Oil India IPO Analysis

On slippery ground

With peak oil prices behind, little scope for volume growth, and government-imposed non-transparent subsidy sharing burden, the offer is not exciting

Oil India was incorporated as a private limited company on 18 February 1959 as Oil India Pvt Ltd, with Burmah Oil Company holding two-thirds of the equity share capital and the president of India the remaining one-third. Oil India Pvt Ltd transformed into an equal partnership joint venture company between Burmah Oil Company and the president of India in 1961 with the transfer of certain equity shares by Burmah Oil Company to the president of India. Following the enactment of the Burmah Oil Company Act, 1981, the equity shares held by Burmah Oil Company were transferred to the president of India. Oil India, thus, became a wholly owned government company.

The second largest oil-and-gas company in India as measured by total proved plus probable oil and natural gas reserves and production explores, develops, produces and transports crude oil and natural gas onshore in India. Oil India also processes captive natural gas production to extract LPG. It has an international presence in exploration of crude oil and natural gas through participating interest in 17 exploration blocks in Egypt, Gabon, Iran, Libya, Nigeria, Timor Leste and Yemen.

Oil India owns and operates as a common carrier, a 1,157-kilometer cross-country crude oil pipeline, on behalf of itself, ONGC and Bongaigaon Refinery and Petrochemicals (BRPL). The pipeline has the capacity to transport over 44 million barrels of crude oil annually. It transported approximately 45 million barrels of crude oil to four public sector refineries in Digboi, Numaligarh, Guwahati and Bongaigaon in the north-east region in the fiscal ending March 2009 (FY 2009). The company also owns and operates a 660-kilometer petroleum product pipeline, commissioned in August 2008, connecting Numaligarh Refinery (NRL) to Siliguri in West Bengal.

With interests in downstream activities through a 26% equity stake in NRL, a 10% in Brahmaputra Cracker and Polymer (BCPL), and 23% in DNP, Oil India also owns a 10% equity holding in a 741-kilometer pipeline construction project in Sudan completed in 2005. The company also offers various exploration and production-related services to the international and domestic oil and gas industry including pipeline construction, pipeline consultancy, drilling and well work-over, research and development, and logging services.

Oil India is coming out with an initial public offer (IPO) to achieve the benefits of listing and to fund requirement for FY 2010 and FY 2011 for exploration and appraisal; development of producing fields; and purchase of capital equipments and contracts for facilities. Through the IPO it will be raising around Rs 2700 crore. The total funding requirement is Rs 2210.07 crore in FY 2010 and Rs 2349.78 crore in FY 2011. Though the company has cash and bank balances of around Rs 6000 crore for the past three years, its capex was relatively low at Rs 849.60 crore in FY 2009, Rs 942.20 crore in FY 2008, Rs 937.03 crore in FY 2007 and Rs 610.84 crore in FY 2006.

Crude-oil production of Oil India has remained stagnant over the last five years, with production of 24.95 million barrels in FY 2009 compared with 22.38 million barrels in FY 2008, 22.17 million barrel in FY 2007, 22.71 million barrels in FY 2006, and 22.36 million barrel in FY 2005. Growth in natural gas production too is not impressive: 2.27 billion cubic meters in FY 2009 compared with 2.34 billion cubic meters in FY 2008, 2.26 billion barrel in FY 2007, 2.3 billion barrels in FY 2006 and 2.3 billion barrels in FY 2005. Oil India's crude-oil production stood at 6.34 million barrels, while natural gas production was 0.6 billion cubic meters in the quarter ended June 2009.

Although the average benchmarked price of crude oil increased 42% from US$ 59.54 per barrel in FY 2005 to US$ 84.83 per barrel in FY 2009, in line with the rise in international crude oil prices, net realisation of Oil India increased only 27% to US$ 41.22 per barrel in FY 2009 compared with US$ 32.56 per barrel mainly due to sharing of under-recoveries of the oil marketing companies as a result of subsidies on petrol, diesel, public distribution system (PDS) kerosene and domestic LPG. Oil India shared under-recoveries of Rs 3023.29 crore in FY 2009 compared with Rs 2305.09 crore in FY 2008, Rs 1993.75 crore in FY 2007, Rs 977.49 crore in FY 2006 and Rs 704.59 crore in FY 2005. Net realization stood at US$ 39.45 per barrel, while under-recoveries shared was Rs 57.61 crore in the quarter ended June 2009.

Oil India's independent exploration and development areas include 16 nomination blocks located in Assam and Arunachal Pradesh along with 24 blocks acquired through bidding in the New Exploration Licensing Policy (NELP) and participating interest in two pre-NELP joint ventures. Additionally, the company conducts exploration and development on the 19 petroleum-mining leases. Out of the 24 blocks acquired through NELP bidding, it is an operator in 12 blocks with total area of 21,293 square kilometers and a non-operator in the rest of the 12 blocks covering 82,175 square kilometers. Two pre-NELP joint venture blocks cover an aggregate area of 6,030 square kilometers.

Oil India current proved plus probable (2P) reserves of crude oil stood at 575.40 million barrels in FY 2009 compared with 587.77 million barrels in FY 2008 and 539.66 million barrels in FY 2008. 2P natural gas reserves stood at 63.41 billion cubic meters in FY 2009, 54.94 billion cubic meters in FY 2008 and 46.04 billion cubic meters in FY 2007.

Strengths

Had historically not elected to focus on developing natural gas on lack of demand. Now intends to focus and monetize natural gas resources in the Assam basin by doubling production in three to four years.

Reserve accretion reserve replacement ratio was 1.64 in FY 2009, while it was greater than 2 for the previous five years.

Success rate is 63.6% compared with around 36% for ONGC.

Finding cost is around US$ 1.1 per barrel compared with around US$ 2.25 per barrel of ONGC.

Weaknesses

Total independent 2P oil reserves as well as 93.66% of independent natural gas reserves are located onshore in the upper Assam basin in Assam and Arunachal Pradesh, making it over-dependent on one region, which is also prone to insurgency.

Has very limited experience in offshore exploration and development.

Benefits of higher crude prices are being capped by increased amount of sharing of under-recoveries of the oil marketing companies as a result of subsidies on petrol, diesel, PDS kerosene and domestic LPG. If crude oil prices go down significantly, will suffer to the full extent.

Lifting cost is US$ 7 per barrel compared with US$ 3 per barrel of ONGC.

Crude oil production is expected to remain stagnant over the next few years.

Valuation

At a price band of Rs 950-Rs 1050, the P/E works out to 10.2-11.3 times on an EPS of Rs 93 for FY 2009 on post-issue equity of Rs 240.45 crore compared with ONGC's P/E (on FY 2009 EPS) of 15.6. ONGC is almost 10 times Oil India's size and will continue to trade at premium to Oil India Unless oil sector reforms are carried out and upstream companies are freed from sharing subsidy burden, ONGC's valuations look stretched.

FY 2009 was the best year for crude oil prices. As not much growth in volume is expected in the next few years, Oil India cannot be expected to show any significant growth in earnings over the next few years unless oil-sector reforms happen and they turn out to be favorable for upstream players.

Sensex ends strong; breaks 4-day losing streak

Sensex after snapping four-day losing streak, ended on a higher note.The Sensex ended on a higher note with gains led by auto, metal, capital goods and oil & gas stocks. Broader markets also performed well.

It opened flat with a gain of 27.53 points, at 15,425.86 on Friday on mixed global cues. After trading in a narrow range, the index fell into the negative terrain due to profit taking seen at higher levels. However, in the second half, it made a smart recovery by surging over 300 points on vigorous buying seen in frontliners and opening of positive European markets, which boosted the sentiment. It proceeded to rule in green for the rest part of the day, thus closing on a strong note, after hitting a high of 15,740.83.

BSE Midcap and Smallcap index rose 1.08% and 1.07% respectively.

On sectoral front, BSE Auto, Metal, Capital goods and Oil & gas advanced over 2% each, FMCG, Bankex and Power rose over 1%, IT was up 0.48%.

European stocks rose for a second day as metals rallied and strategists increased their year-end forecasts for the region`s equity indexes. UK`s benchmark index FTSE 100 rose 42.65 points, or 0.88%, to trade at 4,839.07. French benchmark index CAC 40 gained 16.55 points, or 0.47%, to trade at 3,570.06.Germany`s benchmark index DAX increased 42.28 points, or 0.80%, to trade at 5,343.47. (4.15 p.m)

The Sensex ended the day with a gain of 290.79 points, or 1.89% at 15,689.12 after touching a high of 15,740.83 and a low of 15,358.94. The broad-based NSE Nifty climbed 86.85 points, or 1.89% at 4,680.40 after hitting a high of 4,697.20 and a low of 4,580.35.

Major gainers in the 30-share index were Mahindra & Mahindra (6.21%), Hero Honda Motors (4.20%), Sterlite Industries (India) (3.86%), Larsen & Toubro (3.47%), Housing Development Finance Corporation (3.26%), and Oil & Natural Gas Corporation (3.09%).

On the other hand, Tata Motors (0.31%), and Tata Consultancy Services (0.23%) were the major losers in the Sensex.

Overall market breadth was positive. Out of the total 2,831 stocks traded at BSE, 1,576 advanced, 1,162 declined while 93 remained unchanged.

