NSE Bulk Deals to Watch - Oct 23 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
23-OCT-2009,AUSTRAL,Austral Coke & Projects L,TOUCHSTONE FINVEST SERVICES PVT LTD,BUY,1570660,14.75,-
23-OCT-2009,BANG,Bang Overseas Limited,ANGEL INFIN PRIVATE LIMITED,BUY,67166,61.41,-
23-OCT-2009,FCSSOFT,FCS Software Solutions Li,AANGI SHARES & SERVICES PVT. LTD,BUY,1288319,13.29,-
23-OCT-2009,FCSSOFT,FCS Software Solutions Li,NARENDRABHAI AMTRATLAL AMIN,BUY,790569,14.06,-
23-OCT-2009,FCSSOFT,FCS Software Solutions Li,PATEL PRAKASHBHAI NARSINHBHAI,BUY,1448144,12.85,-
23-OCT-2009,GOACARBON,Goa Carbon Ltd,PATEL PRITESH BIPIN,BUY,54980,104.17,-
23-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,10043892,23.53,-
23-OCT-2009,PONNIERODE,Ponni Sugars (Erode) Limi,NISHU FINLEASE PVT LTD,BUY,69127,108.56,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,BP FINTRADE PRIVATE LIMITED,BUY,103104,78.08,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,MBL & COMPANY LTD.,BUY,172297,78.46,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,147854,79.46,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,BUY,85940,77.39,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,OM INVESTMENTS,BUY,158400,79.04,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,TRANSGLOBAL SECURITIES LTD.,BUY,195317,79.20,-
23-OCT-2009,AUSTRAL,Austral Coke & Projects L,TOUCHSTONE FINVEST SERVICES PVT LTD,SELL,513660,14.51,-
23-OCT-2009,BANG,Bang Overseas Limited,ANGEL INFIN PRIVATE LIMITED,SELL,79625,61.55,-
23-OCT-2009,FCSSOFT,FCS Software Solutions Li,AANGI SHARES & SERVICES PVT. LTD,SELL,1342828,13.22,-
23-OCT-2009,FCSSOFT,FCS Software Solutions Li,FORTUNE GILTS PVT. LTD.,SELL,750000,12.80,-
23-OCT-2009,FCSSOFT,FCS Software Solutions Li,NARENDRABHAI AMTRATLAL AMIN,SELL,790569,14.25,-
23-OCT-2009,FCSSOFT,FCS Software Solutions Li,PATEL PRAKASHBHAI NARSINHBHAI,SELL,1508060,13.23,-
23-OCT-2009,GOACARBON,Goa Carbon Ltd,PATEL PRITESH BIPIN,SELL,54980,105.89,-
23-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,10047198,23.52,-
23-OCT-2009,PONNIERODE,Ponni Sugars (Erode) Limi,NISHU FINLEASE PVT LTD,SELL,345,106.75,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,BP FINTRADE PRIVATE LIMITED,SELL,99104,77.61,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,MBL & COMPANY LTD.,SELL,172297,78.24,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,114604,79.03,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,SELL,85940,76.80,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,OM INVESTMENTS,SELL,158400,79.15,-
23-OCT-2009,SELMCL,SEL Manufacturing Company,TRANSGLOBAL SECURITIES LTD.,SELL,195317,78.95,-
23-OCT-2009,XLTELENE,XL Telecom & Energy Ltd,SANSAR CAPITAL (MAURITIUS) LIMITED,SELL,135000,40.77,-

BSE Bulk Deals to Watch - Oct 23 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
23/10/2009 513349 AJMERA OPG SECURITIES P LTD B 212084 304.48
23/10/2009 513349 AJMERA OPG SECURITIES P LTD S 212084 304.52
23/10/2009 526397 ALPHAGEO IND PAT FINANCIAL CONSULTANT PVT LTD B 40630 269.14
23/10/2009 524760 ARVIND INTER SONU SINGH B 32118 15.97
23/10/2009 530355 ASIAN OILFIE SAMTA INVESTRADE PVT LTD B 122004 69.79
23/10/2009 532946 BANG HITESH SHASHIKANT JHAVERI B 70016 61.65
23/10/2009 532946 BANG BP FINTRADE PRIVATE LIMITED B 74409 61.42
23/10/2009 532946 BANG HITESH SHASHIKANT JHAVERI S 69859 61.65
23/10/2009 532946 BANG BP FINTRADE PRIVATE LIMITED S 75409 61.59
23/10/2009 533006 BIRLA COTSYN JMP SECURITIES PVT LTD S 1040000 0.89
23/10/2009 531682 CAT TECHNOL VINODAMRATLALNAAI S 195659 16.98
23/10/2009 531337 CHAN GUIDE I AMIT MHADYE B 35000 82.30
23/10/2009 533026 CHEMCEL PANDYA YAMINIBEN M B 181500 12.10
23/10/2009 533026 CHEMCEL LAXMAN DHIRUBHAI PARMAR B 145600 12.08
23/10/2009 533026 CHEMCEL RAJESH RAVINARAYAN HATI B 242602 12.10
23/10/2009 533026 CHEMCEL REKHA BHANDARI B 185400 12.23
23/10/2009 533026 CHEMCEL PRIYA NAHAR B 210000 12.07
23/10/2009 533026 CHEMCEL SUNIL SATWANI B 300000 12.05
23/10/2009 533026 CHEMCEL PANDYA YAMINIBEN M S 148795 12.16
23/10/2009 533026 CHEMCEL KAYCEE SHARES BROKING PVT LTD S 500000 12.10
23/10/2009 533026 CHEMCEL RAJESH RAVINARAYAN HATI S 242602 12.08
23/10/2009 532363 COMP-U-LEARN KISHORE BABURAM INENI B 72587 34.75
23/10/2009 532363 COMP-U-LEARN ANUPAMA DONEPUDI S 70000 34.75
23/10/2009 517973 DMC INTER KAPIL GUPTA S 40800 28.65
23/10/2009 530407 EPIC ENERGY RIKEEN PRADEEP DALAL B 50000 51.03
23/10/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 1672000 1.00
23/10/2009 532318 GEMINI COMMU AYODHYAPATI INVESTMENT PVT LTD S 500000 31.15
23/10/2009 531439 GOLDSTON TEC HEMANT MADHUSUDAN SHETH S 145000 32.03
23/10/2009 532764 GWALIOR CHEM OPG SECURITIES P LTD B 163389 105.99
23/10/2009 532764 GWALIOR CHEM OPG SECURITIES P LTD S 163389 105.93
23/10/2009 523467 JAI MATA GLA GROWMORE PROPERTIES PVT LTD S 77188 2.51
23/10/2009 523467 JAI MATA GLA Naman Securities & Finance Pvt. Ltd. S 70000 2.51
23/10/2009 506520 JAYSHREE CHE THE DIAMOND COMPANY LIMITED S 39662 32.49
23/10/2009 533103 JINDALCOTEX OPG SECURITIES P LTD B 177481 91.07
23/10/2009 533103 JINDALCOTEX OPG SECURITIES P LTD S 177481 91.05
23/10/2009 523475 LOTUS CHOC C ADITYA PAI B 154407 21.75
23/10/2009 523475 LOTUS CHOC C AMAN PAI B 154639 21.75
23/10/2009 523475 LOTUS CHOC C ASHWINI PAI B 154639 21.75
23/10/2009 523475 LOTUS CHOC C ABHIJEET PAI B 154639 21.77
23/10/2009 523475 LOTUS CHOC C V SHIVARAM KAMATH S 124066 21.75
23/10/2009 523475 LOTUS CHOC C V SHASHIDHAR KAMATH S 476238 21.75
23/10/2009 503776 MODIPON LTD ASHOKA MERCANTILE LTD B 48802 20.20
23/10/2009 503776 MODIPON LTD BHUPENDRA SANGHAVI S 47751 20.20
23/10/2009 531496 OMKAR OVERSE SHAH RONAK JITENDRAKUMAR B 30000 70.92
23/10/2009 531496 OMKAR OVERSE AMBIKA SHYAM SHUKLA B 50000 68.65
23/10/2009 531496 OMKAR OVERSE DINESHKUMAR RAMCHANDRA PANDEY B 36011 68.65
23/10/2009 531496 OMKAR OVERSE AMBIKA SHYAM SHUKLA S 47235 68.69
23/10/2009 531496 OMKAR OVERSE SUMIT CHAMPALAL AGARWAL S 55395 68.65
23/10/2009 532460 PONNI ERODE NISHU FINLEASE PVT LTD B 43903 107.87
23/10/2009 531273 RADHE DEVELO JAYENDRA THAKKAR JASMINE B 1410000 9.83
23/10/2009 531273 RADHE DEVELO JAYENDRA THAKKAR JASMINE S 1498709 9.26
23/10/2009 590077 RANKLIN SOLU DEEPAK KUMAR VYAS S 27000 36.36
23/10/2009 526927 RELIG TECH SANJAY PADODE S 781400 70.00
23/10/2009 531901 SAARC NET ALTRA CLEAN OPERATION B 405744 2.24
23/10/2009 531901 SAARC NET SANJEEV PATEL S 292000 2.24
23/10/2009 524540 SECUN HEALTH DISHA DHARMENDRA MADHANI B 22756 22.05
23/10/2009 532886 SEL MANUF TRANSGLOBAL SECURITIES LTD. B 210870 78.71
23/10/2009 532886 SEL MANUF MBL & Co. LTD. B 115526 77.78
23/10/2009 532886 SEL MANUF OPG SECURITIES P LTD B 197784 78.67
23/10/2009 532886 SEL MANUF Naman Securities & Finance Pvt. Ltd. B 131894 77.77
23/10/2009 532886 SEL MANUF TRANSGLOBAL SECURITIES LTD. S 210870 79.04
23/10/2009 532886 SEL MANUF MBL & Co. LTD. S 115526 78.23
23/10/2009 532886 SEL MANUF OPG SECURITIES P LTD S 197784 78.70
23/10/2009 532669 SOUTHBIOTEC IPRO FUNDS LIMITED B 206573 24.35
23/10/2009 532025 SOWBH MEDIA ANURADHA RATAKONDA S 31191 22.05
23/10/2009 531917 TWINSTA SO E RAJESHKUMAR RAMESHBHAI PATEL B 137000 3.23
23/10/2009 531917 TWINSTA SO E NAMITA STOCKTRADE PRIVATE LIMITED S 110200 3.23
23/10/2009 531249 WELL PACK PA BUNIYAD CHEMICALS LTD B 30000 275.26
23/10/2009 531249 WELL PACK PA PANDYA YAMINIBEN M S 26348 273.86

