Hero Honda

Hero Honda

BSE Bulk Deals to Watch - Oct 22 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
22/10/2009 513349 AJMERA OPG SECURITIES P LTD B 344940 305.05
22/10/2009 513349 AJMERA OPG SECURITIES P LTD S 344940 305.70
22/10/2009 513349 AJMERA JMP SECURITIES PVT LTD S 186977 309.44
22/10/2009 524760 ARVIND INTER SANJAY BUDHIA S 75000 15.93
22/10/2009 519485 ASIA IND NET ATUL NAGINBHAI CHAUHAN B 31507 9.51
22/10/2009 506285 BAYER CROP MERRILL LYNCH CAPITAL MARKETS ESPANA SA SV B 650000 425.00
22/10/2009 506285 BAYER CROP BIRLA SUN LIFE INSURANCE COMPANY LIMITED S 300000 425.00
22/10/2009 506285 BAYER CROP BAJAJ ALLIANZ LIFE NSURANCE COMPANY LTD S 354548 425.14
22/10/2009 524663 BHARAT IMUNO SHARAD KANTILAL SHAH S 300000 21.83
22/10/2009 590081 BRAHMANAND GOODNESS PVT. LTD. B 99210 8.62
22/10/2009 590081 BRAHMANAND ABHIYAN MERCHANT PVT LTD S 100000 8.62
22/10/2009 531682 CAT TECHNOL VINOD AMRATLAL NAAI B 349711 16.96
22/10/2009 531337 CHAN GUIDE I AMIT MHADYE B 35000 84.10
22/10/2009 531337 CHAN GUIDE I ALTRA CLEAN OPERATIONS S 49000 84.39
22/10/2009 533026 CHEMCEL PANDYA YAMINIBEN M B 145000 11.91
22/10/2009 533026 CHEMCEL LAXMAN DHIRUBHAI PARMAR B 158000 11.99
22/10/2009 533026 CHEMCEL KAYCEE SHARES BROKING PVT LTD B 500000 12.05
22/10/2009 533026 CHEMCEL SUNIL BHANDARI S 150250 12.10
22/10/2009 533026 CHEMCEL REKHA BHANDARI S 350000 12.05
22/10/2009 533026 CHEMCEL KAMLES H NAHAR S 200000 11.83
22/10/2009 526546 CHOKSI LABOR JAGDISH JAMAKAL MANDUKHANI B 86967 21.11
22/10/2009 526546 CHOKSI LABOR DHEERAJ LOHIA S 30000 21.13
22/10/2009 512093 CRANES SOFT SWISS FINANCE CORPORATION (MAURITIUS) LIMITED S 812475 39.71
22/10/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 36000 26.98
22/10/2009 532737 EMKAY GLOB F MELCHIOR INDIAN OPPORTUNITIES FUND S 162714 71.06
22/10/2009 533104 GLOBUS SPR TRANSGLOBAL SECURITIES LTD. B 117365 90.35
22/10/2009 533104 GLOBUS SPR OPG SECURITIES P LTD B 183550 93.57
22/10/2009 533104 GLOBUS SPR TRANSGLOBAL SECURITIES LTD. S 117365 90.64
22/10/2009 533104 GLOBUS SPR OPG SECURITIES P LTD S 183550 93.57
22/10/2009 513337 GUJ.TOOLROOM BLUEBERRY TRADING COMPANY PRIVATE LIMITED B 40000 10.26
22/10/2009 513337 GUJ.TOOLROOM DEVANG JAYANTKUMAR GADOYA S 44000 10.30
22/10/2009 532072 INTER DIGI FIRSTBIZ NETWORK PRIVATE LTD S 365818 3.08
22/10/2009 523467 JAI MATA GLA GROWMORE PROPERTIES PVT LTD S 97375 2.64
22/10/2009 509715 JAYSHRE TEA OPG SECURITIES P LTD B 66853 322.03
22/10/2009 509715 JAYSHRE TEA OPG SECURITIES P LTD S 66853 321.89
22/10/2009 506520 JAYSHREE CHE C R KALAVATHI B 30000 34.66
22/10/2009 532997 KSK ENERGY MORGAN STANLEY INVT MNGT INC A/C MORGANSTANLEYINDIA INVT FUND INC B 2948000 200.00
22/10/2009 532997 KSK ENERGY MORGAN STANLEY INVST MNGT INC A/C MORGAN STANLEY GROWTH FUND B 2680000 200.00
22/10/2009 532997 KSK ENERGY LB INDIA HOLDINGS MAURITIUS I LIMITED FDI A/C S 5370846 200.40
22/10/2009 532997 KSK ENERGY LB MAURITIUS IV LTD S 3192673 200.41
22/10/2009 532997 KSK ENERGY LB MAURITIUS III LTD S 3192673 200.39
22/10/2009 532997 KSK ENERGY LB MAURITIUS II LTD S 3192673 200.42
22/10/2009 532997 KSK ENERGY LB MAURITIUS I LTD S 3192673 200.41
22/10/2009 513605 LANCO INDUST TRINITY HOLDINGS LIMITED S 496443 44.55
22/10/2009 532654 MCLEOD RUSEL CAPITAL INTERNATIONAL EMERGING MARKETS FUND S 582222 205.64
22/10/2009 526263 MOLDTEK TECH MUPPA VENKAIAH B 29000 89.47
22/10/2009 504112 NELCO LIMITE HITESH SHASHIKANT JHAVERI B 286511 84.70
22/10/2009 504112 NELCO LIMITE BP FINTRADE PRIVATE LIMITED B 187015 84.65
22/10/2009 504112 NELCO LIMITE HITESH SHASHIKANT JHAVERI S 272840 84.45
22/10/2009 504112 NELCO LIMITE BP FINTRADE PRIVATE LIMITED S 190715 84.40
22/10/2009 524037 RAMA PHOS LT HARIBHAI TARABAI CHAUDHARI B 50000 25.95
22/10/2009 502587 RAMA PUL PAP BIL POWER LIMITED B 100000 24.51
22/10/2009 590077 RANKLIN SOLU MANSUKHLAL KOTHARI B 27500 36.00
22/10/2009 590077 RANKLIN SOLU JYOTHI G S 27174 36.00
22/10/2009 531646 RFL INTERNAT VIPUL BHARATBHAI SHAH S 29371 1.08
22/10/2009 506172 SAMPADA CHEM BHARAT VRAJLAL SHAH B 25000 33.90
22/10/2009 506172 SAMPADA CHEM SKYLAND SECURITIES PVT LTD S 25000 33.90
22/10/2009 531794 SESHACHAL PRABHULAL KARTIK SHAH S 31598 8.30
22/10/2009 500389 SILVERLINE T ANGEL INFIN PRIVATE LIMITED B 790662 6.50
22/10/2009 500389 SILVERLINE T JMP SECURITIES PVT LTD B 1871688 6.31
22/10/2009 500389 SILVERLINE T JMP SECURITIES PVT LTD S 2247464 6.35
22/10/2009 526133 SUPERTEX IND RAJENDRASINH SAJJANSINH RATHOD B 709369 4.41
22/10/2009 526133 SUPERTEX IND RAJENDRASINH SAJJANSINH RATHOD S 708369 4.43
22/10/2009 503657 VEER ENERGY AANGI SHARES & SERVICES PVT. LTD. S 287313 13.35
22/10/2009 503657 VEER ENERGY VAJSHAH SHARES & CONSULTANCY P S 300628 13.46
22/10/2009 531249 WELL PACK PA BUNIYAD CHEMICALS LTD S 50000 271.51
22/10/2009 511246 WHITE LION A RAMESH G GOKANI S 21500 3.48

NSE Bulk Deals to Watch - Oct 22 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
22-OCT-2009,AJMERA,Ajmera Realty & Inf I Ltd,OM INVESTMENTS,BUY,184574,306.24,-
22-OCT-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,BUY,45660,249.41,-
22-OCT-2009,EDSERV,Edserv Softsystems Limite,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,58757,252.82,-
22-OCT-2009,GLOBUSSPR,Globus Spirits Limited,SANJIV NANNITLAL PAREKH,BUY,100000,94.68,-
22-OCT-2009,GLOBUSSPR,Globus Spirits Limited,TRANSGLOBAL SECURITIES LTD.,BUY,115592,90.36,-
22-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,12035144,23.40,-
22-OCT-2009,JAYSREETEA,Jayashree Tea Ltd.,NIKON FINLEASE PVT. LTD,BUY,56007,315.25,-
22-OCT-2009,JAYSREETEA,Jayashree Tea Ltd.,RAMNISH KAPOOR,BUY,67451,321.01,-
22-OCT-2009,MAYTASINFR,Maytas Infra Limited,INDIA DISCOVERY FUND LIMITED,BUY,322321,155.60,-
22-OCT-2009,NELCO,Nelco Ltd.,BP FINTRADE PRIVATE LIMITED,BUY,165502,84.53,-
22-OCT-2009,NELCO,Nelco Ltd.,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,BUY,141372,84.42,-
22-OCT-2009,SASKEN,Sasken Commu Techno Ltd,ASHISH DHAWAN,BUY,157437,152.53,-
22-OCT-2009,SHRIRAMEPC,Shriram EPC Limited,INDEA LONG TERM OPPORTUNITIES MASTER FUND,BUY,954173,223.00,-
22-OCT-2009,AJMERA,Ajmera Realty & Inf I Ltd,OM INVESTMENTS,SELL,184574,306.63,-
22-OCT-2009,CRANESSOFT,Cranes Software Internati,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,1000000,39.55,-
22-OCT-2009,EDSERV,Edserv Softsystems Limite,BP FINTRADE PRIVATE LIMITED,SELL,60700,249.98,-
22-OCT-2009,EDSERV,Edserv Softsystems Limite,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,65257,252.11,-
22-OCT-2009,GLOBUSSPR,Globus Spirits Limited,SANJIV NANNITLAL PAREKH,SELL,162502,89.41,-
22-OCT-2009,GLOBUSSPR,Globus Spirits Limited,TRANSGLOBAL SECURITIES LTD.,SELL,115592,90.21,-
22-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,12182800,23.40,-
22-OCT-2009,JAYSREETEA,Jayashree Tea Ltd.,NIKON FINLEASE PVT. LTD,SELL,56007,315.23,-
22-OCT-2009,JAYSREETEA,Jayashree Tea Ltd.,RAMNISH KAPOOR,SELL,67352,318.54,-
22-OCT-2009,LANCOIN,Lanco Industries Ltd,TRINITY HOLDINGS LIMITED,SELL,760813,44.53,-
22-OCT-2009,MCLEODRUSS,Mcleod Russel India Limit,CAPITAL INTERNATIONAL EMERGING MARKETS FUND,SELL,600000,205.48,-
22-OCT-2009,NELCO,Nelco Ltd.,BP FINTRADE PRIVATE LIMITED,SELL,193475,84.43,-
22-OCT-2009,NELCO,Nelco Ltd.,DYNAMIC STOCK BROKING (I) PRIVATE LIMITED,SELL,165872,84.26,-
22-OCT-2009,SHRIRAMEPC,Shriram EPC Limited,GALLEON SPECIAL OPS MAS FD ASIAN CROSSOVER SP,SELL,950000,223.00,-
22-OCT-2009,XLTELENE,XL Telecom & Energy Ltd,SANSAR CAPITAL (MAURITIUS) LIMITED,SELL,200000,42.20,-

