Dead Presidents! - India Equity Research: Oct 12, 2009

Monday, October 12, 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
12/10/2009 533029 ALKALI MBL & Co. LTD. B 61446 208.22
12/10/2009 533029 ALKALI MBL & Co. LTD. S 61446 208.66
12/10/2009 524760 ARVIND INTER SUNITA GOYAL S 34000 11.35
12/10/2009 533016 AUSTRAL COKE ANOOP JAIN B 1500000 16.71
12/10/2009 533016 AUSTRAL COKE SWIFT TIE UP PVT LTD B 1500000 16.44
12/10/2009 533016 AUSTRAL COKE MANGALAM INVESTMENT B 1508467 16.45
12/10/2009 533016 AUSTRAL COKE AMRIT AND COMPANY B 1520034 16.36
12/10/2009 533016 AUSTRAL COKE MANGALAM INVESTMENT S 1508467 16.51
12/10/2009 533016 AUSTRAL COKE AMRIT AND COMPANY S 1520034 16.72
12/10/2009 531591 BAMPSL SECUR ANJU GUPTA B 400000 0.59
12/10/2009 531337 CHAN GUIDE I AMI SECURITIES B 65000 87.36
12/10/2009 532363 COMP-U-LEARN HITESH SHASHIKANT JHAVERI B 111451 25.45
12/10/2009 532363 COMP-U-LEARN HITESH SHASHIKANT JHAVERI S 88042 25.44
12/10/2009 517973 DMC INTER ABHINAY KAPOOR B 125010 19.60
12/10/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD S 50000 19.60
12/10/2009 517477 ELNET TECHNO SAINATH HERBAL CARE MARKETING P.LTD B 26866 60.70
12/10/2009 532666 FCS SOFTWARE TRANSGLOBAL SECURITIES LTD. B 214372 123.92
12/10/2009 532666 FCS SOFTWARE PRAKASHBHAI NARSINHBHAI PATEL B 78262 125.15
12/10/2009 532666 FCS SOFTWARE OPG SECURITIES P LTD B 133095 125.50
12/10/2009 532666 FCS SOFTWARE TRANSGLOBAL SECURITIES LTD. S 214739 123.93
12/10/2009 532666 FCS SOFTWARE PRAKASHBHAI NARSINHBHAI PATEL S 91862 125.40
12/10/2009 532666 FCS SOFTWARE OPG SECURITIES P LTD S 133095 125.49
12/10/2009 531439 GOLDSTON TEC PREM MOHANLAL PARIKH S 200818 27.69
12/10/2009 532847 HILTON MET YUVRAJ HIRALAL MALHOTRA S 78862 18.05
12/10/2009 523467 JAI MATA GLA Naman Securities & Finance Pvt. Ltd. B 80475 3.66
12/10/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD B 1605841 3.75
12/10/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 655000 3.59
12/10/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD S 1279412 3.80
12/10/2009 511688 MATHEW EASOW MUKESH AGARWAL S 15929 17.87
12/10/2009 521030 NAKODA TEXT UMA C RANI B 85000 71.79
12/10/2009 511702 PARSHART INV KRUNAL GOPALDAS RANA B 15600 28.65
12/10/2009 511702 PARSHART INV SUSMITABEN PRADIPBHAI PATEL S 42713 28.75
12/10/2009 511652 RAM KAASHYAP SHOBHA IMTIYAZ DESAI B 100000 15.55
12/10/2009 511652 RAM KAASHYAP VANRAJSINH DADABHAI KAHOR B 58500 15.64
12/10/2009 511652 RAM KAASHYAP BAKULRAM NIKLAL PAREKH B 50000 15.55
12/10/2009 511652 RAM KAASHYAP SETU SECURITIES PVT LTD S 44600 15.55
12/10/2009 511652 RAM KAASHYAP KOKILABEN N JADAV S 155900 15.55
12/10/2009 526841 SHAKTI PRESS HEMANG SURENDRA KUMAR SHAH B 20000 10.63
12/10/2009 526841 SHAKTI PRESS ANURAGBHAI DINESHCHANDRA AGARWAL B 20000 10.01
12/10/2009 526841 SHAKTI PRESS HEMANG SURENDRA KUMAR SHAH S 20000 10.01
12/10/2009 526133 SUPERTEX IND AMRIT LAXMICHAND GANDHI B 719575 4.59
12/10/2009 526133 SUPERTEX IND SUPER INFINCON PVT LTD S 650000 4.58
12/10/2009 532093 VENKAT PHARM JYOTI PORTFOLIO LIMITED B 26796 7.08
12/10/2009 532093 VENKAT PHARM JYOTI PORTFOLIO LIMITED S 27208 7.07
12/10/2009 531249 WELL PACK PA NAVNATH SAKHARAM GHONE B 27000 270.38
12/10/2009 531249 WELL PACK PA SANTOSH VISHRAM GHADSHI S 22550 271.51
12/10/2009 511246 WHITE LION A HIMAT .P. JATANIA B 27000 2.91
12/10/2009 511246 WHITE LION A RAMESH G GOKANI B 27000 2.93
12/10/2009 511246 WHITE LION A HIMAT .P. JATANIA S 27000 2.93
12/10/2009 511246 WHITE LION A RAMESH G GOKANI S 27000 2.91

NSE Bulk Deals to Watch - Oct 12 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
12-OCT-2009,ALKALI,Alkali Metals Limited,MBL & COMPANY LTD.,BUY,121636,208.06,-
12-OCT-2009,ALKALI,Alkali Metals Limited,OM INVESTMENTS,BUY,77736,212.62,-
12-OCT-2009,AUSTRAL,Austral Coke & Projects L,GRD SECURITIES LIMITED,BUY,1552700,16.68,-
12-OCT-2009,AUSTRAL,Austral Coke & Projects L,SANDEEP MITTAL,BUY,3200000,16.20,-
12-OCT-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,MANISH VRAJLAL SARVAIYA,BUY,226425,419.06,-
12-OCT-2009,FCSSOFT,FCS Software Solutions Li,NARENDRABHAI AMTRATLAL AMIN,BUY,79569,124.22,-
12-OCT-2009,FCSSOFT,FCS Software Solutions Li,NIKON FINLEASE PVT. LTD,BUY,73114,124.80,-
12-OCT-2009,FCSSOFT,FCS Software Solutions Li,OM INVESTMENTS,BUY,81318,125.85,-
12-OCT-2009,FCSSOFT,FCS Software Solutions Li,PATEL PRAKASHBHAI NARSINHBHAI,BUY,123689,125.54,-
12-OCT-2009,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,BUY,217399,124.02,-
12-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,12173633,23.28,-
12-OCT-2009,NILKAMAL,Nilkamal Limited,BP FINTRADE PRIVATE LIMITED,BUY,71322,152.29,-
12-OCT-2009,WELGUJ,Welspun Gujarat Stahl Roh,PACIFIC CORPORATE SERVICES LTD,BUY,1219606,276.00,-
12-OCT-2009,ALKALI,Alkali Metals Limited,MBL & COMPANY LTD.,SELL,121636,207.99,-
12-OCT-2009,ALKALI,Alkali Metals Limited,OM INVESTMENTS,SELL,77736,212.78,-
12-OCT-2009,AUSTRAL,Austral Coke & Projects L,GRD SECURITIES LIMITED,SELL,347226,16.21,-
12-OCT-2009,AUSTRAL,Austral Coke & Projects L,SANDEEP MITTAL,SELL,3200000,16.36,-
12-OCT-2009,BOMDYEING,Bombay Dyeing & Mfg Co.,MANISH VRAJLAL SARVAIYA,SELL,219283,418.96,-
12-OCT-2009,FCSSOFT,FCS Software Solutions Li,NARENDRABHAI AMTRATLAL AMIN,SELL,79569,124.62,-
12-OCT-2009,FCSSOFT,FCS Software Solutions Li,NIKON FINLEASE PVT. LTD,SELL,73114,124.88,-
12-OCT-2009,FCSSOFT,FCS Software Solutions Li,OM INVESTMENTS,SELL,81318,125.88,-
12-OCT-2009,FCSSOFT,FCS Software Solutions Li,PATEL PRAKASHBHAI NARSINHBHAI,SELL,116386,125.96,-
12-OCT-2009,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,SELL,217399,124.13,-
12-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11719552,23.27,-
12-OCT-2009,NILKAMAL,Nilkamal Limited,BP FINTRADE PRIVATE LIMITED,SELL,36796,151.53,-
12-OCT-2009,NILKAMAL,Nilkamal Limited,PODDAR HERITAGE INVESTMENTS LIMITED,SELL,85000,153.15,-
12-OCT-2009,OUDHSUG,The Oudh Sugar Mills Ltd,NEW INDIA RETAILING & INVESTMENT LIMITED,SELL,200000,68.17,-

Post Session Commentary - Oct 12 2009

Indian market surged during the session to close sharply higher due to better than expected IIP data. . India''s industrial output for August rose 10.4% as against 1.7% year-on-year. Also the rally in the European markets along higher US index futures contributed to the upward movement of benchmark indices. Further, stocks raised also on Anil Ambani''s decision to sort out all disagreements with Mukesh cordially. On the other hand, strong response to the Indiabulls Power IPO fully subscribed within half an hour of opening of the issue today, 12th October 2009, also boosted the sentiments of the investors. BSE Sensex ended above 17,000 level and NSE Nifty closed around 5,050 level.

