ADR rose 1.77% on Thursday. But India's largest IT exporter by sales TCS fell 0.68%.

Capital goods and construction stocks rose on government's thrust on infrastructure sector in Union Budget 2009-2010. Nagarjuna Construction Company, Hindustan Construction Company, Era Infra Engineering, Gayatri Projects and IVRCL Infrastructure & Projects rose by between 1.95% to 5%.

From capital goods space, Bharat Heavy Electricals, Larsen & Toubro, Punj Lloyd, ABB, BEML, Siemens rose by between 0.57% to 1.55%.

Some power stocks fell on profit taking even after a strong response to the Adani Power initial public offer (IPO) which opened for subscription on Tuesday, 28 July 2009. Reliance Power, Power Grid Corporation Of India, NTPC, CESC fell by between 0.47% to 3.24%.

By 16:00 IST on final day of the bidding today, 31 July 2009, the Adani Power IPO was subscribed 21.37 times.

Reliance Infrastructure rose 1.69% after net profit rose 25.35% to Rs 316.57 crore in Q1 June 2009 over Q1 June 2008. The company announced result after market hours on Thursday, 30 July 2009.

Tata Power Company rose 0.63% after its net profit rose 144.19% to Rs 396.97 crore in Q1 June 2009 over Q1 June 2008. The result hit the market at the fag end of the trading session

Auto stocks rose after posting strong Q1 June 2009 results in the past few days. India's largest truck market by sales Tata Motors rose 6.61%. The company on Tuesday, 28 July 2009, reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008.

India's largest tractor maker by sales Mahindra & Mahindra rose 0.56% extending Thursday's gains after net profit rose 151.63% to Rs 400.80 crore on 28.04 % rise in total income to Rs 426.61 crore in Q1 June 2009 over Q1 June 2008. The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance and Punjab Tractors which were merged with the company. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter. The results hit the market during trading hours on Thursday, 30 July 2009.

India's top small car maker by sales Maruti Suzuki India rose 1.11%.

But, India's largest bike maker by sales Hero Honda Motors fell 2.08%. The company posted 83% jump in net profit to Rs 500 crore on 34% rise in total revenue to Rs 3865 crore in Q1 June 2009 over Q1 June 2008. The company announced the Q1 result after market hours on Wednesday, 29 July 2009.

Metal stocks rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 4.02% on Thursday, 30 July 2009.

India's largest private sector steel maker by sales Tata Steel rose 2.12%. The company's net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.

But, India's second largest steel maker by sales Steel Authority of India fell 0.11%. Net profit fell 27.74% to Rs 1326.09 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during trading hours on Thursday.

India's largest copper market by sales Sterlite Industries rose 2.91%. Net profit fell 68.5% to Rs 112.70 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.

India's largest aluminum maker by sales Hindalco Industries rose 6.65% after the company reported lesser-than-expected 31% fall in net profit to Rs 480.56 crore in Q1 June 2009 over Q1 June 2008. The result hit the market in mid-afternoon trade.

India's second largest aluminum maker by sales National Aluminum Company rose 5.15% even as net profit fell 75.92% to Rs 126.45 crore in Q1 June 2009 over Q1 June 2008.

Sugar stocks fell on concerns sugar prices will fall on higher supplies after the government extended duty-free imports of both raw and refined sugar beyond 31 July 2009. Bajaj Hindusthan, Shree Renuka Sugars and Dhampur Sugars fell by between 0.89% to 3.88%.

Mahindra Satyam clocked highest volume of 1.73 crore shares on BSE. Unitech (1.65 crore shares), Suzlon Energy (1.62 crore shares), Ispat Industries (1.36 crore shares) and Cals Refineries (1.27 crore shares) were the other volume toppers in that order.

Reliance Industries clocked highest turnover of Rs 198.55 crore on BSE. State Bank of India (Rs 193.77 crore), Mahindra Satyam (Rs 181.9 crore), DLF (Rs 176.71 crore) and Aban Offshore (Rs 164.20 crore) were the other turnover toppers in that order.

Adani Power IPO receives huge investor response

IPO bid 21.5 times

The Adani Power initial public offering (IPO) got overwhelming response. The IPO was subscribed 21.51 times by 17:00 IST on the last day of IPO today, 31 July 2009. The IPO received bids for 535.16 crore shares as compared to 24.87 crore shares on offer. Of the total issue size of 30.16 crore shares, 5.28 crore shares were allotted to anchor investors, a day before the opening of the issue.

Adani Power has become the first Indian listing candidate to use new rules that allow companies to sign up anchor investors through a bookbuilding process, one day before the formal order taking starts. The company has allocated 5.28 crore shares at Rs 95 per equity share (at the mid-point of the price band) to six different anchor investors, some of which will take shares through several sub-funds in anchor portion of the Adani offering. The six buyers are: Ecofin, AIC Advantage Fund, CLSA, T Rowe Price International, Sundaram BNP Paribas Mutual Fund and Credit Suisse.

As per Securities and Exchange Board of India (Sebi) norms, there is a 30-day lock-in for anchor investors.

Adani Power had fixed price band of Rs 90 to Rs 100 per equity share for its initial public offering (IPO). The Adani Power issue is the second biggest public offer after that of Reliance Power in 2008.

The proceeds of the IPO will be used to partly finance the construction and development of its coal-based power projects at Mundra in Gujarat and Tiroda in Maharashtra. Post listing, promoter Adani Enterprises will hold about 73.5% in the power firm.

Adani Power is implementing two thermal power plants in Mundra in Gujarat and Tiroda in Maharashtra. It has signed power purchase agreements with Haryana, Maharashtra and Gujarat governments for selling power from the 2,000 megawatt Mundra and 1,320 megawatt Tiroda projects. The company also proposes to set up a 1,320- megawatt plant in Rajasthan and another 1,980 megawatt project at Dahej in Gujarat.

Currently, Adani Power has no operational power plant except the modest 330-MW unit I of Mundra Power Project (MPP)'s phase I, synchronized in May 2009. All others are either under execution or on the drawing board. This Unit I of MPP is expected to go on stream this month and the revenue generation is expected thereafter.

Pre Session Commentary - July 31 2009

Today domestic markets are likely to open positive as majority of Asian markets have opened in the positive territory. There was a lot of short covering in yesterday''s trade due to F&O expiry, which helped benchmark indices mark gains. There is some positive momentum prevailing across the world which will benefit to bolster the domestic sentiments as well. Broad based buying effort could emerge during the day''s trade.

On Thursday, domestic markets closed higher. The domestic market rebounded sharply from initial losses to close near day’s high after exhibiting instability during the early trading hours. Speculators contributed to upward movement as indulged in covering short positions on the last day of the expiry of the July contracts in derivatives. Firm trading in European markets along with recovery in Asian markets and higher US index futures also added to the positive sentiments. In addition, market gained ground during afternoon trade after initial slide, also on encouraging first-quarter earnings by State Bank of India. The bank reported 42.03% rise in its net profit in first quarter. Meanwhile, inflation for week ended July 18 it came in at -1.54% as compared to -1.17% for the previous week ended July 11, 2009. The BSE Sensex ended above 15,350 level and NSE Nifty closed above 4,550 mark. Today domestic markets are likely to trade positive.

The BSE Sensex closed higher by 241.50 points or (1.41%) at 15,387.96 and NSE Nifty ended up by 57.95 points or (1.28%) at 4,571.45. BSE Mid Caps and Small Caps closed with gains 29.31 and 49.26 points at 5,506.40 and 6,204.01 respectively. The BSE Sensex touched intraday high of 15,409.91 and intraday low of 15,065.48.

On Thursday, the US stock markets closed higher. Better than expected earnings report and lack of negative news helped markets gain at broader level. The markets witnessed broad based buying effort along with shot covering. The material sector was in the limelight supported by higher commodity prices and also Dow Chemical (DOW 21.51, +1.24). Visa (V 67.05, +0.27) and MasterCard (MA 194.17, +5.62) both reported upside earnings results of their own and also provided support to the financial sector. The northward movement in the markets was supported by news that the four-week moving average for initial jobless claims fell to its lowest level in months, even though weekly claims climbed more than expected. Continuing claims declined more than expected for another straight week. Continuing claims now stand at levels not seen since April, but many economists caution that the labor market remains far from good. US light crude oil futures for September delivery closed at $67 per barrel up by 5.8% on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed higher by 83.74 points at 9,154.16, NASDAQ index inclined by 16.54 points to 1,984.30 and the S&P 500 (SPX) closed higher by 11.45 points at 986.60.

Today major stock markets in Asia are trading positive. Hang Seng is up by 419.65 points at 20,653.73. Shanghai Composite is up by 40.289 points at 3,361.849. Japan''s Nikkei is trading up by 171.77 points at 10,336.98. Strait Times is up by 17.20 points at 2,653.39.

Indian ADRs ended in green on Thursday. In the banking space, ICICI Bank was up 4.47% and HDFC Bank was up 3.93%. In the telecom space, Tata Communication was up 2.99% and MTNL was up 1.86%. In the IT space, Satyam Computers was up 2.18%, Infosys was up 1.56%, Wipro was up 1.77% and Patni Computers was up 20.45%. In other sectors, Sterlite Industries was up 5.33%, Tata Motors was up 3.15% and Dr Reddy''s Labs was up 0.9%.

The FIIs on Thursday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 2,851.70 Crore, while the gross equity sold stood at Rs 2,712.60 Crore and gross debt purchased stood at Rs 387.20 Crore, while gross debt sold stood at Rs 0.00 Crore. The net investment of equity reported was Rs 139.10 Crore and net debt was Rs 387.20 Crore.

On Thursday, the partially convertible rupee ended at Rs 48.34/35, 0.16% stronger than its previous close at 48.42/43. The rupee gained on the back of phenomenal resurgence in the local stock markets.

On BSE, total number of shares traded were 39.47 Crore and total turnover stood at Rs 6,065.04 Crore. On NSE, total number of shares traded were 103.33 Crore and total turnover was Rs 23,186.09 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 69415188 shares, followed by Suzlon Energy with 47803705, Tata Steel with 19407942, SAIL with 18185228 and DLF with 14563513 shares.

On NSE Future and Options, total number of contracts traded in index futures was 869901 with a total turnover of Rs 19,296.52 Crore. Along with this total number of contracts traded in stock futures were 1066247 with a total turnover of Rs 32,282.30 crore. Total numbers of contracts for index options were 1783295 with a total turnover of Rs 40,648.73 Crore and total numbers of contracts for stock options were 75027 and notional turnover was Rs 2,249.84 Crore.

Today, Nifty would have a support at 4,598 and resistance at 4,672 and BSE Sensex has support at 15,412 and resistance at 15,575.

Market may extend Thursday's gains

The key benchmark indices may extend Thursday's (30 July 2009) gains tracking firm global cues. Strong Q1 June 2009 earnings of India Inc announced so far will support market.

Strong Q1 June 2009 earnings from State Bank of India (SBI) and Mahindra & Mahindra (M&M) and firm global stocks helped the key benchmark indices snap a three day losing streak on Thursday, 30 July 2009. The BSE 30-share Sensex rose 214.50 points or 1.41% to 15,387.96, its highest closing since 11 June 2009 on Thursday. Volatility was high as traders rolled over positions from July 2009 contracts to August 2009 contracts in the futures & options segment ahead of the expiry of July 2009 contracts on 30 July 2009.

As per the provisional figures on BSE, foreign funds bought shares worth Rs 366.81 crore and domestic funds sold shares worth Rs 286.67 crore on 30 July 2009.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1438 companies rose 23% to Rs 68,806 crore on 5.3% fall in sales to Rs 645438 crore in Q1 June 2009 over Q1 June 2008. Reliance Communications, Tata Power Company, Aban Offshore, ABB, Adlabs Films, Dish TV, Divi's Laboratories, Orchid Chemicals, Anant Raj Industries, Sterlite Biotech, Federal Bank, Suzlon Energy, Gammon India, Reliance Capital, MTNL among others will announce their quarter ended June 2009 result today.

A weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. But water levels in India's 81 main reservoirs rose to 35 percent of capacity in the week to July 30, up from 23 percent a week earlier and 31 percent a year ago, government data showed.More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Asian stocks climbed today as better-than- expected earnings and a rally in commodities lifted confidence the global economy is headed toward recovery. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.43% to 1.77%.

The US markets rallied on Thursday, 30 July 2009 logging the highest close since November, despite a late-afternoon pullback. It was the highest close for the Dow and S&P since November 2008, and for the Nasdaq, since October 2008.

At closing bell, the Dow Jones rose 83.74 points to close at 9154.46. The S&P jumped 1.2% to close near the 1,000 mark and the Nasdaq added 0.84% to finish under 2,000.In economic news, the number of US workers staying on jobless rolls fell to the lowest level in three months government data showed, while the four week moving average for new claims dropped by 8250to 5,59000 lowest level since late January.

Grey Market - NHPC or Adani or both ?

Excel Infoways Ltd. 85

5 to 7

Raj Oil Mills Ltd. 100 to 120

Discount

Adani Power 90 to 100

6 to 6.50

NHPC 30 to 36

9 to 9.50

Firm global indices indicates positive open

After posting gains in the last sessions, the bias for the market may remain positive. The market is expected to make further headways on surging international indices and prevailing strong bullish sentiment. However, investors should remain cautious on account of the prevalence of a intra-day volatility. Among the local indices, the Nifty could test higher levels in the 4610-4650 range and has a support in the 4525-4485 range. The Sensex on the downside may slip to 15200 and may face resistance at 15463.

Major US indices roseThursday, hitting their highest levels in nearly 9 months, as investors eyed the latest batch of better-than-expected profits and forecasts and a report that suggested the labor market is starting to stabilize. While the Dow Jones flared up by 84 points at 8154, the Nasdaq moved up by 17 points to close at 1984.

All the Indian ADRs traded firm on the US bourses. Patni Computers led the pack with gains of over 20% while, ICICI Bank, HDFC Bank, Tata Motors, Rediff, Satyam, VSNL jumped over 1-4% and Infosys, Wipro, MTNL and Dr Reddy's closed with the marginal gains.

Crude oil prices raised, with the Nymex light crude oil for September delivery gaining by $3.59 to close at $66.94 a barrel. In the commodity space, the Comex gold for December delivery raised $7.60 to settle at $937.30 an ounce.

BPCL

GSPL

SGX Nifty shows huge gap up

4,640.5 +62.5

Power Grid

ICSA India

We recommend a buy in ICSA India from a short-term perspective. It is evident from the charts that the stock was in a medium-term downtrend from a June high of Rs 214 to a July low of Rs 138. The band between Rs 138 and Rs 150 is a key long-term support. The stock is currently trading above its 21 and 50-day moving averages. Moreover, it appears to have resumed its intermediate-term uptrend that has been in place since the March low of Rs 48. The daily relative strength index (RSI) has entered in the bullish zone and the weekly RSI is on the brink of entering into this zone. Besides, both daily and weekly moving average convergence and divergence indicators are hovering in the positive territory. From the short-term perspective we are bullish on the stock. We expect its rally to prolong until it knocks our price target of Rs 206 in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 177.

via BL

Great Offshore

HPCL

Tulip Telecom

Nagarjuna Constructions

SAIL

Daily News Roundup - July 31 2009

Bombay High Court allows RIL to amend plea in NTPC suit (ET)

Supreme Court declines RNRL’s plea for September 1 settlement (BS)

Software firms such as Infosys, Wipro are in talks with ECGC for risk cover against payment dues from overseas customers (Mint)

SAIL may hit capital market through another public offering this year to raise funds for its ongoing expansion program (ET)

Cairn to start production from its Rajasthan desert field of Mangala next month (ET)

Essar Power has tied-up debt required for Rs48.6bn, 1200MW thermal power plant in Madhya Pradesh (ET)

Tata Communication bags an outsourcing deal from Gotalk, an Australia-based communication company (BS)

BoB is planning to foray into private equity space (BS)

Bharat Forge and MIDC join hands for a multi-product SEZ to be developed at Khed in Pune district (ET)

UTV founder may sell minority stake in UTVi, its English news channel (BS)

Mphasis plans to double its BPO employees over the next 2-3 years from the current strength of 18,000 (BS)

Subex has moved about 20% of work being done by its subsidiaries in Europe and America to India (BS)

Apollo Hospitals to invest US$175mn on five new specialty hospitals for children (BS)

Inflation for the week ended July 18 was at -1.54% (ET)

Approvals for overseas borrowings by Indian corporates have touched almost US$2bn in June 2009 (ET)

Undistributed dividends of foreign entities controlled or owned by Indian companies will be taxed in the near future (ET)

STT collection clocks positive growth in July 2009 after nine months of yoy decline (ET)

Government will award road projects worth Rs2,000bn in the next two years (ET)

Monsoon progress still weak so far with deficit standing at 19% (FE)

The world’s on a high!

He who would leap high must take a long run.

After consolidating for the first three days, the bulls are back on their feet. The undertone remains broadly positive though some softening shouldn’t surprise anyone. Today, the key indices could see a sprinted start. US stock benchmarks have made their highs for the year. The Nikkei in Japan too has hit a new peak for 2009.

Global investors responded to a slew of better than expected earnings and macroeconomic data in late July by pumping fresh money into a broad range of asset classes. EPFR Global-tracked equity funds posted inflows of $9.5bn - the highest weekly tally since mid-June, 2008. The economic picture is brightening up, both in India and abroad. Earnings have exceeded expectations across the globe. Risk appetite seems to be back in flavour. Liquidity was never an issue, though too much of it is definitely not healthy.

The feel good has its flip side too. Crude oil and other commodities are also climbing. Food prices remain elevated despite headline WPI inflation being in the red for seven successive weeks. Monsoon remains a joker in the pack and could fuel inflationary expectations if rain Gods refuse to relent.

The local bulls have to retain their energy for a longer run before leaping to new highs. Companies too have to show meaningful appreciation in the topline to warrant an upgrade. Economic data also has to be persistently good. All in all, we will continue to witness fluctuations in stock prices over the next few weeks and months. It is not going to be a one-way street where only the bulls will dominate. The bears might also get opportunities to stage a come back. A big crash in not expected and markets' direction will hinge on daily dose of news.

Results Today: Aban Offshore, ABB, Adlabs, Anant Raj, Arvind, Aurobindo Pharma, Bombay Dyeing, Britannia, Deccan Chronicle, Dish TV, Divi's Lab, Dredging Corp., Edelweiss, Federal Bank, Gammon India, GMR Infra, GE Shipping, Gujarat Flurochemicals, Gulf Oil, Hindalco, Hotel Leela, Indiabulls Financial, Indian Hotels, MTNL, NALCO, Orchid Chem, RCOM, Reliance Capital, Suzlon, Syndicate Bank, Tata Power, TVS Motor, Unitech and Videocon.

FIIs were net buyers of Rs3.67bn in the cash segment on Thursday on a provisional basis while the local funds pulled out Rs2.87bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs3.39bn. On Wednesday, the foreign funds were net buyers of Rs1.39bn in the cash segment. Mutual Funds were net sellers on the same day at Rs2.92bn.

US stocks rallied on Thursday, with the key indices hitting their highest levels in nearly nine months. Investors welcomed the latest batch of better-than-expected profits and forecasts besides a report that suggested that the labor market is starting to stabilize.

The Dow Jones Industrial Average rose 83 points, or 0.9%, to 9,154.46, ending at its best level since Nov. 4. It was also the highest close for the blue-chip index in 2009. The S&P 500 index added 11 points, or 1.2%, to 986.75, ending at its highest point since Nov. 4. The Nasdaq gained 16 points, or 0.8%, to 1,984.30, its highest close since Oct. 1. The major gauges had managed bigger gains earlier in the session, but lost a little momentum by the close.

Stocks gains were broad-based Thursday, with 25 of 30 Dow components rising.

Shares of Dow component GE gained nearly 7%. Goldman Sachs upgraded it to "buy" from "neutral" after legislators appeared to back down on the question of whether GE should separate itself from its troubled finance unit GE Capital. A variety of financial shares gained.

Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.60% from 3.66% late on Wednesday.

US light crude oil for September delivery rose $3.57 to settle at $66.72 a barrel on the New York Mercantile Exchange.

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

COMEX gold for December delivery rose $7.60 to settle at $937.30 an ounce.

The number of Americans filing unemployment claims for a week or more, a measure known as continuing claims, slipped by more than expected. According to a Labor Department report, continuing claims dipped to 6.2 million last week, from a revised 6.25 million the previous week, for their lowest level since mid-April and short of forecasts for 6.3 million.

The continuing claims report overshadowed the regular weekly jobless claims report, which showed a bigger-than-expected rise to 584,000. However, that rise was largely related to seasonal issues related to auto plant shutdowns.

Two Dow components reported results on Thursday morning. Oil behemoth Exxon Mobil reported a steep drop in second-quarter income due to weaker demand and falling oil and gas prices. Weaker quarterly earnings missed estimates on weaker revenue that topped estimates. Shares fell 1%.

Dow component Travelers also reported weaker profit that missed forecasts. But the financial company also boosted its full-year earnings forecast. Shares fell 2%.

Among other companies reporting results, telecom Motorola posted higher quarterly earnings that topped forecasts on weaker revenue that missed. The company shipped 14.8 million phones in the quarter, nearly half what it shipped a year ago, but more than what analysts expected. Shares gained 9.4%.

Friday brings the biggest economic report of the week, the first reading on second-quarter gross domestic product growth. GDP is expected to have shrank at a 1.5% annualized rate, according to forecasts. GDP shrank at a 5.5% annualized rate in the first quarter.

The Chicago PMI, a regional reading on manufacturing, is due shortly after the start of trading. Quarterly results from Dow component Chevron.

European equities staged a broad-based rally on Thursday, hitting a fresh eight month high as a string of mostly well-received corporate earnings convinced investors the recent run should continue. The pan-European Dow Jones Stoxx 600 index rose 2.2% to close at 225.25, taking out the previous 2009 closing high set on Monday.

On a regional level, the French CAC-40 index climbed 2.1% to settle at 3,435.49, the UK's FTSE 100 index rose 1.8% to end at 4,631.61 and Germany's DAX index advanced 1.7% to finish at 5,360.66..

After consolidating in the past couple of trading session, bulls were back in action on F&O expiry. After starting off on a flat note, markets gains momentum as the day progressed. The IT, FMCG, Banking and the Telecom stocks were among the top gainers. Even the Mid-Cap and the Small-Cap stocks were in demand which saw the NSE Nifty ends above the 4550 levels yet again.

However, the Oil & Gas, Power and Metals stocks were under pressure.

The BSE Sensex surged 214 points to end at 15,387 after touching a high of 15,410 and a low of 15,065. The index opened at 15,148. The NSE Nifty surged 58 points to shut shop at 4,571.

In Asia, the Nikkei in Japan ended up by 0.5 at 10,165, while Australia's S&P/ASX ended higher by 1.7% at 4,190. The Hang Seng index in Hong Kong was up by 0.5% to end at 20,234. Shanghai index in China gained 1.6% to end at 3,321.

In Europe, stocks were in momentum. The FTSE in the UK was up 1.2% at 4,605. The DAX was up 0.7% 5,305 and the CAC 40 was up 1.1% at 3,405.

Coming back to India, among the BSE sectoral indices, the IT index was the top gainer, gaining 3%, followed by the FMCG index that was up 2.7%. The BSE Bankex index up 2.2% and the BSE Teck index was up 1.5%.

The BSE Mid-Cap index gained 0.5% and the BSE Small-Cap index gained 0.8%.

Within the Sensex, the major gainers were TCS, HUL, Wipro, HDFC, SBI, ICICI Bank and HDFC Bank. Among the major losers were Sun Pharma, BHEL, Reliance Industries, Hindalco and RCom.

Outside the frontline indices, the top gainers included REC Ltd, Mphasis, Ashok Leyland, Tech M, Rolta and OFSS.

Among the big losers in the broader market were Divi’s Lab, PNB, Gujarat NRE, IRB Infra, Titan and Crompton Greaves.

Shares of Great Offshore further gained by 1.6% to Rs465 after ABG Shipyard announced that it raised its open offer price to Rs450 per share from Rs375.

ABG hiked its stake in the Great Offshore by over 5% picking up stake in a block deal from the open market. The block deal takes ABG's total shareholding in the company to 7.32% from 2.02% earlier, added reports.

The stock opened at Rs465 and made an intra-day high of Rs469 and a low of Rs461. Total traded volumes stood at 0.2mn shares.

IOC has posted a net profit of Rs36.82bn for the quarter ended June 30, 2009 where as the same was at Rs4.15bn for the quarter ended June 30, 2008.

Total Income is Rs606.8bn for the quarter ended June 30, 2009 where as the same was at Rs891.4bn for the quarter ended June 30, 2008.

Comparative figures for the quarter ended June 2008 do not include the figures of Bongaigaon Refinery and Petrochemicals Ltd , which was merged with IOC on March 25, 2009. Accordingly, the same are not strictly comparable.

The stock surged 4% to end at Rs556, it had opened at Rs540 and made an intra-day high of Rs464 and a low of Rs540. Total traded volumes stood at 0.38mn shares.

M&M has posted a net profit of Rs4bn for the quarter ended June 30, 2009 as against Rs1.59bn in the same quarter last year. Total income for the reporting quarter is Rs42.66bn versus Rs33.32bn in the quarter ended June 30, 2008.

The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings & Finance Ltd. and Punjab Tractors Ltd., which merged with the company. Hence, the figures of the current quarter are not comparable with those of the first quarter of the previous fiscal year.

The stock surged 1.2% to end at Rs852, it had opened at Rs845 and made an intra-day high of Rs859 and a low of Rs832. Total traded volumes stood at 0.58mn shares.

SBI posted Net Profit of Rs23303.7mn for the quarter ending on June 30, 2009 against Rs16407.9mn for the quarter ending on June 30, 2008.

Total Income of Rs210415.1mn for the quarter ending on June 30, 2009 against Rs162030.7mn for the quarter ending on June

The stock surged 4% to end at Rs1722, it had opened at Rs1654 and made an intra-day high of Rs1734 and a low of Rs1644. Total traded volumes stood at 0.83mn shares.

SAIL has posted a net profit of Rs13.26bn for the quarter ended June 30, 2009 as compared to Rs18.35bn for the quarter ended June 30, 2008.

The total income has decreased to Rs96.93bn for the quarter ended June 30, 2009 from Rs112.28bn for the quarter ended June 30, 2008.

The stock surged 3% to end at Rs175, it had opened at Rs169 and made an intra-day high of Rs176 and a low of Rs165. Total traded volumes stood at 3.8mn shares.

Educomp Solutions

Everest Kanto

Mahindra and Mahindra

Reliance Infrastructure

UTV Software

Patni Computers

Great Offshore

Cummins India

Market Review -July 31 2009

Hindustan Unilever

SGX Nifty Live Update - July 31 2009

4,600.0 +22.0

Nifty August 2009 futures at premium

Turnover drops

Nifty August 2009 futures were at 4578, at a premium of 6.55 points as compared to the spot closing of 4571.45. Turnover in NSE's futures & options (F&O) was Rs 94,477.38 crore, lower than Rs 1,16,508.34 crore on Wednesday, 29 July 2009.

Rollover of Nifty positions from July 2009 contracts to August 2009 contracts was about 60% at the end of Wednesday's (29 July 2009) trading. July 2009 derivative contracts expired today, 30 July 2009.

State Bank of India August 2009 futures were at premium at 1734.50 compared to the spot closing of 1722.80.

Bharat Heavy Electricals August 2009 futures were at premium at 2210.05 compared to the spot closing of 2200.80.

Tata Steel August 2009 futures were at discount at 447.20 compared to the spot closing of 452.15.

In the cash market, the S&P CNX Nifty gained 57.95 points or 1.28% at 4571.45.

Precious metals gather some shine

Gold and silver prices rise with rising crude

Precious metal prices rose on Thursday, 30 July, 2009. Prices shone today as the rebounding crude price and weak dollar increased the appeal of precious metals as a hedge against inflation.

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 Thursday, gold for August delivery ended at $934.9, higher by $7.7 (0.8%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 5.5%.

For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had 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 (11.5%) since then.

On Thursday, Comex silver futures for September delivery gained 48.2 cents (3.5%) at $13.258 an ounce. Last week, silver ended higher by 3.5%.

Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 21.7% this year. For 2008, silver had lost 24%.

In the currency market on Thursday, the dollar index, a six-currency gauge of the greenback's value, rose modestly.

In the crude market, crude prices rose in synchronization with US stocks.

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

At the MCX, gold prices for October delivery closed higher by Rs 45 (0.3%) at Rs 14,696 per 10 grams. Prices rose to a high of Rs 14,715 per 10 grams and fell to a low of Rs 14,631 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 274 (1.25%) higher at Rs 22,153/Kg. Prices opened at Rs 21,945/kg and rose to a high of Rs 22,238/Kg during the day's trading.

Crude claims back yesterday's losses

Prices rise as US stocks cheer economic data

Crude prices ended higher on Thursday, 30 July, 2009. Prices rose today in synchronization with US stocks which welcomed the news of modest rise in initials claims for last week. The weak dollar was also responsible for the rise.

On Thursday, crude-oil futures for light sweet crude for September delivery closed at $66.94/barrel (higher by $3.59 or 5.7%). Last week, crude ended higher by 7.1%.

For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 51% since then. In July, 2009, it has dropped by 4.6% till date. Year to date, in 2009, crude prices are higher by 41.7%.

US stocks registered good gains today after Labor Department reported that initial claims rose last week but the trend fell and fewer people were continuing to collect unemployment checks. The first-time claims for state jobless benefits crept up in the latest week but ws in line with expectations. Initial weekly jobless claims rose by 25,000 to a seasonally adjusted 584,000 during the week ended 25 July, 2009.

EIA reported yesterday that crude supplies rose by 5.1 million barrels to stand at 347.8 million barrels during the week ended 24 July, 2009. The EIA also reported that motor gasoline inventories fell by 2.3 million barrels and distillate supplies rose by 2.1 million barrels last week.

Also at the Nymex on Thursday, August reformulated gasoline rose 13.61 cents, or 7.3%, to $1.9911 a gallon and August heating oil gained 9.72 cents, or 5.8%, to $1.7685 a gallon.

