Nifty August 2009 futures above 4600

Turnover declines

Nifty August 2009 futures were at 4621.05 at a premium of 16.05 points as compared to the spot closing of 4605. Turnover in NSE's futures & options (F&O) segment was Rs 65,552.20 crore, lower than Rs 73,347.15 crore on Wednesday, 12 August 2009.

Reliance Industries August 2009 futures were at premium at 2028 compared to the spot closing of 2024.30.

Tata Steel August 2009 futures were at premium at 471 compared to the spot closing of 470.25.

Tata Motors August 2009 futures were at discount at 470.80 compared to the spot closing of 473.05.

In the cash market, the S&P CNX Nifty surged 147.50 points or 3.31% at 4605.

India Strategy - Aug 13 2009

India Strategy - Aug 13 2009

Asian markets takes turnaround on Thursday

Sensex, Hang Seng lead the regional rally while Nikkei, Shanghai follows it

Stock market in Asian region turned up on Thursday, 13 August 2009, after the Federal Reserve said the ailing US economy was showing signs of "leveling out", spurring investors to buy back shares and other riskier assets and sell US dollars.

On Wall Street, stocks registered good gains following Federal Reserve's decision to keep interest rates unchanged. Overall news flow in the market was very limited. Nine of the ten sectors ended the day in the green. Consumer staples were the only laggard. The Dow Jones Industrial Average added 120.16, or 1.3%, to 9361.61, and the S&P 500 up 11.46 points, or 1.2%, to 1005.81. The Nasdaq Composite edged up 28.99 points, or 1.5%, to 1998.72.

On the economic front, the Federal Open Market Committee didn't change the Fed's key interest rate. The committee said the economy is likely to remain weak for some time but is showing signs of leveling. As for its plans to buy up to $300 billion in long-term government securities, the committee said it will slow or extend the program but expects the full amount will be purchased by October.

In the commodity market, crude oil rose for a second day on optimism that energy demand would increase after the Federal Reserve said the U.S. recession is easing.

Crude oil for September delivery gained as much as 83 cents, or 1.2%, to $70.99 a barrel on the New York Mercantile Exchange. It was at $70.78 a barrel at 3:15 p.m. in Singapore. Yesterday the contract rose 1% to settle at $70.16 a barrel.

Brent crude oil for September settlement on London’s ICE Futures Europe Exchange rose as much as $1.01, or 1.4%, to $73.90 a barrel, and traded at $73.75 at 3:16 p.m. in Singapore. Yesterday, it gained 0.6% to close at $72.89 a barrel.

Gold gained for a second day in London as the dollar weakened, increasing the metal’s appeal as an alternative investment. Other precious metals also rose. Immediate-delivery bullion climbed $5.50, or 0.6 percent, to $952.60 an ounce at 9:12 a.m. in London. The metal traded as low as $940.25 yesterday, the lowest price this month. December gold futures added 0.2 percent to $954.50 an ounce on the New York Mercantile Exchange’s Comex division.

In the currency market, the US dollar dipped in Asian trading as investors again became more comfortable with alternatives in the wake of the FOMC statement.

The Japanese yen softened against major currencies. The Japanese yen was quoted at 95.9 per greenback, up from Wednesday’s quote of 95.25 yen.

The Hong Kong dollar was trading at HK$ 7.7509 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 jumped almost 2 cents after a sharp rise in risk appetite was sparked by a surge in global and local equity markets. At the local close, the dollar was trading at $US0.8384, up from Wednesday's close of $US0.8187. During the local session, the unit moved between $US0.8320 and $US0.8404.

In Wellington trade, the New Zealand dollar ended near where it started though trading was volatile overnight around statements by the US Federal Open Market Committee (FOMC). At its close the NZ dollar was US 67.28 cents compared to US 67.32 cents in the morning and US 66.48 cents yesterday closing.

The NZ dollar quickly fell half a cent to US 66.80 cents after the FOMC statement shortly before the local market opened. It then raced up to US 67.65 cents before settling to spend most of the day in a range between US 67.05 cents and US 67.30 cents.

The South Korean won ended at 1,237.3 won against the dollar, up 9.2 won from Wednesday's close, as offshore investors snapped up local stocks.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar gained against the US dollar as it was trading higher at NT$ 32.8980, down by NT$ 0.0570 from Wednesday’s close of NT$32.950.

Coming back in equities, Asian stock markets closed mostly higher, lifted by Wall Street's gain and a benign result from the U.S. Federal Reserve's policy meeting. Commodity stocks were doing particularly well, thanks to a pick up in base metal prices.

In Japan, the shares market surged with benchmark indices heading toward 10-month high, boosted by iron & steel, non-ferrous metal, mining, and oil & coal sector after base metal and crude oil prices bounced overnight. Banks and real estate spurted after US hold interest rate at record low at zero to 0.25%. At the closing bell, the Nikkei 225 Stock Average index surged 82.19 points, or 0.79%, to 10,517.19, while the broader Topix index added 8.54 points, 0.89%, to 968.41.

On the economic front, according to data from the Ministry of Finance, overseas investors were net buyers of Japanese stocks for the fourth straight week last week, purchasing a net 292.9 billion yen worth of shares.

In Mainland China, share market bounced from five-week intraday low after entering into correction as economic growth accelerates and earning recover. Energy and materials sector led the rally after crude oil and metal prices gained overnight. Banks and financials and properties rebounded on bottom fishing after overnight gains on Wall Street on supportive comments from the US Federal Reserve.

At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, spurted 0.89% to 3,140.56, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, climbed up 1.28% to 3,440.82.

In Hong Kong, the benchmark Hang Seng index surged with benchmark indices heading toward 12-month high on tracking a strong cues from Wall Street overnight after the US Federal Reserve noted signs of the recession mired US economy stabilizing, spurred investors to buy back shares unloaded during the previous day’s decline. The Hang Seng Index spurted 426.06 points, or 2.08%, to 20,861.30, while the Hang Seng China Enterprise has surged 243.83 points, or 2.09%, to 11,900.15.

In Australia, the stock market continued their strong run, adding for another session, on the back of a positive statement from the US Federal Reserve and broker upgrades on the financial sector. Top four banks continued to lead the rally, with heavyweight energy and industrial stocks also strong. At the closing bell, the benchmark S&P/ASX200 index added 92.8 points, or 2.14%, to 4,435.9, meanwhile the broader All Ordinaries raised 90.8 points, or 2.09%, to 4,436.7.

On the economic front, according to the Housing Industry Association and Commonwealth Bank, the First Home Buyer Affordability index dropped 5.1% to 152.5 points in the June quarter from March quarter.

In New Zealand, equities on the New Zealand stock market surged more than 1% following large gains on the Wall Street overnight. The share market rose more than 3100 points for the first time this month registering second consecutive day of gain in a row. The market as a whole had a sound start after stocks powered higher in the United States as the Federal Reserve said it saw signs of a more stable economy. The NZX50 increased 1.57% or 49.16 points to 3128.84. The NZX 15 ascended 1.73% or 100 points to close at 5771.18.

On the economic front, positive result for both production and new orders helped push New Zealand manufacturing activity further out of the doldrums in July, according to the BNZ capital. The seasonally adjusted PMI for July stood at 49.7. This was up 3.2 points from June, and followed an identical improvement from May to June. The last time activity was higher than July 2009 was April 2008 (50.9). A PMI reading below 50.0 indicates that manufacturing is generally declining. Business NZ Chief Executive Phil O’Reilly said that the positive results for key sub-indicators provide a much stronger base for further improvement in the sector.

Meanwhile, food prices in New Zealand moved higher by 0.6 percent in July, boosted by vegetable prices. Statistics NZ reported Thursday that higher vegetable prices were responsible for nearly the entire increase from the month before, with growing conditions hurt by cold weather. For the full year to July 2009, food prices were up 8.4 percent, with increases in all five sub-categories.

In South Korea, shares closed lower on massive last-minute sell-offs by institutional investors. The benchmark Korea Composite Stock Price Index (KOSPI) lost 0.71 points to 1,564.64, paring earlier gains.

In Singapore, the stock market climbed up after opening higher, on the back of positive finish of Wall Street overnight and firmer Asian bourses after the US Federal Reserve said the economy was stabilising. Banks and properties surged on bottom fishing. Meanwhile buying pressure was evident in manufacturing and construction shares. At the closing bell, the blue chip Straits Times Index added 42.87 points, or 1.67%, to 2,614.18.

In Taiwan, stock market sidelined the warning and worries created by Morakot Typhoon, finishing the day at two weeks high, as upbeat comment from US Fed about the recession is leveling out followed by good gains on Wall Street treated as power booster for the regional indices.

The benchmark Taiex share index spouted to two weeks high by adding 136.06 points or 1.97% in a day, closing the day at 7034.96, the highest closing since 3 August 2009.

On the economic front, Taiwan’s tax revenues came to NT$923.3 billion in the first seven months, plunging by NT$206.7 billion (US$6.26 billion) or 18.3% from that of last year, with the tax revenue for the full year estimated to be short NT$170 billion (US$5.15 billion) for a projected annual drop of above 10%.

In Philippines, the stock market closed higher scaled up by gains in the index linked counters as investors sentiments was enhanced by the gains in Wall Street overnight.

The benchmark index PSEi escalated 0.97% or 27.54 points to 2,856.06, while the All Shares index rose 0.94% or 17.02 points to 1,811.94.

In India, the key benchmark indices soared as strong industrial production in June 2009 and firm global stocks boosted sentiment. Interest rate sensitive, banking, realty, and auto stocks galloped as headline inflation remained in the negative zone for the ninth week in a row. Metal stocks valued on firm global metal prices. Oil & gas stocks rose as crude advanced. The BSE 30-share Sensex was up 498.33 points or 3.32% at 15,518.49. The S&P CNX Nifty was up 147.50 points or 3.31% to 4,605.

