Weekly Technical Levels - Oct 1 2009

COMPANY NAME	S3	S2	S1	CLOSING PRICE	R1	R2	R3
ABB	747	763	774	790	801	817	828
ACC	781	796	811	827	842	858	873
Ambuja Cem	92	96	99	102	106	109	113
BHEL	2,141	2,221	2,271	2,351	2,400	2,481	2,530
BPCL	507	521	543	557	580	593	616
Bharti	371	392	414	435	457	478	500
Cairn	251	254	258	261	265	268	272
Cipla	242	251	264	273	286	295	308
DLF	405	418	427	440	449	462	471
Gail	334	344	351	362	369	380	387
Grasim	2,442	2,511	2,623	2,692	2,804	2,872	2,985
HCL Tech	320	325	332	336	343	348	355
HDFC Bank	1,540	1,577	1,607	1,644	1,675	1,712	1,742
Hero Honda	1,541	1,567	1,608	1,634	1,675	1,701	1,742
Hindalco	119	121	125	127	130	132	135
HUL	248	255	259	265	269	276	280
HDFC	2,555	2,594	2,664	2,703	2,773	2,811	2,882
ICICI Bank	736	811	852	927	968	1,043	1,084
Idea	69	70	73	74	76	78	80
Infosys	2,198	2,251	2,284	2,337	2,370	2,423	2,456
ITC	221	225	229	233	237	241	245
L&T	1,580	1,608	1,638	1,665	1,695	1,723	1,753
M&M	810	841	860	890	909	940	959
Maruti	1,489	1,540	1,606	1,656	1,722	1,772	1,838
Nalco	319	327	336	344	353	361	370
NTPC	202	204	208	211	214	217	221
ONGC	1,095	1,123	1,154	1,182	1,213	1,241	1,271
Powergrid	104	106	108	110	112	114	116
PNB	742	768	784	810	826	852	868
Ranbaxy	370	383	395	408	420	433	445
Rcom	282	296	304	319	326	341	349
Reliance	2,066	2,101	2,139	2,174	2,212	2,247	2,284
Reliance Infra	1,153	1,169	1,192	1,207	1,230	1,245	1,269
Reiance Power	159	161	165	167	170	172	176
Satyam	110	112	116	118	121	123	127
Siemens	530	540	550	559	569	579	589
SBI	1,969	2,061	2,119	2,211	2,269	2,361	2,419
SAIL	159	162	166	169	173	176	181
Sterlite	694	725	748	779	802	833	856
Sunpharma	1,208	1,280	1,332	1,404	1,456	1,528	1,580
Suzlon	88	90	91	92	94	95	96
Tata Com.	461	470	477	487	494	503	510
TCS	538	571	597	630	656	689	715
Tata Motors	539	550	569	580	599	610	629
Tata Power	1,210	1,233	1,267	1,290	1,324	1,347	1,381
Tata Steel	491	498	504	511	516	524	529
Unitech	97	99	103	106	110	112	117
Wipro	535	563	580	608	625	653	671
Zee	217	224	231	239	246	253	260

Annual Report - Motherson Sumi Systems - 2008-2009

MOTHERSON SUMI SYSTEMS LIMITED

ANNUAL REPORT 2008-2009

DIRECTOR'S REPORT

Your Directors have the pleasure in presenting the 22nd Annual Report
together with the audited accounts of the Company for the financial year
ended 31st March, 2009.

Financial Results

The summarized financial results for the year ended 31st March, 2009 and
for the previous year ended 31st March, 2008 are as follows:

(Rs. in Million)
Year ended Year ended
31.03.2009 31.03.2008

Gross sales 14429 15156
Net sales 12949 13031
Other Income 372 447
Profit before depreciation,
interest and tax 1689 2361
Less: Depreciation 545 500
Less: Interest (net) 291 219
Profit before tax 853 1642
Less: Provision for taxation 157 360
Profit after tax 696 1282
Add: Balance brought forward 1597 1127
Profit available for appropriation 2292 2409

Annual Report - Punj Lloyd - 2008-2009

PUNJ LLOYD LIMITED

ANNUAL REPORT 2008-2009

DIRECTOR'S REPORT

Your Directors present the Twenty First Annual Report for the year ended 31
March 2009.

FINANCIAL RESULTS: IN RS. CRORE
Particulars 2008-09 2007-08

Total Revenue 6,955.62 4,541.76

Profit Befofe Interest, Depreciation & Tax 808.54 567.62
(PBIDT)

Less: Interest 194.28 113.28

Gross Profit 614.26 454.34

Less: Depreciation 119.48 113.39

Profit Before Tax (PBT) 494.78 340.95

Less: Provision for Taxation including 173.68 119.52
Deferred Tax Charge

Profit After Taxation (PAT) 321.10 221.44

Add: Profit Brought Forward 423.98 236.64

Transfer from Foreign Exchange Translation (2.10) -
Reserve

Transfer from Foreign Project Utilised Reserve 3.65 2.60

Surplus Available for appropriation 746.62 460.68

Appropriation:

Dividend on Equity Shares 9.10 12.14

Corporate Tax on Dividend 1.55 2.06

Amount transferred to General Reserve 50.00 22.50

Transfer to Debentufe Redemption Reserve 37.50 -

Profit carried to Balance Sheet 648.47 423.98

Capital Structure:

During the year under review, the sham capital of your Company was changed
by allotment of 35,974 equity shams of Rs.2/- each to employeess under ESOP
2005 and ESOP 2006 of the Company.

Divided:

The Directors recommend a dividend of 15% on equity shams, i.e. Rs.0.30 per
sham. Pursuant to the provisions of Companies (Transfer of Profits to
Reserves) Rules, 1975, Rs.50 crores has been transferrod to General
Reserve.

NSE Bulk Deals to Watch - Oct 1 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
01-OCT-2009,3IINFOTECH,3i Infotech Limited,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,828789,96.00,-
01-OCT-2009,3IINFOTECH,3i Infotech Limited,OM INVESTMENTS,BUY,1301930,98.37,-
01-OCT-2009,3IINFOTECH,3i Infotech Limited,SARAVANA SECURITIES D.SATHYAMOORTHI,BUY,1500000,100.08,-
01-OCT-2009,3IINFOTECH,3i Infotech Limited,TRANSGLOBAL SECURITIES LTD.,BUY,1594798,96.38,-
01-OCT-2009,ALKALI,Alkali Metals Limited,NARENDRABHAI AMTRATLAL AMIN,BUY,57423,272.82,-
01-OCT-2009,DHANBANK,The Dhanalakshmi Bank Ltd,SATYEN KANORIA,BUY,346292,175.47,-
01-OCT-2009,EDSERV,Edserv Softsystems Limite,SETU SECURITIES LTD,BUY,75940,137.29,-
01-OCT-2009,FCSSOFT,FCS Software Solutions Li,SUNEET LAL,BUY,81470,96.73,-
01-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,15156080,24.28,-
01-OCT-2009,NIITLTD,NIIT Limited,PHILLIPS HAGER AND NORTH OVERSEAS EQUITY FUND YCA2(934),BUY,3058200,74.36,-
01-OCT-2009,NIITLTD,NIIT Limited,PHILLIPS HAGER AND NORTH OVERSEAS EQUITY PENSION T YCA4(933),BUY,2070900,74.36,-
01-OCT-2009,OCTAV,Octav Investments Limited,INDU SETH,BUY,25000,23.15,-
01-OCT-2009,ROLTA,Rolta India Ltd.,PHILLIPS HAGER AND NORTH OVERSEAS EQUITY FUND YCA2(934),BUY,1215400,185.06,-
01-OCT-2009,ROLTA,Rolta India Ltd.,PHILLIPS HAGER AND NORTH OVERSEAS EQUITY PENSION T YCA4(933),BUY,823000,185.06,-
01-OCT-2009,SHREEASHTA,Shree Ashtavinayak Cine V,MAHALAXMI BROKRAGE INDIA PRIVATE LIMITED,BUY,628584,79.63,-
01-OCT-2009,SHREEASHTA,Shree Ashtavinayak Cine V,TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED,BUY,605504,79.73,-
01-OCT-2009,TATAMTRDVR,Tata Motors DVR 'A' Ord,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,BUY,480000,437.50,-
01-OCT-2009,TINPLATE,THE TINPLATE CO. (I) LTD,NEO SECURITIES LTD.,BUY,278700,50.71,-
01-OCT-2009,TINPLATE,THE TINPLATE CO. (I) LTD,PASHA FINANCE PVT LTD,BUY,180016,50.88,-
01-OCT-2009,TODAYS,Todays Writing Products L,PATEL PRITESH BIPIN,BUY,121237,36.48,-
01-OCT-2009,3IINFOTECH,3i Infotech Limited,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,828789,96.08,-
01-OCT-2009,3IINFOTECH,3i Infotech Limited,OM INVESTMENTS,SELL,1301930,98.45,-
01-OCT-2009,3IINFOTECH,3i Infotech Limited,TRANSGLOBAL SECURITIES LTD.,SELL,1595798,96.03,-
01-OCT-2009,ALKALI,Alkali Metals Limited,NARENDRABHAI AMTRATLAL AMIN,SELL,57423,273.84,-
01-OCT-2009,DHANBANK,The Dhanalakshmi Bank Ltd,SATYEN KANORIA,SELL,436292,174.88,-
01-OCT-2009,EDSERV,Edserv Softsystems Limite,SETU SECURITIES LTD,SELL,74739,136.97,-
01-OCT-2009,FAME,Fame India Limited,SHAIL INVESTMENTS PVT. LTD.,SELL,246469,35.85,-
01-OCT-2009,FCSSOFT,FCS Software Solutions Li,SUNEET LAL,SELL,81470,96.98,-
01-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,15087482,24.30,-
01-OCT-2009,LICHSGFIN,LIC Housing Finance Ltd,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,562900,755.34,-
01-OCT-2009,OCTAV,Octav Investments Limited,ELITE STOCK MANAGEMENT LTD.,SELL,25000,23.15,-
01-OCT-2009,SHREEASHTA,Shree Ashtavinayak Cine V,MAHALAXMI BROKRAGE INDIA PRIVATE LIMITED,SELL,626566,79.01,-
01-OCT-2009,SHREEASHTA,Shree Ashtavinayak Cine V,TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED,SELL,445669,78.80,-
01-OCT-2009,TATAMTRDVR,Tata Motors DVR 'A' Ord,ALMONDZ CAPITAL & MANAGEMENT,SELL,479590,437.50,-
01-OCT-2009,TIDEWATER,Tide Water Oil Co. (India,MADANLAL LTD,SELL,6000,5040.96,-
01-OCT-2009,TINPLATE,THE TINPLATE CO. (I) LTD,NEO SECURITIES LTD.,SELL,99341,51.00,-
01-OCT-2009,TINPLATE,THE TINPLATE CO. (I) LTD,PATTON INTERNATIONAL LIMITED,SELL,463017,50.56,-
01-OCT-2009,TINPLATE,THE TINPLATE CO. (I) LTD,PATTON INTERNATIONAL LIMITED,SELL,553099,50.87,-
01-OCT-2009,TODAYS,Todays Writing Products L,PATEL PRITESH BIPIN,SELL,121237,37.38,-