Post Session Commentary - Oct 22 2009

Indian market closed on a downbeat note tracking the weakness in the global markets and a surge in inflation figure above the 1% mark to 1.2%, which put pressures on the investors’ sentiments. The BSE Sensex closed below the 16,800 mark while Nifty below 4,990 mark. A steep fall in US market overnight due to disappointing economic reports and poor results along with heavy sell off across the Asian markets and weakness in the European markets weighed on the investors’ sentiments. After opening marginally higher, the market soon tumbled to drift downwards but gained some strength to cut off most of the initial losses after the early trend showed that Congress and NCP duo were leading in the assembly election in Maharashtra. But the weakness in the European market do the spoilsport that led the market to fresh day’s low in the afternoon trade.

The market witnessed high intraday volatility. The US stock market on Wednesday closed lower due to heavy selling pressures in the final hour. The financial stocks slipped under a strong fit of selling pressure despite strong earnings from Morgan Stanley and U.S. Bancorp. The downturn was across the board and left many of the major sectors to settle at session lows. Even energy stocks couldn’t hold their gains and closed negative. Energy stocks had been in limelight by strong oil prices, which to $82 per barrel mark following the latest oil inventory data.

On the domestic front, the wholesale price index surged to 1.2% for the week ended October 10, 2009 from 0.92% in the previous week. The wholesale price index for all commodities stood at 242.2, up 0.1 per cent from a week earlier. Moreover, the Prime Minister’s Economic Advisory Council (PMEAC) projected that India’s economy might grow by 6.5 per cent in 2009-10 and even touch 6.75 per cent, despite poor monsoon. However, the panel said the growth was not likely to be lower than 6.25 per cent. PMEAC has projected the agriculture sector to fell by 2 per cent as against 1.6 per cent growth in the previous year while the services sector would enhance by 8.2 per cent as against 9.7 per cent growth last year. The government today will unveil the inflation data.

Among the Sensex pack 23 stocks ended in red territory and 7 in green territory. The market breadth indicating the overall health of the market remained negative as 1875 stocks closed in red while 871 stocks closed in green and 79 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 219.43 points or (1.29%) at 16,789.74 and NSE Nifty ended down by 75 points or (1.48%) at 4,988.60. BSE Mid Caps and BSE Small Caps closed with losses of 139.73 points and 152.62 points at 6,444.27 and 7,647.77 respectively. The BSE Sensex touched intraday high of 17,031.54 and intraday low of 16,721.26.

Losers from the BSE Sensex pack are JP Associates (6.84%), DLF (4.93%), ICICI Bank (4.08%), L&T (3.86%), Tata Motors (3.61%), Reliance Infra (3.10%), Grasim Inds (2.78%), SBI (2.50%) and RIL (2.24%).

Gainers from the BSE Sensex pack are Infosys (2.13%), ITC (1.58%), HUL (1.44%), Bharti Airtel (1.20%), Mahindra and Mahindra (1.07%) and HDFC bank (0.39%).


On the global markets front, the Asian markets that opened before the Indian market, closed in red. Jakarta Composite, Seoul Composite, Taiwan Weighted, Nikkei and Hang Seng ended down by 1.76%, 1.42%, 1.21%, 0.64% and 0.48% at 2,433.18, 1,630.35, 7,607.93, 10,267.17 and 22,210.52 respectively.

European markets, which opened after the Indian market, are trading lower. In Paris the CAC 40 is lower by 1.45% at 3,816.94, in Frankfurt DAX index is trading down by 1.43% at 5,750.19 and in London FTSE 100 is lower by 1.12% at 5,199.01.

BSE REALTY indexwas at 4,524.28 down by 217.54 points or by (4.59%) The main losers were Housing Dev down by (5.5%) at Rs.379.1, Unitech Ltd down by (5.42%) at Rs.100.3, Dlf Ltd down by (4.93%) at Rs.448.75, Sobha Dev down by (4.38%) at Rs.243.55, Ansal Infras down by (4.15%) at Rs.78.6, The main gainers were Mahindralife up by (1.89%) at Rs.372.65,

BSE METAL index was at 15,353.89 down by 288.11 points or by (1.84%) The main losers were Jai Corp Lim down by (4.93%) at Rs.199.65, Jsw Sl down by (4.87%) at Rs.869.1, Steel Author down by (4.12%) at Rs.182.7, Jindal Saw down by (3.93%) at Rs.785.5, Nmdc Ltd down by (2.28%) at Rs.338.65.

BSE BANKEX index was at 10,098.65 down by 211.33 points or by (2.05%) The main losers were Karnataka Bk down by (4.31%) at Rs.157.65, Canara Bank down by (4.25%) at Rs.372.85, Indian Overs down by (4.21%) at Rs.127.4, Icici Bank L down by (4.08%) at Rs.891.05, Kotak Bank down by (2.67%) at Rs.796.85,

BSE FMCG index was at 2,741.73 up by 25.76 points or by (0.95%) The main gainers were Marico Ltd up by (3.78%) at Rs.101.65, I T C Ltd up by (1.58%) at Rs.247.55, Hind Uni Lt up by (1.44%) at Rs.278.05, Colgate Palm up by (0.27%) at Rs.693.2,

BSE CD index was at 3,620.37 down by 98.41 points or by (2.65%) The main losers were Rajesh Expot down by (4.69%) at Rs.74.1, Titan Ind. down by (3.58%) at Rs.1326.25, Gitanjali Ge* down by (2.92%) at Rs.124.7, Videocon Ind down by (1.56%) at Rs.250, Blue Star L down by (1.41%) at Rs.375.1,

BSE OIL&GAS index was at 10,285.42 down by 164.93 points or by (1.58%) The main losers were Essar Oil Ltd. down by (3.54%) at Rs.156.85, Ril Nat Res down by (2.31%) at Rs.84.7, Reliance down by (2.24%) at Rs.2133.55, Hindustan Petroleum Corp. Ltd. down by (0.94%) at Rs.357.9, Indian Oil C down by (0.82%) at Rs.647.85, The main gainers were Cairn Ind up by (1.07%) at Rs.283,

BSE IT index was at 4,437.81 up by 34.89 points or by (0.79%) The main gainers were Infosys Technologies Ltd.-Ordi up by (2.13%) at Rs.2211.5, Patni Comput up by (1.18%) at Rs.442.75, Hcl Techno up by (0.68%) at Rs.324.75,

Piramal Healthcare Ltd declined by 4.55% to close at Rs. 366.05. The Company has posted a Net profit for the period of Rs 1142.20 million for the quarter ended September 30, 2009 as compared to Rs 694.40 million for the quarter ended September 30, 2008.

Allahabad Bank fell by 1.48% to close at Rs. 126.15. The company has posted a net profit of Rs 3335.909 million for the quarter ended September 30, 2009 as compared to Rs 416.827 million for the quarter ended September 30, 2008.

L&T slipped by 3.86% to close at Rs. 1,608.50. The Company has posted a profit after tax of Rs 5804.00 million for the quarter ended September 30, 2009 as compared to Rs 4602.60 million for the quarter ended September 30, 2008.

Asian markets tanks deeper on Thursday

Sensex, Shanghai, Sydney, Seoul lead losses while Nikkei, Hang Seng, NZX 50 follows them

Stock market in Asia finished lower on Thursday, 22 October 2009, after China’s impressive GDP figures ignited speculation that economy may be close to a point where stimulus is soon removed from the system, taking US dollar back from the brink of its lowest levels since the beginning of August 2008.

On Wall Street, stocks sold off after Wall Street learned that Washington would restrict executive pay at companies receiving bailout funds and Wells Fargo was downgraded. The Dow Jones Industrial Average fell 92.12 points, or 0.9%, to 9949.36, while the S&P 500 shed 9.66 points, or 0.9%, to 1081.40. The Nasdaq gave up 12.74 points, or 0.6%, to 2150.73.

In the commodity market, crude oil fell below $81 a barrel as the dollar strengthened against the euro, reducing demand for commodities as an alternative investment.

Crude oil for December delivery fell as much as $1.37, or 1.7%, to $80 a barrel in electronic trading on the New York Mercantile Exchange. It was at $80.26 a barrel at 10:09 a.m. London time.

Brent crude oil for December settlement fell as much as $1.28, or 1.6%, to $78.41 a barrel on the London-based ICE Futures Europe exchange. It was at $78.67 a barrel at 10:12 a.m. London time.

Gold declined as a rebounding dollar eroded the appeal of the metal as an alternative investment and as some investors sold bullion following its recent rally. Immediate-delivery bullion lost $5.18, or 0.5%, to $1,053.82 in London as of 9:46 a.m. local time. December gold futures slipped $10.30, or 1%, to $1,054.20 an ounce on the New York Mercantile Exchange’s Comex division by 4:45 a.m. local time.

In the currency market, after diving to a new 2009 low overnight, dollar recovers in Asian markets today on the back of disappointment in China GDP and retreat in Asian stocks.