On the economic front, inflation based on the wholesale price index declined 1.74% in the year through 1 August 2009, after falling 1.58% in the previous week, data released by the government in early afternoon today showed. The government revised upwards inflation for the week ended 6 June 2009 to a fall of 1.01% from earlier 1.61% decline.

In sharp contrast to the gloom in the farm sector, India's industrial output expanded 7.8% in June 2009, at the fastest pace in 16 months, beating forecasts by a wide margin, data released by the government during trading hours on Wednesday showed. The strong growth in industrial production may help offset the impact of deficient rains.

Global rating agency Standard & Poor's (S&P) during trading hours today, 13 August 2009, said India's economy will continue to grow despite global downturn on the back of strong domestic demand. S&P said the potential threats to growth include revival of inflation, high interest rates and persistent global sluggishness.

India's monsoon rainfall deficit has widened further, increasing the risk of crop damage. Monsoon was 56% below normal in week to 12 August 2009 and was 72% below normal in soya bean growing central region in past one week, India Meteorological Department said on Thursday. Monsoon rains were 29% below normal during the period from 1 June 2009 to 12 August 2009. India relies on rain for 60% of its irrigation and on agriculture for 17% of its economy. The weather office chief Ajit Tyagi today told a television channel that the situation was grim and low rainfall would hurt winter-sown crops as well.

Further, foreign trade data continues to show a gloomy picture. India's imports declined by 37% in July 2009 to $18.31 billion compared to $29 billion in July 2008 while exports dropped by 26.6% to $12.53 billion compared to $17 billion in July 2008.

Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.48% or 5.65 points to 1186.19 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2396.49.

In other regional market, European shares climbed sharply, with investors buying into the mining sector in particular amid continued signs that the global economy may be past the worst. On a regional level, the U.K. FTSE 100 index rose 1.1% to 4,769.85, the German DAX index rose 1.5% to 5,428.00 and the French CAC-40 index climbed 1% to 3,541.45.

Market rallies; Sensex ends up 3.32%

Indian equities wrapped the day on a cheerful note. Realty, metal, auto, banking and capital goods led the rally. Broader markets also boosted the sentiment. It opened on a firm note with a gain of 187.80 points, at 15,207.96 on Thursday on strong global cues. The index gained further ground cheered by US Fed announcement, better than expected IIP data and tax reform plans. The other factors like inflation and positive opening of European market added fuel to the sentiment.

Secondline stocks also performed well. BSE Midcap and Smallcap index surged 3.59% and 4.11% respectively.

The government proposed to bring down corporate tax to 25%, and abolish Securities Transaction Tax (STT).

Meanwhile, India`s benchmark wholesale price index (WPI), annual inflation continued to trade in negative zone, standing at -1.74% for the week ended Aug 1, 2009 as compared -1.58% a week ago.

On sectoral front, BSE Realty for the third straight session ended higher. The counter soared 6.86%, Metal surged 5.57%, Auto, Capital goods, Bankex advanced over 4%, FMCG rose 3.94%, PSU, Power gained 1%.

European stocks rose as the German and French economies unexpectedly grew and the Federal Reserve said a recovery is under way while pledging to keep interest rates near a record low. Standard & Poor`s 500 Index futures added 0.5% today, while the MSCI Asia Pacific Index increased 1.5%. UK`s benchmark index FTSE 100 rose 50.40 points, or 1.07%, to trade at 4,767.14. French benchmark index CAC 40 advanced 35.43 points, or 1.01%, to trade at 3,542.65. Germany`s benchmark index DAX climbed 72.51 points, or 1.36% to trade at 5,422.01. (4.15 p.m., IST)

Asian stocks rose after the US Federal Reserve said the recession is easing and resolved to keep interest rates low. Japanese benchmark index Nikkei rose 82.19 points, or 0.79%, to end at 10,517.19. Hong Kong`s Hang Seng index climbed 426.06 points, or 2.08%, to close at 20,861.30. China`s Shanghai Composite gained 27.84 points, or 0.89% to settle at 3,140.56.

The Sensex ended the day with a gain of 498.33 points, or 3.32% at 15,518.49 after touching a high of 15,545.13 and a low of 15,207.96. The broad-based NSE Nifty climbed 147.50 points, or 3.31% at 4,605.00 after hitting a high of 4,614.15 and a low of 4,458.55.

All shares in the Sensex settled with a positive note. Major gainers were DLF (7.21%), ICICI Bank (6.53%), Maruti Suzuki India (6.41%), Tata Steel (6.04%), Tata Motors (5.86%), and Sterlite Industries (India) (5.81%).

Overall market breadth was sharply positive. Out of the total 2,794 stocks traded at BSE, 2,215 advanced, 517 declined while 62 remained unchanged.

Saurav Arora, senior vice president, Jaypee Capital Services commenting on the market outlook said, ``Markets worldwide at new 52 week highs. Today`s evening data would further direction to the market. Market has tested 4,720/50 levels two times in last two months and would take some time to break the same.`

Post Session Commentary - Aug 13 2009

Markets extended its initial upsurge to close near days’ high on significant buying over the ground led by firm global cues. Market rallied sharply following firm European markets along with positive US index futures and higher Asian stocks. Further, strong industrial production (IIP) also boosted investor’s sentiments, which expanded 7.8% in June 2009, at the fastest pace in 16 months. The draft direct tax code, which proposes to reduce tax rates on individual and corporate and scrapping of the Securities Transaction Tax (STT) also contributed to the upward movement across the board. Meanwhile, inflation fell to the lowest in three decades to (-) 1.74% for the week ended 1st August 2009. The BSE Sensex ended above 15,500 level and NSE Nifty closed above 4,600 mark

Market opened significantly up backed by favorable cues from the US markets after Fed reassured of improved outlook for the economy. The US stocks markets closed higher on Wednesday, on improved outlook from the Fed and a cheering housing report. The Federal Reserve kept its benchmark short-term interest rates steady near zero and said it would likely stay there for an extended period. The existing home sales increased 3.8%. Further, the Indian benchmark indices continued to extend gains on positive sentiments led by direct tax code unveiled by the government after the market hours yesterday. Strong global cues also added to the northward journey. During final trading hours, market gained further grounds and concluded its upward journey with strong gains. From the sectoral front, all indices ended in green. Besides, Realty, Metal, Bank, Auto, Capital Goods, FMCG, PSU and Power witnessed most of the buying from these baskets. The BSE Midcap and Smallcap indices also followed same trend.

Among the Sensex pack all 30 stocks ended in green territory. The market breadth indicating the overall health of the market remained extremely positive as 2215 stocks closed in green while 514 stocks closed in red and 62 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 498.33 points or (3.32%) at 15,518.49 and NSE Nifty ended up by 147.50 points or (3.31%) at 4,605. BSE Mid Caps and Small Caps closed with gains of 194.36 and 252.12 points at 5,608.89 and 6,387.05 respectively. The BSE Sensex touched intraday high of 15,545.13 and intraday low of 15,207.96.

Gainers from the BSE Sensex pack are DLF Ltd (7.21%), ICICI Bank (6.53%), Maruti Suzuki (6.41%), Tata Steel (6.04%), Tata Motors (5.86%), Sterlite Industries (5.81%), SBI (5.68%), L&T Ltd (5.20%), ITC Ltd (5.15%), Hindalco (4.93%), Herohonda Motors (4.78%), JP Associates (4.72%), Reliance Infra (3.51%), HDFC (3.21%), Rcom (3.18%) and ONGC Ltd (2.99%).

Inflation fell to (-) 1.74% for the week ended August 1, which is the lowest in three decades, even as prices of essential food items like pulses, cereals fruit and vegetables continued to rise. The wholesale price index during the corresponding week a year ago was as high as 12.91% while in the previous week, it was (-) 1.58%. The food prices continued on a higher path with barley, jowar and gram gaining 2% each and condiments & spices, arhar and fruits & vegetables costlier by 1%. However, the prices of tea fell by 9% in the concerned week.

In order to reduce the tax burden and streamline the over four-decade-old income tax, the government proposed radical tax reforms through a draft code. As per the proposal, the tax rates on individuals are set to decline to 10% for incomes up to Rs 10 lakh while 20% for up to Rs 25 lakh and 30% for above that. Moreover, the incentives on savings are also set to rise to Rs 3 lakh, even as securities transaction tax (STT) is scrapped, capital gains tax unified to one in the long and short term and wealth tax slashed to 0.25% from one per cent with an increase in limit to Rs 50 crore.

On the global markets front the Asian markets that opened before the Indian market, ended up. Shanghai Composite, Hang Seng, Nikkei 225 and Singapore''s Straits Times Index ended higher by 27.84, 426.06, 82.19 and 42.87 points at 3,140.56, 20,861.30, 10,517.19 and 2,614.18 respectively. However, Seoul Composite dropped slightly by 0.71 points at 1,564.64.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading higher by 79.89 points at 5,428.98 and in London FTSE 100 is trading up by 53.19 points at 4,769.95.

The BSE Realty index outperformed the benchmark indices as gained (6.86%) or 258.67 points at 4,031.26. Gainers are Parsvnath (9.96%), Housing Dev (9.05%), Ansal Infra (9.02%), Penland Ltd (8.53%) and Omaxe Ltd (8.40%).

The BSE Metal index advanced by (5.57%) or 674.63 points at 12,779.72. Scrips that gained are Jindal Saw (9.62%), Ispat Industries (7.73%), JSW Steel (7.69%), Gujarat NRE C (6.71%) and Sesa Goa Ltd (6.19%).