September natural-gas futures rose 21.5 cent, or 6.1%, to $3.763 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 August delivery closed higher by Rs 138 (4.45%) at Rs 3,234/barrel. Natural gas for August delivery closed at Rs 181.7/mmbtu, higher by Rs 9.8/mmbtu (5.7%)

Thursday, July 30, 2009

Grey Market Premiums - July 30 2009

Excel Infoways Ltd. 85

5 to 7

Raj Oil Mills Ltd. 100 to 120

Discount

Adani Power 90 to 100

6 to 6.50

NHPC 30 to 36

10 to 10.50

BSE Bulk Deals to Watch - July 30 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
30/7/2009 524412 AAREY DRUGS BHAVINI VIJAYKUMAR SHAH B 35000 49.43
30/7/2009 532981 ANU LABS ATULBHAI GORDHANBHAI VAJA B 640917 16.20
30/7/2009 532981 ANU LABS JOHNSON AFRAHIMBHAI TAILOR B 1066760 16.39
30/7/2009 532981 ANU LABS ATULBHAI GORDHANBHAI VAJA S 1126765 15.34
30/7/2009 532981 ANU LABS JOHNSON AFRAHIMBHAI TAILOR S 1066760 15.89
30/7/2009 530245 ARYAMA FIN S PARESH KUMAR BABULAL SHAH B 40000 10.00
30/7/2009 530245 ARYAMA FIN S BETEL TRADING AND COMMERCIAL PVT. LTD. S 40000 10.00
30/7/2009 512149 AVANCE TECHN AYODHYAPATI INVESTMENT PVT LTD B 39652 63.65
30/7/2009 512149 AVANCE TECHN DILIP RASIKLAL PAREKH S 29671 64.08
30/7/2009 532995 AVON CORP S V ENTERPRISES B 1093115 11.72
30/7/2009 532995 AVON CORP S V ENTERPRISES S 1093115 11.94
30/7/2009 512253 BIO GREEN I RIDHAM ARVIND SHAH B 41000 11.22
30/7/2009 512253 BIO GREEN I BATUL SHABBIR HUSSAIN S 50000 11.23
30/7/2009 590076 CAMSON BIO ANGEL INFIN PRIVATE LIMITED B 49572 60.06
30/7/2009 590076 CAMSON BIO Naman Securities & Finance Pvt. Ltd. B 50001 57.95
30/7/2009 590076 CAMSON BIO ANGEL INFIN PRIVATE LIMITED S 84554 59.25
30/7/2009 526315 DIVSHKTI LTD SURYAPRAKASH HEDA B 52500 24.31
30/7/2009 526315 DIVSHKTI LTD SHAH MEHTA HOLDING PVT LT S 52000 24.31
30/7/2009 533055 EDSERV SOFT BP FINTRADE PRIVATE LIMITED B 65094 53.64
30/7/2009 533055 EDSERV SOFT BP FINTRADE PRIVATE LIMITED S 76402 53.98
30/7/2009 531314 INTEGRA CAPI MEHERDAD KERMANI B 25000 10.14
30/7/2009 531314 INTEGRA CAPI DEEPINDER SINGH POONIAN S 24000 10.14
30/7/2009 530255 KAY POW PAP JOLLY GUPTA B 114286 7.01
30/7/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 175181 6.90
30/7/2009 530255 KAY POW PAP OMPARKASH GUPTA B 100007 7.39
30/7/2009 530255 KAY POW PAP SUNDER DASS AGARWAL B 137363 6.74
30/7/2009 530255 KAY POW PAP B.S.KHANDELWAL B 81060 6.37
30/7/2009 530255 KAY POW PAP JOLLY GUPTA S 128131 7.16
30/7/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 177949 6.92
30/7/2009 530255 KAY POW PAP KAILASH CHAND GUPTA S 114153 6.27
30/7/2009 530357 KBS CAP MANA KALAVATI SURESH KANAKIA B 25050 23.47
30/7/2009 531602 KOFF BR PICT BHARAT SHANTILAL THAKKAR B 300000 4.10
30/7/2009 531602 KOFF BR PICT JIGNESH HASMUKHLAL SHAH B 300000 3.87
30/7/2009 531602 KOFF BR PICT BIPINKUMAR RAMNIKLAL GANDHI B 408105 4.11
30/7/2009 531602 KOFF BR PICT BIPINKUMAR RAMNIKLAL GANDHI S 408105 4.02
30/7/2009 507759 LIME CHEM DUKE SPECIAL OPPORTUNITIES FUND LLC S 17500 4.21
30/7/2009 533080 MOLDTK PLA VIMLA JAJOO S 92959 31.93
30/7/2009 511702 PARSHART INV CHHOTELAL AYODHYAPRASAD KEVAT B 16799 9.90
30/7/2009 511702 PARSHART INV KRUNAL GOPALDAS RANA S 25000 9.87
30/7/2009 502448 ROLLATAINERS WLD INVESTMENTS P.LTD. S 100000 169.55
30/7/2009 500368 RUCHI SOYA DHANANJAY MONEY MANAGEMENT SERVICES B 1279878 59.53
30/7/2009 500368 RUCHI SOYA XITIJ INVESTMENTS B 1030000 60.00
30/7/2009 500368 RUCHI SOYA UBS SECURITIES ASIA LTD. A/C SWISS FIN. CORP. (MAU S 2500000 60.00
30/7/2009 500368 RUCHI SOYA EMERGING MARKETS MANAGEMENT. LLC A/C EMSAF MAURITIUS S 1675695 60.09
30/7/2009 530611 STURDY INDS SHAIL AGARWAL B 48602 33.78
30/7/2009 530611 STURDY INDS SHAIL AGARWAL S 48154 33.64
30/7/2009 519228 TEMPT.FOODS BIJCO HOLDING S 250000 32.50
30/7/2009 519228 TEMPT.FOODS ABN AMRO BANK NV S 200000 32.58

NSE Bulk Deal Watch - July 30 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,222997,1007.91,-
30-JUL-2009,BAJAJHIND,Bajaj Hindusthan Ltd,JUPITER ENTERPRISES LTD,BUY,940333,188.66,-
30-JUL-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,BUY,81443,54.07,-
30-JUL-2009,GTOFFSHORE,Great Offshore Limited,ABG SHIPYARD LTD,BUY,212348,450.00,-
30-JUL-2009,INDIABULLS,Indiabulls Financial Serv,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,4151131,190.00,-
30-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7228788,21.94,-
30-JUL-2009,WELGUJ,Welspun Gujarat Stahl Roh,PACIFIC CORPORATE SERVICES LTD,BUY,950000,235.24,-
30-JUL-2009,WELGUJ,Welspun Gujarat Stahl Roh,PACIFIC CORPORATE SERVICES LTD,BUY,1991113,233.19,-
30-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,222997,1008.57,-
30-JUL-2009,ABAN,Aban Offshore Ltd.,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD,SELL,192400,994.31,-
30-JUL-2009,ADLABSFILM,Adlabs Films Limited,CREDIT SUISSE (SINGAPORE) LIMITED A/C CREDIT SUISSE (SINGAP,SELL,253800,344.39,-
30-JUL-2009,APOLLOTYRE,Apollo Tyres Ltd.,COMPAGNIE FINANCIERE MICHELIN,SELL,7122416,40.00,-
30-JUL-2009,BAJAJHIND,Bajaj Hindusthan Ltd,CLSA (MAURITIUS) LIMITED,SELL,2890000,186.08,-
30-JUL-2009,BAJAJHIND,Bajaj Hindusthan Ltd,DEUTSCHE SECURITIES MAURITIUS LIMITED,SELL,2253500,189.07,-
30-JUL-2009,BAJAJHIND,Bajaj Hindusthan Ltd,JUPITER ENTERPRISES LTD,SELL,621082,190.67,-
30-JUL-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,SELL,103311,54.34,-
30-JUL-2009,GTOFFSHORE,Great Offshore Limited,ATNA INVESTMENTS LIMITED,SELL,220000,450.27,-
30-JUL-2009,HCC,Hindustan Construc Co.,MORGAN STANLEY MAURITIUS COMPANY LTD,SELL,2100000,114.68,-
30-JUL-2009,INDIABULLS,Indiabulls Financial Serv,ORIENT GLOBAL CINNAMON CAPITAL LIMITED,SELL,4190291,190.03,-
30-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,7136424,21.94,-
30-JUL-2009,NIITTECH,NIIT Technologies Limited,BLACKSTONE ASIA ADVISORS LLC A/C THE ASIA TIGRES FUND INC,SELL,396551,98.65,-
30-JUL-2009,RUCHISOYA,Ruchi Soya Inds Ltd.,EMERGING MARKETS MANAGEMENT L.L.C. - A/C EMSAF - MAURITIUS,SELL,1600162,60.21,-
30-JUL-2009,VITLINFO,Vishal Information Techno,PRAVINA ROHITKUMAR MEHTA,SELL,975000,32.48,-

Post Session Commentary - July 30 2009

The domestic market rebounded sharply from initial losses to close near day’s high after exhibiting instability for throughout the trading session. Speculators contributed to upward movement as indulged in covering short positions on the last day of the expiry of the July contracts in derivatives. Firm trading in European markets along with recovery in Asian markets and higher US index futures also added to the positive sentiments. In addition, market gained ground during afternoon trade after initial slide, also on encouraging first-quarter earnings by State Bank of India. The bank reported 42.03% rise in its net profit in first quarter. Meanwhile, inflation for week ended July 18 it came in at -1.54% as compared to -1.17% for the previous week ended July 11, 2009. The BSE Sensex ended above 15,350 level and NSE Nifty closed above 4,550 mark.

Market opened on flat note on mixed global cues and suddenly turned volatile ahead of the F&O expiry today. Asian markets were lower in early trading and the US stocks markets ended with losses on Wednesday on the back of disappointing durable goods orders report for the month of June which was worse than expected followed by unsatisfactory auction of USD 39 billion worth of 5-year treasury notes. Further, Indian benchmark indices were unable to stick on a particular direction and were trading with tedious sentiments. However, stocks managed to recover and landed in positive precinct backed by firm European markets. During final trading hours, market witnessed sharp gains on good buying interest backed by rise in Asian stocks. From the sectoral front, IT, FMCG, Bank, Teck and Realty stocks witnessed most of the buying from these baskets. BSE Mid Cap and BSE Small Cap indices remained on buyers’ radar. However, most of the selling was observed in Oil & Gas and Power stocks.

Among the Sensex pack 23 stocks ended in green territory and 7 in red. The market breadth indicating the overall health of the market remained positive as 1503 stocks closed in green while 1170 stocks closed in red and 85 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 241.50 points or (1.41%) at 15,387.96 and NSE Nifty ended up by 57.95 points or (1.28%) at 4,571.45. BSE Mid Caps and Small Caps closed with gains 29.31 and 49.26 points at 5,506.40 and 6,204.01 respectively. The BSE Sensex touched intraday high of 15,409.91 and intraday low of 15,065.48.

Gainers Losers from the BSE Sensex pack are TCS Ltd (6.04%), HUL (5.15%), Wipro Ltd (4.68%), HDFC (4.31%), SBI (4.01%), ICICI Bank (3.14%), HDFC Bank (2.95%), Tata Steel (2.53%), ITC Ltd (2.34%), ACC Ltd (2.13%), L&T Ltd (1.85%) and Reliance Infra (1.80%).

Losers from the BSE Sensex pack are Sun Pharma (3.62%), BHEL (1.59%), Reliance (1.37%), Hindalco (0.74%) and RCom (0.72%).

Inflation for week ended July 18 fell for the seventh consecutive week as it came in at -1.54% as compared to -1.17% for the previous week ended July 11, 2009 and 12.54% during the corresponding week ended July 19, 2008 of the previous year. The Wholesale Price Index for ''All Commodities'' for the week ended July 18, 2009 rose by 0.04% to 236.8 from 236.7 for the previous week.

On the global markets front the Asian markets that opened before the Indian market, ended higher. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times and Seoul Composite ended upby 55.13, 98.58, 51.97, 32.13 and 10.42 points at 3,321.56, 20,234.08, 10,165.21, 2,636.19 and 1,534.74 respectively.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 33.63 points at 5,303.95 in London FTSE 100 is trading higher by 47.71 points at 4,595.24.

The BSE IT index ended up by (2.8%) or 105.95 points at 3,891.84. Scrips that gained are Patni Computer (12.55%), Mphasis Ltd (7.45%), Aptech Ltd (6.72%), TCS Ltd (6.04%) and Tech Mahindra (4.79%).

The BSE FMCG index closed higher by (2.7%) or 69.72 points at 2,654.14. HUL (5.15%), Ruchi Soya (2.85%), Tata Tea Ltd (2.79%) and United Spr (2.56%) ended in green territory.

The BSE Bank index increased by (2.2%) or 178.45 points to close at 8,305.91. Main gainers are Reliance Oriental Bank (4.41%), SBI (4.01%), ICICI Bank (3.14%), Union Bank (3.29%) and Canara Bank (3.03%).

The BSE Teck index advanced by (1.57%) or 45.10 points at 2,915.23. Gainers are Patni Computer (12.55%), Mphasis Ltd (7.45%), Aptech Ltd (6.72%), TCS Ltd (6.04%) and Tech Mahindra (4.79%).

The BSE Realty index gained (1.3%) or 50.79 points at 3,962.56. Ansal Infra (4.07%), Housing Dev (3.85%), Orbit Co (3.58%), Omaxe Ltd (3.31%) and Mahindra Life (2.33%) closed in positive territory.

The BSE Oil & Gas index ended down by (0.19%) or 17.38 points at 9,235.04. Scrips that lost are Aban Offshore (2.22%), Reliance (1.37%), Reliance Pet (0.96%) and Cairn Ind (0.58%).

Tata Communications advanced by 3.31%, a leading provider of the new world of communications, announced today the company has successfully launched a voice outsourcing partnership and network expansion project with gotalk. gotalk is an Australia-based communications supplier of retail domestic and international voice services.

Ranbaxy Laboratories Limited gained 0.46%. Ranbaxy Pharmaceuticals Canada Inc. (RPCI), a wholly owned subsidiary of company, announced that RL1, has received approval in Canada to manufacture and market Ran-Ropinirole 0,25 mg, 1,0 mg, 2.0 mg, and 5.0 mg tablets (Ropinirole Uydrochloride) from Health Canada, Therapeutic Products Directorate (TPD).

State Bank of India (SBI) ended up by 0.41%. The bank has reported rise of 42.03% in Net Profit to Rs. 23303.70 million for the quarter ending on June 30, 2009 against Rs 16407.90 lacs for the quarter ending on June 30, 2008. Total Income increased by 29.86% to Rs. 210415.10 million for the quarter ending on June 30, 2009 against Rs 162030.70 million for the quarter ending on June 30, 2008.

GMR Infrastructure Ltd closed higher by 1.94%. The company has informed that the Board of Directors of the Company at its meeting held on July 30, 2009, inter alia, has accorded approval for sub-division of all its equity shares of Rs 2/- each into 2 equity shares of Re 1/- each (per share), subject to the approval of members of the Company at the forthcoming Annual General Meeting.

Reliance Industries Ltd lost 1.37% after Anil Ambani said he will approach the Supreme Court on Thursday, 30 July 2009, seeking a final hearing on the two-year-old gas supply dispute on 1 September 2009.

Four Soft dropped by 4.85%. The company announced that Unique Global Logistics Pvt Ltd has selected its freight forwarding application 4S eTrans to be implemented across Its multiple locations.

Sensex scales in 1-1/2 month high

Strong Q1 June 2009 earnings from State Bank of India (SBI) and Mahindra & Mahindra (M&M) and firm global stocks helped the key benchmark indices snap a three day losing streak. A recovery in Chinese shares after Wednesday's (29 July 2009)'s 5% slide helped soothe investors' nerves. The BSE 30-share Sensex jumped 214.50 points or 1.41%, up close to 320 points from the day's low. The Sensex attained its highest closing since 11 June 2009. IT, realty, banking and FMCG stocks led gains. But index heavyweight Reliance Industries (RIL) slipped. The market breadth was strong.

As per the provisional figures on BSE, foreign funds bought shares worth Rs 366.81 crore and domestic funds sold shares worth Rs 286.67 crore today, 30 July 2009.

Volatility was high as traders rolled over positions from July 2009 contracts to August 2009 contracts in the futures & options segment ahead of the expiry of July 2009 contracts today, 30 July 2009. Rollover of Nifty positions from July 2009 contracts to August 2009 contracts was about 60% at the end of Wednesday's (29 July 2009) trading. Rollover in Mini Nifty futures was about 43%.

The key benchmark indices slipped in early trade tracking losses in Asian stocks. After an initial slide the market moved to positive zone for a brief period before slipping into the red again. It recovered sharply in mid-morning trade tracking recovery in Chinese stocks. The market extended gains in early afternoon trade as the latest data showed inflation remained in the negative territory for a seventh week in a row. The market pared gains after surging to a fresh intraday high in mid-afternoon trade. The market extended gains in late trade on strong Q1 results from SBI and M&M.

The market today snapped last three days' losing streak. From a recent high of 15,378.96 on 24 July 2009, the Sensex had lost 205.50 points or 1.33% to 15,173.46 on Wednesday, 29 July 2009.

The wholesale price index (WPI) fell 1.54% in 12 months to 18 July 2009 compared to previous week's fall of 1.17% the government data showed at 11:50 IST. But the government revised upwards inflation for the week ended 23 May 2009 to 1.34% from 0.48%.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1438 companies rose 25.8% to Rs 67307 crore on 5.6% fall in sales to Rs 622730 crore in Q1 June 2009 over Q1 June 2008.

Finance Minister Pranab Mukherjee told the parliament on Wednesday that economic growth was showing certain signs of improvement, and trade minister Anand Sharma said efforts were being made to reduce the trade deficit. The economy grew by 6.7% in 2008/09 (April/March), and Mukherjee said India will able to maintain that level of growth. On Tuesday, 28 July 2009, the Reserve Bank of India (RBI) projected growth in 2009/10 at 6% with an upward bias.

A weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Meanwhile, foreign direct investments (FDI) in India declined 43% to $2.2 billion in May 2009 over May 2008.

European shares rose on Thursday, as investors digested a raft of earnings, which continue to be mostly positive. Key benchmark indices in France, Germany and UK were up by between 0.53% to 1.2%.

Asian stocks rose, recovering from early losses. China's Shanghai Composite ended 1.69% higher, recovering from an initial fall. The index had declined 5% on Wednesday amid concern the government will curb inflows into a market that had more than doubled from last year's low.

Meanwhile, a statement on the People's Bank of China Web site late Wednesday cited a senior official as saying the central bank will emphasize market-based forces, rather than administrative controls in setting credit growth. The statement suggested the government isn't planning to set loan curbs at this time.

Key benchmark indices in Hong Kong, Singapore, South Korea and rose by between 0.49% to 1.23%.

Japan's Nikkei rose 0.51% in volatile trade as Japanese manufacturers increased production for a fourth month in June 2009, capping the fastest quarterly output expansion in more than half a century and helping the economy rebound from its deepest post-war recession.

Trading in US index futures indicated Dow could rise 66 points at the opening bell today, 30 July 2009.

US stocks fell on Wednesday, 29 July 2009 as investors worried that China might be ready to hit the brakes on lending, a move that could curb demand and hinder the global economic recovery.

The Dow Jones Industrial Average was down 26 points, or 0.3%, to 9,070.72. The S&P 500 index fell 4.47 points, or 0.5%, to 975.15, while the Nasdaq Composite Index was down 7.75 points, or 0.4%, to 1,967.76.

In economic news, orders for durable goods fell 2.5% in June 2009, much more than expected. Meanwhile mortgage applications fell for the first time in four weeks.

The BSE 30-share Sensex rose 214.50 points or 1.41% to 15,387.96, its highest closing since 11 June 2009. The Sensex rose 236.45 points at the day's high of 15,409.91 in late trade. The Sensex lost 107.98 points at the day's low of 15,065.48 in early trade.

The S&P CNX Nifty was up 57.95 points or 1.28% to 4,571.45. Nifty August 2009 futures were at 4578, at a premium of 6.55 points as compared to the spot closing of 4571.45. Turnover in NSE's futures & options (F&O) was Rs 94,477.38 crore, much lower than Rs 1,16,508.34 crore on Wednesday, 29 July 2009. BSE clocked a turnover of Rs 6,027 crore, lower than Rs 7,534.13 crore on Wednesday, 29 July 2009.

The Sensex is up 5,740.65 points or 59.5% in calendar year 2009 as on 30 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,227.56 points or 88.56% as on 30 July 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1,499 shares advanced as compared with 1,167 that declined. A total of 85 shares remained unchanged.

Among the 30-member Sensex pack, 23 rose while the rest declined.

The BSE Mid-Cap index was up 0.54% and the BSE Small-Cap index was up 0.8%. Both the indices underperformed Sensex.

The BSE IT index (up 2.8%), the BSE FMCG index (up 2.7%), the BSE Bankex (up 2.2%), the BSE TECk index (up 1.57%), outperformed the Sensex.

The BSE Oil & Gas index (down 0.19%), the BSE Power index (down 0.03%), the BSE Metal index (down 0.02%), the BSE Healthcare index (up 0.09%), the BSE Consumer Durables index (up 0.13%), the BSE Capital Goods index (up 0.2%), the BSE Auto index (up 0.86%), the BSE PSU index (up 0.89%), the BSE Realty index (up 1.3%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.37% to Rs 1,899.90 after Anil Ambani said he will approach the Supreme Court on Thursday, 30 July 2009, seeking a final hearing on the two-year-old gas supply dispute on 1 September 2009. According to him the gas supply dispute between RIL and Reliance Natural Resources (RNRL) vitally affects public interest. The matter concerns power projects of national importance representing a capacity of 12,000 megawatt (MW) and an investment of over Rs 50,000 crore and affects the interests of over 10 million shareholders, he said.

The Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.

RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.

In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row.

Oil exploration pivotals were mixed after crude futures tumbled almost 6% Wednesday as US oil inventories unexpectedly rose, raising fresh concerns of weak demand. India's largest exploration firm by sales ONGC rose 0.12%. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.

Cairn India fell 0.58% as consolidated net profit fell 67.2% to Rs 45.44 crore on 49.2% fall in sales to Rs 204.95 crore in Q2 June 2009 over Q2 June 2008. The company declared the results after trading hours on Wednesday.

PSU OMCs rose on fall in crude oil prices. BPCL and HPCL rose by between 4.3% to 8.01%. Lower oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Indian Oil Corporation rose 4.08% as its net profit jumped 787.15% to Rs 3682.83 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during market hours today.

Auto stocks rose after posting strong Q1 June 2009 results in the past few days. India's largest truck market by sales Tata Motors rose 0.44%. The company on Tuesday, 28 July 2009 reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008.

India's largest tractor maker by sales Mahindra & Mahindra rose 1.22% after net profit rose 151.63% to Rs 400.80 crore on 28.04 % rise in total income to Rs 426.61 crore in Q1 June 2009 over Q1 June 2008. The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance and Punjab Tractors which were merged with the company. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter. The results hit the market just a while back.

India's top small car maker by sales Maruti Suzuki India was flat at Rs 1,397.70.

India's largest bike maker by sales Hero Honda Motors was flat at Rs 1,639.60. The company posted 83% jump in net profit to Rs 500 crore on 34% rise in total revenue to Rs 3865 crore in Q1 June 2009 over Q1 June 2008. The company announced the Q1 result after market hours on Wednesday, 29 July 2009.

Rate sensitive realty shares reversed early losses as inflation remained in the negative zone. Investors are concerned that the central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation. Rising interest rates may dent property demand as most of the commercial and housing deals are driven by finance.

India's largest real estate developer by sales DLF rose 1.02% ahead of its Q1 June 2009 result today. Unitech, Indiabulls Real Estate, Phoenix Mills and Omaxe rose by between 0.95% to 3.31%.

IT stocks rose on weak rupee. Better-than-expected Q1 June 2009 results by IT pivotals Infosys, Wipro and TCS also underpinned sentiment for IT stocks. TCS, Infosys and Wipro rose by between 1.34% to 6.04%.

The rupee recovered against the dollar after hitting a one-week low in early trade. The partially convertible rupee was hovering at 48.33/48.34, firmer than Wednesday's close of 48.42/48.43. A weak rupee boosts revenues of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Patni Computer Systems rose 12.55% after the company said it will scout for acquisitions in the range of $50 million-$200 million in Europe and the Asia-Pacific to help lower its dependence on the US market.

Bank stocks rose on strong Q1 results from State Bank of India, India's biggest commercial bank in terms of branch network. State Bank of India (SBI) rose 4.37% as its net profit jumped 42.02% to Rs 2330.37 crore on 29.86% rise in total income to Rs 21041.51 crore in Q1 June 2009 over Q1 June 2008. The results hit the market during trading hours today.

India's second largest private sector bank in terms of operating income HDFC Bank rose 2.95%. India's largest private sector bank in terms of operating income ICICI Bank rose 3.14%.

Some FMCG stocks rose on improvement in India's annual monsoon in July 2009 after a dry spell in June 2009. FMCG firms derive substantial revenue from rural sector. Britannia Industries, ITC, Dabur India, Nestle India, United Spirits, Tata Tea, rose by between 0.65% to 2.79%.

India's largest FMCG company by sales Hindustan Unilever rose 5.15%. The company reported a 2.68% fall in net profit to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared during trade hours on Tuesday, 28 July 2009.

India's largest private sector steel maker by sales Tata Steel rose 2.53% even as net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.

India's second largest steel maker by sales Steel Authority of India rose 3.26% even as net profit fell 27.74% to Rs 1326.09 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during trading hours today.

India's largest copper market by sales Sterlite Industries rose 0.89%. The company's net profit fell 68.5% to Rs 112.70 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on 29 July 2009.

Construction stocks rose on government's thrust on infrastructure sector in Union Budget 2009-2010. Era Infra Engineering, Gayatri Projects and IVRCL Infrastructure & Projects rose by between 1.56% to 3.14%.

But capital goods stocks fell on profit taking after a recent surge triggered by government's thrust on the infrastructure sector in Union budget 2009-2010. Bharat Heavy Electricals, Punj Lloyd, ABB, Praj Industries, Siemens fell by between 0.06% to 1.86%.

Cement stocks rose on posting good Q1 June 2009 results. Grasim Industries, ACC, Ambuja Cements and Ultratech Cements rose by between 0.78% to 4.1%.

Some power stocks rose after a strong response to the Adani Power initial public offer which opened for subscription on Tuesday, 28 July 2009. NTPC, Power Grid Corporation Of India, Torrent Power rose by between 1.45% to 2.96%. Reliance Infrastructure rose 1.8% ahead of its Q1 June 2009 result today.

Sun Pharmaceuticals Industries tumbled 3.62% after net profit fell 56.7% to Rs 121.51 crore on a 39.5% decline in sales to Rs 405.88 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours on Wednesday, 29 July 2009.

Other HealthCare stocks, Cadila HealthCare, Piramal HealthCare, Lupin fell by between 0.02% to 3.7%.

Unitech clocked highest volume of 1.54 crore shares on BSE. Suzlon Energy (1.47 crore shares), Mahindra Satyam (1.14 crore shares), Ispat Industries (1.1 crore shares) and Ruchi Soya Industries (1.08 crore shares) were the other volume toppers in that order.