The Japanese yen depreciated to around 91.47 against the dollar after 3 p.m. Thursday, recovering the level last seen 24 September 2009. The Japanese currency was 0.78 yen weaker against the greenback than at 5 p.m. Wednesday.

The Hong Kong dollar was trading at HK$ 7.7500 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 closed flat as Chinese economic data failed to lift investor appetite for growth assets such as equities and commodity-driven currencies. At the local close, the dollar was trading at $US0.9226, slightly up from Wednesday’s close of $US0.9224. During the day, the unit moved between $US0.9226 and $US0.9299.

In Wellington trades, the New Zealand dollar tumbled against the greenback early today as it retreated from yesterday's 15-month high. The kiwi was buying US74.78c when last seen, having fallen sharply from the US75.50c level around midnight, before making a small recovery. Yesterday morning the NZ dollar had peaked at US75.75c.

The South Korean won ended at 1,190 won against the greenback, down 11 won from Wednesday's close, as foreign investors cut their holdings of local stocks.

The Taiwan dollar weakened against the greenback. The Taiwan dollar was trading lower against the US dollar at NT$ 32.4010, 0.0420 down from Wednesday’s close of NT$32.3590.

In the Asian equity market, share markets closed lower after a night of weakness on Wall Street, and were weighed further by data showing China's economy grew at a slightly slower than expected pace in the third quarter.

In Japan, stock market lost further, following overnight weakness on Wall Street that sparked broad based selling while investors await the Japanese earning reports season to get into full swing next week. The Nikkei 225 Stock Average lost 66.22 points, or 0.64%, to 10,267.17. The Topix index of all the Tokyo Stock Exchange First Section issues fell 5.10 point, or 0.56%, to 908.60.

In Mainland China, equities closed slightly down despite the better-than-expected GDP data. The closing hours of the session saw the bearish momentum in the broad markets sweeping China as well, making the index give away its moderate gains earlier in the day.

The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, decreased 0.62% or 19.18 points to close at 3,051.41 points after fluctuating between 3,080.66 and 3,045.03 points.

On the economic front, China's Shanghai Composite was down 0.62%, even though the data showed that steady upturn trend of China’s national economy further strengthened. China's GDP grew 8.9% in the third quarter, the National Bureau of Statistics said today. Figures for the first quarter this year were 6.1%, with 7.9% for the second quarter. GDP growth in the first three quarters was 7.7%, up from 7.1% growth in the first half this year.

China's cabinet said yesterday that it would maintain stimulus measures even after the economy-exceeded expectations for the first nine months of the year. The State Council also signaled that inflation concern would be an increasing focus of its policy, as minute evidence of rising inflationary pressures is seen in China. The month-on-month changes of consumer price and producers’ price reversed from decreasing to increasing while the year-on-year decrease narrowed. China’s consumer price index declined by 0.8 % in September, from a fall of 1.2 % in August, while the producer price index fell by 7 % in September, from 7.9 % in August.

The growth rate of industrial production increased on a quarterly basis and the decrease rate of profits made by industrial enterprises slowed down. In the first three quarters of this year, the total value added of the industrial enterprises above designated size was up 8.7 % year-on-year, or 6.5 percentage points lower than that in the same period of last year. Of this total, the growth in the first quarter was 5.1 %, the second quarter 9.1 %, and that in the third quarter was 12.4 %.

In Hong Kong, stocks trimmed losses to close down, with telecom and property shares falling as the market turned cautious on concern about inflation, despite economic data from China.

The Hang Seng Index, the benchmark, opened 80 points lower at 22,237. After touching the intraday low of 22,002.79 points, the blue-chip Hang Seng Index fell 107.59 points or 0.48% to close at 22,210.52. The Hang Seng China Enterprise Index, which tracks the overall performance of 43 Chinese mainland state-owned enterprises on the Hong Kong Stock Exchange, decreased 41.66 points or 0.32% to 12,959.93 points.

In Australia, stock market in Australia tanked further, after investors took profits in afternoon trade when Chinese third quarter GDP data failed to impress. China’s economy expanded at the fastest pace in a year as stimulus spending and record lending growth helped the nation lead the world out of recession. Gross domestic product rose 8.9% in the third quarter from a year earlier, the statistics bureau said. The benchmark S&P/ASX200 declined by 25.8 points or 0.5% ending the day at 4,812.80. The broader All Ordinaries dumped 27.4 points or 0.6% closing at 4,818.80.

In New Zealand, stocks fell for a second day, extending a drop from a 14-month high as risky assets came under pressure in Asia. The New Zealand markets were stirred after Contact Energy avoided giving clear guidance on the outlook for earnings and investors fretted about Pike River Coal’s need for more cash. A broad decline in commodities and weakness in Kiwi also led to some selling pressure. The NZX 50 Index fell 16.52, or 0.5%, to 3201.69. The NZX 15 index, comprising of the 15 top stocks fell by a much-pronounced 0.84% to 5802.28 points.

In South Korea, stocks closed lower, as investors unloaded tech blue chips on concerns over their earnings outlook. The benchmark Korea Composite Stock Price Index (KOSPI) declined 23.53 points to 1,630.33. Foreigners became net sellers of Seoul stocks on the main bourse for the first time in eight sessions. They unloaded a net 122.6 billion won worth of local stocks.

In Taiwan, stock market extended losses for the second straight session, stepping in Wall Street shoes, as construction and cement sector drove the losses while tourism sector stood aside with the gains. The benchmark Taiex share index sunk deeper in to losses as it finished lower by 93.57 points or 1.21% in a day, closing the day at 7607.93.

In Philippines, the stock market closed lower as investor's booked profit following the losses on Wall Street overnight and a weak momentum in the Asian equities. Moreover, investors remained cautious due to the possible negative effects of the typhoon the country has suffered from recently. Recent natural disasters will cut Philippine fourth-quarter economic growth. At the final bell, the benchmark index PSEi fell 1.06% or 31.18 points to 2,888.72, while the All Shares index went down 0.97% or 18.03 points to 1,823.90.

In India, the key benchmark indices cut losses after hitting fresh intraday day low in late trade. Weak global markets and rise in headline inflation to above 1% mark, weighed on investor’s sentiment.

The BSE 30-share Sensex was down 219.43 points or 1.29% to 16,789.74. The Sensex rose 22.37 points at the day's high of 17,031.54 in early trade. The barometer index fell 287.91 points at the day's low of 16,721.26 in late trade. The S&P CNX Nifty was down 75 points or 1.48% to 4,988.60.

On the economic front, inflation based on the wholesale price index (WPI) rose 1.21% in the year through 10 October 2009, higher than previous week's annual rise of 0.92%, date released by the government today showed. Within the WPI, the food articles index rose 13.34%. The government revised upwards inflation for the year through 27 August 2009 to a much smaller fall of 0.21% from an estimated 0.95% decline.

Elsewhere, Malaysia's Kula Lumpur Composite index was trading flat at 1260.02 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2433.18. Singapore’s Straits Times Index ended lower at 2,681.97.

In other regional market, European shares fell sharply on Thursday after a raft of updates on sales and profit trends from companies including Ericsson, and after data indicated growth in China accelerated in the third quarter. On a regional level, the German DAX index lost 1.53%or 89.02 points to 5,744, the French CAC-40 index dropped 1.55% or 59.85 points to 3,813 and the U.K. FTSE 100 index fell 1.24% to 5,192.

Sensex sheds 3% from 17-month high -

The key benchmark indices extended losses for the third straight day on weak global markets and rise in headline inflation above the 1% mark. Intraday volatility was high. The BSE 30-share Sensex lost 219.43 points or 1.29%, off close to 245 points from the day's high and up close to 70 points from the day's low.

The Sensex closed below the psychological 17,000 mark after regaining that level in mid-morning trade for a short while. The Sensex had last closed below the 17,000 mark on 9 October 2009. The 50-unit S&P CNX Nifty closed below the psychological 5,000 mark after alternatively moving above and below that level in late trade. Nifty had last time closed below the 5,000 mark on 9 October 2009. The market breadth was weak in contrast to a positive breadth earlier in the day.

Index heavyweight Reliance Industries dipped as the hearing on a gas dispute with Reliance Natural Resources (RNRL) continues in the Supreme Court. Bank stocks fell after Moody's Investors Services on Wednesday downgraded the supported ratings of 13 Indian commercial banks after its global review of systemic support indicators for individual banking systems. Capital goods, metal and realty stocks also fell.

Intraday volatility was high. After opening slightly higher, the market soon lost ground on lower Asian stocks. The Sensex fell below the psychological 17,000 mark. The market cut losses later after initial trends showed that the Congress-Nationalist Congress Party combine was surging ahead in assembly election in Maharashtra. The Sensex regained 17,000 level in mid-morning trade. It soon fell below that level as weak Asian stocks weighed on domestic bourses.

The Sensex fell to a fresh day's low in afternoon trade as European stocks dropped. The market extended losses in mid-afternoon trade. The market cut losses after hitting a fresh intraday low in late trade.

Hedge fund Galleon Group is winding down all its hedge funds and looking at alternatives for the business, company founder Raj Rajaratnam told employees and investors in a letter Wednesday. One of those alternatives is selling all or part of Galleon to another firm.

Rajaratnam was one of six people arrested and charged last Friday in a massive insider-trading case. The charges had already caused many Galleon investors to try to withdraw their money. The deadline for redemption requests in most of Galleon's funds was 15 November 2009. The hedge fund has assets under management of about $3.7 billion.

As far as Galleon's India operations are concerned, it has a 7% stake in broking firm Edelweiss Capital, 4.6% stake in construction firm Shriram EPC and 0.3% stake in Pipavav Shipyard.

On the macro front, inflation based on the wholesale price index (WPI) rose 1.21% in the year through 10 October 2009, higher than previous week's annual rise of 0.92%, date released by the government today showed. Within the WPI, the food articles index rose 13.34%. The government revised upwards inflation for the year through 27 August 2009 to a much smaller fall of 0.21% from an estimated 0.95% decline.

The Prime Minister's economic advisory council said on Wednesday that it sees inflation at around 6% by the end of the current fiscal year to March 2010. Faster industrial output growth and rising inflationary pressures have strengthened case for an end to the RBI's accommodative monetary stance next year. Industrial output grew at its fastest pace in 22 months in August 2009 at 10.4%.