The BSE Auto index closed higher by (4.41%) or 237.90 points at 5,627.82. Gainers are Maruti Suzuki (6.41%), Tata Motors (5.86%), Ashok Leyland (5.57%), Cummins Indi (5.10%) and Herohonda Motors (4.78%).

The BSE Bank index gained (4.34%) or 347.13 points at 8,354.08. Main gainers are Yes Bank (6.92%), ICICI Bank (6.53%), SBI (5.68%), Kotak Bank (5.64%) and IDBI Bank (5.46%).

The BSE Capital Goods index ended up by (4.20%) or 500.28 points at 12,417.75. Gainers are Usha Martin (13.25%), Kalpat Power T (8.22%), L&T Ltd (5.20%), SKF India (4.96%) and Suzlon Energy (4.87%).

The BSE FMCG index increased by (3.94%) or 97.98 points at 2,585.28. As Ruchi Soya (9.79%), United Spr (5.23%), ITC Ltd (5.15%), Godrej Cons (4.64%) and Colgate Palm (3.78%) ended in green.

L&T Ltd surged 5.20%. The company has signed a Rs 4,000-crore agreement to supply power equipment to Jaypee Group-promoted Jaiprakaskh Power Venture (JPVL). Under the agreement, L&T will supply boiler and steam turbine generator to a thermal power project in Nigrie, Madhya Pradesh.

Orchid Chemicals advanced by 3.90%. The company has received the final approval from the US Food and Drug Administration (US FDA) for its drug Sumatriptan Succinate tablets, 25. mg, 5.0 mg and 100 mg.

Adlabs films ended up by 4.17%. The Board of Adlabs Films Limited {Adlabs) approved raising an amount upto Rs. 600 crore (US $ 124 million) by way of rights offer of equity shares to the Company’s shareholders, subject to necessary sanctions and applicable provisions of law.

National Aluminium Company Ltd spurted 3.89% after the company raised aluminium prices for the second time this month following a rise in international prices of the metal.

Mastek Ltd gained 1.97% after the company launched a platform for life insurance carriers for India and Asia Pacific markets.

Dr. Reddy''s Lab went up by 0.89%. The company has launched Strea Professional, the company''s first product in the non-invasive aesthetics segment in India.

BSE Bulk Deals to Watch - Aug 13 2009

Date Scrip Code Company Client Name Deal Type * Quantity Price **
13/8/2009 524412 AAREY DRUGS VARSHABEN NAVINBHAI SONI B 29361 46.01
13/8/2009 532995 AVON CORP S V ENTERPRISES B 1520093 10.35
13/8/2009 532995 AVON CORP KII LTD S 600000 10.38
13/8/2009 532995 AVON CORP S V ENTERPRISES S 1521070 10.23
13/8/2009 513142 BALASORE ALL ARCADIA SHARE & STOCK BROKERS PVT. LTD B 405237 29.76
13/8/2009 513142 BALASORE ALL ARCADIA SHARE & STOCK BROKERS PVT. LTD S 361320 30.39
13/8/2009 531932 C G IMPEX NITA BANKESH BHAVSAR B 40500 6.62
13/8/2009 531932 C G IMPEX VARSHABEN NAVINBHAI SONI S 100000 6.62
13/8/2009 523415 COVEN COILOM ALFA FISCAL SERVICES PVT LTD S 25000 7.74
13/8/2009 504351 EMPOWER INDS KII LTD S 50000 15.95
13/8/2009 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. B 108312 102.78
13/8/2009 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. S 108312 102.80
13/8/2009 530077 FRESHTROP FR DEVENDRA JAIN PRAVIN S 62283 27.04
13/8/2009 532809 FSL GENUINE STOCK BROKERS PVT. LTD. B 2340565 31.82
13/8/2009 532809 FSL PRAKASH K.SHAH SHARES & ESCURITIES PVT LTD. B 2254146 31.81
13/8/2009 532809 FSL GENUINE STOCK BROKERS PVT. LTD. S 2340565 31.83
13/8/2009 532809 FSL PRAKASH K.SHAH SHARES & ESCURITIES PVT LTD. S 2201818 31.85
13/8/2009 532836 GREMAC INFRA RISHIRAJ AGARWAL S 100000 35.85
13/8/2009 532951 GSS AMERICA* XITIJ INVESTMENTS B 80000 184.95
13/8/2009 513337 GUJ.TOOLROOM EMERGING EQUITIES PVT. LTD. B 50000 10.15
13/8/2009 513337 GUJ.TOOLROOM DEVANG JAYANTKUMAR GADOYA S 26000 10.15
13/8/2009 532216 HB STOCKHOLI B.K.KHULLAR & CO. B 528233 23.25
13/8/2009 532216 HB STOCKHOLI DELHI IRON & STEEL P.LTD. S 530523 23.25
13/8/2009 531025 INCA FINLEAS ABHINAV GARG B 20000 62.50
13/8/2009 531025 INCA FINLEAS VIKESH UPPAL S 20000 62.50
13/8/2009 516078 JUMBO BAG LT J V STOCK BROKING PRIVATE LIMITED B 53675 38.47
13/8/2009 516078 JUMBO BAG LT HITESH SHASHIKANT JHAVERI B 64419 42.05
13/8/2009 516078 JUMBO BAG LT HITESH SHASHIKANT JHAVERI B 45000 42.10
13/8/2009 516078 JUMBO BAG LT KALPANA MADHANI SECURITIES PVT. LTD. B 40000 42.10
13/8/2009 516078 JUMBO BAG LT J V STOCK BROKING PRIVATE LIMITED S 48501 38.63
13/8/2009 516078 JUMBO BAG LT NEAT DEVELOPERS LTD. S 55117 38.33
13/8/2009 516078 JUMBO BAG LT HITESH SHASHIKANT JHAVERI S 45000 42.10
13/8/2009 516078 JUMBO BAG LT KALPANA MADHANI SECURITIES PVT. LTD. S 40000 42.01
13/8/2009 516078 JUMBO BAG LT KANSARA NIRAV GUNVANTRAY HUF S 35000 40.96
13/8/2009 516078 JUMBO BAG LT SHVETAL K TRIVEDI S 34452 38.73
13/8/2009 513509 KALYANI FORG B.K.KHULLAR & CO. B 102737 104.00
13/8/2009 513509 KALYANI FORG DELHI IRON & STEEL P.LTD. S 117737 104.00
13/8/2009 511131 KAMAN HSG NISHA SUMANJAIN B 115000 29.73
13/8/2009 511131 KAMAN HSG DEVHOOTI JANMEJAY VYAS S 150000 29.19
13/8/2009 590041 KAVERI TELE NINA N S 50000 48.45
13/8/2009 530255 KAY POW PAP JOLLY GUPTA B 100000 7.66
13/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 472507 7.66
13/8/2009 530255 KAY POW PAP OMPARKASH GUPTA B 65101 7.81
13/8/2009 530255 KAY POW PAP NARENDER GUPTA B 77744 7.82
13/8/2009 530255 KAY POW PAP ANKIT KUMAR GUPTA B 83000 7.54
13/8/2009 530255 KAY POW PAP SUNDER DASS AGARWAL B 185095 7.67
13/8/2009 530255 KAY POW PAP KAILASH CHAND GUPTA B 83654 7.79
13/8/2009 530255 KAY POW PAP B.S.KHANDELWAL B 65000 7.66
13/8/2009 530255 KAY POW PAP JOLLY GUPTA S 100005 7.48
13/8/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 443925 7.73
13/8/2009 530255 KAY POW PAP OMPARKASH GUPTA S 90101 7.62
13/8/2009 530255 KAY POW PAP NARENDER GUPTA S 87101 7.60
13/8/2009 530255 KAY POW PAP ANKIT KUMAR GUPTA S 83000 7.74
13/8/2009 530255 KAY POW PAP SUNDER DASS AGARWAL S 100000 7.89
13/8/2009 530255 KAY POW PAP KAILASH CHAND GUPTA S 67834 7.42
13/8/2009 530255 KAY POW PAP GIRRAJ PRASAD GUPTA S 92000 7.59
13/8/2009 523550 KRYPTON INDU SOBHA CHAND BHANSALI B 26284 33.46
13/8/2009 531241 LINC PEN PLA SHRI HARI INVESTMENTS S 45321 30.17
13/8/2009 512449 PACE TEXTILES KIRAN SUTTAMCHAND B 300000 55.08
13/8/2009 532736 POWERSOFT DILIP RAMANLAL VAKHARIA B 82366 18.98
13/8/2009 532736 POWERSOFT DILIP RAMANLAL VAKHARIA S 82366 19.48
13/8/2009 533093 RAJ OIL OPG SECURITIES P LTD B 249492 120.55
13/8/2009 533093 RAJ OIL OPG SECURITIES P LTD S 249492 120.58
13/8/2009 507300 RAVALG SUG F HITESH SHASHIKANT JHAVERI S 508 10872.00
13/8/2009 524540 SECUN HEALTH SOBHA CHAND BHANSALI B 25000 26.27
13/8/2009 524540 SECUN HEALTH ASHOK KUMAR BILGAIYAN B 25402 26.05
13/8/2009 524540 SECUN HEALTH SURABH KUMARR GANDHI B 41962 26.27
13/8/2009 524540 SECUN HEALTH SAMEER NATVARLAL SHAH B 27446 26.34
13/8/2009 524540 SECUN HEALTH ASHOK KUMAR BILGAIYAN S 25402 26.11
13/8/2009 524540 SECUN HEALTH SURESH BABU POTLURI S 71000 26.30
13/8/2009 524540 SECUN HEALTH SURABH KUMARR GANDHI S 43590 26.18
13/8/2009 524540 SECUN HEALTH SAMEER NATVARLAL SHAH S 27446 26.34
13/8/2009 531874 VENUS VENT HARISH TARSEM MITTAL B 37000 40.31
13/8/2009 531874 VENUS VENT KANCHAN VIJAYKUMAR THAKKAR B 32000 41.84
13/8/2009 531874 VENUS VENT ABHAY NARAIN GUPTA S 37000 40.31
13/8/2009 531249 WELL PACK PA BENKO TRADING PRIVATE LTD B 35000 159.91

