Weekly Wrap - Aug 21 2009

Weekly Wrap - Aug 21 2009

India Strategy - Aug 21 2009

India Strategy - Aug 21 2009

Weekly Support and Resistance Levels

COMPANY NAME	S3	S2	S1	CLOSING PRICE	R1	R2	R3
ABB	608	646	667	705	726	764	785
ACC	668	702	743	777	818	852	893
Ambuja Cem	89	92	95	98	102	105	108
BHEL	2,033	2,136	2,198	2,302	2,364	2,467	2,530
BPCL	469	493	507	531	544	568	582
Bharti	376	390	398	412	420	434	442
Cairn	225	233	237	244	249	256	260
Cipla	214	227	246	259	278	291	310
DLF	338	354	366	382	394	410	422
Gail	300	314	323	337	346	360	369
Grasim	2,289	2,387	2,471	2,569	2,653	2,750	2,835
HCL Tech	221	244	257	280	292	315	328
HDFC Bank	1,316	1,371	1,411	1,466	1,506	1,561	1,601
Hero Honda	1,242	1,337	1,388	1,483	1,534	1,629	1,680
Hindalco	90	94	99	104	109	114	119
HUL	234	244	251	261	267	277	283
HDFC	2,040	2,199	2,282	2,441	2,525	2,683	2,767
ICICI Bank	660	694	712	745	764	797	816
Idea	70	75	78	83	86	91	94
Infosys	1,854	1,923	1,964	2,033	2,074	2,143	2,184
ITC	204	213	220	229	236	245	252
L&T	1,297	1,364	1,416	1,483	1,535	1,602	1,654
M&M	684	730	755	801	826	872	897
Maruti	1,181	1,264	1,306	1,388	1,430	1,513	1,555
Nalco	276	297	310	331	345	366	379
NTPC	194	197	201	205	209	212	216
ONGC	1,094	1,128	1,157	1,192	1,221	1,255	1,284
Powergrid	98	101	105	108	111	114	117
PNB	614	635	653	674	692	713	731
Ranbaxy	272	287	297	312	321	336	346
Rcom	222	231	239	248	256	265	273
Reliance	1,719	1,786	1,861	1,929	2,003	2,071	2,146
Reliance Infra	955	1,003	1,059	1,107	1,164	1,212	1,268
Reliance Petro	106	110	115	119	124	129	134
Reiance Power	144	147	152	156	161	165	170
Satyam	84	88	95	99	105	109	115
Siemens	387	418	434	465	481	512	528
SBI	1,590	1,663	1,703	1,776	1,816	1,889	1,929
SAIL	147	152	157	162	168	173	178
Sterlite	550	577	602	629	654	681	706
Sunpharma	1,079	1,116	1,151	1,188	1,223	1,260	1,294
Suzlon	78	81	84	87	90	93	95
Tata Com.	435	457	475	498	516	539	557
TCS	473	486	496	509	520	533	543
Tata Motors	370	389	413	433	457	476	500
Tata Power	1,147	1,210	1,244	1,307	1,340	1,403	1,436
Tata Steel	395	411	429	445	462	479	496
Unitech	71	76	81	86	91	96	101
Wipro	465	484	494	513	524	542	553
Zee	172	181	187	196	201	210	216

Japan also moves out of recession

Japan's economy grew by 0.9% in the April-June quarter from the previous quarter on the back of improved exports and an increase in private spending. That was slightly short of a median forecast of a 1% growth. Japan's economy grew 3.7% on an annualized basis in the quarter ended June following a revised annualized contraction of 11.7% in the previous quarter. This was the fastest annualised expansion in GDP since January-March 2008. External demand contributed 1.6% to April-June GDP growth in Japan, as exports turned up. Private spending rose 0.8%, boosted by Japanese government stimulus steps. Business spending dropped 4.3%, down for the fifth consecutive quarter as companies delayed expenditures on new plants and equipment. Japan's economy expanded for the first time in five quarters, following a revised 3.1% contraction in the January-March period and a 3.5% decrease in the final quarter of 2008 - the biggest drop on record. Japan joined France and Germany as the third G7 nation to come out of recession caused by the global credit crisis. Japan's second quarter growth compared with a 0.3% contraction in the US in the same quarter. The euro zone economy shrank 0.1% after a 2.5% fall in the first three months.

Powerless listing for Adani Power

Adani Power had a subdued debut on Aug. 20. The stock got listed at Rs105.15 per share as against its issue price of Rs100. The stock finally ended at Rs100 its issue price. The stock opened at Rs105 and made an intra-day high of Rs107.9 and a low of Rs98.5. Total traded volumes stood at 96mn shares on BSE. The company’s IPO of 248.8mn shares, which closed on July 31, was subscribed close to 22 times. The price band was between Rs90-100. The company raised close to Rs30bn through the issue. The retail portion was subscribed close to three times, the QIB portion by more than 39 times and high-net worth individuals 8.5 times. The issue, which was open to anchor investors, received bids for 9.4 crore shares against the 5.24 crore shares offered to them. According to reports, an environmental group has moved the Bombay High Court through a Public Interest Litigation (PIL) against coal mining by Adani in Chandrapur district closely located to buffer zone of the Tadoba Andhari Tiger Reserve. Adani has been allotted coal blocks there for its Tiroda (Bhandara) power plant.

Realty ups market

Taking lead from overseas stock markets, the 30-stock index of BSE, the Sensex, in lack of clear signals gyrated around 100 points in early trades. However, frenzied
selling pressure caused it to dip below 14850-mark to touch an intra-day low of 14835. Though the market erased most of its loss by noon trades, the pull-back from lower levels came toward the close, after a fresh bout of buying in several frontline stocks saw the Sensex touch an intra-day high of 15275. The Sensex ended the session 229 points up at 15241, while Nifty moved up by 75 points to 4529.

The market breadth was positive. Of the 2,771 stocks traded on the BSE 1,711 stocks advanced, whereas 958 stocks declines. 102 stocks ended unchanged. All the 13 sectoral indices on the BSE closed positive. BSE Bankex moved up by 2.19% topping the list while BSE CG, occupying the second slot, was up by nearly 1.90%. BSE Power added 1.84%, BSE HC moved up by 1.80 and BSE Realty gained 1.18%. All other indices ended firm.

Several Sensex stocks registered decent gains. Hero Honda Motors flared up 4.84% to Rs1,480.55, ICICI Bank jumped by 3.64% to Rs745.65 and Mahindra & Mahindra gained 3.58% to Rs801.75. Bharti Airtel, ACC, Bharat Heavy Electricals, DLF, Infosys Technologies and Reliance Industries, ITC, Tata Consultancy Services, Maruti Suzuki India and Tata Power were up by more than 1-3% each. While only HDFC Bank shot down by 0.99% to Rs1,465.95.

Adani Power attracted volumes of over 1.94 crore shares on the BSE followed by IFCI (1.01 crore shares), Unitech (0.93 crore shares) and Ispat Industries (0.68 crore shares).

Nifty August 2009 futures above 4500

Turnover gallops

Nifty August 2009 futures were at 4532, at a premium of 3.20 points as compared to the spot closing of 4528.80. Turnover in NSE's futures & options (F&O) segment climbed to Rs 80,422.25 crore from Rs 61,882.96 crore on Thursday, 20 August 2009.

ICICI Bank August 2009 futures were at premium at 747 compared to the spot closing of 745.40.