The RBI pumped in massive liquidity in the banking system in the past one year or so to help revive the domestic economy in the aftermath of the global financial crisis. While as exit from the loose monetary policy is imminent, speculation on the bourses is the timing of the exit policy. The RBI is expected to keep its benchmark lending and borrowing rates on hold at a quarterly monetary policy review on 27 October 2009.

The RBI in its report on trend and progress of banking in India for 2008/09 released today, 22 October 2009, said managing the heavy government borrowing in a non-disruptive way is a major challenge for the central bank, as hardening bond yields run counter to its low rate policy needed for lifting growth.

It said financial reforms need to be carried out in a re-calibrated manner after the global financial crisis following Lehman Brothers' collapse last year. The report also sounded a note of caution on securitisation and asset derivative deals.

On the political front, the Congress was on Thursday set to capture power in Maharashtra for a third consecutive term and sweep Arunachal Pradesh while a not-so-good performance in Haryana left it as the single largest party scrambling for numbers to get a majority. The assembly elections in these three states are being seen as the first crucial test of popularity for major political parties after the Lok Sabha polls in May this year where the Congress had a comfortable victory.

Stock and sector-specific activity may dominate trade on the bourses 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 amid sluggish credit offtake. 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 stocks fell on Thursday, tracking losses in Asia and Wall Street, with telecom equipment maker Ericsson's poor results hitting tech shares. The key benchmark indices in France, Germany and UK were down by between 1.06% to 1.46%.

Ericsson's, the world's largest network-equipment vendor, said its third-quarter net profit fell on heavy restructuring charges and losses at handset joint-venture Sony Ericsson. Network-equipment sales at the company declined due to lower demand.

British retail sales rose 2.4% in September 2009, lower than an expected rise of 2.7%. Sales were flat on a month on month basis, falling short of expectations of a 0.5% rise.

European Central Bank Governing Council member Axel Weber on Thursday said the euro zone was unlikely to fall back into recession soon after exiting it. He also said there were no risks to price stability in the policy-relevant medium-term horizon. He also said the global economic turnaround after a free fall was striking.

Asian stocks fell amid disappointment that Chinese growth data, though robust, offered few surprises. The Shanghai Composite Index was down 0.62%.

China's gross domestic product expanded 8.9% in the third quarter compared to the same period a year ago, according to data released by the National Bureau of Statistics. The increase was greater than the 7.9% expansion in the second quarter.

In other figures released Thursday, urban fixed-asset investment in China rose 33.3% in the first three quarters, edging up from 33% growth in the first eight months of the year. Industrial production in September rose 13.9% on year, higher than expectations of a 13.3% rise and above August's 12.3% gain. For the first nine month of the year industrial production rose 8.7%.

The apparent economic pick-up could lead to inflation, which would add to pressure on Beijing for a tightening of policy. China's State Council said Wednesday the economy is firming, signaling that is may exceed its official 8% growth target this year, and raising possibility that Beijing is edging closer to a tightening stance. For the time being, China said it has no plans to walk back from its current expansionary lending policy and large fiscal stimulus. The CEO of China's sixth-largest bank warned that a bubble may be developing.

In other Asian markets, key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan fell by between 0.18% to 1.42%.

Japan's Nikkei 225 Stock Average slumped 0.64%. Japan's exports fell at the slowest pace in 10 months in September 2009 as stimulus spending in China drove demand for the nation's cars and machinery. Shipments abroad dropped 30.7% from a year earlier, compared with a 36% decline in August 2009, the Finance Ministry said today in Tokyo. Exports to China, Japan's biggest market, fell 13.8%, half the pace of the previous month.

Trading in US index futures indicated the Dow could fall 18 points on Thursday, 22 October 2009.

US markets edged lower on Wednesday on profit taking despite strong earnings from Morgan Stanley. The Dow Jones industrial average fell 92.12 points, or 0.9%, to 9,949.36. The S&P 500 index was down 9.66 points, or 0.9%, to 1,081.40. The Nasdaq Composite index slipped 12.74 points, or 0.6%, to 2,150.73.

Morgan Stanley reported better-than expected quarterly profit on strong fixed income sales and trading revenue.

The US economy is firmly poised for a recovery from its deep recession but growth may be moderate and the job market will not revive immediately, senior White House aide Lawrence Summers predicted on Wednesday. In an interview to a news agency, Summers said job growth would lag behind a broader economic recovery. Summers, who heads the White House's National Economic Council, also gave strong backing to the beleaguered US dollar, which has fallen to a 14-month low against major currencies.

US economic conditions stabilized or improved modestly in most parts of the country, according to a Federal Reserve report on Wednesday that suggested the economy was slowly clawing out of a recession. In its "Beige Book" of anecdotal reports on the economy, the Fed noted improvement in two of the hardest hit areas -- residential real estate and manufacturing. The central bank gave a grim assessment of commercial real estate, which is widely seen as one of the big remaining trouble spots for the still-struggling financial sector.

Meanwhile, a high-level commission on the World Bank on Thursday called for sweeping changes to reflect the world's new economic order and said European countries are overrepresented in the decision-making executive board. In a long-awaited report, the 11-member commission, led by former Mexican president Ernesto Zedillo, said the Bank's effectiveness was undermined by a hierarchy dominated by the United States and Europe "offering many member countries too little voice and too few opportunities for participation."

Closer home, the supply of paper by Indian firms appear limitless, raising concerns that additional share sales will suck liquidity from the secondary equity market. As per reports, Indian firms have garnered about $9 billion (Rs 32,400 crore at the current exchange rates) through sale of shares and convertible bonds to institutional buyers since April 2009. Indian companies are taking advantage of a surge in liquidity to recapitalize and fund capital expenditure after being starved of cash last year.

Most of these companies - from industries ranging from liquor and spirits to infotech - issued equity shares to a select group of investors by way of qualified institutional placement or QIP. If the enabling resolutions passed by the companies are any indication, Indian firms are gearing up to raise $15 billion (Rs 69,427 crore) in the next six months. The list includes Hindalco (Rs 2,900 crore), JSW Steel ($1 billion), India Cements ($100 million), Essar Oil ($2 billion), Tata Steel (Rs 5,000 crore), Jet Airways ($ 400 million) and Bharat Forge ($150 million).

Unlisted Reliance Infratel announced on 22 September 2009 its intention to raise Rs 5,000 crore from the primary market. Divestment of state-run firms by the government may also increase the supply of paper in the market.

The government on Monday approved stake sales in state-run power producer NTPC and another unlisted power firm Satluj Jal Vidyut Nigam which reflects the country's resolve to speed up reforms and raise more resources for social schemes. On Monday, Trade Minister Anand Sharma said the Union Cabinet had approved a 5% stake sale in NTPC, and 10% in, an unlisted power producer. On Friday, 16 October 2009, Prime Minister Manmohan Singh said many state-run firms are eager to list their shares in the stock market as it would help unlock their value.

The government has approved a follow-on public offering of 20% of state run Steel Authority of India, the steel minister said on Wednesday, 21 October 2009. The Government of India owns nearly 86% of Sail.

The BSE 30-share Sensex fell 219.43 points or 1.29% to 16789.74. The Sensex rose 22.37 points at the day's high of 17,031.54 in early trade. The barometer index fell 287.91 points at the day's low of 16,721.26 in late trade.

The S&P CNX Nifty fell 75 points or 1.48% to 4,988.60. Nifty October 2009 futures were at 5,002.10, at a premium of 13.50 points as compared to the spot closing of 4,988.60. Turnover in NSE's futures & options (F&O) segment surged to Rs 86,383.23 crore from Rs 67,937 crore on Wednesday, 21 October 2009.

The market breadth, indicating the overall health of the market was weak. The breadth was positive in early trade. On BSE, 871 shares advanced as compared with 1863 that declined. A total of 79 shares remained unchanged.

BSE clocked a turnover of Rs 5776 crore, lower than Rs 6008.74 crore on Wednesday, 21 October 2009.

Among the 30-member Sensex pack, 23 fell while the rest rose.

From a 17 month high of 17,326.01 on 17 October 2009, the Sensex has lost 536.27 points or 3.09% in three trading sessions to 16,789.74 on Thursday, 22 October 2009. With foreign funds making heavy purchases, the Sensex is up 7,142.43 points or 74.03% in calendar year 2009 as on 22 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8629.34 points or 105.74% as on 22 October 2009. FII inflow in the calendar year 2009 totaled Rs 68,084.60 crore (till 21 October 2009).

Coming back to today's trade, the BSE Mid-Cap index fell 2.12% and the BSE Small-Cap index fell 1.96%. Both the indices underperformed the Sensex.

Sectoral indices on BSE displayed mixed trend. The BSE FMCG index (down 2.06%), the BSE IT index (up 0.03%), the BSE Teck index (up 0.04%), the BSE Auto index (down 2.36%), outperformed the Sensex.

The BSE Realty index (down 4.59%), the BSE Capital Goods index (down 2.69%), the BSE Consumer Durables index (down 2.65%), the BSE Bankex (down 2.05%), the BSE Metal index (down 1.84%), the BSE Oil & Gas index (down 1.58%), the BSE Power index (down 1.47%), the BSE Healthcare index (down 1.468%), the BSE PSU index (down 1.37%), underperformed the Sensex.

Index heavyweight Reliance Industries fell 2.24% to Rs 2133.55 after a lawyer for the firm said company he will conclude initial arguments before the Supreme Court in a gas-pricing dispute with Reliance Natural Resources by 29 October 2009.

Reliance Industries is importing liquefied natural gas at about $9 per million metric British Thermal Unit, to power its refinery in west India, executive director PMS Prasad told reporters on Thursday, 22 October 2009, outside the country's top court.

Mukesh Ambani-controlled Reliance Industries, India's top conglomerate, is fighting with Reliance Natural Resources, led by younger brother Anil Ambani, over the terms of a deal to sell gas to Reliance Natural at below the price set by the government. Reliance Industries has been presenting initial arguments in the case before the Supreme Court since Tuesday, saying the private deal between the Ambani brothers is not binding on the company, and it can sell the gas only at the government-approved price.