Tata Steel clocked the highest turnover of Rs 255.38 crore on BSE. Housing Development & Infrastructure (Rs 185.26 crore), DLF (Rs 171.59 crore), Suzlon Energy (Rs 145.94 crore) and State Bank of India (Rs 144.07 crore) were the other turnover toppers in that order

Wednesday, July 29, 2009

Cadila Healthcare

Gujarat Gas

ONGC

BSE Bulk Deals to Watch - July 29 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
29/7/2009 523204 ABAN OFFSHO CHANDARANA INTERMIDIARY BROKERS PVT LTD B 248695 989.74
29/7/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD B 393826 994.22
29/7/2009 523204 ABAN OFFSHO CHANDARANA INTERMIDIARY BROKERS PVT LTD S 237830 989.35
29/7/2009 523204 ABAN OFFSHO OPG SECURITIES P LTD S 393826 994.73
29/7/2009 532475 APTECH LTD INDIA LONG TERM OPPORTUNITY MASTER FUND B 500000 174.80
29/7/2009 532475 APTECH LTD INDIA CAPITAL PTE LIMITED - INDEA ABSOLUTE RETURN FUND S 500000 174.80
29/7/2009 532995 AVON CORP S V ENTERPRISES B 1646987 11.72
29/7/2009 532995 AVON CORP BP FINTRADE PRIVATE LIMITED B 338055 11.99
29/7/2009 532995 AVON CORP S V ENTERPRISES S 1656504 11.97
29/7/2009 532995 AVON CORP BP FINTRADE PRIVATE LIMITED S 335055 11.94
29/7/2009 532989 BAFNA PHARMA DILIP KUMAR S 97000 22.15
29/7/2009 500038 BALRAMPUR C* JANUS WORLD FUND PLC - A/C GLOBAL TECHNOLOGY FUND S 1989875 113.21
29/7/2009 511664 BGIL FL TEC JINESH BHATT S 51599 16.05
29/7/2009 590076 CAMSON BIO ANGEL INFIN PRIVATE LIMITED B 77502 57.85
29/7/2009 590076 CAMSON BIO Naman Securities & Finance Pvt. Ltd. B 51515 56.87
29/7/2009 590076 CAMSON BIO JMP SECURITIES PVT LTD B 65196 57.04
29/7/2009 590076 CAMSON BIO ARYA INVESTMENTS B 50000 57.85
29/7/2009 590076 CAMSON BIO BP FINTRADE PRIVATE LIMITED B 141565 56.72
29/7/2009 590076 CAMSON BIO ANGEL INFIN PRIVATE LIMITED S 82229 57.85
29/7/2009 590076 CAMSON BIO Naman Securities & Finance Pvt. Ltd. S 51515 57.85
29/7/2009 590076 CAMSON BIO ARYA INVESTMENTS S 70000 57.85
29/7/2009 590076 CAMSON BIO BP FINTRADE PRIVATE LIMITED S 141565 57.85
29/7/2009 500068 DISA INDIA INDIA DEEP VALUE FUND S 9502 1608.41
29/7/2009 526285 DIVYAJYO IND VIJAY KUMAR NYATI B 50000 8.75
29/7/2009 526285 DIVYAJYO IND ANIL AGRAWAL S 50000 8.75
29/7/2009 590080 EASTERN GAS KAMLESH NAHAR S 56000 55.40
29/7/2009 526705 ELEG MAR GRA VIDHYA EQUIRESEARCH PVT LTD B 53200 29.70
29/7/2009 526705 ELEG MAR GRA SAUMIK KETAN DOSHI B 23000 29.70
29/7/2009 526705 ELEG MAR GRA PIYUSH PRAFUL AVALANI S 23000 29.70
29/7/2009 526705 ELEG MAR GRA PIYUSH PRAFULCHANDRA AVLANI S 53192 29.70
29/7/2009 530571 EXPLICIT FIN MAYUR BAHETI B 16600 5.27
29/7/2009 532786 GREAT OFFSH ABG SHIPYARD LTD B 1456994 449.99
29/7/2009 532786 GREAT OFFSH SUNDARAMBNPPARIBASMF A/C SUND.BNP PARI.SELECT THEMATICFUNDSENERGY S 445049 450.00
29/7/2009 532786 GREAT OFFSH DSP BLACKROCK INDIA T.I.G.E.R. FUND S 559485 450.00
29/7/2009 509684 INDIA FOILS SHILPA MILIND DESAI S 150000 15.90
29/7/2009 524826 JUPITER BIOS MACQUARIE BANK LIMITED S 123000 66.60
29/7/2009 530255 KAY POW PAP KAILASH CHAND GUPTA B 96000 6.23
29/7/2009 530255 KAY POW PAP B.S.KHANDELWAL B 86671 6.33
29/7/2009 530255 KAY POW PAP JOLLY GUPTA S 65000 6.24
29/7/2009 530255 KAY POW PAP SUNDER DASS AGARWAL S 67215 6.06
29/7/2009 530357 KBS CAP MANA KALAVATI SURESH KANAKIA B 23100 23.03
29/7/2009 506528 KELTECH ENRG CHANCHAL DEVI LODHA B 13122 171.68
29/7/2009 531602 KOFF BR PICT KISHORE B CHAUHAN B 350000 4.06
29/7/2009 532907 MAYTAS INFRA BP FINTRADE PRIVATE LIMITED S 309318 93.29
29/7/2009 533080 MOLDTK PLA SEEPRA JAJOO S 40992 32.39
29/7/2009 521080 PASARI SPIN CHANDRASHEKAR JAYKISHAN THANVI B 100000 4.61
29/7/2009 521080 PASARI SPIN XITIJ INVESTMENTS S 100000 4.61
29/7/2009 502448 ROLLATAINERS WLD INVESTMENTS P.LTD. S 100000 161.50
29/7/2009 517534 S.V.ELECTRIC KIRAN SUTTAMCHAND B 36800 4.29
29/7/2009 517534 S.V.ELECTRIC UJIWAL BHORKAR S 40000 4.29
29/7/2009 524446 SABE ORG GUJ HITESH SHASHIKANT JHAVERI S 190270 36.97
29/7/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. B 100000 34.47
29/7/2009 500407 SWARAJ ENGIN DERIVE TRADING PVT LTD B 50000 305.00
29/7/2009 500407 SWARAJ ENGIN RELIANCE CAPITAL TRUSTEE CO. LTD A/C RELIANCE TAX SAVER(ELSS) FU S 60000 305.25

NSE Bulk Deals To Watch - July 29 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,392077,993.65,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,BUY,255563,985.43,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,BUY,215081,991.73,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,BUY,211636,986.25,-
29-JUL-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,BUY,108456,50.31,-
29-JUL-2009,FSL,Firstsource Solutions Lim,AMBIT SECURITIES BROKING PVT. LTD.,BUY,2474684,26.24,-
29-JUL-2009,GAMMONIND,Gammon India Ltd.,BIRLA SUN LIFE INSURANCE COMPANY LIMITED,BUY,500000,144.90,-
29-JUL-2009,GTOFFSHORE,Great Offshore Limited,ABG SHIPYARD LTD,BUY,469727,449.97,-
29-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4141476,50.64,-
29-JUL-2009,INDIAINFO,India Infoline Limited,CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED,BUY,12965096,124.00,-
29-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9367507,22.40,-
29-JUL-2009,MAYTASINFR,Maytas Infra Limited,BP FINTRADE PRIVATE LIMITED,BUY,375797,93.66,-
29-JUL-2009,MAYTASINFR,Maytas Infra Limited,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,BUY,347309,93.68,-
29-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1108820,18.82,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,395677,994.39,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,SELL,255563,985.88,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,PRB SECURITIES PRIVATE LTD.,SELL,205881,992.77,-
29-JUL-2009,ABAN,Aban Offshore Ltd.,SMC GLOBAL SECURITIES LTD.,SELL,183236,984.21,-
29-JUL-2009,BALRAMCHIN,Balrampur Chini Mills,JANUS GLOBAL TECHNOLOGIES FUND,SELL,2900000,113.13,-
29-JUL-2009,BANKRAJAS,Bank Of Rajasthan Ltd,Copthall Mauritius Investment Ltd,SELL,816076,58.53,-
29-JUL-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,SELL,102420,51.78,-
29-JUL-2009,FSL,Firstsource Solutions Lim,AMBIT SECURITIES BROKING PVT. LTD.,SELL,2520309,26.36,-
29-JUL-2009,GAMMONIND,Gammon India Ltd.,HDFC STANDARD LIFE INSURANCE COMPANY LIMITED,SELL,495802,145.00,-
29-JUL-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4141476,50.57,-
29-JUL-2009,INDIAINFO,India Infoline Limited,ORIENT GLOBAL CINNAMON CAPITAL LIMITED,SELL,1716155,124.00,-
29-JUL-2009,INDIAINFO,India Infoline Limited,ORIENT GLOBAL TAMARIND FUND PTE. LIMITED,SELL,18500000,124.01,-
29-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,9638153,22.44,-
29-JUL-2009,MAYTASINFR,Maytas Infra Limited,BP FINTRADE PRIVATE LIMITED,SELL,378277,93.29,-
29-JUL-2009,MAYTASINFR,Maytas Infra Limited,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,SELL,348667,93.39,-
29-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1085595,18.81,-

Post Session Commentary - July 29 2009

Indian market closed on negative note following weak cues from Chinese market. The Chinese government has slashed gasoline prices, which led heavy selling into metal, energy and realty stocks in China. Consequently, China''s Shanghai index slumped over 7% during the trading. Market exhibited volatility on expiry of July futures and options contracts tomorrow, 30th July 2009. In addition, weak US index futures also took beating on the bourses. However, market minimized its losses during final trading hours on firm trading in European markets. Meanwhile, the government hopes to maintain a growth rate of the economy at 6.7% in 2009-10, same as the previous year despite the global economic slowdown. Finance Minister, Mr Pranab Mukherjee hoped that the stimulus provided both in terms of financial concessions as well as fiscal policy and the monetary measures announced by the RBI, will have its desired impact. The BSE Sensex ended below 15,200 level and NSE Nifty closed below 4,550 mark.

Market opened lower tracking mixed cues from the markets all over the world. Majority of Asian markets were down in early trading and the US stocks markets ended in mixed on Tuesday after trading in negative territory for almost all the session. The investor’s sentiments were dampened in the early trade on news that the consumer confidence data for the month of July came in worse-than-expected as it came in at 46.6 marking its second straight decline. Further, Indian benchmark continued to trade with volatility ahead of the derivative contracts expiry for the July series. However, market managed to recover and touched the green zone on some buying in key stocks, before once again losing ground. Market slipped sharply lower during mid session on huge fall in Chinese stocks. Finally, market ended lower on continued selling pressure over the counters. From the sectoral front, Realty, Consumer Durable, Metal, FMCG, Capital Goods and Pharma stocks contributed to most of the selling. BSE Mid Cap and BSE Small Cap indices also remained under pressure. However, IT and Oil & Gas stocks witnessed buying from these baskets.

Among the Sensex pack 23 stocks ended in red territory and 7 in green. The market breadth indicating the overall health of the market remained negative as 1558 stocks closed in red while 1089 stocks closed in green and 77 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 158.48 points or (1.03%) at 15,173.46 and NSE Nifty ended down by 50.60 points or (1.11%) at 4,513.50. BSE Mid Caps and Small Caps closed with losses 54.28 and 91.06 points at 5,477.09 and 6,154.75 respectively. The BSE Sensex touched intraday high of 15,379.43 and intraday low of 14,888.41.

Losers from the BSE Sensex pack are DLF Ltd (6.58%), Tata Steel (5.77%), Sterlite Industries (5.53%), Sun Pharma (5.24%), Tata Motors (4.96%), Grasim Industries (4.03%), Reliance Infra (3.79%), HUL (3.23%), RCom (2.36%), JP Associates (2.20%), L&T Ltd (2.13%), Herohonda Motors (2.03%), NTPC Ltd (1.61%), SBI (1.43%), ITC Ltd (1.33%) and ACC Ltd (1.14%).

Gainers from the BSE Sensex pack are TCS Ltd (4.18%), Tata Power (2.91%), M&M Ltd (2.31%), Hindalco (1.28%), Reliance (0.84%), Wipro Ltd (0.58%) and Maruti Suzuki (0.55%).

On the global markets front the Asian markets that opened before the Indian market, ended mostly lower. Shanghai Composite, Hang Seng, Straits Times and Seoul Composite ended down by 171.94, 489.04, 19.98 and 1.71 points at 3,266.43, 20,135.50, 2,604.06 and 1,524.32 respectively. However, Nikkei 225 gained 25.98 points at 10,113.24. The Chinese stocks plunged sharply after the Chinese government has cut gasoline prices, which led heavy selling into metal, energy and realty stocks. Shanghai index fell also on profit booking after a five-day winning streak amid worries that banks may begin to restrict lending.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 95.43 points at 5,270.17and in London FTSE 100 is trading higher by 39.84 points at 4,568.68.

The BSE Realty index lost (4.36%) or 178.35 points at 3,911.77. Housing Dev (7.13%), DLF Ltd (6.58%), Ansal Infra (5.82%), Parsvnath (5.45%) and Unitech Ltd (5.38%) closed in negative territory.

The BSE Consumer Durable index dropped by (3.13%) or 98.94 points at 3,066.04. Losers are Titan Ind (5.07%), Videocon Ind (3.93%), Rajesh Export (2.49%) and Blue Star L (0.78%).

The BSE Metal index ended down by (2.31%) or 289.01 points at 12,217.24. Scrips that lost are Tata Steel (5.77%), Sterlite Industries (5.53%), Ispat Industries (5.39%), Gujarat NRE C (4.67%) and Steel Authority (4.57%).

The BSE FMCG index closed lower by (2.03%) or 53.64 points at 2,584.42. Nestle Ltd (5.59%), United Spr (3.60%), United Brew (3.56%) and HUL (3.23%) ended in red territory.

The BSE Capital Goods index dropped by (1.75%) or 222.01 points to close at 12,440.16. Main losers are Reliance Industrial Infra (6.55%), Waqlchand In (5.87%), Suzlon Energy (5.29%), Everest Kanto (5.02%) and Jyoti Struct (4.98%).

The BSE IT index ended higher by (0.33%) or 12.42 points at 3,785.89. Scrips that gained are Rolta Ind (4.44%), TCS Ltd (4.18%), Moser Bayer (3.17%), Patni Computer (3.17%) and Mphasis Ltd (2.17%).

Wockhardt Ltd lost 5.61%. The company and its subsidiaries, announced the signing of agreements to divest its Nutritional businesses to Abbott, the global health care company.

Aurobindo Pharma Ltd dropped marginally by 0.98%. The pharma company has received the tentative approval for Donepezi! Hydrochloride Tablets 5mg and 1Qmg (ANDA 90-056) from the US Food & Drug Administration (USFDA).

Solix Technologies closed unchanged. The company announced that Ping An Insurance has selected Solix EDMS for database archiving, database sub setting and data masking for Oracle e-Business Suite R 11.5.10.

Ashapura Minechem Ltd plunged 4.89% as it is directed to pay damages of $24.16 million to London-based shipping firm IHX (UK).

HUL dropped by 3.23%. The company has reported a 2.7% fall in its net profit for the first quarter of 2009-10 at Rs. 543.19 crore against Rs. 558.20 crore in the year-ago quarter. The mark-to-market foreign exchange loss of Rs 32 crore has pulled down the net profit. However, the net sales were up 8% at Rs. 4,475.70 crore against Rs. 4,152.84 crore. The stock is now trading down by (2.78%) at Rs. 268.95.

Punjab National Bank ended up by 3.45%. The bank has posted a net profit for the period of Rs 8320.50 million for the quarter ended June 30, 2009 as compared to Rs 5124.00 million for the quarter ended June 30, 2008. Total Income has increased from Rs 45946.20 million for the quarter ended June 30, 2008 to Rs 61775.80 million for the quarter ended June 30, 2009.

Tata Steel, Sterlite, Sun Pharma retreat after poor Q1 numbers

A sell-off in Chinese stocks triggered a slide in stocks across emerging markets. Indian equities were no exception. Nevertheless, the BSE Sesnex regained the psychological 15,000 mark soon after falling below that level in early afternoon trade. The BSE 30-share Sensex lost 158.48 points or 1.03%, off 205.97 points from the day's high, and up 285.05 points from the day's low.

Realty, metal, and banking shares led the decline on the domestic bourses. Index heavyweight Reliance Industries recovered from intra-day low to rise over 0.5%. In stock-specific activity, Sun Pharma, Tata Steel and Sterlite Industries slumped after Q1 June 2009 results. However TCS jumped nearly 4%

As per the provisional figures on NSE, foreign institutional investors (FIIs) sold shares worth Rs 168.79 crore on Wednesday, 29 July 2009 whereas domestic institutional investors bought shares worth Rs 126.23 crore.

The market was volatile. Equities slipped in early trade on lower Asian stocks. It has soon regained positive zone with auto shares leading the recovery. A sell-off in Chinese stocks pulled Indian stocks sharply down in early afternoon trade. The market cut losses in afternoon trade on gains in European shares.

The market may remain volatile ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009. As per reports, rollovers of Nifty positions from July 2009 series to August 2009 series stood at 42%, as on Tuesday, 28 July 2009. Rollover in Mini Nifty was about 35%

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 1112 companies rose 22.5% to Rs 54375 crore on 2.3% fall in sales to Rs 474743 crore in Q1 June 2009 over Q1 June 2008.

At a quarterly review of the monetary policy, the Reserve Bank of India (RBI) on Tuesday, 28 July 2009, kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. The GDP is expected to grow at 6% in FY 2010, with an upward bias, the central bank said. At the time of the annual monetary policy announcement in April 2009, the central bank had forecast a 6% growth. So, the words 'with an upward bias' were the addition to that forecast.

The Finance Minister after trading hours on Monday, 28 July 2009 announced tax breaks for industrial park schemes and developers of real estate and road projects to stimulate the economy and lift growth to 8-9 percent by the end of 2010. He announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh. This could benefit realty firms and housing finance companies.

In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.

The government has also extended tax holiday to developers of industrial parks by two years until March 2011. A tax holiday for firms engaged in food processing has also been extended. Producers of natural gas from coal-bed methane blocks would also be extended tax breaks.

Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on Thursday, 23 July 2009.

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Finance Minister Pranab Mukherjee today said the government hopes to maintain the present level of economic growth despite a global slump. Certain signs of improvement are visible, Mukherjee said.

Meanwhile, investor focus may shift from secondary market to the primary market as Adani Power's initial public offer of 30.16 crore shares in the price band Rs 90-100 opened for subscription from Tuesday, 28 July 2009. The issue received strong response from investors and was subscribed around 4.64 times by 17:00 IST today, 29 July 2009. Adani said institutions including T. Rowe Price International Inc. demanded twice as many shares as offered in the so-called anchor investor portion of its initial sale.

The company will raise up to Rs 3,016 crore at the upper end of the price band, making it the second-biggest issue after Reliance Power.

Close on the heels of Adani Power, state-run power company NHPC will hit the primary market to raise upto Rs 6048 crore through sale of shares in a price-band of Rs 30-36 in an IPO. The issue will open on 7 August 2009 and close on 11 August 2009. The company would sell 168 crore shares comprising of 5% stake divestment of the government and infusion of 10% fresh equity.

Besides, Oil India and Pipavav Shipyard collectively plan to raise over Rs 2000 crore. Earlier, on 17 July 2009 the government said it is considering a part sale of its shareholding in the telecom monolith Bharat Sanchar Nigam (BSNL) to the public. Currently, the government fully owns BSNL.

European stocks rose today, 29 July 2009 led by financial stocks. Key benchmark indices in UK, Germany and France were up by between 1.06% and 1.99%.

Earlier in the day, Chinese stocks in Shanghai fell sharply as investors rushed to take profits, also sending Hong Kong-traded shares of mainland Chinese companies lower. In extremely volatile moves, the Shanghai Composite plunged as much as 7.7% in afternoon trading, before recovering to settled 5% lower at 3,266.43, giving up most of the gains made over the last five sessions. Hong Kong's Hang Seng was down 2.37%.

China's stocks plunged amid speculation the central bank is poised to order lenders to set aside larger reserves. Chinese policy makers in recent weeks have flagged inflationary worries and possible asset bubbles since lending exploded. New yuan loans in the first half of the year totaled 7.4 trillion yuan ($1.08 trillion), equivalent to about half of the country's gross domestic product in the period. The loan growth has spurred calls by economists for the central bank to fine-tune its policies.

Still, the People's Bank of China has signaled no reversal of its moderately loose monetary-policy stance, which is aimed at spurring growth in the world's third-biggest economy.

The Shanghai Composite has gained 79% this year as government stimulus spending, record bank lending and an economic rebound spurred demand for equities.

In other Asian markets, key benchmark indices in Taiwan, South Korea, Singapore, were down by between 0.11% and 0.83%. However Japan's Nikkei 225 index rose 0.26%.

Trading in US index futures showed the Dow could fall 25 points at the opening bell on Wednesday, 29 July 2009.

US stocks ended on a mixed note on Tuesday, 29 July 2009 after weak consumer confidence data offset gains on account of positive earnings. The Dow Jones Industrial Average shed 11.79 points, or 0.13%, to 9,096.72. The Standard & Poor's 500 Index dropped 2.56 points, or 0.26%, to 979.62. But the Nasdaq Composite Index gained 7.62 points, or 0.39%, to 1,975.51.

A report showed that US consumer confidence in July 2009 fell to 46.6, registering a second straight drop.

The BSE 30-share Sensex lost 158.48 points or 1.03% to 15,173.46. The Sensex opened 38.75 points lower at 15,293.19. The Sensex lost 443.53 points at the day's low of 14,888.41 in early afternoon trade. The Sensex rose 47.49 points at the day's high of 15,379.43 in mid-morning trade

The S&P CNX Nifty was down 50.60 points or 1.11% to 4,513.50. Nifty July 2009 futures were at 4496.20, at a discount of 17.30 points as compared to the spot closing.

The Sensex is up 5526.15 points or 57.28% in calendar year 2009 as on 29 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7013.06 points or 85.94% as on 29 July 2009.

Coming back to today's trade, turnover in NSE's futures & options (F&O) segment galloped to Rs 1,16,508.34 crore from Rs 76,854.19 crore on Tuesday, 28 July 2009. The BSE clocked a turnover of Rs 7509 crore, higher than Rs 7051 crore on Tuesday, 28 July 2009

The market breadth, indicating the overall health of the market, was weak after a positive start. On BSE, 1575 shares declined as compared with 1095 that advanced. 76 shares remained unchanged.

The BSE Mid-Cap index lost 0.98% to 5,477.09, outperforming the Sensex. The BSE Small-Cap index slipped 1.46% to 6,154.75, underperforming the Sensex.

Most sectoral indices on BSE ended lower. The BSE Realty index (down 4.36%), BSE Capital Goods index (down 1.75%), the BSE Power index (down 1.24%), the BSE Metal index (down 2.31%), BSE PSU index (down 1.22%), BSE Healthcare index (down 1.72%), BSE FMCG index (down 2.03%), BSE Consumer Durables index (down 3.13%), the BSE Bankex (down 1.21%), underperformed the Sensex.

The BSE TECk index (down 0.33%), BSE Auto index (down 0.49%), the BSE IT index (up 0.33%), the BSE Oil & Gas index (up 0.32%), outperformed the Sensex.

Among the 30-member Sensex pack, 23 declined while the rest gained.

Rate sensitive realty shares dropped on profit taking after a recent rally. Investors are concerned that the central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation. Rising interest rates may dent property demand as most of the commercial and housing deals are driven by finance.

India's largest real estate developer by sales DLF plunged 6.83% to Rs 397 and was the top loser from the Sensex pack

Unitech (down 5.54%), Housing Development & Infrastructure (down 7.52%), Parsvnath Developers (down 6.11%), Sobha Developers (down 1.11%), and Omaxe (down 6.98%), declined

India's largest pharma company by market capitalisation Sun Pharma tumbled 5.38% after net profit declined 56.72% to Rs 121.51 crore in Q1 June 2009 over Q1 June 2008.

India's third largest pharma company by sales Cipla lost 3.22%. The company's net profit rose 72.6% to Rs 241.71 crore on 13.2% rise in net sales to Rs 1,325 crore in Q1 June 2009 over Q1 June 2008. The company declared its results during market hours today, 29 July 2009.

Alembic spurted 3.79% after the company posted consolidated net profit of Rs 12.25 crore in Q1 June 2009 as against net loss of Rs 4.70 crore in Q1 June 2008. The company declared its results after market hours on Tuesday, 28 July 2009.

Metal stocks slipped after LMEX, a gauge of six metals traded on the London Metal Exchange, declined 1.23% on Tuesday, 28 July 2009.

India's largest private sector steel maker by sales Tata Steel lost 6.09% after net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours today, 29 July 2009.

India's largest copper market by sales Sterlite Industries shed 5.70% after net profit fell 42% to Rs 6.73 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours today, 29 July 2009.

Steel Authority of India (down 4.32%), Sesa Goa (down 3.04%), Ispat Industries (down 5.82%), Nalco (down 2.23%), and Hindustan Zinc (down 2.74%), declined.

JSL jumped 4.67% after net profit surged 233.4% to Rs 94.76 crore on 13.3% fall in net sales to Rs 1346.49 crore in Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Tuesday, 28 July 2009.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 0.52% to Rs 1920.10, staging a smart pullback from day's low of Rs 1872.50

Reliance Natural Resources (RNRL) chairman Anil Ambani on Tuesday, 28 July 2009 accused the Petroleum Ministry of being biased in the legal dispute with brother Mukesh Ambani-led Reliance Industries (RIL) over the price of natural gas from the Krishna-Godavari basin. Addressing shareholders of the company, he also said the government would not lose a single rupee even if the gas from RIL's fields off the Andhra Pradesh coast were to be supplied to his company at the originally contracted price of $2.34 per unit.

Addressing shareholders at the RNRL's Annual General Meeting, Anil Ambani asked the Oil Ministry to cancel the Production Sharing Contract with RIL if it was really aggrieved and not challenge third party agreements. Giving details of the global gas scenario, he said the price of the industrial fuel had crashed 80% and the gas price of $4.2 per mmBtu (fixed by the Government) was "exorbitant" and against public interest.

Last month, the Bombay High Court had asked Reliance Industries to supply 28 million units of gas to Reliance Natural Resources for 17 years at $2.34 per unit, after assigning 12 million units to the state-run power utility NTPC. Reliance Industries challenged the verdict in the Supreme Court, which heard the case on 20 July 2009 and fixed 1 September 2009 as the next date of hearing. It also asked all the parties to file their replies on the government position on the matter by then.

Oil exploration pivotals slipped on fall in crude oil prices. ONGC (down 0.75%), and Cairn India (down 2.68%), slipped. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.

But the fall in crude prices lifted shares of PSU OMCs. BPCL (up 0.67%), HPCL (up 0.69%) and Indian Oil Corporation (up 1.28%) gained. Lower crude oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

HPCL reported a net profit of Rs 649.12 crore in Q1 June 2009 as compared with a net loss of Rs 888.12 crore in the Q1 June 2008. The results were declared during market hours today, 29 July 2009.

Light sweet crude for September delivery fell $1.15 to settle at $67.23 a barrel on the New York Mercantile Exchange on Tuesday, 28 July 2009.

Gujarat Gas Company jumped 13.31% after the company's board declared a liberal 1:1 bonus issue at the time of announcing Q2 June 2009 results after trading hours on Tuesday, 28 July 2009. This is a maiden bonus from Gujarat Gas Company.

Everest Kanto Cylinders tumbled 4.70% after net profit fell 18.2% to Rs 10.26 crore on a 28.3% decline in sales to Rs 65.44 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours yesterday, 28 July 2009.

Great Offshore rose 4.85% to Rs 458.25 after 16.65 lakh shares, or 4.48% equity, changed hands in two block deals on the BSE and the NSE. The counter saw a block deal of 14.40 lakh shares on the Bombay Stock Exchange, at Rs 450 per share. Another deal of 2.24 lakh shares was executed on the National Stock Exchange at the same price.

India's largest software firm by sales TCS gained 3.89% to Rs 498.40 on reports the company will re-bid for the UGC order once fresh bids are called. The University Grants Commission (UGC) has reportedly cancelled a Rs 250 crore e-governance project it had awarded TCS in March 2009, due to funding and internal conflicts in UGC. It was the top gainer from the Sensex pack

Select auto stocks regained positive zone in choppy trade. India's largest tractor maker by sales Mahindra & Mahindra gained 2.21% to Rs 841, off day's low of Rs 806.85 ahead of its Q1 June 2009 earnings on 30 July 2009.

India's top small car maker by sales Maruti Suzuki India rose 0.12% to Rs 1390.50 after declining to day's low of Rs 1364. The stock struck a record high of Rs 1418 on the BSE in intra-day trade today, 29 July 2009. The stock has been on a roll ever since it announced strong Q1 June 2009 results during market hours on 23 July 2009.

But India's largest truck market by sales Tata Motors slumped 5.46% to Rs 391.60, off day's high of Rs 412 on profit booking. The had stock surged 10.76 on Tuesday, 28 July 2009 after reporting 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008. Analysts had expected a steep fall in net profit due to lower sales volume. The result was announced at the fag end of the trading sessions on Monday, 27 July 2009.

India's largest bike maker by sales Hero Honda Motors slipped 2.02%. The company posted 83% jump in net profit to Rs 500 crore on 34% rise in total revenue to Rs 3865 crore in Q1 June 2009 over Q1 June 2008. The company announced Q1 June 2009 results after market hours today, 29 July 2009.

Bank stocks slipped after the Reserve Bank of India's (RBI) in its quarterly monetary policy review on Tuesday, 28 July 2009, raised inflation forecast which may result in reversal of the current soft interest rate regime. India's largest private sector bank by net profit ICICI Bank was down 1.17% mirroring a 3.25% fall in its American depository receipt (ADR) on Tuesday, 28 July 2009.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.87%. The bank's chairman on Tuesday, 28 July 2009 said that credit growth is expected to pick up in second half of the year. The state-run bank reduced interest rates on deposits by 25-50 basis points (a basis point equals one-hundredth of a percentage point) with effect from Monday, 27 July 2009.

India's second largest private sector bank in terms of operating income HDFC Bank declined 0.64% after a 1.61% fall in its American depository receipt (ADR) on Tuesday, 28 July 2009.

Punjab National Bank rose 2.97% after net profit surged 62.38% to Rs 832.05 crore on 34.45% rise in total income to Rs 6,177.58 crore in Q1 June 2009 over Q1 June 2008. The bank declared its results during trading hours today, 29 July 2009.

India's largest FMCG company by sales Hindustan Unilever declined 3.10% on selling pressure. The stock had tanked 7.68% on Tuesday, 28 July 2009 after reporting a 2.68% fall in net profit to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared in late trade on Tuesday, 28 July 2009.

Power generation stocks slipped on profit booking after a strong response to the Adani Power initial public offer which opened for subscription on Tuesday, 28 July 2009. Reliance Infrastructure (down 3.96%), NTPC (down 1.96%), Reliance Power (down 2.84%), declined. However, India's second largest private sector power generation firm by sales Tata Power rose 2.96% to Rs 1303.10, off day's low of Rs 1187

Rural Electrification Corporation rose 5.48% after net profit rose 73.1% 471.82 crore on 47.2% rise in net sales to Rs 1,449.35 crore in Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Tuesday, 28 July 2009.

Fertiliser shares declined on fears the ongoing tussle between the Ambani brothers might impact the smooth flow of gas from the Krishna Godawari basin which was earlier allocated to fertiliser firms on a priority basis.

Rashtriya Chemicals and Fertilizers (down 5.14%), Nagarjuna Fertilizers & Chemicals (down 3.16%), Chambal Fertilizers & Chemicals (down 1.96%), Deepak Fertilisers and Petrochemicals Corporation (down 2.59%), and Tata Chemicals (down 0.35%), declined.

Tata Steel topped the turnover chart on BSE with a turnover of Rs 300.14 crore, followed by Unitech (Rs 272.69 crore), Reliance Industries (Rs 258.54 crore), Aban Offshore (Rs 251.94 crore) and Jindal Steel & Power (Rs 251.94 crore)

Unitech led the volume toppers on BSE clocking volume of followed by Suzlon (2.98 crore shares), Cals Refineries (2.17 crore shares), Suzlon Energy (2.14 crore shares), Reliance Natural Resources (2.13 crore shares) and Ispat Industries (1.84 crore shares).

Gammon India jumped 10.76% to Rs 164.55. The stock had plunged as much as 12.44% in early trade to a day's low of Rs 130.10. The company has been served a show cause notice by the Delhi Metro Rail Corporation (DMRC), asking it to state why it should not be banned for two years and debarred for bidding contracts under phase IV of the project. This comes a little over a month after an accident at the site claimed six lives and prompted DMRC chief, E Sreedharan to submit his resignation. The probe panel has held Gammon India responsible for the mishap.

Birla Corporation spurted 2.55% after net profit rose 69.2% to Rs 155.34 crore on a 23.9% increase in sales to Rs 490.40 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours on Tuesday, 28 July 2009

Kingfisher Airlines gained 2.42%. The company said it posted a net loss of Rs 1609 crore on net sales of Rs 5270 crore in the year ended March 2009. Year-ago figures were not immediately available. The results were announced today, 29 July 2009.

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Daily News Roundup - July 29 2009

US$23bn strategic equity alliance between Bharti Airtel and MTN awaits clearance from the competition authorities of both countries. (ET)

Tata Motors appoints Roland Berger strategy consultant and KPMG to trim costs at JLR. (BS)

SABMiller selects Infosys to evaluate and improve the effectiveness of its marketing campaigns. (ET)

Maruti rolls out 100,000 KB-series cars in 10 months. (BS)

Sobha Developers is set to raise another Rs2.5bn by selling over 100 acres of its land in Pune. (BS)

Reliance Power plans to raise further Rs200bn to finance its ongoing projects. (ET)

Reliance Infrastructure aims at a five-fold increase in its roads portfolio to Rs22bn by 2012 from Rs46bn. (BS)

GMR has commenced commercial operations of its sixth national highway project - 73km stretch on NH-45. (ET)

KSK Energy to raise Rs20bn through FCCB or GDR issue. (BL)

McLeod Russel eyes Africa plantations to increase tea output. (FE)

Delhi Metro Rail Corporation serves Gammon India, the contractor working at the Zamrudpur accident site, a show-cause notice, bans it for 2 years and debars it from bidding for new contracts. (ET)

Maytas Infra ties up with a Singapore based consultancy firm to raise upto Rs2.4bn to retain the metro rail project. (ET)

JSW Steel plans to route upto 25% of its total revenues through retail chains over the next 2-3 years. (ET)

Matrix Laboratories has been issued a notice by WHO in relation to the anti-retroviral drugs it supplies to WHO for its HIV/AIDS program. (ET)

Wockhardt has sold its nutritional business comprising of Farex, Protinex, Dexolac and Nusobee and manufacturing units at Lalru and Jagraon in Punjab to Abbot Laboratories for US$130mn. (ET)

L&T Finance plans to raise Rs1bn via NCDs. (BS)

Jet Airways and Kingfisher Airlines bet on global routes for forex and fuel cost advantage. (BL)

Titan eyes sales of Rs150mn watches in Orissa. (BL)

Zensar Technologies announced a buyback plan with a maximum price of Rs165/share and a minimum outlay of Rs400mn. (BL)

Adani Power IPO oversubscribed 4 times on debut. (ET)

NHPC plans to have an installed capacity of 10GW by the end of the XIth Five Year Plan. (FE)

NHPC fixes IPO price band at Rs 30-36. (BL)

Century Textiles plans to invest Rs19.3bn over the next 2-3 years to modernize and expand its capacity. (ET)

RBI keeps rates unchanged, but has hinted at rising rates going forward. (ET)

Poor rains have damaged 35-40% of sugarcane crop in UP. (FE)

National Solar Mission targets solar generation of 20GW by 2020. (FE)

Uttar Pradesh Power department staff have threatened to go on a strike from August 11th. (FE)

Orissa Power Generation Corporation plans to expand its capacity by 1320 MW by 2013. (BS)

Property developers plan more launches in the sub-Rs2mn category homes, after Budget concession. (BS)

NABARD has sanctioned Rs7.9bn to implement various projects in Tamil Nadu. (BS)

No emotions on the Street!