Post Session Commentary - Oct 23 2009

The Indian market closed with marginal gains after a sharp rally at the initial stage on the back of heavy profit booking at the higher level. The volatility was high during the session. The BSE Sensex closed just above the 16,800 mark while Nifty just below 5,000 mark. Though the mark opened with strong gains and traded firmly for most part of the day but the profit booking at the final hours did the spoil sport. The FMCG stocks remained in the lime light on the back of reports by Assocham that this sector is expected to witness growth of 20% in July-September period this fiscal up from 14% in the previous quarter. From the sectoral front, FMCG (3.03%), Health Care (2.05%), IT (2.04%) and Bankex (1.31%) indices closed with decent gains.

The market during the trading session witnessed high volatility. The market shot up since the initial bell breaking the past three days of losing trend tracking the firm cues from the global markets. On the global front, the US markets closed on a firm note on Thursday as investors were carried away by some better than expected earnings and shrugged off a disappointing jobless report. The participants welcomed fresh set of better-than-expected earnings reports mainly from Travelers and 3M that surprises the market. Fellow companies AT&T, McDonald''''s and Merck also reported better-than-expected earnings for the current quarter. In economic front, the latest weekly jobless claims came in at 531,000, which is worse than the 515,000 that had been widely expected. Continuing claims came in at 5.92 million, which is a bit worse than the 5.97 million that was expected. This is the lowest level since the week ended March 28. Moreover, the leading indicators for September shot up 1.0%, as against 0.8% that was widely expected.

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 18 stocks ended in positive territory and 12 in negative territory. The market breadth indicating the overall health of the market remained firm as 1,414 stocks closed in green while 1,327 stocks closed in red and 110 stocks remained unchanged in BSE.

The BSE Sensex closed higher by 21.07 points or (0.13%) at 16,810.81 and NSE Nifty closed up by 8.45 points or (0.17%) at 4,997.05. BSE Mid Caps and BSE Small Caps closed with gains of 66.62 points and 25.73 points at 6,510.89 and 7,673.50 respectively. The BSE Sensex touched intraday high of 17,006.77 and intraday low of 16,765.20.

Losers from the BSE Sensex pack are Reliance Inds (4.04%), Grasim Inds (3.12%), Tata Motors (2.31%), L&T (2.31%), Tata Steel (2.20%), Bharti Airtel (1.63%), Reliance Infra (1.56%), Bhel (1.56%) and Hero Honda (1.20%).

Gainers from the BSE Sensex pack are ITC (4.97%), M&M (2.80%), Tata Power (2.59%), Hindalco Inds (2.28%), Infosys (2.20%) and TCS (2.18%).

On the global markets front, the Asian markets that opened before the Indian market, closed in green. Shanghai Composite, Hang Seng, Jakarta Composite, Strait Times and Seoul Composite ended up by 1.85%, 1.71%, 1.43%, 1.24% and 0.60% at 3,107.84, 22,589.73, 2,467.95, 2,715.34 and 1,640.17 respectively.

European markets, which opened after the Indian market, are trading higher. In Paris the CAC 40 is up by 0.91% at 3,855.54, in Frankfurt DAX index is trading up by 0.89% at 5,814.21 and in London FTSE 100 is higher by 1.12% at 5,265.70.

BSE REALTY index was at 4,522.81 down by 1.47 points or by (0.03%) The main losers were Penland Ltd down by (3.39%) at Rs.88.25, Unitech Ltd down by (1.65%) at Rs.98.65, Ansal Infras down by (1.34%) at Rs.77.55, Phoenix Mill down by (1%) at Rs.167.85, Housing Dev down by (0.71%) at Rs.376.4.

BSE METAL index was at 15,420.96 up by 67.07 points or by (0.44%) The main gainers were Hind.Zinc up by (7.6%) at Rs.934.05, Welsp Guj Sr up by (3.7%) at Rs.280.05, Hindalco In up by (2.28%) at Rs.141.35, Jindal Saw up by (2.09%) at Rs.801.9, Sterlite In up by (1.69%) at Rs.829.35.

BSE BANKEX index was at 10,231.41 up by 132.76 points or by (1.31%) The main gainers were Indian Overs up by (4.75%) at Rs.133.45, Indus Ind Bk up by (4.55%) at Rs.139.05, Yes Bank up by (3.4%) at Rs.255.65, Allahabad Bk up by (3.17%) at Rs.130.15, Axis Bank up by (2.93%) at Rs.994.8.

BSE FMCG index was at 2,824.71 up by 82.98 points or by (3.03%) The main gainers were Dabur India Ltd. up by (5.85%) at Rs.151.05, I T C Ltd up by (4.97%) at Rs.259.85, Godrej Cons up by (2.44%) at Rs.269.2, Colgate Palm up by (2.19%) at Rs.708.4, Britania In up by (1.25%) at Rs.1721.65.

BSE HC index was at 4,401.80 up by 88.32 points or by (2.05%) The main gainers were Dishman Phar up by (7.38%) at Rs.259.75, Pirama Healt up by (6.71%) at Rs.390.6, Dr.Reddys Laboratories Ltd. up by (6.21%) at Rs.960.2, Lupin Ltd up by (4.45%) at Rs.1252.6, Ipca Lab Ltd.* up by (3.03%) at Rs.835.

BSE OIL&GAS index was at 10,006.69 down by 278.73 points or by (2.71%) The main losers were Gail India down by (4.32%) at Rs.362.85, Reliance down by (4.04%) at Rs.2047.3, Aban Offsho down by (1.67%) at Rs.1540.6, Hindustan Petroleum Corp. Ltd. down by (1.17%) at Rs.353.7, Bharat Petroleum Corporation L down by (0.68%) at Rs.518.7.

BSE IT index was at 4,528.43 up by 90.62 points or by (2.04%) The main gainers were Mphasis Ltd up by (3.89%) at Rs.673.7, Rolta Ind up by (3.82%) at Rs.194.3, Aptech Ltd up by (2.55%) at Rs.263.15, Patni Comput up by (2.52%) at Rs.453.9, Infosys Technologies Ltd.-Ordi up by (2.2%) at Rs.2260.2, The main losers were Oracle Fin

Jubilant Organosys surged 12.52% to close at Rs 237.30 strong quarterly results. The company has posted a net profit of Rs 554.90 million for the quarter ended September 30, 2009 as against net loss of Rs (243.90) million for the quarter ended September 30, 2008. Moreover, the company’s board has approved raising capital through issue of equity or equity related instruments upto Rs 500 Crores.