NSE Bulk Deals to Watch - Aug 13 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
13-AUG-2009,DAAWAT,LT Foods Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,122095,62.10,-
13-AUG-2009,DHAMPURSUG,DHAMPUR SUGAR MILLS LTD,GOKUL VANIJYA (P) LTD,BUY,255000,94.33,-
13-AUG-2009,FSL,Firstsource Solutions Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,2474889,31.95,-
13-AUG-2009,FSL,Firstsource Solutions Lim,JAYPEE CAPITAL SERVICES LTD.,BUY,3436883,31.66,-
13-AUG-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4248713,49.59,-
13-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,10424360,22.51,-
13-AUG-2009,SASKEN,Sasken Commu Techno Ltd,ASIT C MEHTA FOREX PRIVATE LTD,BUY,434090,142.07,-
13-AUG-2009,SITASHREE,Sita Shree Food Products,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,BUY,135775,13.93,-
13-AUG-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,1180485,19.86,-
13-AUG-2009,DAAWAT,LT Foods Limited,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,122095,62.04,-
13-AUG-2009,FSL,Firstsource Solutions Lim,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,2455889,32.07,-
13-AUG-2009,FSL,Firstsource Solutions Lim,JAYPEE CAPITAL SERVICES LTD.,SELL,3579383,31.76,-
13-AUG-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4240833,49.60,-
13-AUG-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,10477160,22.57,-
13-AUG-2009,JAYSREETEA,Jayashree Tea Ltd.,LIFE INSURANCE CORPORATION OF INDIA,SELL,100000,212.59,-
13-AUG-2009,SASKEN,Sasken Commu Techno Ltd,ASIT C MEHTA FOREX PRIVATE LTD,SELL,434090,142.85,-
13-AUG-2009,SITASHREE,Sita Shree Food Products,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,SELL,135775,13.99,-
13-AUG-2009,WINDSOR,Windsor Machines Limited,ARCIL CPS ZERO ZERO TWO XI TRU,SELL,133584,14.15,-
13-AUG-2009,WWIL,Wire and Wireless (India),ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,1180485,19.88,-

Tax reforms, economic data boost bourses

The key benchmark indices soared as proposed a surge in industrial production in June 2009 reinforced expectations that the economy is recovering. A draft direct tax code which proposes to reduce tax rates on individuals and corporates and scrapping of the Securities Transaction Tax (STT), also boosted sentiment. The rally on the domestic bourses was also a part of rally across global stocks triggered by signs of a revival in the global economy and the US Federal Reserve's decision on Wednesday, 12 August 2009, to keep interest rates low for a prolonged period.

Interest rate sensitive, banking, realty, and auto stocks galloped as headline inflation remained in the negative zone for the ninth week in a row. Metal stocks valued on firm global metal prices. Oil & gas stocks rose as crude advanced. The BSE 30-share Sensex jumped 498.33 points or 3.32%.

The market breadth, indicating the overall health of the market, was strong. All the 30 stocks from Sensex pack were in green. All the sectoral indices on BSE were in the positive zone.

A bout of intraday volatility was witnessed. The Sensex opened with an upward gap after the US Federal Reserve on Wednesday said US interest rates will remain low even as the US central bank was more optimistic about the economic outlook. The market extended gains in early afernoon trade. The market pared gains before hitting a fresh intraday high in afternoon trade. Profit taking pulled the market off the higher level later. The market surged sharply in mid-afternoon trade after a consolidation in afternoon trade. It extended gains in late trade.

Inflation based on the wholesale price index declined 1.74% in the year through 1 August 2009, after falling 1.58% in the previous week, data released by the government in early afternoon today showed. However, the decline in headline inflation is only due to a statistical effect caused by sharply higher prices a year earlier and consumer price inflation remains high. The government revised upwards inflation for the week ended 6 June 2009 to a fall of 1.01% from earlier 1.61% decline.

Bulls, nonetheless, took heart from the robust industrial production data. In sharp contrast to the gloom in the farm sector, India's industrial output expanded 7.8% in June 2009, at the fastest pace in 16 months, beating forecasts by a wide margin, data released by the government during trading hours on Wednesday, 12 August 2009, showed. Stocks had witnessed a strong intraday rebound that. The strong growth in industrial production may help offset the impact of deficient rains.

Global rating agency Standard & Poor's (S&P) during trading hours today, 13 August 2009, said India's economy will continue to grow despite global downturn on the back of strong domestic demand. S&P said the potential threats to growth include revival of inflation, high interest rates and persistent global sluggishness.

India's monsoon rainfall deficit has widened further, increasing the risk of crop damage. Monsoon was 56% below normal in week to 12 August 2009 and was 72% below normal in soya bean growing central region in past one week, India Meteorological Department said on Thursday. Monsoon rains were 29% below normal during the period from 1 June 2009 to 12 August 2009. India relies on rain for 60% of its irrigation and on agriculture for 17% of its economy. The weather office chief Ajit Tyagi today told a television channel that the situation was grim and low rainfall would hurt winter-sown crops as well.

Further, foreign trade data continues to show a gloomy picture. India's imports declined by 37% in July 2009 to $18.31 billion compared to $29 billion in July 2008 while exports dropped by 26.6% to $12.53 billion compared to $17 billion in July 2008.

Meanwhile, the draft direct tax code released by the government after trading hours on Wednesday, has proposed a reduction in corporate tax rate to 25% from 30% now. It also proposes to phase out profit-linked exemptions for companies and replace them with investment-linked incentives. Business losses will be allowed to be carried forward indefinitely, while rules for capital gains and mergers and acquisitions will be rationalised, according to the draft plan.

The code proposes abolition of STT, which is now levied on purchase of shares and bonds. However, investors will have to pay a capital gains tax on profits earned by them on investments irrespective of the tenure of investments. In other words, there is no distinction between short term and long term capital gains, though gains realised after one year will be eligible for indexation benefits. Currently, short-term capital gains on sale of shares are taxed at 15% and there is no long-term capital gains tax on sale of shares sold after one year. The government is hoping to implement the new code from 2011.

European shares edged higher on Thursday, with sentiment improving after the Federal Reserve said the US economy was showing signs of leveling out and data showed German and French GDP rose in the second quarter. The key benchmark indices in France, Germany and UK were up by between 1.17% to 1.74%.

German and French economies unexpectedly grew in the second quarter, bringing an end to their worst recessions since World War II. Gross domestic product rose a seasonally adjusted 0.3% from the first quarter, Germany's Federal Statistics Office in Wiesbaden said today. The French economy also expanded 0.3%, Finance Minister Christine Lagarde said.

Asian stocks rose today after the US Federal Reserve said the recession is easing and pledged to keep interest rates low. The key benchmark indices in Hong Kong, Japan, Singapore and Taiwan rose by between 0.79% to 2.08%. Chinese stocks reversed losses and rose 0.89%.

Trading in US index futures indicated the Dow could rise 101 points at the opening bell today, 13 August 2009.

US markets rallied on Wednesday, 12 August 2009 on the back of an improved outlook from the Fed and an encouraging housing report. The Federal Reserve kept its benchmark short-term interest rates steady near zero as expected and said it would likely stay there for an extended period. The Fed said it will extend to the end of October a program to buy longer-term government securities.

The Dow jumped 120.16 points, or 1.3%, to 9,361.61. The S&P 500 index added 11.46 points, or 1.2%, to 1,005.81, while the Nasdaq Composite Index gained 28.99 points, or 1.5%, to 1,998.72.

The Fed said that the economic activity is leveling out and conditions in financial markets have improved further in recent weeks. But the Fed warned at the same time that economic activity is likely to remain weak for some time. It also said household spending, while stabilizing, is still weak as a result of the grim labor market and tight credit.

Closer home, concerns about the spread of swine flu remain. The government cracked down on price gouging and hoarding of face masks and flu drugs on Wednesday as the toll from Swine flu climbed to 17. In Mumbai, India's financial hub, schools and colleges were closed for a week and cinema halls shut for three days. The health ministry has asked states to set up more screening centres and prod private hospitals to help cope with large numbers of people demanding tests.

The BSE 30-share Sensex jumped 498.33 points or 3.32% at 15,518.49. The Sensex surged 524.97 points to the day's high of 15,545.13 in late trade. At the day's low of 15,207.96, the Sensex rose 187.80 points in early trade.

The S&P CNX Nifty was up 147.50 points or 3.31% to 4,605. Nifty August 2009 futures were at 4621.05 at a premium of 16.05 points as compared to the spot closing of 4605. Turnover in NSE's futures & options (F&O) segment was Rs 65,552.20 crore, lower than Rs 73,347.15 crore on Wednesday, 12 August 2009.

BSE clocked a turnover of Rs 6077 crore, higher than Rs 5917.26 crore on Wednesday, 12 August 2009.

The market breadth, indicating the overall health of the market, was very strong. On BSE, 2211 shares advanced as compared with 515 that declined. 61 shares remained unchanged.

Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 5871.18 points or 60.85% in calendar year 2009 as on 13 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7,358.09 points or 90.16% as on 13 August 2009. FII inflow in calendar year 2009 totaled Rs 35,745.10 crore (till 11 August 2009) as per data from the Securities & Exchange Board of India (Sebi)

Coming back to today's trade, the BSE Mid-Cap index was up 3.59% and the BSE Small-Cap index was up 4.11%. Both the indices outperformed the Sensex.