The market opened today on pleasant note along tracking firm cues from the global markets. Asian stocks were mixed and US stock market ended higher on Friday on late buying. Stocks recovered their losses after a fall in initial trade. The Dow Jones hit a fresh 2009 high, as investors expected positive news from key earnings reports. Further, benchmark indices continued their northward journey on huge buying over the counters. In addition, better than expected IIP data and positive opening of European markets helped the stocks to touch day’s high level during last trading hours. Markets extended their gains to more than 2% towards the final trading to close with strong gains. From the sectoral front, investros’ on-loaded position across the sectors. Besides, Consumer Durable, IT, Bank, Oil & Gas, Teck, FMCG, Metal and Realty stocks contributed to most of the buying. Broader market indices were also in the green, with the BSE Midcap index and the BSE Smallcap index gained more than 1% each.

Among the Sensex pack 27 stocks ended in green territory and 3 in red territory. The market breadth indicating the overall health of the market remained positive as 1627 stocks closed in green while 1108 stocks closed in red and 94 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 384.01 points or (2.31%) at 17,026.67 and NSE Nifty ended up by 109.05 points or (2.21%) at 5,054.25. BSE Mid Caps and Small Caps closed with gains 77.08 and 77.55 points at 6,378.46 and 7,449.34 respectively. The BSE Sensex touched intraday high of 17,068.78 and intraday low of 16,678.32.

Gainers from the BSE Sensex pack are SBI (5.16%), Reliance Infra (5%), Wipro Ltd (3.79%), ITC Ltd (3.74%), TCS Ltd (3.36%), Reliance (3.19%), M&M Ltd (2.83%), Infosys Tech (2.82%), Maruti Suzuki (2.8%), Sun Pharma (2.51%), Tata Steel (2.51%), HDFC (2.41%), Bharti Airtel (2.23%), DLF Ltd (2.13%) and ICICI Bank (2.07%).

Losers from the BSE Sensex pack are Herohonda Motors (0.90%), RCom (0.62%) and BHEL (0.21%).

India''s industrial output for August rose 10.4% as against 1.7% year-on-year. As low base effect from last year helped the growth, the strong impetus that Indian industry has been exhibiting since May also lifted the numbers. All constituents supported the growth in index with mining increasing 12% as against 2.8%. In addition, basic goods index is up 10% as against 3.9% and manufacturing is at 10.2% as against 1.7%. Consumer goods recorded a strong expansion of 22.3% while non-durable expanded by 3.7%. Meanwhile, July''s annual industrial growth rate was revised up to 7.2% from 6.8% previously.

On the global markets front, the Asian markets that opened before the Indian market, ended mixed amid concern ahead of earnings announcements from large U.S. companies that may make clear the state of the world''s largest economy. Nikkei 225 and Singapore''s Straits ended higher by 183.92 and 27.96 points at 10,016.39 and 2,680.47 respectively. However, Shanghai Composite, Hang Seng and Seoul Composite lost 17.23, 200.09 and 6.98 points to 2,894.48, 21,299.35 and 1,639.81 respectively.

European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is higher 46.75 points at 3,846.36, in Frankfurt DAX index is trading up 76.12 points at 5,788 and in London FTSE 100 is trading higher by 66.95 points at 5,221.59.

The BSE Consumer Durable index ended up by (3.72%) or 136.57 points at 3,807.44, as Rajesh Export (9.70%), Blue Star L (6.58%), Gitanjali GE (3.39%) and Titan Ind (3.09%) ended in green.

The BSE IT index closed higher by (2.94%) or 025.59 points at 4,402.40 on a weakening rupee against dollar. Gainers are Patni Computer (5.46%), Wipro Ltd (3.79%), TCS Ltd (3.36%), Rolta Ind (3.21%) and Mphasis Ltd (2.98%).

The BSE Bank index gained (2.63%) or 256.74 points 10,028.45. Gainers are SBI (5.16%), Kotak Bank (4.18%), Punjab National Bank (3.79%), Bank of India (3.76%) and Canara Bank (3.41%).

The BSE Teck index advanced by (245 %) or 72.38 points at 3,025.15. Gainers are Deccan Chr (7.36%), Patni Computer (5.46%), Wipro Ltd (3.79%), TCS Ltd (3.36%) and Tata Comm (3.36%).

The BSE Oil & Gas index increased by (2.35%) or 241.01 points at 10,505.49. Gainers are RNRL (5.30%), Reliance (3.19%), ONGC Ltd (2.02%), Aban Offshore (1.81%) and Cairn Ind (0.44%).

The BSE FMCG index ended up by (2.25%) or 62.01 points at 2,813.99. Main gainers are Dabur Ind (5.45%), ITC Ltd (3.74%), Marico Ltd (1.90%), Godrej Cons (1.33%) and Colgate Palm (1.16%).

Reliance Industries Ltd gained 3.19%. Anil Ambani decided to sort out all disagreements with Mukesh cordially. He reached out to alienated elder brother and said in a statement that he has "maintained the greatest of love, affection and respect for Mukesh ... over past four years have left no stone unturned to find a solution.

Nucleus Software Exports ended up by 108.70%. The company announced that their flagship product FinnOne, World''s Number 1 Selling Lending Software Product, has been successfully supporting and delivering operational excellence and strengthening rapid business growth at country''s leading bank HDFC Bank, India.

South Indian Bank advanced by 3.60%. The bank is looking at setting up more branches and s now spreading its wings across the country

Grasim rose 0.79%. The company said on Saturday, 3 October 2009 that it will transfer its cement business to its unlisted unit Samruddhi Cement. The demerger will be completed by March 2010 after which Samruddhi Cement will be listed. Samruddhi will then make an offer to UltraTech Cement for consolidation of the group''s cement business. For every share, shareholders of Grasim will get one share of Samruddhi.

Kajaria Ceramics rose 2.47% after net profit surged 50.95% to Rs 8.77 crore in Q2 September 2009 over Q2 September 2008.

EID Parry India rose 1.44% after the company acquired 76% in Karnataka-based unlisted Sadashiva Sugars with a capacity of 2,500 tonnes crushed per day.

Market upbeat on IIP numbers

It was a pre-Diwali celebration for the Indian stock market as it registered massive gains despite the mixed bag performance by the Asian indices in today's trade. However the impact of better-than-expected index of industrial production (IIP) numbers for August 2009 doubled with the positive opening of the European indices. On Friday, the US market had closed on a positive note, while European markets (FTSE) today opened higher and was trading stronger at 5218 that is about 63 points over its previous closing. However, Asian indices like Taiwan weighted and Straits Times ended the day with strong gains of 0.37% and 1.05%, while Hang Seng and Jakarta Composite closed lower by 0.93% and 0.72% respectively on their previous closing.

The benchmark BSE- 30 (the Sensex) that ended on a negative note last week despite positive global cues, today opened at 16687, 44.66 points higher over its previous closing owing to cues from Asian indices. However, on the back of double digit IIP growth for August 2009 that stood at 10.4% as compared to the revised 7.2% growth for the month of July 2009, the market witnessed heavy buying in the consumer durables (CD), information technology (IT) and banking space that pushed the Sensex to hit the day’s high of 17068 during the course of the day. The industrial output growth in August 2009 surged to 10.4% due to the base effect and the revival in the economy. The Sensex ended the day at 17026 with massive gains of 384 points, while Nifty rose by 109 points to close above 5000-mark and ended the day at 5054. The Singapore Nifty closed 124 points higher to its previous day’s closing settlement price. The market breadth was positive as out of the 2,829 stocks traded on the BSE 1,627 stocks advanced, whereas 1,108 stocks declined. Ninety four stocks ended unchanged.

All the sectoral indices on the BSE ended in the positive zone. BSE CD rose the most with gains of 3.72%, while BSE IT, BSE Bankex, BSE TECk, BSE Oil & Gas, BSE FMCG and BSE Metal surged by over 2% each. BSE Realty, BSE Auto, BSE Power, BSE HC and BSE CG traded higher by more than 1% each. It was only BSE PSU that registered a rise of less than 1%. On the stocks front, Mahindra & Mahindra Financial Services led the list of top gainers surging by 12.73% to Rs248.45 followed by Lanco Infrastructure that rose 9.30% to Rs520.70 and India Infoline that jumped by 6.23% to Rs150.90. Indian Hotels Company, Crompton Greaves, Dabur India, Lupin, Reliance Natural Resources, State Bank of India, Indian Bank and Reliance Infrastructure gained over 5% each. Among losers, EIH fell the most by 6.55% to Rs128.45 followed by Exide Industries that declined by 4.08% to Rs96.35, while Castrol India, Ultratech Cement and Indiabulls Real Estate lost over 2% each.

On turnover front, Over 1.16 crore shares of Reliance Natural Resources changed hands on the BSE followed by Ispat Industries (1.03 crore shares), Unitech (0.75 crore shares), Reliance Communications (0.48 crore shares) and Suzlon Energy (0.38 crore shares).