They may forget what you said, but they will never forget how you made them feel.

An emotionally charged speech by Anil Ambani partly overshadowed the RBI’s Q1 review, which by the way held no surprises. We will only say that we haven’t heard the last word on the RIL-RNRL matter. Though the Supreme Court’s verdict should be binding, one cannot rule out surprises.

Coming to the RBI, the central bank sees an upward bias to growth. At the same time, it warns of an inflation spike in the second half of FY10. It is amply clear that interest rates have bottomed out and will head higher in step with the economic recovery. One will have to keep an eye on the trend in inflation, both locally and globally.

As far as markets are concerned, looks like the bulls are suffering from fatigue after a two-week rally. Even the global markets have turned insipid. Today again, we are likely to witness a lackluster and choppy day after a cautious start. On the eve of the F&O expiry, any decisive move looks unlikely. Besides, a plethora of results are in the pipeline over the next 2-3 days.

Results Today: Ackruti, AV Birla Nuvo, Alfa Laval, Alok Industries, Balaji Telefilms, Bank of Rajasthan, BPL, Cairn India, Cipla, Corporation Bank, Cummins India, EID Parry, Elder Pharma, Future Capital, GSK Consumer, Godrej Industries, Great Offshore, Hero Honda, Hexaware, HPCL, HDIL, IOB, Indraprastha Gas, IRB Infra, IVR Prime, IVRCL Infra, Jindal Steel, Kalpataru Power, Lanco Infra, Lupin, Matrix Labs, NIIT, NIIT Tech, Nirma, NMDC, Noida Toll, Patni, Power Grid, PNB, RNRL, Reliance Power, Sesa Goa, Shipping Corp., Shoppers Stop, Sobha Developers, Sterlite Industries, Sun Pharma, Sun TV, Tata Elxsi, Tata Steel, Torrent Pharma and United Spirits.

FIIs were net sellers of Rs587.6mn in the cash segment on Tuesday on a provisional basis while the local funds pumped in Rs4.48bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs6.7bn. On Monday, the foreign funds were net buyers of Rs4.46bn in the cash segment. Mutual Funds were net sellers on the same day at Rs1.77bn.

US stocks ended mixed on Tuesday as investors weighed a weaker-than-expected consumer confidence report and a better-than-expected housing report in the aftermath of a big rally.

The Dow Jones Industrial Average lost 12 points, or 0.1%, to 9,096.72. The S&P 500 index fell almost 3 points, or 0.3%, to 979.62. The Nasdaq Composite index rose 7 points, or 0.4%, to 1,975.51.

US stocks have gained for the last two weeks on the back of stronger than expected second-quarter results. The Dow and S&P 500 have added around 11.5% and the Nasdaq has gained 12%. But after such a big run, stocks have become vulnerable to some profit taking.

Consumer confidence slipped for the second straight month, the Conference Board reported, as growing joblessness and a prolonged recession took a toll on investor psychology. The index dipped to 46.6 in July from 49.3 in June. Economists thought the index would slip to 49.

As a result of growing joblessness and weak consumer confidence, spending by consumers is likely to remain sluggish. That doesn't bode well for GDP growth, which drives two-thirds of consumer spending.

On Friday, the US government will release the initial reading on second-quarter GDP. The report is expected to show that GDP shrank at a 1.5% pace, according to economists, after shrinking at a 5.5% pace in the first quarter. The slower pace may signal better times are on the horizon.

On a more positive note, a key measure of home prices showed its first monthly increase in three years. The S&P/Case-Shiller 20-city home price index rose 0.5% in May. The index dropped 17.1% versus a year ago, short of forecasts for a bigger drop of 17.9%. It was the fourth month in a row that the pace of declines lessened. On Monday, another report showed sales of new homes rose more than expected in May.

The three-week rally that’s sent a measure of homebuilder stocks toward a seven-month high is signaling an end to the worst housing downturn since the 1930s, according to John Murphy, chief technical analyst at StockCharts.com.

Valero Energy reported weaker revenue and earnings that topped estimates. Shares fell 2.4%. It was one of several oil services companies tumbling, along with the price of crude. Dow components Chevron and Exxon Mobil both declined modestly. The Amex Oil index fell 1.4%.

US light crude oil for September delivery fell $1.15 to settle at $67.23 a barrel on the New York Mercantile Exchange.

Bank of America shares gained after the company said it plans to reduce some of its 6,100 branch network. Reports said it planned to cut as much as 10% of the network, but the bank said the figure was smaller.

In deal news, IBM said it will buy Chicago-based business software maker SPSS in an all-cash deal worth $50 per share or $1.2 billion.

Sprint Nextel will buy the remaining 87% of Virgin Mobil it doesn't already own in an all-stock deal worth $5.50 per share or $483 million.

Media conglomerate Viacom reported weaker quarterly profit that nonetheless topped expectations.

This week is the biggest for corporate results, with 146 of the S&P 500 due to release reports. So far, 77% of reported earnings have topped forecasts, versus the long-term average of 61%, according to earnings tracker Thomson Reuters.

Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.70% from 3.72% late on Monday.

The two-year notes declined after a $42 billion auction did not generate as much interest as the prior month's two-year note auction.

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

COMEX gold for December delivery fell $14.60 to settle at $941.70.

Sprint Nextel, Time Warner and ConocoPhillips are all due to report results on Wednesday morning.

The June durable goods orders report is also due Wednesday morning, along with the weekly crude oil inventories report from the Energy Information Administration. In the afternoon, the Federal Reserve releases its periodic "Beige Book" report on economic activity in its 12 districts.

European shares were unable to extend their recent bull run, ending mostly lower, as investors took stock of mixed earnings from the likes of Deutsche Bank, BP, EADS and BBVA. After showing mild gains early in the session, the pan-European Dow Jones Stoxx 600 index turned lower to close at 218.54, down 0.9%.

UK's FTSE 100 index fell 1.3% to close at 4,528.84, snapping an 11-session winning streak. The German DAX index traded down 1.5% to end at 5174.74, while the French CAC-40 index dropped 1.2% to settle at 3,330.97.

Indian markets ended on a flat note for the second straight trading session as key indices were unable to stage a linear one-way movement in either direction. Subdued cues from international equity markets also played a spoilsport for the bulls on Tuesday.

In addition, the NSE Nifty once again faced stiff resistance at the 4,600 level which has acted a hurdle for the index in the past. Having said that, the broader market was in action indeed as the Mid-Cap and the Small-Cap index both ended higher by 1.5% each.

Monetary policy review also turned out to be a non event, as expected, the Reserve Bank of India (RBI) kept all policy rates unchanged, as it seeks to bolster economic growth amid persistent worries over the precarious global situation.

The Realty, Auto, Metals and the Power stocks were in demand. While, the FMCG, Banking and the Oil & Gas stocks remained under pressure.

The BSE Sensex ended lower by 43 points at 15,332 after touching a high of 15,463 and a low of 15,240. The index opened at 15,428 against the previous close of 15,375. The NSE Nifty slipped 13 points to shut shop at 4,559.

In Asia, the Nikkei in Japan ended flat to end at 10,087, while Australia's S&P/ASX ended higher by 0.7% at 4,169. The Hang Seng index in Hong Kong advanced by 1.8% to end at 20,624.

In Europe, stocks were mixed. The FTSE in the UK was down 0.3% at 4,573. The DAX was flat at 5,243 and the CAC 40 was down 0.2% at 3,367.

Coming back to India, among the BSE sectoral indices, the Realty index was the top gainer, rising 4.5%, followed by the Auto index that was up 2.1%. The BSE Metal index up 1.2% and the BSE Power index was up 0.7%.

The BSE Mid-Cap index advanced 1.1% and the BSE Small-Cap index rose 1.6%.

Within the Sensex, the major gainers were Tata Motors, Reliance Infra, DLF, Maruti, RCom, Tata Power and Tata Steel. Among the major losers were Hindustan Unilever, ICICI Bank, Grasim, SBI, Reliance Industries and Infosys.

Outside the frontline indices, the top gainers included Cadila, Nagarjuna Const, Renuka Sugar, Welspun Gujarat, Tata Chemicals and RCF.

Among the big losers in the broader market were Areva, Bank of India, Fin Tech, ABB and Jain Irrigation.

Grasim Industries has posted 61% growth in net profit at Rs10.80bn for the quarter ended June 30, 2009. The huge growth is on account of sale of its sponge iron division. Excluding the one time gain, the company has still managed to clock in growth of 3% YoY. Net profit for the company for the quarter ended June 30, 2008 was at Rs6.72bn

Total Income is Rs51.79bn for the quarter ended June 30, 2009 where as the same was at Rs45.16bn for the quarter ended June 30, 2008. The stock slipped nearly 2% to Rs2837, it opened at Rs2898 and made an intra-day high of Rs2938 and a low of Rs2802. Total traded volumes stood at 92,000 shares.

Shares of Hindustan Unilever dropped by over 7% to end at Rs277 after the company reported a net profit of Rs5.43bn down 2.6% YoY for the fiscal first quarter ended June 30, 2009 as against Rs5.58bn in the same period last year. Total income for the reporting quarter has increased to Rs45.36bn from Rs43.17bn for the quarter ended June 30, 2008.

The stock opened at Rs303 and made an intra-day high of Rs306 and a low of Rs273. Total traded volumes stood at 4.3mn shares.

Shares of ITC gained by 1% to end at Rs240. According to reports, the company plans to invest Rs80bn in the next five years to scale up its hotel business. Besides investing Rs80bn for hotel expansion, the company is also investing Rs40bn-50bn in a greenfield paper plant.

The stock opened at Rs240 and made an intra-day high of Rs245 and a low of Rs232. Total traded volumes stood at 0.89mn shares.

Shares of Kotak Mahindra Bank slipped by 1% to end at Rs662. The company announced its Q1 results with net profit at Rs2.57bn as against Rs1.5bn in the same period previous year. Thereby posting a 71% growth YoY.

Total Income increased from Rs7.9bn for the quarter ended June 30, 2008 to Rs8.9bn for the quarter ended June 30, 2009. The stock opened at Rs672 and made an intra-day high of Rs681 and a low of Rs648. Total traded volumes stood at 0.67mn shares.

Bharti Airtel announced that the company has exceeded 1mn customers in Sri Lanka and further plans to start operations in Sri Lanka North. Shares of Bharti gained by 1% to Rs427. The stock opened at Rs425 and made an intra-day high of Rs435 and a low of Rs415. Total traded volumes stood at 0.99mn shares.

Shares of SpiceJet surged by over 5% to Rs20 after the company returned to profits.

The company announced its quarterly results with a net profit of Rs263.4mn for the three months ended June 30 as against a loss of Rs1292.2mn in the same period a year earlier. The company’s Net sales were at Rs5,246.9mn as against Rs4,571.9mn in the same period last year.

Pre Session Commentary - July 29 2009

Today domestic markets are likely to open negative as majority of markets in Asia are trading in red. The US consumer confidence data tumbled for the second consecutive month causing further concerns of deteriorating demand. In the domestic arena the first quarter results from a majority of heavyweights like Tata Steel and Hero Honda would play a major role in guiding the market sentiments. Besides there is immense cautiousness prevailing amongst domestic traders ahead of the F&O expiry.

On Tuesday, domestic markets closed choppy ahead of F&O expiry. The markets opened on a subdued note ahead of the F&O expiry. Finally the much awaited RBI June quarterly review policy came with a lot of disappointment. RBI kept its key rates unchanged however asserted the fact that there is some scope for lowering interest rates. RBI forecasts the WPI inflation to remain at 5% and GDP growth rate to be at 6% during FY10. There was lot of disappointment prevailing in the market and traders were hesitating to buying at higher levels. The range bound trade finally ended flat as traders squared off their positions. From the sectoral front Realty, Auto and Metal led the markets with gains of 4.64%, 1.92% and 1.25% respectively. There was phenomenal bottom fishing once again as BSE Mid Cap and Small Cap index gained by 1.13% and 1.68% respectively. Domestic markets are likely to trade range bound today.

The BSE Sensex closed lower by 43.10 points at 15,331.94 and NSE Nifty also ended flat at 4,564.10. BSE Mid Caps and Small Caps closed up by 61.87 points and 103.07 points at 5,531.37 and 6,245.81 respectively. The BSE Sensex touched intraday high of 15,463.46 and intraday low of 15,240.53.

On Tuesday, the US stock markets closed mixed. There was lot of consolidation happening across the broader level and during the day stocks spent most of their time in the negative territory. The Consumer confidence data disappointed traders as it made its second straight decline by coming at 46.6. Retailers performed well despite of poor consumer confidence data. Health care stocks (+0.2%) outperformed the broader market for the entire session on the back of better-than-expected earnings and an upside forecast from Amgen (AMGN 62.42, +1.65) and upbeat earnings and an in-line outlook from Teva Pharmaceutical (TEVA 53.25, +2.15). Treasuries were in the limelight but the auction of $42 billion 2-year notes pulled some of early gains. The auction had a bid to cover ratio of 2.75 and fell two ticks. US light crude oil futures for September delivery closed at $67.23 per barrel down by 1.7% on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed lower by 11.79 points at 9,096.72, NASDAQ index inclined by 7.62 points to 1,975.51 and the S&P 500 (SPX) closed low by 2.56 points at 979.62.

Today major stock markets in Asia are trading in negative territory. Hang Seng is low by 344.74 points at 20,279.80. Shanghai Composite is low by 60.32 points at 3,378.05. Japan''s Nikkei is trading up by 5.58 points at 10,092.84. Strait Times is low by 4.12 points at 2,619.92.

Indian ADRs ended weak on Tuesday. In the banking space, ICICI Bank was down 3.25% and HDFC Bank was down 1.61%. In the telecom space, MTNL was down 2.16% and Tata Communication was down 0.05%. In the IT space, Satyam Computers was down 1.5%, Infosys was down 1.01%, Wipro was down 0.07% while Patni Computers was up 1.19%.

The FIIs on Tuesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 3,032.30 Crore, while the gross equity sold stood at Rs 2,586.10 Crore and gross debt purchased stood at Rs 553.50 Crore, while gross debt sold stood at Rs 429.80 Crore. The net investment of equity reported was Rs 446.10 Crore and net debt was Rs 123.80 Crore.

On Tuesday, the partially convertible rupee ended at Rs 48.20/21, 0.08% stronger than its previous close at 48.16/17. The rupee fell due to lack of cues from the local domestic stock markets which traded range bound.

On BSE, total number of shares traded were 50.32 Crore and total turnover stood at Rs 7,051.37 Crore. On NSE, total number of shares traded were 111.05 Crore and total turnover was Rs 22,072.74 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 134887122 shares, followed by Suzlon Energy with 43935787, DLF with 20024293, Tata Motors with 15517278 and HUL with 14579109 shares.

On NSE Future and Options, total number of contracts traded in index futures was 766690 with a total turnover of Rs 17,182.21 Crore. Along with this total number of contracts traded in stock futures were 947123 with a total turnover of Rs 29,094.10 crore. Total numbers of contracts for index options were 1238904 with a total turnover of Rs 28,401.90 Crore and total numbers of contracts for stock options were 68548 and notional turnover was Rs 2,175.98 Crore.

Today, Nifty would have a support at 4,505 and resistance at 4,648 and BSE Sensex has support at 15,195 and resistance at 15,548.

Volatility may continue

The presense of a sharp intra-day volatile trend due to lack of clarity may see the market remain edgy and move on the either side of the zone. Mixed close at the US markets and weak start in Asian indices trend in the present trades could move down the local indices in early trades. The Sensex swung 300 points during intra-day trades on Fed jitters and shed 0.21% at the close on Tuesday across-the-board selling pressure. Key announcements like Reliance Power, RNRL, Hero Honda, Tata Steel, Sterlite, Sesa Goa, Jindal Steel, Cairn India, Cipla, Sun Pharma, HPCL, PNB are expected to announced their figures.

US markets ended mixed Tuesday as investors weighed a weaker-than-expected consumer confidence report and a better-than-expected housing report in the aftermath of a big rally. While the broader Dow Jones scaled down by 12 points at 9097, and the tech-heavy Nasdaq moved up by 8 points to close at 1976.

Barring Patni Computers & Tata Motors, rest of the Indian ADRs followed the US markets and ended with losses. Rediff, ICICI Bank and MTNL shed over 2-3% each while HDFC Bank, Infosys, Satyam, Wipro, Dr Reddy's and VSNL were down around 0.50-1% each.

Crude oil prices are moved down sharply, while the Nymex light crude oil for September delivery declined by $1.15 to close at $67.23 a barrel. In the commodity segment, the Comex gold for December series dropped by $14.60 to settle at $941.70 an ounce.

Crude marks first drop in four sessions

Strong dollar pulls down crude

Crude prices ended lower on Tuesday, 28 July, 2009. Prices dropped for the first time in four sessions today. Prices faltered due to the relatively strong dollar.

On Tuesday, crude-oil futures for light sweet crude for September delivery closed at $67.23/barrel (lower by $1.15 or 1.7%). Prices fell to a low of $66.6 earlier during the day. Last week, crude ended higher by 7.1%.

For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 54.4% since then. In July, 2009, it has dropped by 4.5% till date. Year to date, in 2009, crude prices are higher by 41.8%.

In the currency market on Tuesday, the dollar index, a six-currency gauge of the greenback's value, rose by more than 0.4%. The dollar strengthened on weak consumer confidence data.

The Conference Board reported on Tuesday, 28 July, 2009 that consumer confidence took its second consecutive monthly drop in July, 2009. The index dropped to 46.6 in July from an unrevised 49.3 in June. In May, the confidence gauge stood at 54.8. The confidence measure was worse than expected. Market was expecting confidence to dip to 48 in July from the June reading.

Also at the Nymex on Tuesday, August reformulated gasoline fell 2.41 cents to $1.9106 a gallon and August heating oil dropped 3.19 cents to $1.7647 a gallon.

August natural gas futures declined 6.90 cents to $3.5350 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 August delivery closed lower by Rs 41 (1.24

Precious metals turn pale

Gold and silver witness substantial drops as crude slips and dollar gains

Falling crude price and strengthening dollar took their toll on precious metals on Tuesday, 28 July, 2009. Crude prices slipped for the first time after four consecutive sessions of rise. On the other hand, weak consumer confidence data strengthened the dollar. These factors reduced the appeal of precious metals as a hedge against inflation.

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 $939.1, lower by $14.40 (1.5%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 6%.

For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had 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 September delivery lost 25 cents (1.8%) at $13.74 an ounce. Last week, silver ended higher by 3.5%.

Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 21.7% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the dollar index, a six-currency gauge of the greenback's value, rose by more than 0.4%. The dollar strengthened on weak consumer confidence data.

The Conference Board reported on Tuesday, 28 July, 2009 that consumer confidence took its second consecutive monthly drop in July, 2009. The index dropped to 46.6 in July from an unrevised 49.3 in June. In May, the confidence gauge stood at 54.8. The confidence measure was worse than expected. Market was expecting confidence to dip to 48 in July from the June reading.

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 186 (1.2%) at Rs 14,755 per 10 grams. Prices rose to a high of Rs 14,962 per 10 grams and fell to a low of Rs 14,715 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 331 (1.5%) lower at Rs 22,396/Kg. Prices opened at Rs 22,750/kg and fell to a low of Rs 22,258/Kg during the day's trading.

SGX Nifty Live Update - July 29 2009

4,525.5 -36.5

Indices seen opening little changed on mixed global cues

Local equity indices are likely to see a muted start following mixed global cues. However high intra-day volatility may not be ruled out ahead of the derivative contracts expiry for the July 2009 series on Thursday, 30 July 2009. The SGX Nifty futures for July 2009 expiry was down 2 points, while that of August 2009 expiry slumped 38 points in Singapore. Companies announcing their June 2009 quarterly results today, 29 July 2009 will be in spotlight. Also the raging battle between the estranged Ambani brothers may damped sentiment on the bourses.

Hero Honda Motors, Tata Steel, Sterlite Industries, Sesa Goa, Jindal Steel, Cairn India, Cipla, Sun Pharma, HPCL, PNB, Reliance Power and RNRL among others will announce their June 2009 quarterly result today, 29 July 2009. The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 825 companies rose 16% to Rs 45525 crore on 2.5% growth in sales to Rs 351504 crore in Q1 June 2009 over Q1 June 2008.

Equities may remain volatile ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009.

Meanwhile, investor focus may shift from secondary market to the primary market as Adani Power's initial public offer of 30.16 crore shares in the price band Rs 90-100 opened for subscription from 28 July 2009. The issue received strong investors response and was subscribed around 4 times on day one. Adani said institutions including T. Rowe Price International Inc. demanded twice as many shares as offered in the so-called anchor investor portion of its initial sale.

The company will raise up to Rs 3,016 crore at the upper end of the price band, making it the second-biggest issue after Reliance Power.

Close on the heels of Adani Power, state-run NHPC will hit the primary market on 7 August to raise around Rs 6000 crore. Besides, Oil India and Pipavav Shipyard collectively plan to raise over Rs 2000 crore. Earlier, on 17 July 2009 the government said it is considering a part sale of its shareholding in the telecom monolith Bharat Sanchar Nigam (BSNL) to the public. Currently, the government fully owns BSNL.

Most Asian markets were trading
lower today, 29 July 2009, snapping recent rally. Key benchmark indices in Hong Kong, Taiwan, Singapore, South Korea, China, were down by between 0.18% and 1.47%. However Japan's Nikkei 225 rose 0.17%.

US stocks ended on a mixed note on Tuesday, 29 July 2009 after weak consumer confidence data offset gains on account of positive earnings. The Dow Jones Industrial Average shed 11.79 points, or 0.13%, to 9,096.72. The Standard & Poor's 500 Index dropped 2.56 points, or 0.26%, to 979.62. But the Nasdaq Composite Index gained 7.62 points, or 0.39%, to 1,975.51.

On the economic front, markets struggled after a report that the July 2009 consumer confidence fell to 46.6, registering a second straight drop.

Back home, in a major event on Tuesday, 28 July 2009, the Reserve Bank of India (RBI) kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. The repo rate, at which the central bank lends cash to banks, stays at 4.75%, and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.25%. Both these rates are at record low level. The statutory liquidity ratio (SLR) was also kept unchanged at 24%.

The RBI also kept the cash reserve ratio (CRR), the amount of funds banks have to keep on deposit with it, unchanged at 5%. The RBI said the deposit growth is seen at 19% adding that there is scope for the banks to cut interest rates. The GDP is expected to grow at 6% in FY 2010, with an upward bias, the central bank said. At the time of the annual monetary policy announcement in April 2009, the central bank had forecast a 6% growth. So, the words 'upward bias' were the addition to that forecast.

Reliance Natural Resources (RNRL) chairman Anil Ambani on Tuesday, 28 July 2009 accused the Petroleum Ministry of being biased in the legal dispute with brother Mukesh Ambani-led Reliance Industries (RIL) over the price of natural gas from the Krishna-Godavari basin. Addressing shareholders of the company, he also said the government would not lose a single rupee even if the gas from RIL's fields off the Andhra Pradesh coast were to be supplied to his company at the originally contracted price of $2.34 per unit.

Addressing shareholders at the RNRL's Annual General Meeting, Anil Ambani asked the Oil Ministry to cancel the Production Sharing Contract with RIL if it was really aggrieved and not challenge third party agreements. Giving details of the global gas scenario, he said the price of the industrial fuel had crashed 80% and the gas price of $4.2 per mmBtu (fixed by the Government) was "exorbitant" and against public interest.

The Finance Minister after trading hours on Monday, 28 July 2009 announced tax breaks for industrial park schemes and developers of real estate and road projects to stimulate the economy and lift growth to 8-9 percent by the end of 2010. He announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh. This could benefit realty firms and housing finance companies.

In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.

The government has also extended tax holiday to developers of industrial parks by two years until March 2011. A tax holiday for firms engaged in food processing has also been extended. Producers of natural gas from coal-bed methane blocks would also be extended tax breaks.

As per the provisional figures on the NSE, foreign institutional investors (FIIs) sold shares worth Rs 58.76 crore on Tuesday, 28 July 2009 while domestic institutional investors bought shares worth Rs 448.22 crore.

Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on on Thursday, 23 July 2009.

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Tuesday, July 28, 2009

Adani Power IPO attracts strong investor response on day one

Allots 5.28 crore shares at Rs 95 per share to 6 anchor investors

Adani Power received spectacular response to its initial public offering which opened for subscription today, 28 July 2009. The IPO was subscribed 3.96 times on the day one. The IPO received bids for 98.59 crore shares compared to 24.87 crore shares on offer. The issue will close on 31 July 2009. Of the total issue size of 30.16 crore shares, 5.28 crore shares were allotted to anchor investors.

Adani Power has become the first Indian listing candidate to use new rules that allow companies to sign up anchor investors through a bookbuilding process, one day before the formal order taking starts. The company has allocated 5.28 crore shares at Rs 95 per equity share (at the mid-point of the price band) to six different anchor investors, some of which will take shares through several sub-funds in anchor portion of the Adani offering. The six buyers are: Ecofin, AIC Advantage Fund, CLSA, T Rowe Price International, Sundaram BNP Paribas Mutual Fund and Credit Suisse.

Of the 60% of the net issue allotted to qualified institutional buyers (QIBs), a maximum of 30% could be reserved under the anchor investor scheme. In this case, 30% of the QIB quota that the six anchor investors have bought forms 18% of the total issue size. As per Securities and Exchange Board of India (Sebi) norms, there is a 30-day lock-in for anchor investors.

Adani Power has fixed price band of Rs 90 to Rs 100 per equity share for its initial public offering (IPO). Adani Power is offering 30.16 crore equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue would constitute 13.84% of the post-issue paid-up capital of the company. The company has reserved 80 lakh shares for employees.

On 20 July 2009, Adani Power said it sold 36 million shares to a founder group firm and to private equity firm 3i. The shares were allotted on 25 June 2009 at Rs 81.42 a share to 3i Power Investments and at Rs 111.50 to Mauritius-based Capital Trade & Investments,

The proceeds of the IPO will be used to partly finance the construction and development of its coal-based power projects at Mundra in Gujarat and Tiroda in Maharashtra. Post listing, promoter Adani Enterprises will hold about 73.5% in the power firm.

Adani Power is implementing two thermal power plants in Mundra in Gujarat and Tiroda in Maharashtra. It has signed power purchase agreements with Haryana, Maharashtra and Gujarat governments for selling power from the 2,000 megawatt Mundra and 1,320 megawatt Tiroda projects. The company also proposes to set up a 1,320- megawatt plant in Rajasthan and another 1,980 megawatt project at Dahej in Gujarat.

Currently, Adani Power has no operational power plant except the modest 330-MW unit I of Mundra Power Project (MPP)'s phase I, synchronized in May 2009. All others are either under execution or on the drawing board. This Unit I of MPP is expected to go on stream this month and the revenue generation is expected thereafter

NHPC IPO opens on 7 August 2009

NHPC will raise nearly Rs 6,000 crore comprising of 5% divestment of government stake and infusion of 10% fresh equity

State-run power company NHPC plans to raise nearly Rs 6,000 crore through sale of shares in a price-band of Rs 30-36 in an IPO (initial public offer).

The issue will open on 7 August 2009 and close on 11 August 2009. The company would sell 168 crore shares comprising of 5% divestment of stake by the government and infusion of 10% fresh equity.

NHPC has a current capacity of 5175 megawatts (MW) and plans to have a capacity of 9600 MW by 2013.

NHPC's net profit rose 7.1% to Rs 1,075.22 crore on 19.1% rise in sales to Rs 2,671.85 crore in the year ended March 2009 over the year ended March 2008.

This will be the first IPO by a public sector enterprise after the United Progressive Alliance (UPA) assumed office for a second term in May this year. This is also the first stake sale by a state-run company in 17 months after REC went public in February 2008 to raise over Rs 1,600 crore.

Turnover jumps

ICICI Bank July 2009 futures at premium

Nifty July 2009 futures were at 4562, at a discount of 2.10 points as compared to the spot closing of 4564.10. Turnover in NSE's futures & options (F&O) segment spurted to Rs 76,854.19 crore from Rs 50,488.19 crore on Monday, 27 July 2009.

The near-month July 2009 F&O contract will expire on Thursday, 30 July 2009.

ICICI Bank July 2009 futures were at premium at 741 compared to the spot closing of 738.30.

Unitech July 2009 futures were near spot price at 96.05 compared to the spot closing of 95.70.

Tata Motors July 2009 futures were near spot price at 412.90 compared to the spot closing of 413.

In the cash market, the S&P CNX Nifty fell 8.20 points or 0.18% at 4564.10.

Asian markets advance further

Hang Seng, Shanghai consolidate gains while Sensex continued to buck the regional trend

Stock markets in Asian region advanced further on Tuesday, 28 July 2009, as investors tried to take some profit from recent rallies. The positive lead from Wall Street due to a better-than-expected surge in new home sales and better than expected earning reports consolidated belief of an economic revival.

On Wall Street, late-day buying sent stocks to a higher close Monday after earnings subdued the major indices most of the day. The Dow Jones Industrial Average rose 15.27 points, or 0.2%, to 9108.51, and the S&P 500 added 2.92 points, or 0.3%, to 982.18. The Nasdaq Composite edged up 1.93 points, or 0.1%, to 1967.89.

In the commodity market, crude oil fell in New York for the first time in four days as investors sold futures to lock in gains on concern prices have climbed too far amid expectations of a drop in demand. Oil prices rallied yesterday to a 3-week high, as equity markets climbed in the U.S. and Asia, signaling a potential economic recovery

Crude oil for September delivery declined as much as 48 cents, or 0.7%, to $67.90 a barrel in electronic trading on the New York Mercantile Exchange. It was at $68.19 a barrel at 11:31 a.m. Singapore time. Yesterday, it rose 33 cents, or 0.5%, to settle at $68.38, the highest since 1 July 2009.

Brent crude oil for September settlement traded at $71.07 a barrel, up 26 cents, on London’s ICE Futures Europe exchange at 2:36 p.m. Singapore time. Yesterday, it rose 49 cents, or 0.7%, to $70.81.

Gold gained in Asia, reversing an earlier decline, as the dollar traded near the lowest level in seven weeks against the euro and rising stocks and positive economic data spurred inflations concerns.