Current account deficit

India’s current account deficit for Q1 FY10 at US$5.8bn was 35% lower than the deficit during Q1 FY09 of US$9bn. The deterioration from Q4 FY09 (surplus of US$4.7bn) reflects seasonality (Q4 being a stronger quarter). More importantly, capital flows turned positive after two consecutive quarters of outflows. Consequently, India returned to a BoP surplus after a gap of three quarters. India’s external debt rose marginally (by US$3.7bn) during Q1 FY10. However, the entire rise was due to valuation reasons; on constant currency basis external debt would have actually declined by US$1.3bn. As of June 2009, India’s total external debt stood at US$228bn - an extremely comfortable level given the size of the economy and its foreign exchange reserves.

The RBI said in a statement that the capital account showed a turnaround from a negative balance in the last two quarters of 2008-09 to a positive balance of US$6.7bn during the first quarter of 2009-10. Private transfer receipts, comprising mainly remittances from Indians working overseas and local withdrawals from NRI rupee deposits, increased by 9.4% to US$13.3bn during April-June quarter from US$12.2bn a year ago.

Gross capital inflows to India revived during the April-June quarter as compared to the corresponding period of last year. "The gross inflows were at US$78.5bn as compared to US$90.9bn in April-June 2008-09 mainly led by inflows under FIIs, FDI and NRI deposits," the RBI said. Gross capital outflows during the first quarter this fiscal stood lower at US$71.8bn as against US$79.7bn in the corresponding period last fiscal.

There is expectation that the annual current account deficit figure will be sharply lower from last year's US$30bn. Experts also see an improvement in capital flows, especially debt capital flows in the next few quarters.

How to find the right stock price

Just about a year ago, the rumour mills were working overtime, leading to speculation about the survival of ICICI Bank. This was soon after the global economic crisis hit the Indian shores and ICICI Bank owned up to subprime losses. After it announced the extent of the losses, the bank's share price went into a tailspin as panicky investors started offloading their holdings. Within two months, the share price crashed from Rs 650-700 to Rs 310. The fall may have seemed scary, but not to analysts and brokerages, who upgraded their rating of the bank from 'underperformer' to 'buy' in October 2008.

What prompted the upgrade in the midst of a downturn? The answer lies in the value of the stock. As the stock corrected to Rs 310, analysts found that the price was lower than the market value of the bank's investments, or the book value per stock. "If we factor in the worst case scenario and erode the entire non-government foreign investments from our target price, our rock bottom valuations are at Rs 445, say Prabhudas Lilladher's banking analysts, Abhijit Majumder and Bharat Gorasiya. On an average, analysts valued the bank at Rs 440 per share (book value).

Given the fact that bank shares usually trade at two times their book value, ICICI Bank soon became the most favoured stock. The stream of upgrade calls were not wrong. Since then, the stock price has more than doubled to Rs 755 and is currently around 1.5 times its estimated 2009-10 book value.

This case offers an important lesson for equity investors - get the price right. No matter which stock you invest in, the cardinal rule is not to overpay.

Yardsticks to Value Stocks in Different Sectors
Industry	Best measure of value
Auto	Price to Earnings (PE) multiple
Banking	PE and Price to Book Value (PBV) or Adjusted PBV multiple
Cement	PE, Enterprise Value to Earnings before interest, tax, depreciation & amp; amortisation (EV/EBITDA), EV/tonne
Engineering	Forward PE, which reflects the order book position of the company
FMCG	PE, Return on Equity (RoE) and Return on Capital Employed (RoCE) ratios
Real Estate	Net asset value (NAV), which is book value at market prices. Also look at debt levels
Telecom*	PE and DCF, because there is a future stream of cash flows for upfront heavy investment
Oil & amp; Gas	Residual reserves of energy assets
Technology	Trailing PE and its growth
* Includes utilities

Unlike fixed income options, such as bank deposits, where the returns are guaranteed, the performance of equity investments is determined by the purchase price as well. Once the stock is bought, there is very little that retail investors can do apart from buying more or selling them. So, if they invest at the right price range (or low valuations), the probability of earning greater returns is higher.

Valuation tools
How do you know you are paying the right price for a stock? The answer is to check the target investment using a couple of financial parameters. "Depending on the nature of the business and the sector's growth prospects, an appropriate tool must be used to value the company, says Hitesh Agrawal, head of research, Angel Broking. This tool is the ratio or financial metric that determines the value of a stock.

Unfortunately, there is no single tool for all industries and stocks. "One ratio cannot be applied blindly to value stocks across sectors, says Manish Shah, associate director, Motilal Oswal Financial Services. This is due to the inherently different nature of businesses. Broadly, there are two valuation metrics: PBV (price to book value) and PE (price to earnings). The former calculates the value of assets and the latter determines the price investors are paying for the company's earnings per share. A high growth, low capital-intensive company must be valued on PE, whereas the PBV or the replacement value is the appropriate tool to value capital-intensive businesses.

Another ratio that takes care of the debt leveraging aspect across companies is the EV/EBITDA (enterprise value/ earnings before interest, tax, depreciation and amortisation), or the enterprise multiple. But, as Agrawal says, it is always advisable to consider two or three valuation tools before taking an investment decision.

The tools that apply to different sectors and industries vary. Cement manufacturers are best valued using EV/EBITDA, real estate firms using NAV, while engineering companies can be valued using forward PE (see graphic). The PBV is used for capital-intensive businesses like banks and power companies.

Public sector bank stocks are attractive when they are trading below their book values. For a private bank, depending on its size, the ideal PBV ratio is around 2. In case of FMCG companies, the PE multiple is a better yardstick because these companies invest upfront in building brands and facilities and derive the earnings in subsequent periods.

What Impacts Stock Valuations in Sectors
Industry	Best measure of value
Auto	Volume growth, realisations, operating profit margins, new product launches
Banking	Loan growth, non-performing assets, net interest margins, CASA ratio
Cement	Dispatches, operating costs, regional demandsupply equation
Engineering	Order book inflows, execution skills, margins
FMCG	RoE, RoCE, margins, volume growth, new products, marketshare
Real Estate	Debt levels, liquid assets, inventory levels, promoters' ability to raise funds
Utilities/Power	Project costs, plant load factors, raw material costs, debtequity ratios
Telecom	Revenue per user, growth in usage, new subscribers, non-wireless revenues, EBITDA
Oil & amp; Gas	Reserves, efficiency ratios, free cash flow generation
Technology	Order inflow, ability to contain costs, service verticals, profitability, client attrition

Comparing with peers
After deriving the book value, a peer group comparison is needed. "Always conduct a peer analysis. Consider the sector's potential and see how the company compares with its peers, says Sonam Udasi, vice-president, Brics Securities.