The BSE Realty index (up 6.86%), the BSE Metal index (up 5.57%), the BSE Auto index (up 4.41%), the BSE Bankex (up 4.41%), the BSE Capital Goods index (up 4.2%), the BSE FMCG index (up 3.94%), outperformed the Sensex.

The BSE IT index (up 1.65%), the BSE Healthcare index (up 1.68%), the BSE Oil & Gas index (up 1.88%), the BSE Teck index (up 2.03%), the BSE Consumer Durables index (up 2.64%), the BSE Power index (up 2.76%), the BSE PSU index (up 2.98%), underperformed the Sensex.

All the 30 stocks from Sensex pack rose. India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 1.59% to Rs 2,023.45. Reliance Industries has reportedly pulled out of a consortium led by Oil and Natural Gas Corporation (ONGC) which has formally bid for a 40% stake in an oil field in Venezuela, leaving the state-run company to find another partner to bid for the foreign oil block.

RIL recently filed a caveat in the Supreme Court, seeking to be heard before it considers any petition by National Thermal Power Corporation (NTPC). RIL had bid to supply gas to NTPC's projects for 17 years at $2.34 per mmbtu. But RIL did not sign the contract and the matter is pending in Bombay High Court for resolution. NTPC is expected to file a petition challenging last month's order of the Bombay High Court that allowed RIL to amend its plea in its dispute with NTPC.

A dispute between Reliance Industries and Reliance Natural Resources on gas sales is now before the Supreme Court. Cross-appeals between RIL and RNRL, will come up for hearing before the Supreme Court on 1 September 2009.

Oil exploration stocks rose as crude oil futures ended higher for the first time in four sessions on Wednesday. Cairn India rose 1.79%. As per reports, the company is likely to start crude production from its Rajasthan oil fields later this month. The company has already reached pricing agreements for the crude with principal buyers, Indian Oil Corp and Mangalore Refinery and Petrochemicals.

India's largest state-run oil exploration firm by sales ONGC rose 2.99%. Crude rose 71 cents, or 1.02 at $70.16 a barrel on the New York Mercantile Exchange on Wednesday. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

Auto stocks rose on bargain hunting after a recent steep fall triggered by concerns arising from scanty rains. Auto firms derive substantial revenue from rural India. Mahindra & Mahindra, Maruti Suzuki India, Hero Honda Motors, TVS Motor Company, rose by between 2.1% to 7.06%.

India's largest commercial vehicle maker by sales Tata Motors rose 5.86%. As per recent reports, the automaker has almost finalized short term funding for its two British luxury brands without the loan guarantee from the UK government.

Realty shares rose as the government's thrust on housing sector in the Union Budget 2009-2010 may help extend recovery in housing demand witnessed in the past few months. Phoenix Mills, Ackruti City, Omaxe, Indiabulls Real Estate, Ansal Properties, DLF rose by between 2.9% to 8.4%.

Unitech jumped rose 7.07% after index compiler MSCI added the stock in the MSCI Emerging Markets Index.

Metal shares rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 2.38% on Wednesday, 12 August 2009. Steel Authority of India, Hindalco Industries, Hindustan Zinc, JSW Steel, Sterlite Industries rose by between 3.97% to 7.69%.

India's second largest aluminum producer by sales National Aluminium Company jumped 3.89% after the company raised aluminium prices for the second time this month following a rise in international prices of the metal.

Bank stocks rose on fall in headline inflation and on firm American depository receipts (ADR) on Wednesday. India's largest private sector bank by net profit ICICI Bank rose 6.53% as its ADR rose 3.78% on Wednesday.

India's second largest private sector bank by net profit HDFC Bank rose 1.65% as its ADR rose 1.83% on Wednesday.

India's biggest commercial bank in terms of branch network State Bank of India (SBI) rose 5.68%. Among other PSU banks, Bank of Baroda, Punjab National Bank, Bank of India, rose by between 0.07% to 4.12%

Construction, capital goods and cement shares rose as higher government spending on infrastructure sector in 2009-2010 to a provide a stimulus to the economy, may result in increase order flow for construction and capital goods firms and may help boost cement demand. Among construction shares, IVRCL Infrastructure & Projects, Era Infra Engineering, Hindustan Construction Company, Gayatri Projects, Nagarjuna Construction Company rose by between 3.33% to 5%.

Bidding is expected to start soon on 139 road projects covering 14,395 kilometres at a cost of about US$ 21 billion.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 5.2% after a joint venture of the company bagged a Rs 4000-crore equipment order. The announcement was made on Wednesday.

Other capital goods stocks, Bharat Heavy Electricals, BEML, Thermax, ABB, Praj Industries rose by between 0.28% to 4.21%.

From the cement pack, UltraTech Cement, Grasim Industries, ACC, Ambuja Cements, rose by between 1.16% to 4.66%.

Power stocks rose as the NHPC IPO received robust investor response. The IPO which ended on Wednesday, was subscribed 23.74 times. Reliance Infrastructure, NTPC, Reliance Power, PowerGrid Corporation of India, Tata Power Company, CESC and GVK Power & Infrastructure, rose by between 1.42% to 6.72%.

Sun Pharmaceutical Industries rose 0.37% after the company recently got USFDA approvals for generic versions of Eloxatin and Imtrex.

India's largest drugmaker by sales Ranbaxy Laboratories rose 1.83% after company on Wednesday said it had entered the protein foods market with the launch of the Revitalite brand.

Other healthcare stocks, Wockhardt, Cipla, Glaxosmithkline Pharma, Pfizer, Sterling Biotech rose by between 0.51% to 8.23%.

India's largest mobile services provider by sales Bharti Airtel gained for the third straight day rising, 1.96%. The Securities Appellate Tribunal (SAT) on Tuesday adjourned till 28 August 2009 the hearing on an appeal seeking greater clarity on a Securities & Exchange Board of India (Sebi) order, which exempts South Africa's MTN from making an open offer to shareholders of Bharti, if a merger deal between two telecom companies materialises.

On seeking guidelines on the proposed merger with MTN, Sebi in an order dated 22 June 2009 had said that telecom giant MTN need not make an open offer to Bharti shareholders in India as its stake in the domestic mobile company would be through the Global Depository Receipts (GDRs). The appeal was filed by a shareholder Deepak Mehra, who holds around 200 shares, arguing that MTN has to make an open offer to Bharti shareholders.

India's second largest mobile services provider by sales Reliance Communications rose 3.18%. The company on Wednesday said it has tied-up with US-based Kodiak Networks for a nationwide roll-out of mobile conferencing service

FMCG stocks rose on bargain hunting after a recent slide triggered by concerns over scanty rains. FMCG firms derive substantial revenue from rural markets. Tata Tea, Dabur India, Nestle India, MArico, ITC, Hindustan Uniliver and United Spirits, rose by between 0.91% to 5.23%.

Airline stocks rose after aviation minister Praful Patel sad government will form a group of ministers (GoM) to look into airline industry's woes. Jet Airways, Kingfisher Airlines and SpiceJet rose by between 3.91% to 10.72%.

He further said the GoM will look into the ATF price issue. He said the industry is likely to grow 8.5% per year till 2015.

Sugar, tea and rice stocks rose as weak monsoon may further boost commodity prices which are already rising. From the sugar pack, Shree Renuka Sugars, Balrampur Chini Mills and Bajaj Hindustan rose by between 1.24% to 4.96%.

Tea stocks, Mcleod Russell, Asian Tea, Assam Tea Company, rose by between 1.97% to 6.53%.

Rice stocks, Kohinoor Foods and KRBL rose by between 6.33% to 9.93%.

Firstsource Solutions clocked highest volume of 2.55 crore shares on BSE. Cals Refineries (2.25 crore shares), Ispat Industries (1.72 crore shares), Unitech (1.66 crore shares) and Suzlon Energy (1.36 crore shares) were the other volume toppers in that order.

Housing Development & Infrastructure (Rs 273.50 crore), Tata Steel (Rs 169.67 crore), Reliance Industries (Rs 168.75 crore), DLF (Rs 162.01 crore) and Unitech (Rs 157.15 crore) were the other turnover toppers in that order.

Pre Session Commentary - Aug 13 2009

Today domestic markets are likely to open with positive as all the Asian markets are also trading in northward direction. The US markets closed with gains on the Fed’s accompanying statement and also the fed funds rate remaining unchanged at 0.00-2.00%. In the domestic arena the IIP data for the month of June recorded phenomenal growth of 7.8% which helped markets to rebound during the previous day’s trade. Today one could expect some rebound happening across the broader level.

On Wednesday, Domestic markets closed negative after late buying. Market opened on downbeat note tracking weak cues from the global markets. The Asian markets were down and US stocks markets closed lower on Tuesday, due to broad based selling led by banking stocks. Stocks skidded for the second consecutive day as investors awaited the Federal Reserve''''s latest decision on monetary policy and guidance on the outlook for recovery from the recession. Further, the investors were closely watching the industrial output that was data due later in the day. The IIP improved sharply in the month of June 2009 reporting a growth of 7.8%. Stocks continued to extend losses till afternoon mainly on concern that lesser than normal rain may weigh down economic recovery. However, market started recovering during final trading hours and minimized losses at the end on positive European markets. From the sectoral front, IT, Metal, PSU, Oil & Gas, Bank and Capital Goods witnessed most of the selling pressure. However, Realty, Pharma and Auto stocks were able to gain favour from the market. The BSE Midcap and Smallcap indices also remained on buyers’ radar.

The BSE Sensex closed lower by 54.43 points at 15,020.16 and NSE Nifty ended down by 13.85 points at 4,457.50. BSE Mid Caps and Small Caps closed with gains of 15.11 and 28.71 points at 5,414.53 and 6,134.93 respectively. The BSE Sensex touched intraday high of 15,043.62 and intraday low of 14,071.05.