Gold for immediate delivery rose 0.2% to $955.82 an ounce at 2:35 p.m. in Singapore, after falling as much as 0.2%. The metal yesterday gained to $958.92, the highest since 11 June 2009. Crude oil for September delivery rose 0.3% to $68.56 a barrel.

In the currency market, US dollar remains generally soft while Aussie surges across the board, taking out 0.83 levels against dollar following upbeat comments from RBA Governor Stevens.

The Japanese yen softened to 95.16 against the US dollar.

The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar raced to the year's highs after surprisingly hawkish remarks on interest rates from RBA governor Glenn Stevens fuelled bets a rate hike here may be on the horizon.

At the local close, the dollar was trading at $US0.8307, up from yesterday’s $US0.8222. It was the highest since September 2008, breaking key resistance of $US0.8265 in the process.

Coming back in equities, most Asian markets ended higher after a roller-coaster session Tuesday, with hopes for earnings growth and broker upgrades helping some indexes reverse early declines.

In Japan, the benchmark indices snapped nine days of winning streak by finishing the session edge lower, amid concerns about overheating after the key Nikkei index topping the 10,000-point level. Tokyo market hovered most of time in red as investors turned to consolidate gains amid caution over the rally’s pace after the Nikkei gained over 11% in the past nine sessions through Monday. At the closing bell, the Nikkei 225 Stock Average index has dropped 1.4 points, or 0.03%, to 10,087.26, while the broader Topix index rose 1.87 points, 0.2%, to 930.

On the economic front, the number of bankruptcies of companies related to the auto industry such as parts suppliers and secondhand car dealers shot up 50.8% in the first half of 2009 from the year before to 273, a credit research institute said Tuesday

In Mainland China, stock market finished the session edge higher with benchmark indices touched fresh fourteen month high, powered by optimism about company earnings and rising liquidity in the region. Technology shares and retailers spurted on confidence a rebound in regional economies will boost earnings. Materials were steady on optimism a global economic recovery will boost demand for the metal. Steel stocks rally on Goldman Sachs upgrade.

At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, added 0.09% to 3,438.37, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, advanced 0.33% to 3,755.82.

On the economic front, China will cut gasoline and diesel prices by 220 yuan ($32) per metric ton from tomorrow to reflect a drop in global crude costs, state-run China Central Television said on its Web site today. The Chinese government controls prices under a mechanism introduced in December that takes into account crude-oil costs, taxes and a profit for refiners.

In Hong Kong, the benchmark index pared back early losses to finish the session higher, buoyed by strong gains from financials and properties as it remain darlings of the market on expectations of strong earnings performance. Materials stocks surged on firmer commodity prices. Meanwhile, shares of renewable energy companies gained on signs government spending will drive up demand for their products.

The Hang Seng Index surged 372.92 points, or 1.84%, to 20,624.54, while the Hang Seng China Enterprise Index spurted 234.96 points, or 1.93%, to 12,424.96.

On the economic front, the Hong Kong Monetary Authority said that the new residential lending in the territory soared to its highest on record in June 2009 amid low interest rates and new launches.

In Australia, the stock market posted its eleventh straight day of gains today, with most of heavyweight posting solid gains on the back of another positive lead from blue chip stocks on Wall Street and firmer commodity prices. An upbeat speech by Reserve Bank Governor Glenn Stevens also helped to lift the market.

At the closing bell, the benchmark S&P/ASX200 index surged 29.9 points, or 0.72%, to 4,169.5, meanwhile the broader All Ordinaries rose 26.2 points, or 0.63%, to 4,174.

On the economic front, the National Australian Bank (NAB) business survey for the June quarter showed business confidence index rose 20 index points to minus-four points in the quarter ended June 2009, from minus-24 points at the end of the first quarter. It also showed business conditions had improved during the period.

Meanwhile the Reserve Bank Governor has maintained his upbeat assessment on economic prospects, noting, “The downturn we are having may not turn out to be one of the more serious ones of the post-War era”. The Governor indicated that one of the biggest challenges for Australia was to ensure that cheap housing finance didn’t lead to higher house prices but rather more homes being built.

Reserve Bank of Australia Gov. Glenn Stevens also said Australia’s economy may rebound faster than the country’s central bank had predicted six months ago on improving consumer and business confidence.

In New Zealand, equities continued to rise although the momentum was subdued. The benchmark index climbed through the 3000 level for the first time in 9-1/2 months. The NZX50 rose 0.68% or 20.464 points to 3018.47. The NZX 15 increased 0.49% or 27.41 points to close at 5599.11.

On the economic front, New Zealand’s value of seasonally adjusted exports and imports both fell in the June 2009 quarter, down 5.4 percent and 3.4 percent, respectively, Statistics New Zealand said on Tuesday. These falls followed decreases of 5.0 percent for exports and 13.7 percent for imports in the March 2009 quarter. New Zealand's trade deficit grew faster than expected in June. Exports for the month of June were valued at NZ$3.2 billion, a decrease of NZ$395 million or 11.0 percent from the month before. Import values totaled NZ$3.6 billion, down NZ$192 million or 5.1% on month.

In South Korea, stocks closed higher as foreigners continued their buying spree on hopes of positive U.S. consumer data. The benchmark Korea Composite Stock Price Index (KOSPI) inched up 1.98 points to 1,526.03 in range-bound trading.

In Singapore, the stock market rose on tracking positive lead from Wall Street overnight and other Asian market, boosted by expectation for upbeat economic data and better than expected corporate results. Major blue chip stocks outperformed on hopes of strong results from leading companies and confidence about a US economic recovery. Banks extended gains on tacking US peers. Manufacturing and multi-industries stocks surged amid bullish sentiment emanating from stronger equity markets and positive economic data. The blue chip Straits Times Index surged 47.38 points, or 1.84%, to 2,624.04.

In Philippines, the stock market hit eleven months high level, as investors seemed to have shrugged off political noise and focused on the bright economic prospects going forward. The benchmark index PSEi mounted 1.32% or 36.14 points to 2,768.76,highest since 4 September 2008, while the All Shares index increased 1.34% or 23.19 points to 1,753.85.

Manufactures reduced output for the seventh consecutive month in May but at a slower rate, indicating a revival in demand from both domestic and external markets. Factory output — as measured by the volume of production index — plunged by 13% in May from a year ago, a softer annual decline than April’s -18.2%, the National Statistics Office (NSO) reported yesterday. The month-on-month result was better, with production growing by 8% as sales rebounded. Monthly output in April fell by -contracted by 3.2%.

The National Government yesterday raised more funds than planned on its most successful auction so far this year. The auction committee took advantage of the drastic decline in the yields of its short-term debts as driven by high demand and by the ample liquidity that has been running in the system for weeks now thus, should already be put to work. The market was obviously very liquid that even without the maturing government debts this week amounting to P5.4 billion, it still had sufficient and enough cash.

In India, key benchmark indices ended with modest losses after swinging wildly either ways during the course of the day. Volatility rose after the Reserve Bank of India raised inflation forecast while keeping key policy rates unchanged at their historically low level at a quarterly monetary policy review today. The BSE 30-share Sensex went down 43.10 points or 0.28% to 15,331.94. The S&P CNX Nifty went down 8.20 points or 0.18 % to 4,564.10.

On the economic front, the RBI has kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. The central bank raised its inflation forecast, saying an uncertain outlook for monsoon rains could "accentuate" inflation for already-high food prices. The repo rate, at which the central bank lends cash to banks, stays at 4.75%, and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.25%. Both these rates are at record low level. The statutory liquidity ratio (SLR) was also kept unchanged at 24%.

The RBI also kept the cash reserve ratio (CRR), the amount of funds banks have to keep on deposit with it, unchanged at 5%. The RBI said the deposit growth is seen at 19% adding that there is scope for the banks to cut interest rates. The GDP is expected to grow at 6% in FY 2010, with an upward bias, the central bank said

RBI said it would maintain an accommodative monetary stance until robust signs of recovery in the economy are visible. The central bank will be ready with a roadmap to reverse the expansionary stance quickly and effectively thereafter. The Reserve Bank of India will have to reverse the expansionary measures to anchor inflation expectations and subdue inflationary pressures while preserving the growth momentum the exit strategy will be modulated in accordance with the evolving macroeconomic developments, the RBI said.

The conduct of monetary policy will continue to condition and contain perception of inflation in the range of 4% to 4.5%. This will be in line with the medium-term objective of 3% inflation consistent with India's broader integration with the global economy, the RBI said.

The central bank said it would actively manage liquidity to avoid government borrowing crowding out private credit demand. RBI also said that government will need to return to a path of fiscal consolidation.

Elsewhere, Malaysia's Kula Lumpur Composite index went up 1.38% or 15.95 points to 1172.38 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2237.10.

In other regional markets, European shares struggled to gain for the 11th time in 12 sessions, as investors took on board a mixed bag of earnings from companies such as EADS, BBVA, Deutsche Bank and BP. At the regional level as the U.K. FTSE 100 index declined 0.23% or 10.37 points to 4,576, the German DAX index traded flat at 5,256 and the French CAC-40 index was also flat at 3,375.

Sensex ends lower; Tata Motors soars 10.47%

The Sensex ended on a lower note ahead of F&O expiry. Broader markets outperformed the Sensex. Realty stocks were in the limelight followed by auto and metal stocks, while FMCG and banking stocks dropped.

It opened with a gain of 53.46 points, at 15,428.50 on Tuesday on mixed global cues and soon fell into the negative terrain. RBI announcement did not cheered the market. It continued to trade in the negative, touching a low of 15,240.53 on the back of profit booking seen in select frontliners. After the RBI news, the market turned choppy and traded in a narrow range rest of the day. The index however moved up into the positive and touched a high 15,463.46. Finally, the index closed in the red.

As expected, the Reserve Bank of India (RBI) kept key policy rates unchanged. The repo rate under the liquidity adjustment facility (LAF) has been retained unchanged at 4.75%. The reverse repo rate under the LAF has been retained unchanged at 3.25%. The cash reserve ratio (CRR) of scheduled banks has been retained unchanged at 5% of net demand and time liabilities (NDTL). Statutory liquidity ratio (SLR) also left unchanged at 24%.

BSE Midcap and Smallcap index rose 1.13% and 1.68% respectively.

European stocks advanced after earnings beat analysts` estimates. The futures on the Standard & Poor`s 500 Index were little changed. UK`s benchmark index FTSE 100 declined 6.84 points, or 0.15%, to trade at 4,579.29. French benchmark index CAC 40 rose 0.18 points, or 0.01%, to trade at 3,372.54 and Germany`s benchmark index DAX gained 7.78 points, or 0.15% to trade at 5,259.26. (4.13 p.m., IST)

Futures on the S&P 500 dipped 2.10 points to 977.80 at 4.07 p.m. Dow Jones Industrial Average futures declined 13 points to 9,057, Nasdaq-100 Index futures fell 2.50 points to 1,597.

The Sensex ended the day with a loss of 43.10 points, or 0.28% at 15,331.94 after touching a high of 15,463.46 and a low of 15,240.53. The broad-based NSE Nifty fell 8.20 points, or 0.18% at 4,564.10 after hitting a high of 4,599.90 and a low of 4,529.15.

Major gainers in the 30-share index were Tata Motors (10.47%), Reliance Infrastructure (3.91%), DLF (3.40%), Reliance Communications (2.98%), Maruti Suzuki India (2.84%), and Tata Steel (2.54%).

On the other hand, Hindustan Unilever (7.28%), ICICI Bank (2.37%), Grasim Industries (1.77%), State Bank Of India(1.70%), Infosys Technologies (1.51%), and Reliance Industries (1.46%) were the major losers in the Sensex.

Overall market breadth was positive. Out of the total 2,745 stocks traded at BSE, 1,709 advanced, 945 declined while 91 remained unchanged.

Initial public offering (IPO) of Ahmedabad based Adani Power, promoted by Adani Enterprises, received overwhelming response today. The issue has managed to achieve full subscription with in hours of its opening.

As at 1:45 p.m, the issue was subscribed 3.87 times. A total of 962,302,445 bids were received out of which 1,306,305 bids were received at cut-off price.

The company has proposed a public issue of approximately 301.65 million equity shares of Rs 10 each for cash at a price to be decided through 100% book building process. The issue closes on July 31, 2009.

The price band of the issue has been fixed at Rs 90 to Rs 100 a share. It hopes to raise around Rs 30.16 billion at cap price. The net issue will constitute 13.47% of the post issue paid up capital of the company.

Post Session Commentary - July 28 2009

The domestic market extended its previous session’s movement to end slightly below the dotted line after exhibiting volatility throughout the session. Market ignored positive cues from Asian markets and remained choppy after the announcement of the RBI’s quarterly monetary policy review. The RBI in its quarterly monetary policy review on 28th July, has kept the key rates unchanged. On the other hand, RBI remained optimistic about the GDP growth as it expected GDP to grow at 6% in FY10 with an upward bias. Further the RBI has increased the inflation forecast to 5%. The Realty index remained in the lime light during the session on account of the government’s latest announcement of tax benefits as well as keeping the policy rates unchanged by RBI in its quarterly monetary policy review. However, market recovered during afternoon session on a little buying before slipping again. Meanwhile, benchmark indices also exhibited volatility ahead of F&O expiry on 30th July 2009. BSE Sensex ended below 15,350 level and NSE Nifty closed around 4,560 mark.

Market opened on upbeat note though pared all gains soon after start and turned negative on selling pressure emerged in key stocks. Meanwhile, the US stocks markets ended marginally higher on Monday, as investors sentiments were carried away by the biggest jump in new-home sales data in more than eight years. Further, Indian benchmark witnessed instability and continued to trade with negative bias till mid session ahead of F&O expiry on coming Thursday. Stocks fluctuated also after interest rates left unchanged in RBI’s quarterly monetary policy review. However, market managed to recover during afternoon trade on some bouts of buying but was unable to sustain the momentum and slipped again to close near unchanged level. From the sectoral front, FMCG, Bank, Consumer Durable and Oil & Gas stocks witnessed most of the selling from these baskets. However, Realty, Auto, Metal and Power stocks managed to gain favour from the market. BSE Mid Cap and BSE Small Cap indices remained in limelight as closed with gains of more than 1% each.

Among the Sensex pack 20 stocks ended in green territory and 10 in red. The market breadth indicating the overall health of the market remained positive as 1709 stocks closed in green while 945 stocks closed in red and 91 stocks remained unchanged in BSE.

The BSE Sensex closed slightly lower by 43.10 points at 15,331.94 and NSE Nifty ended marginally down by 8.20 points or at 4,564.10. BSE Mid Caps and Small Caps closed with gains 61.87 and 103.07 points at 5,531.37 and 6,245.81 respectively. The BSE Sensex touched intraday high of 15,463.46 and intraday low of 15,240.53.

The RBI on Tuesday kept the key policy rates unchanged but increased the inflation forecast to 5%. RBI kept the repo rate, at which the central bank lends cash to banks, at 4.75% and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.2%, according to the Q1 Monetary Policy. Moreover, the RBI also kept the cash reserve ratio unchanged at 5.00%t. The deposit growth is seen at 19% and the review has said that there is scope for the banks to slash interest rates. The SLR also remains unchanged at 2%. Besides, the GDP is expected to grow at 6% while the money supply growth is seen at 1%, according to the quarterly review of the economy.

On 28th July 2009, the government had announced some additional steps to bolster the economy, as lowered the interest rates on homes loans for affordable housing and extended a tax holiday given to industrial parks. Finance minister Pranab Mukherjee on Monday told the Lok Sabha that Home loans of up to Rs. 10 lakh for properties provided the value of home doesn’t exceed double that amount will now come with a 1% subsidy on the interest. Profits from housing projects approved by a local authority between April 1, 2007 and March 31, 2008 will be tax free if they are completed before March 31, 2012. Further, companies working out of industrial parks can now plan long-term with the tax breaks being extended to two more years, till March 31, 2011.

Gainers from the BSE Sensex pack are Tata Motors (10.47%), Reliance Infra (3.91%), DLF Ltd (3.40%), Rcom (2.98%), Maruti Suzuki (2.84%), Tata Steel (2.54%), Tata Power (2.30%), ACC Ltd (2.10%), NTPC Ltd (1.33%), Bharti Airtel (0.97%), Wipro Ltd (0.92%), M&M Ltd (0.81%), Sterlite Indutries (0.75%), Sun Pharma (0.74%) and ITC Ltd (0.73%).

Losers from the BSE Sensex pack are HUL (7.28%), ICICI Bank (0.27%), Grasim Industries (1.77%), SBI (1.70%), Infosys Tech (1.51%), Reliance (1.43%), HDFC Bank (0.66%), Herohonda Motors (0.56%) and L&T Ltd (0.34%).

On the global markets front the Asian markets that opened before the Indian market, ended mostly higher. Shanghai Composite, Hang Seng, Straits Times and Seoul Composite ended up by 3.16, 372.92, 47.38 and 1.98 points at 3,438.37, 20,624.54, 2,624.04 and 1,526.03 respectively. However, Nikkei 225 lost 1.40 points at 10,087.26.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 15.98 points at 5,267.53 and in London FTSE 100 is trading higher by 5.54 points at 4,591.67.

The BSE FMCG index closed lower by (1.33%) or 35.49 points at 2,638.09. HUL (7.28%), Godrej Cons (3.44%), Britania Indus (1.60%) and Tata Tea Ltd (0.73%) ended in red territory.

The BSE Bank index dropped by (1.22%) or 101.98 points to close at 8,227.35 after RBI revised its wholesales price inflation forecast to 5% by end March 2010 as against 4% projected earlier. Main losers are Bank of India (4.21%), ICICI Bank (2.37%), Oriental Bank (1.81%), SBI (1.70%) and Karnataka Bank (1.55%).

The BSE Consumer Durable index ended down by (0.82%) or 26.08 points at 3,164.98. Losers are Blue Star L (3.08%), Titan Ind (1.59%) and Rajesh Export (0.24%).

The BSE Realty index surged (4.64%) or 181.81 points at 4,090.12 on government’s latest announcement of tax benefits. Unitech Ltd (8.81%), Mahindra Life (8.10%), Sobha Dev (5.77%), Pheonix Mill (5.08%) and Housing Dev (4.72%) closed in positive territory.

The BSE Auto index ended higher by (1.92%) or 105.71 points at 5,622.99. Scrips that gained are Tata Motors (10.47%), Bosch Ltd (4.45%), MRF Ltd (4.33%), Maruti Suzuki (2.84%) and Bharat Forge (2.78%).

Tata Motors ended higher by 10.47% as posted better-than-expected quarterly earnings. The company reported a 58% growth in net profit to Rs. 514 crore in the first quarter ended June 30 as against Rs. 326 crore in the previous corresponding quarter.

Reliance Power advanced by 0.34%. The company has raised more than Rs 20,000 crore for funding its three projects of total capacity of 5,000 MW. This includes Rs 15,000 crore for the 4,000 MW Sasan thermal power project in Madhya Pradesh.

Escorts Ltd zoomed 2.59% after net profit increased in triple digit 138.7% to Rs 22.22 crore in Q3 June 2009 over Q3 June 2008.

BSE Bulk Deals to Watch - July 28 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
28/7/2009 532727 ADHUNIK MET CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED B 1000000 94.00
28/7/2009 532727 ADHUNIK MET ARION COMMERCIAL PVT LTD S 1011584 94.00
28/7/2009 519532 ASIAN TEA EX HARIRAM GARG S 66345 25.76
28/7/2009 500038 BALRAMPUR C* RELIANCE CAPITAL MUTUAL FUND B 2495836 107.00
28/7/2009 500038 BALRAMPUR C* JANUS WORLD FUND PLC - A/C GLOBAL TECHNOLOGY FUND S 3000000 107.36
28/7/2009 519600 CCL PRODUTS VIMLA JAJOO B 100000 160.00
28/7/2009 519600 CCL PRODUTS SEEPRA JAJOO S 100000 160.00
28/7/2009 507833 COMPUTER POI VSL SECURITIES PVT LTD B 65624 5.74
28/7/2009 512199 CORE PROJECT SHARAD KANTILAL SHAH B 830531 121.25
28/7/2009 512199 CORE PROJECT CITIGROUP GLOBAL MARKETS MAURITIUS PRIVATE LIMITED S 985276 121.27
28/7/2009 532707 DYNEMIC PRO REHWA CORPORATION LIMITED B 110004 16.18
28/7/2009 532707 DYNEMIC PRO RUCHI GLOBEL LIMITED B 130002 16.25
28/7/2009 532707 DYNEMIC PRO VIRENDRA AGRAWAL S 67733 16.29
28/7/2009 532707 DYNEMIC PRO RAJIV MOHAN GUPTA S 75321 16.08
28/7/2009 532707 DYNEMIC PRO ALOK DIRODIA S 65000 16.25
28/7/2009 532022 FILAT FASH KALPANA SONU PADYAL B 50000 99.82
28/7/2009 532022 FILAT FASH BIJAL BHATT S 40000 99.76
28/7/2009 530945 GANGOTRI I&S M/S ADVANCE FINSTOCK S 45536 20.04
28/7/2009 530655 GOOD LUCK ST RAGHVIR GARG S 125000 36.00
28/7/2009 513337 GUJ.TOOLROOM SANGHVI FINCAP LTD. B 35200 9.94
28/7/2009 513337 GUJ.TOOLROOM DEVANG JAYANT KUMAR GADOYA S 50000 9.94
28/7/2009 513337 GUJ.TOOLROOM DEVANG JAYANTKUMAR GADOYA S 30000 9.94
28/7/2009 524669 HESTER BISC VIMLA JAJOO B 35000 92.75
28/7/2009 524669 HESTER BISC SURESHKANMAL JAJOO B 36837 92.75
28/7/2009 524669 HESTER BISC SEEPRA JAJOO S 71836 92.75
28/7/2009 517370 INCAP LIMITE CHALLAGULLA NEELIMA B 150000 12.38
28/7/2009 517370 INCAP LIMITE NUZIVEEDU SEEDS LIMITED S 150000 12.38
28/7/2009 509684 INDIA FOILS SAINATH HERBAL CARE MARKETING P.LTD S 156790 15.93
28/7/2009 523810 KALE FILMS KIRAN SUTTAMCHAND B 291343 1.24
28/7/2009 523810 KALE FILMS RAKESH HASMUKHLAL SHAH S 520000 1.24
28/7/2009 522259 KALIN RAIL N BP FINTRADE PRIVATE LIMITED B 124469 147.19
28/7/2009 522259 KALIN RAIL N BP FINTRADE PRIVATE LIMITED S 120077 147.32
28/7/2009 530255 KAY POW PAP JOLLY GUPTA B 130780 6.26
28/7/2009 530255 KAY POW PAP NARENDER GUPTA B 120302 6.66
28/7/2009 530255 KAY POW PAP SUNDER DASS AGARWAL B 67215 6.64
28/7/2009 530255 KAY POW PAP KAILASH CHAND GUPTA B 121277 6.82
28/7/2009 530255 KAY POW PAP JOLLY GUPTA S 65780 6.95
28/7/2009 530255 KAY POW PAP NARENDER GUPTA S 72039 6.71
28/7/2009 530255 KAY POW PAP KAILASH CHAND GUPTA S 108124 6.28
28/7/2009 530255 KAY POW PAP B.S.KHANDELWAL S 201706 6.09
28/7/2009 530255 KAY POW PAP GIRRAJ PRASAD GUPTA S 111046 6.37
28/7/2009 506528 KELTECH ENRG CHANCHAL DEVI LODHA B 7683 162.29
28/7/2009 531261 KUSHAGRA SO KKSS BUILDERS PRIVATE LIMITED S 71683 5.69
28/7/2009 513536 LESHA ENER SURYAJA INFRASTRUCTURE PVT LTD B 1555000 41.00
28/7/2009 513536 LESHA ENER SURESHINHJI P DESAI S 1555000 41.00
28/7/2009 526179 LUDLOW JUTE MPR BEARING & INVESTMENT PVT.LTD. S 90000 17.20
28/7/2009 513685 MULTI ARC IN VIMLA JAJOO B 100000 8.85
28/7/2009 513685 MULTI ARC IN SURESHKANMAL JAJOO B 100000 8.85
28/7/2009 513685 MULTI ARC IN SEEPRA JAJOO S 200000 8.85
28/7/2009 512449 PACE TEXTILES SUKUSAMA TRADING & INVESTMENTS PVT LTD B 213738 42.49
28/7/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC JMP SECURITIES PVT LTD B 197008 1076.75
28/7/2009 523445 RELIANCE INDUSTRIAL INFRASTRUC JMP SECURITIES PVT LTD S 189673 1076.76
28/7/2009 531646 RFL INTERNAT JATIN J HARIA(HUF) B 30000 1.15
28/7/2009 531646 RFL INTERNAT JATINJ HARIA B 40000 1.15
28/7/2009 531646 RFL INTERNAT PRAGNA JATIN HARIA B 30000 1.15
28/7/2009 531646 RFL INTERNAT KHUSHALCHAND SHAMJI HARIA B 50000 1.13
28/7/2009 531646 RFL INTERNAT LAXMIBEN KHUSHALCHAND HARIA B 50000 1.15
28/7/2009 531646 RFL INTERNAT HITENDRA KHUSALCHAND HARIA B 50000 1.15
28/7/2009 531646 RFL INTERNAT HITENDRA HARIA HUF B 50000 1.15
28/7/2009 531646 RFL INTERNAT UNIGLORY PROJECTS PVT. LTD. S 127254 1.15
28/7/2009 531646 RFL INTERNAT AGARSON TRADING PVT. LTD. S 149830 1.15
28/7/2009 512413 SPECTACLE BHAVESH PRAKASH PABARI S 350000 41.43
28/7/2009 590037 STEEL EXCH KIRAN SUTTAMCHAND B 175000 35.00
28/7/2009 530611 STURDY INDS S K INVESTMENTS B 50000 33.60
28/7/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. B 100000 33.34
28/7/2009 526133 SUPERTEX IND HARISH RATILAL SHAH B 67366 58.77
28/7/2009 526133 SUPERTEX IND HARISH RATILAL SHAH S 67366 58.86
28/7/2009 503657 VEER ENERGY ATULBHAI GORDHANBHAI VAJA B 14101 284.34
28/7/2009 503657 VEER ENERGY VAJSHAH SHARES & CONSULTANCY P B 15000 284.64
28/7/2009 503657 VEER ENERGY VILPABEN PRANAVBHAI VORA S 17151 285.28
28/7/2009 531249 WELL PACK PA SANTOSH VISHRAM GHADSHI B 25000 160.50
28/7/2009 531249 WELL PACK PA PANDYA HARDIK M B 22709 161.19
28/7/2009 531249 WELL PACK PA HEMANT MADHUSUDAN SHETH B 30000 160.10
28/7/2009 531249 WELL PACK PA PANDYA HARDIK M S 22757 160.31

NSE Bulk Deals to Watch -July 28 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
28-JUL-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,BUY,204134,966.56,-
28-JUL-2009,BALRAMCHIN,Balrampur Chini Mills,RELIANCE MUTUAL FUND,BUY,2500000,107.25,-
28-JUL-2009,CCL,CCL Products (I) Ltd,SURESH KANMAL JAJOO,BUY,95394,158.50,-
28-JUL-2009,EMCO,Emco Limited,SUWALAL CHHAGANMAL BAFNA,BUY,110913,89.64,-
28-JUL-2009,GITANJALI,Gitanjali Gems Limited,J P M S L A/c Copthall Mauritius Investment Ltd,BUY,515501,106.00,-
28-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11863653,23.11,-
28-JUL-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,BUY,91085,146.54,-
28-JUL-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,BUY,2286249,35.78,-
28-JUL-2009,RIIL,Reliance Indl Infra Ltd,BP FINTRADE PRIVATE LIMITED,BUY,82775,1067.90,-
28-JUL-2009,RIIL,Reliance Indl Infra Ltd,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,BUY,79420,1074.31,-
28-JUL-2009,ABAN,Aban Offshore Ltd.,INDIA ADVANTAGE SECURITIES LTD.,SELL,204134,967.11,-
28-JUL-2009,BALRAMCHIN,Balrampur Chini Mills,JANUS GLOBAL TECHNOLOGIES FUND,SELL,4500000,107.91,-
28-JUL-2009,BANKRAJAS,Bank Of Rajasthan Ltd,Copthall Mauritius Investment Ltd,SELL,1000000,61.64,-
28-JUL-2009,CCL,CCL Products (I) Ltd,KABRA SEEPRA SUMEET,SELL,95394,158.50,-
28-JUL-2009,EMCO,Emco Limited,SUWALAL CHHAGANMAL BAFNA,SELL,300000,89.89,-
28-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11881090,23.12,-
28-JUL-2009,KALINDEE,Kalindee Rail Nirman (Eng,BP FINTRADE PRIVATE LIMITED,SELL,87097,146.53,-
28-JUL-2009,KIL,Kamdhenu Ispat Limited,KABRA SEEPRA SUMEET,SELL,98290,17.37,-
28-JUL-2009,NAGARFERT,Nagarjuna Fert & Chem,CLEAN FINANCE & INVESTMENT LTD.,SELL,2286249,35.79,-
28-JUL-2009,RIIL,Reliance Indl Infra Ltd,BP FINTRADE PRIVATE LIMITED,SELL,72290,1062.29,-
28-JUL-2009,RIIL,Reliance Indl Infra Ltd,VIJIT ASSET MANAGEMENT PRIVATE LIMITED,SELL,70448,1070.14,-
28-JUL-2009,RSYSTEMS,R Systems International L,BHAVOOK TRIPATHI,SELL,69944,73.64,-
28-JUL-2009,SIYSIL,Siyaram Silk Mills Ltd,KABRA SEEPRA SUMEET,SELL,60000,121.00,-

Realty, auto shares cushion Sensex's fall as turnover swells

Key benchmark indices ended with modest losses after swinging wildly either ways during the course of the day. Volatility rose after the Reserve Bank of India raised inflation and GDP growth forecast while keeping key policy rates unchanged at their historical low level at a quarterly monetary policy review today, 28 July 2009. The BSE 30-share Sensex lost 43.10 points or 0.28%, off 131.52 points from the day's high but up 91.41 points from the day's low. European markets were slightly lower and most Asian stocks rose.

Poor Q1 results continued to weigh on the index heavyweight Reliance Industries for the second day in a row. Banking shares slipped. However power stocks advanced on strong response to Adani Power's initial public offer (IPO).

In stock specific activity, Tata Motors surged over 10% on better-than-expected Q1 results it announced during trading hours on Monday, 27 July 2009. Maruti Suzuki India struck a record high of Rs 1416.70. However Hindustan Unilever retraced sharply from 52-week high of Rs 306 after reporting fall in net profit in Q1 June 2009.

The Securities and Exchange Board of India (Sebi) on Monday, 27 July 2009 introduced some new norms for the comprehensive risk management system for the equity markets in the cash segment, in a move which would now reduce the margin burden on brokers. Sebi said that in case of a buy transaction in cash market, value at risk (VaR) margins, extreme loss margins and mark to market losses together will not exceed the purchase value of the transaction.