However, peer group valuation has its own limitations. The target company's valuations might be lower than the benchmark or industry average due to constraints regarding market share or economies of scale, and it might continue trading at a discount. Infosys, which is considered to have superior margins and a high-yielding business portfolio, has always traded at a premium to Wipro, Tata Consultancy Services and the information technology industry as a whole.

"One also has to look at the reasons for the valuation discount versus the benchmarks. Most likely, there is a good reason for the discount. For instance, if a company can address adverse issues going forward, the discount will narrow and the stock valuation will improve. If it fails to do so, then the stock will continue to trade at a discount to its peers, says Udasi.

To refine the research process further, comparing the efficiency and return ratios of the stock with the industry or benchmark would help investors take informed decisions. In case of banks, the loan growth, net interest margins and the rise in bad loans can help find the right stock. Likewise, FMCG stocks can be sorted on the basis of return ratios like the return on equity (RoE), return on capital employed (RoCE) and the company's operating margins.

How does an investor find out if a particular valuation method is a good parameter? According to Macquarie Research, the valuation parameter is considered good "if the sector consistently shows increasingly strong returns from progressively lower levels of the valuation metric, and increasingly weak or negative returns from progressively higher levels of the valuation metric.

Sustainable growth
The sustainability of the earnings momentum is crucial because all the financial parameters or metrics are based on this presumption. "The valuation of the financial parameters needs to be done on expected or estimated earnings potential and growth. This is the most difficult and critical part for any analysis, says D.D. Sharma, senior vice-president, research, Anand Rathi Financial Services.

Apart from comparisons with benchmarks, the management quality, transparency, earnings growth and earnings volatility are key factors for driving the valuations of a stock. "Any change in these factors will re-rate or de-rate a stock. So, a standalone comparison of a stock with its peers or benchmark indices will not help much. Look for a change in the earnings potential, growth or management for a re-rating trigger, says Sharma. Hence, a company that is currently not earning profits cannot be valued at zero or close to zero.

A typical example is dishtv. The direct-to-home cable service provider is still in the investment process and is not making a profit now. The loss-making company is currently trading at Rs 42. "This is because it is developing a business, which will earn significant profits in the next few years, says Sharma.

The bottom line
Clearly, valuations are not static, but dynamic. Depending on broader factors, such as market sentiment and sectoral preference, these change with time. A stock that trades at a discount to benchmark valuations, but shows superior earnings growth rates and scores better on operational efficiencies, can be a good investment pick. Investors should use the valuation methods mentioned above to zero in on the stocks that have value, while avoiding the ones that trap them by appearing to offer value.

via Money Today/Indiainfoline

Weekly Stock Picks - Oct 1 2009

Buy Educomp

Buy IDFC

Buy TIL

Buy Aban Offshore

Buy BEL

Weekly Newsletter - Oct 1 2009

After a fantastic quarter, the markets could well be a little apprehensive about its future course. Liquidity beats fundamentals in the near term and there are no clear signs of a drought in fund flows. Weekly FII purchases are to the tune of over Rs57bn while domestic funds have been net sellers of over Rs8bn.

Global cues of course will continue to have a major influence. With China and Hong Kong markets shut for few more days, the cues from US will be closely watched, especially with results kicking in. No major economic reports are due in the US next week but today’s reports on jobless claims and spending show a mixed picture. Federal Reserve Chairman Ben Bernanke in his testimony has more or less agreed with most of the Obama plan for strengthening regulatory financial system.

Reliance Industries Board will meet on Oct 07, 2009, to consider and approve, the audited financial results for the year ended March 31, 2009 and to consider and recommend / declare dividend on equity shares of the Company. Prism Cement, Shiv-Vani Oil, Chowgule Steamship, Easter Silk, Goa Carbon and Mastek will announce their results next week. Take the needed rest over the weekend. October may see some spurts, but bulls sure could feel dizzy at the top.

Real estate firms make a beeline for IPOs

A whole host of real estate companies approached market regulator SEBI to file the draft red herring prospectus (DRHP) for their proposed initial public offerings (IPOs). The total amount proposed to be raised from these issues comes to around Rs145-150bn. Three other real estate companies - Lodha Developers, Sahara Prime City and Emaar MGF - each filed a DRHP with SEBI, in order to raise a total Rs100bn from the primary markets.

Mumbai-based DB Realty aims to raise Rs15bn by selling a 10% stake through the IPO. The issue will have a greenshoe option of Rs1.5bn. Kumar Builders plans to mop up Rs4-5bn. Last Friday, Delhi-based Ambience Ltd. had filed a DRHP with SEBI to raise as much as Rs11.25bn through an IPO with a green-shoe option of Rs1.69bn. BPTP and Sriram Properties too reportedly likely file DRHPs this week, though BPTP denied having done so.

A clutch of other developers, including Oberoi Constructions, Nitesh Estates and Godrej Properties, have said they are working on plans to launch IPOs in the next few months. Since April, founders of the country's biggest property firm DLF have raised US$780mn, second-largest Unitech has raised US$325mn and Indiabulls Real Estate has raised US$550mn through sale of shares to institutions.

Indian companies have raised about US$15bn through share sales in the past six months, encouraged by a sharp rebound in the local stock market that has risen 75% so far in 2009. The real estate sector index has nearly doubled this year after plummeting by more than 80% last year.

Bulls tighten their grip ahead of Q2 results

The key benchmark indices gained in a truncated trading week on heavy buying by foreign institutional investors backed by slew of positive domestic economic indicators, hopes of strong Q2 earning and gains in global stocks. The BSE Sensex moved past the 17,000 mark. The Sensex and the 50-unit S&P CNX Nifty struck their highest level in more than 16 months. The market will remain closed on Friday, 2 October 2009, on account of Gandhi Jayanti . The market had remained closed on Monday, 28 September 2009 due to Dussehra. The BSE Sensex rose in all the three trading sessions in the week.

There is optimism about Q2 September 2009 results after advance tax collections registered a positive growth in the second quarter after witnessing a negative growth in the first quarter. Corporate advance tax and advance personal income-tax were up by 14.7% and 1.7%, respectively in the September 2009 quarter. Infosys kickstarts the reporting season on 9 October 2009.

A latest economic data showed that the economy is recovering from a slowdown last year. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, surged 55 in September 2009 from a five-month low of 53.2 in August 2009. A reading above 50 shows expansion while below 50 reading denotes contraction. The new orders index rose to 58.3 in September 2009, from August's 56.2, which was its lowest in four months.

The index of six core industries having a combined weight of 26.7% in the index of industrial production (IIP) registered a growth of 7.1% in August 2009 compared to a growth of 2.1% in August 2008. During April-August 2009-10, six core industries registered a growth of 4.8% as against 3.3% during the corresponding period of the previous year. Coal and cement sector boosted overall growth in the six infrastructure industries in August 2009.

On the flip side, exports fell for eleventh straight month as the global slump crimped demand for Indian goods. Exports fell 19.4% to $14.29 billion in August 2009 over August 2008, the government data showed on Thursday, 1 October 2009. Imports dropped 32.4% to $22.66 billion in August 2009 over August 2008. India's trade deficit shrunk to $8.37 billion in August 2009 from $15.79 billion a year earlier.

Inflation based on the wholesale price index rose 0.83% in the year through 22 September 2009, higher than previous week's annual gain of 0.37%, government data showed on Thursday, 1 October 2009. The government revised upward headline inflation for the year through 25 July 2009 to a fall of 0.71% from a provisional decline of 1.58% Most auto and cement firms will unveil their monthly sales data for September 2009 starting today, 1 October 2009.

The International Monetary Fund (IMF) on 1 October 2009 said China and India will lead Asia's expansion in 2010, growing at rates of 9% and 6.4%, respectively. The IMF said global economy will grow next year, but it will be a sluggish recovery that could stall if policymakers around the world announce a premature exit from accommodative monetary policy and fiscal policies.

The Fund said it now expects the world economy to contract 1.1% in 2009 before growing 3.1% in 2010. This is more upbeat than its last update in July 2009 when the Fund projected the world economy would shrink 1.4% in 2009, before expanding 2.5% in 2010.

Over the four years starting at the end of 2010, global growth is expected to average a little more than 4% a year, below the 5% growth rates before the financial crisis erupted, the IMF said.

The BSE 30-share Sensex rose 441.55 points or 2.64% to settle at 17,134.55 in the week ended Friday, 1 October 2009. The S&P CNX Nifty rose 124.45 points or 2.5% to 5,083.40 in the week

The Sensex rose 2,633 points or 18.16% to in the quarter ended 30 September 2009 from its closing of 14,493.84 on 30 June 2009. The Sensex is up 7,487.24 points or 77.6% in calendar year 2009 as 1 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8,974.15 points or 109.97% as on 1 October 2009.

Foreign investors are positive on India as a recovery of the Indian economy is underway. Some large initial public offers and placement to qualified institutional investors by India Inc in recent past also attracted huge FII inflows. FII inflow in the calendar year 2009 totaled Rs 58,627.30 crore (till 29 September 2009).

The BSE Mid-Cap index rose 75.08 points or 1.2% to 6302.01 and the BSE Small-Cap index gained 136.93 points or 1.83% to 7,587.18. Both the indices underperformed the Sensex.