Piramal Health Care shot up 6.71% to close Rs 390.60 on good quarterly numbers. The company has posted a net profit for the period of Rs 1142.20 million for the quarter ended September 30, 2009 as against Rs 694.40 million for the quarter ended September 30, 2008.

Sensex see-saws, closes marginally higher

When all the global indices staged a strong performance, the Sensex remained volatile and shed the heavy gains of the morning trades. The day started with the overnight gains of the US markets that jumped by over1%. The trend was continued by the Asian indices that registered gains in the range of 0.13-1.85% each, with India's Sensex losing the most whereas China's Shanghai Composite rising the most. Even FTSE 100 that opened strongly is trading at 5265 with 58 points or about 1% gains at the time of writing the report. The Singapore Nifty rose marginally by 10 points in today's trade. Amid selling pressure in the heavyweights like Reliance Industries Ltd (RIL), the Sensex lost the morning gains and closed marginally higher by 0.13% over its yesterday’s closing.

On the back of heavy sell-off in the major index components, the Sensex that once touched 17000 level and traded with strong gains, lost steam in the closing hours and ended the day slightly higher with marginal gains despite global indices remaining strongly upbeat. The Sensex that opened

at 16796 with gains of mere 6 points later went to hit the high of 17007. However it couldn't hold on to such gains, remained volatile and ended the day with marginal gain of 21 points amid the heavy selling in the Sensex heavyweights. The Indian markets ignored the strong indicators from the European and Asian markets. While the Sensex during the day saw the low of 16765, it closed at 16811. While Nifty gained mere 8 points to end the day at 4997, 3 points below the significant psychological level of 5000. The market breadth was fairly positive, as out of the 2851 stocks traded on the BSE, 1,414 stocks advanced, whereas 1,327 stocks declined. One hundred and ten stocks closed unchanged.

Among the sectoral indices, BSE FMGC surged the most with the gains of 3.03% followed by BSE HC and BSE IT that rose by over 2% each. Among the losers, BSE Oil & Gas declined by 2.71% and BSE CG slid by 1.44%. On the stocks’ front, Jubilant Organosys jumped the most and surged by 12.52% to Rs257.30 followed by Asian Paints that rose by 9.54% to Rs1,676.15 and Hindustan Zinc that advanced 7.60% to Rs934.05. While stocks like Piramal Healthcare, Dr Reddy’s Laboratories, Dabur India and IRB Infrastructure ended the day with gains of over 5% each. Among the losers, Zee Entertainment fell the most by 5.04% to Rs227.00 followed by Gail India that fell by 4.32% to Rs362.85, RIL slid by 4.04% to Rs2,047.30. Nagarjuna Construction, Punj Llyod, Sintex Industries, Grasim Industries and Hindustan Copper declined by over 3% each.

On the turnover front, Over 1.06 crore shares of Unitech changed hands on the BSE followed by Ispat Industries (0.91 crore shares), Jaiprakash Associates (0.55 crore shares), Sesa Goa (0.46 crore shares) and GVK Power & Infrastructure (0.33 crore shares).

Events outcome

Bharat Forge's top line slid by 36%
Century Textiles Q2 profit rose to Rs82.63 crore
NTPC's net profit was up marginally
BHEL’s Q2 net profit surged by 39% to Rs857.9 crore
Alphageo India recorded net profit of Rs9.50 crore
ITC’ net profit was up by 25.8% to Rs1,009.90 crore
IDFC’ net profit rose by 26% to Rs291.84 crore

Derivatives: Fresh shorts seen building-up in the Nifty and Stock futures November series

Fresh shorts are seen built-up in the November series although the next week will see a clearer picture; we expect huge volatility as we enter the October expiry week.

Besides the extremely weak global indices throughout the previous week, the pending court hearing in the Reliance Industries and Reliance Natural Resources gas disputes dented the domestic market sentiment heavily thus reversing the unabated bullish run. Besides Reliance Industries, the 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. Although the market notched up some gain on Friday 23rd October 2009, overall for the week most of the benchmark indices fell. On Friday Reliance further corrected as partner in KG Basin- Hardy Oil said a D9 well will be plugged and abandoned.

The S&P CNX Nifty closed 8.45 points higher on Friday 23rd September 2009 compared to the previous trading day. It closed below the psychological 5,000 mark after moving above and below that level during the day. The Nifty future however closed above the 5000 mark at a premium of 10.85 points to the underlying. Although the Nifty October series shed OI by 18.91 lakh shares, the November series added 20.55 lakh shares in OI on Friday. The total OI in the October series stood at 2.01 crore shares, while that in November series was 61.53 lakh shares.

The average volume in the F&O segment during the current series was Rs 67,525.72 crore as the volumes remained at higher levels during the week gone-by. The average volume during the previous week was Rs 77,043.71 crore. On Monday it self there was aggressive put buying of 4900 to 5300 strikes with lower open interest (OI) thus indicating covering of the put wrote at these strikes earlier. The trend continued through-out the week. Simultaneously there was call writing at 5100 and 5200 strikes indicating bearish undertone.

The stock future segment also witnessed unwinding of OI in the current series while fresh positions were seen building up in the next series. For e.g. During the week under review the major stock underlying like Reliance, Tata Steel, Tata Motors and Unitech shed 3.98 lakh shares, 21.24 lakh shares, 36.38 lakh shares and 50.94 lakh shares in OI respectively. Other major underlying like ICICI Bank, SBI, Sail, Bharti and Maruti also shed OI in the current series. However fresh short position seems to be building-up in the November months Nifty as well as stock futures.

The market-wide open interest (OI) on Friday stood at 203.68 crore shares, thus gaining by 2.25 crore shares as compared to the previous trading day. The stock future contributed the major addition

On Friday there was fresh OI build-up in the Nifty 5000 and 5100 strike calls indicating calls being wrote at these levels. Besides fresh puts wrote earlier at strikes ranging from 4900 to 5300 were being covered. More importantly fresh aggressive call writing is witnessed in the above strikes of November series as well. The October Nifty 5000 and 5100 strike call options added 2.64 lakh shares and 2.18 lakh shares in OI taking the total OI of these strikes to 40.16 lakh shares and 56.26 lakh shares respectively. The most active October puts viz- 4900, 5000 and 5100 strikes shed 8.09 lakh shares, 3.43 lakh shares and 3.71 lakh shares in OI.

The ongoing Reliance and Reliance Natural Resources gas dispute will continue to exert downward pressure on the market as the market enters the October expiry week. It would be very important to monitor the F&O segment as it would indicate a trend from the fresh positions being taken in the November series. So far fresh shorts are seen built-up in the November series although the next week will see a clearer picture. Expect huge volatility as we enter the October expiry week.

Final batch of Q2 results, RBI policy review to dictate trend results

Liquidity holds key for stocks after most Q2 results announced so far exceeded market expectations. A number of companies are yet to announce Q2 results. Most of the remaining Q2 results will be out next week, the deadline for the results being 31 October 2009, as per the listing norms.

The major event next week is the quarterly review of the monetary policy by the Reserve Bank of India (RBI) on Tuesday, 27 October 2009. The RBI is expected to keep its benchmark lending and borrowing rates unchanged on Tuesday. 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 centred around the timing of the exit policy.

The whole price index (WPI) is expected to gallop in coming months as the statistical base effect becomes unfavorable and an economic recovery spurs demand for manufactured products. The Consumer Price Index is already in double digits.

Bank stocks will be action after comments from a finance ministry official on Friday, 23 October 2009, dashed hopes for the central bank relaxing mark-to-market rules for bank's debt holdings. The market has been agog with talks of the central bank hiking the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM) category, possibly at the quarterly monetary policy review on 27 October 2009.

Among the major results, car major Maruti Suzuki will announce Q2 results on Saturday, 24 October 2009. Ranabxy, Tata Motors, Idea Cellular and Tata Communications, are set to announce results on Monday, 26 October 2009. Tata Steel, Hindustan Unilever, Wipro, HCL Technologies and Reliance Power, unveil results on Tuesday, 27 October 2009. ACC, Cipla, Sun Pharma, GAIL India, Power Grid Corporation and Ambuja Cements, will declare results on Wednesday, 28 October 2009.

