Dead Presidents! - India Equity Research: Oct 29, 2009

Thursday, October 29, 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
29/10/2009 500032 BAJAJHINDLTD JUPITER ENTERPRISES LTD S 1472013 209.75
29/10/2009 532609 BHARATI SHIP RELIALNCE CAPITAL MUTUAL FUND S 135000 160.04
29/10/2009 531337 CHAN GUIDE I AMI SECURITIES B 38000 85.88
29/10/2009 531337 CHAN GUIDE I BAKLIWAL FINANCIAL SERVICES INDIA PVT. LTD. S 62150 85.64
29/10/2009 533026 CHEMCEL KAMLESH NAHAR B 200000 11.67
29/10/2009 532363 COMP-U-LEARN K VENKATESWARLU B 103768 36.87
29/10/2009 532363 COMP-U-LEARN K VENKATESWARLU S 101545 36.80
29/10/2009 524830 ELDER HEALTH NIRMALA SAVADEKAR B 25424 88.34
29/10/2009 524830 ELDER HEALTH AJAY AJITKUMAR HAMLAI S 36000 88.03
29/10/2009 533090 EXCEL INFO JATIN LAXMIKANT TRIVEDI B 107850 73.80
29/10/2009 533090 EXCEL INFO JATIN LAXMIKANT TRIVEDI S 124999 73.25
29/10/2009 526951 GOLDE LAMINA SUDHIR KUMAR SINGAL S 114400 17.61
29/10/2009 524314 GUJRAT TERCE AMRIT BHAI P PRAJAPATI S 50000 18.22
29/10/2009 526899 HIMLA INTERN HITESH SHASHIKANT JHAVERI B 200026 35.54
29/10/2009 526899 HIMLA INTERN HITESH SHASHIKANT JHAVERI S 170214 35.55
29/10/2009 523467 JAI MATA GLA CHHAYA DILIP SHAH B 72000 2.75
29/10/2009 523467 JAI MATA GLA MANSI MILAN CHOKSI B 151974 2.75
29/10/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 200000 2.75
29/10/2009 530255 KAY POW PAP SATISH KUMAR GUPTA B 93713 6.41
29/10/2009 530255 KAY POW PAP SATISH KUMAR GUPTA S 93713 6.07
29/10/2009 509048 LANCOR HOLDS APURVA COMMODITIES PRIVATE LIM B 305702 116.92
29/10/2009 509048 LANCOR HOLDS Sundaram BNP Paribas Mutual Fund B 250000 107.00
29/10/2009 509048 LANCOR HOLDS APURVA COMMODITIES PRIVATE LIM S 305702 107.09
29/10/2009 523475 LOTUS CHOC C VARIJA KAMATH B 105978 36.91
29/10/2009 516007 MANGALA TIM GANESHKUMAR SINGHANIA B 206880 25.99
29/10/2009 516007 MANGALA TIM AMAM SHREYANS SHAH S 199869 26.00
29/10/2009 512047 NATRAJ FIN GOYAL HOUSING AND FINANCE LIMITED S 63540 43.25
29/10/2009 524654 NATURAL CAPS VIVOG COMMERCIAL LTD B 40425 41.92
29/10/2009 511523 NIYAT INDUST VEENABEN PRAKASHBHAI SHAH B 630000 1.17
29/10/2009 511523 NIYAT INDUST JAMSHED HAMSHEED SIDDIQ KHAN S 618000 1.17
29/10/2009 531496 OMKAR OVERSE SANTOSH ABHAYRAJ SHUKLA B 57722 56.17
29/10/2009 531496 OMKAR OVERSE HIREN KIRIT GANDHI B 74000 56.05
29/10/2009 531496 OMKAR OVERSE DINESHKUMAR RAMCHANDRA PANDEY B 84300 56.07
29/10/2009 531496 OMKAR OVERSE RAVI VASANTBHAI PAWAR S 32167 56.06
29/10/2009 531496 OMKAR OVERSE SHAH RONAK JITENDRAKUMAR S 31000 56.05
29/10/2009 531496 OMKAR OVERSE SATYABHAMA CHAMPALAL AGARWAL S 45050 56.25
29/10/2009 531273 RADHE DEVELO RAVI VASANTBHAI PAWAR S 1287768 8.36
29/10/2009 590077 RANKLIN SOLU OM PARKASH GUPTA B 53314 33.91
29/10/2009 590077 RANKLIN SOLU RAJEEV GUPTA B 30123 34.50
29/10/2009 590077 RANKLIN SOLU OM PARKASH GUPTA S 30606 34.79
29/10/2009 533083 RISHABHDEV TOUCHSTONE FINVEST SERVICES PVT LTD B 230493 20.19
29/10/2009 533083 RISHABHDEV ARIHANT SEC & INVESTMENT B 226396 20.12
29/10/2009 533083 RISHABHDEV SARSWATI VINCOM LTD B 100000 20.20
29/10/2009 533083 RISHABHDEV ROSY DEAL COMM PRIVATE LIMITED B 75000 20.36
29/10/2009 533083 RISHABHDEV HANURANG VINIMAY PVT LTD B 100000 20.50
29/10/2009 533083 RISHABHDEV NIRAJ HARSUKH SANGHVI B 268075 19.82
29/10/2009 533083 RISHABHDEV TOUCHSTONE FINVEST SERVICES PVT LTD S 190493 20.25
29/10/2009 533083 RISHABHDEV ARIHANT SEC & INVESTMENT S 129047 20.19
29/10/2009 533083 RISHABHDEV NIRAJ HARSUKH SANGHVI S 227304 20.18
29/10/2009 531898 SANGUINE MD YASHWANT SANJAY KARKHANIS B 73603 3.62
29/10/2009 523363 STER HOL RES MAHESH CHIMANLAL DALAL B 300000 66.50
29/10/2009 523363 STER HOL RES SUNIDHI SECURITIES & FINANCE LTD S 300000 66.50
29/10/2009 513575 STERLING STR OM PARKASH GUPTA B 24100 9.09
29/10/2009 513575 STERLING STR SANGEETA K MANDHANIA S 48200 8.21
29/10/2009 526133 SUPERTEX IND JITENDRA LAXMICHANDJI GANDHI B 500000 4.46
29/10/2009 523455 TECHTRAN POL NIRMAL INVESTMENTS S 63600 21.19
29/10/2009 533121 THINKSOFT VIJETA BROKING INDIA PRIVATE LIMITED B 78461 216.38
29/10/2009 533121 THINKSOFT DEEPAK SHANTILAL CHHEDA B 88529 217.48
29/10/2009 533121 THINKSOFT AMIT MANILAL GALA B 86955 215.39
29/10/2009 533121 THINKSOFT GENUINE STOCK BROKERS PVT. LTD. B 103737 217.21
29/10/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. B 266314 216.97
29/10/2009 533121 THINKSOFT AANGI SHARES & SERVICES PVT. LTD. B 266288 217.44
29/10/2009 533121 THINKSOFT DINESH GORDHANBHAI PARMAR B 62000 214.29
29/10/2009 533121 THINKSOFT MBL & Co. LTD. B 63858 216.98
29/10/2009 533121 THINKSOFT SUNEET LAL B 92181 218.18
29/10/2009 533121 THINKSOFT MARWADI SHARES AND FINANCE LTD. B 51215 212.89
29/10/2009 533121 THINKSOFT EUREKA STOCK & SHARE BROKING SERVICES LTD B 81842 217.20
29/10/2009 533121 THINKSOFT SANJEEV SINGHAL B 161927 214.55
29/10/2009 533121 THINKSOFT OPG SECURITIES P LTD B 946603 215.92
29/10/2009 533121 THINKSOFT MANSUKH STOCKS BROKERS LTD. B 79577 214.60
29/10/2009 533121 THINKSOFT R.M.SHARES TRADING PVT.LTD B 72824 215.76
29/10/2009 533121 THINKSOFT RAKHI KALPESH BHANDARI B 66291 216.25
29/10/2009 533121 THINKSOFT NAVEEN TAPARIA B 140126 217.88
29/10/2009 533121 THINKSOFT VIJETA BROKING INDIA PRIVATE LIMITED S 78461 215.76
29/10/2009 533121 THINKSOFT DEEPAK SHANTILAL CHHEDA S 88529 216.98
29/10/2009 533121 THINKSOFT AMIT MANILAL GALA S 86955 215.24
29/10/2009 533121 THINKSOFT GENUINE STOCK BROKERS PVT. LTD. S 103737 217.09
29/10/2009 533121 THINKSOFT TRANSGLOBAL SECURITIES LTD. S 266314 216.15
29/10/2009 533121 THINKSOFT AANGI SHARES & SERVICES PVT. LTD. S 266288 218.53
29/10/2009 533121 THINKSOFT DINESH GORDHANBHAI PARMAR S 62000 220.10
29/10/2009 533121 THINKSOFT MBL & Co. LTD. S 63858 216.74
29/10/2009 533121 THINKSOFT SUNEET LAL S 92181 217.57
29/10/2009 533121 THINKSOFT MARWADI SHARES AND FINANCE LTD. S 51215 212.94
29/10/2009 533121 THINKSOFT EUREKA STOCK & SHARE BROKING SERVICES LTD S 81842 216.80
29/10/2009 533121 THINKSOFT SANJEEV SINGHAL S 161927 214.72
29/10/2009 533121 THINKSOFT OPG SECURITIES P LTD S 946603 215.91
29/10/2009 533121 THINKSOFT MANSUKH STOCKS BROKERS LTD. S 79577 214.75
29/10/2009 533121 THINKSOFT R.M.SHARES TRADING PVT.LTD S 72824 215.32
29/10/2009 533121 THINKSOFT RAKHI KALPESH BHANDARI S 66291 216.09
29/10/2009 533121 THINKSOFT NAVEEN TAPARIA S 140126 216.52
29/10/2009 531249 WELL PACK PA PANDYA YAMINIBEN M B 31949 275.74
29/10/2009 531249 WELL PACK PA BUNIYAD CHEMICALS LTD B 50000 275.84
29/10/2009 531249 WELL PACK PA PANDYA YAMINIBEN M S 22989 275.65
29/10/2009 531249 WELL PACK PA BUNIYAD CHEMICALS LTD S 30000 274.05

