Market Review - Oct 14 2009

Market Review - Oct 14 2009

NSE Bulk Deals to Watch - Oct 14 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
14-OCT-2009,ADLABSFILM,Adlabs Films Limited,RELIANCE CAPITAL LTD,BUY,2400000,355.00,-
14-OCT-2009,ADORWELD,Ador Welding Limited,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,102088,154.55,-
14-OCT-2009,ANANTRAJ,Anant Raj Industries Limi,DEUTSCHE SECURITIES MAURITIUS LIMITED,BUY,2010000,140.00,-
14-OCT-2009,AUSTRAL,Austral Coke & Projects L,SWIFT TIE UP PVT LTD,BUY,2175094,15.52,-
14-OCT-2009,DENABANK,Dena Bank,CITIGROUP GLOBAL MARKETS MAURITIUS PVT LTD,BUY,1706940,73.23,-
14-OCT-2009,DEWANHOUS,Dewan Housing Fin Corp,WASATCH GLOBAL OPPORTUNI TIES FUND,BUY,695000,192.16,-
14-OCT-2009,DISHTV,Dish TV India Limited,PKC STOCK BROKING PRIVATE LIMITED,BUY,3190000,47.32,-
14-OCT-2009,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,BUY,116409,129.89,-
14-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,12028154,23.66,-
14-OCT-2009,KOUTONS,Koutons Retail India Limi,LG - INDIA FUND,BUY,454968,350.00,-
14-OCT-2009,RAJESHEXPO,Rajesh Exports Ltd.,LTD JOIS INVESTMENTS P,BUY,1405399,75.58,-
14-OCT-2009,SELAN,Selan Exploration Technol,ANKURKUMAR SURESHKUMAR MEHTA,BUY,105937,340.53,-
14-OCT-2009,ADLABSFILM,Adlabs Films Limited,AAA ENTERTAINMENT PRIVATE LIMITED,SELL,2400000,355.00,-
14-OCT-2009,ADORWELD,Ador Welding Limited,AJAY ASSET MANAGEMENT PRIVATE LIMITED,SELL,96563,155.22,-
14-OCT-2009,AUSTRAL,Austral Coke & Projects L,ALBULA INVESTMENT FUND LTD,SELL,3000000,15.50,-
14-OCT-2009,AUSTRAL,Austral Coke & Projects L,SWIFT TIE UP PVT LTD,SELL,1175094,15.58,-
14-OCT-2009,DISHTV,Dish TV India Limited,PKC STOCK BROKING PRIVATE LIMITED,SELL,3190000,47.35,-
14-OCT-2009,FCSSOFT,FCS Software Solutions Li,TRANSGLOBAL SECURITIES LTD.,SELL,116409,130.01,-
14-OCT-2009,GKWLIMITED,GKW Limited,SOMERSET INDIA FUND RHODES,SELL,35000,295.00,-
14-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,11937717,23.65,-
14-OCT-2009,KOUTONS,Koutons Retail India Limi,PASS PORT INDIA INVESTMENT,SELL,725000,350.97,-
14-OCT-2009,OUDHSUG,The Oudh Sugar Mills Ltd,NEW INDIA RETAILING & INVESTMENT LIMITED,SELL,150000,69.79,-
14-OCT-2009,PVP,PVP Ventures Limited,PVP MALAXMI ENERGY VENTURES PRIVATE LIMITED,SELL,1230000,44.90,-
14-OCT-2009,RAJESHEXPO,Rajesh Exports Ltd.,LTD JOIS INVESTMENTS P,SELL,954399,77.22,-
14-OCT-2009,SELAN,Selan Exploration Technol,ANKURKUMAR SURESHKUMAR MEHTA,SELL,92149,341.07,-

Post Session Commentary - Oct 14 2009

The Indian market extended its previous session’s gains to close higher on significant buying over the ground. Market touched 17 month highs during the trading and BSE Sensex ended above 17,200 level along with NSE Nifty closed above 5,100 level. Stocks rallied sharply following firm cues from European markets and positive closing of Asian stocks. In addition, higher US index futures triggered by a strong guidance from chip major Intel, also contributed to the upward journey. Meanwhile, C Rangarajan, chairman of the prime minister’s Economic Advisory Council stated that the Reserve Bank of India (RBI) is doubtful to revise standard interest rates when it reviews monetary policy later this month. However, the RBI holds its quarterly policy review on October 27. Additionally, he said that India’s economy would grow 6-6.5% with an upward bias in the year to March 31, 2010.

The market opened today on upbeat note amid favorable cues from the markets all over the world. Asian stocks opened with gains whereas, On Monday, the US stock market ended flat despite weaker dollar, as Johnson & Johnson revenue missed estimates that enthused worries about this earnings season. Investors remained worried by news that Meredith Whitney Advisors downgraded shares of Goldman Sachs. Meanwhile, Intel reported its third quarter earnings after closing of market. Both profit and revenue significantly outpaced expectations and its third quarter revenue stood above $9 billion. Further, benchmark indices continued trade in positive terrain and extended gains in line with positive European markets. Finally, market maintained its’ strength and ended in green territory on brisk buying across the counters. From the sectoral front, all indices ended in green barring Teck stocks. Moreover, most of the buying was seen in Metal, Capital Goods, Auto, PSU, Bank, Consumer Durable, Power and Realty stocks. Broader market indices also followed the same trend, as the BSE Midcap index and the BSE Smallcap index advanced by more than 1% each.

Among the Sensex pack 25 stocks ended in green territory and 5 in red territory. The market breadth indicating the overall health of the market remained positive as 1685 stocks closed in green while 1075 stocks closed in red and 80stocks remained unchanged in BSE.

The BSE Sensex closed higher by 204.44 points or (1.20%) at 17,231.11 and NSE Nifty ended up by 63.95 points or (1.27%) at 5,118.20. BSE Mid Caps and Small Caps closed with gains 124.77 and 114.91 points at 6,503.23 and 7,564.25 respectively. The BSE Sensex touched intraday high of 17,274.59 and intraday low of 17,117.90.

Gainers from the BSE Sensex pack are M&M Ltd (6.12%), Sterlite Industries (5.38%), Hindalco (5.04%), JP Associates (5.01%), Tata Steel (4.69%), SBI (4.46%), Tata Motors (4.07%), BHEL (3.07%), TCS Ltd (2.08%), NTPC (2%), L&T Ltd (1.96%), Tata Power (1.81%), DLF Ltd (1.78%), HDFC (1.50%) and Wipro Ltd (1.28%).

Losers from the BSE Sensex pack are RCom (6.54%), Bharti Airtel (3.25%), Reliance Infra (2.59%), ACC Ltd (0.73%) and Grasim Industries (0.53%).

On the global markets front, the Asian markets that opened before the Indian market, ended mostly higher amid expectations of upbeat quarterly earnings figures. Shanghai Composite, Hang Seng, Singapore''s Straits and Seoul Composite ended higher by 34.34, 419.12, 40.08 and 20.16 points at 2,970.53, 21,886.48, 2,708.48 and 1,609.49 respectively. However, Nikkei 225 lost 16.35 points to 10,060.21.

European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is higher 66.41 points at 3,8467.8, in Frankfurt DAX index is trading up 109.32 points at 5,823.63 and in London FTSE 100 is trading higher by 89.72 points at 5,243.87.

The BSE Metal index outperformed the benchmark indices and increased by (5.27%) or 780.29 points at 15,587.83 on stronger domestic demand. Gainers are Sesa Goa Ltd (13.89%), Jindal Steel (7.94%), Jindal Saw (5.59%), Sterlite Industries (5.38%) and Hindalco (5.04%).

The BSE Capital Goods index ended up by (2.38%) or 329.26 points at 14,185.34, as Usha Martin (8.76%), Aiaengineer (8.56%), Punj Lloyd (7.29%) and Crompton Greaves (5.85%) ended in green.

The BSE Auto index ended up by (2.28%) or 149.13 points 6,694.04. Main gainers are M&M Ltd (6.12%), bharat Forge (5.82%), Exide Industries (5.24%), Escorts Ltd (4.57%) and Tata Motors (4.07%).