M&M, ONGC, Tata Power, BPCL, Cairn India, Grasim, Reliance Industries (RIL), DLF and Punjab National Bank, will come out with Q2 results on Thursday, 29 October 2009, to be followed by ABB, Sterlite Industries, ICICI Bank, National Aluminium Company, Bharti Airtel, Reliance Communications, Reliance Capital and Steel Authority of India on Friday, 30 October 2009. Hindalco, Jindal Steel & Power, State Bank of India, Reliance Infrastructure, Suzlon Energy and Unitech, will unveil Q2 results on Saturday, 31 October 2009.

The results announced so far have been mostly stronger than expected. The management guidance has been mixed. L&T said the company is likely to see order inflows rise over 30% in the financial year ending March 2010 and sales rise of 15%. The recent surge in crude oil prices may boost orders from the hydrocarbon sector, it said. The company said revival of infrastructure development in the Gulf augurs well as the company has a significant presence in the region.

IT major TCS said it has a good business pipeline and is pursuing 20 to 25 large outsourcing deals. Earlier, 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. Infosys, however, said strengthening rupee is a big concern for its earnings. The rupee has pared gains after hitting its highest level in more than a year recently.

Cement major UltraTech Cement said new capacities which are at various stages of implementation will result in pressure on margins for the cement industry. 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.

Two-wheeler maker Bajaj Auto said raw material costs are likely to witness an upward trend in the coming quarters. The company said higher sales volumes from new launches will help leverage fixed costs and thus help partially offset a likely pressure on margins from higher input costs.

Sensex scores small gains amid high volatility scores

Volatility ruled the roost as the key benchmark notched up small gains on firm global stocks. The BSE 30-share Sensex rose 21.07 points or 0.13%, up close to 55 points from the day's low and off close to 200 points from the day's high. Capital goods stocks fell. Reliance Industries (RIL) slumped as partner Hardy Oil said a D9 well will be plugged and abandoned. But, IT and FMCG stocks rose.

As per provisional data, foreign funds today, 23 October 2009, offloaded stocks worth a net Rs 478.80 crore. Domestic funds bought equities worth a net Rs 172.99 crore

The S&P CNX Nifty closed marginally below the psychological 5,000 mark after moving above and below that level during the day. The Nifty had fallen below the 5,000 mark on Thursday on weak global stocks.

The BSE Sensex fell below the psychological 17,000 mark after breaching that mark at the onset of the trading day. The market breadth was marginally positive.

Intraday volatility was high. The market surged at the onset of the trading session, recovering from a 3% slide in the past three days, on firm global stocks. It pared gains in mid-morning trade. The market regained strength in early afternoon trade before paring gains. Immense volatility was witnessed later. The market regained positive zone after slipping into the red for a brief period in mid-afternoon trade. The market moved between positive and negative terrain in late trade.

The Securities and Exchange Board of India has allowed stock exchanges to set their trading hours between 9:00 IST and 17:00 IST, it said in a statement on Friday. The stock markets currently trade between 9:55 IST and 15:30 IST.

On the political front, the ruling Congress party-led alliance won two state polls on Thursday and was set to form the government in a third, a result that gives more room for the alliance to push economic reforms. Elections were held last week in Maharashtra, northern Haryana and Arunachal Pradesh in polls seen as a major test for the Congress coalition after a strong victory in Lok Sabha polls in May this year. The party retained power in Maharashtra and Arunachal Pradesh, and was expected to hold on to power in Haryana.

On the macro front, the RBI in its report on trend and progress of banking in India for 2008/09 released on Thursday, 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

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 on Thursday 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.

RBI on Thursday 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 central bank also sounded a note of caution on securitisation and asset derivative deals.

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 rose on Friday, reversing most of their previous session's drop, with French food group Danone rising after results pleased investors. The key benchmark indices in France, Germany and UK were up by between 0.97% to 1.28%.

The euro zone flash composite output index rose to 53 in October 2009, according to Markit, up from 51.1 in September 2009 and a 22-month high for the index. The services business activity index rose to 52.3, up from 50.9 in September 2009. Manufacturing PMI rose to 50.7, from 49.3 a month ago. "The flash PMI's indicate that the Euro zone economy has entered Q4 on a strong note, with growth accelerating in both manufacturing and services," said Chris Williamson, chief economist at Markit.

A closely-watched gauge of German business sentiment posted a slightly smaller-than-expected rise in October 2009. The Munich-based Ifo Institute's October climate index rose to 91.9 from 91.3 in September 2009, news reports said.

British gross domestic product unexpectedly shrank by 0.4% in the third quarter on a month-on-month basis, according to data from the Office for National Statistics. It was the sixth straight contraction for the UK economy. Economists had been expecting a modest 0.1% rise. Compared to the third quarter of 2008, GDP declined 5.2%.

Asian shares nudged higher on Friday on the back of upbeat earnings reports from the United States while the dollar resumed a broad slide after a Fed official indicated US interest rates would remain low. The key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.15% to 1.71%.

Auto makers and banks led rally in Chinese stocks on a view the economic recovery would continue. The Shanghai Composite rose 1.85%.

China's exports are likely to resume year-on-year growth this quarter as global trade slowly recovers, a Ministry of Commerce researcher said in remarks published on Friday. Exports have been falling from year-earlier levels since last November. In September 2009, the decline narrowed to 15.2% from 23.3% in August 2009.

That improvement was likely to continue because of the low base of comparison in the October-December quarter of 2008, researcher Liu Xueqin was quoted as saying by the International Business Daily, a Ministry of Commerce newspaper.

Meanwhile, China's banking watchdog has reportedly instructed lenders to carry out quarterly stress tests as part of a drive to strengthen credit controls and liquidity management. A recent circular from the China Banking Regulatory Commission orders banks to measure their capacity to withstand liquidity risks and work out a corresponding strategy to handle those risks

Trading in US index futures indicated a slightly firmed start of US stocks on Friday, 23 October 2009.

US markets rallied on Thursday as investors cheered some better than expected earnings and shrugged off a disappointing jobless report. Financials led the rally. The Dow jumped 131.95 points, or 1.3%, to 10,081.31. The S&P 500 index rose 11.51 points, or 1.1%, to 1,092.91. The Nasdaq rose 14.56 points, or 0.7%, to 2,165.29.

In the day's economic news, jobless claims rose 11,000 to a seasonally adjusted 531,000 last week, more than expected. An index of leading economic indicators rose 1% in September 2009, touching a two-year high and more than the 0.8% expected.

Nobuo Tanaka, executive director of the IEA, said in a interview to a news agency on Thursday that a rapid rise in oil prices could hamper the global economic recovery. He, however, added that it was too early to say if that scenario was unfolding now. The IEA has previously expressed concerns of a possible price spike if insufficient investment is made to add new sources of oil to keep up with demand. Crude is hovering close to a one-year high.

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 rose 21.07 points or 0.13% to 16810.81. The Sensex rose 217.03 points at the day's high of 17,006.77 in early trade. The barometer index fell 24.54 points at the day's low of 16,765.20 in afternoon trade.

The S&P CNX Nifty rose 8.45 points or 0.17% to 4,997.05. Nifty October 2009 futures were at 5007, at a premium of 9.95 points as compared to the spot closing of 4,997.05. Turnover in NSE's futures & options (F&O) segment was Rs 79,719.69 crore, lower than Rs 86,383.23 crore on Thursday, 22 October 2009.

BSE clocked a turnover of Rs 5102 crore, lower than Rs 5806.58 crore on Thursday, 22 October 2009.

The market breadth, indicating the overall health of the market was marginally positive. The breadth weakened when compared to a strong breadth in early trade. On BSE, 1408 shares advanced as compared with 1324 that declined. A total of 100 shares remained unchanged.

Among the 30-member Sensex pack, 18 rose while rest fell.

From a 17 month high of 17,326.01 on 17 October 2009, the Sensex had 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 7,163.50 points or 74.25% in calendar year 2009, as on 23 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8650.41 points or 106%, as on 23 October 2009 FII inflow in the calendar year 2009 totaled Rs 67,788.90 crore (till 22 October 2009).

Coming back to today's trade, the BSE Mid-Cap index rose 1.03% and the BSE Small-Cap index rose 0.34%. Both the indices outperformed the Sensex.