NSE Bulk Deals to Watch - Oct 29 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
29-OCT-2009,CORDSCABLE,Cords Cable Industries Li,NIYOJOSH,BUY,89817,45.82,-
29-OCT-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,BUY,194040,71.67,-
29-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7718211,20.07,-
29-OCT-2009,PETRONENGG,Petron Engg Construc Ltd,DERIVE TRADING PVT LTD,BUY,75000,193.31,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,AAKARSH SRIVASTAVA,BUY,56371,216.71,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,AANGI SHARES & SERVICES PVT. LTD,BUY,116435,217.85,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,ARCHITA C GADA,BUY,63366,218.12,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,BHAVIN SURESH CHHEDA,BUY,78305,215.65,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,BP FINTRADE PRIVATE LIMITED,BUY,75986,215.23,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,BUY,177292,217.04,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH G. PARMAR,BUY,71000,213.86,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH MUNJAL,BUY,159070,217.51,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,BUY,52536,215.31,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,GENUINE STOCK BROKERS PVT LTD,BUY,80872,216.78,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,HARBUX SINGH SIDHU,BUY,177327,218.27,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,BUY,242693,217.20,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,BUY,135043,215.43,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANISH VIRCHAND LAKHANI,BUY,56124,217.77,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,BUY,134682,215.26,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MARWADI SHARES AND FINANCE LIMITED,BUY,54710,211.12,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,BUY,74221,216.90,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MEHTA RUBY,BUY,59888,215.82,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,76441,217.05,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NEPTUNE FINCOT PVT LTD,BUY,101534,219.93,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NIKON FINLEASE PVT. LTD,BUY,189451,216.27,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NIMIT JAYENDRA SHAH,BUY,90722,207.65,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,BUY,235820,215.99,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,R APPALA RAJU,BUY,70000,218.24,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,R.M. SHARE TRADING PVT LTD,BUY,65563,215.15,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,RUPESH KIRIT DALAL,BUY,63907,216.84,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,SUNEET LAL,BUY,83208,217.29,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,BUY,293387,216.02,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIJETA BROKING INDIA PRIVATE LIMITED,BUY,99691,215.86,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIRALI VICKY JHAVERI,BUY,150756,219.00,-
29-OCT-2009,BAJAJHIND,Bajaj Hindusthan Ltd,JUPITER ENTERPRISES LTD,SELL,1480160,209.20,-
29-OCT-2009,DISHTV,Dish TV India Limited,CREDIT SUISSE (SINGAPORE) LIMITED,SELL,2822200,34.86,-
29-OCT-2009,DISHTV,Dish TV India Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,4192706,34.48,-
29-OCT-2009,EXCELINFO,Excel Infoways Limited,PARESH SANATKUMAR RACHH,SELL,186659,72.12,-
29-OCT-2009,IFCI,IFCI Ltd.,CREDIT SUISSE (SINGAPORE) LIMITED,SELL,5744520,45.14,-
29-OCT-2009,ISPATIND,Ispat Industries Limited,CREDIT SUISSE (SINGAPORE) LIMITED,SELL,6274800,19.75,-
29-OCT-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,6685541,20.16,-
29-OCT-2009,LUPIN,Lupin Limited,GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD,SELL,874564,1217.14,-
29-OCT-2009,SUZLON,Suzlon Energy Limited,CITIGROUP GLOBAL MKTS MAURITIUS PVT LTD- SELL CODE,SELL,10100000,71.19,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,AAKARSH SRIVASTAVA,SELL,56371,216.64,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,AANGI SHARES & SERVICES PVT. LTD,SELL,116435,219.26,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,ARCHITA C GADA,SELL,63366,218.11,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,BHAVIN SURESH CHHEDA,SELL,78305,215.56,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,BP FINTRADE PRIVATE LIMITED,SELL,77010,214.75,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,CPR CAPITAL SERVICES LTD.,SELL,177292,217.07,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH G. PARMAR,SELL,71000,218.98,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DINESH MUNJAL,SELL,159070,216.78,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,DIPAN MEHTA SHARE & STOCK BROKERS PVT. LTD.,SELL,52536,215.43,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,GENUINE STOCK BROKERS PVT LTD,SELL,80872,217.32,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,HARBUX SINGH SIDHU,SELL,177327,217.78,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,KALASH SHARES & SECURITIES PRIVATE LIMITED,SELL,244693,217.24,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANIPUT INVESTMENTS PVT. LTD.,SELL,135043,215.55,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANISH VIRCHAND LAKHANI,SELL,56124,217.85,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MANSUKH SECURITIES & FINANCE LIMITED,SELL,134682,215.28,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MARWADI SHARES AND FINANCE LIMITED,SELL,52655,211.27,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MBL & COMPANY LTD.,SELL,74221,217.17,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,MEHTA RUBY,SELL,59888,215.87,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,78991,215.89,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NEPTUNE FINCOT PVT LTD,SELL,98534,219.68,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NIKON FINLEASE PVT. LTD,SELL,189451,215.96,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,NIMIT JAYENDRA SHAH,SELL,90722,220.64,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,OM INVESTMENTS,SELL,235820,216.08,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,R APPALA RAJU,SELL,70000,216.34,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,R.M. SHARE TRADING PVT LTD,SELL,65563,215.89,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,RUPESH KIRIT DALAL,SELL,63907,216.80,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,SUNEET LAL,SELL,83208,218.25,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,TRANSGLOBAL SECURITIES LTD.,SELL,293387,216.86,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIJETA BROKING INDIA PRIVATE LIMITED,SELL,99691,216.91,-
29-OCT-2009,THINKSOFT,Thinksoft Global Ser Ltd,VIRALI VICKY JHAVERI,SELL,150756,218.30,-

Post Session Commentary - Oct 29 2009

The Indian market closed in the negative territory for the second consecutive session tracking the weakness in the global markets and a rise in the inflation figure that weighed on the investors’ sentiments. The expiry of the October derivatives contract scheduled today also led the investors to be calculative to book their positions. The concerns about the sooner than expected rise in the interest rates after RBI raised its inflation forescast, prompt the investors to be bit cautious to book further positions. The Asian stocks slipped for a third straight day tracking the weak cues from the US markets where the weakness in US housing market triggered the fears about the health of the global recovery. The unexpected fall in new home sales in US in September for the first time since March fueled the fears. Moreover, the volatility of the rupee against the dollar in the past few days has fueled the concerns that there may be more losses for the corporate sector on hedging. The BSE Sensex closed below the 16,300 mark while Nifty just below 4,830 mark. From the sectoral front, the Realty stocks (down 6.40%) were the major laggards as most selling is witnessed from this basket.

The market opened on a weak note tracking eth weak cues from the global markets and kept on trading in the negative territory for most part of day but some buying at the lower level led the market to pare some of its losses but heavy selling in the final hours led the market to close on a disappointment note. The volatility during the seesion was high as the traders roll over positions in the derivatives segment ahead of the expiry of the October 2009 contracts, scheduled today. From the global markets, The US markets closed negative on Wednesday ahead of advance third quarter GDP reading and weak home sales data. Stiff sell off across the globe certainly didn''''t left any room for bulls, not did disappointing home sales data, which for September fell 3.6% month-over-month to an annualized rate of 402,000 units, over 440,000 units that was widely expected.

The IMF said on Thursday raised its outlook for growth in Asia and the economies of India, China and Australia were recovering rapidly and advised the Asia Central banks not to raise the interest rates.

The wholesale price index of India surged 1.51 percent in the 12 months ended October 17, 2009 more than previous week''''s annual rise of 1.21 percent, as per the government data on Thursday. However, the annual inflation rate was 10.82 percent during the corresponding week of 2008. On Tuesday, Reserve Bank of India (RBI) raised the WPI inflation projection to 6.5 percent with an upside bias by March 2010 end from 5.0 percent earlier.

Among the Sensex pack 22 stocks ended in negative territory and 8 stocks in positive territory. The market breadth indicating the overall health of the market remained weak as 1,849 stocks closed in red while 822 stocks closed in red and 68 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 230.77 points or (1.42%) at 16,052.72 and NSE Nifty closed down by 75.60 points or (1.57%) at 4,750.55. The BSE Mid Caps closed lower by 120.10 points at 6,046.79 and the BSE Small Caps closed with losses of 92.69 points at 7,113.84. The BSE Sensex touched intraday high of 16,264.09 and intraday low of 15,993.83.

Losers from the BSE Sensex pack are DLF (6.81%), Reliance Communication (6.45%), ICICI Bank (4.81%), JP Associates (4.10%), Bhel (3.81%), Tata Steel (3%), Hindalco (2.70%) and Maruti Suzuki (2.58%).

Gainers from the BSE Sensex pack are M&M (3.93%), ONGC (2.56%), Sun Pharma (1.92%), HUL (1.60%) and Tata Power (0.48%).

On the global markets front, the Asian markets that opened before the Indian market, closed in red. Taiwan Weighted, Shanghai Composite, Hang Seng, Nikkei and Seoul Composite closed lower by 2.37%, 2.34%, 2.28%, 1.83% and 1.48% at 7,355.69, 2,960.46, 21,264.99, 9,891.10 and 1,585.85 respectively.

European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is up by 0.07% at 3,666.22, in Frankfurt DAX index is trading higher by 0.09% at 5,501.08 and in London FTSE 100 is higher by 0.02% at 5,081.50.

BSE REALTY indexwas at 3,820.46 down by 261.18 points or by (6.4%) The main losers were Indbul Real down by (9.3%) at Rs.239.4, Unitech Ltd down by (7.07%) at Rs.80.85, Dlf Ltd down by (6.81%) at Rs.375.6, Housing Dev down by (5.31%) at Rs.329, Parsvnath down by (4.31%) at Rs.104.4.