Grey Market Premium - Indiabulls Power, Thinksoft Global

Company Name	Offer Price (Rs.)	Premium (Rs.)
Thinksoft Global	125	4 to 5
Euro Multi Vision	75	3 to 3.50
Indiabulls Power	40 to 45	1 to 1.50

Asian markets marks Monday mixed

Sydney, Shanghai, Seoul sinks lower while Sensex, Taiex, NZX 50 travels higher

Stock markets in Asian region closed mixed on Monday, 12 October 2009, as South Korean oil refiners on concern they'll report weaker-than- estimated profits, while shares climbed in Singapore after the country raised its 2009 economic forecast. Investors remained cautious before a string of US earnings reports this week.

On Wall Street, more promising signs for earnings season emerged Friday, topping off a week that took the major averages more than 4% higher for the week. The Dow Jones Industrial Average rose 78.07 points, or 0.8%, to close at a new 52-week high, 9864.94, while the S&P 500 edged up 6.01 points, or 0.6%, to 1071.49. The Nasdaq Composite advanced 15.35 points, or 0.7%, to 2139.28.

Stocks initially opened lower as the dollar firmed after comments by Federal Reserve Chairman Ben Bernanke. The Fed chief, who said accommodative policies will likely be warranted for an extended period, added that at some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road.

On the economic front, the government said that the deficit narrowed unexpectedly to $30.7 billion in August, down from $31.9 billion the month prior and vs. expectations for an increase to $33 billion.

In the commodity market, crude oil rose for a third day on speculation fuel demand will increase amid signs the global economy is emerging from recession.

Crude oil for November delivery climbed as much as 79 cents, or 1.1%, to $72.56 a barrel in electronic trading on the New York Mercantile Exchange. It was at $72.28 at 12:30 p.m. Singapore time.

Brent crude oil for November settlement rose as much as 56 cents, or 0.8%, to $70.56 a barrel on the London-based ICE Futures Europe exchange. It was at $70.43 a barrel at 11:58 a.m. in Singapore.

Gold, little changed in Asia, may decline as the dollar advanced against global currencies and some investors sold after the metal’s jump to a record last week. Gold for immediate delivery traded at $1,048.30 an ounce at 9:42 a.m. in Singapore, 0.1% lower than the close on 9 October 2009.

In the currency market, the US dollar rose against the yen in Asia Monday, building on gains posted Friday after U.S. Federal Reserve Chairman Ben Bernanke said the Fed is ready to tighten monetary policy once a recovery takes hold in the world's largest economy.

The Japanese yen weakened against major currencies. The Japanese yen was quoted at 90.18 against the greenback compared with 89.83 late Friday in New York.

The Hong Kong dollar was trading at HK$ 7.7501 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar pulled further from 14-month highs against the US dollar on Monday as investors cut long positions, although expectations that rates at home are headed up helped it hit two-month peaks on the yen. The US dollar extended its bounce in light Asian trade, boosted by Federal Reserve Chairman Ben Bernanke’s comments that monetary policy might have to be tightened as recovery took hold. His comments led to a sell-off in Treasuries with benchmark US government bond yields rising to two-week highs on Friday.

By the local close, the Aussie dollar was at 90.26 US cents, off a 14-month high of 90.92 US cents struck on October 8.

In Wellington trade, the New Zealand dollar continued to weaken today, including against the Australian currency. By local close, the NZ dollar was down to US72.65c from US73.42c at 8am and US73.94c at 5pm on Friday.

The South Korean won finished at 1,170 won to the greenback, down 5.5 percent from Friday's close, after the government told lawmakers that it would take measures to stem the won’s excessive ascent against the dollar.

The Taiwan dollar weakened against the greenback. The Taiwan dollar closed lower against the US dollar at NT$ 32.2900, 0.0500 down from Friday’s close of NT$32.2400.

In the Asian equity market, most major stock markets ended lower, with Hong Kong and Australian shares declining in thin trade as jittery investors locked in profits ahead of a string of key U.S. corporate results

In Japan, stock markets were closed for a holiday.

In Mainland China, share market finished the session lower erasing morning gains inspired from market friendly government steps by major heavyweight materials and energy companies. Refiners and other energy related stocks weighed the most, with Sinopec led the decliners as huge supplies of new shares, including listed stocks coming out after the expiry of lock-up periods.

The Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, fell 17.23 points, or 0.59%, to 2,894.48, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, added 0.38%, to 3,151.63.

On the economic front, China has raised the limit on purchases of local shares by foreign investors by 25% to $1 billion, the government said. The quota for share purchases by so-called qualified foreign institutional investors used to be $800 million, the State Administration of Foreign Exchange said in a statement over the weekend.

In Hong Kong, the stock market ended the session lower with most of sector nosedive in afternoon session after oscillating in and out of boundary in the morning. Resource-related shares dragged the most as investors’ banked profit following strong performance last week. Heavy selling pressure in Sinopec weighed down Energy sector. The Hang Seng Index slid 200.09 points, or 0.93%, to 21,299.35, while the Hang Seng China Enterprise shed 120.13 points, or 0.96%, to 12,375.93.

In Australia, the share market finished the trading session in southward direction despite opening in positive terrain as investors elected to banked profit amid cautious about chasing the market higher after a strong previous week. Most of the stocks ended in diverse terrain. At the closing bell, the benchmark S&P/ASX200 index slid 13.1 points, or 0.28%, to 4,739.8, meanwhile the broader All Ordinaries has shed 9 points, or 0.19%, to 4,745.5.

On the economic front, the Australian Bureau of Statistics said in a statement that housing finance for owner occupation dropped a seasonally adjusted 1.7% month-on-month in August. Owner occupied housing commitments decreased to A$16.54 billion from A$16.83 billion in the preceding month. At the same time, personal finance rose 4.1% to A$7.18 billion, and commercial finance increased 5.6% to A$28.51 billion. However, lease finance fell 9.4% to A$398 million, all in seasonally adjusted terms.

In New Zealand, benchmark index commence the first trading day of the week in the positive region after edging down Friday. The New Zealand share market started the week strong, with leading stocks recovering some ground lost. Technology stocks in the region were higher, tracking gains for U.S. tech heavyweights. As per the provisional figures at the closing bell, the NZX50 advanced 0.49% or 15.63 points to 3178.88. The NZX 15 was up 0.37% or 21.36 points to close at 5761.12.

On the economic front, New Zealand's house prices fell at a slower yearly rate of 1.1% in September compared to the 2.8% decline in the previous month. The government agency reported that prices were up 2.7% since April, and the national average sale price also increased to NZ$387,567 in September from NZ$385,426 in August.

In South Korea, stocks closed lower Monday as foreign and institutional investors booked profits following last week's rallies. The benchmark Korea Composite Stock Price Index (KOSPI) dropped 6.98 points to 1,639.81, ending two days of gains.

In Singapore, stock market extended winning streak for sixth consecutive trading day, buoyed by positive lead from international markets over the weekend. Shares of banks and properties outperformed as better than expected GDP data strengthening optimism about the global economic outlook, meanwhile gains from major manufacturing and other blue chip stocks also supported the rally. The blue chip Straits Times Index was ended at 2,680.47, gained 27.96 points or 1.05%.

On the economic front, the government of Singapore sharply upgraded its economic outlook for 2009 Monday, as the city-states gross domestic product continued to expand at a rapid clip in the third quarter amid an improvement in manufacturing activity. It now expects the economy to contract by just 2.5% to 2% from the previous year - a sharp improvement over its previous forecast of a decline of 6% to 4% - but remained cautious about a full-scale recovery.

In Taiwan, stock market finished higher for second straight sessions, collecting about 100 points in last two sessions, ending just below the 7,600-point plateau. Construction and cement sector drove the index higher while financials fail to carry the charm. The benchmark Taiex share index stretched its winning streak over the weekend by ending the first day of the week higher by 27.92 points or 0.37% in a day, closing the day at 7599.88.

On the economic front, Taiwan’s exports to China and Hong Kong edged up 0.3% from a year earlier to US$8.22 billion in September, marking the first positive growth of its kind in 12 months.

According to the statistics released by the Ministry of Finance (MOF), Taiwan’s total exports amounted to US$19.07 billion in September, up US$60 million from a month earlier but down 12.7% from a year earlier. China and Hong Kong together absorbed 43.1% of Taiwan’s total exports, the highest between Taiwan’s export outlets.

In Philippines, equities closed lower as selling pressure emerged after the market consolidated in a range in last week. The markets failed to edge up despite the global cues providing with not to bearish leads. At the final bell, the benchmark index PSEi lost 0.40% or 11.81 points to 2,930.97, while the All Shares index fell 0.24% or 4.49 points to 1,846.27.

In India, the key benchmark indices surged after the latest data showed a surge in industrial output in August 2009. A strong response to initial public offer of India bulls Power, which was fully bid within half an hour of opening of the issue also lifted sentiment. The BSE 30-share Sensex was up 384.01 points or 2.31% to 17,026.67. The S&P CNX Nifty was up 109.05 points or 2.21% to 5,054.25.

On the economic front, the industrial production (IIP) rose a robust 10.4% in August 2009. It is the fastest pace of growth in 22 months. Manufacturing output rose 10.2%. The government revised upwards-industrial production growth for July 2009 to 7.2% from an earlier estimated 6.8%.

Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.04% or 0.49 points to 1233.33 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2456.69.

In other regional market, European shares rose on Monday, as a surprise profit from Dutch conglomerate Philips Electronics helped boost sentiment at the start of the week. The German DAX index rose 1.4% or 81.47 points to 5,793, the U.K. FTSE 100 index rose 1.1% or 56.43 points to 5,218 and the French CAC-40 index climbed 1.2% or 46.33 points to 3,846.