Sectoral indices on BSE displayed mixed trend. The BSE FMCG index (up 3.03%), the BSE Healthcare index (up 2.05%), the BSE IT index (up 2.04%), the BSE Bankex (up 1.31%), the BSE Teck index (up 0.92%), the BSE Auto index (up 0.58%), the BSE Consumer Durables index (up 0.51%), the BSE Metal index (up 0.44%), outperformed the Sensex.

The BSE Oil & Gas index (down 2.71%), the BSE Capital Goods index (down 1.44%), the BSE PSU index (down 0.05%), the BSE Realty index (down 0.03%), the BSE Power index (up 0.05%), underperformed the Sensex.

Energy major Reliance Industries fell 4.04% to Rs 2047.30 as partner Hardy Oil said a D9 well will be plugged and abandoned. Shares of Hardy Oil plunged 35.3% in London. Hardy holds a 10% participating interest in the D9 block, which is located in the Krishna Godavari basin on the east coast of India. Reliance Industries is the operator and holds a 90% stake.

Meanwhile, RIL told the Supreme Court on Thursday it had no knowledge of the pact between its chairman Mukesh Ambani and his younger brother Anil. The stock came off the day's high of Rs 2154. On the third day of hearing on the gas supply dispute between the group firms of the Ambani brothers, Justice R.V. Raveendran asked RIL to satisfy the bench that the MoU, signed in 2005, was not between two companies, but two individuals. The bench also enquired if the pact, which has not been made public till date, could be produced before the 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.

Anil Ambani's Reliance Natural Resources claims the contract is valid and wants the court to direct Reliance Industries to supply it with 28 mmscmd of gas for 17 years at almost half the government-set price of $4.2 per mmBtu.

The Supreme Court will resume hearing the case next Tuesday, with Reliance Industries expected to conclude its initial arguments by Thursday, 29 October 2009. The court will then hear arguments by Reliance Natural Resources, following which it will consider a petition by the government to become a party to the dispute.

India's largest power maker by sales Bharat Heavy Electricals fell 1.56% on profit taking after strong Q2 results. Net profit rose 39.31% to Rs 857.88 crore in Q2 September 2009 over Q2 September 2008, surpassing market expectations. The company announced result during market hours today.

India's largest engineering and construction firm by sales Larsen & Toubro fell 2.31%, extending Thursday's 3.86% fall, 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 on Thursday.

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.

IT stocks rose on increased optimism over the growth outlook for the sector. India's largest software services exporter TCS rose 2.18%. 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 rose 2.11% even as its ADR fell 1.26% on Thursday. Wipro has bagged a 10-year total outsourcing contract from Delhi International Airport (DIAL) to provide information technology infrastructure and services for the Indira Gandhi International Airport (IGIA).

IT bellwether Infosys Technologies rose 2.2% as its ADR rose 0.75% on Thursday. 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.

A foreign brokerage said in a recent note that it expects 2010 IT budgets to be strong given a significant pent-up demand.

India's largest cigarette maker by sales ITC rose 4.97% after net profit rose 25.81% to Rs 1009.91 crore in Q2 September 2009 over Q2 September 2008. The result which hit market during market hours, surpassed market expectations.

A surge in profit margins and a decent growth in revenue boosted the bottom line. ITC's operating profit margin surged to 36.59% in Q2 September 2009 from 31.4% in Q2 September 2008

Among other FMCG stocks, Hindustan Unilever, Dabur India, REI Agro, Tata Tea rose by between 0.88% to 5.85%.

India's largest thermal power producer by sales NTPC rose 0.8% after net profit rose 1.96% to Rs 2151.95 crore in Q2 September 2009 over Q2 September 2008. The results hit the market during trading. The government on Monday approved a 5% stake sale in NTPC.

Among other power stocks, Tata Power Company, CESC , Power Grid Corporation of India, rose by between 0.92% to 2.59%.

Bank stocks rose on bargain hunting after a recent slide triggered by concerns 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 rose 1.4% as its ADR rose 0.64% on Thursday. The bank recently reduced auto loan rates by 50 basis points.

India's largest bank by branch network State Bank of India rose 1.21%. 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.

India's second largest private sector bank by net profit HDFC Bank rose 1.4% as its ADR rose 1.76% on Thursday. 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, comments from a finance ministry official on Friday, 23 October 2009, dashed hopes for the central bank relaxing mark-to-market rules for bank's debt holdings. The market has been agog with talks of the central bank hiking 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.

A news agency quoted an unnamed finance ministry official as saying that there was no compulsion over the Reserve Bank of India right now to raise the HTM cap and the finance ministry was not pushing for it. 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 on Thursday, 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 rose 1.61%. 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.

Ultratech Cement fell 0.5%, extending losses this week, 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, Grasim Industries and ACC fell by between 0.45% to 3.12%.

Jaiprakash Associates fell 0.34%, extending Thursday's 6.84% slide. 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, 21 October 2009. The company also announced 1:2 bonus issue at the time of announcing Q2 results

Telecom stocks fell. 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 1.63%.

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) fell 1.14%. 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 Bureau of Investigation (CBI) on Thursday raided the offices of the Department of Telecom (DoT), alleging criminal conspiracy between DoT officials and private firms in the allotment of 2G spectrum. According to the agency, all records pertaining to the allocation of spectrum to new entrants in January 2008 are being examined to ascertain whether or not there was any irregularity in the process.

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. The housing market had slumped last year amid a global credit crunch and buyers fearing job losses. Indiabulls Real Estate, Omaxe, Anant Raj Industries, DLF rose by between 0.05% to 2.51%.

Auto stocks rose on expectation of strong Q2 September 2009 result. Bajaj Auto rose 0.91%. 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.

India's top small car maker by sales Maruti Suzuki India rose 2.01%. 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 tractor maker by sales Mahindra & Mahindra rose 2.8%. 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.

But, India's largest truck maker by sales Tata Motors fell 2.31%.

Hero Honda Motors fell 1.21% 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 21 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.

Sugar stocks rose on bargain hunting after recent losses triggered by the government's decision 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 rose by between 2.38% to 5.68%.

Cals Refineries clocked highest volume of 2.63 crore shares on BSE. Unitech (1.06 crore shares), Radhe Developers (0.92 crore shares), Ispat Industries (0.91 crore shares) and FCS Software (0.66 crore shares) were the other volume toppers in that order.

Reliance Industries clocked highest turnover of Rs 332.28 crore on BSE. Sesa Goa (Rs 151.12 crore), Larsen & Toubro (Rs 131.88 crore), Jaiprakash Associates (Rs 130.95 crore) and State Bank of India (Rs 130.27 crore) were the other turnover toppers in that order.

Pre Session Commentary - Oct 23 2009

Today domestic markets are likely to open positive amid bounce back in Asian Market, solid start in SGX Nifty and higher US Market overnight. The trade would be volatile with positive bias. One could expect outperformance from Realty, Banking and Metals sphere as theses sectors were hammered in previous sessions. Today domestic market is likely to trade range bound with positive bias.

On Thursday, Indian market plunged for the third straight session on sluggish global trend and rise in inflation over one per cent. The opening was subdued followed by range bound volatility with negative bias. Fragile trade in European market drifted the bourses downward in late afternoon trade. 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. Inflation rose to 1.21% for the week ended Oct 10 from 0.92% the week before. Realty (4.59%), capital goods (2.69%), consumer durable (2.65%) and banking (2.05%) stocks suffered the most while selective FMCG (0.95%) and IT (0.79%) counters attracted good buying support. The Market breadth, indicating the overall strength of the market, was weak.

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.

On Thursday, the US stock market closed positive on strength in blue chip companies and bounce back in financial stocks. Participants welcomed fresh set of better-than-expected earnings reports mainly from Travelers and 3M that surprises the market. Fellow companies AT&T, McDonald''s and Merck also reported better-than-expected earnings for the current quarter. Their cumulative strength supported the Dow outperform the other Indices throughout the session. On the other hand, Financials bounced back with strength to provide the bourses with leadership amid by pleasing quarterly reports from PNC, SunTrust and Fifth Third. Materials stocks too traded strong on a pullback by the U.S. dollar. In economic news, the weekly jobless claims mounted at 531,000, over 515,000 that had been widely expected. Continuing jobless claims fell to 5.92 million, off 98,000. This is the lowest level since the week ended March 28. Leading indicators for September grew 1.0%, as against 0.8% that was widely expected. Home prices for August slide 0.3% month-over-month, which missed the 0.3% gain that was widely forecast. US light crude oil futures for November delivery closed down 0.4% at $81.05 per barrel, on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) ended with gain of 131.95 points at 10,081.31. NASDAQ index surged 14.56 points to 2,165.29 and the S&P 500 (SPX) closed higher by 11.51 points at 1,092.91.