The market was volatile. After a firm start triggered by government sops to stimulate the economy announced after trading hours on Monday, 27 July 2009, the market soon slipped into the red. It cut losses after the RBI's policy announcement at about 11:15 IST. However the intraday recovery proved short lived. The market weakened again. The market bounced back one again in afternoon trade as the RBI kept policy rates at record low levels. The Sensex hit its highest level in more than a month. However, the market failed to sustain higher level and once again slipped into the red later.

The RBI has kept the key rates unchanged and increased the inflation forecast to 5% by end March 2010 from earlier 4%. The central bank raised its inflation forecast, saying an uncertain outlook for monsoon rains could "accentuate" inflation for already-high food prices. The repo rate, at which the central bank lends cash to banks, stays at 4.75%, and the reverse repo rate, at which it absorbs surplus cash from the banking system, stays at 3.25%. Both these rates are at record low level. The statutory liquidity ratio (SLR) was also kept unchanged at 24%.

The RBI also kept the cash reserve ratio (CRR), the amount of funds banks have to keep on deposit with it, unchanged at 5%. The RBI said the deposit growth is seen at 19% adding that there is scope for the banks to cut interest rates. The GDP is expected to grow at 6% in FY 2010, with an upward bias, the central bank said. At the time of the annual monetary policy announcement in April 2009, the central bank had forecast a 6% growth. So, the words 'upward bias' were the addition to that forecast.

RBI said it will maintain an accommodative monetary stance until robust signs of recovery in the economy are visible. The central bank will be ready with a roadmap to reverse the expansionary stance quickly and effectively thereafter. The Reserve Bank of India will have to reverse the expansionary measures to anchor inflation expectations and subdue inflationary pressures while preserving the growth momentum The exit strategy will be modulated in accordance with the evolving macroeconomic developments, the RBI said.

The conduct of monetary policy will continue to condition and contain perception of inflation in the range of 4% to 4.5%. This will be in line with the medium-term objective of 3% inflation consistent with India's broader integration with the global economy, the RBI said.

The central bank said it will actively manage liquidity to avoid government borrowing crowding out private credit demand. RBI also said that government will need to return to a path of fiscal consolidation

Finance Minister Pranab Mukherjee after trading hours on Monday, 28 July 2009 announced tax breaks for industrial park schemes and developers of real estate and road projects to stimulate the economy and lift growth to 8-9 percent by the end of 2010. He announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh.

In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.

The government has also extended tax holiday to developers of industrial parks by two years until March 2011. A tax holiday for firms engaged in food processing has also been extended. Producers of natural gas from coal-bed methane blocks would also be extended tax breaks.

Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on Thursday, 23 July 2009.

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Meanwhile, investor focus may shift from secondary market to the primary market as Adani Power's initial public offer of 30.16 crore shares in the price band Rs 90-100 opened for subscription from today, 28 July 2009. The issue received strong investors response and was subscribed 3.96 times by 16:00 IST. Adani said institutions including T. Rowe Price International Inc. demanded twice as many shares as offered in the so-called anchor investor portion of its initial sale.

The company will raise up to Rs 3,016 crore at the upper end of the price band, making it the second-biggest issue after Reliance Power.

Close on the heels of Adani Power, state-run NHPC is ready to hit the primary market in August to raise Rs 6000 crore. Besides, Oil India and Pipavav Shipyard collectively plan to raise over Rs 2000 crore. Earlier, on 17 July 2009 the government said it is considering a part sale of its shareholding in the telecom monolith Bharat Sanchar Nigam (BSNL) to the public. Currently, the government fully owns BSNL.

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 891 companies rose 21.9% to Rs 48207 crore on 1.4% fall in sales to Rs 393192 crore in Q1 June 2009 over Q1 June 2008.

But equities may remain volatile ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009. As per reports, rollover of Nifty positions from July 2009 contacts to August 2009 contracts stood at 30%, as of Monday, 27 July 2009.

European markets reversed early gains and were trading marginally lower today, 28 July 2009. Key benchmark indices in UK, Germany and France were down by between 0.04% and 0.45%

Most Asian markets were in green today, 28 July 2009. Key benchmark indices in Hong Kong, Taiwan, Singapore, South Korea, China rose by between 0.13% and 1.62%. Japan's Nikkei 225 index was down marginally by 0.01%

US markets ended modestly higher on Monday, 27 July 2009 led by gains in banking shares after a bout of profit taking in early trade. The Dow Jones industrial average rose 15.27 points, or 0.17%, to 9,108.51. The S&P 500 index rose 2.92 points, or 030%, to 982.18, while the Nasdaq Composite Index rose 1.93 points, or 0.10%, to 1,967.89.

On the economic front, new home sales in June 2009 rose the most in more than eight years. Sales spiked 11% to hit a better-than-expected annualised rate of 3.84 lakh units.

Trading in US index futures showed the Dow could slide 29 points at the opening bell on Tuesday, 28 July 2009.

The BSE 30-share Sensex was down 43.10 points or 0.28% to 15,331.94. The Sensex opened 47.53 points higher at 15,422.57. The Sensex rose 88.42 points at the day's high of 15,463.46 in mid-afternoon trade, its highest level since 12 June 2009. The Sensex lost 134.51 points at the day's low of 15,240.53 in mid-morning trade.

The S&P CNX Nifty was down 8.20 points or 0.18% to 4,564.10. Nifty July 2009 futures were at 4562, at a discount of 2.10 points as compared to the spot closing. Turnover in NSE's futures & options (F&O) segment spurted to Rs 76,854.19 crore from Rs 50,488.19 crore on Monday, 27 July 2009.

The BSE clocked a turnover of Rs 7028 crore, compared to Rs 6063 crore on Monday, 27 July 2009.

The Sensex is up 5684.63 points or 58.92% in calendar year 2009 as on 28 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7171.54 points or 87.88% as on 28 July 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1718 shares advanced as compared with 957 that declined. 94 shares remained unchanged.

The BSE Mid-Cap index was up 1.13% to 5,531.37 and the BSE Small-Cap index rose 1.68% to 6,245.81. Both these indices outperformed the Sensex

The BSE Realty index (up 4.64%), BSE Capital Goods index (down 0.03%), the BSE Power index (up 0.83%), the BSE TECk index (up 0.03%), the BSE Metal index (up 1.25%), BSE PSU index (up 0.52%), BSE Auto index (up 1.92%), outperformed the Sensex.

The BSE Healthcare index (down 0.60%), BSE FMCG index (up down 1.33%), BSE Consumer Durables index (down 0.82%), the BSE IT index (down 0.74%), the BSE Oil & Gas index (down 0.81%), the BSE Bankex (down 1.22%), underperformed the Sensex.

Among the 30-member Sensex pack, 20 advanced while the rest declined

Most auto stocks gained after the Reserve Bank of India (RBI) kept key policy rates unchanged at their historical low at its quarterly monetary policy review today, 28 July 2009.

India's largest truck market by sales Tata Motors galloped 10.01% to Rs 412.50 after a 3.76% jump in its ADR on Monday, 27 July 2009. It was the top gainer from the Sensex pack. The company reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008. Analysts had expected a steep fall in net profit due to lower sales volume. The result was announced at the fag end of the trading sessions today, 27 July 2009.

Tata Motors attributed the strong results to continued focus on cost efficiencies, decline in raw material prices and improvement in sales realization

India's largest tractor maker by sales Mahindra & Mahindra advanced 1.23% to Rs 826.15, rebounding from day's low of Rs 812.50. The company will unveil its Q1 June 2009 earnings on 30 July 2009.

India's top small car maker by sales Maruti Suzuki India gained 2.70% to Rs 1407 after striking a record high of Rs 1416.70 in intra-day trade today, 28 July 2009. The stock rebounded sharply from day's low of Rs 1346.60. The company had announced strong Q1 June 2009 results during market hours on 23 July 2009.

India's largest bike manufacturer by sales Hero Honda Motors lost 0.97% ahead of its Q1 June 2009 results on 29 July 2009.

Escorts surged 2.15% after net profit jumped 138.7% to Rs 22.22 crore in on 10.4% rise in net sales to Rs 582 crore in Q3 June 2009 over Q3 June 2008. The company announced the results after market hours on Monday, 27 July 2009.

India's largest power generation company by sales NTPC rose 1.12% after net profit jumped 27.1% to Rs 2193.62 crore on a 25.8% increase in sales to Rs 12002.68 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours yesterday, 27 July 2009.

Other power generation firms gained as strong response to the Adani Power initial public offer which opened for subscription from today, 28 July 2009 lifted sentiment for the sector. Reliance Infrastructure (up 3.56%), Tata Power (up 2.45%), Reliance Power (up 0.16%), CESC (up 5.69%), advanced.

Realty stocks gained after the Reserve Bank of India (RBI) kept key policy rates unchanged at their historical low at its quarterly monetary policy review today, 28 July 2009.

DLF (up 3.49%), Unitech (up 8.75%), Housing Development & Infrastructure (up 4.50%), Parsvnath Developers (up 1.68%), and Indiabulls Real Estate (up 1.47%), advanced.

In another measure that that could provide a boost to the realty sector the government has allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between 1 April 2007 and 31 March 2008. The benefit is subject to a condition that the projects are completed on or before 31 March 2012.

Housing finance companies rose after the government announced a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh.

HDFC (up 0.61%), LIC Housing Finance (up 3.03%), Deewan Housing Finance (up 12.28%), and GIC Housing (up 1.06%), gained

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.58% to Rs 1908, extending yesterday's over 3.78% fall. The fall in the stock materialised after the company posted disappointing Q1 June 2009 results after trading hours on Friday, 24 July 2009. Nevertheless, the stock recovered from day's low of Rs 1891

RIL's net profit fell 11.5% to Rs 3636 crore on a 22.9% decline in sales to Rs 32055 crore in Q1 June 2009 over Q1 June 2008. Reliance Industries (RIL) saw its net profit dip for the third straight quarter, as margins from its refining business halved and the global recession reduced fuel demand. RIL's gross refining margins (GRMs) - the difference between cost of crude oil and the price of refined petroleum products - came down 52.22% to $7.5 per barrel in Q1 June 2009 compared with $15.7 per barrel in Q1 June 2008.

Reliance Natural Resources (RNRL) chairman Anil Ambani on Tuesday accused the Petroleum Ministry of being biased in the legal dispute with brother Mukesh Ambani-led Reliance Industries (RIL) over the price of natural gas from the Krishna-Godavari basin. Addressing shareholders of the company, he also said the government would not lose a single rupee even if the gas from RIL's fields off the Andhra Pradesh coast were to be supplied to his company at the originally contracted price of $2.34 per unit.

Addressing shareholders at the RNRL's Annual General Meeting, Anil Ambani asked the Oil Ministry to cancel the Production Sharing Contract with RIL if it was really aggrieved and not challenge third party agreements. Giving details of the global gas scenario, he said the price of the industrial fuel had crashed 80% and the gas price of $4.2 per mmBtu (fixed by the Government) was "exorbitant" and against public interest.

Last month, the Bombay High Court had asked Reliance Industries to supply 28 million units of gas to Reliance Natural Resources for 17 years at $2.34 per unit, after assigning 12 million units to the state-run power utility NTPC. Reliance Industries challenged the verdict in the Supreme Court, which heard the case on 20 July 2009 and fixed 1 September 2009 as the next date of hearing. It also asked all the parties to file their replies on the government position on the matter by then.

BPCL rose 2.75% to Rs 462.80 after the company posted net profit of Rs 614.12 crore on 33.34% fall in total income to Rs 26,195.60 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours today, 28 July 2009.

India's largest FMCG company by sales Hindustan Unilever slumped 6.72% to Rs 278.55, retracing sharply after striking a 52-week high of Rs 306 in intra-day trade on the BSE. The stock tanked after net profit declined 2.68% to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared in late trade today, 28 July 2009. It was the top loser from the Sensex pack

Bank stocks were mixed after the Reserve Bank of India's (RBI) in its quarterly monetary policy review today, 28 July 2009, raised inflation forecast. India's largest private sector bank by net profit ICICI Bank was down 2.49%. The bank's net profit rose 20.63% to Rs 878.22 crore on a 9.61% decline in total income to Rs 7133.44 crore in Q1 June 2009 over Q1 June 2008. The bank reported its earnings on Saturday, 25 July 2009.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.90%. The bank's chairman today, 28 July 2009 said that credit growth is expected to pick up in second half of the year. The state-run bank reduced interest rates on deposits by 25-50 basis points (a basis point equals one-hundredth of a percentage point) with effect from Monday, 27 July 2009.

However, India's second largest private sector bank in terms of operating income HDFC Bank rose 0.52% to Rs 1442. The stock slipped to day's low of Rs 1400 mirroring a 1.9% fall in its American depository receipt (ADR) on Monday, 27 July 2009.

Karnataka Bank fell 1.55% after the bank's gross non-performing assets rose 7.30% to Rs 447.12 crore in Q1 June 2009 over Q1 June 2008. Karnataka Bank's net profit surged 93.5% to Rs 40.06 crore on 20.1% rise in total income to Rs 609.67 crore in Q1 June 2009 over Q1 June 2008. The bank announced the results after market hours on Monday, 27 July 2009.

Kotak Mahindra Bank declined 1.63% after the bank's consolidated gross non-performing assets surged 65.83% to Rs 1084.48 crore in Q1 June 2009 over Q1 June 2008. The bank's consolidated net profit surged 71.70% to Rs 257.29 crore on 57.69% rise in total income to Rs 2,345.26 crore in Q1 June 2009 over Q1 June 2008.

Karur Vysya Bank jumped 6.19% after net profit galloped 131.02% to Rs 70.53 crore on 29.49% rise in total income to Rs 487.37 crore in Q1 June 2009 over Q1 June 2008. The bank declared its results during trading hours today, 28 July 2009.

Diversified major Grasim Industries slipped 2.18% despite 61% rise in net profit to Rs 1080 crore on 15% rise in net revenue to Rs 5123 crore in Q1 June 2009 over Q1 June 2008. The results were announced during trading hours today.

IT stocks were mixed, recovering from early lows. India's second largest IT firm by sales Infosys lost 1.50% to Rs 1995, off day's low of Rs 1968.25. India's largest IT exporter by sales TCS rose 0.06% to Rs 480.50, after slipping to day's low of Rs 472. On 17 July 2009, TCS announced Q1 results that beat market expectations. India's third largest IT exporter by sales Wipro gained 0.82% to Rs 463.50, after touching day's low of Rs 452. On 22 July 2009, Wipro announced better-than-expected Q1 results.

Telecom pivotals advanced ahead of meeting of a Group of Ministers (GoM) to decide on the base price for 3G spectrum on 31 July 2009.

India's largest cellular services provider by sales Bharti Airtel rose 0.31%. As per reports, Bharti Airtel and South Africa's MTN may extend by about four weeks their 31 July 2009 deadline for talks to agree on a merger.

Bharti and MTN have been in exclusive talks that could lead to a merger creating the world's No. 3 wireless group with more than 200 million subscribers and combined revenue of $20 billion.

India's second largest cellular services provider by sales Reliance Communications rose 2.73%.

The GoM is set up to look into matters relating to pricing of spectrum and number of operators to be allowed in each telecom circle. The finance ministry had proposed a base price of Rs 4,040 crore for 3G spectrum, whereas the Department of Telecom (DoT) suggested a price of Rs 3,540 crore. While presenting the Union Budget, the finance minister, Mr Pranab Mukherjee, said Rs 35,000 crore was expected to be raised from the auction.

Metal stocks were mixed with some stocks correcting after recent strong gains. LMEX, a gauge of six metals traded on the London Metal Exchange, advanced 1.25% on Monday, 27 July 2009.

Tata Steel (up 2.22%), Sterlite Industries India (up 0.67%), Steel Authority of India (up 1.42%), and Hindalco (up 0.43%), gained. National Aluminium Company (down 0.87%), Jindal Steel & Power (down 2.66%), Hindustan Zinc (down 0.36%), declined.

Unitech was the top traded counter on BSE with turnover of Rs 380.29 crore followed by DLF (Rs 239.78 crore), Reliance Industries (Rs 231.56 crore), Tata Steel (Rs 217.23 crore), and HDIL (Rs 199.04 crore).

Unitech was also the volume topper on BSE clocking volume of 4.06 crore shares followed by Ispat Industries (1.68 crore shares), Reliance Natural Resources (1.47 crore shares), Suzlon Energy (1.23 crore shares) and IFCI (1.09 crore shares)

Tyre shares extended gains for the second running day on fresh buying following robust earnings reported by MRF, Apollo Tyres and JK Tyres.

MRF (up 3.93%), Goodyear India (up 1.89%), Balkrishna Industries (up 3.11%), and TVS Shrichakra (up 5%), gained.

On 27 July 2009, MRF reported a 294% jump in net profit to Rs 125.70 crore on 12.4% rise in net sales to Rs 1433.55 crore in Q3 June 2009 over Q3 June 2008. JK Tyre reported a two fold spurt in net profit, while Apollo Tyres posted a 95% jump in net profit in Q1 June 2009 over Q1 June 2008.

Rashtriya Chemicals & Fertilizers surged 7.01% after net profit soared 65.5% to Rs 31.55 crore on 46% fall in net sales to Rs 843 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after trading hours on Monday, 27 July 2009.

Cadila Healthcare soared 10.59% to Rs 444.40. The company, during market hours on Monday, 27 July 2009, reported a 120.3% spurt in net profit to Rs 122.56 crore on 8.4% rise in sales to Rs 465.27 crore in Q1 June 2009 over Q1 June 2008. The stock had risen 3.26% to Rs 401.85 on Monday boosted by the Q1 numbers.

Shree Renuka Sugars climbed 8.83% to Rs 167.05. The company, during market hours on 21 July 2009, reported a 165.7% surge in net profit to Rs 61.10 crore on a 17.3% increase in sales to Rs 715.50 crore in Q3 June 2009 over Q3 June 2008.

Punj Lloyd lost 2.10% despite 13.69% rise in consolidated net profit to Rs 127.16 crore on 12.07% rise in consolidated total income rose to Rs 2,979.04 crore Q1 June 2009 over Q1 June 2008. The company declared its results after market hours on Monday, 27 July 2009.

Real estate stocks may move up

Nine real estate developers rose 1.62% to 4.19% after Finance Minister Pranab Mukherjee announced sops for the housing sector on Monday, 27 July 2009.

At 9:58 IST, the BSE Realty sector was up 2.16% at 3,993.16. It outperformed the Sensex, which was up 0.28% at 15,418.24.

Mahindra Lifespace Developers (up 4.19%), Ansal Properties & Infrastructure (up 3.83%), Parsvnath Developers (up 2.89%), Omaxe (up 2.86%), Unitech (up 2.33%), DLF (up 2.26%), Housing Development and Infrastructure (up 2.02%), Phoenix Mills (up 1.97%), and Sobha Developers (up 1.62%), rose.

The BSE Realty had outperformed the market over the past one month till 27 July 2009, soaring 16.12% as compared to the Sensex's 4.13% rise. It had also outperformed the market in the past one quarter, spurting 77.50% as against the Sensex rise of 35.20%.

To provide stimulus to the housing sector, tax holiday has been extended to real estate developers on profits derived from housing projects approved between 1 April 2007 and 31 March 2008, if such projects are completed on or before 31 March 2012.

Mr Mukherjee also proposed an interest subsidy of 1% for home loans of upto Rs 10 lakh availed for houses worth upto Rs 20 lakh. The minister earmarked Rs 1,000 crore for this purpose and said it will also benefit the lower and middle income housing sector. The interest subsidy will be routed through scheduled commercial banks and housing finance companies registered with the National Housing Bank.

India Strategy - July 28 2009

Morning Notes - July 28 2009

Ess Dee Aluminium

Bharat Electronics, Blue Star, Areva T&D, NTPC, Geometric, HT Media, Shree Cements, Andhra Bank, SREI Infrastructure Finance

SGX Nifty in the positive

4,588.0 +11.5

Grey Market Premiums - NHPC, Adani Power, Raj Oil Mills

Excel Infoways Ltd. 85 5 to 7

Raj Oil Mills Ltd. 100 to 120 Discount

Adani Power 90 to 100 8 to 10

NHPC 28 to 33 (Approximate) 12 to 13

Pre Session Commentary - July 28 2009

Today domestic markets are likely to open negative due to cautiousness ahead of RBI’s monetary policy to be announced today. US markets closed flat yesterday and therefore majority of Asian markets have also opened in a subdued note. Any surprise or disappointment from RBI’s quarterly policy review can hit hard on the market sentiments. One may witness a lot of cautiousness prevailing across the broader level before the monetary policy review and rate sensitive sectors could be the cheer leaders of the day.

On Monday, domestic markets closed flat after a range bound session. Investors took calculative steps ahead of F&O expiry on 30th July 2009 and RBI’s quarterly policy review tomorrow. Earlier during initial trading, market exhibited gains on positive global cues as Asian market ended in with good gains and European markets were in green. However rally was short lived and selling pressure dragged the domestic bourses lower on the first trading day of the week. Meanwhile, sharp drop in revenues of Reliance Industries due to lower refinery margins had contributed to the selling pressure to some extent. From the sectoral front FMCG, Realty, Power and Metal led the markets with gains of 3.64%, 3.11%, 2.29% and 1.93% respectively. There was phenomenal bottom fishing as BSE Mid Cap and Small Cap index gained by 1.63% and 1.53% respectively. Domestic markets are likely to trade range bound today.

The BSE Sensex closed flat at 15,375.04 and NSE Nifty also ended flat at 4,572.30. BSE Mid Caps and Small Caps closed up by 87.69 points and 92.54 points at 5,469.50 and 6,142.74 respectively. The BSE Sensex touched intraday high of 15,463.09 and intraday low of 15,228.46.

On Monday, the US stock markets closed flat. The banking stocks were in the limelight and provided a lot of support and leadership in the market. Many stocks opened with losses during the early trading hours; however news of new home sales data helped stocks record respectable gains. The new home sales during June inclined by 11 per cent to record a better-than-expected annualized rate of 384,000. With new home sales coming in at their highest rate since November, the supply of unsold homes moved lower to 8.8 months from 10.2 months in May. In the banking space The Wall Street Journal stated that second quarter lending was down nearly 3 per cent among 15 large U.S. banks suggested that many banks remain cautious about putting their money to work. In the macro economic scenario Bernanke stated that the jobless rate will remain high even after the U.S. exits recession. US light crude oil futures for September delivery closed at $68.32 per barrel up by 0.4% on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed higher by 15.27 points at 9,108.51, NASDAQ index inclined by 1.93 points to 1,967.89 and the S&P 500 (SPX) closed up by 2.92 points at 982.18.

Today major stock markets in Asia are trading mixed. Hang Seng is up by 119.03 points at 20,370.65. Shanghai Composite is low by 11.573 points at 3,423.639. Japan''s Nikkei is trading down by 37.25 points at 10,051.41. Strait Times is up by 18.78 points at 2,595.44.

Indian ADRs ended mixed on Monday. However, gainers outnumbered the losers. In the IT space, Satyam Computers was up 3.9%, Infosys was up 0.12%, Wipro was up 0.57%, while Patni Computers was down 1.58%. In the telecom space, MTNL was up 6.91% while Tata Communication was down 0.63%. In the banking space, ICICI Bank was down 0.73% and HDFC Bank was down 1.9%. In other sectors, Tata Motors was up 3.76%, Dr Reddy''s Labs was up 1.02% and Sterlite Industries was up 0.38%.

The FIIs on Monday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 3,263.90 Crore, while the gross equity sold stood at Rs 2,213.20 Crore and gross debt purchased stood at Rs 242.10 Crore, while gross debt sold stood at Rs 457.90 Crore. The net investment of equity reported was Rs 1,050.60 Crore and net debt was Rs (215.80) Crore.

On Monday, the partially convertible rupee ended at Rs 48.16/17, 0.1% stronger than its previous close at 48.22/23. The rupee gained strength despite lack of direction from the local domestic stock markets and also month end dollar demand from importers.

On BSE, total number of shares traded were 43.63 Crore and total turnover stood at Rs 6,063.49 Crore. On NSE, total number of shares traded were 95.23 Crore and total turnover was Rs 19,164.1 Crore.

Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 59873665 shares, followed by Unitech with 50732864, DLF with 21199776, Tata Steel with 12102620 and HUL with 11347035 shares.

On NSE Future and Options, total number of contracts traded in index futures was 474417 with a total turnover of Rs 10,471.27 Crore. Along with this total number of contracts traded in stock futures were 623987 with a total turnover of Rs 19,245.66 crore. Total numbers of contracts for index options were 842623 with a total turnover of Rs 19,164.38 Crore and total numbers of contracts for stock options were 50988 and notional turnover was Rs 1,606.88 Crore.

Today, Nifty would have a support at 4,510 and resistance at 4,634 and BSE Sensex has support at 15,145 and resistance at 15,568.

Market on a zigzag road, but upmove continues

Marginal drop European market dampened the sentiment on Dalal Street yesterday but it was more related to the fears of overvaluation. The market is taking cues from international markets and the mixed global cues likely to weigh on the local indices in the morning trades. However, the prevailing bullish trend may add to the market advantage and help the sentiment turn positive. Among the domestic indices, the Nifty could test 4510 and below this level next support is in 4460-4405 range, while on the upside it could edge higher to 4620. The Sensex has a likely support at 15200 and may face resistance at 15500.

Among the Us indices the Dow industrials closed higher Monday, at the end of a choppy session on Wall Street in which investors weighed better-than-expected results with some wariness after a two-week rally. While the Dow Jones gained over 15 points at 9109, the Nasdaq moved up by 2 points at 1968.

Indian floats trading on the US bourses. had a firm outing on Monday, the gainers were, Rediff gaining over 13% while MTNL, Tata Motors and Satyam gained above 3-6% each. Whle Infosys, Wipro and Dr Reddy gained marginally. However, Patni Computers & HDFC Bank slipped over 1% each and VSNL and ICICI Bank dropped around marginally.

Crude oil prices are moving up gradually, while the Nymex light crude oil for September delivery rose by 33 cents to close at $68.38 a barrel. In the commodity segment, the Comex gold for December series dropped by 40 cents to settle at $956 an ounce.

Ashok Leyland

Bank of Baroda

Fortis Healthcare

Turnover dips

Nifty July 2009 futures at premium

Nifty July 2009 futures were at 4576.30, at a premium of 4 points as compared to the spot closing of 4572.30. Turnover in NSE's futures & options (F&O) segment was Rs 50,488.19 crore, sharply lower than Rs 72,581.23 crore on Friday, 24 July 2009.

The near-month July 2009 F&O contract will expire on Thursday, 30 July 2009.

Tata Steel July 2009 futures were at discount at 455.85 compared to the spot closing of 458.80.

JSW Steel July 2009 futures were at discount at 680 compared to the spot closing of 683.60.

Jaiprakash Associates July 2009 futures were near spot price at 240.50 compared to the spot closing of 240.40.

In the cash market, the S&P CNX Nifty rose 3.75 points or 0.08% at 4572.30.

Market seen opening firm; RBI's quarterly monetary policy review meet eyed

The market may open on a firm note following mixed global cues. The SGX Nifty futures for July 2009 expiry rose 8.5 points in Singapore. However volatility may be zoom ahead of the Reserve Bank of India's (RBI) quarterly monetary policy review meet today, 28 July 2009. Companies scheduled to announce quarter ended June 2009 results will be in spotlight.

The RBI has revised its FY10 gross domestic product (GDP) growth forecast to 6.5% versus 5.7% it had forecast earlier. In its first quarter review 2009-10 report, a background to the first quarter review of monetary policy 2009-10, which is scheduled be announced today, 28 July 2009, the central bank indicated average inflation in the fourth quarter of FY10 to be at 5.4%.

The Finance Minister Pranab Mukherjee in an address to the Parliament on Monday, 27 July 2009, said India can go back to 8â€“9% gross domestic product (GDP) growth. For the target to be achieved, the country needed at least 4% farm growth, the minister said. Pointing out that the various stimuli packages the government introduced last year cost the state Rs 2.14 lakh crore, Mukherjee added that the government would use more measures to boost the GDP growth.

The FM also announced a slew of changes of tax measures that included a 1% subsidy on home loans up to Rs 10 lakh, when the overall cost of the house does not exceed Rs 20 lakh.

Meanwhile, bankers expect the Reserve Bank of India (RBI) to maintain a status-quo in its key rates in its quarterly policy meet on Tuesday, 28 July 2009 following surplus liquidity in the banking system and low demand for credit. The central bank is also likely to lay out a more clear roadmap to conduct the government borrowing programme in a smooth manner and may hike the GDP and inflation forecast for the year ending March 2010 (FY 2010).

Earlier, the Reserve Bank of India (RBI) had cut the repo rate, or its key short-term lending rate, by 425 basis points to 4.75% in six steps since October 2008 as it tried to guard a slowing economy against the global financial crisis. The central bank also slashed the reverse-repo rate by 275 basis points since early December 2008 and brought down the cash reserve requirement by 400 basis points to 5% since early October 2008 to keep credit flowing.

Hindustan Unilever, Bajaj Hindusthan, GMR Infra, GVK Power, Kotak Mahindra Bank, Mundra Port, Neyveli Lignite, REC, Tata Tea, BPCL and Grasim, among others will announce their June 2009 quarterly result today, 28 July 2009. The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 825 companies rose 16% to Rs 45525 crore on 2.5% growth in sales to Rs 351504 crore in Q1 June 2009 over Q1 June 2008.

Equities may remain volatile this week as investors rollover positions from July 2009 contacts to August 2009 contracts ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009.

Asian markets were trading mixed today, 28 July 2009. Key benchmark indices in Hong Kong, Taiwan, Singapore, rose by between 0.42% and 1.47%. Indices in South Korea, China, and Japan were down by between 0.10% and 0.27%.

US markets ended modestly higher on Monday, 27 July 2009 led by gains in banking shares after a bout of profit taking in early trade. The Dow Jones industrial average rose 15.27 points, or 0.2%, to 9,108.51. The S&P 500 index rose 2.92 points, or 0.3%, to 982.18, while the Nasdaq Composite Index rose 1.93 points, or 0.1%, to 1,967.89.

On the economic front, the new home sales in June 2009 rose the most in more than eight years. Sales spiked 11% to hit a better-than-expected annualised rate of 3.84 lakh units.

Back home, as per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 439.54 crore on Monday, 27 July 2009 while domestic institutional investors sold shares worth Rs 278.97 crore.

Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on on Thursday, 23 July 2009.

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

US stocks manage a late turnaround

Indices register little gains led by the banking stocks

With the help of a late turnaround, US stocks ended modestly higher on Monday, 27 July, 2009. US stocks made a weak start today. But a stronger than expected housing sector report pushed stocks in the green for a very brief period of time. But indices soon slipped back into the red. In line earning reports from a couple of Dow components failed to take indices back in then green. But with the rebound of financial sector, mainly from banks, stocks managed a rebound.

The Dow Jones Industrial Average ended higher by 15.2 points at 9,108.3. The Nasdaq Composite Index, ended higher by 1.9 points at 1,967.6. S&P 500 ended higher by 2.9 points at 982.

Seven of the ten sectors ended in the green today led by the financial sector. The technology sector remained the main laggard.