Indiabulls Power IPO subscribed 6 times on day one

Gets bids for 165.67 crore shares as against 27.86 crore shares on offer

Indiabulls Power saw upbeat investors response for its initial public offering (IPO) on day one. The IPO garnered bids for 165.67 crore shares as against 27.86 crore shares on offer.

Indiabulls Power will issue a total of 39.07 crore shares in a price band of Rs 40-45 per share in the IPO which remains opens between 12 and 15 October 2009. The company aims to raise about Rs 1,750 crore at the top end of the price band.

On 9 October 2009, Indiabulls Power sold the maximum allowed 30% of the tranche reserved for qualified institutional buyers (QIBs), or 18% of the total IPO, to the eight anchor investors at a price of Rs 45 a piece.

According to a statement, approximately 2.1 crore shares, or 34% of the shares available to anchor investors went to Copthall Mauritius Investment, while BNP Paribas and the Nomura India Investment FundMother Fund (together with a trust company) bought 1.05 crore and 1.08 crore shares respectively. The other anchor investors were Indea Capital, the Norwegian government petroleum fund, Credit Suisse Singapore and Macquarie Bank.

Indiabulls Real Estate currently holds 71.4% in the Indiabulls Power. UK-based billionaire L.N. Mittal's LNM India Internet Ventures holds a 10.7% stake, while private equity firm FIM holds the remaining 17.9%.

Indiabulls Power, a subsidiary of Indiabulls Real Estate, has been established with the objective to develop, construct and operate power projects. The company is currently executing five coal based power projects totalling 6,615 megawatt (MW) generation capacities. The company proposes to set up power plants in Maharashtra (Amravati and Nashik) and Chhattisgarh (Bhaiyathan). The management has indicated that the first power plant would be commissioned at Nashik in 2011-12.

The proceeds of the proposed IPO will part finance the construction and development of the 1,320 MW Amravati Power Project Phase I, fund equity contribution in the company's wholly owned subsidiary to part finance the construction and development of 1,335 MW Nashik Power Project, apart from general corporate purposes.

Credit rating agency CRISIL has assigned IPO Grade "3/5" to the proposed initial public offer of Indiabulls Power, which indicates that the fundamentals of the issue are average relative to other listed equity securities.

Market vaults on robust industrial production data

The key benchmark indices surged led by index heavyweight Reliance Industries (RIL) on optimism for a patch-up between warring Ambani brothers and on better-than-expected industrial output data for August 2009. Firm European markets and higher US index futures aided rally. RIL rose nearly 3% on Anil Ambani's sought to resolve a dispute with his older brother brother Mukesh. The stock market remains closed on Tuesday, 13 October 2009, on account of assembly election in Maharashtra.

The BSE 30-share Sensex jumped 384.01 points or 2.31%. The Sensex closed above the psychological 17,000 mark and the 50-unit S&P CNX Nifty closed above the psychological 5,000 mark. The Sensex had last closed above 17,000 on 1 October 2009 while Nifty closed above 5,000 on 8 October 2009.

The market sentiment was upbeat after the latest data showed a surge in industrial output in August 2009. A strong response to initial public offer of Indiabulls Power which was fully bid within half an hour of opening of the issue today, 12 October 2009, also lifted sentiment.

Prime Minister's Manmohan Singh statement on Sunday, 11 October 2009, that the economic stimulus will continue, aided the rally. Oil exploration stocks rose. IT stocks gained on a weak rupee. Metal, realty, banking stocks and print media stocks also gained. The market breadth was strong.

Intraday volatility was high. The market surged in early trade after Anil Ambani on Sunday, 11 October 2009, called for a renewed effort to end a bitter feud related to the split of the family business empire that spans energy, telecommunications and financial services. The market soon pared gains. It bounced back again later with the Sensex hitting a fresh intraday high in morning trade. Amid a bout of volatility the market hit a fresh intraday high in early afternoon trade.

The market pared gains in afternoon trade. A solid rally took the Sensex to a fresh intraday high in mid-afternoon trade. The market pared gains after hitting fresh intraday high in late trade.

Industrial production (IIP) rose a robust 10.4% in August 2009, government data showed at 12:00 IST today. It is the fastest pace of growth in 22 months. Manufacturing output rose 10.2%. The government revised upwards industrial production growth for July 2009 to 7.2% from an earlier estimated 6.8%.

Planning Commission deputy chairman Montek Singh Ahluwalia said industrial growth is set to improve in the second half of the 2009/10 fiscal year. Finance Secretary Ashok Chawla said he expects trend in industrial production to continue and expects better numbers in September 2009. Abhijit Sen, a member of the government's Planning Commission said industrial output will not slow down in coming months. He, however, said farm output is expected to be lower by 2.5% in 2009/10 from the previous year.

Meanwhile, the IPO of Indiabulls Power was subscribed 5.95 times on the first day of the issue, data on NSE showed. Indiabulls Power, a unit of Mumbai-based developer Indiabulls Real Estate, is developing five thermal power plants in western and central India, with total capacity of 6,600 megawatts, and will use the issue proceeds to fund two projects. The issue closes on Thursday, 15 October 2009.

The company has allotted 6.11 crore shares to anchor investors at Rs 45 per shares, at the top end of the Rs 40 to Rs 45 price band for the IPO.

Stock and sector-specific activity may dominate trade in the coming days based on expectations on Q2 September 2009 results. Auto firms are seen reporting strong Q2 results on strong volume growth and on lower input costs. Lower interest rates and pay hike for government employees has boosted auto sales this year after last year's slowdown in demand. Government employees have started receiving the balance 60% of their wage arrears as per the recommendations of the VIth Pay Commission.

Cement firms too are seen reporting good Q2 numbers on the back of volume growth, higher realisation and decline in costs like imported coal. Metal firms are seen reporting fall in net profit due to a sharp fall in metal prices on year-on-year basis.

Fall in volumes in the commercial property segment and lower realisations in both commercial and residential property segments, will pull earnings of realty firms lower.

Banks are seen reporting a sedate growth in core lending. On the flip side, PSU banks will benefit from treasury gains amid volatility in prices of government securities during the quarter.

Strong growth in new subscriber additions will aid topline growth of telecom firms. But falling average revenue per user (ARPU) and revenue per minute due to intense competition will cap bottom line growth.

Prime Minister Manmohan Singh said on Sunday that the worst is over for the Indian economy, and measures to control the sharp rise in food prices are taking effect. Singh, also said he was confident the harvest will be normal, despite the weakest monsoon since 1972 that has ravaged rice and sugarcane fields. Singh had said earlier the Indian economy is likely to grow at 6.3 to 6.5 % in the fiscal year to March 2010, or a seven-year low. He said economic stimulus measures will continue since the economy is not operating at full capacity.

Inflation based on the wholesale price index (WPI) rose 0.7% in the year through 26 September 2009, lower than a rise of 0.83% in the year through 19 September 2009, data released by the government on Thursday showed. Food article index in the WPI was up sharply at 15.45%. Meanwhile, the government revised upwards inflation for the year through 1 August 2009 to a decline of 0.83% from an estimated fall of 1.74%.

Last week, the Reserve Bank of India (RBI) Governer, D Subbarao said while there was broad agreement that the central bank needs to wind back some of its easy policy stance, there were risks if the move was mistimed. An early exit from the accommodative monetary stance on inflation concerns runs the risk of derailing the fragile growth, while a delayed exit may engender inflation expectations, he said. The central bank has pumped huge liquidity in the system and drastically cut policy rates in the aftermath of the global financial crisis last year.

European shares climbed after Dutch-based conglomerate Philips Electronics on Monday offered a better-than-forecast earnings report. Key benchmark indices in France, Germany and UK were up by between 1.33% to 1.54%.

But Asian stocks were mixed as investors remained cautious before a string of US earnings reports this week. Top US banks JPMorgan, Goldman Sachs, Citigroup and Bank of America report third quarter results over the nest five days.

Key benchmark indices in, Hong Kong, South Korea were down by between 0.42% to 0.93%. But key benchmark indices in Taiwan, and Singapore rose by between 0.37% to 1.05%. The Japanese stock markets were closed for a public holiday.

Chinese stocks reversed some of their hefty gains from Friday on concerns about a deluge of share supply. China's Shanghai Composite, which jumped 4.8% on Friday, slipped 0.6% to 2894.48.

China's economy is likely to grow by 8.3% and expansion could hit 9% next year, a leading state think-tank said, adding to signals the government is confident of hitting its growth target for 2009. In its latest quarterly report on the economy, the Chinese Academy of Social Sciences said that if the world financial crisis does not worsen next year and China avoids major natural disasters, the nation's GDP growth could reach 9 % in 2010, the China Securities Journal reported on Monday.

Meanwhile, the government of Singapore sharply upgraded its economic outlook for 2009 Monday, as the city-state's gross domestic product continued to expand at a rapid clip in the third quarter amid an improvement in manufacturing activity. It now expects the economy to contract by just 2.5% to 2% from the previous year - a sharp improvement over its previous forecast of a decline of 6% to 4% - but remained cautious about a full-scale recovery.

Trading in US index futures indicated the Dow could rise 64 points at the opening bell today, 12 September 2009.