BSE Bulk Deals to Watch - Sep 4 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
4/9/2009 530499 A K CAPITAL VASA ABHIJIT B 35000 229.90
4/9/2009 530499 A K CAPITAL FIRSTRAND (IRELAND) PUBLIC LIMITED COMPANY S 50000 229.87
4/9/2009 532664 AMAR REMEDIE PUNEET SECURITIES PRIVATE LIMITED B 141195 44.43
4/9/2009 532664 AMAR REMEDIE PUNEET SECURITIES PRIVATE LIMITED S 134195 44.60
4/9/2009 531978 AMBIKA COTON DYNAMIC STOCK BROKING INDIA PVT LTD B 51140 111.82
4/9/2009 531978 AMBIKA COTON DYNAMIC STOCK BROKING INDIA PVT LTD S 46390 112.06
4/9/2009 531223 ANJANI SYNTH OM EDUCATION (IT) PVT LTD B 65320 33.90
4/9/2009 532212 ARCHIES LTD V P CONSULTANTS PVT LTD B 39318 115.33
4/9/2009 532212 ARCHIES LTD V P CONSULTANTS PVT LTD S 39318 114.84
4/9/2009 532914 ARCOTECH LTD SIDDHIVINAYAK STO. & TRA.PVT.L B 500000 4.08
4/9/2009 532493 ASTRA MICRO OPG SECURITIES P LTD B 387775 86.36
4/9/2009 532493 ASTRA MICRO JMP SECURITIES PVT LTD B 596472 88.44
4/9/2009 532493 ASTRA MICRO OPG SECURITIES P LTD S 387775 86.44
4/9/2009 532493 ASTRA MICRO JMP SECURITIES PVT LTD S 275312 87.88
4/9/2009 508664 BEST E.HOTEL SUNDERLAL GIRISHBHAI SHAH B 14000 73.10
4/9/2009 508664 BEST E.HOTEL MAHESH RATILAL SHAH S 10000 73.10
4/9/2009 511664 BGIL FL TEC VIJIT SHARES AND COMMODITIES PVT LTD B 42002 19.95
4/9/2009 532330 BIOPAC INCOR AJAY DILKUSH SARUPRIA S 100000 11.05
4/9/2009 526141 COMP DISC IN PARISCOPE PICTURES PRIVATE LIM B 54339 72.03
4/9/2009 532363 COMP-U-LEARN SRECKO INDHAN LIMITED B 69878 10.57
4/9/2009 532363 COMP-U-LEARN SRECKO INDHAN LIMITED S 69937 10.48
4/9/2009 532783 DAAWAT RAJIV ARORA B 126757 68.66
4/9/2009 532783 DAAWAT BP FINTRADE PRIVATE LIMITED B 117896 70.96
4/9/2009 532783 DAAWAT RAJIV ARORA S 126757 71.20
4/9/2009 522163 DIAMON CABLE RELIANCE INFRASTRUCTURE FUND B 485000 197.01
4/9/2009 522163 DIAMON CABLE CLEARWATER CAPITAL PARTNERSCYPRUS LIMITED S 500000 197.25
4/9/2009 517973 DMC INTER ABHISHEK KAPOOR B 50000 10.41
4/9/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 69674 10.69
4/9/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD B 29970 10.69
4/9/2009 517973 DMC INTER RENU KABRA S 27484 10.65
4/9/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD S 33100 10.44
4/9/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD S 22941 10.45
4/9/2009 517973 DMC INTER ABHINAY KAPOOR S 40300 10.74
4/9/2009 531144 EL FORGE LTD SETU SECURITIES PVT LTD B 143567 25.21
4/9/2009 531144 EL FORGE LTD ANANDKUMAR RAMESH GUPTA B 50000 25.13
4/9/2009 531144 EL FORGE LTD ANGEL INFIN PRIVATE LIMITED B 65564 25.53
4/9/2009 531144 EL FORGE LTD HITESH SHASHIKANT JHAVERI B 55775 25.85
4/9/2009 531144 EL FORGE LTD NARESHCHAND JAIN B 65247 24.23
4/9/2009 531144 EL FORGE LTD JMP SECURITIES PVT LTD B 121425 24.49
4/9/2009 531144 EL FORGE LTD SEJAL RAKESH ZAVERI B 50000 25.48
4/9/2009 531144 EL FORGE LTD BP FINTRADE PRIVATE LIMITED B 46494 25.85
4/9/2009 531144 EL FORGE LTD ICG U LTD S 421959 25.07
4/9/2009 531144 EL FORGE LTD SETU SECURITIES PVT LTD S 143568 25.81
4/9/2009 531144 EL FORGE LTD ANGEL INFIN PRIVATE LIMITED S 55564 25.65
4/9/2009 531144 EL FORGE LTD HITESH SHASHIKANT JHAVERI S 55775 25.85
4/9/2009 531144 EL FORGE LTD NARESHCHAND JAIN S 65247 24.24
4/9/2009 531144 EL FORGE LTD JMP SECURITIES PVT LTD S 121425 24.65
4/9/2009 531144 EL FORGE LTD BP FINTRADE PRIVATE LIMITED S 55985 25.81
4/9/2009 502223 EXCEL GLASSE R C INVESTMENT B 100000 3.59
4/9/2009 502223 EXCEL GLASSE AYODHYAPATI INVESTMENT PVT LTD S 192165 3.59
4/9/2009 532022 FILAT FASH ANIL AMUTLAL GANDHI B 48000 82.10
4/9/2009 532022 FILAT FASH BALDEVSINH VIJAYSINH ZALA B 46517 82.10
4/9/2009 532022 FILAT FASH AMIT SHANTILAL MEHTA B 158219 83.96
4/9/2009 532022 FILAT FASH ANJANA RAMESHCHANDRA BIRLA B 48038 82.27
4/9/2009 532022 FILAT FASH CHANDRA SHEKHAR SUNIL BHATT B 111199 83.85
4/9/2009 532022 FILAT FASH KANAK STOCK BROKERS PVT LTD B 50000 84.32
4/9/2009 532022 FILAT FASH BALDEVSINH VIJAYSINH ZALA S 46286 82.13
4/9/2009 532022 FILAT FASH AMIT SHANTILAL MEHTA S 148299 82.91
4/9/2009 532022 FILAT FASH ANJANA RAMESHCHANDRA BIRLA S 48038 83.53
4/9/2009 532022 FILAT FASH KANAK STOCK BROKERS PVT LTD S 170000 83.14
4/9/2009 532022 FILAT FASH WALA D B S 100000 84.03
4/9/2009 531137 GEMSTONE INV JAMNALAL NATHULAL JAIN B 40000 24.15
4/9/2009 531137 GEMSTONE INV KISHORBHAI BALUBHAI CHAUHAN S 29050 24.15
4/9/2009 531137 GEMSTONE INV BIPIN JAYANT THAKER S 26400 24.16
4/9/2009 531439 GOLDSTON TEC ANKIT RAJENDRA SANCHANIYA S 105000 28.36
4/9/2009 532836 GREMAC INFRA JYOTI JAIN INV. & FIN. CO. PVT. LTD. B 115128 32.94
4/9/2009 532836 GREMAC INFRA JMP SECURITIES PVT LTD B 252500 31.07
4/9/2009 532836 GREMAC INFRA ELARA INDIA OPPORTUNITIES FUND LIMITED(FCCB) S 194000 32.16
4/9/2009 532836 GREMAC INFRA JMP SECURITIES PVT LTD S 239500 32.51
4/9/2009 500106 IFCI LTD GENUINE STOCK BROKERS PVT. LTD. B 5106835 57.15
4/9/2009 500106 IFCI LTD GENUINE STOCK BROKERS PVT. LTD. S 5106835 57.16
4/9/2009 523467 JAI MATA GLA J V STOCK BROKING PRIVATE LIMITED B 31204 10.94
4/9/2009 523467 JAI MATA GLA HITESH SHASHIKANT JHAVERI B 25000 11.25
4/9/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD B 136534 10.38
4/9/2009 523467 JAI MATA GLA BP FINTRADE PRIVATE LIMITED B 35256 11.23
4/9/2009 523467 JAI MATA GLA J V STOCK BROKING PRIVATE LIMITED S 34854 10.62
4/9/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 60896 10.26
4/9/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD S 126584 11.23
4/9/2009 523467 JAI MATA GLA INDUSTRIAL DEVELOPMENT BANK OF INDIA S 102747 10.77
4/9/2009 504076 JYOTI LIMITE HARAKOSAN CO. LIMITED S 230000 41.00
4/9/2009 530479 KADVANI SECU AMIT SHANTILAL MEHTA B 15812 9.24
4/9/2009 590011 MOVING PICTU-PMS BHARATH KUMAR BANAVARA ESWARAIAH S 41218 4.43
4/9/2009 531272 NIKKI GLOB F RAKESH SACHAN B 31325 22.31
4/9/2009 531272 NIKKI GLOB F SURENDRA KUMAR GUPTA S 29600 22.34
4/9/2009 532986 NIRAJ CEMENT SETU SECURITIES PVT LTD B 60262 84.58
4/9/2009 532986 NIRAJ CEMENT KANCHAN VIJAYKUMAR THAKKAR B 55000 84.60
4/9/2009 532986 NIRAJ CEMENT BALDEVSINH VIJAYSINH ZALA B 80468 84.31
4/9/2009 532986 NIRAJ CEMENT HITESH SHASHIKANT JHAVERI B 186596 84.60
4/9/2009 532986 NIRAJ CEMENT Naman Securities & Finance Pvt. Ltd. B 56375 84.60
4/9/2009 532986 NIRAJ CEMENT SETU SECURITIES PVT LTD S 57262 84.27
4/9/2009 532986 NIRAJ CEMENT BALDEVSINH VIJAYSINH ZALA S 80468 84.60
4/9/2009 532986 NIRAJ CEMENT HITESH SHASHIKANT JHAVERI S 187833 84.47
4/9/2009 532986 NIRAJ CEMENT SPOT LIGHT SECURITIES PRIVATE LIMITED S 100000 84.54
4/9/2009 504288 POLAR INDUST SUPERLINE TRADECOM P LTD B 75000 4.76
4/9/2009 504288 POLAR INDUST NARAYANI LAXMI VINIYOG P LTD B 75000 4.73
4/9/2009 504288 POLAR INDUST DIMPLE PROPERTIES PVT LTD B 94200 4.76
4/9/2009 504288 POLAR INDUST BAIDYANATH ESTATES PVT LTD B 75000 4.76
4/9/2009 504288 POLAR INDUST SIB NATH MUKHERJEE S 199200 4.74
4/9/2009 504288 POLAR INDUST CHANDRA NATH MUKHERJEE S 145000 4.76
4/9/2009 520008 RICO AUT IND SUNDARAM MF A/C SUNDARAM BNP PARIBAS SELECT MIDCAP B 2180759 26.25
4/9/2009 520008 RICO AUT IND NEW VERNON INDIA LTD S 2200000 26.25
4/9/2009 532735 RSYSTEMS INT* MANISH VRAJLAL SARVAIYA B 62014 95.28
4/9/2009 532735 RSYSTEMS INT* MANISH VRAJLAL SARVAIYA S 62014 95.37
4/9/2009 500368 RUCHI SOYA DHANANJAY MONEY MANAGEMENT SERVICES B 1012839 81.56
4/9/2009 500368 RUCHI SOYA DHANANJAY MONEY MANAGEMENT SERVICES S 1000000 81.10
4/9/2009 512413 SPECTACLE ANKIT RAJENDRA SANCHANIYA B 306703 44.19
4/9/2009 512413 SPECTACLE VIVEK KISHANPAL SAMANT B 390500 44.01
4/9/2009 512413 SPECTACLE HEMANT MADHUSUDAN SHETH S 498000 44.09
4/9/2009 530611 STURDY INDS S K INVESTMENTS B 50000 21.35
4/9/2009 513216 UTTAM GALVA ANKIT RAJINDER KUMAR MIGLANI B 1357500 113.70
4/9/2009 513216 UTTAM GALVA ANUJ RAJINDER KUMAR MIGLANI B 713700 113.70
4/9/2009 513216 UTTAM GALVA NEELAM RAJINDER KUMAR MIGLANI B 700000 113.70
4/9/2009 513216 UTTAM GALVA RAJINDER KUMAR UTTAMCHAND MIGLANI B 787500 113.70
4/9/2009 513216 UTTAM GALVA RAJINDERKUMAR UTTAMCHAND MIGLANI S 700000 113.70
4/9/2009 513216 UTTAM GALVA MIGLANI NEELAM RAJINDER S 713700 113.70
4/9/2009 513216 UTTAM GALVA MIGLANI ANUJ RAJINDER S 1357500 113.70
4/9/2009 513216 UTTAM GALVA ANKIT RAJIDERKUMAR MIGLANI S 787500 113.70
4/9/2009 531874 VENUS VENT ABHAY NARAIN GUPTA B 40000 48.00
4/9/2009 531874 VENUS VENT KAUSHIK RAJNIKANT MEHTA B 46650 47.64
4/9/2009 531874 VENUS VENT VIPUL HIRALAL SHAH S 55000 47.87
4/9/2009 532360 VINTAGE CARD LALIT FOJMAL MEHTA B 5000 22.65
4/9/2009 532360 VINTAGE CARD SANDHYA GUPTA S 6042 22.64
4/9/2009 532360 VINTAGE CARD SMK SHARES & STOCK BROKING PVT. LTD. S 4911 22.22
4/9/2009 531249 WELL PACK PA PANDYA HARDIK M B 22318 186.49
4/9/2009 531249 WELL PACK PA PANDYA HARDIK M S 23999 184.77

