Dead Presidents! - India Equity Research: Jul 24, 2009

Friday, July 24, 2009

India`s largest private company Reliance Industries announced on Friday a drop of 11.53% in net profit for the quarter ended June 2009, due to substantial fall in revenues. During the quarter, the profit of the company went down to Rs 36.36 billion from Rs 41.10 billion in the same quarter previous year. The profit was below analysts` expectations. The analysts` surveyed by Bloomberg had estimated earnings of Rs 38.44 billion.

Turnover achieved for the quarter was Rs 333.09 billion reflecting a decrease of 22.6% over the corresponding period of the previous year. Decrease in prices accounted for 24.4% reduction in revenue partially offset by higher volumes which accounted for 1.8% growth in revenue, the company said.

During the period, exports were lower by 38.5% at USD 3.6 billion (Rs 174.33 billion) as against USD 6.6 billion in the corresponding period of the previous year.

Gross refining margin at USD 7.5 / bbl for the quarter ended June 30, 2009. Operating profit before other income and depreciation decreased by 3.2% from Rs 61.21 billion to Rs 59.21 billion (USD 1.2 billion).

Net operating margin for the period was higher at 17.8% as compared to 14.2% in the corresponding period of the previous year due to incremental share of Oil & Gas business, stronger petrochemical margins and base effect of lower turnover partially offset by softer margin environment in refining.

Commenting on the results, Mukesh D. Ambani, chairman and managing director, Reliance Industries said, ``Timely completion with safe and stable start up of the new SEZ refinery and the deep-water, oil and gas KG D6 block are noteworthy accomplishments. These projects will not only play a significant role in shaping the future growth at RIL but more importantly will help change the energy landscape of India and the industry globally.``

The outstanding debt as on June 30, 2009 was Rs 517.80 billion compared to Rs 534.57 billion as on March 31, 2009. Net gearing as on June 30, 2009 was 19.5% as compared to 19.2% on March 31, 2009.

RIL has cash and cash equivalents of Rs 218.27 billion. These are in fixed deposits, certificate of deposits with banks and government securities and bonds. RIL`s net debt was approximately equivalent to 1.1 times annualized PBDIT for the quarter ended June 30, 2009.

The capital expenditure towards projects including interest capitalization for the period ended June 30, 2009 was Rs 40.29 billion.

Shares of the company declined Rs 24.4, or 1.2%, to settle at Rs 2,013.75. The total volume of shares traded was 1,331,381.00 at the BSE (Friday).

Bharti Airtel, ONGC, BHEL, ITC, Maruti Suzuki, Siemens, Idea Cellular, ACC, Indian Bank, United Phosphorous, Biocon, GSPL, Zee News, Canara Bank

Bharti Airtel, ONGC, BHEL, ITC, Maruti Suzuko, Siemens, Idea Cellular, ACC, Indian Bank, United Phosphorous, Biocon, GSPL, Zee News, Canara Bank

GSPL Ltd

Adani Power IPO Review

ITC Ltd

Bharti Airtel Limited

BSE Bulk Deals to Watch - July 24 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
24/7/2009 519532 ASIAN TEA EX KAPISH CACJGING PVT. LTD S 78655 26.16
24/7/2009 512149 AVANCE TECHN VIKRAMKUMAR BABULALJI HUF B 25000 54.45
24/7/2009 512149 AVANCE TECHN DAKSHA BAI B 25000 54.45
24/7/2009 512149 AVANCE TECHN CHANDRAKANT B SHAH S 32392 54.45
24/7/2009 512149 AVANCE TECHN BHAVESH P PABARI S 50000 54.05
24/7/2009 505506 AXON INFOTEC VIDHATA PVT LTD. B 4650 13.10
24/7/2009 531682 CAT TECHNOL S V ENTERPRISES S 161230 6.68
24/7/2009 531337 CHAN GUIDE I RAKESH NEMICHAND JAIN S 35000 29.74
24/7/2009 512199 CORE PROJECT SHARAD KANTILAL SHAH B 650000 112.00
24/7/2009 512199 CORE PROJECT BARCLAYS CAPITAL MAURITIUS LIMITED S 1000000 112.00
24/7/2009 523415 COVEN COILOM ALFA FISCAL SERVICES PVT LTD B 42900 9.54
24/7/2009 523415 COVEN COILOM FOX SOFTWARE TECHNOLIES LTD S 55000 9.56
24/7/2009 523415 COVEN COILOM ASHOK KUMAR MEHTA. S 45000 9.52
24/7/2009 530571 EXPLICIT FIN SHYAM SOURABH BAHETI HUF B 18000 4.50
24/7/2009 530571 EXPLICIT FIN SUGANDEE BAHETI B 18000 4.50
24/7/2009 530571 EXPLICIT FIN M/S YASH MANAGEMENT AND SATELLITE LTD S 50100 4.50
24/7/2009 511668 FACT ENTERP JAYANTILALT SHAH B 40000 24.92
24/7/2009 511668 FACT ENTERP MANISH SHAHTILAL AJMERA S 64000 24.91
24/7/2009 509597 HARDCAS WAUD SUVA BOTHRA B 4100 284.43
24/7/2009 509597 HARDCAS WAUD APT FINANCIAL & CAP. SER. PVT LTD S 4000 285.00
24/7/2009 531387 HASTI FINANC SURESHCHAND SURANA B 30341 15.98
24/7/2009 531387 HASTI FINANC DHEERAJ K S 30399 15.98
24/7/2009 517370 INCAP LIMITE CHALLAGULLA NEELIMA B 150000 12.28
24/7/2009 517370 INCAP LIMITE ASHA PRIYA MANDAVA S 150000 12.28
24/7/2009 509684 INDIA FOILS SAINATH HERBAL CARE MARKETING P.LTD S 150000 14.85
24/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL B 38921 65.09
24/7/2009 516078 JUMBO BAG LT RUSHAB RAVJI PATEL S 38421 65.34
24/7/2009 531784 KADAMB CONST AS VANIJYA PRIVATE LIMITED B 30000 48.15
24/7/2009 531784 KADAMB CONST DINESH B SOMANI S 30000 48.15
24/7/2009 523810 KALE FILMS KIRAN SUTTAMCHAND B 500000 1.09
24/7/2009 523810 KALE FILMS SOHAN RAJ UTTAMCHAND B 500000 1.09
24/7/2009 523810 KALE FILMS MESSRS SHREEKANT PHUMBHRA S 520239 1.09
24/7/2009 523810 KALE FILMS VINTEL SECURITIES PVT LTD S 650835 1.09
24/7/2009 526263 MOLDTEK TECH HASHMUKHLAL T KANSARA B 19315 90.15
24/7/2009 526263 MOLDTEK TECH SURESH KANMAL JAJOO S 36400 89.97
24/7/2009 526263 MOLDTEK TECH HASHMUKHLAL T KANSARA S 19315 91.71
24/7/2009 511702 PARSHART INV KRUNAL GOPALDAS RANA B 35000 9.50
24/7/2009 511702 PARSHART INV MAHESH KUMAR K VIRWANI B 25000 9.55
24/7/2009 533083 RISHABHDEV JAIRAM RAMCHAND JHAMTANI B 136400 20.39
24/7/2009 505141 SCOOTERS IND ZAVERCHANDM CHHEDA S 10407 22.50
24/7/2009 512048 SPLASH MEDIA SUVIDHA SECURITIES PVT LTD B 6958 104.00
24/7/2009 512048 SPLASH MEDIA AMARDEEP KADAM B 10000 99.05
24/7/2009 512048 SPLASH MEDIA NITINT KATWA S 12200 99.06
24/7/2009 512048 SPLASH MEDIA PACIFIC CORPORATE SERVICES LTD S 6708 104.00
24/7/2009 530611 STURDY INDS KINOFOLK INDUSTRIES LTD. B 82670 30.37
24/7/2009 526133 SUPERTEX IND HARISH RATILAL SHAH B 53092 59.17
24/7/2009 526133 SUPERTEX IND ARCHI STEEL WIRES PVT.LTD. B 50000 59.35
24/7/2009 526133 SUPERTEX IND HARISH RATILAL SHAH S 53027 59.34
24/7/2009 526133 SUPERTEX IND KUMKUM STOCK BROKER PVT LTD S 56070 58.53
24/7/2009 590093 TRIMURTHI DR DHIRAJLAL V SANGHVI HUF B 56850 26.81
24/7/2009 590093 TRIMURTHI DR VIJIT SHARES AND COMMODITIES PVT LTD S 38057 26.37
24/7/2009 503657 VEER ENERGY MAHESH CHAND RELA B 13311 278.51
24/7/2009 503657 VEER ENERGY JAGDISH PRASAD SHARMA B 13350 278.64
24/7/2009 503657 VEER ENERGY MANNALAL JAIN JITENDRA B 13350 278.50
24/7/2009 503657 VEER ENERGY MAHESH CHAND RELA S 13311 278.64
24/7/2009 503657 VEER ENERGY JAGDISH PRASAD SHARMA S 13350 278.51
24/7/2009 503657 VEER ENERGY MANNALAL JAIN JITENDRA S 13350 278.49
24/7/2009 531249 WELL PACK PA HEMANT MADHUSUDAN SHETH S 44112 162.31