Indian ADRs ended mixed on Thursday. In the banking space, HDFC Bank was up 1.76% and ICICI Bank was up 0.64%. In the IT space, Infosys was up 0.75%, Patni Computers was up 1.91% while Wipro was down 1.26% and Satyam Computers was down 8.24%. In the telecom space, Tata Communication was down 0.45% and MTNL was down 0.87%. In other sectors, Dr Reddy''s Labs was up 1.03%, Sterlite Industries was up 0.34% while Tata Motors ended down 2.66%.

The FIIs on Thursday stood as net seller in equity whereas net buyer in debt. Gross equity purchased stood at Rs. 2,758.30 crore and gross debt purchased stood at Rs. 892.00 crore, while the gross equity sold stood at Rs. 3,149.90 crore and gross debt sold stood at Rs. 425.30 crore. Therefore, the net investment of equity and debt reported were Rs. (391.70) crore and Rs. 467.40 crore respectively.

On Thursday, the partially convertible rupee ended at 46.73/74 per dollar, 0.54% weaker than previous closing at 46.48/49 per dollar on decline in global equities. The sliding share prices raised concerns whether robust inflows seen recently in 2009 could be sustained ahead, while the dollar''s rise overseas also hampered sentiment.

On BSE, total number of shares traded were 42.02 crore and total turnover stood at Rs. 5,806.58 crore. On NSE, total number of shares traded were 77.08 crore and total turnover was Rs. 17,267.19 crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 46145149 shares, followed by Jaiprakash Associates with 28824091, Suzlon Energy with 15003600, Bharti Airtel with 11729200 and DLF with 11640523 shares.

On NSE Future and Options, total number of contracts traded in index futures was 740133 with a total turnover of Rs. 18,099.14 crore. Along with this total number of contracts traded in stock futures were 713598 with a total turnover of Rs. 24,553.90 crore. Total numbers of contracts for index options were 1623997 with a total turnover of Rs. 41,119.97 crore and total numbers of contracts for stock options were 76245 and notional turnover was Rs. 2,610.21 crore.

Today, Nifty would have a support at 4,982 and resistance at 5,042 and BSE Sensex has support at 16,717 and resistance at 16,989

Positive opening for Sensex

After two consecutive days of losses, global indices traded in green wherein US indices recorded strong overnight gains of over 1% each, however the European markets (FTSE 100) on Thursday fell by close to 1%. In today’s trade, the major Asian indices were trading in positive zone with the gains in the range of 0.54%-1.82% each, with China's Shanghai Composite gaining the most. While Singapore Nifty was trading 48 points higher its previous day’s settlement price. Such positive and strong global cues may help Sensex to open higher and trade strongly through the day. With major corporates announcing their Q2 numbers today, markets to following the results closely. Among the local indices, the Nifty could test the 5050- 5100 range on the up side while on the up side it could find support at 4950 and 4900. The Sensex is likely to get support at 16606 and may face resistance at 17000.

On the back of rising optimism on the Q2 corporate earnings front and and better-than-expected results announced by four component of the indices', Dow managed to regain the significant 10000 level and closed with massive gains of 132 points or 1.3% higher at 10081, while S&P 500 and Nasdaq jumped by 1.06% and 0.68% respectively.

Among the Indian ADRs trading on the US bourses Infosys , Dr Reddy's, ICICI Bank and HDFC Bank closed with gains of 0.64%-1.76%. While rest all ADRs that includes Satyam, MTNL, Tata Motors, Wipro, VSNL and Rediff ended the day with the losses in the range of 0.45%-8.24% each, with Satyam falling the most.

In the commodity space, Crude oil prices fell marginally, with the Nymex light crude oil for November series declining by $0.18 to close at $ 81.19 a barrel. In the metals space, the Comex Gold for December series slumped by $5.90 to settle at $1058.60 a troy ounce, while Comex Silver for December series fell by $0.28 to settle at $17.55 a troy ounce.

Daily trend of FII/MF investment in equities

On October 22, 2009, FIIs were the net sellers of the Indian Stocks in the tune of Rs391.70 crore (with the gross purchase of Rs2758.30 crore and gross sales of Rs3149.90 crore). While the Domestic mutual funds mutual funds, on October 21, 2009, were the net seller of the stocks in the tune of Rs558.00 crore (with gross purchase of Rs680.10 crore and gross sales of Rs1238.10 crore).

Headlines for the day

Videocon offers access to DTH via DVD player

Petronet to buy 10% in Dahej project

Jubilant Organosys to sell non-core businesses

Credit growth at a 12-year low of 10.75%

Satyam's virtual pool staff to get no pay after Dec 18

HCC bags Rs167 crore water supply project in Gujarat

Events for the day

Major results: HCC, SKF India, BHEL, Bharat Forge, Birla Corporation, Dr Reddy, Edelwiess Capital, Glaxo, ITC, IDFC, Indian Bank, NTPC, MMTC, Titan, JSW Steel, ING Vysaya Bank, Zee Entertianment, Century Textile

Major corporate action: Arvind Remedies ex-date for dividend, stock spilt of Birla Cotsyn from Rs10 to Re1

Market may gain on positive Asia

The market may gain on positive Asia after US stocks rose overnight on better than expected result. Congress party-led alliance's clean sweep in elections in Maharastra and Arunachal Pradesh may provide support to market.

Ruling Congress party-led alliance won two state polls on Thursday and were set to form the government in a third, a result that gives more room for the alliance to push economic reforms. Elections were held last week in Maharashtra, northern Haryana and Arunachal Pradesh in polls seen as a major test for the Congress coalition after a strong victory in central polls in May.The party retained power in Maharashtra and Arunachal Pradesh, and were expected to hold on to power in Haryana.

Energy major Reliance Industries will be in action as company commenced its initial arguments in the high-profile dispute on Tuesday, saying a private agreement signed between the Ambani brothers is not binding on the company and it can sell gas only at the price set by the government.

Anil Ambani's Reliance Natural Resources claims the contract is valid and wants the court to direct Reliance Industries to supply it with 28 mmscmd of gas for 17 years at almost half the government-set price of $4.2 per mmBtu. The Supreme Court will resume hearing the case next Tuesday, with Reliance Industries expected to conclude its initial arguments by Thursday. The court will then hear arguments by Reliance Natural, following which it will consider a petition by the government to become a party to the dispute.

India's largest power maker by sales Bharat Heavy Electricals unveils its Q2 result today. 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.

India's largest cigarette maker by sales ITC unveils its Q2 result today. 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.

Dr Reddys Laboratories, NTPC, Punj Lloyd, IDFC, JSW Steel, Zee Enterprises, Zee News, Edelweiss, 3i Infotech, GSK Consumer, Pantaloon Retail, Titan Industiries, TVS Motor Company Ajmera Realty, Alphageo, Bata India, Bharat Forge, Birla Corp, Century Textiles, Compact Disc, Core Projects, Cyber Media, Electrosteel Castings, Four Soft, Gateway Distriparks, Gemini Communication, Graphite India, Greaves Cotton, Gujarat State Petronet, Indian Bank, ING Vysya Bank, Mirc Electronics, Tata Sponge, Technocraft, Tips Industries, Titagarh Wagons, Welspun India among other will announce their Q2 September 2009 result today.

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 on Thursday 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.

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 shares nudged higher on Friday on the back of upbeat earnings reports from the United States and Asia while the dollar resumed a broad slide after a Fed official indicated U.S. interest rates would remain low. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by between 0.6% to 1.81%.

US markets rallied on Thursday as investors cheered some better than expected earnings and shrugged off a disappointing jobless report. Financials led the rally after travelers reported its profit more than quadrupled. The Dow gained 131.95 points, or 1.3%, to 10,081.31. The S&P 500 index rose 11.51 points, or 1.1%, to 1,092.91. The Nasdaq rose 14.56 points, or 0.7%, to 2,165.29.

In the day's economic news, jobless claims rose 11,000 to a seasonally adjusted 531,000 last week, more than expected. An index of leading economic indicators rose 1% in September, touching a two-year high and more than the 0.8% expected.