The government, which has the power to decide who can buy gas and at what price, had filed an application asserting it is the rightful owner of the disputed gas.

Oil exploration stocks rose as crude oil futures prices settled above $81 a barrel Wednesday for the first time in a year, propelled by weakness in the dollar and tightening US inventories. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

Cairn India rose 1.07%. UK-based oil and gas exploration major Cairn Energy Plc recently mopped up $240 million by selling 2.3% in its Indian subsidiary Cairn India to Malaysia's Petronas International Corporation.

With this move, Petronas' stake in Cairn India jumps to 14.94%, within touching distance of an open offer trigger. Cairn UK now retains a 62.75% interest in Cairn India, which made a major oil discovery (Mangala) in Rajasthan in the north west of India in 2004. Cairn India, the Indian arm of the UK firm, has interests in a total of 13 acreage blocks in India and Sri Lanka.

India's second biggest state-run oil exploration firm by revenue Oil India was flat. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) fell 0.54%. ONGC has bagged over a third of the 70 blocks offered under the government'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.

Nearly half of 70 blocks offered under NELP 8 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 rise in crude oil prices will increase under recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices HPCL, BPCL, Indian Oil Corporation (IOC) fell by between 0.01% to 0.92%.

Govinda Rao, a member of the Prime Minister's Economic Advisory Council on Wednesday said there is no need to raise fuel prices, if global oil prices remain in the range of $70 to $75 a barrel. Rao said the government expects international crude oil prices to hover around $70 to $75 per barrel. If prices go beyond that consistently, then the numbers will have to change, Rao said.

Jaiprakash Associates fell 6.84% even as net profit rose 327.9% to Rs 870.19 crore on 53% rise in sales to Rs 1824.26 crore in Q2 September 2009 over Q2 September 2008. The company announced result after market hours on Wednesday. The company also announced 1:2 bonus issue.

India's largest engineering and construction firm by sales Larsen & Toubro fell 3.86% on muted sales growth in Q2 September 2009. L&T's net profit rose 26.1% to Rs 580.4o crore on 3.54% rise in total income to Rs 8136.39 crore in Q2 September 2009 over Q2 September 2008. The result hit the market during trading hours today.

L&T attributed the muted sales growth to delay in clearances of infrastructure projects from some clients and lower offtake of industrial and machinery products. The company said order backlog is at Rs 81623 crore, which is 2.4 times its revenue of Rs 33926.37 crore in the year ended March 2009, giving strong revenue visibility.

The company is likely to see order inflows rise over 30% in 2009/10 and sales rise of 15%, Chief Financial Officer Y.M. Deosthalee said on Thursday at the time of announcing Q2 results.

L&T said the recent surge in crude oil prices may boost orders from the hydrocarbon sector. The company said revival of infrastructure development in the Gulf augurs well as the company has a significant presence in the region.

India's largest power maker by sales Bharat Heavy Electricals fell 0.9%. Strong project execution, fall in input costs and lower employee costs are seen driving growth in Bhel's top line and bottom line in Q2 September 2009. Metal prices were sharply on year on year basis which will help boost margins of the power equipment major. Further, Bhel had provided Rs 116 crore for wage hike provisions in Q2 September 2008 which had pulled down profit in that quarter. The margins will rise with no such provision in Q2 September 2009.

A total of seven brokerages expect a between 10.8% to 32.4% growth in Bhel's net profit at between Rs 681.50 crore to Rs 815.40 crore in Q2 September 2009 over Q2 September 2008. Their expectations peg a between 24.8% to 28% growth in revenue at between Rs 6667.70 crore to Rs 6838.60 crore in Q2 September 2009 over Q2 September 2008. Bhel unveils Q2 September 2009 results on Friday, 23 October 2009.

Among other capital goods stocks, Thermax, BEML, Praj Industries and Punj Lloyd fell by between 1.13% to 4.56%.

Realty stocks fell on profit taking. Indiabulls Real Estate, Omaxe, Ansal Properties, Unitech, DLF fell by between 1.92% to 5.42%.

Realty stocks have risen sharply in the past few days on 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. The housing market had slumped last year amid a global credit crunch and buyers fearing job losses.

Bank stocks fell for second straight day on concern a proposed new interest rate system will intensify competition among lenders. A Reserve Bank of India (RBI) panel on Tuesday proposed a transparent pricing structure for floating rate loans wherein benchmark rates get automatically revised on shrinking cost of funds. India's largest private sector bank by net profit ICICI Bank fell 4.08% as its ADR fell 4% on Wednesday. The bank recently reduced auto loan rates by 50 basis points.

India's largest bank by branch network State Bank of India fell 2.5%. SBI has reportedly raised $750 million (around Rs 3500 crore) in the overseas market through five-year bonds as part of its medium-term note programme (MTN). SBI's $5 billion MTN programme was launched in 2004. It targets investors, including banks, insurance companies, hedge funds and private equities in the global market.

State Bank of India has got the finance ministry's clearance to start talks to merge its subsidiary, State Bank of Indore, with itself.

But, India's second largest private sector bank by net profit HDFC Bank rose 0.39% even as its ADR fell 3.35% on Wednesday. The bank's net profit rose 30.2% to Rs 687.46 crore in Q2 September 2009 over Q2 September 2008. The results, which hit the market last week, were more or less in line with market expectations.

The committee headed by RBI executive director Deepak Mohanty has suggested discontinuing the usage of a bank's prime lending rate (PLR) as the benchmark for variable rate loans. Instead, it wants banks to arrive at a base rate that reflects the cost of one-year deposits and price loans over this base rate.

The panel has also proposed a ceiling on the extent of loans that can be granted below the benchmark rate. Most banks typically pass on the benefit of falling rates only to fresh customers. RBI governor D Subbarao has repeatedly said though the central bank has slashed its repo rate (at which it lends to banks) by 425 basis points in the last one year, prime lending rates of banks have fallen by only around 200 basis points.

Lenders currently offer loans at less than the benchmark prime lending rate to about 10 categories of borrowers, according to the central bank. Some of these loans are at rates that don't "make much commercial sense" for the banks, according to the report.

Meanwhile, the central bank may hike the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM) category, possibly at a quarterly monetary policy review on 27 October 2009. 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.

Global rating agency Moody's on Wednesday assigned moderate credit risk rating to 13 Indian commercial banks, including the country's largest public sector lender State Bank of India and private entity ICICI Bank. The agency has given the supported ratings an assessment of the government's ability to support the banks to the 13 entities, following the review of systemic support for individual banking systems. Moody's Investor Service in a statement said it has changed the systemic support input for Indian banks' ratings to Baa2 from the A1 local currency deposit ceiling. Baa2 generally refers to moderate credit risk.

The RBI in its report on trend and progress of banking in India for 2008/09 released today, 22 October 2009, said it needs to assess and initiate measures to raise the capital base of state-run banks. The central bank said off-balance sheet exposures of local banks declined by 26% in 2008/09, but it was necessary to monitor and evaluate risks from such exposure

India's largest dedicated housing finance firm HDFC fell 0.55%. HDFC, last week, announced its 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 fell on profit taking. Tata Steel, National Aluminum Company, Hindalco Industries fell by between 0.68% to 2.16%.

India's largest copper maker by sales Sterlite Industries fell 0.9%. The company, last week, raised $500 million in convertible senior notes and plans to use the proceeds primarily for expansion of its copper business. The notes are convertible into American depositary shares at $23.33 per share.

Steel Authority of India (Sail) fell 4.12% after the steel minister on Wednesday said the government has approved a follow-on public offering of 20%. The government holds 85.82% stake in Sail.

Hindutan Zinc fell 1.6% after net profit declined 2.55% to Rs 934.95 crore in Q2 September 2009 over Q2 September 2008. The result hit the market during trading hours

India's largest thermal power producer by sales NTPC fell 1.5%. The government on Monday approved a 5% stake sale in NTPC.

Among other power stocks, Reliance Power, Tata Power Company, Reliance Infrastructure fell by between 0.82% to 3.1%.

Ultratech Cement fell 3.58% after the company issued a cautious outlook at the time of announcing Q2 results late last week. Net profit jumped 53% to Rs 251 crore in Q2 September 2009 over Q2 September 2008.

UltraTech said the performance was affected on a sequential basis due to lower demand in Southern India. The net profit dropped 39.94% to Rs 250.90 crore in Q2 September 2009 over Q1 June 2009.

The company said the cement demand may grow 9% in the year ending March 2010 on the back of government's initiative to boost rural development, infrastructure and housing. It, however, said new capacities which at various stages of implementation will result in pressure on margins.

The company said its focus on higher volume growth, captive power generation and capital productivity will help offset the impact of lower prices on margins.

Among other cement stocks, ACC, Grasim Industries, and Ambuja Cements, fell by between 0.64% to 2.78%.

Auto stocks fell on profit taking. India's top small car maker by sales Maruti Suzuki India fell 1.23%. 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 fell 3.61%. Tata Motors said it may undertake a preemptive check on the 7,500-odd Nanos that have been delivered till date after a faulty combination switch in the world's cheapest car resulted in fires in at least three cases across the country. Three cases of fire in the car had been reported in the past few days in Delhi, Lucknow and Ahmedabad.

Bajaj Auto fell 1.16%. Bajaj Auto's net profit jumped 117.85% to Rs 402.83 crore in Q2 September 2009 over Q2 September 2008. The company announced the Q2 results during trading hours on 15 October 2009.

Hero Honda Motors fell 0.45% even as net profit jumped 95% to Rs 597.14 crore on 26.8% rise in revenue to Rs 4059.44 crore in Q2 September 2009 over Q2 September 2008. The company announced result after market hours on Wednesday.

But, India's largest tractor maker by sales Mahindra & Mahindra rose 1.07%. 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.

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.

IT stocks fell on profit taking. India's largest software services exporter TCS fell 0.94%. The company after market hours on 16 October 2009, reported stronger-than-expected Q2 September 2009 results. Consolidated net profit as per US accounting standards rose 6.81% to Rs 1623.90 crore on 3.16% growth in revenue to Rs 7435.10 crore in Q2 September 2009 over Q1 June 2009.