BSE METAL index was at 13,904.73 down by 368.75 points or by (2.58%) The main losers were Ispat Indust down by (5.28%) at Rs.19.75, Jindal Steel down by (4.28%) at Rs.668.8, Nmdc Ltd down by (4.17%) at Rs.300.75, Welsp Guj Sr down by (3.86%) at Rs.256.2, Jsw Sl down by (3.59%) at Rs.716.7.

BSE BANKEX index was at 9,290.23 down by 243.43 points or by (2.55%) The main losers were Bank Of India down by (12.33%) at Rs.357.8, Indian Overs down by (8.22%) at Rs.106.6, Allahabad Bk down by (5.65%) at Rs.117.65, Kotak Bank down by (5.29%) at Rs.717.15, Icici Bank L down by (4.81%) at Rs.771.25.

BSE FMCG index was at 2,825.93 up by 18.53 points or by (0.66%) The main gainers were Godrej Cons up by (2.37%) at Rs.276.8, Dabur India Ltd. up by (2.02%) at Rs.153.95, Tata Tea Ltd up by (1.86%) at Rs.856.15, Hind Uni Lt up by (1.6%) at Rs.283.15, Marico Ltd up by (0.82%) at Rs.98.55.

BSE OIL&GAS index was at 9,705.54 down by 68.15 points or by (0.7%) The main losers were Indian Oil C down by (50.93%) at Rs.315.25, Ril Nat Res down by (6.74%) at Rs.67.8, Essar Oil Ltd. down by (5.29%) at Rs.135.3, Aban Offsho down by (3.79%) at Rs.1335.4, Cairn Ind down by (2.25%) at Rs.265.15.

BSE IT index was at 4,447.39 down by 80.52 points or by (1.78%) The main losers were Moser Baer down by (4.7%) at Rs.75.05, Patni Comput down by (3.18%) at Rs.453.7, Oracle Fin down by (3.1%) at Rs.2083.2, Mphasis Ltd down by (2.74%) at Rs.665, Aptech Ltd down by (2.56%) at Rs.192.55.

Cairn India Ltd fell 2.25% to close at Rs. 265.15. The company has posted a net profit of Rs 310.90 million for the quarter ended September 30, 2009 as compared to Rs 814.40 million for the quarter ended September 30, 2008.

Colgate Palmolive India Ltd declined 0.19% to close at Rs. 706.45. The company has posted a net profit after tax of Rs 897.00 million for the quarter ended September 30, 2009 as compared to Rs 635.00 million for the quarter ended September 30, 2008.

Oil & Natural Gas Corporation Ltd (ONGC) grew by 2.56% to Rs. 1,165.85. The company has posted a net profit of Rs 50896.40 million for the quarter ended September 30, 2009 as compared to Rs 48084.10 million for the quarter ended September 30, 2008.

Bharat Petroleum Corporation Ltd (BPCL) shot up by 1.62% to Rs. 505.95. The company has posted a net loss of Rs (1587.70) million for the quarter ended September 30, 2009 as compared to net loss of Rs (26252.70) million for the quarter ended September

Post Market: Correction continues

Earnings Update

Mahindra & Mahindra announces Q2 results
Punjab National Bank announces Q2 results
Tata Chemicals announces Q2 results
HDIL's net profit down by 44%
Bank of India announces Q2 results
Corporation Bank announces Q2FY2010 numbers
Cipla announces Q2FY2010 numbers

Events outcome

Inflation for the week at 1.51% higher than 1.21% in the week before.

Market Commentary

In wake of the correction that continued for the fourth day in trot, the domestic stock market closed further lower. The Sensex slid on the back of negative global cues doubled with heavy selling in realty, metal and banking stocks. The day started with heavy overnight losses for the US and European markets that ended almost 2% lower. However all the major Asian indices closed in red today with losses in the range of 0.22-2.37% each. Besides, SGX Nifty that traded weak, ended the day with loss of 82 points. Even the European indices that opened weak, were trading flat with marginal losses. FTSE 100 was trading at 5078, down 3 points or 0.06% at the time of writing this report.

The stock market back home has been gripped by severe volatility over the last one month or so, and today's trading session was no exception, wherein the Sensex swung by close to 270 points. Even today, the Sensex opened gap-down at 16191, lower by 92 points to its previous close. In the early trades it breached the significant psychological level of 16000 and recorded a low of 15994. However before closing, the market made a smart recovery and made a high of 16264 though it traded in the red all through the day. However, it couldn't sustain the recovery and slipped by 231 points or 1.42% to close at 16053. The market witnessed few disappointments on Q2 earnings front, while the weak global cues didn't lend support to the markets either. Nifty lost 76 points to end the day at 4751, which is an important level for Nifty on technical front. The market breadth was very negative as out of 2,746 stocks traded on the BSE, mere 822 stocks advanced, whereas 1,849 stocks declined. Sixty eight stocks closed unchanged.

Among the sectoral indices, only BSE FMCG managed to stay in green with marginal gains of 0.66%, while BSE HC closed unchanged. All the remaining sectoral indices closed with the losses in the range of 0.69-6.40% each. BSE Realty declined the most, followed by BSE Metals, BSE Bankex, BSE Power and BSE TECk that fell by over 2% each. On the stocks? front, the major gainers and losers for the day were decided on the back of disappointment on Q2 earnings? front. Lupin jumped the most by 5.20% to Rs1,233.10 followed by Mahindra & Mahindra, Voltas, Bank of Baroda and Proctor & Gamble that rose by over 3% each. Among the losers, Bank of India fell the most by 12.33% to Rs357.80, followed by Indiabulls Real Estate that fell by 9.30% to Rs239.40 and Tata Communications that declined by 9.16% to Rs398.00. Everest Kanto and Indian Overseas Bank fell by over 8% each.

On turnover front, Over 2.20 crore shares of Unitech changed hands on the BSE followed by Suzlon Energy (1.47 crore shares), Ispat Industries (0.74 crore shares), RNRL (0.61 crore shares) and Sesa Goa (0.56 crore shares).

Asian markets tank

Sensex, Sydney, Shanghai, Seoul slip further while Nikkei, Hang Seng follows them

Stock markets in Asian region traded sharply lower for a second straight day on Thursday 29 October 2009, tracking the overnight losses on Wall Street and due to lower commodity prices because of a stronger U.S. dollar.

Reports about China tightening lending controls and concerns that central banks worldwide may end some of their stimulus programs soon also affected sentiment. The underlying mood was cautious as traders awaited the latest reading on U.S GDP growth along with a report on jobless claims for further cues on economic recovery in the world's largest economy.

Meanwhile, the International Monetary Fund raised Asia's economic outlook saying that the region is rapidly rebounding from the depth of the global crisis. It now predicts Asia's gross domestic product or GDP to grow 2.8% this year and by 5.8% next year. In May, the IMF said Asian growth will decelerate to 1.3% in 2009 before rebounding to 4.3% in 2010.

On Wall Street, stocks accelerated and closed significantly lower as the dollar strengthened. The major indices tripped on technical levels, building on selling that began after new-home sales and mortgage applications fell. Metals, energy and tech stocks were among those feeling the brunt of risk aversion, with the Nasdaq faring the worst of the major averages, down 56.48 points, or 2.7%, at 2059.61.

The Dow Jones Industrial Average fell 119.48 points, or 1.2%, to 9762.69, while the S&P 500 lost 20.78 points, or 2%, to 1042.63, a level that would make it negative for the month of October.

In the commodity market, crude oil fell for a second day in New York after an increase in U.S. crude and gasoline inventories raised concern fuel demand has yet to recover.

Crude oil for December delivery fell as much as 43 cents, or 0.6%, to $77.03 a barrel, and traded at $77.36 at 4:08 p.m. Singapore time on the New York Mercantile Exchange. Yesterday, the contract dropped $2.09, or 2.6%, to $77.46, the lowest settlement since 14 October 2009.

Brent crude oil for December settlement fell as much as 29 cents, or 0.4%, to $75.57 a barrel on the London-based ICE Futures Europe exchange, and traded at $75.87 at 4:09 p.m. Singapore time. Prices dropped $2.06, or 2.6%, to end the session at $75.86 a barrel yesterday.

Gold rose in London, rebounding from a three-week low as a weaker dollar increased the metal’s appeal as an alternative investment and some investors increased holdings to take advantage of the decline. Gold for immediate delivery climbed $6.43, or 0.6%, to $1,034.53 an ounce by 9:26 a.m. local time, erasing a drop to $1,026.60, the lowest price since 6 October 2009. December gold futures rose 0.4% to $1,035 an ounce on the New York Mercantile Exchange’s Comex division.

In the currency market, US dollar and yen extended recent rally as global stocks dive following weakness in US equities overnight.

The Japanese yen strengthened across the board and the US dollar inched higher on Wednesday. The dollar had fallen as much as around one% on the day to 90.93 yen, retreating from a one-month high of 92.33 yen hit on the previous day.

The Hong Kong dollar was trading at HK$ 7.7502 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 dropped to three-week lows on Thursday as players like hedge funds booked profits on long positions built in the past few months, while government bonds jumped on renewed safe-haven inflows. At the local close, the dollar was at $US0.8991, down from yesterday’s close of $US0.9108 and nearly 3.5 cents below a 14-month high of $US0.9330 struck last week.

In Wellington trade, the New Zealand dollar fell sharply today following the Reserve Bank of New Zealand's calming statements over the official cash rate and traders' decreased risk appetite. The NZ dollar plummeted to US71.74c by 5pm today, its lowest in three weeks.

The South Korean won ended at 1,196 won against the greenback, down 0.6 won from Wednesday's close of 1195.40 won.

The Taiwan dollar weakened against the greenback. The Taiwan dollar was trading lower against the US dollar at NT$ 32.5800, 0.0860 down from Thursday’s close of NT$32.4940.

In the equity market, Asian markets ended with deep losses after large declines on Wall Street sapped investors' risk appetite. Commodity and shipping stocks were hit the worst as investors sold down cyclical sectors, while NEC Electronics led a slump in Tokyo after a downbeat earnings report.