Closer home, the key benchmark indices extended losses for the third straight day on weak global markets and rise in headline inflation above the 1% mark on Thursday. The BSE 30-share Sensex fell 219.43 points or 1.29% to 16789.74 on that day.

As per provisional data on NSE, foreign funds sold shares worth Rs 499.28 crore and domestic funds sold shares worth Rs 18.07 crore on Thursday.

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.

Daily News Roundup - Oct 23 2009

Infosys co-founder and chairman, Narayana Murthy, sells company’s shares worth ~US$37mn to start a VC fund. (BL)

Tata Steel and MMTC forms a JV for acquisition, development and operation of mines and procession of minerals and metals. (ET)

Pfizer approaches several Indian drug makers for possible alliances. (ET)

BHEL to set-up solar voltaic plant in Hyderabad for Rs5bn. (FE)

JP Associates and JSW Steel urge RBI to relax rules governing repayment of foreign borrowings. (ET)

Wipro bags 10-year outsourcing contract for Delhi airport. (BS)

Aditya Birla Group inks pact for Rs15bn Orissa port. (BS)

Essar Group firm raises Rs42.8bn through private placement of its zero-coupon bonds. (BS)

BSNL and MTNL are planning to set-up a SPV with Delhi-based Vavasi Group to participate in JV for Russian and western European telecom operations. (ET)

Government defers decision on Jet Airways proposal to raise US$400mn. (ET)

MTNL shortlisted for Zambia’s Zamtel. (ET)

Petronet LNG to buy 10% in Dahej project (BS)

Jubilant Organosys to raise Rs5bn through equity and related instruments and hive-off its application polymers and consumer products divisions. (FE)

Rico Auto facing daily production loss of 25%. (BS)

KEC International bags orders worth Rs4.7bn. (FE)


Inflation for the week-ended October 10 touched a 20-week high of 1.21%. (BS)

DoT comes under CBI scanner for alleged ‘criminal conspiracy’ on award of telecom licences in 2008. (ET)

RBI has asked banks to stop relying on bulk deposits. (ET)

Finance Ministry has issued a notification to scrap the 70-80% import duty on all varieties of rice. (ET)

Centre has replaced statutory minimum price (SMP) for sugarcane with a higher fair & remunerative price (F&RP). (ET)

Government has cleared 26 FDI proposals worth Rs13.6bn. (BS)

Pick what you like!

Part of the secret of success in life is to eat what you like and let the food fight it out inside.

The market is poised to open strong after a three-day slide. We just hope there are no post-lunch hiccups as has been the case in recent times. This week’s fall has come on lower volume and turnover. Technical and derivative indicators do suggest some signs of fatigue after a seven-month rally. However, the overall trend remains upbeat. What we are witnessing is, hopefully, just a brief period of consolidation. So have patience. Endure the current choppy phase and gains are bound to come in future.

The Dow finished up more than 130 points and the Nasdaq staged a late turnaround. Asian markets have gained 1-2%.

Inflation has started inching higher though the stimulus steps may not be reversed anytime soon. Interest rates will be left unchanged next week though the RBI could alter its tone from dovish to a little hawkish.

We wouldn’t want to spoil the party for the Congress. Despite its back-to-back landslide wins (LS and Assembly), one wonders if reforms will get the necessary attention. With opposition in dire straits, we hope the Congress doesn’t get complacent. For now though, the Grand Old Party is firmly in driver’s seat.

FII flows will continue to play a key role. Another positive is that the leverage is pretty low. As Nirmal Jain, Chairman, India Infoline expressed in an article in The Economic Times, the EPS, albeit a different one, of the market is up. The E or Economy is gathering pace. The P or the Political backdrop is getting better. The latest triumph of the Congress in the state polls underlines this trend. Finally, the S or the Sentiment has staged an amazing turnaround. Risk-reward is favourable for the bulls.

Results Today: 3i Infotech, Bata India, Bharat Forge, BHEL, Birla Corp., Century Textiles, Dr. Reddy's, Edelweiss, Gateway Distriparks, GSK Consumer, Greaves Cotton, Gujarat State Petronet, HCC, ITC, Indian Bank, IDFC, ING Vysya Bank, JSW Steel, Kirloskar Oil Engines, MMTC, Mirc Electronics, NTPC, Pantaloon Retail, Punj Lloyd, SKF India, Swaraj Engines, Titan, TVS Motor, Welspun India, Zee Entertainment and Zee News.

FIIs were net sellers in the cash segment on Thursday at Rs4.99bn on a provisional basis. The local funds were net sellers at Rs180.7mn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net sellers at Rs14.21bn. On Wednesday, the foreign funds were net sellers of Rs3.92bn in the cash segment. Their net investments in Indian stocks this year has crossed $14bn. Mutual Funds were net sellers at Rs5.58bn on Wednesday.

Blue chip US stocks closed higher on Thursday, as better-than-expected results from four components pushed the Dow Jones Industrial Average above 10,000 again. The Dow gained 132 points, or 1.3%, closing at 10,081.31. The S&P 500 index rose 11 points, or 1%, to 1,092.91. The Nasdaq Composite rose 14 points, or 0.7%, to 2,165.29.

US stocks dipped in early trade, before managing to rebound in late morning. Gains were broad based, with 26 of 30 Dow stocks rising, including 3M, McDonald's, AT&T and Travelers, all of which reported better-than-expected results.

Travelers jumped almost 8% and was one of many financial stocks that gained on the day. The KBW Bank index rose 3.4%.

US stocks have been fluctuating over the last week, with the Dow topping and giving up the 10,000 level and the S&P struggling around 1,100. Both major indexes, as well as the Nasdaq, are at nearly one-year highs.

US stocks tumbled on Wednesday after influential analyst Richard Bove of Rochdale Securities cut his rating on Wells Fargo, sparking a steep selloff in the banking sector. But the selloff proved to be short lived, with investors again using the opportunity to buy on the dips, as has been the trend for months.

US stocks have been on an upswing since bottoming in March at the low point of the financial market crisis. Since hitting a more than 12-year low on March 9, the S&P 500 has risen just short of 60% as of Wednesday's close. Any declines in the period have been moderate, in the 3% to 5% range.

Obama administration "pay czar" Kenneth Feinberg called for the seven biggest federal bailout recipients to cut in half total compensation for their top executives. Additionally, the Federal Reserve proposed a broad overhaul of pay policies at 28 of the largest US banks. The review is part of its effort to temper some of the triggers to the risk taking that exacerbated the credit crisis.

Dow component Travelers said its quarterly profit more than tripled, easily topping analysts' estimates. The insurer also lifted its full-year forecast to a profit of between $5.30 and $5.50 per share. Shares jumped 7.7%.

Fellow Dow component AT&T reported a better-than-expected third quarter profit thanks to the impact of Apple's iPhone, for which it has been the exclusive carrier. Wireless revenue jumped 10% in the quarter. Shares gained 0.6%.

Dow component McDonald's reported higher third-quarter earnings that topped estimates on weaker third-quarter revenue that missed estimates. Shares rose 2%.

3M, also a Dow component, said third-quarter earnings and revenue fell from a year ago, but both were above analysts' estimates. Shares gained 3.2%.

Merck, the fifth Dow component to report Thursday morning, said its earnings and revenue rose from a year ago and topped estimates. Shares of the drugmaker were barely higher.

So far, 167 companies, or 33% of the S&P 500, have reported results. Profits are currently on track to have fallen 19.2% versus a year earlier, according to the latest from Thomson Reuters. Revenue is expected to have dropped over 10% from a year ago.

Microsoft launched the newest version of its operating system, Windows 7. The software titan, a Dow component, is hoping that users who have been running XP for years will switch to the new system - and forgive it for the disappointing performance of Windows Vista in 2007.

Microsoft reports quarterly results on Friday.

Around 531,000 Americans filed new claims for unemployment last week, down from 520,000 the previous week. Economists were expecting a bigger drop, to 515,000. Continuing claims, a measure of those who have been receiving benefits for a week or more, fell to 5.92 million from 6.02 million in the previous week. Economists were expecting claims to fall to 5.97 million.

Separately, the index of leading economic indicators (LEI) rose 1% in September after rising a revised 0.4% in the previous month. Economists thought it would rise 0.8%.

The US Federal Housing Finance Agency's housing price index fell 0.3% in September after rising 0.3% in August. Economists thought it would rise 0.3%.

Treasury prices tumbled, raising the yield on the 10-year note to 3.42% from 3.38% late on Wednesday.