On Wednesday, US stock markets closed higher. FOMC leaves the fed funds rate unchanged at 0.00% to 2.00%. There was no negative news in the markets and therefore a lot of buying supported extended gains across broader level. Traders were also concerned about Fed''s accompanying statement, which indicated that the FOMC expects inflation to remain subdued for some time and economic activity is likely to remain weak for some time. The FOMC also said sluggish income growth will constrain household spending, though members hold the belief that economic activity is leveling out. Financial stocks were the leaders with gains of 2.0%, whereas consumer staples were the laggard of the day. US light crude oil futures for September delivery closed at $70.16 per barrel higher by 1.0% on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed higher by 120.61 points at 9,361.61, NASDAQ index inclined by 28.99 points to 1,998.72 and the S&P 500 (SPX) closed higher by 11.46 points at 1005.81.

Today major stock markets in Asia are trading in positive territory. Shanghai Composite is low by 12.32 points at 3,100.39. Japan''s Nikkei is trading up by 99.25 points at 10,534.25 followed by Strait Times and Seoul Composite which are also trading higher by 40.16 and 11.09 points at 2,611.47 and 1,576.44 respectively. Hang Seng is up by 397.65 points at 20,832.89 and Taiwan Weighted is up by 116.58 points at 7,015.48.

Indian ADRs ended in green on Wednesday. In the banking space, ICICI Bank was up 3.78% and HDFC Bank was up 1.83%. In the telecom space, MTNL was up 3.58% and Tata Communication was up 2.63%. In the IT space, Patni Computers was up 4.27%, Infosys was up 0.87%, Satyam Computers was up 3.22% and Wipro was up 1.84%. In other sectors, Tata Motors was up 4.80%, Sterlite Industries was up 1.62% and Dr Reddy''s Labs was up 1.41%.

The FIIs on Wednesday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 2,894.10 Crore, while the gross equity sold stood at Rs 2,190.00 Crore and gross debt purchased stood at Rs 91.80 Crore, while gross debt sold stood at Rs 254.30 Crore. The net investment of equity reported was Rs 704.20 Crore and net debt was Rs (162.50) Crore.

On Wednesday, the partially convertible rupee ended at 48.36/37, 0.83% weaker than its previous close at 47.96/97. The negative trading in the domestic markets pulled the local currency against dollar.

On BSE, total number of shares traded were 39.48 Crore and total turnover stood at Rs 5,917.26 Crore. On NSE, total number of shares traded were 77.08 Crore and total turnover was Rs 15,992.79 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 60299149 shares, followed by Suzlon Energy with 43263196, Tata Steel with 15207451, DLF with 13292541 and Hindalco with 10913902 shares.

On NSE Future and Options, total number of contracts traded in index futures was 847356 with a total turnover of Rs 18,006.14 Crore. Along with this total number of contracts traded in stock futures were 516285 with a total turnover of Rs 15,877.74 crore. Total numbers of contracts for index options were 1234591 with a total turnover of Rs 28,200.10 Crore and total numbers of contracts for stock options were 45336 and notional turnover was Rs 1,435.39 Crore.

Today, Nifty would have a support at 4,486 and resistance at 4,512 and BSE Sensex has support at 15,098 and resistance at 15,235.

NHPC, Adani Power Grey Market Premium

NHPC 30 to 36

Premium : 6.50 to 7

Adani Power 100

Premium: 7 to 7.50

Market set to gain on firm global cues;inflation data eyed

The key benchmark indices set to gain tracking firm global cues and jump in domestic industrial output data. However, worries over scanty rains and swine flu scare may cap upside. Investors will keenly watch India's wholesale price index (WPI) data in the 12 months to 1 August due to be announced by the government today.

The key benchmark indices registered small losses on Wednesday, recovering sharply from a steep intraday slide triggered by a sharp setback in Chinese stocks. Stronger-than-expected domestic industrial production data and recovery in European stocks aided the rebound in the second half of the trading session. The BSE 30-share Sensex was down 54.43 points or 0.36% at 15,020.16 on that day.

As per the provisional figures on NSE, foreign funds sold shares worth Rs 504.99 crore and domestic funds bought shares worth Rs 190.58 crore on Wednesday, 12 August 2009.

Concerns about the spread of swine flu remain. India cracked down on price gouging and hoarding of face masks and flu drugs on Wednesday as the toll from Swine flu climbed to 17.In Mumbai, India's financial hub, schools and colleges were closed for a week and cinema halls shut for three days. The Bollywood film industry also put off big releases and cancelled shoots. The health ministry asked states to set up more screening centres and prod private hospitals to help cope with large numbers of people demanding tests.

India's monsoon rainfall deficit has widened further, increasing the risk of crop damage, but its impact on the country's economy was offset by high growth in June industrial output due to buoyant consumer demand. The shortfall in rains increased by one percentage point from the previous day to 29 % on 10 August, with rains in the soybean-growing central region weakening, government sources said on Wednesday.

The deficit in the soybean-growing region of central India widened by 1 percentage point to 20 percent, while rainfall deficiency in cane-producing northwestern India remained unchanged at 42 percent. India relies on rain for 60 % of its irrigation and on agriculture for 17 % of its economy.

In sharp contrast to the gloom in the farm sector India's June industrial output expanded 7.8% its fastest pace in 16 months, beating forecasts by a wide margin. Industrial output expanded for the sixth straight month in Asia's third-biggest economy.

July continued to spell trouble for the country's foreign trade with imports too experiencing a sharp drop. Imports declined by 37% in July 2009 to $18.31 billion compared to $29 billion in July 2008 while exports dropped by 26.6% to $12.53 billion compared to $17 billion in July 2008.

Meanwhile, India proposes to reform its archaic tax laws, phase out exemptions, simplify rules on corporate mergers and help improve compliance, Finance Minister Pranab Mukherjee said on Wednesday. Complex laws and procedures have led to litigations, encouraged large-scale evasion and prevented the cash-strapped government to shore up revenues in a country of 1.1 billion-plus people.

He said the government would try to bring in a bill in the winter session of parliament expected to start in November, with the proposed changes. The bill has to be debated in parliament and get approved to become a law, which means it could be implemented from 2011.

The new code proposes to cut tax rates to bring in more people and companies under the tax net, phase out profit-linked exemptions for companies and replace them with investment-linked incentives. Business losses will be allowed to be carried forward indefinitely, while rules for capital gains and mergers and acquisitions will be rationalised, according to the draft plan.

The code proposed abolition of securities transaction tax, which is now levied on purchase of shares and bonds.Retirement benefits will be taxed at the time of withdrawal, the draft showed, but the code recommended the deduction limit for savings needed to be increased to Rs 3,00,000 ($6,200) from the present Rs 1,00,000.

Asian stocks rose today after the U.S. Federal Reserve said the recession is easing and pledged to keep interest rates low. The key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.73% to 1.82%. China's Shanghai Composite Index was the only regional benchmark gauge to fall, sinking 0.6 percent for the sixth loss in seven days.

The US markets rallied on Wednesday, 12 August 2009 on the back of an improved outlook from the Fed and an encouraging housing report. The Federal Reserve kept its benchmark short-term interest rates steady near zero as expected and said it would likely stay there for an extended period. The fed said it will extend to the end of October a program to buy longer-term government securities.

The Dow gained 120.16 points, or 1.3%, to 9,361.61. The S&P 500 index added 11.46 points, or 1.2%, to 1,005.81, while the Nasdaq Composite Index gained 28.99 points, or 1.5%, to 1,998.72.

The FOMC also said that "Economic activity is leveling out" and "conditions in financial markets have improved further in recent weeks." But the fed warned at the same time that economic activity is likely to remain weak for some time. It also said household spending, while stabilizing, is still weak as a result of the grim labor market and tight credit.

It was positive news on economic front as well for the US economy. Existing-home sales rose 3.8%. However, mortgage applications fell 3.5%, as rising mortgage rates depressed refinancing demand.

But the trade gap widened in June to 27 billion dollars as higher prices on oil imports offset gains in exports.

Precious metals end higher

Gold and silver gain as Fed keeps interest rates at record low

Yellow metal prices rose on Wednesday, 12 August, 2009. Prices fell as the Fed decided to keep interest rates at record low at its Federal Open Market Committee meeting. Silver prices also gained.

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 Wednesday, gold for December delivery ended at $952.5, higher by $4.90 (0.5%) an ounce on the New York Mercantile Exchange. But gold prices fell during after-hours electronic trading. Last week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 7.1%.

Gold ended July, 2009 higher by 2.8%. Before this, 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 (11.7%) since then.

On Thursday, Comex silver futures for September delivery gained 24 cents (1.7%) to $14.585 an ounce. Last week, silver ended higher by 5.2%.

Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 29.6% this year. For 2008, silver had lost 24%.

The FOMC left its target range for the fed funds rate unchanged at 0.00% to 0.25% and will keep the interest rate at exceptionally low levels for an extended period. That was expected, though. FOMC expects inflation to remain subdued for some time and economic activity is likely to remain weak for some time. The FOMC did say sluggish income growth will constrain household spending, though members hold the belief that economic activity is leveling out.

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 53 (0.36%) at Rs 14,860 per 10 grams. Prices rose to a high of Rs 14,888 per 10 grams and fell to a low of Rs 14,806 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 282 (1.2%) higher at Rs 23,399/Kg. Prices opened at Rs 23,132/kg and rose to a high of Rs 23,425/Kg during the day's trading.

Crude gains

Prices inch up due to weak dollar despite rise in inventories

Crude prices ended higher on Wednesday, 12 August, 2009. Prices rose in synchronization with rising US stocks and also due to the weak dollar.