TCS has a good business pipeline and is pursuing 20 to 25 large outsourcing deals, chief executive N. Chandrasekaran said at the time of announcing Q2 results. The management is seeing signs of recovery but it believes it will be slow. The discretionary spent is still tight but there is spent seen in banking, finance services and insurance (BFSI), retail, utility and pharma verticals, TCS said at a conference call after the results. However, a continuous improvement in volumes cannot be expected, it said. The company is seeing stability in demand environment. The management expects to maintain margins at current levels provided there is no adverse rupee movement.

India's third largest software services exporter Wipro fell 1.71% as its ADR fell 0.84% on Wednesday.

But, IT bellwether Infosys Technologies rose 2.13% even as its ADR fell 0.56% on Wednesday. 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 9 October 2009. Infosys, however, said strengthening rupee is a big concern for its earnings.

The partially convertible rupee tumbled to 46.71/46.74 per dollar, from Wednesday's close of 46.485/495. A weak rupee boosts revenues of IT firms in rupee terms as the sector earns a lion's share of revenue from exports.

India's largest cigarette maker by sales ITC rose 1.58% ahead of its Q2 results on Friday, 23 October 2009. Higher volumes and price hike in the mainstay cigarette business is seen driving bottom line and top line growth of ITC in Q2 September 2009. However, the hotels business was hit by swine flue and margins of the FMCG business were under pressure due to higher sugar and wheat prices.

A total of five brokerages expect a between 8.3% to 19.2% growth in ITC's net profit at between Rs 869.50 crore to Rs 956.50 crore in Q2 September 2009 over Q2 September 2008. Their expectations peg a between 6% to 10.8% growth in sales at between Rs 3989.10 crore to Rs 4170.10 crore in Q2 September 2009 over Q2 September 2008.

Telecom stocks rose after finance secretary Ashok Chawla said on Tuesday the auctions for the 3G spectrum would take place by December this year. India's largest mobile services provider by market share Bharti Airtel rose 1.2%.

The Department of Telecommunications had earlier said that the auction would start from 7 December 2009, though there are apprehensions about the date since the defence forces are yet to vacate spectrum. The auction has already been postponed several times. With the availability of 3G spectrum, telecom companies are expected to offer a combined mobile and internet platforms.

India's second largest mobile services provider by sales Reliance Communications (RCom) rose 0.32%. Chairman Anil Ambani, last week, alleged that there is a 'vicious and malafide' campaign against his telecom company Reliance Communications by a 'known rival group' and dubbed the special audit report, which claimed that RCom was mis-stating its revenues as 'biased and prejudiced'. But the auditor, Parekh & Co defended its work and also denied a claim by Mr Ambani that it had not sought feedback from RCom.

Meanwhile, the central investigating agency Central Bureau of Investigation (CBI) is reportedly conducting a search in the offices of the telecoms ministry to probe the manner in which wireless radio spectrum was given to telecommunications firms. The ministry had awarded several new telecom licences in 2008.

Sugar stocks extended Wednesday's losses triggered by the government's decision that day to extend tax free white sugar imports till December 2010 to improve supplies to tide over a shortage. Dhampur Sugars, Bajaj Hindustan, Shree Renuka Sugars fell by between 0.54% to 1.23%.

Cals Refineries clocked highest volume of 2.66 crore shares on BSE. KSK Energy Ventures (2 crore shares), Unitech (1.05 crore shares), Ispat Industries (1.04 crore shares) and GVK Power & Infrastructure (1.01 crore shares) were the other volume toppers in that order.

KSK Energy Ventures clocked highest turnover of Rs 414.60 crore on BSE. Housing Development & Infrastructure (Rs 202.41 crore), DLF (Rs 168.81 crore), Jaiprakash Associates (Rs 148.55 crore) and Larsen & Toubro (Rs 136.28 crore) were the other turnover toppers in that order.

Pre Session Commentary - Oct 22 2009

Today domestic markets are likely to open negative amid weak start in Asian Market, slide in SGX Nifty and lower US Market overnight. The trade would be choppy with negative bias. One could expect selling pressure in IT, Metals, Realty and Banking sphere in mid-trade. Today domestic market is likely to trade range bound with negative bias.

On Wednesday, Indian market slumped following weak cues from the global market and lower US Index futures. It started on flat note with negative bias tracking unfavorable cues from global markets. Latter, Indices continued to trade choppy, as the investors were hesitant to take any fresh long positions and were looking to exit stocks at current high levels. Stocks tried to improve during early afternoon trade but the recovery was short lived and market again reported fall. During final trading hours, market slipped piercingly due to huge sell off, as investors were worried on negative trading in European markets. Broad based selling was seen in majority of sectors Auto (2.36%), FMCG (2.06%), Bankex (2.00%) and Metal (1.69%). However, Realty (0.26%), Teck (0.04%) and IT (0.03%) stocks were in limelight, as witnessed most of the buying from these baskets. The Market breadth, indicating the overall strength of the market, was weak.

The BSE Sensex lower by 213.84 points or 1.24% at 17,009.19 and NSE Nifty ended down by 50.85 points or 0.99% at 5,063.60. BSE Small Caps closed with gains of 317.52 points at 7,800.39 and BSE Mid Caps closed with losses of 71.49 points at 6,854. The BSE Sensex touched intraday high of 17,248.69 and intraday low of 16,997.86.

On Wednesday, the US stock market closed lower on aggressive selling in the final hour of trade. Financial stocks slipped under a strong fit of selling pressure despite strong earnings from Morgan Stanley and U.S. Bancorp. The downturn was across the board and left many of the major sectors to settle at session lows. Even energy stocks couldn’t hold their gains and closed negative. Energy stocks had been in limelight by strong oil prices, which to $82 per barrel mark following the latest oil inventory data. Stocks and commodities were moderately influence to a weaker dollar on the onset of trade, but the greenback garnered attention as it extended its slide. US light crude oil futures for November delivery closed up 2.9 % at $81.37 per barrel, on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) ended with loss of 92.12 points at 9,949.36. NASDAQ index slipped 12.74 points to 2,150.73 and the S&P 500 (SPX) closed lower by 9.66 points at 1,081.40.

Indian ADRs ended lower yesterday. In the IT pack, Infosys was down 0.56%, Satyam was down 3.88%, Wipro was down 0.84%, while Patni was up 1.67%. In the banking space, ICICI Bank was down 4% and HDFC Bank was down 3.35%. In the telecom space, Tata Comm was down 2.47% and MTNL was down 4.68%. In the other sector, Sterlite was down 0.56%, Dr Reddys was down 2.79% and Tata Motors was down 1.96%.

The FIIs on Wednesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs. 4,478.30 crore and gross debt purchased stood at Rs. 418.00 crore, while the gross equity sold stood at Rs. 2,708.30 crore and gross debt sold stood at Rs. 234.70 crore. Therefore, the net investment of equity and debt reported were Rs. 1,770.00 crore and Rs. 183.30 crore respectively.

On Wednesday, the partially convertible rupee ended at 46.48/49 per dollar, 0.80% weaker than previous closing at 46.11/12 per dollar as market closed weak turned sentiment cautious over the movement of fund flows and some banks bought dollars cheaper to arbitrage offshore. Importers also bought dollars.

On BSE, total number of shares traded were 44.06 crore and total turnover stood at Rs. 6,008.74 crore. On NSE, total number of shares traded were 85.67 crore and total turnover was Rs. 18,009.67 crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 53437276 shares, followed by Jaiprakash Associates with 19685318, Bharti Airtel with 16648993, DLF with 16574634 and Suzlon Energy with 15638588 shares.

On NSE Future and Options, total number of contracts traded in index futures was 527822 with a total turnover of Rs. 13,162.35 crore. Along with this total number of contracts traded in stock futures were 709032 with a total turnover of Rs. 24,927.87 crore. Total numbers of contracts for index options were 1077863 with a total turnover of Rs. 27,446.15 crore and total numbers of contracts for stock options were 68703 and notional turnover was Rs. 2,400.63 crore.

Today, Nifty would have a support at 5,034 and resistance at 5,092 and BSE Sensex has support at 17,005 and resistance at 17,178.

Sensex may open gap-down open

It was a red Wednesday for US indices that fell strongly for the second consecutive day, wherein the major indices recorded losses in the range of 0.59%-0.92% each, however the European indices (FTSE 100) closed marginally higher by 0.28% or 14 points at 5258. While in today’s trade, the major Asian indices were trading lower in the range of 0.33%-1.19% each. Even the Singapore Nifty was trading 31 points below its previous day’s settlement price. Considering such weak global cues for the second consecutive day, Sensex may open lower and trade in negative territory through the day. Among the local indices, the Nifty could test the 5000- 4920 range on the down side while on the up side it could find support at 5100 and 5300. The Sensex is likely to get support at 16606 and may face resistance at 17700.

On Wednesday, Dow broke the significant 10000 level and major US indices closed with losses on the back of heavy selling in the closing hours in the financial,retail and IT stocks. Dow closed 92 points or 0.92% lower at 9949, while S&P 500 and Nasdaq lost 0.89% and 0.59% respectively.

Among the Indian ADRs trading on the US bourses, only Rediff closed with decent gains of 3.45%. While rest all ADRs that includes Infosys, Satyam, MTNL, Tata Motors, Wipro, VSNL and ICICI Bank ended the day with the losses in the range of 0.59%-4.68% each.

In the commodity space, Crude oil prices surged strongly, with the Nymex light crude oil for November series rising by $2.25 to close at $ 81.37 a barrel. In the metals space, the Comex Gold for December series rose by $5.90 to settle at $1064.50 a troy ounce, while Comex Silver for December series fell by $0.27 to settle at $17.83 a troy ounce.

Daily trend of FII/MF investment in equities
On October 21, 2009, FIIs remained the net buyers of the Indian Stocks for the straight sixth day on trot in the tune of Rs1770.00 crore (with the gross purchase of Rs4478.30 crore and gross sales of Rs2708.30 crore). While the Domestic mutual funds mutual funds, on October 20, 2009, were the net seller of the stocks in the tune of Rs317.90crore (with gross purchase of Rs613.60 crore and gross sales of Rs931.60 crore).