The dollar fell against the euro, weakening again after it fell to a 14-month low. The dollar gained versus the yen. The dollar had risen in the morning, pressuring dollar-traded commodity prices. Prices remained lower in the afternoon, even as the dollar turned mixed.

US light crude oil for December delivery fell 18 cents to settle at $81.19 a barrel on the New York Mercantile Exchange, edging off a one-year high.

COMEX gold for December delivery fell $5.90 to settle at $1,058.60 an ounce. Gold has surpassed records repeatedly this month due to the weak dollar and longer-term worries about inflation.

It was the third straight day of losses for the Indian markets on Thursday. The slide was led by heavy offloading in the Realty, Capital Goods, Banking and the Metals stocks. Even the Mid-Cap and the Small-Cap stocks were beaten down badly

Heavyweights like ICICI Bank, Reliance Industries, L&T and SBI witnessed immense selling which dragged the NSE Nifty to shut below 5,000 and the BSE Sensex fell below 17,000.

Negative cues from the international equity markets further dampened the sentiments on Dalal-Street. Market players further intensified selling on the bourses after the Nifty broke below itsmedium term trend line, which has acted as strong support for the indexsince March 2009. Another notable factor is that the index has closed below its 26-DMA. The immediate support for the Nifty is seen at around 4910-4920 levels.

On Thursday, the BSE Sensex fell 219 points at 16,789 after touching a high of 17,031 and a low of 16,721. The index opened at 17,031 against the previous close of 17,009. The NSE Nifty fell 75 points to shut shop at 4,988.

In Asia, the Nikkei in Japan ended lower by 0.7% at 10,267, while Australia's S&P/ASX ended lower by 0.5% at 4,812. Shanghai SE Composite in China ended lower by 0.6% at 3,051 and Hang Seng index in Hong Kong was down 0.5% to end at 22,210.

In Europe, stocks were in the red. The FTSE in the UK was down 1.4%, The DAX in Germany was down 1% at 5,737 and the CAC 40 index in France slipped 1.5%.

Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 4.5%, followed by the Capital Goods index that was down 2.7% and the BSE Bankex index was down 2%. Even the BSE Mid-Cap index slipped 2% while the BSE Small-Cap index was down 2%.

On the other hand, BSE FMCG index gained 1% and the BSE IT index added 0.8%.

Among the 30-components of Sensex, 23 stocks ended in the red and 7 ended in the positive terrain. Among the major laggards were JP Associates, DLF, ICICI Bank, L&T, Tata Motors and Reliance Infra.

On the other hand, Infosys, ITC, Bharti Airtel, HUL and M&M were among the major gainers.

Outside the frontline indices, the big losers in the broader market were IRB Infra, Madras Cement, Shriram Transport, Jai Corp and RCF. On the other hand, gainers included Marico, Ashok Leyland, Hind Copper, KSK Energy and Bank of India.

The Wholesale Price Index for 'All Commodities' for the week ended October 10, 2009 rose by 0.1% to 242.2 from 241.9 for the previous week.

The annual rate of inflation stood at 1.21% for the week ended October 10, 2009 as compared to 0.92% for the previous week ended October03, 2009 and 11.3% during the corresponding week ended October 11, 2008 of the previous year.

L&T Q2 net profit was at Rs5.8bn as against Rs4.6bn registering a growth of 26% YoY. The company registered net sales of Rs79.2bn as against Rs77.25 in the same period last year. The company posted other income of Rs2.18bn as compared of Rs1.33bn. EPS was at Rs9.7 versus Rs7.74 per.

The stock was down by 4% to Rs1608. The stock opened at Rs1665 and made an intra-day high of Rs1676 and a low of Rs1595. Total traded volumes stood at 0.84mn shares.

Hindustan Zinc announced its Q2 results with net profit of Rs9.34bn for the quarter ended September 30, 2009 as compared to Rs9.59bn for the quarter ended September 30, 2008.

Total Income has increased from Rs19.71bn for the quarter ended September 30, 2008 to Rs19.72bn for the quarter ended September 30, 2009.

The stock pared partial loss and recovered from day’s low. The stock ended lower by only 1.5% at Rs868. It opened at Rs878 and made an intra-day high of Rs884 and a low of Rs852. Total traded volumes stood at 49,000 shares.

Bhushan Steel announced its Q2 net profit of Rs1.89bn up 33% for the quarter ended September 30, 2009 as compared to Rs1.42bn for the quarter ended September 30, 2008. Total Income has decreased from Rs15.18bn for the quarter ended September 30, 2008 to Rs13.04bn for the quarter ended September 30, 2009.

The stock slipped by 3% to Rs1334. It opened at Rs1375 and made an intra-day high of Rs1400 and a low of Rs1324. Total traded volumes stood at 0.13mn shares.

Biocon announced its Q2 results with net profit after tax of Rs623.6mn up 86% for the quarter ended September 30, 2009 as compared to Rs335.3mn for the quarter ended September 30, 2008. Total Income has increased from Rs2.68bn for the quarter ended September 30, 2008 to Rs3.12bn for the quarter ended September 30, 2009.

The Group has posted a net profit after tax of Rs741.9mn for the quarter ended September 30, 2009 as compared to Rs250.2mn for the quarter ended September 30, 2008. Total Income has increased from Rs4.57bn for the quarter ended September 30, 2008 to Rs5.92bn for the quarter ended September 30, 2009.

Shares of Biocon gained marginally by 0.5% to Rs272. The stock opened at Rs272 and made an intsra-day high of Rs284 and a low of Rs267. Total traded volumes stood at 0.86mn shares.

KEC international won orders from the Middle East (Saudi Arabia) and Africa (Chad) aggregating to Rs4.7bn. In the Middle East (Saudi Arabia), the Company has won two orders totaling to Rs4bn, The scope of the orders includes survey, design, engineering, planning, construction, erection, testing and commissioning.

Shares of KEC International have erased gains and ended lower by 2.5% to Rs574. The stock opened at Rs590 and made an intra-day high of Rs624 and a low of Rs567. Total traded volumes stood at 38,000 shares.

Jubilant Organosys announced that the board of directors approved Hiving off Application Polymers division and Consumer Products division. The board also approved raising capital through issue of equity or equity related instruments upto Rs5bn.

The company also announced its Q2 earnings with revenue for Q2 FY 10 at Rs9.33bn. The EBITDA for the quarter was at Rs1.92bn with EBITDA margins of 20.5%.

The Company posted a net profit of Rs554.9mn for the quarter ended September 30, 2009 as compared to net loss of Rs(243.90)mn for the quarter ended September 30, 2008.

Total Income decreased from Rs6.85bn for the quarter ended September 30, 2008 to Rs6.32bn for the quarter ended September 30, 2009.

The stock plunged over 5% to Rs210. It opened at Rs224 and made an intra-day high of Rs228 and a low of Rs209. Total traded volumes stood at 0.21mn shares.

Copper drops

Prices shed yesterday's gains partly

Copper prices dropped on Thursday, 22 October, 2009 at Comex and LME. The strong dollar and the weak economic data were mainly responsible for this.

At USA, copper futures for December delivery ended lower by 3.8 cents (1.3%) to 2.998 a pound. Yesterday prices crossed the $3 mark for the first time in FY 2009. Copper ended September, 2009, lower by 0.3%.

On the London Metal Exchange, copper for delivery in three months ended almost unchanged at $6,590 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

Before September, it was the eight straight monthly gain for copper. On a year to date basis, prices are higher by 98.2%.

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

In the currency market on Thursday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies rose by almost 0.2%. Earlier during the day, it rose by almost 0.6%.

The Labor Department in US reported on Thursday, 22 October, 2009 that initial claims for state unemployment benefits rose for the week that ended on 17 October, 2009, after two straight weekly declines. First-time claims for the week ended 17 October were up 11,000 to 531,000. The prior week's claims level was revised higher by 6,000 to stand at 520,000.

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

At the MCX, copper for November delivery closed at Rs 308.2/Kg. The closing price was Rs 0.9/Kg (0.3%) lower than previous closing price. Prices rose to a high of Rs 311.8/ Kg and fell to a low of Rs 307.1/Kg during the day's trading.

Among other metals traded in the LME on Thursday, lead lost 1% to $2,426 a ton and zinc added 0.4% to end at $2,230 a ton. Nickel slid 1% to end at $19,550. Aluminium gained 0.6% to $1,977 a ton.