On Wednesday, crude-oil futures for light sweet crude for September delivery closed at $70.16/barrel (higher by $0.71 or 0.8%). During intra day trading, crude soared to an intraday high of $71.13 a barrel and fell to an intraday low of $68.84 a barrel on Globex. Last week, crude ended higher by 2.1%.

For the month of July, 2009, crude ended lower by a marginal 0.6%. 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 44.3% since then. Year to date, in 2009, crude prices are higher by 47.8%.

EIA reported today that crude supplies rose by 2.5 million barrels to stand at 352.0 million barrels during the week ended 7, August, 2009. That was higher than the 1.2 million barrels expected.

The report also showed that gasoline stocks fell by 1 million barrels and distillate inventories rose by 800,000 barrels last week.

In the latest report, The International Energy Agency revised up its global oil-demand forecasts for 2009 and 2010 by 190,000 barrels a day and 70,000 barrels a day respectively, citing a stronger outlook for Asia for both years.

In the currency market on Tuesday, the dollar index, a six-currency gauge of the greenback's value, fell by almost 0.5%.

The FOMC left its target range for the fed funds rate unchanged at 0.00% to 0.25% and will keep the interest rate at exceptionally low levels for an extended period. That was expected, though. FOMC expects inflation to remain subdued for some time and economic activity is likely to remain weak for some time. The FOMC did say sluggish income growth will constrain household spending, though members hold the belief that economic activity is leveling out.

Also at the Nymex on Wednesday, September reformulated gasoline fell 1.69 cents to end at $2.0253 a gallon and September heating oil dropped 1.96 cents to finish at $1.8921 a gallon.

September natural-gas futures fell 6.20 cents to end at $3.479 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 49 (1.5%) at Rs 3,400/barrel. Natural gas for August delivery closed lower by Rs 3.2(1.84%) at Rs 169.9/mmbtu.

Market may witness pull-back

Overnight gains in the US markets and a sharp rise in several Asian indices in the ongoing trading session may help the domestic indices rebound from yesterday's losses. However, the market may exhibit caution owing to lack of clarity, higher volatility. Among the indices, the Nifty could test higher levels at 4507 and 4550, and has a supports at 4399. The Sensex has a likely support at 14864 and may face resistance at 15203.

US indices bounced back sharply bounced on Wednesday, after the Federal Reserve held interest rates near historic lows and signaled the economy has finally started to stabilize. While the Dow Jones flared up by 120 points at 9,362, the Nasdaq moved up by 29 points at 1,999.

All the Indian floats had a field day on the US bourses. Rediff jumped over 8% each, Patni Computers, Tata Motors, MTNL, ICICI Bank, Satyam and VSNL gained around 2-4% each. While Infosys, Wipro, Dr Reddy and HDFC bank gained marginally.

Crude oil prices edged higher, the US light crude oil for September delivery moved up by 71 cents at $70.16 a barrel. In the commodity segment, the Comex gold for December delivery advanced by $4.90 to settle at $952.50 an ounce.

Daily trend of FII/MF investment in equities
On August 11, 2009, FIIs were net buyers of stocks to the tune of Rs704 crore (purchases worth Rs2894 crore and sales of Rs2190 crore) while domestic mutual funds were net sellers of stocks to the tune of Rs218 crore (purchases worth Rs652 crore and sales of Rs870 crore)

SGX Nifty shows gap up

4,549.5 +77.5

Daily News Roundup - Aug 13 2009

Reliance Communications ties up with Kodiak Networks, a group communications solutions provider for commercial roll out of mobile conferencing services. (BS)

Reliance Industries and IGL to sign gas supply pact for a supply of 0.308mmscmd. (BS)

Reliance Industries has pulled out of ONGC led consortium, which was formed to bid for a 40% stake in Venezuelan oil field. (ET)

Minister of Heavy Industries and Public Enterprises says, BHEL sell-off is not on agenda. (FE)

L&T bags Rs40bn Jaiprakash Power plan order. (BL)

Unitech to offer 5,000 affordable homes in 7 cities. (BS)

Supreme Court tells NTPC to seek transfer of high court case to Supreme Court. (ET)

NHPC IPO subscribed over 23 times. (ET)

Axis Bank to raise Rs9.4bn through preferential allotment of 18mn shares to its promoters. (ET)

Jaiprakash Ventures, the power vehicle of Jaypee Group will merge with Jaypee Hydro in the next 4-5 months. (BS)

Coal India hopes to raise Rs60bn from stake sale. (BS)

Ranbaxy enters protein supplement market with the launch of Revitalite. (BL)

Nalco may delay the construction of an aluminum smelter in Jakarta due to problems of securing coal supplies for power generation. (BL)

Fortis Healthcare to spend Rs6.6bn on retiring debt, setting up a hospital in Gurgaon and redemption of preference shares. (BS)

Jet Airways is in talks with real estate developers to jointly develop around 1.5 acre in Bandra-Kurla Complex, Mumbai. (ET)

Sun Group plans to enter aviation business. (ET)

Yes Bank not to hive off I-Banking arm. (BS)

Tata Chemicals to intends to buy additional 35.8% stake in Rallis India at a price not exceeding Rs850/share. (ET)

Adlabs to raise Rs6bn via rights issue. (BL)

DoT may demerge surplus VSNL land into a new company. (BL)

Orchid Chemicals has settled its patent litigation with Schering-Plough, a US based drug major. (BS)

Uttam Galva to increase galvanized and CR steel prices by Rs2,000/ton. (BS)

Mphasis has acquired the Indian IT captive unit of AIG for an undisclosed sum. (ET)

Yash Birla group plans Rs5bn education foray. (BL)

The Finance Minister unveiled the new direct tax code. (ET)

IIP for the month of June 2009 rises 7.8% yoy. (BS)

Monsoon rainfall deficit widens by 1% from the previous day to 29% on August 10. (FE)

Imports decline by 37% in July 2009 to US$18.31bn, while exports dropped by 26.6% to US$12.53bn. (ET)

Credit growth is marginally up to 15.8% for the fortnight ending July 31, 2009. (FE)

The Government has placed orders for generation equipment adding up to 80,610MW of power projects in the XI plan, exceeding an initial target of 78,750MW. (FE)

India will sign a free trade agreement with ASEAN. (ET)

A less taxing day for bulls!

When there is an income tax, the just man will pay more and the unjust less on the same amount of income.

One could be forgiven for ignoring deficit monsoon and H1N1 virus (Swine Flu) for a day. The market is likely to welcome upbeat IIP data and the draft of the new Direct Tax Code, especially the scrapping of the STT. A few tax proposals (like the one on capital gains) could cause some heartburn though. The devil is always in the detail. So, don’t pass a judgement on the new tax code in haste.

On the global front, things are much brighter than they have been for a while now. The Fed says that economic activity in the US is “leveling out”. As expected, the US central bank has left key rates unchanged. We expect a gap-up opening and a pleasant day for the bulls. In the near term, concerns on rich valuations and the selling spree by the FIIs could prove to be the party poopers aside from the bad news on monsoon.

Investor sentiment improved around the globe this month, turning bears into bulls in five of the world’s biggest stock markets, says a global survey. So, quite clearly the worst of the recession is history in most parts of the world. But, don’t uncork the bubbly yet, as periodic bad news will test the strength and sustainability of any rally. Weakness will persist for a while in some pockets of the world as well as individual economies before there are sustained signs of a turnaround.

FIIs were net sellers of Rs5.05bn in the cash segment on Tuesday on a provisional basis while the local funds pumped in Rs1.9bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs1.79bn. On Tuesday, the foreign funds were net buyers at Rs7.04bn in the cash segment. Their net purchases of Indian stocks have crossed $7.3bn year-to-date.

US stocks ended higher on Wednesday after the Federal Reserve held interest rates near historic lows and signaled that the world's largest economy has finally started to stabilize.

The Dow Jones Industrial Average added 120 points, or 1.3%, to 9,361.61, giving up bigger gains. The S&P 500 index rose 11 points, or 1.1%, to 1,998.72. The Nasdaq Composite index advanced 29 points, or 1.5%, to 1,005.81.

Among stock movers, gains were broad-based, with 28 of 30 Dow components rising.

The advance was broad-based, with financial, technology and other shares rebounding after sliding on Monday and Tuesday. Stocks had fallen in anticipation of the Fed meeting, with investors cashing out after several up weeks.

With the exception of a pullback in late June, the S&P 500 has basically been on the rise for five months. Since bottoming in early March, the index has gained 50% through the end of last week.

Wall Street rallied leading up to the Fed announcement as signs of improvement in the housing market pushed investors back into stocks following a two-day retreat. The market seesawed a bit after the FOMC announcement, with the Dow, Nasdaq and S&P 500 pushing towards fresh 2009 highs, before trimming those gains by the close.

As expected, the Fed held the fed funds rate, a key short-term bank lending rate, at historic lows near 0%. The Fed first cut the rate to that level last December.

In the closely watched policy statement, the Fed said it will maintain exceptionally low interest rates for an extended period of time. The bankers said that although economic activity is likely to remain weak, activity is "leveling out" and financial market conditions appear to have improved.

The FOMC statement has a slightly more positive undertone to it than in recent months, but it continued to indicate caution.

The median home price plunged a record 15.6% during the second quarter, versus a year earlier, according to a report from the National Association of Realtors. But on a more upbeat note, the median home price rose 4% in the quarter versus the first quarter of 2009, rising to $174,100 from $167,300.

In another positive sign, homebuilder Toll Brothers said the number of signed contracts rose in its just-completed quarter for the first time in four years, although the dollar value of the contracts fell. The luxury homebuilder also said the percentage of cancelled contracts dropped versus a year ago. Shares gained 14.4%.