US stocks climbed on Friday, with the Dow hitting a closing high for 2009, as investors anticipated positive news from the forthcoming key earnings reports and bullish broker comments boosted tech shares. The Dow Jones Industrial Average gained 78.07 points, or 0.8%, to 9,864.94. The S&P 500 Index added 6.01 points, or 0.6%, to 1,071.49, while the Nasdaq Composite index rose 15.35 points, or 0.7%, to 2,139.28.

In economic data, US trade balance unexpectedly dropped to $30.71 billion in August 2009.

St. Louis Federal Reserve President James Bullard on Sunday said there may not be as much slack in the U.S. economy as many forecasters believe.

Back home, a section of the market is concerned that a glut in share sales may suck liquidity from the secondary market. As per reports, 30 companies have filed their draft red herring prospectuses in September 2009 with market regulator Securities & Exchange Board of India (Sebi) for raising funds through initial public offering.

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 over Rs 50,000 crore through initial public offers (IPOs), follow-up public offers, divestment of stake sale in the second half of the current financial year. 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. As per recent reports, 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.

Some caution may prevail on the bourses ahead of assembly polls in three states viz. Maharashtra, Haryana and Arunachal Pradesh on 13 October 2009. The counting of votes will take place on 22 October 2009.

The BSE 30-share Sensex rose 384.01 points or 2.31% to 17,026.67. The Sensex rose 426.12 points at the day's high of 17,068.78 in late trade. The barometer index rose 44.66 points at the day's low of 16,687.32 in early trade.

The S&P CNX Nifty rose 109.05 points or 2.21% to 5,054.25. Nifty October 2009 futures were near spot price at 5,055, as compared to the spot closing of 5,054.25. Turnover in NSE's futures & options (F&O) segment surged to Rs 72,005.84 crore from Rs 63,622.53 crore on Friday, 9 October 2009.

BSE clocked a turnover of Rs 5258 crore, lower than Rs 6018.94 crore on Friday, 9 Ocotber 2009.

The market breadth, indicating the overall health of the market was strong. On BSE, 1621 shares advanced as compared with 1106 that declined. A total of 94 shares remained unchanged.

Among the 30-member Sensex pack, 27 rose while the rest fell.

The Sensex is up 7,379.36 points or 76.49% in calendar year 2009 as on 12 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8866.27 points or 108.64% as on 12 October 2009. FII inflow in the calendar year 2009 totaled Rs 61,964.10 crore (till 9 October 2009).

Coming back to today's trade, the BSE Mid-Cap index rose 1.22% and the BSE Small-Cap index rose 1.05%. Both the indices, however, underperformed the Sensex.

Sectoral indices on BSE displayed mixed trend. The BSE Consumer Durables index (up 3.72%), the BSE IT index (up 2.94%), the BSE Bankex (up 2.63%), the BSE Teck index (up 2.45%), the BSE Oil & Gas index (up 2.35%), outperformed the Sensex.

The BSE PSU index (up 0.95%), the BSE Capital Goods index (up 1.23%), the BSE Healthcare index (up 1.34%), BSE Power index (up 1.36%), the BSE Auto index (up 1.47%), the BSE Realty index (up 1.48%), the BSE Metal index (up 2.04%), the BSE FMCG index (up 2.25%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 3.19% to Rs 2,167.10 after Anil Dhirubali Ambaini group (ADAG) Chairman Anil Ambani called on Sunday, 11 October 2009, for a renewed effort to end a bitter feud with his brother Mukesh Ambani triggered by the carve-up of up a vast family business stretching from energy to telecommunications and financial services.

Anil Ambani said in a statement he believed "all disagreements can be sorted out in a constructive, cordial and conciliatory manner", and called for "a generous heart, a willing mind and accommodating spirit to resolve issues".

Their latest dispute is over a deal for Mukesh Ambani's Reliance Industries to sell gas to Anil Ambani's Reliance Natural Resources (RNRL) at below-market rates as agreed in a 2005 family settlement to divide the business following their father's death in 2002. The dispute has landed in the Supreme Court (SC). Anil Ambani said on Sunday the contentious gas dispute is a large national issue and can only be resolved through the SC.

Reliance Industries (RIL) said it welcomes Anil Ambani's call to make a renewed effort to "resolve, reconcile and reciprocate" and said it hopes that it is a positive change in the negative, calumnious and malafide campaign launched by ADAG against RIL.

RIL, last week, announced liberal 1:1 bonus issue. Both the bonus and the dividend are applicable to shareholders of the erstwhile Reliance Petroleum, which has been merged with RIL. Meanwhile, a sharp year on year fall in refining margins will weight on Q2 September 2009 results of RIL.

RNRL rose 5.3%. Among other ADAG group firms, Reliance Infrastructure rose 5% and Reliance Power gained 2.59%.

Oil exploration stocks rose after a government official said on Monday the government has received 76 bids for 36 blocks out of the 70 offered under the latest licensing round for exploration of oil and gas blocks. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 2.02%. ONGC and its partners have provisionally bagged 7 deepwater blocks.

Cairn India rose 0.44%. Cairn India, a unit of Cairn Energy, has provisionally won a deepwater block in the Mumbai basin. But, India's second biggest state-run oil exploration firm by revenue Oil India fell 0.1%.

The country has also received 26 bids for 8 blocks out of the 10 offered under the fourth round of auction of coal bed methane blocks, said D.N. Narasimha Raju, joint secretary for exploration.

IT stocks rose on a weak rupee against the dollar. A weak rupee boosts revenues of IT firms in rupee terms as the sector derives a lion's shares of revenue from exports. IT bellwether Infosys Technologies rose 2.82% even as its ADR fell 3.52% on Friday.

Infosys raised its earnings and revenue guidance in both dollar and rupee terms for the year ending March 2010 (FY 2010) at the time of announcing Q2 September 2009 results before trading hour on Friday, 9 October 2009.

Infosys stocks had lost 1.49% on Friday reversing early surge after the company said strengthening rupee is a big concern for its earnings. The rupee dropped for a second straight session on Monday as the dollar's rise against major units depressed sentiment. The partially convertible rupee was at 46.45 per dollar, weaker than 46.40/42 at close on Friday.

The rupee has risen sharply in the past few days. It hit its highest level against the dollar in more than a year on Thursday, 8 October 2009. A stronger rupee negatively impacts operating margins of IT firms as the sector earns a lion's share of revenue from exports.

India's largest software services exporter TCS rose 3.36%. The company will pursue larger deals and leverage its full service offerings, its newly appointed chief executive and managing director N. Chandrasekaran said early last week. India's third largest software services exporter Wipro rose 3.79% even as its ADR fell 2.57% on Friday.

Banking stocks rose on market talks the central bank will hike the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM) category. Banks do not have to make any mark-to-market provisions on securities held this basket if prices of securities fall. Provisions have to be made out of profit and therefore, impact a bank's bottom line. Yields on ten-year government bonds have risen sharply this year. Bond prices and bond yields are inversely related.

India's largest private sector bank by net profit ICICI Bank rose 2.07% even as its ADR fell 0.76% on Friday. The bank last week reduced auto loan rates by 50 basis points.

India's second largest private sector bank by net profit HDFC Bank rose 1.6% even as its ADR fell 1.69% on Friday. The bank is seen reporting good Q2 results this week on the back of strong growth in fee income. A total of nine brokerages expect 16.3% to 31.5% growth in HDFC Bank Bank's net profit at between Rs 614.10 crore to Rs 694.10 crore in Q2 September 2009 over Q2 September 2008. HDFC Bank unveils Q2 results on Wednesday, 14 October 2009.

India's largest bank by net profit and branch network State Bank of India rose 5.16%. State Bank of India plans a series of investor presentations this week on the expected issue of a five-year dollar benchmark bond, an official at one of the banks managing the roadshow said on Monday. The bank's plans for a bond were first unveiled at the start of the month and would be the first from an Indian bank in the offshore G3 market since August 2007.

Among other PSU banks, Union Bank of India, Bank of India and Bank of Baroda, rose by between 1.1% to 3.76%.

Axis Bank rose 1.66% after net profit rose 31.95% to Rs 531.64 crore in Q2 September 2009 over Q2 September 2008. The results which hit the market at the fag end of the trading session, were more or less in line with market expectations.

India's largest dedicated housing finance firm HDFC rose 2.41% ahead of Q2 results. HDFC, after market hours, said net profit rose 24.27% to Rs 663.94 crore in Q2 September 2009 over Q2 September 2008. The results beat market expectations

Metal stocks rose on strong domestic demand. India's largest private sector steel maker by sales Tata Steel rose 2.51%. The company's domestic steel sales rose 19% in July-September 2009 quarter to 1.46 million tonnes from a year earlier. Domestic operations account for about a quarter of the group's total annual global capacity of 30 million tonnes, which includes unit Corus, Europe's second-largest steelmaker.

Among other metal stocks, Steel Authority of India, Hindustan Zinc, National Aluminum Company, Hindalco Inudstries, Sterlite Industries rose by between 0.24% to 2.04%.

FMCG stocks rose on revival in India's annual monsoon since mid-August. FMCG firms derive substantial revenue from the rural sector. United Spirits, Dabur India, Hindustan Unilever, ITC, Britannia Industries rose by between 0.68% to 5.45%.