Aban Offshore August 2009 futures were at premium at 1189.10 compared to the spot closing of 1177.10.

DLF August 2009 futures were near spot price at 382.35 compared to the spot closing of 382.30.

In the cash market, the S&P CNX Nifty rose 75.35 points or 1.69% at 4528.80.

Asian Markets shows Friday favor

Hang Seng, Nikkei keep losses as regional markets post weekly drop on Chinese concern

Stock market in Asian region edged higher on Friday, 21 August 2009, keeping a wary eye on volatile Chinese shares, ending the week on the sober note after a wild seesaw movement witnessed during the week.

On Wall Street, a better-than-anticipated reading on the Philadelphia Fed index helped stocks lock in a third consecutive day of gains as investors brushed off another unexpected rise in weekly jobless claims. The Dow Jones Industrial Average climbed 70.89, or 0.8%, to 9350.05, while the S&P 500 tacked on 10.91 points, or 1.1%, to 1007.37. The Nasdaq Composite edged up 19.98 points, or 1%, to 1989.22.

In the currency market, Japanese yen was lifted higher in Asian session today by news that China is setting rules to tighten bank capital requirements and made a new higher against dollar, but lacks follow through buying so far. Similar situation is found in dollar as the recovery earlier lacks sustainable momentum so far and recent consolidation is likely still in progress.

The Japanese yen strengthened against greenback and euro as Asian stocks dropped and China was said to be planning to tighten capital requirements for banks, boosting demand for Japan’s currency as a refuge. The Japanese yen was quoted at 93.57 per greenback, while 133.13 per euro on Friday.

The Hong Kong dollar was trading at HK$ 7.7512 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 dropped on Friday after investors sold out of the currency in response to reports suggesting Chinese authorities would slow lending among the country's banks. But the local currency staged a strong rebound late in the session after European markets opened to finish just shy of $US0.8300. At the local close, the dollar was trading at $US0.8295, down from Thursday's close of $US0.8310.

In Wellington trade, the New Zealand dollar stepped lower when risk aversion increased. The culprit this time was a report that China plans to tighten capital requirements for banks to curb the record lending that has fuelled a 60% rise in the nation's stock market. The speculation caused interest rate markets to rally and risk currencies to sell off, said Lloyd Cartwright, head of financial markets at Westpac Institutional Bank. At the time of closing, the NZ dollar was at US67.17c, down from US67.45c at the same time yesterday.

The South Korean won closed at 1,249.7 won to the U.S. dollar, down 2.8 won from Thursday's close as foreign investors shed the won on heightened risk aversion.

The Taiwan dollar strengthened against the greenback. The Taiwan dollar gain against the US dollar as it was trading higher at NT$ 32.8980, up by NT$ 0.0680 from Thursday’s close of NT$32.9660.

In the commodity market, crude oil fell in New York, paring this week’s gains, after an unexpected increase in initial jobless claims in the U.S. raised concern that fuel demand may slow in the world’s biggest energy consumer.

Crude oil for October delivery fell as much as 88 cents, or 1.2%, to $72.03 a barrel in electronic trading on the New York Mercantile Exchange. It was at $72.48 at 2:42 p.m. Singapore time.

Brent crude oil for October settlement declined as much as 68 cents, or 0.9%, to $72.65 a barrel, on the London- based ICE Futures Europe exchange. It was at $73.05 a barrel at 2:42 p.m. Singapore time. The contract dropped $1.26, or 1.7%, to $73.33 a barrel yesterday.

Gold fell for the first time in three days after an unexpected increase in weekly U.S. jobless claims sent the dollar higher, eroding demand for bullion as an alternative investment. Silver was little changed. Gold futures for December delivery dropped $3.10, or 0.3%, to $941.70 an ounce on the Comex division of the New York Mercantile Exchange.

Coming back in equities, Asian markets closed mixed, but ended mostly lower for the week. Concerns that Beijing might be moving to tighten bank lending weighed on Hong Kong shares, though stocks traded on the Mainland ended higher, continuing a recent rebound after sharp losses so far this month. Japanese stocks ended lower Friday as the strengthened yen hurt exporters.

In Japan, the shares market dropped with benchmark indices touches three-week closing low on broad based selling pressure across the board on stronger yen and the US government decision to end cash-for-clunkers program. At the closing bell, the Nikkei 225 Stock Average index dropped 145.21 points, or 1.4%, to 10,238.20, meanwhile the broader Topix index dropped 11.25 points, or 1.17% to 947.34.

In Mainland China, share market surged after opening lower, boosted up by banks and financials after better than expected earning from Industrial & Commercial Bank of China and Shenzhen Development Bank. Shares of energy, materials, and industrials bounced after commodities and oil prices gained overnight and rekindled recovery sign. Properties spurted after China's new bank loans rebounded to about 500 billion Yuan in August after shrinking to 356 billion Yuan in July. Consumer staple and consumer discretionary sector surged on sign of government support for the sliding stock market.

At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, advanced 49.19 points, or 1.69% to 2,960.77, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, bounced 1.88%%, to 3,203.7. The Shanghai Composite index tumbled 86.2 points, or 2.83%, while the CSI 300 Index has lost 140.76 points or 4.2%, for the week ended Friday, 21 August 2009.

On the economic front, the State Administration of Foreign Exchange said that China current account surplus of $130 billion in the first half of 2009, down 32% on year due to slumping exports and increasing outbound investments.

China's trade surplus in the first six months was $96.9 billion, down $2.1 billion from the previous year, with exports plummeting 21.8% during the period, according to the General Administration of Customs. Meanwhile, foreign direct investment in China shrank 17.9 % to $43 billion in January to June due to the global economic downturn.

In Hong Kong, benchmark index retreated as profit taker cashed in by selling major heavyweights after strong gains in the previous session and a disappointing second quarter performance from China Mobile. Energy sector shrunk with losses in heavyweight Sinopec, PetroChina, and CNOOC. Banks and financials fell as investors encouraged to locked gains on fears of a likely monetary policy tightening.

The Hang Seng Index dropped 129.84 points, or 0.64%, to 20,199.02, while the Hang Seng China Enterprise dived 54.11 points, or 0.47%, to 11,464.73. The Hong Kong benchmark Hang Seng Index surrendered 694.31 points or 3.32%, while Hang Seng China Enterprises Index succumbed 435.07 points or 3.66%, in the week ended Friday, 21 August 2009.

In Australia, the stock market dragged down by telecom heavyweight Telstra after a major shareholder sold a chunk of its stake. Lesser than expected earning and warning of further bad debt increase by Westpac Banks intensified selling pressure on other banks shares. Materials and resources tumbled after RIO reported a 65% drop in 1H earnings, below expectations. Consumer discretionary tumbled after Billabong International earning missed forecast.

At the closing bell, the benchmark S&P/ASX200 index tumbled 86.9 points, or 1.99%, to 4,290.6, meanwhile the broader All Ordinaries added 85.7 points, or 1.95%, to 4,305.7. The benchmark S&P/ASX200 index has lost 170.40 points or 3.82%, while the Broader All Ordinaries dropped 159.40 points or 3.57%, in the week ended Friday, 21 August 2009.