NSE Bulk Deals to Watch - July 24 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
24-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,BUY,250991,991.04,-
24-JUL-2009,EDSERV,Edserv Softsystems Limite,RAVI SHANKARAN,BUY,75846,44.65,-
24-JUL-2009,EDSERV,Edserv Softsystems Limite,SETU SECURITIES LTD,BUY,72352,44.70,-
24-JUL-2009,FSL,Firstsource Solutions Lim,JAYPEE CAPITAL SERVICES LTD.,BUY,3347747,25.24,-
24-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,11270942,22.62,-
24-JUL-2009,ORBITCORP,Orbit Corporation Limited,BP FINTRADE PRIVATE LIMITED,BUY,203702,173.38,-
24-JUL-2009,SRF,SRF Ltd.,VIVEK LAKSHMINATH MEHROTRA,BUY,5000,131.02,-
24-JUL-2009,ABAN,Aban Offshore Ltd.,C D INTEGRATED SERVICES LTD.,SELL,250991,991.51,-
24-JUL-2009,BANKRAJAS,Bank Of Rajasthan Ltd,Copthall Mauritius Investment Ltd,SELL,1400000,55.26,-
24-JUL-2009,EDSERV,Edserv Softsystems Limite,SETU SECURITIES LTD,SELL,59632,44.57,-
24-JUL-2009,FSL,Firstsource Solutions Lim,JAYPEE CAPITAL SERVICES LTD.,SELL,3306258,25.24,-
24-JUL-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11236962,22.64,-
24-JUL-2009,ORBITCORP,Orbit Corporation Limited,BP FINTRADE PRIVATE LIMITED,SELL,195730,173.69,-
24-JUL-2009,RENUKA,Shree Renuka Sugars Limit,JANUS INVESTMENT FUND,SELL,1605000,150.43,-
24-JUL-2009,SHOPERSTOP,Shopper?s Stop Limited,FIDELITY INVESTMENT TRUST FIDELITY EMERGING MARKETS FUND,SELL,267660,195.49,-
24-JUL-2009,SRF,SRF Ltd.,VIVEK LAKSHMINATH MEHROTRA,SELL,360169,130.04,-

Daily Market Review - July 24 2009

Post Session Commentary - July 24 2009

Domestic market concluded its volatile journey in green terrain on significant buying interest led by firm global cues. Asian markets ended with gains and European markets reversed early losses. In addition, US index futures also turned positive and contributed to the upswing in key benchmark indices. Meanwhile, the first quarter results of current financial year announced so far are encouraging, with lower costs helping in positive attitude. However, market consolidated in afternoon trade before gathering momentum again. BSE Sensex ended above 15,350 level and NSE Nifty closed above 4,550 mark.

Market extended its yesterday’s gains and witnessed gap up opening as global market sentiments continue to rise. The Asian markets were trading in upward direction in early trade and US markets opened significantly higher on Thursday with the Dow Jones crossed above the 9000 mark for the first time since January this year. Additionally, the S&P 500 finished at its highest point since November. This rally was backed by a large batch of better-than-expected earnings results from industry heavyweights followed by better home sales data that sent all three major indices to their best levels in months. Further, Indian benchmark indices turned volatile soon after start as investors booked some profits after a spectacular rally in the previous session. Market slipped from the day’s high as key stocks were facing selling pressure at higher levels. However, during second half of the trading market regained strength and extended gains till end on earning outlook. From the sectoral front, most of the buying was seen in Auto, Realty, Metal, Consumer Durable, IT, Teck, Power, Capital Goods and FMCG stocks. BSE Mid Cap and BSE Small Cap indices also witnessed buying during the trading. However, Bank stocks remain out of favour.

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 1782 stocks closed in green while 897 stocks closed in red and 85 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 147.92 points or (0.97%) at 15,378.96 and NSE Nifty ended up by 44.80 points or (0.99%) at 4,568.55. BSE Mid Caps and Small Caps closed with gains 88.44 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.

Gainers from the BSE Sensex pack are Tata Motors (9.72%), DLF Ltd (6.49%), Maruti Suzuki (6.35%), Tata Steel (6.06%), JP Associates (5.16%), Herohonda Motors (4.19%), M&M Ltd (3.62%), Hindalco (3.31%), Sterlite Industries (3.20%), ONGC Ltd (3.05%), Tata Power (2.44%), Infosys Tech (2.22%) and HUL (2.17%).

Losers from the BSE Sensex pack are Bharti Airtel (48.95%), Sun Pharma (2.21%), HDFC (1.65%), SBI (1.59%) and Reliance (1.20%).

On the global markets front the Asian markets that opened before the Indian market, ended higher for a ninth day mainly on South Korean rise. South Korea’s gross domestic product rose 2.3% from the first quarter, when the nation evaded a recession by growing 0.1%. Shanghai Composite, Hang Seng, Nikkei 225, Straits Times and Seoul Composite ended up by 44.11, 165.09, 151.61, 48.53 and 6.10 points at 3,372.60, 19,982.79, 9,944.55, 2,533.43 and 1,502.59 respectively.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading up by 40.53 points at 5,287.81 and in London FTSE 100 is trading higher by 28.19 points at 4,587.99.

The BSE Auto index advanced by (5.14%) or 271.07 points at 5,545.30 on better-than-expected first quarter results from auto major Maruti Suzuki India yesterday. Scrips that gained are Bharat Forge (14.06%), Amtek Auto (10.85%), Tata Motors (9.72%), MRF Ltd (8.77%) and Ashok Leyland (8.48%).

The BSE Realty index surged (4.26%) or 154.96 points at 3,790.65. Pheonix Mill (11.69%), Ansal Infra (9.67%), Parsvnath (7.86%), DLF Ltd (6.49%) and Anant Raj (5.67%) closed in positive territory.

The BSE Metal stocks gained (2.39%) or 282.59 points to close at 12,118.27 as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1.29% overnight. Major gainers are Tata Steel (6.06%), Jindal Saw (5.89%), Hindalco (3.31%), Sterlite Industries (3.20%) and Jindal Steel (2.71%).

The BSE Consumer Durable closed higher by (2.37%) or 72.82 points at 3,139.03. Videocon Ind (7.26%), Blue Star L (2.7%), Rajesh Export (1.86%), Gitanjali GE (0.4%) and Titan Ind (0.2%) ended in green territory.

The BSE IT index ended up by (1.93%) or 71.45 points at 3,778.67. Gainers are NIIT Ltd (10.68%), Aptech Ltd (4.41%), HCL Ltd (4.32%), Mphasis Ltd (2.80%) and Infosys Tech (2.22%).

The BSE Teck index went up by (1.93%) or 71.45 points to close at 3,778.67. Main gainers are NIIT Ltd (10.68%), Aptech Ltd (4.41%), HCL Ltd (4.32%), Mphasis Ltd (2.80%) and Infosys Tech (2.22%).

The BSE Bank index decreased by (0.88%) or 74.06 points to close at 8,335.02. Main losers are Union Bank (4.97%), Bank of India (2.69%), PNB (2.54%), SBI (1.59%) and ICICI Bank (1.04%).

Tata Motors advanced by 9.72% after its American depository receipt (ADR) advanced 3.49% on Thursday, 23 July 2009.

Infosys Technologies Ltd. gained 2.22%. The company has won a contract to design, develop and support portal for the ministry of commerce and industry. The duration of the contract is 10 years. The stock is up by (0.64%) at Rs.1,955.40.

Bharat Forge Ltd is ended up by 14.06%. The company has posted a net profit of Rs 9.60 million for the quarter ended June 30, 2009 as compared to Rs 265.60 million for the quarter ended June 30, 2008. Total Income has decreased from Rs 6494.50 million for the quarter ended June 30, 2008 to Rs 3638.20 million for the quarter ended June 30, 2009.

Essel Propack Ltd spurted 4.94% after the company posted net profit of Rs 5.24 crore in Q2 June 2009 as against net loss of Rs 9.75 crore in Q2 June 2008, on a consolidated basis.

Gujarat State Petronet Ltd zoomed 5.15% after net profit increased phenomenally 146.6% to Rs. 80.49 crore on a 76.4% rise in sales to Rs. 210.82 crore in Q1 June 2009 over Q1 June 2008.

Ambuja Cements Ltd plunged 1.96% after net profit sunk 43.74% to Rs 324.65 crore in Q2 June 2009 over Q2 June 2008.

Alstom Projects India Ltd dropped 0.47% despite its net profit increased phenomenally 100.60% to Rs. 38.75 crore in Q1 June 2009 compared to Q1 June 2008.

Auto steel the show

Despite mixed signals from Asian markets, the Sensex was 41 points up at 9035 at opening bell. While the mood remained upbeat on strong buying in auto and realty stocks, the rally gathered steam in afternoon trades, as the Sensex touched the high of 15419. However, the Sensex failed to sustain its gains, as a sharp bout of profit taking pushed the index below 15200 mark to an intra-day low of 15169. Later in the day, the firm opening in European markets and sustained buying in select heavy weights, auto and realty stocks turned the tide and the Sensex entered into positive territory again. But, the index remained range-bound though with a positive bias thereafter due to some profit booking at higher levels and lack of buying interest. The Sensex closed the session 148 points up at 15379 and the broader Nifty ended 45 points higher at 4569.

The market breadth, the number of advancing shares to declining shares, was positive. For every falling share on the BSE there were almost two shares that rose. Of the 13 sectors, only banking sector was negative. BSE Auto, the auto index, led the list of gaining sectoral indices rising by 5.14% for the day followed by BSE Realty that added 4.26% and BSE Metal that advanced 2.39%. BSE CD moved up 2.37%, BSE IT gained 1.93% and BSE Teck advanced 1.87%. The remaining indices gained nearly 1% each.