Among economic reports for the day, The Commerce Department reported on Monday, 27 July, 2009 that sales of new homes in the U.S. in June rose by the biggest amount since November 2008, climbing by 11% to a seasonally adjusted annual rate of 384,000.

The report was stronger than expected. Market was expecting a modest increase in new-home sales to 355,000. The report detailed that sales rose by a revised 2.4% in May, thus marking the third consecutive month of gains. Sales rose 1.8% in April, but fell 6.2% in March. Over the past year, sales are down 21.3%.

Among major earning reports for the day, in-line earnings came from Dow components Verizon and Honeywell. A conservative outlook came from Honeywell. In the healthcare sector, Aetna fell short of earnings expectations and issued downside guidance.

Crude prices ended little higher on Monday, 27 July, 2009. Prices witnessed volatile trading today but managed to eke out gains finally. Prices were boosted by better than expected housing report. On Monday, crude-oil futures for light sweet crude for September delivery closed at $68.38/barrel (higher by $0.33 or 0.48%). Trading was quite volatile today. Prices rose to a high of $68.99 and fell to a low of $67.6 during the day. Last week, crude ended higher by 7.1%.

Among other products in the sector, August reformulated gasoline gained 1.88 cents to $1.9347 a gallon and August heating oil rose 1.53 cents to $1.7966 a gallon. August natural-gas futures fell 9.10 cents to $3.604 per million British thermal units.

Precious metal prices ended little higher on Monday, 27 July, 2009. It was a day of volatile trading for precious metals as prices swung between gains and losses. The dollar managed to gain back some of its lost ground. On Monday, gold for August delivery ended at $953.5, higher by $0.40 (0.04%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 7.44%.

Indian ADRs ended mixed today. While the bank ADRs ended in the red, the technology ADRs managed little gains. But Rediff and Sify were the main winners today soaring 13.9% and 10.9% respectively.

Tomorrow will be another busy day of for earnings reports. In economic data tomorrow, the S&P/Case-Shiller Home Price Index for May is due 9:00ET followed by July consumer confidence at 10:00ET.

Precious metals end marginally higher

Gold and silver witness little gains after volatile trading

Precious metal prices ended little higher on Monday, 27 July, 2009. It was a day of volatile trading for precious metals as prices swung between gains and losses. The dollar managed to gain back some of its lost ground.

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 Monday, gold for August delivery ended at $953.5, higher by $0.40 (0.04%) an ounce on the New York Mercantile Exchange. Last week, gold ended higher by 1.6%. Year to date, gold prices are higher by 7.44%.

For the month of June, 2009, gold ended down by 5.4%. Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. For the second quarter, gold ended higher by 0.5%. The metal had 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 Monday, Comex silver futures for September delivery rose 11.5 cents (0.9%) at $13.99 an ounce. Last week, silver ended higher by 3.5%.

Silver ended 13% down for the month of June, 2009. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. For second quarter, silver rose 4.5%. Year to date, silver has climbed 23.5% this year. For 2008, silver had lost 24%.

In the currency market on Monday, the dollar index, a six-currency gauge of the greenback's value, gained back some of its lost ground and rose mildly higher.

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 higher by Rs 41 (0.27%) at Rs 14,941 per 10 grams. Prices rose to a high of Rs 14,972 per 10 grams and fell to a low of Rs 14,897 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 200 (0.88%) higher at Rs 22,727/Kg. Prices opened at Rs 22,550/kg and rose to a high of Rs 22,820/Kg during the day's trading.

Volatile crude ends higher

Strong housing reports boosts crude prices

Crude prices ended little higher on Monday, 27 July, 2009. Prices witnessed volatile trading today but managed to eke out gains finally. Prices were boosted by better than expected housing report.

On Monday, crude-oil futures for light sweet crude for September delivery closed at $68.38/barrel (higher by $0.33 or 0.48%). Trading was quite volatile today. Prices rose to a high of $68.99 and fell to a low of $67.6 during the day. Last week, crude ended higher by 7.1%.

For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 52% since then. In July, 2009, it has dropped by 2.8% till date. Year to date, in 2009, crude prices are higher by 43.5%.

The Commerce Department reported on Monday, 27 July, 2009 that sales of new homes in the U.S. in June rose by the biggest amount since November 2008, climbing by 11% to a seasonally adjusted annual rate of 384,000. The report was stronger than expected. Market was expecting a modest increase in new-home sales to 355,000. The report detailed that sales rose by a revised 2.4% in May, thus marking the third consecutive month of gains. Sales rose 1.8% in April, but fell 6.2% in March. Over the past year, sales are down 21.3%.

Also at the Nymex on Monday, August reformulated gasoline gained 1.88 cents to $1.9347 a gallon and August heating oil rose 1.53 cents to $1.7966 a gallon.

August natural-gas futures fell 9.10 cents to $3.604 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 August delivery closed higher by Rs 6 (0.18%) at Rs 3,293/barrel. Natural gas for August delivery closed at Rs 183.9/mmbtu, lower by Rs 2.3/mmbtu (1.23%).

SGX Nifty Live Update - July 28 2009

4,585.0 +8.5

Monday, July 27, 2009

BSE Bulk Deals to Watch - July 27 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
27/7/2009 524412 AAREY DRUGS NIKHIL VINUKANT SHAH S 29000 49.16
27/7/2009 532937 ABC PAPER DHIRENDRA SANGHAVI B 59000 46.00
27/7/2009 532937 ABC PAPER LIFE INSURANCE CORPORATION OF INDIA S 55301 46.00
27/7/2009 532981 ANU LABS ATULBHAI GORDHANBHAI VAJA B 765353 17.69
27/7/2009 532981 ANU LABS ATULBHAI GORDHANBHAI VAJA S 765353 17.19
27/7/2009 531733 BAFNA SPINNI PUKHRAJ HIRACHAND BAFNA S 222832 1.65
27/7/2009 500019 BANK OF RAJ. SURBHI INV & TRADING CO PVT LTD B 1512993 63.24
27/7/2009 524276 DUJOD PAPE C MULTIQUIP CONSTRUCTION EQUIPMENT PRIVATE LTD B 60000 7.85
27/7/2009 524276 DUJOD PAPE C N J DESGIN BUILD S 60000 7.85
27/7/2009 590080 EASTERN GAS KAMLESH NAHAR B 56929 56.89
27/7/2009 590080 EASTERN GAS SB LIQUOR DISTRIBUTORS PVT LTD. S 54626 56.90
27/7/2009 532764 GWALIOR CHEM MORGAN STANLEY MAURITIUS COMPANY LIMITED B 1000000 88.20
27/7/2009 532764 GWALIOR CHEM GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 1000000 88.20
27/7/2009 517370 INCAP LIMITE CHALLAGULLA NEELIMA B 150000 12.28
27/7/2009 517370 INCAP LIMITE NUZIVEEDU SEEDS LIMITED S 150000 12.28
27/7/2009 531784 KADAMB CONST AS VANIJYA PRIVATE LIMITED B 13670 50.00
27/7/2009 531784 KADAMB CONST DINESH B SOMANI S 15000 50.05
27/7/2009 523810 KALE FILMS KIRAN SUTTAMCHAND B 308000 1.19
27/7/2009 523810 KALE FILMS SOHANRAJ UTTAMCHAND B 271752 1.19
27/7/2009 523810 KALE FILMS MESSRS SHREEKANT PHUMBHRA S 350000 1.19
27/7/2009 523810 KALE FILMS VINTEL SECURITIES PVT LTD S 497550 1.19
27/7/2009 502933 KATARE SPG. BHARATKUMAR N. VACHHANI S 16872 10.65
27/7/2009 531602 KOFF BR PICT PATHIKNAYAN BHAI SHAH B 600000 4.26
27/7/2009 530273 LIBERTY PHOS SADIQUA BANU S 61574 27.09
27/7/2009 523832 MUKAT PIPES MULTIQUIP CONSTRUCTION EQUIPMENT PRIVATE LTD B 52000 9.94
27/7/2009 523832 MUKAT PIPES N J DESGIN BUILD S 52000 9.94
27/7/2009 512047 NATRAJ FIN SAMRIDDHI COMMOTRADE PRIVATE LIMITED S 30000 34.35
27/7/2009 531467 POLYPRO FIBR DAVID CASTELINO S 43000 23.45
27/7/2009 502448 ROLLATAINERS WLD INVESTMENTS P.LTD. S 100000 145.10
27/7/2009 521206 SAMTEX FASHI R.S.DUA HUF B 143225 11.37
27/7/2009 521206 SAMTEX FASHI RAJASTHAN GLOBAL SECURITIES LTD S 48000 11.37
27/7/2009 521206 SAMTEX FASHI RAJASTHAN GLOBAL SECURITIES LT S 48000 11.37
27/7/2009 521206 SAMTEX FASHI RAJASTHAN GLOBAL SEC LTD S 48000 11.37
27/7/2009 532886 SEL MANUF DRB SECURITIES PVT LTD B 126054 69.99
27/7/2009 532886 SEL MANUF MASTER TRUST LTD S 100000 70.00
27/7/2009 532886 SEL MANUF DRB SECURITIES PVT LTD S 117604 69.74
27/7/2009 512413 SPECTACLE SUVIDHA SECURITIES PVT LTD S 380000 45.67
27/7/2009 512413 SPECTACLE BHARAT G VAGHELA S 416625 42.98
27/7/2009 590037 STEEL EXCH KIRAN SUTTAMCHAND B 185000 35.30
27/7/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. B 81724 31.85
27/7/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. S 72227 32.00
27/7/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD B 57124 59.23
27/7/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 50920 59.17
27/7/2009 530109 VANTA COR SE NIRMALA PRAVINGALA B 20000 19.38
27/7/2009 530109 VANTA COR SE GAURAV DOSHI B 15416 19.38
27/7/2009 530109 VANTA COR SE GAURAV DOSHI S 20416 19.36
27/7/2009 530109 VANTA COR SE PRADIP BHIMSHI SHAH S 18000 19.38
27/7/2009 503657 VEER ENERGY VJPATEL INVESTMENT B 10201 289.90
27/7/2009 531249 WELL PACK PA PANDYA HARDIK M B 31425 162.20
27/7/2009 531249 WELL PACK PA PANDYA HARDIK M S 25744 161.33

NSE Bulk Deals to Watch - July 27 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
27-JUL-2009,BANKRAJAS,Bank Of Rajasthan Ltd,SURBHI TRADING CO, PVT LTD,BUY,1716746,62.67,-
27-JUL-2009,BARTRONICS,Bartronics India Limited,ASIT C MEHTA FOREX PRIVATE LTD,BUY,184884,183.27,-
27-JUL-2009,EMCO,Emco Limited,RAJENDRA ANIL MAYUR,BUY,650100,90.23,-
27-JUL-2009,EMCO,Emco Limited,SUWALAL CHHAGANMAL BAFNA,BUY,547109,89.86,-
27-JUL-2009,FSL,Firstsource Solutions Lim,JAYPEE CAPITAL SERVICES LTD.,BUY,3282405,26.88,-
27-JUL-2009,GLORY,Glory Polyfilms Limited,KSHITIJ-PORTFOLIO-PVT.-LTD.,BUY,87467,21.50,-
27-JUL-2009,GLORY,Glory Polyfilms Limited,PRASHANT JAYANTILAL PATEL,BUY,147220,22.17,-
27-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,9961521,22.31,-
27-JUL-2009,PRITHVI,Prithvi Information Solut,BP FINTRADE PRIVATE LIMITED,BUY,122053,64.73,-
27-JUL-2009,PRITHVI,Prithvi Information Solut,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,94594,64.81,-
27-JUL-2009,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT. LTD.,BUY,222458,69.87,-
27-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1132749,18.97,-
27-JUL-2009,BANKRAJAS,Bank Of Rajasthan Ltd,Copthall Mauritius Investment Ltd,SELL,1000000,62.33,-
27-JUL-2009,BANKRAJAS,Bank Of Rajasthan Ltd,SURBHI TRADING CO, PVT LTD,SELL,46000,64.50,-
27-JUL-2009,BARTRONICS,Bartronics India Limited,ASIT C MEHTA FOREX PRIVATE LTD,SELL,184884,183.64,-
27-JUL-2009,EMCO,Emco Limited,RAJENDRA ANIL MAYUR,SELL,564183,90.14,-
27-JUL-2009,EMCO,Emco Limited,SUWALAL CHHAGANMAL BAFNA,SELL,550000,90.25,-
27-JUL-2009,FSL,Firstsource Solutions Lim,JAYPEE CAPITAL SERVICES LTD.,SELL,3317283,26.80,-
27-JUL-2009,GANESHHOUC,Ganesh Housing Corp Ltd,JANPATH MARKETING PVT LTD,SELL,250004,79.33,-
27-JUL-2009,GLORY,Glory Polyfilms Limited,KSHITIJ-PORTFOLIO-PVT.-LTD.,SELL,7467,22.40,-
27-JUL-2009,GLORY,Glory Polyfilms Limited,PRASHANT JAYANTILAL PATEL,SELL,147220,21.82,-
27-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,10322168,22.31,-
27-JUL-2009,PRITHVI,Prithvi Information Solut,BP FINTRADE PRIVATE LIMITED,SELL,121791,64.87,-
27-JUL-2009,PRITHVI,Prithvi Information Solut,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,88204,64.59,-
27-JUL-2009,SELMCL,SEL Manufacturing Company,DKG SECURITIES PVT. LTD.,SELL,103339,69.91,-
27-JUL-2009,SELMCL,SEL Manufacturing Company,MASTER TRUST LTD,SELL,200000,70.00,-
27-JUL-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1132749,18.99,-

Stock Recommendations - July 27 2009

Weekly Technicals -July 27 2009

Futures and Options - July 27 2009

HUL spurts, RIL drops as key indices end almost unchanged

Key benchmark ended almost unchanged after gyrating either side throughout the day. Global cues were positive with Asian and European markets trading higher. The BSE 30-share Sensex slipped 3.92 points or 0.03% to 15,375.04, off 88.05 points from the day's high, but up 146.58 points from the day's low. The BSE small and mid-cap indices outperformed the Sensex

The market opened on a subdued note as index heavyweight Reliance Industries (RIL) fell on weak Q1 June 2009 results it announced after trading hours on Friday, 24 July 2009. The market firmed up soon on buying in banking and IT pivotals. The Sensex hit its highest level in 1-1/2 months. However, the rally proved short-lived. The Sensex once again slipped into the red. The Sensex dropped to intraday low in afternoon trade before cutting losses. Rally in FMCG, metal and realty shares aided further recovery on the bourses in late trade

The market may remain volatile this week as investors rollover positions from July 2009 contacts to August 2009 contracts ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009.

With some initial public offers (IP)) lined up in the next few days starting with Adani Power's IPO on Tuesday, 28 July 2009, investor focus may shift to primary market from secondary market. Close on the heels of Adani Power, state-run NHPC is ready to hit the primary market in August to raise Rs 1,680 crore. Besides, Oil India and Pipavav Shipyard collectively plan to raise over Rs 2000 crore

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 698 companies rose 15.7% to Rs 42183 crore on 2% growth in sales to Rs 321044 crore in Q1 June 2009 over Q1 June 2008.

Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on on Thursday, 23 July 2009.

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

On the flip side, India's exports declined by 29.7% in June 2009 from a year earlier, R.S. Gujaral, Director General of Foreign Trade, said Friday, 24 July 2009. The declining trend in exports is expected to continue for some more time, he said.

European markets were trading firm today, 27 July 2009, extending a 2-week rally, on gains in bank stocks. Key benchmark indices in UK, Germany and France were up by between 0.23% and 1.2%.

Asian markets were trading firm today, 27 July 2009 on upbeat corporate earnings. Key benchmark indices in Hong Kong, China, Taiwan, Singapore, South Korea and Japan rose by between 0.79% and 1.86%.

Wall Street ended on a mixed note on Friday, 24 July 2009. The Nasdaq Composite index fell, snapping a 12-day winning streak, following Microsoft Corp's disappointing quarterly results. But gains in pharmaceutical and energy shares lifted the Dow and the S&P 500 to fresh 8-month closing highs. The Dow rose 23.95 points, or 0.26%, to 9,093.24. The Standard & Poor's 500 Index rose 2.97 points, or 0.30%, to 979.26. But the Nasdaq Composite Index declined 7.64 points, or 0.39%, to 1,965.96.

Trading in US index futures showed the Dow could rise 32 points at the opening bell on Monday, 27 July 2009.

The BSE 30-share Sensex was down 3.92 points or 0.03% to 15,375.04. The Sensex opened 28.07 points lower at 15,350.89. The Sensex rose 84.13 points at the day's high of 15,463.09, its level since 12 June 2009, in early trade. The Sensex lost 150.50 points at the day's low of 15,228.46 in afternoon trade.

The S&P CNX Nifty was up 3.75 points or 0.08% to 4,572.30. Nifty July 2009 futures were at 4576.30, at a premium of 4 points as compared to the spot closing.

The Sensex is up 5727.73 points or 59.31% in calendar year 2009 as on 27 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,214.64 points or 88.41% as on 27 July 2009.

Coming back to today's trade, turnover on NSE's futures & options (F&O) segment was Rs 50,488.19 crore, sharply lower than Rs 72,581.23 crore on Friday, 24 July 2009. The BSE clocked a turnover of Rs 6036 crore, lower than Rs 6,846.64 crore on Friday, 24 July 2009

The market breadth, indicating the overall health of the market, was strong. On BSE, 1672 shares advanced as compared with 985 that declined. 87 shares remained unchanged.

The BSE Mid-Cap index gained 1.63% to 5,469.50 and BSE Small-Cap index rose 1.53% to 6,142.74. Both these indices outperformed the Sensex

The BSE Realty index (up 3.11%), the BSE Consumer Durables index (up 1.66%), BSE Capital Goods index (up 0.69%), the BSE Power index (up 2.29%), the BSE IT index (up 0.61%), the BSE TECk index (up 0.88%), the BSE FMCG index (up 3.64%), the BSE Metal index (up 1.93%), BSE PSU index (up 0.33%), the BSE Healthcare index (up 0.27%), outperformed the Sensex.

The BSE Auto index (down 0.51%), the BSE Oil & Gas index (down 3.09%), the BSE Bankex (down 0.07%), underperformed the Sensex.

Among the 30-member Sensex pack, 16 declined while the rest gained

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) lost 3.81% to Rs 1937 after the company reported disappointing Q1 June 2009 results after trading hours on Friday, 24 July 2009. But the stock came off the day's low of Rs 1908. RIL has a 14.12% weightage in the Sensex.

RIL's net profit fell 11.5% to Rs 3636 crore on a 22.9% decline in sales to Rs 32055 crore in Q1 June 2009 over Q1 June 2008. RIL saw its net profit dip for the third straight quarter, as margins from its refining business halved and the global recession reduced fuel demand. RIL's gross refining margins (GRMs) - the difference between cost of crude oil and the price of refined petroleum products - came down 52.22% to $7.5 per barrel in Q1 June 2009 compared with $15.7 per barrel in Q1 June 2008.

India's largest state-run oil explorer by market capitalisation ONGC slumped 2.99% on reports the company is delaying the development of as many as 66 small discoveries because production from the fields may not be enough to recover costs.

GAIL India slumped 3.61% after net profit fell 26.9% to Rs 655.84 crore on 5.1% rise in net sales to Rs 6021.42 crore in Q1 June 2009 over Q1 June 2008. The company declared its results on Saturday, 25 July 2009.

Shares of state run oil marketing companies slipped on rise in crude oil prices. HPCL (down 1.42%), and Indian Oil Corporation (down 0.74%), edged lower. However, BPCL rose 0.14%. Higher oil prices will results in increase underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Castrol India galloped 9.38% after net profit rose 55% to Rs 128.40 crore on a 2.56% rise in total income to Rs 646.80 crore in Q2 June 2009 over Q2 June 2008. The result was announced during trading hours today, 27 July 2009.

India's largest truck market by sales Tata Motors gained 3.76% to Rs 387.55, rebounding sharply from day's low of Rs 356.80 after net profit rose 57.54% to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008. Analysts had expected a steep fall in net profit due to lower sales volume. The result was announced at the fag end of the trading sessions today, 27 July 2009.

Tata Motors attributed the strong results to continued focus on cost efficiencies, decline in raw material prices and improvement in sales realization

But other auto stocks dropped on profit taking after a recent sharp surge. India's top small car maker by sales Maruti Suzuki India declined 0.79%. The stock had stuck a record high of Rs 1397.50 in intra-day trade on Friday, 24 July 2009 buoyed by better than expected results announced during market hours on Thursday, 23 July 2009.

India's largest bike manufacturer by sales Hero Honda Motors lost 2.81% ahead of its Q1 June 2009 results on 29 July 2009. India's biggest tractor maker by sales Mahindra & Mahindra dropped 1.92% ahead of its Q1 June 2009 results on 30 July 2009

India's largest private sector bank by net profit ICICI Bank slipped 1.75% to Rs 753.40, off day's high of Rs 784.80 on profit taking. The bank's net profit rose 20.63% to Rs 878.22 crore on a 2.2% decline in operating income to Rs 9223.32 crore in Q1 June 2009 over Q1 June 2008. The bank, which reported its earnings on Saturday, 25 July 2009, has a 7.61% weightage in Sensex.

Cost-cutting measures and treasury profits enabled the country's largest private lender, ICICI Bank, beat market estimates in Q1 June 2009. ICICI Bank recorded a treasury income of Rs 714 crore in Q1 June 2009 as against a loss of Rs 594 crore in Q1 June 2008.

India's biggest bank in terms of branch network State Bank of India (SBI) rose 0.44% after the state-run bank reduced interest rates on deposits by 25-50 basis points (a basis point equals one-hundredth of a percentage point) with effect from today, 27 July 2009.

Bank of Baroda lost 3.53% despite reporting a 84.80% rise in net profit to Rs 685.38 crore on 24.4% rise in total income to Rs 3806.37 crore Rs 4735.15 crore in Q1 June 2009 over Q1 June 2008.

Andhra Bank rose 1.29% after net profit jumped 230.10% to Rs 256.22 crore on 37.9% rise in total income rose to Rs 1,745.92 crore in Q1 June 2009 over Q1 June 2008. The bank declared results on Saturday, 25 July 2009.

Bank of India (BOI) lost 4.21% after the bank's net non-performing assets jumped 96.41% to Rs 1234.43 crore in Q1 June 2009 over Q1 June 2008. BoI's net profit rose 3.98% to Rs 584.32 crore on 22.09% rise in total income to Rs 5,023.61 crore in Q1 June 2009 over Q1 June 2008. The state-run declared its results during trading hours today, 27 July 2009.

Analysts expect the Reserve Bank of India (RBI) to maintain a status-quo on key policy rates in its quarterly policy meet on Tuesday, 28 July 2009 following surplus liquidity in the banking system and low demand for credit. The central bank is also likely to lay out a more clear roadmap to conduct the government borrowing programme in a smooth manner and may hike the GDP and inflation forecast for the year ending March 2010 (FY 2010).

Earlier, the Reserve Bank of India (RBI) had cut the repo rate, or its key short-term lending rate, by 425 basis points to 4.75% in six steps since October 2008 as it tried to guard a slowing economy against the global financial crisis. The central bank also slashed the reverse-repo rate by 275 basis points since early December 2008 and brought down the cash reserve requirement by 400 basis points to 5% since early October 2008 to keep credit flowing.

India's largest FMCG company by sales Hindustan Unilever surged 6.70% to Rs 301 after striking a 52-week high of Rs 305.40 on BSE in intra-day trade today, 27 July 2009. The stock advanced ahead of its Q1 June 2009 results on Tuesday, 28 July 2009. It was the top gainer from the Sensex pack.

Other FMCG stocks also logged gains on fresh buying after revival in monsoon. Nestle India (up 3.98%), Marico (up 2.62%), Britannia Industries (up 1.72%), Tata Tea (up 3.35%) and Dabur India (up 2.46%), gained. FMCG companies derive substantial revenue from rural sales.

Godrej Consumer Products surged 9.57% to Rs 227.30 after net profit jumped 75.9% to Rs 60.29 crore in Q1 June 2009 over Q1 June 2008. The stock hit a record high of Rs 235 today, 27 July 2009.

Asian Paints jumped 2.96% after net profit rose 67.8% to Rs 164.45 crore on a 17% rise in sales to Rs 1164.82 crore in Q1 June 2009 over Q1 June 2008.

India's second largest private sector power generation company by sales Tata Power Company surged 5.82%. The company during trading hours on 22 July 2009, said strong response for its global depository receipt (GDR) issue helped it raise $335 million as compared with an earlier announced plan to raise $250 million. The company will use the funds for its ongoing capital expenditure plans. Tata Power issued 14.8-million GDRs priced at $22.58 a piece, with each GDR representing one equity share, Tata Power said.

India's largest power generation firm by sales NTPC gained 1.33%. The company reported 27.05% rise in net profit to Rs 2193.62 crore on 24.59% rise in total income to Rs 12778.96 crore in Q1 June 2009 over Q1 June 2008. The results were declared by the company after market hours today, 27 July 2009

Realty stocks gained on the government's thrust on the housing sector in the Union Budget 2009-10. DLF (up 4.64%), Unitech (up 0.80%), Housing Development & Infrastructure (up 4.50%), Parsvnath Developers (up 5.72%), Omaxe (up 13.66%), and Indiabulls Real Estate (up 2.15%), advanced.

Telecom pivotals held firm of the first meet of group of ministers (GoM) to decide on the base price for 3G spectrum on 31 July 2009.

India's second largest cellular services provider by sales Reliance Communications rose 2.32%. India's largest listed cellular services provider by sales Bharti Airtel advanced 1.93%.

The GoM is set up to look into matters relating to pricing of spectrum and number of operators to be allowed in each telecom circle. The finance ministry had proposed a base price of Rs 4,040 crore for 3G spectrum, whereas the Department of Telecom (DoT) suggested a price of Rs 3,540 crore. While presenting the Union Budget, the finance minister, Mr Pranab Mukherjee, said Rs 35,000 crore was expected to be raised from the auction.

Metal stocks extended recent gains on firm base metal prices. LMEX, a gauge of six metals traded on the London Metal Exchange rose 0.43% on Friday, 24 July 2009. National Aluminium Company (up 0.62%), JSW Steel (up 6.21%), Tata Steel (up 3.93%), rose. India's largest private sector copper marker by sales Sterlite Industries India ended unchanged at Rs 652.80

Copper and aluminum jumped to the highest in nine months in Shanghai after China reiterated its commitment to sustain economic growth in the world's largest consumer of industrial metals. Zinc climbed to a 10-month high.

Infrastructure stocks rose on the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Bharat Heavy Electricals (up 2.48%), Lanco Infratech (up 5.46%), GMR Infrastructure (up 3.99%), IVRCL Infrastructure (up 0.74%), GVK Power Infrastructure (up 6.40%), rose. However India's largest engineering & construction company by sales Larsen & Toubro was down 0.33%

India's largest dam builder by sales Jaiprakash Associates slipped 0.58% to Rs 240.10 on profit booking. The stock surged to day's high of Rs 254 after reporting 292.28% spurt in net profit to Rs 491.18 crore on a 77.19% spurt in total income to Rs 2116.86 crore in Q1 June 2009 over Q1 June 2008. The results were announced on Saturday, 25 July 2009.

IT stocks ended mixed on recent reports that the third largest global energy company British Petroleum is likely to award outsourcing contracts worth up to $1 billion in August 2009. India's second largest IT firm by sales Infosys rose 0.92%. However, India's largest IT exporter by sales TCS fell 0.72%. On 17 July 2009, TCS announced Q1 results that beat market expectations. India's third largest IT exporter by sales Wipro slipped 0.10%. On 22 July 2009, Wipro announced better-than-expected Q1 results.

Reliance Industries was the top traded counter on BSE with turnover of Rs 330.04 crore followed by DLF (Rs 280.43 crore), HDIL (Rs 222.42 crore), ICICI Bank (Rs 188.96 crore) and Jaiprakash Associates (Rs 188.20 crore).

Ispat Industries was the top traded counter on BSE with volume of 1.90 crore shares followed by Suzlon Energy (1.76 crore shares), Mahindra Satyam (1.70 crore shares), IFCI (1.59 crore shares) and Cals (1.50 crore shares).

Tyre shares gained on fresh buying following robust earnings reported by Apollo Tyres and JK Tyre. MRF (up 16.85%), Goodyear India (up 9.10%), and Apollo Tyres (up 4.56%), gained.

MRF today reported a 294% jump in net profit to Rs 125.70 crore on 12.4% rise in net sales to Rs 1433.55 crore in Q3 June 2009 over Q3 June 2008. JK Tyre reported a two fold spurt in net profit, while Apollo Tyres posted a 95% jump in net profit in Q1 June 2009 over Q1 June 2008.

Bharat Electronics surged 4.58% after net profit galloped 2785.3% to Rs 72.71 crore on 134.7% spurt in net sales to Rs 900.98 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after market hours on Friday, 24 July 2009.

Gujarat NRE Coke spurted 9.11%. The company had on 20 July 2009, forfeited 4.55 crore convertible warrants and application money totaling Rs 39 crore held by promoter group consequent to expiry period of these warrants. The forfeiture of convertible warrants has eased concerns of equity dilution.

Godrej Industries soared 10% ahead of its Q1 June 2009 results on Wednesday, 29 July 2009.

Fortis Healthcare rose 8.82%. The company, during market hours on Friday, 24 July 2009, had reported 8.3% fall in net profit to Rs 1.56 crore on a 26.5% increase in sales to Rs 48.59 crore in Q1 June 2009 over Q1 June 2008.

Weak RIL results may cap upside

The market may extend gains of the preceding two trading sessions on firm Asian stocks. The SGX Nifty futures for July 2009 expiry jumped 32 points in Singapore. Index heavyweight Reliance Industries
(RIL) is likely to be under pressure after the company reported disappointing Q1 June 2009 results after trading hours on Friday, 24 July 2009. RIL has a 14.12% weightage in the the Sensex. ICICI Bank, on the other hand, may rally on strong Q1 results which it reported on Saturday, 25 July 2009. ICICI Bank has a 7.61% weightage in Sensex.

Tata Motors, Ashok Leyland, Bank of Baroda, Bank of India, GSK Pharma, NTPC, Punj Lloyd, RCF and TTML among others will announce their June 2009 quarterly result today, 24 July 2009. The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 634 companies rose 15.1% Rs 38710 crore on 3.2% growth in sales to Rs 285708 crore in Q1 June 2009 over Q1 June 2008.

Asian markets were trading firm today, 27 July 2009 on upbeat economic data and earnings. Key benchmark indices in Hong Kong, China, Taiwan, Singapore, South Korea and Japan rose by between 0.52% and 2.11%.

Wall Street ended on a mixed note on Friday, 24 July 2009. Both the Dow Jones and S&P 500 reversed early losses to finish with modest gains. The Nasdaq logged its first loss in more than two weeks as tech stocks came under pressure. Its decline put an end to its 12-session streak of gains. The Dow Jones was up 23.95 points, or 0.26%, to 9,093.24. and the S&P 500 gained 2.97 points, or 0.30%, to 979.26., while the Nasdaq shed 7.64 points, or 0.39%, to 1,965.96.