In Japan, key Nikkei stock index plunged to close below 10,000 for the first time in three weeks, dragged down by a stronger yen and sharp losses in Wall Street. The benchmark Nikkei-225 index shed 183.95 points, or 1.83%, from Wednesday to 9,891.10. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 6.54 points, or 0.74%, to 882.26.

In Mainland China, stock index dropped weighed down by banking stocks amid fears over a possible exit from the government's relatively loose monetary policy. Banks, whose earnings performance is sensitive to monetary policy changes, moved lower. After a series of strong economic data released in mid-October, including gross domestic product growth of 8.9% in the third quarter, Chinese officials are now saying China's economic growth is likely to speed up this quarter.

The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, shrank 2.34% or 70.86 points to close at 2,960.47 points after fluctuating between 2,993.43 and 2,952.01 points. The Shenzhen Component Index on the smaller Shenzhen Stock Exchange declined 2.5% or 312.17 points to 12,193.16 points, after touching an intraday low of 12174.12 points.

On the economic front, the bad loan ratio of commercial banks in China dropped to 1.66% at the end of September from 2.42% at the start of the year, the country's banking regulator said on Thursday.

The total value of non-performing loans (NPLs) stood at about 504.5 trillion yuan ($74 billion) at the end of September, down 55.8 billion yuan from the start of the year, the China Banking Regulatory Commission said

China's central government had invested 717 billion yuan (105 billion U.S. dollars) in major public projects as of the end of August, said the State Council, the Cabinet. The figure accounted for 79% of the 908 billion yuan of total investment in 2009, said Zhang Ping, minister in charge of the National Development and Reform Commission (NDRC). The 717 billion investment was mainly allocated to livelihood programs including low-income housing projects, infrastructure in rural areas, health and education programs, energy saving and emission reduction projects, and post-disaster reconstruction, according to the report.

In Hong Kong, stocks fell on Thursday. The benchmark Hang Seng Index opened 471 points lower at 21,290. After touching the intraday low of 21,134.33 points, the blue-chip Hang Seng Index fell 496.59 points or 2.28% to close at 21,264.99. The Hang Seng China Enterprise Index, which tracks the overall performance of 43 Chinese mainland state-owned enterprises on the Hong Kong Stock Exchange, slid 364.51 points or 2.84% to 12,466.67 points.

In Australia, equities slipped lower for a fourth consecutive session today as bears firmly dominated the proceedings in the global market. The benchmark S&P/ASX200 index was down 110.4 points, or 2.36 per cent, at 4574.7 points, while the broader All Ordinaries index had fallen 112.1 points, or 2.39 per cent, to 4575.2 points.

In New Zealand, stock market ended Thursday on a weak note. The New Zealand share market tumbled in early trading, following a broad sell-off in stocks in the United States after weak data on US new home sales heightened concerns about the pace of the economic recovery. The domestic market trickled down in line with the Asian markets that tumbled since early hours trailing the extremely dreary day in the United States overnight. The NZX50 fell 0.22% or 7.16 points to 3195.62. The NZX 15 lost 0.01% or 0.70 points to close at 5812.62.

In South Korea, stocks finished lower as foreign investors dumped shares on worries over the U.S. economic recovery. The benchmark Korea Composite Stock Price Index (KOSPI) sank 23.86 points to 1,585.85, falling below the 1600-point mark for the first time since 7 October 2009.

In Philippines, the stock market continued to slide downward as general weakness on Wall Street pushed investors towards further selling. At the final bell, the benchmark index PSEi lost 1.57% or 45.88 points to 2,862.33, while the All Shares index fell 1.50% or 27.62 points to 1,806.32.

In India, volatility was the order of the day in the second half of the trading session as the market lost ground after a strong intraday rebound. The BSE 30-share Sensex was down 230.77 points or 1.42% to 16,052.72. The Sensex fell 19.40 points at the day's high of 16,264.09 in mid-afternoon trade. The Sensex fell 289.66 points at the day's low of 15993.83 in early trade. The S&P CNX Nifty was down 75.60 points or 1.57% to 4,750.55.

On the economic front, inflation based on the wholesale price index (WPI) rose 1.51% in the year through 17 October 2009, higher than previous week's annual rise of 1.21%, data released by the government today showed. Within the WPI, the food articles index rose 12.85%. The government revised upwards inflation for the year through 22 August 2009 to rise of 0.17% from an estimated fall of 0.21%.

Elsewhere, Malaysia's Kula Lumpur Composite index was trading lower at 1241.75 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2344.03. Singapore’s Straits Times Index ended lower at 2,632.31.

In other regional market, European shares were in a tight range on Thursday, as oil and gas firms offset gains from the financial sector amid a deluge of corporate earnings. On a regional basis, the U.K. FTSE 100 index declined 0.1% to 5,076.77, the German DAX index lost 0.1% to 5,490.32 and the French CAC-40 index climbed 0.1% to 3,665.63.

Sensex off more than 7% from 17-month high

Volatility was the order of the day in the second half of the trading session as the market lost ground after a strong intraday rebound. Volatility surged as traders rolled over positions in the derivatives segment from October 2009 series to November 2009 series as the near-month October 2009 futures & options (F&O) contracts expired today, 29 October 2009.

As per provisional data, foreign funds today, 29 October 2009, dumped stocks worth a net Rs 2546.67 crore. Domestic funds bought equities worth a net Rs 977.06 crore.

Index heavyweight Reliance Industries fell in choppy trade. The BSE 30-share Sensex fell 230.77 points or 1.42%, up close to 210 points from the day's low and off close to 2270 points from the day's high. The BSE Sensex fell below the psychological 16,000 mark at the onset of the trading session but regained that level soon.

India's largest tractor maker by sales Mahindra & Mahindra rose on strong Q2 result. But metals major Sterlite Industries fell on poor Q2 result. Realty, banking and metal stocks also fell. Oil exploration stocks were mixed whereas PSU OMCs rose on slide in crude oil prices. The market breadth was weak.

Intraday volatility on the bourses was high. The market slumped in early trade on weak Asian stocks. The Sensex fell below the psychological 16,000 level. The Sensex soon regained that mark. The intraday recovery proved short-lived. The market weakened again later before cutting losses. The market slumped in late trade after a strong intraday rebound in mid-afternoon trade.

The market remains closed on Monday, 2 November 2009, on account of Guru Nanak Jayanti.

Inflation based on the wholesale price index (WPI) rose 1.51% in the year through 17 October 2009, higher than previous week's annual rise of 1.21%, data released by the government today showed. Within the WPI, the food articles index rose 12.85%. The government revised upwards inflation for the year through 22 August 2009 to rise of 0.17% from an estimated fall of 0.21%.

The Reserve Bank of India at its monetary policy review early this week left its key rates unchanged, but raised the wholesale price-based inflation projection for end-March 2010 sharply to 6.5% with an upward bias, from 5 % earlier.

The IMF said on Thursday the economies of India, China and Australia were recovering especially rapidly, suggesting it notices growing pressures for authorities there to tighten monetary policy ahead of others in the region. It called the three economies special cases, while adding a tightening of monetary policy seemed unnecessary elsewhere in the region in the near future.

It also advised Asian central banks not to raise interest rates only to calm asset price growth, saying lifting rates ahead of advanced economies could attract "carry trade-type" capital inflows and aggravate asset price pressures.

Indian stocks had drifted lower for the second day in a row on Wednesday, 28 October 2009, after steep losses on Tuesday, 27 October 2009. Concerns that interest rates may rise sooner-than-expected had spooked the market on Tuesday after the Reserve Bank of India sharply raised inflation forecast. However, analysts say that monetary policy could be ineffective in reining in a rise in inflation caused by supply shortage. A surge in food prices caused by production shortage has been a key reason for the rise in inflation in the past few weeks.

Meanwhile, a heightened volatility in the rupee against the dollar in the past few days has raised worries that the corporate sector may suffer losses on hedging. The rupee recovered from near one month lows on Thursday, 29 October 2009. The rupee was hovering at 47.20/21 against the dollar, stronger than Wednesdays' close of 47.34/35.

The Reserve Bank of India (RBI) on Tuesday withdrew emergency liquidity support measures that were implemented in the aftermath of the global financial crisis. The central bank warned of possible asset price bubbles and raised banks' provisioning requirements for commercial real estate loans. The central bank said the precise challenge for the Reserve Bank of India is to support the economic recovery process without compromising on price stability. Growth drivers warrant a delayed exit, while inflation concerns call for an early exit, it said. Premature exit will derail the fragile growth, but a delayed exit can potentially engender inflation expectations, the RBI said.

The RBI raised the statutory liquidity ratio (SLR) to 25% from 24% with effect from 7 November 2009. SLR is the minimum share of bank deposits to be held in approved government securities. By hiking the SLR, the RBI seems to be sending a signal that the high fiscal deficit will continue. The SLR hike will ensure easy funding of the government's borrowing programme for not just this year but the next fiscal as well.

Though the policy is hawkish, the RBI has acknowledged that the ongoing economic recovery is in an initial stage. There is a need to revive domestic consumption and investment demand, the traditional dominant drivers of India's economic growth.

The Reserve Bank of India (RBI) deputy governor K.C. Chakrabarty said on Wednesday commercial banks expect credit growth to pick up. At its quarterly monetary policy review on Tuesday, the RBI said bank credit growth continues to be sluggish and cut its full-year forecast for non-food credit growth to 18% from 20%. It urged banks to step up lending while preserving credit quality.

Meanwhile, the latest economic data showed infrastructure sector output grew 4% in September 2009 from a year earlier, slower than upwardly revised annual growth of 7.8% in August 2009. The infrastructure sector accounts for 26.7% of the industrial output. During April-September, the first half of the 2009/10 year, output rose 5% compared with 3.4% in the same period in 2008/09.

European shares edged lower in volatile trade. The key benchmark indices in France, Germany and UK, were down by between 0.01% to 0.29%.

The number of unemployed German workers fell by a seasonally-adjusted 26,000 in October 2009, the country's federal labor agency reported Thursday. Economists had forecast a rise of 15,000.