The BSE PSU index closed higher by (1.65%) or 148.12 points at 9,120.39. Gainers are Dena Bank (6.90%), Bank of India (6.54%), Corporation (6.45%), SBI (4.46%) and Neyveli LIG (4.13%).

The BSE Bank index gained (1.63%) or 163.39 points 10191.84. Gainers are Bank of India (6.54%), Federal Bank (5.50%), Indus Ind Bank (5.35%), Yes Bank (5.16%) and SBI (4.46%).

The BSE Teck index lost (0.37%) or 11.23 points at 3,013.92. Losers are RCom (6.54%), Tata Comm (3.35%), Bharti Airtel (3.25%), Idea Cell (2.99%) and Tata Teleserv (1.83%).

Exide Industries gained 5.24%. The company''s net profit jumped 92.3% to Rs 149.67 crore on a 5.5% increase in sales to Rs 950.31 crore in Q2 September 2009 as compared to Q2 September 2008.

Suven Life Sciences Ltd ended up by 4.88%. The company''s clinical candidate SUVN-502 for Alzheimer''s Disease secured several product patents granted at all the key market countries.

Larsen & Toubro Ltd closed higher by 1.96% on report that Metallurgical, Material Handling & Water Operating Company - a part of its Construction Division has bagged orders aggregating Rs. 966 crore from Customers like Sterlite Industries India Ltd, Uttar Pradesh Jal Nigam & Gujarat Water Infrastructure Ltd.

Suzlon Energy Ltd fell by 1.44% despite it announced about the completion and commissioning of a 19.5 MW wind farm project for the Gujarat Mineral Development Corporation (GMDC) at the Maliya - Mivana site in Rajkot District of Gujarat.

Unitech Ltd spurted by 4.36% after the company announced that it sold property worth Rs. 4,000 crore in the March to September period.

Areva T&D Ltd gained 0.17% on announcement that it won an order worth approximately Rs. 150 crore from the Power Grid Corporation of India Ltd for a 765 kV extra high voltage substation.

FCS Software Solutions gained 3.75%. The company has successfully inaugurated its subsidiary in Middle East, Ras Al Khaimah - free Trade Zone (RAK) and entered into agreement with MACNES in UAE for promoting and selling its services to their clients.

Tata Communications dropped by 3.35%. The company announced that it will start delivering capacity into Australia via the privately owned PIPE Pacific 1 (PPC-1) cable system. PPC-1 is a new two-fiber-pair cable system connecting the territory of Guam to Sydney, Australia.

Pre-Diwali fireworks on street; Sensex, Nifty hit 17-month highs

The key benchmark indices surged for the second day in a row as a rally in global stocks, strong response to the initial public offer of Indiabulls Power, stronger-than expected Q2 results from housing finance major HDFC and healthy Q2 outcome from HDFC Bank, boosted market sentiment. The barometer index BSE Sensex and the 50-unit S&P CNX Nifty today, 14 October 2009, hit their highest closing levels in nearly 17 months.

The Sensex jumped 204.40 points or 1.2%, off close to 40 points from the day's high and up close to 120 points from the day's low. A rally in US index futures triggered by a strong guidance from chip major Intel, aided the rally on the domestic bourses. The market breadth was strong.

As per provisional data, foreign funds today, 14 October 2009, mopped up stocks worth a net Rs 1468.82 crore. Domestic funds sold shares worth a net Rs 196.91 crore

Index heavyweight Reliance Industries (RIL) edged higher in choppy trade. Oil exploration stocks gained whereas PSU OMCs fell as crude hit its highest level in 2009 on weak dollar. Metal and sugar stocks gained. India's largest engineering and construction firm by sales Larsen & Toubro rose on winning a large order. Other capital goods stocks also rose. But telecom stocks fell.

After a firm opening, the market surged in early trade on firm Asian stocks. The market was ranged bound in mid-morning trade. The market extended gains in early afternoon trade with the Sensex hitting a fresh intraday high. It came off the higher level later before regaining strength. The market pared gains after hitting a fresh intraday high in late trade.

Minister of State for Agriculture KV Thomas on Wednesday said there is no need to import foodgrains as the country has adequate stocks.

Industrial production (IIP) rose a robust 10.4% in August 2009, government data showed on Monday. 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%.

Arvind Virmani, chief economic adviser at the Finance Ministry, on Tuesday said the economy can expand 7% in 2009/10, and the Reserve Bank of India (RBI) must weigh the trade-off between growth and inflation when it reviews policy settings later this month. The forecast for the fiscal year ending March is higher than 6% estimated by the RBI and private analysts, and the 6.3% predicted by government's Planning Commission.

Planning Commission deputy chairman Montek Singh Ahluwalia said on Monday 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.

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.

Commerce and Industry Minister Anand Sharma said on Tuesday Indian exporters still face weak demand from Europe and the United States, so they are setting their sights on new markets. Many domestic sectors are experiencing double-digit growth despite the drop-off in exports, he said.

C. Rangarajan, chairman of the prime minister's Economic Advisory Council, today, 14 October 2009, said the Reserve Bank of India is unlikely to revise benchmark interest rates when it reviews monetary policy later this month. RBI holds its quarterly policy review on 27 October 2009. He said the economy would grow 6-6.5% with an upward bias in the year to March 31, 2010. Rangarajan forecast inflation to touch 5-6% by then.

He said that the Reserve Bank of India can continue with its present easy monetary stance as long as inflationary pressures are moderate. He also said the central bank would first have to stop injecting liquidity, and then consider draining off excess cash.

Meanwhile, the IPO of Indiabulls Power was subscribed 8.66 times at 16:00 IST on second day of the issue on Tuesday. 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.

European shares bounced back on Wednesday from the previous session's decline, with soothing earnings results from Intel and ASML prompting investors to pick up riskier assets such as equities. Key benchmark indices in France, Germany and UK were up by between 1.92% to 2.3%.

Industrial production in the 16-nation euro zone rose by a weaker-than-expected 0.9% in August compared to July, the statistics agency Eurostat reported Wednesday. Compared to the same month last year, production was down 15.4%. Economists had forecast a 1.1% monthly rise, while the year-on-year figure was in line with forecasts.

Asian stocks rose on Wednesday after a better- than-estimated sales forecast from Intel Corp. boosted technology shares, offsetting a decline among financial companies. Key benchmark indices in China, Hong Kong, South Korea, Singapore and Taiwan rose by between 1.17% to 1.95%.

China's exports declined at the slowest pace in nine months, helping government efforts to sustain the recovery in the world's third-biggest economy. Shipments dropped 15.2% in September 2009 from a year earlier, the customs bureau said compared with a 23.4% slide in August 2009.

Lending by Chinese banks totaled 516.7 billion yuan ($75.68 billion) in September 2009, accelerating from 410.5 billion yuan in new loans issued in August 2009, according to data released Wednesday by the People's Bank of China. The new lending brings total loans issued in the first nine months of the year to 8.65 trillion yuan ($1.27 trillion), a rise of 149.1% on year.

Japan's Nikkei average lost 0.16% on Wednesday, dented by a slide in bank shares such as Mizuho Financial Group after their US peers fell ahead of earnings reports from several major banks this week.

The Bank of Japan kept markets guessing on Wednesday on the future of its support for corporate finance, avoiding any reference to the measures in a statement after its latest policy review. The central bank had been tipped to decide whether it would start withdrawing support for corporate finance, despite government criticism that the economy was still unstable.

Although it made no reference to funding measures in its statement, the central bank repeated its assessment that financial conditions were increasingly showing signs of improvement. It left its policy rate unchanged at 0.10%, as a widely expected, and upgraded its view on the economy, saying it was recovering.

Trading in US index futures indicated Dow could gain 117 points at the opening bell today, 14 October 2009.

US stocks slipped on Tuesday as disappointing sales from Johnson & Johnson stirred jitters about the strength of earnings, snapping the S&P 500's six-day winning streak. The Dow Jones industrial average declined 14.74 points, or 0.15 % to end at 9,871.06. The Standard & Poor's 500 Index slipped 3 points, or 0.28% to 1,073.19. But the Nasdaq Composite Index inched up just 0.75 of a point, or 0.04 % to 2,139.89.