Among major gainers, Tata Motors flared up 9.72% to Rs373.50, DLF added 6.49% to trade at Rs393.65, Maruti Suzuki India shot up by 6.35% toRs1 377.85, Tata Steel flared up 6.06% to Rs439.90, JP Associates moved up 5.16% to Rs241.50, Hero Honda advanced 4.19% to Rs1735.60, Mahindra & Mahindra scaled up 3.62% to Rs830.85 and Hindalco surged 3.31% at Rs93.70. However, Sun Pharmaceutical Industries slipped 2.21% to Rs1,245.95 and HDFC shed 1.65% at Rs2,412.05. State Bank of India, Reliance Industries, ACC, ICICI Bank and HDFC Bank booked marginal losses.

Mahindra Satyam was the most actively traded share with over 3.37 crore shares changing hands on BSE followed by Suzlon Energy (3.27 crore shares), Unitech (2.29 crore shares), Ispat Industries (2.23 crore shares) and Firstsource Solutions (1.91 crore shares)

RIL July 2009 futures at premium

Turnover decreases

Nifty July 2009 futures were at 4578, at a premium of 9.45 points as compared to the spot closing of 4568.55. Turnover in NSE's futures & options (F&O) segment was Rs 72,581.23 crore, lower than Rs 74,885.56 crore on Thursday, 23 July 2009.

Reliance Industries (RIL) July 2009 futures were at premium at 2023.10 compared to the spot closing of 2016.85.

Jaiprakash Associates July 2009 futures were at premium at 243.90 compared to the spot closing of 241.65.

Suzlon Energy July 2009 futures were at premium at 104 compared to the spot closing of 103.35.

In the cash market, the S&P CNX Nifty gained 44.8 points or 0.99% at 4568.55.

Market may remain volatile ahead of F&O expiry

Equities may remain volatile next 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. Profit taking cannot be ruled out after a recent sharp surge in share prices triggered by firm global cues and encouraging Q1 results of India Inc. Improvement in India's annual monsoon rains in July 2009 augurs well for companies in the fertilizers, agrochemicals, automobiles, and fast moving consumer goods sectors.

Investors will keenly watch the remaining Q1 June 2009 result of India Inc for further cues on the health of the corporate sector. The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottom-line growth. The combined net profit of 451 companies rose 17.4% to Rs 30691 crore on 5.5% growth in sales to Rs 2,02,529 crore in Q1 June 2009 over Q1 June 2008.

India's largest private sector bank by operating income ICICI Bank will announce its Q1 June 2009 result on Saturday, 25 July 2009. Tata Motors, Reliance Infrastructure, State Bank of India, Reliance Communications, NTPC, Hindustan Unilever, Tata Steel, DLF, Mahindra & Mahindra and Hindalco Industries, will announce their quarter ended June 2009 result next week.

Among non-Sensex stocks, Shasun Chemicals, Bank of India, Ispat Industries, Punj Lloyd, Karnataka Bank, Balrampur Chini, Bank of Baroda, Mic Electronics, Dena Bank, Vijaya Bank, among others, will announce their quarter ended June 2009 result next week.

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. Higher rainfall filled up India's main reservoirs to 23% of capacity in the past week up from 14% a week ago, helping hydropower supply, which accounts for a quarter of India's total generation capacity. Total rainfall since the beginning of June 2009 was 19% below average, improving from a 27% deficit in the previous week, the India Meteorological Department on 23 July 2009. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Investors will keenly watch for any surprises in central bank's monetary policy review on Tuesday, 28 July 2009. The central bank is likely to keep rates on hold at its policy review on Tuesday. The Reserve Bank of India (RBI) 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.

Government's stimulus measures late last year to counter slowdown in domestic economy have started to bear fruits. The latest economic data indicated improving economic activity. The six infrastructure industries -- crude oil, refining, coal, electricity, cement and steel -- together grew at an annual rate of 6.5% in June 2009, faster than the previous month's rise of 2.8%, data showed on Thursday, 23 July 2009. The infrastructure sector accounts for 26.7% of India's industrial output.

Inflation based on the wholesale price index declined 1.17% in the year through 11 July 2009, compared to previous week's fall of 1.21%, data released by the government showed on Thursday, 23 July 2009.

The market will closely watch global stocks which jumped to multi month highs on signs of revival in global economy. US stocks surged sending the Dow Industrials above the key 9,000 mark for the first time in seven months as strong corporate profits and rebounding US home sales spurred optimism about the economy. Sales of US existing homes rose for the third consecutive month in June 2009 by 3.6% to an annual rate of 4.89 million, up from 4.77 million in May 2009, the National Association of Realtors (NAR) said on Thursday, 23 July 2009.

Sensex jumps 4.3% on good Q1 results, signs of pick up in economy

Key benchmark indices surged extending strong gains in the preceding week as encouraging Q1 June 2009 results, sings of pick up in the economy, revival of monsoon and firm global markets lifted sentiment. The market hit highest level in more than a month. The market rose in three out of five trading sessions in the week.

The BSE Sensex rose 634.04 points or 4.3% to 15,378.96 in the week ended Friday, 24 July 2009. The S&P CNX Nifty gained 193.60 points or 4.42% to 4,568.55.

The BSE Mid-Cap index jumped 276.22 points or 5.41% to 5,381.81 in the week. The BSE Small-Cap index rose 369.30 points or 6.5% to 6,050.20.

The Q1 June 2009 results announced so far were encouraging, with lower costs helping bottom-line growth. The combined net profit of 473 companies rose 17.40% to Rs 30972 crore on 5.4% growth in sales to Rs 206373 crore in Q1 June 2009 over Q1 June 2008.

India's 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, the latest economic data indicated improving economic activity. The six infrastructure industries -- crude oil, refining, coal, electricity, cement and steel -- together grew at an annual rate of 6.5% in June 2009, faster than the previous month's rise of 2.8%, data showed on Thursday, 23 July 2009. The infrastructure sector accounts for 26.7% of India's industrial output.

Inflation measured by the wholesale price index (WPI) declined 1.17% in the 12 months to 11 July 2009, as compared with previous week's annual decline of 1.21%, government data showed on Thursday, 23 July 2009.

Global stocks jumped to multi month highs on signs of revival in global economy. US stocks surged sending the Dow Industrials above the key 9,000 mark for the first time in seven months as strong corporate profits and rebounding US home sales spurred optimism about the economy.

Buying by foreign funds has helped Indian market clock strong gains. The Sensex is up 5,731.65 points or 59.41% in calendar year 2009 as on 24 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,218.56 points or 88.45% as on 24 July 2009.

Purchases of Indian stocks by foreign institutional investors (FII) totaled Rs 7,279.50 crore in July 2009 (till 23 July 2009). FIIs had bought stocks worth a net Rs 3,224.90 crore in June 2009. FII inflow in calendar year 2009 totaled Rs 31,823.70 crore (till 23 July 2009).

Trading for the week began on a buoyant note. The BSE 30-share 446.09 points or 3.03% to 15,191.01 on Monday, 20 July 2009. But the key benchmark indices fell in volatile trade on Tuesday, 21 July 2009 as profit booking emerged after a recent solid surge. The BSE 30-share Sensex fell 128.52 points or 0.85% at 15,062.49

The key benchmark indices dropped for the second straight day on Wednesday, 22 July 2009, reversing intraday 2% gains, as investors booked profits after recent sharp rally. The BSE 30-share Sensex slipped 219.37 points or 1.46% at 14,843.12.

Key benchmark indices rallied on Thursday, 23 July 2009, snapping losses in the preceding two trading sessions, on stellar Q1 June 2009 earnings from some Sensex stocks and positive economic data during trading hours. The BSE 30-share Sensex jumped 387.92 points or 2.61% to 15,231.04 on that day.

The market extended gains for Friday, 24 July 2009 on firm global stocks. The BSE 30-share Sensex rose 147.92 points or 0.97% to 15,378.96 on . Auto, realty and metal shares logged smart gains. However banking shares faltered ahead of quarterly monetary policy review meet on 27 July 2009.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 4.16% to Rs 2,013.75 in the week ahead of its Q1 June 2009 results. After trading hours on Friday, 24 July 2009, RIL reported 11.53% fall in net profit to Rs Rs 3636 crore on 21.64% decline in total income to Rs 32757 crore in Q1 June 2009 over Q1 June 2008

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. The government, however, has said that the country's interest must be taken into consideration first and that cannot be held to ransom by a dispute between two industrialists or a previous, private pact between them.

India's largest steel maker by sales Tata Steel jumped 12.01%. The company raised $500 million by issue of global depository receipts (GDR) priced each GDR at $7.644. Each GDR issue represents one underlying equity share. The issue will result in equity dilution of nearly 9%. The company will use the funds for expansion projects.

India's largest dedicated housing finance company by sales, HDFC fell 4.13%. The lender's net profit rose 20.68% to Rs 564.92 crore on 22.86% rise total income to Rs 2,849.07 crore in Q1 June 2009 over Q1 June 2008. The company announced its result during late trade on Wednesday, 22 July 2009.

HDFC has reportedly cut lending rates for new customers by 25-50 basis points. The financial institution has restructured its loan baskets to create a new product where loans up to Rs 15 lakh are available at 8.75% as against 9.25% earlier.

India's largest electric equipment maker by sales Bharat Heavy Electricals (BHEL) fell 1.11%. The company's net profit rose 22.41% to Rs 470.59 crore on 27.64% rise in total income to Rs 5,898.51 crore in Q1 June 2009 over Q1 June 2008. Bhel outstanding order book stood at Rs 1,24,000 crore. The company announced the result during market hours on Wednesday.