The economic sentiment indicator for the 16-nation euro zone posted a stronger-than-expected rise in October 2009, advancing to 86.2 from 82.8 in September 2009, the European Commission reported Thursday.

Asian stocks dropped on Thursday after new-home sales unexpectedly fell in the US. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan fell by between 0.63% to 2.37%.

The decline in Chinese stocks was also due the government's plans to tighten rules on personal loans. China's banking regulator said it's tightening rules to ensure loans enter the real economy instead of being used for speculation. Loans exceeding 300,000 yuan ($43,937) will be given directly to the counterparty of the borrower rather than the borrower, the China Banking Regulatory Commission said on Wednesday

Meanwhile, another data showed Japanese manufacturers increased production for a seventh month in September 2009, extending the longest stretch of gains in 12 years, as spending by governments worldwide helped to revive trade. Output rose 1.4% in September 2009 from August 2009, when it climbed 1.6%.

Trading in US index futures indicated Dow could rise 26 points at the opening bell on Thursday, 29 October 2009.

US markets on Wednesday posted their biggest losses since 1 October 2009 on the back of worries about the recovery process. An unexpected decrease in new-home sales weighed on the markets. Sales dropped 3.6% in September 2009 and August's gain was revised lower. Also Goldman Sachs slashed its forecast for US third-quarter GDP to a rise 2.7% from earlier 3%. The Dow was down 119.48 points, or 1.2%, to 9,762.69. The S&P 500 index was down 20.78 points, or 2%, to 1,042.63. The Nasdaq dropped 56.48 points, or 2.7%, to 2,059.61.

The key data due later today is third-quarter US gross domestic product figures. The financial markets are watching the data keenly to see whether it can confirm that world's largest economy has emerged from the recession. Expectations are that GDP grew at an annual rate of 3.2% in the third quarter, after contracting for three straight quarters.

Meanwhile, financial markets will be watching next week's US Federal Reserve's policy-setting meeting for any hint the central bank is moving closer to withdrawing its extensive support for the economy. The US Federal Reserve holds a two-day regular policy meeting on Tuesday, 3 November 2009 and Wednesday, 4 November 2009, on interest rates.

The speculation is that the Federal Reserve won't rush to exit from monetary easing policies. Futures and options traders see a 45.5% chance that the Fed will maintain its record-low target lending rate till the March 2010 meeting. But that is still up from a 43% probability a month ago.

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 recently 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 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 230.77 points or 1.42% to 16,052.72. The Sensex fell 19.40 points at the day's high of 16,264.09 in mid-afternoon trade. The Sensex fell 289.66 points at the day's low of 15993.83 in early trade.

The S&P CNX Nifty was down 76.45 points or 1.58% to 4,749.70. Nifty November 2009 futures were at 4,779, at a premium of 28.45 points as compared to the spot closing of 4,750.55. Turnover in NSE's futures & options (F&O) segment surged to Rs 1,18,012.74 crore from Rs 1,06,431.02 crore on Wednesday, 28 October 2009.

BSE clocked a turnover of Rs 4978 crore, lower than Rs 5431.94 crore on Wednesday, 28 October 2009.

The market breadth, indicating the overall health of the market was weak. On BSE, 818 shares advanced as compared with 1848 that declined. A total of 69 shares remained unchanged.

Among the 30-member Sensex pack, 22 fell while rest rose.

From a 17-month closing high of 17,326.01 on 17 October 2009, the Sensex has lost 1,273.29 points or 7.34% in eight trading sessions to current 16,052.72. Yet, with foreign funds making heavy purchases, the Sensex is up 6405.41 points or 66.39% in calendar year 2009, as on 29 October 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7892.32 points or 96.71%, as on 29 October 2009. FII inflow in October 2009 totaled Rs 9,162.70 crore (till 28 October 2009).

Coming back to today's trade, the BSE Mid-Cap index fell 1.95% and underperformed Sensex. The BSE Small-Cap index shed 1.29%, and outperformed the Sensex.

Sectoral indices on BSE displayed mixed trend. The BSE Realty index (down 6.4%), the BSE Metal index (down 2.58%), the BSE Bankex (down 2.55%), the BSE Teck index (down 2.04%), the BSE Power index (down 2.01%), the BSE IT index (down 1.78%), the BSE Capital Goods index (down 1.7%), underperformed the Sensex.

The BSE FMCG index (up 0.66%), the BSE Healthcare index remained flat, the BSE Auto index (down 0.69%), the BSE Oil & Gas index (down 0.7%), the BSE Consumer Durables index (down 0.9%), the BSE PSU index (down 1.4%), outperformed the Sensex.

Energy major Reliance Industries fell 1.56% to Rs 2003. The company's net profit fell 6.41% to Rs 3852 crore on 5.88% rise in total income to Rs 47476 crore in Q2 September 2009 over Q2 September 2008. The results were announced after market hours today.

The government on Tuesday 27 October 2009 allocated additional 50 million cubic metres a day (mmscmd) of gas from Reliance Industries-operated east coast block D6. Power plants and refineries will get the bulk of Reliance Industries' gas from the Krishna-Godavari basin beyond the previously allotted 40 million metric standard cubic metres per day (mmscmd).

The empowered group of ministers (eGoM) also made some allotments for Reliance's petrochemical plants and refineries.

Oil exploration stocks fell after crude oil futures fell 2.6% on Wednesday, pressured by an unexpected rise in US inventories of gasoline. But crude recovered a bit on Thursday as dollar weakened against a basket of major currencies. Crude oil for December 2009 delivery was up 16 cents at 77.63 a barrel

Crude oil for December 2009 delivery finished down $2.09, or 2.6%, at $77.46 a barrel on Wednesday. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.

Cairn India fell 2.25%. The company's net profit fell 61.82% to Rs 31.09 crore in Q2 September 2009 over Q2 September 2008. The result was announced after market hours today.

But India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) rose 2.56%. The company's net profit rose 5.84% to Rs 5089.64 crore in Q2 September 2009 over Q2 September 2008. The result was announced after market hours today.

India's second biggest state-run oil exploration firm by revenue Oil India was flat ahead of its Q2 September 2009 result today.

PSU OMCs rose as fall in crude oil prices will reduce under-recoveries on domestic sale of petrol, diesel, kerosene and LPG at controlled prices. HPCL rose 2.21%. But, Indian Oil Corporation (IOC) fell 1.85%.

BPCL rose 1.62% ahead of Q2 results. The company reported a lower net loss of Rs 158.77 crore in Q2 September 2009 compared to a net loss of Rs 2625.27 crore in Q2 September 2008. The results hit the market after trading hours today.

Realty stocks fell after the central bank's decision on Tuesday to raise the provisioning requirement for banks' advances to the commercial real estate sector classified as 'standard assets' from the present level of 0.40% from 1%. This will raise the borrowing costs for realty firms which depend heavily on borrowing. Indiabulls Real Estate, Omaxe, Unitech fell by between 2.28% to 9.3%.

India's largest realty player by sales DLF fell 6.81% ahead of its Q2 September 2009 result today.

Metal stocks fell after a gauge of six metals traded on the London Metal Exchange fell 3.17% on Wednesday, 28 October 2009. JSW Steel, Jindal Saw, Hindustan Zinc, National Aluminum Company, Hindalco Industries fell by between 0.74% to 3.59%.

Steel Authority of India (Sail) fell 1.38%. The steel minister said recently the government has approved a follow-on public offering of 20%. The government holds 85.82% stake in Sail.

India's largest steel maker by sales Tata Steel fell 3% extending recent steep looses on weak Q2 results. Net profit fell 49.49% to Rs 902.94 crore in Q2 September 2009 over Q2 September 2008. The results hit the market during market hours on 27 October 2009.

Sterlite Industries fell 1.96% after net profit fell 24.91% to Rs 958.85 crore in Q2 September 2009 over Q2 September 2008. The result hit the market during trading hours today.

Bank stocks extended recent steep losses as the RBI did not relax mark-to-market rules for bank's debt holdings at a quarterly policy review on Tuesday. The market was been agog with talks over the past few days of the central bank hiking the ceiling on the portion of government securities that banks can park in held-to-maturity (HTM).

Another trigger for the sharp slide in banking stocks was the central banks' decision to streamline provisioning requirement on non-performing assets. The RBI asked banks to ensure by September 2010 that the total provisioning coverage against non-performing or bad loans aren't less than 70% of the outstanding amount.

India's largest private sector bank by operating income ICICI Bank fell 4.81% as its ADR fell 3.9% on Wednesday. Singapore's Temasek cut its stake to 5.76% as of 30 September 2009 from 7.6% as of end of June 2009. Temasek said in a statement in Singapore on Tuesday that any stake sales are part of regular moves to review and rebalance its portfolio.

India's second largest private sector bank by net profit HDFC Bank fell 0.24% as its ADR fell 1.37% 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 were more or less in line with market expectations.

India's largest bank by branch network State Bank of India fell 1.05%. State Bank of India (SBI) announced on 24 October 2009 that it has concluded the issue of $750 million fixed rate senior notes having a maturity of 5 years at a coupon of 4.50% under the Medium Term Notes (MTN) Programme in the form of Regulation S Global Note. The bonds have been issued through the bank's London branch as of 23 October 2009.

Banks do not have to make any mark-to-market provisions on securities held in the HTM 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.

Sun Pharmaceuticals Industries rose 1.92% as the results though weak were still better than market expectations. Net profit fell 33% to Rs 203.06 crore in Q2 September 2009 over Q2 September 2008. The results were announced during market hours on Wednesday.

India's largest cigarette maker by sales ITC rose 0.25% on robust Q2 results. 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 on Friday 23 October 2009, 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, Marico, Dabur India, Nestle India, Tata Tea, rose by between 0.61% to 2.02%.

India's largest cement producer by sales ACC fell 1.22% as concerns that a glut in supply will put pressure on cement prices offset strong Q3 results from the cement major. The company's net profit rose 53.69% to Rs 435.63 crore in Q3 September 2009 over Q3 September 2008. The results hit market during market hours on Wednesday.