Johnson & Johnson beat Wall Street's earnings expectations, but reported revenue that was below forecasts, sending its shares down 2.4%.

Intel, which supplies chips to around 80% of the world's personal computers, provided a strong outlook for the rest of the year, even as third-quarter profits slid 7.8%. The results which hit the market after trading hours on Tuesday surpassed Wall Street's expectations, helped by a return of consumers to the PC market. Its shares gained 4.3% after-hours in the US, with other major tech stocks also higher.

A key data due later in the day today, 14 October 2009, is US retail sales for September 2009. A broad-based increase in sales would indicate consumers are becoming more confident that the economy is rebounding. A decline would show households are relying on stimulus measures to justify spending.

US government's program allowing consumers to trade in older models for new, more fuel-efficient ones ended in late August 2009, translating into a 35% drop in auto sales last month.

US Federal Reserve Vice Chairman Donald Kohn said on Tuesday the economy would likely be producing "well below" its potential for some time and that expectations of future inflation would more likely fall than rise

Closer 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.

The BSE 30-share Sensex rose 204.40 points or 1.2% to 17,231.11, its highest closing since 21 May 2008. The Sensex rose 247.92 points at the day's high of 17,274.59 in late trade. The barometer index rose 91.23 points at the day's low of 17,117.90 in early trade.

The S&P CNX Nifty rose 63.95 points or 1.27% to 5,118.20, its highest closing since 16 May 2008. It hit a high of 5,127.40 in late trade. Nifty October 2009 futures were at 5,120, at discount of 1.80 points as compared to the spot closing of 5,118.20. Turnover in NSE's futures & options (F&O) segment was Rs 65,953.48 crore, lower than Rs 72,005.84 crore on Monday, 12 October 2009.

BSE clocked a turnover of Rs 6861 crore, higher than Rs 5284.64 crore on Monday, 12 October 2009.

The market breadth, indicating the overall health of the market was strong. On BSE, 1675 shares advanced as compared with 1075 that declined. A total of 81 shares remained unchanged.

Among the 30-member Sensex pack, 25 rose while the rest fell.

The Sensex has risen 588.45 points or 3.53% in last two trading sessions. The Sensex is up 7,583.80 points or 78.61% in calendar year 2009 as on 14 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 9070.71 points or 111.15% as on 14 October 2009. FII inflow in the calendar year 2009 totaled Rs 62963.10 crore (till 12 October 2009).

Coming back to today's trade, the BSE Mid-Cap index rose 1.96% and the BSE Small-Cap index rose 1.54%. Both the indices outperformed the Sensex.

Sectoral indices on BSE displayed mixed trend. The BSE Metal index (up 5.27%), the BSE Capital Goods index (up 2.38%), the BSE Auto index (up 2.28%), the BSE PSU index (up 1.65%), the BSE Bankex (up 1.63%), the BSE Power index (up 1.6%), the BSE Consumer Durables index (up 1.51%), the BSE Healthcare index (up 1.44%), the BSE Realty index (up 1.44%), outperformed the Sensex.

The BSE Teck index (down 0.37%), the BSE FMCG index (up 0.47%), the BSE Oil & Gas index (up 0.52%), the BSE IT index (up 0.91%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 0.51% to Rs 2,178.20, extending Monday's 3.19% gain. It hit a high of Rs 2195 and a low of Rs 2153.10. RIL is in advanced talks to acquire refinery and petrochemical units in the US and Europe and could finalise a deal by end-2009, Maurice Bannayan, senior vice president at Reliance Industries said on Wednesday.

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.

Oil exploration stocks rose as the crude surged on Wednesday to a 2009 high of $75.12 a barrel after Oil Producing and Exporting Countries (OPEC) increased its world energy demand forecast and the weaker dollar boosted the appeal of commodities. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 1.09%. ONGC has bagged over a third of the 70 blocks offered under India's eighth New Exploration Licensing Policy (NELP 8), amid luke-warm response towards the bidding round. ONGC bid for 25 blocks and was awarded 11 offshore and two onshore concessions.

Cairn India rose 6.36%. Cairn India, a unit of Cairn Energy, won 2 offshore blocks in the auction. But, India's second biggest state-run oil exploration firm by revenue Oil India fell 0.35%. Oil India won 5 offshore blocks in the auction.

Nearly half of 70 blocks offered found no bidder, with 76 bids submitted for 36 exploration blocks, D.N. Narasimha Raju, joint secretary in the oil ministry said on Monday.

PSU OMCs fell as higher crude oil prices will increase under-recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. HPCL, BPCL and Indian Oil Corporation (IOC) fell by between 2.25% to 3.23%.

Telecom stocks dropped. India's largest cellular services provider by sales Bharti Airtel fell 3.25%. Bharti Airtel reported 10.32% decline in mobile user addition to 2.52 million mobile users in September 2009 over August 2009. For Bharti, this is the biggest month on month decline since the 22% drop the company saw in March 2005.

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 6.54% after the company was accused by a government-appointed auditors of under-reporting revenue to save on licence fees.

Reliance Communications (RCom) said it is in full compliance with all regulatory requirements in filing its financial statements. RCom has not received any communication from the Department of Telecom (DoT) on the special auditor's report, the company said in a statement.

Telecom stocks had risen recently 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.

Metal stocks rose on strong domestic demand. India's largest private sector steel maker by sales Tata Steel rose 4.69%. 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, National Aluminum Company, Hindalco Industries, Sterlite Industries rose by between 2.6% to 5.38%.

Steel Authority of India rose 2.77% on reports the company is considering buying coking coal mines in Australia, Indonesia and Mozambique with an Indian government joint venture.

India's largest engineering and construction firm by sales Larsen & Toubro rose 1.96% after it got orders worth Rs 966 crore.

India's largest power equipment maker by sales Bharat Heavy Electricals rose 3.07% on expectations of good Q2 September 2009 result. The company's Q2 result is due on 23 October 2009. Meanwhile, as per reports the company may set up a factory with Indian Railways to manufacture electrically powered trains.

Among other capital goods stocks, BEML, ABB, Praj Industries and Thermax, rose by between 1.07% to 5.75%.

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 6.12%. 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 0.2%. 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.

India's largest truck maker by sales Tata Motors rose 4.07%. Tata Motors is planning to ramp up production of its Nano, billed as the world's cheapest car, by a fifth this month, Rajiv Dube, head of the company's passenger car business said on Wednesday. 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%.

Total domestic automobile sales in the country in the first half of the financial year 2009-10 rose by 14.51% year-on-year to 57,82,920 units, according to automobile sales figures released by the Society of Indian Automobile Manufacturers (Siam). The jump in sales for the April-September period came from the double-digit growth posted by the passenger vehicle segment (comprising cars and sports utility vehicles) which grew by 13.46%, by the 15.68% spurt in two-wheeler sales and by an increase of 12.37% in sales of three-wheelers

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, Valecha Engineering, Era Infra Engineering rose by between 1.37% to 12.03%.

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

Shares of diversified firm Grasim fell 0.53%. 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 4.25%. 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 Ambuja Cements fell by between 0.73% to 3.79%.

IT stocks rose on strong third quarter result from US chip major Intel Inc. IT bellwether Infosys Technologies rose 0.71% as its ADR rose 0.93% on Tuesday. 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, however, said strengthening rupee is a big concern for its earnings. The rupee climbed to one-year highs on Wednesday buoyed by the dollar's broad-based fall and a stronger start to the stock market that could trigger more capital inflows. The partially convertible rupee was at 46.09, above its Monday's close of 46.48/49. 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 2.08%. A total of ten brokerages expect a between 6.8% fall to a 4.9% growth in TCS' consolidated net profit as per US accounting standards at between Rs 1416.30 crore to Rs 1595.40 crore in Q2 September 2009 over Q1 June 2009. Their expectations peg a between 0.4% to 3.8% growth in revenue at between Rs 7237.70 crore to Rs 7478.40 crore in Q2 September 2009 over Q1 June 2009. TCS unveils Q2 results on Friday, 16 October 2009

India's third largest software services exporter Wipro rose 1.28% even as its ADR fell 0.44% on Tuesday.