Auto stocks rose on expectations of strong Q2 results. Higher volumes and increase in profit margins due to lower input costs are seen boosting the bottom line of auto firms in Q2 September 2009. India's largest tractor maker by sales Mahindra & Mahindra rose 2.83%. Total sales rose 10.94% to 28434 vehicles in September 2009 over September 2008. The company unveiled the sales figures during trading hours on 1 October 2009.

India's top small car maker by sales Maruti Suzuki India rose 2.8% on bargain hunting after a recent sharp fall in the counter. The company's total sales rose 17.3% to 83,306 vehicles in September 2009 over September 2008. The figures were released during trading hours on 1 October 2009.

Bajaj Auto rose 2.86%. Bajaj Auto is seen reporting a surge in net profit in Q2 September 2009 on higher vehicle and on a sharp surge in operating profit due to lower input costs. The company unveils Q2 results on Thursday, 15 October 2009.

India's largest truck maker by sales Tata Motors rose 0.36% on bargain hunting after the stock fell nearly 7% on Friday on equity dilution concerns. The company said during market hours on Friday it has raised $750 million through an issue of global depositary receipts (GDRs) and convertible bonds. The company said it will use the funds to repay debt taken for acquisition of Jaguar Land Rover (JLR).

Tata Motors said the GDRs were issued at $12.54 each -- a 1.5% discount to Thursday's closing price of Rs 589.25 on NSE. The convertible notes were issued at a 7.5% conversion premium over the GDR price with a yield to maturity of 5.5%.

Construction shares rose as higher government spending on infrastructure sector in the Union Budget 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction. Jaiprakash Associates, Nagarjuna Construction Company, Punj Lloyd, gammon India, Era Infra Engineering rose by between 0.99% to 7.03%.

The government has set a target of spending $20 billion a year on road construction.

Shares of diversified firm Grasim rose 0.79%. The company said on 3 October 2009 it will transfer its cement business to its unlisted unit Samruddhi Cement. The demerger will be completed by March 2010 after which Samruddhi Cement will be listed. Samruddhi will then make an offer to UltraTech Cement for consolidation of the group's cement business. For every share, shareholders of Grasim will get one share of Samruddhi.

Meanwhile, shares of UltraTech Cement fell 2.27%. The cement maker at its board meet held on 6 October 2009 gave in principle approval to a proposal to absorb group firm Samruddhi Cement. Aditya Birla group Grasim and UltraTech Cement currently operate a combined production capacity of 42 million tonnes a year or a fifth of India's cement capacity.

Among other cement stocks, ACC and Birla Corporation, rose by between 0.15% to 2.07%.

Telecom stocks were mixed after telecom regulator Telecom Regulatory Authority of India (TRAI) said on 8 October 2009 that operators would be free to offer various tariff plans to their subscribers, including the per-second billing scheme, and they would also be free to fix the tariff per second.

This would come as a relief to the telecom operators who would have taken a hit on their revenues, if the per-second-billing model was to become mandatory, as telcos are already facing low revenues per subscriber. Telecom stocks had tumbled in the recent past on concerns over declining tariffs and rising competition.

India's largest cellular services provider by sales Bharti Airtel rose 2.23%. Bharti Airtel added 2.51 million subscribers in September 2009, lower than the previous month's addition of 2.82 million users, data from an industry body showed on Monday.

Chief Executive Manoj Kohli last week that the company is considering a bid for Millicom's assets in Sri Lanka. Sweden's Millicom has put its mobile operations in Sri Lanka up for sale.

India's second largest cellular services provider by sales Reliance Communications (RCom) fell 0.62%.

RCom on 5 October 2009 reduced call charges across networks to a flat 50 paise per minute, heating up the tariff war in a market that is getting increasingly competitive. Its move came after an almost similar tariff cut by Bharti Airtel last month. A reduction in tariffs by Reliance Communications (RCom) also raised concerns of a fresh tariff war.

Realty stocks rose on recent reports that 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. DLF, Unitech, Ansal Properties, Omaxe, Sobha Developers rose by between 0.77% to 2.57%.

Hotel stocks rose on hopes hotel occupancy rates may rise on a recovery in domestic economy. Indian Hotels, Hotel rose by between 3.53% to 5.63%.

Print media stocks rose as a recent steep slide in prices of newsprint, a key input, will boost profitability. Deccan Chronicle Holdings, HT Media, Sandesh and Jagran Prakashan rose by between 0.97% to 6.72%.

Newsprint prices have slumped over 50% during the last six months. The recent rally of the rupee against the dollar also bodes well for print media firms as it will bring down the import bill. Print media firms spend a large sum of money on import of newsprint.

Cals Refineries clocked highest volume of 5.55 crore shares on BSE. Reliance Natural Resources (1.16 crore shares), Ispat Industries (1.03 crore shares), Austral Coke (0.98 crore shares) and Unitech (0.75 crore shares) were the other volume toppers in that order.

Reliance Industries clocked highest turnover of Rs 345.55 crore on BSE. State Bank of India (Rs 236.94 crore), Reliance Capital (Rs 177.05 crore), Reliance Communications (Rs 119.79 crore) and ICICI Bank (Rs 119.43 crore) were the other turnover toppers in that order.

Daily News Roundup - Oct 12 2009

Tata Motors raised US$750 million through an issue of GDR and convertible bonds to fully pay off JLR loan (FE)

Infosys Technologies says business climate was improving and the IT industry had the potential to return to double digit growth rates from around the middle of next year. (TOI)

Reliance Infra agrees to pay marketing margin to RIL. (ET)

L&T is planning to list the FCCBs on Singapore bourse. (FE)

Bharti Shipyard hikes stake in Great Offshore to 23.17% (ET)

Oil India in talks with explorers for strategic alliance to participate in NELP-VIII. (BL)

Teva Women's Health of Israel and Warner Chilcott of Puerto Rico have sued Lupin in separate patent infringement cases in the US. (BS)

BHEL is in talks with Areva, Toshiba and Westinghouse for nuclear technology tie ups.(ET)

DLF is set to launch DKNY Jeans in India by opening exclusive outlets in Mumbai, Delhi NCR, Kolkata and Hyderabad. (ET)

The Foreign Investment Promotion Board approves Jet Airways’ plans to raise US$400mn through sale of fresh shares to qualified foreign institutions. (ET)

MRPL is likely to receive 0.2mn tonnes of crude oil from the Rajasthan fields of Cairn India and ONGC. (BL)

IVRCL Infrastructures & Projects has announced it has received orders worth Rs5.2bn. (BL)

UTV Software will raise Rs7.5bn through various channels. (FE)

Parsvnath Developers is looking to raise about Rs. 5bn this fiscal by selling equity at project level. (FE)

Sterlite Energy is believed to have bagged the country’s first ultra mega power transmission project. (FE)

The high court has given its approval for the merger of the two group companies of Godrej Consumer. (FE)

GMR energy plans IPO to fund expansion. (ET)

The battle for control of Chiria mines seems far from over with its prime stakeholder SAIL stepping up the ante to get full control of the over 2bn tonne ore reserves estimated in the region. (ET)

Kishore Biyani, MD of Pantaloon will consolidate the 22 companies in the group into three verticals-retail, logistics and financial services-which in turn will be controlled by the promoters through a main holding company. (Mint)

Tata Steel to set up Rs300mn hospital near its rehabilitation colony at Gobarghati. (BS)

The telecom unit of PowerGrid Corp. is in discussion with SingTel and British Telecom for leasing out broadband capacity on its optical fibre network. (BL)

Five foreign investors have stepped in as anchor investors in Indiabulls Power IPO, picking up shares worth about Rs3.2bn. (TOI)

Dabhol power project owned by cash-strapped Ratnagiri Gas and Power is yet to be fully commissioned, but an additional capacity of at least 2,000MW is already being planned at the same location with an investment of around Rs80bn. Mint)

JK Tyre, Ceat up tyre prices by up to 4%. (DNA)

Coal India to select foreign partners for overseas assets by March 2010. (FE)

PNB expects to acquire a controlling stake in Kazakhstan-based Kazakh Lender Metrokombank shortly. (BL)

PNB may seek Rs30bn of World Bank fund for recapitalisation of public sector banks in India. (BS)

Prajay Engineers will invest Rs6bn in developing two hotels and a 23-tower residential project in the city. (BL)

EID Parry acquired 76% equity stake in Sadashiva Sugars for Rs500mn. (BS)

Prajay Engineers launches Rs7bn residential project in Hyderabad. (BS)

RBI clears Standard Chartered IDR issue with a few conditions. (ET)

Foreign reserves for the week ended increased by US$430 million to US$280bn. (FE)

PM reaffirmed continuation of stimulus package till the economy is completely out of the woods. (ET)

Hopes for raising Rs350 billion through 3G auction have been clouded by fresh questions raised by defence authorities over vacation of spectrum (ET)

The 12 ports owned by the Union government together handled 268 mn tonnes of cargo in the first six months of the current fiscal, a growth of 2.3% yoy. (Mint)

Private sector projects accounted for over 60% of the 4,423-MW commissioned so far this fiscal, according to Central Electricity Authority data for April 1- September 15. (BL)

Government to tweak new direct tax code; may have a relook at MAT, low-income segment to get more incentives. (TOI)

105 out of the 591 central-sector projects have reported slippages of 1-18 months, according to the Union ministry of statistics and programme implementation. (DNA)

A group of ministers looking into the pricing structure of jet fuel is expected to take up a proposal on Monday for freeing up imports of the commodity. (ET)

Fighting with thoughts!