Market may fall on weak Asia; inflation eyed

The market may extend last two days fall on weak Asia. Investors will keenly watch inflation data for the week ended 10 October 2009 to be announced by the government today. Inflation for the week ended 3 October 2009 rose 0.92% compared to 0.70% in the previous week.

The Prime Minister's economic advisory council said on Wednesday that it sees inflation at around 6 percent by the end of the current fiscal year to March 2010

Faster industrial output growth and rising inflationary pressures have strengthened case for an end to the RBI's accommodative monetary stance next year. Industrial output grew at its fastest pace in 22 months in August at 10.4 %.

The RBI pumped in massive liquidity in the banking system in the past one year or so to help revive the domestic economy in the aftermath of the global financial crisis. While as exit from the loose monetary policy is imminent, speculation on the bourses is the timing of the exit policy. The RBI is expected to keep its benchmark lending and borrowing rates on hold at a quarterly monetary policy review on 27 October 2009.

Meanwhile, energy major Reliance Industries will conclude initial arguments before the Supreme Court in a gas-pricing dispute with Reliance Natural Resources by 29 October 2009, a lawyer for the firm said.

Mukesh Ambani-controlled Reliance Industries, India's top conglomerate, is fighting with Reliance Natural Resources, led by younger brother Anil Ambani, over the terms of a deal to sell gas to Reliance Natural at below the price set by the government. Reliance Industries has been presenting initial arguments in the case before India's Supreme Court since Tuesday, saying the private deal between the Ambani brothers is not binding on the company, and it can sell the gas only at the government-approved price.

Reliance Industries would finish its initial arguments by next Wednesday or Thursday, company lawyer Harish Salve said.

India's largest engineering and construction firm by sales Larsen & Toubro unveils Q2 September 2009 results on Thursday, 22 October 2009. Strong project execution is seen driving growth in L&T's top line and bottom line in Q2 September 2009. A total of five brokerages expect a between 19% to 42.3% growth in L&T's net profit at between 546.30 crore to Rs 654.70 crore in Q2 September 2009 over Q2 September 2008.

Hero Honda Motors may see action after its net profit rose 95% to Rs 597.14 crore on 26.7% rise in sales to Rs 4040.10 crore in Q2 September 2009 over Q2 September 2008. The company announced result after market hours on Wednesday.

Jaiprakash Associates will be in action after its net profit rose 327.9% to Rs 870.19 crore on 53% rise in sales to Rs 1824.26 crore in Q2 September 2009 over Q2 September 2008. The company announced result after market hours on Wednesday. The company also announced 1:2 bonus issue.

Piramal Healthcare, Biocon, Allahabad Bank, Action Construction, Adlabs, Asian Oilfield, Asian Paints, Bhushan Steel, Binani Cement, Cambridge Solutions, Coromandel Fertilisers, DCM Shriram Consolidated, Fag Bearings, Globus Spirits, Hanung Toys, Henkel India, Hikal, Hindustan Organic, Hindustan Zinc, ICI India, Info Edge, JSW Holdings, Jubilant Organosys, Kale Consultants, Kirloskar Brothers, Mount Everest Mineral, Noida Toll Bridge, Rain Commodities, Rama Newsprint, Rane Brake, Raymond, Rolta India, Spice Comm, Sunflag Iron, Tata Coffee, Unichem, Vimta Labs, among others will announce their Q2 September 2009 result today.

Stock and sector-specific activity may dominate trade on the bourses 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 amid sluggish credit offtake. 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 fell today as concern about rising loan losses at banks fueled speculation that an equity rally since March had outpaced earnings prospects. The key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan fell by between 0.23% to 1.54%.

Japan's Nikkei 225 Stock Average slumped 1.2 % as a government report showed the country's exports slumped 30.7 % in September 2009 over September 2008.

China's Shanghai Composite Index fell 0.8% following economic data released this morning. China's gross domestic product grew 8.9 % in the third quarter ended September 2009 from a year earlier.

US markets finished lower on Wednesday on profit taking despite strong earnings from Morgan Stanley The Dow Jones industrial average fell 92.12 points, or 0.9%, to 9,949.36. The S&P 500 index was down 9.66 points, or 0.9%, to 1,081.40. The Nasdaq Composite index slipped 12.74 points, or 0.6%, to 2,150.73.

In earnings from the US, Morgan Stanley reported better-than expected quarterly profit on strong fixed income sales and trading revenue.

The key benchmark indices slumped on weak global stocks and lower US index futures on Wednesday. The BSE 30-share Sensex fell 213.84 points or 1.24% to 17,009.17 on that day.

As per provisional data, foreign funds on 21 October 2009, dumped stocks worth a net Rs 511.81 crore. Domestic funds offloaded stocks worth a net Rs 290.91 crore.

The supply of paper by Indian firms appear limitless, raising concerns that additional share sales will suck liquidity from the secondary equity market. As per reports, Indian firms have garnered about $9 billion (Rs 32,400 crore at the current exchange rates) through sale of shares and convertible bonds to institutional buyers since April 2009. Indian companies are taking advantage of a surge in liquidity to recapitalize and fund capital expenditure after being starved of cash last year.

Most of these companies - from industries ranging from liquor and spirits to infotech - issued equity shares to a select group of investors by way of qualified institutional placement or QIP. If the enabling resolutions passed by the companies are any indication, Indian firms are gearing up to raise $15 billion (Rs 69,427 crore) in the next six months. The list includes Hindalco (Rs 2,900 crore), JSW Steel ($1 billion), India Cements ($100 million), Essar Oil ($2 billion), Tata Steel (Rs 5,000 crore), Jet Airways ($ 400 million) and Bharat Forge ($150 million).

Unlisted Reliance Infratel announced on 22 September 2009 its intention to raise Rs 5,000 crore from the primary market. Divestment of state-run firms by the government may also increase the supply of paper in the market.

The government on Monday approved stake sales in state-run power producer NTPC and another unlisted power firm Satluj Jal Vidyut Nigam which reflects the country's resolve to speed up reforms and raise more resources for social schemes. On Monday, Trade Minister Anand Sharma said the Union Cabinet had approved a 5% stake sale in NTPC, and 10% in, an unlisted power producer. On Friday, 16 October 2009, Prime Minister Manmohan Singh said many state-run firms are eager to list their shares in the stock market as it would help unlock their value.

The government has approved a follow-on public offering of 20% of state run Steel Authority of India, the steel minister said on Wednesday, 21 October 2009. The Government of India owns nearly 86% of Sail.

Jaiprakash Associates

Jaiprakash Associates

IndusInd Bank

IndusInd Bank

Suzlon Energy

Suzlon Energy

Daily News Roundup - Oct 22 2009

Supreme Court asks RIL and RNRL to seek arbitration to resolve KG-D6 gas dispute. (ET)

ONGC to hive-off Assam assets into a wholly-owned subsidiary. (BL)

SAIL stake sale in FY10, says Steel Minister. (BS)

SBI eyes a buy-out in Indonesia worth US$100mn. (FE)

Axis Bank, BOB and IDBI are likely to raise US$500mn each via ADR/GDR issue. (ET)

Mahindra Satyam wins order worth US$8mn from clients in Middle East and North Africa. (BL)

Mahindra Satyam gets NYSE warning for late account filing. (FE)

Aditya Birla Group to recast its telecom business. (ET)

HCL Info emerges as the lowest bidder for BSNL deal for east zone. (BL)

Spencer Retail bets big on Gourmet stores. (BL)

United Spirits raises Rs16bn through QIP to pare debt. (FE)

Areva T&D has entered into a deal worth Rs9bn with Maharashtra State Electricity Transmission for the construction of sub-stations in the state. (ET)

RPG Cables is planning to bring in a new strategic investor to raise Rs2bn for cleaning up debt and erecting a new facility at Gujarat. (BS)

Government may divest stake in Hindustan Copper. (BS)

NELP VIII attracts US$1.34bn investment, says government. (BS)

India may grow by 6.75% this year, says PM panel. (BS)

RBI may ask banks to hold securitized debt for six months. (ET)

India aims to attract US$6bn European FDI in textile sector. (BL)

PMO asks petroleum ministry to significantly widen the scope of eGOM. (FE)

Fiscal deficit to go down by 1.5% to 5.5% says Prime Minister’s Economic Advisory Council. (FE)

Government assures stable coal supply for cement industry. (FE)

Insecurity looms large!

Better be despised for too anxious apprehensions, than ruined by too confident security.

Corporate performance may have beaten street expectations but that does not prevent the stocks to get beaten down. We had mentioned about the "Sell on News" habit of the market. The market has been running ahead pricing these positives for some time now. A cool-off was only to be expected.

The market looks set for a low key start. The global markets are in the red, led by the US. Volatility will continue in the near term. With funds (both local and foreign) selling, there might be some more softening before the uptrend resumes.

Meanwhile, counting has begun for three state assemblies. All eyes are on Maharashtra where the ruling Congress-NCP combine is expected to hold on to its reigns. It may also triumph in Arunachal Pradesh and Haryana. A victory will only strengthen the hands of the Congress at the Centre. This will also auger well for the economy, provided the UPA is willing to take tough decisions.

Inflation remains an overhang. Crude oil has already crossed $80 per barrel. The Prime Minister’s Economic Advisory Council sees inflation at 6% by March end. The latest weekly data will be out today.

Investors should wait for all the results to get over before taking a call on the market. One way of countering the uncertainty is to stick to a stock specific approach. But do proper due diligence before picking stocks, especially small- and mid-caps.

Results Today: ACE, Allahabad Bank, Asian Paints, Bhushan Steel, Biocon, Hanung Toys, Hikal, Hindustan Zinc, ICI India, Info Edge, Jubilant Organosys, Kale Consultants, Kirloskar Brothers, L&T, Noida Toll Bridge, Piramal Healthcare, Raymond, Reliance Media Works, Rolta, Unichem Labs, Vimta Labs and WWIL.

FY10 GDP is forecast to grow by 6.5% by the PM's Economic Advisory Council.

The procurement season has kicked off on a sour note, as purchases of rice by government agencies has dropped 14% from last year. This shows that food inflation coupled with rising commodity prices could hit India Inc. in the months to come.