Power stocks rose on strong response to Indiabulls Power's IPO. Tata Power Company, Reliance Infrastructure, and CESC rose by between 1.81% to 3.57%.

India's largest thermal power generator by sale NTPC rose 2% after the company it has signed a joint venture agreement with state-run Coal India to develop the Brahmini and Chichro Patsimal coal mining blocks in eastern India. The mines will supply coal to NTPC's projects at Farakka and Kahalgaon.

After meeting the coal requirements of NTPC's projects, the JV may also consider setting up an integrated thermal power plant, NTPC said in a statement

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 4.36%.

Bank stocks extended Monday's gains 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.

Indian banks can put bonds equal to 25% of the value of deposits in their HTM accounts. The market expectations is for an increase in the ceiling by up to 2 percentage points, possibly at a quarterly monetary policy review on 27 October 2009

India's largest bank by net profit and branch network State Bank of India rose 4.46%. As per reports, 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, Bank of India, Punjab National Bank, Union Bank of India, Bank of India and Bank of Baroda, rose by between 0.01% to 6.54%.

India's largest private sector bank by net profit ICICI Bank rose 0.07% as its ADR rose 0.36% on Tuesday. 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 0.13% after bank said during market hours today its net profit rose 30.2% to Rs 687.46 crore in Q2 September 2009 over Q2 September 2008. The results were more or less in line with market expectations.

Axis Bank rose 1.91% 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 on Monday were more or less in line with market expectations. The stock rose 1.66% on Monday.

India's largest dedicated housing finance firm HDFC rose 1.5%. HDFC, after market hours on Monday said net profit rose 24.27% to Rs 663.94 crore in Q2 September 2009 over Q2 September 2008. The results beat market expectations. The stock had risen 2.41% on Monday ahead of the results

Sugar stocks surged on reports India's sugar output fell sharply in the year ended September 2009 on lower area under cultivation. Bajaj Hindustan, Shree Renuka Sugars, Dhampur Sugars and Balrampur Chini rose by between 4.74% to 10.93%.

With a high demand-supply gap, the country was forced to import 5 million tonnes of raw sugar - the same amount it exported a year ago - sparking a price rally in the global market.

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 1.09% to 7.22%.

Newsprint prices have slumped over the past few months. Current newsprint prices of $435 a tonne are down 44% from their most recent peak in November 2008 of around $775 a tonne. 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.

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 0.17% to 1.77%.

Fertiliser shares rose on revival in India's annual monsoon since mid-August 2009. Nagarjuna Fertilisers, Chambal Fertilisers & Chemicals, GSFC, GNFC, National Fertilzer rose by between 0.28% to 1.61%. Fertilizer sales are directly dependent on monsoon. A bountiful monsoon boosts sales whereas a drought hits sales adversely.

Cals refineries clocked highest volume of 5.12 crore shares on BSE. Ispat Industries (1.14 crore shares), Unitech (1.12 crore shares), Teledata Infomatics (0.96 crore shares) and Sesa Goa (0.96 crore shares) were other volume toppers in that order.

Sesa Goa clocked highest turnover of Rs 328.03 crore on BSE. Reliance Capital (Rs 166.47 crore), Jindal Steel & Power (Rs 163.28 crore), Tata Steel (Rs 157.55 crore), Reliance Industries (up 155.52 crore) were other turnover toppers in that order.

Sensex shows strength, surges by 204 points

The Sensex continued its pre-Diwali celebrations for the second trading session in trot and registered massive gains on the back of the better-than-expected Q2 numbers announced today along with positive cues from the Asian and European indices.

On Tuesday, the US market had closed almost flat with marginal loss, however European markets (FTSE 100) today opened higher and the index was trading stronger at 5243 that is about 89 points over its previous closing. Besides, the Asian indices that rallied strongly today ended the day with decent gains. Nikkei 225 fell by 16 points and was the only Asian index that ended the day in red, while all the other Asian indices closed with massive gains. Hang Seng, Jakarta Composite, Taiwan Weighted and Straits Times ended the day 1.31 to 1.95% higher over their previous closing.
On the back of strong Asian cues, the Sensex opened at 17118, 91 points higher over previous closing. The bellwether was pushed higher on the positive flow of Q2 numbers announced during the course of the day along with the strong opening of the European indices to hit the day’s high of 17275. Among the results announced today, HDFC Bank staged an impressive performance, wherein its bottom-line grew by 30% mainly boosted by the massive surge in its non-interest income. The Bank’s robust Q2 performance helped the banking and financial stocks to surge on the bourses. The Sensex ended the day at 17231 with strong gains of 204 points, while Nifty rose by 64 points to end the session at 5118. The Singapore Nifty closed 68 points higher to its previous day’s closing settlement price. Advancing shares outnumbered the declining stocks on the BSE. Out of the 2,840 stocks traded on the stock exchange, 1,685 stocks advanced, whereas 1,075 stocks declined. Eighty stocks ended unchanged.

All the 13 sectoral indices on the BSE except the BSE TECk, which ended the day with a marginal loss of 0.37%, ended positive. Among the gainers, the BSE Metal surged the most posting gains of 5.27% followed by the BSE CG and the BSE Auto that jumped by more than 2% each, while BSE PSU, BSE Bankex, BSE Power, BSE CD, BSE HC, and BSE Realty rose by over 1% each. On the stocks’ front, PTC India topped the chart of gaining stocks surging by 20.82% to Rs105.05 followed by Sesa Goa that rose by 13.89% to Rs341.15, while Jindal Steel, GVK Power and Infrastructure, Punj Lloyd, Hindustan Construction Company and Cadila Healthcare jumped over 7% each. Among losers, Reliance Communications fell the most by 6.54% to Rs231.60 followed by Jet Airways that declined by 6.44% to Rs400.20. Ultratech Cement and Indiabulls Real Estate lost over 4% each. The stocks losing over 3% in today's trade included Ambuja Cement, Tata Communications, Bharti Airtel, Hindustan Petroleum Corporation and Bharat Petroleum Corporation.

On the turnover front, Over 1.14 crore shares of Ispat Industries changed hands on the BSE followed Unitech by (1.12 crore shares), Sesa Goa (0.96 crore shares), PTC India (0.94 crore shares) and Suzlon Energy (0.86 crore shares).