India's third largest IT exporter by sales Wipro rose 6.99%. Wipro's consolidated net profit as per Indian accounting rules rose 0.54% to Rs 1015.50 crore on 2.5% fall in sales to Rs 6289.10 crore in Q1 June 2009 over Q4 March 2009. The company announced the results before trading hours on Wednesday.

Wipro expects 0.91% to 1.9% growth in consolidated revenue from IT Services at between $1035 million to $1053 million in Q2 September 2009 over Q1 June 2009. The guidance is based on constant currency exchange rates.

India's largest IT firm by sales Infosys fell 1.23%. The government has launched a Government-to-Business (G2B) services e-biz project with Infosys as the technology partner. The project is among the 27 Central, State and Integrated Mission Mode Projects (MMPs) under the National E-Governance Plan (NEGP).

India's largest IT exporter by sales TCS jumped 11.13%. The company's net profit rose 15.27% to Rs 1276.44 crore on 0.12% fall in sales to Rs 5609.60 crore in Q1 June 2009 over Q4 March 2009. The company announced result after trading hours on 17 July 2009.

Tata Power 2.17% in the week. The company during trading hours on Wednesday 22 July 2009, said strong response for its 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.

India's top small car maker by sales Maruti Suzuki India shot up 16.28%. The company's net profit rose 25.26% to Rs 583.54 crore on a 31.01% increase in total income to Rs 6709.53 crore in Q1 June 2009 over Q1 June 2008. The stock hit a record high of Rs 1397.50 in intra-day on Friday, 24 July 2009. The result was announced during trading hours on Thursday, 23 July 2009.

India's largest cement manufacturer by sales ACC vaulted 4.15%. The company's net profit soared 79% to Rs 485.61 crore on a 15.32% increase in total income to Rs 2138.24 crore in Q2 June 2009 over Q2 June 2008. The results were declared during trading hours on Thursday, 23 July 2009.

India's top cigarette maker by sales ITC gained 0.7%. The company's net profit rose 17.38% to Rs 878.80 crore on 5.14% rise in total income rose to Rs 4220.49 crore in Q1 June 2009 over Q1 June 2008. The results were unveiled during trading hours on Thursday, 23 July 2009.

India's second largest listed cellular services provider by sales Reliance Communications (RCom) gained 1.15%. The company has bagged a Rs 10,000-crore telecom infrastructure outsourcing deal from new entrant Etisalat DB Telecom (formerly Swan Telecom). The deal, which includes both towers and transmission, is spread over a 10-year period. The company made this announcement during market hours on Wednesday, 22 July 2009.

Auto, realty, metal shares rally as market extends gains for the second day in a row

Key benchmark indices surged, extending Thursday (23 July 2009)'s 2.61% rally as encouraging Q1 June 2009 results, signs of pick up in the economy, revival of monsoon and firm global markets, lifted sentiment. The BSE 30-share Sensex gained 147.92 points or 0.97% to 15,378.96, off 39.65 points from the day's high, and 210.44 up points from the day's low. The barometer index today struck its highest level in more than a month. But volatility was high.

The BSE Sensex advanced 634.04 points or 4.3% in the week ended Friday, 24 July 2009 extending previous week's 9.19% surge.

Coming back to today's trade, auto, realty and metal shares logged smart gains. However banking shares faltered ahead of quarterly monetary policy review meet on Tuesday, 27 July 2009. Among stock specific action, auto pivotals Tata Motors and Maruti Suzuki surged. ONGC and Infosys also logged decent gains.

Volatility was high. The market slipped into the red soon after an early surge triggered by rally in US stocks on Thursday, 23 July 2009. The market regained positive zone shortly. The market lost ground once again with the Sensex hitting intraday low in early afternoon trade. It once again regained positive zone later. The market surged in mid-afternoon trade as European stocks rose.

A string of robust corporate earnings along with rallying global markets had helped the BSE Sensex regain the 15,000 mark on Thursday with a 2.61% surge.

The Q1 June 2009 results announced so far have encouraging, with lower costs helping bottomline growth. The combined net profit of 473 companies rose 17.40% to Rs 30972 crore on 5.4% growth in sales to Rs 206373 crore in Q1 June 2009 over Q1 June 2008.

European markets advanced today, 24 July 2009, reversed initial losses on improved economic data in the euro zone. Key benchmark indices in UK, Germany and France were up by between 0.08% and 0.63%.

The Markit euro-zone composite purchasing managers index rose to a 10-month high of 46.8 in July 2009, up form 44.6 in June 2009, according to data released Friday, 24 July 2009. Economists had expected a more modest rise to 45.3. A reading of less than 50 means a majority of managers saw a contraction in activity, while a reading of more than 50 signals expansion.

The Ifo Institute's German business climate index rose to 87.3 in July 2009, up from 85.9 in June 2009. That was better than the 86.5 reading that economists had forecast.

But data in UK was weak. Britain's economy shrank in the second quarter to register its biggest annual decline since comparable records began in 1955, official data showed on Friday, 24 July 2009. The Office for National Statistics said GDP fell by 0.8% on the quarter, taking the annual decline to 5.6%. GDP dropped 2.4% in the first quarter.

Asian markets extended gains for the ninth straight session today, 24 July 2009 on overnight gain in US stocks and after South Korea's economy grew at the fastest pace in almost six years. Key benchmark indices in Hong Kong, China, Singapore, South Korea and Japan rose by between 0.41% and 1.95%. However Taiwan's Taiwan Weighted index slipped 0.11%.

South Korea's economy grew at the fastest pace in more than five years in the second quarter from the previous quarter, adding to hopes that the recovery in Asia's fourth-largest economy is sustainable. Gross domestic product in the three months ended June 2009 rose a seasonally adjusted 2.3%, accelerating from a revised 0.1% gain in gross domestic product in the first quarter, a central bank estimate showed on Friday, 24 July 2009.

Meanwhile, the Asian Development Bank (ADB) said on Thursday, 23 July 2009 that emerging East Asia has entered the transition from recession to a possible V-shaped recovery, but policymakers must maintain monetary expansionary policies as risks remain. Growth could dip sharply in 2009 before regaining last year's pace in 2010, ADB said.

Trading in US index futures showed the Dow could rise 21 points at the opening bell on Friday, 24 July 2009. Dow futures were in red earlier in the day.

US markets surged on Thursday, 23 July 2009 sending the Dow Industrials above the key 9,000 mark for the first time in seven months as strong corporate profits and rebounding home sales spurred optimism about the economy.

The Dow gained 188.03 points, or 2.12%, to 9,069.29. The S&P 500 index rose 22.22 points, or 2.33%, to 976.29. The Nasdaq Composite Index rose 47.22 points, or 2.45%, to 1,973.60.

In economic data, sales of US existing homes rose for the third consecutive month in June 2009 by 3.6% to an annual rate of 4.89 million, up from 4.77 million in May 2009, the National Association of Realtors (NAR) said on Thursday, 23 July 2009.

New claims for US unemployment benefits jumped last week, as employers cut payrolls to cope with the severe recession, government data showed Thursday, 23 July 2009. The Labor Department said first-time claims for unemployment insurance benefits rose to a seasonally adjusted 554,000 in the week ended 18 July 2009, after a revised 524,000 in the preceding week.

Closer home, 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.

In a move that my boost sentiment, foreign institutional investors (FIIs) and the non-resident Indians (NRIs) were allowed to invest in Indian Depository Receipts (IDR), according to the operational guidelines issued by the Reserve Bank of India on Wednesday, 22 July 2009. FIIs, including the Securities & Exchange Board of India (Sebi) approved sub-accounts of the FIIs registered with Sebi and NRIs may invest, purchase, hold and transfer IDRs of eligible companies resident outside India and issued in the Indian capital market, subject to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000.

Meanwhile, the latest economic data indicated improving economic activity. The six infrastructure industries -- crude oil, refining, coal, electricity, cement and steel -- together grew at an annual rate of 6.5% in June 2009, faster than the previous month's rise of 2.8%, data showed on Thursday, 23 July 2009. The infrastructure sector accounts for 26.7% of India's industrial output.

Inflation measured by the wholesale price index (WPI) declined 1.17% in the 12 months to 11 July 2009, as compared with previous week's annual decline of 1.21%, government data showed on Thursday, 23 July 2009.

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.

The BSE 30-share Sensex was up 147.92 points or 0.97% to 15,378.96, its highest close since 11 June 2009. The Sensex opened 40.97 points higher at 15,272.01. The Sensex rose 187.57 points at the day's high of 15,418.61 in early trade, its highest level since 12 June 2009. The Sensex lost 62.52 points at the day's low of 15,168.52 in early afternoon trade.

The S&P CNX Nifty was up 44.80 points or 0.99% to 4,568.55, its highest closing since 12 June 2009. Nifty July 2009 futures were at 4578, at a premium of 9.45 points as compared to the spot closing.

The Sensex is up 5,731.65 points or 59.41% in calendar year 2009 as on 24 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,218.56 points or 88.45% as on 24 July 2009.

Coming back to today's trade, turnover in NSE's futures & options (F&O) segment was Rs 72,581.23 crore, lower than Rs 74,885.56 crore on Thursday, 23 July 2009. The BSE clocked a turnover of Rs 6815 crore, much lower than Rs 8078 crore on Thursday, 23 July 2009

The market breadth, indicating the overall health of the market, was strong. On BSE, 1773 shares advanced as compared with 923 that declined. 89 shares remained unchanged.