In New Zealand, stock market ended lower after witnessing flat start early today. Shares slipped as Telecom, the country's largest listed company, fell in early trading on the New Zealand stock exchange after the company reported its full year results negative. The share market registered its second consecutive decline to end week in the negative. The NZX50 was down 0.59% or 18.16 points to 3034.95. The NZX 15 declined 0.36% or 20.40 points to close at 5598.57

In South Korea, stocks ended higher, boosted by strong gains for auto and tech companies. Reversing falls in late trading, the benchmark Korea Composite Stock Price Index (KOSPI) climbed 4.59 points to close at 1,580.98.

In Singapore, the stock market tumbled after opening higher, dragged down by muted Asian peers and selling pressure on top banks and other blue chips shares. Meanwhile multi industries, construction, and manufacturing shares tumbled in line with market rally. China origin shares fell as investors encouraged to locked gains on fears of a likely monetary policy tightening. The blue chip Straits Times Index tumbled 14.71 points, or 0.57%, to 2,544.86.

In Taiwan, stock market finished the week lower as worries about a volatile Chinese market offset Taiwan's upbeat GDP data, with leading technology shares lower. The benchmark Taiex share index continued losing for the fifth session as it ended the session lower by 78.43 points or 1.16% in a day, closing the day at 6654.80, lowest closing since 13 July 2009 when market closed the day at 6530.82.

On the economic front, Taiwan’s economy will score a moderate growth of 3.92% in 2010, as export trade will jump 15% to serve as a major growth driver again, said Shi Su-mei, director general of budget, accounting, and statistics, yesterday (Aug. 19).

The Directorate General of Budget, Accounting, and Statistics (DGBAS), under the Executive Yuan, reported that the nation’s economy has bottomed out from the first quarter this year but will not regain positive growth until the fourth quarter, after five consecutive months of decline from the third quarter last year. It slightly revised upward its forecast for this year’s growth rate to negative 4.04%, from original negative 4.25%.

In Philippines, stock market was closed on the account of public holiday.

In India, broad-based buying propelled key benchmark indices to day's high in late trade in contrast to a subdued start. Revival of monsoon rains, gains in Chinese stocks, higher European markets and a rebound in US index futures triggered rally on the domestic bourses. The BSE 30-share Sensex was up 228.51 points or 1.52% to 15,240.83. The S&P CNX Nifty was up 75.35 points or 1.69% to 4,528.80.

Elsewhere, Malaysia's Kula Lumpur Composite index went up 0.03% or 0.36 points to 1163.79 while stock markets in Indonesia’s Jakarta Composite index ended the day higher at 2333.90.

In other regional market, European shares traded modestly higher on Friday as data fed into hopes for an improving economy. On a regional level, the U.K. FTSE 100 index advanced 1% or 46.91 points to 4,803, the German DAX index climbed 1.4% or 76.62 points to 5,388 and the French CAC-40 index rose 1.6% or 56.01 points to 3,561.

Market drifts lower amid volatile global stocks

The key benchmark indices edged lower in the week ended Friday 21 August 2009 on concerns the drought-like situation in India could hurt economic growth. But the market mostly tracked global markets with Chinese market in focus. The Sensex gained in 3 out of 5 trading sessions in the week. A late recovery was witnessed after Monday's sharp losses triggered by global sell off. The Sensex managed to close above the psychological 15,000 mark after flirting around this mark throughout the week.

The BSE 30-share Sensex fell 170.80 points or 1.11% to 15,240.83 in the week ended 19 August 2009. The S&P CNX Nifty fell 51.25 points or 1.11% to 4528.80 in the week.

The BSE Mid-Cap index fell 44.49 points or 0.79% to 5559.32. The BSE Small-Cap index rose 50.42 points or 0.79% to 6,462.98. Both the indices outperformed the Sensex.

Poor rains this year have raised worries about growth in India's domestic-demand driven economy. Annual monsoon rains, running between June to September, are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Finance Minister Pranab Mukherjee said on Friday, 21 August 2009, the government will take all the required steps to control drought. Addressing a gathering of state agriculture ministers, Mukherjee said the monsoon situation in the country is difficult and that 246 districts were drought hit. He added late rains could help winter crop and said the government will import grains if needed. He said that the government has good buffer stock of grains. However, water shortage will impact hydropower generation.

The rainfall deficit in the country narrowed to 26% during the period from 1 June 2009 to 19 August 2009 from 29% during the period from 1 June 2009 to 12 August 2009. Rains were 2% below normal in the week ended 19 August 2009, the Meteorological Department said on Thursday, 20 August 2009

India has attracted 8% higher foreign direct investment (FDI) to $2.58 billion in June 2009, from $2.39 billion in June 2008, Secretary in Department of Industrial Policy and Promotion Ajay Shankar said on 19 August 2009.

Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 5593.52 points or 57.98% in calendar year 2009 as on 21 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7080.43 points or 86.76% as on 20 August 2009. FII inflow in calendar year 2009 totaled Rs 35,761 crore (till 19 August 2009).

Trading for the week started on a weak note. A disappointing US consumer sentiment report raised concerns about the global economic recovery triggering a sharp sell-off on the domestic bourses on Monday, 17 August 2009. Sustained bear hammering kept indices under pressure throughout the day. The BSE 30-share Sensex plunged 626.71 points or 4.07% at 14,784.92 on that day.

Recovery in global markets helped domestic bourses recover some of the Monday's sharp losses on Tuesday 18 August 2009. The BSE 30-share Sensex rose 250.34 points or 1.69% at 15,035.26 on Tuesday.

Key benchmark indices edged lower in choppy trade on Wednesday 19 August 2009 as world stocks fell led by a sharp slide in Chinese stocks. The BSE 30-share Sensex fell 225.62 points or 1.5% at 14,809.64 on Wednesday.

Firm global stocks helped Indian stocks edge higher in what was a volatile trading session on Thursday, 20 August 2009. Stocks rose across the globe led by a near 5% rally in China's Shanghai Composite index. The BSE 30-share Sensex gained 202.68 points or 1.37% to 15,012.32 on that day.

Broad-based buying propelled key benchmark indices to day's high in late trade in contrast to a subdued start on Friday, 21 August 2009. Gains in Chinese stocks, higher European markets and a rebound in US index futures triggered rally on the domestic bourses. The BSE Sensex rose 228.51 points or 1.52% to 15,240.83 on that day.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 5.19% to Rs 1928.65. The government will speak in one voice on the Krishna-Godavari gas row, Law Minister M Veerappa Moily said after the ministerial panel set up to coordinate the government's position on the issue met for the second consecutive day late Thursday night.

Prime Minister Manmohan Singh had formed the panel to coordinate the government's legal stand over two overlapping disputes - supply of gas by Mukesh Ambani-headed Reliance Industries (RIL) to Anil Ambani's Reliance Natural Resources (RNRL), being heard in the Supreme Court, and between Reliance Industries and state-run power utility NTPC, which is being adjudicated in the Bombay High Court.

The dispute between Reliance Industries and Reliance Natural Resources (RNRL) is centered around the price and supply of gas from KG basin operating by RIL to RNRL for the power plants of Anil Dhirubhai Ambani group. NTPC-RIL case also deals with price and supply of gas to NTPC's power plants from RIL.

India's largest mortgage lender by total income Housing Development Finance Corporation rose 5.24% to Rs 2431.95. After trading hours on Thursday, 20 August 2009 HDFC announced the pricing and terms of a simultaneous issue of equity warrants and non-convertible debentures to qualified institutional buyers.