Data showing a surge in growth in the core sector boosted domestic bourses on Tuesday, 29 September 2009 with the 50-unit S&P CNX Nifty settling above the psychological 5,000 level. The BSE 30-share Sensex rose 159.91 points or 0.96% to 16,852.91 on that day.

The key benchmark indices extended gains for second straight day on Wednesday, 30 September 2009 on optimism about Q2 September 2009 which will start trickling in from the second week of October 2009. A decent listing of Oil India which settled at a premium of 8.62% over the initial offer price (IPO) of Rs 1,050 also supported market. The BSE 30-share Sensex rose 273.93 points or 1.63% to 17126.84 on that day.

Key benchmark indices ended flat on Thursday, 2 October 2009 after seeing wild swings throughout the day on alternate bouts of buying and selling. The BSE 30-share Sensex rose 7.71 points or 0.05% to 17,134.55 on that day.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 1.9% to Rs 2,170.45. In the face of opposition from the Power Ministry and Anil Ambani group firm Reliance Infrastructure on the marketing margins charged, RIL has justified the levy saying it was essential to cover risks and costs incurred in marketing of gas.

Terming as illegal the market margin, Reliance Infra had refused to pay the levy prompting RIL to issue a notice for suspension of fuel supply for "default". NTPC has sought to know whether the margins levied by RIL had government's approval.

RIL had said on 24 September 2009 it has signed gas supply agreement with state-run utility NTPC to supply gas for some of its power plants for five years. Reliance will supply 0.61 million standard cubic metres a day (mscmd) to NTPC, and expects to start supplies within a week.

Auto stocks were mixed after witnessing a solid surge in the past few weeks on expectations of a pick up in sales in festive season which began with Dussehra on 28 September 2009. India's largest tractor maker by sales Mahindra & Mahindra rose 4.92%. The company's total vehicle sales increased 11% to 28,134 units in September 2009 over September 2008. India's top small car maker by sales Maruti Suzuki rose 0.62%. The company's total vehicle sales rose 17.3% to 83,306 units in September 2009 over September 2008.

As per reports, the government will release pay arrears to government employees under the second and final installment ahead of big festivals in October 2009. The payout would boost demand for cars and motorcycles.

India's largest truck maker by sales Tata Motors fell 2.1%. Tata Motors-owned Jaguar Land Rover on 24 September 2009 unveiled a new business plan for the next decade, under which it will invest substantially in a new range of eco-friendly vehicles. The plan, designed to increase global competitiveness, drive growth and sustain profitability, envisages an investment of £800 million (over Rs 6,200 crore) on environmental innovation alone, part-supported by the European Investment Bank.

The plan will also see the company shutting down of one of its plants, in a bid to cut costs and to improve its financial health.

IT stocks rose on hopes of a revival in US economy. US is the biggest market for Indian IT firms. India's third largest software services exporter by sales Wipro rose 7.01%. India's second largest software services exporter by sales Infosys rose 3.58%.

India's largest IT exporter by sales Tata Consultancy Services rose 7.64%. The company on Wednesday said it signed a multi-million dollar deal with a Singapore state organisation to provide annual application management services for two years.

A news agency quoted chief executive S. Ramadorai as saying that the company expects a recovery in the global banking sector to boost its revenues this year. Ramadorai said the company was seeing some signs of a recovery in the demand for outsourcing, especially from the banking, financial services and insurance sectors that account for 43% of its business.

India's largest mobile telecom player by sales Bharti Airtel rose 5.06%. The talks between Bharti Airtel and South Africa's MTN Group to create the world's third-largest mobile operator collapsed for the second time in just over a year.

Bharti Airtel blamed the South African government for the breakdown in the planned $24 billion deal which faced close scrutiny from regulators and politicians. South Africa was eager to retain MTN's local management and homegrown character and had approached Indian authorities to consider a dual-listed entity, a structure Indian law does not allow.

India's largest private sector bank in terms of operating income ICICI Bank rose 10.23%. The bank sold 4.41% stake in software services provider 3i Infotech for Rs 46.17 crore on Wednesday, 30 September 2009, in open market transactions on BSE and NSE.

India's largest commercial lender by branch network State Bank of India (SBI) rose 3.3%. The bank has cut deposit rates across maturities by 25 basis points from 5 October 2009. The (SBI) stock has been on a roll after Chairman O.P. Bhatt on 8 September 2009 said the bank's earnings are likely to grow 30-35% in Q2 September 2009 over Q2 September 2008.

India's largest power equipment maker by sales Bharat Heavy Electricals rose 4.64%. The company secured an export order worth Rs 270 crore on Wednesday, 30 September 2009.

BSE Bulk Deals to Watch - Oct 1 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
1/10/2009 532628 3I INFOTECH TRANSGLOBAL SECURITIES LTD. B 1561351 95.72
1/10/2009 532628 3I INFOTECH OPG SECURITIES P LTD B 2093278 97.40
1/10/2009 532628 3I INFOTECH TRANSGLOBAL SECURITIES LTD. S 1561351 96.16
1/10/2009 532628 3I INFOTECH OPG SECURITIES P LTD S 2093278 97.56
1/10/2009 519183 ADF FOODS LT TOP CLASS EDUCATION FACILITIES SERVICES PVT LTD B 1022000 70.38
1/10/2009 519183 ADF FOODS LT RAMESH HARIRAM THAKKAR S 400000 70.00
1/10/2009 519183 ADF FOODS LT MISHAL ASHOK THAKKAR S 200000 70.00
1/10/2009 519183 ADF FOODS LT BHAVESH RAMESH THAKKAR S 200000 70.08
1/10/2009 519183 ADF FOODS LT BIMAL RAMESH THAKKAR S 200000 70.00
1/10/2009 532351 AKSH OPTIFIB SECURITIES MORGAN B 1180000 25.70
1/10/2009 532351 AKSH OPTIFIB MEIER RUDOFF S 1266675 25.73
1/10/2009 531519 ANKUSH FINST RAUSHNI BASHEER SAIYED B 100000 3.99
1/10/2009 531519 ANKUSH FINST PANDURANG NAMDEV NALAWADE B 100000 3.99
1/10/2009 531519 ANKUSH FINST SAHIL BHARATBHAI SHAH S 100000 3.99
1/10/2009 531519 ANKUSH FINST ANKIT PANKAJBHAI SHAH S 100100 3.99
1/10/2009 521167 APEEGO LTD SURESH KUMAR S 69400 1.48
1/10/2009 530095 BHAGWAND MET DECCAN FINANCIAL SERVICES P LTD B 201872 5.54
1/10/2009 530095 BHAGWAND MET C BASE P LTD CENTIRY S 201872 5.54
1/10/2009 532871 CELEST LABS CHERUKURI SIRISHA S 65080 34.47
1/10/2009 531327 CHARMS INDS MAHESH BALDEV MODI B 25600 2.53
1/10/2009 531327 CHARMS INDS DARSHANKUMAR HARIPRASAD KOTADIYA S 40064 2.52
1/10/2009 532363 COMP-U-LEARN KISHORE BABURAMINENI B 65000 23.15
1/10/2009 532363 COMP-U-LEARN MULTIPLIER S AND S ADV PVT LTD S 75000 23.20
1/10/2009 532363 COMP-U-LEARN HITESH SHASHIKANT JHAVERI S 70001 23.20
1/10/2009 523467 JAI MATA GLA PADMAKSHI FINANCIAL SERVICES PVT. LTD. B 15000 4.82
1/10/2009 523467 JAI MATA GLA PRABHUDAS LILLADHER P LTD. B 55003 4.83
1/10/2009 523467 JAI MATA GLA Naman Securities & Finance Pvt. Ltd. B 20018 4.94
1/10/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD B 1046700 4.94
1/10/2009 523467 JAI MATA GLA PRATAP HAZARIKA B 25000 4.80
1/10/2009 523467 JAI MATA GLA BP FINTRADE PRIVATE LIMITED B 52084 4.87
1/10/2009 523467 JAI MATA GLA GROWMORE PROPERTIES PVT LTD S 81886 4.87
1/10/2009 523467 JAI MATA GLA SUMAN GUPTA S 25000 4.80
1/10/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 403300 4.82
1/10/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD S 867329 4.96
1/10/2009 532642 JINDAL SOUTH OPG SECURITIES P LTD B 69199 1767.41
1/10/2009 532642 JINDAL SOUTH OPG SECURITIES P LTD S 69199 1769.93
1/10/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 208368 7.61
1/10/2009 530255 KAY POW PAP OM PARKASH GUPTA B 136525 7.32
1/10/2009 530255 KAY POW PAP SATISH KUMAR GUPTA B 130000 7.63
1/10/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 207200 7.23
1/10/2009 530255 KAY POW PAP OM PARKASH GUPTA S 65100 7.73
1/10/2009 530255 KAY POW PAP SATISH KUMAR GUPTA S 125000 7.64
1/10/2009 530255 KAY POW PAP GIRRAJ PRASAD GUPTA S 67500 7.60
1/10/2009 531731 KUVAM INTL DINESH KUMAR SHANTILAL MEHTA B 25000 47.75
1/10/2009 531731 KUVAM INTL SANJEEV KUMAR GUTPA S 20000 47.75
1/10/2009 531731 KUVAM INTL GAURAV GARG S 60000 47.75
1/10/2009 524522 LAFAN PETROC HITESH SHASHIKANT JHAVERI B 43325 31.05
1/10/2009 500264 MAFATLA INDU FLASHNET INFO SOLUTIONS (I ) LTD S 25069 68.35
1/10/2009 530543 MARG LTD GOOD FORTUNE ADVISORY SERVICES LTD. B 201658 149.24
1/10/2009 530543 MARG LTD SUBH VIJAYA IMPEX PVT LTD. S 206635 149.27
1/10/2009 511688 MATHEW EASOW RAM NARYAN SONI B 20000 17.50
1/10/2009 511688 MATHEW EASOW RUPAL SAMDANI B 21000 17.50
1/10/2009 511688 MATHEW EASOW MARUTI TRADERS AND INVESTORS S 50674 17.51
1/10/2009 526247 PREM EXPLOSI SHIVANI TEJAS TRIVEDI B 61628 67.57
1/10/2009 517556 PVP VENT LTD K S SURESH S 1225000 41.16
1/10/2009 517556 PVP VENT LTD K S GANESH S 1175000 40.98
1/10/2009 511652 RAM KAASHYAP SETU SECURITIES PVT LTD B 22700 15.01
1/10/2009 511652 RAM KAASHYAP ARUN MANDAVIYA HUF S 25000 15.02
1/10/2009 502587 RAMA PUL PAP GOODDEAL PROPERTIES PRIVATE LIMITED B 63770 10.32
1/10/2009 590077 RANKLIN SOLU SRIKANTH MIKKILINENI B 40650 36.81
1/10/2009 531952 RIBA TEXTILE REHWA CORPORATION LIMITED S 38918 13.59
1/10/2009 506172 SAMPADA CHEM SHREE SATYANARAIN PROPERTIES PRIVATE LTD S 55000 26.32
1/10/2009 531312 SANRAA DYNAMIC STOCK BROKING INDIA PVT LTD S 4080291 1.13
1/10/2009 505590 SCENARIO MED PREMLAL ROY B 7500 134.90
1/10/2009 524540 SECUN HEALTH SAMEER N SHAH B 34266 29.28
1/10/2009 524540 SECUN HEALTH SAMEER N SHAH S 34266 29.49
1/10/2009 519031 SHAH FOODS L SAURASHTRA PETRO PRODUCTS PVT LTD B 3003 33.29
1/10/2009 532793 SHREE ASHTA MAHALAXMI BROKERAGE (INDIA) PRIVATE LIMITED B 678912 78.76
1/10/2009 532793 SHREE ASHTA DHIREN ANANTRAI MODI B 839535 78.98
1/10/2009 532793 SHREE ASHTA DKG SECURITIES PVT. LTD. B 866000 75.71
1/10/2009 532793 SHREE ASHTA AVR OVERSEAS PVT LTD B 667324 79.08
1/10/2009 532793 SHREE ASHTA MAHALAXMI BROKERAGE (INDIA) PRIVATE LIMITED S 673411 79.63
1/10/2009 532793 SHREE ASHTA DHIREN ANANTRAI MODI S 839535 77.29
1/10/2009 532793 SHREE ASHTA DKG SECURITIES PVT. LTD. S 616165 77.88
1/10/2009 506003 SUDAL INDUST ESSAN CONSULTANT PVT.LTD B 30000 42.05
1/10/2009 570001 TATAMOTORS-DVR-A-ORDY SWISS FINANCE CORPORATION MAURITIUS LIMITED B 606000 437.49
1/10/2009 570001 TATAMOTORS-DVR-A-ORDY IFCI LTD S 600000 437.50
1/10/2009 504966 TINPLATE COM PATTON INTERNATIONAL LIMITED S 436983 50.69
1/10/2009 590093 TRIMURTHI DR ARVIND SHAH B 45000 48.95
1/10/2009 531917 TWINSTA SO E NARESH RUNGTA B 104952 3.92
1/10/2009 531917 TWINSTA SO E NARESH RUNGTA S 104952 3.95
1/10/2009 531917 TWINSTA SO E NAMITA STOCKTRADE PRIVATE LIMITED S 200831 3.91