FIIs were net sellers in the cash segment on Wednesday at Rs5.12bn on a provisional basis. The local funds were net sellers at Rs2.9bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs11.4bn. On Tuesday, the foreign funds were net buyers of Rs17.7bn in the cash segment. Their net investments in Indian stocks this year has crossed $14bn. Mutual Funds were net sellers at Rs3.18bn on Tuesday.

US stocks closed lower on Wednesday after a downgraded of Wells Fargo triggered a selloff in banks. The Dow Jones Industrial Average slid 92 points, or 0.9%. The S&P 500 index lost 10 points, or 0.9%. The Nasdaq Composite shed 13, or 0.6%.

Stocks had rallied through the early afternoon as investors welcomed better-than-expected results from Wells Fargo, US Bancorp and Morgan Stanley. But the downgrade of Wells Fargo knocked the wind out of the banking sector in the late afternoon, and that sent the rest of the market lower.

Bove of Rochdale Securities cut Wells Fargo to "sell" from "neutral" following the company's better-than-expected quarterly earnings. He said that the results were mixed, and that losses due to bad loans seem to be accelerating.

The CBOE Volatility index, Wall Street's so-called fear gauge, hit a 14-month low of 20.10 Wednesday morning. While that would seem to be a positive, since it implies investor anxiety is waning, it also suggests that investors could be getting too complacent and that a bigger stock retreat could be in store. The VIX bounced back after the stock selloff, ending at 22.22.

Investors are deep in the thick of the quarterly reporting period, with 135 of the S&P 500 companies reporting results this week.

After the close on Wednesday, eBay reported weaker quarterly earnings that topped estimates, but the online marketplace also issued a fourth-quarter earnings forecast at the low end of analysts' expectations. Shares fell 5% in extended-hours trading.

US stocks had slipped on Tuesday, as disappointing results from DuPont and Coca-Cola and a weaker-than-expected reading on the housing market caused investors to step back. But the rally found some new fuel through most of Wednesday until the 11th hour selloff.

So far, 122 companies, or nearly one-fourth of the S&P 500, have reported results. Profits are currently on track to have fallen 20.9% versus a year earlier, according to the latest from Thomson Reuters. Revenue is expected to have dropped 10.4% from a year ago.

The Dow 30's results are expected to be weaker, Thomson said, with profits due to slide just short of 30% versus a year ago.

Wells Fargo reported a profit of $3.2 billion in its latest quarter as strength in its mortgage-lending business and other units tempered the impact of losing billions in bad loans. The bank reported higher quarterly earnings that soundly topped estimates. Shares were up moderately in the morning, but they fell 1% by the end of the
day.

US Bancorp reported weaker quarterly earnings that topped estimates thanks to strong mortgage banking revenue, up 350% from a year ago. Shares rose 6.7%.

Morgan Stanley reported its first quarterly profit in a year thanks to strong fixed-income sales and trading revenue. The bank reported earnings and revenue that fell from a year ago but topped estimates. Shares gained 7%.

Dow component Boeing reported an earnings-per-share loss versus a year-ago profit due to expenses connected to its long-delayed 787 Dreamliner program. The aerospace developer also reported higher revenue. Both revenue and earnings results fell short of analysts' estimates. Boeing also cut its 2009 earnings outlook. Shares fell 1%.

After the close on Tuesday, Yahoo reported higher quarterly earnings that beat forecasts on weaker revenue that also beat forecasts. Shares climbed 2%.

In other company news, Sun Microsystems said late on Tuesday that it was cutting 3,000 jobs related to its purchase by Oracle. Its stock fell 3%.

All 50 states and the District of Columbia reported big jumps in unemployment rates in September versus a year ago. Fifteen states reported jobless rates above 10% in September, with Michigan's unemployment topping the list at 15.3%.

The US economy has shown signs of stabilizing or even improving in recent weeks, according to the Fed's "beige book" of economic conditions, released in the afternoon.

Treasury prices rallied, lowering the yield on the 10-year note to 3.41% from 3.34% late on Tuesday.

The euro jumped to a 14-month high against the dollar, extending its recent run against the US currency. The dollar inched higher versus the yen.

US light crude oil for December delivery rose $2.25 to settle at $81.37 a barrel on the New York Mercantile Exchange, pushing toward a fresh one-year high. Prices rose after the latest weekly supply data from the government showed a smaller-than-expected rise in crude supplies.

COMEX gold for December delivery rose $5.90 to settle at $1,064.50 an ounce. Gold has surpassed records repeatedly this month due to the weak dollar and longer-term worries about inflation.

European stocks turned around to end higher on Wednesday. The pan-European Dow Jones Stoxx 600 index rose 0.4% to 249.29, up for the second time in four sessions. The French CAC-40 index gained 0.1% to 3,873.22, while Germany's DAX index was up 0.4% at 5,833.49 and the UK's FTSE 100 index climbed 0.3% to 5,257.85.

Indian markets ended with losses for the second straight trading session on Wednesday. The BSE Sensex lost nearly 2% or 317 points and the NSE Nifty shedding ~80 points or 1.5% in the last couple of days.

Sentiments were hit after US market retreated from 12-month highs following disappointing housing and inflation data, Asian markets also were mostly in the red in addition even the European markets started off with a negative positive.

Disappointing quarterly earning by few companies like Tech Mahindra, Yes Bank and Sesa Goa further dampened the mood.

Finally, the BSE Sensex fell 213 points at 17,009 after touching a high of 17,248 and a low of 16,997. The index opened at 17,229 against the previous close of 17,223. The NSE Nifty fell 51 points to shut shop at 5,063.

In Asia, the Nikkei in Japan ended flat at 10,333, while Australia's S&P/ASX ended lower by 0.2% at 4,838. Shanghai SE Composite in China ended lower by 0.5% at 3,070 and Hang Seng index in Hong Kong was down 0.3% to end at 22,318.

In Europe, stocks were in the green. The FTSE in the UK was down 0.9%, The DAX in Germany was down 1.1% at 5,749 and the CAC 40 index in France slipped 1.4%.

Coming back to India, among the BSE sectoral indices, the Bankex index was the top loser, shedding 2.1%, followed by the Auto index that was down 2.1% and the BSE FMCG index was down 2%. On the other hand, BSE IT index gained 0.5% and the BSE Teck index added 0.4%.

Even the BSE Mid-Cap index slipped 1% while the BSE Small-Cap index was up 0.21%.

Among the 30-components of Sensex, 24 stocks ended in the red and 6 ended in the positive terrain. Among the major laggards were, Tata Steel, JP Associates, SBI, HDFC, Hero Honda and Tata Motors.

On the other hand, TCS, Tata Power, Bharti Airtel and DLF were among the major gainers.

Outside the frontline indices, the big losers in the broader market were Balrampur Chini, APIL, Bank of Baroda, Indian Bank and Renuka Sugar. On the other hand, gainers included Hind Copper, Jet Airways, HCL Tech, Gujarat NRE and Adani Ent.

The Supreme Court suggested arbitration in the Ambani gas dispute on Wednesday. Reliance Industries announced that the government has taken over the right to allocate gas and also told Supreme Court that the government’s gas utilization policy was a suitable arrangement for supply of fuel from field that it operates.

Shares of Reliance Industries ended flat at Rs2182 while, shares of RNRL slipped by 1.3% to Rs86.

Shares of Jindal Steel & Power surged by over 2% to Rs715 after reports stated that Essar Group withdrew from a bidding contest with the company for Australian coal explorer Rocklands Richfield Ltd.

The Jindal offer of 42 Australian cents per share remains on track with the company continuing its due diligence

The stock opened at Rs778 and made an intra-day high of Rs778 and a low of Rs694. Total traded volumes stood at 1.4mn shares.

Shares of IOC gained by 2% to Rs653 after the company announced a 1:1 bonus issue after a gap of six years. The last time the company had declared a bonus issue was in 2003.

The shareholders of IOC, by way of postal ballot, have approved the 1:1 bonus issue, IOC said in a filing to the Bombay Stock Exchange. The company has fixed October 30 as the record date for the purpose of ascertaining the eligibility of shareholders for the issuance of bonus shares, it added.

Shares of Polaris shot up by over 16% to Rs174 on the back of huge volumes. The stock opened at Rs151 and made an intra-day high of Rs176 and a low of Rs150. Total traded volumes stood at 5.6mn shares.

The company on October 20 announced its second quarter results for FY 2009-10. The Profit after tax grew (PAT) by 11% to Rs352mn from Rs318.4mn in the previous quarter. Income grew by 4% to Rs3.38bn from Rs3.26bn.

In dollar terms, Profit grew by 12% to 7.27 million from 6.52 million and income grew by 5% to 69.93 million from 66.61 million sequentially.

Sterlite Industries reportedly got a leg-up in its takeover battle for bankrupt copper miner Asarco in the US as a district court in Texas has allowed it to argue for its amended bid of US$2.6bn which was earlier rejected by a lower court.

The district court is expected to take a decision on the sale by the end of this month. Reports stated that the district court’s move would help them in presenting a better stand.

Shares of Sterlite Industries slipped 1.4% to Rs822. The stock opened at Rs837 and made an intra-day high of Rs837 and a low of Rs819. Total traded volumes stood at 0.26mn shares.

Yes Bank Q2 net profit was at Rs1.12bn as against Rs636.2mn in the same period last year. Interest income was at Rs5.27bn versus 4.9bn. On the other hand, interest expenses were at Rs3.67bn as against Rs3.67bn. The bank’s other income was at Rs1.52bn as against Rs802.7mn in the same period last year.

The stock slipped 4% to Rs244. The stock opened at Rs256 and made an intra-day high of Rs257 and a low of Rs241. Total traded volumes stood at 1.8mn shares.

Shares of Bank of India slipped by over 3% to Rs441 after the FIIs were prohibited from purchasing the bank’s stocks. The Central bank said that the foreign investors share holdings have reached the maximum limit allowed and any additional purchases will require regulatory approval.

Shares of HCL Technologies surged by over 4% to Rs322 after the company announced that it has partnered with Varicent Software for providing the latters solution products in the Asia-Pacific region. The stock opened at Rs311 and made an intra-day high of Rs328 and a low of Rs310. Total traded volumes stood at 0.5m shares.