HDFC said each warrant is priced at Rs 275, with a right exercisable by the warrant holder to exchange each warrant with one equity share of face value of Rs 10 each, any time before the expiry of a period of 3 years from the date of its allotment, at a warrant exercise price of Rs 3,000 per equity share. The issue price of Rs 275 per warrant is neither adjustable with the warrant exercise price nor refundable by the company.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 0.18% to Rs 1483.55 after the global rating agency Moody's on Thursday cut its rating outlook on the company to negative from stable. Moody's said outlook change on Larsen & Toubro (L&T)'s BAA2 rating reflects increase in consolidated debt.

India's largest electric equipment maker by sales Bharat Heavy Electricals rose 4.38% to Rs 2297.80. The company bagged an order worth Rs 2,630 crore. The announcement was made during trading hours on Friday.

India's largest copper maker by sales Sterlite Industries fell 5.09% to Rs 628.65 due to concerns over a bidding war for acquiring US bankrupt copper minter Asarco. Sterlite Industries on Thursday announced that it is increasing its offer for purchasing the operating assets of Asarco by about $ 500 million. The company also said it will support a plan of reorganization that is intended to pay Asarco's creditors in full their allowed amount of claims and full post petition interest.

With this hike, the revised total consideration will increase to approximately $ 2.1 billion, nearly matching Grupo Mexico's offer of $ 2.2 billion.

India's largest cellular services provider by sales Bharat Airtel rose 0.87% to Rs 411.50. Bharti Airtel and South Africa's MTN Group have extended until 30 September 2009 their exclusive talks aimed at merging their operations to create the world's third-largest mobile operator, Bharti said during trading hours on Thursday, 20 August 2009.

The two companies - Bharti and MTN said in separate but similar statements that discussions continued to progress satisfactorily, though no decision had yet been taken to acquire any shares or implement the potential transaction.

India's second largest cellular services provider by sales Reliance Communications (RCom) 3.9% to Rs 248.50. As per reports company is in talks with Mobile Telecommunications Company K.S.C., known as Zain, for a potential acquisition of its African operations. Zain is selling Celtel, the division that is present in 13 nations in the continent, valued at $10 billion. Zain acquired Celtel in 2005 for $3.36 billion.

Auto stocks rose after a survey on hiring trends in India found that recruitment in auto and ancillary units were up 11% in July 2009, compared with June 2009, raising optimism that the sector is once again poised for a high growth after the global economic slowdown hit auto firms hard last year

India's largest car market by sales Maruti Suzuki India rose 2.93%. India's largest tractor marker by sales Mahindra & Mahindra rose 1.65%.

India's second largest bike marker by sales Bajaj Auto gained 0.45%. India's largest bike marker by sales Hero Honda Motors rose 0.16%.

India's biggest bank in terms of branch network State Bank of India (SBI) fell 1.15% . O P Bhatt, Managing Director of State Bank of India said on Wednesday 19 August 2009, the bank hopes to maintain 40% growth in net profit in the year ending March 2010. He also ruled out rights issue by the bank in the near future.

Bhatt added that he does not see any possibility of interest rates going up till October or November. In fact, interest rates may decline by 25-50 basis points between now and the busy Diwali season, Bhatt added.

India's largest private sector bank by net profit ICICI Bank rose 0.2%. The bank has repaid $300 million of notes that matured on 18 August 2009, it said after market hours on Thursday, 20 August 2009.

IT stocks edged lower amid mixed economic data in the US, the biggest market for Indian IT firms. India's largest IT exporter by sales TCS fell 2.29%.

India's second largest IT firm by sales Infosys fell 0.56%. As per reports the company has bid for at least 10 large government projects as part of a drive to lower its dependence on the US market. India's third largest IT exporter by sales Wipro rose 0.35%.

Shares of Adani Power settled at Rs 100.05 on Thursday, on its debut in the secondary market, a marginal premium over initial offer price of Rs 100.

Market may remain volatile ahead of F&O expiry ahead

Equities
may remain volatile next week as investors roll over positions in the futures & options (F&O) contracts from August 2009 series to September 2009 series ahead of the expiry of the August 2009 series on Thursday, 28 August 2009. Global markets may continue to play a pivotal role in setting the direction. Scanty monsoon rains may weight on investor sentiment.

Poor rains this year have raised worries about growth in India's domestic-demand driven economy. Annual monsoon rains, running between June to September, are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Finance Minister Pranab Mukherjee said on Friday, 21 August 2009, the government will take all the required steps to control drought. Addressing a gathering of state agriculture ministers, Mukherjee said the monsoon situation in the country is difficult and that 246 districts were drought hit. He added late rains could help winter crop and said the government will import grains if needed. He said that the government has good buffer stock of grains.

Prime Minister Manmohan Singh recently said that India is equipped to handle a widespread drought as there is room for several fiscal steps to cushion the impact of a dry spell.

The rainfall deficit in the country narrowed to 26% during the period from 1 June 2009 to 19 August 2009 from 29% during the period from 1 June 2009 to 12 August 2009. Rains were 2% below normal in the week ended 19 August 2009, the Meteorological Department said on Thursday, 20 August 2009

Meanwhile, investor optimism about the global economy has soared to its highest level in nearly six years, with portfolio managers putting their cash back into equity markets, a global fund manager survey for August 2009 by a foreign brokerage house showed.

A net 75% of survey respondents believe the world economy will strengthen in the coming 12 months, the highest reading since November 2003 and up from 63% in July 2009. Confidence about corporate health is at its highest since January 2004. A net 70% of the panel respondents expect global corporate profits to rise in the coming year, up from 51% last month.

Trend in foreign fund flow holds key. It has been a major driver of secondary equity markets in India. Heavy buying by foreign funds has triggered a solid surge on Indian stocks this year. Foreign funds turned sellers after the recent strong buying in equity markets. Foreign institutional investors (FIIs) sold shares worth Rs 396.30 crore this month (till 19 August 2009). FII inflow in calendar year 2009 totaled Rs 35,761 crore

Sensex regains 15,000, Nifty above 4,500 as pivotals rally

Key benchmark indices extended gains for the second day in a row as European markets and US index futures rose. The BSE 30-share Sensex jumped 228.51 points or 1.52%, recovering a massive 405.75 points from the day's low. Stocks rallied in second half of the day's trading session after a subdued start. Revival of monsoon rains and gains in Chinese stocks underpinned sentiment. The barometer index regained the psychological 15,000 mark, having fallen below that level earlier in the day. The S&P CNX Nifty moved above the 4,500 mark in late trade.

As per provisional figures, foreign funds today, 21 August 2009, bought shares worth a net Rs 532.80 crore and domestic funds bought shares worth Rs 95.72 crore.

All the sectoral indices on BSE logged smart gains. Auto stocks were at the forefront of the rally, extending gains for the second day in a row on hopes of a recovery in sector. Among stock-specific activity, index heavyweights Reliance Industries gained over 1.5%, and ICICI Bank jumped over 3.5%. Larsen & Toubro was almost unchanged, recovering from an initial slide. Hero Honda Motors advanced over 4%. HDFC Bank lost over 1%

Intraday volatility was high. The market slipped in early trade on weak Asian stocks. A sustained recovery from lower level was witnessed later. The market moved between the positive and negative zone in mid-morning trade. The market surged in afternoon trade as the intraday recovery gathered strength with European stocks nudging higher in early trade. The market came off the higher level later before bouncing back again. After a bout of volatility, the market jumped to a fresh intraday high in late trade

Finance Minister Pranab Mukherjee today, 21 August 2009, said the government will take all the required steps to control drought. Addressing a gathering of state agriculture ministers, Mukherjee said the monsoon situation in the country is difficult and that 246 districts were drought hit. He added late rains could help winter crop and said the government will import grains if needed. He said that the government has good buffer stock of grains. However, water shortage will impact hydropower generation

Poor rains this year have raised worries about growth in India's domestic-demand driven economy. Annual monsoon rains, running between June to September, are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Prime Minister Manmohan Singh recently said that India is equipped to handle a widespread drought as there is room for several fiscal steps to cushion the impact of a dry spell.