BSE Bulk Deals to Watch - Oct 14 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
14/10/2009 532799 ACKRUTI INTERNATIONALSYNTHFABSP LTD S 400000 537.31
14/10/2009 532399 ADLABS FILMS RELIANCE CAPITAL LTD B 2400000 355.00
14/10/2009 532399 ADLABS FILMS AAA ENTERTAIMENT PVT LIMITED S 2400000 355.00
14/10/2009 531761 AMULYA LEAS AUREOLE IMPEX PVT. LTD B 52700 14.05
14/10/2009 531761 AMULYA LEAS SAROJ DEVI S 52700 14.05
14/10/2009 515055 ANANT RAJ IN DEUTSCHE SECURITIES MAURITIUS LIMITED B 1780000 140.00
14/10/2009 530355 ASIAN OILFIE EUREKA CREDIT FINANCE PRIVATE LIMITED B 317000 55.01
14/10/2009 530355 ASIAN OILFIE GURJARI FINANCE & LEASING P LT B 186000 58.85
14/10/2009 530355 ASIAN OILFIE KRISHANKANT S 186000 58.85
14/10/2009 530355 ASIAN OILFIE CONSOLIDATED SECURITIES LIMITED S 250000 55.21
14/10/2009 530355 ASIAN OILFIE CONSOLIDATED SECURITIES LTD. S 255388 55.28
14/10/2009 531337 CHAN GUIDE I KAMAL JAJOO S 30000 89.59
14/10/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 37500 20.55
14/10/2009 532666 FCS SOFTWARE TRANSGLOBAL SECURITIES LTD. B 106990 129.81
14/10/2009 532666 FCS SOFTWARE TRANSGLOBAL SECURITIES LTD. S 106990 129.84
14/10/2009 532666 FCS SOFTWARE PRAKASHBHAINARSINHBHAIPATEL S 75648 130.02
14/10/2009 531863 GEEKAY FINAN RAJESH C R NAIR B 158830 350.24
14/10/2009 531863 GEEKAY FINAN PRAMODKUMARAGARWAL S 99000 350.25
14/10/2009 500163 GODFREY PHIP THE ROYAL BANK OF SCOTLAND PLC AS TRUSTEE OF JUPITER INDIA FUND B 55000 1804.96
14/10/2009 500163 GODFREY PHIP INDIA MAN FUND MAURITIUS FUND S 55000 1805.00
14/10/2009 531439 GOLDSTON TEC HEMANTMADHUSUDANSHETH B 100000 27.60
14/10/2009 531439 GOLDSTON TEC PREMMOHANLALPARIKH B 125000 27.50
14/10/2009 531111 GOTHI PLASCO SANJAY GOTHI HUF B 86200 4.97
14/10/2009 531111 GOTHI PLASCO G K K INVESTMENT COMPANY PVT S 86200 4.97
14/10/2009 508918 GREYCELLS EN AVON SYNTHEICS LIMITED B 25000 64.09
14/10/2009 508918 GREYCELLS EN INDIA MAX INVESTMENT FUND LTD B 50000 62.95
14/10/2009 508918 GREYCELLS EN VINAYAK NARAYAN POI S 120849 63.45
14/10/2009 524314 GUJRAT TERCE URVASHIUPATEL B 25000 11.42
14/10/2009 524314 GUJRAT TERCE SETU SECURITIES PVT LTD B 30000 11.42
14/10/2009 524314 GUJRAT TERCE PATELMUKESHBHAI B 40000 11.42
14/10/2009 524314 GUJRAT TERCE GANDHIDHANPAL B 25000 11.42
14/10/2009 524314 GUJRAT TERCE MEHTACHHAYA B 50000 11.42
14/10/2009 524314 GUJRAT TERCE VARSHA JAGDISHBHAI PATEL B 27000 11.42
14/10/2009 524314 GUJRAT TERCE KETANMAHENDRABHAISHAH B 50000 11.42
14/10/2009 524314 GUJRAT TERCE BAHUBALISHANTILALSHAH S 250000 11.42
14/10/2009 524314 GUJRAT TERCE BHAIDAS RUPESHBHAI MEHTA S 75000 11.42
14/10/2009 524669 HESTER BISC VIMLAJAJOO S 34197 87.60
14/10/2009 504786 INV PRECIS C VINODRAHEJAP B 30015 116.18
14/10/2009 504786 INV PRECIS C VINODRAHEJAP S 36490 117.58
14/10/2009 504786 INV PRECIS C HITESHSHASHIKANTJHAVERI S 37758 118.01
14/10/2009 506522 J L MORISO I JAIDEEPHALWASIYA S 7835 389.63
14/10/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD B 190000 3.55
14/10/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD S 400000 3.55
14/10/2009 507981 JINDAL HOTEL HSANTOSH S 20000 33.26
14/10/2009 523810 KALE FILMS BANK OF INDIA S 276050 2.00
14/10/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 59223 7.08
14/10/2009 530255 KAY POW PAP SATISH KUMAR GUPTA B 134500 7.35
14/10/2009 530255 KAY POW PAP B.S.KHANDELWAL B 57710 7.00
14/10/2009 530255 KAY POW PAP KAUSHALYA GARG S 60000 7.01
14/10/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 59223 7.19
14/10/2009 530255 KAY POW PAP SATISH KUMAR GUPTA S 134500 7.00
14/10/2009 530255 KAY POW PAP B.S.KHANDELWAL S 64054 7.41
14/10/2009 531366 KOHINOOR BRO VINODAMRATLALNAAI B 711086 8.29
14/10/2009 532901 KOUTONS RET PASSPORT INDIA INV MAU LTD S 411500 361.83
14/10/2009 509048 LANCOR HOLDS Sundaram BNP Paribas Mutual Fund B 600000 103.03
14/10/2009 509048 LANCOR HOLDS MANMOHANDAMANI B 282455 106.99
14/10/2009 509048 LANCOR HOLDS MANMOHANDAMANI S 462000 103.68
14/10/2009 509048 LANCOR HOLDS KIRANKUMARMOOLCHANDJI S 150000 103.50
14/10/2009 530273 LIBERTY PHOS HITESHSHASHIKANTJHAVERI B 130276 33.78
14/10/2009 500256 LOK HOUSI CO ANGEL INFIN PRIVATE LIMITED B 399899 41.72
14/10/2009 500256 LOK HOUSI CO ANGEL INFIN PRIVATE LIMITED S 236000 41.87
14/10/2009 517206 LUMAX INDUST I G E INDIA LTD B 74485 173.02
14/10/2009 517206 LUMAX INDUST PARSHURMAGSHINDE S 75700 173.07
14/10/2009 531515 MAHAN INDUST JIGNESH C SHAH B 40000 5.29
14/10/2009 531515 MAHAN INDUST JASMINSBAJORIYA B 50000 5.29
14/10/2009 531515 MAHAN INDUST KALPANA JAYESH MOR S 50000 5.02
14/10/2009 531515 MAHAN INDUST JAYESHRAMANLALMOR S 50000 5.23
14/10/2009 531515 MAHAN INDUST ANKIT JAYESH GANDHI S 75000 5.28
14/10/2009 503776 MODIPON LTD ASHOKA MERCANTILE LTD B 49950 19.80
14/10/2009 503776 MODIPON LTD BHUPENDRASANGHAVI S 50000 19.80
14/10/2009 531096 MOUNT EVE MI MANJULAJAYNTILALJAIN S 259152 70.71
14/10/2009 511523 NIYAT INDUST SHAMSHUDIN SADRUDIN PANJWANI S 200000 1.10
14/10/2009 531496 OMKAR OVERSE RAVI VASANTBHAI PAWAR B 45211 77.25
14/10/2009 531496 OMKAR OVERSE PRAKASHKUMARDEVSHILALSHETH B 29000 77.25
14/10/2009 531496 OMKAR OVERSE VIJAY VELJIBHAI PADHARIA B 51000 76.50
14/10/2009 531496 OMKAR OVERSE SUMIT CHAMPALAL AGARWAL S 55000 76.97
14/10/2009 531496 OMKAR OVERSE SATYABHAMA CHAMPALAL AGARWAL S 46000 76.83
14/10/2009 531496 OMKAR OVERSE VIJAY VELJIBHAI PADHARIA S 51000 77.26
14/10/2009 511702 PARSHART INV PRADIPBHAI RAMBHAI PATEL B 94799 30.00
14/10/2009 511702 PARSHART INV KRUNALGOPALDASRANA S 16000 30.00
14/10/2009 517417 PATEL AIRTEM PANEMANGALORESURENDRAPAI S 50249 60.12
14/10/2009 502587 RAMA PUL PAP MUMBAI STK. BROKING PVT. LTD. B 55584 18.46
14/10/2009 502587 RAMA PUL PAP GOODDEAL PROPERTIES PRIVATE LIMITED S 63370 18.50
14/10/2009 590077 RANKLIN SOLU RAGHU CHEKKA S 31646 36.30
14/10/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PRIVATE LIMITED B 62100 19.18
14/10/2009 531952 RIBA TEXTILE SUNEELCHINAMANIBHENDE B 60000 21.08
14/10/2009 531952 RIBA TEXTILE BHAVINYMEHTA B 59074 19.57
14/10/2009 531952 RIBA TEXTILE KUMKUM STOCK BROKER PRIVATE LIMITED S 74649 19.09
14/10/2009 531952 RIBA TEXTILE J V STOCK BROKING PRIVATE LIMITED S 35004 20.79
14/10/2009 531952 RIBA TEXTILE BHAVINYMEHTA S 52279 20.77
14/10/2009 531901 SAARC NET GOVIND SHARDA B 527735 2.37
14/10/2009 506172 SAMPADA CHEM SHREE SATYANARAIN PROPERTIES PRIVATE LTD S 25000 33.20
14/10/2009 500389 SILVERLINE T ANGEL INFIN PRIVATE LIMITED B 359700 6.58
14/10/2009 500389 SILVERLINE T JMP SECURITIES PVT LTD B 400000 6.57
14/10/2009 500389 SILVERLINE T COPTHALL MAURITIUS INVESTMENT LIMITED S 488678 6.44
14/10/2009 506003 SUDAL INDUST SETU SECURITIES PVT LTD B 243745 57.94
14/10/2009 506003 SUDAL INDUST KISHANMOHTA B 25000 53.45
14/10/2009 506003 SUDAL INDUST SOHINI DILIP BASTAWALA B 50000 57.62
14/10/2009 506003 SUDAL INDUST BP FINTRADE PRIVATE LIMITED B 28546 57.37
14/10/2009 506003 SUDAL INDUST KRISHNA BASTAWALA TRUST B 25000 53.45
14/10/2009 506003 SUDAL INDUST SETU SECURITIES PVT LTD S 219637 57.06
14/10/2009 506003 SUDAL INDUST HEMANT KUMAR GUPTA S 31400 59.05
14/10/2009 506003 SUDAL INDUST SANTOSHNARAYANRATHI S 25000 58.88
14/10/2009 506003 SUDAL INDUST PURVESHMUKESHKUMARSHAH S 25000 59.05
14/10/2009 506003 SUDAL INDUST BP FINTRADE PRIVATE LIMITED S 28545 55.20
14/10/2009 526133 SUPERTEX IND RESHMANAYANSHAH B 498978 4.30
14/10/2009 526133 SUPERTEX IND S N INVESTMENT B 550000 4.49
14/10/2009 526133 SUPERTEX IND SUPER INFINCON PVT LTD S 1099796 4.47
14/10/2009 513597 SURANA INDS KAMOD DEVI BACHHAWAT B 110000 170.86
14/10/2009 513597 SURANA INDS BHARAT NIHALCHAND SHAH S 116176 171.18
14/10/2009 517530 SURANA TELEC CASPIAN PROJECTS PRIVATE LIMITED B 126000 47.13
14/10/2009 532358 TELE DATA IN JMP SECURITIES PVT LTD B 1647352 8.84
14/10/2009 532358 TELE DATA IN ANGEL INFIN PRIVATE LIMITED S 1004425 8.40
14/10/2009 532358 TELE DATA IN JMP SECURITIES PVT LTD S 1192952 8.75
14/10/2009 507458 UNITED BREWR PLATINUM INVESTMENT MANAGEMENT LTD A/C PLATINUM INTERNATIONL FUND B 640000 218.00
14/10/2009 507458 UNITED BREWR SR PHOENICIA MAURITIUS LTD CLASS A PHOENICIA PORTFOLIO S 787600 218.00
14/10/2009 526987 URJA GLOBAL ARTLINE VINIMAY PVT LTD S 20000 37.65
14/10/2009 530459 VALSON IND ROHNILBORADIA S 19380 88.46
14/10/2009 511147 WALL STREE F VIVEKMEHROTRA B 63228 61.58
14/10/2009 531249 WELL PACK PA PANDYA YAMINIBEN M B 25585 270.36
14/10/2009 511246 WHITE LION A RAMESHGGOKANI B 31661 2.75
14/10/2009 511246 WHITE LION A HIMATPARSHOTAMBHAIJATANIA S 22000 2.69