NSE Bulk Deals to Watch - Sep 4 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
04-SEP-2009,AMAR,Amar Remedies Limited,PUNEET SECURITIES PVT. LTD.,BUY,132236,44.61,-
04-SEP-2009,AMAR,Amar Remedies Limited,SHARE GURUKUL PRIVATE LIMITED,BUY,150271,44.95,-
04-SEP-2009,ARCHIES,Archies Limited,MANSUKH SECURITIES & FINANCE LIMITED,BUY,37277,114.19,-
04-SEP-2009,ARCHIES,Archies Limited,MBL & COMPANY LTD.,BUY,39178,115.08,-
04-SEP-2009,ARCHIES,Archies Limited,NIKON FINLEASE PVT. LTD,BUY,38616,116.81,-
04-SEP-2009,ARCHIES,Archies Limited,V. P. CONSULTANTS PRIVATE LIMITED,BUY,35015,115.07,-
04-SEP-2009,ASTRAMICRO,Astra Microwave Products,JMP SECURITIES PVT LTD,BUY,314832,88.81,-
04-SEP-2009,ASTRAMICRO,Astra Microwave Products,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,419880,85.18,-
04-SEP-2009,ASTRAMICRO,Astra Microwave Products,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,274659,87.01,-
04-SEP-2009,ASTRAMICRO,Astra Microwave Products,OM INVESTMENTS,BUY,454316,85.62,-
04-SEP-2009,CLASSIC,Classic Diamonds (India),J V STOCK BROKING PRIVATE LIMITED,BUY,184265,20.13,-
04-SEP-2009,DAAWAT,LT Foods Limited,ARORA RAJIV,BUY,152725,66.54,-
04-SEP-2009,DAAWAT,LT Foods Limited,BP FINTRADE PRIVATE LIMITED,BUY,145881,69.09,-
04-SEP-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4712696,54.77,-
04-SEP-2009,IFCI,IFCI Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,5840967,57.13,-
04-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,8779409,22.76,-
04-SEP-2009,LAKSHMIEFL,Lakshmi Energy and Foods,CREDIT SUISSE (SINGAPORE) LIMITED A/C CREDIT SUISSE (SINGAP,BUY,870000,127.80,-
04-SEP-2009,LML,LML Ltd.,ANGEL INFIN PRIVATE LIMITED,BUY,446043,10.98,-
04-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,GLOBE CAPITAL MARKET LIMITED,BUY,405391,125.70,-
04-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,RATNABALI CAPITAL MARKETS LTD.,BUY,356243,125.43,-
04-SEP-2009,RSYSTEMS,R Systems International L,MANISH VRAJLAL SARVAIYA,BUY,150888,95.72,-
04-SEP-2009,VINCARDS,Vintage Cards & Creations,RAJMANI .,BUY,3000,22.35,-
04-SEP-2009,AMAR,Amar Remedies Limited,PUNEET SECURITIES PVT. LTD.,SELL,132566,44.53,-
04-SEP-2009,AMAR,Amar Remedies Limited,SHARE GURUKUL PRIVATE LIMITED,SELL,150271,45.05,-
04-SEP-2009,ARCHIES,Archies Limited,MANSUKH SECURITIES & FINANCE LIMITED,SELL,37279,114.96,-
04-SEP-2009,ARCHIES,Archies Limited,MBL & COMPANY LTD.,SELL,39178,115.23,-
04-SEP-2009,ARCHIES,Archies Limited,NIKON FINLEASE PVT. LTD,SELL,38616,117.06,-
04-SEP-2009,ARCHIES,Archies Limited,V. P. CONSULTANTS PRIVATE LIMITED,SELL,35015,115.93,-
04-SEP-2009,ASTRAMICRO,Astra Microwave Products,JMP SECURITIES PVT LTD,SELL,22502,87.96,-
04-SEP-2009,ASTRAMICRO,Astra Microwave Products,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,419880,85.35,-
04-SEP-2009,ASTRAMICRO,Astra Microwave Products,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,261198,87.02,-
04-SEP-2009,ASTRAMICRO,Astra Microwave Products,OM INVESTMENTS,SELL,454316,85.69,-
04-SEP-2009,CLASSIC,Classic Diamonds (India),J V STOCK BROKING PRIVATE LIMITED,SELL,207974,20.12,-
04-SEP-2009,DAAWAT,LT Foods Limited,ARORA RAJIV,SELL,152725,71.27,-
04-SEP-2009,DAAWAT,LT Foods Limited,BP FINTRADE PRIVATE LIMITED,SELL,131425,69.19,-
04-SEP-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4633896,55.00,-
04-SEP-2009,IFCI,IFCI Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,5840967,57.18,-
04-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8740481,22.75,-
04-SEP-2009,LAKSHMIEFL,Lakshmi Energy and Foods,MACQUARIE BANK LIMITED,SELL,870000,127.80,-
04-SEP-2009,LML,LML Ltd.,ANGEL INFIN PRIVATE LIMITED,SELL,38369,10.74,-
04-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,GLOBE CAPITAL MARKET LIMITED,SELL,155491,126.48,-
04-SEP-2009,ORCHIDCHEM,Orchid Chemicals Ltd.,RATNABALI CAPITAL MARKETS LTD.,SELL,43343,127.15,-
04-SEP-2009,PVP,PVP Ventures Limited,PVP MALAXMI ENERGY VENTURES PRIVATE LIMITED,SELL,1750000,50.40,-
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Indices seen echoing global equities; IIP data eyed

Key benchmark indices may continue their consolidation for the second week in absence of any major near term trigger. The BSE 30-share Sensex fell 232.22 points or 1.46% to 15,689.12 in the week ended Friday, 4 September 2009. The index of industrial production (IIP) data for the month of July 2009 along with updates on India's annual monsoon by the weather bureau will be closely watched. The near term trend is likely to be influenced by global equities.

The US non-farm payrolls report for August 2009, which will be released by the Labor Department on Friday, 4 September 2009, will set the tone of the markets in the forthcoming week. Economists forecast 225,000 jobs were lost in August 2009, compared with a loss of 247,000 jobs in July 2009. However the unemployment rate is expected to rise to 9.5%, compared with a 9.4% rate in July.

Recent economic data in US suggested that the world's largest economy is on path of recovery. The ISM reported its service-sector index rose to 48.4 in August 2009 from 46.4 in July 2009, slightly above expectations. Initial jobless claims fell 4,000 last week, roughly in-line with estimates. Continuing claims however, jumped to 6.23 million from 6.14 million. US retailers reported stronger-than-expected sales in August 2009.

Back home, the key economic data to be watched out for next week is the index of industrial production (IIP) data for the month of July 2009 to be released on Friday, 11 September 2009. The Commerce and Industry Minister Anand Sharma while announcing the new foreign trade policy on 28 August 2009 said IIP grew 7 % in July 2009, the same as the corresponding period in 2008. 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 on 12 August 2009.

Investors response for the Oil India (OIL) initial public offer which opens for subscription on Monday, 7 September 2009, will be closely watched as it will set the tone for others companies tapping the primary market for fund raising.

The Oil India initial public offer (IPO) will open for bidding on 7 September 2009 and close on 11 September 2009. OIL, which produces 3.5 million tonnes of oil annually, will be listed on the bourses on 29 September 2009. The government has fixed Rs 950-1,050 per share price band for the initial public offering of Oil India (OIL), the second state-run firm to hit the market this year after NHPC, and will raise up to Rs 4,982 crore. The IPO response will be closely watched after recently listed power companies, NHPC and Adani Power received a tepid response on their listing day.

A lot more companies are lining up tap the market for funds. Coal India, Indiabulls Power, Cox and Kings, Usher Eco Power, MCX, Godrej Properties, ARSS Infrastructure Projects, Pride Hotels, Reliance Infratel, BSNL, Great Eastern Energy, JSW Energy and Radiant Info Systems are some of the companies gearing up to tap the market.

India's monsoon has shown some signs of revival. Late monsoon revival boosted depleted hydropower and irrigation reservoirs and helped the soybean crop, but the overall farm outlook remained gloomy after three months of patchy rains and food prices are soaring. Government reportedly said rainfall in the past seven days was 4 % above average, the third straight week of near-normal rainfall. Monsoon rains made a shaky start this year with the driest June in 83 years and unusually low rain in early August, making the seasonal rainfall 23 % below average so far, which is the worst since 1972.