The rainfall deficit in the country narrowed to 26% during the period from 1 June 2009 to 19 August 2009 from 29% during the period from 1 June 2009 to 12 August 2009. Rains were 2% below normal in the week ended 19 August 2009, the Meteorological Department said on Thursday, 20 August 2009

European markets nudged higher as the latest data raised hopes the economy in the region is recovering. Key benchmark indices in UK, Germany and France were up by between 0.88% and 1.23%

The Markit/CDAF French flash manufacturing purchasing managers index rose to 50.2 in August 2009 from 48.1 in July 2009, a 15-month high and above the 50 no-change threshold. In Germany, the manufacturing activity fell at its slowest pace in 12 months in August 2009.

Chinese markets rose in volatile trade after Industrial & Commercial Bank of China posted higher-than- estimated second-quarter profit. The Shanghai Composite index was up 1.69%. South Korea's Seoul Composite rose 0.29%.

But most other Asian stocks fell on concerns China might tighten bank lending. Key benchmark indices in Japan, Taiwan, Honk Kong, and Singapore were down by between 0.50% and 1.40%.

There have been talks in recent months that a large amount of bank lending in China has found its way into the stock market.

US markets extended their winning streak for a third straight day on Thursday, 20 August 2009 helped by some upbeat news from the manufacturing sector that helped offset a disappointing job report. The Dow Jones industrials gained 70.89 points, or 0.76%, to 9,350.05. The S&P 500 index added 10.91 points, or 1.09%, to 1,007.37. The Nasdaq Composite Index gained 19.98 points, or 1.01%, to 1,989.22.

In economic data, the Philadelphia Federal Reserve branch said its gauge of manufacturing activity in the region rose to 4.2 in August 2009 from minus 7.5 in July 2009.

Leading indicators rose 0.6% in July 2009, inline with expectations, according to a report from the Conference Board. But jobs data disappointed. Initial jobless claims for the week ending 15 August 2009 to 576,000 from a revised 561,000 the week before, the Labor Department said on Thursday, 20 August in Washington. The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 4.7% in the week ended 8 August 2009.

US index futures which were down sharply earlier in the day, recovered. Trading in US index futures showed the Dow could rise 42 points at the opening bell on Friday, 21 August 2009.

Meanwhile in what could boost market sentiment, investor optimism about the global economy has soared to its highest level in nearly six years, with portfolio managers putting their cash back into equity markets, a global fund manager survey for August 2009 by a foreign brokerage house showed.

A net 75% of survey respondents believe the world economy will strengthen in the coming 12 months, the highest reading since November 2003 and up from 63% in July 2009. Confidence about corporate health is at its highest since January 2004. A net 70% of the panel respondents expect global corporate profits to rise in the coming year, up from 51% last month.

Closer home, Finance Minister Mukherjee has reportedly put his seal of approval on a plan that will make it compulsory for at least a quarter of the shares in all listed companies to be owned by the public, including investment and financial institutions. Companies will be required to increase the public float by 5% annually until atleast 25% of the shareholding is in the hands of the public

The new rules will affect public sector companies like Steel Authority of India (government stake of 85.82%), Minerals and Metals Trading Corp (99.33%) National Mineral Development Corp (98.38%) and State Bank of Mysore (92.33%). Private companies in which the founders own over three-fourths of shares include Puravankara Projects (89.50%), Ackruti City (89.96%), Wipro (79.22%), Jet Airways (80%), Nirma (77.17%) and Novartis (76.42%) among others.

Meanwhile, the Securities and Exchange Board of India (Sebi) on Thursday, 20 August 2009 streamlines rights issue norms. The market regulator has restricted companies from using funds raised in rights issues until the share allotment was finalized. Until now, companies were able to use the funds once the stock exchange was convinced that 90% of the issue had been taken up.

Investors will also be allowed to use the banking channel to apply for shares in rights issues so that they don't have to wait for refund.

The BSE 30-share Sensex was up 228.51 points or 1.52% to 15,240.83. The Sensex opened 60.83 points lower at 14951.49. The barometer index slipped 177.24 points at the day's low of 14,835.08 in early trade. The Sensex rose 262.85 points at the day's high of 15,275.17 in late trade.

The S&P CNX Nifty was up 75.35 points or 1.69% to 4,528.80. Nifty August 2009 futures were at 4532, at a premium of 3.20 points as compared to the spot closing.

The Sensex had risen 202.68 points or 1.37% to 15,012.32 on Thursday, 20 August 2009, led by a near 5% rally in China's Shanghai Composite index.

Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 5593.92 points or 57.98% in calendar year 2009 as on 21 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7080.43 points or 86.76% as on 21 August 2009. FII inflow in calendar year 2009 totaled Rs 35761.00 crore (till 19 August 2009).

Coming back to today's trade, the BSE clocked a turnover of Rs 4887 crore, slightly higher than Rs 4,863.43 crore on Thursday, 20 August 2009. Turnover in NSE's futures & options (F&O) segment climbed to Rs 80,422.25 crore from Rs 61,882.96 crore on Thursday, 20 August 2009.

The market breadth, indicating the overall health of the market, was strong compared to negative breadth earlier in the day. On BSE, 1748 shares advanced as compared with 972 that declined. A total of 87 shares remained unchanged.

The BSE Mid-Cap index was up 1.50% to 5,559.32, underperforming the Sensex. The BSE Small-Cap index rose 1.61% to 6,462.98, outperforming the Sensex.

The BSE Bankex (up 1.76%), the BSE IT index (up 1.85%), the BSE Auto index (up 2.27%), the BSE FMCG index (up 1.58%), the BSE Oil & Gas index (up 1.60%), the BSE Teck index (up 1.96%), the BSE Realty index (up 3.48%), outperformed the Sensex.

The BSE Power index (up 1.41%), BSE Metal index (up 1.08%), BSE Consumer Durables index (up 0.42%), the BSE Healthcare index (up 0.43%), the BSE Capital Goods index (up 1.10%), the BSE PSU index (up 0.83%), underperformed the Sensex.

HDFC Bank was the lone loser in the 30-member Sensex pack. India's second largest private sector bank by net profit lost 1.19% to Rs 1463 on profit booking.

India's biggest bank in terms of branch network State Bank of India (SBI) rose 1.05%, extending Thursdays' near 4% rally. O P Bhatt, Managing Director of State Bank of India said on Wednesday 19 August 2009, the bank hopes to maintain 40% growth in net profit in the year ending March 2010. He also ruled out rights issue by the bank in the near future.

Bhatt added that he does not see any possibility of interest rates going up till October or November. In fact, interest rates may decline by 25-50 basis points between now and the busy Diwali season, Bhatt added.