The BSE Mid-cap index gained 1.67% to 5,381.81 and BSE Small-cap index rose 1.81% to 6,050.20. Both these indices outperformed the Sensex

The BSE Realty index (up 4.26%), the BSE Consumer Durables index (up 2.37%), the BSE Auto index (up 5.14%), BSE Capital Goods index (up 1.49%), the BSE Power index (up 1.66%), the BSE IT index (up 1.93%), the BSE TECk index (up 1.87%), the BSE FMCG index (up 1.28%), the BSE Metal index (up 2.39%), outperformed the Sensex.

The BSE PSU index (up 0.42%), the BSE Healthcare index (up 0.53%), the BSE Oil & Gas index (up 0.06%), the BSE Bankex (down 0.88%), underperformed the Sensex.

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

Auto stocks were the star performers of the day, with the BSE Auto index gaining over 5%, the most among sectoral indices on BSE, helped by a better-than-expected Q1 results from auto major Maruti Suzuki India during trading hours on Thursday. Shares of India's top small car maker by sales shot up 6.38% to Rs 1378 after striking a record high of Rs 1397.50 in intra-day today, 24 July 2009. The stock extended yesterday's 6.71% surge. Net profit jumped 25.26% to Rs 583.54 crore on a 31.01% increase in total income to Rs 6709.53 crore in Q1 June 2009 over Q1 June 2008.

Strong Maruti results boosted sentiment for other auto shares. India's top truck marker by sales Tata Motors soared 8.65% to Rs 369.80 after its American depository receipt (ADR) advanced 3.49% on Thursday, 23 July 2009. Meanwhile Tata Motors is reportedly conducting a feasibility study to sell its cars in Indonesia. It was the top gainer from the Sensex pack. The company will unveil its Q1 June 2009 results on 27 July 2009.

India's top tractor maker by sales Mahindra & Mahindra gained 3.64% ahead of its Q1 results on 30 July 2009. India's second largest bike manufacturer by sales Bajaj Auto rose 1.28% and India's largest bike manufacturer by sales Hero Honda Motors rose 3.86%

Ashok Leyland climbed 8.48% ahead of its Q1 June 2009 results to be announced on Monday, 27 July 2009.

Rally in auto counters spilled over to auto components manufacturers as their fortunes are closely linked to the performance of auto companies. Rico India (up 19.89%), Munjal Auto (up 13.36%), Munjal Showa (up 8.41%), Automotive Axles (up 10.71%), Bosch (up 2.97%), Amtek Auto (up 13.78%), and Subros (up 6.13%) edged higher.

Bharat Forge jumped 13.59% after the company expressed positive outlook for the future at the time of announcing Q1 June 2009 results. Bharat Forge's net profit tumbled 96.39% to Rs 0.96 crore on 43.98% fall in total income to Rs 363.82 crore in Q1 June 2009 over Q1 June 2008. The company announced the results before trading hours today, 24 July 2009.

Commenting on the results, Mr B N Kalyani chairman and managing director (CMD) of the company said the automotive industry in India has started showing early signs of recovery which is likely to strengthen in the coming quarters while the volumes in the US and European market are starting to stabilize at lower levels. Going forward, the company expects, this would translate into improved off-take for components, he added.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) lost 1.38% to Rs 2010. The stock moved in a band of Rs 2064.90 and 1985.20 in the day. The company's net profit fell 11.53% to Rs Rs 3636 crore on 21.64% decline in total income to Rs 32757 crore in Q1 June 2009 over Q1 June 2008. The results were unveiled after market hours today, 24 July 2009.

India's largest state-run oil explorer by market capitalisation ONGC galloped 3.41% to Rs 1130.10, rebounding sharply from day's low of Rs 1073.10. The company reported a 26.9% fall in net profit to Rs 4847.92 crore on a 25.8% decline in sales to Rs 14879.27 crore in Q1 June 2009 over Q1 June 2008. The results unveiled after market hours on Thursday, 23 July 2009, beat market expectations.

Deep Industries gained 4.95% after net profit rose 33.13% to Rs 2.17 crore on 83.09% rise in net sales to Rs 11.15 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after market hours on Thursday, 23 July 2009.

Gujarat State Petronet galloped 4.28% after net profit surged 146.6% to Rs 80.49 crore on a 76.4% rise in sales to Rs 210.82 crore in Q1 June 2009 over Q1 June 2008. The results were announced after market hours yesterday, 23 July 2009.

Metal stocks extended gains for the second day as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1.29% on Thursday, 23 July 2009. Hindalco Industries (up 3.75%), JSW Steel (up 1.40%), Tata Steel (up 6.15%), Hindustan Zinc (up 0.30%) rose.

India's largest private sector copper marker by sales Sterlite Industries surged 2.77% after a near 7% rally in its American depository receipt (ADR) on Thursday, 23 July 2009.

National Alumnium Company rose 1.52% on reports it has hiked aluminium prices by Rs 5,000 a tonne or 5%.

Realty stocks rose on the government's thrust on the housing sector in the Union Budget 2009-10. DLF (up 6.53%), Unitech (up 2.78%), Housing Development & Infrastructure (up 4.30%), Parsvnath Developers (up 7.61%), Omaxe (up 6.04%), and Ackruti City (up 4.15%), advanced.

IT stocks rose on reports 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 shot up 2%. India's third largest IT exporter by sales Wipro rose 0.60%. On 22 July 2009, Wipro announced better-than-expected Q1 results. India's largest IT exporter by sales TCS gained 1.51%. On 17 July 2009, TCS announced Q1 results that beat market expectations.

India's largest pharma company by sales Ranbaxy Laboratories rose 1.68%. The company's net profit jumped 2747.59% to Rs 675.45 crore on 12.98% fall in total income to Rs 1121.58 crore in Q2 June 2009 over Q2 June 2008. The results were declared after market hours today, 24 July 2009

India's largest pharma company by market capitalisation Sun Pharma shed 1.89% to Rs 1250. On Wednesday, 22 July 2009 investors in the US initiated a lawsuit seeking class action status against Sun Pharma's US subsidiary Caraco Pharmaceutical in the United States District Court. It was the top loser from the Sensex pack

On June 25, the US FDA had announced seizure of drug products from the company's three facilities in Michigan at Detroit, Farmington Hills and Wixom. Upto 33 different drugs were seized and the US FDA banned Caraco from manufacturing and selling these drugs in the US until there is assurance that the firm complies with manufacturing standards. The action followed Caraco's continued failure to meet the US FDA's current good manufacturing practices (cGMP) requirements

India's top cigarette maker by sales ITC rose 0.33% extending yesterday's 5.39% surge after its net profit rose 17.38% to Rs 878.80 crore on 5.14% rise in total income rose to Rs 4220.49 crore in Q1 June 2009 over Q1 June 2008. The results were unveiled during trading hours today, 23 July 2009

Banking shares were subdued ahead of the Reserve Bank of India's (RBI) quarterly monetary policy review meet on Tuesday, 28 July 2009. India's largest private sector bank by net profit ICICI Bank slipped 1.28% to Rs 765, after touching day's high of Rs 794.80. India's second largest private sector bank in terms of operating income HDFC Bank lost 0.55% to Rs 1448, off day's high of Rs 1470.50

India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.50% to Rs 1699.95 after striking day's high of Rs 1749.80. Finance secretary Ashok Chawla said on 22 July 2009 that the Centre will seek Cabinet approval to dilute government stake in the state-run bank.

India's largest dedicated housing finance company by sales, HDFC shed 1.36% to Rs 2402.20 on profit booking after recent strong gains. The finance firm reported 20.68% rise in net profit to Rs 564.92 crore on 22.86% rise total income to Rs 2,849.07 crore in Q1 June 2009 over Q1 June 2008. The lender announced its result during late trade on Wednesday, 22 July 2009.

Expectations about financial sector reforms remain. Chawla on 17 July 2009, said the government will introduce seven bills in parliament, including proposals for pension and banking reforms and efforts to raise the foreign investment limit in insurance companies

Infrastructure stocks rose on the government's thrust on the infrastructure sector in the Union Budget 2009-2010. Larsen & Toubro (up 0.17%), Bharat Heavy Electricals (up 1.32%), Lanco Infratech (up 5.49%), GMR Infrastructure (up 0.14%), and IVRCL Infrastructure (up 2.09%), rose

Road construction stocks were in action after the government on Thursday, 23 July 2009 cleared 15 highway projects totaling Rs 15,560 crore to be built under the public private partnership (PPP) mode in eleven states. Nagarjuna Construction Company (up 0.13%), Gammon India (up 0.52%), J Kumar Infraprojects (up 2.31%), IRB Infrastructure (up 4.80%), and Unity Infraprojects (up 0.25%) gained.

Telecom shares rose after the government on Thursday, 23 July 2009 imposed a three-year lock-in clause on stake sales by the owners of telecom companies, which were granted telecom licences last year.

India's second largest cellular services provider by sales Reliance Communications rose 0.46%.

Idea Cellular Services jumped 4.88% after net profit rose 14.7% to Rs 309.21 crore on a 29.7% increase in sales to Rs 2817.94 crore in Q1 June 2009 over Q1 June 2008. The result was announced after market hours yesterday, 23 July 2009.

India's largest listed cellular services provider by sales Bharti Airtel settled at Rs 415.90 after the company's shares turned ex-split from Rs 10 per share to Rs 5 per share. The stock had settled at Rs 813.90 on Thursday, 23 July 2009.

Select FMCG stocks gained on fresh buying after revival in monsoon. Nestle India jumped 4.46% to Rs 2093 after a bulk deal of 51115 shares was struck on the counter at Rs 2015 per share on the BSE at 10:48 IST.