India's gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation announced on Monday, 31 August 2009, showed. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%.

The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009.

Nifty retreats from multi-month high amid volatile global stocks month

Key benchmark indices edged lower in the week ended Friday, 4 September 2009 mirroring volatile global indices. Sentiment across the globe remained fragile throughout the week with Chinese markets influencing global market trend. Investors booked profits following a rally which propelled the S&P CNX Nifty to its highest closing in last 15 months in the previous week. The week ended on positive note after four straight days of fall in preceding sessions. Auto stocks posted strong gains on healthy sales in August 2009.

Monsoon has shown some signs of revival. Late monsoon revival boosted depleted hydropower and irrigation reservoirs and helped the soybean crop, but the overall farm outlook remained gloomy after three months of patchy rains and food prices are soaring. Government reportedly said rainfall in the past seven days was 4 % above average, the third straight week of near-normal rainfall. Monsoon rains made a shaky start this year with the driest June in 83 years and unusually low rain in early August, making the seasonal rainfall 23 % below average so far, which is the worst since 1972.

Last week's normal rains helped water levels in India's main reservoirs fill up to 45 % of capacity, rising three percentage points in a week, which is the normal rate for the period.

Analysts are concerned that a sharp surge in food prices in the past few days due to scanty rains may stoke inflationary pressures in the economy. Interest rates could rise on higher inflation which in turn may impact a nascent economic recovery and corporate profits.

The wholesale price index (WPI) declined 0.21% in the year to 22 August 2009 compared to previous week's annual decline of 0.95%, data released by the government on Thursday showed. The government revised upwards WPI for the week ended 27 June 2009 to a fall of 1% from an estimated decline of 1.55%.

On the positive side, a survey by HSBC on Thursday showed that the growth in services sector accelerated in August 2009, as a strong pipeline of new orders helped companies raise prices. The HSBC Markit Business Activity Index based on a survey of 400 firms rose to an 11-month peak of 54.9 in August from 54.7 in July. The index has been above 50, which separates expansion from contraction, for four months.

But a slowdown in the manufacturing sector and falling exports remains a cause for concern. The same survey had showed two days back that the growth in the manufacturing sector had slowed to a five-month low in August 2009.

India's gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation announced on Monday, 31 August 2009, showed. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%.

The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009.

The BSE 30-share Sensex fell 232.22 points or 1.46% to 15,689.12 in the week ended Friday, 4 September 2009. The S&P CNX Nifty fell 51.95 points or 1% to 4,680.40 in the week.

The BSE Mid-Cap index fell 0.52%. The BSE Small-Cap index rose 0.43%. Both the indices outperformed Sensex.

Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 6041.81 points or 62.62% in calendar year 2009 as on 4 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7528.72 points or 92.25% as on 4 September 2009. FII inflow in calendar year 2009 totaled Rs 39368.40 crore (till 3 September 2009)

The key benchmark indices took a breather on Monday, 31 August 2009 after strong gains in the past seven trading sessions as a setback in Chinese stocks offset optimism arising from India's strong Q1 GDP growth data. The BSE 30-share Sensex fell 255.70 points or 1.61% to 15,666.64 on that day.

A tepid debut of state-run power firm NHPC pulled the market lower on Tuesday, 1 September 2009 in what was a choppy trading session. Weak European stocks also dampened investor sentiment. The BSE 30-share Sensex fell 115.45 points or 0.74% to 15,551.19 on Tuesday.

The key benchmark indices edged lower on Wednesday, 2 September 2009 extending losses for the third straight day, as weak global stocks weighed on investor sentiment. The BSE 30-share Sensex lost 83.73 points or 0.54% to 15,467.46 on Wednesday.

The key benchmark indices extended losses for fourth straight trading sessions on Thursday, 3 September 2009 bucking firm global stocks on worries a surge in food prices may stoke inflationary pressures in the economy. The BSE 30-share Sensex fell 69.13 points or 0.45% to 15,398.33 on that day.

Strong global cues triggered a solid rally on the local bourses, helping them break their four-day declining trend on Friday, 4 September 2009. The BSE Sensex rose 290.79 points or 1.89% to 15689.12 on that day.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 4.32% to Rs 1980.90 in the week. The government on Tuesday amended the special leave petition filed in the Supreme Court stating that the country's largest utility NTPC and Anil Ambani's Reliance Natural Resources (RNRL) were not on the same footing with regard to the supply of gas from the Krishna-Godavari basin by Reliance Industries (RIL). The price of gas to be paid by NTPC, the government said in its application, will be considered in-dependently of the RIL-RNRL case.

The biggest change in the government's stand on Tuesday is its categorical assertion that the government-set price of $4.20 per MMBTU was not applicable to a disputed contract between NTPC and RIL.

The Bombay High Court had asked RIL to supply 28 million standard cubic meters (mmscmd) of gas to RNRL at $2.34 per mmbtu. RIL has appealed this decision in the apex court. Subsequently, the ministry of oil and natural gas had also moved the apex court by filing an independent SLP. It was only an intervenor before the high court in the case.

Auto stocks rose triggered by healthy sales in August 2009. Indian largest tractor maker by sales Mahindra & Mahindra rose 4.61%. Mahindra & Mahindra's (M&M) total vehicle sales rose 15% to 22,063 units in August 2009 over August 2008. The company announced August sales figures during market hours on Tuesday.

India's largest truck marker by sales Tata Motors rose 3.79%. The company's vehicle sales rose 14.23% to 49810 units in August 2009 over August 2008. The company announced August sales figures after market hours on Tuesday.

Maruti Suzuki, India's top car maker by sales, rose 8.75%. The company's total vehicle sales rose 41.6% to 84,808 units in August 2009 over August 2008. The company announced August sales figures during market hours on Tuesday.

India's largest motorbike maker by sales Hero Honda Motors rose 6.99%. The company's sales rose 36% in August 2009 over August 2008. TVS Motor company rose 5.4%. The two wheeler maker reported a 10.95% jump in sales to 126,842 units in August 2009 over August 2008. Both Hero Honda and TVS announced August sales figures during market hours on Tuesday.

Bajaj Auto jumped 2.22% after the company reported a 6% rise in total vehicle sales to 2.13 lakh units in August 2009 over August 2008. The company announced sales figures during market hours on Wednesday

IT stocks fell on profit taking after recent solid surge on hopes of a recovery in the US economy. US is the biggest market for IT firms. India's largest software services exporter TCS fell 1.62% even after a foreign brokerage raised its rating on the stock to 'overweight' from 'neutral'. The brokerage said the company is a 'solid defensive investment'.

India's third largest software services exporter Wipro fell 2.15%.

India's second largest software services exporter Infosys Technologies rose 0.58%. A foreign brokerage, last week, reduced its rating on the stock 'underweight' from 'equal-weight', saying the stock's valuation is 'rich'.

Realty stocks fell on profit taking after recent gains on reports prices in key regions like New Delhi-NCR (National Capital Region) and Mumbai have moved up 10-15% on gradual return of residential property buyers. Indiabulls Real Estate (down 5.79%), Omaxe (down 6.62%), Housing Development &Infrastrucutre (down 5.71%) declined.

The demand for residential projects in major cities is picking up on lower home loan rates, property price cuts by developers and a recovery in the job market. Realty market had slumped last year amid a global credit crunch and buyers fearing job losses.

India's largest steel maker by sales Tata Steel fell 1.93% even as company has increased prices by 3-4% in the domestic market. Its UK unit Corus, too, has increased prices of long products by 25-40 pounds sterling per tonne on improved demand.

India's largest copper maker by sales Sterlite Industries fell 3.66%. A US bankruptcy court has rejected Sterlite Industries' bid to acquire Asarco, six months after the Indian company had signed an agreement to acquire the beleaguered US copper miner. The bankruptcy court in Corpus Christi, Texas, recommended the offer of rival Grupo Mexico. The case has been sent to the US District Court Judge Andrew S Hanen in Texas for a final decision, which is expected in the next four to six weeks time. Sterlite has been chasing Asarco since last year.

India's second largest mobile services provider by sales Reliance Communication surged 10.1% on reports its telecom tower unit may revive a plan to raise funds through an initial public offer.

Shares of state-run hydropower generator NHPC settled at Rs 36.70 on BSE on the day of its debut on Tuesday 1 September 2009 a premium of less than 2% over the IPO price.

Sensex snaps four-day losing streak led by auto shares

Strong global cues with positive European markets and Asian markets extending gains in late trade triggered a solid rally on the local bourses, helping them break their four-day declining trend. Key benchmark indices rallied in late trade on buying demand for auto, metal and capital goods after starting the day on a soft note. The BSE 30-share Sensex gained 290.79 points or 1.89%, up 330.18 points from the day's low and off 51.71 points from the day's high.

The market breadth was strong on BSE with small and mid-cap shares also participating in the rally. All the sectoral indices on BSE edged higher. BSE cash market turnover swelled to Rs 5,695 crore as compared with Rs 5,132.57 crore on Thursday, 3 September 2009. Volatility was high throughout the day ahead of the crucial US jobs data that will be released evening today, 4 September 2009.

In what could boost the sentiment, the Employees' Provident Fund Organisation (EPFO) is looking for options to park 3-5% of its corpus of Rs 2.57 lakh crore of retirement fund in stock markets to earn better returns.

Direct tax collections by the government grew to Rs 87,888 crore for the first five months of the current fiscal, a 4.12% growth which is attributed to tax refunds paid during the period. The direct tax mop-up in August 2009 was Rs 13,898 crore against Rs 12,761 crore in the year-ago period.

Today's gains were also boosted by a research report from a foreign brokerage house which indicated that the benchmark indices BSE Sensex could hit the 50,000 mark in nine years on more growth in fiscal year 2011. The pace for the gain will depend on economic growth, interest rates, inflation and the success of the nation's infrastructure and fiscal consolidation efforts, the research report said. European shares gained today, 4 September 2009, ending a four-day falling trend, on buying in bank shares. Key benchmark indices in UK, Germany and France were up by between 0.53% and 0.85%.

Most Asian markets were trading higher today, 4 September 2009 ahead of the unemployment data in the US. Key benchmark indices in Hong Kong, Singapore, China, and Taiwan rose between 0.58% and 2.82%. Indices in South Korea and Japan were down 0.29% and 0.27% respectively.