At the time of announcing Q3 results, ACC said a sizeable additional cement capacity is expected to materialise in all the regions withing the next one year. ACC, however, said it expects a significant surge in cement demand from the infrastructure sector and various development schemes of the government. It expects robust demand from smaller cities and semi-urban markets

Grasim Industries fell 0.89%. The company's net profit rose 60.72% to Rs 674.25 in Q2 September 2009 over Q2 September 2008. The company announced the result after market hours today.

Telecom stocks fell on continued concerns about price war in the sector. Idea Cellular's Managing Director Sanjeev Aga, said on 26 October 2009 the price war in the teleocom sector which he described as a 'bloodbath' would cut local call charges, currently at 40 paise a minute, to 'unsustainable' levels.

India's largest wireless operator by sales Bharti Airtel fell 1.59%. India's second- largest wireless operator by sales Reliance Communications fell 6.45%. The company said early this week it does not have to pay any additional licence or spectrum fee to the government nor had it inflated its revenues. The statement came after the company said it had completed a "preliminary review" of a report issued by a government-appointed auditor which had accused it of various malpractices. But, Idea Cellular rose 1.65%.

Construction stocks fell on profit taking. Hindustan Construction Company, Nagarjuna Construction Company Era Infra Engineering, Gayatri Projects fell by between 1.29% to 4.92%.

The government's thrust on the infrastructure sector. Higher government spending on infrastructure sector in the Union Budget 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction.

An expected fall in cement prices in the coming months due to capacity new capacity addition may boost margins for construction firms as cement is a key raw material

Jaiprakash Associates fell 4.1% extending recent sharp losses. 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 21 October 2009. The company also announced 1:2 bonus issue at the time of announcing Q2 results

IT stocks fell on concerns about the US economy after fall in new home sales in the US in September 2009. US is the biggest market for Indian IT companies. IT bellwether Infosys Technologies fell 2.18% as its ADR fell 1.7% 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.

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 software services exporter TCS fell 1.51%. 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.

But, India's third largest IT exporter by sales Wipro rose 0.26% extending recent gains on better than expected Q2 results. As per consolidated Indian GAAP results, the company recorded 19% rise in net profit to Rs 1162 crore in Q2 September 2009 over Q2 September 2008. The net profit rose 14% to Rs 1162 crore in Q2 September 2009 over Q1 June 2009. The results hit the market before trading hours on 27 October 2009. Its ADR fell 3.04% on Wednesday.

Wipro said order book has gone up and it is seeing a strong second half as pricing stabilises. Wipro expects its IT services revenue to rise 3.8% to 5.7% to $1.09-$1.11 billion in Q3 December 2009 ovfrom Q2 September 2009

A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

India's largest engineering and construction firm by sales Larsen & Toubro fell 0.94%. The company announced on 26 October 2009 sale of its shares in Voith Paper Technology India (VPTIL) to its long term joint venture partner Voith GmbH, Heidenheim, Germany. VPTIL is a 50:50 joint venture partner between L&T and Voith GmbH providing design, consultancy and other value added services to Indian paper industry.

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 22 October 2009.

Among other capital goods stocks Bharat Heavy Electricals, BEML, Siemens, ABB and Praj Industries, fell by between 0.76% to 5.3%.

Rate sensitive auto stocks fell on concerns hike in interest rates may crimp sales. Most auto sales including that of cars, two-wheelers, utility vehicles and commercial vehicles are driven by financing by the buyer. Low interest rates has helped a solid rebound in sales across the auto industry this year

Bajaj Auto fell 2.25%. 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 1.81% 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.

India's largest car maker by sales Maruti Suzuki India fell 2.58% after the company said margins may come under pressure due to hardening of commodity prices and strengthening of the Japanese yen. At the time of announcing Q2 results, last week, the company said it continues to focus on cost optimization. Maruti said the company remains cautiously optimistic with regard to volume growth in the near future

Maruti's net profit rose 92.5% to Rs 570 crore on 46.6% rise in sales to Rs 7080.67 crore in Q2 September 2009 over Q2 September 2008. The company announced the results on Saturday, 24 October 2009

India's largest commercial vehicle maker by sales Tata Motors fell 1.26%. The company's net profit jumped 110.13% to Rs 729.14 crore on 11.87% rise in total income to Rs 8399.75 in Q2 September 2009 over Q2 September 2008. The results were announced after market hours on 26 October 2009

But, India's largest tractor maker by sales Mahindra & Mahindra rose 3.93% after its net profit jumped 184.98% to Rs 702.94 crore inn Q2 September 2009 over Q2 September 2008. The results were announced during market hours today.

Ranbaxy Laboratories rose 4.8% . The company reported net profit of Rs 186.08 crore in Q3 September 2009 as against a net loss of Rs 352.93 crore in Q3 September 2008. The results were announced on 26 October 2009.

Cals Refineries clocked highest volume of 3.77 crore shares on BSE. Unitech (2.19 crore shares), Suzlon Energy (1.47 crore shares), Zee News Enterprises (0.92 crore shares) and Ispat Industries (0.74 crore shares) were the other volume toppers in that order.

Housing Development & Infrastructure clocked highest turnover of Rs 182.52 crore on BSE. Unitech (Rs 177.81 crore), Sesa Goa (Rs 168.85 crore), Thinksoft Global (Rs 162.97 crore) and State Bank of India (Rs 145.01 crore) were the other turnover toppers in that order.

Pre Market - SGX Nifty - Oct 29 2009

4,753.0 -80.0

Grey Market - Den Networks, Astec Lifesciences

Company Name	Offer Price (Rs.)	Premium (Rs.)
Indiabulls Power	45	+/- 2 to 3
DEN Network Ltd.	195 to 205	Discount
Astec Life Science	77 to 82	4 to 5

Pre Session Commentary - Oct 29 2009

Today domestic markets are likely to open negative amid feeble ongoing trade in Asian Market, fragile start in SGX Nifty as well and contraction in US Market overnight. The trade would be highly volatile with negative bias. One could expect huge sell off in Banking and Metal stocks specifically and sector specific movement along the curve. Today domestic market is likely to trade range bound with negative bias.

On Wednesday, Indian market closed in the negative terrain after a volatile session. The concerns about the sooner than expected rise in the interest rates after RBI raised its inflation forecast, indicated participants to trade cautiously before turning more bullish on equities. Moreover, the cues from the global market aren’t in favor as the US consumer confidence data that fell to 47.7% from a revised 53.4% in September that led the investors to be calculative. From the sectoral front, the banking stock faced the pressure as RBI did not announce any hike in the ceiling on the portion of government securities, which the banks can park in held to maturity segment. Apart from this, the consumer durables and PSU stocks also remained in the sellers’ radar. While on the other hand, the Realty stocks made a smart come back from the intraday low to close with decent gains. The Market breadth, indicating the overall strength of the market, was weak.

The BSE Sensex closed lower by 69.91 points or 0.43% at 16,283.49 and NSE Nifty closed down by 20.55 points or 0.42% at 4,826.15. The BSE Mid Caps closed up by 9.41 points at 6,166.89 while the BSE Small Caps closed with losses of 31.69 points at 7,206.53. The BSE Sensex touched intraday high of 16,411.14 and intraday low of 16,144.17.

The US markets closed negative on Wednesday ahead of advance third quarter GDP reading and weak home sales data. Stocks gulfed in weakness for entire session as sellers stepped in despite better-than-expected earnings. Stiff sell off across the globe certainly didn''t left any room for bulls, not did disappointing home sales data, which for September fell 3.6% month-over-month to an annualized rate of 402,000 units, over 440,000 units that was widely expected. This caused havoc in stocks and overlooked premarket durable goods orders report that were up 1.0% in September, in-line with expectations. Declines were steep and across the broad as 9 of the 10 major sectors posted losses. In debt market, another round of Treasury auctions was met with strong turnout. 5-year Notes produced an above-mean bid-to-cover ratio 2.6. The yield on the benchmark 10-year Note has slipped to roughly 3.4% from 3.5% in just two days. Majority of the sectors finished the session down mainly from Financials (3.2%), Materials (3.2%), Energy (2.9%) and Consumer Discretionary (2.8%). US light crude oil futures for December delivery closed down by 2.8% at $77.44 per barrel, on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) ended with loss of 119.48 points at 9,762.69. NASDAQ index slipped 56.48 points to 2,059.61 and the S&P 500 (SPX) closed lower by 20.78 points at 1,042.63.

Indian ADRs ended low on Wednesday. In the IT space, Satyam Computers was down 9.98%, Infosys was down 1.7%, Wipro was down 3.04% and Patni Computers was down 0.62%. In the banking space, ICICI Bank was down 3.9% and HDFC Bank was down 1.37%. In the telecom space, Tata Communication was down 5.19% and MTNL was down 2.51%.

The FIIs on Wednesday stood as net buyers in equity whereas net sellers in debt. Gross equity purchased stood at Rs. 4,989.80 crore and gross debt purchased stood at Rs. 498.40 crore, while the gross equity sold stood at Rs. 3,648.80 crore and gross debt sold stood at Rs. 867.80 crore. Therefore, the net investment of equity and debt reported were Rs. 1,341.00 crore and (Rs. 369.40) crore respectively.

On Wednesday, the partially convertible rupee ended at 47.34/35 per dollar, 1.0% weaker than previous closing at 46.88/89 per dollar on pressure by shares sliding for the third straight session and customary month-end dollar demand from refiners.

On BSE, total number of shares traded were 39.56 crore and total turnover stood at Rs. 5,431.94 crore. On NSE, total number of shares traded were 85.89 crore and total turnover was Rs. 18,389.72 crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 86161189 shares, followed by Suzlon Energy with 23447554, DLF with 13951202, Hindalco with 13591156 and Bharti Airtel with 13101587 shares.

On NSE Future and Options, total number of contracts traded in index futures was 970230 with a total turnover of Rs. 23,212.59 crore. Along with this total number of contracts traded in stock futures were 1099802 with a total turnover of Rs. 34,592.27 crore. Total numbers of contracts for index options were 1881343 with a total turnover of Rs. 46,117.06 crore and total numbers of contracts for stock options were 78083 and notional turnover was Rs. 2,509.09 crore.