Back home, as per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 663.02 crore on Friday, 24 July 2009 while domestic institutional investors sold shares worth Rs 206.55 crore.

Meanwhile, bankers expect the Reserve Bank of India (RBI) to maintain a status-quo in its key rates in its quarterly policy meet on Tuesday, 28 July 2009 following surplus liquidity in the banking system and low demand for credit. The central bank is also likely to lay out a more clear roadmap to conduct the government borrowing programme in a smooth manner and may hike the GDP and inflation forecast for the year ending March 2010 (FY 2010).

Earlier, the Reserve Bank of India (RBI) had cut the repo rate, or its key short-term lending rate, by 425 basis points to 4.75% in six steps since October 2008 as it tried to guard a slowing economy against the global financial crisis. The central bank also slashed the reverse-repo rate by 275 basis points since early December 2008 and brought down the cash reserve requirement by 400 basis points to 5% since early October 2008 to keep credit flowing.

Annual monsoon rains, running between June to September, are seeing a revival after a sluggish start. India's monsoon rains were 15% above normal in the week to 22 July 2009, the second consecutive week of above-average rainfall after an exceptionally dry patch at the start of the season. Total cumulative monsoon, which runs from June to September, was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department said on on Thursday, 23 July 2009.

More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Equities may remain volatile this week as investors rollover positions from July 2009 contacts to August 2009 contracts ahead of expiry of July 2009 futures and options (F&O) contract on Thursday, 30 July 2009.

Pre Session Commentary - July 27 2009

Today domestic markets are likely to open positive as majority of Asian markets have opened with phenomenal gains. In the Domestic arena results of heavy weights like Reliance Industries and ICICI Bank will play a key role in guiding the traders’ sentiments. One could see some cautiousness trade at the beginning. Nonetheless, the opening of European markets will further decide the firmness in domestic arena as well.

On Friday, Indian markets closed higher on the back of bullish sentiments. The subdued opening along with profit booking pressures trapped the markets until the mid session. However the phenomenal quarterly results from majority of companies helped markets at broader level to trade in northward. Auto stocks were the charm of the day after Maruti Suzuki reported better than expected first quarter results. The company reported Q1FY10 net sales of Rs. 6,340 crore, a phenomenal growth of 34 per cent over the corresponding period previous year. Bharat Forge was the top gainer of the Auto Index with a gain of 14.06 per cent to Rs. 181.70. From the sectoral front Auto, Realty, Metal and CD led the markets with gains of 5.14%, 4.26%, 239% and 2.37% respectively. BSE Mid Cap and Small Cap index also gained by 1.67% and 1.81% respectively. Domestic markets are likely to trade positive today.

The BSE Sensex closed higher by 147.92 points at 15,378.96 and NSE Nifty ended higher by 10 points at 4,533.75 BSE Mid Caps and Small Caps closed up by 88.44 points and 107.35 points at 5,381.81 and 6,050.20 respectively. The BSE Sensex touched intraday high of 15,418.61 and intraday low of 15,168.52.

On Friday, the US stock markets closed mixed. Weakness in tech stocks weighed on Nasdaq for is first loss in more than two weeks. Microsoft reported its earnings which were inline with the expectations however its double digit percentage decline in revenue caused its topline to come short of expectations. The weakness in Nasdaq caused it to lag other headline indices during the trading session. Nasdaq was down by nearly 2 per cent at the session’s low, however as the trading progressed it managed to pare off its early losses. On the other hand, health care provided leadership with a gain of 1.6% amid news from Reuters that a leader of House fiscal conservatives said health care reform talks fell apart and that he sees no possibility of a deal. US light crude oil futures for August delivery closed at $67.86 per barrel up by 1.0% on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed higher by 23.95 points at 9,093.24, NASDAQ index declined by 7.64 points to 1,965.90 and the S&P 500 (SPX) closed up by 2.97 points at 979.26.

Today major stock markets in Asia are trading positive. Hang Seng is up by 357.72 points at 20,340.51. Japan''s Nikkei is trading up by 224.62 points at 10,169.17. Jakarta Composite is up by 20.28 points at 2,186.07.

Indian ADRs closed mixed on Friday. In the IT space, Satyam Computers was up 2.6%, Infosys was up 0.04%, Wipro was up 0.93% and Patni Computers was up 0.25%. In the banking space, ICICI Bank was down 5.13% and HDFC Bank was down 4.18%. In the telecom space, MTNL was up 3.21% and Tata Communication was down 0.86%. In other sectors, Sterlite Industries was up 1.53%, Dr Reddy''s Labs was up 1.84% and Tata Motors was up 6.65%.

The FIIs on Friday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 5,307.00 Crore, while the gross equity sold stood at Rs 45,97.10 Crore and gross debt purchased stood at Rs 139.00 Crore, while gross debt sold stood at Rs 545.40 Crore. The net investment of equity reported was Rs 709.90 Crore and net debt was Rs (406.40) Crore.

On Friday, the partially convertible rupee ended at Rs 48.22/23, 0.50% weaker than its previous close at 48.46/47. The rupee gained strength as domestic stock markets marked huge gains.

On BSE, total number of shares traded were 51.87 Crore and total turnover stood at Rs 6,846.64 Crore. On NSE, total number of shares traded were 110.26 Crore and total turnover was Rs 20,529.74 Crore.

Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 94517529 shares, followed by Unitech with 61567227, DLF with 19129135, Idea Cellular with 15286534 and Tata Steel with 14808926 shares.

On NSE Future and Options, total number of contracts traded in index futures was 710285 with a total turnover of Rs 15,612.20 Crore. Along with this total number of contracts traded in stock futures were 741508 with a total turnover of Rs 22,416.4 crore. Total numbers of contracts for index options were 1418129 with a total turnover of Rs 32,321.61 Crore and total numbers of contracts for stock options were 72164 and notional turnover was Rs 2,231.02 Crore.

Today, Nifty would have a support at 4,574 and resistance at 4,622 and BSE Sensex has support at 15,468 and resistance at 15,612.

Grey Market Premiums

Excel Infoways Ltd. 85 5 to 7

Raj Oil Mills Ltd. 100 to 120 Discount

Adani Power 90 to 100 7 to 8

NHPC 28 to 33 (Approximate) 12 to 13

SGX Nifty Live Update - July 27 2009

4,625.0 +47.0

May start buoyant

The benchmark indices, Sensex and Nifty, are expected to commence on a firm note and witness significant rally during intra-day trades, as international markets backed by firm US and Asian indices may help the sentiment remain buoyant. Among the Asian majors, Nikkei Index has surged 1% while Hang Sang & Strait Times Index has scaled up nearly 1% each. On the technical front, the Nifty could test in the 4620-4670 range on the upside and has supports in the 4510-4460 range, while the Sensex has a likely support at 15200 and may face resistance at 15500.

US indices ended mixed on Friday with the Dow Jones gained 24 points at 9093, the Nasdaq shed 8 points to close at 1966.

Most of all the Indian ADRs traded firm on the US bourses. Tata Motors led the pack with gains of 6.65% while MTNL, Satyam and Dr Reddy gained around 1-4% each. However, Infosys, Wipro and Patni Computers ended with marginal gains. While ICICI Bank, HDFC Bank, Rediff and VSNL closed with loss of 1-5%.

Crude oil prices in the US market gained, with the Nymex light crude oil for September delivery advance by 89 cents to close at $68.05 per barrel . In the commodity segment, the Comex gold for August series lost $1.70 to settle at $953.10 a troy ounce.

Daily News Roundup - July 27 2009

SBI trims deposit rates by 25-50 basis points.(BL)

Indian Railways cancels a locomotive management system contract awarded to Mahindra Satyam in January this year. (ET)

BHEL rules out FPO, government may divest stake by open market sale. (BS)

ITC to invest Rs130bn in paper, hotels business.(BL)

Wockhardt is likely to go slow on its plans to divest non-core assets, including the proposed stake sale of its hospital chain. (BS)

Tata Motors will launch three new passenger cars over the next eight months.(TOI)

ONGC keeps on hold development of six prospective discoveries made in recent years due to lack of infrastructure. (BS)

Everonn Systems plans to set up training centres for the ITIs and polytechnics in the state. (BS)

NMDC plans to invest about Rs 12bn in Sponge Iron India.(DNA)

Areva SA has offered state-owned Nuclear Power Corp minority stakes in a handful of uranium mines.(BL)

GMR Infrastructure said its fully owned subsidiary GMR Energy has acquired EMCO Energy, which is developing a 600MW coal-based power plant in Warora, Maharashtra.(BL)

ONGC hires an ultra deep-sea drill rig from Reliance Industries for four years at close to Rs39.15bn. (BS)

Financial closure for CESC’s proposed Rs24bn, 2x300MW thermal power plant at Haldia is delayed as a small parcel of land is not available.(BL)

GMR has emerged as a surprise bidder in the £300mn auction for EDF Energy’s Eggborough power station in North Yorkshire, a media report has said.(TOI)

Air India plans to go ahead with its proposed acquisition of 111 aircraft, in spite of the huge losses of Rs50bn on its books. (BS)

Supreme Court paved the way for Daiichi Sankyo to go ahead with the proposed open offer to acquire 20% stake in Zenotech Laboratories.(BL)

Bank of Baroda plans to raise Rs35bn.(BL)

Gharda Chemicals, an Rs10bn agro-chemical firm, is

in takeover talks with around half-a-dozen peers, including United Phosphorus (DNA).

Finance ministry would give a final shape to a bailout package for Air India over the next fortnight.(DNA)

Oil India plans to float an IPO this September to raise around Rs25bn to fund its various exploration and production activities. (BS)

DCB board approves raising up to Rs4bn through a variety of instruments. (BS)

Godrej Consumer plans to acquire control of its FMCG joint venture with US-based Sara Lee Corp. (BS)

The EGoM has suggested a price band of Rs30 to Rs36 for the NHPC IPO. (ET)

Oil India plans to invest around Rs23.35bnn during the fiscal. (BS)

TajGVK Hotels is exploring the possibility of entering the value for money segment through the ‘Ginger’ brand in Andhra Pradesh. (BS)

Rashtriya Ispat Nigam may acquire majority stakes in 5 ailing PSUs. (BS)

ESS DEE Aluminium is in advanced talks to buy Comital, an Italian firm, for US$125-150mn. (ET)

Yes Bank plans to reconsider some of its diversification plans and instead focus strongly on growing its core banking business. (ET)

Foreign exchange reserves rose by US$2.3n to $266bn for the week ended July 17.(BL)

DoT may stop issuing any more cellular licences given the scarcity in spectrum.(BL)

Interest rate futures to be launched by August end.(FE)

The CERC is reviewing the 4 paise per unit cap on power traders’ margin. (BS)

SEBI proposes that stock brokers must settle the balance funds or securities in the trading accounts of clients on the last day of every month. (ET)

Retail sales of medicine in the domestic market grew by 18.3% to Rs32.3bn in June. (ET)

Strength at start!

What does not destroy me, makes me stronger.

India seems to be going from strength to strength, not just on the economic front but also in defence. It has entered a global elite club by launching its first indigenously made nuclear submarine, INS Arihant (which means destroyer of enemies). The bulls of course have been decimating the bears over the past couple of weeks. Given the healthy state of global markets and strong earnings, one shouldn’t be surprised if the current rally lasts another 10-20%.

The next crucial technical level to keep an eye on in the short term is 4700 on the Nifty. A breach of this level could propel the index past 5000. On the downside, support is likely to come in at around 4350-4400. We expect a positive start today, but the gains could be restricted by some pressure on index heavyweight Reliance Industries, whose Q1 results fell short of consensus estimates.

A lot of other big results came in during the weekend and some more are on their way. We also have to contend with the F&O expiry. Before that, the RBI will announce its quarterly policy review tomorrow. The markets do not expect the central bank to tinker with rates, but regulators and markets rarely think alike. The best approach is to wait and watch. In any case, most of the monetary and fiscal measures have been announced. The fear now is will the liquidity deluge and the government's massive borrowing programme fuel inflation going ahead? If it does, how that will impact the economy, India Inc. and the markets.

Results Today: Areva, Ashok Leyland, Balrampur Chini, BOB, BOI, Blue Star, Cadila, Castrol, Century Textiles, Chennai Petro, Dabur, EIH, Escorts, Finolex Industries, GSK Pharma, Glenmark, Gujarat Alkalies, Hinduja Ventures, Jindal Saw, Karnataka Bank, LMW, MRF, Morepen Labs, NTPC, Punj Lloyd, RCF, SpiceJet, Tata Motors, Tata Tele and Titan.

FIIs were net buyers of Rs6.63bn in the cash segment on Friday on a provisional basis while the local funds pulled out Rs2.06bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs332.2mn.

On Thursday, the foreign funds were net buyers in the cash segment at Rs2.6bn, as per SEBI data. With this, their net investment in Indian stocks this year has crossed Rs300bn or ($6bn). Mutual Funds were net buyers of Rs7.42bn in the cash segment on Friday.

Blue chip stocks and the broader market extended gains on Wall Street on Friday, but technology shares succumbed to selling pressure after software major Microsoft and Amazon.com posted disappointing results.

The Dow Jones Industrial Average logged it's best two-week rally since 2000, spurred by gains in energy producers after crude oil climbed. Sentiment also received a boost after Federal Reserve chairman Ben Bernanke said the central bank is withdrawing measures taken to end the financial crisis.

The Dow gained 23.95 points, or 0.26%, to end at 9093.24. For the week, the blue chip benchmark rose nearly 4%, marking its best two-week performance since March 2000. On Thursday, the Dow surpassed 9,000 for the first time since January. It has surged 12% since July 10.

The Standard & Poor's 500 (S&P) index added 2.97 points, or 0.30%, to shut shop at 979.26. For the week, the broader market barometer was up 4.1%. The Nasdaq Composite Index lost 7.64 points, or 0.39%, to close at 1965.96, its first fall in 13 sessions. For the week, the tech-heavy index gained 4.2%.

US stocks erased early losses on Friday, as energy companies rebounded from their lows, and Bernanke’s comments pushed the S&P 500 to its intraday peak. He told the House Financial Services Committee that the Fed’s emergency lending programs are diminishing in size.

US mutual funds received US$1.5bn of net inflows last week, the second-highest amount since February 2008, according to AMG Data Services in Arcata, California. The S&P 500 has surged 45% since March 9.

Shares of Exxon Mobil and ConocoPhillips advanced as oil and natural gas prices extended their weekly gain. Crude oil for September delivery added 1.3% in New York after falling 1%. Natural gas futures expiring next month climbed 4.1%.

Chubb Corp. shares jumped 6.5%, leading insurers higher, after raising its 2009 forecast. Chubb, the insurer of high-end homes and corporate boards, added 6.5%. Its second-quarter profit beat analysts’ estimates, and the company raised its 2009 forecast.

Microsoft and Amazon.com retreated more than 7% after quarterly results missed estimates.

Microsoft shares fell 8.3% after the software giant tumbled after it reported a profit fall and sales slide that left the Windows maker's topline over USUS$1bn short of analyst estimates. Microsoft reported a 29% drop in fiscal fourth-quarter earnings and posted sales that missed analysts’ estimates. Per share profit, excluding some items was 36 cents, missing the average forecast by 2.4%.

Amazon.com, which had climbed on Thursday following news of an acquisition, slumped 7.9%, as falling sales of videogames and consoles contributed to its weaker than expected second-quarter North American revenue growth. Its low prices and free-shipping offers have started to eat into profit, according to some analysts.

Coffee chain operator Starbucks surged mid-week after swinging to a fiscal third-quarter profit. For the week, the company's shares surged 19% but on Friday shares closed down 4 cents to 17.22.

Black & Decker shares gained 10%, after second-quarter earnings from the tool and home improvement products company beat Wall Street expectations.

Broadcom stock lost 6.8% after the chip maker's second-quarter profit plunged 90% as the company posted a double-digit revenue decline. However, the company issued a current-quarter revenue forecast that was above analysts' forecasts.

Confidence among US consumers fell in July for the first time in five months, as mounting unemployment and depressed wages shook households. The Reuters/University of Michigan final index of consumer sentiment decreased to 66, better than forecast, from 70.8 in June. A preliminary reading was 64.6.

Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.66% from 3.67% on Thursday.

COMEX gold for August delivery fell US$1.70 to settle at US$953.80 an ounce.

Better-than-expected results and a few promising economic reports lifted stocks last week, leaving the Dow and S&P 500 at more than eight-month highs and the Nasdaq at a more than nine-month high. But after such a run, investors turned a bit cautious on Friday, particularly after a few earnings reports missed the mark.

The belief that corporate profits are improving has helped Wall Street resume the advance after a mostly flat May and weak June. However, for the current momentum to sustain in the longer run there has to be continuous flow of good news on the economy and earnings.

European shares ended lower on Friday, breaking a nine-day rally, after Ericsson and Syngenta posted earnings that missed analysts’ estimates and the UK economy registered a steeper-than-expected drop in the second quarter GDP.

The pan-European Dow Jones Stoxx 600 index fell 0.1% to close at 219.67, ending a nine-session winning streak. The benchmark index for European equities gained 4.3% this week, extending its rally since July 10 to 11%.

European markets had started the day on a weak note but managed to push back into positive territory before resuming the southward journey. National benchmark indexes declined in 11 of the 18 western European markets.

The UK's FTSE 100 index managed to hold on to gains to close 0.4% higher at 4,576.61. Germany's DAX index fell 0.3% to end at 5,229.36 and the French CAC-40 index slipped 0.2% to 3,366.45.

The BSE Sensex surged by 148 points or 1% to end at 14,379 after touching a high of 15,418 and a low of 15,168. The index opened at 15,272 against the previous close of 15,231. The NSE Nifty surged by 40 points or 0.9% to shut shop at 4,564.

In Asia, the Nikkei in Japan gained 1.5% to end at 9,944, while Australia's S&P/ASX ended higher by 0.6% at 4,089. The Hang Seng index in Hong Kong advanced by 0.8% to end at 19,982.

In Europe, stocks were trading in the green. The FTSE in the UK was up 0.8% at 4,596. The DAX was up 0.8% at 5,287 and the CAC 40 was up 0.8% at 3,399.

Coming back to India, among the BSE sectoral indices, the Auto index was the top gainer, gaining 5%, followed by the Realty index that was up 4.2%. The BSE Metal index up 2.3% and the BSE Consumer Durables index was up 2%.

The BSE Mid-Cap index advanced 1.6% and the BSE Small-Cap index rose 1.8%.

Within the Sensex, the major gainers were Tata Motors, DLF, Maruti, Tata Steel, JP Associates, Hero Honda, Hindalco and HUL. Among the major losers were, Sun Pharma, HDFC, SBI and Reliance Industries.

Outside the frontline indices, the top losers included Bharat Forge, Ashok Leyland, Videocon Ind, United Phos, LITL and Exide Ind.

Among the big losers in the broader market were Max India, Union Bank, Shriram Trans, Jai Corp, Bank of India, Madras Cement and PNB.

For the week,The top gainers: The top gainers in the BSE Sensex were DLF (up 18.4%), Tata Motors (up 18.1%), Maruti Suzuki (up 16.7%), Tata Steel (up 12.8%) and Hindalco (up 11.3%).

The Top Losers: The top losers in the BSE Sensex were HDFC (down 4.3%), Ambuja Cements (down 3.1%) and BHEL (down 0.7%).

The Realty Sector (up 13.3%): The top gainers in the real estate space were Parsvnath (up 31%), DLF (up 18.4%), Anant Raj Indus (up 18.2%), Omaxe (up 16.6%), Ansal Props (up 16.5%), Unitech (up 14.4%) and Ackruti City (up 7.3%).

Crude gains more than 7% for the week

Prices rise on signs of green shoots in the economy

Crude prices ended higher once again on Friday, 24 July, 2009. Prices continued to rise boosted by positive earning reports that literally almost confirmed that “green shoots” in the economy are really being visible.

On Friday, crude-oil futures for light sweet crude for September delivery closed at $68.05/barrel (higher by $0.89 or 1.3%). Trading was quite volatile during the week. Earlier during the week, it fell to a low of $66.46. For the week, crude ended higher by 7.1%.

For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 53% since then. In July, 2009, it has dropped by 3.3% till date. Year to date, in 2009, crude prices are higher by 43%.

Among economic reports for the day on Friday, University of Michigan and Reuters reported that U.S. consumer sentiment rose in late July to 66.0 from 64.6 in early July, but this was still down from the June reading of 70.8.

On that day, U.S. stocks mostly reversed their earlier losses, continuing the two-week rally that had sent the Dow Jones Industrial Average back above 9,000 for the first time since January a day before.

EIA reported earlier during the week that total inventories of crude, gasoline and other petroleum products rose 1.9 million barrels in the week ended 17 July, 2009 to 1,117.6 million barrels, up for a sixth straight week to the highest level since September 1990. But crude oil inventories fell last week as the U.S. imported less oil, but inventories gains in gasoline and other products were more than the drop in crude. Meanwhile, petroleum demand rose slightly, but still stayed way below last year's level.

The report also said that crude oil inventories fell by 1.8 million barrels last week. Gasoline inventories rose by 800,000 barrels and distillate stockpiles, which include diesel and heating oil, increased by 1.2 million barrels.

Also at the Nymex on Friday, August reformulated gasoline rose slightly to end at $1.9159 a gallon and August heating oil added 1% to $1.7813 a gallon.

August natural-gas futures rose 14.5 cents, or 41%, to $3.695 per million British thermal units.

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

Sunday, July 26, 2009

Adani Power IPO - Invest

Investors with a long-term horizon can consider subscribing to the initial public offering of Adani Power (APL), the power generation arm of Adani Enterprises that is engaged in power project development and operations.

Given that the company’s operations are at a nascent stage and the offer is not cheap, investors should not expect listing gains on this offer.

At the price band of Rs 90-100 for this book-built offer, the company is expected to raise around Rs 2,700-3,000 crore. Of this, Rs 2,200 crore would be used to fund the equity portion of two power generation plants — Mundra Phase 4 and Thiroda of 1980 MW each. Balance funds will be deployed for Dahej (in Gujarat) and Kawai (in Maharashtra) power units, totalling 3,300 MW; these are in the nascent stages.

Though Adani’s projects lack operational history, the growth opportunities in the power sector are bright due to the huge demand-supply imbalance. Adani Power also enjoys reasonable earnings visibility owing to Power Purchase Agreements (PPA) signed for most of its Mundra and Thiroda projects and assured fuel linkages owing to the parent’s vertical integration.

Its unique advantages lie in dedicated transmission lines to evacuate power, the opportunity for higher realisations from merchant power agreements and tax benefits due to its SEZ status. However, before investing, investors have to bear in mind the risks to fuel supplies from the proposed new mining policy in Indonesia and operational issues cited by users of Chinese power equipment.
Valuations

At the offer price, the company’s business appears fairly valued. As the company has limited operational history, we have evaluated the offer based on market capitalisation per MW and price-to-book value, post offer.

At the lower end of the price band, Adani Power is valued at a P/BV of 3.4 times, a slight premium to its industry peers (average of 2.9 times).

However, at Rs 90, the market cap per MW (Rs 3 crore/ MW) is in line with the industry peers (in case of market cap/MW valuation, only projects that have attained financial closure are considered).

That suggests that at the lower end of the price band, the offer is fairly valued vis-a-vis its peers. However, as we expect higher earnings growth and ROEs in the initial years, Adani Power may be able to command premium valuations.
Business

The company plans to add 9,900 MW of generating capacity by 2013 with an ambitious 20,000 MW targeted by 2020. Most of the capacity is expected to come up in the Western region, which now has a energy deficit of 16 per cent and peak deficit of 19 per cent.

These projects are also strategically located for easy transportation of coal and water. The Mundra (Gujarat) and Thiroda (Maharashtra) projects, totalling 6,600 MW, have attained financial closure and are in various stages of execution. The remaining 3,300 MW is in the planning stages with projects at Dahej and Kawai.

Adani Power plans to invest Rs 28,369 crore to set up the entire 6,600 MW of capacity; the remaining equity portion being funded by infusion from the promoter.

While Mundra Phase I and II are expected to be fully commissioned by February 2010, Mundra Phase III and Phase IV are expected be set up by July 2011 and April 2012. The Thiroda project is expected to be commissioned by April 2012.

The company recently started commercial operations for the Mundra Unit-1 (330 MW) and reported accumulated losses of Rs 9.7 crore for the year-ended March 2009.

Given that the company has the opportunity to sell merchant power till February 2010 (when the PPA comes to effect), the company may turn cash flow positive by this year.

Dedicated transmission lines to evacuate power allow the advantage of open access. This may result in lower costs compared to other merchant and captive power plants that have to depend on state grid. The distance transmission lines covering a total of 1,596 km can be used to wheel merchant power to various purchasers.
Opportunities

At a time when execution delays owing to equipment and funding delays and fuel shortages have affected the capacity addition targets of various peers, Adani Power has established much of it as backward linkages.

It has tied up fuel linkages for the next 15 years and has also tied up PPAs with the Gujarat, Maharashtra, and Haryana electricity boards for the next 25 years.

Revenues, attributable to 72 per cent of the 6,600 MW capacity, which is expected by April 2012, have been secured through PPAs.

Adani has the flexibility to enter into merchant power agreements and short-term PPAs with companies and state utilities for the remaining 28 per cent, which may allow higher realisations and easier pass through of costs.

Recent reports, in fact, suggest that the merchant tariffs have risen to more than Rs 7 per unit in the peak season and Rs 4.5- 5 per unit for the rest of the year in the Western region due to a wider peak deficit. However, the realisations from merchant power sales may fall as State utilities manage to increase the generation capacity and reduce the cross subsidies.

According to the management, the company’s agreements to procure coal at a competitive cost of $36 per tonne will reduce the cost of power generation. The company estimates the cost of generating at Rs 1.5-1.7 per unit while the PPA realisations are expected at Rs 2.62-2.94 per unit and merchant power realisations at Rs 4.5 per unit. This could lead to higher ROEs for the projects in the initial years.

Though location in a SEZ and section 80IA status allows tax benefits, these benefits are pass-through and will allow Adani Power to quote lower tariffs going forward.

As 80 per cent of the capacity to be added will run on super-critical technology it may get carbon credit benefits as the technology is more efficient (burns less fuel).
Risks

The company has decided to rely mainly on Chinese equipment for setting up the power plants, taking the view that the waiting periods involved in sourcing indigenous equipment tend to escalate costs. There have been instances in India of power generation players facing intermittent problems with Chinese equipment.

One such instance is collapse of turbine blades in the Sagardighi thermal station in West Bengal, which caused a shutdown for over 80 days.

While these will usually be compensated by the contractor, they may create unscheduled shutdowns.

Policy changes pertaining to Indonesian mining rights poses a risk to uninterrupted fuel supply for the Mundra plant. However, this may be partly compensated by provisional supply from domestic sources which was approved for Mundra IV and Thiroda projects.

The ongoing intellectual property rights litigation between Alstom and supercritical boiler supplier- Shanghai Electricals, also bears watching as the verdict may have implications for equipment supplies to the Thiroda project.

via BL

Trent

The Tata Group’s retail business, Trent, straddles several key segments of the Indian retail landscape. It operates apparel, accessories and home furnishings store — Westside; books, music and gifting chain — Landmark; hypermarket — Star Bazaar, and value apparel store — Fashion Yatra.

At Rs 501, the stock trades at 36.6 times its trailing four quarter earnings on a standalone basis. The consolidated EPS for FY-09 is just 0.53. This valuation places Trent at a premium to its retail peers.

Trent’s reliance on the premium segment, even as its value forays are yet to deliver, and a slow rollout of expansion plans, with a cutback in discretionary spends hurting sales, may impose limitations on its growth over the near term. That suggests that Trent’s premium valuation may not be sustainable. Investors can, therefore, make the most of the current stock price run-up and book profits on their holdings in Trent.
Value biz yet to pick up

Trent’s flagship Westside and Landmark stores have a premium positioning and this segment of retailing has been hit harder by the recent slowdown than value retail. Though Trent has a foothold in the value retail segment through its hypermarket business, this format has not picked up as yet, and will still require a few quarters to contribute meaningfully to Trent’s business.

Also, for value retail to deliver, footprint has to be larger than the three stores it is operating under Star Bazaar now. With only one store till date, the same holds true for its other value foray, Fashion Yatra, which operates as a family store, offering fashion apparel, footwear and accessories.

Trent’s partnership, Tesco, inked last August too is likely to contribute only later this financial year.

With flat same-store sales in both Westside and Landmark, Trent will have to rely mainly on its value retail stores for growth.

Numbers from Trent’s retail peers suggest that the recent pick up in consumer spending too has been witnessed mainly in the value and not the premium segment.
Expansion

Trent may hold some edge over its peers when it comes to financing expansion with Rs 89 crore remaining from its July ’07 rights issue, a low leverage of 0.13 times, a positive operating cash flow where its peers are burdened by debt as a result of rapid expansion.

However, funding ability does not necessarily translate into store expansion. The company has fallen short of expansion targets, citing delays in delivery of premises by developers.

A planned store count of 28 for flagship outlet Westside for FY07 fell short by two. The succeeding year’s target of 37 has not been met even in FY-09 with the number of Westside outlets at 36. Landmark has met expansion targets, but Star Bazaar’s reach remains minimal.

In addition, Trent’s presence is restricted to Tier-I cities, which may leave it unable to capitalise on increased spending by the rural consumer.
Financial performance

Given the downturn faced across the industry, Trent posted flat sales for FY-09 over the previous year. A comparative increase in expenditure, though slight, brought operating profits down 18 per cent. However, Trent transferred its hypermarket division into a wholly-owned subsidiary in the year.

On a consolidated basis, therefore, a sales growth of 18 per cent was wiped out with a 24 per cent increase in expenditure driven by higher employee and selling expenses. Increase in depreciation cut deeper into net profits, bringing it down 97 per cent in FY-09 compared to FY-08. Returns on net worth and capital have also been on the decline from 2006.

via BL

Birla Corporation

Presence in the Central Indian market which has high demand potential, low debt on the balance-sheet that supports the company’s various capex initiatives, including power (60 MW) and cement capacity (3.4 million tonne) and other cost-cutting initiatives lend confidence to investing in the stock of Birla Corporation.

At the current price of Rs 301, the stock trades at price-to-earnings ratio of seven times trailing earnings at discount compared to peers of the same size. The company’s enterprise value per tonne is Rs 3,842, placing its valuation among the lowest in the industry.
Regional diversification

Birla Corporation, an M.P. Birla group company engaged in the production of cement, jute goods, PVC goods, auto trim parts (car interiors) and iron and steel castings derives close to 90 per cent of its revenues from the cement division. Birla Corporation operates almost similar capacities in Central, North and Eastern India with cement units in Madhya Pradesh, Uttar Pradesh, Rajasthan, and one also in West Bengal. Central India looks a promising market for cement with year-to-date (till June) despatches growth in the region of 10 per cent and yea