If you want peace, stop fighting. If you want peace of mind, stop fighting with your thoughts.

It’s a season of festivities and joy but the bulls are lacking enthusiasm. The only words of enthusiasm seem to be coming from Anil Ambani who seeks to end disputes with Mukesh Ambani. Back to the market, a flat start is in the offing. US stocks hit new year highs on Friday and the August IIP data is expected to be strong. But, Asian markets are indecisive and choppy. A holiday-curtailed week on account of state elections and a Diwali weekend could mean lower volume on the domestic side.

Technical and derivative indicators are pointing to some caution amid mixed prospects for the economy and corporate earnings. Since making multi-month highs, the market has been struggling to build on the seven-month rally. Barring last week, the global markets too have been largely sluggish. Though the Alcoa result and few data points did perk up the mood on Wall Street, it remains to be seen whether the momentum can continue.

The overall trend may remain volatile and uncertain in the near-term. There may be a small correction but the same could spark off buying by those who have been feeling left out for quite some time. The upside will hinge on the India Inc.’s report card, local economic data, global cues and of course fund flows.

Results Today: Axis Bank, DCB, Exide Industries, HDFC, Praj Industries and Sintex Industries.

FIIs were net sellers in the cash segment on Friday at Rs442.7mn on a provisional basis. The local funds were net buyers at Rs867.2mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs16.12bn.

US stocks gained on Friday at the end of a strong week, with the Dow and S&P 500 hitting their highest levels in over a year after the trade gap shrank and the dollar too recover some of the lost ground against major currencies.

The Dow Jones Industrial Average rose 78 points, or 0.8%, to 9,864.94. The S&P 500 index gained 6 points, or 0.6% at 1,071.49 and the Nasdaq Composite index climbed 15 points, or 0.7%, to 2,139.28.

The Dow gained in four of five sessions last week and the S&P 500 and Nasdaq gained in all five sessions, as investors snapped up beaten down stocks after a two-week selloff.

Wall Street briefly topped 2009 closing highs during the session on Thursday, before closing just modestly lower. Thursday's run was fueled by Alcoa's better-than-expected profit report, a bigger-than-expected drop in jobless claims, and the first rise in monthly retail sales figures in a year.

Since bottoming on March 9 at a 12-year low, the S&P 500 has spiked 58%. Despite the pace of the run, the market probably still has more room to rise.

Friday was also the two-year anniversary of the Dow and S&P 500 closing at all-time highs. And 24 tumultuous months later, both averages are still more than 30% below those highs.

The US trade deficit narrowed to $30.7 billion in August, from a revised $31.9 billion in the previous month, the government reported Friday morning. That figure surprised economists, who were looking for the deficit to widen to $33 billion.

The Commerce Department report showed that exports rose, adding to bets that the global economy is recovering. The drop in imports was also a surprise to economists, who thought higher oil prices would have impacted the number.

Federal Reserve Chairman Ben S. Bernanke said on Thursday that while interest rates will stay low for a while, the Fed will have to start boosting rates as the recovery picks up, in order to fight off the threat of inflation.

Bernanke was speaking at a conference in Washington in which he discussed the Fed's still-expanding balance sheet in the aftermath of its multi-trillion-dollar efforts to help temper the pace of the recession.

His comments boosted the dollar, which has been stumbling for several weeks, hitting multi-month lows against a basket of other currencies.

US President Barack Obama won the Nobel Peace Prize on Friday for his efforts in strengthening cooperation around the world and trying to reduce the usage of nuclear weapons. The announcement was a shock, as Obama's name had not been mentioned among potential front runners.

US light crude oil for November delivery rose 8 cents to settle at $71.77 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery fell $7.70 to settle at $1,048.60 an ounce, the third straight record high for the precious metal.

Treasury prices tumbled, raising the yield on the 10-year note to 3.30% from 3.25% late on Thursday.

Market breadth was positive and lighter than average. On the New York Stock Exchange, winners beat losers by three to two on volume of 990 million shares. On the Nasdaq, advancers topped decliners two to one on volume of 1.97 billion shares.

A positive week ended on a down note for European shares on Friday, with miners losing ground on falling metals prices, while telecom were also under pressure. The pan-European Dow Jones Stoxx 600 index declined 0.3% to 242.72. The index ended 1.3% higher on Thursday. For the week, it gained 3.7%.

The UK's FTSE 100 index managed to finish higher, gaining 0.1% to 5,161.87. Germany's DAX index slipped 0.1% to close at 5,711.88 and the French CAC-40 index shed 0.2% to end at 3,799.61.

Thursday turned out to be an absolute choppy day which ended on a flat note. The index heavyweight Reliance industries which announced a 1:1 bonus issue on Wednesday surged in the early trades however as the day progressed the stock ended almost flat. The move which was meant to boost up investor confidence failed to inspire the bulls.

IT stocks were under the pressure as the Indian Rupee gained 12% since March. On the other hand the telecom stocks continue to remain under the bear attack on account of per second payment.

The BSE Sensex gained 37 points at 16,843 after touching a high of 16,998 and a low of 16,775. The index opened at 16,908 against the previous close of 16,806. The NSE Nifty was up 16 points to shut shop at 5,002.

In Asia, the Nikkei in Japan was up 0.4%, while Australia's S&P/ASX ended higher by 1.5% at 4,768. Shanghai SE Composite in China gained 1% and Hang Seng index in Hong Kong was up 1.2%.

In Europe, stocks were in the positive terrain. The FTSE in the UK was up 0.7%, The DAX in Germany was up 1.2% and the CAC 40 index in France was up 1.2%.

Coming back to India, among the BSE sectoral indices, the Realty index was the top gainer, adding 2%, followed by the FMCG index that was up 2% and the BSE Auto index was up 1.7%.

Among the major losers were, BSE Teck index was down 3%, BSE IT index down 2% and BSE Capital Goods index fell 0.2%.

The BSE Mid-Cap index gained 0.8% and the BSE Small-Cap index was up 0.2%.

Among the 30-components of Sensex, 22 stocks ended in the green and only 8 ended in the negative terrain. Reliance Industries, ITC, Tata Steel, ONGC and Reliance Infra were among the major gainers.

On the other hand, among the major laggards were Bharti, Infosys, L&T, RCom and TCS.

Outside the frontline indices, the big losers in the broader market were Piramal Health, Sintex Ind, Max India, HCL Tech and United Phos. On the other hand, gainers included GE Shipping, Oracle Fin, Ashok Leyland and Videocon Ind.

Shares of Reliance Industries gained marginally by 1% at Rs2119. On Wednesday post market hours the company announced Bonus shares in the ratio of one equity share of Rs10/- each fully paid up for every one equity share of Rs10/- each of the Company.

Further, the Board declared a dividend of Rs13 per fully paid-up equity share of Rs10/- each.

Shares of Tata Motors gained by 5% to Rs587 after reports stated that the company is expected to produce around 40,000 Nanos this fiscal and increase it four-fold to over 170,000 units during FY11.

The stock opened at Rs565 and made an intra-day high of Rs600 and a low of Rs560. Total traded volumes stood at 1.6mn shares.

Jaguar Land Rover owned by Tata Motors announced that it arranged a US$278mn loan from the SBI.

The company has now completed 500mn pounds of new financing this year, including a US$90mn export-financing facility with ABC International Bank, it said today in a statement.

"We are pleased our funding plans are progressing and appreciate the confidence shown by our banking partners," Kenneth Gregor, chief financial officer of Jaguar Land Rover, said in the statement.

The government plans to sell 5% in NTPC Ltd, through a follow-on public offering in the month of January, 2010 stated reports.

The proposal is likely to come up for approval by the Cabinet Committee on Economic Affairs at its meeting on today, reports added. At current market price, the government will fetch Rs85bn, stated reports.

Shares of NTPC gained 1.4% to Rs212. The stock opened at Rs211 and made an intra-day high of Rs213 and a low of Rs210. Total traded volumes stood at 0.59mn shares.

GlaxoSmithKline Plc may purchase a 5% stake in Dr. Reddy’s by buying stock. Glaxo, may buy 20% of the family holding company’s 23.2% controlling stake, for an investment of about US$165mn, report stated.

Shares of Dr Reddy’s Labs gained by 3% to Rs976. The stock opened at Rs955 and made an intra-day high of Rs981 and a low of Rs931. Total traded volumes stood at 0.1mn shares.

Hindustan Zinc reduces Zinc prices by Rs1200 per ton. While prices of Lead prices were cut by Rs3,800.

Shares of Hindustan Zinc gained by 2.5% to Rs838. The stock opened at Rs834 and made an intra-day high of Rs846 and a low of Rs828. Total traded volumes stood at 64,000 shares.

Welspun Gujarat Stahl Rohren successfully upsizes its Foreign Currency Convertible Bonds offering for an amount of US$20mn, taking the total to US$150mn. JP Morgan has acted as the sole book- runner to the transaction.

Shares of Welspun Gujarat Stahl Rohren gained by 2% to end at Rs273.30. The stock opened at Rs273 and made an intra-day high of Rs281 and a low of Rs270. Total traded volumes stood at 1.9mn shares.