A majority of economists think the recession has now ended, according to a Wall Street Journal (WSJ) survey. With manufacturing starting to pick up and the housing market closer to stabilizing, GDP is expected to grow modestly in the third quarter, after falling for four straight quarters.

The trade gap widened to $27 billion in June, the Commerce Department reported. The deficit stood at $26 billion in May, a 10-year low. The deficit was expected to widen to $28.7 billion in June, according to a consensus of economists.

After the close on Tuesday, Applied Materials reported a fiscal third-quarter loss versus a profit a year ago on weaker revenue. However, the results were better than what analysts were expecting. The chipmaker also said it would at least break even in the fiscal fourth quarter and potentially post a profit of up to 4 cents per share. Analysts expect a loss of 5 cents per share. AMAT shares gained 3.3% on Wednesday.

Treasury prices tumbled, raising the corresponding yields as investors reacted to a mixed government debt sale. Treasury's auction of $23 billion in 10-year notes showed demand roughly in line with recent levels, but not as strong as that seen last month.

The selloff pushed the yield on the benchmark 10-year note to 3.71% from 3.67% late on Tuesday.

The government is auctioning $75 billion in debt this week as part of its efforts to reduce the deficit and fuel its recovery efforts. Treasury's Tuesday auction of $37 billion in three-year notes saw stronger demand than other recent auctions. On Friday, Treasury sells $15 billion in 30-year bonds.

US light crude oil for September delivery rose 71 cents to settle at $70.16 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose $4.90 to settle at $952.50 an ounce.

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

July retail sales are due in the morning on Thursday. Wal-Mart Stores reports its results before the start of trade. The Dow component is expected to have earned 86 cents per share, as it did a year ago.

Thursday also brings the weekly jobless claims report from the Labor Department and readings on July import and export prices and June business inventories.

European shares gained ground as oil producers and E.On advanced, although earnings-related losses from Nestle added a bit of pressure. The pan-European Dow Jones Stoxx 600 index rose 1% to 228.70, gaining for the first time in three sessions.

The UK's FTSE 100 index was up 1% at 4,716.76, while Germany's DAX index rose 1.2% to 5,350.09 and the French CAC-40 index added 1.5% to 3,507.24.

Indian markets ended with marginal losses on Wednesday staging a strong recovery towards the last hour of the session. The swift recovery was led by the Realty, Pharma and Auto stocks. Even the Mid-Cap and the Small-Cap stocks attracted buying interest at lower levels.

Index heavyweight Bharti was the star of the day with HDFC Bank, Tata Motors and ITC among the other major gainers. The BSE Sensex recovered almost 320 points and the NSE Nifty recouped almost 100 points from their intra-day low.

Technically, the 50 Day moving average was the crucial level where the Nifty and Sensex both found support at on Wednesday. The Nifty and the Sensex managed to close above the important levels of 4,408 and 14,813 respectively.

India’s industrial production which was announced in afternoon accelerated in the month of June 2009 to 7.8% from 5.4% in the same period last year, the Government said on Wednesday. Markets had expected industrial output to rise 3.8% in the month of June. The Government announced that it has revised the May IIP figure to 2.2% from the provisional estimate of 2.7%.

The BSE Sensex slipped 54 points or 0.4% at 15,020 after touching a high of 15,043 and a low of 14,701. The index opened at 15,953 against the previous close of 15,074. The NSE Nifty ended lower by 14 points to shut shop at 4,457.

In Asia, the Nikkei in Japan ended lower by 1.4% at 10,435 while Australia's S&P/ASX ended flat at 4,343. The Hang Seng index in Hong Kong slipped 3% at 20,435. Shanghai index in China slipped by 4.6% at 3,112.

In Europe, stocks were trading mixed. The FTSE in the UK was flat. The DAX in Germany was up 0.3% and the CAC 40 index in France was up 0.2%.

Coming back to India, among the BSE sectoral indices, the Realty index was the top gainer, gaining 2.1%, followed by the Pharma index that was up 1.3%. The BSE Auto index up 0.3% and the BSE Consumer Durables index was up 0.3%.

On the other hand, BSE IT index ended with losses, down 1.7% followed by BSE Metal index up 1.6%.

The BSE Mid-Cap index erased early losses and ended higher by 0.3% and the BSE Small-Cap index gained by 0.5%.

Within the Sensex, the major losers were Bharti, Tata Motors, DLF, Sun Pharma, JP Associates and HDFC bank. Among the major losers were Tata Steel, TCS, HUL, Infosys, Hindalco and ONGC.

Outside the frontline indices, the big gainers in the broader market were Pantaloon Retail, GMDC, Godrej Industries, Jai Corp, Indian Hotels, Tata Tea and IDFC. On the other hand, losers included REI Agro, M&M Finance, Union Bank, Yes Bank, Max India and Hindustan Zinc.

Shares of Axis Bank marginally gained by 0.5% to Rs870. According to reports, the company plans to issue 10.83mn shares, worth about US$190mn at current prices, to its founders as part of a larger share sale plan to beef up its capital base.

Jaiprakash Power Ventures Ltd and L&T signed an agreement worth Rs40bn for the supply and erection of the Boiler and Steam Turbine and Generator islands for the 2x660MW Jaypee Nigrie Super Thermal Power Project.

Shares of L&T ended lower by 1.5% to Rs1421. The stock opened at Rs1400 and made an intra-day high of Rs1433 and a low of Rs1391. Total traded volumes stood at 0.5mn shares.

Shares of Mphasis ended flat at Rs500. The company announced that it has signed definitive agreement to acquire AIG Systems Solutions Ltd, part of Amercian International Group Inc. AIGSS is an India-based provider of information technology services and solutions to AIG companies worldwide.

The stock hit an intra-day high of Rs522 and a low of Rs484. Total traded volumes stood at 0.32mn shares.

Shares of Orchid Chemical gained by 2% to Rs101 after the company announced the settlement of the patent litigation between Orchid and Schering-Plough relating to Desloratadine Tablets, 5 mg and Desloratadine 2.5 mg and 5 mg Orally Disintegrating Tablets (ODT), the generic versions of Schering-Plough's Clarinex® and Clarinex® RediTabs® allergy medication. The litigation has been pending in the U.S. District Court of New Jersey since September 2006.

Shares of PVR fell as much as 7% after the government announced that it orders to close down movie theatres in Mumbai for three days over a swine flu scare in the city.

Among the other major losers were Inox Leisure which declined 3% to Rs51 and Adlabs fell by 0.5% to Rs314.

Mumbai, India’s commercial hub, shut schools and movie theatres as swine flu-related deaths rose to nine as of yesterday. Schools will close for seven days and malls and movie theatres for three to contain the virus, Prajakta Lavangare, a director general of the Maharashtra state government, said today.

Shares of EClerx Service shot up by over 7% to Rs332 after ~1.3mn equity shares changed hands in two transactions. That accounted to about 6.7% equity of the company. The stock opened at Rs315 and made an intra-day high of Rs340 and a low of Rs315. Total traded volumes stood at 6.5mn shares.

June IIP at 7.8%

May IIP revised down to 2.2% from 2.7%

The industrial output rose by a faster-than-expected 7.8% in June 2009 as against 5.4% in June 2008 and 2.2% in May 2009, data showed today, 12 August 2009.

The core sector data has also shown an improvement and the Index of Industrial Production (IIP) output numbers reflects the rise in business activity in the past two months.

Among the components used to measure industrial production, the manufacturing output rose 7.3%, the mining sector grew 15.4% in June 2009 over June 2008.

The electricity generation for the month rose 8% and the capital goods output rose 11.8% on a year-on-year basis.

The consumer durable goods continues to be the brightest spot, with its output up 15.5% in June 2009 over June 2008.

Meanwhile, the May IIP number has been revised downward to 2.2% from 2.7%.

Sun Pharma

Sun Pharma

Titagarh Wagons

Titagarh Wagons

FIIs in buying mode in equity

Inflow of Rs 704.10 crore on 11 August 2009

Foreign institutional investors (FIIs) bought shares worth a net Rs 704.10 crore on Tuesday, 11 August 2009, as against an outflow of Rs 227.30 crore on Monday, 10 August 2009.

FII inflow of Rs 704.10 crore on 11 August 2009 was a results of gross purchases Rs 2894.10 crore and gross sales Rs 2190 crore. The BSE Sensex rose 64.82 points or 0.43% at 15,074.59 on that day.

FII outflow in August 2009 totaled Rs 412.40 crore (till 11 August 2009). Foreign funds had bought equities worth Rs 11,625.20 crore in July 2009. FII inflow in calendar year 2009 totaled Rs 35,757.30 crore (till 11 August 2009).

There are a total of 1681 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Top Equity Mutual Funds

Top Equity Mutual Funds

Lakshmi Overseas Industries

We recommend a buy in Lakshmi Overseas Industries from a short-term perspective. It is evident from the charts of the stock that following a medium-term downtrend from its June peak of Rs 122 halted at the July low of Rs 68. Since then the stock has been on a medium-term uptrend. The counter has a significant long-term support in the range of Rs 62 and Rs 68. While trending upward, the stock surpassed its 21- and 50-day moving averages in late July and is trading way above these averages. On August 12, the stock gained 3 per cent reinforcing the medium-term uptrend. Moreover, the volumes are increasing over the past three trading sessions. The daily relative strength index (RSI) has entered the bullish region and weekly RSI has entered the neutral region from the bearish zone. Our short-term outlook on the stock is bullish. We expect it to rally until it knocks our price target of Rs 104. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 89.

via BL

SGX Nifty Live Update - Aug 13 2009

4,540.0 +68.0

NHPC Final Subscription Figures

Qualified Institutional Buyers (QIBs) 29.1608

Non Institutional Investors - 56.7074

Retail Individual Investors (RIIs) 3.8730

Employee Reservation 0.5697