Sector Updates

Sector Updates

Post Session Commentary - Oct 1 2009

Markets closed the today’s session on flat note after exhibiting volatility during the trading as investors booked profit in key stocks. Fall in Asian stocks also weighed on sentiments. Domestic indices were not able to stick on a particular direction on continuous bouts of buying and selling. However, market gained some ground during afternoon session following positive opening of European markets. Besides, investors were booking long positions on abridged trading week. The market will remain close on Friday, 2 October 2009, on account of Gandhi Jayanti. Meanwhile, The India’s wholesale inflation rate continued to rise, as increased 0.83% in the week ended 19th September from a year earlier. BSE Sensex ended above 17,100 level and NSE Nifty closed below 5,100 level.

The market opened with slight gains amid weak cues from the global markets. The Asian markets were lower and the US stock market closed modestly down on Wednesday, backed by mixed economic data. A report that showed the Chicago purchasing-manager''s index dropped to 46.1 in September from 50 in August indicating a contraction, weighed on sentiments. Besides, a disappointing jobs report also contributed to downturn. In addition, most recent batch of earnings proved better than expected. Further, domestic benchmark indices turned choppy immediately after opening and slipped into red. During the trading, market tried to recover and gathered some momentum amid choppy trade. Finally, market lost ground to close on flat note after rolling between positive and negative territory. From the sectoral front, most of the buying was seen in Teck, IT, Bank and FMCG stocks. However, Pharma, Auto, Oil & Gas and Consumer Durable stocks were unable to gain favour from the market. Mid Cap and Small Cap stocks also ended lower.

Among the Sensex pack 17 stocks ended in green territory, 12 in red territory and 1 remained unchanged. The market breadth indicating the overall health of the market remained negative as 1123 stocks closed in red while 1663 stocks closed in green and 82 stocks remained unchanged in BSE.

The BSE Sensex closed slightly higher by 7.71 points at 17,134.55 and NSE Nifty ended flat at 5,083.4. BSE Mid Caps and Small Caps closed with losses of 22.15 and 2.86 points at 6,302.01 and 7,587.18 respectively. The BSE Sensex touched intraday high of 17,195.61 and intraday low of 17,059.36.

Losers from the BSE Sensex pack are Maruti Suzuki (2.82%), HDFC (2.80%), Grasim Industries (2.44%), Tata Power (2.18%), Herohonda Motors (2.11%), Tata Motors (1.90%), Hindalco (1.67%), NTPC Ltd (1.57%), Reliance (1.40%), Reliance Infra (1.31%) and L&T Ltd (1.05%).

Gainers from the BSE Sensex pack are Bharti Airtel (4.01%), RCom (3.25%), ICICI Bank (2.17%), TCS Ltd (2.03%), M&M Ltd (1.14%), BHEL (1.07%), ONGC Ltd (0.91%), HUL (0.88%), Wipro Ltd (0.86%), ACC Ltd (0.79%) and Infosys Tech (0.75%).

The India’s wholesale inflation rate continued to rise. The wholesale price index, which is the main gauge of inflationary trends, increased 0.83% in the week ended 19th September from a year earlier. The index had risen 0.37% in the previous week. Due to a sharp rise in food prices, the annual wholesale inflation rate in India is rising after seeing on-year decreases in 13 successive weeks.

On the global markets front, the Asian markets that opened before the Indian market, ended lower, as Wall Street fell overnight. Besides, a Japanese survey showed manufacturers still think they have too many workers. Nikkei 225, Singapore''s Straits and Seoul Composite ended lower by 154.59, 15.13 and 28.51 points at 9,978.64, 2,657.44 and 1,644.63 respectively. Meanwhile, markets in China and Hong Kong were closed for a holiday. Hong Kong and mainland China markets were closed for the 60th anniversary of Communist rule. Hong Kong reopens Friday but mainland markets are closed until October 9.

European markets, which opened after the Indian market, are trading in red after positive opening. In Paris the CAC 40 is lower 20.36 points at 3,775.05, in Frankfurt DAX index is trading down 6.67 points at 5,668.49 and in London FTSE 100 is trading higher by 19.41 points at 5,114.49.

The BSE Pharma index ended lower by (1.30%) or 57.05 points at 4,347.21. Main losers are Dishman Pharma (5.21%), Dr Reddy’s Lab (3.63%), Wockhardt Ltd (3.42%), Sunpha Adv (3.39%) and Orchid Chem (3.11%).

The BSE Auto index lost (0.92%) or 61.06 points 6,603.19 on profit booking after a recent strong rally. Losers are Maruti Suzuki (2.82%), Herohonda Motors (2.11%), MRF Ltd (1.99%), Tata Motors (1.90%), Ashok Leyland (1.18%) and Bosch Ltd (1.18%).