Today, Nifty would have a support at 4,763 and resistance at 4,835 and BSE Sensex has support at 16,059 and resistance at 16,339.

Market may extend fall on weak global cues; inflation eyed

The market may extend last three days fall on weak global cues. Investors will keenly watch the inflation data for the week ended 17 October 2009. The Reserve Bank of India at its monetary policy review on Tuesday left its key rates unchanged, but raised the wholesale price-based inflation projection for end-March 2010 to 6.5 % with an upward bias, from 5 % earlier.

Intraday volatility will remain high as traders rolled positions in the derivatives segment from October 2009 series to November 2009 series ahead of the expiry October 2009 contracts today, 29 October 2009.

Concerns that interest rates may rise sooner-than-expected had spooked the market last two days, after the Reserve Bank of India at a quarterly policy review on Tuesday sharply raised inflation forecast. However, analysts say that monetary policy could be ineffective in reining in a rise in inflation caused by supply shortage. A surge in food prices caused by production shortage has been a key reason for the rise in inflation in the past few weeks.

The Reserve Bank of India (RBI) on Tuesday withdrew emergency liquidity support measures that were implemented in the aftermath of the global financial crisis. The central bank warned of possible asset price bubbles and raised banks' provisioning requirements for commercial real estate loans. The central bank said the precise challenge for the Reserve Bank of India is to support the economic recovery process without compromising on price stability. Growth drivers warrant a delayed exit, while inflation concerns call for an early exit, it said. Premature exit will derail the fragile growth, but a delayed exit can potentially engender inflation expectations, the RBI said.

The RBI raised the statutory liquidity ratio (SLR) to 25% from 24% with effect from 7 November 2009. SLR is the minimum share of bank deposits to be held in approved government securities. By hiking the SLR, the RBI seems to be sending a signal that the high fiscal deficit will continue. The SLR hike will ensure easy funding of the government's borrowing programme for not just this year but the next fiscal as well

The RBI raised projection of inflation to 6.5% with an upside bias at end March 2010 from earlier 5%.

Meanwhile, the latest economic data showed infrastructure sector output grew 4% in September 2009 from a year earlier, slower than upwardly revised annual growth of 7.8% in August 2009. The infrastructure sector accounts for 26.7% of the industrial output. During April-September, the first half of the 2009/10 year, output rose 5% compared with 3.4% in the same period in 2008/09.

Energy major Reliance Industries will be in action the continued pressure as it unveils Q2 results today, 29 October 2009. The continued pressure on gross refining margins, or the difference between the price of crude and the price of refined petroleum products, is seen weighing on the company's bottom-line in Q2 September 2009, in spite of higher gas production and refining throughput. RIL

A total of eight brokerages expect a between a 9% fall to a 1.4% rise in RIL's net profit at between Rs 3752.10 crore to Rs 4178 crore in Q2 September 2009 over Q2 September 2008. Their expectations peg a between 23% fall to a rise of 19.8% in revenue at between Rs 34292.90 crore to Rs 53667.70 crore in Q2 September 2009 over Q2 September 2008.

ONGC, Cairn India, DLF, Grasim Industries, Mahindra & Mahindra, Sterlite Industries, Tata Power Company, Adani Power, Britannia Industries, Gammon Infrastructure, HOEC, NHPC, Oil India, REC, Religare Enterprises, Shopper's Stop, Sobha Developers, Tata Chemicals, TTML, Voltas among others will announce their Q2 September 2009 result today.

Asian stocks dropped on Thursday extending a global decline, after the new-home sales unexpectedly fell in the U.S. The key benchmark indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan fell by between 1.17% to 3.48%.

Japanese manufacturers increased production for a seventh month in September, extending the longest stretch of gains in 12 years, as spending by governments worldwide helped to revive trade. Output rose 1.4 % in September 2009 from August, when it climbed 1.6%.

US markets on Wednesday, posted their biggest losses since 1 October on the back of worries about the recovery process. An unexpected decrease in new-home sales weighed on the markets. Sales dropped 3.6% in September and August's gain was revised lower. Also Goldman Sachs slashed its forecast for third-quarter GDP to 2.7% from 3%. The Dow was down 119.48 points, or 1.2%, to 9,762.69. The S&P 500 index was down 20.78 points, or 2%, to 1,042.63. The Nasdaq dropped 56.48 points, or 2.7%, to 2,059.61.

Back 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 recently 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 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.

As per provisional data on NSE, foreign unds sold shares worth Rs 723.66 crore and domestic funds bought shares worth Rs 896.23 crore on Wednesday.

Sensex to open gap-down, correction to continue

Headlines for the day

Infrastructure sector growth slips to 4% in September

Hedging losses drag HCL's profit

NTPC's Gujarat plants to get cheap gas

Procter & Gamble plans to add half a billion users

Bank of Baroda's net profit jumps by over 60% in Q2FY10

Inflation figures to be out today

Events for the day

Major results: Alok Industries, Ansal Infrastructure, Apollo Hospital, Bank of India, BPCL, Cairn India, Crisil, Colgate Palmolive, Cummins India, Corporation Bank, IOB, DLF Ltd., Financial technologies, Glenmark Pharma, Grasim Industries, HDIL, ONGC, Patel Engineering, Opto Circuit, Sobha Developers, Sterlite Industries, P&G, PNB, RIL, RECL, Voltas, LIC Housing Finance and M&M

Major corporate action: Centurly Ply, Garware Offshore, Gateway Distillery, Jaiprakash Associate and Jayshree Cement's ex-date for the interim dividend, ex-date for bonus of Indian Oil Corporation in the ratio of 1:1

The Sensex is again expected open lower and have a gap-down opening, trade in the red, and remain volatile through the day. This is what the market has done in the last one week. Infact the global indicators that were fairly negative won't be able to stop the loses for the Sensex. On Wednesday, the major US and European indices closed in red with major loses of close to 2% each. While the major Asian markets, in today's trade, followed the global cues and were trading in red with loses in the range of 1.58%-4.24% each, with Shanghai Composite losing the least and Jakarta Composite losing the most. Besides, even Singapore Nifty that opened lower, at the time of writing this report was currently trading 75 points lower to its previous day’s settlement price. On the back of such major loses recorded by the global indices, there won't be any respite for the Sensex which may open lower with heavy loss and remain in the red and volatile through the day's trade. While the traders will be keen on watching inflation figures that will be out today. Among the local indices, the Nifty could test the 4875- 4900 range on the up side while on the down side it could find support at 4750 and 4710. The Sensex is likely to get support at 16000 and may face resistance at 16350.

The stocks in the US tumbled sharply on the back of weak-than-expected new home sales report, wherein major US indices closed with losses in the range of 1.21-2.67% each. Dow again closed with over 100 points loss for the third session in this week, it fell by 119 points or 1.21% lower at 9763, while S&P 500 slipped by 1.95% and Nasdaq that slumped the most among thses indices, fell by 2.67%.

Among the Indian ADRs trading on the US bourses, none managed to trade in the green. While the losses were in the range of 0.34% and 9.98%, wherein Tata Motors fell the least and Satyam slumped the most.

In the commodity space, Crude oil prices fell sharply for the second day, with the Nymex light crude oil for November series declining by $2.09 to close at $77.46 a barrel. In the metals space, the Comex Gold for December series declined by $4.90 to settle at $1030.50 a troy ounce, while Comex Silver for December series fell by $0.30 to settle at $16.24 a troy ounce.

Daily trend of FII/MF investment in equities

On October 28, 2009, FIIs were the net buyers of the Indian Stocks in the tune of Rs1341.00 crore (with the gross purchase of Rs4989.80 crore and gross sales of Rs3648.80 crore). While the Domestic mutual funds mutual funds, on October 27, 2009, were the net seller of the stocks in the tune of Rs637.60 crore (with gross purchase of Rs912.80 crore and gross sales of Rs1550.40 crore).

Daily News Roundup - Oct 29 2009

Tata Steel and Australia’s Riversdale Mining have approved the development of a US$270 mn coal mine in Mozambique with first production scheduled in next year (ET)

India Cements is set to acquire a coal mine in Indonesia for around US$20mn. (BS)

BHEL has bagged an export order worth Rs 2.1bn for a 126mw gas turbine generating unit from the Sultanate of Oman (ET)

NTPC is likely to sign gas sales and purchase agreement (GSPA) with RIL for the supply of two mmscmd of gas needed for its Northbased power projects such as Anta, Auraiya, Faridabad and Dadri in December (ET)

M&M has unveiled a brand new light commercial vehicle "Gio" and priced it at Rs1.65lakhs (ET)

SpiceJet may raise upto US$50 mn through sell of shares to fund expansion and start international flights (ET)

HCL Infosystems will have to give up two large IT contracts worth over Rs 17bn to BSNL (ET)

SAIL has obtained a 20-year iron ore mining licence in Chhattisgarh (ET)

BOC India to invest Rs6bn in setting up an air separation unit (ASU) at Tata Steel’s plant in Jamshedpur. (BS)

Sasken Communication Technologies has acquired the product portfolio, some customer contracts and certain assets of the US-based Ingenient Technologies Inc. (BL)

NTPC may import coal directly next fiscal. (BL)

Intel is in talks with leading Indian telecom companies like Tata Communications, Bharti Airtel and Reliance Communications for minority stake that could bid for broadband wireless access (BWA) spectrum to be auctioned by the government in January 2010. (BS)

US drug major Pfizer is likely to buy the biotech business of Wockhardt for a hefty premium of Rs1bn (ET)

EMAMI Group, has forayed into homoeopathy sector by acquiring Kolkata-based M Bhattacharyya & Co Private, one of the country’s earliest homeopathy companies (ET)

Creditors have asked the promoters of beleaguered Vishal Retail to tap investors to expand the equity capital. (BS)

Madras Cement has decided to go slow on its proposed investment in a sugar mill and is likely to bring in a partner. (BL)

Subir Gokarn, a chief economist of Standard & Poor’s has been appointed as the new deputy governor of the RBI (ET)

The Employees Provident Fund Organisation (EPFO) is seeking approval to implement a finance ministry order to invest up to 15% of the fund in equity. (BS)

Core sector growth in September dipped to 4%.(BS)

Banks have approached RBI to allow loan write-offs to be treated as part of the 70% loan loss coverage mandated by the regulator. (BS)

The RBI is inclined to encourage takeover of weak/sick urban co-operative banks (UCBs) by domestic scheduled commercial banks (SCBs). (BL)

The Power Minister has said that India is exploring the option of leasing coal mines in Australia to tide over domestic coal shortages. (BL)

The government is likely to fix the benchmark sugarcane price for the 2009-10 season at about Rs 130 a quintal, the price which mills will be mandated to pay to farmers for buying it (ET)

Thursday thud at start!