India's largest private sector bank by net profit ICICI Bank jumped 3.69% to Rs 746 after a 1.85% rise in its American depository receipt (ADR) on Thursday, 20 August 2009. The stock came off day's low of Rs 706.90. The bank has repaid $300 million of notes that matured on 18 August 2009, it said after market hours on Thursday, 20 August 2009.

India's largest mortgage lender by total income HDFC reversed early fall and settled 1.15% higher at Rs 2424. The stock came off the day's low of Rs 2358. After trading hours on Thursday, 20 August 2009, the company announced the pricing and terms of a simultaneous issue of equity warrants and non-convertible debentures to qualified institutional buyers.

HDFC said each warrant is priced at Rs 275, with a right exercisable by the warrant holder to exchange each warrant with one equity share of face value of Rs 10 each, any time before the expiry of a period of 3 years from the date of its allotment, at a warrant exercise price of Rs 3,000 per equity share. The issue price of Rs 275 per warrant is neither adjustable with the warrant exercise price nor refundable by the company.

Auto stocks extended gains for the second day after a survey on hiring trends in India by found that recruitment in auto and ancillary units were up 11% in July 2009, compared with June 2009, raising optimism that the sector is once again poised for a high growth after the global economic slowdown had hit the sector hard last year

India's largest bike marker by sales Hero Honda Motors advanced 4.24% to Rs 1472.05. The stock extended Thursday's 4.01% rally. It was the top gainer from the Sensex pack

India's second largest bike marker by sales Bajaj Auto gained 1.12%. India's largest car market by sales Maruti Suzuki India rose 1.43%, extending Thursday's 5.27% rally. India's largest tractor marker by sales Mahindra & Mahindra advanced 3.51%. India's largest truck marker by sales Tata Motors rose 0.43%.

Auto ancillary stocks also joined the rally as their fortunes are closely linked to the auto sector. Lumax Automotive (up 4.96%), Bharat Seats (up 5.90%), Fairfield Atlas (up 4.92%), Bharat Forge (up 1.73%), and Motherson Sumi Systems (up 10.22%), rose.

Expansion plans, movement into new segments including the small car, lower interest rates, and stimulus packages are fueling the recruitment drive in the auto sector, the survey showed.

India's largest cellular services provider by sales Bharat Airtel advanced 2.36% after a newspaper report quoted Chairman Sunil Mittal as saying that the company is not looking to sweeten its deal to buy a stake in South Africa's MTN.

Bharti Airtel and South Africa's MTN Group have extended until 30 September 2009 their exclusive talks aimed at merging their operations to create the world's third-largest mobile operator, Bharti said during trading hours on Thursday, 20 August 2009.

The two companies - Bharti and MTN said in separate but similar statements on Thursday that discussions continued to progress satisfactorily, though no decision had yet been taken to acquire any shares or implement the potential transaction.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) was up 1.58% to Rs 1928, recovering from the day's low of Rs 1865. The government will speak in one voice on the Krishna-Godavari gas row, Law Minister M Veerappa Moily said on Thursday, 20 August 2009 after the ministerial panel set up to coordinate the government's position on the issue met for the second consecutive day late Thursday night. A statement in this regard is expected to be issued today, 21 August 2009.

Prime Minister Manmohan Singh had formed the panel to coordinate the government's legal stand over two overlapping disputes - supply of gas by Mukesh Ambani-headed Reliance Industries (RIL) to Anil Ambani's Reliance Natural Resources (RNRL), being heard in the Supreme Court, and between Reliance Industries and state-run power utility NTPC, which is being adjudicated in the Bombay High Court.

The dispute between Reliance Industries and Reliance Natural Resources (RNRL) is centered around the price and supply of gas from KG basin operating by RIL to RNRL for the power plants of Anil Dhirubhai Ambani group. NTPC-RIL case also deals with price and supply of gas to NTPC's power plants from RIL.

Other parties involved in the gas tussle gained. NTPC was up 0.32% while RNRL gained 1.96%

Realty shares rose on recent reports prominent realty firms Lodha Group and Oberoi Construction have filed a draft red herring prospectus (DRHP) with the Securities & Exchange Board of India (Sebi) for raising funds through an initial public offer (IPO). Omaxe (up 3.04%), Parsvnath Developers (up 2.21%), Sobha Developers (up 5.37%), HDIL (up 3.55%), and Unitech (up 1.66%), advanced.

India's largest realty firm by market capitalisation DLF gained 2.26% on reports the company had bagged a 350-acre plot for Rs 1,750 crore in Haryana, New Delhi, for developing a recreation and leisure project, making it one of the costliest land deals in recent times.

Indiabulls Real Estate surged 9.02% on reports the company has won the auction to redevelop the Mumbai Mantralaya building. In this regard, the company has clarified that it is awaiting a confirmation letter for the contract from the Public Works Department, government of Maharashtra.

Infrastructure related stocks 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 these firms and may help boost cement demand. IVRCL Infrastructure & Projects (up 4.90%), Punj Lloyd (up 3.53%), ABB (up 1.93%), Siemens (up 3.10%), Reliance Infrastructure (up 1.25%), GMR Infrastructure (up 2.38%), and GVK Power & Infrastructure (up 3.84%), advanced.

India's largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 0.17% to Rs 1484.75, staging a recovery from day's low of Rs 1451. Global rating agency Moody's cut its rating outlook on the company to negative from stable on Thursday, 20 August 2009. The announcement was made during trading hours on Thursday when the stock ended little changed. Moody's said outlook change on Larsen & Toubro (L&T)'s BAA2 rating reflects increase in consolidated debt.

India's largest power equipment market by sales Bharat Heavy Electricals gained 1.99% after it bagged an order worth Rs 2630 crore

EMCO rose 9.38% after company's chairman Rajesh Jain said that the company may use funds from its recent sale of unit Emco Energy for future growth.

McNally Bharat Engineering Company rose 9.97% after the company said its overseas unit will acquire KHD Humboldt Wedag's coal and minerals businesses. The company made this announcement during trading hours today, 21 August 2009.

IT stocks rose on improved manufacturing data in the US, the biggest market for Indian IT firms. India's second largest IT firm by sales Infosys advanced 1.67% to Rs 2026.15, reversing early fall. The stock recovered from day's low of Rs 1972. The stock had gained 2% on Thursday on reports the company has bid for at least 10 large government projects as part of a drive to lower its dependence on the US market.

India's third largest IT exporter by sales Wipro rose 1.43% and India's largest IT exporter by sales TCS gained 1.76%.

HCL Technologies climbed 10.09% in a pre-result rally. The company will declare its Q4 and year ended June 2009 results on 25 August 2009.

India's largest copper producer Sterlite Industries rose 1.10%. The company has increased its cash offer for acquiring bankrupt US copper miner Asarco and has offered $2.2 billion to Asarco matching its bid with rival Grupo Mexico. The company made this announcement before market hours on Thursday, 20 August 2009. This is for the second time in less than 10 days that Sterlite has increased the cash component for the bankrupt US miner. The stock rose 1.48% on Thursday, 20 August 2009

Other metal stocks were trading higher after LMEX, a gauge of six metals traded on the London Metal Exchange, rose 0.17% on Thursday, 20 August 2009.

Steel Authority of India (up 0.49%), Maharashtra Seamless (up 1.24%), Jindal Stainless (up 3.48%), Hindustan Zinc (up 1.88%), Hindalco Industries (up 0.68%), Tata Steel (up 0.43%), rose.