US markets snapped their four-day losing streak on Thursday, 3 September 2009 as investors focused on stronger-than-expected sales by key retailers in August 2009, offsetting weak labor-market data. Financials rebounded after taking a beating on Wednesday. The Dow gained 63.94 points, or 0.69%, to 9,344.61. The S&P 500 index added 8.49 points, or 0.9%, to 1,003.24, while the Nasdaq Composite Index rose 16.13 points, or 0.8%, to 1,983.20.

In economic news, the ISM reported its service-sector index rose to 48.4 in August 2009 from 46.4 in July 2009, slightly above expectations. Initial jobless claims fell 4,000 last week, roughly in-line with estimates. Continuing claims however, jumped to 6.23 million from 6.14 million.

The US non-farm payrolls report for August 2009 will be released by the Labor Department today, 4 September 2009 (after Indian market hours). Economists forecast 225,000 jobs were lost in August 2009, compared with a loss of 247,000 jobs in July 2009. However the unemployment rate is expected to rise to 9.5%, compared with a 9.4% rate in July.

Trading in US index futures showed the Dow could rise 32 points at the opening bell on Friday, 4 September 2009. The Dow futures were in red earlier.

Back home, analysts are concerned that a sharp surge in food prices due to scanty rains may stoke inflationary pressures in the economy. Interest rates could rise on higher inflation which in turn may impact a nascent economic recovery and corporate profits.

Poor rains will impact agricultural sector. However, its impact on the economy may not be much due to falling share of agriculture. The monsoon witnessed a revival in the second half of August 2009 but the cumulative rains were still a quarter below average till last week. Drought or drought-like conditions have been declared in 278 districts or 44% of the nation's total, as rainfall has been 25% below average so far in the four- month monsoon season that started on 1 June 2009, the farm ministry said on 27 August 2009.

Farm secretary T. Nanda Kumar on Wednesday 2 September 2009 said improved monsoon rains in recent days will boost crop prospects for rice and sugar cane. He said other crops would also gain.

A slowdown in the manufacturing sector and falling exports remains a cause for concern. A latest survey showed India's manufacturing activity expanded at its slowest pace in five months in August 2009. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, fell to a five-month low of 53.2 in August 2009 from a revised reading of 55.4 in July 2009. The new orders index fell to 56.2 in August 2009, also its lowest in four months, from 60 in July 2009.

The PMI has been above 50, which separates expansion from contraction, for five months. Before that, it shrank for the five months through March 2009, hitting a trough of 44.4 in December 2008.

India's gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation announced on Monday, 31 August 2009, showed. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%.

The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009.

The BSE 30-share Sensex advanced 290.79 points or 1.89% to 15,689.12. The Sensex opened 27.53 points higher at 15,425.86. The barometer index gained 342.50 points at the day's high of 15,740.83 in mid-afternoon trade. The Sensex fell 39.39 points at the day's low of 15,358.94 in early afternoon trade.

The S&P CNX Nifty gained 86.85 points or 1.89% to 4,680.40. Nifty September 2009 futures were at 4692.50 at a premium of 12.10 points as compared to the spot closing.

Key benchmark indices had declined for the fourth straight trading session on Thursday, 3 September 2009 underperforming firm global stocks on worries a surge in food prices may stoke inflationary pressures in the economy. The BSE Sensex has lost 524.01 points or 3.29% in the last four days to 3 September 2009 after gaining for seven straight days

Stocks have risen sharply this year on increased global risk appetite triggered by hopes of a recovery in the global economy after a setback from a financial sector crisis. The Sensex is up 6041.81 points or 62.62% in calendar year 2009 as on 4 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7528.72 points or 92.25% as on 4 September 2009. FII inflow in calendar year 2009 totaled Rs 39368.40 crore (till 3 September 2009)

The BSE clocked a turnover of Rs 5695 crore as compared with Rs 5,132.57 crore on Thursday, 3 September 2009. Turnover in NSE's futures & options (F&O) segment surged to Rs 70,260.73 crore from Rs 62,922.53 crore on Thursday, 3 September 2009.

The market breadth, indicating the overall health of the market, was strong. It was positive in afternoon trade after turning negative in early afternoon session. Breadth was strong in opening session of trade. On BSE, 1573 shares rose as compared with 1180 that slipped. A total of 100 shares remained unchanged.

The BSE Metal index (up 2.76%), the BSE Realty index (up 2.09%), the BSE PSU index (up 1.04%), the BSE Capital Goods index (up 2.29%), the BSE Auto index (up 2.88%), the BSE Oil & Gas index (up 2.16%), outperformed the Sensex.

The BSE FMCG index (up 1.71%), the BSE Power index (up 1.23%), BSE IT index (up 0.48%), the BSE Teck index (up 0.42%), the BSE Bankex (up 1.25%), BSE Consumer Durables index (up 0.27%), the BSE Healthcare index (up 0.80%), underperformed the Sensex.

The BSE Mid-Cap index rose 1.08% to 5,833.22 and the BSE Small-Cap index gained 1.07% to 6,991.51. Both these indices underperformed the Sensex

Among the 30-member Sensex pack, 27 advanced while only 3 of them declined. HDFC (up 3.22%), ITC (up 2.73%), and Grasim (up 2.70%), edged higher from the Sensex pack

Auto stocks extended early gains on fresh buying after a recent consolidation. Besides the revival of India's monsoon after an initial lull also supported gains. Auto companies derive a third of their sales from rural market.

Indian largest tractor maker by sales Mahindra & Mahindra jumped 5.63% to Rs 859.20 on reports the company will foray in United States market in the first quarter of 2010 with two new variants of SUV Scorpio besides two vehicles in the Indian market over the next six months. It was the top gainer from the Sensex pack.

Maruti Suzuki, India's top car maker by sales, gained 1.91%. The company's total vehicle sales rose 41.6% to 84,808 units in August 2009 over August 2008. The company announced August sales figures during market hours on Tuesday.

India's largest motorbike maker by sales Hero Honda Motors rose 4.20%. The company's sales rose 36% in August 2009 over August 2008. India's second largest motorbike maker by sales Bajaj Auto rose 1.49%. India's third largest motorbike maker by sales TVS Motor Company gained 2.07%.

However India's largest truck marker by sales Tata Motors lost 0.69% to Rs 503.30 on profit booking after advancing 22.93% in the month to 2 September 2009. The stock fluctuated in a wide range of Rs 430 and Rs 516.30 today. The stock has even struck a 52-week high of Rs 530.50 on 3 September 2009. It was the top loser from the Sensex pack

Gains in auto stocks spilled over auto ancillary and tyre stocks are their fortunes are closely linked to performance of auto industry.

Among the auto ancillary stocks - Amtek Auto (up 12.67%), Lumax Industries (up 5.50%), Munjal Auto (up 6.07%), Subros (up 4.34%), and Steel Strips Wheels (up 14.42%), surged.

MRF (up 5.97%), JK Industries (up 5%), Goodyear (up 3.09%), Apollo Tyres (up 0.47%), and TVS Srichakra (up 0.69%), rose from the tyre pack

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) advanced 2.37% to Rs 1977.90. The government on Tuesday amended the special leave petition filed in the Supreme Court stating that the country's largest utility NTPC and Anil Ambani's Reliance Natural Resources (RNRL) were not on the same footing with regard to the supply of gas from the Krishna-Godavari basin by Reliance Industries (RIL). The price of gas to be paid by NTPC, the government said in its application, will be considered in-dependently of the RIL-RNRL case.

The biggest change in the government's stand on Tuesday is its categorical assertion that the government-set price of $4.20 per MMBTU was not applicable to a disputed contract between NTPC and RIL.

The Bombay High Court had asked RIL to supply 28 million standard cubic meters (mmscmd) of gas to RNRL at $2.34 per mmbtu. RIL has appealed this decision in the apex court. Subsequently, the ministry of oil and natural gas had also moved the apex court by filing an independent SLP. It was only an intervenor before the high court in the case.

India's largest thermal power producer by sales NTPC rose 0.22% while RNRL rose 0.82%.

India's largest oil exploration firm ONGC surged 2.85%, ahead of the opening of the public issue of the India's second largest oil exploration firm Oil India on 7 September 2009. The issue in the price band of Rs 950- 1050 will remain open till 11 September 2009.

Metal stocks edged higher as LMEX, a gauge of six metals traded on the London Metal Exchange rose 1.58% on Thursday, 3 September 2009.

India's largest non-ferrous metals producer by sales Sterlite Industries gained 3.94% mirroring a 1.1% rise in Shanghai copper futures today, 4 September 2009.

India's largest private sector steel marker by sales Tata Steel gained 2.33%. The company had on 3 September 2009 hiked prices of some of their products by up to Rs 1,500 a tonne on improvement in demand.

JSW Steel gained 3.25% after the company reported 53% rise in crude steel production to 5.21 lakh tonne units in August 2009 over August 2008. The company made this announcement during trading hours today, 4 September 2009.

Steel Authority of India rose 2.75% after the company reported a 20% rise in domestic sales to 1.1 million tonnes in August 2009 over August 2008, on the back of a 30% jump in sales of special steels.

Uttam Galva Steels was locked at 10% upper limit after a block deal of 13.57 lakh shares was executed on BSE at Rs 113.70 per share. The block constituted 1.13% of the company's equity.

Hindalco (up 2.58%), Sesa Goa (up 1.40%), National Aluminum Company (up 0.79%), Hindustan Zinc (up 6.25%), gained.

India's second largest listed cellular service provider by sales Reliance Communication rose 0.45%, on follow-up buying. The stock has been on a roll recently, gaining 12% in three trading days to 3 September 2009, on reports its telecom tower unit may revive a plan to raise funds through an initial public offer.

India's largest mobile services provider by sales Bharti Airtel rose 0.16% to Rs 406, recovering from day's low of Rs 399.60. Bharti and South African telecom operator MTN have been in negotiations since 25 May 2009 on a $23 billion cash and share-swap deal aimed at an eventual full merger. The deadline for the talks has been extended twice, most recently the deadline was put back another month to 30 September 2009.

India's largest bank by net profit and branch network State Bank of India (SBI) was up 0.79%. The bank on Thursday slashed rates for farmers looking for minor irrigation and crop loans. As part of its special drought-relief schemes, the bank has taken this step to support farmers who have been hit by the weak monsoon this year. The bank reduced interest rates to 8% in the first year and 9% in the second and the third year for loans up to Rs 25 lakh, sanctioned till the end of March 2010.