The lofty pine is oftenest shaken by the winds; High towers fall with a heavier crash; And the lightning strikes the highest mountain.

Blame it on the world for now. Even after a recent run of declines, we are in for a gap-down opening. The F&O expiry and a spate of results will add to the volatility. The market is also awaiting the release of Q3 GDP data later today in the US.

The meaningful correction that had eluded us for long is underway even as we absorb a flurry of earnings. The big question is whether to buy on dips or loosen up a bit more given the uncertainty on the shape of recovery. Again murmurs of a double-dip recession will get louder till a rebound happens. Some recent economic reports from the matured economies have been a little disappointing.

Even in India, the latest data on infrastructure sector growth shows it is not going to be a smooth sailing. There could be further bumps ahead. For those who have booked profits when the going was good, you have the opportunities to put your money to better use.

Results Today: Alok Industries, Ansal Infra, Apollo Hospitals, Asahi India, BOI, BGR Energy, BPCL, Britannia, Cairn India, CESC, Colgate Palmolive, corporation Bank, CRISIL, Cummins India, DLF, Emami, FT, Glenmark, Grasim, Gujarat Alkalies, Gujarat NRE Coke, Gujarat Gas, GSPC, Gulf Oil, HCL Infosystems, HDIL, Indian Overseas, Jindal Stainless, LIC Housing, M&M, Novartis, Oil India, ONGC, Opto Circuits, Patel Engineering, P&G Health, Provogue, PNB, PVR, REC, Reliance, Sobha Developers, Sterlite, Sundram Fasteners, Tata Chemicals, Tata Power, TTML, Vijaya Bank and Voltas.

US stocks tumbled on Wednesday, led by big declines in the technology space as a weaker-than-expected new home sales report added to worries about the strength of the economic recovery.

The Dow Jones Industrial Average lost 119 points, or 1.2%, to close at 9,762.69. The S&P 500 index dropped 21 points, or 2%, to end at 1,042.63. The Nasdaq Composite tumbled 56 points, or 2.7%, to close at 2,059.61.

The Dow and S&P have fallen for three of the last four sessions, and the Nasdaq for all three, as investors have turned cautious following a seven-month stock rally. Since bottoming at a 12-year low in March, the S&P 500 gained 63% through its peak on Oct. 19. But since then, it's lost 5%, as of Wednesday's close.

There's been some nervousness over the last week, and the weaker new home sales report means the US consumer is still jittery. Investors are feeling less willing to take on risk at the moment.

New home sales fell to a 402,000 unit annualized rate in September from a revised 417,000 unit annualized rate in August, the Commerce Department reported. Sales were expected to rise to a 440,000 unit annualized rate, according to a consensus estimate.

Order for durable goods that are meant to last three years or more rose 1% in September, after falling 2.6% in the previous month. The rise was in line with estimates. Goods, excluding transportation rose 0.9% after falling 0.4% in August. Economists thought they would rise 0.7%.

Another report showed that fewer metro areas reported jobless rates above 10% in September than in the previous month.

GMAC Financial Services is looking for a third bailout from the Treasury Department, according to a Wall Street Journal report. The lender is seeking between $2.8 billion and $5.6 billion, according to the Journal. The US owns a 35% stake in GMAC and has given it $13.4 billion since December 2008.

Financial and technology shares were among the hardest hit stocks.

Telecom stocks gained, including Qwest Communications, which posted a higher-than-expected quarterly profit and lifted its full-year earnings forecast. Shares gained 2.6%.

Dow stock Verizon Communications rallied 3% after releasing more details about its iPhone challenging Droid smart phone - due for release next week. The phone uses Google's Android operating system, has a mini-keyboard and can run several applications at once. It is expected to retail for $199. Fellow Dow telecom AT&T also gained, rising just short of 2%.

The dollar fell versus the euro, resuming its slide after a few up days and moving closer to a 14-month low hit last week. The greenback fell versus the yen.

US light crude oil for December delivery fell $2.09 to settle at $77.46 a barrel on the New York Mercantile Exchange.

COMEX gold for December delivery fell $4.90 to settle at $1,030.50 an ounce. Gold has surpassed records repeatedly this month due to the weak dollar and longer-term worries about inflation.

Treasury prices rose, lowering the yield on the 10-year note to 3.41% from 3.44% on Tuesday. Prices held on to gains after the government sold $41 billion in five-year notes.

Thursday's reading on gross domestic product (GDP) growth is the key economic event of the week. GDP is expected to have grown at a 3.2% annualized rate in the third quarter after shrinking at an 0.7% annualized rate in the second quarter. GDP has declined steadily for four straight quarters.

But the end of the recession doesn't necessarily mean a return to a period of robust growth, particularly amid rising joblessness and still-sluggish consumer spending. Government stimulus programs have played a big role in the recovery, and there are concerns about the strength of the system once that support is withdrawn.

The weekly jobless claims report from the Labor Department is also due in the morning.

Indian markets witnessed a sharp dent dropping the most in two months on a hawkish RBI tone in the Monetary Policy. The central bank’s move to tighten liquidity and an upward revision in inflation forecast triggered a heavy sell-off on the bourses. Weak global cues and disappointing quarterly earnings announced by select leading Indian companies further dampened the sentiment on Dalal Street.

The interest rate sensitive like the Banking and the Realty stocks were offloaded the most. Apart from the index heavyweights, even the Mid-Cap and the small-Cap stocks were hammered by the bears.

Markets saw the highest turnover ever in the F&O segment on a non-expiry day and third highest volumes in the overall market.

Technically, the NSE Nifty was seen taking support at the 4545 levels which is also the 50 Day moving average for the index. If the crucial support level is taken out, 4720-4730 levels which have acted as an important resistance in the past would be the next support.

The BSE Sensex fell 387 points at 16,353 after touching a high of 16,699 and a low of 16,311. The index opened at 16,699 against the previous close of 16,740. The NSE Nifty fell 124 points to shut shop at 4,847.

In Asia, the Nikkei in Japan was down 1.4%, while Australia's S&P/ASX ended lower by 1.6% at 4,753. Shanghai SE Composite fell 2.8% and Hang Seng index in Hong Kong fell 2%.

In Europe, stocks were in the positive terrain. The FTSE in the UK was up 0.3%, The DAX in Germany was up 0.3% and the CAC 40 index in France was up 0.2%.

Coming back to India, among the BSE sectoral indices, the Realty index was the top loser, shedding 6.2%, followed by the Metals index that was down 6% and the BSE Banking index was down 4%.

The BSE Mid-Cap index fell 3.7% and the BSE Small-Cap index was down 4.4%.

Among the 30-components of Sensex, 23 stocks ended in the red and 7 ended in the positive terrain. Hindalco, Tata Steel, Bharti Airtel, RCom, DLF and ICICI Bank were among the major losers.

On the other hand, among the major gainers were Wipro, Hindustan Unilever, Tata Motors and Grasim.

Outside the frontline indices, the big losers in the broader market were Sesa Goa, Areva Jet Airways and Sterling Biotech. On the other hand, gainers included PTC, Union Bank, Cadila and Apollo Hospital.

Tata Steel Q2 net profit fell 49% YoY to Rs9.03bn as against Rs17.9bn in the same period last year. Q2 Net sales dropped 16% YoY to Rs56.3bn as against Rs67.3bn.

Shares of Tata Steel plunged over 7% to Rs501. The stock opened at Rs534 and made an intra-day high of Rs534 and a low of Rs495. Total traded volumes stood at 3.6mn shares.

The telecom stocks continued to remain under pressure as the CBI probe on the Indian telecommunication ministry and the private operators in connection with alleged irregularities in allocation of spectrum to new operators prolong.

"It has been alleged that there had been serious irregularities in the award of Unified Access Services Licenses to private companies," CBI said.

The CBI has carried out searches to collect "incriminating documents in the Wireless Planning Cell, and in the office of deputy-director general for Access Services, Sanchar Bhawan, Ashoka Road".

Bharti Airtel lost 7%, RCom fell 6.5% and Idea declined 4.5%.

Shares of DLF further lost ground after the income-tax department gave a notice to the company asking it why its accounts for fiscal year 2007 should not be subjected to a special audit by an independent auditor.

The I-T department calls for a special audit when officials assessing a company’s tax returns suspect the tax liability has been understated.

However, according to reports, a DLF spokesman termed the new notice as a routine follow-up. “The due legal process is on, and our appeal on last year’s assessment is sub judice in the I-T department. DLF is sure of its facts and figures, which will be duly considered in the appeal.”

The stock declined over 10% in the past four trading sessions. On Tuesday, it was down 6.5% to Rs401; it opened at Rs420 and made an intra-day high of Rs425 and a low of Rs399. Total traded volumes stood at 3.9mn shares.

Shares of Power Finance zoomed from days low after the company registered a growth of 95% YoY with net profit of Rs6.37bn for the quarter ended September 30, 2009 as compared to Rs3.29bn for the quarter ended September 30, 2008.

Total Income increased from Rs16.02bn for the quarter ended September 30, 2008 to Rs20.46bn for the quarter ended September 30, 2009.

The stock ended flat at Rs227, it opened at Rs228 and made an intra-day high of Rs236 and a low of Rs216. Total traded volumes stood at 0.76mn shares.

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