India's largest pharma company by market capitalisation Sun Pharmaceuticals rose 0.15% to Rs 1190, recovering from day's low of Rs 1150. The stock had gained 1.52% on Thursday, 20 August 2009 on reports of a faourable court ruling. As a result, the company will now be able to launch a low cost version of the drug of a block buster drug in the US by November 2010.

Unichem Laboratories jumped 6.52%, extending gains for the second consecutive day, after the company's overseas unit got approval from US drug regulator for a generic drug.

FMCG stocks rose on revival in monsoon rainfall. FMCG firms derive a substantial revenue from rural India. ITC (up 1.69%), Hindustan Unilever (up 1.34%), Dabur India (up 0.62%), Colgate Palmolive India (up 1.50%), Nestle India (up 1.49%), Marico (up 0.23%), rose.

Adani Power was the top traded counter on BSE with turnover of Rs 198.49 crore followed by Reliance Industries (Rs 147.09 crore), ICICI Bank (Rs 139.98 crore), Indiabulls Real Estate (Rs 126.55 crore) and Aban Offshore (Rs 118.53 crore).

Cals Refineries clocked the highest volume of 1.98 crore shares on BSE. Adani Power (1.94 crore shares), IFCI (1.02 lakh shares), Unitech (93.30 lakh shares), and Ispat Industries (68.45 lakh shares) were the other volume toppers in that order.

Tea shares gained on momentum buying. Jayshree Tea (up 20%), Harrisons Malayalam (up 19.96%), Warren Tea (up 14.31%), McLeod Russel (up 13.77%), Goodricke (up 18.69%), and Tata Tea (up 6.49%), gained.

The fall in domestic tea production due to lower than normal rainfall, coupled with sustained rise in domestic consumption, has facilitated firming up of tea auction prices. The global scenario, too, is favourable with regards to prices with fall in production in other tea producing countries such as Kenya and Sri Lanka.

Greenply Industries rose 3.65% after the company said that a meeting of a committee on rights issue will be held on 25 August 2009 to consider the terms of proposed rights issue. The company made the announcement after trading hours on Thursday, 20 August 2009.

Pre Session Commentary - Aug 21 2009

Today domestic markets are likely to slightly lower on mixed global cues. Asian markets are mixed today, whereas US markets ended with gains on thursday. Meanwhile, the SGX Nifty futures for August 2009 expiry was 9.5 points lower in Singapore. In the domestic arena, selling by foreign funds may fuel the sentiments. However, recovery in monsoon may bring some respite. Market is likely to remain volatile during the trading.

On Thursday, Domestic markets closed higher. The domestic market today took a sharp turn from the sharp fall yesterday, as sustained buying during the trading propelled market to end with gains. Benchmark indices surged to intraday high during final trading hours on account of upward movement in front liners led by strong European markets along with higher US index futures. Firm closing of Asian stocks also lifted the sentiments. In addition, stocks extended gains also on news that rainfall dearth has reduced a bit. India’s cumulative rainfall deficit has lessened to 27% during the period from 1 June 2009 to 18 August 2009 from 29% during the period from 1 June 2009 to 12 August 2009. Though, inflation came in negative territory for 10th consecutive week. Inflation for the week ended 8th August stood at -1.53% with the previous week''''s annual decline of -1.74%. The BSE Sensex ended above 15,000 level and NSE Nifty closed above 4,400 mark.

The BSE Sensex closed higher by 202.68 points or (1.37%) at 15,012.32 and NSE Nifty ended up by 59.35 points or (1.35%) at 4,453.45. BSE Mid Caps and Small Caps closed with gains of 43.33 and 51.88 points at 5,477.38 and 6,360.27 respectively. The BSE Sensex touched intraday high of 15,145 and intraday low of 14,928.18.

On Thursday, US stock markets closed higher for a third straight day on some positive economic data like encouraging manufacturing report. The Philadelphia Federal Reserve branch said its gauge of manufacturing activity in the region increased to 4.2 in august from minus 7.5 in July. In addition, firm overseas market also supported gains in the US market. However, market ignored disappointing jobless claims report Initial jobless claims for the week ended August 15 came in higher than expectations at 576,000 and continuing claims made a slight advance to 6.24 million due to the expiring unemployment benefits. US light crude oil futures for September delivery ended at $72.54 per barrel higher by 0.2% on the New York Mercantile Exchange. The September contract expired at settlement, with the bulk of trading revolving around October futures, which settled 92 cents, or 1.3%, lower at $72.91 a barrel.

The Dow Jones Industrial Average (DJIA) closed higher by 70.89 points at 9,350.05, NASDAQ index inclined by 19.98 points to 1,989.22 and the S&P 500 (SPX) closed higher by 10.91 points at 1,007.37.

Today major stock markets in Asia are trading mixed. Taiwan Weighted is trading up by 21.16 points at 2,932.74 followed by Seoul Composite, which is trading higher by 0.42 points at 1,576.81. However, Japan''s Nikkei is trading lower by 172.10 points at 10,211.31. Hang Seng is also down by 118.62 points at 20,210.64. Strait Times is down by 18.42 points at 2,541.15.

Indian ADRs ended in green on Thursday. In the IT space, Wipro was up 1.89%, Satyam Computers was up 1.69%, Infosys was up 0.37% while Patni Computers ended down 1.21%. In the banking space, HDFC Bank was up 2.5% and ICICI Bank was up 1.85%. In the telecom space, MTNL was up 1.84% and Tata Communication was up 0.91%. In other sectors, Sterlite Industries was up 3.46%, Tata Motors was up 1.66% and Dr Reddy''s Labs was up 0.25%.

The FIIs on Thursday stood as net sellers in equity and net buyers in debt. Gross equity purchased stood at Rs 2,288.70 Crore and gross debt purchased stood at Rs 75.00 Crore, while the gross equity sold stood at Rs 3,160.80 Crore and gross debt sold stood at Rs 0.00 Crore. Therefore, the net investment of equity and debt reported were Rs (872.10) Crore and Rs 75.00 Crore respectively.

On Thursday, Indian Rupee closed at 48.71/72 per dollar, 0.1% stronger than previous close of 48.78/79. The rupee gained strength as stock markets rebound from yesterday’s losses increasing expectations of foreign capital inflow.

On BSE, total number of shares traded were 41.13 Crore and total turnover stood at Rs 4,863.43 Crore. On NSE, total number of shares traded were 80.07 Crore and total turnover was Rs 13,245.55 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 30768297 shares, followed by Suzlon Energy with 29444298, Idea Cellular with 13713553, Hindalco with 8391589 and Ambuja Cements with 6721671 shares.

On NSE Future and Options, total number of contracts traded in index futures was 693849 with a total turnover of Rs 14,742.23 Crore. Along with this total number of contracts traded in stock futures were 491920 with a total turnover of Rs 15,139.69 crore. Total numbers of contracts for index options were 1360598 with a total turnover of Rs 30687.92 Crore and total numbers of contracts for stock options were 42555 and notional turnover was Rs 1,313.11 Crore.

Today, Nifty would have a support at 4,362 and resistance at 4,531 and BSE Sensex has support at 14,688 and resistance at 15,286.