India's largest private sector bank by net profit ICICI Bank rose 1.09% mirroring a 1.15% rise in its ADR on 3 September 2009.

India's largest engineering & construction company by sales Larsen & Toubro shot up 3.69%. Reports on 1 September 2009 showed Maharashtra State Power Generation Co (Mahagenco) has identified Larsen & Toubro-led consortium as the lowest bidder for a boiler-turbine-generator (BTG) package at its Koradi project.

India's largest power equipment maker by sales Bhel rose 0.84% on reports the company is expecting to tie up orders worth about $2.5 billion in the next 4-6 weeks as private firms step up investment in the power sector

Software stocks were mixed ahead of the crucial US jobs data. US is the key market for Indian software firms.

India`s second largest software services exporter by sales Infosys was up 0.44% tracking a 2.10% rise in its ADR on 3 September 2009. India`s third largest software services exporter by sales Wipro fell 0.06% despite a 0.78% rise in its ADR on 3 September 2009.

India`s largest software services exporter by sales, Tata Consultancy Services declined 0.27%. The company will reportedly hire 25,000 people globally this year of which 90% will be in India. The figure is 10,000 short of the number of people TCS hired last year.

Realty stocks rose on reports of rising property prices in regions like New Delhi-NCR (National Capital Region) and Mumbai have by 10-15% on gradual return of residential property buyers.

DLF (up 0.29%), Unitech (up 3.63%), HDIL (up 1.55%), Indiabulls Real Estate (up 4.38%), edged higher.

Bharti Airtel was the top traded counter on the BSE with turnover of Rs 266.96 crore followed by IFCI (Rs 218.65 crore), DLF (Rs 213.60 crore), Reliance Industries (Rs 199.01 crore) and Unitech (Rs 197.89 crore).

IFCI clocked the highest volume of 3.84 crore shares on BSE. NHPC (3.75 crore shares), Unitech (1.89 crore shares), Suzlon Energy (1.56 crore shares) and Ispat Industries (1.11 crore shares) were the other volume toppers in that order.

Among the side counters Take Solutions (up 15.23%), LKP Merchant Finance (up 19.98%), Shivam Auto (up 19.95%), R Systems International (up 14.53%), and Astra Microwave (up 20%), surged.

Andhra Sugar (down 9.03%), Archies (down 8.19%), and Lincoln Pharma (down 9.22%), slipped.

Ramco Industries jumped 5% after the company set record date for stock split and bonus issue. The company made this announcement after market hours on Thursday, 3 September 2009.

FDC rose 2.99% after the company said its board will meet on 9 September 2009 to consider buy back of shares. The company announced the board meet during trading hours today, 4 September 2009.

Radico Khaitan soared 8.89% after Nomura Funds Ireland Public bought 15 lakh shares, or 1.46% stake in the company at Rs 104 each on the NSE on Thursday, 3 September 2009.

Golden Tobacco was locked at upper limit of 5%, extending previous session's gain on reports the company may co-develop a property in the Mumbai suburbs with Godrej Properties.

CESC gained 4.37% after a block deal of 4 lakh shares was executed on BSE at Rs 370 per share. The block deal constituted 0.32% of the company's equity.

UTV Software Communications rose 0.49% after the company's board approved raising up to Rs 100 crore by issuing non-convertible bonds to Life Insurance Corporation of India. The company made the announcement before market hours today, 4 September 2009.

Daily Grey Market Premium - Sep 4 2009

Company Name	Offer Price (Rs.)	Premium (Rs.)	Kostak (Rs. 1 Lac Application)
Jindal Cotex	70 to 75	4 to 4.50	--
Globus Spirits Ltd.	90 to 100	6 to 8	--
Oil India	950 to 1050	90 to 95	1800 to 2000 (+ 250 Form Commission)

Pre Session Commentary - Sep 4 2009

Today domestic markets are likely to open with a minimal positive gain as there is lack of guidance from other markets. Markets across Asia are trading in a subdued manner as there is lack of driving news and therefore lackluster trading in domestic arena is likely to occur. The initial jobless claims data in US was little disappointing and therefore US markets also gyrated in a narrow range yesterday. In the domestic space markets are likely to trade range bound narrowly.

On Thursday, domestic market renounced all its’ gains to conclude its sea-saw movement on negative note after a high volatile session. The benchmark indices were on upbeat mood during early and afternoon trade on firm cues from Asian markets. In addition, positive US index futures also supported the sentiments. However, market exhibited volatility and pared gains during final trading hours on profit booking. Fluctuation in European stocks also added to instability, ahead of the European Central Bank’s meeting on interest rates. Meanwhile, India’s Inflation remained in negative for the 12th successive week, as it stood at (0.21%) for the week ended 22nd Aug 2009, as compared to (0.95%) for the previous week 15th August 2009. The BSE Sensex ended around 15,400 level and NSE Nifty closed below 4,600 mark.

The BSE Sensex closed lower by 69.13 points at 15,398.33 and NSE Nifty ended down by 14.80 points at 4,593.55. BSE Mid Caps and Small Caps closed with gains of 12.77 and 48.80 points at 5,770.80 and 6,917.82 respectively. The BSE Sensex touched intraday high of 15,598.18 and intraday low of 15,356.72.

On Thursday, US stock markets closed mixed. The markets spent most of the time in a narrow range trading despite Chinese markets rebounding nearly 5% yesterday. The session was lackluster as there was no driving news, however disappointing jobless claims data influenced market sentiments to a large extent. Initial claims for the week ending Aug. 29 totaled 570,000, down just 4,000 from the previous week, but slightly more than the 564,000 that were expected. With the labor market mired in weakness, continuing claims jumped to 6.23 million from 6.14 million. Another economic indicator August ISM Services Index, also topped the consensus estimate of 48.0 by coming in at 48.4, a high for the year. US light crude oil futures for October delivery closed lower by 0.2% at $67.92 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed higher by 63.94 points at 9,344.61, NASDAQ index closed higher by 16.13 points at 1,983.20 and the S&P 500 (SPX) also closed higher by 8.49 points at 1003.24.

Today the major stock markets in Asia are trading mixed. The Shanghai Composite is trading high by 5.72 at 2,850.74, Hang Seng is higher by 24.61 points at 19,786.29. Further Japan''s Nikkei is low by 48.41 points at 10,166.23. Strait times is also trading low by 7.85 points at 2,590.51. Taiwan Weighted is up by 45.49 points at 7,150.14.

Indian ADRs ended mostly in green, barring a few. In IT space, Infosys was up 2.1%, Satyam Computers was up 1.14%, Wipro was up 0.78% and Patni Computers was up 7.19%. In banking space, ICICI Bank was up 1.15% and HDFC Bank was up 0.44%. In Telecom space, Tata Communication was down 0.65% and MTNL was down 0.53%. In other sectors, Sterlite Industries was up 2.41%, Tata Motors was up 1.12% while Dr Reddy''s Labs was down 0.25%.

The FIIs on Thursday stood as net sellers in equity and debt. Gross equity purchased stood at Rs 1,500.30 Crore and gross debt purchased stood at Rs 86.40 Crore, while the gross equity sold stood at Rs 2,074.50 Crore and gross debt sold stood at Rs 194.10 Crore. Therefore, the net investment of equity and debt reported were Rs (574.20) Crore and Rs (107.70) Crore respectively.

On Thursday, Indian Rupee closed at 48.91/92 per dollar, 5 paisa stronger than its previous close at 48.96/97. The weakness of dollar as against its rival currencies helped local currency gain strength.

On BSE, total number of shares traded were 40.18 Crore and total turnover stood at Rs 5,132.57 Crore. On NSE, total number of shares traded were 82.03 Crore and total turnover was Rs 15,321.14 Crore.

Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 81374606 shares, followed by Unitech with 46342697, Reliance Comm with 19614054, DLF with 8159868 and Tata Steel with 7407734 shares.

On NSE Future and Options, total number of contracts traded in index futures was 683726 with a total turnover of Rs 14,801.09 Crore. Along with this total number of contracts traded in stock futures were 486121 with a total turnover of Rs 15,372.91 crore. Total numbers of contracts for index options were 1315832 with a total turnover of Rs 30,954.67 Crore and total numbers of contracts for stock options were 54337 and notional turnover was Rs 1,793.86 Crore.

Today, Nifty would have a support at 4,538 and resistance at 4,645 and BSE Sensex has support at 15,252 and resistance at 15,486

Market seen reversing four day declining streak on firm global cues

Key benchmark indices are seen ending their four-day declining trend on the back of firm global cues. The SGX Nifty futures for September 2009 expiry rose 12.5 points in Singapore.

US markets snapped their four-day losing streak on Thursday, 3 September 2009 as investors were encouraged by some better-than-expected retail-sales reports. Financials rebounded after taking a beating on Wednesday. The Dow gained 63.94 points, or 0.7%, to 9,344.61. The S&P 500 index added 8.49 points, or 0.9%, to 1,003.24, while the Nasdaq Composite Index rose 16.13 points, or 0.8%, to 1,983.20.

In economic news, the ISM reported its service-sector index rose to 48.4 in August 2009 from 46.4 in July 2009, slightly above expectations. Initial jobless claims fell 4,000 last week, roughly in-line with estimates. Continuing claims however, jumped to 6.23 million from 6.14 million.

Asian markets were trading mixed today, 4 September 2009. Key benchmark indices in South Korea, Singapore and Japan were down by between 0.45% and 0.83%. However indices in China, Hong Kong, and Taiwan rose between 0.20% and 0.62%.

Back home, analysts are concerned that a sharp surge in food prices due to scanty rains may stoke inflationary pressures in the economy. Interest rates could rise on higher inflation which in turn may impact a nascent economic recovery and corporate profits.

Poor rains will impact agricultural sector. However, its impact on the economy may not be much due to falling share of agriculture. The monsoon witnessed a revival in the second half of August 2009 but the cumulative rains were still a quarter below average till last week. Drought or drought-like conditions have been declared in 278 districts or 44% of the nation's total, as rainfall has been 25% below average so far in the four- month monsoon season that started on 1 June 2009, the farm ministry said on 27 August 2009.

Farm secretary T. Nanda Kumar on Wednesday 2 September 2009 said improved monsoon rains in recent days will boost crop prospects for rice and sugar cane. He said other crops would also gain.