The BSE Consumer Durables index closed lower by (0.90%) or 31.40 points at 3,475.98. Losers are Videocon Ind (2.88%) and Rajesh Export (2.66%). Scrips that gained are Blue Star L (0.42%), Gitanjali GE (0.25%) and Titan Ind (0.07%).

The BSE Teck index advanced by (1.45%) or 47.35 points at 3,308.11. Gainers are NIIT Ltd (7.44%), Rolta Ind (7.28%), Bharti Airtel (4.01%), RCom (3.25%) and TCS Ltd (2.03%).

The BSE IT index increased by (0.88%) or 40.32 points at 4,611.23 on expectations of good Q2 September 2009 results. Gainers are NIIT Ltd (7.44%), Rolta Ind (7.28%), TCS Ltd (2.03%), Aptech Ltd (1.50%) and Tech Mahindra (0.92%).

The BSE Bank index ended up by (0.77%) or 76.19 points at 9,931.79, as Axis Bank (2.76%), ICICI Bank (2.17%), Union Bank (1.50%), PNB (1.48%) and SBI (0.65%) ended in green.

Maruti Suzuki India Limited ended lower by 2.82%. The company sold a total of 83,306 vehicles in September 2009, growing 17.3 percent in the month. This includes exports of 11,712 units. The company had sold a total of 71,000 vehicles in September 2008.

Parsvnath Developers Limited closed up by 1.86%. One of India''s leading real estate and infrastructure providers has inked an agreement with leading international real estate private equity fund Red Fort Capital to sell 4% additional stake in its premium luxury residential project at Civil Lines, Delhi. With this additional stake the total investment of Red Fort Capital Parsvnath La Tropicana will increase to Rs, 1,150 million from Rs. 900 million.

Television Eighteen India Limited (TV18) lost 1.03%. The board of the company today approved the Agreement for issuance of Preferred Stock of WeblS Holdings, Cayman Limited (WeblS), a company incorporated under Cayman Island and a subsidiary of TV18, to NGP II Mauritius.

Bharti Airtel advanced by 4.01%. The merger talks between the company and MTN were called off in spite of strong discussions for past 4 months after the South African government rejected the structure of the proposed deal worth $23 billion.

Indices unchanged

After opening 59 points higher over its previous close of 17127, the bellwether scaled lower to touch an intra-day low of 17059 and an intra-day high of 17196. However on the back of selective buying in pivotal stocks the Sensex ended flat, mere 8 points higher at 17135. Nifty was down half a point at 5083.

The number of declining shares was more than advancing shares. Of the 2,863 stocks traded on the BSE, 1,136 stocks rose, while 1,653 stocks fell. The remaining 74 stocks ended unchanged.

Sectoral indices showed mixed result. BSE Teck, BSE IT, BSE FMCG, BSE Bankex, BSE PSU and BSE Metal ended with gains, whereas BSE HC, BSE Auto, BSE CD, BSE Oil & Gas, BSE Power, BSE CG and BSE Realty ended with losses.

Among gainers, Bharti Airtel flared up 4.01% to Rs435.35, Reliance Communications moved up 3.25% to Rs318, ICICI Bank jumped 2.17% to Rs924.45, Tata Consultancy Services gained 2.03% to Rs631.95, Mahindra & Mahindra scaled up 1.14% to Rs891.25 and Bharat Heavy Electricals were 1.07% up at Rs2349.95. While ONGC, Hindustan Uniliver, Wipro, ACC, Infosys Technologies, Jaiprakash Associates and State Bank of India reported marginal gains. Maruti Suzuki India dropped 2.82% to Rs1,651, HDFC shed 2.80% to quote at Rs2,699.15, Grasim Industries was down 2.44% to Rs2,700.80, Tata Power lost 2.18% to 1,290.65, Hero Honda Motors declined 2.11% to trade at Rs1,634.45, while Tata Motors, Hindalco Industries, National Thermal Power Corporation, Reliance Industries, Reliance Infrastructure and Larsen & Toubro were down 1-2%.

Over 3.42 crore shares of Ispat Industries changed hands on the BSE followed by Ambuja Cement (87.42 lakh shares), Unitech (87.38 lakh shares), IDFC (75.48 lakh shares) and IFCI (73.24 lakh shares).

Market may extend recent strong gains

Market may extend recent strong gains on expectations of good Q2 earnings. Sustained buying by foreign funds helped market score gains last week as S&P CNX Nifty rose above 5,000 mark and BSE Sensex surged past the 17,000 mark. Both the indices hit their highest level in more than 16 months. The market sentiment remains firm with a string of data suggesting a recovery in the economy after last year's slowdown. Firm global stocks have supported domestic bourses and investors will continue to take cues from overseas markets. Shares of auto and cement firms will be in focus as they will unveil their monthly sales data for September 2009.

There is optimism about Q2 September 2009 results after advance tax collections registered a positive growth in the second quarter after witnessing a negative growth in the first quarter. IT bellwether Infosys will kickstart the result season by announcing its Q2 result on 10 October 2009.

The latest economic data showed that the economy is recovering from a slowdown last year. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, surged 55 in September 2009 from a five-month low of 53.2 in August 2009. A reading above 50 shows expansion while below 50 reading denotes contraction. The new orders index rose to 58.3 in September 2009, from August's 56.2, which was its lowest in four months.

The index of six core industries having a combined weight of 26.7% in the index of industrial production (IIP) registered a growth of 7.1% in August 2009 compared to a growth of 2.1% in August 2008. During April-August 2009-10, six core industries registered a growth of 4.8% as against 3.3% during the corresponding period of the previous year. Coal and cement sector boosted overall growth in the six infrastructure industries in August 2009.

The International Monetary Fund (IMF) on 1 October 2009 said China and India will lead Asia's expansion in 2010, growing at rates of 9% and 6.4%, respectively. The IMF said global economy will grow next year, but it will be a sluggish recovery that could stall if policymakers around the world announce a premature exit from accommodative monetary policy and fiscal policies.

The Fund said it now expects the world economy to contract 1.1% in 2009 before growing 3.1% in 2010. This is more upbeat than its last update in July 2009 when the Fund projected the world economy would shrink 1.4% in 2009, before expanding 2.5% in 2010.

Over the four years starting at the end of 2010, global growth is expected to average a little more than 4% a year, below the 5% growth rates before the financial crisis erupted, the IMF said.

Coming back to stocks, a section of the market is concerned that a glut in share sales may suck liquidity from the secondary market. The corporate sector has raised large sums of money through equity and equity related instruments in the past six months or so to either to retire high cost debt or to fund expansion. The supply of paper by Indian firms appear limitless, raising concerns that additional share sales will suck liquidity from the secondary market.

As per one report, companies plan to raise at least Rs 40,000 crore through initial public offers (IPOs)/follow on public offers (FPOs) in the second half of the current financial year. Power companies such as GMR Energy, Indiabulls Power and JSW Energy and state-run Bharat Heavy Electricals and NTPC are likely to tap the primary market. A number of realty firms, too, are likely to tap the primary market in the coming months.

Reliance Infratel also announced on 22 September 2009, its intention to raise Rs 5,000 crore from the primary market. A number of companies are also in the fray to raise funds by way of qualified institutional placement (QIP), reports suggest.

Divestment of state-run firms by the government may also increase the supply of paper in the market. A decent debut of Oil India on the bourses on Wednesday, 30 September 2009, may boost government's divestment plan. S. Pradhan, the joint secretary of the department of disinvestment, Government of India, on 30 September 2009 said the government plans to sell stakes in at least five state-run firms by the end of the fiscal year in March 2010 following successful IPOs of two firms that raised $1.8 billion.

His statement comes close on the heels of media reports that the government is planning to announce a blueprint for selling its stake in state-owned firms in the first week of October 2009. The policy is expected to suggest how the government will eventually bring down its stake in public sector companies to 75% over a period of time.

A section of the market is worried of hedge fund redemptions after the one year moratorium on redemption ends in October 2009. Buried under redemption pressure in the aftermath of the collapse of US investment bank Lehman Brothers, hedge funds took a moratorium period of one year in October last year.

RIL, auto stocks slide in flat market

Key benchmark indices ended little changed after witnessing wild gyrations throughout the day. The BSE 30-share Sensex rose 7.71 points or 0.05%, off 61.06 points from the day's high, and up 75.19 points from the day's low. The BSE Sensex extended gains for third straight session while S&P CNX Nifty ended marginally lower. Market breadth was weak as small and mid-cap stocks underwent correction.

IT stocks were in demand for the third straight day. However, auto stocks retreated on profit booking. A divergent trend was witnessed in index heavyweights. Reliance Industries fell over 1% whereas ICICI Bank gained over 2% and Bharti Airtel jumped nearly 4%.

Intraday volatility on the bourses was high. The market slipped into the red in early trade soon after initial gains which took the key benchmark indices to their highest level in more than 16 months. IT stocks led a strong intraday rebound in morning trade. The market cut gains later. It once again slipped into the red in mid-morning trade before regaining positive zone. The key benchmark indices oscillated between positive and negative zone later. Stock markets will remain shut on Friday, 2 October 2009 on account of Gandhi Jayanti holiday.