Pre Session Commentary - Oct 14 2009

Today domestic markets are likely to open positive as Asian markets are trading positive with strong gains. However, mixed trade in US market may pull the market down that will be followed by a range bound volatile session. On could expect a rebound in the latter trading hour that would also bring some profit booking pressure as well. Today domestic markets are likely to trade range bound with positive bias.

On Monday, domestic market closed spectacularly higher after intraday volatility. Tracking the firm European markets, higher US Index Futures, better than expected Industrial output data and some amount of optimism coming from Reliance business house uplifted the bourses. A strong response to IPO of Indiabulls power which was oversubscribed within half an hour of opening of the issue also lifted sentiments. Prime Minister''s Manmohan Singh statement on 11 Oct’09 that the economic stimulus will continue, aided the rally. Net-net it was a phenomenal day for the market. From the sectoral front, investors’ on-loaded position across the sectors. Consumer Durable, IT, Bank, Oil & Gas, Teck, FMCG, Metal and Realty stocks contributed to trade higher by 3.72%, 2.94%, 2.63%, 2.35%, 2.45%, 2.25%, 2.04% and 1.48% respectively.

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.

On Tuesday, the US stock market closed lower after its six-session of consecutive gains. Despite better-than-expected data from pharmaceutical giant Johnson & Johnson (JNJ) and wakening dollar, the market could not hold positive. The dollar neared to 52-weeks lows early this session, however investors were eyeing on third quarter numbers from JNJ which reported earnings of $1.20 per share and disclosed an increased earnings outlook of $4.54 to $4.59 per share for fiscal 2009. News that shares of Goldman Sachs were downgraded by Meredith Whitney Advisors, added some amount of nervousness. Materials and Telecom stocks showed some strength after recovering from morning lows.
Gold prices spurted to new record highs of $1,069.70 per ounce in morning trade, but saw some of those gains pared off before settling with a 0.7% gain at $1,064.60 per ounce. Materials, Consumer Durables and Telecom were the leaders of the day with respective gains of 0.5%, 0.4% and 0.4% respectively. However, Financials, Health Care, Utilities and Consumer Staples were the losers with losses of 1.1%, 1.0%, 0.6% and 0.2% respectively among others. US light crude oil futures for November delivery closed 1.2% higher at $74.15 per barrel, on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) ended with loss of 14.74 points at 9,871.06. NASDAQ index climbed 0.75 points to 2,139.89 and the S&P 500 (SPX) closed lower by 3.00 points at 1,073.

Indian ADRs ended mixed on Tuesday. In the IT space, Wipro was down 0.44% and Patni Computers was down 0.27% while Infosys was up 0.93% and Satyam Computers was unchanged at $ 6.26. In the telecom space, MTNL was up 0.28% and Tata Communication was up 1.73%. In the banking space, HDFC Bank was up 0.27% and ICICI Bank was up 0.36%. In other sectors, Tata Motors was down 1.64%, Sterlite Industries was down 0.69% while Dr Reddy''s Labs was up 0.14%.

The FIIs on Monday stood as net buyers in equity and debt. Gross equity purchased stood at Rs. 3,282.50 crore and gross debt purchased stood at Rs. 511.80 crore, while the gross equity sold stood at Rs. 3,031.80 crore and gross debt sold stood at Rs. 277.90 crore. Therefore, the net investment of equity and debt reported were Rs. 250.70 crore and Rs. 233.90 crore respectively.

On Monday, the partially convertible rupee ended at 46.48/49 per dollar, 0.2% weaker than previous closing at 46.40/42 per dollar. Better-than-expected industrial data added to signs the rebound in economy and the stock market’s single biggest gain in seven weeks offset the impact of broad-based dollar strength. The rally in rupee was paused as banks bought dollars noting its fall versus major units.

On BSE, total number of shares traded were 40.46 crore and total turnover stood at Rs. 5,284.64 crore. On NSE, total number of shares traded were 71.40 crore and total turnover was Rs 15,765.64 crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 38476354 shares, followed by Bharti Airtel with 14215161, Reliance Communication with 13903094, Suzlon Energy with 13023053, Idea Cellular with 7665984 and Hindalco with 7461726 shares.

On NSE Future and Options, total number of contracts traded in index futures was 732803 with a total turnover of Rs. 17,425.96 crore. Along with this total number of contracts traded in stock futures were 539313 with a total turnover of Rs. 17,983.83 crore. Total numbers of contracts for index options were 1374503 with a total turnover of Rs. 34,572.43 crore and total numbers of contracts for stock options were 62004 and total turnover was Rs 2,023.62 crore.

Today, Nifty would have a support at 4,918 and resistance at 5,010 and BSE Sensex has support at 16,780 and resistance at 16,990.

Expensive thrills…enjoy the ride!

Stocks are only cheap if they are going higher after you buy them.

There is no stopping the Gold bulls, with the precious metal touching a new record high. The flip side is that the yellow metal is slipping out of the grasp of common man in India. The other concern gaining currency is with regard to asset price inflation. Ironically, gold is seen as a hedge against inflation. That reminds us that crude oil is hovering around US$75 a barrel. Inflation back home is likely to spike further and might just force the RBI to hike rates earlier than anticipated.