A slowdown in the manufacturing sector and falling exports remains a cause for concern. A latest survey showed India's manufacturing activity expanded at its slowest pace in five months in August 2009. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, fell to a five-month low of 53.2 in August 2009 from a revised reading of 55.4 in July 2009. The new orders index fell to 56.2 in August 2009, also its lowest in four months, from 60 in July 2009.

The PMI has been above 50, which separates expansion from contraction, for five months. Before that, it shrank for the five months through March 2009, hitting a trough of 44.4 in December 2008.

India's gross domestic production (GDP) grew 6.1% in Q1 June 2009 compared with the year-earlier, figures released by the Central Statistical Organisation announced on Monday, 31 August 2009, showed. The segment grouping financing, insurance, real estate and business services led growth in GDP, gaining 8.1% on year. The category including trade, hotels, transport and communication was also up 8.1%.

The GDP growth was lower than 7.8% achieved in Q1 June 2008 but it accelerated from the 5.8% expansion in Q4 March 2009.

Stocks have risen sharply this year on increased global risk appetite triggered by hopes of a recovery in the global economy after a setback from a financial sector crisis. The Sensex is up 5751.02 points or 59.61% in calendar year 2009 as on 3 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7237.93 points or 88.69% as on 3 September 2009. FII inflow in calendar year 2009 totaled Rs 39321.36 crore (till 2 September 2009)

The key benchmark indices extended losses for fourth straight trading session on Thursday, 3 September 2009 underperforming firm global stocks on worries a surge in food prices may stoke inflationary pressures in the economy. The BSE Sensex has lost 524.01 points or 3.29% in the last four days after gaining for seven straight days.

As per the provisional figures on NSE, foreign funds sold shares worth Rs 72.69 crore and domestic funds bought shares worth Rs 382.49 crore on Thursday, 3 September 2009.

Copper ends higher

Prices rise as global stocks rise

Copper prices rose at Comex and LME on Thursday, 03 September, 2009. Prices rose today as global equity markets fueled optimism that demand for industrial metals will rise.

At USA, copper futures for December delivery rose 3.9 cents (1.4%) to 2.865 a pound. The metal fluctuated between gains and losses earlier today, reflecting swings in U.S. equities. Copper fell as much as 1.5% earlier. Last week, copper ended higher by 2%. Copper ended August, 2009, higher by 7%.

On the London Metal Exchange, copper for delivery in three months ended higher by $81 (1.3%) at $6,255 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 90.7%.

The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.

In the currency market on Thursday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.7%. The dollar moved lower against the euro and the British pound but remained higher against the Japanese yen.

Among economic reports expected on Thursday, The Labor Department reported on Thursday, 03 September, 2009 that the number of people filing for state unemployment benefits for the first time fell by 4,000 to a seasonally adjusted 570,000 last week.

Initial claims have held in a fairly narrow range for the past seven weeks, down about 100,000 from the peak in March but still well above levels seen in a healthy economy.

As per latest reports, stockpiles of the metal monitored by the London Metal Exchange have jumped 18% since mid-July to 302,950 metric tons.

In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.

At the MCX, copper for November delivery closed at Rs 310.1/Kg. The closing price was Rs 4.8/Kg (1.6%) higher than previous closing price. Prices rose to a high of Rs 310.8/ Kg and fell to a low of Rs 304.25/Kg during the day's trading.

Among other metals traded in the LME on Thursday, lead rose 7.8% to $2,280 a ton and zinc gained 0.5% to end at $1,838 a ton. Nickel rose 1.1% to end at $18,300. Aluminium rose 0.5% at $1,856 a ton.

Crude ends little lower

Prices witness another full day of volatile session

Crude prices ended little lower on Thursday, 03 September, 2009. Prices remained volatile for entire day as the initial claims report hit the wires today.

On Thursday, crude-oil futures for light sweet crude for October delivery closed at $67.96/barrel (lower by 9 cents or 0.1%). During intra day trading, crude touched a high of $69.40 but also fell to a low of $67.66. Last week, crude ended higher by 9.5%. It was the biggest weekly gain for crude in three months.

For the month of August, 2009, crude ended higher by a marginal 0.7%. 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 56% since then. Year to date, in 2009, crude prices are higher by 42%.

In the currency market on Thursday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.7%. The dollar moved lower against the euro and the British pound but remained higher against the Japanese yen.

Among economic reports expected on Thursday, The Labor Department reported on Thursday, 03 September, 2009 that the number of people filing for state unemployment benefits for the first time fell by 4,000 to a seasonally adjusted 570,000 last week.

Initial claims have held in a fairly narrow range for the past seven weeks, down about 100,000 from the peak in March but still well above levels seen in a healthy economy.

EIA reported yesterday that crude inventories fell by 400,000 barrels during last week. Market had expected a decline of 1.9 million barrels. At 343.4 million barrels, crude inventories stand at a level above the upper boundary of the average range for this time of year. Utilization rate rose to 87.2% of capacity. Rising input was partly offset by another jump in crude imports. The U.S. imported 9.58 million barrels a day of crude last week, up 3.8% from a week ago.

EIA had also reported that gasoline inventories fell by 3 million barrels last week. Distillates, however, rose by 1.2 million barrels.

Also at the Nymex on Thursday, October reformulated gasoline fell 1.58 cents, or 0.9%, to $1.7928 a gallon. October heating oil lost 1.55 cents, or 0.9%, to $1.735 a gallon.

October natural gas fell 20.7 cents, or 7.6%, to $2.508 per million British thermal units. EIA reported today that U.S. natural gas inventories rose 65 billion cubic feet in the week ended 28 August, 2009. At 3,323 billion cubic feet, stocks were 489 billion cubic feet higher than last year at this time and 501 billion cubic feet above the five-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 higher by Rs 10 (0.3%) at Rs 3,340/barrel. Natural gas for September delivery closed lower by Rs 11 (8.1%) at Rs 125.3/mmbtu.

Precious metals at six month high

Drop in initial claims pushes dollar lower

Precious metal prices ended substantially higher once again on Thursday, 03 September, 2009. Prices rose as the dollar dropped following the initial claims report announced by the Labor Department today.

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 $997.7, higher by $19.2 (2%) an ounce on the New York Mercantile Exchange. It rose as high as $999.5 earlier. Last week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 13.4%.

Gold ended August, 2009 higher by 0.2%. 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 (3%) since then.

On Thursday, Comex silver futures for September delivery rose by 92.5 cents (6%) to $16.29 an ounce. Last week, silver ended higher by 4.3%.

Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 41.5% this year. For 2008, silver had lost 24%.

In the currency market on Thursday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.7%. The dollar moved lower against the euro and the British pound but remained higher against the Japanese yen.

Among economic reports expected on Thursday, The Labor Department reported on Thursday, 03 September, 2009 that the number of people filing for state unemployment benefits for the first time fell by 4,000 to a seasonally adjusted 570,000 last week.

Initial claims have held in a fairly narrow range for the past seven weeks, down about 100,000 from the peak in March but still well above levels seen in a healthy economy.

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 252 (1.62%) at Rs 15,771 per 10 grams. Prices rose to a high of Rs 15,806 per 10 grams and fell to a low of Rs 15,464 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 1,185 (4.74%) higher at Rs 26,138/Kg. Prices opened at Rs 24,968/kg and rose to a high of Rs 26,250/Kg during the day's trading.

Daily News Roundup - Sep 4 2009

The court has deferred the Upaid-Satyam case hearing to January 2010 from September. (BS)

Neyveli Lignite plans to invest Rs100-120bn in setting up power projects. (BS)

SAIL achieved sales of 1.1mn tons during August in the domestic market, up by 20% yoy. (BL)

BHEL plans to invest close to Rs20bn to set up a 250MW solar photovoltaic production facility for processing silicon wafers, solar cells and PV modules. (BS)

M&M to enter US operations in the first quarter of 2010 with two new variants of SUV Scorpio, besides two vehicles in the Indian market over the next six months. (BS)

SBI has slashed interest rates for minor irrigation (like wells and pump sets) and crop loans above Rs0.3mn to support farmers hit by weak monsoon and drought. (BS)

TCS aims at 10% of its total revenue from government projects and plans to hire 25,000 people in FY10. (ET)

Sona Koyo to set up four manufacturing plants. (BS)

Pipavav Shipyard is re-negotiating price component in orders for eight vessels placed by its overseas customers. (BS)

Ranbaxy has entered into an agreement with Validus Pharmaceuticals LLC to market and distribute generic version of calcium drug Rocaltrol in the US. (BL)

The Fiat Group based in India plans to source auto components worth US$1bn (~Rs49bn) from domestic auto ancillaries in 2010. (BS)

MRF plans to invest about Rs4bn in expansion of its facilities at Andhra Pradesh. (BL)

LIC proposes to invest Rs1,000bn in equity market during the current fiscal year (ET)

PNB to reschedule 15-20% of its crop loan owing to drought like situation (BL)
Economy Snippets
The annual Wholesale Price Index-based inflation declined 0.21% during the week ended August 22. (BL)

The Employees Provident Fund Organisation (EPFO) has started looking for options to park 3-5% of its retirement fund in stock markets to earn better returns. (BS)

The food ministry has raised the levy price at which it buys sugar from mills to supply the public distribution system (PDS) by 50% in Maharashtra and 63% in Uttar Pradesh for the new sugar season starting next month. (BS)

The government has extended the implementation of mobile number portability to December 31. (BS)

Banks could have separate benchmark prime lending rates (BPLR) for corporate and retail borrowers. (BS)

Gathering courage in the pit stop!

The only courage that matters is the kind that gets you from one moment to the next.

The bulls seem to be gathering courage and saying this is not the finish line but only a pit stop - a la F1 style. The bulls are taking a breather after a great run since early March. Some fatigue appears to have set in after the main indices hit multi-month highs.

Today, we may see a higher opening on the back of the late turnaround on Wall Street. Things were a bit mixed in Europe. Similar is the case for Asian markets this morning. Given that the market has been subdued for most of the week, there is a case for a technical or rather sentimental rebound. Overall, the trend may continue to be indecisive and sideways for a few more days.

The monthly jobs report to be issued in the US later today will be keenly followed. The US markets will enjoy an extended weekend due to the Labour Day holiday on Monday.