Godrej Consumer Products (up 6.47%), United Spirits (up 2.13%), Britannia Industries (up 2.03%), and Nirma (up 1.01%), gained. FMCG companies derive substantial revenue from rural sales.

Mahindra Satyam was the top traded counter on BSE with turnover of Rs 359.47 crore followed by Suzlon Energy (Rs 330.74 crore), Reliance Industries (Rs 266.48 crore), Tata Steel (Rs 231.14 crore), and DLF (Rs 227.32 crore).

Mahindra Satyam was also the volume topper on BSE clocking volume of 3.38 crore shares followed by Suzlon Energy (3.27 crore shares), Cals Refineries (2.55 crore shares), Unitech (2.29 crore shares), and Ispat Industries (2.23 crore shares).

Apar Industries surged 6.41% after net profit rose 27.57% to Rs 24.48 crore on 6.76% fall in net sales to Rs 503.25 crore in Q1 June 2009 over Q1 June 2008. The company announced the results after market hours on Thursday, 23 July 2009.

Ambuja Cements declined 1.91% after net profit fell 43.74% to Rs 324.65 crore on 18.16% rise in net sales to Rs 1,847.41 crore in Q2 June 2009 over Q2 June 2008. The company declared its results after market hours on Thursday, 23 July 2009.

Shoppers Stop galloped 16.05% after Reliance Capital acquired 5.38 lakh shares in the retailer at an average price of Rs 162.01 a share in a bulk deal on the BSE on Thursday, 23 July 2009.

Essel Propack was locked at upper limit of 5% after the company posted net profit of Rs 5.24 crore in Q2 June 2009 as against net loss of Rs 9.75 crore in Q2 June 2008, on a consolidated basis. The company announced the results after market hours yesterday, 23 July 2009.

Latest Grey Market Premiums - Raj Oil Mills, Adani Power

Excel Infoways Ltd. 85 5 to 7

Raj Oil Mills Ltd. 100 to 120 Discount

Adani Power 90 to 100 12 to 13

NHPC 28 to 33 (Approximate) 10 to 11

Broad based strong rally at Wall Street rally

Dow crosses the 9,000 mark for first time since January, 2009

US stocks witnessed a strong rally on Thursday, 23 July, 2009. The broad based rally took place as earning reports came pouring in and majority of the important names beat Wall Street expectations. Earnings announcements sent all three major indices to their best levels in months. Though most of the move came in the first half of the session, stocks were able to hold steady in the afternoon and close just off of session highs.

The Dow Jones Industrial Average ended higher by 188 points at 9,069. The Nasdaq Composite Index, ended higher by 47 points at 1,973. S&P 500 ended higher by 22.22 points at 976.

All ten sectors ended in the green today led by the materials, financial and telecom sectors. Dow crossed the 9,000 mark for first time since January, 2009. S&P 500 finished at its highest point since November. The Nasdaq
traded at its highest level since October.

The telecom sector showed good strength today after the lead of AT&T reported a positive earnings surprise.

In other earnings news, better-than-expected earnings announcements from a wide range of industry players have helped fuel broad-based buying. 3M, Qualcomm, Ford and McDonald's all topped Wall Street's earnings estimates. Ebay and Sandisk also beat estimates.

In the financial sector, there was a positive reaction to the latest quarterly report
from regional lender Fifth Third Bank.

Among economic reports for the day, The National Association of Realtors reported on Thursday, 23 July, 2009 that resales of U.S. single-family homes and condos rose 3.6% in June to a seasonally adjusted annual rate of 4.89 million, the highest level since October, 2008. Resales have risen for three straight months for the first time in more than five years. The inventory of unsold homes on the market fell 0.7% to 3.82 million in June. This is a 9.4-month supply at the June sales pace, down from 9.8 months in May.

In a separate report, The Labor Department reported on Thursday, 23 July, 2009 that first-time claims for state unemployment benefits bounced higher in the latest week, rising by 30,000 to a total of 554,000. Meanwhile, the four-week moving average of initial claims, a measure of the underlying employment trend, fell by 19,000 to 566,000. It was the lowest level for the four-week average since late January. Continuing claims for unemployment benefits also fell, down by 88,000 in the week ended 11 July to 6.22 million.

Positive earnings and economic data sent crude price higher on Thursday, 23 July, 2009. Prices have now risen in six out of seven sessions. Yesterday, prices fell as energy department reported increase in crude product stockpiles for last week. On Thursday, crude-oil futures for light sweet crude for September delivery closed at $67.16/barrel (higher by $1.76 or 2.7%). It rose to a high of $69.5 earlier during the day. Last week, crude ended higher by 6.1%.

All Indian ADRs ended in the green today. ICICI Vank and Infosys Technologies were the main gainers adding 4.7% and 4.3% respectively.

Tomorrow will be another busy day of for earnings reports. In economic data tomorrow, the revised University of Michigan consumer sentiment reading for July is due at 9:55ET.

Adani Power IPO

Pre Session Commentary - July 24 2009

Today domestic markets are likely to open positive as US markets have recorded the week’s best rally on the back of phenomenal earnings report from majority of 150 companies that declared their results yesterday. The Asian markets have also cheered the surge in US markets to trade in the northward. In the Domestic arena one could witness a positive gap opening with firm trading. Nonetheless, the opening of European markets will further decide the firmness in domestic arena as well.

On Thursday, Indian markets closed with phenomenal gains. The bullish sentiment during the opening bell was further pumped by better core sector data. The six core industrial sectors led by coal and cement recorded a growth rate of 6.5 per cent in June compared to 2.8 per cent in the previous month, which shows signs of economic development and easing of downturn. Traders also gathered a lot of support from the Asian and European markets that kept marching towards the northward. From the sectoral front Realty, CD, Metal and FMCG led the markets with gains of 5.08%, 4.47%, 4.32% and 3.95% respectively. BSE Mid Cap and Small Cap index also gained by 2.29% and 2.16% respectively. Domestic markets are likely to trade positive today.

The BSE Sensex closed higher by 387.92 points at 15,231.04 and NSE Nifty ended higher by 124.85 points at 4,523.75 BSE Mid Caps and Small Caps closed up by 118.63 points and 125.49 points at 5,293.37 and 5,942.85 respectively. The BSE Sensex touched intraday high of 15,264.84 and intraday low of 14,997.75.

On Thursday, the US stocks markets closed with phenomenal gains. 150 companies declared their results between the last evening and day’s morning. Majority of the companies reported better than expected results which send a strong buying sentiment across broader level. Industry heavyweights 3M (MMM 69.43, +4.76), Qualcomm (QCOM 47.40, -1.05), AT&T (T 25.48, +0.64), Ford (F 6.98, +0.60), SanDisk (SNDK 16.92, -2.07), eBay (EBAY 21.52, +2.07), and Diamond Offshore (DO 92.28, +4.38) all reported better than the Wall Street''s earnings estimates. Nevertheless, the Dow closed at its best level since January and the S&P 500 finished at its highest point since November. Nasdaq was at its current level in October. On the macro economic scenario, initial jobless claims for the week ending July 18 recorded at 554,000 in-line with expectations. The existing home sales for the month of June was up for the third straight month recording at an annual rate of 4.89 million units. US light crude oil futures for August delivery closed at $67.16 per barrel up by 2.7% on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed higher by 188.03 points at 9,069.29, NASDAQ index gained 47.22 points to 1,973.60 and the S&P 500 (SPX) closed up by 22.22 points at 976.29.

Today major stock markets in Asia are trading positive. Hang Seng is up by 67.52 points at 19,885.22. Shanghai Composite is up by 46.668 points at 3,375.158. Japan''s Nikkei is trading up by 138.04 points at 9,930.98. Strait Times is up by 34.62 points at 2,519.52. Seoul Composite is up by 6.71 points at 1,503.20 and KLSE Composite is up by 3.45 points at 1,152.15.

Indian ADRs rallied on Thursday. In the IT space, Satyam Computers was up 11.61%, Infosys was up 4.27%, Wipro was up 2.88% and Patni Computers was up 0.17%. In the banking space, ICICI Bank was up 4.68% and HDFC Bank was up 1.16%. In the telecom space, MTNL was up 4.6% and Tata Communication was up 2.91%. In other sectors, Sterlite Industries was up 6.93%, Dr Reddy''s Labs was up 3.89% and Tata Motors was up 3.49%.

The FIIs on Thursday stood as net buyers in equity. Gross equity purchased stood at Rs 2,936.40 Crore, while the gross equity sold stood at Rs 2,790.90 Crore and gross debt purchased stood at Rs 1.50 Crore. The net investment of equity reported was Rs 145.50 Crore and net debt was Rs 59.90 Crore.

On Thursday, the partially convertible rupee ended at Rs 48.46/47, 0.12% weaker than its previous close at 48.52/53. The rupee gained strength as domestic stock markets marked huge gains on strong macro economic cues from domestic Infrastructure sector.

On BSE, total number of shares traded were 46.27 Crore and total turnover stood at Rs 8,078.12 Crore. On NSE, total number of shares traded were 95.52 Crore and total turnover was Rs 19,068.17 Crore.

Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 47158444 shares, followed by Unitech with 47091751, DLF with 14391137, Tata Steel with 12062493 and Reliance Comm with 11578445 shares.

On NSE Future and Options, total number of contracts traded in index futures was 831699 with a total turnover of Rs 18,072.28 Crore. Along with this total number of contracts traded in stock futures were 675858 with a total turnover of Rs 19,934.77 crore. Total numbers of contracts for index options were 1565334 with a total turnover of Rs 35,153.64 Crore and total numbers of contracts for stock options were 56254 and notional turnover was Rs 1,724.87 Crore.