Today, we expect the market to extend Monday’s rally, spurred by firm Asian markets. If the bulls manage to hold their sway there could be a bear squeeze. Liquidity is not an issue but valuation is. Though the undertone appears to be upbeat be careful of what you are buying. Results will have a say in near-term direction but one cannot afford to ignore the global cues. Stocks in the US and Europe struggled overnight amid nagging worries over the pace and strength of the economic recovery.

A survey shows that the Great Recession is over in the US. But, some experts warn that the housing sector could take a double dip and the recovery won’t be V shaped. It would be a more moderate rebound and deflation is bigger threat than inflation in western world.

Results Today: Ashapura Minechem, Bajaj Auto Finance, Bajaj Finserve, Concor, HDFC Bank, IndusInd Bank, Infotech Enterprises, Motilal Oswal Financial, Parsvnath, Rallis India and Sonata Software.

FIIs were net buyers in the cash segment on Monday at Rs9.63bn on a provisional basis. The local funds were net sellers at Rs2.74bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs3bn. On Friday, the foreign funds were net buyers of Rs2.5bn in the cash segment. Their net investments in Indian stocks this year has crossed US$12.8bn. Mutual Funds were net sellers at Rs2.88bn on Friday.

US shares struggled for direction and closed virtually flat on Tuesday, as weakness in the financial sector and disappointment about Johnson & Johnson's results hampered the Dow's attempt to reclaim 10,000.

The Dow Jones Industrial Average lost 14 points, or 0.1%, to 9,871.06. The S&P 500 index lost 3 points, or 0.3%, to 1,073.19 and the Nasdaq Composite index ended unchanged at 2,139.89.

Stocks slipped at the start as traders braced for the first big wave of quarterly results this week. Gold touched a fresh record high and the dollar weakened. Treasury prices rallied, sending yields lower. Stocks briefly turned higher in the late morning, before heading lower again.

Since bottoming at a 12-year low in March, the S&P 500 has gained nearly 59%, as of Monday's close.

Investors are feeling increasingly compelled to put cash into equities. Though the market has run ahead of fundamentals - both economic as well as corporate - strong liquidity will prevent any big falls.

The Dow has been making several attempts lately to surpass 10,000, a key psychological barrier. It last closed above 10,000 on Oct. 3, 2008.

US stocks had posted modest gains on Monday on a light news day as investors turned a little cautious after pushing the Dow and S&P 500 to fresh one-year highs. On Tuesday, the focus turned to the quarterly results.

On Tuesday, Johnson & Johnson became the second Dow component to report results. The drug and medical products maker reported higher quarterly earnings that beat estimates thanks to cost cutting and a one-time tax benefit. The company also reported weaker quarterly revenue that missed expectations.

J&J boosted its 2009 earnings guidance to a range of US$4.54 to US$4.59 per share, versus an earlier range that topped out at US$4.55 a share. Nonetheless, investors focused on the negative and shares fell 2.5%.

Other Dow gainers included Home Depot, Chevron, DuPont and Wal-Mart. Among the financials, Goldman Sachs slipped 1.5% after Merideth Whitney Advisors downgraded it to "neutral" from "buy." That pressured a number of other financial shares, including Dow components Bank of America, JPMorgan Chase and Travelers Companies.

Bank of America said that it will waive attorney-client privilege and hand over legal documents related to its controversial merger with Merrill Lynch. The company has been under pressure from regulators for months to provide more information on the purchase.

CIT Group tumbled 11.5% after the lender's CEO said he would resign by the end of the year.

Cisco Systems said that it is buying Starent Networks for US$2.9bn in cash. Starent makes gear that enables wireless carriers to tie their networks to the Internet.

Treasury prices rallied, lowering the yield on the 10-year note to 3.32% from 3.30% late on Friday, as bond markets were closed on Monday for Columbus Day.

Bond prices built on gains after Fed governor Donald Kohn said that while the pace of the economic recovery will pick up next year, the jobless rate will also keep rising, hitting 10% next year.

Treasury saw strong demand for its two debt auctions: US$30bn in 3-month notes and US$30bn in 6-month notes.

The dollar fell versus the euro and the yen.

US light crude oil for November delivery rose 88 cents to settle at US$74.15 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery rose US$7.50 to settle at US$1,065 an ounce, a record close.

After the close, Dow component Intel reported quarterly sales and earnings that topped estimates. The chipmaker also issued a bullish forecast, saying that it expects fourth-quarter revenue of between US$9.7bn and US$10.5bn vs. the US$9.51bn consensus. Intel also said that it expects gross margins, a key measure of profitability, in the 59% to 65% range versus the 56.7% consensus.

Dow component JPMorgan Chase reports results Wednesday morning. Reports are also due on September retail sales, August business inventories and September import and export prices.

European shares ended in the red amid uninspiring economic news. Major regional equity markets ended at annual highs on Monday but retreated on Tuesday. The pan-European Dow Jones Stoxx 600 index lost 1% to close at 241.94, although it remains up 22% year-to-date.

The ZEW German economic sentiment indicator showed an unexpected decline. In the UK, British consumer prices rose at their slowest annual pace in five years in September, government data showed Tuesday. See full story.

UK's FTSE 100 index declined 1.1% to settle at 5,154.15 while the German DAX index lost 1.2% to end at 5,714.31 and the French CAC-40 index fell 1.2% to 3,801.39.

Morning Report - Oct 14 2009

Morning Report - Oct 14 2009

Morning Research - Oct 14 2009

Morning Research - Oct 14 2009

Volatile streak may continue

The major US and European indices on Tuesday ended in the red. However, in today's trade, the Asian indices were trading stronger except for the Nikkei 225. Such mixed cues are expected to keep the Indian markets volatile. However the Q2 numbers may surprise the markets. The US market on Tuesday closed almost flat, while the European markets traded lower by 1%. However the Asian markets in today’s trade were giving a a strong performance. Amongst the Asian indices, except for Nikkei 225 that lost 0.25%, other major indices traded in green. The Shanghai Composite rose 2.10%, Straits Times were trading marginal higher by 0.23%, while Hang Seng and Taiwan Weighted recorded gains of 1.44% and 1.06% respectively. Among the local indices, the Nifty could test the 5150- 5230 range on the upside while on the down side it could find support at 4800 and 4660. The Sensex is likely to get support at 16450 and may face resistance at 17200.

On the back of weakness in the financial sector and the some disappointments on the quarterly results front, the US markets on Tuesday closed in red with marginal losses. Dow fell by 14.74 points to close at 9871.06, while S&P 500 declined by 3 points to 1073.19 and Nasdaq ended 0.75 points up at 2139.89. While the Singapore Nifty, in the today morning's trade was trading higher by 37 points over its previous settlement price.

Among the Indian ADRs trading on the US bourses, it was only Tata Motors, Wipro, and Rediff that closed in negative zone with the losses in the range of 0.44%-1.64%. The ADR of companies like Infosys, HDFC Bank, VSNL and ICICI Bank, MTNL gained over 0.27-1.73% each. While the ADR of Satyam remained unchanged.

In the commodity space, Crude oil prices advanced marginally, with the Nymex light crude oil for November series rose by $0.88 to close at $74.15 a barrel. While in the metals space, the Comex gold for December series advanced sharply by $7.50 to settle at $1065.00 a troy ounce.

Daily trend of FII/MF investment in equities

On October 12 2009, FIIs were net buyers of stocks to the tune of Rs250.70 crore (purchases worth Rs3282.50 crore and sales of Rs3031.80), while domestic mutual funds on October 09, 2009 were net sellers of stocks to the tune of Rs 288.50 crore (purchases worth Rs797.80 crore and sales of Rs1086.30 crore.

SGX Nifty in the positive

5,088.5 +33.5

Market may gain on positive Asia

The key benchmark indices may extend Monday's (12 October 2009) gains on positive Asia. The stock market remained closed on Tuesday, 13 October 2009, on account of assembly election in Maharashtra. Investors may take further cues from the ongoing Q2 September 2009 results of India Inc. HDFC Bank, IndusInd Bank, Motilal Oswal, Parsvnath Developers, Ashapura Minechem, Bajaj Finserv, Camlin, Can Fin Homes, Container Corporation of India, Gruh Finance, Infotech Enterprises, Rallis India, Sonata Software, Transformers & Rectifiers among others will announce their Q2 September result today.