The current insipid trend may continue until we get the next trigger(s) which could swing the market either way. Among the key catalysts will be the quarterly earnings and the half-yearly policy review by the RBI. The direction of fund flows will continue to have a bearing, and so will the global factors.

The ECB has kept interest rates steady at a record low of 1%. The central bankers for the 16-nation euro zone are still skeptical about “green shoots” of recovery. ECB president Jean-Claude Trichet says that while it is premature to declare the financial crisis over, Europe's central bank has an exit strategy in place.

His US counterpart, Treasury Secretary, Tim Geithner says that strengthening capital requirements is an essential part of a broader effort to modernise the regulatory framework so that the financial system is strong enough to withstand the failure of large, complex institutions.

The Organization for Economic Cooperation & Development (OECD) says that the worst global recession in several decades is likely to end sooner than expected, and could well be over, but the pace of economic activity will remain weak well into next year.

A two-day meeting of G20 finance ministers and central bankers will get underway later today in London. The G20 leaders are laying the groundwork for a summit meeting later this month in Pittsburgh, where leaders will discuss measures to overhaul supervision of the global financial system.

Global investors have started to look ahead and are trying to match current valuations to future prospects. In many cases they have struggled to make the connection between multi-month high equity markets and a tentative global economic recovery.

As a result, going into September, global investors once again pulled out cash from Money Market Funds and put them into fixed income funds rather than equity funds. Overall, for the week ending Sept. 2, investors committed $5.06bn to EPFR Global-tracked fixed income funds and pulled $4.95bn out of equity funds.

US stocks rallied in later trade on Thursday, as investors snapped up bank and technology shares following a three-day selloff.

The Dow Jones Industrial Average gained 64 points, or 0.7%, at 9,344.61. The S&P 500 index added 8 points, or 0.9%, to 1,003.24. The Nasdaq Composite index rose 16 points, or 0.8%, to 1,983.20.

US stocks were firm through most of the session as financials and other stocks that were hit earlier in the week bounced back. But the advance was limited by tepid back-to-school sales from the retailers and a troubling weekly jobless claims report, ahead of the bigger non-farm payrolls report on Friday.

The key fundamental change investors are looking for is continuous improvement in the jobs market, and the weekly jobless claims numbers weren't very positive.

The August report from the Labor Department is due before the start of trading on Friday. Employers are expected to have cut 225,000 jobs from their payrolls in August. Employers cut 247,000 jobs in July. The unemployment rate, generated by a separate survey, is expected to have risen to 9.5% from 9.4% in July.

Also on Friday, Treasury Secretary Timothy Geithner meets with the G-20 Finance ministers in London.

Trading volume is likely to be light and markets could be particularly volatile ahead of the three-day Labor Day holiday.

US stocks slid in the past three sessions, after ending last week at 2009 highs. The S&P 500 and Nasdaq both ended last week at levels not seen since just after the collapse of Lehman Bros. last September.

But this week has brought persistent selling on worries that the rally has run way ahead of times. That weakness has been compounded by lighter-than-usual trading ahead of the Labor Day holiday weekend.

Financial shares were charging ahead again. The KBW Bank index gained 2.5%.

Fannie Mae and Freddie Mac both continued their recent surge. The stocks got an extra boost after the New York Federal Reserve Bank said it bought $3.779 billion of US agency debt, bringing its total to $122.4 billion in the last 9 months. The Fed has said it will buy $200 billion in debt from Fannie, Freddie and the Federal Loan Bank System as part of its efforts to keep mortgage rates low and help the economy recover.

A worse-than-expected jobless claims report and a mix of retail sales added to concerns about the health of the consumer. With consumer spending traditionally fueling two-thirds of economic growth, investors are looking for signs that spending could be picking up.

The number of Americans filing new claims for unemployment last week stood at 570,000, a decline from the previous week's 574,000, but only because the previous week's numbers were revised higher. Economists were expecting 564,000 new claims.

Additionally, continuing claims, a measure of people who have been filing claims for a week or more, rose 92,000 to 6.23 million, topping forecasts for a rise to 6.12 million.

The Institute for Supply Management's (ISM) services sector index for August rose to 48.4 from 46.4 previously. Economists thought it would rise to 48. Any number below 50 implies the sector is continuing to weaken.

Back-to-school sales for the nation's retailers were weaker than a year ago, but results still topped analysts' forecasts. August same-store sales, or sales at stores open a year or more, fell 2.9% versus a year ago. Analysts expected sales to drop 3.8%.

Discounters did the best, including clothing retailer Aeropostale which said sales rose 9% versus forecasts for a jump of 7.1%. Target said sales fell 2.9%, versus analysts' bets that sales would drop 5.1%. Costco and Limited Brands, which owns Bath & Body Works, reported weaker sales that surpassed forecasts.

Abercrombie & Fitch said sales plunged 29% versus a year ago.

Dainippon Sumitomo Pharma of Japan is buying US drugmaker Sepracor for about 2.6 billion, the companies said Thursday, confirming earlier reports.

US light crude oil for October delivery fell 9 cents to settle at $67.96 a barrel on the New York Mercantile Exchange. Oil prices have been slipping since hitting a 10-month high just below $75 a barrel late last month.

Gold continues its advance, extending a three-month high, as risk averse investors turn to the precious metal following recent weakness on equity markets. COMEX gold for December delivery rose $19.20 to settle at $997.70 an ounce, inching closer to the psychologically significant $1,000 level.

Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.32% from 3.30% late on Wednesday.

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

European shares finished flat even as gold rose sharply and the ECB kept its key interest rate unchanged. The pan-European Dow Jones Stoxx 600 index pared earlier gains to virtually unchanged at 230.66. The index lost 2.9% over the previous three sessions.

The UK's FTSE 100 index fell 0.4% to 4,796.75, the German DAX index lost 0.4% to 5,301.42 and the French CAC-40 index slipped 0.6% to 3,553.51.

The BSE Sensex extended its losing streak to the fifth straight trading session led by the selling witnessed in the Oil & Gas, Pharma and the Capital Goods stocks. With stock valuations not cheap and uncertainty in global markets, markets are finding it tough to move higher. The Sensex has now lost nearly 3.3% or 524 points in the past five days.

Technically, The 20 Day moving average seems to be a strong support for the Nifty index which is placed at around the 4550-4560 levels. A drop below this levels would be

Inflation continued to remain in the negative terrain, the Wholesale Price Index (WPI) for 'All Commodities' for the week ended August 22, 2009 rose by 0.8% to 240.7 from 238.8 for the previous week. The annual rate of inflation stood at -0.21% for the week ended August 22, 2009 as compared to -0.95% for the previous week August 15, 2009 and 12.76% during the corresponding week August 23, 2008 of the previous year.The government announced that it revised the inflation for June 27 week to -1.09% from -1.55%.

The BSE Sensex fell by 69 points or 0.5% at 15,398 after touching a high of 15,598 and a low of 15,356. The index opened at 15,539 against the previous close of 15,467. The NSE Nifty was down by 15 points to shut shop at 4,593.

In Asia, the Nikkei in Japan slipped by 0.6% at 10,214 while Australia's S&P/ASX ended lower by 0.2% at 4,429. The Hang Seng index in Hong Kong was up 1.2% at 19,761. Shanghai index in China was up by 4.7% at 2,845.

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

Coming back to India, among the BSE sectoral indices, the Oil & Gas index was the top loser, shedding 1.1%, followed by the Pharma index that was down 0.7%. The BSE Capital Goods index down 0.7% and the BSE Power index was down 0.5%.

The BSE Mid-Cap index gained 0.3% and the BSE Small-Cap index gained by 0.8%.

Among the 30-components of Sensex, 21 stocks ended in the green and 8 ended in the negative terrain. Among the major losers were Reliance Industries, Bharti, L&T, ONGC and ITC.

On the other hand bucking the negative trend were, Infosys, RCom, SBI, Sterlite and Tata Steel.

Outside the frontline indices, the big gainers in the broader market were Cadila, EKC, Pantaloon, Chennai Petro, Torrent Power and Mphasis. On the other hand, losers included Renuka, IVRCL, GVK Power, BEML and Jubilant.

BPCL plans to partially shut its crude-oil processing plant in Mumbai in October for nearly 2 months to upgrade equipment that produces cleaner-burning fuels.

The company plans to close a unit that reduces sulfur content in gasoline and diesel for an upgrade to produce fuels that meet Euro III and Euro IV specifications, the director for refineries R.K. Singh, was quoted as saying.

"It will be mandatory to sell Euro III and Euro IV fuels from April 1 and this shutdown is part of that process," Singh added.

The stock gained by 2.5% to Rs554. The stock opened at Rs545 and made an intra-day high of Rs561 and a low of Rs543. Total traded volumes stood at 0.19mn shares.

Shares of Parsvnath surged by over 2.5% to Rs120 after the company plans to sell as much as US$100mn of shares and a stake in a real estate project in an attempt to trim its debt to a third by March, Pradeep Jain the company's Chairman said was quoted as saying.

The company aims to sell shares to institutional investors by the end of October, and the stake in a housing project this month to a PE fund, Jain added. In June, the company got 900 million rupees ($18.4 million) from private equity firm Red Fort Capital for a stake in a New Delhi housing project.

Shares of Maytas Infra were locked at 5% upper circuit to end at Rs130.5 after about 2.67mn equity shares or 4.5% of its equity, change hands in eight transactions. The stock opened at Rs130.5 and made an intra-day high of Rs130.5 and a low of Rs124. Total traded volumes stood at 2.3mn shares.

Shares of Aban Offshore gained by 2.2% to Rs1570 after media reports stated that the company has deployed two more rigs in Iran. The stock opened at Rs1591 and made an intra-day high of Rs1616 and a low of Rs1541. Total traded volumes stood at 1.3mn shares.

Shares of Wall Street Finance were locked at 10% upper circuit at Rs55.85 after the Anil Ambani Group sold its entire stake in the company.

We have decided to exit our investment in Wall Street Finance as the business conflicts with Reliance Money Express," Sudip Bandyopadhyay, MD said.

It had acquired the shares at around Rs36-38 against the current market price of Rs51. Reliance Money made a neat profit of Rs60-70mn.

Shares of Moser Baer shot up by over 3% to Rs90.65 after the company got a contract to build 1 mega watt Solar Power Plant. The stock opened at Rs89 and made an intra-day high of Rs91.60 and a low of Rs88. Total traded volumes stood at 0.8mn shares.