Today, Nifty would have a support at 4,564 and resistance at 4,642 and BSE Sensex has support at 15,343 and resistance at 15,512.

Market seen extending Thursday's surge; RIL Q1 eyed

Key benchmark indices are likely to extend Thursday's over 2.5% surge on strong global cues with the Dow Jones industrial average recording its first close above 9,000 since January 2009. The SGX Nifty futures for July 2009 expiry jumped 26.50 points in Singapore. Companies announcing June 2009 quarterly results will be in spotlight.

Reliance Industries, Reliance Petroleum, Ranbaxy, GAIL, HCC, Jet Airways, Fortis Healthcare, 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 434 companies rose 18.20% Rs 30392 crore on 5.9% growth in sales to Rs 196599 crore in Q1 June 2009 over Q1 June 2008.

Asian markets were trading firm today, 24 July 2009 on upbeat US earnings. Key benchmark indices in Hong Kong, China, Taiwan, Singapore, South Korea and Japan rose by between 0.43% and 1.41%.

US markets surge don Thursday, 23 July 2009 as investors celebrated news of another jump in home sales by propelling the Dow Jones industrials to their first close above 9,000 since January 2009. The Dow gained 188.03 points, or 2.1%, to 9,069.29. The S&P 500 index rose 22.22 points, or 2.3%, to 976.29. The Nasdaq Composite Index rose 47.22 points, or 2.5%, to 1,973.60. Better-than-expected profits at some of the nation's biggest companies also lifted the market.

Back home, as per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares worth Rs 511.94 crore on Thursday, 23 July 2009 while domestic institutional investors sold shares worth Rs 34.16 crore.

Gains may continue

Yesterday's pullback and firm economy outlook may help the market advance further. Asian indices are displaying a subdued trend in the ongoing trades and may exert some pressure on the domestic indices. However, players are maintaining their bets on almost all the sectors. Among the key local indices, the Nifty has a support at 4475 and a break below this level could see it slip further to 4425-4375, while on the upside the index could test higher level at 4575. The Sensex has a likely support at 15100 and may face resistance at 15400.

Major US indices registered significant gains on Thursday, th the Dow jumping 200 points and hitting its highest point since November, as investors welcomed better-than-expected quarterly results and home sales. While the Dow Jones flared up by 188 points at 9069, the Nasdaq moved up by 47 points to close at 1974.

All the Indian ADRs traded firm on the US bourses. Satyam led the pack with gains of 11.61% while Infosys, MTNL, ICICI Bank, Dr Reddy, Tata Motors and Rediff jumped over 3-4% each. Wipro, VSNL, HDFC Bank and Patni Computers closed with marginal gains.

Crude oil prices eased, with the Nymex light crude oil for September delivery advanced by $1.76 to close at $67.16 a barrel. In the commodity space, the Comex gold for August delivery gained by $1.50 to settle at $954.80 an ounce.

Daily News Roundup - July 24 2009

TCS, Infosys, Wipro, Mahindra Satyam, IBM and Accenture battle for British Petroleum’s US$1bn worth of outsourcing contracts. (ET)

Tata Motors is planning to introduce Nano in Latin America. (FE)

Tech M plans capex of Rs1-1.5bn during the year. (FE)

Ranbaxy has received the good manufacturing practice certificate for its non-sterile drug manufacturing site located in Dewas. (ET)

Essar Oil plans to enhance its fuel retail operations by additional facilities through tie-ups at 1,250 outlets. (BS)

KEC International bagged four orders worth Rs4.7bn. (FE)

Texmaco plans to foray into manufacturing Metro coaches. (BS)

Maytas Properties has asked the government to denotify its Biotech SEZ. (ET)

Kalindee Rail plans to increase its stake in the company to 27% from 17% owing to a threat from L&T, whose holding has risen to 14.8%. (ET)

Air India may get Rs2bn equity infusion in 1 phase of debt restructuring. (BS)

Inflation remains in negative territory at -1.17% for the week ended July 11, but food prices soar. (ET)

Six core infrastructure industries grew by 6.5% in June on the back of robust performance by cement and steel sectors. (ET)

Government has imposed a three year lock in clause on stake sales by the owners of telecom companies which were granted telecom licences last year. (ET)

Government may allow mobile number portability by year end. (ET)

RBI is expected to retain its soft interest rate bias at next week’s quarterly policy review. (ET)

Government may extend more sops to the slowdown hit export sector in the foreign trade policy. (ET)

15 road and highway projects with an estimated cost of RS156bn to be executed as PPP were cleared by the ministry. (ET)

The Forum of Regulators, consisting of state and central electricity regulatory commissions, have agreed that the additional unscheduled income charges imposed on distribution companies will not be allowed to be recovered from the customers. (FE)

Coal ministry has asked Coal India to conclude fuel supply agreements with all 1,350 consumers as soon as possible. (FE)

Government estimates gas demand from power and fertilizer sectors to rise by 28% to 202.8mmscmd in three years. (FE)

NHAI awards 1400 km stretch under operation, maintenance and transfer basis on a public-private partnership (PPP) model. (BS)

High tide, low tide on the Street!

A rising tide lifts all boats.

Even as places like Mumbai brace for one of the highest tide, the bulls appear to be on a high of their own re-discovering their groove after a brief setback post budget. Indian stocks should manage to extend gains at the start. But, it’s not going to be a smooth sail ahead of the F&O expiry. If you wish to float around longer, hang on to your life-jackets by way of stop-loss. Some profit booking is not ruled out after the recent spurt.

Earnings so far have been better than expectations, both in India and overseas. The prospects for monsoon, which have been fluctuating, also appear to have brightened. FIIs have resumed their shopping spree after a short-lived lull. Those who went short after the budget are eating humble pie now. The primary market too is gradually beginning to claw its way back. India Inc. has been able to generate good bit of interest among investors through QIPs and GDRs.

Emerging market equity funds drew $2.6bn in the week ended July 22, the most since the period ended June 10. The VIX is back under 30, suggesting that investors are confident. But it remains above 20, a sign that investors are not overly exuberant.

Not all news is good though. Microsoft, American Express and Amazon.com’s earnings have missed Wall Street estimates. After briefly crossing the 20K mark, the Hang Seng slipped into red this morning. It is trading marginally up as of now.

Results Today: BGR Energy, Bharat Electronics, Bharat Forge, Bosch, CEAT, CESC, CRISIL, Emco, Eveready, GAIL, Geometric, Hindustan Motors, HCC, ICRA, Jet Airways, Mahindra Lifespaces, Ranbaxy, Redington, Reliance Industries, Shree Cement and Shriram Transport.

FIIs were net buyers of Rs5.1bn in the cash segment on Thursday on a provisional basis while the local funds pulled out Rs341.6mn, according to figures published on the NSE web site. In the F&O segment, the foreign funds were net buyers at Rs2.9bn.

On Wednesday, the foreign funds were net buyers in the cash segment at Rs1.45bn, as per SEBI data. Their net investment in Indian stocks this year has crossed Rs310bn ($6.42bn). Mutual Funds were net sellers of Rs2.85bn in the cash segment on Wednesday.

US stocks extended the recent rally, with the Dow Jones Industrial Average jumping 200 points and hitting its highest point since November, as investors welcomed better-than-expected quarterly results and home sales.

The S&P 500 climbed to the highest level since President Barack Obama was elected on Nov. 4, advancing 2.3% to 976.29. The Dow gained 188.03 points, or 2.1%, to 9,069.29, the highest since one session after Election Day. The Nasdaq Composite Index surged 2.5% to 1,973.60.

The Nasdaq has now closed higher for 12 consecutive sessions, its longest winning streak since January 1992.

US stocks have been advancing steadily for the last week-and-a-half, rebounding after a four week retreat, as better-than-expected corporate results have surprised investors. But, a few experts say cost cutting has largely driven the earnings growth, raising concerns about what the second-half economic growth is going to look like. Rising unemployment and its impact on cash-strapped consumer suggests that expectations for a second-half recovery are overdone.

Ford Motor reported a second-quarter profit due to its efforts to reduce debt. The automaker also reported an operating loss that was narrower than a year ago and smaller than forecast. Ford's drop in revenue was also narrower-than-expected. Shares gained 9.4%. Ford is the only US automaker that was not forced to declare bankruptcy last quarter, as a result of the slowdown in auto demand amid the recession.

Dow component AT&T reported quarterly sales and earnings that fell from a year ago but topped estimates. The telecom benefited from its exclusive contract with Apple, as strong iPhone sales boosted subscriber growth. AT&T shares gained 2.6%.

Fellow Dow component 3M reported weaker quarterly sales and earnings that topped estimates. 3M also lifted its forecast for full-year profit. Shares gained 7.4%.

In other corporate news, Bristol-Myers Squibb said late on Wednesday that it will buy biotech company Medarex for $2.4 billion. Amazon.com said on Wednesday it would buy online shoe retailer Zappos.com for $807 million.

In economic data, the number of Americans filing new claims for unemployment rose to 554,000 last week from 524,000 in the previous week, according to a Labor Department report. Economists had predicted claims would rise to 557,000.

June existing home sales rose to a 4.89 million unit annual rate from a revised 4.72 million unit rate in May, according to the National Association of Realtors. Sales were better than expected, with economists forecasting sales would rise to a 4.85 million annualized rate. The median home price continued to slide, falling 15.4% versus a year ago.

Treasury prices tumbled, raising the yield on the benchmark 10-year note to 3.66% from 3.54% on Wednesday.