The market surged in early afternoon trade as European markets rose in initial trade. The market cut gains later. It slipped into the red for a brief while before bouncing back. A sudden sell-off pulled the market to a fresh intraday low in mid-afternoon trade as European stocks reversed gains. The market bounced back shortly. Volatility was immense in the last half an hour of trade

A latest economic data showed that the economy is recovering from a slowdown last year. The HSBC Markit Purchasing Managers' Index (PMI), based on a survey of 500 companies, surged 55 in September 2009 from a five-month low of 53.2 in August 2009. A reading above 50 shows expansion while below 50 reading denotes contraction. The new orders index rose to 58.3 in September 2009, from August's 56.2, which was its lowest in four months.

On the flip side, exports fell for eleventh straight month as the global slump crimped demand for Indian goods. Exports fell 19.4% to $14.29 billion in August 2009 over August 2008, the government data showed today, 1 October 2009. Imports dropped 32.4% to $22.66 billion in August 2009 over August 2008. India's trade deficit shrunk to $8.37 billion in August 2009 from $15.79 billion a year earlier.

The International Monetary Fund (IMF) today said China and India will lead Asia's expansion in 2010, growing at rates of 9% and 6.4%, respectively. The IMF said global economy will grow next year, but it will be a sluggish recovery that could stall if policymakers around the world announce a premature exit from accommodative monetary policy and fiscal policies

The Fund said it now expects the world economy to contract 1.1% in 2009 before growing 3.1% in 2010. This is more upbeat than its last update in July 2009 when the Fund projected the world economy would shrink 1.4% in 2009, before expanding 2.5% in 2010.

Over the four years starting at the end of 2010, global growth is expected to average a little more than 4% a year, below the 5% growth rates before the financial crisis erupted, the IMF said.

Closer home, inflation based on the wholesale price index rose 0.83% in the year through 22 September 2009, higher than previous week's annual gain of 0.37%, government data showed today, 1 October 2009. The government revised upward headline inflation for the year through 25 July 2009 to a fall of 0.71% from a provisional decline of 1.58% Most auto and cement firms will unveil their monthly sales data for September 2009 starting today, 1 October 2009.

The next trigger for the stock market is Q2 September 2009 results of India Inc next month. There is optimism about Q2 September 2009 results after advance tax collections registered a positive growth in the second quarter after witnessing a negative growth in the first quarter. Corporate advance tax and advance personal income-tax were up by 14.7% and 1.7%, respectively in the September 2009 quarter. Infosys kickstarts the reporting season on 9 October 2009.

But a section of the market is concerned that a glut in share sales may suck liquidity from the secondary market. The corporate sector has raised large sums of money through equity and equity related instruments in the past six months or so to either to retire high cost debt or to fund expansion. The supply of paper by Indian firms appear limitless, raising concerns that additional share sales will suck liquidity from the secondary market.

As per one report, companies plan to raise at least Rs 40,000 crore through initial public offers (IPOs)/follow on public offers (FPOs) in the second half of the current financial year. Power companies such as GMR Energy, Indiabulls Power and JSW Energy and state-run Bharat Heavy Electricals and NTPC are likely to tap the primary market. A number of realty firms, too, are likely to tap the primary market in the coming months.

Reliance Infratel also announced on 22 September 2009, its intention to raise Rs 5,000 crore from the primary market. A number of companies are also in the fray to raise funds by way of qualified institutional placement (QIP), reports suggest.

Divestment of state-run firms by the government may also increase the supply of paper in the market. A decent debut of Oil India on the bourses on Wednesday, 30 September 2009, may boost government's divestment plan. S. Pradhan, the joint secretary of the department of disinvestment, Government of India, on Wednesday said the government plans to sell stakes in at least five state-run firms by the end of the fiscal year in March 2010 following successful IPOs of two firms that raised $1.8 billion.

His statement comes close on the heels of media reports that the government is planning to announce a blueprint for selling its stake in state-owned firms in the first week of October 2009. The policy is expected to suggest how the government will eventually bring down its stake in public sector companies to 75% over a period of time.

European markets were trading lower today, 1 October 2009 after a firm start. Key benchmark indices in UK, Germany and France were down by 0.50% and 0.66%.

Germany's retail sales declined in August 2009, official data showed Thursday, highlighting the ongoing weakness of domestic demand in Europe's biggest economy.

On the flip side, the rate of deterioration in the euro-zone factory sector continued to slow in September 2009, according to the final Markit euro-zone manufacturing purchasing managers index for the month released Thursday. The index rose to a 16-month high of 49.3 in September 2009 from 48.2 in August 2009 and exceeded a preliminary estimate of a rise to 49. A reading of less than 50 indicates a majority of managers saw a decline in activity, while a figure of more than 50 signals expansion. The index has been below the neutral 50 level for 16 consecutive months.

Asian stocks fell for the first time in three days on concern the region's economic recovery may falter after a Bank of Japan survey showed companies plan to deepen investment cuts. The Nikkei 225 average was down 1.53%. In other Asian stocks, key benchmark indices in South Korea, and Singapore were down by between 0.57% and 1.70%. However, the Weighted index in Taiwan rose 0.48%.

Stock markets in Shanghai, Hong Kong and elsewhere in the greater China region were closed for National Day. The Chinese markets are shut for a week starting today for National day and Autumn festival celebrations.

Trading in US index futures indicated Dow could fall 43 point at the opening bell today, 1 October 2009.

US markets ended modestly lower on Wednesday, 30 September 2009 on the back of mixed economic data. The Dow Jones Industrial Average slipped 29.92 points, or 0.31%, to 9,712.28. The Standard & Poor's 500 Index fell 3.53 points, or 0.33%, to 1,057.08. The Nasdaq Composite index shed 1.62 points, or 0.08%, to 2,122.42.

In economic data, the Chicago purchasing-manager's index fell to 46.1 in September 2009 from 50 in August 2009 indicating a contraction. Also the jobs data report disappointed. US private employers cut 254,000 jobs from their payrolls in September 2009, more than expected but less than the revised 277,000 loss recorded in August 2009. Meanwhile, the US economy contracted at a 0.7% rate in the second quarter, less than the 1% plus decline expected.

The BSE 30-share Sensex was up 7.71 points or 0.05% to 17,134.55, its highest closing since 21 May 2009. The Sensex opened 59.36 points higher at the 17,186.20. The barometer index rose 68.77 points at the day's high of 17,195.61 in early trade, its highest level since 21 May 2008. The Sensex lost 67.48 points at the day's low of 17,059.36 in mid-afternoon trade

The S&P CNX Nifty was down 0.55 points or 0.01% to 5083.40. It hit a high of 5110.50 in early trade, its highest level since 22 May 2008.

The BSE Sensex extended its gains for the third straight day today, 1 October 2009. It has risen 441.55 points or 2.64% in three trading days from 16693 on 25 September 2009

The Sensex is up 7487.24 points or 77.60% in calendar year 2009 as on 1 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8,974.15 points or 109.97% as on 1 October 2009. FII inflow in the calendar year 2009 totaled Rs 58616.70 crore (till 29 September 2009).

Nifty October 2009 futures were at 5069, at a discount of 14.40 points as compared to the spot closing.

The total turnover on BSE amounted to Rs 6506 crore, lower than Rs 6,668.92 crore on Wednesday, 30 September 2009. Turnover in NSE's futures & options (F&O) segment was Rs 54,343.16 crore, lower than Rs 55,412.81 crore on Wednesday, 30 September 2009.

The market breadth, indicating the overall health of the market was weak. On BSE, 1,688 shares declined as compared with 1,154 that rose. A total of 81 shares remained unchanged.

The BSE Mid-Cap index fell 0.35% to 6,302.01 and the BSE Small-Cap index fell 0.04% to 7,587.18. Both the indices underperformed the Sensex.

Sectoral indices on BSE displayed mixed trend. The BSE Bankex (up 0.77%), the BSE FMCG index (up 0.65%), the BSE PSU index (up 0.26%), the BSE Teck index (up 1.45%), the BSE IT index (up 0.88%), the BSE Metal index (up 0.18%), outperformed the Sensex.

The BSE Auto index (down 0.92%), the BSE Capital Goods index (down 0.19%), the BSE Consumer Durables index (down 0.90%), the BSE Healthcare index (down 1.30%), the BSE Oil & Gas index (down 0.84%), the BSE Power index (down 0.42%), the BSE Realty index (down 0.04%), underperformed the Sensex.

Among the 30-member Sensex pack, 16 rose while the rest slipped. HDFC (down 2.77%), Tata Power (down 2.42%), and Larsen & Toubro (down 1.32%), edged lower from the Sensex pack.

India's largest cellular services provider by sales Bharti Airtel spurted 3.87% to Rs 434.75 on high volume of 68.39 lakh shares after its merger talks with South Africa's MTN Group to create the world's third-largest mobile operator were called off just a few hours before the end of the 30 September 2009 deadline for the talks. But the stock came off day's high of Rs 467. It was the top gainer from the Sensex pack

The deal was called off after South Africa's reluctance to allow a flagship corporate in the country to lose its national character.