Industrial production (IIP) rose a robust 10.4% in August 2009, government data showed on Monday. 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%.

India's economy can expand 7 % in 2009/10, and the Reserve Bank of India (RBI) must weigh the trade-off between growth and inflation when it reviews policy settings later this month, a top government adviser Arvind Virmani said on Tuesday. The forecast for the fiscal year ending March is higher than 6 % estimated by the RBI and private analysts, and the 6.3 % predicted by government's Planning Commission.

Planning Commission deputy chairman Montek Singh Ahluwalia said on Monday 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.

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.

Commerce and Industry Minister Anand Sharma said on Tuesday Indian exporters still face weak demand from Europe and the United States, so they are setting their sights on new markets. Many domestic sectors are experiencing "double-digit" growth despite the drop-off in exports, he said.

Meanwhile, the IPO of Indiabulls Power was subscribed 5.95 times on the first day of the issue on Monday. 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.

Asian stocks rose on Wednesday after a better- than-estimated sales forecast at Intel Corp. boosted technology shares, offsetting a decline among financial companies. The key benchmark indices in China, Hong Kong, South Korea, Singapore and Taiwan rose by between 0.22% to 1.93%.

China's exports declined at the slowest pace in nine months, helping government efforts to sustain the recovery in the world's third-biggest economy. Shipments dropped 15.2 % in September from a year earlier, the customs bureau said compared with a 23.4 % slide in August.

But, Japan's Nikkei average lost 0.25% on Wednesday, dented by a slide in bank shares such as Mizuho Financial Group after their U.S. peers fell ahead of earnings reports from several major banks this week.

U.S. stocks weakened on Tuesday as disappointing sales from Johnson & Johnson stirred jitters about the strength of earnings, snapping the S&P 500's six-day winning streak. The Dow Jones industrial average declined 14.74 points, or 0.15 % to end at 9,871.06. The Standard & Poor's 500 Index slipped 3 points, or 0.28 % to 1,073.19. But the Nasdaq Composite Index inched up just 0.75 of a point, or 0.04 % to 2,139.89.

Johnson & Johnson beat Wall Street's earnings expectations, but reported revenue that was below forecasts, sending its shares down 2.4 %.

Intel reported its third quarter earnings after markets closed. Both profit and revenue substantially outpaced expectations its third quarter revenue came in at above 9 billion dollars. The company forecasts fourth-quarter sales of around 10.1 billion dollars. It put its fourth-quarter gross margin at around 62%.

Back home, the key benchmark indices surged on Monday 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. The BSE 30-share Sensex rose 384.01 points or 2.31% to 17,026.67 on that day.

As per provisional data, foreign funds on 12 October 2009, bought equities worth a net Rs 963.13 crore. Domestic funds sold stocks worth a net Rs 274.88 crore

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.

Mercator Lines

We recommend a buy in Mercator Lines from a short-term horizon. It is perceptible from the charts of the stock that since its March low of Rs 21 the stock has been on an intermediate-term uptrend. However, after encountering resistance at Rs 76 in June, the stock went through a medium-term correction till the July low of Rs 42. Later, the stock resumed its uptrend, taking support in the Rs 42-45 band. In mid-September, it crossed the 21-day and 50-day moving averages and is currently trading way above them. On October 8, the stock jumped 9 per cent, accompanied by high volumes and began to shape a flag pattern. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI is on the brink of entering this zone. Both the daily and weekly moving average convergence and divergence indicators are hovering in positive territory. Taking into consideration that the stock’s intermediate-term uptrend-line is intact we are bullish from a short-term perspective. We expect it to move up until it hits our price target of Rs 72. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 61.5.

via BL

OPEC report pushes crude higher

Prices at highest level in almost two months

Crude prices ended higher at Nymex on Tuesday, 13 October, 2009. Though prices pared initial gains, still they managed to end higher at the end. Prices rose today as oil cartel OPEC increased its forecast for global oil demand.

On Tuesday, crude-oil futures for light sweet crude for November delivery closed at $74.15/barrel (higher by $0.88 or 1.2%). During intra day trading, it rose to a high of $74.85. Last 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 60.3% since then. Year to date, in 2009, crude prices are higher by 48.2%.

In the latest monthly report, the Organization of the Petroleum Exporting Countries on Tuesday raised its forecast for world oil demand by 200,000 barrels a day for both this year and 2010. After the revision, world oil demand in 2009 is expected to average 84.2 million barrels a day, which represents a decline of 1.4 million barrels from 2008 levels. In 2010, global oil demand is expected to average 84.9 million barrels a day, marking a growth of 700,000 barrels a day from 2009 levels.

Last Friday, 9 October, 2009, 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.

In the currency market on Tuesday, the dollar fell against most of its rivals. The euro climbed up substantially today. The dollar index, which measures the strength of the dollar against a basket of six other currencies, fell to fourteen month low figure.

Among other energy related products, November reformulated gasoline rose 3.28 cents, 1.8%, to $1.831 a gallon and November heating oil gained 2.9 cents, or 1.5%, to $1.9234 a gallon.

Also on Tuesday, November natural-gas futures fell 29.2 cents, or 6%, to $4.588 per million British thermal units.

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

At the MCX, crude oil for October delivery closed higher by Rs 18 (0.52%) at Rs 3,4257/barrel. Natural gas for October delivery closed lower by Rs 17 (7.5%) at Rs 210.8/mmbtu.

Yellow metal makes another new record

Rising oil and dropping dollar continue to boost prices

Precious metal prices higher on Tuesday, 13 October, 2009 and yellow metal marked another new record. Prices rose on Tuesday following rising crude price and depressed dollar which increased the appeal of precious metals as a hedge against inflation.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.

On Tuesday, gold for December delivery ended at $1,065, higher by $7.5 (0.7%) an ounce on the New York Mercantile Exchange. During intra day trading, gold price rose to a high of $1,068.4. For the week, gold ended higher by 4.3% last week. Year to date, gold prices are higher by 19.8%.

Gold ended September, 2009 higher by 5.9%. For the third quarter it ended higher by 8.7%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.

On Tuesday, Comex silver futures ended marginally higher by 2 cents at $17.84 an ounce. Last week, silver ended higher by 8.9%.

Silver ended 11.8% higher for September, 2009. Year to date, silver has climbed 58.2% this year. For 2008, silver had lost 24%.

In the currency market on Tuesday, the dollar fell against most of its rivals. The euro climbed up substantially today. The dollar index, which measures the strength of the dollar against a basket of six other currencies, fell to fourteen month low figure.

In the crude market today, crude oil touched almost $75 after a long time.

In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.

At the MCX, gold prices for December delivery closed higher by Rs 113 (0.7%) at Rs 16,036 per 10 grams. Prices rose to a high of Rs 16,048 per 10 grams and fell to a low of Rs 15,890 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed Rs 55 (0.2%) higher at Rs 27,498/Kg. Prices opened at Rs 27,431/kg and rose to a high of Rs 27,680/Kg during the day's trading

Asian stocks open in green

Asian stocks opened positive on Wednesday. Samsung Electronics, Asia`s biggest maker of chips, gained almost 1.5% after Intel`s forecast, which followed the close of US trading. Woolworths rose almost 1.5%, leading Australian retail shares higher after a consumer confidence index jumped.

Japanese benchmark index Nikkei 225 fell 26.10 points, or 0.26%, to trade at 10,050.46.

Hong Kong`s Hang Seng index gained 96.97 points, or 0.45%, to trade at 21,564.33.

China`s Shanghai Composite increased 38.97 points, or 1.33% to trade at 2,975.16.

Taiwan`s Taiex index rose 47.31 points, or 0.62%, to trade at 7,643.91.

South Korea`s Kospi index went up 17.04 points, or 1.05% to trade at 1,645.97.

Singapore`s Straits Times advanced 7.15 points, or 0.27%, to trade at 2,675.55. (7.40 a.m., IST)

SGX Nifty Live Update - Oct 14 2009

5,099.0 +44.0