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

US light crude oil for September delivery rose $1.76 to settle at $67.16 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery rose $1.50 to settle at $954.80 an ounce.

Microsoft and American Express should be active on Friday, after reporting quarterly results after the close of trading.

Microsoft reported weaker earnings that topped estimates and weaker revenue that missed estimates. The software bellwether said its results were due to weakness in the global PC and server markets.

American Express reported a big drop in earnings due to the cost of paying back the loan it received from the government last year. However, the earnings still managed to top analysts' forecasts.

Amazon.com shares lost 6.6% following price cuts that caused the online retailer’s revenue to miss projections.

Friday brings a revised consumer sentiment reading from the University of Michigan, but the report is not likely to move markets.

Across the Atlantic, European shares finished with its ninth straight day of gains, as investors cheered earnings news, including the latest results from banking giant Credit Suisse. The Dow Jones Stoxx 600 index climbed 1.9% to settle at 219.79. The index rose to levels not seen since last November this week.

The UK's FTSE 100 index rose 1.5% to close at 4,559.80, the German DAX index jumped 2.5% to finish at 5,247.28 and the French CAC-40 index climbed 2.1% to end at 3,373.72.

After having its share of darkness and choppiness on Wednesday, Indian markets rode the high tide on Dalal Street resuming their northward journey after pausing for a couple of days. All round buying in scrips across the sectors coupled with an impressive growth in the index of six core industries lifted the sentiment on Dalal Street.

The Index of Industrial Production (IIP), stood at 251.6 in June 2009 as against 236.3 in the same month last year, the Commerce & Industry Ministry said on Thursday. This represents a growth of 6.5% compared to a growth of 5.1% in June 2008.

The Realty, Consumer Goods and the Metals sectors were in the limelight even the Mid-Cap and the Small-cap stocks were in momentum.

The Sensex surged by 404 points or 2.7% to end at 15,248 after touching a high of 15,264.8 and a low of 14,997.7. The index had opened at 15,008 against the previous close of 14,843. The NSE Nifty surged by 130 points or 3% to shut shop at 4,529.

In Asia, the Nikkei in Japan gained 0.7% to end at 9,792, while Australia's S&P/ASX ended flat at 4,064. The Hang Seng index in Hong Kong advanced by 3% to end at 19,817.

In Europe, stocks were trading in the red. The FTSE in the UK was down 0.2% at 4,486. The DAX was down 0.2% at 5,112 and the CAC 40 slipped 0.5% at 3,290.

Coming back to India, among the BSE sectoral indices, the Realty index was the top gainer, gaining 5.6%, followed by the Metal index that was up 4.6%. The BSE Consumer Durables index up 4.5% and the BSE FMCG index was up 4%.

The BSE Mid-Cap index advanced 2.4% and the BSE Small-Cap index rose 2.2%.

Within the Sensex, the major gainers were DLF, Reliance Infra, Maruti, Hindalco, ITC, RCom, ACC and Sterlite. Among the major losers were, Bharti Airtel and ONGC.

Outside the frontline indices, the top losers included Pantaloon, Aban, Indian Bank, Glenmark, Rolta, Ispat Ind and Moser Baer.

Among the big losers in the broader market were Piramal Health, Union Bank, Thermax, MRPL, Zee Ent, Marico and GMDC.

Shares of ITC surged by over 5.5% to end at Rs230 after posting impressive quarterly numbers. The company posted a profit after tax of Rs8.78bn for the quarter ended June 30, 2009 as compared to Rs7.48bn for the quarter ended June 30, 2008. Thereby posting a rise of 17% YoY. Total income increased from Rs40.14bn for the quarter ended June 30, 2008 to Rs42.20bn for the quarter ended June 30, 2009.

Shares of Bharti Airtel slipped 1% to Rs814. The company posted a net profit of Rs26.48bn for the quarter ended June 30, 2009 as compared to Rs21.67bn for the quarter ended June 30, 2008. Thereby registering a growth of 22% YoY. Total Income has increased from Rs85.68bn for the quarter ended June 30, 2008 to Rs104.49bn for the quarter ended June 30, 2009.

Shares of Siemens ended higher by 2% to Rs471 after the company announced quarterly results posting a net profit after tax of Rs3370mn for the quarter ended June 30, 2009 as compared to Rs1694.2mn for the quarter ended June 30, 2008. Registering a growth of 99% YoY. Total Income increased from Rs18220.8mn for the quarter ended June 30, 2008 to Rs19254.6mn for the quarter ended June 30, 2009.

Shares of ACC rallied by over 6% to Rs854 after the company announced its Q2 net profit Before Tax at Rs6.82bn, marking an improvement of 83% from the same quarter in 2008. Profit After Tax for the quarter rose 85% from the second quarter of 2008 to Rs4.71bn.

Marico posted a net profit of Rs611.8mn for the quarter ended June 30, 2009 as compared to Rs386.9mn for the quarter ended June 30, 2008. The total income has increased from Rs4.9bn for the quarter ended June 30, 2008 to Rs 5.5bn for the quarter ended June 30, 2009.

The stock ended lower by 2% to Rs86 it had opened at Rs89 and made an intra-day high of Rs91 and a low of Rs85. Total traded volumes stood at 0.73mn shares.

Shares of Sun Pharma recovered smartly erasing early losses. The stock ended higher by 1.5% at 1274. The stock hit an intra-day low of Rs1158 after reports stated that Caraco Pharmaceuticals, the US arm of the company has been slapped with a class action suit in the US.

US-based law firm Izard LLP filed the case on behalf of some of Caraco’s shareholders in a Michigan court on July 17.

Shares of MRPL slipped by 3% to Rs82.3 after the company posted a net profit of Rs4.2bn posting a decline of 50% YoY as compared to Rs8.45bn for the quarter ended June 30, 2008. Total income decreased from Rs107.74bn for the quarter ended June 30, 2008 to Rs62.99bn for the quarter ended June 30, 2009.

Jeremy Grantham Newsletter - Q1 2009

Precious metals pare early losses

Prices rise as dollar retreats back

Precious metal prices coughed up earlier losses and ended higher on Thursday, 23 July, 2009. Prices rose today in synchronization with US stocks and also as the dollar retreated.

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 $954.8, higher by $1.5 (0.2%) an ounce on the New York Mercantile Exchange. Earlier it reached a high of $957.5. Last week, gold ended higher by 2.7%. Year to date, gold prices are higher by 7.6%.

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 Thursday, Comex silver futures for September delivery rose 10 cents (0.8%) at $13.8 an ounce.

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 21.8% 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, fell marginally paring early gains.

At Wall Street today, U.S. equities rose, sending the Dow Jones Industrial Average above 9,000 for the first time since January, after some companies reported earnings that topped analysts' estimates and home resales increased more than forecast.

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 19 (0.13%) at Rs 14,920 per 10 grams. Prices rose to a high of Rs 14,993 per 10 grams and fell to a low of Rs 14,901 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 43 (0.19%) higher at Rs 22,433/Kg. Prices opened at Rs 22,420/kg and rose to a high of Rs 22,579/Kg during the day's trading.

Crude crawls up again

Prices rise as earnings and economic reports boost sentiments

Positive earnings and economic data sent crude price higher on Thursday, 23 July, 2009. Prices have now risen in six out of seven sessions. Yesterday, prices fell as energy department reported increase in crude product stockpiles for last week.

On Thursday, crude-oil futures for light sweet crude for September delivery closed at $67.16/barrel (higher by $1.76 or 2.7%). It rose to a high of $69.5 earlier during the day. Last week, crude ended higher by 6.1%.

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 4.6% till date. Year to date, in 2009, crude prices are higher by 41.6%.

Stocks rallied at Wall Street today. Dow components AT&T, 3M and McDonald's all topped Wall Street's earnings estimates.

Among economic reports for the day, The National Association of Realtors reported on Thursday, 23 July, 2009 that resales of U.S. single-family homes and condos rose 3.6% in June to a seasonally adjusted annual rate of 4.89 million, the highest level since October, 2008. Resales have risen for three straight months for the first time in more than five years.

EIA reported yesterday 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 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 Thursday, August reformulated gasoline rose 7.49 cents, or 4.1%, to $1.9132 a gallon and August heating oil gained 5.32 cents, or 3.1%, to $1.7644 a gallon.

August natural gas futures fell 24.3 cents, or 6.4%, to $3.55 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 75 (2.4%) at Rs 3,245/barrel. Natural gas for August delivery closed at Rs 182.8/mmbtu, lower by Rs 11.9/mmbtu (6.1%).

HT Media

We recommend a ‘buy’ in HT Media from a short-term perspective. It is evident from the charts that after recording an all-time low of Rs 35 in early March, the stock reversed direction and began to trend northward. Since this low, the stock has been on an intermediate-term uptrend, forming higher peaks and troughs. However, the stock was on a medium-term down trend from its June peak of Rs 129 to Rs 81 July low. Apparently the long-term support is pegged at Rs 81; the stock resumed its medium-term uptrend taking support at that level. On July 23, the stock jumped 7 per cent and is trading well above its 21 and 50-day moving averages. Moreover, the intermediate-term up trendline is still in place and intact. The daily relative strength index has entered the bullish zone and the weekly RSI is likely to enter this zone from the neutral region. We are bullish on the stock from a short-term trading horizon. We anticipate it to move up further until it hits our price target of Rs 113 in the upcoming trading sessions. Traders with a short-term perspective can buy the stock, maintaining a stop-loss at Rs 97.

via BL

Dead Presidents! - India Equity Research

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