India's second largest cellular services provider by sales Reliance Communications (RCom) gained 2.86%. As per reports on 30 September 2009, RCom has entered into partnership with software major Microsoft for offering Windows Mobile solutions on its wireless networks.

India's largest bank by net profit and branch network State Bank of India (SBI) rose 0.20% to Rs 2200, rebounding from day's low of Rs 2170.10. The bank has cut deposit rates across maturities by 25 basis points from 5 October 2009. The announcement was made at the fag end of the trading session

The (SBI) stock has been on a roll recently after Chairman O.P. Bhatt on 8 September 2009 said the bank's earnings are likely to grow 30-35% in Q2 September 2009 over Q2 September 2008.

Other bank stocks were mixed. India's largest private sector bank by net profit ICICI Bank was up 2.35% after its ADR jumped 6.11% on Wednesday, 30 September 2009. The bank sold 4.41% stake in software services provider 3i Infotech for Rs 46.17 crore on Wednesday, 30 September 2009, in open market transactions on the BSE and the NSE. Shares of 3i Infotech jumped 13.04%.

India's second largest private sector bank by net profit HDFC Bank was down 0.32% despite its ADR rising 3.06% on Wednesday, 30 September 2009.

Global ratings firm Fitch Ratings today, 1 October 2009, in a special report said that the Indian banking system is expected to remain resilient even under rigorous stress assumptions on both asset quality and profitability during financial year ended March 2010 and 2011. The impact of the agency's 'stress test' on 30 Indian banks indicated that capital is protected for a majority of the banks, while some of the weaker banks would need to raise core capital in order to better prepare for the current downturn in the credit cycle.

The Reserve Bank of India (RBI) on Wednesday, 30 September 2009 extended the tenure of the working group to review the system of loan pricing by banks to improve transmission of monetary signals on to interest rates in the economy. The RBI said it has extended the tenure of the working group on the Benchmark Prime Lending Rate (BPLR), set up in June 2009, to 16 October 2009 from end-September earlier.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.19% to Rs 2175. The stock moved in a band of Rs 2155- Rs 2205. Upstream regulator V.K. Sibal today, 1 October 2009 said that global firms considering oil and gas exploration in India may be less enthusiastic this year because of global financial problems and the public spat between the Ambani brothers.

In the face of opposition from the Power Ministry and Anil Ambani group firm Reliance Infrastructure on the marketing margins charged, RIL has justified the levy saying it was essential to cover risks and costs incurred in marketing of gas.

Terming as illegal the market margin, Reliance Infra had refused to pay the levy prompting RIL to issue a notice for suspension of fuel supply for "default". NTPC has sought to know whether the margins levied by RIL had government's approval.

RIL had said on 24 September 2009 it has signed gas supply agreement with state-run utility NTPC to supply gas for some of its power plants for five years. Reliance will supply 0.61 million standard cubic metres a day (mscmd) to NTPC, and expects to start supplies within a week.

India's largest power generation firm by sales NTPC fell 1.73%

India's largest oil exploration firm by sales Oil and Natural Gas Corporation (ONGC) rose 0.91%. The Union Cabinet today allowed ONGC's subsidiary ONGC Videsh to invest an additional $149.5 million for expansion of its oil block in Vietnam.

Shares of PSU OMCs dropped as higher crude oil prices will increase under-recoveries on domestic sale of petrol, diesel, LPG and kerosene at a controlled price. Bharat Petroleum Corporation (BPCL) (down 2.44%), Hindustan Petroleum Corporation (HPCL) (down 3.16%) and Indian Oil Corporation (IOC) (down 1.12%), edged lower.

Light, sweet crude surged by $3.90 a barrel, or 5.85% to $70.61 a barrel on the New York Mercantile Exchange on Wednesday, 30 September 2009, after the US Energy Department posted an unexpected drawdown in gasoline stockpiles.

Aban Offshore gained 3.32% after the company's step down unit drillship Aban Abraham commenced drilling operations. The company made this announcement during trading hours today, 1 October 2009.

Gulf Oil Corporation jumped 5% after a wholly-owned subsidary, IDL Speciality Chemicals, entered into an agreement with Biocon to sell its bulk pharmaceutical business

IT stocks reversed early losses on expectations of good September 2009 results. Gains in American depository receipt (ADR's) on Wednesday, 30 September 2009 also aided the recovery.

India's largest IT exporter by sales Tata Consultancy Services jumped 2.20% to Rs 633, after sliding to day's low of Rs 615.05. The company before market hours on 30 September 2009 said that it has signed a two year multi million dollar deal with Singapore-based People's Association for application management services.

India's third largest software services exporter by sales Wipro rose 0.47% to Rs 604.55 after declining to day's low of Rs 591.20. Its American depository receipt (ADR) rose 2.87% on Wednesday, 30 September 2009. India's second largest software services exporter by sales Infosys rose 0.80% to Rs 2326.90, recovering from day's low of Rs 2290. Its ADR rose 0.71% on Wednesday, 30 September 2009.

India's largest power equipment maker by sales Bharat Heavy Electricals gained 0.38%. The company recently won a Rs 270 crore contract in Belarus to build a 120 megawatts power plant.

Auto stocks declined on profit booking after a recent strong rally. India's top small car maker by sales Maruti Suzuki India lost 3.47% to Rs 1640 on profit booking after striking a record high of Rs 1740 in intraday trade on Wednesday, 30 September 2009.

The company's total sales rose 17.3% to 83,306 vehicles in September 2009 over September 2008. The figures were released at the onset of the day's trading session today, 1 October 2009.

India's largest motorbike maker by sales Hero Honda Motors fell 2.08%. India's largest truck maker by sales Tata Motors dropped 2.43%

India's largest tractor maker by sales Mahindra & Mahindra rose 0.71% to Rs 887.50. The stock recovered from day's low of Rs 867.05 after the company said its total vehicle sales increased 11% to 28,134 units in September 2009 over September 2008. The September 2009 vehicle sales data was disclosed during trading hours today, 1 October 2009.

Metal stocks were mixed after a gauge of six metals traded on the London Metal Exchange, LMEX, surged 3.07% on Wednesday, 30 September 2009. Sterlite Industries (up 0.06%), Sesa Goa (up 0.68%), Jindsl Stainless (up 17.72%), JSW Steel (up 2.82%), gained.

Tata Steel (down 0.03%), National Aluminium Company (down 0.59%), Hindalco Industries (down 2.44%), declined.

Realty shares declined on profit booking. DLF (down 0.30%), Indiabulls Real Estate (down 0.50%), Sobha Developers (down 0.78%), Unitech (down 1.95%), and Ansal Infrastructures (up 1.08%), slipped.

Realty companies including Emaar MGF Land, Lodha Developers and Sahara Prime City have filed their draft red herring prospectuses on 29 September 2009 with the market regulator, Securities and Exchange board of India (Sebi), to raise a total of around Rs 9,800 crore through initial public offerings (IPO).

Cement stocks gained ahead of the monthly sales data for September 2009. ACC (up 0.57%), UltraTech Cement (up 6.38%), Madras Cement (up 2.69%), JK Lakshmi Cements (up 2.99%), rose.

Ambuja Cements surged 3.26% to Rs 102.90 after a block deal of 74.16 lakh shares was executed on BSE at Rs 100 per share. The company's shipments fell 0.7% to 1.36 million tonnes and production rose 0.72% to 1.38 million in September 2009 over September 2008. The data hit the market during trading hours today, 1 October 2009.

Pharma shares dipped on profit taking after recent strong gains. Dr Reddy's Laboratories (down 3.65%), Cipla (down 3.29%), Divi's Labs (down 3.24%), Nicholas Piramal (down 1.87%), declined from the pharma pack.

Biocon rose 1.24% after the company signed a pact with Hyderabad based IDL Specialty Chemicals for acquiring its bulk pharmaceutical business. No other details were provided by the company. The company made this announcement after trading hours on Wednesday, 30 September 2009.

Glenmark Pharmaceuticals was down 0.88%. The company's subsidiary, Glenmark Generics, has reportedly filed for an initial public offering to raise Rs 550-600 crore.

Shree Ashtavinayak Cine Vision spurted 9.97%, after the company said it will raise $150 million, or Rs 721 crore, through various routes from both the domestic and international markets. The announcement was made before trading hours on Tuesday, 29 September 2009. The stock ended almost unchanged at Rs 68.10 on the BSE that day

Cals Refineries clocked highest volume of 12.16 crore shares on BSE. Ispat Industries (3.42 crore shares), 3i Infotech (1.56 crore shares), NIIT (1.06 crore shares) and Indiabulls Securities (99.75 lakh shares) were other volume toppers in that order.

Bharti Airtel was the top traded counter on BSE with turnover of Rs 303.78 crore followed by Educomp Solutions (Rs 251.19 crore), Oil India (Rs 184.78 crore), Aban Offshore (Rs 172.91 crore) and DLF (Rs 163.18 crore).