India Conference

India Conference

Financial Services

Financial Services

Mphasis BFL

Mphasis BFL

NHPC, Oil India, Jindal Cotex Grey Market Premium

NHPC 36

4 to 6

Jindal Cotex 70 to 75

4 to 5

Oil India 1300 to 1500 (Approximate)

150 to 160

Market likely to open slightly lower on mixed global cues

Domestic indices are geared for a slightly lower start on mixed cues from global shores. The SGX Nifty futures for August 2009 expiry was down 9.5 points in Singapore. However, revival in monsoon rains, crucial for India's domestic demand driven economy may lift sentiments. On the flip side the sustained selling by foreign funds may weigh on the bourses. Meanwhile the likely progress of the ongoing gas dispute between the Ambani brothers may also influence markets.

Asian markets were trading mixed today, 21 August 2009. Key benchmark indices in China, South Korea and Taiwan were up by between 0.24% and 0.73%. However indices in Japan, Honk Kong, and Singapore were down by between 0.52% and 1.54%

US markets extended their winning streak for a third straight day on Thursday, 20 August 2009 after some positive economic data, including an encouraging report on manufacturing. The jump in the manufacturing index supported gains in the US market. The Dow Jones industrials gained 70.89 points, or 0.8%, to 9,350.05. The S&P 500 index added 10.91 points, or 1.1%, to 1,007.37, while the Nasdaq Composite Index gained 19.98 points, or 1%, to 1,989.22.

In economic data, the Philadelphia Federal Reserve branch said its gauge of manufacturing activity in the region rose to 4.2 in August 2009 from minus 7.5 in July 2009.

Leading indicators rose 0.6% in July 2009, inline with expectations, according to a report from the conference board. But not so encouraging numbers on the jobs front. Initial jobless claims for the week ending august 15 rose by 15,000, the final figure coming in at 576,000. Continuing claims made a slight advance to 6.24 million.

As per the provisional figures on NSE, foreign funds sold shares worth Rs 438.19 crore and domestic funds bought shares worth Rs 489.42 crore on Tuesday, 20 August 2009.

Foreign funds have resorted to selling after sustained inflows for five prior months. FII outflow in August 2009 totaled Rs 396.30 crore (till 19 August 2009). They had bought equities worth Rs 11,625.20 crore in July 2009. FII inflow in calendar year 2009 totaled Rs 35,773.40 crore.

Meanwhile, in a move that will streamline the rights issue process, the Securities and Exchange Board of India (Sebi) on Thursday, 20 August 2009 rationalised the disclosure requirements for rights issues. A rights issue is further issuance of capital by listed entities to existing shareholders.

Sebi has reduced the time period for finalisation of the basis of allotments in rights issues to 15 days from 42 days. The guidelines will be applicable for all rights issues where offer documents have been filed on or after the circular.

The cumulative rainfall deficit in the country has reportedly narrowed to 27% during the period from 1 June 2009 to 18 August 2009 from 29% during the period from 1 June 2009 to 12 August 2009. Annual monsoon rains, running between June to September, are the main source of irrigation for farms and are crucial for Asia's third-largest economy as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Meanwhile, the government will speak in one voice on the Krishna-Godavari gas row, Law Minister M Veerappa Moily said on Thursday, 20 August 2009 after the ministerial panel set up to coordinate the government's position on the issue met for the second consecutive day late Thursday night. A statement in this regard is expected to be issued today, 21 August 2009.

Prime Minister Manmohan Singh had formed the panel to coordinate the government's legal stand over two overlapping disputes - supply of gas by Mukesh Ambani-headed Reliance Industries (RIL) to Anil Ambani's Reliance Natural Resources Limited (RNRL), being heard in the Supreme Court, and between Reliance Industries and state-run power utility NTPC, which is being adjudicated in the Bombay High Court.

Gold turns pale

Silver remains flat as manufacturing data does not disappoint

Yellow metal prices fell on Thursday, 20 August, 2009. Prices fell today as manufacturing data in US checked in better than expected taking US dollar higher. But silver ended marginally higher.

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 December delivery ended at $941.7, lower by $3.1 (0.3%) an ounce on the New York Mercantile Exchange. Last week, gold ended lower by almost 1.1%. After four consecutive weekly gains, this was yellow metal's first weekly drop. Year to date, gold prices are higher by 6.1%.

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 (9%) since then.

On Thursday, Comex silver futures for September delivery rose marginally by 1 cents (0.01%) to $13.88 an ounce. Last week, silver ended higher by 0.23%.

Silver ended 2.7% higher for July, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 25% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the dollar index which weighs the value of dollar against a basket of six other currencies, rose by 0.2%.

The Federal Reserve Bank of Philadelphia reported on Thursday, 21 August, 2009 that manufacturing firms in the Philadelphia region improved in August, the first increase in nearly a year. The Philly Fed index rose to 4.2 in August from negative 7.5 in July. It was the highest reading since November 2007 and the first positive reading since September 2008.

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 lower by Rs 40 (0.27%) at Rs 14,897 per 10 grams. Prices rose to a high of Rs 14,947 per 10 grams and fell to a low of Rs 14,860 per 10 grams during the day's trading.

At the MCX, silver prices for September delivery closed Rs 8 (0.03%) lower at Rs 22,890/Kg. Prices opened at Rs 22,851/kg and fell to a low of Rs 22,767/Kg during the day's trading.

Crude ends higher

Natural gas prices tumble down

Crude prices remained volatile on Thursday, 20 August, 2009 but ultimately ended higher. Prices rose due to mixed batch of economic data.

On Thursday, crude-oil futures for light sweet crude for September delivery closed at $72.54/barrel (higher by $0.12 or 0.16%). The September crude contract expired today. Last week, crude ended lower by 4.8%.

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.

The Federal Reserve Bank of Philadelphia reported on Thursday, 21 August, 2009 that manufacturing firms in the Philadelphia region improved in August, the first increase in nearly a year. The Philly Fed index rose to 4.2 in August from negative 7.5 in July. It was the highest reading since November 2007 and the first positive reading since September 2008.

In a separate report, The Labor Department in US reported on Thursday, 21 August, 2009 that first-time filings for state unemployment benefits rose by 15,000 to a seasonally adjusted 576,000 last week, marking the highest level in initial claims since 25 July, 2009. Both initial claims and continuing claims ticked up in the latest readings, indicating that it's still very tough to find or keep a job.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 50% since then. Year to date, in 2009, crude prices are higher by 49%.

The Energy Information Administration reported yesterday that crude stocks fell by 8.4 million barrels to 343.6 million barrels during the week ended 14 Aug, 2009. Market was expecting a build up to the tune of 1.5 million barrels. The EIA also reported that motor gasoline inventories fell by 2.1 million barrels and distillate stocks decreased by 700,000 barrels.

Also at the Nymex on Thursday, September reformulated gasoline fell 5.24 cents, or 2.6%, to end at $1.9822 a gallon and September heating oil dropped 3.35 cents, or 1.7%, to finish at $1.8852 a gallon.

Natural gas for September delivery dropped 17.40 cents, or 5.6%, to end at $2.945 per million British thermal units on the New York Mercantile Exchange. EIA reported today that working gas in storage rose 52 billion cubic feet to stand at 3,204 Bcf during the week ended 14 August. At current levels, stocks were 562 Bcf higher than last year at this time and 513 Bcf above the 5-year average.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for September delivery closed lower by Rs 31 (0.86%) at Rs 3,564/barrel. Natural gas for September delivery closed lower by Rs 6.8 (3.9%) at Rs 165.3/mmbtu.