Shares of Plethico Pharma locked at 10% upper circuit to Rs287.20. The stock opened at Rs265 and made an intra-day high of Rs287.2 and a low of Rs260. Total traded volumes stood at 67,000 shares.

According to a report released on Thursday, "After 4-5 quarters of lacklustre performance, Plethico Pharma, a major nutraceuticals and OTC player, is set for accelerated growth as recessionary pressures ease and consumer spends recover globally. We estimate 63% growth in core earnings in CY09, followed by sustainable CAGR close to 20% over CY09-11.

There could be further upside to our estimates from better operating leverage, faster penetration of foreign markets by Natrol brands and higher offtake by Russian pharmacies through the Tricon deal. Plethico’s stock is trading at a significant 40-50% discount to peers and we expect this discount to narrow as earnings growth accelerates. We initiate coverage with a BUY rating and a target price of Rs440".

EdServ announced that it won a contract as Associate Training Provider (ATP) of Apex Hitech Institute, part of Ministry of Labour and Employment, Government of India, whereby the Company becomes authorised to provide MES training across India.

Apex Hitech Institute, set up with assistance from the World Bank under Directorate General of Employment and Training (DGE&T), aims to provide training to youth to better their employability by MES programme using a wide range of courses across a host of job domains.

Based on this new relationship, EdServ will train unemployed and under-employed youth aged 14 years and upwards who have dropped out of schools and colleges for various reasons that include affordability and employment needs. Subsequent to EdServ's training, these students will get assessed and certified by DGE&T.

Shares of EdServ also were locked at 5% upper circuit at Rs166.7. The stock opened at Rs166.7 and made an intra-day high of Rs166.7 and a low of Rs162.25. Total traded volumes stood at 0.26mn shares.

SGX Nifty flat

4,933.0 +2.0

Indiabulls Power IPO Review

Indiabulls power (IPL) has come out with its initial public offering (IPO), with an issue of 39.07 crore equity shares, which includes 5.09 crore
of green shoes option. At the offer price of Rs 40-45 per share with face value of Rs 10 each, the issue would mop up Rs 1,560-1 ,760 crore, and would represent 19% of post dilution equity capital. The proceeds would go for power projects at Amravati, Phase I and at Nashik.

The two projects would require a total of Rs 3,200 crore of equity funding, and the company would need to put in additional funds in these projects. Considering the status of its projects, projected timelines and funding plans, the stock does not look attractive enough. Investors may wait for the listing, and can consider the stock in the secondary market.

COMPANY’S BUSINESS

Amravati, Phase I project has two units with a total capacity of 1,320 MW, and would require an investment of Rs 6,900 crore, of which only Rs 156 crore has been spent so far as per the prospectus. The company plans to fund the project with Rs 5,166 crore of debt, which is 75% of total cost. While it has received final sanction from the lenders, it is still to enter into formal financing agreement. The company has received assurance for fuel linkage and has also awarded EPC contract for the project.

The expected commissioning of the two units in this phase is June ’12 and Sept ’12. Nashik project has 7 units with total capacity of 1,335 MW, requiring an investment of Rs 6,048 crore. While the company has received the fuel linkage for this project, it has not yet awarded the EPC contract for this project.

Company has another project at Bhaiyathan, with a capacity of 1,320 MW where it has awarded the EPC contract. The company has received captive coal blocks for this project, which is estimated to have reserve of 350 mn tonnes, enough for the life of this project. The estimated investment for the project is Rs 6,796 crore and expects to commission the two units in Dec’ 12 and March’ 13. However, progress related to mining of coal from the block is still awaited.

Apart from these projects, it is developing Amravati Phase II, another project in Chhattisgarh, both having a capacity of 1,320 mw, which are at initial stage, and would require about Rs 5,600 crore each. It also plans to develop 4 hydel units in Arunachal Pradesh totaling 167 mw.

VALUATION AND OUTLOOK:

Since the company is still to begin its operations, it has no income from operations and earned Rs 141 crore as other income in FY09. As such, it cannot be evaluated based on price-earnings model. Further, the lackluster response of the market , after the listing, to the previous two IPOs from power generation companies in the last few months, means the market is not ready to buy the power generation stocks based on the future expectation.

The uncertainty is higher in this case as the first commissioning is almost 3 years away. Further, the progress in each project is still limited, which may get further delayed, as there is no formal agreement for debt financing so far. Further, it will require a total of Rs 7,800 crore of equity for its announced projects, at 75:25 debt-equity ratio.
With a current net worth of Rs 2,400 crore, and the first commissioning expected only by June ’12, there may be more equity dilution at a later stage. As a result, the stock does not seem to have enough attractiveness currently, from an investment perspective. Investors may wait for it to list and find its level, before taking exposure.

IPO Details

Price Band: Rs 40-45

Net issue size: Rs 1,563-1 ,758 crore

Date: October 12 - 15

via ET

Copper registers steep drop

Red metal registers good weekly gains though

Copper prices fell the most in a week on Friday, 09 October, 2009 at Comex and LME. Prices fell at Comex and LME following the strong dollar.

At USA, copper futures for December delivery ended lower by 6.05 cents (2.1%) to 2.838 a pound. Copper gained 5.8% for the week. Copper ended September, 2009, lower by 0.3%.

On the London Metal Exchange, copper for delivery in three months ended lower by $95 (1.5%) at $6,235 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

Before September, it was the eight straight monthly gain for copper. On a year to date basis, prices are higher by 91%.

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 Friday, the dollar firmed after Fed Chairman, Ben Bernanke said the central bank will tighten monetary policy when the economic outlook shows sufficient improvement. The dollar index, which measures the strength of dollar against a basket of other currencies, rose by almost 0.3%.

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.

Among other metals traded in the LME on Friday, lead lost 0.5% to $2,273 a ton and zinc slid 1% to end at $2,063 a ton. Nickel shed 1.6% to end at $19,184. Aluminium fell 0.8% to $1,895 a ton.

Crude pares early losses

Crude manages to eke out marginal gains

Crude prices erased earlier losses and ended marginally higher at Nymex on Friday, 09 October, 2009. Prices fell initially due to the strong dollar but then rose on hopes of economic recovery. Crude also registered good weekly gains.

On Friday, crude-oil futures for light sweet crude for November delivery closed at $71.77/barrel (higher by $0.08 or 0.1%). For the week, crude ended higher by 2.8%.

For the month of September, 2009, crude ended higher by a marginal 0.9%. For the third quarter, crude ended higher by just 1%. Crude prices had rallied 40% and 11.3% in the second and first quarter of 2009 respectively.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 63.5% since then. Year to date, in 2009, crude prices are higher by 45%.

In the currency market on Friday, the dollar firmed after Fed Chairman, Ben Bernanke said the central bank will tighten monetary policy when the economic outlook shows sufficient improvement. The dollar index, which measures the strength of dollar against a basket of other currencies, rose by almost 0.3%.

On Friday, Paris based, The International Energy Agency raised its forecasts for global oil demand for both this year and 2010, citing more optimistic economic estimates issued by the International Monetary Fund. The agency raised its expectations by 200,000 barrels a day, to average demand of 84.6 million barrels a day, for 2009, and by 350,000 barrels a day, to 86.1 million barrels a day, for 2010. Despite the increased forecasts, global oil demand in 2009 will still be 1.9% below last year's level.

Also on Friday, November natural-gas futures fell 19.7 cents, or 4%, to $4.77 per million British thermal units.

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

Morning Note - Oct 12 2009

Technical Picks - Oct 12 2009

8 anchor investors help Indiabulls Power

Indiabulls Power, a subsidiary of Indiabulls Real Estate, which is coming out with initial public offering (IPO) on Monday, October 12, has raised Rs 2.75 billion by allocating 61.1 million equity shares of face value of Rs 10 each at a price of Rs 45 each to anchor investors in the pre-IPO placement. The price includes a share premium of Rs 35 an equity share. The issue closes on Thursday, October 15.

Copthall Mauritius Investment picked up majority of the anchor investment stake. It bought 21.08 million equity shares there by helping the firm to raise Rs 948.60 million. Next in line was BNP Paribas Arbitrage which picked 10.50 million which helped the firm raise Rs 472 million.

Other anchor investors who subscribed include Nomura India Investment Fund Mother Fund, The Nomura Trust and Banking India Stock Mother Fund Co as the trustee of Nomura India Stock Mother Fund, Indea Capital,Norses Bank, Credit SuissSe Sinsapore and Macquarie Bank.

SEBI introduced the concept of anchor investors in June. An anchor investor can subscribe for up to 30% of the 60% portion reserved for QIBs in an IPO. Such an investor will have a lock in period of one month

Blue Star

We recommend a buy in the stock of Blue Star from a short-term perspective. It is evident from the charts of the stock that after taking support at Rs 125 in March, the stock began to trend upward. Since then it has been on an intermediate-term uptrend. However, following a short-term correction from Rs 399 in August, the stock took support at Rs 325, a long-term key support level and resumed its uptrend. The stock is hovering above its 21-day and 50-day moving averages. The daily relative strength index (RSI) has entered the bullish zone and weekly RSI is featuring in this zone. Both the daily weekly moving average convergence and divergence (MACD) indicators are hovering in the positive territory. Considering that the stock’s intermediate-term up trendline is intact, we are bullish from a short-term perspective. We anticipate it to rally until it hits our price target of Rs 405. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 349.

via BL

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